Control Mechanisms at General Electric

1793 Words Oct 7th, 2008 8 Pages
Control Mechanisms at General Electric

In an effort to achieve organizational goals, a large part of General Electric’s overall strategy involves rigorous management oversight and dedication to controllership. Controls are processes that “direct the achievement of individuals toward the achievement of organizational goals” (Bateman & Snell, 2007). Four control mechanisms used by GE are Six Sigma, performance measurement, internal and external audits and financial controls and the following will discuss their effectiveness, positive and negative reactions to use of these controls and how the controls impact the four functions of management.
Six Sigma Control
The Six Sigma methodology of quality control was developed
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On the same note, because customers are in a hurry they may not take the time to think about the question being asked, and therefore, give a score off the top of their head. A second potential negative is that the data is somewhat skewed. For example, someone who gives a score of zero is put in the same category as someone who gave a six. Generally someone who gave a six is a fairly happy customer, whereas a zero is a customer who the company will probably never see again. Although, according to Peter McCabe, chief quality officer for GE’s health care business, “Ultimately it’s not about the number; it’s about focusing on the customer” (McGregor, 2006). This gauge is a perfect example of how all members of an organization must work together to achieve positive results. It starts with the frontline employees receiving the initial customer feedback, this feedback then funnels through all levels of management in terms of what corrections need to be made or positives to reinforce, then comes back to the frontline employees for implementation of changes. This feedback affects the four functions of management because the organization and planning can now be adjusted based on the results. Leading and controlling also changes because the company has to adjust strategy for the next year’s plans.
Internal and External Audits One of GE’s methodologies is the accountability factors that include both internal and external audits within

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