Profile and Message
Practice and Assessment
Summary and Conclusion
1957: B.S. in chemical engineering, University of
1960: M.S. & Ph.D. in chemical engineering, University of lllinois
1965: helps develop Noryl
1968: appointed general manager of G.E plastic business 1972: Youngest Vice President of GE
1980: GE’s revenue was $26.8 billion
1981: becomes GE’s youngest and 8th Chairman and
2000: GE’s revenue was $130 billion
2001: Retired after 20 years as CEO
• Inborn: passion, ambition and energy
Acquires: Confident and positive attitude, courage
Right Value: building a competitive work place
Right way: building a perfect employee appraisal system Action:
Right Value: building a efficient work place
Right way: creating a learning organization culture Attitude:
Right value: eliminate bureaucracy and boundaries Orientation :
Right way: Worked to eradicate perceived inefficiency dismantling the bureaucracy.
Erasing layers of management
1. The principle of “To be No. 1 or 2 in the market-or get out” sends a clear and strong message which indicates
High performance and profit
2.Welch sets clear rules and principles on leadership responsibility. Employees therefore, are clear on what virtues the company is looking for. Again, it gives a guideline for employees what virtues they should develop.
Principles and rules associated with appraisal and punishments: employees know what they will face with if failed, if they do want to stay with GE, they will contribute and work toward the goal of the company. According to Northouse, employees will be inspired if they think the pay / reward is reasonable.
Evidence: GE’s sales revenue was 25 billion
USD when Welch appointed as the CEO (1981) but it grew to 111 billion USD in 1999.
Welch borrows ideas from employees. The behaviour encourages employees to think and share their idea on the business. It creates a feeling of loyalty and belonging which integrates people.
3. The appraisal system: reward high performance and eliminate incompetent employees. It tells employees the