GE has for many years been considered an exemplary organization. GE has had on its status, conventional wisdom placed to be one of the best-managed world companies. The company appeared in the top list seven consecutive times, on the Fortune’s first 10 ranking years as the world’s most admired company from 1998 to 2007. Furthermore, GE Company has been considered an anomaly because it operates as a successful diversified organization. It extended from gas and oil equipment, jet engines, financial services, and healthcare products. This is considered a huge diversification to be managed under a single company and becoming successful.
GE had an exemplary management system, and especially under Jack Welch and Jeff Immelt, who served as CEOs for more than 10 years each. The management system was set to offer continuous development to the company. Most of the company’s processes were embedded in the organization’s culture such that, they were integral to the world view and its identity. General Electric’s management system had a management development core (termed as ‘talent machine’ in its performance management system.
GE’s exemplary identification was also contributed to, by the company leadership. Commitment to leadership development within the organization was designated by the company’s heavy reliance on senior executives who were internally developed. The company’s efficiency in developing leaders granted it the ‘CEO factory’ status since the company managers are chief executives of other organizations throughout the world. Additionally, General Electric’s management system was heavily stemmed from quantitative, objective performance measures. Everything that happens to this company must have metric measures. The managers set demands performance targets, and their attainment was given strong incentives.
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