Q1. Does GE’s human capital development strategy support its overall strategy? How?
GE leverages HR to its maximum degree by ensuring that HR staff are aware of GE’s overall business strategy and its finances, marketing, and operations so its selection of human capital will align with those goals. It is not simply enough to select capable people but the right kind of capable people that fit in with the overall organizational culture of GE. To achieve this objective requires extensive benchmarking of overall performance, and while GE operations may be decentralized, personnel are evaluated based upon strict standards, including manager evaluations, forecasting of their overall career plan, and succession planning to assume a seamless transition. When Jack Welch assumed the helm of the organization, he added additional requirements, such as requiring all managers to rate employees on a curve (which meant that even adequate performances might be classified as failures), as well as rating employees on how well they conformed to the overall organizational culture which drove GE’s strategy.
Q2. What advantages and challenges does GE have in pursuing this human capital strategy? Why is it able to be more effective in this approach than other firms (consider your own company as a comparison)?
GE’s approach focuses on building talent and promoting from within, after recruiting candidates from a very specific pool of applicants and schools. Given the importance of homogeneous organizational culture this makes sense for GE; the downside is this can create a silo mentality and limit diversity for the organization, including demographic diversity. For many other firms, particularly forward-thinking organizations such as Google and Facebook, such a strategy would not be fruitful, given that information and talent-focused organizations that derive their value from new ideas require outside input to thrive. Given the case study was written in 2006, the changes that have been fostered in recent years, particularly in the shift to online marketing and commerce, and the pace of change within business as a whole, suggests that the lessons of years ago are not applicable today.
References
Bartlett, C. & McLean, A. (2006).GE’s talent machine: The making of a CEO. Harvard Business
Case Study.
General Electric Jack Watson In 1878 Thomas Edison founded the Edison Electric Light Company which through mergers and acquisitions became General Electric (GE). The 19th and 20th centuries watched Edison's company grow into a massive multi-national company with branches reaching into a vast number of businesses. In the years since its formation GE has become a global leader in a number of fields beyond the power generation functions that Edison had pioneered.
General Electric Short-term and Long-term Objectives GE is one of the biggest and most varied industrial companies in the world. GE is concerned in progressing, manufacturing, as well as marketing a wide array of products for the generation, broadcast, control, distribution, and utilization of electricity since its amalgamation in 1892. Over the years, GE has progressed or obtained new technologies and services that have broadened significantly the scope of its activities (Ashkenas,
General Electric Constant transformation has turn out to be a way of life for corporations and their employees in today's fast-paced, competitive business world. All through the preceding few years, numerous companies have experienced noteworthy transformations such as getting rid of layers of administration, reorganizing procedures, authorizing numerous employees and downsizing others, shaping independent work teams, etc. In times like these, corporations clearly need effectual leadership at all levels, but particularly
General Electric Company (GE) is a multinational company that operates in more than 116 countries in North America, Europe, and Asia. The company specializes in the production of diversified industrial products, and is organized along 11 businesses such as Energy, Transportation, Infrastructure, Commercial and Consumer Finance, Equipment Service, etc. Over the years, GE has recorded financial success. In 2011, Fortune ranks General Electric as the 7th largest company globally, 13th
General Electric Company case -- There are five central themes that were identified that would support GE in order to persevere and establish a long-term franchise. These themes included: to build strong businesses; put investment in services, innovation, and globalization; to focus on areas of potential opportunity; to drive competitiveness through cutting costs; and be remaining committed to people. There are three key issues associated with concerns regarding GE's strategies for
General Electric and Philips health care have persistently provided forward thinking technology that have paved the way to a safe and high quality of care to patients. They possess solid foundation and have become experts in the field of health care technology such as medical imaging, information technology, and patient monitoring systems. Both organizations focus on sustainability of health care systems and quality delivery of care to patients. In addition,
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now