This document discusses succession planning at General Electric (GE). It provides background on GE and describes its business structure. It then defines succession planning and explains how GE implements it through processes like identifying potential successors, developing them, and promoting from within. The document presents GE's succession chart from 1892 to the present and analyzes the succession planning under former CEO Jack Welch and current CEO Jeff Immelt. It compares their leadership styles and comments on GE's performance under Immelt's leadership. Finally, it examines the need for succession planning in companies and potential issues without it.
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
GE Succession Planning - A Case Study
1. GENERAL ELECTRIC, NEW YORK
Case Study : Succession Planning at GE
M.S.Ramaiah Management Institute, Bangalore | MBA (PRIST-A) | HRM Case Study
2. Presented By : Team Members
Christ Biswasi Minz
Debarati Sen Gupta
Denny Singh
Kumar Shubham
Krishna Kumar
Kartikey Yamdagni
Kamal Nayan
Maneet Kumar
Manishankar Sonkushre
Man Mohan Anand
M.S.Ramaiah Management Institute, Bangalore | MBA PRIST(A) 2009-11
3. Succession Planning
Succession planning is a
process for identifying and Understand
Development
developing internal employees Need
with the potential to fill
critical organizational
positions Identify
Ready For
It reduces risk Movement
Possible
Successor
Create a proven leadership
model
Smooth business continuity
Improve staff morale
It encourages “Hiring From
Promote &
Develop &
Within” Train
Compensate
Successor
4. 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
5. 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)
6. Case Study : Summary
Succession Planning Process at GE – The leading
diversified business in the world
Growth of GE from inception and GE’s commitment to
succession planning
It explains succession planning and leadership
development at GE
It examine CEO’s succession planning under Jack
Welch (GE’s 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
7. Case Study : Discussion Session
Q:1(a)
Critically examine the importance of leadership development
and succession planning at GE and explain how it is
undertaken at the company?
A:1(a)
Adopted Succession Planning from Mid-1900.
Movement of candidates across all its business
Focus on “Talent Differentiation”
Major Tools Used at GE for Differentiating Talent
Vitality Curves
9 Blocks
Accomplishment Analysis
8. Case Study : Discussion Session
Q:1(b)
Why do you think that involvement of the top leadership
in the succession planning process is important?
A:1(b)
Advantages of involving the top management in the
succession Planning:
Better Assessment Ability
Employees will be trained under experts
Personal attention to key candidates
Build a health relationship between top management and
employees
9. Case Study : Discussion Session
Q:2(a)
Study and comment on the CEO succession planning process
Welch followed.
A:2(a)
In 1994, Welch created a list of essential qualities,
skills and characteristics an “Ideal CEO” should posses.
Submitted a list of 23 candidates to GE Board
Organized informal events to look at potential CEO
candidates
By 1998, The original list narrowed down to 8 serious
candidates.
Developed “Eight Basic Objective for Selecting CEO
Successor”.
10. Case Study : Discussion Session
Q:2(a)
Do you think Welch was right in deciding against
retaining final CEO candidate, who failed to make it to
the job? Justify your answer.
A:2(a)
Yes, Welch was right.
Each candidate are equally enough to run GE
They could easily become CEOs of any leading company
Retaining candidates may results into personal as well
as business conflicts
Work efficiency may reduce after retaining
11. Case Study : Discussion Session
Q:3(a)
Comment on the performance of GE under Immelt’s leadership.
A:3(a)
Immelt’s Performance at GE
Due to 9/11, GE failed to report double digit earning
growth in the fiscal 2002
Measures opted by Immelt:
Cut costs through layoffs
Restructured GE business
Introduced a Customer Service program – ACFC
He focused on “Customer Centric” strategy.
Invested $100 million in R&D to form “Global Research
Center”
12. Case Study : Discussion Session
Q:3(b)
Compare Welch’s and Immelt’s leadership styles and ideologies.
• Money making machine • Customer centric company
• Focus on Acquisition • Focus on Innovation
• Focus more on Job Rotation • Retain managers to make them
• Focus on Short term demand specialist
• Focus on Long term strategies
• Charismatic • Natural Leader
Jack Welch Jeff.R.Immelt
13. Case Study : Discussion Session
Q:3(c)
Do you think Immelt is right in investing more in R&D and
innovation, rather than on acquisition? Give reason to
support your answer.
A:3(c)
Yes, He was right because in case of economic slowdown
the company need to make their own growth.
Growth opportunity through innovation helps in economy
slowdown, rather than acquisitions
He spent $100 Millions to “Revamp House of Magic”
(Global Research Lab)
New products/technology always attract customers more
than existing one thus generates more revenue
14. Case Study : Discussion Session
Q:4(a)
Examine the need for Succession Planning in Companies and
identify various problems a company might have to face due
to lack of succession planning system.
A:4(a)
Need for succession planning
To have a ready pool of deserving candidates to fill the
leadership positions when need arises.
Opportunities for internal employees increases
Build a healthy relationship between Top Management &
employees
Problems due to lack of succession planning
Affect business performance and reputation
Moral of the company’s staff is affected
Severance pay, In case external employee is hired
15. Case Study : Discussion Session
Q:4(b)
Many companies appoint CEOs from outside, rather than from
within the company. Do you support this practice? Justify
your answer, citing reasons.
A:4(b)
No, Reasons are explained below:
Non-Familiarity with OC
They don’t understand norms and rules of the company
Increases cost
Demotivate employees
16. Case Study : Conclusion
Preparing future leader
Building-up the performer
Creating healthy working environment
Overall cost saving.
17. Case Study : Bibliography
Websites:
http://www.google.co.in
http://www.icmrindia.org/
http://www.ge.com/in/
Books
Human Resource Management – V.S.P Rao
18. Case Study : Succession Planning At GE
Thank You