8 July 2013
Organizational Issues: Management and Motivation
While researching organizational motivation I came upon many articles on General Electric’s (GE) Chief Executive Officer (CEO) Jack Welch. When Jack Welch became CEO of GE in 1981, he was “the youngest CEO in GE’s history” (When Jack Welch took over); as CEO he set out to reenergize one of America’s largest companies. How would he go about doing it? Jack had an approach with three main areas: Setting goals and preparing the company for its competitive challenges, Empowering employees at all levels of the organization, and Communicating his goals and vision through the entire organization. The goal of this paper is to explain those areas used to motivated GE into becoming one of the world’s most successful companies. So let’s first define motivation. Motivation is defined “as forces within the individual that account for the direction, level and persistence of a person’s effort expended at work” (Schermerhorn, Osborn, and et al). Setting goals and preparing the company for its competitive challenges. An underlying theme for Jack Welch’s tenure as CEO of GE was his use of goal setting to motivate higher levels of achievement throughout the company. Welch set companywide goals, as well as specific performance objectives for individual companies and divisions. He often supplemented his goal setting by creating a sense of competition within the organization, as well as against all competitors. Welch consistently set far reaching goals in an attempt to move the company in the direction he wanted. While not all goals may be reached, Welch reinforced the notion that advancing towards those goals was still considered success and rewarded managers accordingly. He quickly realized that he could motivate higher levels of performance by setting goals that were much higher than the managers would have set for themselves.
Empowering employees at all levels of the organization. “Some leaders seem to...
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