Name: Shaarang Begani

SID - 1155155892

1. Discuss Jack Welch’s leadership based on Traits leadership theories. Please include
relevant Big-five factors and other personality traits/skills/values in your answers.
(15 marks)

Trait Leadership theory aims at exploring the characteristics of an individual that reflect the
emotional, cognitive or behavioral tendencies, for e.g., values, skills, emotions,
competencies and so on. The traits leadership characteristics is assumed to be in born and a
person cannot be trained for this approach. It comes to the person naturally. The followers
are naturally attracted to such leaders because traits of the leaders appeal to them. Having
said that no single trait can guarantee leadership success. Trait theory is based on the Great
Man Theory, but it is more systematic in its analysis of leaders. Like the Great Man Theory,
it evidently assumes that the leader’s personal traits are the key to leadership success.

Research suggests that the Big 5 personality factors (acronym: OCEAN) are strongly linked
to the personality traits. Let us discuss the Big 5 factors of Jack Welch as below:

a) Openness to Experience (O) – This factor explains the leader’s tendency to be

informed, curious and creative. Welch was a creative man who was open to new
ideas. Jack introduced the new stock option plan which helped improve performance,
developed his own leadership models (4E) and also started with the concept of Best
Practices while attending the training sessions. He was always willing to explore new
ideas.

b) Conscientiousness (C ) – This is the tendency to be thorough, organized, controlled,

dependable and decisive. Welch displayed exemplary dependability by making sure
that after every board meeting he sent out hand written minutes so that none of the
important points were missed out by anyone. Welch strived for perfection which is
evident from the fact that every speech written by his speech writer would undergo a
considerable amount of time perfecting it by Welch himself. He always made sure
that he was thorough about the work he was doing, be it presentations or any
research. Jack indeed exhibited high conscientiousness.

c) Extraversion (E) – This involves being highly social, assertive, and having positive
energy. Jack Welch is often described as a ball of energy who was extremely
outgoing. He would personally greet the incoming class of new employees. He was
also quite social and made sure to eliminate bureaucracy and bring in a culture of
feedback and improvements. The employees always had a great time at the social
events. He scores very high on extraversion.

d) Agreeableness (A) – Being agreeable refers to displaying characteristics of

compassion, sensitivity and nurturing. Jack Welch scores very low in agreeableness.
Infamously one of the toughest bosses in the world, this is no surprise. He often
interrupted and raised his voice at people he worked with. However, it must not be
mistaken for a tendency to lose control in a fit of rage. Instead, his low agreeableness
is a result of demanding for excellence and not settling for mediocrity. Despite his
toughness in business, he did care for the people he worked with.
 e) Neuroticism (N) – This personality trait tends to explore the emotionally stability of
the leader. Jack had the ability to handle criticism. He was infamously called ‘Neutron
Jack’ for massive firing of employees. Later in an interview he openly accepted the
criticism as something that came with the job and bothered very less about the
nickname.

Jack Welch always had the positive drive in him to excel at whatever he does. He was often
described as a ball of energy. Coming from a very humble background, his desire to lead
and succeed brought him to such a rewarding position in life. He was extremely confident
about his motives and aimed at achieving them by putting in hard work and dedication. He
seldom cared about what the world would think about his actions. He had the required job
relevant knowledge as he earned a PhD in chemical engineering from a reputable university.

His instrumental values may include: honest, capable, highly ambitious and independence.

2. Apply a Behavioural leadership theory to Jack Welch’s leadership behaviour. What

is his leadership style? Explain your answers and discuss whether this theory applies
or not. (8 marks)

The Ohio State Leadership Studies is Behavioral Leadership Theory. Ultimately these studies
narrowed the description of leader behavior into two dimensions:

a) Initiating Structure Behavior – This involves the extent to which the leader defines
his role and the role of his employees to achieve the targets. He establishes the lines
of communication and determines the way tasks will be performed.

b) Consideration Behavior – This involves the behavior of the leaders and the concern
for their employees’ well being, mutual respect for them, taking into view their
suggestions and ideas and appreciation for good work.

Considering the above structure, I believe that Jack Welch has high consideration and
possessed a high structure too.

When understanding Jack’s high structure behavior we can take into consideration the
following tasks that he fulfilled:
1) When Jack retired, he left the company with a market value of $410 billion making it
the world’s most valuable business in the world in comparison to GE being the 10th
largest corporation only in America when he joined.
2) The employees must consistently outperform so as to keep up with their jobs
3) Conducted trainings and management programs explaining how important it is to
succeed.
4) Transformed the communication pattern to make it a learning organization
5) Established the 4Es which demonstrated that leaders should energize their followers.
6) He had a strategy wherein he made sure that the businesses which were not
performing at number 1 or number 2 in its industry be sold off.
When evaluating Jack’s high consideration, we can look at the following points:
1) He had great talent management skills wherein he rewarded the top performers with
great stock options and bonuses in such a way that most managers pulled a 7-figure
annual compensation.
2) The people asked to leave were also given a very high severance pay.
3) He also started with ‘Work Out’ program that enabled suggestions for improvement
from the employees
4) Eliminated bureaucracy and quickly implemented new ideas and programs
5) Jack had the ability to inspire and terrify people too. He was famous for shouting at
people including the top-level executives for any negligence on their part but was also
very amicable and informal during company parties and social events.
6) Jack created an informal environment open to new ideas.

3. Analyze Jack Welch’s leadership using Path-goal leadership theory and see if this
theory applies or not. Please also identify the situations (i.e. followers and task
environment), if applicable in your answers. (10 marks)

The path-goal theory of leadership states that the leader helps subordinates to achieve their
goal by providing a clear path to follow. It assumes that leaders are flexible and that they
change their style as and when required. The theory proposes two contingency variables, such
as environment and follower characteristics, that moderate the leader behavior-outcome
relationship.

Jack Welch is achievement oriented. He set high goals and made sure that the top
performers were rewarded very generously in the form of bonuses and stock option plans.
He made sure that all his employees were well educated in the form of regular trainings
which many a times he attended too. The businesses of GE which were not at number 1 or 2
in its industry were slated to be sold off. Performers falling in the bottom 10% category
were fired instantly. He launched a Best Practices program that was aimed at excellence
and indeed bore good fruits.

Jack Welch can also be called a supportive leader as he took into consideration all the
feedback of the employees and even created a ‘Work Out’ program that enabled feedback
from the employees. He transformed the communication pattern to make GE a learning
organization. During parties he was very social and made sure that everyone had a great time.
The fired employees were also given huge severance pays so that they don’t face difficulties
because of no job. He personally greeted the incoming class and often was a part of trainings
if new topics were introduced.
4. Explain whether Transactional and Transformational leadership concepts can apply
to Welch’s leadership. (12 marks)

Jack Welch can be both a transactional and a transformational leader.

Transactional Leaders are leaders who motivate followers by setting goals and promising
rewards for desired performance. Jack Welch rewarded his employees very dearly in the
form of bonuses and stock options if they outperformed the others while he also made sure to
fire those who fell in the bottom 10%.

Transformational Leadership changes and transforms people. Welch engaged with others
and created a connection that increased motivation and morality in both the follower and
he. He was attentive to the needs and motives of followers and tried to help the followers
reach their fullest potential.

Idealized Influence (charisma) – Welch was a staunch believer of setting an example which
is why he personally attended lessons during the company’s training facility, thus facilitating
the culture of each one teach one. He had a vision and made sure to leave the company at
number one position in the world before retiring.

Inspirational Motivation - high expectations to followers, inspiring followers to

commitment to a shared vision. Based on the evidences, Jack Welch demonstrated moderate
inspirational motivation. He would always envision a desirable future and articulate it to his
followers. Hence, his followers would know what the top and current priority of the
organization was. In addition, he showed high level of confidence in him and his employees.
He would always encourage his followers personally be it in a meeting or through letters.
However, Jack Welch failed to elaborate on how the vision could be achieved.

Intellectual Stimulation - stimulating followers to be creative and innovative and challenge

their own beliefs and values as well those of the leader and the organization. Jack Welch
developed his followers by providing them the opportunity to be more innovative and
creative. He initiated “Work Out”, where employees were able to share their ideas without
fear of consequences. This helped employees developed on their skills of innovation and
creativity. Welch also challenged his employees through stretching their goals. By having
ambitious goals, employees would put in more effort and energy to try to reach their target.
Hence, once they were able to take up the task, they would have been able to do the
impossible. Jack Welch has demonstrated high level of intellectual stimulation.

Individualized Consideration - listening carefully to the needs of followers (called “internal

VIPs”), helping followers grow through personal challenges. He rewarded generously to
capable staff with lucrative remuneration and bonuses and equity.