General Electric

1 Pages 289 Words

Research

General Electric has expanded on an employee involvement process called quality circles. The name of the program is called Six Sigma. Six Sigma, as well as quality circles, uses statistical techniques to improve quality. A Six Sigma quality level generates less than 3.4 defects per million in the work environment. Improving quality has an inherent effect in that it also improves productivity. Efficiency gains are created because the product or processes do not have to be reworked or redone. These means things are done right the first time and reduce cycle time. General Electric has expanded the Six Sigma program to include the up front engineering process. This allows manufacturing and engineering disciplines" work out on the design of a product. This allows the product to be built without problems. “From a standing start in 1996, with no financial benefit to the Company, it (Six Sigma) has flourished to the point where it produced more than $2 billion in benefits in 1999, with much more to come this decade” (p. 5 1999 GE Annual Report). This type of employee involvement reduces rework costs and scrap rates which produces the higher efficiency yields.

United is using an employee stock-ownership plan to motivate its employees. The United workers trades pay cuts for stock ownership in the company. This type of employee involvement allows the workers to become part owners in the corporation. United created work team to tackle opportunities. “Such moves slashed sick time by 17% last year, saving $18.2 million annually.” People who company stock are more willing to participate and have less absenteeism....