Organisational Structure
The organisational structure is a
flat structure.
- General Electric's formal organisational structure involves a hierarchical system.
- Share owners, the Corporate Executive Office, and the Board of Directors make up the top of this structure.
- The Chairman and Chief Executive Officer of the company act as the intermediary between the top of the structure and the presidents of the seven sectors.
- GE appears as a small organisation in the shell of a large company.
- At the top there are executive leaders who are followed by the middle managers then the floor employees.
Advantages of Flat Structure
Disadvantages of Flat Structure
- General Electric's formal organisational structure involves a hierarchical system.
- Share owners, the Corporate Executive Office, and the Board of Directors make up the top of this structure.
- The Chairman and Chief Executive Officer of the company act as the intermediary between the top of the structure and the presidents of the seven sectors.
- GE appears as a small organisation in the shell of a large company.
- At the top there are executive leaders who are followed by the middle managers then the floor employees.
Advantages of Flat Structure
- Being cheap
- Decision making is fast as it has simple structure
- Quick communication, and participation of the subordinates in contribution of ideas.
- Recognition and motivation of the subordinate by the superior.
Disadvantages of Flat Structure
- Confusing Leadership
- Limited Structures
- Less Motivation
- Employee Role Confusion
A hierarchical system.
Advantages
Disadvantages
Advantages
- Establishes clear authority for work and departments.
- Creates clear lines of communication.
- Sets the stage for efficient operations and cost savings through economies of scale.
Disadvantages
- Lack of collaboration. It doesn't encourage people to collaborate and share information across the reporting structure.
- Lack of innovation.
What is the culture within General Electric?
~DIVERSITY~
GE relies on a culture of leadership and diversity to drive innovation and productivity. That’s why GE’s employee Affinity Networks are so critical. Our Affinity Networks are making remarkable contributions to our company, our customers and our communities. These successful efforts are being felt at the local, national and international levels. The success of diversity at GE is a reflection of the integrity of our leadership and builds a strong foundation for future leaders to continue our tradition of inclusiveness. By bringing individuals, cultures and ideas together we create a stronger company and a better world.
~ In my opinion, the organisational structure is very solid, systematic and highly dignified. ~