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Impact of Jack Welch‘s leadership on GE s performance

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Running head: ESSAY

This essay highlights the impact of Jack Welch s leadership on GE‘s organizational performance.
Leadership is central to organization with decision making and company functioning. Business
leader guide behavior by setting direction, and key process.

Business leader through active management supervise performance to eliminate error. Welch
made surprise visits and followed rigid performance structure to eliminate poor performing
employees. He applied rank and yank system to restructure organization. The power structure
and influence of leader drive decision making authority and impact on the employees. Welch
used downsizing and was regarded as most feared in the organization. GE developed business
revenue and rose to global portfolio by the business practice by Welch. The key role of leader is
to advance business by ensuring organization growth. Developing effective and power style
compel employees to follow the structure norms and practice by the leader. There is a demerit
with fear and uncertainty leading to false decisions by the employee

Power is the ability to influence other person for desired outcomes. The power structure is
determined through hard power and soft power on situational analysis. Welch used hard power
through to eliminate employees by annual system of performance review. He used expert power
and transformation skill to engage employees beyond structure to provide improvement within
organization. Welch used rewards structure as performance measure for employee bonus. The
main features for leadership development are centralized on creating self- awareness and self
confidence

Leadership development is required for human capital and it boosts employee engagement.
Successful companies create a program to cascade requirements to the team. Competitive
advantage depends on the organization creates an environment for innovation. Leadership
Development increase people s ability to unlock business potential. Leadership development will
enhance business capabilities. Welch in his team articulated his vision and transformed GE into
billionaire cologoremate
A leader's perspective on organization development shows recognition and support measuring
organizations' effective performance in view of strategic effectiveness will provide business
capabilities. Organizational effectiveness will be measured through effectiveness, efficiency,
innovation, growth, conflict cohesion, and harm minimization by intra organization and extra
organization These are the criteria that can evaluate effective from leadership perspective for the
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organization. Welch had used strict adherence and was hard-pressed on rank and yank style
which impacted employee turnover. The sustainable practice of the firm was aligned to legal
regulation and saw a breach of environmental resources directly impacting through the polluting
river.  Team members and cohesion was managed by removing red tape from the organization.
Leadership Development includes traits of self-confidence, intelligence, preservance. Leadership
development includes nurturing and influencing organization performance. Leadership
Development for business will improve communication, strengthen employee network to sign
business objectives in assessing the dynamic approach. Welch identified GE a problem and its
decion making approach and transformed operations in a series of acquisition and downsizing to
develop the best talent pool within the organization. Leadership influence is an impact on choice
and opinion. Welch encouraged team members to develop opinions and autonomy and believed
in positive influence and optimism for people network and management. Power as control and
directive can lead to servant leadership with dominance and loop sides decision making.
Charismatic power is to modify behavior through influence. Company sustainability is
determined through change management and leadership influence on the management Welch
influenced employees towards innovation, acknowledged their suggestions, and transformed
practice to emerging areas in six sigma. Power uses by virtue of hierarchy creates dominance
among employees. Positive impacts of power and influence developments in employee
motivation. To build a competitive force in the organization, he bought charismatic and maniac
power for GE's long term perspective. Welch is credited for increasing GE's market
capitalization as par of turnaround. The company moved to new business launching e-commerce
in 1999 showed GE's business strength. Strategic questions and market leadership strategy
aligned business objectives through an exit from an unprofitable markets and globalization for
growth.
Organizations effectiveness relates to business, professional and quality services. Welch prime
concern was shareholder wealth maximization and quality. He invariably focused on customer
service as competitive advantage. He believed effective leaders fight forces to keep members
upbeat. Trait theory states that people naturally gravitate towards leadership through personal
attributes. Efficiency will refers to organizations ability to manage resources. Leader’s behavior
in displaying transparency and trust measure organizational effectiveness.
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Reference

Kest. 2014. The Effect of Leadership and Innovativeness on Business Performance. Journal of social and
behavior science. pp 785-793