Contemporary business practice reveals the existence of varying leadership styles driven by different motives Blanken To begin, leadership could be defined as the process of facilitating individual and collective efforts to accomplish shared objectives Yukl
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. We have done a detailed study of the impact Jack Welch has had as CEO over the past twenty years and 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 at the same time more profitable.
But most shareholders were also starting to get worried about his retirement and the prospects of the company post his retirement. The analysis shows the stages through which GE progressed under Jack Welch and its effects on its employees and the culture of the company as a whole.
Evolution of GE In GE had a highly centralized and tightly controlled culture but GE as a company was constantly undergoing change.
By it delegated the power of decision making to the department managers which led to greater decentralization. It also developed its staff and strategic planning system. During that time most of the companies were imitating the SBU based structures.
GE also followed SBU based structure as it went in for more decentralization but became a role model for other companies in SBU and strategy formulation. Jones went for restructuring of the organizational structure and also concentrated on having good relationships with the government.
Jones management philosophy was mainly based on the following principles: This was important in GE at the time. Jones wanted everyone to develop a clear-eyed view of business reality. He wanted strategic thinking to be a way of life.
This meant knowing people, both customers and company people as individuals. For Jones this meant a consensus framework and the willingness to make a decision if consensus could not be reached. There are three specific pieces of advice in this area that deserve special mention.
Accept decisions that may not be in the best interest of your unit, if they are in the best interest of the company.
Multilayer in organization GE faced with problems when it was not able to store and process the massive information generated from the strategic plans.
This brought about more levels of hierarchy in the organizational structure. A major thrust was into international markets. Jones became an eloquent voice for the expansion of world trade and the restoration of U.
Welch based his proposed and implemented changes on proven tactics used by other successful companies to achieve his strategic organizational goals. Realizing that bureaucratic models of organizational structures were prone to promoting sluggishness, Welch opted to depart from this model and implement a more flat organizational structure to assist in meeting his objectives.
The main change drivers which caused the implementation of these changes are: Thus changes in the GE helped the company to overtake its competitors and created a revolution in the industry.
SBU-based structure of the organization under the leadership of Reg Jones. Multilayer structure of the organization with departments, divisions, groups and SBUs topped with organizational layer of sectors. Bureaucratic structure of the organization leading to inefficiency and often delay, costing the company to lose its edge.
S Economy was in recession and high interest rates and high unemployment rate was prevailing since the depression. Global competition faced by the company was increasing, predominantly in the form of Japanese competitors 5.
Diversification of GE into many businesses, many of these were unprofitablehad made GE lose it focus and core competency. Welch also had to defy or meet the charismatic aura created by Jones. Fix,Sell or Close concept-to disengage i.Jack Welch’s leadership 1 Transformational leadership is the style of leadership that focuses on idealized influence, inspirational motivation, intellectual stimulation and individualized consideration.
The Jack Welch Era at General Electric Essay example Words Jul 26th, 4 Pages Jack Welch was the CEO of General Electric (GE) for 20 years from to In relation to personal leadership, a detailed study of the life of Mr.
Cathy will inspire me to keep life and leadership in perspective. It will be a personal goal in all levels of leadership to truly put principles and people ahead of profits. Style of Leadership; Jack Welch Leadership Principles; Share your ideas or thoughts?
Free Assessment. in Innovation, Jack Welch Style Of Leadership. How Stephen Covey Helped Me Achieve A Work-Life Balance. Insights From Steve Jobs On Visionary Leadership. Essay on The Jack Welch Era at General Electric Jack Welch was the CEO of General Electric (GE) for 20 years from to Jack transformed GE, taking a solidly profitable manufacturing company and turning it into an exceptionally profitable conglomerate dominated by service business.
GE’s Two Decade Transformation: Jack Welch’s Leadership Essay Sample. The case examines the transformation of GE under the charismatic leadership of Jack Welch, from the time when GE was a small player to its status of the ‘Most Admired Company’ and the ‘Most Respected Company’ by late s.