company simply transferred most of its facilities and related job opportunities to thelow wages paid, third-world countries. According to Ed Fire, the union’s president,assumed two-thirds of the 30,000 local lost jobs were the cause of outsourcing.
Using the vitality curve to evaluate employees’ performanceGE in Jack Welch era changed its ranking from five to three, and created thevitality curve system. This system categorized the top 20% performers as As, themiddle 70% as Bs and the bottom 10% as Cs. This evaluation system did not onlydiscourage teamwork by pitting people against each other, but also promoted back-stabbing behaviors. The system was also defective because of its inflexibility tocontribute unfair results when high and low performing units must classify managersat the same way. In fact, GE cruelly ranked the bottom 10% as inefficient workers andfired them whenever necessary. The vitality curve created a high-performancemanagement team, but it failed to create diversity at GE. Since Welch was themanagement icon at the period, many other corporations tried to copy the ideas for raising the performance, and the whole society became viciously competitive under the introduction of this unfair evaluation system.
Pollution in the Hudson rivers.According to the text, for 35 years, several GE manufacturing plants in NewYork released polychlorinated biphenyls (PCBs) into the Hudson River. Since PCBs istoxic to humans and animals, and is the cancer agent in test animals and humans; itwas outlawed in 1977. In 1983, the Environmental Protection Agency made the river a Superfund site because of the heavy released of PCBs by GE. After realizing the