Your SlideShare is downloading. ×
GE Succession Planning - A Case Study
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

GE Succession Planning - A Case Study


Published on

GE Succession Planning - A Case Study, talks about the succession planning methodology to choose Jack Welch.

GE Succession Planning - A Case Study, talks about the succession planning methodology to choose Jack Welch.

Published in: Business
1 Comment
  • its wonderful workout.
    good job done.....................
    ghulam mustafa
    MS Managenent
    Nationanal College of Business Administration and Economics, Lahore Pakistan
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. GENERAL ELECTRIC, NEW YORK Case Study : Succession Planning at GE M.S.Ramaiah Management Institute, Bangalore | MBA (PRIST-A) | HRM Case Study
  • 2. Presented By : Team Members Christ Biswasi Minz Debarati Sen Gupta Denny Singh Kumar Shubham Krishna Kumar Kartikey Yamdagni Kamal Nayan Maneet Kumar Manishankar Sonkushre Man Mohan Anand M.S.Ramaiah Management Institute, Bangalore | MBA PRIST(A) 2009-11
  • 3. Succession Planning  Succession planning is a process for identifying and Understand Development developing internal employees Need with the potential to fill critical organizational positions Identify Ready For  It reduces risk Movement Possible Successor  Create a proven leadership model  Smooth business continuity  Improve staff morale  It encourages “Hiring From Promote & Develop & Within” Train Compensate Successor
  • 4. Introduction : General Electric  Established in 1892, Thomas Alva Edison merged his EELC with Thomson-Houston Electric Company to form General Electric.  Business Structure of GE at a glance: Commercial Health Energy Transportation Infrastructure Finance Care  Forbes ranked GE as the world's largest company. The company has 323,000 employees around the world.  In Fortune Magazine's 2005 "Global Most Admired Companies" list, GE ranked first overall.  By June,2010 The Ecomagination Revenue of GE will reach upto $25 Billion
  • 5. Case Study : Succession Chart at GE Thomas Alva Edition (1892) Charles Coffin (1894) Gerard Swope (1922) Charles Wilson (1940) Ralph Cordiner (1950) Fred Borch (1964) Reginald Jones (1972) Jack Welch (1981) Jeff R Immelt (2001)
  • 6. Case Study : Summary  Succession Planning Process at GE – The leading diversified business in the world  Growth of GE from inception and GE’s commitment to succession planning  It explains succession planning and leadership development at GE  It examine CEO’s succession planning under Jack Welch (GE’s CEO 1981-2001)  It shows differences between management style and ideologies of Immelt and Welch  Finally, the future of GE under the leadership of Immelt
  • 7. Case Study : Discussion Session Q:1(a) Critically examine the importance of leadership development and succession planning at GE and explain how it is undertaken at the company? A:1(a)  Adopted Succession Planning from Mid-1900.  Movement of candidates across all its business  Focus on “Talent Differentiation”  Major Tools Used at GE for Differentiating Talent  Vitality Curves  9 Blocks  Accomplishment Analysis
  • 8. Case Study : Discussion Session Q:1(b) Why do you think that involvement of the top leadership in the succession planning process is important? A:1(b) Advantages of involving the top management in the succession Planning:  Better Assessment Ability  Employees will be trained under experts  Personal attention to key candidates  Build a health relationship between top management and employees
  • 9. Case Study : Discussion Session Q:2(a) Study and comment on the CEO succession planning process Welch followed. A:2(a)  In 1994, Welch created a list of essential qualities, skills and characteristics an “Ideal CEO” should posses.  Submitted a list of 23 candidates to GE Board  Organized informal events to look at potential CEO candidates  By 1998, The original list narrowed down to 8 serious candidates.  Developed “Eight Basic Objective for Selecting CEO Successor”.
  • 10. Case Study : Discussion Session Q:2(a) Do you think Welch was right in deciding against retaining final CEO candidate, who failed to make it to the job? Justify your answer. A:2(a) Yes, Welch was right.  Each candidate are equally enough to run GE  They could easily become CEOs of any leading company  Retaining candidates may results into personal as well as business conflicts  Work efficiency may reduce after retaining
  • 11. Case Study : Discussion Session Q:3(a) Comment on the performance of GE under Immelt’s leadership. A:3(a) Immelt’s Performance at GE  Due to 9/11, GE failed to report double digit earning growth in the fiscal 2002  Measures opted by Immelt:  Cut costs through layoffs  Restructured GE business  Introduced a Customer Service program – ACFC  He focused on “Customer Centric” strategy.  Invested $100 million in R&D to form “Global Research Center”
  • 12. Case Study : Discussion Session Q:3(b) Compare Welch’s and Immelt’s leadership styles and ideologies. • Money making machine • Customer centric company • Focus on Acquisition • Focus on Innovation • Focus more on Job Rotation • Retain managers to make them • Focus on Short term demand specialist • Focus on Long term strategies • Charismatic • Natural Leader Jack Welch Jeff.R.Immelt
  • 13. Case Study : Discussion Session Q:3(c) Do you think Immelt is right in investing more in R&D and innovation, rather than on acquisition? Give reason to support your answer. A:3(c)  Yes, He was right because in case of economic slowdown the company need to make their own growth.  Growth opportunity through innovation helps in economy slowdown, rather than acquisitions  He spent $100 Millions to “Revamp House of Magic” (Global Research Lab)  New products/technology always attract customers more than existing one thus generates more revenue
  • 14. Case Study : Discussion Session Q:4(a) Examine the need for Succession Planning in Companies and identify various problems a company might have to face due to lack of succession planning system. A:4(a) Need for succession planning  To have a ready pool of deserving candidates to fill the leadership positions when need arises.  Opportunities for internal employees increases  Build a healthy relationship between Top Management & employees Problems due to lack of succession planning  Affect business performance and reputation  Moral of the company’s staff is affected  Severance pay, In case external employee is hired
  • 15. Case Study : Discussion Session Q:4(b) Many companies appoint CEOs from outside, rather than from within the company. Do you support this practice? Justify your answer, citing reasons. A:4(b) No, Reasons are explained below:  Non-Familiarity with OC  They don’t understand norms and rules of the company  Increases cost  Demotivate employees
  • 16. Case Study : Conclusion  Preparing future leader  Building-up the performer  Creating healthy working environment  Overall cost saving.
  • 17. Case Study : Bibliography  Websites:     Books  Human Resource Management – V.S.P Rao
  • 18. Case Study : Succession Planning At GE Thank You