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    Nadler-Tushman Congruence Model: Analyze General Electric Organization's Outputs

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    Using the Nadler-Tushman Congruence Model, conduct an analysis of General Electric organization's outputs. Remember that outputs exist at the individual, group and organizational levels and that there are often differences between the outputs an organization specifies in its strategic plans and those that are actually achieved.

    Identify the key outputs and justify why they are the most important to your analysis.

    How do the various outputs affect each other?

    What problems/synergies do you see that are created by conflict/coordination of outputs?.

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    Solution Preview

    See attached file.

    The Nadler-Tushman (1977) model is one of congruence. Model argues that for organizational effectiveness the various boxes composing their model should be congruent with one another (e.g., organizational arrangements, or structure, should be congruent with organizational strategy).
    GE is imagination at work. From Jet engines to power generation, financial services to water processing and medical imaging to media content, GE people worldwide are dedicated to turning imaginative ideas into leading products & services that help solve some of the world's toughest problems.

    Identify the key outputs and justify why they are the most important to your analysis.
    The key outputs for GE are:
    '1) Customer satisfaction
    2) Operational excellence
    3) Financial performance
    Snapshot of the performance

    GE is No. 1 on the fortune list once again, the most admired company for the sixth time in the past decade. (It last reached the top slot in 2002.) GE has also ranked No. 1 in the Financial Times' "most respected" survey for seven of the past eight years, and it topped a recent Barron's ranking of most admired companies.

    It is one of the largest businesses on earth, with a market value of more than $360 billion and profit last year that exceeded $20 billion. Founded by Thomas Edison and an original constituent of the Dow Jones industrial average, it has one of the most illustrious pedigrees, too.
    Jack Welch, the longtime chief executive who retired in 2001, is considered the architect of the management system, which transformed General Electric into one of the rarest commercial creatures: a very large, very fast earnings grower, for many years.

    Operational Excellence
    Under Mr. Welch, G.E. has become a gold standard for management practices. Detractors may criticize its mass layoffs and chemical spills, but its managerial training and promotion practices inspire widespread praise and imitation. To many in corporate America, G.E. is a meritocracy par excellence -- a place where managers are judged on their ability to meet tough financial goals, not on whether they speak with the right accent, attended the right schools or had the right father. "For us, the 80's were about getting our business model right, 'de-layering' and creating a 'boundary less culture,' " said Mr. Welch, using G.E. language for lopping off tiers of the corporate organization chart and encouraging employees to go directly to senior managers for information rather than inching up the chain of command. (http://www.mindfully.org/Industry/GE.htm)
    "GE has the best management system in the world," said Robert Spremulli, head of equity research at TIAA-CREF, a New York-based fund management company. "They hire strong people; there is a high-level culture and a very long-term record of success. It's a demanding environment."

    At GE, we consider our culture to be among our innovations. Over decades our leaders have built GE's culture into what it is today ? a place for creating and bringing big ideas to life. Today, that culture is the unifying force for our many business units around the world. (http://www.ge.com/company/culture/index.html)

    Financial performance
    During the past three years, GE has increased revenues through organic growth (averaging 9% per year) and ...

    Solution Summary

    This explains the Nadler-Tushman Congruence Model and its application by taking an example of GE. This solution is 2000 words. Financial analysis is provided in the attached Excel file.