General Electric's Corporate University


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One of my case studies I analyzed in Master of Human Resource Management, University of Canberra, Australia in 2007.

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General Electric's Corporate University

  1. 1. The Corporate University in General Electric Company _Aun Falestien Faletehan_ presented in University of Canberra, 2007
  2. 2.  GE runs 6 strong businesses GE Industrial GE Money GE Healthcare NBC Universal GE Infrastructure GE Commercial Finance GE Headquarter  Founded in 1892, GE is a multinational American technology and service in Fairfield, Connecticut, United States of America  America‟s most admired company in 2007 (Fortune Magazine)  Global Locations _ 160 Countries with more than 100 subsidiaries  Has a strong root with Thomas Alva Edison‟s heritage Products and services: Aviation, Electricity, Media and Entertainment, Finance, Energy Gas and wind Turbine, Oil, Appliances, Industrial Automation, Lighting, Medical Imaging Equipment, Medical Softwares, Motors, Plastics, Railway Locomotives, Water, Healthcare, Security , etc.
  3. 3. o Total worldwide employees : 310.000 (Januari 2007) o GE invests about $1 billion annually on training and development programs . o GE‟s corporate university; John Francis Welch Leadership Center at Crotonville. “We build great people, who then build great products and services.” former GE CEO, Welch (1999) Training and development o GE is ranked first among other famous companies in term of people management (Fortune Magazine)
  4. 4. The framework of Corporate University (CU) o The CU generally is a function of the human resource department (Lenderman and Sandelands, 2002) o The CU is for continuous learning, training and development (El-Tannir, 2002)
  5. 5. John F. Welch Leadership Center  Established in 1956, the 53-acre corporate learning campus is America's first Corporate University and a symbol of GE's commitment to learning.  Historically, the institute was renamed in 2001 to honor the former CEO; Jack Welch‟s pending retirement after 20 years of service. The previous name is just GE‟s Leadership Development Institute  Each year, thousands of GE people from entry-level employees to highest-performing executives come to Crotonville.
  6. 6.  GE‟s Crotonville is a change agent in the culture and to drive performance in GE  It is planned to accelerate learning for high performing employees, using a variety of methods from e-learning to action learning, from boot camps to leadership summits. John F. Welch Leadership Center  A core curriculum is managed at a corporate level Roles: • Transferring knowledge • Enhancing corporate culture • As a venue of global meeting • Career transition point
  7. 7. Transferring knowledge o Blass (2005) argued that the establishment of a CU can facilitate the establishment of a knowledge management system o It should be congruent with the new modes of „knowledge creation‟ and „knowledge sharing‟ as a learning process within an organisation (Paton, Peters, Storey and Taylor, 2005)  Regulars workshop to ensure the process of transferring knowledge among employees  “The pit”; a forum where leaders from the separate companies owned by GE gather to discuss major organisational initiative in a free-flow format. o Organisational development and individual development (Dealtry, 2002) John F. Welch Leadership Center  6-Sigma Quality Program  Core Leadership Development Program
  8. 8. Enhancing corporate culture o One advantage of the CU is to aid maintenance of a corporate culture even when spread over diverse local cultures. It can also help to shape an organisation‟s culture (Blass, 2005)  GE‟s Work-Out program • to create a culture of speed, simplicity and self- confidence consistent with continuous improvement • It emphasises on boundary-less culture, empowered teamwork, building trust, and collect GE‟s people regardless of position • It involves group meetings of 40 to 100 employees picked by management from all functions for meetings within two or three days John F. Welch Leadership Center
  9. 9. As a venue of global meeting  Crotonville is a glue that holds GE together (Welch, 1999)  It serves as a megaphone for the GE culture. As an important management forum, it provides a means for key executives to stay in touch with the whole of workforce, to sense the mood of employees, and to view the skills of participants in a real-time learning experience  It is place for global coordination and integration John F. Welch Leadership Center
  10. 10. Career transition points  GE‟s Crotonville is organised around the concept that there are “moments of opportunity” in any career o Establishing a CU may make the company more attractive for talented individuals who need to know that their career development is well- managed (Development and Learning in Organizations, 2005). John F. Welch Leadership Center
  11. 11. John F. Welch Leadership Center Career transition point
  12. 12. Analysis o Knowledge-sharing process may become knowledge limiting, by placing artificial boundaries around the knowledge in the organisation by creating, for example, a curriculum (Blass, 2005)  In-house training department for in- house participants  Centre of knowledge sharing and continuous learning  A change agent in culture and to drive performance  Guidelines of training and development for all GE‟s employees worldwide
  13. 13. Conclusions and Recommendations  The corporate university is an excellent place for training and development in multinational companies  GE may be one great example of MNCs which succeed to focus on their workforce development by setting GE‟s Crotonville as a venue for sharing and creating knowledge, shaping organisational culture, providing a place of global meeting and indicating career development  GE‟s Crotonville is the first pioneered corporate university and more recently such a model for continuous learning and training employees has been adopted by a large number of corporation worldwide  It is recommended for multinational companies to establish the corporate university  Curriculum is important, but employees creativity is more significant to bring organisational success
  14. 14. Questions and Advice