Essays on General Electric's Strategic Management Case Study

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The paper “ General Electric’ s Strategic Management”   is a   thoughtful example of the case study on management. General Electric was successful because Jack Welch used the management and motivation model that included goal setting and organizing the company on a corporate level for competitive challenges. He empowered workers at each level of the corporation and communicated his new visions and goals through the whole organization. Welch employed human relations management theory to motivate workers to contribute to change. Human relations management theory stresses the significance of understanding the motivation of employees in the place of work and believes that employees are motivated as a result of encouragement, recognition, and rewarding of personal contributions.

Motivation is also encouraged by better communication between workers and managers, greater involvement of managers in the working lives of employees and working in teams or groups ( Henderson, 2002)Welch used goal setting to motivate greater levels of accomplishment throughout the corporation, through setting corporation-wide goals and precise performance objectives for individual divisions and companies. He employed a competitive strategy to stimulate performance in different business units by requiring them to attain number two or number one status based on their market share in their particular fields.

Welch recognized that he could motivate greater degrees of performance through the set goals that were much greater than a manager would have set for himself and the stretch goals usually enables people to outperform their original goals. However, goal setting is accompanied by emotions like stress and relief. Stress occurs when one is trying to achieve the goal or when a goal is not achieved while relief is felt when the goal is achieved (Reeve, 2005). Welch played on these emotions in the application of his setting of goals and since he set extreme stretch goals, he had the incented effort towards the goals which seemed unattainable.

He recompensed individuals by offering bonuses in they attained higher improvement towards these goals, even if they failed to achieve them.


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