General Electric's Case Study Of General Electric

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A Brief
Founded in 1878 by Thomas Edison, General Electric has been one of the most fascinating case studies of strategic decision making. The case at hand, gives us an idea about the leadership GE has had historically and lays special emphasis on the tenure of John Francis (“Jack”) Welch. It describes the implementation and the impact of various strategies of restructuring, Diversification, divestiture, etc. on the short term and long term performance of the company and the Market in general. It also talks about Leadership and how leadership is influential and instrumental in shaping the culture of the organization.
We have also studied the changes in the organization structure of the Mahindra Group. As soon as Anand Mahindra joined the Mahindra
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Chairman
2. Vice Chairmen
3. Corporate Staff
4. Businesses
Hence Welch made sure he was directly in touch with the Business.
Mahindra:
After joining Mahindra, Anand Mahindra created a federal SBU structure and gave autonomy to each SBU to form strategies independently. With little or no impact on the performance, a restructuring was done in 2002, in which a special emphasis was laid on the Utility Vehicles and the Tractors.
Keeping in mind the dynamics of the utility vehicle and tractor industry, emphasis was then on laying a long-term strategy and fixing goals. By changing internal benchmarks to global standards and benchmarks, each and every role was carefully mapped. Roles were then filled with internal and external sources under the guidance of consultants from leading companies like Mckinsey, Accenture, and Korn Ferry. The restructuring also led to the pruning of the staff. In 2001, there were 3970 officers in 13 grades and levels which was brought down to 3400 officers in five responsibilities namely :
• Strategic
• Executive
• Department/unit head
• Managerial and operational
This also brought Anand closer to the business.
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To weed out Type 4 leaders, Welch started a 360 degrees feedback process. This would take care of the ‘smile up, kich down managers’ Welch believed.

Mahindra :
After the restructuring process, many gaps in the senior leadership emerged as the existing senior management was unable to fit into the newly created roles. These gaps were filled in by hiring Senior Management resources from various companies like Xerox, Hindustan Lever, Marico, Enron, etc. This enabled the company to induct a talent pool with a rich background suitable to the changing dynamics of the company.
For the Long term, in order to bring in young talent keeping in mind the long term objectives, the group has started a formal Management Trainee Scheme through campus recruitments. The move threw up an interesting observation, that of acceptability of young blood working initially at operational level jobs with older experienced people. To avoid the feeling of animosity and in order to build camaraderie, the group has put in place a Mentoring system, where each management trainee has a senior executive who plays the role of

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