...descriptions filed in triplicate in the human resources department, the way a company plans its business can cause it to sink or swim. Bad planning can mean lost opportunities, being overtaken by the competition, loss of revenues, or watching its niche slip away because of a new technology, an alteration in the global marketplace, or simply a failure to market its product effectively. When changes occur, they happen too quickly for its organizational processes to meet them. As a result, opportunities are quickly lost, problem situations take over rapidly, and before the company can respond appropriately, it has lost customers, opportunities, and market share. Although that company likely has more than enough talent within its walls to offset all of those disasters, the talent is never put to use, because employees are constrained to operate within the confines of their job descriptions, where only the prescribed talents can be put to good use. The answer to this dilemma lies in boundaryless organizations. The boundaryless organization does not operate according to volumes of planning documents, job descriptions, or tradition, instead it regroups and innovates. The boundaryless organization has developed primarily due to the widespread dissemination of information and the presence of information technology. But if you have great innovative companies such as Newskool Grooves that is always ready and ahead of the game, with a little guidance, the company can make it through. The company...
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...Virtual Management: A New Way to Manage Virtual Management: A New Way to Manage Technological innovation has been a driving force in the growth of e-business organizations. The e-organization growth has spawned new leadership methods and business processes aimed at maintaining competitiveness in a changing global economy. One business model attributed to the technical revolution is virtual models. This paper is intended to argue that traditional business management, methodology, and structures are failing to accommodate an ever-changing global environment, characterized by hyper-competitiveness, and the exponential increase of information systems design. The current virtual model is managed using out of date management theories, performance metrics, and technical innovations, thus creating a need to update the open systems thinking and organizational theory of the virtual model. As an open system, virtual environments are quickly becoming the new wave of business organizing. Open Systems Organizational Theory Jones (2010) defines organizational theory as “the study of how organizations function and how they affect and are affected by the environment in when they operate” (p.7). Organizational theory maintains a master relationship with organizational structure, organizational change and design, and organizational culture. Organizational structure is “the formal system of task and authority relationships that control how people coordinate their...
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...Introduction Globalization and technical progress brings new possibilities, and also problems for individual persons and the organizations. As the companies are free to move in the world in search of talents and resources, so highly qualified and skilled persons do not miss this possibility to choose work which in the best way answers their purpose and expectations. Obviously, as men and women do more often job movement, than in the past sharply, perhaps, fast navigation on employers and geographical regions, leaning against extensive social and professional communications. This new breed of people pursue boundless careers which apparently, is limited only to their imagination. (Baum, 1998) This chaotic, nonlinear, networks in the career center is marked by number of problems, redefinitions of the profession, approaches-and-begins that creates possibilities, and also problems for individual and the organizations. In particular, it influences both individual, and the organization as the knowledge is force, it influences another. In this paper we will argue that careers have not become boundary less in any absolute sense. Instead career boundaries have become much more difficult and many-sided in nature for graduates in volatile economy of UK. Definition - Career The “career” term has many values. In popular uses, it can mean advancement in someone sequences of workplaces. Career is generally sequence of the positions occupied by the individual during his or her life....
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...Corporate Strategy Analysis: General Electric Co. (1981–present) Stanislav Bucifal Australian National University July 2009 Corporate Strategy Analysis: General Electric Co. (1981–present) Stanislav Bucifal Introduction The General Electric Company (GE) is widely regarded as one of the world’s most successful corporations of the 20th century. This paper aims to critically analyse the corporate strategy of GE during the period from 1981 to present under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The essay is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to present with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. 1. The Jack Welch period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes...
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...Copyright © Oxford Management Publishing 2009 Corporate Strategy Analysis: General Electric Co. (1981–2008) – A Case Study Stanislav Bucifal Introduction The General Electric Company (GE) is widely regarded as one of the world’s most successful corporations of the 20th century. This paper aims to analyse critically the corporate strategy of GE during the period from 1981 to 2008 under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The paper is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to 2008 with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. Keywords: General Electric, Corporate strategy, Leadership, CEOs. 1. The Jack Welch Period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s...
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...Corporate Strategy Analysis: General Electric Co. (1981–present) Stanislav Bucifal Australian National University July 2009 Corporate Strategy Analysis: General Electric Co. (1981–present) Stanislav Bucifal Introduction The General Electric Company (GE) is widely regarded as one of the world’s most successful corporations of the 20th century. This paper aims to critically analyse the corporate strategy of GE during the period from 1981 to present under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The essay is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to present with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. 1. The Jack Welch period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems...
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...The Global Leadership Mindset BY EILEEN M. ROGERS The integration of multiple geographies, cultures, nationalities, ages and styles in enterprises around the world is having an enormous impact on business relationships. Leaders today need a new, specialized set of skills if they are to be successful. 18 Chief Learning Officer • June 2010 • www.clomedia.com ueled by social networks and technology, universal collaboration is becoming a daily business reality. Global data and knowledge are now accessed on devices that people can hold in the palms of their hands. Jim Kouzes, renowned leadership expert, recently described this shift by stating that “while the content of leadership has remained the same over the past 20 years, the context has not.” Leaders striving for success today must be able to master three new levels of competence: • Global business acumen: The new financial, industry, functional and technical skills needed to navigate a market characterized by rapid evolution of business models, markets, products, and mergers and acquisitions. • Global mindset: The capacity to engage in a boundaryless and synthesizing cognitive process that identifies opportunity and innovation in complexity. • Global citizenship: A potent combination of geographic, political, economic, governmental, legal, cultural, technological and environmental savvy that informs business strategy formulation and execution. Global Mindset vs. Global Citizenship A global mindset includes the ability...
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...I choose to do my research paper on General Electric. General Electric is a very successful conglomerate company. I looked at how General Electric manages to be so successful in this area. In this class I have learned that to be a successful company there is another area of concern that is structure of management and how it affects the company. When looking at General Electric Company and why this company is successful conglomerate company. I had to find out what a conglomerate really details. In Order to be a successful conglomerate Company the company must spread resources into this many unrelated businesses gives great stability even in the event of a complete collapse of one of the market, but it also makes many of the decisions the upper management must make incredibly complex. According to The Financial Times, General Electric (GE) is today the “World’s Most Respected Company” (“Facts”). Most of this admiration is due to the variety of operating segments that the company provides. For example, GE businesses are classified into ten categories: Commercial Finance, Consumer Finance, Consumer and Industrial, Energy, Equipment Services, Healthcare, Infrastructure, Insurance, NBC, and Transportation (“Company”). The conglomerate design is put into use when an entity has holdings in many unrelated businesses. This form is also known has the H-form because it is basically a holding company that comes about from unrelated diversification. This holding company form of organization...
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...GE’s Two-decade Transformation: Jack Welch’s Leadership « We Bring Good Things To Life ». This is how General Electric (GE) defined its activity, in general terms, between 1979 and 2003. During this period, and more precisely from 1981 to 2001, Jack Welch was the company’s CEO. This previous advertising slogan, designed by the advertising firm BBDO, largely contributed to GE corporate identity; indeed, according to Baer Performance Marketing, “When you hear the name General Electric, […] “We Bring Good Things to Life” is also brought to mind” (baerpm.com). Furthermore, it didn’t have for only purpose to promote the firm’s products and services, but it also emphasized their high quality, and as a result, it highlighted GE’s will to improve consumers’ lives. In other words, the slogan had more than communication purposes: it would lead the entire process of value creation; it summed GE’s strategy up. General Electric was created by a merge between two electricity-related companies – Edison General Electric Company and Thomson-Houston Electric Company, in 1892, from Thomas Edison and Charles Coffin initiative. Widely considered as one of the most successful corporations of the 20th century, recognized by Fortune to be the “Most Admired Company in the United States” and named Financial Times’ “Most Admired Company in the World” in 2001, the firm has dramatically grown from a merge between two electricity enterprises to an American multinational conglomerate corporation...
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...CH 13 What is Organizational Structure? -Organizational structure: how job tasks are formally divided, grouped, and coordinated. -The structure can represent a tall pyramid, or it can be relatively flat. The structure determines the reporting relationships of people. Flat organization 에서는, 내 위에 있는 사람에게 문제를 알리기 쉽다. 하지만, pyramid structure 에서는, 내 위에 사람에게 말하고, 그 사람이 또 그 위에 사람에게 말하고.. 계속 이렇게 되다 보면, 전해야 하는 내용이 바뀔 수 있는 단점이 있다. -There are six key elements that managers need to address (다루다) when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. -Organizations do change their structure from time to time, which is known as restructuring. -Despite the profound impact restructuring has on employees, managers realize that in a dynamic and changing environment, inflexible organizations end up as bankruptcy (파산) statistics. Work Specialization -Work specialization (division of labour): the degree to which tasks in the organization are subdivided (다시 (적게) 나누다) into separate jobs. - The essence of work specialization is that, rather than an entire job being completed by one individual, it’s broken down into a number of steps, with each step being completed by a separate individual. Individuals specialize in doing part of an activity rather than entire activity. -Employee skills at performing a task improve through repetition. It is easier and less costly...
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...company to handle the tremendous volume that his strategic planning process was producing. Many of these processes used within the business community as benchmarks to follow. The public perception of Reg Jones was also very high, as he had been recognized with “CEO of the Year” honors multiple times, as well as “CEO of the decade.” Welch had to be up to the task of replacing a man that many in the industry considered a legend. Another major challenge Welch faced that can’t be overlooked is the external environment when he took over as CEO. At the same time he was charged with the task of replacing his successful predecessor, Welch also had to deal with a U.S. economic recession. Additionally, there was an increasing amount of rivalry from global competition that compounded the problems being faced by the sluggish economy. It would be one thing if Welch was entering his new position under ideal economic circumstances, but he was being challenged with the mission to continue to grow GE with many forces working against him. A third factor that made Welch’s challenge so difficult related to the complexity of the organization. Under Jones and his focus on growing the strategic planning...
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...company to handle the tremendous volume that his strategic planning process was producing. Many of these processes used within the business community as benchmarks to follow. The public perception of Reg Jones was also very high, as he had been recognized with “CEO of the Year” honors multiple times, as well as “CEO of the decade.” Welch had to be up to the task of replacing a man that many in the industry considered a legend. Another major challenge Welch faced that can’t be overlooked is the external environment when he took over as CEO. At the same time he was charged with the task of replacing his successful predecessor, Welch also had to deal with a U.S. economic recession. Additionally, there was an increasing amount of rivalry from global competition that compounded the problems being faced by the sluggish economy. It would be one thing if Welch was entering his new position under ideal economic circumstances, but he was being challenged with the mission to continue to grow GE with many forces working against him. A third factor that made Welch’s challenge so difficult related to the complexity of the organization. Under Jones and his focus on growing the strategic planning...
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...9-399-150 REV: MAY 3, 2005 CHRISTOPHER A. BARTLETT MEG WOZNY GE's Two-Decade Transformation: Jack Welch's Leadership On September 7, 2001, Jack Welch stepped down as CEO of General Electric. The sense of pride he felt about the company's performance during the previous two decades seemed justified judging by the many accolades GE was receiving. For the third consecutive year, it had not only been named Fortune's "Most Admired Company in the United States," but also Financial Times' "Most Admired Company in the World." And, on the eve of his retirement, Fortune had named Welch "Manager of the Century" in recognition of his personal contribution to GE's outstanding 20 year record. Yet while the mood at GE's 2001 annual meeting had clearly been upbeat, some shareholders wondered whether anyone could sustain the blistering pace of change and growth characteristic of the Welch era. And specifically, many worried if any successor could generate the 23% per annum total shareholder return Welch had delivered in his two decades leading GE. It would be a tough act to follow. (See Exhibit 1 for financial summary of Welch’s era at GE.) The GE Heritage Founded in 1878 by Thomas Edison, General Electric grew from its early focus on the generation, distribution, and use of electric power to become, a hundred years later, one of the world’s leading diversified industrial companies. A century later, in addition to its core businesses in power generation, household appliances, and lighting...
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...were over, and a great American business success story had begun. Ten years later at age 28, Michael Dell had become the youngest person to be CEO of a Fortune 500 company. During the 1990s, his startup had surpassed IBM to become the second largest computer manufacturer in the world. And by the end of that decade Dell passed Compaq to claim the title as top computer manufacturer and seller globally. In doing so, Dell achieved a seemingly impossible goal he had set early on. Michael Dell's success was due in part to his high intelligence, healthy ambition, and exceptional will to win. He also surrounded himself with smart people and allowed them to manage important functions of the company. He developed the strategic vision of being a global leader in personal computer markets by staying close to the customers and selling direct. And, Dell worked closely with his managers to maintain that critical focus. Dell saw mistakes as opportunities to improve, and the company is now known for learning from its errors and not repeating them. During the first decade and a half of its life, Dell's mistakes were due to the usual growing pains—or rather, the unusual explosive growth of the company. In the late 1980s, not long after the company had sold its first...
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...9-399-150 REV: MAY 3, 2005 CHRISTOPHER A. BARTLETT MEG WOZNY GE's Two-Decade Transformation: Jack Welch's Leadership On September 7, 2001, Jack Welch stepped down as CEO of General Electric. The sense of pride he felt about the company's performance during the previous two decades seemed justified judging by the many accolades GE was receiving. For the third consecutive year, it had not only been named Fortune's "Most Admired Company in the United States," but also Financial Times' "Most Admired Company in the World." And, on the eve of his retirement, Fortune had named Welch "Manager of the Century" in recognition of his personal contribution to GE's outstanding 20 year record. Yet while the mood at GE's 2001 annual meeting had clearly been upbeat, some shareholders wondered whether anyone could sustain the blistering pace of change and growth characteristic of the Welch era. And specifically, many worried if any successor could generate the 23% per annum total shareholder return Welch had delivered in his two decades leading GE. It would be a tough act to follow. (See Exhibit 1 for financial summary of Welch’s era at GE.) The GE Heritage Founded in 1878 by Thomas Edison, General Electric grew from its early focus on the generation, distribution, and use of electric power to become, a hundred years later, one of the world’s leading diversified industrial companies. A century later, in addition to its core businesses in power generation, household appliances...
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