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Category: Societal Issues

Date Submitted: 11/26/2012 09:10 PM

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• In 1990s GE focused in integration model where all individual businesses were integrated and best practises were shared across diversified businesses which reduced their costs and increased profits.

• In mid 1990’s the focus was on quality therefore, he initiated added value services, six sigma quality initiative and keeping employees who have four E’s- energy, ability to energise others, edge and execution.

• Mr. Welch introduced a policy “better than the best’’ at the time when U.S economy was into recession and the country was facing highest unemployment rates. Through this policy he set the standard for each business will become at 1 or 2 position in its industry else disengage from the business which shows his autocratic style of leadership.

• He focused in making company “lean and agile” by removing sector level from its organisation structure, which resulted in de-staffing of 1, 23,450 employees. This resulted in generating profits for the company from $1.6 billion to $2.4 billion.

• The software initiatives taken by Mr. Welch through linking the cultural changes and structural changes prior 1990 as hardware initiatives.

• He focussed in openness and believed in simplicity and self-confidence. He believed in facing reality as reacted fast with the pace. Therefore, we worked out best practices when he initiated the process. Workout was the process where 40 to 100 employees were invited to share views about their business with their bosses about different new proposals.

• His agenda was to become #1 and #2 globally in the businesses for which Mr. Welch welcomed globalisation process. While investing outside the U.S he followed a strategy of acquisitions of companies in economic downturns of their economy. He motivated his managers to view these situations as opportunity instead of problem.