Do a Case study on the General Electric Company
Do a Case study on the General Electric Company
hello i have attached the case study below
Case 14-1 General Electric
General Electric Company (GE), incorporated in 1892, is a global industrial conglomerate. General Electric Company. The company operates in the following business segments: power,
renewable energy, oil & gas, aviation, healthcare, transportation, energy,
connections and lighting, and capital, in approximately 180 countries. It is
headquartered in Boston, Massachusetts, and employs 333,000 people worldwide
GE’s mission is “To usher in the next industrial era and to build, move, power, and
cure the world.” Its vision is to focus on businesses that connect to its core
competencies and in which it is a market leader. The company also intends to exit
businesses that are either not in alignment with its core values or in which the
company is underperforming and not likely to improve its competitive position.
General Electric has maintained its reputation as being a great company to work for
because of its commitment to the development of its associates. Up until 2005,
General Electric had used a traditional “forced distribution” rating scheme that
required managers to spread out performance ratings on a competitive basis, with
the bottom 10% of employees facing disciplinary action or termination. Between
2005 and 2015, the forced ranking component of the system was eliminated, but
what remained was a traditional performance evaluation process with a single
meeting between managers and direct reports to discuss performance issues and
provide feedback. In 2016, General Electric decided to completely overhaul its
performance evaluation process and redesign it as a performance management
system that relied on a coaching process that provided ongoing feedback for direct
reports. By setting up short-term goals and having ongoing growth conversations
with direct reports that are not tied to compensation, managers believe that
anybody can rise to the occasion and learn to be a successful performer in their job.
The new performance management system at General Electric uses a mobile app
called PD@GE that enables managers to set short-term performance goals with their
direct reports. Once these are in place, managers are expected to use a coaching
process that involves frequent conversations called “touchpoints” to assess how well
direct reports are progressing toward their goals on an ongoing basis. In addition,
the most important element of the new performance management process is not
the mobile app itself but rather the ongoing coaching sessions and the
conversations that occur within them. Specifically, the touchpoint (coaching) sessions
focus on taking a positive and constructive approach to providing performance
feedback, and the issue of performance-based pay increases is not typically part of
these conversations. At the end of each year, managers and their direct reports still
complete a formal summary report that is then used as the basis for merit pay
increases, promotional opportunities, and job performance improvement plans for
the coming year.
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