Leadership and Management: A Case Study of General Electric

This report delves into the critical concepts of leadership and management, differentiating between the two and highlighting their importance in the corporate world, with a specific focus on General Electric (GE). It explores various leadership theories, including Behavioral, Contingency, Trait, Charismatic, and Transformational leadership, with an emphasis on the application of Contingency and Path-Goal theories within GE. The report examines the effectiveness of GE's leadership selection and training programs. Furthermore, it discusses the role of managers in setting goals and controlling operations, contrasting it with the role of leaders in creating vision, motivating teams, and driving innovation. The report also touches on decision-making theory and the Vroom-Yetton contingency model. Overall, the analysis provides insights into the practical application of leadership and management principles within a large international corporation.

LEADERSHIP AND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Difference between the concepts of leadership and management...............................................1
Leadership Theory......................................................................................................................3
Effectiveness of the leadership selection and training program at General Electric...................6
Contextualisation of the selection and training program ...........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Leadership and management are two important concepts in the corporate world which is
used to apply by each and every corporation for their growth as well as development. Leadership
can be simply defined as the art of providing proper guidance to an individual or a group of
people in order to attain a mutual goal (Pinto, 2015). This also aids in motivating and
encouraging team members so that work can be carried on effectively. For doing the same,
leader is having the responsibility of leading team associates and other individuals. On the other
hand, management is another term which is associated with the constructs of administration.
Herein a manager used to deal with various workers who are performing in an organisation in
order to control as well as manage whole things of their enterprise. Thus, it can be said that
management and leadership is playing crucial role in accomplishing each and every task of
company in effective as well as efficient manner. The current report is based on the General
Electric (GE). This is organized in New york and its headquarter is situated in Boston,
Massachusetts. In this project, discussion has been conducted on the several theories of
leadership such as Behavioural Theories, Contingency Theory, Trait Theory and so on. In
addition to this, effectiveness of training and leadership selection sessions at referred firm is also
being highlighted clearly.
MAIN BODY
Difference between the concepts of leadership and management
General Electric is famous as one of the largest American international venture which
comprises of two or more companies. These corporations are being engaged in completely
contrasting businesses. This firm is dealing with different sectors such as aviation, energy
connections, global research, lighting, current, digital,power, renewable energy, oil and gas,
transportation, healthcare, medical devices, pharmaceutical, automotive, life sciences, software
development and engineering industries (Renz and Herman, 2016). As this company is
extremely large, so there is a need to recruit more leaders and managers so that personnels
working in different departments of firm can be managed and guided in appropriately manner. It
has been recognised that most of the people are being confused by these two terminology (i.e.
management & leadership) and treat them as equivalent. On the contrary, these terms are totally
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variant in nature. Hence, it is very important for General Electric to understand about the
differences between conception of such terminologies.
According to the viewpoint of Schneider and George ( 2011), a leaders are someone who
generally create specific vision in organisation. They basically design a picture or outer
framework of organisational chores and motivate as well as engage their team members in
converting that vision into realism. They always think beyond the views of an individual and in
turn made or prepare persons for doing something unique and innovative. As a fruitful result of
proper guidance, workers performing in enterprise give their best and try to manufacture
innovational as well as creative products and services. The reason of doing this is to increase
annual turnover of specific company by enhancing the level of production. Leaders know that
only a higher functional group can achieve overall target in-spite of working individually. On
the other hand, managers are those person who usually used to formulate actual ambition of
venture. They concentrates on setting up , quantifying and acquiring predetermined aims. For
this, they focus on controlling existing conditions of corporation ad try to manage everything on
their own level. The main motive of management is to reach the setted ambitions.
On the other hand, Shahhosseini, Silong and Ismaill (2013) says that leaders are
considered as change agents. They try to evaluate the current situations of their firm and start
work for doing modifications in order to make whole scene better. This is the reason that
innovation is found in their performance. But supervisors commonly hold up the status quo.
These people are observed with sticking on their words and performing actions as per the
requirement.
Front runners or leading people used to take risks. They usually attempt to do something
new and unique. Thus, in these ways, some of their policy got failed. Even after failure ; they do
not stop and keeps on performing without getting demotivated. Hence, it could stated that leaders
are risk takers.. Whereas managers work for reducing entire risky things. They attempt for
avoiding issues as possible.
Employers generally look after each aspects of their work – forces and try to build up
positive or healthier relationship with them. Issues in context to leave management, distribution
of salary, health related problems, arrangement of various other functions , etc. are some key
work which is being carried out by managers. Hence, they are treated as task oriented. On the
contrary, leaders are entirely different from them and also perform completely contrasting work
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in comparison to supervisors. They used to deal with issues of specific projects which has been
going in an organisation so that none of the staff members would face any kind of troubles
regarding that. Thus, they are considered as people oriented since their main motto is to guide
persons so that task of venture get accomplished at suitable time.
From above based discussion, it can be summarized that work of managers and leaders
are different in nature. Hence, connection of management and leadership is contrasting in nature.
Leadership Theory
There are various types of leadership theories which is proposed by numerous of
philosophers. Some of the key hypothesis are trait theory, behavioural theories, contingency
theory, charismatic Leadership and transformational Leadership. By analysing the situation of
General Electric, Spisak,Nicholson and van Vugt, (2011) suggested that contingency theory
could be applied in this largest venture.
The concept of contingency is closely linked with situational approach. This was
developed by the famous Austrian psychologist Fred Edward Fiedler. He explained its
conception in his landmark 1964 article titled as “A Contingency Model of Leadership
Effectiveness." This theory is giving more light or concentrating on personality of a leader as
well as those situations wherein leaders used to operate its work. At the same time, this is known
as an organisational philosophy which is claiming that none of the ways could be predetermined
for running and organising any company. Hence, as per this theory, there is no best means for
dealing with issues emerging in enterprises, leading a venture or making appropriate decisions.
On the other hand, optimum course of an act is said to be contingent (i.e. dependent) upon
various interior as well as exterior conditions. Hence, front runners mainly emphasis on the
current situation and handles problems as per their skills and talent. They used to apply different
leadership style which is decided by them personally without any interruption of others. It is to
be noted that their decision always relies on specific condition since their main intent is to
remove problems of organisation by enforcing best styles of leadership.
The first and foremost component of this model normally emphasize on measuring the
several styles of leaders which is done by utilising a scale named as LPC (Least Preferred Co-
worker ). Through this scaling system, rating of subordinates is being carried on by commander.
Herein, they obverse the enjoyment level of an individual and find out who are not happy with
regular working in context to their corporation-al profession. These are depending on varieties
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of factors. If a higher score is recorded then, it shows that leading style is based on relationship
or is relations – oriented. While if lower scoring is acquired then it give indication of task
oriented mode. This is nothing but represents the kind of leadership conducted by specific leader.
Task based leadership mainly concentrate on completion of several chores so that particular aims
and objectives of an enterprise can be reached in efficient manner (Northouse, 2015). Where as
relationship grounded styling totally give importance on creating good kinship with associates
working in team. In this regard, leaders also focus on motivation as well as satisfaction of job
and ensure that every members are being quenched and are being happy during performing at
work – station.
The another element of this framework is the 'situational favourableness dimension'. This
comprises of key three factors. The first one is associated with assistance and contribution of
followers and shows that at how much level they are supporting. The second factor is related
with the structure of task and tells that either the tasks are organised or unorganized. Third one is
inter-connected with the authorisation of leaders and defines the range of power of those
frontrunners.
According to Helms ( 2012), Path goal theory also falls under the philosophy of contingency.
This is nothing but the integration of hypothesis of both goal setting as well as expectancy
together. As per this theory, chiefs are having the duty of making assurance that their team
members do not feel nay kind of problem whole carrying on their regular work. In this regard, all
information affiliated with their chores is needed to be provided to them so that they can begin
working in effective style. At the same time, leaders also have to present in front of each
followers if they require their help. It was proposed by sir Robert House, in the year of 1971. But
was again reformed in 1996 and assumed that behaviour of a guide should be contingent to the
common wellness and contentment of their associates. In addition to this, leaders must have to
create clear paths and passable in nature. In order to inspire workers, they should be rewarded
according to their performance in throughout month or year.
This has been observed that sir House has explained about four styles of
leadership that are supportive, directive achievement oriented and participative leadership.
Supportive style is associating with making an friendly surroundings at work – place. For doing
the similar, they need to focus on needs or demand of their members and provide them same so
that they do not feel demotivated. Hence, key motive of this style is to full full every
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requirements of followers and improve their existing conditions. On the other hand, directive
leading style is concentration on giving proper guidance to staff members so that they do not get
deviated from right path and at last attain the ambitions of specific corporation before determined
time frame. In this context particular schedule is being created by leaders for their subordinates
which have to be completed before deadline. Participative styling is affiliated with the interaction
of employees within organisation. As per this, leaders ought to promote their group members in
giving ideas whole making any decisions , thus, making an interactive session whereby everyone
can participate and express their view points regrading particular subject and at last final
judgement is formulated on the ground of that. The last but not the least style of leadership is
Achievement- oriented wherein front runners used to set challenges for their followers in both
context of self development as well as professional life. Hereby they are keeping faith on
performances of personnels and try to inspire them also for accomplishment of given challenges.
Hackman and Johnson (2013) stated that Decision making theory is another important concept in
the field of contingency philosophy. This comprises of Vroom – Yetton contingency model
which was proposed by Victor Vroom along with the Phillip Yetton in the year of 1973. The
main purpose of doing so is to find out whether a determination have to be taken by single
person or a with the assistance of all members who are involving in team. In addition to this, this
also aids in determining about at what range specific team ought to be engaged in the process of
decision making. This theory is including main five processes which are autocratic I, autocratic
II, consultative I, consultative II, Group II. In context to autocratic I, chiefs members used to
make judgement alone without doing any contact with other workers. On the other hand, leaders
who are falling under autocratic II commonly ask their associates to provide specific information
affiliated with particular matter (Hoch and Kozlowski,2014). But this is to be noted that
subordinates are not getting straightly involved in proposing their ideas for creation of ending
judgement. People who are being engaged in Consultative I is outlining the circumstances to
each and every members of team whereas those team do not meet as a group. At last, leader
make ending decisions. Frontrunners who are including in Consultative II are used to manage
discussion occurring in masses but finally lonely obligated for ending conclusion. Principle who
are engaged in Group II commonly arrange meeting and do discussion about specific situations
with the entire unit. In fact, another subordinates generally define alternatives and ultimately
reach at consensus determination.
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Effectiveness of the leadership selection and training program at General Electric
General Electric is successful organisation which is dealing with assorted sectors like
energy connectedness, global investigation, aviation, lighting, current, digital, powerfulness,
renewable energy, oil and gas, conveyance, health caring, medical devices, pharmaceutic,
automotive vehicle, life sciences, software improvement and engineering industry and so on. In
fact they have developed their venture which is mainly linked with electricity and are competing
internationally in wide-ranging marketplace like aircraft - engines, manufacturing of television,
financial sector, surgical imaging and generation of power. This has been founded from a survey
that refereed company employing more than 300,00 personnels in over one hundred nations
(Groves and LaRocca, 2011).
Accomplishment of their prosperity and success needs a different as well as diversified
team management wherein main focus is being made on improving the knowledge or education
of specific member working in each department in the different aspects of their product and
production lines. It has been discovered that John F. Welch Leadership Center at Crotonville are
providing GE the proper and correct approach or plan of action in order to groom its employers
so that dynamical ambitions of their business can be attained.
General Electric is having one of the best leaders of world and this is the reason of their
successfulness. Its DNA is relying on the pipeline of talent as well as effectual leadership
programs. This is recognised that referred corporation is offering suitable training prospects and
assure that each people are treated personally by specific chiefs. They try to provide best learning
methods to their work forces so that unique development of merchandises and services can be
created by them (Giacalone and Rosenfeld, 2013). This creation of innovational goods or
servicing helps the company in seeking attention of large number of users. Thus, as a fruitful
result this helps in increasing overall turnover of venture in drastic manner. The mentioned
organisation is evidently grooming their manpower in order to meet their own inner demands and
hence are giving appropriate development programmes for resolving specific issues occurring at
the time of designing goods and services.
This has been discovered from a survey that most of their lecturers are appointed with the
help of extrinsic sources. Apart from this, they are also focussing on quality of recruited leaders.
For maintaining the quality, they commonly used to prepare a report dealing with performance of
each frontrunners. At the same time, members who are being educated with the speech of such
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lecturers are also having responsibility to give their feedbacks whether it is postive or negative.
Afterwards, if any adverse comments is founded, then for that clarification is provided by such
leaders who are leading that guy. Besides this, instant action is taken in order to resolve that
issue and proper guidance is catered to that employee so that he or she become satisfied from
offered leadership. After that final report is being forwarded to the Chief executive officer of
General Electric. If further problems would emerges then those are generally handled by CEO of
refereed organisation. In addition to aspects of leading, GE is catering better mix of management
to their employees, doing research and gain experience for make the company manager training
program successfully for internally to General Electric (Vaccaro and et. al., 2012).
It is necessary for manager is to identifying the advantages and disadvantages of GE style
for catering leadership program. A leadership development strategy help in defining the goals
and expectation for leaders in the firm. This refers to the key capabilities, experience,
competencies for successful leader within an organisation. It will drive with leadership selection,
rewards and various supporting programs which assist in taken candidates for effective training.
While organisation define the culture and strategy for development of effective leadership then it
is required for help in conducting proper training and selection program for their members in
better manner. They are mainly focus and concentrate on leadership development programmes
for target their person. For an organisation, it is essential for them for them is to determine their
goals, targets and objectives for achieving desired one.
Establish set clear and defined leadership competencies - For an organisation, it is
necessary for manager is to clearly state their goals and also analyse their leaders abilities and
skills for reaching with their desired targets and objectives in proper manner (Bryman, 2013).
Companies required to analyse their leaders selection process which help in choosing best
suitable candidates as per their need for the firm. Within an enterprise, senior leaders should
determine the particular leadership abilities and behaviours which required for implemented
effective strategies and policies.
Make procedure for evaluating whole performance and growth- It is essential for
identifying leaders competencies and abilities which can assist in making growth and
development for the firm in proper manner. For selecting of leadership and conduct training
program, both are important task for GE firm because this will help in gaining providing growth
and success if company will follows their instructions (Fahed-Sreih and Morin-Delerm, 2012).
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On the other hand, effectiveness of selecting leadership is one of the crucial factor which directly
impact on firm development and employees performance. Leadership are born not made, it is
danger myth for each company. So organisation require to understand the value of leadership and
core concept of leaders which help in getting goals and objectives in proper manner. The one of
the most important thing needs to evaluate that great leadership development is termed as major
strategy and policy which relates to the organisation culture.
Along with this, leadership development strategy define the set goals and targets of their
organisation. There are various number of assessments which measure each problem solving and
decision making style for emotional intelligence for recognising specific approach related to
innovation. GE using 360 degree assessment carry out the program which can show the learning
of employees which is desired leadership abilities or competencies in better manner.
There are certain organisation which proved to be effective leadership development in
appropriate manner. GE has shifted their leadership development which mainly focus or
concentrate on new CEO and give large emphasis for making innovation and developing new
idea or thoughts regarding their high possibility in proper manner. Sometime firm fails for
develop and make strong future leaders will necessarily show that high skilled employees are
required in the company. At some time, they will suffer with certain loss of strategic impulse and
capitalist assurance. GE provide glance in their management and leadership training sessions
with the help of experienced administration. They are groom their people for reaching and
achieving with their personal internal anticipation and analyse or identify actual issues or
problems for solving it.
After going through these all discussion, it is summarized that GE has been effectively
used their various leadership style for maintaining success and growth within an organisation.
General Electric is having one of the best leaders of worldwide and this is the reason of their
prosperity and success.
Contextualisation of the selection and training program
Training and selection program is playing an eminent role in referred company. They are
hiring large number of participants from all over globe as numerous of divisions of ventures are
present in more than 100 countries. So, the quantity of workers can be decided from this. It has
been examined that more than 300,000 employees are performing in existing department of GE.
Hence, in order to train such a huge manpower, there is necessity of also wider leadership bases
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so that each & every personnels could be trained in correct manner. This has been analysed that
the selection and training programmes of General Electric is very effective and efficient in
nature. They are hiring approx. one third of their chiefs or lecturers from external sources so as
to provide better and updated knowledge to their work – forces. This could be considers as one
of the best approach enforced by them. Those leaders are recruited on the basis of their
qualifications and skills. Again interview of all guides are being taken by CEO of General
Electric. Thus, quality in leadership management is also maintained by this venture in efficacious
way. The key intention of doing the similar is to cater good education to their employees so that
innovational products and services can be generated in higher quantity. This has been recognised
that workers are satisfied from received training and leadership programmes as they are getting
extra ordinary cognition from their chiefs (Bolman and Deal, 2017). Through this, they are
learning newer concepts on regular basis. This is helping them a lot in their professional lives.
Hence, they are applying the same knowledge in creation or designing of completely newer
productions. This as a fruitful outcome assisting in attracting more and more civilians towards
their deliverables since they are offering innovational merchandises. In addition to that, they are
providing goods and servicing at cheaper rate. This offering is also indirectly connected with
conception of better leadership and training sessions. As leaders are inspiring and guiding their
members in effective way, they are also giving their best in accordance to abilities or
capabilities. By this way, the level of productivity is also enhancing day by day. Hence, this is
the reason of supplying products at lower prices. In addition to that, GE is also gaining good
competitive advantages because of yielding unique deliverables. Their trade goods are different
and less expensive in relation to the other rivals. Therefore, customers are preferring them mostly
for purchasing and using their services as well as productions.
But there is also a negative impact of employing leaders from extraneous sources since
large sum of money get wasted in this task. Hence, it is recommended for them to appoint front –
runners from within their country and dependence should not be laid on external assets. If
company would hire leaders or lecturers from their own nation , then they could save huge
amount of revenue and also spend them in another important work (Antonakis and House,
2013). If firm will not concentrate on this prospect of better leading, then their workers would
surely affected by this. First issue might be created regarding solution of occurred difficulties,
that is if leaders are of not good skills they do not have the ability to give answer to their
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followers. In this context, none of the problems of referred organisation might be resolved in
proper manner. Hence, overall performance of company get negatively impacted from this. The
next concern would rises related to the maintenance of healthier environment. If proper leaders
might not be exist in GE then it also influences on the entire surroundings since people become
stressed and as a bad result do not show their interest in doing or manufacturing innovative
products and services. This in turn effects adversely on the overall production level of
corporation since loosing in interest will cause less development and improvement regarding
merchandises. Hence, it can be stated that refereed enterprise should emphasis more on hiring
best and talented leaders in their organisation. This will help them in providing proper and
correct training sessions to their old as well as newly joined work – forces.
CONCLUSION
From the above based report, it can concluded that concept of management and
leadership is very important since with the help of managers & leaders a company used to
operate in smooth manner. Thus, General Electric should also emphasis on similar constructs. In
this regard they ought to hire good and talented frontrunners in their venture so that proper
guidance can be provided by them to each and every employee. This helps them in attaining
success effectively.
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