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Leadership Case Analysis of GE’s Jack Welch
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Leadership Case Analysis of GE’s Jack Welch
The heritage of General Electric (GE) is displayed from a firm that was founded on the organizations strongly controlled distribution of electrical influence. GE is world famous, considered widely successful by all business standards. As a global organization, GE ventured its organizational know-how into segments of finance and technology along with its powerful hold on electrical power. The modern GE is one of diversity, from medical equipment, to household appliances. A significant forerunner in brand development the firm was showcased by more than one brilliant head executive. This leadership case analysis of GE’s John Francis (Jack) Welch, will offer a detailed appraisal and evolution drawing a conclusion through analysis of the CEOs ideas that extend how his knowledge can be applied to other organizational situations.
Under the leadership of Jack Welch, GE was transformed in a mere two decades by asserting that quality and productivity would be the new standard of the firm’s reorganization. Welch achieved this core priority through technology and services. Making both a main concern by staying well ahead of technology advancement through investments of organizational quality of services provided. Many of the reinventions stemmed from staffing through discipline of destaffing. The models Welch encrypted into the firm were top innovation standards. One top model was the cycle of life product model. Welch dismantled the former CEO Reg Jones (successful in his own right) organizational foothold through the selling off many subsidiaries. The selling of subsidiaries required payrolls reduced. Welch then took his aim at a primary acquisition of RCA corporation. Management quality then introduced the model “six sigma.” This boosted the firm’s profits significantly through GE revenues upscale 60 percent. (Harry, 1998)
Six Sigma was used by Welch to enhance productivity by increasing GE’s market sharing capabilities, along with an extensive customer service intervention series program planned for quality gains. Six sigma measured the variance that the firm’s operational costs affect how product defects and the customer service levels of achievements standards relation to one another. A critical quality (CQ) is a characteristic of six sigma, used for the perspective of long-term goals that are understood through short term organizational understandings. (Harry, 1998).
The leadership qualities that Welch displayed while CEO at GE was supported mainly by the model of Galbraith’s Star. Within this model Welch used the strategy of differentiating the firm from its major competitors. As CEO he developed the talent of his employees through acknowledging what skills were needed for each assigned role within the firm. Key roles were structured on how mangers authority and power shaped the organizational goals and objectives. Compared to other organizations situations Welch decided upon a rewards established through processes. Through the innovative process of hierarchy breakdown within the firm’s organizational demands. (Abetti, 2006).

Abetti, P.A. (2006). Case Study: Jack welch ; apos;s creative… Retrieved from, M. J. (1998). Six Sigma: a breakthrough strategy for profitability.

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Quality progress, 31(5), 60-64). Retrieved from