Internal vs External Change Agent

Topics: General Electric, Chief executive officer, Jack Welch Pages: 3 (912 words) Published: October 20, 2012
Prompting individual from within or hiring personal from other organisation, would have its positive and negative effects. The CEO’s decision will also affect the organisation culture, behaviour and profit. Some of the case of promoting from within likes Jack Welch from General Electric which is the “youngest ever chief executive officer (CEO) in 1981” (Answer). He was an individual promoted from within and worked his way up the corporate ladder. During the 20 years of his service as CEO, the organisation’s revenues rose from USD$26.8b to nearly USD$130b (Electric). He earned a nickname “Neutron Jack” by laying off more than 100,000 (Answer) in his first seven years of service. He also “…sold off many of its traditional businesses, such as house wares and televisions, and moved into high-tech manufacturing, broadcasting, and investment banking…” (Answer). One of the example that he did was “In his early years, he helped GE Plastics explode from a $28 million after-thought into a billion dollar business.” (Answer) Promoting personally from the internal organisation will have its positive effects, as they will have known the organisation structure, culture and also the employees’ working attitudes and behaviour towards their job and the organisation. And will have the awareness of what is the current problem of organisation is facing and the cause of it. Which can be shown by Jack Welch decided to quit due to “frustrated by the organisation's bureaucracy…” (Answer). This could save the time of finding out of the current practices, culture and procedures of the organisation. And know which of the manager of the organisation can entrust. This provides a morale boast to the front line employee who is suffering from the current situation; a mutual understanding will be form between the employees and the new CEO as they might have worked together before. Knowing the structure of the organisation inside out, will let the new CEO to know which part of the structure is...
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