There were also employee surveys conducted to monitor evolving cultural values. Jack Welch brought in a balance between operational controls and strategy implementation. So, GE can consider splitting this band into three providing a further benchmark for employees for self-assessment of contribution to the firm.
This is non-negotiable in terms of a complete overhaul. Table 2 connects the initiatives taken over the years by successive GE leaders to these key drivers of strategic human performance. The executive bands too can be tailored to be specific to the region in which a particular division of GE is operating.
GE can slightly modify its PLs for these countries so as to keep its workforce motivated. Breakdowns by business and region allowed him to identify potential trouble spots, and year-on-year comparisons helped him plot progress.
How transferable across cultures, across industries, and across companies?
GE began to reconsider the allocation of recruiting resources. The diffusion of local talent would allow it to respond to the unique challenges of each geography better. Also, GE recognized the need to be a strategy focused organization early on.
There is a high degree of involvement of the top management in its people policies. GE, with its phenomenal growth had become highly decentralized and there was an overt focus on operational efficiency.
He leveraged rewards by giving them only to top performers. Reg Jones, on taking over as CEO insought to address this situation with a more formal and structured approach to strategic planning.
To support a focus on people development, Welch believed his business managers needed strong HR professionals on their management teams. The annual calendar of reviews also provided many opportunities to evaluate the performance and potential of young managers in these highvisibility forums.
One particular problem is as mentioned in the case, the psychological reward factor in hierarchical societies. Conversely, those at the middle of this may not see themselves differentiated from those at the bottom.
Performances were evaluated based on both performance objectives and GE values. The people policy of GE and its HR systems show a high degree of alignment to its strategy implementation. There is a top-down approach to human resource policy. General Electric GE has traditionally had a hands-on approach to talent management.
This lead to a systematic approach to HR process set-ups. With an ever-increasing international presence, GE should review its MBA recruitment processes and accommodate more international recruits.
GE always promoted its top leaders from its own ranks.
He moved most of the EMS consultants from headquarters out into the field, to help business leaders develop their talent. GE has been very successful in achieving a high level of correlation or fit between HR and overall strategy of the firm in two key areas as illustrated in Table 1.
This lead Cordiner to embark on a decentralization strategy. Thus any sweeping changes to these established procedures for management development at GE would be counter-productive. He drove businesses to be 1 or 2 in their industries.
Though the operational details of the visions of each of its CEOs since Edison have differed, their philosophies have always concurred on the cornerstones of a good HR strategy, namely an emphasis on nurturing talent, a good performance monitoring and evaluation system and commensurate performance oriented rewards and returns schemes.
Believing that decades of diversification and delegation had fragmented businesses and led to a preoccupation with operational efficiency, Jones introduced a more formal and structured approach to strategic planning. The Work Out initiative was a mechanism by which those on the front line were given a voice.
Also, the belief in the measurement of performance, enforcement of standards and rewards correlated to performance lead to alignment of individual employee and organizational goals. The philosophy of GE was also to look beyond traditional operational measures for performance measurement to more strategic ones.9 3.
As Jeff Immelt, is it time to tune up or even overhaul GE’s management development policies and practices? Specifically, how would you deal with proposals to change the vitality curve, MBA and international recruitment, and the executive bands?
4. Opinions expressed by Entrepreneur On Sept. 10,Jeff Immelt took over.
The leading candidates were quickly identified through GE's "vitality curve" that identified who was in the top.
The vitality curve has been the heart and soul of GE’s performance management system. This is non-negotiable in terms of a complete overhaul. But, it does have the problem of a huge number of people in the ‘highly valued’ papercamp. com/print/ / 3/4 3/25/ Ge Making Of Ceo category where motivation can be sapped especially for.
Essays - largest database of quality sample essays and research papers on Jeff Immelt Vitality Curve. Why GE had to kill its annual performance reviews after more than three decades Formally known as the “vitality curve” but frequently called “rank and yank,” the system hinged on the.
As Jeff Immelt, is it time to tune up or even overhaul GE’s management development policies and practices? Specifically, how would you deal with proposals to change the vitality curve, MBA and international recruitment, and the executive bands?Download