Management Skilss That Jack Welch Uses..
Essay Preview: Management Skilss That Jack Welch Uses..
Report this essay
Jack Welch is one person who has been an exception who has not lost his
effectiveness in 10 years but rather staying on the job and driving GE to loftier
levels of accomplishment for 20 years. The best part is he has made himself a
title ” An American Icon” This report states his management skills , roles
and functions that he has used to bring GE to be one of the most successful
company.
When Welch became CEO in 1981, General Electric, GE was voted the best-
managed company. Nevertheless, Welch saw that the company, indeed the
entire nation, could and should be better, and must be better to maintain its
momentum in the last two decades of century and to propel itself into the twenty
first. GE has always been a strategically led portfolio company with a mix of
business in different phrases of their life cycles, which enables GE to deliver
consistent earnings. (Leading) Welch set out on a mission to see GE become
the worlds most valuable company (Planning), and he achieved that goal. In 1997, GE became the first company in the world to exceed $200 billion in stock market value. (Controlling) With a share price that rose an average of 23.5 percent per year, by 2000 GEs market value exceeded $500 billion. Welch worked to eradicate inefficiency by trimming inventories and dismantling the bureaucracy that had almost led him to leave GE in the past. He shut down factories, reduced payrolls, cut lackluster old-line units. Welch instructs his managers to hate bureaucracy and all the nonsense thats comes with it he is shifting from top-down to outside-in orientation. This is basically saying let external demands and not internal management guide your productive behavior. This also means give priority to GEs customers. (Organizing) To have success, needs monitoring, consistent monitoring. Welch once preached that “At GE, were driving to be lean and agile, to move faster, to pare away bureaucracy. Were subjecting every activity, every function, to the most rigorous review, distinguishing between those things which we absolutely need to do and know versus those which would be merely nice to know.” (Monitoring) Now knowing that monitoring is important, the next step is to review and implement of improvements with good time management. Causing the previous GE leadership to be adapted to his own time and conditions.(Effectiveness Skills) To have a full effectiveness, Welch must have the full support form his colleagues and peers. Netarelli who work for Welch for 26 years said that among the things he gleaned from Welch was to be decisive. He also praises Welch for having the ability to make quick, almost instantaneous decision and to be right the great majority of the time. The people closest to him said that he listens to others and he is consistent and fair. For those who did well he praises and reward for those who did badly, he respects them. (Communication skills)
Management experts say Welchs reputation as a leader can be attributed to
four key qualities, which are his intuitive portfolio strategist, skillfulness,
willingness to change the rules if necessary, bring highly competitive, great
communicator and motivator. He also became a teacher within GE, stepping into
classroom. Led more then 250 class sessions in his two decades as a chairman
, engaging more then 15000 GE managers and executives in a dynamic
dialogue about the company, its functions and its future.
(Leader, interpersonal skills) Being a leader, he is direct, plainspoken and
decisive also he conduct meetings aggressively .In December 1995 , Microsoft
and GE(NBC) joined forces to operate a news network called MSNBC.
(Entrepreneur) The cable television network, which debuted in July 1996,
shared programming with the Microsoft network for computers. The idea was
that the viewing public could glean news from either the television or the
computer, or from both at the same time. In 1999 it was announced that GE
would pursue an all-out online initiative. This was how Welch explained, getting
into Asia or out or onto