General Electric Case

674 Words3 Pages
Q1 Do the various management developments at GE over the last century seem to follow the same pattern as the development of management theory, described in your text? The evolution in management theory over the last century is the history of the constantly changing role of leaders in organizations. GE’s has been the first company to think both in a management and productive way. It is based on the organization theory: * Classic * Behavioral * Quantitative * Integrated perspectives Their “Blue Books” that governed managers’ every move, for example, shows the administrative management school founded by people such as Henri Fayol. GE used to fire 10 percent of their lowest performing workers. It has been a controversial policy. Each year they kept their most talented and efficient employees. Therefore they were trying to stay very competitive. As Frederick Winslow Taylor determined, GE used one best way to manage; the scientific selection of workers. In some ways, GE’s management contributions mirrored the development trends in management theory over time. “The company was the first to offer pension and profit sharing plans”, therefore it explains that GE act in human way. This is the behavioral part of the organization theory. The employee start to feel valued into the company. In being focus on pension and profit sharing plans GE’s in line with the trends developed by the human relations movement. Elton Mayo describes the importance of the work satisfaction. General Electronic follow the same idea that the good job satisfaction brings good performance. “Over the last 128 years, GE has produced innovative yet practical technologies, including the first electric-powered X-ray machine and television.” As we can read in the article, GE has used a lot the management science. We can conclude that they always innovate in science not
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