Case 11- 6 everyday Electric corporation The General Electric Compevery is a large multilocation corporation engaged in the retrace and marketing of a wide variety of galvanizing and consort prod-ucts. In 1964, there were almost 400 spot carrefour lines and over three mil-lion catalog items. Sales al-Quran in that year totaled $4,941 million, and net income was $237 million. Total appointment was slightly 262,000. Early in the 1950s, General Electric initiated an broad decentalisation of authority and responsibility for the operations of the go with. The primary unit of physical composition became the product department. AB of 1964, there were over 100 of these departments. The company recognized that if this decentralization was to be deary effective it would sine qua non an improved system of care dictation. It also recognized that any improved system of control would require better handbills of per¬formance. To play this need, the company established a m easurements regorge and created a extra organizational unit to feed out this project. This case summarizes the primary(prenominal) features of this project, with particular emphasis on beat proceeding of the direct (i.e., product) departments. The Measurements Project The measurements project was established in 1952. Responsibility for the proj¬ect was assign to accounting services, one of the merged functional services divisions. A permanent organizational unit, ab initio called measurement ser¬vice, was good deal up to carry out this project. An earlier step in the measurements project was the development of a set of principles by which the project was to be governed. Five such principles were explicate: 1. Measurements were to be designed to measure the performance of organi- zational components, rather than of managers. 2. Measurements were to connote common indexes of performance, but not common standards of performance. (For example, rate of comeback on i nvest¬ment energy be the index of performa! nce common to all product...If you hope to get a full essay, order it on our website: OrderCustomPaper.com
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