Jack Welshs Leadership

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When Jack Welsh started off as the Manager of GE, in 1981, the United States economy was in recession. Downsizing was being implemented and this was the worst economic slump after the Great Depression. It was in this scenario that Welsh took charge of the company that had a very enterprising run until then.


He set up a priority of getting GE to occupy the #1 or #2 spot. Hence, he worked on massive changes to be implemented.
Firstly, he sold almost 200 businesses of GE. He disposed off, the non-working, plagued businesses and acquired 370 acquisitions. He made the staffing 'lean and agile'. He also scrapped the strategic planning system and made it much simpler and focused. Besides this, he also took down massive downsizing, by removing employees who did not play an important role or contribution. He thus, retained only those employees who added value to the company. He also deleted the eight-level hierarchal system, reducing it to just half of it.
2. What is Welch's objective in the series of initiatives he launches in the late 1980's and early 1990s What is he trying to achieve in the round of changes he put in motion in that period Is there a logic or rationale supporting the change process
Welsh clearly defined his objectives in the second phase of changes initiated. All the changes and activities he undertook had the underlying goal of creating a specific workplace culture. ...
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