...John Francis Welch, Jr., also know as Jack Welch, was born November 19, 1935 (Jack Welch). He was born in Peabody, Massachusetts (Jack Welch). He attended Salem High School and the University of Massachusetts Amherst (Jack Welch). He graduated from Amherst in 1957 with a Bachelor of Science degree in chemical engineering (Jack Welch). In 1960 he received a MS and PhD at the University of Illinois at Urbana-Champaign (Jack Welch). After receiving his MS and PhD, that same year Welch joined General Electric (Jack Welch). At a salary of $10,500, he worked as a junior chemical engineer in Pittsfield, Massachusetts (Jack Welch). A year later he planned to leave GE because of a raise that he was offered (Jack Welch). He was persuaded to remain working there by Reuben Gutoff (Jack Welch). Gutoff promised him that he would create an atmosphere Welch wanted (Jack Welch). In 1972 Jack Welch became a vice president of GE (Jack Welch). Nine years later, Welch moved his way up to GE’s chairman, becoming the youngest chairman and CEO (Jack Welch). Welch was forty-five when he took control of GE (Jack Welch (GE)-FamousCEOs). He was a no-nonsense executive who believed that every single component of the company had to produce a profit (Jack Welch (GE)-FamousCEOs). “Each person, each piece of equipment, each division, and each manager had to contribute to the bottom line in a positive manner. Those that could not or would not were summarily relieved of their duties (Jack Welch (GE)-FamousCEOs)...
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...Jack Welch Video I found the video of former GE CEO Jack Welch is fascinating. Mr. Welch had developed procedures to speed decision cycles, move information through the organization, provide quick and effective feedback, and evaluate and reward managers on qualities such as openness, candor, and self-confidence. Mr. Welch steered a transformation of attitudes at GE- in his words, to release “emotional energy” at all levels of the organization and encourage creativity and feelings of ownership and self-worth. His ultimate goal was to create an enterprise that can tap the benefits of global scale and diversity without the stifling costs of bureaucratic controls and hierarchical authority and without a managerial focus on personal power and self-perpetuation. This requires a transformation not only of systems and procedures, but also of people themselves. Good leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. Above all else, though, good leaders are open. They go up, down, and around their organization to reach people. They don’t stick to the established channels. They’re informal. They’re straight with people. They make a religion out of being accessible. Real leaders don’t need clutter. People must have the self-confidence to be clear, precise, to be sure that every person in their organization—highest to lowest—understands what the business is trying to achieve. The challenge is to move that sense...
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...1 How difficult a challenge did Welch face in 1981. How effectively did he take charge? Welch encountered a very difficult situation in 1981; the economy was in a recession, almost one of the worst recessions any organization has witnessed since the Great Depression of 1929. The strong dollar was losing value and the unemployment rate was at an all time high. Interest rates were consistently on the incline during the time Welch took over as CEO of GE. Jack Welch was both a transformational and transactional leader who displayed an aggressive competitive style of leadership. He did not let the recession deter him from maintaining a competitive advantage over the competition. His philosophy was to ensure that GE was either #1 or #2 in their current industry. His strategy was to "fix, sell or close", for example, when Welch took charge of the company his objective was to fix the problems hindering GE from operating to its fullest potential; sell the company if it is more of a liability than an asset; or close the organization altogether and start from scratch. Welch entered the organization with a strategic methodology that consisted of undergoing a comprehensive restructuring process that would eliminate the deadweight or terminate low-performers that are unproductive or unprofitable. Unfortunately, Welch came into the realization that his current management staff was unable to lead the corporation to success, therefore he proceeded with organizational downsizing. In...
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...Executive summary In this assignment I was able to use relevant leadership theories to critically analyse and evaluate the leadership of Jack Welch. I first provided a brief insight into Jack’s background, outlining what made John F. Welch into the man we know today as Jack Welch. Secondly, shed some light on the financial position and the culture of General Electric (GE) in the early 80’s when Jack assumed the mantle as its Chairman and CEO. Thirdly, I discussed his changing leadership styles over the years. Finally, I give my opinions on how I would have lead differently if I was faced with the same situations. Table of Contents 1. Introduction 5 2. Welch’s Background 5 3. The situation – GE before Jack Welch 7 4. Jack Welch the leader 7 5. Discussion – How I would lead differently 10 6. Conclusion 11 Reference List 12 1. Introduction Leadership is a complex concept and there are different ways of becoming a leader. Leadership is the process of influencing an organized group toward achieving its goals. (Hughes, Ginnett and Curphy, 2012). Leadership is about influencing and not dominating others, leadership occurs when other people happily accept the goals of as organization as their own (Hogan, 1994). Because the behavioural patterns of employees vary depending on their individual circumstances, it is important that leaders to develop an empathetic approach towards resolving the issues of employees. Leadership theorists associate this ability...
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...15-LD-Leadership Stories-2 Thursday, April 10, 2014 Jack Welch I have selected Jack Welch former Chairman and CEO of General Electric. I chose Mr. Welch as he is such a renowned business man and success story. Moreover, he is a local 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...
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...Leadership Talents of Jack Welch Jack Welch was a successful Chief Executive Officer (CEO) of General Electric Co. (GE) for twenty years (1981 – 2001). He was admired and feared for the “new vision” that was implemented at GE. Jacks talented strategies were based on how he saw the hierarchy layers of management, how he analyzed the 42 strategic business units, and how he implemented the culture of GE to have the feel and the passion that he had been striving for. These strategies received a lot of positive and negative attention and as a result the company’s value increased by 4,000% during his tenure at GE. Jack Welch was born John Francis Welch, Jr. on November 19, 1935. He earned a Bachelor of Science degree in chemical engineering from the University of Massachusetts in 1957. Then he went on to earn a M.S. and Ph.D. in chemical engineering from the University of Illinois in 1960. He was introduced to Carolyn Osburn through a mutual friend, and then approximately six months later they were engaged. By November, 1959 they married two days after Welch’s 24th birthday. In 1960, Dr. Dan Fox offered Welch a chemical engineering position to work on a new project on a new thermoplastic called polyphenylene oxide (PPO) at GE. PPO was described to withstand high temperatures, which could replace hot water copper piping and stainless-steel medical instruments. Welch realized after his first year at GE that he disliked GE’s bureaucracy, which nearly drove him to leave...
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...1.) How difficult a challenge did Welch face in 1981? How effectively did he take charge? When Jack Welch accepted the position of CEO of GE in 1981 he faced a number of looming challenges which firstly included taking the reins of the company following a complete reorganization by a strong, successful predecessor. The second major challenge he faced was the new globalized marketplace in which GE had to compete. Welch had to act fast before GE's territory was taken over by global growth from foreign companies. The third challenge was the beginning symptoms of a contracting economy which, by 1982, would become a deep recession. Jack Welch approached the first challenge of taking over from a successful predecessor by deciding that keeping the status quo would not guarantee GE future success. He felt that GE was to be a standard; they needed to be “better than the best”. This fierce drive to restructure the company during the next 5 years, immediately after the organization had barely finished their prior restructuring, also helped solve his other immediate challenge: the economy. He effectively implemented a new strategy, “Fix, Sell, Close.” If a business could be fixed so it could be #1 or #2 in its competing category then it was kept, otherwise the business was sold or closed. In order to prepare for the incoming global competition, Welch decided to part ways with 12 of his 14 previously hired business heads. The new business heads had to fit a certain billing: “strong commitment...
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...Judd MGMT 320 10/17/2013 General Electric under Jack Welch A top 10 Fortune 500 company in 2013, General Electric is expected by many to display significant responsibility towards its surrounding environment and society. Taken over by John Francis Welch in 1981, GE developed from a profitable manufacturing company to an immensely profitable company that revolved its activities mostly around the provision of services, during his 20-year tenure. Even though a corporation has a number of duties it should carry out in order for it to be considered responsible—and GE had many--the fact remains that its first and most important duty is to be as profitable as possible; thus, the Welch era GE did fulfill its duty, although certainly not entirely or up to the best of its capabilities. This is exemplified by the fact that, by the end of his tenure, earnings per share raised from $0.46 to $1.07; in the 10 year period following his retirement, the same earnings decreased by 54%. One of the main issues Welch’s critics have with his leadership methods refer to the losses of jobs that occurred while he was the CEO of the company, around 120,000. However, these were the result of his emphasis on efficiency and performance as well as a global approach to business that would reduce production costs. Given a highly competitive marketplace, his actions should certainly be understandable. Undoubtedly, the demeanor GE displayed under Welch can be perceived as an expansion of Milton Friedman’s...
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...Essay Jack Welch, former CEO of General Electric Corporation, started his story when was at Salem High School which is north of Boston, as a senior. The hockey team he was part of lost to their rivals yet again. Jack throws his stick down the ice in an angered rage and then goes into the locker room. A short few moments later, his mother walks through the locker room and reprimands Jack, telling him in no uncertain terms he has no business playing if he does not know how to lose, by saying “If you don’t know how lose, you’ll never know how to win” (Welch, Byrne, 2003, Loc. 189 of 6927). Jack’s mother taught Jack the importance of competition in numerous ways throughout his childhood and while becoming his primary influence. Jack learned to lead with warmth, aggressiveness, toughness and generosity through his mother. She instilled management beliefs in Jack that included knowing how to compete while also and facing reality. His mother taught him attentiveness, and he learned that people are motivated through both reward and discipline. Though humility was one of his outwardly weakest management attributes he admitted he was rather humble internally, especially once he won the CEO job. These ideals that Jack’s mother instilled into Jack ran true through the book as he went through some of his most notable accounts of his career. Jack certainly exhibited the numerous traits his mother instilled in him listed on page 38 of the Daft text. As I read the text the most notable traits...
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...The Most Pivotal Organizational Change of the 20th Century “Jack Welch the Man With the Plan” By: Schavalia A. Holmes HR587, Professor: M. Luckett TABLE OF CONTENTS PAGE INTRODUCTION 3 JACK WELCH BECOMES GE’s CEO 4-5 JACK WELCH ON GLOBALIZATION 5 JACK WELCH, LEADER, HIS MANAGEMENT STYLE REVEALED 5-7 JACK WELCH OUTLOOK ON WHAT MAKES A GOOD LEADER 7-11 JACK WELCH METHODOLOGY INCORPORATES KELLER’S MANAGING ORGANIZATIONAL CHANGE COURSE TCO’S ……………………………………………………………………………………………………12-13 JACK WELCH BEST CEO (MANAGER) EVER, OR IS HE THE “GRINCH WHO STOLE MASSIVE EMPLOYEES LIVELIHOODS? 14-16 CONCLUSION 16-17 BIBLIOGRAPHY 18 INTRODUCTION How do you take a company through restructuring and enable it to sustain the change and make it one of the largest multinational corporations in the world? Well, John F. Welch Jr. (Jack Welch) succeeded in doing just that. Welch climbed the corporate ladder and became Chief Executive Officer (CEO) of GE. Jack Welch (Welch) used integration techniques, well developed strategies, and made many acquisitions, while selling off or closing down its less productive companies and divisions. His task was to reinvent GE’s culture and change business operation by converting managers into leaders. He empowered his employees, gave them special rewards, devised training programs and opened the door for employees to acquire stock options. Welch’s mission was to transform the GE organization...
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...This post by LinkedIn Influencers Jack and Suzy Welch originally appeared on LinkedIn. For some people, the question of whether leaders are born or made is truly intellectual — fodder for a good classroom or dinner party debate. But for people in front-line positions to hire, promote, and fire, the question, "Who has the right stuff to lead?" definitely has more urgency. Getting the answer right can drive an organization’s culture and performance to new levels. Getting it wrong can too — downwards. So what’s the answer? Of course, since we’re talking about real life here, it isn’t neat or simple. The facts are, some leadership traits are inborn, and they’re big whoppers. They matter a lot. On the other hand, two key leadership traits can be developed with training and experience — in fact, they need to be. Before going any farther, though, let’s talk about our definition of leadership. It’s comprised of five essential traits. These traits, by the way, do not include integrity, which is a requirement in any leadership position, or intelligence, which is likewise a ticket to the game in today’s complex global marketplace. Nor do they include emotional maturity, another necessity. These three characteristics are baseline — they’re givens. So let’s go beyond them. From our experience, the first essential trait of leadership is positive energy — the capacity to go-go-go with healthy vigor and an upbeat attitude through good times and bad. The second is the ability...
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...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 communicating with each other, and as a result the work is not productive. Analysts projected that GE would become unprofitable by the end of 1982 if the company was not dramatically reconstructed. Jack Welch needed to change the culture of the organisation; he wanted to create a culture of openness, confidence, leadership and creative thinking. His goal was to lead and not manage...
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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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...Jack Welch is one of the most successful business leaders in the world. He spent 40 years at General Electric. He retired in 2001 after spending 21 years as chairman and chief executive officer. His nickname at GE was Neutron Jack, because of the fact that 118,000 people left the company in his first 5 years at chief executive officer. Since he retired from General Electric in 2001, he has traveled the world giving speeches and lectures to business audiences. In his book, Winning, Jack Welch tells his story on how to win in business. Jack Welch wrote Winning after speaking to audiences all over the world. He summarizes the most frequently asked questions he has received over the years. The book is broken out into 5 main sections; Underneath It All, Your Company, Your Competition, Your Career, and Tying Up Loose Ends. In the first section, Underneath It All, Jack Welch talks about mission and values, candor, differentiation, and voice and dignity. Throughout his book, he talks about how other companies operate. One of them is Bank One. One of their values is “We treat customers the way we would want to be treated.” They identified some behaviors that made the value come to life. Some of them are: • Never let profit center conflicts get in the way of doing what is right for the customer. • Give customers a good, fair deal. Great customer relationships take time. Do not try to maximize short-term profits at the expense of building those enduring relationships...
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