...prepare a summary of the Harvard Business School Case Study “How GE Teaches Teams to Lead Change” and indicate whether or not GE is successful and what lessons if any can be learned from their LIG program. In 2007, Steven Prokesch attended the four day Leadership Innovation and Growth (LIG) program at General Electric’s leadership development center in Crotonville, New York. A year later he revisited the 19 senior managers who had attended with him to see how much influence the program had made. “The answer was plenty, “ Prokesch writes. New initiatives had been launched and businesses created. Manager’s genuinely trying to modify their roles and behavior in order to stimulate and promote growth. Prokesch cites five main reasons for LIG’s success in bringing about those changes. 1. Team training accelerated the pace of change by giving managers an opportunity to reach consensus on the barriers to change and how best to attack them. 2. Participants were encouraged to consider both the hard barriers to change (organizational structure, capabilities, and resources) and the soft (how the members of the leadership team individually and collectively act and spend their time). 3. The traditional management challenge of balancing the short term and the long term—or simultaneously managing the present and creating the future—was explicitly addressed. 4. The course created a common vocabulary of change—“literally words that became part of daily communications inside...
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...Electric (GE) was founded by Thomas Edison in 1890 (GE, 2009). The company was established as the Edison General Electric Company and was a conglomeration of Thomas Edison’s many businesses (GE, 2009). In 1892 the Edison General Electric company merged with competitor Thomson-Houston Corporation and changed the name of the company to General Electric (GE, 2009). Today GE employs more than 323,000 individuals around the world (GE, 2009). GE is a leading company with a diverse product line including lighting, industrial products, medical equipment, transportation, and power transmission (GE, 2009). These products were all a part of the original company foundation created by Thomas Edison (GE, 2009). GEs structure and success have led to several recognitions in the business industry. In 2009 GE improved its ranking on the Fortune 500 list from sixth to fifth (CNN Money, 2009). GE was also ranked as number one on the 2010 Forbes Most Sustainable Companies and Most Admired Companies (Coster, 2010). The success and recognition is a sign of strong management, leadership skills and commitment. Through the years GE has had a number of leaders who have built a strong company with a combination of diverse products (GE, 2009). The initiatives driven by these leaders have led to growth, reeducation in cost, controllerships that allow the company to capitalize on opportunities, financial strength and common values that allow the company to face environmental changes with confidence (GE, 2009)...
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...Organization’s value-chain 12 Balanced scorecard 13 Strategic alternatives; 15 Final recommendations 16 Bibliography 19 Executive Summary During February 12 of this year the wholly owned subsidiaries GE, GESC, and GECC will be merged together. Part of it was the manufacturing actual physical business the other was the subsidiaries and the next was the financial services GE Capital. The merger of GE and affiliates is not reflected in his financial analysis as of February 12, 2012. This is a statistical analysis on GE. GE has different parts of the company, which use different terms. Not to be confused GE, GESC, and GECC are different sectors of general electric. Their consolidated financial statements help to better accurately comply with the different financial and accounting methods to give a precise perspective on the entire company. GE is the most common use term and the one that were most familiar with. GESC is the financial services department that looks like a bank; and, GECC is just a term used for subsidiaries across the world. Stakeholder Analysis GE has experienced significant growth in the stock price from the low teens to the upper 20s. However the historic high is 39.50 and is down roughly 54% from five years ago before the 2008 financial crisis. (Morning Star, 26) The dividend yield is currently $.68 worth...
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...GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 _ Phil Parkinson Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a successful transition from a corporate model that was highly centralized and bureaucratic to one that is dynamic, flexible, and many times more profitable. If GE wishes to sustain and build upon the progress of the Welch era, it would do well to nominate a new CEO from within the organization who is familiar with his brand of leadership, and who can continue to provide it for many years to come. 2 Table of Contents Executive Summary................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 Statement of Problem ...............................
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...Unites States. The changes of sale over the past five-years have shown increases 3 out 5 years. The other 2 years were slightly below the company’s goal due to the price of oil dropping and exports issue. c. They signed an agreement to sell their consumer finance business in Hungary (Budapest Bank) to Hungary’s government. On June 2, 2014, we acquired Cameron’s Reciprocating Compression division for $0.6 billion. The division provides reciprocating compression equipment and aftermarket services for oil and gas production, gas processing, gas distribution and independent power industries d. There are three categories GE uses hedging practices. FAIR VALUE HEDGES GE use interest rate and currency exchange derivatives to hedge the fair value effects of interest rate and currency exchange rate changes on local and non-functional currency denominated fixed-rate debt. For relationships designated as fair value hedges, changes in fair value of the derivatives are recorded in earnings within interest and other financial charges, along with offsetting adjustments to the carrying amount of the hedged debt. CASH FLOW HEDGES GE use interest rate, currency exchange and commodity derivatives to reduce the variability of expected future cash flows associated with variable rate borrowings and commercial purchase and sale transactions, including commodities. For derivatives that are designated in a cash flow hedging relationship, the effective portion of the change in fair value of the...
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...GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 Phil Parkinson _ Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a successful transition from a corporate model that was highly centralized and bureaucratic to one that is dynamic, flexible, and many times more profitable. If GE wishes to sustain and build upon the progress of the Welch era, it would do well to nominate a new CEO from within the organization who is familiar with his brand of leadership, and who can continue to provide it for many years to come. 2 Table of Contents Executive Summary................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 Statement of Problem ...........
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...GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 _ Phil Parkinson Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a successful transition from a corporate model that was highly centralized and bureaucratic to one that is dynamic, flexible, and many times more profitable. If GE wishes to sustain and build upon the progress of the Welch era, it would do well to nominate a new CEO from within the organization who is familiar with his brand of leadership, and who can continue to provide it for many years to come. 2 Table of Contents Executive Summary................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 Statement of Problem ...............................
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...GE Case Study 1. While most companies have difficulty producing sufficient quality candidates for top management succession, how has GE been able to create a surplus? What philosophy, policies, and practices have made it a “CEO factory” as Fortune called it, and “easily the world’s best machine for churning out corporate talent” as The Economist described it? GE leveraged best in class HR practices the level of sophistication in their polices gave them the opportunity to adopt practices that which in turn lead to the growth of leaders form within the company. The culture within GE was known for the development of leaders within, which helped drive a continuous improvement model for managers. The vision of the continuous improvement for managers was to become a expert in every field, or least in most of them. GE also provided job training to its employees through a university that was established through GE. They invested 10% of pre tax income to the development of its employees. 2. How generalizable are GE’s management development policies and practices? How transferable across cultures? Across industries? Across companies? GE is very successful in step-by-step development of their employees and management team. This allowed them to merge new employees with the culture that existed within the company with little push back as new employees adopted the culture quickly. GE also spent time in their recruitment process, which focused on graduates out of Universities...
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...Negative Interest Rates Nominal interest rates are normally positive, but not always. Given the alternative of holding cash, and thus earning 0%, rather than lending it out, profit-seeking lenders will not lend below 0%, as that will guarantee a loss, and a bank offering a negative deposit rate will find few takers, as savers will instead hold cash. During the European sovereign-debt crisis, government bonds of some countries (Switzerland, Denmark, Germany, Finland, the Netherlands and Austria) have been sold at negative yields. Suggested explanations include desire for safety and protection against the Eurozone breaking up. More often, real interest rates can be negative, when nominal interest rates are below inflation. When this is done via government policy (for example, via reserve requirements), this is deemed financial repression, and was practiced by countries such as the United States and United Kingdom following World War II (1945) until the late 1970s or early 1980s (during and following the Post–World War II economic expansion). In the late 1970s, United States Treasury securities with negative real interest rates were deemed certificates of confiscation. Negative interest rates have been proposed in the past, notably in the late 19th century by Silvio Gesell. To prevent people from holding cash (and thus earning 0%), Gesell suggested issuing money for a limited duration, after which it must be exchanged for new bills; attempts to hold money thus result in...
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...product and I grew up hearing how GE was such a great company as many of my mother’s friends and family were employed by GE. I knew little besides generalities of his abrasive personality and his no-funny-business personality. After reading his biography and researching online, I was not too surprised there was much more beneath the covers. Introduction Jack Welch joined GE in 1960 as a 24 year old junior engineer fresh from a PhD program in chemistry. Born in Salem, Massachusetts, Mr. Welch described his younger self as “earthy, loud, excitable, with a heavy Boston accent, and an awkward stutter.” He made a quick name for himself early in his career, constantly delivering more than expected, and rose throughout the GE ranks. In less than 10 years at GE, he was promoted to General Manager of Plastics where he dropped his PhD title and transferred from engineer to businessman. About 10 years later he became CEO on December 1980. As leader of one of the largest and most successful American businesses, Mr. Welch was continually in the public eye and his decisions constantly evaluated. One of the first actions he took as CEO was to eliminate the underperformers and excess of the company. He self admittedly says he fired a lot of people in his early days resulting in the press giving him the early moniker of Neuron Jack. He was deemed soft as he turned his focus to values and culture. From prince to pig and back again, Mr. Welch remained head of GE thanks in part due to his self-confidence...
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...Management Principles and Practices MGT101 Case Study – GE Electric Motivation Gemma Blandford Word count 1315 (excluding references) Introduction General Electric (GE) was founded in 1878 by Thomas Edison. Since then GE have developed businesses in the areas of Appliances, Aviation, Consumer Electronics, Electrical Distribution, Health Care, Lighting, Oil and Gas, Energy, Finance for both Business and Consumers, Rail, Software Services and Water. They are now one of the most diversified companies in the world. Findings In 1960 Jack Welch joined General Electrics in the plastics division in Pittsfield, Massachusetts, USA, where he developed his leadership skills and ideas. In 1968 Jack Welch was made the company’s General Manager; for GE in 1981 he was elected Chief Executive Officer. His vision was to become one of the most competitive business enterprises in the world. Shortly after Jack was elected he identified the organisation was bureaucratic - the environment was controlling, upper management made the rules and the juniors followed. The lower level in the hierarchy is controlled by the upper ones, and the planning and decision making is done in one place. The higher levels in the hierarchy have more freedom in doing their work as compared to the lower levels. In this case GE was represented by 9 layers of management from the shop floor to the CEO. Unfortunately in a bureaucratic environment people are afraid to speak out; employees find it difficult...
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...Innovation Management Sahil Sayal An Academic assessment of General Electric’s MAC 400 Electrocardiogram Machine (ECG) December 2013 M B A F T 6 G r e n o b l e G r a d u a t e S c h o o l o f B u s i n e s s , L o n d o n C a m p u s General Electric’s MAC 400 ECG Machine Word count: 3075 I would like to begin my discussion based on the following quote by Jeff Bezos. “I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out” The world today is becoming more...
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...to achieve? Is there logic or rationale supporting the change process? If so, what is it? The restructuring plan of GE in the early 1980s which included the “Fix, Sell or close” strategy, the elimination of bureaucracy and lay-offs ushered in a new era of rapid change in the structure of the company. This resulted in increase in efficiency of the overall functioning of the organization. However, these rapid restructuring leaps of GE apparently left the employees in a cultural shock and the management in a state of exhaustion. Moreover, all that was done since the early 1980s would not be effective unless cultural change followed the earlier restructuring. “Speed, simplicity and self-confidence” is what Welch wanted to see the organizational culture as. Freedom to innovate and creating a sense of accomplishment in potentially good employees were some of the aspects which he wanted to bring about. A company where all the employees felt engaged in decision making process and everyone has a voice would be very much cohesive according to Welch. He also felt that if the employees get immediate response for their concerns and queries, it would be much better. Hence, he introduced Work-outs in which a forum is provided in which managers and their subordinates could frame ways to deal with each other. This is seemingly common in present day corporate work culture but it was a breakthrough in the late 1980s. In addition to this, GE implemented best practices from all the successful industries...
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...LaShara Jones Business Management 3600 01/28/2015 CASE STUDY: Management at work * Does the pattern of management developments at GE over the last century seem to reflect the pattern suggested by management theory? Explain your answer * Yes, GE development seem to reflect the pattern of management theory. In example, their blue book theory was in place to help manage the management every move. This prime example was one that was led by founders in the history of business. The company also focused on offering their employees pensions and profit sharing which went hand in hand with the basis of HR functions which is one of the basics of the administrate side of the classical management perspective. With Ge being a leader in profit and products for the everyday use of consumers. GE develop the strategic management approach within their company which helped with business opportunities and challenges. Adding in mathematical modeling to be able to make their manager make better managerial decisions. Adopting these early ideas only allowed the company to advance in reaching success over time. * Which GE’s management innovation seem to draw on a classical management perspective? Which seem to draw on behavioral management perspective? How does the contingency perspective explain management changes the GE has made over the years? Explain each of your responses * Classical management ‘blue book” .The blue book theory focus on management every move but it also...
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...the world is turbulent, you appreciate great people.” – Jeff Immelt, GE Chairman and CEO Internal and External factors play a great part in the four functions of management. These factors can impact these four functions in many ways. The company that we chose to write about is General Electric known as GE. We will explain how internal and external factors affect the four function of management, which are; planning, organizing, leading, and controlling (Bateman & Snell,2009). We will also explain how these factors, along with delegation, affect globalization, technology, innovation, diversity, and ethics. General Electric was founded in 1892 by Thomas Edison, Charles Coffin, Edwin Houston, and Elihu Thomson. These four men had an idea of bringing “good things to light.” GE is an advanced technology, services, and finance company taking on the world's toughest challenges they are dedicated to innovation in energy, health, transportation, and infrastructure (GE, 2011). The major planning for General Electric is their Marketing Plan. GE's marketing function is about delivering superior business impact and results. We rigorously focus on customers; measure and assign accountability; attract, develop, and retain best-in-class talent, and methodically align our work against evolving business strategies (GE, 2011). One of the most important aspects of planning is forecasting what will be needed in that year. GE is leaning toward solar power. They are in the planning stages but this...
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