... Cultural Assessment of General Electric The corporate culture of General Electric (GE) is a composite of its people, leadership, organization, structure, and processes from past to present. This paper will provide an assessment of the corporate culture of GE, and provide an insight into the dynamics, which have made it one of the world’s premier companies. The aspects of General Electric’s culture begin with its leadership, and progress through its management, workforce, policies, and objectives. GE leadership provides corporate direction with a formalized set of values and action verbs, which guide the organization (GE, 2005). In lieu of a corporate mission statement, GE identifies its key strategies and initiatives in its annual Letter to Stakeholders (GE, 2004). The corporate office maintains a distinct presence among its sprawling empire. This empire is composed of a worldwide workforce, which is involved in a myriad of activities. To lead this powerful organization, management is trained and indoctrinated into the GE culture. The myths, and legends, surrounding General Electric, lend to the cultural identity shared by the entire workforce. Training, organization, and structure are established and maintained through several processes, and programs, which contribute to GE’s cultural identity. General Electric’s leadership provides the vision, which establishes the culture of the organization. The overall direction of the corporation is provided by...
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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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...I choose to do my research paper on General Electric. General Electric is a very successful conglomerate company. I looked at how General Electric manages to be so successful in this area. In this class I have learned that to be a successful company there is another area of concern that is structure of management and how it affects the company. When looking at General Electric Company and why this company is successful conglomerate company. I had to find out what a conglomerate really details. In Order to be a successful conglomerate Company the company must spread resources into this many unrelated businesses gives great stability even in the event of a complete collapse of one of the market, but it also makes many of the decisions the upper management must make incredibly complex. According to The Financial Times, General Electric (GE) is today the “World’s Most Respected Company” (“Facts”). Most of this admiration is due to the variety of operating segments that the company provides. For example, GE businesses are classified into ten categories: Commercial Finance, Consumer Finance, Consumer and Industrial, Energy, Equipment Services, Healthcare, Infrastructure, Insurance, NBC, and Transportation (“Company”). The conglomerate design is put into use when an entity has holdings in many unrelated businesses. This form is also known has the H-form because it is basically a holding company that comes about from unrelated diversification. This holding company form of organization...
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...Management and Leadership Paper Tracy Harriss MGT/330 March 30, 2010 Tonya Moore Management and Leadership Paper General 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...
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...GE’s Talent Machine Case Submission AKESH KHANDELWAL (159278005) BOOPATHI RAJA P R (159278021) CHANDRAKANT KHETAN (159278022) JAYESH PARDESHI (159278053) SANDEEP PATTANAIK (159278084) Q1: Do HRM SWOT? Answer: HRM SWOT Analysis Strength Weakeness •Promoted its top leaders from its own rank •Meritocracy-based practices •Emphasis on education (on/off-the-job training) at all levels •Decentralization of authority and responsibility •Ease of switching division/business, location •Good mentoring programs •Can attract good talent because of good brand name •Vitality Curve forced performance classification, which may not always give the true picture •Depandency on talent from America •Strongly performance-driven appraisal system •Strong sacking policy for under performers •Less weightage given to experience and position for appraisal and promotion •In more hierarchial business cultures, like India, it is difficult to attract & retian managers Opportunity Threat •Aggressive international approach for recruiting •Better candidates could be hired for top positions if GE were open to hiring from external sources (just not focus on internal progression) •Have more external talent acquisition engagements to attract industry experts rather than shifting people from within to leadership roles from different verticals. •Initially, post MBA the top talent preferred to go to Wall Street •People with ambition to become chairman/CEO in...
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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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...Two-Decade Transformation: Jack Welsh’s Leadership 1.) How difficult a challenge did Welch face in 1981? How effectively did he deal with it? What major lesson can we learn from his “first stage” that should be incorporated into our general “planned change” framework? Jack Welch faced several difficult challenges when he came into office in 1981. One of his primary areas of concern had to be replacing the retiring CEO Reg Jones. Jones had had great success during his time at GE, particularly in terms of growth of strategic planning with the organization. He restructured the organizational levels of the company to handle the tremendous volume that his strategic planning process was producing. Many of these processes used within the business community as benchmarks to follow. The public perception of Reg Jones was also very high, as he had been recognized with “CEO of the Year” honors multiple times, as well as “CEO of the decade.” Welch had to be up to the task of replacing a man that many in the industry considered a legend. Another major challenge Welch faced that can’t be overlooked is the external environment when he took over as CEO. At the same time he was charged with the task of replacing his successful predecessor, Welch also had to deal with a U.S. economic recession. Additionally, there was an increasing amount of rivalry from global competition that compounded the problems being faced by the sluggish economy. It would be one thing if Welch was entering his new position...
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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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...Two-Decade Transformation: Jack Welsh’s Leadership 1.) How difficult a challenge did Welch face in 1981? How effectively did he deal with it? What major lesson can we learn from his “first stage” that should be incorporated into our general “planned change” framework? Jack Welch faced several difficult challenges when he came into office in 1981. One of his primary areas of concern had to be replacing the retiring CEO Reg Jones. Jones had had great success during his time at GE, particularly in terms of growth of strategic planning with the organization. He restructured the organizational levels of the company to handle the tremendous volume that his strategic planning process was producing. Many of these processes used within the business community as benchmarks to follow. The public perception of Reg Jones was also very high, as he had been recognized with “CEO of the Year” honors multiple times, as well as “CEO of the decade.” Welch had to be up to the task of replacing a man that many in the industry considered a legend. Another major challenge Welch faced that can’t be overlooked is the external environment when he took over as CEO. At the same time he was charged with the task of replacing his successful predecessor, Welch also had to deal with a U.S. economic recession. Additionally, there was an increasing amount of rivalry from global competition that compounded the problems being faced by the sluggish economy. It would be one thing if Welch was entering his new position...
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...|HOW JACK WELCH RUNS GE | |A Close-up Look at How America's #1 Manager Runs GE | |Whisked by chopper from New York City, Jack Welch arrives early at the (GE) training center at Croton-on-Hudson. He scoots down to The | |Pit--the well of a bright, multitiered lecture hall--peels off his blue suit jacket, and drapes it over one of the swivel seats. | | | |This is face-to-face with Jack, not so much as the celebrated chairman and chief executive of GE, the company he has made the most valuable| |in the world, but rather as Professor Welch, coach and teacher to 71 high-potential managers attending a three-week development course. | | | |The class sits transfixed as Welch's laser-blue eyes scan the auditorium. He hardly appears professorial. With his squat, muscular, | |five-foot, eight-inch frame, pasty complexion, and Boston accent, the 62-year-old balding man looks and sounds more like the guy behind the| |wheel of a bus on Beacon Hill. And he isn't there to deliver a monologue...
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...CASE STUDY Succession Management at General Electric# General Electric (GE) is widely recognized and respected for its leadership talent and its succession management system. One of the best examples of succession management is how GE’s former CEO, Jack Welch, shaped and elevated the company’s philosophy, practice, and reputation for developing leaders. In a 1991 speech, Welch stated, “From now on, choosing my successor is the most important decision I’ll make.” GE’s commitment to developing leaders from within has yielded positive results for both the company’s employees and for GE. In fact, the program has been so successful that it’s been widely emulated by other global organizations. Measuring and developing talent lies at the forefront of GE’s business strategy discussions. GE’s operating system, referred to as its “learning culture in action,” entails year-round learning sessions in which leaders from GE and outside companies share best practices with one another and generate ideas for new practices. Harry Elsinga, manager of executive development at GE, notes, “We really have a tight organization around how we combine our leadership meetings and how we approach our business. We have a constant cycle going on throughout the year where we talk about business and people at the same time. How do we develop talent in those businesses, how do we make sure that we have the right people to open a particular plant or to do an acquisition, etc.? Those discussions always...
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...AM FL Y TE Team-Fly® 29 Leadership Secrets from Jack Welch Abridged from Get Better or Get Beaten, SECOND EDITION Robert Slater McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0-07-141684-6 The material in this eBook also appears in the print version of this title: 0-07-140937-8 All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at george_hoare@mcgraw-hill.com or (212) 904-4069. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights...
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...to 2008 under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The paper is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to 2008 with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. Keywords: General Electric, Corporate strategy, Leadership, CEOs. 1. The Jack Welch Period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s products and services through their simple and highly functional designs. Welch’s corporate strategy was all about performance and efficiency. Throughout his 20 years as CEO, he relentlessly drove his subordinates to the limits of their abilities, encouraging employees at all levels to embrace ambitious targets and continuously improve their performance. Welch was renowned for his...
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...GE’s Two-decade Transformation: Jack Welch’s Leadership « We Bring Good Things To Life ». This is how General Electric (GE) defined its activity, in general terms, between 1979 and 2003. During this period, and more precisely from 1981 to 2001, Jack Welch was the company’s CEO. This previous advertising slogan, designed by the advertising firm BBDO, largely contributed to GE corporate identity; indeed, according to Baer Performance Marketing, “When you hear the name General Electric, […] “We Bring Good Things to Life” is also brought to mind” (baerpm.com). Furthermore, it didn’t have for only purpose to promote the firm’s products and services, but it also emphasized their high quality, and as a result, it highlighted GE’s will to improve consumers’ lives. In other words, the slogan had more than communication purposes: it would lead the entire process of value creation; it summed GE’s strategy up. General Electric was created by a merge between two electricity-related companies – Edison General Electric Company and Thomson-Houston Electric Company, in 1892, from Thomas Edison and Charles Coffin initiative. Widely considered as one of the most successful corporations of the 20th century, recognized by Fortune to be the “Most Admired Company in the United States” and named Financial Times’ “Most Admired Company in the World” in 2001, the firm has dramatically grown from a merge between two electricity enterprises to an American multinational conglomerate corporation...
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