Scribd
Upload
9 views8 pages

GE's Talent Machine:: The Making of A CEO

The document discusses the evolution of GE's leadership and human resource practices through the tenures of Ralph Cordiner, Reginald H. Jones, Jack Welch, and Jeff Immelt. While Welch's transformative HR strategies improved performance and leadership development, they also led to a culture of fear and low employee morale. Immelt aimed for cultural transformation and effective staffing but faced resistance to change and issues with job grade simplification, suggesting the need for a balanced approach to career advancement and recognition.

Uploaded by

kashishjain526
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
9 views8 pages

GE's Talent Machine:: The Making of A CEO

The document discusses the evolution of GE's leadership and human resource practices through the tenures of Ralph Cordiner, Reginald H. Jones, Jack Welch, and Jeff Immelt. While Welch's transformative HR strategies improved performance and leadership development, they also led to a culture of fear and low employee morale. Immelt aimed for cultural transformation and effective staffing but faced resistance to change and issues with job grade simplification, suggesting the need for a balanced approach to career advancement and recognition.

Uploaded by

kashishjain526
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

GE’s Talent Machine:

The Making of a CEO


Megha Phirangi -XOH24011
Aanchal Sharma -XOH24001
Anjali Panicker -XOH24028
Pragati Prashanth -XOH24030
Kashish Jain -XOH24010
Ralph Cordiner: Cordiner's tenure was marked by significant advancements in management training and
decentralization, which empowered leaders and increased operational flexibility. However, these changes
also led to challenges in coordination and consistency across the company.

Reginald H. Jones: Jones focused on strategic planning and financial discipline, which strengthened GE's
business units and ensured long-term growth. However, his tenure lacked innovation in HR practices and
faced challenges in succession planning and employee engagement.

Both leaders contributed to building a foundation for GE's future success, but it was Jack Welch who
brought a transformative approach to HR, focusing on leadership development, performance
management, and a strong corporate culture that significantly impacted GE’s trajectory.
Jack Welch:

Positive Impact:

1. Performance Evaluation: The Rank and Yank system also known as stack ranking, is closely related to
the concept of Competency. It evaluates employees based on their skills and performance. It also
drives high performance and ensures that top talent is recognised and rewarded.

2. Leadership Development Successes: Welch invested heavily in leadership development through


programs like the GE Management Development Institute at Crotonville.This enhanced employee
skills, knowledge and competencies, leading to improved career progression.This also created a
strong pipeline of future leaders, contributing to GE’s sustained success and managerial strength. This
initiative demonstrated the effective implementation of Human Resource Development at GE
Issues

Jack Welch's leadership at GE brought about significant financial success and transformation,
but it also introduced various context issues related to culture, morale, and long-term
sustainability. Welch's implementation of the "rank and yank" system, led to a culture of fear,
where employees were constantly worried about job security. The intense competition fostered
an environment where collaboration and trust were undermined. Constant pressure to perform,
negatively impacted employee morale and engagement. Low morale and engagement can
lead to decreased productivity, higher absenteeism, and a lack of loyalty- this is directly related
to issues in integration and employee relations.
Alternative Approach and Solution
Instead of using the “Rank and Yank” system, one to adopt continuous feedback and development
process. This provides timely feedback, allowing employees to make adjustments and improve
performance in real time.

Implementation

● Utilise regular one-on-one meetings between managers and employees


● Use performance management software to track goals and development plans
Jeff Immelt
Hits:

Cultural Transformation :Immelt aimed to transform GE’s culture to be more innovative and
customer-focused, moving away from the traditional finance-heavy model.This involved successful
Organizational Development and Change Management. Creating a culture that embraced
innovation and agility was crucial for GE’s adaptation to a rapidly changing market.

Staffing: Jeff Immelt’s utilization of Greg Lucier as a leader within GE Healthcare is a prime example of
effective staffing practices in HRM. it involved identifying, developing, and placing talent in critical
roles to achieve organizational goals.

Human Capital Theory: Immelt effectively used the principles of Human Capital Theory to leverage
human capital for the company's growth. This Theory posits that investments in people, particularly
through education and training, increase their productivity and value to an organization. Immelt's
strategies involved identifying, developing, and utilizing human capital to drive innovation, digital
transformation, and global expansion.
Misses:

Resistance to Change: The ambitious digital transformation initiatives faced resistance within the organization.
The speed and scale of changes sometimes overwhelmed employees, leading to challenges in adoption and
integration.

Simplification of Job Grades: While Jack Welch reduced Cordiner's 29 job grades to seven broad bands, resulting
in fewer job promotions. Jeff Immelt could have rectified this as restructuring led to demotivation and low morale
among GE’s workforce in Asian countries like India, where promotions are highly valued and represented an
important psychological reward.
Alternative Approach and Solution
A balanced approach that maintains the simplicity and clarity of GE's global management structure while
addressing needs for recognition and career advancement would likely be an effective strategy. This ensures
that employees feel valued and motivated, leading to higher engagement and retention.

Solutions:
1. Create Intermediate Bands: Introduce intermediate levels within the existing broad bands to allow for
more frequent promotions without creating too many formal job grades. Adapt the band structure
specifically for regions like India where cultural expectations for career progression differ.

2. Job Titles: Adapt job titles to include preferences and expectations. For example, titles like "Associate
Manager," "Senior Specialist," or "Lead Analyst" can be introduced between major bands.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy