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    GE implemented a decentralization plan in the 1930s to separate its businesses. It established the first corporate university and tracked high-potential employees. In the 1950s, GE focused on its top 2% of employees and introduced more formal strategic planning. In the 1970s, GE added "the sector" to aggregate common business groups. Under CEO Welch in the 1990s, GE used the 9-block tool to evaluate employees and conducted annual 360 surveys.

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    Fundamentals of Human Resource Management - General Electricals case

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    HRMA_Group4_GE_CaseStudy

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    GE implemented a decentralization plan in the 1930s to separate its businesses. It established the first corporate university and tracked high-potential employees. In the 1950s, GE focused on its top 2% of employees and introduced more formal strategic planning. In the 1970s, GE added "the sector" to aggregate common business groups. Under CEO Welch in the 1990s, GE used the 9-block tool to evaluate employees and conducted annual 360 surveys.

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    © All Rights Reserved
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    9 views8 pages

    HRMA Group4 GE CaseStudy

    Uploaded by

    spam.haimi
    GE implemented a decentralization plan in the 1930s to separate its businesses. It established the first corporate university and tracked high-potential employees. In the 1950s, GE focused on its top 2% of employees and introduced more formal strategic planning. In the 1970s, GE added "the sector" to aggregate common business groups. Under CEO Welch in the 1990s, GE used the 9-block tool to evaluate employees and conducted annual 360 surveys.

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    of 8

    GE TALENT MACHINE:

    THE MARKETING OF A CEO

    We Bring Good Things to Life.


    GE Over the
    CEO Implemented
    decentralization plan
    Cordiner to carve out
    businesses
    1930s Established first

    Years
    corporate university

    Participated in
    CEO Session C reviews
    (EMS), tracked High
    Borsch Potential employees
    1950s Focussed on top 2%
    employees
    World's Most Respected Company
    Sophisticated HRM process
    More formal and
    Various roles over the decades CEO structured approach
    to strategic planning
    Jones Added 'the sector' to
    Diverse businesses
    1970s aggregate common
    Founded - 1878 business groups

    Crotonville -
    CEO seniority to potential
    driven
    Welch 9 block tool - EMS
    1990s evaluation
    Annual 360 survey
    What went Wrong? Exogenous Factors
    9/11 attacks→ Changed business climate →
    GE insurance and aircraft engine companies
    plummeted
    Enron Scandal → Questions about GE's
    business model and transparency of
    reporting
    Crash of NASDAQ → large holders sold
    stocks and bailed out of other investments

    Endogenous Factors
    Viltality curve made the middle 70%
    employees feel undervalued → headhunting
    29 PLs collapsed into seven broad bands →
    frequency of clearly defined job promotions
    decreased
    Over-reliance on US based recruitment
    processes → Overseas units' dependence on
    American top managers; less non-Americans
    in the Officer ranks with the 40% of GE's
    revenues generated offshore
    GE's growth curve
    Key Problem 1 Recommended
    Vitality Curve Solutions

    Project/Stint Level Performance Evaluation


    Extremist meritocracy based-culture which
    a. Regular short-term rewards and
    was inclined towards the top 20% employees.
    recognition.
    b. More chances for employees to get into the
    A feeling of discontent among the middle 70%
    top 20% performers
    of the employees who were essentially
    c. Employees will remain motivated with each
    regarded as the back-bone of GE.
    new project to perform better.
    Conducting targeted Training and Development
    Skewed distribution of rewards and
    Programs tailored as per the needs of lower
    recognition sharply focussing the top 20%
    performing employees.
    Key Problem 2 Recommended
    Recruitment Solutions

    Connecting with HR Consultant Firms in other


    Over-Reliance on US-based recruitment countries and based on their
    programs recommendations hiring diverse talent.

    Low international talent pool, resulted in Hybrid model - GE's US Executive + HR


    more dependence on American managers for consultant from that country → joint
    offshore projects decision of hiring talent new talent from
    foreign countries.
    Key Problem 3 Recommended
    Executive Bands Solutions

    Increasing the number of bands and revising


    Employees in international locations felt
    the number of PLs to expedite the promotion
    limited promotion opportunities
    of deserving employees

    Frequency of clearly defined job promotions


    Conducting regular connects with the top
    decreased due to the collapse of 29 PLs into 7
    leadership so as to entail inclusive culture
    broad bands
    with lower level employees and enhance
    feeling of belongingness.
    Group 4 - HRM-A
    Ishita Tiwari - H22020
    Ridhima Pandey - H22041
    Shubham - H22047
    Sudhansu Dwivedi - H22053

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