Case Study - Best Solution
Case Study - Best Solution
Case Study - Best Solution
Michael A. Leiba
Jack Welch did an amazing job overall as CEO of General Electric and was forced to make
plenty of tough decisions for the betterment of the company. One of the most notorious of decisions
was the restructuring of the organization because it proved to be challenging for a few reasons but
primarily because a lot of people were receptive to change and the lack of support he faced while
implementing this change made it that much more difficult. The best solution to this core problem
would have been more involvement, better clarification of expectations, and lastly more
transparency when it came down to the rationale behind the decision. In an article Fair Process:
Managing in the Knowledge Economy by W. Chan Kim and Renee Mauborgne they stress the
importance of gaining and maintaining the employees trust in the company and more importantly
those that they work for. The article also goes on to speak about three main focal points in which
fair process is centered around: Engagement, Explanation, and Expectancy. Although the outcome,
from a financial and managerial standpoint, turned out just as he had hoped; it also resulted in a
not so favorable outcome from a human relations standpoint. Employees felt mistreated,
undervalued, and worst of all… disengaged because of the lack of communication from upper
management. I believe if Welch had made an attempt at Fair Process through employee
engagement, explanation, and expectancy then the outcome would have been slightly different. If
Welch openly communicated future plans and his expectations clearly and opened the floor for
feedback, then employees would have had a chance to give input and possibly overcome obstacles
in which Welch might have missed; then they would have felt a little more at ease with the decision
that had been made simply because they were at least given an opportunity.
BUS463 CASE STUDY 3
After the restructuring of General Electric had been completed, Welch found it increasingly
difficult to keep their managers motivated, goal driven, efficient, etc. The best possible solution to
the secondary problem is exactly what Welch had done, implemented the Six Sigma initiative. He
knew that he needed to do something to get the company back on the up and up after all the layoffs
and he did just that by implementing one of his final initiatives which focused on efficiency and
what differentiates good managers from great managers and a few key differences is that great
managers play to their employee’s strengths, tailors learning styles for increased efficiency and
understanding. Implementing the Six Sigma quality program was arguably the most influential
initiative that Welch had done at his time at General Electric. Not only was he able to move the
company in the direction he had envisioned, he successfully redefined employee efficiency and
Benefits of General
References
HBR's 10 Must Reads: On Managing People. (2011). In M. Buckingham, What Great Managers Do (pp.
91-110). Boston: Harvard Business Review Press.
HBR's 10 Must Reads: On Managing People. (2011). In C. Kim, & R. Mauborgne, Fair Process: Managing
in the Knowledge Economy (pp. 111-132). Boston: Harvard Business Review Press.