GE S Two Decade Transformation
1. From what we have learned from the various leadership models and frameworks:
a. How would you describe Jack Welch’s leadership style?
Jack Welch became CEO of General Electric in April 1981. At 45 years old, he inherited a company that was severely decentralized and was organized with layers and layers of upper management. Immediately, he changed the old management style in order to correspond to the new changing environment and social needs. Furthermore, he created an environment that could work together and communicate effectively to grow and become a world class company.
As soon as Welch took his new position, the new CEO portrayed signs of a transformational leader. A transformational leaders inspire positive changes in those who follow. They empower followers to do what is best for the organization. They are strong role models with high values. This type of leader listens to all viewpoints to develop a spirit of cooperation. They create a vision, using people in the organization. Transformational leaders are generally energetic, enthusiastic, and passionate. This type of leader is concerned with being a part of the process and is also interested in helping every member of the group succeed (Cherry, 2013). Jack Welch is a great example of a transformational leader because he created a change driven environment. He expected the best from each one of his employees. This is clearly evident because of the changes he made once he became CEO.
In 1981, the economy was in the middle of a recession. Jack Welch realized the importance of improving productivity and challenged the organization to be “better than the best” by setting in motion a series of changes that would take place over the next several years.
Welch used his transformational leadership skills and started to transform GE by creating competitive strategies that would help rebuild GE’s competitive power. “Welch set the standard for each business to become the #1 or #2 competitor in the industry –
a. How would you describe Jack Welch’s leadership style?
Jack Welch became CEO of General Electric in April 1981. At 45 years old, he inherited a company that was severely decentralized and was organized with layers and layers of upper management. Immediately, he changed the old management style in order to correspond to the new changing environment and social needs. Furthermore, he created an environment that could work together and communicate effectively to grow and become a world class company.
As soon as Welch took his new position, the new CEO portrayed signs of a transformational leader. A transformational leaders inspire positive changes in those who follow. They empower followers to do what is best for the organization. They are strong role models with high values. This type of leader listens to all viewpoints to develop a spirit of cooperation. They create a vision, using people in the organization. Transformational leaders are generally energetic, enthusiastic, and passionate. This type of leader is concerned with being a part of the process and is also interested in helping every member of the group succeed (Cherry, 2013). Jack Welch is a great example of a transformational leader because he created a change driven environment. He expected the best from each one of his employees. This is clearly evident because of the changes he made once he became CEO.
In 1981, the economy was in the middle of a recession. Jack Welch realized the importance of improving productivity and challenged the organization to be “better than the best” by setting in motion a series of changes that would take place over the next several years.
Welch used his transformational leadership skills and started to transform GE by creating competitive strategies that would help rebuild GE’s competitive power. “Welch set the standard for each business to become the #1 or #2 competitor in the industry –
References: Bartlett, C. 2005. GE’s Two Decade Transformation: Jack Welch’s Leadership. Harvard Business School Bennot, W Byrne, J, “How Jack Welch Runs GE,” Businessweek, June, 7, 1998 Blanchard, K., et Cherry, K. (2013). Transformational Leaders: How These Leaders Inspire and Motivate. Retrieved November 26, 2013, from About.com: http://psychology.about.com/od/leadership/a/transformational.htm Daft, R Denning, Steve, “Jack Welch, GE, and the Corporate Practice of Public Hangings,” Fortune, April, 26, 2012. Gallo, Carmine, “Motivate Your Employees like Jack Welch,” Businessweek, May 23, 2008 Welch, J Horizontal Communication. (n.d.). Retrieved December 10, 2013, from https://www.boundless.com/management/communication/management-and-communication/horizontal-communication/ John Hall, S. J. (2013). Transformational Leadership: The Transformation of Managers and Associates. Retrieved November 30, 2013, from University of Florida: http://edis.ifas.ufl.edu/hr020 Kerr, S Latham, G. P. 2004. The motivational benefits of goal-setting, Academy of Management Executive, 18(4). Path–goal theory Vera, D. (2004). Strategic Leadership and Organizational Learning,” Academy of Management Review, vol 29, No.2, 222-240.