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MASTER OF BUSINESS ADMINISTRATION AWARDED BY NOTTINGHAM TRENT UNIVERSITY
ASSIGNMENT SUBMISSION FORM
Note: Students must attach this page to the front of the assignment before uploading to WECSERF. For uploading instructions please see the help file online
Name of Student: Zubair Saleem Student Registration Number: KL102047
Module Name: Managing and Leading Strategically Module Number: WEC-MBA-11-0406 Assignment Title: Critical Analysis and Implementation of Leadership theories and Jack Welch's Leadership Style Submission Due Date: 13 December, 2009 Student’s Electronic Signature: Zubair Saleem Plagiarism is to be treated seriously. Students caught plagiarizing, can be expelled from the programme
Assignment Form MBA Jan04
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V
1.0 Introduction……………………………………………………………………
2.0 Three Duties of Manufacturer ……………………………………………….
2.1 Consumer Production And Marketing ……………………………………
2.1.1 The Contractual View………………………………………………
2.1.2 The Due Care View…………………………………………………
2.1.3 The Social Cost View………………………………………………
2.2 Marketing Ethics of BD…………………………………………………
3.0 Sole Control, Patents and Monopoly of Becton & Dickinson…………………
3.1 Four Major Principals of Ethics…………………………………………
3.2 Is the Manufacturer Legally, Ethically responsible ………………………
4.0 Who was Responsible for Maryann Rockwood’s Injury…………………….
5.0 GPO’s and B&D’s Monopoly and Ethics …….……………………………..
6.0 Conclusion…………………………………………………………………….
7.0 References………………………………………………………………………
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EXECUTIVE SUMMPARY
In different ages of the past we have innovated ideologies, means and methods in almost all
fields which is based on 3 Ps i.e. People, Product and Profit. Leadership to manage, change,
innovate to increase competitiveness, performance and increase in desired outcome is on of those
great ideas which gave us opportunity to be able to motivate, communicate, change, innovate,
manage and lead the teams and groups or societies. The main theme comes to make the followers
able to put their combined effort to gain a competitive edge in today’s global competitive era.
Dr Francis “Jack” Welch Jr. is one of our great leaders of this era who worked in General
Electric for almost 41 years from 1960 to 2001 and remain CEO for 20 last years. He gave his
life to learn, teach and lead the organization and its employees and by increasing others abilities
and combined effort he turned company around almost 10 folds.
Though we have questioned ourselves that what qualities and leadership style he had or he
applied to achieve the desired success. The traits theory and its comparison to Jack Welch’s
leadership Qualities proved that though Trait theory is not highly considered in leadership as a
born leader or great man concept. But Mr Jack Welch increased the and improved his traits
through out his life and career in GE as well as he say’s “When I stop learning something new
and start talking about the past versus the future, I will go”. He focused the past and forecasted
the future while his second competitive trait was “accepting the Reality and Change” through
which he achieved the confidence of his followers and implemented Sig Sigma in GE.
In practical organizations leaders can never base on only the characteristics they have but they
have always tried to change and innovate the new ideas and even changed their leadership style
and behavior to its employees according to difference in situations. Welch believed to learn and
change not only the strategies when needed but he also changed his leadership style according to
the changing situations following the Hersy and Blanchard’s model. Welch’s aim was to move
and push the employees towards Delegating Style of this model which he covered in his 20 years
career as CEO of GE.
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Table of Contents
1.0 Introduction------------------------------------------------------------------------------- 03
2.0 Background of Jack Welch/his Organizations--------------------------------------- 05
3.0 Critical Literature Review Of Leadership Theories--------------------------------- 07
3.1 Traits Or “Great Man” Approach------------------------------------------------ 10
3.2 Situational / Contingency Approach-------------------------------------------- 12
3.2.1 Fred Fiedler’s Contingency Model-------------------------------------- 12
3.2.2 Hersy And Blanchard’s Contingency Model----------------------- 14
4.0 Jack Welch’s Leadership Qualities---------------------------------------------------- 16
5.0 My Opinions on Welch’s Leadership Style------------------------------------------ 19
6.0 Conclusion-------------------------------------------------------------------------------- 21
7.0 References-------------------------------------------------------------------------------- 22
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1.0 INTRODUCTION
The people we concern, the organizations we work and the societies we live have always been
changing in past through different ideologies, ways, opportunities and innovations. These
changes in individuals, organizations, and societies have been felt to come from countable
number of persons who understood the ideologies, opportunities and needs of our growth
towards the innovation. These countable persons include all the Prophets (Peace be upon Them),
Hitler, Carl Marx, Lenin, Galileo, Albert Einstein, Nelson Mandela, Philip Kotler, Bill Gates,
Jack Welch, Jeff Bezos and many others who understood the human nature, been leaders and
gave new ideologies to innovate. But the most important ideology came in sight from all these
people was that, “Human is one of those creatures who need to be taught and leaded through
physical, mental or psychological means to achieve the combined goal in organizations and
societies”
According to Blagg and Young, “Leading is an ability to navigate in the choppy water of change
and to see the opportunity in every setback”. While American Academy of Achievement (2000)
illustrates that “Trailblazer, Guide, Change Agent, Captain, Coach and many other words used to
characterize the leaders. It further says that leaders may easily be defined as those people who
help shape organizations, events and ultimately lives are called as leaders” but according to AAA
the “secret” or “formula” of leadership remains somewhat a mystery.
Likewise many of other terms described by time to time for the persons who have changed the
thoughts of people, who leaded the individuals, organizations and who ruled the nations left
some questions for every human that “Are leaders born or they become leaders after passing
years struggle?” and “Is there any particular pattern that what should be the personal brand of a
leader, how he should take decisions and how he should react on situations?”
After the whole study I came to conclusion that though one has an ability to survive in England,
he might fail in Africa because of difference in his own bearable conditions. Like wise the
change in difference in situations, change of problems and change of people are those factors
which effects the ability of not only the organization and societies but of a person too who leads
the teams, groups and organization.
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A person who is born as leader should never be failed in any condition but should be able to
solve all the problems even in different conditions. When we talk about two different scenarios
like the decision in politics or textile industry is completely different than decision in Petroleum
well. This reflects us to the thinking that people who lead are not born but they pass through
many of situations
Hughas at el (2009) says “Leadership is everyone’s business”. While Gary Yukl (2005) sites that
Leading is the process of influencing the activities of a group towards the achievement, through
meaningful direction and stepping outside the culture to avail the opportunities.
Jack Welch (2008) says in a video that ability to lead basically comes through the understanding
of the abilities of your own self because all people have same senses but some only know that
which one of their senses is more meaningful.
The leadership is like the same tactic to know what makes u more important for the people to
whom u lead. What of your qualities will your followers like while it varies with changes in
people, culture, atmosphere and situation etc? e.g. People in America might like the person and
follow the one, with 3 peace suit and nice shoes like Dr John Francis “Jack” Welch, Jr (X-CEO
General Electric), as well the person with a very casual and normal dressing like Jeffery Preston
Bezos (CEO Amazon.com). But when we come to Japan people like their CEO in a very rough
and tough personal branding as per their psychology.
The leadership has been reshaped as per continuous innovations in ideas and psychology of work
force and organizations. The difference between the leadership of old era and that of new era is
very clear from the following comparison of Old and new Paradigm intentions of leadership by
NTU, 2009.
OLD PARADIGM
•Stability•Control•Competition•Uniformity•Self-centered•Hero
NEW PARADIGM
•Change/crisis mgt.•Empowerment•Collaboration•Diversity•Higher purpose•Humble
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2.0 BACKGROUND OF JACK WELCH AND GENERAL ELECTRIC
Dr John Francis “Jack” Welch, Jr also known as “Neutron Jack” was born on 19th November,
1935 in Salem, Massachusetts, United states. Salem, Massachusetts is a city of Essex county, US
is a residential as well tourist city with mix historical sites and of new age at the edge of
Naumkeag River. John, father of Jack Welch was a Boston &Maine Rialroad conductor while his
mother Grace was a house wife. Jack Welch after his primary education in Salem High School
graduated from University of Massachusetts with Bachelors of Science Chemical Engineering in
1957. Jack Welch received his Masters of Science in Chemical Engineering and then Ph.D from
University of Illinois in 1960.
Jack Welch joined General Electric in 1960 as a “Junior Engineer” at a salary of almost $10,500
while during his job he did a huge accident in the factory and was almost fired but company
intended to let him leave by himself and raised his salary by $1000 only in second year and Jack
was displeased and decided to leave the company but one of the executive Reuben Gutoff, just
two levels up than Jack Welch convinced Welch not to leave the company and fight against the
bureaucracy in the company. Welch was named as “Manager of the Century” by fortune
magazine, 1999.
During the job career of Jack Welch in GE, he invented a new form of plastic named as PPO and
was promoted to General Manage of GE’s plastic factory. He was later promoted to vice
president of GE in 1972, president of GE in 1977 and as Chairman of GE in 1979 as the
youngest Chairman of GE. This was the talent of Jack Welch and his hard work which in his
starting was only known by Reuben Gutoff which later came in sight of whole the world. Jack
Welch was lastly promoted again in just 2 years as the youngest CEO of General Electric. GE
was one of the slow moving companies in and before 1960s but today GE is a dynamically
grown giant of the world. During the 20 years of Jack Welch’s CEO career, he turned the slow
moving company from value of $12 billion to $280 billion. Welch made a record salary of $940
million per annum.
According to H. Hoston (2001) Jack Welch turned the company around in three different stages
during his career as CEO General Electric. He elaborates the first cycle from early 1980s to late
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1980s in which Welch eliminated all the nonperforming business units through judgment of
market performance. In second cycle during late 1980s to mid 1990s he eliminated the non-value
added activities following the Change acceleration Process. While he illustrates the third cycle of
Jack Welch’s leadership in GE from 1995 to 2001 and describes that Welch discovered Six
Sigma in 1995 and studied its implementation in both Motorola and Allied Signal. This third
phase was to eliminate the variations from already lean business operations to gain its highest
possible productivity and performance. In third phase GE achieved operating margins moved
from 13.6% to 18.9%, inventory turned from 5.8% to 8.5%, ratio of plant and equipment
expenditures (Asset Efficiency) moved to 1.0% while EPS (Earnings per share) doubled in 5
years after implementation of Six Sigma.
GE today is working under the saying of Jack Welch that “We bring ideas together, turning the
meetings of our top managers into intellectual orgies”
Though GE is today a world giant but some of the financial experts like Carole A. Symonds have
criticized the Jack Welch’s financial performance in GE. He illustrates that the ROIC (Return on
Invested Capital) did not increased during Welch’s last 10 years career as CEO even Six Sigma
was implemented and remains average 7.0% barely keeping the government bond yield for the
same time period which till now has fallen down to 5.4%. Symonds (2005) illustrates in his
article more clearly through the financial calculations of ROE and Debt to equity ration in which
he shows that the ROE (Return on equity) increased from 20.14% to only 25.22% showing that
how much company earned during last 10 years relating to Equity employed. He further proves
through Debt to Equity Ration which also shows the truth that increased from 3.5:1 to 4.0:1 only
as given below.
Source: Carole A. Symonds, 2005, ‘Jack Welch Missed His Opportunity with GE’ Global
Financial Publishing.
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3.0 CRITICAL LITERATURE REVIEW OF LEADERSHIP THEORIES
Many different concepts have been generated through the years of research and a number of
practical scenarios and conditions felt by researchers and leaders within and outside the
organizations. These concepts have been modifying through the passage of time. Though there is
one very common concept in all leaders and researchers that the leader is also based on its
followers and people follow them because of many causes and not one. Like Hitler was followed
because of his powers and cruel nature, Karl Marx was followed due to his humanity loving
nature and many others due to different causes as a whole but when it comes to a practical
organizations, leaders are seemed to have some very important characteristics as given below
with quotes of some Harward Business School faculty members and some others (2001).
Source: http://www.alumni.hbs.edu/bulletin/2001/february/leader.html
•"It is the real work of leadership" says HBS professor Nitin Nohria.•"Great communicators have an appreciation for positioning" says JohnKotter.
•"Your behavior, your action and your decision are also ways ofcommunicating and leaders have to learn how to make it consistent" saysDavid Thomas.
Communication as a Key
•Nitin Nohria reflects Winston Churchhill's defeat in Gallipoli during worldwar I with 100,000 casualities but he took complete responsibility, thesetback like this could be paralyzing but he was able to move forward to leadhis country to victory in world war II.
•Jeff Bezos also says "it as one of the key element for a good leader"•John Kotter stops to tell hard truth which demoralize the company.
Telling the Hard truth
•Moss Kanter illustrates,"Leaders must wake people out of inertia. They mustmake them excited to achieve somethig that do not exist yet"
•Kotter says "Empowerment is also vital to manage change"•Kanter observes that personal passion is not enough but your followers mustalso be believers"
•Kotters says to make people competitive to have progress in new era.
Coping With Change
•"Knowledge is Power" while Joe Badaracco says "What your employees dois more challenging"
•David Thomas focuses that "Share knowledge is more important thenretaining it"
•Nitin says "People do not follow your smartness but they prefer the leaderwho shares and who allows to share"
•Kotter says "A leader need enough understanding to fashion intelligencestrategy"
The Role Of Knowledge
•Kotter notes that " Like evolution from industrial age to information age,recognition of new opportunities are highly prized"
•Nohria urges Gandhi " Creativity not always take the most obvious form"•Rosabeth illustrates that "If you fail to see the elements, someone else willsee them and you will lose the game"
•David Thomas notes "Leaders must learn from others creativity"
Einsteinian Break Througs
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These are some of those important characteristics which a leader must have when dealing with
the teams and organizations. The styles of leadership differ with the difference in organizations’
corporate strategies, situations and conditions. Some of these main leadership styles are as given
below.
Source: Kurt Lewin at el, 1939
According to Kurt Lewin at el (1939) in autocratic leadership style, leaders take decision without
consulting with others. In democratic leadership style the leaders involve the people in decision
making process although the final decision making may vary with the situations and consensus
of the group. While in Laissez Faire leadership style the involvement of leader minimizes with
empowerment to employees to make their own decision.
In some of the situations leaders need to apply autocratic leadership style like one man show in
which leader don’t rely on others advices and it may be applicable in the situation where leader
can not base on any one, or in the condition if he can not rely on them while democratic
leadership is mostly applied in the normal conditions of an organization and is preferred.
If we go more deep in different practical scenarios and conditions, like if the organization is a
sinking ship and there are chances of liquidity or facing high turnover of employees, then in this
conditions leaders mostly apply autocratic/dictatorship style of leadership rather than democratic
or laissez fair style or team management.
Leaders are termed to be the motivators, change agents and coaches who build the satisfaction in
employees to have the best possible performance and outcome. Or if we look at Vroom’s theory
of motivation, leaders need to enhance the efforts of employees which will improve the
performance and ultimately increase in desired outcome.
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E.g. Hughes at el, 2009 sites Polls estimation that “If companies could get 3.7% more work from
each employee, the equivalent of 18 more minutes of work for each eight hours shift, the GDP of
US would swell by $355 billion, twice the total GDP of Greece”
Leadership Traits, Behavior and development
Leader’s behavior development is still a mystery as a whole according to American Academy of
Achievement that what should be the perfect behavior of a leader in different situations and how
it develops to be a good leader. While many of the researchers have worked to find out the most
preferable behavior a leader should have. In a practical organization the leaders role is to change,
motivate and achieve desired outcome of the work through mind and team building approaches.
But the decision making, leadership style, and leadership techniques are very important to note
while leading any organization.
The psychological study of the leaders is thought to be the old pattern to understand the
leadership qualities while after some researches of Stugdill (1948), Kirkpatrick and Locke
(1991), Ohio States leadership studies, Michigan leadership studies and University of Texas etc,
the researches were done to understand the leadership qualities and their development through
the comparison and studies of different successful leaders.
Here question again rises that what should be focused and what should be examined while
researching the qualities of a leader? Does leadership qualities of a leader are inherited or he/she
transforms his/her behavior and decision making skills through the passage of time? To find out
the answers of these questions for Mr. John Francis “Jack” Welch’s leadership style, here I have
discussed some of those theories and models which are related to the leadership qualities and
leadership style of Jack Welch, during and after the job as a leader and CEO in General Electric.
These theories and models are based on the leadership qualities and leadership styles of Jack
Welch and the style he applied in GE, like situational leadership style, sometimes autocratic and
mostly democratic leadership while keeping the situations, motivational and communication
theories in mind. This does not reflect that Jack Welch does not follow others leadership styles
but more about some related.
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3.1 TRAITS OR “GREAT MAN” APPROACH
There are a number of researches made to identify the traits a leader should posses and to answer
that these traits are being inherited or he develops through time. Below given intentions are
termed as some very important intentions a leader must have to lead a team, group or
organization which can also be termed as the basic characteristics of a good leader.
Source: NTU, Power point Slide #1, 2009
If we have a look of the researches of Stogdill (1948 & 1974), Kirkpatrick and Locke (1991), Mc
Call at el (1983 and J. Neff and James M. Citrin (1999), they have been modifying the concepts
through time and gave different perspectives of traits approach of leadership or concept of “great
man”.
The traits study was early based on psychological focus which turned to the discovery and
comparison of best leaders. Stogdill reviewed more than 100 researches made on personal traits
approach in 1948 which he again modified in 1974. His findings included the discussion on
Leader
Influence
Intention
Personal Responsibility and Integirty
Change
Shared Purpose
Followers
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general intelligence, initiatives, interpersonal skills, self confidence, responsibility driving, and
personal integrity of a leader according to NTU, 2009.
The second study of Stogdill (1974) reflected that there were some negative traits from 1948
study which caused researchers to reject the traits entirely because of situational concept of
leadership over emphasized on situation (contingency) leadership. While the study also says that
there are some traits that increase the probability of leading the followers successfully but this
narrow downs the situations. These traits include assertive, cooperative, ambitious, energetic,
self confident and persistent etc.
Mc Call and Lombardo research (1983) analyzed the success and failure of a leader and
emphasized on following four primary traits which leaders were found to have.
Source: http://changingminds.org/disciplines/leadership/theories/trait_theory.htm
Emotional stability and composure:
Calm, confident and predictable,
particularly when under stress.
Admitting error:Owning up to
mistakes, rather than putting energy into
covering up.
Good interpersonal skills:
Able to communicate and persuade others
without resort to negative or coercive
tactics.
Intellectual breadth:Able to understand a wide range of areas, rather than having a narrow (and narrow-
minded) area of expertise.
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3.2 SITUATIONAL / CONTINGENCY APPROACH
Contingency approach (also known as situational approach) of leadership is mainly based on the
approach that “there is no one way of leadership and must be tailored to particular situations and
circumstances faced by the organization” Fiedler & Fred, 1967.
According to Paul Hersy (1960) “In general situational style of leadership means to adopt any
leadership style with the requirement of changes in situations”
The contingency or situational leadership style was also thought to be not as much useful as traits
leadership qualities but in 1960s after Paul Hersy it was intended to be more useful and
understandable thought of leadership in which leader changes his style of leadership as per
requirement.
Many of the researchers have been working on situational or contingency leadership style like
Paul Hersy & Ken Blanchard (1969), Fred Fiedler (1964), Victor Room & Yetton (1973), House
B (1996), Kerr & Jemier (1978), and Dessler G. Schemerhorn (2002) while Fiedler and Hersy &
Blanchard’s model of situational theories are more related to Jack Welch’s personal branding as
a leader.
3.2.1 FRED FIEDLER’S CONTINGENCY MODEL
Fred Fiedler in his study found that contingency or situational concept LPC is the first and most
valuable than traits and behavioral concepts of leadership. Least Preferred Co-Worker (LPC) was
thought to be the base of this worker that how a leader perceives the LPC as the most valuable
resource of organization.
Fred Fiedler studied “great man” or trait approach of Carle, the combination of Behavioral
studies of Ohio States (Structure vs Consideration), Structure theory of Woodward, and theory of
Bureaucracy by Weber to give his contingency model.
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Fiedler took two main motivational factors in consideration to compare leaders i.e. Task
Motivation and Relational Motivation and asked to score the LPC. The Task Motivated leaders,
who make least score on the scale, found to lead through autocratic style and just were getting
the task done, while the leaders with Relational Motivation took high LPC score who believed in
interpersonal relations and were pleasing others, having loyalty and were accepted.
Fred Fiedler also took three major factors of Leader member Relations, Task Structure, and
Power position to study and compare the leaders as considered below;
Source: http://blogs.warwick.ac.uk/kangfan/tag/le/
Leader Member Relation (LMR)
LMR can be good or bad while with good LMR groups were found to be cohesive and
supportive with high favor of followers and groups with bad LMR were found to be divided and
unsupportive and leaders were not favored by the followers and leaders were found to be in tense
conditions.
Task Structure (TS)
TS also can be high or low in different situations and in high TS the tasks, goals, pathways and
procedures were found to be clear to the group with high favor of followers and found to have
easy measurable outcomes while leaders were in high sit condition. In case of low TS goals,
tasks, procedures and outcomes were found to be not clear to the group members and leaders had
lack of favored by its followers and leaders were in low sit condition.
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Leader Power Position (PP)
Leaders with high PP had influence in hiring, firing, rewards allocating and punishment
decisions of the organization having high favor of followers. Leaders with low powers were
holding less and informal powers and had informal influence on hiring, firing, rewarding and
punishment decision and leaders were found to be in lack of favor with low sit condition.
3.2.2 HERSY AND BLANCHARD’S CONTINGENCY MODEL
Hersy and Blanchard’s model was introduced in 1977 in which the “readiness” of a leader was
seemed to be the basic component of leadership. Hersy and Blanchard suggested that successful
leader must be ready to adjust the leadership style as per situation and two main factors of
followers’ ability and followers’ confidence.
This model also was driven out through the task and relationship factors of behavior of a leader
and introduced four different styles of leadership to best deal with the difference in followers’
maturity levels and situations as given in following two-by-two matrix in contrast of maturity
levels, ability, willingness and confidence of followers.
Source:http://higheredbcs.wiley.com/legacy/college/schermerhorn/0471734608/module16/module16.pdf
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Telling Style
With high task and low relationship behavior this style of leadership approaches great deal of
direction to followers and giving them more attention to define the goals and tasks of individuals
and group as a whole. This leadership is used when dealing with new staff or when work is
repetitive, or in condition of time limitation. The situation is termed as unable and unwilling of
followers.
Selling Style
This style of leadership is used when the task and relationship both of the behaviors are high, in
which most of the direction is given by leader and the followers are being encouraged. This style
is also termed as coaching approach and used in the situation when followers are willing to put
their efforts and are motivated but leader feels lack of maturity, ability and knowledge required
to accomplish the tasks.
Participating Style
This style of leadership with high relationship and low task behavior decision making is shared
between leaders and followers. Leader’s role in this style of leadership is to facilitate and
communicate with high support of leader to its followers with low direction. This style of
leadership is used when followers are capable of doing their tasks but feel unsecure and
unwilling and leader try to communicate to increase their participation and to motivate them to
achieve the combined goal of the group.
Delegating Style
When the relationship and task both behaviors are low in organization then leaders use this style
of leadership. In this leadership style a leader identifies the problems and issues but most of the
responsibilities are being shifted to followers by empowering them. This style is used when
followers are highly competitive and mature.
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4.0 JACK WELCH’S LEADERSHIP QUALITIES
Jack Welch as the leader of Century is one of the personality which can be viewed but our
intentions are much more less than him and the way he think and behaves might be far away
from our minds but I have analyzed him on the basis of some theories and whatever I have seen
and learned in my career which might miss a number of points and I believe I might judge him
not as he should be. Some of his characteristics and leadership qualities are as contrasted below;
Jack Welch and His Personal Traits
The traits of a person can be seen or felt but can only be said positive or negative if you compare
them with others or thoughts of others. The traits theory is though thought to come next to the
situational concept of leadership but it is very important to know that what was the reason which
made Jack Welch to withstand in GE and what were the traits which made him to take the perfect
decision with no place for mistakes.
Jack Welch always tried to learn and motivate to learn and this trait of Welch was not only
motivating but was pleasing to his followers and if they stopped, Welch pushed them. While he
by himself not only served for GE but through out his life was learning and accepting the new
innovations. He completed his Ph.D and then came to job, When Reuban Guttof asked him to
wait by giving him some facts, he accepted which shows that he was not an aggressive person
but even today his behavior shows that he is very nice person with pleasant nature.
He believed in playing while he says “Study whatever you think, you are better in but chose that
job which you like and enjoy”
We are not so sure about his childhood so can not say what he was when he was a child because
his traits can only be compared with that age to see that he had charismatic traits or he
transformed but most of authors believe that he possessed both the Qualities and he was not only
charismatic leader but he transformed and accepted the truth of need of willingness, change and
innovation.
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Empowerment Approach of Jack Welch
Jack Welch says in his book “Jack: Straight from the Gut” that, “My main job was developing
talent. I was a gardener providing water and other nourishment to our top 750 people. Of course,
I had to pull out some weeds, too”
While during his career also he emphasized to empower the employees and to improve their
talents whose living example is Jaffery R. Immelt who is current and successful CEO of GE after
Jack Welch. This leadership quality reflects the delegating style of leadership through which
Jack Welch believed to empower the people who posses the skills and abilities and are able to
work. Like Jaffery R. Immelt was one of 20 candidates to replace Jack Welch as CEO but Jaffery
was found to be more willing to serve his life for GE which was appreciated by Jack Welch.
He says in a video with HBS “When I stop learning something new and start talking about the
past versus the future, I will go” and the same concept he implemented in GE in which during his
third phase of leadership he studied and implemented Six Sigma while this concept leads us to
the telling style of Hersy and Blanchard’s contingency model. This style of leadership he also
applied in GE and encouraged the employees to learn to attain the competitive edge.
He not only believed to attain the confidence and willingness of his followers but he emphasized
on choosing the right person on right place and at right time as he quoted “If you pick the right
people and give them the opportunity to spread their wings and put compensation as a carrier
behind it you almost don’t have to manage them”
Change Agent Approach of Jack Welch
Jack Welch quotes in his book that, “Willingness is strength, even if it means plunging part of
the company into total confusion for a while” and “Change before you have to”
“An initiation is long lasting, and it changes the fundamental nature of organization. Regardless
of the source, I became cheerleader. I followed up on all of them with a passion and a mania that
often veered towards the lunatic fringe”
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Intentions Towards Learning Organization
Jack Welch emphasized on learning not only during his career but even after that as he knew that
still not only the employees of General Electric but almost all business personnel and his words
are lesson for them. This is because people are opportunists in nature and they have followed
their leaders.
Jack Welch was a realistic leader and he motivated his employees towards innovation and he
always tried to achieve the delegating style of leadership given by Hersy and Blanchard as he
says, “I've learned that mistakes can often be as good a teacher as success”.
Though leaders mostly follow the “Carrot and Stick” approach but as we have analyzed Jack
Welch, he only shown them Carrot and tried to hide the stick which was a motivating factor for
his followers. Like He says “Control your own destiny or someone else will” in which also he
mentions to control your destiny but at the same time a hidden stick is there which he is
motivating that he don’t want to apply.
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5.0 MY OPINION ABOUT JACK WELCH’S LEADERSHIP STYLE
Before giving any comments on Jack Welch’s personality I would like to share that I worked for
four years in a textile industry and followed by four managers I was the only person in general
shift who had to satisfy them and provide them all the information whenever and wherever they
need. But one of the senior manager who was on top post, he used to take me when he will go
back and in the Car, he used to ask me some things and I was telling everything that what is
happening with me in the industry. Though he was not giving me any thing but from my heart, I
still respect him. He used to respect the employees though sometimes he got angry but only to
those who were on key posts.
I have seen Jack Welch in the same category and his behavior since his start of career being an
engineer was the same. Though he got angry when was disappointed by the company but he
realized his mistake and did not leave the company but his learning cycle never stopped. During
his 41 years career he covered all those abilities and leadership qualities which a business person
always dreams.
Though some of the authors have criticized him for his less concentration on financial matters
and Jack Welch also says in his book “Straight from The Gut” that “a CEO’s primary social
responsibility is to assure the financial success of a company”. A. Symonds said that “ROIC
remained same during his last 10 years” but I believe that in a practical organization if we
consider and follow money matters, we may never satisfy our employees and I intend that Mr.
Jack Welch also believed so and he emphasized on employee satisfaction more than money.
Though we can never deny that he did not benefited the company as we have seen because of his
leadership, the company achieved the value of $286 billion from $12 billion in just years which
seems to be impossible but “Intentions lead the success and success leads success”
He says that from the People, Product and Profit, a leader must focus on the People and other 2
Ps comes after. I have seen in my career and through the studies that those leaders who are
people oriented, have always made more lean business structure and have faced less problems in
the organization.
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Jack Welch also believed and during his first and second phase of his leadership, he eliminated
the non-working and non-value added business units from the organization but he did not kick
the employees out of the organization which shows his intention to go for lean business structure
but though he believed to retain the employees as it would be a de-moralizing and de-motivating
factor.
Some of the authors also said that Jack Welch did not focus on Quality departments but as he
believed in Six Sigma so we may never deny his intentions towards high achievement of Quality
products with least defects.
His intention towards a learning organization gave him a competitive advantage to achieve the
desired goal by putting whole team effort rather than just managing and controlling his
followers. As he says “An organization's ability to learn, and translate that learning into action
rapidly, is the ultimate competitive advantage”
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6.0 CONCLUSION
Jack Welch can be said confidently as one of the great business leaders of the new era. His vision
to serve for the company was like his life and goal of his life as he says in his quotes “Vision
without action is a dream. Action without vision is simply passing the time. Action with Vision
is making a positive difference.” While his career, findings and efforts for General Electric
reflect if from his actions and business strategies.
He leaded the organization with passion and his empathically generated lean business
organization while keeping the employers confidence, support and talent improvement in mind.
He determines it as “The team with the best players wins.” And his realistic thinking gave a
competitive edge to the organization and his ideology, traits and behavior today reflects in the
organization. Today GE works as he set the organization on the basis of realistic and competitive
thinking as he quotes “If you don’t have a competitive advantage, don’t compete.”
His traits shows that he was also a charismatic leader but at the same time he was
transformational leader and followed the situations as he turned the company around in three
different stages as were required under different situations. While his People oriented leadership
is an example for all leaders to understand the value of employees who are the most important
asset of organization and without which organization can never ever succeed. Welch argues “In
the end, all business operations can be reduced to three words: people, product and profits.
Unless you’ve got a good team, you can’t do much with the other two.”
His leadership gives us lesson to show empathy and admire the employees from our actions like
he said “If your actions inspire others to dream more, learn more, do more and become more,
you are a leader.”
If we look at his traits, we may not say that he was a born leader because his financial
performance which is being criticized by Symond is an example and shows that a born leader can
not leave any stone unturned while at the same time we may take his approach as more towards
morale and motivation of employees in which sometimes financial matters of an organization
may act as barrier which was in against of his leadership approach.
Page 23 of 26
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Jack Welch, 2001, Straight from the Gut, Warner Books Inc, New York.
Jaffery A. Krames, 2002, The Jack Welch “Lexicon of leadership”, McGraw-Hil, New
York.
James A. Baker at el., 2000, What is A Leader, American Academy of Achievement, US
Joan Symonds, 2005, Financial Expert Challenges Jack Welch and Jaffery Immelt’s
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Kevin Maney, 2001, What is Leadership: America Shows Amazing Resilience, Press
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Kurt Lewin, 1939, Patterns of Aggressive Behavior in Experimentally Created Social
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