Jack Welch and His Management Legend

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They call him Neutron Jack. They call him the toughest boss. Fortune magazine calls him “The manager of the century”. In his twenty-year career General Electric, Jack Welch rejected conventional wisdom and turned an aging behemoth of a corporation into a lean, mean engine of growth and corporate innovation.

 

“Manage better by manage less” is the key point to Jack Welch’s success. Instead of the direct management style that is preferred by most of the companies, Jack Welch revolutionized management a less formal, creative, and flexible management style that minimized bureaucracy, boosted efficiency and created simplification.

 

Delayer bureaucracy is one key strategy that Jack Welch energized General Electric. Redundant bureaucracy and complicated response system was the big enemy of General Electric, lagging it from the other competitors. By getting rid of the bureaucracy in G.E, Jack Welch broke the boundaries, allowing a free flows of people, insights, and decisions. By doing so, Jack Welch effectively engaged everyone into the team, creating a more enthusiastic working atmosphere that also has more freedom and more responsibility.

 

However, after learning the last class, I think Welch’s innovation also have advantages in the company’s future globalisation focus. In an increasingly multicultural, global world, GE need to be decentralised in its globalisation focus. However, right now General Electric is too homogeneous, too masculine and too “American”. Welch’s managerial style is good for decentralising  because its flat responsive system allows local-market reports customer feedbacks at the first time and implement improvement to different department efficiently.

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