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GE's Talent Machine: The Making of a CEO

General Electric has been well known and valued for talent management as well as rising talent
when it comes to leadership. This organization makes sure that this is a key factor when it comes to
their business and succession planning. The main reason for its success is they use human capital at its
maximum and the training and development which is given to their employees created a culture for its

GE had dedicated a HR strategy by implementing new procedures and policies. It also give
importance to meritocracy which leads to succession management and even vitality curve which is a
ranking based system and is controversial to outsiders and complicated, relying on faultless
incorporation of employee feedback, training and coaching. GE lost employees from the 70% range to
other companies such as the BankAmerica who had successfully recruited over 90 GE employees. This is
a part of the GE culture and Welch decided the best way to retain the staff that were leaving GE (the
70%) was to support people to strive to be in the top 20%; he did this by adding motivating factors
which include aspects of the working environment such as rewards, training and also praise, supervisory

And coming to Recruitment, GE has always relied on internal talent to fill positions. Coffin who
created a meritocracy-based culture used a well defined succession management process which became
part of the GE culture. Later Cordiner built the first corporate university, known within the company as
Crotonville which lead to an increase in 10% of pre-tax earnings. And a new corporate system, known as
Session C, was designed to support an ongoing dialog about managers’ career interests and
development needs, with these reviews they crested temporary strategic business units.

Because of GE’s size it could maintain uninterrupted communication with managers; this was
helped by their clear structure that Cordiner had implemented. Immelt added additional channels of
communication, such as conference calls and forums. This allowed employees from different
industries around the world connect with ease.

In this case we came to know that GE followed various successful strategies to survive in the
industry and they are the meritocracy model and performance tracker, motivation which has been given
to employees by giving rewards, consolation prize and their recruiting process etc.,. We all know that GE
is an Innovative company and they are more flexible enough in identifying the opportunities and it also
gives more importance to human capital which they considered as a crown jewel. The Transformational
Leadership Model used in this study suggested that the combination of the four factors resulted in
performance beyond expectations.

Talent Management Over Ambitious
Diversification Replacing existing employees
Brand Recognition Logistics network
Innovative Practices for skill Competitors
development and revenue
Organisation culture

Online business Technology Advancement
Innovative Technology Competitors
Tie up with small players in Challenges in the market
the market
Increasing customer base