Od Intereventions

GE Capital Fleet Services was a company which was stable, productive, culture orientated and efficient in increasing shareholder wealth within the company. This was provided by the young, exuberant workforce who focused on customer service and recognition. Before the radical change took place in the company, GE Capital Fleet Services had a traditional hierarchal structure which proved to be very effective.

In the late 1980s, a trend had arisen that was causing companies and businesses to move away from the hierarchal structure approach which had been in place for years. “Hierarchal organisational layers were viewed as barriers that slow progress, garble communications and insulate management from the realities of their market place” (Case study, p1). So why would a company which is clearly prospering change its entire approach? A company should be constantly reviewed in order for the company to allow itself to adapt and change to the ever changing environment. Consumer’s wants and needs are always changing, so organisations need to be aware of this so they can change or manipulate their strategies and processes to suit the companies’ best interests. This is what GE Capital Fleet Services did, but in radical fashion.

There are many types of interventions which organisations use and implement for specific purposes. In this case the president of Capital Fleet Services introduced a Technostructural and Human Resource management intervention. The President’s plan was to implement a successful intervention which totally converted and changed the way the company did business. He did this by trying to convert GE Capital Fleet Services from a traditional hierarchal structured company to a flat structured company. A hierarchical organization is an “organizational structure where every entity in the organization, except one, is subordinate to a single other entity”(wiki), this creates a form of hierarchy. A Flat organization (also known as horizontal organization) refers...