Case Study: Organizational Health Management and Performance at GE

This case study examines the organizational health of General Electric (GE), focusing on its performance management system. The study begins with an introduction to organizational health and its importance, followed by a reflective section detailing the author's learning experience. The core of the study is a consultancy case study that analyzes GE's organizational performance management, including performance measurement, communication with stakeholders, risk management, quality management, financial performance, and human resources. The study highlights GE's strengths, such as its strategic business plan and use of performance measurement tools like balanced scorecards, while also identifying areas for improvement. Implementation issues and recommendations for enhancing GE's operations are discussed, providing insights into how the company can further optimize its organizational health and performance. The study underscores the significance of aligning strategies, managing risks, and maintaining strong stakeholder relationships to achieve sustained success in a competitive market.

Managing Organizational Health
(CONSULTANCY CASE STUDY )
1

Table of Contents
INTRODUCTION ...............................................................................................................................3
REFLECTIVE .....................................................................................................................................3
CONSULTANCY CASE STUDY .......................................................................................................4
Introduction to Case Study Organization.........................................................................................4
Organisational Performance Management and Performance Measurement....................................4
Communicating Performance to Stakeholders................................................................................4
Risk Management............................................................................................................................5
Quality Management and Improvement..........................................................................................5
Financial Performance ....................................................................................................................5
Customer and Client Perspectives ..................................................................................................6
People Perspectives (HRM) ............................................................................................................6
Implementation Issues ....................................................................................................................7
Recommendations for Improvement ..............................................................................................7
REFERENCES...................................................................................................................................10
2

INTRODUCTION
Organizational health is adapting the present changes because it shapes the future of
business in the right direction as compare to the competitors. A health organization do not simply
learn to adjust in the current environment or face the challenges that affects its performance (Keller
and Price, 2011). Such type of company believe in to develop a capacity to learn and keep changing
over the time by bring modifications. The present study is relating to managing organizational
health and to understand this, a case study is undertaking. Following research is dividing into two
section: first is essay that will be related to organizational performance management and
measurement and contribution of balanced scorecards in managing organization performance.
Second section is based on case study that explain the current system of organizational performance
management (OPM) of an organization.
REFLECTIVE
The present study has related to managing organizational health. The entire research has
based on organization performance management and performance measurement. From this, I have
learned that for a company, to survive in the market, it has needed to managed performance level. It
has aligned firm objectives to its strategies in the right manner. The pervasive characteristics of
organizational performance management has ensured effectiveness of the organization. Along with
this, I have also gained the knowledge about benefits of performance management system for an
enterprise in numerous aspects. Many of the firms have considered organizational performance
measurement as a starting point for analysing the performance. There have various internal and
external factors that has affected the performance level company either in positive and negative
aspects. So, it has required to manage and measure them. On the other hand, I have learned that
balanced scorecard has significantly give contribution in managing organizational performance on
various aspects. It has delivered many kinds of benefits to the firm by which it can be easy to
manage overall performance level of business. Beside this, I have explored that General Electric has
one of the company that has used Organizational Performance Management (OPM) system at the
workplace to manage the performance level. With the help of the current methods, firm has
communicated business performance to the stakeholders. Along with this, at the time of
implementation of strategies and select target market, it has considered risk management to ensure
the organizational performance. Further, for managing quality of products and its improvement,
OPM system of GE has played an significant role. Financial performance has helped in measuring
market patten and forecast sales, profits and other things in the future. At the time of
implementation of OPM system, company has various issues. With the help of various suggested
3

methods, organization can minimize the impacts of issues on organization performance and manage
it in right manner.
CONSULTANCY CASE STUDY
Introduction to Case Study Organization
General Electric (GE) is an American multinational conglomerate organization and situated
in New York. It run its business in various segments such as appliances, waster and power, oil and
gas, energy management, aviation, healthcare, financial services, health care transportation, medical
services etc (Nudurupati, Bititci and Chan, 2011). At present, 305000 employees are working in the
organization across the world. According to the Fortune 500 survey, GE has got 8 ranking regarding
effective organizational performance management. Recently, it has found that GE has implemented
Organizational Performance Management (OPM) system. But still, company is facing some issues
regarding managing performance across the world. It has unable to align its strategies with the
organization objectives and not clarify mission and vision in front of the employees (Arzu Akyuz
and Erman Erkan, 2010). So, it has required some improvements in OPM system so that
organization performance can be effectively manage.
Organisational Performance Management and Performance Measurement
At the time of evaluation of organizational performance management and performance
measurement of GE, there aspects taking into the consideration. High Level Aspirations Expressed
as Outputs
and Outcomes, Strategic Business Plan and Performance Measurement Tools and Techniques have
the elements that has considered at the time of performance measurement and management (Micheli
and Manzoni, 2010). From the assessment, it has explored that company has maintained a balanced
between expected outcomes and actual results. Along with this, GE has used various kinds of
methods and techniques to maintained its same performance around the world. On the other hand,
firm has developed an unique, creative and effective strategic business plan that has completely
align with business objectives and goals. On the basis of this, new aim and mission has established
to manage the performance level (Taticchi, Tonelli and Cagnazzo, 2010). Along with this, GE has
also used performance measurement tools and techniques such as balance score card, 360 degree
feedback etc.
Communicating Performance to Stakeholders
There are many stakeholders who connect with GE for different purpose and benefits. These
are government, employees, top management, customers, suppliers etc (Gimbert, Bisbe and
4

Mendoza, 2010). For maintain the trust, increase investment and become a market leader, it is
important for the organization to deliver the right information to its stakeholders. For
communicating, firm has used different types of communication media by which it can deliver
contents to them. To analyse communicating performance to stakeholders with respect to GE, it had
explored that with the help of comparing the actual and expected outcomes, the important
information can be deliver to them (Bititci, Garengo and Nudurupati, 2012.). Along with this, a
prepared strategic business plan has also communicate data to the stakeholders. Further, the
application of performance measurement tools and techniques, essential information has presented
in front of targeted group of people.
Risk Management
At the time of performing the operation in the world, GE has experienced various risks. In
order to minimize the impact of hazards on business activities, organization has adopted risk
management strategies (Walker, Boyne and Brewer, 2010). There are two major area where it has
applicable: one is target market and second is implementation of new strategies. From the
assessment process with the help of OPM, it has found that organization has effectively
management all kind of risk and it has made minimal effect on business operations. GE has targeted
different markets and serve diversified products and services to the customers (Robbins, Judge and
Boyle, 2013). While, at the time of implementation of strategies, OPM system has minimized
impacts of various risk factors with proper analysis ans assessment process. Along with this, some
prevention techniques have also used to minimize the occurrence of risk.
Quality Management and Improvement
GE has deal in diversified products and serve worldwide market. At the time of delivery of
goods and services, quality management and its improvement aspects have taken into the
consideration (Morrow Jr, MoodDisch and Kang, 2015). Existing OPM system of organization has
developed some quality standards and monitor the quality of end products to ensure that they are
according to the set standard or not. Further, company has invested more amount of capital with the
aim of bring the improvement in quality of the final products. So, it can be said that the existing
OPM system of GE has able to manage quality of goods and always try to bring the improvements.
Financial Performance
For an organization, it has important to measure financial performance to know about the
current market position. There are different reasons that shows to consider at the time of
performance management. These are managing cash flow, increase capital investment, company
growth, borrow money from the market etc (Taticchi, Tonelli and Cagnazzo, 2010). On the other
5

hand, there are some key standards on the basis of financial performance can be measure like
growth profit margin, operating margin, net profit margin and return on capital employed. In the
case of GE, the current OPM system has also used in to measure financial performance. It has used
to compare current and previous outcomes to ensure that company is performing in the market
according to the expectations or not (Zairi, 2012). For this, various kinds of financial tools and
methods have used by the company to know about current profits level, cash flow, capital
investment etc. From the assessment, it has described that on the basis of financial performance, GE
has able to analyse market patterns, sales patterns, forecast budget and sales of near future etc. On
the other hand, by monitoring the financial performance, GE has tried to ensure that current
financial performance has suitable for more investment or not (Baghsorkhi, Delahaye and Hwu,
2010). In the basis of obtained information, it has became easy to manage performance of entire
organization across the world. Further, by measuring the outcomes with OPM system, GE has
effectively managed organizational performance.
Customer and Client Perspectives
At the time of doing the business, it has important for the organization to know about
customer and client perspective. It helps in understand about their needs and requirements of the
end users and try to make modifications in the services. With the time, the perspective of consumers
have changed and it has directly affected the organizational performance, productivity and business
operations (Sundaresan and De Donatoand Pescapè, 2011). So, it has essential to know about client
and customer perspectives in right manner. In the context of GE, it has served different kinds of
goods and services to the consumers and other supportive organizations. From analysis of OPM
system of organization, it has identified that company has made a complete and deep market
research to understand about the customer perspective regarding the products. The design and
feature of the goods have according to the end users demand (Franco-Santos, Lucianetti and
Bourne, 2012). In other words, it can be said that all commodities are customized in nature and
meed the requirements of end users. By doing this, GE has effectively management organizational
performance and tried to maintained market share. Further, with right communication methods,
organization has established contract with the customers so that their opinions and perceptions
regarding the goods can be easily know (Bititci, Garengo and Nudurupati, 2012). So, it can be said
that with the application of existing OPM system, GE has managed its current organizational
performance and take competitive advantages in the market place.
People Perspectives (HRM)
HRM is a main part of an organization because it help in achieve the objectives and goals.
6

From OPM system of GE, it has found company has effectively managed its entire workforce.
Along with this, different training and development programs have organized for the workers to
developed an skilled staff (Franco-Santos, Lucianetti and Bourne, 2012). Company has also develop
some beneficial policies for the employees so that they can motivated in the right direction. On the
other hand, it has not made any kind of discrimination with any employees or candidate. So, it can
be said that from the people perspective, GE has effectively managed its organizational
performance across the world by meeting the satisfaction level of entire workforce.
Implementation Issues
At the time of implementation of OPM system, GE has various kinds of issues such as
resistance of staff to accept the new system and changes, lack of finance, lack of management level
support, different external environmental factor etc.
Recommendations for Improvement
For General electric in order to improve overall operations being carried out it is necessary
for business to consider some improvement. Further, business is required to improve its
performance measurement criteria so that` it can operate efficiently in the market. Company must
rely on effective methods of performance measurement such as advanced. IT systems must be
employed where use of advanced software and system can assist organization in identifying the
loopholes where business is not performing up to the mark and needs improvement (Bititci,
Garengo and Nudurupati, 2012).
Apart from this, business is required to rely on financial performance as a tool for measuring
performance such as ratio analysis and other type of tools must be undertaken for measuring overall
performance. Present performance must be compared with past and corrective actions must be taken
if company is underperforming and improvement is needed (Taticchi, Tonelli and Cagnazzo, 2010).
Apart from this, separate department must be developed by management whose main
responsibility will be to assess organization performance on continuous basis and this can surly act
as development tool for the entire business (Muchiri, Pintelon and Martin, 2011). This can easily
enhance the value of internal operations being carried out and it assist in accomplishment of desired
aims and objectives. Business is required to modify its internal operations through use of better
technology and other methods that can assist in accomplishment of desired aims and objectives.
Apart from this, some other methods of evaluation are also considered to be effective which
can be undertaken by business such as balance score card approach which is based on the belief that
what company should measure in order to balance the financial perspective (Van Dooren, Bouckaert
and Halligan, 2015). It can support general electric to grab the range of opportunities being present
7

in the business environment and this can act as development tool for the entire business. This
instrument is highly characterized by flexibility and the major result areas depending on the interest
are staff, clients, managers etc. It is recommended to company to rely on this approach as through
this it is possible to identify the range of areas which are not performing well and in turn
improvement is needed necessarily (Lam, 2011).
Apart from this, it can enhance financial strength of the business where more funds can be
saved for conducting business operations in effective manner. Further, for performance
measurement market survey can be carried out where on the basis of satisfaction level of target
market it is possible to know whether all the operations carried out are efficient or not. Moreover,
level of customer satisfaction can assist in knowing the efficiency of enterprise in meeting with the
customer satisfaction which is the key to organizational success in the market (Chaffey and White,
2010).
Further, comparing market share with the past year is also considered to be one of the most
appropriate way through which business can measure its present performance and this can surely
bring favourable results for the business (Rolstadas, 2012). Competitor analysis is also one of the
most productive methods of bringing improvement in the major operations where business can track
performance of its competitors and loopholes can be determined in the performance of General
electric.
It is recommended to organization to carry out internal analysis timely so that areas that are
underperforming can be known easily and on the basis of same corrective actions can be taken for
growth and development of business in the market (Nudurupati, Bititci and Chan, 2011).
It is suggested to business to focus on training and development of its staff members so that
they can focus in business productivity by applying higher knowledge along with skills in the
business operations rather than on other areas. Organization must focus more on technology
advancement so that costs can be saved and in turn all the major resources can be utilized efficiently
(Arzu Akyuz and Erman Erkan, 2010).
Apart from this, management can take support from experts present within the company
who have proper knowledge in relation with the performance measurement and this can surely
allow in accomplishment of desired aims and objectives. Therefore, in this way these are some of
the main recommendations which general electric can follow with the motive to enhance its overall
performance in the market and this can surely produce favourable results for the enterprise in terms
of rise in market share along with profitability (Micheli and Manzoni, 2010). Through this business
can easily gain competitive advantage and can grab market opportunities also.
Apart from this it is the first and foremost duty of management to ensure that its internal
8

operations are quite flexible as on the basis of same it is possible to make changes in the internal
operations and this can surely bring favourable results for the business in the market where
organization operates (Taticchi, Tonelli and Cagnazzo, 2010).
9

REFERENCES
Books and Journals
Arzu Akyuz, G. and Erman Erkan, T., 2010. Supply chain performance measurement: a literature
review. International Journal of Production Research. 48(17). pp.5137-5155.
Baghsorkhi, S.S., Delahaye, M. and Hwu, W.M.W., 2010, January. An adaptive performance
modeling tool for GPU architectures. In ACM Sigplan Notices (Vol. 45, No. 5, pp. 105-114).
ACM.
Bititci, U., Garengo, P. and Nudurupati, S., 2012. Performance measurement: Challenges for
tomorrow*. International Journal of Management Reviews. 14(3). pp.305-327
Bititci, U., Garengo, P. Nudurupati, S., 2012. Performance measurement: Challenges for
tomorrow*. International Journal of Management Reviews. 14(3). pp.305-327.
Chaffey, D. and White, G., 2010. Business information management: improving performance using
information systems. Pearson Education.
Franco-Santos, M., Lucianetti, L. and Bourne, M., 2012. Contemporary performance measurement
systems: A review of their consequences and a framework for research. Management
Accounting Research, 23(2), pp.79-119.
Gimbert, X., Bisbe, J. and Mendoza, X., 2010. The role of performance measurement systems in
strategy formulation processes. Long Range Planning. 43(4). pp.477-497.
Lam, C.F., 2011. Passive optical networks: principles and practice. Academic Press.
Micheli, P. and Manzoni, J.F., 2010. Strategic performance measurement: Benefits, limitations and
paradoxes. Long Range Planning. 43(4). pp.465-476.
Morrow Jr, J.R., MoodDisch and Kang, M., 2015. Measurement and Evaluation in Human
Performance, 5E. Human Kinetics.
Muchiri, P., Pintelon and Martin, H., 2011. Development of maintenance function performance
measurement framework and indicators. International Journal of Production Economics.
131(1). pp.295-302.
Nudurupati, S.S., Bititci, U.S. and Chan, F.T., 2011. State of the art literature review on performance
measurement. Computers & Industrial Engineering. 60(2). pp.279-290.
Robbins, S., Judge and Boyle, M., 2013. Organisational behaviour. Pearson Higher Education AU.
Rolstadas, A., 2012. Performance management: A business process benchmarking approach.
Springer Science & Business Media.
Sundaresan, S., De Donatoand Pescapè, A., 2011, August. Broadband internet performance: a view
from the gateway. In ACM SIGCOMM computer communication review (Vol. 41, No. 4, pp.
10

134-145). ACM.
Taticchi, P., Tonelli, F. and Cagnazzo, L., 2010. Performance measurement and management: a
literature review and a research agenda. Measuring business excellence, 14(1), pp.4-18.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public
sector. Routledge.
Walker, R.M., Boyne, G.A. and Brewer, G.A., 2010. Public management and performance:
Research directions. Cambridge University Press.
Zairi, M., 2012. Measuring performance for business results. Springer Science & Business Media.
Online
DUGGAN, K., 2015. Six Companies That Are Redefining Performance Management .
[Online]. Available through:
<http://www.fastcompany.com/3054547/the-future-of-work/six-companies-that-are-
redefining-performance-management>. [Accessed on 4th June 2016].
Keller, S. and Price, C., 2011. Organizational health: The ultimate competitive advantage.
[Online]. Available through:
<http://www.mckinsey.com/business-functions/organization/our-insights/organizational-
health-the-ultimate-competitive-advantage>. [Accessed on 4th June 2016].
Smet, A., Schaninger, B. and Smith, M., 2014. The hidden value of organizational health—and how
to capture it. [Online]. Available through:
<http://www.mckinsey.com/business-functions/organization/our-insights/the-hidden-value-
of-organizational-health-and-how-to-capture-it>. [Accessed on 4th June 2016].
11