General Electric Manufacturing Operation Essay Examples
Type of paper: Essay
Topic: Strategy, Workplace, Business, Employee, Organization, Management, Growth, Development
General Electronic is an advanced technology, capital, and services company focused on the development and manufacture of products for the transmission, generation, distribution, control and use of electricity. Some of its products and services include power generation, aircraft engines, security technology, water processing, business and consumer financing, medical imaging, industrial products, and media content. Its operations occur through eight major segments including Oil & Gas, Power & Water, Aviation, Energy Management, Transportation, Healthcare, GE Capital, and Home & Business Solutions. The paper explores the organization through a focus on its history, background, and operations. It analyzes GE’s scheduling, process strategy, Total Quality Management, Human Resources and Labor planning strategies, transportation mode, and inventory model.
The strategy at GE affects its eight major segments listed above. GE’s corporate strategy outlines the initiatives involved in its manufacturing operations. The growth strategy is part of the processes occurring in the various segments. According to Bucifal (2009), it involves a six-part growth process. Customer value focuses on the use of GE’s process excellence in creating customer value and driving growth. Innovation concentrates on the creation of new ideas and the processes to make them a reality. Leadership in technology ensures GE has the best products, services, and content. Commercial excellence ensures the generation of world-class marketing and sales capability. Globalization involves the creation of opportunities and expansion of developing markets. Growth leaders focus on inspiring and developing people that can help customers and GE grow.
It focuses on a strategy and process alignment; this involves aligning to changing external factors such as customers, competition, market, and technology. It connects the strategic and operational activities of the organization. The continuous process improvement occurs through optimization and standardization (Moon, 2009). The organization targets a high level of optimization in its products as well as operations. It seeks to maintain its position of advantage in the market through the six sigma approach. Its process strategy achieves superior management quality and cost competitiveness through the elimination of losses resulting from faults in the management systems.
GE has over 300,000 employees operating in 140 countries across the globe. Over the years, human capital has played a crucial role in the organization’s success. It is due to the efficient and effective use of labor through the adoption of various human capital strategies. First and foremost, it occurs through the alignment of HR in the business strategy. Instead of just being an administrative function, GE focuses on ensuring the HR actions, priorities, and initiatives align in the terms of the business plan. It thus ensures the company’s growth; this is because the human resource does all it can to reach out to employees and make them aware of their roles.
GE also ensures the effective and efficient utilization of labor through the provision of discipline and incentives to employees that meet or fall short of goals. For instance, Welch’s corporate strategy focused on the deployment of powerful incentives and delegation of responsibility. The employees are motivated to work harder through the rewarding of superior performance with recognition of talent and generous bonuses. It adopted a skills transfer corporate strategy involving value creation through skills transfer. It facilitates better identification of areas needing improvement. Value creation also ensures managers have knowledge of operations and how to develop, train, and attract the best talent. It also encourages collaboration and corporate ownership of the organization’s top performers. GE also adopts a diversification strategy in the training and development processes for employees.
GE promotes teamwork and support from all employees in the organization by meeting the needs of employees and encouraging operations towards a common goal. Effective and efficient utilization of human capital at the organization facilitates the provision of quality and world-class services and products to customers (Shaheen, 2013).
The labor planning operations at GE focus on developing conducive work environment and motivation to maximize productivity. It occurs through a focus on work schedules, rules, and employment stability. The employees are guaranteed employment stability through the various contracts and provisions for full-time employment. The work schedules are also flexible and manageable depending on the employees’ levels. In reference to work rules, GE applies principles of the complexity theory through hands off management practices. Employees are made aware of their duties and encouraged to accomplish tasks with minimal supervision. The decision units are allowed flexibility. The strategy encourages self-organization and self-determination. It instills a culture of collaboration among the employees where social networks can develop freely. It also encourages informal structures as key to innovation. GE successfully utilizes a people management approach through a reduction in the formal structure of management and governance (Shaheen, 2013).
In its labor planning processes, GE also focuses on diversity. GE’s over 300,000 employees reflect a diversity that benefits the organization. It seeks inclusiveness and diversity as essential contributors to its productivity, innovation, creativity, and competitive advantage (GE, 2015). Its diversity outreach involves the employment of African-Americans, Hispanics, and Asia Pacific Americans among others. It also promotes gender parity. GE brings culture, individuals, and ideas together.
Through its effective operations and corporate strategy, GE has evolved into one of the world’s most successful corporations. The conglomerate impacts the lives of many people worldwide through the products and services from its various segments. The paper comprehensively explores the company through a focus on its history and various features and operations. Its progress is due to a culture of leadership and diversity in driving productivity and innovation.
Bucifal, S. (2009). Corporate Strategy Analysis: General Electric Co. (1981-present). Australian National University. Retrieved April 5, 2015 from http://www.uni-erfurt.de/fileadmin/public-docs/Mikrooekonomie/Vorlesungsmaterialien/Management/Strategy%20GE.pdf
General Electric. (2015). Creating a Stronger GE: Our diversity story. GE Imagination at Work. Retrieved April 5, 2015 from http://www.ge.com/careers/culture/diversity
Moon, E. (2009). GE’s Growth Strategy. Slideshare. Retrieved April 5, 2015 from http://www.slideshare.net/ericmoon/ges-growth-strategy
Shaheen, J. (2013). General Electric: Using complexity theory, talent strategy, and forced ranking to build a dynasty. Retrieved April 5, 2015 from https://www.josephshaheen.com/general-electric-talent-strategy/254