Attitude and Job Performance Issues in General Electric Company - Research Paper Example

? General Electric Company Company History The history of General Electric s back to 1876 when Thomas Alva Edison after visiting an expo decided to open a laboratory at Menlo Park in New Jersey. There the inventor decided to work on several electrical gadgets like dynamos based on which he hit on a brilliant idea of inventing an electric lamp. By the end of 1890 the company named after Thomas Edison was successfully running to produce electric bulbs wherein in 1892 the company merged with another company, Thomas-Houston, to help form the modern General Electric Company. The modern business still holds the legacy of Thomas Edison in its several electrical products and services. In addition the modern management of the company has helped the business to diversify into other key areas citing opportunities thereby hinting on both growth and profitability through aiming at cost reduction ventures (GE, 2012). . Mission and Motto of the Company The mission and motto of General Electric is targeted at transforming the imaginative and potentially innovative ideas to help in the production of such products and services that would help in providing effective solutions to potential business problems merging both in the current and future era of the business happening in different countries round the globe (Cohen and Cohen, 2006, p.5). Significantly the company has also designed its tagline or slogan as “Imagination at Work” thereby reflecting on the large amount of innovative actions taken in the workplace to help in the production of effective new products aiming at meeting the needs of the consumer in a sustained fashion. The company making its activities based on the motto or slogan stated aims at creating difference of actions and thoughts while operating in the global landscape (GE-a, 2012). Attitude and Job Performance Issues of the People in General Electric The people absorbed as employees in General Electric are required to have attitudes that would help in fostering innovation and focusing on new types of business opportunities. Thereby the people are required to grow with the company harnessing the knowledge and technological resources in order to develop their individual capacity and potential. Further the concern also regards its employees to work in a culture based on integrity, trust and accountability both towards the concern and to the society at large (GE-b, 2012). In a recent issue in regards to job performance levels of the people in General Electric Company during the times of CEO, Jack Welch is that the former CEO advised the human resource managers of the firm to remove the employees from the company who would fall in the bottom 10 percent of the performance appraisal rating pyramid. Here, thus a forced distribution system in regards to the performance appraisal functions was carried out wherein the employees would be rated in regards to three categories like the upper crux of 20 percent, middle layer of 70 percent and the bottom layer of 10 percent. The final bottom layer was required by the company management to be devoid of any incentives or bonuses and finally removed from the company (Noe, Hollenbeck, Gerhart and Wright, 2006, p.282). Current Personnel Issues in General Electric In regards to current personal issues disturbing the work atmosphere of General Electric it is found that in New York the company management arrived at a confrontation with union workers pertaining to United Electricals. The issues ranged from not rendering effective sick leaves and benefits to the employees in addition to making the retirees get devoid of pension schemes and other medical care facilities. It is stated that a large number of workers joined the protests in New York City during 2011 protesting against the company’s policies in regards to sick leave that is reported not being employee friendly and stagnant for decades. The people protested that each year they work to render significant contributions to render both productivity and profitability to the firm. However in that the company takes little care in countering any betterment in regards to compensation systems, working and living conditions. The company management was thus held to be inert and non-responsive to the demands of the employees in regards to pay hike and leave and pension policies in spite of countering growth and profits over years (Gruenberg, 2011). Leadership Strategies of Last Two CEO’s of General Electric Herein, the leadership strategies of two business leaders Reginald H. Jones and John F. Welch Jr. would be studied in regards to the business operations of General Electric. Reginald H. Jones served the Chief Executive Officer of the company from the period ranging from 1972 to 1981. It is observed that under the leadership of Mr. Jones both the revenue and sales grew dramatically. Further the leadership attribute of Mr. Jones also helped in steering the growth of the company into international markets. Moreover another significant characteristic of the business leadership of Mr. Jones was in carving out an effective relationship of the business corporation with the government authorities. Thus as the Chairperson of General Electric he also took part in the formulation of several economic and social decision making ventures with the government (GE-c, 2012). The next Chief Executive Officer that followed Reginald H. Jones was John F. Welch-Jr. He took over the reins of the company from 1981 and his legacy existed till 2001. The aspects of business leadership of John Welch reflected that he earned a different charisma in letting managers work on their own. This sense of freedom rendered to the middle level management body of the concern thus shows of his little interest in a bureaucratic business order. However he required that the managers would work within the framework of the business corporation in conducting their thoughts and actions. Thus the business pertaining to each level mainly focused to gain the benefits of emerging opportunities such that under his leadership the company gained the potency to largely expand and acquire several firms. This helped the company to gain huge competency and productivity from the previous period (GE-D, 2012). Existence of Diversity or Teamwork in General Electric The employee culture of General Electric reflects large scale diversity in regards to the employees based in different levels. The training modules rendered to the employees at General Electric Company speak a lot on diversity incorporating both regional and global elements. Classrooms of General Electric Company is constituted by trainees, 50 percent of whom do not belong to United States. Similarly separate events are also held by the company incorporating people from several diverse groups. This process helps in enhancing the relationship between the people amongst each other and with the company. The company is also found to largely represent women where a network of women members belonging to the employees, consumers and supplier groups are invited to help share views and experiences (GE, 2009, p.2). The culture of teamwork in General Electric is held to be first ushered in and developed by John Welch. An example of teamwork culture in General Electric can be best observed in regards to an appointment of a new manager. Upon appointment the manager in the very first day is required to stay along with the other team members after that the manager is put on rest for two consecutive days. In those two days the team is required to evaluate the manager and prepare questions to be asked to the manager. Upon the joining back of the manager in the fourth day the team openly discusses issues with their newly appointed manager so that the same can be effectively resolved within the department (Kakabadse, Bank and Vinnicombe, 2004, p.141). Political Influence on General Electric The political influence on General Electric can best be studied in regards to the reign of John Welch as the Chief Executive Officer of the company. Here, General Electric had been accused by the agency protecting and caring for environmental rights in United States for largely polluting the Hudson River based in New York. The agency was found to render a huge cost for the cleaning up of the river and aimed to levy the entire charge upon General Electric Company. John Welch in the mode of countering the decision of the agency fought back through organizing a lobby of senators and other chairpersons of houses. The lobby also included eminent presidents of media houses to help enhance the voice of opposition to the demands of the environmental agency (Multinational Monitor, 2001). Financial Performance of General Electric The financial performance of General Electric for the financial year ending 2011 can be reflected as follows. Firstly the company records a growth of around 22 percent in regards to it earning per share during the stated period. However the pattern of operating expenses for the stated period has also risen by around 20 percent. Moreover the company also reflects a backlog of orders pertaining to equipment and service of the order of $200 Billion during 2011. The company however gains success in meeting the needs of shareholders by reflecting a rise in dividends by around 70 percent by the close of 2011. General Electric during 2011 is reflected to possess flexible assets in terms of cash and other equivalents to around $85 Billion during 2011 (GE, 2011, p.1). Goals and Strategic Business Plans of General Electric The goals of the company can be studied mainly along four main fronts that can be reflected as follows. Firstly the company endeavors in understanding the needs of the market both in the regional and as well as on the global scale. Secondly the company tends to inculcate a sense of belief among the internal members that they would be able to address such needs of the world. Thirdly the company focuses to enhance the structure of innovation and research and development activity to rightly fulfill the plan sought. Finally the company endeavors in matching the dream woven with the realm of activities taken to help in making a different and a developed world (GE, 2011, p.3). The company tends to set its strategies based on five parameters that can be outlined and reflected as follows. Figure 1 (General Electric, 2004) Firstly the company focuses on enhancing its competencies through considerable investments and focus rendered in regards to technology and research and development activities to develop highly effective products that would fetch higher margins to the company. Secondly the company focuses on enhancing its services sector to render more new and innovative services to the global consumers. Thirdly the company tends to work along several fronts keeping an eye on changes in consumer demands thus treating consumers first. Fourthly the company focuses to enhance its global outlook by gaining entry to untapped markets so as to gain enhanced revenues from the global markets. Fifthly the company wants to expand more into diversified sectors to help grow out as a global conglomerate in future (General Electric, 2004). 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(2011). Unions discuss key issues with GE. Retrieved from: http://peoplesworld.org/unions-discuss-key-issues-with-ge/ Kakabadse, A., Bank, J., and Vinnicombe, S. (2004). Working in Organisations. 2nd Edition. United States of America: Gower Publishing, Ltd. Multinational Monitor. (2001). You Don’t Know Jack. The Multinational Monitor, 22(7&8). Retrieved from: http://www.multinationalmonitor.org/mm2001/01july-august/julyaug01editorial.html Noe, Hollenbeck, Gerhart and Wright. (2006). Fundamentals of Human Resource. Tata New York: McGraw-Hill Education. Read More