Delegation on the other hand as theory suggests is important to motivate employees but at GE the factory has focused more on team building so they lack in the area of delegation but as theory suggests delegation is the biggest challenge for organizations today. Delegation is important for vertical coordination in the hierarchy and in this case there are just three layers in the flat structure of the organization.
The organization can bring about these changes and benefit from them as a result. Delegation makes coordination efficient and effective thus it enables work to be done at the lowest levels as a result. Delegation is good for an organization since it keeps all involved and when all learn and are involved in the processes of the organization then the subordinates can easily replace managers when needed thus decentralization which is much needed in this organization helps to grow further and it is a proactive approach that helps to increase productivity in an organization. In centralized organizations delegation does exist but at the top level only and even then the top managers can not do everything themselves like in the case of GE. The classical theorists have placed considerable importance on the need to delegate but still it is a challenging task for most managers and organizations as in this case. It has been found out through research for creative leadership that the failure to delegate can hurt managerial careers since over managing or an inability to delegate or build a team is a fatal flaw in managers and in this case the manager has been flawless building a team and delegation does exist to a certain extent but still is required at the second layer of the organization. The current system at GE is effective but there is room for improvement (Bazerman, 1986).
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