The Jack Welch Era at General Electric Essay

944 Words Apr 27th, 2013 4 Pages
In the case, “The Jack Welch Era at General Electric”, indicate that during the period of Jack Welch was a CEO at General Electric from 1981 to 2001, the company became remarkable profit. Earnings per share rose from $.46 in 1981 to $1.07 in 2001. GE is a company which has a very long history, and Jack Welch was the first working-class person that finally became the famous manager in GE history. He changed and built lots of rules to fulfill his ambition to make the company more wealthy such as eliminated workers, changed GE’s culture by promoting the notion of a “boundary less” organization, used identical 20-70-20 percent curve to manage managers, and reshaped GE stocks. The story of the Welch years has the elements of legend, however …show more content…
In the long run, it will harm to social assets by such high unemployment.
Secondly, the pollution in Hudson River, which causes a very bad influence to our society, and also it indicate that GE did not do well in complying general principles of corporate social responsibilities. In 1977, The Environmental Protection Agency (EPA) set laws to stop releasing PCBs, because of evidence that PCBs cause cancer in test animals and probably cause cancer and a range of illnesses in humans. Still now, more than 100,000 pounds of PCBs released by GE still lay on the river bed. It is really harmful to the societal assets. The GE kept escaping the responsibility for their pollution at the beginning. But after many years of delay, the EPA finally ordered dredging in 2001. The cost to GE was estimated at $460 million.
The last thing is that during his tenure, GE committed a long string of civil and criminal transgressions. Many are for pollution hazards from GE facilities, and others are for consumer fraud. Since GE such a large and complex company, transgressions will cause bad influence. Other companies who choose GE as a model company will follow the same way GE did. From the view of social stability, there is no protection of societal assets, but hurt the societal assets.
Welch believed that having a right people in the management layer is the key reason to reach business success. He rewarded managers who achieved performance goals and got rid of those who missed…

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