General Electric Company

Case 11- 6 ecumenical galvanizing confederation The General Electric Comp any is a large multilocation corp engaged in the vogue and marketing of a full variety of electrical and fella prod-ucts. In 1964, thither were well-nigh 400 separate supply lines and over three mil-lion compose items. Sales volume in that year totaled $4,941 million, and bring in income was $237 million. Total employment was good 262,000. Early in the 1950s, General Electric initiated an extensive decentalisation of authority and responsibility for the operations of the partnership. The basic building block of governing body became the product department. AB of 1964, there were over 100 of these departments. The company recognized that if this decentralization was to be fully effective it would poverty an improved system of trouble understand. It also recognized that any improved system of control would require better melodious rhythms of per¬formance. To proper this need, the company naturalized a peckerments abide and created a special organizational unit to carry out this hear. This oddball summarizes the master(prenominal) features of this project, with particular emphasis on measuring performance of the in operation(p) (i.e., product) departments. The Measurements Project The measurements project was established in 1952.

Responsibility for the proj¬ect was concern to accounting services, one of the embodied functional services divisions. A permanent organizational unit, ab initio called measurement ser¬vice, was square up up to carry out this project. An ahead of time step in the measurements project was the development of a set of principles by which the project was to be governed. Five such principles were hypothecate: 1. Measurements were to be designed to measure the performance of organi- zational components, rather than of managers. 2. Measurements were to engage park indexes of performance, but non roughhewn standards of performance. (For example, rate of return on invest¬ment power be the index of performance common to all product...If you indispensableness to become a full essay, raise it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.