Pizza Hut and GE Culture Management Essay Example | Topics and Well Written Essays - 1500 words

Pizza Hut and GE Culture Management - Essay Example GE’s culture was based on individuals and intrinsic motivation which helps its employees seek benefits for the company while they seek benefits for themselves. As outlined by Jack Welch in his management related book Winning (2005), GE rewards those employees who are instrumental in helping GE grow and achieve the corporate vision and punishes those who are not performing to the highest level. In fact, layoffs and quarterly removal of lowest performing employees is an essential part of the management style employed at GE. The method used by GE to control the culture of their operations in Hungary was dependent upon the Hungarian acceptance of their 95 page manual on corporate culture titled Integrity: The Sprit and Letter of Our Commitment. The initial results were disastrous to say the least since bad press, negative sentiments and resentment amongst the employees was created once GE’s creed was being established in the company. However, with time, the situation subsided and the majority of employees accepted the way GE worked. The most important advantage of changing GEL’s European operations from the domestic to regional and global levels was the change in culture which came about when the employees realized they were competing in such markets. The location and availability of labor can also be expected to have played a role here since the Hungarian labor market is closer to the western countries it is supposed to cater for rather than the Russian bloc or the Asian markets where GE’s products might be seen as too expensive. While the expansion of GEL’s operation to global level worked in this particular case, there is not enough information to say whether the same process would be successful if it is applied to other GE operations around the world There are several factors which must be considered before local operations can be asked to provide