Sunday, October 30, 2011

Jack Welch's use of personnel

U.S. General Electric CEO Jack Welch, former known as the "world's first CEO", "21 century's most respected CEO", "the greatest contemporary American entrepreneurs."
Welch's success depends largely on his only example, frequently taught strict justice, firmness and flexibility of use of personnel. Welch said: "My greatest achievement is the discovery of a large number of people; their CEO to be good than most of these leading figures in the General Electric duck to water."
Welch founded the magic of human resources management system, making the General Electric Company to become a veritable "factory-made man", as the global business community Canglongwohu, human and cultural resources.
First, the only example
Welch of General Electric Company and employees have very deep understanding of General Electric has a very wide range of services, covering financial capital, light bulbs, locomotives, aircraft engines, medical equipment, television networks NBC and so how he led a powerful general-purpose Electric? We Listen to how he said: "I for how to make a wonderful TV show concept is not a little bit ... but I know who is the owner of NBC. This is essential. My job is to select the most qualified personnel and provide them with funds, which are rules of the game. "He put most of the time spent on personnel matters. Jack employment conditions are: the key is that you can do. GE does not focus on talent, education and qualifications, see is strength. For example, in a 7800 decision to finance staff to report to work when the key person, Welch skipped several other candidates and elected 38-year-old's Damo Man, Damo Man office was lower than the post two levels. The reason is that he selected his ability to deal with other difficult tasks leading to the company impressed.
Welch found a large number of people are good at, 1996, the company's transportation business to hire the best talent headquarters in Pennsylvania, employing a number of junior officers. They found that these officers are strong. General Electric Company's other departments have to follow, when the company hired to the 80 junior officers, the Welch will all of them go to GE headquarters, chat with them all day. Performance and quality of recruits left a good impression, so he ordered the recruitment of 200 junior officers every year. Less than three years the General Electric Company hired 711 junior officers, many of them have been significantly improved.
Welch and performance capabilities of the human attention in the beginning of April each year until the May meeting of the fullest expression. The company's top leadership at General Electric Company's 12 business units on-site assessment of the company's 3000 senior managers of the progress of the top 500 managers for a more rigorous review. Review meeting usually start at 8 am, 22:00 end. CEO and senior business unit manager of human resources to participate in assessment. Assessment of the tension force of the operators in these sectors to identify future leaders to develop a succession plan for all key positions, and decide which potential managers to General Electric Company Training Center leadership training. A General Electric Company's personnel file is not some random collection of notes scribbled. It includes the head of General Electric Company's actual results of operations and comparison of objectives, and in order to pay the annual review and assessment of a successor made the identification and development.

This report is the most fascinating achievements of local analysis, a human resources experts from the two spent an entire week to prepare, as long as ten to fifteen of the file. Includes a detailed and thorough assessment of the advantages and disadvantages of charge, as well as other relevant information, from financial performance, psychological state to health are covered. The report recommends further development: for example, suggested serving overseas, and graduate study, or attend the meeting as the time and respect for subordinates and other basic items. Analysis of achievements in the 1970s by managers to assess the design of a tool. Into the hands of Welch, it has become a way of helping managers a tool for growth, development director of General Electric used to feedback and to teach intensive part of the process.
Stage in the proceedings, Welch will sit down to re-reading a collection of each employee's review booklet, including their strengths and weaknesses, development needs, short and long term goals and the analysis of their superiors. Meanwhile, employees of all the documents that came after photos for future reference. Welch will then open to the promotion of those to be submitted, tasks and plans to challenge. Since the average annual meetings or contact Welch thousands of employees, he can make a wise manager of all kinds of evaluation. Welch has his on the selection and insight, he said: "Today we find in common is a leader in this: whether in that one level, they can stimulate the energy, inspiring the ability to simultaneously control the situation , but not the kind of people slack off, disappointed managers who will control. "
Welch has been looking for the best employees, he said: "I would like to remind you my idea of ​​leadership is what it is with people about. Just to get the best employees. Not the best athlete, you there would be the best gymnastics team, volleyball or football team. The same is true for corporate teams. "GE's world-class employees, so it is also the world's most competitive power companies.
Second, the ground wire to teach strict
Since Welch has been appointed president of General Electric Company, a radical reform of the company, in the reform process almost all GE departments to cut costs, but its training center - Croton invest 45 million dollars to construction of a building and improve the existing teaching facilities, the face of economic globalization, information technology, a profound impact on the development of the traditional industrial structure adjustment. In order to better adapt to the GE development, Welch, GE's goal is to build into informal learning organizations. The Croton is important to learn, exchange base. Welch monthly spare no effort to Croton to the company's leadership class, persuasion, debate. Croton's course directly linked to the company's strategic focus, managers seek solutions to the problems of their office keys. Jack the Croton as laboratories of innovation management and a good place to stimulate new ideas. The training center is unique in that: (1) GE's top executives and training of the primary charge of providing an open communication between the channels; (2) stimulate unprecedented frank, unfettered debate stimulated by creativity, thereby eliminating the cultural traditions of the various agencies to support the remnants of any bureaucracy; (3) to General Electric Company General Electric Company in charge of instilling new values. (4) The head of each in this study as it spread to the entire organization's business concept of "monastery." General Electric's education based on solving practical problems, rather than the empty theory.
Zai Croton training center is to encourage President and senior staff can enhance the interaction of unfettered discussion of ways. The aim is to educate and train Welch the most important values: self-confidence, frankness, and courage to face reality, even the storm of adversity and living strong. For example, in the training of line managers and college students have discussed this issue: Jack Welch of General Electric Company as the greatest president.
General Electric's business strategy and objectives simple and clear, the subordinates who fail, Welch would not hesitate to punish. After he took office in 1981, requires all GE division one of the best in their field, or face being removed or sold. To this end, GE to withdraw from a total of 117 coal mines to the iron and other enterprise funds. In 1981, the company laid off 9% in 1983 and 1984, General Electric Company has laid off 37,000. Welch is not indecisive, as the question at the training center, an underperforming manager asked his department melancholy future, Welch said: "Your department has been sold out, unfortunately this morning just sell this on a good business, as a partner in Welch said: "Welch would say, but he never said maybe."
Welch at General Electric Company attaches great importance to moral education, since 1985, the company asked to be in charge of "improper leadership and lack of diligence," leaving his subordinates to take responsibility in the misconduct. Comply with ethical and moral responsibilities and work performance has become part of the assessment. Welch of General Electric's director, said: "In the clean and corporate policy, the message is clear. You must own the organization's actions. Ringleader first in the company to any person for any offense, not lenient. "If the department's poor performance, Welch will give a chance, but the employees in violation of professional principles, Welch will be immediately dismissed. Such as the Israeli Air Force generals and more vines and general aviation engine business of an employee collusion, will exceed $ 30 million in U.S. government funds transferred into the account more than rattan, rattan is more than Israel, sentenced, sued General Electric Company employees were dismissed . GE fully cooperate with federal investigators, and finally signed to pay $ 69 million settlement payment.
Third, the hard and soft
Welch will give subordinates in the management of a large autonomy, the premise is good to dry. As one manager said: "If you're doing good, you will than most managers of listed companies have more freedom, but when the poor performance of a department, the control will be firmly in the back."
Welch has 20 or so below the person in charge, or pay raise every time, every bonus, every pre-emptive rights granted to the total along with the full expectation and candid discussion. General Electric Company Senior Vice President Gary said: "Welch always hard and soft, when he give you bonuses or stock options when he also will let you know what he wants next year."
The development of GE, Welch is pleased to enjoy the benefits of the staff, General Electric in 1998 to determine the salary increase of 4% target, but no job promotion in the case of the basic salary increase of 25% a year, a cash bonus year increase in basic salary ranging from 70% to 200%. He expanded the range of options, only the senior management in the past are eligible, about 27,000 employees now hold stock options. The first quarter of 1998 alone, approximately 3,900 employees received stock options net income of $ 5.2 billion, review the list of prize money that Welch especially excited, he said: "This means that everyone is rewarded, rather than several of our people. They have a children's school fees or buy a second house. This is where the real fun. "Of course Welch still requires leaders issued the award should reflect the difference between men, not to engage in egalitarianism.
Welch's method of employing the value of the informal side as well, for example, he often wrote notes to the different levels of GE employees, when Welch filed a moment to complete a memo pen, then fax to the recipient quickly, the next day send the original, notes, both intimate and heartfelt tone, hold a tremendous influence. The purpose of writing these notes is to encourage, stimulate and demands action. Such as the diamond industry, head of the Department Woodburn because do not want to affect his daughter's school and turned down a job promotion, Welch would give him a piece of writing such a note: "Bill, we like you a lot of reasons - one of the The reason is that you are a very special person this morning once again you prove this point so do yourself and your family are in good. the diamond business operations into a great business, stick to your priorities. "For Woodburn is, to this memo is a very important representation, he said: "This shows that Welch is not fancy me because I am a manager, but as a person and this is very important." Sometimes there is an accident subordinates joy, hand out bags hit bonus. Each week he will not notice some subordinate office or factory visits, temporary arrangements and lower managers to lunch and so on.
Welch said: "We should create an atmosphere that anyone can encounter problems at the right time to solve the problem directly to the direct dialogue." He took many measures so that workers involved in production management and improve efficiency. So that workers are direct participants in the business, so they have a high sense of belonging and responsibility. Faster, more productive and more competitive way to release the energy of each worker, wisdom and self-confidence. "
Welch has also implemented the "effort to solve the" plan, focus on companies inside and outside, up and down all aspects of wisdom to cultivate, collect good ideas and implement business strategy. This program enables employees have certain rights, but do not give up the leadership decision-making power, he said: "We want every person has a voice, we need everyone's mind now, is no longer a person driving the boat to guide progress, but a person with everyone together, driving effort to ship. "He believed that a leader should do the most important thing is to find, cherish and nurture each individual's voice and dignity, this is the ultimate key.
The face of increasingly fierce competition, the vagaries of the business environment, the success of General Electric Company to the twenty-first century survival and development has brought enlightenment. Welch in general may be the greatest success of General Electric molded into active learning, good learning community.

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