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Unformatted text preview: MGT429 General Electric Jack Welch was highly regarded as one of the most successful CEO’s of a major corporation. His unique management style was a driving force in the growth and success of General Electric from the early 1980s to the early 2000s. Under Welch’s leadership, GE became a corporation that emphasized low-costs and efficiency in production, high degrees of communication throughout the entire organization, and a high level of organizational learning. His leadership style, which most viewed as extremely demanding, fit perfectly with the implementation of these ideals. Welch flattened GE’s structure to create better lines of communication between each level of the company and often rotated managers from one division to another so they could learn general management techniques that would work across all divisions. As well, he encouraged managers and employees to find creative and innovative new ways to perform tasks in their everyday work activities instead of investing heavily in research and development. Welch was labeled as an extremely tough boss to work for, often placing a tremendous amount of pressure on employees to perform at top levels. This pressure allowed GE’s employees to stay innovative and creative to promote growth within the company and also to reduce inefficiencies, which fit with Welch’s Six Sigma approach. While Welch’s management style worked extremely well for GE, his predecessor felt the need for a change. Jeffrey Immelt took over as CEO for General Electric after Jack Welch retired in 2001. Immelt’s management style differed greatly from that of Welch’s. First, Immelt felt the need for GE to be less production-focused, placing a greater emphasis on customer satisfaction. He measured performance on the basis of value-added to customers, which was much more tangible than the measures evaluated under Welch. Second, Immelt turned the company’s main function than the measures evaluated under Welch....
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- Winter '10
- Management, Corporation, Jack Welch, Jeffrey R. Immelt, Management Style