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Leadership Decision Making at General Electric

University: UK College of Business and Computing

  • Unit No: 17
  • Level: Undergraduate/College
  • Pages: 17
  • Words: 4250
  • Paper Type: Assignment
  • Course Code:

    R/508/3432

  • Country: UK
  • Downloads: 0
Question :

The scenario of this report determines that how an organisation is needed to be explored who has undergone major changes in past few years. Changes planned or made by chosen company will also be taken in account while considering case study of GE.

  • Explain influence of change, by comparing organisations, on strategy and operations an enterprise.
  • Analyse the impact on organisation behaviour by drivers of changes in the context of GE.    
  • Assess the influence of change barriers on leadership decision making at GE.
  • Apply various leadership approaches while dealing with change.
Answer :
Organization Selected : General Electric

INTRODUCTION

As per today's business environment, changes are consider as an important elements which may helps in attaining positive results but some time it also create issues within the company. Thus, changes are vital for improving performance level of the company. As they enhance their productivity level. As overall success of the company is highly based company capability of accepting changes. With the help of this manager of the company make effective strategies which contribute in establishing positive work environment at workplace. Mainly, there are two type of changes such as internal and external as well (Understanding and Leading Change. 2017). Both factors are important which directly impact on the leadership, team and employees. If company easily accept all the changes then it provide various opportunity in which workers enhance the chances of attaining desirable goals and objectives in set period of time. Along with this, it is important for company to effectively implement the changes which may helps in developing workers skills and knowledge. Current assignment is based on General Electric is an American multinational conglomerate which offer their various services in over the world. This report discussed about impact of change upon the organizational strategies. It also include affect of internal and external drivers of changes on workers behaviour, leadership and team as well. Along with this, different barriers of changes and its influence on leadership is also affect the overall decision making process of the company. In addition of this different leadership changes are also helps in dealing with changes in effective manner.

TASK1 P1 Evaluating impact of changes on strategies and operations by comparison of two companies 

Political factor- General electronic is multi- national business firms which requires to be manage the political structure in different nations. There are some nations which have domain for survival or development for business yet some of the other showing the troublesome situations.

Economical factors- This organisation is impacted through alterations in trade rates, cash esteem and also costs of loan (Grootenboer,  Edwards-Groves and Rönnerman, 2015). World has been by recession which follows through increase a gig economy.

Social factor- Culture, social traditions, standards and religion decide how to conduct business in a particular condition as well as nation. General Electronic is multinational business firm so there is a requirement to adjust different social complexities (Ielmini and Fugazza, 2011). Method of the life in particular nation decide business approaches, working hours and also develop types of merchandise.

Technological factor- Through innovation, there is a need of make changing or update the existing technology with in time period. It also advancing at high pace internationally. On the other hand old technology make negatively affect on operations of an organisation as well as economy of country. If in case an organisation can not come up with an innovation then it can not compete with its strongest competitors at market place.

SWOT ANALYSIS

Strengths

Weaknesses

  • Global strengths as well as recognition of GE organisation is strong.
  • The management of this company is strong.
  • Range of its goods or services is diverse.
  • Excellent management.
  • IT operate its business in more than 160 countries and has 5th rank in 500 list.
  • Proven business and leadership model.
  • Acquisition restriction.
  • Less flexibility.
  • Minimize proceedings and also enhance legal compliance prices for GE organisation.
  • Cost of borrowed funds are high.
  • Diverse and also large business can overstretch an organisation and also minimize reaction of times.

Opportunities

Threats

  • GE company has better opportunity to make research and development department more stronger.
  • It can enhance geographic development.
  • GE firm an make improvement in consume service.
  • Can developing demand or needs for the commercial air planes.
  • Enhanced the IR security can develop problems.
  • Strict environmental regulatory as well as government policies can impact business operations.
  • Exposed to fluctuations in currency.
  • Regular alterations in the technology can increase competition.

Strategies and operations were impacted through change

Customer focus- The main focus of GE organisation is to satisfying needs of consumes and provide them better services. In context to attain goals, this firm hire new marketing officer, recruit experts and begin to provide training to employees of business development (Jellison, 2010).

Service provider- In order to make customer relationship strong, GE organisation give importance to its customers and also develop assists for improving energy effectiveness of consumers as well as environment performance.

PEST ANALYSIS of Siemens

PEST analysis for organisations are dynamic as well as complicated. It affects on productivity of company in negative manner.

Political factor

  • Siemens firm is based on Germany country which has strong relations with some other countries.
  • Civil unrest and terrorism across Middle East, African markets and Europe may affect on business on Siemens.

Economic factor

  • Develop project of smart city is more potential and expertise in all over the world.
  • Under this, Asia is a main market for Siemens with China which is developing fast and have more opportunities in the Iran (McLaughlin, Afsar-manesh and Martin, 2013).

Social factors

  • Siemens invest more money in provide training as well as education to staff members so that they can focus of produce better quality of products  with can satisfy needs and demands of consumers.
  • There is a programme which names Siemens' Europeans which enable students from chosen countries in order to participate in the work- study related programmes in other country.

Technological factors

  • Under this, strengthen leadership in automation along with digitalisation through combining services, software and platforms.
  • Provide unit “Next47” for development and innovation of next- gen technology with a budget of $1 billion.

SWOT ANALYSIS of Siemens

Strengths

Weaknesses

  • This organisation is pioneer of advanced technology of driven services.
  • IT operate its business in more than 180 countries.
  • It has strongest financial stability and excellence (O'Connor, 2015).
  • This organisation is at top position in context to industrial electrification, Digitization and automation.
  • Corporate environment of Siemens organisation was impacted through allegations related to corruptions though people which impact on reputation of firm.
  • Organisational structure of this firm is complex.
  • Because of dependence on the third party, effectiveness of Siemens operations impacted.

Opportunities

Threats

  • This firm has an opportunity to set in- house solutions.
  • It can enhance its business in many countries.
  • Growth of this firm can be enhanced in project related to smart city to demand for the next generation technology.
  • In an emerging markets, Siemens can expand its growth rate and market share.
  • In United Kingdom country, firm get benefit in new administration which favours the domestic organisation and local manufacturing such as GE and it is a main threat to Siemens.
  • It is an international organisation so financial performance of this firm is impacted through devaluations of currency and also economic fluctuations.

Siemens operations and  strategies were impacted through change

This organisation has converts from the technically better yet moving slowly to an industrial giant in to nibles, disciplined and also multinational organisation face many different challenges or difficulties (Reiman and Pietikäinen,  2012). In this business firm, there are many people which are working and give their contribution in attaining aims and goals of firm with in specific period of time. Under Siemens company, some staff members support new objectives and some are restrained. The CEO of this business firm understand about the changes and their advantages to its employees so that they can support in an effective or better manner. At the time of transformation. Siemens organisation learn more regards to its other competitors as well as market structure.

M1 Assess the various drivers for change and type of organisational change

Changes are refer as a important aspect which includes two forces such as internal and external. Both are directly impact in business operations in both positive and negative manner as well. In this internal forces are workers, structure of company and on the other side, external factors are competitors, economic condition, political factors and many more. All are uncontrollable by the company thus company effectively manage all the changes and adverse impact on company.

P2 Impact of internal and external drivers on organisational behaviour

Both internal and external changes plays an important role in enhancing the business operations. Changes are effective and influential if it is done in a positive manner and gives appropriate result. In context of this, there are some drivers of change which impact on company and its function as well.

  • Customers drivers: Consumers are important as company easily enhance their profitability level at market place (Robert, Tilley and Petersen, 2014). Changes in market, customers demand, change in demographic and convenience affect the overall performance of GE.
  • Technology drivers: Changes are rapidly take place in company and its technologies as well. As radical innovation is also occur in the industries as it impact on overall activities of the company. Thus, it is vital for manager of company to effectively analyse as well as implement the changes of technologies.
  • Capital drivers: It is related with capital which brought by institutional investor by which GE easily execute their activities (Shirey, 2011). As it largely impact on the team, individual and team as well.
  • Competitive performance: Under this, new entrants and existing competitors as it creates various challenges in front of company and its operations as well. Thus, it is important for GE to analyse the impact on business activities which may leads in improving the overall performance level of the company.
  • Government drivers: It is consider as an important and external drivers which directly impact on business and its function as well. In this legislation changes and policy initiatives as it largely affect the business activities.

Further changes that affects leadership, team and individual behaviour in context with different organisation is explained below:

Internal drivers and internal drivers of change in General Electrics:

Leadership: Leaders are considered as one of the essential factors who manages and organise all the task in an appropriate manner. A sudden change in internal or external factors can affect the entire process of business operations. Its affect can be seen while making new strategies in order to accomplishing work in a better way. Leaders can face problems in managing work at workplace because of which a downfall can be seen. Therefore, it is essential for company to make changes according to the global trends as to will help leaders in analysing and understanding the opportunities and threats that can affect business operations. Implementation of new policies also gets affected if changes are not accepted by the company.

Team: With the change in course of time and ongoing transformation people are learning new things in a rapid speed. Therefore, in context with GE, due to certain changes team is getting affected as younger workers are now wanted to work independently instead of relying under any bosses or HR. General Electric, for operating their business in an effective way they have eliminated certain sectors and now all the reports are directly coming from CEO rather than coming through various sectors (Zhu, Devos and Li, 2011). Therefore, company is under going with de-staffing as they are eliminating a large number of workers from the work which is clearly affecting the entire team.

Individual behaviour: Because of some changes in Business environment it directly affect on the people behaviour as manager have to includes subordinates as they discussed ideas and proposals which enhance the workers skills and knowledge in most effective manner. In addition of this company also hire as well as recruit capable people at right place which may improve the productivity level and at the same time also improve their working abilities as well.

P3 Evaluation of measures to reduce impacts of changes on behaviour of a firm

It is important for business organization to implement all the changes effectively as it directly contribute in enhancing the positive image at market place. If organization handle all the changes effectively then they easily attain competitive advantage (Doppelt,  2017). This will directly contribute in overall success of the company. As GE and SIEMENS, both are required to effectively minimise the impact of change which helps in improving the behaviour of organizational. 

  • GE can enhance and expand its renewable business operation to make their process of effective and appropriate. As they improve their efficiency level and involve their workers within their activities for attaining desirable goals and objectives (Reiman and Pietikäinen, 2012).
  • GE can also diversify their operations which may leads in enhancing their growth opportunities due to technological advancement.

In addition of this, there are some main steps which can be used by GE to enhance their performance level.

Education and communication: It is one of the best way to accept and overcome changes. As they communicate as well as educate their workers so that they easily put their effort to manage changes. By communicating with workers, manager also reduce the chances of arising any kind of issues which occur due to changes which may helps in improving the performance level of GE.

Participation and involvement: If workers is involved in every changes and business activities as they likely handle the changes and improve the chances of attaining desirable results.

Facilities and support: Under this, some workers are able to accept the changes easily manage and handle it effectively. Along with this, managerial also support workers so that they can easily deal with changes in appropriate manner (Brown, 2012). In this they provide training and special counselling to workers so that they effectively perform their duties. 

Negotiation and agreement: In this step, manager offer initiatives to their workers as they can resist change in appropriate manner. This will improve the chances of reducing the averse manner of changes in effective manner (Anderson, 2016). By manipulating the workers, they take decision inmost effective way to adopt changes.

Manipulation and co-option: Under this, leader have to make their process appropriate as they push their workers to participate in the change and also put efforts to attain set goals. Along with this, leader also bringing better contribution to effectively accept changes.

Explicit and implicit coercion: It is last and important option in which manager provide guidance to employees for doing something clear as they make their performance clear. Along with this, it helps in losing of jobs which may helps in accepting all the changes effectively.

M2 Apply theories and model related with response to change

For dealing with changes in effective manner, company have to use appropriate approach which helps in improving the changes of managing all the changes appropriately as they effectively communicating with workers. As they easily attain competitive advantage in an appropriate manner.

D1 Conclusion and Recommendation related with change impact analysis

According to Getha-Eby and O'Brien, (2014), various policies and strategies are used by the company which helps in handling organizational changes in effective way. By providing training and development programs, manager make their workers able to deal with internal and external changes which may helps in reducing the negative impact on business organization.

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