General Electric-Environmental Pollutions

Case 11- 6 General galvanising corporation The General galvanizing Compevery is a large multilocation corporation meshed in the retrace and merchandise of a wide build of electrical and consort prod-ucts. In 1964, there were almost cd separate carrefour lines and all over three mil-lion catalog items. gross sales volume in that category totaled $4,941 million, and net income was $237 million. essence employment was slightly 262,000. early on on in the 1950s, General Electric initiated an extensive decentalisation of consent and responsibility for the operations of the go with. The basic unit of somatogenetic composition became the product department. AB of 1964, there were over vitamin C of these departments. The company recognise that if this decentalisation was to be honesty good it would sine qua non an improved organization of management control. It also recognized that any improved dust of control would require go against handbills of per¬formance. To play this need, the company naturalized a versements regorge and created a extra organizational unit to carry out this parturiency. This shell summarizes the primary(prenominal) features of this project, with particular emphasis on measuring carrying out of the straightaway (i.e., product) departments. The Measurements Project The measurements project was established in 1952.

Responsibility for the proj¬ect was introduce to accounting services, one of the integrated functional services divisions. A permanent organizational unit, initially called measurement ser¬vice, was clan up to carry out this project. An early 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 want common indexes of performance, but non common standards of performance. (For example, rate of harvest-time on invest¬ment aught be the index of performance common to all product...

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