Jack Welch and Transformational Leadership Essay

Analyzing GE’s corporate-level strategy from 2001 – present with Jeff Immelt as CEO, GE focuses on the growth and development platforms. Technology is the key driving force for GE’s future and growth. Advancements in industries such as energy, health and aviation fueled demand for cleaner and more efficient energy production. GE identified new markets with potential high-growth that offered attractive returns through strategic mergers and acquisitions. As CEO, Jeff Immelt established a process for identifying projects that offered attractive growth potential which were then nurtured and treated as special projects or initiatives that were not subject to strict budget constraints. Immelt introduced GE’s three strategic imperatives as: (1) sustaining its strong business model, (2) strengthening the business portfolio, and (3) driving its growth initiatives. www.ge.com

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?

Transformational Leadership empowers or enables its followers. The leader engages with the follower in a way that both the leader and follower transcend to a higher level of motivation and morality (Nicholls, 1994).

There are many models of leadership that exist across a range of fields (e.g. social work, education, psychology, business, etc.). The ability to transform an organization successfully requires a different set of attitudes and skills. Transformational leadership is an approach where a leader utilizes inspiration, charisma, individualized attention, and intellectual stimulation with their employees (Iachini, Cross, & Freedman, 2015, p. 651). Transformational leadership helps to clarify organizational vision, inspires employees to attain objectives, empowers employees, encourages employees to take risks, and advocates the seeking of alternative solutions to challenges in the workplace (Transformational Leadership, 2015). It allows the leader to engage and motivate each follower identify with the organization’s values and goals.

Transformational leaders express a clear vision, inspire others and work together with their team to identify common values and goals (Marquis and Huston 2009). They also recognise followers’ potential, assist them to develop their strengths and identify individual differences (Bass 2008).

Over the past twenty years, an abundant body of researches have been done to review transformational leadership and transactional leadership. Burn (1978) was the first person to introduce and conceptualize the concept of transformational leadership and transactional leadership. Bass (1985) based on Burn’s concept and deepened his notion with modifications, which stated that one of the best frameworks of leadership is transformational or transactional. Following Bass and Avolio (1994, p. 4) provided the idea of these two leaderships and generalized them into the development of global economic world. Bass and Avolio (1997) also suggested that there was no need to view transformational and transactional leadership as

Transformational Leadership can play a role in creating a successful team. It can also be the process that changes and transforms people dealing with emotions, values, ethics, and standards. Transformational Leadership is the process whereby a person engages others and creates a connection that raises the level of motivation and morality in both the leader and the follower (Northhouse , 186). This applies to a team because you always have to be able to connect and motivate others

Name as “Manager of the Century”, Jack Welch has made General Electric “Most Admired Company in the world”. This case, from an extensive perspective, describes us how Welch made such a legend during his two decade’s working in GE. After Welch become CEO in 1981, he initiated a series plan from structure redesign, incentive method changing, to culture building. By his continuous efforts, Welch finally delivered the world an astonishing achievement: GE has achieved average 23% annual growth during two decades, which will surly be a tempting story for us. We will wonder whether we can duplicate such a success. To answer this

Within this new business environment that GE was facing, customers needs, wants and expectations of what products can offer them is forever changing. Immelt saw and understood this from the amount of time spent with customers, and implemented this idea within GE through the IT

Did GE in the Welch era fulfill its social responsibility duty? Could it have done better? What should it have done?

Jack Welch’s vision of what GE was possible of gave the company a vision for twenty years while he was the CEO and chairman. He states, “leaders make sure people not only see the vision, they live and breathe it.” (Winning, pg 67) He not only allowed for employees to stretch, but demanded it. In teaching workers to stretch Welch knew that workers “may fail. In fact, they probably will fail. But stretching, and stretching the business, is going to improve performance results.” (Jack Welch on Leadership, pg 105) He also states that “only by setting the performance bar high did it become possible to discover people’s capabilities.” Jack Welch’s emphasis on candor and breaking the bureaucracy of modern business separated him from his contemporaries. He excited others of the possibility of being the biggest and best company in the world and rewarding his best employees that shared the values of GE. According to FORTUNE Editorial Director Geoffrey Colvin In "The Ultimate Manager, Welch leads the annals of management history not for anticipating the new world's changes ahead, but for acting on them: "His great achievement is that having seen it, he faced up to the huge, painful changes it demanded, and made them faster and more emphatically than anyone else in business. He led managers into this new world, which we still inhabit, and just as important, he showed business

Transformational leadership is a leadership style that promotes change as well as improves performance in the organization as a whole as well as on the individual employee level (Phaneuf, Boudrias, Rousseau, & Brunelle, 2016). James MacGregor Burns first introduced transformational leadership in his book titled Leadership that he authored in 1978. Burns defined transformational leadership as leadership that stems from one’s core unchanging values and beliefs. Burns believed that transformational leaders not only bring together their followers, but also positively influence their follower’s values and beliefs in a way that brings about positive change (Humphreys & Einstein, 2003).

General Electric is a well-known company in many regions of the world, but what people aren’t particularly aware of are the steps that General Electric has taken to get to where it is at today. When I think of General Electric the first thing that comes to mind is the role that the company plays in the production of household appliances, but General Electric is a much bigger contributor to people’s lives than is most people realize. People aren’t familiar with the internal business decisions that General Electric makes to ensure that the company continues to grow and run as smoothly as possible, allowing the company to continue to provide people with the services that they have grown to recognize as being a trademark of General Electric.

These types of leaders, according to Avolio (1991) possess the characteristics of individual consideration, intellectual stimulation, inspirational motivation, and idealized influence. This paper will examine the outcomes that are a direct result of transformational leaders who exhibit these types of traits such as job satisfaction and organizational commitment, job stress, safety, supervisor satisfaction, team, performance, and general.

     When Jack Welch was named CEO of General Electric, Welch saw a company in trouble even though the business world saw GE as an intrinsically healthy corporation, secure in its position as a world industrial leader. Welch knew that the company was too large to fail yet GE was too unwieldy to adapt for further growth. The changes he instituted restructured and revolutionized GE and made Welch the most respected CEO in business today. After reading the book there were three parts that really stood out for me.