#5 Assignment GE's Work-Out The type of change by GE where employees are encouraged to make improvements to the way things are currently done appears to be an example of Adaptation. The reason is that companies react to changes in the company that need to be made and make incremental changes after the suggestion has been adopted. However, GE encouraging mangers to be able to identify problems and make speedy decisions and actions appears to be an example of fine tuning. The reason for this is that the action is anticipatory, and managers are encouraged to make incremental changes. Revolutionary changes where managers completely depart from the company's ideology aren't encouraged. The process should work, since companies need to be able to adapt to the situation depending on the circumstances. If the company isn't able to address its issue than they will fall down in productivity, and may risks bankruptcy. Other companies will get ahead of them, and gain an advantage in the sector that GE is competing with. Adapting and fine-tuning allows a company to be effective and allows them to stay on course. However, there are negative consequences of adaptation and fine tuning. For one thing GE won't be able to stay ahead of the curve, since some companies will be revolutionary and completely re-create things and transform things. course, Of the fact that GE competes in nineteen different industries makes them a transformer, but the way managers behave doesn't seem very revolutionary. For the sake of this situation though, GE will be described as ore of a revolutionary company, since they continuously transform the company. GE CEO Jeff Immelt has revised the Work-Out company. He has made an effort to make sure the Work-Out concept pushes for anticipating future technologies and long-range planning. This is more of a transformational change than an adaptation or fine tuning change. To is a departure from the previous actions that were implemented where mangers were encouraged to address problems. Jeff Immelt revised the Work-Out concept to make sure the company was able to always stay ahead of the competition. By always having the mindset of making revolutionary changes GE would be emulated by other companies instead of following its competitors. Jeff realized that by maintaining stability the company would eventually fall behind in the short run, and that in the long run revolutionary changes would always have to be made. Only by encouraging managers to create new lines of business can new ideas be created. If Immelt hadn't encouraged transformation its possible that GE might have been put in the position Harley Davidson was once put in.