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Unformatted text preview: o-getter. GE in 1981 was a very complex organization as there were nine layers between the CEO and the
shop floor. Welch believed the numerous layers provided middle-level employees with a lot of
comfort. Even though GE was very strong financially, its growth was stagnated.
Welch took the task of ³taking GE to the next level´.
He created a new vision and focused the organization on specific values and developed new
processes for management. But before all that he changed the organization chart. The same year
he was made CEO, Welch introduced two new divisions Technical systems and services and
materials. Technical systems comprised of electronic intensive operations in aerospace, industry,
medical systems and telecommunications. Services and materials focused on high growth
businesses like the GE credit corporation, engineering materials, plastics, batteries and
electromaterials. He grouped the company¶s extremely diverse portfolio into three circles: core
manufacturing, technology driven businesses...
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This note was uploaded on 05/06/2012 for the course MANAGEMENT 712 taught by Professor Robin during the Winter '11 term at Rochester.
- Winter '11