Difference between Leadership and Management in General Electric

This report discusses the difference between leadership and management in General Electric (GE), the types and skills of leadership, and the approaches followed by H. Lawrence Culp Jr. in leading GE.

Leadership
management

Table of Contents
Introduction...........................................................................................................................................3
Main body.............................................................................................................................................3
Difference between leader and manager............................................................................................3
Style leadership.................................................................................................................................3
Skills of leaders.................................................................................................................................4
Approaches followed by H. Lawrence Culp Jr..................................................................................4
Conclusion.............................................................................................................................................5
References.............................................................................................................................................5
Books and journals............................................................................................................................5

Introduction
Leadership is guiding the employees in particular direction for achievement of firm’s
objective. Management is arrangement of business activity in which all resources are utilized
to maximise productive for achievement of firm’s desire goals. General electronics (GE) is an
US based company which is group of 12 companies sealing different product. It was first
incorporated in 1889, when Thomas Edison’s company make alliance with Drexel, Morgan &
Co., a company founded by J.P. Morgan and Drexel (Northouse, 2018). Thereafter, numbers
of amendments are made. Company is also listed in fortune 500 lists in year 2018. In this
report difference between leadership and management will by identified. The types and skills
of leadership will also be acknowledged for increase the productivity in context of GE.
Which style there leaders are following which help firm in continuous growth in business
operations.
Main body
Difference between leader and manager
Basic Leadership Manager
Vision Leader is the one who provide
vision to their employees and firm.
Manager is the person which
executes this vision in firm with its
abilities.
Trust and
control
Leaders are always relays on trust
as their main objective is to build
trust on and in their employees,
Manger is always aim to maintain
disciple that why they use control as
their tool for management.
Focus They believe that over all
development will leads to goal
achievement so their focus is on
overall development.
Here manager thinks that goals are
the prime motive so only goals and
targets of firm are focus points.
This is the basic difference which was identified by the GE as there have managed difference
in their firm structure.it has managed separate structure for its leaders that is CEO and
structure for manager. All these things are mentioned in certificate of incorporation in firm
(Western, 2019).
Style leadership
Charismatic leadership: this is the leadership where the charm of leader is used to
getting work done through others with the help of charmers quality leader can directly
influence the behaviour of individuals and can guide them towards achievement of firm goals
and objective. This theory or style of leadership is just similar to transformational leadership
but the core ideas are different in both. This leadership style is followed by Jack Welch in
General Electric when he is the prime leader in firm.
Servant leadership: this is that leadership style in which leader act as a servant of firm.
Where it directly involved in working with employees. In this leader focus on needs of
employees and guide them by fulfilling personal needs with firm’s goals and objectives. CEO
Jeff Immelet is known for implementation of this strategy in GE. He always works as the

worker of firm and his arduous work leads in increasing market share and profitability of firm
(Grint, Jones, Holt and Storey, 2016).
Skills of leaders
Skills are the strengths which a leader must have and impalement in leading the
workers of origination towards the objectives. These are divided in two types which are
mentioned as:
Soft skills
Communication: this is the first skill which is required by the leader that they must be
communicator. All the information which they want to supply must be easy for understanding
for employees. This skill is possessed by CEO GE leaders as there is no communication gap
in firm (Bolman and Deal, 2017).
Motivation: leader must have skill of motivation employees and self-motivation. This
is important for development of employee performance. In GE leader use these skills with the
help of providing authority to employees, incentives, promotion and many more ways.
Positivity: it is also a part of skills, where they bring positivity in working condition.
this will help leader in managing the mood of employees. Positivity in employee working
condition also helped leaders of firm in exploring market.
Creativity: creativity is that skill of leader which helps it in marinating the interest of
employees and feels them good while working in firm. This will aid foam in reducing
employee turnover and setting higher standards for performance of firm.
Hard skills
 Knowledge of computer and system used by firm.
 Have knowledge of languages which are currently used by firm for good
communication.
Approaches followed by H. Lawrence Culp Jr.
Henry Lawrence is an American business leader and chairman and CEO of General
Electric, and only one who appointed as outside in firm. He was borne is Washington D.C,
and educated from Harvard business school. Prior to his appointment to post of CEO he is
serving as best employee of that firm. Henry performance in GE is outstanding as firm is
performing much better and employees are the motivation of employee. The basic theory of
leadership used by Henry is transformational leadership. This is the best way to lead the firm
Transformational theory: this is that leadership theory in where leader promote work with the help
of using new and innovative inventions in work place. Here the basic concept is to promote change
in structure and will use new for working in employees (Antonakis and Day, 2017).
It is used Henry as the main style for leadership where he used to change all the
policies and procedures in whole company this also helped company in maintaining good
relationship between employees and employers. When Henry joins the company there is a
huge loss in it as firm’s shows negative revenue in final accounts. Then he said in its

interview to media that we will fight to this and will reach to about gold and objectives. Here
we will transform structure of company and bring positivity in firm. This statement by him
clearly shows that he is a transformational leader.
Conclusion
This can be concluded from above mentioned repost that leadership is important for
firm for managing its performance as well as increase productivity of employees. there are
number of states and models which can be used by firm for motivation of employees and
leading them towards firma goals and objective this will also lead in better management of
employees and firm will use this for getting it work done in limited time period.

REFERENCES
Books and journals
Antonakis, J. and Day, D.V. eds., 2017. The nature of leadership. Sage publications.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and
leadership. John Wiley & Sons.
Grint, K., Jones, O.S., Holt, C. and Storey, J., 2016. What is leadership. The Routledge
Companion to Leadership, p.3.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Western, S., 2019. Leadership: A critical text. SAGE Publications Limited.