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    GE

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    Divya Yadav
    This document provides an overview of how Jack Welch transformed General Electric during his tenure as CEO from 1981 to 2000. It discusses GE's history and challenges in the 1980s that Welch faced when he became CEO. Welch implemented several waves of initiatives to make GE more profitable, entrepreneurial, and globally focused. These included reorganizing divisions, increasing productivity, going global, and developing leadership. While controversial, Welch's transformations are credited with making GE very successful and one of the world's largest companies.

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    GE

    Uploaded by

    Divya Yadav
    101 views17 pages
    This document provides an overview of how Jack Welch transformed General Electric during his tenure as CEO from 1981 to 2000. It discusses GE's history and challenges in the 1980s that Welch faced when he became CEO. Welch implemented several waves of initiatives to make GE more profitable, entrepreneurial, and globally focused. These included reorganizing divisions, increasing productivity, going global, and developing leadership. While controversial, Welch's transformations are credited with making GE very successful and one of the world's largest companies.

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    GE organizational structure case

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    This document provides an overview of how Jack Welch transformed General Electric during his tenure as CEO from 1981 to 2000. It discusses GE's history and challenges in the 1980s that Welch faced when he became CEO. Welch implemented several waves of initiatives to make GE more profitable, entrepreneurial, and globally focused. These included reorganizing divisions, increasing productivity, going global, and developing leadership. While controversial, Welch's transformations are credited with making GE very successful and one of the world's largest companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    101 views17 pages

    GE

    Uploaded by

    Divya Yadav
    This document provides an overview of how Jack Welch transformed General Electric during his tenure as CEO from 1981 to 2000. It discusses GE's history and challenges in the 1980s that Welch faced when he became CEO. Welch implemented several waves of initiatives to make GE more profitable, entrepreneurial, and globally focused. These included reorganizing divisions, increasing productivity, going global, and developing leadership. While controversial, Welch's transformations are credited with making GE very successful and one of the world's largest companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    ORGANI Z AT I ON DE S I GN AND CHANGE

    NEUTRON JACK

    HOW JACK WELCH TRANSFORMED GE
    TANMAY AGARWAL 12P008
    ARCHIT SHUKLA 12P011
    DAMAN AGGARWAL 12P017
    PRERAK GOEL 12P035
    SAURABH MISHRA 12P044
    SUDIPTO GHOSH 12P054
    CONTENTS
    GENERAL ELECTRIC - HISTORY
    JACK WELCH HUMBLE ORIGINS TO CEO
    GES CHALLENGES 1980S
    JACK WELCHS VISION
    INITIATIVES
    CONTROVERSIES
    GENERAL ELECTRIC - HISTORY
    1889
    Pre 1889, Edison had multiple
    business interests

    In 1889, Drexel, Morgan & Co., a
    company founded by J.P. Morgan
    financed Edisons research and
    helped merging these interests under
    one corporation to form Edison
    General Electric Company

    In 1892 General Electric was formed
    by merger of Edison General Electric
    and Thomson-Houston Electric
    Company




    GENERAL ELECTRIC - HISTORY
    Till
    1950s
    In 1896, listed on Dow Jones
    Industrial Average

    In 1919 ,Radio Corporation of
    America (RCA) formed by
    General Electric and American
    Telephone & Telegraph

    GE Plastics started in 1930 to study
    advanced plastics

    WW2 started the initiation of the
    company into Air Engines




    GENERAL ELECTRIC - HISTORY
    1970s
    REG JONES ERA
    The corporation is divided into
    Strategic Business Units
    10 groups, 46 divisions, 190
    departments, and 43 strategic
    business units
    Healthy Relationship between GE
    and US Government
    Expansion into Overseas Markets

    Sales more than doubled ($10
    billion to $22 billion) and earnings
    grew even faster ($572 million to
    $1.4 billion)



    JACK WELCH: HUMBLE ORIGINS TO CEO
    EARLY
    YEARS
    Born in Salem, Massachusetts,1935
    BS in Chemical Engineering,1957
    MS and PhD in Chemical
    Engineering,1960
    JOINING
    GE
    Joins GE as a Chemical Engineer,1960
    Unhappy with the bureaucracy
    Wants to quit but is pursuaded to stay
    RISE TO
    CEO
    Extensive mentoring from Reuben Gutoff
    Rises exponentially from within the ranks
    Youngest Chairman and CEO, 1981


    EXTERNAL CHALLENGES:
    Deepest Recession since 1929
    Rising Interest Rates
    Increasing Unemployment

    INTERNAL CHALLENGES
    Creaking Organizational Structure
    Welchs abrasive working style
    Antipathy towards existing
    hierarchy and top management
    Presences across various
    segments market laggards in
    many



    GES CHALLENGES 1980

    1980
    Blue line is Percent Change From Preceding
    Period in Real Gross Domestic Product

    Red line is Average GDP growth 19472009

    JACK WELCHS VISION
    GE FOR THE FUTURE
    PROFITABLE
    LEADERSHIP
    ENTREPRENEURIAL

    A decade from now, I would like
    General Electric to be perceived
    as a Unique, High-Sprited,
    Entrepreneurial enterprise



    The most profitable, highly
    diversified company on the
    Earth , with world quality
    leadership in every
    one of its product lines

    -- Jack Welch

    INITIATIVES : FIRST WAVE 1981-85
    FIRST WAVE
    Create a new vision and strategy
    to drive reorganization, mass
    dismissals, divestments and
    acquisitions.

    Reorganized the businesses into
    Core Business, Hi-Tech Business,
    Service. Be First or Second, If
    NOT, you are OUT !

    Regrouped the 65 SBUs into 13
    businesses, which he managed
    directly.

    Carried his message to the field
    and met formally and informally
    with employees of all ranks

    INITIATIVES : SECOND WAVE 1985-96
    FIRST WAVE
    SECOND WAVE
    Revolutionize GE to gain the
    strengths of a big company with
    the leanness and agility of a
    small company


    WORK OUT

    INCREASE PRODUCTIVITY

    GO GLOBAL

    LEADERSHIP FOR THE FUTURE

    INITIATIVES : SECOND WAVE 1985-96
    WORK OUT
    Make suggestions to your boss
    Have to be able to get a response on the spot if possible
    PRODUCTIVITY
    Flattening of Org Pyramid from 8 to 4 levels
    Reward system based on bonuses
    GLOBAL
    Dedicated person - Paulo Fresco as Head international Operations
    Tie Ups with Toshiba, Robert Bosch. Acquired Sovac , the French
    Consumer credit Company
    LEADERS
    Leaders aligned to GEs Vision,360 degree feedback
    Focus changed to conquer markets rather than securing long term
    position within the company
    INITIATIVES : THIRD WAVE 1996-2000
    THIRD WAVE
    Develop an integrated,
    boundary-less, stretched, total
    quality company with A-players.

    SELECTING LEADERS

    BOUNDARY LESS BEHAIVIOUR

    SIX SIGMA

    4Es Principles

    E-Business

    INITIATIVES : THIRD WAVE 1996-2000

    INITIATIVES : THIRD WAVE 1996-2000
    BOUNDARY
    LESS
    BEHAIVIOUR
    No distinction between foreign markets to domestic markets
    Best practices to be leveraged from across regions
    SIX SIGMA
    Outlined in 1996 by Welch as a target to be achieved by 2000
    Extensive training and mentoring programme
    Tied 40% bonus to implementation of Six Sigma
    4 Es
    A players People with Vision, Leadership, Energy, Courage
    "Energy" , Ability to "Energize" others , "Edge" - the ability to make tough calls
    , "Execution"- the consistent ability to turn vision into results.
    E-Business
    GE was a late entrant to the Internet boom
    Each business unit had a destroyyourbusiness.com team to redefine itself
    Billions of Dollars spent by GE to achieve traction

    GES MOVING AHEAD UNDER JACK
    WELCH

    1990s
    CONTROVERSIES
    Welchs firing spree in the 1980s might have had a
    negative impact in terms of hyper competition,
    impact on family life, team work skills.

    Tying of bonuses to Six-Sigma meant that allegedly,
    some managers fudged numbers to claim success
    in implementation

    The policy and practice at GE has always been no
    employment contracts. But in 1996, five years
    before his retirement, Welch negotiated a contract
    that included an extremely generous, even lavish,
    package of life-long, post retirement benefits.




    THANK YOU !

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