Week 8: Final Case Analysis

1

There are various constraints or limitations that would hinder a successful implementation of change in the structure and culture of the organization. The limiting factors include policies, cultural and market constraints that would be a big hindrance to the intended change aimed at improving the performance of the organization.  The policies constraints in GE Electrical were seen in the way systems were run beginning with the planning and budgeting processes. Welch needed to bring about change that would ensure that the form became more lean and agile, so that an effective de-staffing process would be achieved in all the big groups’ companies headquarters.  It was important to achieve a significant reduction of staff so that the remaining staff could strategically be planned for.  The limitations came in terms of dissatisfaction associated with downsiszing, de-layering and de-staffing m which resulted restructuring of the organization to the point of earning Welch a nickname – Neutron Jack.  Policy constraints is seen when a change on how things should be done, including procedures and regulations is being implemented (Woeppel, 2016). Such changes can results to great resistance and dislike among individuals entrusted with implementing it.  Policy constrain mostly arises from policies that are being established or the older ones which are widely accepted in the organization (Woeppel, 2016). 

Another constraint involves the culture shock that was experienced after the restructuring and organizational culture change that was aimed at boosting productivity through downsizing and removing bureaucracy.  Change is introduced with an aim of driving growth and future success and should be welcomed as an opportunity to more efficiency and creation of new successes (Giorgi, Lockwood & Glynn, 2015).  However, the management exhaustion relating to culture shock in GE Electrical made the efforts by Welch and his team to move past the introduction of change.

 Market constraints involve limitations that the management has no control over since it involves external forces, and a leader has to adapt to these changes (Woeppel, 2016).  The internationalization efforts pursued by Welch after building a solid base at home were faced with a changing global market that required new strategies that would ensure sustained competitiveness.  This required better cultural initiatives and an improved global that would be implemented though realigning skills and mindsets of the workforce. This resulted to rumblings among those who felt that they were being overworked in an environment that was new and demanding, which increased the distrust that had arisen from the major layoffs. The limitation arose from the need to redefine the implicit contract that the firm had with the workers.  

2

 The major problem in the case was to find a leader who would drive successful organizational performance similar to the one achieved by Reg Jones, the retired manager. The coming of Welch into the leadership of the organization heralded new chapter where restructuring of the organization, change in organizational culture and internationalization were give much attention. For the solution to bear the intended results, the restricting process needed to be done in way that the performance of the organization is not disrupted.  An effective restructuring should ensure that the process is not expensive and does not lead to new problems similar to the ones being solved. This is because it takes long for the staff to adapt to new the introduced structures and this may result to dissatisfaction.  This requires a system that is based on strategic planning and operations management in way that performance is measured and rewarded (Griffin, Phillips & Gully, 2016). Progress of the new structures and policies established has to be measured against a set goal. The restructuring in GE Electricals required new staffing and budgeting processes, and re-organization of new business operations to suite the changing and competitive global market environment.  In the course of business operations, the use of a balanced scorecard would provide a framework that could align the new structure and the strategy of the organization (Koi-Akrofi, 2017).  The various CEOs of General electrical business units would use the toll as the driver for performance of their units.  This means that managers would be able to communicate to the overall leader and their staffs about the cause-effect relationship that provide the desired value proposition for their units.  The use of scorecard could serves as an essential toll in the implementation and monitoring of the strategy of every business unit (Koi-Akrofi, 2017).  

In addition, a secondary problem involved the need for culture change in the organization would require the leader to align the interest of the organization and those of employees so as to reduce dissatisfaction and rumbling from the feeling of being overworked.  The manager should avoid creation of unfeasible roles that would elicit resistance from employees who are the implementers. A change in organizational culture is normally a huge undertaking and will requires all tools for changing people mind to be integrated (Griffin, Phillips  & Gully, 2016). The change in culture should not only focus on firm’s performance but also on the growth and learning perspective.  This involves development of human capital through activities such as training and leadership development and even knowledge management. This will result in a culture where employees will feel engaged.

 The secondary problem involved redesigning processes so that the required efficiency levels are attained since inefficiencies would lead to losses due to poor crafting and low quality level within the firm. The inefficiencies lead to reduced morale among employees who felt overstretched. The introduction of Six Sigma strategy based on an efficient program was supposed to solve the problem.  The combination of lean efforts and Six Sigma would result to improved bottom –line results in the various operations of the company.  While lean efforts will lead to reduction in wastes and hence, costs, Six Sigma would be oriented towards the improvement of quality of products by constantly minimizing the flaws that arise out of production processes (Jones, 2014).

3

 The participative leadership explains the kind of leadership employed by Welch in his endeavor to restructure the organizational and change the organizational culture. The leadership style adopted Welch involved a lot of consultation and engagement with managers in various business units and employees. He developed a team that would help in change implementation, and with which he held long discussions on challenges arising from the changes introduced at various business units. The employees were also provided by an opportunity in which they could air openly speak their minds on how the business would be conducted more effectively.  Participative leadership seeks the involvement of others in decision making process including stakeholders and the subordinates (Western, 2013).

 Two major qualities that defined Welch’s leadership are vision and courage.  This is seen in his unwavering focus on the issue that mattered most for the organization remain competitive to in the change global environment.  The focus was a new organizational structure that emphasized on the performing business units and driving them to achieve the goal of internationalization. Courage is one quality that enabled the leader to take bold steps in restructuring the whole organization.  Courageous leaders have to take risks that are perceived as going against the grains of the organization (Western, 2013).  Servant leadership that is a major style that Welch would have followed in bringing required change in GE Electricals.  The primary focus of servant leadership is the well-being and growth of others and starts through a natural feeing that a person wants to be a servant and the choices to lead (Focht  & Ponton, 2015).

References

Griffin, R. W., Phillips, J. M., & Gully, S. M. (2016). Organizational Behavior: Managing People and Organizations. Mason, OH: Cengage Learning.

Focht, A., & Ponton, M. (2015). Identifying primary characteristics of servant leadership: Delphi study. International Journal of Leadership Studies, 9(1).

 Giorgi, S., Lockwood, C., & Glynn, M. A. (2015). The many faces of culture: Making sense of 30 years of research on culture in organization studies. The academy of management annals, 9(1), 1-54.

 Woeppel, M. (2016). Manufacturer's guide to implementing the theory of constraints. CRC Press.  148

 Koi-Akrofi, G. Y. (2017). ORGANIZATIONAL PERFORMANCE IMPROVEMENT USING THE BALANCED SCORECARD APPROACH: THE CASE OF AN ACQUIRED TELECOMS COMPANY. International Journal of Innovation and Applied Studies, 20(3), 850.

 Western, S. (2013). Leadership: A critical text. 34-37

Jones, E. (2014). Quality management for organizations using lean six sigma techniques. CRC press. 41-43