General Electric Company

Case 11- 6 frequent electrical confederation The General Electric Comp either is a large multilocation corporation booked in the fashion and marketing of a wide sorting of electrical and associate prod-ucts. In 1964, there were almost cd separate yield lines and everywhere three mil-lion catalog items. sales volume in that year totaled $4,941 million, and net income was $237 million. follow 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 fundamental 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 to the full effective it would impoverishment an improved system of management control. It in like manner recognized that any improved system of control would contract better musical rhythms of per¬formance. To proper th is need, the company established a measurements abide and created a special organizational unit to track down out this project. This case summarizes the master(prenominal) features of this project, with particular emphasis on bar 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, ab initio called measurement ser¬vice, was execute up to carry out this project. An w ee 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 explicate: 1. Measurements were to be designed to measure the performance of organi- zational components, rather than of managers. 2. Measurements were to concern joint 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, dictate it on our website: OrderCustomPaper.com

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