Ge Two Decades of Trassformation
GE’s Two Decade Transformation : Jack Welch’s Leadership
Executive Summary
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 1990s. 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.
GE progressed magnificently under the reign of "Neutron Jack, even though it was at a cost of letting go numerous employees even at the executive levels! 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 1930 GE had a highly centralized and tightly controlled culture but GE as a company was constantly undergoing change. By 1950 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.
Era of Reg Jones
Reg Jones inherited GE when it went through a major reorganization. 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: * Minimize ambiguity: This was important in GE at the time. Jones worked to make sure that
Executive Summary
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 1990s. 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.
GE progressed magnificently under the reign of "Neutron Jack, even though it was at a cost of letting go numerous employees even at the executive levels! 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 1930 GE had a highly centralized and tightly controlled culture but GE as a company was constantly undergoing change. By 1950 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.
Era of Reg Jones
Reg Jones inherited GE when it went through a major reorganization. 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: * Minimize ambiguity: This was important in GE at the time. Jones worked to make sure that