Dorsey, who was the Packers' director of college scouting for 12 years, becomes the sixth GM in Chiefs history, replacing the fired Scott Pioli.
"The Chiefs are a remarkable franchise with a great fan base, and I'm excited to join the team and community," Dorsey, 52, said in a statement. "I want to thank (team owner) Clark (Hunt) and the entire Hunt family for the chance to help lead this franchise.
"I'm looking forward to working with Coach Reid to put together a product that Chiefs fans can be proud of for years to come."
The housecleaning came after the Chiefs sank to a 2-14 mark in 2012, matching the worst record in franchise history, and were rocked by a Dec. 1 murder-suicide involving linebacker Jovan Belcher.