GENERAL ELECTRIC, NEW YORK Case Study : Succession Planning at GE
M.S.Ramaiah Management Institute, Bangalore | MBA (PRIST-A) | HRM Case Study Presented By : Team Members Introduction : Succession Planning
Succession Planning is the process of insuring a suitable supply of successor for current and future senior or key jobs arising from business strategy, so that the career of individual can be planned and managed to optimize the organizationǯs needs and individual aspirations. It encourages DzHiring From Withindz. Introduction : General Electric
Established in 1892, Thomas Alva Edison merged his EELC with Thomson-Houston Electric Company to form General Electric.
Business Structure of GE at a glance:
Commercial Health Energy Transportation Infrastructure Finance Care
Forbes ranked GE as the world's largest company. The company has 323,000 employees around the world. In Fortune Magazine's 2005 "Global Most Admired Companies" list, GE ranked first overall. By June,2010 The Ecomagination Revenue of GE will reach upto $25 Billion Case Study : Succession Chart at GE
Thomas Alva Edition (1892)
Charles Coffin (1894)
Gerard Swope (1922)
Charles Wilson (1940)
Ralph Cordiner (1950)
Fred Borch (1964)
Reginald Jones (1972)
Jack Welch (1981)
Jeff R Immelt (2001) Case Study : Summary
Succession Planning Process at GE ȂThe leading diversified business in the world Growth of GE from inception and GEǯs commitment to succession planning It explains succession planning and leadership development at GE It examine CEOǯs succession planning under Jack Welch (GEǯs CEO 1981-2001) It shows differences between management style and ideologies of Immelt and Welch Finally, the future of GE under the leadership of Immelt Case Study : Discussion Session
Question:1
Critically examine the importance of leadership development and succession planning at GE and explain how it is undertaken at the company.
Why do you think that involvement of the top leadership in the succession planning process is important? Case Study : Discussion Session
Answer:1 GE Adopted Succession Planning right from the Mid-1900. As a part of Succession Planning, GE shifted its key candidate from one business to another to gain experience across all its business GE consider Succession Planning as important as Financial Monitoring to differentiate ũTALENTŪ Major Tools Used at GE for Differentiating Talent Vitality Curves 9 Blocks Accomplishment Analysis Under the guidance of Welch, Succession Planning become a Systematic Process with the help of various analytical tools and involvement of Top Management. Case Study : Discussion Session
Question:2
Study and comment on the CEO succession planning process Welch followed. Do you think Welch was right in deciding against retaining final CEO candidate, who failed to make it to the job? Justify your answer. Case Study : Discussion Session
Answer:2 In 1994, Welch along with Conaty and Okosky created a list of essential qualities, skills and characteristics an ũIdeal CEOŪ should posses. He also designed a ũHit-By-a-TruckŪ Succession Plan. Welch submitted a list of 23 potential CEO candidate to the board same year. To have a closer look at potential CEO candidates, GEŨs board members had informal interaction with them ŷ played golf and attended Christmas parties with them. By 1998, The original list narrowed down to 8 serious candidates. Welch with Conaty and Okosky developed ũEight Basic Objective for Selecting CEO SuccessorŪ. This helped Welch to choose final 3 candidates ŷ McNerney, Nardelli and Immelt.