Ge’s Two Decade Transformation: Jack Welsh’s Leadershipge’s Two Decade Transformation: Jack Welsh’s Leadership

1377 Words Nov 14th, 2011 6 Pages
GE’s Two Decade Transformation: Jack Welsh’s Leadership
Introduction
GE was founded in 1878. It has grown multi folds since the time of inception. It has been named as “Most Admired Company in Us” and “Most Admired Company in the World”. It has companies in the field of electricity production, electric appliance, lighting, aircraft engines, medical system, and diesel locomotives. GE has 43 independent SBU (Strategic Business Unit). Despite all these variations available there was steadfast growth in the company. The management practices in GE were considered as bellwether of American management practices. This was due to the procedures adopted by Jack Welsh.

Q1: How difficult a challenge did Welch face in 1981? How effectively did
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“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 all over the world. Nine companies were selected and their processes studied. This was the most logical thing to do because GE now was really in a position to bring internal changes to make its processes efficient and GE now had enough resources to do it. This resulted in gauging of the internal workings, processes and activities with respect to the best in the world. This resulting in radical new paradigm of work approaches. Welch then looked at globalization. He reasoned that once a strong “home” base is established, it was now the time for a look at internationalization since the new GE mantra was an aim to be at the

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