General Electric Company: Human Resource Approaches

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General Electric (GE) is one of the top companies in the United States as well as in the global market. The company’s success has often been associated with the name of Jack Welsh who contributed greatly to the development of the company (Grant, 2005, p. 336). Welsh introduced innovative strategies that made the company one of the leaders in the world. Jeff Immelt, who became GE Chairman and CEO in 2001, has become a deserving follower of Welsh’s ways (Grant, 2005, p. 336).

It is important to note that the success of the company is not confined to effective marketing strategies. It has been acknowledged that effective HR strategies contribute significantly to a company’s performance (Gates & Langevin, 2010, p.124). General Electric is one of the companies which understand the importance of the right HR strategies as they pay a lot of attention to this issue. It is also necessary to point out that the company has worked out HR approaches that match up with the company’s marketing strategies.

One of the major strategies the company pursues is concerned with integrity. Thus, Jeff Immelt articulates the company’s statement of integrity:

For more than 125 years, GE has demonstrated an unwavering commitment to performance with integrity. At the same time, we have expanded into new businesses and new regions and built a great record of sustained growth, we have built a worldwide reputation for lawful and ethical conduct. (The Spirit & The Letter, 2008, p. 1)

The company strives to follow the principle of integrity in relation to its customers and suppliers as well as its employees. The company has worked out a specific strategy to follow the principle mentioned above. Importantly, each employee has to follow this principle (The Spirit & The Letter, 2008, p. 5). Such HR approaches as control and commitment are used to bring the strategy to life. Thus, GE leaders are supposed to encourage employees to follow the major principles of the company. The leaders are also supposed to raise awareness of the importance of integrity.

It is necessary to note that the company follows the same principles when cooperating with its clients and suppliers. Thus, GE employees are to follow the code of conduct which is based on the principles of integrity (The Spirit & The Letter, 2008, p. 6). These principles have become vital as the company has entered the international arena. Admittedly, each market may differ considerably as each country has specific laws, rules, and cultural peculiarities.

General Electronic makes “globalization “work” for employees, customers, governments and investors” (Growth Starts Here, 2010, p. 2). The company’s employees are trained to conduct in accordance with existing norms in each country. This policy helps the company to pursue the major principle of integrity and ethical conduct. The employees are taught to develop proper relationships avoiding unlawful actions (The Spirit & The Letter, 2008, p. 19).

Another important principle cherished by GE is concerned with a material interest in the company. In the first place, one of the major aims of the company is to gain profits. Of course, the company tries to work out various strategies to make investors interested in cooperation with the company. The strategies are quite successful, which can be confirmed by the fact that the company expanded dramatically over several decades. For instance, about 60% of the company’s revenue comes from overseas (Growth Starts Here, 2010, p. 2). Therefore, the company offers various programs and solutions to its customers and suppliers.

However, GE also pays a lot of attention to its employees’ wellbeing. Apart from high salaries, the company understands the importance of other ways to make the employees motivated. The company works out various pension and healthcare plans which secure employees’ position. Remarkably, the company has managed to create a really special atmosphere that encourages employees to remain loyal. It was Welsh who started his war on bureaucracy (Grant, 2005, p. 341). He managed to inspire his employees to obtain better results, to strive for new achievements. Thus, one of the executives recollects: “Jack will chase you around the room, throwing arguments and objections at you… and it’s clear you’ll do everything you can to make it work” (Grant, 2005, p. 342).

Remarkably, Welsh chose one of the most effective strategies to manage human resources. Thus, according to Huselid et al. (2005) employees should occupy a specific position where they can perform effectively (p. 113). The researchers define three positions A, B and C. The division is based on the level of responsibility, authority, etc. Welsh, as well as his follower Immelt, have exploited the same structure.

However, Welsh emphasized the importance of proper communication between the employees. Thus, leaders (those occupying Position A) were to inspire other employees, encourage them to come up with new ideas and “go up, down, and around their organization to reach people” (as cited in Grant, 2005, p. 342). This strategy of specific attention to employees perfectly matches the major strategy of the company, i.e. the principles of integrity.

Thus, the role of business leaders in the company is crucial. These people control, supervise and, at the same time, encourage other employees to work out new ideas to develop the business. Notably, each GE employee has a lot of opportunities within the company (Growth Starts Here, 2010, p. 7). This approach enables the employees to realize their innovative ideas, which, in turn, makes them interested and motivated.

Admittedly, this approach is beneficial for the company’s development as front-line employees usually gain particular knowledge of what is really important for customers. The business leaders and executives can work out effective strategic plans on the basis of these data. This effective model matches the company’s marketing strategy as well. In fact, GE can be regarded as the company of many opportunities for its customers, suppliers, investors, and employees.

To sum up, it is possible to state that one of the major principles General Electric follows is that of integrity. This principle is manifested in the company’s marketing strategy as well as in its HR policies. GE has developed into a multinational company that conducts in accordance with ethical principles. The company also pays a lot of attention to innovation and development exploiting new ways to develop its marketing strategy and HR approaches.

It is also important to note that the company manages to work out HR approaches that perfectly match its marketing strategies. These approaches help the company to choose innovative ways of making business worldwide. GE has created the necessary environment for its employees who eagerly work hard to develop the company. General Electric can be regarded as an exemplary company that has found the golden mean as it has worked out strategies that are beneficial for all involved: investors, customers, suppliers, and employees.

Reference List

Gates, S. & Langevin, P. (2010). Human capital measures, strategy, and performance: HR managers’ perceptions. Accounting, Auditing & Accountability Journal, 23(1), 111-132.

Grant, R.M. (2005). Cases to accompany: Contemporary strategy analysis. Malden, MA: Wiley-Blackwell.

Growth starts here. (2010). Web.

Huselid, M.A., Beatty, R.W. & Becker, B.E. (2005). “A players” or “A positions”? Harvard Business Review, 83, 110-117.

The spirit & The letter. (2008). Web.

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General Electric Company: Human Resource Approaches

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