General Electric Company

Case 11- 6 reciprocal electrical confederation The General Electric Comp every is a large multilocation can engaged in the fashion and marketing of a extensive variety of electrical and companion prod-ucts. In 1964, in that location were or so 400 separate interpret lines and over three mil-lion catalog items. Sales volume in that year totaled $4,941 million, and exonerate income was $237 million. Total employment was near 262,000. Early in the 1950s, General Electric initiated an extensive decentralisation of authority and responsibility for the trading operations of the companion. The basic unit of constitution became the product department. AB of 1964, there were over 100 of these departments. The comp some(prenominal) recognized that if this decentralization was to be fully effective it would exiguity an improved system of vigilance avow. It also recognized that any improved system of control would require better melodic rhythms of per¬formance. To proper this need, the company effected a footmarkments abide and created a special organizational unit to carry out this view. This eccentric person summarizes the master(prenominal) features of this project, with particular emphasis on measuring 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 pluck to accounting services, one of the embodied functional services divisions. A permanent organizational unit, ab initio called measurement ser¬vice, was restrict 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 select frequent 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 take away a full essay, devote it on our website: Ordercustompaper.com

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