According to a body of research, charismatic leadership breeds and be can also be effective in bringing about change and inspire the following of members in complex and formal organizations (Jacobsen & House, 1999, p. 2. , citing Dow, 1969; Shils, 1965; Beetham, 1974; Bryman, 1992; Etzioni, 1961).
This approach is of interest to corporation because it represents a paradigm shift from an emphasis on normal supervisory and managerial behavior to an emphasis on the charismatic behavior of exceptional leaders who can influence the behavior of people in complex relationships inside organizations, or change complex organizations from within (Jacobsen & House, 1999). Change in groups, organizations and societies are brought about by individuals who are adept at leadership, and such leadership positions can only be effectively filled by individuals who exhibit charismatic qualities and behaviors.
Looking closely, one sees that there is a direct mapping between the four generalized attributes or components of transformational leadership and the leadership qualities of the charismatic individual or leader. The charismatic qualities of being a visionary, being change-oriented, and of being non-conformist and non-ordinary map directly to the four transformational leadership attributes of idealized influence, inspirational motivation, intellectual stimulation, and individual consideration. In short, people with charismatic
Welch was also a socialized leader who came up with and articulate goals that serve to better the future of their followers and serve the interest of the collective. He intellectually stimulated employees and help them grow individually, and work legitimately through established power and authority channels. He encouraged members to think critically, and to challenge and critically examine even the views of their leaders. In summation, Jack Welch translated mission into results, people who are the basic unit of excellence in every organization.
An increasing competitive world marketplace is going to continue pushing Americans and American companies toward new approaches to every conceivable point of leverage in the productivity equation. One such point—in the minds of many, the point of greatest leverage—is the full utilization of people, the human resource. In the last 100 or so years, the evolution of a manager career program at GE has grown from just simply recruiting from top colleges and universities to training them, to continuously monitoring managerial performance and evaluation.
At present, the development of talent in the company is now closely integrated with its operations, and will always be tied up to such. Strategic Techniques of Welch at GE According to Jack Welch decentralization prepares managers for positions requiring greater judgment and increased responsibility. (Tichy &Charan, 1989, pp. 112-121). Moreover, holders of lower level positions may not be considered suitable replacements for higher-level jobs.
In that event, gaps in a firm’s replacement chart—positions for which there are no suitable replacements—point to the need for better management development programs or, perhaps, outside recruiting. Jack Welch, CEO of General Electric, says that one of his assessment practices is to have each vice-president name a potential replacement. He believes that a vice-president who cannot name a successor has not spent enough time grooming subordinates for advancement. (Tichy &Charan, 1989, pp. 112-121). Conclusion GE seems like an old archaic company, with bosses who are stern and old fashioned.
What Welch has done so far for the firm is to pull it into the 21st century with more innovative products and services, and to create a learning environment not only for the customer, but for its employees as well. GE’s Jack Welch’s dynamism and passion has given the company the boost it needed from the very beginning until he retired.
Case Study: Jack Welch’s Creative Revolutionary Transformation of General Electric and the Thermidorean Reaction (1981-2004). Creativity and Innovation Management. Retrieved Oct. 19, 2006 at: http://www.ge.com/en/