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How does the organizational culture of General Electric affect organizational behavior?

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  1. Introduction.
  2. Current Trends in Organizational Behavior.
  3. General Electric?An Overview.
  4. Benchmarking and evaluation in the organization each year produced a new crop of ?10 percent.?
  5. Jack Welch stepped down as CEO in 2001 and Jeffrey Immelt took over.
  6. The Future of General Electric.
  7. Conclusion.

Competition among organizations in the same industry has promulgated the development of numerous strategies to facilitate the success of the organization. While some strategies focus on streamlining operations to reduce fixed costs of their strategies focused on the development of internal culture as a means to increase the employee morale and bolster productivity. Although most of the strategies developed in the context of establishing a competitive edge the organization have proven to have notable impacts on the organization, no one method for organizational development has proven to be a panacea for the success of the organization. For this reason, scholars examining the ?how? and ?why? of successful organizations must often provide a wide overview of the organization and its intrinsic and extrinsic properties. Only through a critical analysis of this information can a more integral understanding of success in the organization be effectively understood.

[...] Even though this process served as the impetus for the financial development of the organization, Immelt's analysis of General Electric definitively demonstrates that the culture that was created under Welch's tenure has had a negative impact on the development of the organization. Hence, although it has been possible for General Electric to be successful in the past 20 years, one cannot help but wonder what the future holds for the organization. The Future of General Electric Considering what Jeff Immelt has noted about the lack of innovation of the General Electric organization, it seems feasible to argue that his concerns may indeed be warranted. [...]

[...] In addition, Immelt is concerned that the use of bottom-line techniques to drive the development of the organization is a process that is suffocating the innovation needed to move the organization forward (Brady, 2005). In short, General Electric has created a culture so focused on the financial outcome of every decision that mangers and employees in the organization are afraid to develop innovative methods that may eventually fail. In this context, it becomes evident that what has been left in the wake of Jack Welch's organizational culture is a team of highly skilled employees that are unable to use their skills and talent to improve the organization. [...]

[...] With the realization that the culture of the organization can have such a notable impact on the development of organizational behavior, the case of General Electric clearly elucidates the dynamic interplay that occurs between the culture established by leaders in the organization and the resultant behaviors of employees. If Immelt is able to find the right culture to develop employees, it is possible that he can restructure the organization once again and move it toward a successful financial future. References Brady, D. [...]

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