G Electricals Final Version As On 10 Nov

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Organisational Culture and Motivation at General Electric Company

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G Electricals Final Version As On 10 Nov

  1. 1. Babyraj Thomas Sebastian Kuruvilla Zhouhai Zhong Nikhil Kurian
  2. 2. Contents <ul><li>Company Overview </li></ul><ul><li>Organisational culture in GE </li></ul><ul><li>Motivational theories in practice </li></ul><ul><li>Culture and motivation from GE advertising </li></ul><ul><li>How is GE Perceived within the Business World </li></ul>
  3. 3. GE Overview <ul><li>1. Thomas Edison originally established General Electric (GE) in 1878. </li></ul><ul><li>2. Global infrastructure, finance and media company taking on the world’s toughest challenges. From everyday light bulbs to fuel cell technology, to cleaner, more efficient jet engines. </li></ul><ul><li>3. Have a solid corporate culture, with solid values. </li></ul><ul><li>http://www.youtube.com/watch?v=iMGnbXayj2E </li></ul>
  4. 4. HOW GE EXPLAINS ITS ORGANISATIONAL CULTURE? <ul><li>Employees </li></ul><ul><li>Working Environment </li></ul><ul><li>Integrity at Work Place </li></ul><ul><li>Work Life Balance </li></ul><ul><li>Volunteerism </li></ul><ul><li>Leadership and Learning </li></ul><ul><li>http://www.ge.com/company/culture/index.html </li></ul>
  5. 5. Artefacts <ul><li>GE Office in New York </li></ul>
  6. 6. GE Jacket & T - Shirt
  7. 7. GE Truck & Wrist Watch
  8. 8. <ul><li>Motivation Theories Applied to General Electric Company </li></ul>
  9. 9. What is Motivation? <ul><li>Motivation is an inner mental state that prompts a direction, intensity, and persistence in behaviour </li></ul><ul><li>Motivation can also be defined as a willingness to exert effort to achieve a goal or objective for rewards, whether intrinsic or extrinsic </li></ul>
  10. 10. Motivation Theories <ul><li>Researchers have developed some theories about motivation and human behaviour </li></ul><ul><li>These theories categorised in to two groups </li></ul><ul><li>They are, </li></ul><ul><ul><ul><li>Content theories </li></ul></ul></ul><ul><ul><ul><li>Process theories </li></ul></ul></ul>
  11. 11. Content Theories <ul><li>&quot;What things motivate people?” </li></ul><ul><li>Content theories look for external or extrinsic motivators </li></ul>
  12. 12. Process Theories <ul><li>&quot;How are people motivated?&quot; </li></ul><ul><li>  </li></ul><ul><li>Process theories look at internal or intrinsic processes of motivation </li></ul>
  13. 13. Important Motivation Theories Content Theories Process Theories Maslow's Hierarchy of Needs Vroom's Expectancy Theory Herzberg's Two Factor Theory Adams' Equity Theory McClelland's Achievement Theory Reinforcement Theory Alderfer's ERG Theory
  14. 14. Herzberg’s Two Factor Theory <ul><li>This theory describes two group of needs </li></ul><ul><li>  They are </li></ul><ul><li>Hygiene Factors and Motivators which have different roles in motivation </li></ul>
  15. 15. Hygiene Factors Salary Job Security Working conditions Quality of Supervision Company Policy Interpersonal relation   Motivators Sense of Achievement Recognition Responsibility Nature of Work Personal Growth and advancement
  16. 17. <ul><li>How these Motivator Factors applied in General Electric Company </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>Sense of Achievement Managers do not just manage the employees . </li></ul><ul><li>But lead them towards the achievement-Job Satisfaction </li></ul><ul><li>  </li></ul><ul><li>Recognition Being recognized for a job well done </li></ul><ul><li>Performance –Reward- Expectancy Link </li></ul><ul><li>Responsibility Employees are given tasks and responsibilities that </li></ul><ul><li>Challenge them and promote learning </li></ul><ul><li>  </li></ul><ul><li>Nature of Work Being personally involved in one’s work </li></ul><ul><li>Having share for making decision  </li></ul><ul><li>Personal Growth Job enrichment-work is made more interesting and </li></ul><ul><li>Challenging- employees more productive </li></ul>
  17. 18. Motivation at GE- Jack Welch’s Period <ul><li>Jack Welch Period 1981-2001 </li></ul><ul><li>Jack’s advice to Managers </li></ul><ul><li>Act like leaders. Not like managers </li></ul>
  18. 19. GE – A Boundary less organisation <ul><li>GE - An open Company whose employees can move swiftly and effortlessly and can connect to the outside world quickly and effectively </li></ul>
  19. 20. Work out Programme in GE <ul><li>Workers are given freedom to share their views with their managers </li></ul><ul><li>Discuss problem with each other </li></ul><ul><li>Encourage entrepreneurial behaviour, which allowed employees to create new ideas and work independently </li></ul>
  20. 21. <ul><li>In GE </li></ul><ul><li>Employees share same values through learning </li></ul><ul><li>They change their views by learning </li></ul><ul><li>By working in GE they get motivated and leads to self esteem or job satisfaction </li></ul>
  21. 23. <ul><li>First light bulb </li></ul><ul><li>First hot point electronic iron </li></ul><ul><li>First X-ray machine </li></ul><ul><li>First equipment walk on the moon </li></ul><ul><li>First television network </li></ul><ul><li>First manmade diamond </li></ul><ul><li>First jet engine </li></ul><ul><li>First…… </li></ul><ul><li>GE is proud to put all these innovative products into advertising. </li></ul>
  22. 25. GE ADVERTISING TV RADIO PRINT INTERNET
  23. 26. <ul><li>Now let us watch one example from its advertising </li></ul><ul><li>and have an analysis: </li></ul><ul><li>http://www.ge.com/company/advertising/ads_olympic_games.html </li></ul><ul><li>Wind hasn’t always helped at the Olympic Games, </li></ul><ul><li>but GE used its wind energy turbines to provide </li></ul><ul><li>renewable energy for the Beijing games, which is an </li></ul><ul><li>innovative application. </li></ul>
  24. 27. <ul><li>The creative methods are applied into the </li></ul><ul><li>global infrastructure, finance and media to </li></ul><ul><li>take on the world’s toughest challenges, which </li></ul><ul><li>forms a competitive advantage for GE. </li></ul><ul><li>Employees will exhibit a very high </li></ul><ul><li>organizational commitment </li></ul><ul><li>when they perceive higher learning culture </li></ul><ul><li>and higher job challenge.(Joo and Lim 2009) </li></ul>
  25. 28. <ul><li>And GE culture is keeping on conducting </li></ul><ul><li>the innovative and challengeable </li></ul><ul><li>information to the stakeholders through </li></ul><ul><li>its advertising. </li></ul><ul><li>Do you like the GE culture style as their </li></ul><ul><li>employees do? </li></ul><ul><li>Http://www.ge.com/company/advertising/index.html </li></ul><ul><li>Duets - Aviation </li></ul>
  26. 29. <ul><li>For example GE tells the audiences through the advertising that it is helping doctors save 3,000 lives today and every day; it manufactures the aircraft with lower emission; it creates ideas that create clean energy. As described in the end of each adverting, everything it does certifies one belief which is ‘‘ innovation today for American’s tomorrow ’’. </li></ul><ul><li>There is a website link below shows the format of print advertising for GE: </li></ul><ul><li>http://www.ge.com/company/advertising/index.html healthymagination </li></ul>
  27. 30. Its slogan appears every time at the end of the advertisement, to leave the stakeholders a deep impression that GE is a lead innovative company, and also to encourage the people who like imagination to work for them. GE gives the signals of the intrinsic rewards to the employees, for example having the opportunity to use skills and abilities, having a sense of challenge and achievement , or having one’s efforts recognised and appreciated. (Rollinson 2008, p.199 )I
  28. 32. From the view of Maslow’s theory, GE wants the employees to realise their potential, to try something they never done before. It is the highest human needs—self-actualization, however, there is an assumption that it can only been felt when other needs are satisfied( Pheysey 1993, p.94)
  29. 33. <ul><li>To use the ERG theory(Existence, Relatedness, Growth needs), GE gives the opportunities for the employees to grow up. Because self-actualization is in the growth level, a lower motivator need not to be satisfied before one moves to the higher motivator(Mullins 2007, p.261). It applies to GE better. </li></ul><ul><li>This character of motivator can be adopted by GE successfully, but we can’t make sure that every company can use it and get a good result. </li></ul>
  30. 35. GE Philosophy: <ul><li>Six Sigma (with some room for bringing in new ideas). True to GE’s past, the massive company still strives for perfection through efficiency, but CEO Jeffrey Immelt is pushing innovation just as hard to make up for six sigma's tendency to kill creativity. </li></ul><ul><li>The business week says that 3M who followed the same path as GE with the implementation of 6 sigma theories, is still struggling between the narrow line of efficiency and creativity. </li></ul>
  31. 36. Org Hierarchy: <ul><li>Flattened pyramid . Mandates still come from the top, but management sets aside time to cull the wisdom of GE’s masses. </li></ul><ul><li>Notable Perks : A well-established leadership development program. Every year about 9,000 GE employees attend classes at the company’s leadership center in Crotonville, NY. Evaluations: Metrics, metrics, metrics. Under Jack Welch, the company made forced ranking popular, which weeds out mediocrity by removing the bottom 10 percent of performers. GE still ranks employees today, and Immelt has introduced ratings to evaluate leadership fitness and creativity. </li></ul>
  32. 37. Career Development and Work-Life Balance <ul><li>It pays to specialize. In a break with Welch’s focus on developing generalists, the new top performers who climb the ranks become experts in their fields. </li></ul><ul><li>Work-Life Balance : Old school. GE won Accolades for letting two mothers share one job, but it took the company several years to figure out how to reward the duo with a promotion because of the unusual arrangement. </li></ul>
  33. 38. Imagination at Work <ul><li>Last month, GE announced it will close the Winchester Bulb Plant 80 miles west of D.C. As a result, 200 men and women will lose their jobs. GE is also shuttering incandescent factories in Ohio and Kentucky, axing another 200 jobs. </li></ul>
  34. 39. Imagination at Work <ul><li>So, GE gets environmentalist brownie points for selling “clean” light bulbs, and they also get to charge more for their bulbs. But there’s another advantage—they save on labor with fluorescents, because they make the fluorescents in China. But, they haven't thought of a way to dispose the Mercury from CFL. Imagination at work didn't help this. </li></ul>
  35. 40. Awards and Recognitions for GE <ul><li>GE stands 9th in the list of Worlds Most Admired Companies </li></ul><ul><li>http://money.cnn.com/magazines/fortune/mostadmired/2009/index.html </li></ul><ul><li>This is why it stands 9 th in the list </li></ul><ul><li>http://money.cnn.com/magazines/fortune/mostadmired/2009/snapshots/170.html </li></ul>
  36. 41. GE in the list of top 100 companies for Working Mothers <ul><li>With nearly 150,000 employees specializing in areas as diverse as media, finance and technology, this multifaceted Fairfield, CT–based company still manages to provide women with the type of intimate mentoring that defines careers. </li></ul><ul><li>http://www.workingmother.com/BestCompanies/work-life-balance/2009/08/ge </li></ul>
  37. 42. In rural India, resistance to nuclear plants- GE selling machinery <ul><li>Now, in rural communities like this one, the implementation of the deal has raised concerns about land and livelihood, as farmers are being asked to sell their land to make way for reactors. The deal has also raised concerns about safety. In New Delhi, a debate is raging about elements of a proposed liability law that would cover claims in the event of a nuclear accident. Until India passes the law, U.S. companies such as GE and Westinghouse cannot operate here. </li></ul><ul><li>http://www.washingtonpost.com/wp-dyn/content/article/2009/10/30/AR2009103003611.html </li></ul>
  38. 43. Reverse Innovation <ul><li>If GE’s businesses are to survive and prosper in the next decade, they must become as adept at reverse innovation as they are at glocalization . Success in developing countries is a prerequisite for continued vitality in developed ones. (Harvard Business Review). </li></ul><ul><li>In May 2009, General Electric announced that over the next six years it would spend $3 billion to create at least 100 health-care innovations that would substantially lower costs, increase access, and improve quality. Two products it highlighted at the time—a $1,000 handheld electrocardiogram device and a portable, PC-based ultrasound machine that sells for as little as $15,000—are revolutionary, and not just because of their small size and low price. </li></ul><ul><li>http://www.youtube.com/watch?v=llSYKBI84aw </li></ul>
  39. 44. <ul><li>Bibliography </li></ul><ul><li>Joo, B. and Lim, T. 2009. The Effects of Organizational Learning Culture, Perceived Job Complexity, and Proactive Personality on Organizational Commitment and Intrinsic Motivation. Journal of Leadership & Organizational Studies[online], 16(1), p.48. Available: ProQuest/ ABI/INFORM Global[accessed 27 October 2009] </li></ul><ul><li>Rollinson, D. 2008. Organizational behaviour and analysis, an integrated approach. 4 th edition. Prentice Hall. p.199 </li></ul><ul><li>Pheysey, D. 1993. Organizational Cultures, types and transformations. Taylor&Francis. p.94 </li></ul><ul><li>Mullins, L. 2007. Management and organizational behaviour. 8 th edition. Prentice Hall p.261 </li></ul><ul><li>http://www.ge.com/company/advertising/index.html [accessed on 20 Oct. 2009] </li></ul><ul><li>http://www.reuters.com/finance/stocks/companyProfile?symbol=GE.N [accessed on 1 s Oct.2009] </li></ul><ul><li>http://www.businessweek.com/magazine/content/02_17/b3780007.htm / [accessed on 26 Oct.2009] </li></ul><ul><li>http://www.washingtonpost.com/wp-dyn/content/article/2009/10/30/AR2009103003611.html?sub=AR [accessed on 1 s Oct.2009] </li></ul><ul><li>http://money.cnn.com/magazines/fortune/mostadmired/2009/index.html [accessed on 1 s Oct.2009] </li></ul><ul><li>http://www.workingmother.com/BestCompanies/work-life-balance/2009/08/ge [accessed on 1 s Oct.2009] </li></ul>

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