Analyzing Organizational Structures: GE Case Study - Leadership Module

This case study analyzes the organizational structure and leadership strategies employed by General Electric (GE), focusing on the impact of teamwork on employee productivity and overall success. The analysis explores the suitability of different organizational structures, comparing the multidivisional structure used by Henderson with the matrix structure adopted by companies like Boeing and Medtronic. The study agrees with Jack Welch's statement on the importance of employee engagement and highlights other factors such as work environment, technology, and goals. It also discusses potential investments in employee training and the role of GE's financial capacity in implementing production facility changes. The case study provides insights into the challenges and opportunities faced by leaders in managing large organizations and fostering effective teamwork.

Case Study “Teamwork Takes to the Sky: The Case of General Electric”
1. The type of organizational structure selected by a business leader for their business vary due to
size, need and role of business in their respective industry (Status.net, 2019). As such, the
strategy implemented by Henderson will not totally work for a manufacturer of entire plane or
medical equipment. Disadvantages of multidivisional structure (which Henderson used) are
(Status.net, 2019):
- teams of different divisions undermine and compete with one another for resources,
- there is competition among groups because they feel that their product or project is more
important than the other, and
- difficult to manage because each division has unique purpose.
A more suitable structure for a manufacturer of entire plane or medical equipment is a matrix
structure. Boeing, the world’s largest aerospace company (Boeing, n.d.), and Medtronic, a
medical technology company, both have matrix structure (Calmo, 2009; Rosenbaum, 2016).
This type of structure is a combination of functional and divisional structure. The top leaders
are the ones who decides on how to run the organization and how the authority is delegated.
And then the organization is broken into smaller divisions headed by the department head who
then reports to the top leaders. Each division is integrated into the organization (Calmo, 2009).
The strategy of Henderson will work in each division level but would be difficult to implement as
the company becomes larger and more products or projects are introduced. However, in any
structure, teamwork will definitely play a role to the success of a company.
2. I agree with Jack Welch’s statement. Aside from the employee engagement which Welch
indicated on his statement, the other factors are:
a. Work environment. The environment should have supportive and positive atmosphere,
provides honest feedback and timely praises. According to Carrasquel (2019), “when the
environment is negative or tense, engagement and productivity levels decrease significantly,
affecting the company as a whole” (para. 15).
b. Technology. Carrasquel (2019) noted that freedom to use technology as they see fit
increases employee productivity. Moreover, technology should be used to organization’s
advantage instead of limiting the use of it.
c. Goals. Noted in CakeHR Blog (2019) that work goals that are clearly defined boosts
productivity because they’re measures of productivity themselves.
3. Henderson could invest on the training of generic mechanics so that they can be a FAA-certified
individual. He can also set a bond for those who attended the trainings so that he can be sure
that they will not leave the company once they got their licenses.
4. Yes, financial capacity of GE helped Henderson to pull off his revolutionary production facility. If
he was working for a new, small, start-up organization, it will be difficult for him to hire staffs
with FAA-certified mechanic’s licenses and contract out non-job-related chores which are voth
costly for an organization.

References:
Boeing. (n.d). Boeing in Brief. https://www.boeing.com/company/general-
info/#:~:text=Boeing%20is%20organized%20into%20three,global%20provider%20of%20financing
%20solutions.
CakeHR Blog (2019, September 18). 5 Critical Factors Affecting Employee Productivity At Work.
https://blog.cake.hr/5-critical-factors-affecting-employee-productivity-at-work/
Carrasquel, P. (2019). 3 Crucial Factors Which Influence Employee Productivity. Sunlight.
https://www.sunlight.is/post/3-crucial-factors-which-influence-employee-productivity
Calmo, R. S. (2009, August 23). Boeing Organizational Structure.
https://www.slideshare.net/rscalmo/teamdweek3alltogether
Rosenbaum, J. (2016, October 23). Medtronic – A Company No One Knows, And How It Dominates The
Medical Device Industry. Jesse’s Org Theory Blog Corner.
https://rosenbaumweb.wordpress.com/2016/10/23/medtronic-a-company-no-one-knows-and-
how-it-dominates-the-medical-device-industry/#:~:text=and%20mission%20statement.-
,Corporate%20Structure,sold%20in%20over%20150%20countries.
Status.net (2019). Company Organizational Structure: Functional vs. Divisional vs. Matrix vs. Flat.
https://status.net/articles/company-organizational-structure-functional-divisional-matrix-flat/