?Question NO 1:While most companies have difficulty producing sufficient quality candidates for top management succession, how has GE been able to create a surplus? What philosophy policies and practices have made it a “CEO factor6y” as Fortune and Economist call it? Really producing sufficient quality top executives is very difficult task for companies, but if we see case of General Electric, it was producing managers not only for own, GE was producing these executives in enough quantity to meet the need of industry. The philosophy adopted by GE includes some techniques, policies and practiceswhich enable GE to fill vacant top positions.
Following are these techniques that wehave analyzed in this case study. Continuous Improvement:Management development process of GE was very effective in which employees aredeveloped step by step. Every manager was continuously involved in diversified andinnovative task in which every employee is rotate in different departments which enablethe employees to be expert in almost every field. The company was providing on jobtraining to its employees through training programs conducted in university which wasestablished by GE. Self succession plan and session C was also good for improving and polishing talent.
Focus Strategy:To fill the vacant top positions GE was focusing on internal source. For this GE wasconducting a lot of training programs for its employees because when these were trained by company, it was easy for company to adjust existing employees at top positions. Emerging Culture:Company is try not only to gain objectives but also to merge the new employees withthe existing culture followed at GE. New employees are encouraged to adopt the cultureof GE which was very helpful in transferring the culture and value from senior executivesto junior executives. Company Strategy:Company was considering the employees as the asset of the GE.
Company was notonly focusing on business development but also on employees development. It wasspending 10% of its pre tax income on employees development. It was also givingtraining to employees in university established by GEMeritocracy:In GE employee’s performance was measured by quantitative and qualitatively andthe basis of this evaluation the employees were promoted. While concluding we analyze that actually GE’s policies and practices were so goodthat it was producing the surplus managers. Values, culture, training programs, and performance appraisal measures are factor that help GE in exposing and polishing thetalent of employees.
Question No2:How generalizable are GE’s , management development policies and practices? Howtransferable across cultures? Across industries ? Aross companies ? Overall policies and practices are very good and fulfill the requirement and need of management development. These policies and practices are generalizable in every wherein world up to some extent not completely. Their extent of generazibility depends uponthe circumstances and situation and environment of geographical areas, laws andregulations of state because these factors vary from culture to culture.
E. g. moral valuesand ethics followed in American culture are not followed in Pakistan so we cannot saythat policies adopted by HR department in American organizations fully implemented inHR department of Pakistani organizations. Transferability across Culture, Industries and Companies:Of course policies and practices are implemented in European culture but it seemsvery difficult to implement these policies in Asian culture because HR policies have todeal with human behavior and culture.
Human behaviors are different in differentcountries in same situations. In GE employees are recruited which are fresh graduate. Then these employees were polished by GE by taking into account future requirements. Employees at GE have onlyand only experience in GE company but This situation may not happened in other organizations because they do not have such employees who are trained and developed by only one company because almost all organizations are involved in external hiring, so policies to develop employees cannot be implemented in those companies.
How we transfer policies and practices to other culture, industries and companies. For transferring these policies it is necessary to change and create the circumstances andsituations according to that of GE. HR departments have to deal with factors like value,culture and behavior and these things are different from culture to culture, company tocompany.