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General Electric : Organizational Loops

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Describe at least two feedback loops in GE and explain why you selected them.

What are the effects of these feedback loops on organizational effectiveness over the short and long term?

What changes in strategy or operations would you recommend in light of your analysis?

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Solution Summary

This posting describes two feedback loops in General Electric and assess the effect of these loops on organizational effectiveness.

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Describe at least two feedback loops in GE.

The first feedback loop that I am selecting in case of General Electric is the balancing loop. This is an example of negative or controlling feedback. In this case, a change in one part of the system causes a change in another part of the system which in turn, counteracts the change in the first. Consider the Locomotion Division of General Electric. The GE Locomotives are a part of the transportation system in more than 60 countries. The Locomotives use fuel to transport products and people and these locomotives use fuel. As the fuel prices increase all over the world, there is a change in the system at GE research and development is done to reduce the fuel consumption of the Locomotives. This is an attempt at controlling the feedback. It is in this context that GE has launched the Evolution Series Locomotives and Hybrid Locomotives. The attempt is to reduce the gap caused by the price increase. This is a balancing system because ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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