General Electric Under Jack Welch

1117 Words May 7th, 2012 5 Pages
General Electric Under Jack Welch

In 1980 right before Welch took the position as CEO of General Electric, GE 's organizational rigid structure, resistance to change, and bureaucratic climate made it impossible to perceive important environmental changes. Furthermore, the organizational structure, decision-making process and information management procedures no longer fit the organization 's needs. In 1981 Jack Welch was not considered a leading contender for GE 's top job. However, his performance and earnings record ultimately won him the position over six other candidates. When Jack Welch took office as the new chairman and chief executive officer of General Electric, the company had entered the stage between the maturity
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Informality was also standard in company correspondence. Welch faxed handwritten notes to anyone in the company who he felt deserved personal communication, whether to motivate, correct, or congratulate. Welch also personally reviewed everyone who worked directly for him, handwriting extensive performance evaluations that sometimes ran several pages. This exercise not only gave specific and ongoing feedback to employees but was a chance for Welch to reflect on the businesses that each employee was leading. The atmosphere of informality was perhaps most critical among GE 's top leadership, where the confidence that came from being in familiar company encouraged executives to openly praise or criticize each other. Welch consistently forced executives to bicker in meetings, the idea being to force management to know their businesses, processes, and issues thoroughly before engaging in discussion with the boss. Under such conditions Welch could determine a manager 's level of dedication or passion for a plan or policy by noting the extent to which he was willing to argue. Welch was typically rude and had little patience for half measures and was equally combative in performance review meetings, in which company leaders would discuss the employees within their respective divisions. Welch could be quick to make judgments with seemingly limited knowledge, but he wanted to stimulate

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