General Electric Company

Case 11- 6 popular galvanic confederation The General Electric Comp either is a large multilocation corporation booked in the fashion and marketing of a wide human body of electrical and associate prod-ucts. In 1964, there were almost four hundred separate yield lines and over three mil-lion catalog items. gross revenue volume in that year totaled $4,941 million, and net income was $237 million. hail employment was intimately 262,000. Early in the 1950s, General Electric initiated an extensive decentalisation of authority and responsibility for the operations of the company. The staple fiber unit of brass became the product department. AB of 1964, there were over 100 of these departments. The company recognized that if this decentralization was to be richly effective it would impoverishment an improved system of management control. It likewise recognized that any improved system of control would petition better musical rhythms of per¬formance. To proper this need, the company established a measurements abide and created a special organizational unit to take in out this project. This case summarizes the master(prenominal) features of this project, with particular emphasis on amount 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 charge to accounting services, one of the incorporate functional services divisions. A permanent organizational unit, initially called measurement ser¬vice, was sterilize up to carry out this project. An ad vance(prenominal) step in the measurements p! roject was the development of a set of principles by which the project was to be governed. Five such principles were hypothesise: 1. Measurements were to be designed to measure the performance of organi- zational components, rather than of managers. 2. Measurements were to dissemble commonality indexes of performance, but non common 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 get a full essay, aim it on our website: OrderCustomPaper.com

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