Organizational Structure At General Electric Essay

1101 words - 4 pages

For a company to be successful it is important that it has very good organization. Organization can be defined in many different ways. Bateman and Snell define organizing as assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping job into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success (Bateman & Snell, 2011). When a company is able to successfully organize each portion of their business, they will then be able to maintain a strong foundation. A company that has managed to be successful through its well use of organization is that of General Electric Company. They have what it is called a ‘flat’ structure in which everyone becomes equal (Clawson, 2012). General Electric used to have 29 levels, but today it has only a handful of layers (Bateman & Snell, 2011).
The General Electric Company (GE) is organized with its chief executive officer, shareowner, and board of directors on the top of the pyramid, followed by their executive leaders and corporate staff. GE’s Board of Directors ensures the company serves the interests of shareowners and other key stakeholders with the highest standards of integrity and compliance. Serving equally as tough critics and wise counselors, they provide in-depth oversight of the major strategic issues of the company (General Electric Company, 2012). The authority officially vested in the board of directors is assigned to a chief executive officer (CEO), who occupies the top of the organizational pyramid (Bateman & Snell, 2011). There chairman and chief executive officer of General Electric Company is Jeff Immelt. Mr. Immelt has been named one of the "World's Best CEOs" three times by Barron's, and since he began serving as chief executive officer, GE has been named "America's Most Admired Company" in a poll conducted by Fortune magazine and one of "The World's Most Respected Companies" in polls by Barron's and the Financial Times (General Electric Company, 2012). By having such strong leadership, GE has managed to maintain success throughout these years. Another very important portion of GE’s organizational structure is its executive leaders; the men and women who are driving GE's many businesses. Highly regarded as the top leaders in their industries, each is leading their respective organizations to become closer to their customers, while finding new operational efficiencies and ways to work toward a better future (General Electric Company, 2012).
There are many different types of organizational structures. A flat structure, such as the one General Electric has, creates a wider span of control because it is organized with fewer reporting levels. On the other hand, a tall organization has many reporting levels creating a narrower span (Bateman &...

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