Assignment #1: “The GE (General Electric) Way”
Ritual, Bonn Karlo M.
Engr. Keneth B. Sedilla
Jack Welch, the CEO of General Electric from 1981 to 2001, was regarded by many as one of the best managers in recent business history. Do some research to identify the characteristics and behaviors that made Welch so admired. Can you see drawbacks to his management style?
I. Jack Welch
Jack Welch was born on November 19, 1935 in Peabody, Massachusetts. His father, John Welch, was a conductor for the Boston and Maine Railroad service, while his mother, Grace, was a homemaker. He attended the Salem High School and went on to graduate from the University of Massachusetts Amherst in 1957. He secured a Bachelor of Science degree, majoring in chemical engineering. He earned his MS and PhD in 1960, from the University of Illinois, Urbana-Champaign.
Jack Welch began his tenure at General Electric in 1960, as a junior engineer in Pittsfield, Massachusetts, at a salary of USD 10,500 per annum. In 1961, his annual raise and the strict bureaucracy within the then existent General Electric totally disillusioned him. He even made plans to join International Minerals and Chemicals, Skokie, Illinois. It was the foresight of Reuben Gutoff, a young executive at GE, that convinced Welsh to stay on. He agreed mainly on the basis of the promise that Gutoff would work towards changing the existent bureaucracy within the company. Welsh's genius was duly recognized and he rose to the post of vice president in 1972. Thereafter, there was no turning back.
Jack Welch became senior vice president in 1977 and took over the office of vice chairman in 1979, before becoming the youngest chairman and CEO of GE in 1981. Within a year as CEO, he replaced nearly all the management strategies executed by Reginald H. Jones, his predecessor. He worked hard to make GE buoyant and competitive
Corporate America did not take long to follow in his...
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