How Jack Welch Transformed General Electric Corporation

Sample Paper

Words 870

Welch was very important for GE’s success and its transformation to a very dynamic organization; the measures he adopted were drastic but timely because if such steps had not been taken there would have been losses. The sweeping downsizing of extra employees and also business which were not profitable are one of the examples.  He also eliminated the bureaucracy and created a value sharing system which removed the boundaries and glass ceilings. The organizational structure was made flatter and he used the stretch policy of effectively using and mobilizing of resources. In addition, he emphasized considering the service as a base to build the business pyramid. He also made the people focus on software development.

Welch as a leader comes across as a transformational leader who changed the organization restructuring the organization and its philosophy. His core focus was to have quality through continuous improvement. He created “players” with “4E”’s mobilizing resources. He was a problem solver who through his dynamic leadership turned around the organization.

For the new CEO, it may not be an easy task to measure up to the leadership of Jack Welch, however; his task has been made significantly easier by his predecessor as he has taken all the steps necessary, which have turned around GE and made it a success story. In addition, he has created an example and framework which has not only implemented successfully but also created an opportunity for the people associated with the organization and the organization itself which has become even bigger than before but also more profitable.

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