Pros And Cons Of General Electric

General Electric is a multinational company based in Fairfield, Connecticut, U.S. The company operates through various segments that include energy management, power and water, aviation, appliances, oil and gas, transportation, healthcare and capital. General Electric is mostly contracted by other corporations whose operations entail software engineering, home appliances, pharmaceuticals, medical devices, automotive, engineering, financial services and life sciences. The company was founded by Thomas Edison in 1878 with the main focus being the generation, distribution and usage of electric power. Since its incorporation, the company has moved from just a lamp making company to one of the largest public traded multinational conglomerates the

He had been awarded CEO of the year, three times in a row by his peers. In 1979, he won the CEO of the decade award and was named a “Management Legend” by The Wall Street Journal in 1981. Welch had therefore big shoes to fill as the new CEO of GE. Welch aimed at becoming better than the best in his industry. During the transition, there were several challenges in the business world related to the economy, the political climate, and the environment. Competition had also increased as there were new companies coming up in the market. Welch knew that if he had to achieve his intended objectives, he had to get the right team to help him. He started by convincing the employees to buy into his vision and conducting a restructuring of the company’s organization. He placed management ad executives in strategic places in the new organizational structure. The executives would help him to redirect the overall culture of the business. Individuals who did not fit or were unable to embrace the new set strategies were relieved of their duties. Any GE employ that did not bring value to the company was also eliminated. The new structure reduced all hierarchical organizational levels, thereby establishing a “lean and agile” business

Welch carried out a detailed analysis of the company’s competitors, which helped him create a toolkit. He adopted several tactics that have been used and proven by the competitors and implemented them in the new organizational structure. Welch also identified the sluggishness caused by the complicate bureaucracies previously incorporated in the company. He eliminated the bureaucracies and established a flat business structure that simplified operations and saved time. Welch developed an effective and efficient system that would help him in the achieving of his own defined objectives. His employees from the lowest ranking up to his team of managers were trained to be team players. They were well motivated through compensations and periodic evaluations, where they were taught how to think outside the box and take charge of situations as they arise. The company’s new culture was characterized by speed, simplicity and self-confidence among employees. Employees were encouraged to take more training programs, which facilitated their self—development and at the same time contributed to the company’s overall productivity. Everybody in the company became committed to Welch’s management