Jack Welch Case Study Answers

1) If you were the CEO of a company would you use a system similar to the one used by Mr. Welch? Why or why not?

My answer to this question is “Yes” for most of the human resource practices followed and “No” to a few being followed. His “Hire and Fire” policy may be hard to digest but, yes, it is very much adoptable in this present business scenario because the current youngsters are too sharp, focused and are goal setters.

Sentiments and business cannot go hand and hand. Business will only prosper when employees working in the company remove their sentiments and work towards the betterment of the company rather than protecting their co-workers who do not produce any results because growth of the company only results in the growth of the

Some of the practices are welcome and is good for the organization and helps in its growth, such as Employees annual appraisal, which is called as “Session “ in Mr. Jack Welch’s or GE’s term.

This is a fantastic human resource process. It contains self-appraisal, direct manager’s remarks and recommendation on that and finally, one on one manager’s final opinion and recommendation before sending to the HR. Through this process, Jack Welch has fixed a process for identifying and recognizing potential employees.

Categorizing employees into three different sections as A †Top 20, B- Vital 70 and C- Bottom 10 provides the management to identify the potential and capable employees who have shown and proved their quality of work, efficiency, dedication and of course integrity in all fronts.

This helps in rewarding employees who show actual interest and help in the growth of the company and achieve the interests of the company and help in knowing the non performers to take corrective

Why or why not?

For the interest of the organization and the investor’s money, I would definitely weed out incompetent employees because keeping incompetent employees in the organization will only result in loss for the company in terms of extra resources being used with no effective development.

But as a CEO of a reputed company, I will have certain responsibilities towards the employees and the society in general. Sudden termination of an employee or asking workers to leave the organization and quit the job will only scare the employees as they will have no feeling of job security and therefore the feeling of fear of failure and hence the fear of losing the job will prevent the talented employees from coming forward and give new ideas and suggestions.

Instead of a sudden job termination, I prefer to adopt a little smoother procedure of weeding out the incompetent employees by understanding their problems and issues with their work, understanding their strengths and weaknesses and then accordingly offer them extra training and extended time and further communicate to them about the consequences of not being a competent employee. I would also communicate to them about their performance and management’s expectation on a regular