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General electric:The GE culture


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a culture shift from the Welch era to the Immelt era

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General electric:The GE culture

  1. Group 4 Bijoyini Ganguly [B13143] Roopan Roy [B13168] Saiyam Sanghvi [B13169] Santanu Mallick [B13170] Suhas Kini [B13175] GENERAL ELECTRIC
  2. GE Timeline
  3. GE: MultiDivisional Structure 3
  4. Advantages  Increased control  Profitable growth  Internal labor market GE: MultiDivisional Structure Disadvantages  Managing corporate- divisional relationship  Coordination Problems between Divisions  Transfer Pricing  Bureaucratic Costs  Communication Problems
  5. GE: Tall or Flat ?
  6. GE Values • Six Sigma • Design for Six Sigma (DFSS) • Lean manufacturing • Work-Out (WO) • Change Acceleration Process (CAP) • Quality Management System (QMS) The GE Advantage
  7. Creating Value
  8. GE Customers Distributors UnionsGovernment Suppliers Competitors Demographic and Cultural Forces International Forces Political Forces Environmental Forces Economic Forces Technological Forces GE: Interactions with Environment
  9. GE: Workout
  10. GE: Strategy for Growth
  11. GE: Focus Pay: By taking the focus off profits, instead refocusing on new Ideas to drive innovation, improvement and growth Risk: investing in the future, by implanting Ecomagination projects for sustained growth by innovation Experts: bring in project specific knowledge from experts in the domain Portfolio: effective utilization of established capacity and mix for gaining greater leverage and closer fit.
  13. GE: Beyond Welch
  14. GE Culture GE's culture is very, very American. GE is more American than most US-based companies. Some key aspects of this are:  individual effort is much more important than group or collective efforts  rebels are heroes (Jack Welch was an effective rebel against most of GE's official management practices throughout his career before he became CEO)  going around the hierarchy is encouraged (this is the hidden purpose of work- out, not team-based participation and improvement)  competition is king, internally and externally  loyalty is determined by performance  poor performers loose face publicly  communications are direct and confrontational  leadership comes from individuals, not groups or teams GE is highly admired and features in all lists of the world's most admired corporations.
  15.  There’s a subtle difference in the way Immelt is steering GE’s culture from the way Welch did. While they are both passionate about “spreading ideas quickly,” Immelt is pushing decisions without second thought about expansion.  When Immelt took over, two thirds of GE’s revenue was in the U.S. Now, the majority of it is outside the U.S. He’s moving his senior leaders out into the field, like Vice Chairman John Rice in Hong Kong.  Immelt wants a culture of local decision making fueled by senior leaders in place locally with the knowledge and skills to make the right decisions. Relevance of Culture in Long Term Strategy
  16. GE: Shift in Culture
  17. GE: Shift in values • Number one, number two. • Correct, close down or sell out. • Speed, simplicity and self-confidence. • Being unlimited • Finding solutions • Exaggerating • Quality • Service With Welch Post Welch
  18. GE:Growth Fast paced innovation and patent protection Controlled Explosive growth: Welch Decentalized to 12 divisions Business Integration
  19. The GE way
  20. Public Hangings at GE- The GE way? “Public hangings are teaching moments. Every company has to do it. A teaching moment is worth a thousand CEO speeches. CEOs can talk and blab each day about culture, but the employees all know who the jerks are. They could name the jerks for you. It’s just cultural. People just don’t want to do it.”- Jack Welch
  21. GE: Managing Conflict