• 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)

    Under person culture, the organization structure will be centralized and the style will be autocratic. As the Sainsbury is a multinational company dealing with different segments and diversified products network it is following role and task culture. Thereby its organizational structure is decentralized and the management style is democratic.

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

    Going from selector and packer to quality control technician from hourly worker to salaried-these things were beyond Ruth's fondest dreams (Hagar-Cohen 1997:32) This predictability of being a line worker and earning this wage became so imbedded into Ruth's life that she considers herself lucky to have gotten these chances and lucky to be gainfully employed by the company.

  1. John Smithers at Sigtek - Organizational Behavior

    Although Patricof clearly plays politics, it does not appear that he has any actual goal conflict with Smithers.

  2. Business at Work - ASDA

    E4) - THE VARIOUS FUNCTIONAL AREAS WITHIN THE ASDA ORGANISATION As with any nationally large, professionally established company, Asda has divided its organisation into four different functional areas of business. These are the Human Resources, Finance, Customer Services and Marketing and Sales divisions of the business.

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

    As a major outcome of these interviews, supervisors learned that an employee's complaint frequently is a symptom of some underlying problem on the job, at home, or in the person's past. Human Relation Approach However flawed the studies, the Hawthorne research set the stage for intense interest in the social dimension of human behavior in organizations.

  2. Motivation at work: a key issue in remuneration

    This led to research studies by Elton Mayo and his team from Harvard University. Their initial work in the 1920's found that workers (in a Philadelphia textile mill) who were given extra breaks and subsidized meals at work did

  1. Building Effective Teams.

    With practice and improvement, the group can assume the other characteristics needed to PERFORM and will be well on its way to becoming a high performing team. As organizations continue to flatten their hierarchies and empower front line workers with more responsibility and authority, the use of teams will continue to rise.

  2. Critical Success Factors

    Thus, having a generic list of CSFs is not going to help in project's success/failure. Thus, grouping the CSFs has got its significance('Factor Groups' , W Bellasi and O I Tukel (1996)]. The CSFs, maintained in a list, need to be monitored for implementation all over the project lifecycle ("System responses" [W Bellasi and O I Tukel (1996)]).

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