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We think that the massive reduction of positions or employees in GE during Jack Welch`s reign is ethical or acceptable. By eliminating the unwanted positions in the company thus making the company spend less on its payroll, GE increased its market capital in return. Also by initiating a strategic formulation process with the guideline that each business should be number 1 or 2 in their respective areas (or else if it is not the case, fix the problem , sell the business or close it) , Jack Welch pushed his managers to become productive. The reorganization resulted in increased span of control of the managers.

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