The case details the singular role played by General Electric (GE) in the development of modern management practices.  Ideas developed at GE permeate the fields of operations management, human resource management, and strategic management.  In operations management, GE pioneered the development of Six Sigma quality initiative and Work Out, a method to reengineer an organization.  In strategy, GE’s business screen method to portfolio management is a significant paradigm.  The company’s famed leadership development method has attracted companies such as Dell, which regularly sends its top managers for training at GE.

There are a variety of different essays that can be derived from the reading, our discussion, your research and the case at the end of the chapter.  However, each essay should begin with a thesis statement couched in the first paragraph, and should employ your answers to the questions at the end of the case to support the original thesis in the succeeding paragraphs.  The final paragraph of the essay should incorporate your general argument to restate the thesis.

It is assumed that that at this time all students are now comfortable in their ability to create an effective thesis statement.

    Some of the possible responses to the questions at the end of the case are:

• Case Question 1:  Do the various management developments at GE over the last century seem to follow the same pattern as the development of management theory, described in your text?  Explain your answer.

In some ways, GE’s management contributions mirrored the development trends in management theory over time.  Their “Blue Books” that governed managers’ every move, for example, echoed the administrative management school founded by people such as Henri Fayol.  Their focus on pension and profit sharing plans were in line with the trends developed by the human relations movement.

• Case Question 2:  Which of GE’s management innovations seem to draw upon a classical management perspective?  Which seem to draw upon a behavioral management perspective?

Administrative management is a subset of the classical management perspective.  GE’s “Blue Books” that detail managers’ every move is an example of a management practice that would fall under this area.  Administrative management focuses on managing the total organization.  Thus, GE’s contributions to strategic management (such as the business screen) can also be categorized in this area.  GE’s emphasis on leadership training is a great example of a practice that relates to the behavioral management perspective.  GE emphasizes the importance of management development and recognition, both of which were covered by this perspective.

• Case Question 3:  How does the contingency perspective explain the management changes that GE has made over the years?

In the beginning, GE focused on centralized decision making.  It also developed the famed “Blue Books” that rigidly outlined every move managers make.  The contingency perspective adopts the basic idea that one size does not fit all and that the situation or the context is important.  Thus, as the business world changed over time, GE’s management ideas focused on employee empowerment, autonomy, and flexibility—ideas that were at the other end of the pendulum compared to their earlier ideas.

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