Strategic Management of General Electrics †MyAssignmenthelp.com

Question: Discuss about the Strategic Management of The General Electrics. Answer: The General Electrics is a company that deals with the manufacture and sales of electrical goods. The CEO of General Electric has decided to champion for an executive compensation where the executives would be allowed some compensations in terms of salary, cash bonuses, and performance awards for long-term conditions. This is a rational decision that has been made by the CEO but must still be debated by the board. This decision by the CEO is at a business level because it because the board will have to look into it, evaluates all the possible pros and cons and sees whether it can be made a policy. If approved by the board, it would be implemented and that will see the GE compensation move to ensure that there are proper performance- based dynamics. I believe that this decision should be considered a business level because at this level, simply those who make internal decisions about the company directly concerned with themanagement (Haasler, 2013). These people are aware of all the f inancial status of the company, including the profits generated by the company. This decision can be considered an impartial one because it is simply going to harm the business by allowing huge compensations for the top management. According to the article, the CEO John Flannery will pocket a basic pay of $2 million with other bonus which is based on the goals achieved. This move could be quite dangerous to the business as it is seen to be championed by the CEO showing that his interest on bagging this huge amount of money and benefiting from other bonuses (Andrews Russell, 2012). Despite the fact that the board has to deliberate on the issue and decide whether to pass the policy or not to pass it, the CEO has gone ahead with his plans to push for changes that will see thetop management receive the huge perquisites. According to the article, it is stated that setting policies regarding compensations is a mandate of independent board members (Lavy, 2013). However, Mr. Hannery being the chairperson of the board will have an opportunity in pushing and guiding the debate on the policies that would see this move made a reality. It is seen that there are a lot of criticism about coming up with this kind of policy. In my view and in the view of many others, both outside the company and members of the company, this is a wrong decision to make. It looks like the company will spend a lot of money in compensating the topmanagement (Bharathi, 2016). However, this is just an application or a proposal and must be debated by the members of the board. Although we expect the proposal to appear at the board meeting and be strongly championed because the chairperson who is also the CEO of GE actually is the one who has come up with the proposal, the board members will still have an opportunity to throw it away or enact it. References Andrews Russell. (2012). Strategic Management: strategy, evaluation and impact. Higher Education, Skills and Work-Based Learning, 2(1), pp.33-44. Bharathi, A. (2016). Decision-making. Higher Learning Research on Management, 6(4). Haasler, S. (2013). Planning and Management. International Journal of Training and Development, 17(3), pp.233-243. Lavy, I. (2013). Management Issues An Important Key for Management in the "Shift to a Service Driven Economy" Era. International Journal of e-Education, e-Business, e-Management and e Learning.