Jack Welchs Transformed General Electric Company Business Essay


This paper will take a closer look at how Jack Welch's Transformed General Electric Company using a charismatic and transformational perspective. Strategic objectives in pursuing these objectives, Welch spent a great deal of time affirming values. Jack Welch is considered one of the greatest leaders in corporate business in the 21st century. What has made Welch so successful is his development of a modern model design for his company. Welch models has escalade the growth of general electric to over hundreds billion dollars in a span of an about twenty years. There is no other corporate leader who has shaped the value of their company for shareholder that welch running as high as $200 a share, making the company $650 billion. Welch transformed General Electric, which would key giant company during the industrial age in American into thriving company modern day company that is highly competitive globally. The key to all of Welch's success is his ability to relate to people in an informal matter. He has protected communicating across his organization informally with his chain command and with subordinates. Moreover, Welch's charismatic leadership style and his aggressiveness attending meeting and events his give him the ability to communicated effectively with may employee across the entire organization, he must deliver his message repeat to reinforce them. Them by handwritten directly to the employee this method has inspired many of the organization. Welch is known to spend most of his time in dealing with issues with employees. He personal knows over 1000 employee in the at all level in the company and this is by a first name bases.

Jack Welch's Transformation

Jack's Welch's Background

Jack's Welch's Strategy

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Jack Welch's strategy to restricted had to first get his followers to see the big picture where General Electric was heading in the future. Next, he created a completely new organization culture by restructuring the hierarchy of nine management levels in a simple structure that was more cost effective. Welch new that many of his senior leadership would question his policies. However, the key to his plan was to stick with the plan and policies, regardless how subordinates felt. Finally Jack welch knew that there must be some high risk taken in order for changes to take place. However he obviously knew, how far to take risks, this was due to him knowing what strength and weaknesses were in leading the organization. Nether the lees Jack Welch's strategy created the standard and benchmarks to instill in his subordinates change at general electric

Jack Welch's Charismatic Style

Indeed, there is no doubt that Welch had displayed a substantial level of charismatic leadership during his reign at the organization. Jack Welch has shown his ability as a transformational leader by continuously trying to inspire and inspire his staff members to be the absolute best that they can be. There are four things that Welch's has display he possessed to be a transformational leader: idealized influence (factor 1), inspirational motivation (factor 2), intellectual stimulation (factor 3), and individualized consideration (factor 4).

Idealized influence (factor 1) can also be termed as charisma. It explains how when leaders act as strong role models, followers identify with them and want to emulate them. Such leaders provide their followers with a vision and goals for the future. Jack Welch is known for having a personality that is out spoken and his has be credited by employees has being the one who spurred growth for general Electric. Welch has conducted idealization influence by decentralizing the entire organization and giving his lower level workers some say so in the decision making process in the company Inspirational motivation (factor 2) can be simply considered as inspiration. Transformational leaders communicate high expectations to followers inspiring them through motivation to become committed and part of the shared vision. Welch had high expectations for the entire business unit in General Electric. He challenged his employees to function to be number one or two in the organization. If any of these units fail to reach these objectives, they would be shut down or put up for sale by Welch. Moreover, this motivated the workforce to maintain Welch's Goal, because they all had a shared value.

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Intellectual stimulation (factor 3) prompts followers to become more innovative and creative.

It also asks them to challenge their existing beliefs and the status quo and try new approaches.

It enables followers to think on their own and come up with solutions for problems themselves. Jack Welch thrived on innovation and change. He was able to convince all his followers that the future was in developing competitive advantages and leveraging GEs positions in the overall market. He also introduced numerous management processes that were later emulated at many other big firms as well. He also used delegation as a tool for efficiency, a rare concept in the early 80's

Individualized consideration (factor 4) represents the leader who provides a supportive climate in which they listen carefully to the individual needs of followers.

Similarly, Jack Welch was the hero for the majority of GE employees as he valued creativity and innovation very highly. Workers were not laid off in seconds; it was a long and deliberate process despite the initial large numbers. All workers were compared to their peers and those with very low levels of effectiveness were asked to take soft landings for the greater good of the companies. These soft landings included getting the employee a new job elsewhere and high financial compensation. Welch was also able to provide his employees with a structured path that the employees had created themselves the mission. Welch's mission statement was not actually Welch's mission statement at all. In fact, almost all employees of the company formulated it over a period time. The instilled values in the vision were Welch's but allowing his followers to create their own mission ensured dedication and ownership. Welch was mostly found touring various sites and meeting with lower level workers and they were not the ones who took the major brunt either. Among the first to go were middle-level managers who used to pass the work-puck around them and often leave things incomplete. Welch was also a strong believer in employee development and emphasized more on hiring right in the first place rather than asking people to improve themselves repeatedly. He also enjoyed training new managers and teaching them a few tricks of the trade.

Jack Welch's Success at G. E.


Conclusion Jack welchs principles have changed the corporate model, and will be used for many years to comes, but would not have been possible without his unending dedication and passion of speaking to everyone in the organization. Welch is a firm believer in constantly communicating his values across as many venues as possible. Clarifying values, and more importantly the values of GE was important; the sharing of ideas gives employees a voice, and allows leaders to understand members of their organizations. In Jack Welch on Leadership, he states that, as a leader you must be simple, be consistent, and hammer your message home. As a leader it is paramount to be consistent as possible, the only way to change people minds. (Jack Welch on Leadership, pg.24)