4. Overall presentation:
Q1: Does the pattern of management developments at GE over the last century seem to reflect the pattern
suggested by management theory? Explain your answer.
Q2: Which of GE's management innovations seem to draw on a classical management perspective? Which
seem to draw on a behavioral management perspective? How does the contingency perspective explain the
management changes that GE has made over the years? Explain each of your responses.
Q3: Why, in your opinion, has GE been so successful in integrating the management science approach
with less quantitative approaches?
Q4: In what ways does the change in GE's approach to lead-reship reflect the same conditions as those
that influence its current approach to management?
5. Introduction
GE has been a leader in developing not only new products
and manufacturing processes, but new management
techniques and practices as well.
GE also centralized decision making in the 1950s, producing
the unique “Blue Books” that governed managers’ every
move until the 1980s.
GE also has a reputation for reconfiguring or even
abandoning long-standing programs when they no longer
serve their original purposes.
Today, GE is also focusing on innovations in environmental
technology. Finally, GE works hard to develop leaders.
Every year, for instance, about 9,000 GE employees take
classes at the company’s legendary in-house management
school in Croton ville, New York.
6. Question No-01
Q1: Does the pattern of management developments at GE over the last
century seem to reflect the pattern suggested by management theory?
Explain your answer.
Answer: GE is one of those companies that is prior in adopting the development in
management theory, different management techniques & practices over the past
centuries.
It has been a leader in not only developing new products but also focusing on
managerial techniques & practices as well. It was the first firm that introduced pension
& profit-sharing plans.
In 1950, establishment of unique centralized decision-making program such as "BLUE
BOOKS" that has information of every manager highlight the factor that GE follows
different management theories over the past century of its operations.
7. Question No-02
Q2: Which of GE's management innovations seem to draw on a classical
management perspective? Which seem to draw on a behavioral management
perspective? How does the contingency perspective explain the management
changes that GE has made over the years? Explain each of your responses.
Answer: The general administrative theory is a part of the classical management approach that was
presented by Henri Fayol & another addition to it was done by Max Weber. GE 's blue books that
had details of every manager is a clear example of classical management practice.
The contingency perspective adopts the idea that every organization is different and one size does
not fit for all situations. As the business world evolved over the period, GE also changed its
management practices & made it more focused on employee's empowerment, autonomy and
flexibility, they learned from their past experiences but did not overshadowed their present form
them.
8. Question No-03
Answer: As GE was the pioneer in development & adopting different
management practices according to the environment & conditions of its
operations over period of years, it was able to adopt & integrate new strategies &
practices into their existing business processes with minimal 'trail & error
'periods.
The new CEO Jeff Immelt seems to already begin to change the GE's focus on
more customer centric model, management science approach seems to fit
perfectly into the scenario. The CEO's re tooling of organization's traditional
integral orientation acted as a basis for the methods of management science
approach.
Q3: Why, in your opinion, has GE been so successful in integrating the
management science approach with less quantitative approaches?
9. Question No-04
Q4: In what ways does the change in GE's approach to leader-ship
reflect the same conditions as those that influence its current approach
to management?
Answer: It reflects the same conditions because they are using their in-
house management school to promote & teach what they currently feel the
most important management traits in today's market.
These includes strong leadership which they already focus on training
leaders of the company, external focus on customers that is practice by the
company itself, imagination, innovation & courage to learn from the past
mistakes and encouraging new talent to get new ideas for progress and
prosperity of the future of the organization.
10. Conclusion
The company has since undergone much change in their
style and performance management process.
Today they conduct a more evenly distributed and
ongoing review process.
The focus is less on rating and ranking and more on
developing, connecting, and inspiring employees. Here
is what performance management looks like at GE
today.