| Human Resources|
General Electric (GE) is a true global company with presence in more than 100 countries. Clearly, with a workforce of more than 320’000 employees, GE also has to have proper human resources processes established. Its dynamic Business Operation Model and sophisticated and evolved human resources strategy are results of the steady growth over more than 130 years of corporate history. Since its incorporation in 1878, many CEOs have shaped the company’s products, people and processes – few very intensive and a bit less. GE’s Human Resources Strategy and Talent Machine:
The word GE evokes the thoughts of People Focus, Performance Oriented growth.Leadership and Talent development, Retention and Maximum Talent utilisation. GE’s HR strategy is completely aligned with the Business goals of the organization. This strategic framework of double sided benefit (Employee and Employer) based on the talent or growth Potential can be called as a Talent Machine.Given by the fact that the CEO and senior leaders spends valuable time helping devise the HR strategic goals division by division at the beginning of every year. They dont‘ work in Silos. Visions are communicated and shared throughout the business process. GE spends a huge sum of around 1 Billion Dollars every year for the employee development. The growth potential of the employees especially the leadership potential is tracked closely and are rewarded appropriately. The performance review at GE is highly effective and evolved. It has a long-term orientation and constructive criticism and an in built succession planning. The most important HR strategic policy is that more than 90% of the leadership positions are filled from within the organization.Therefore, Success in GE needs not just performance, but also a true display of GE Culture and values. On the whole, GE’s maturity in the area of HR is clear when one looks into the sophisticated performance management process and tools and how the organization benefits itself and at the same time promises a good return to the employee. The pros and cons of GE talent machine:
Over decades, GE has been setting benchmark and new models in all business aspects, including their people management. Their employment policy has been reformed to cope with the overall strategy planning. As a well diversified multi-division organization, GE has developed a highly systematic personnel management mechanism. They set up a corporate system which contains individual evaluation (Session C), performance reviewing (EMS), training centre and programs (Crotonville’s school, MDC, BMC, EDC courses) to train the “high potentials”- High performers with huge growth potential. This system is tailored so that each employee’s performance can be measured using fair criteria. The internal Executive Development Courses provides extensive professional network for the attendants, as well as a forum to exchange experiences, consequently grows a GE society. Also, its large business scale provide each individual plenty opportunity to find his/her niche, someone may fail on one job, but he can be strategically reallocated to where his talent will be more efficiently utilized (for instance, Dow Wilson). For those hardworking, self-motivated and employees, GE is their career oasis where their competencies and talent will be challenged, then rewarded financially and psychologically. Over the year, GE has established corporate culture to allow “second voice”, ”boundary expansion” and provide mentor so that all individual get the opportunity to shine. In turn, company will receive instant positive outturn. Even though most of their personnel management have contributed greatly to their business success, it’s still not possible to create a flawless system especially when the economic environment changes so fast. This implies a possibility of conflicts or attack in terms of competition. First, anyone who runs such...