General Electric Company

Case 11- 6 planetary electrical confederation The General Electric Comp either is a large multilocation corporation prosecute in the fashion and marketing of a wide mannikin of electrical and associate prod-ucts. In 1964, there were almost cd separate yield lines and all over three mil-lion catalog items. gross sales volume in that year totaled $4,941 million, and net income was $237 million. marrow 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 rudimentary 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 full effective it would impoverishment an improved system of management control. It in like manner recognized that any improved system of control would select better musical rhythms of per¬formance. To proper thi s need, the company established a measurements abide and created a special organizational unit to drip out this project. This case summarizes the master(prenominal) features of this project, with particular emphasis on touchstone 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 corporate functional services divisions. A permanent organizational unit, initially called measurement ser¬vice, was sink up to carry out this project. An early s tep in the measurements project was the deve! lopment of a set of principles by which the project was to be governed. Five such principles were formulate: 1. Measurements were to be designed to measure the performance of organi- zational components, rather than of managers. 2. Measurements were to subscribe to public 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, differentiate it on our website: OrderCustomPaper.com

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