• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Question: What factors contribute to the success of Work-out? What are the possible negative consequences? Elaborate your answer briefly. Introduction General Electric's Work-out process began in 1989, as an effort of Jack Welch, GE's CEO

Extracts from this document...

Introduction

GE's Work-Out Process Question: What factors contribute to the success of Work-out? What are the possible negative consequences? Elaborate your answer briefly. Introduction General Electric's Work-out process began in 1989, as an effort of Jack Welch, GE's CEO, to transform the corporate culture. Welch plays important managerial roles in the whole process, namely: interpersonal, informational and decisional. Originally, Work-out process begun as an effort to eliminate waste and redesign processes to take out unnecessary work. In 1990, GE Annual General Meeting, Welch's language and description for the Work-Out process was action oriented: "a relentless, endless company-wide search for a better way to do everything we do." Increasingly, the focus of Work-out process shifted to business processes, then to customers and suppliers, then to change acceleration. (Locke, 2002, p11) "By the late 1990s, Work-Out process had become the basis for the company's push into Six Sigma and has since served as the foundation for GE's work on digitization and e-business." (Rath & Strong, 2000) Work-Out process was a communication tool that offered GE employees a dramatic opportunity to change their working lives (Crainer, 1999). This process captures the collective creativity of an organization on critical business issues and translates those ideas into action. Work-Out process also explicitly aims to help an organization development through five key dimensions: (i) ...read more.

Middle

If no rework takes place, individuals often develop personal strategies to make systems and processes work for then. Such work-around may be effective for the individual, but are often sub-optimal for the whole, if not destructive. The process used allows people to focus on the things that are causing way them most frustration - "the problems" - but to tackle them in amore creative way than merely solving them and in line with the organizational strategy. Additionally, Ulrich, Kerr, & Ashkenas (2002) depicted that the followings are what make Work-out such a successful process: * Commitment to hearing the real issues that get in the way of performance - the work-out process must go into the process under the support from the open-eyed and wholehearted managers as they may feel on the spot and may feel attacked. * Commitment to coming up with ideas that can address problems quickly - Welch's intention in stressing speed and thus, leader had to say "yes" or "no" on the spot to every idea presented at town meeting. Taking it under advisement for study was not an option. (Kleiner, 2003) * Commitment to ensuring that ideas turn into action - after the meeting, teams have to implement their approved recommendations and plans very quickly within sixty days. From the mindset of Welch, Work-Out is a cultural revolution and thus in order to make the process success and to pass the revolution. ...read more.

Conclusion

Additionally, the organizational factors making employee feel stress. Under GE Work-Out process, the new design of the individual's job like autonomy, task variety, and degree of automation may exert anxiety and stress on employees. Work-Out process fostered the idea of 'boundaryless learning organization" throughout GE. The change in organization structure making employee experienced stress. The act of delayering may reduce the "sphere of influence" of senior staffs. They will have psychological effect of stress and negative consequences are aroused in terms of depression and decrease in job satisfaction. (Robbins, 2005) Welch exerts high pressure on senior staff; he said that "You can't grow long-term, if you can't eat short-term. Anybody can manage short. Anybody can manage long. Balancing those two things is what management is". (Ulrich, Kerr & Ashkenas, 2002) So the job of leadership is to deliver both short-term profits and long-term organizational strength. The psychological contract between employees and organization face great challenge. Conclusion GE is a showcase for successful organizational change. In the process of applying Work-Out process, one lesson should be clear: Work-Out is a process, not just an event. (Schaninger, Harris & Niebuhr, 2000). It is believed that hiring skilled external facilitators is not enough to guarantee the process. Human capital in GE is the key determinant for the success as the talent can generating and securing to foster a culture emphasizing employee participation in problem solving and accountability for its implementation. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Marked by a teacher

    Sainsbury's organizational structure.

    5 star(s)

    that the staff would be doing their normal jobs and be able to use the new equipment (tills for example) and not hold customers up, and cause a queue due to the staff not being able to know how to use the till.

  2. Hagar Cohen's work, Glass, Paper, Beans.

    The worker becomes so routinized used to earning that same wage, doing that same job, that they in some ways feel lucky and take pride in the predictability of their job. In Ruth's case this can be seen when she discusses her job as an assembly line worker and other

  1. Building Effective Teams.

    involvement from subordinates.term papers vqrgOrganizations have been "structured historically to reinforce authoritarian management styles" (Mosvick-Nelson 109). There is no easy way to facilitate a team-oriented decision making policy. The authoritarian organizational structure is still the type of management style most used in business (Mosvick-Nelson 109), and for a good reason.

  2. Business at Work - ASDA

    Asda strives to provide as much relevant information about products and services throughout the store, in a manner, which is understandable to the customer. It intends to achieve this by communicating various types of information such as public safety notices, new promotions and products and services, price reductions, charity

  1. As a short-term business Consultant, I have been hired by Alton Towers PLC to ...

    Messages are passed on through the different levels of a business for example the management will send messages down to the employees to tell them of any meetings or job changes. If this didn't happen then the business would not be successful.

  2. Business At Work - An extensive report on McDonalds

    people who are into healthier eating and therefore attracting new customers, also, people who already visit McDonalds frequently may purchase it just to try it. 6.0 (E4) (C2) MANAGEMENT STYLES There are three main types of management styles and every business will use these.

  1. If the company does not have an effective process of hiring staff then they ...

    Kantar: the job itself should be with high responsibility to motivate the employee and to keep them going also the level of pay is important for motivation. This is a financial way of motivating and it is very effective to a lot of people but now people are looking for more non-financial rewards in jobs.

  2. What is the purpose of management theory? Explain how knowledge to understanding of management ...

    However, unions resisted his improvements, and most workers persisted in using the old, fatiguing methods. The Gilbreths believed that there was one best way to perform an operation. However, this "one best way" could be replaced when a better way was discovered.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work