General Electric Company

Case 11- 6 general electric confederation The General Electric Comp either is a large multilocation corporation assiduous in the fashion and marketing of a wide flesh of electrical and associate prod-ucts. In 1964, there were almost four hundred 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. thoroughgoing 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 introductory 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 fully effective it would impoverishment an improved system of management control. It also recognized that any improved system of control would command better musical rhythms of per¬formance. To proper this need, the company established a measurements abide and created a special organizational unit to go for out this project. This case summarizes the master(prenominal) features of this project, with particular emphasis on mensuration 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 embodied functional services divisions. A permanent organizational unit, initially called measurement ser¬vice, was go down up to carry out this project. An early on 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 hypothesise: 1. Measurements were to be designed to measure the performance of organi- zational components, rather than of managers. 2. Measurements were to want common indexes of performance, but non common standards o f 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, hostel it on our website: OrderCustomPaper.com

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