JACK WELCH

INTRODUCTION
HEREDITY Born to a rail ENVIRONMENT Studied

SITUATION Worked in a highly bureaucratic environment in GE in the beginning. Long term goal of being a CEO. Helped him acquire the practical skills.

conductor and a homemaker. Hence no leadership inherited.

chemical engineering and received his M.S. and Ph.D. This helped him acquire the theoretical skill.

EXTROVERSION
This trait expresses ones comfort level with

relationships.
Early

years-building

confidence

through

sports.
Jack Welch scores high in this dimension as he

was gregarious, assertive, and sociable.

Changed the management system by making

it more informal. Result-increased productivity and positive results.

AGREEABLENESS
This dimension refers to individuals propensity to defer to others. He scores an average in this dimension. An assertive person who believed in a competitive male cultured

environment.
Expanding the broadness of the stock options program from just top

executives to nearly one third of his employees.

Pushing his managers to perform but at the same time rewarding the top

20% with bonuses and stock options.

CONSCIENTIOUSNESS
A measure of reliability. It includes such elements as self-discipline,

carefulness, thoroughness, organization, deliberation (the tendency to think carefully before acting) and need for achievement.
Jack Welch scored a high in this dimension. He had high standards and always strived to achieve his goals. Focus on building a strong intellectual capital by educating and rewarding

performance.
Always searching for innovation and remaining above the curve.

EMOTIONAL STABILITY
Among some of Jack Welchs personality traits, one of them is that

hes emotionally stable. It refers to an individuals' steadiness of mood, their ability to withstand minor setbacks, failures, difficulties, and other stresses without becoming upset emotionally
He believes in taking quick and smart decisions rather than spending

hours over an issue or feeling guilty about firing his employees.

Neuroticism (tendency to experience unpleasant emotions easily)

Jack

is

low

on

Neuroticism

1. He does not believe in taking stress about any small situations. 2. He annually fired at least 10% of his employees, affecting their lives drastically, but that never had an impact on his mind.

 He always maintained productivity and efficiency over emotions. By firing

employees every year, he showed that he wasnt really bothered if someone was from the lower classes or not financially comfortable, but they were not good enough to continue at GE.
Without thinking a lot, he would discontinue operations of those

businesses which he thought werent doing too well.

Even though he fired thousands of employees every year, he would

appreciate the top 20% by rewarding them with bonuses and stock options.

OPENESS TO EXPERIENCE
Welch believed in productivity, therefore took a lot of risks in making sure that

the company is number 1 or number 2.

At GE, informality was brought into the company instead of the nine-layer

management hierarchy.

Brought about changes like Employees, gave preference to efficiency over

emotions of employees.

Had to take difficult decisions like firing the employees, but knew that it was

for the companys good.

Disassembled the earlier management practices put forward by Reginald H.

Jones (previous CEO)

Took a major initiative in dismantling the bureaucracy that existed.

Personality Attributes
LOCUS OF CONTROL

Locus of control basically means the degree to which people believe that they are in control of their fate and there can be Internals Externals Jack Welch was some one who could control his fate . He would even write in his annual performance review that his long term goal was to become CEO. Jack Welch is an internal. Internals are people who believe that they control what happens to them .

Machiavellian-ism
It refers to the degree to which an individual is pragmatic , practical and believes

that ends can justify means

Jack Welch was pragmatic and firm , he encouraged managers of the business to

become more productive and would reward those in the top 20% with bonuses and stock option

He shut down factories reduced p year he would fire 10% of his managers He believed that the company should be either no 1 or 2 in a particular industry. Welch was known for destroying the nine -layer management hierarchy . He was even criticized by critics who said welch imposed pressure on employees

and shutting down of GE units.

Self Esteem
Self Esteem refers to the degree of individuals liking or disliking towards

themselves.
Jack Welch is a man of high self esteem ,he is confident and makes his

decision with ease .

With his high self esteem he even pushed his mangers to be productive. He was confident enough to leave GE and work elsewhere . He is focused and achievement oriented. He set up his goals and became

GE`s youngest chairman and CEO in 1981.

Even though he was criticized he was confident about himself

Self Monitoring
A personality trait that measures an individuals ability to adjust behaviour

to external situational factors.

Jack Welch can be categorized as high on self-monitoring, using sheer logic

and ruthless practicality while making business decisions.

By truly understanding the external factors affecting the companys profits,

and creating a strategy around it, he was responsible for the financial turnaround of GE.
Welch increased the revenue to nearly $130 billion, up from $26.8 billion

prior to his becoming CEO.

Risk Taking
Refers to a persons willingness to take chances or risks.

Jack Welch has a reputation for being a brilliant risk taker in corporate circles. Here are some prime examples:
Welch walked out of his job displeased with his salary and strict

bureaucracy at GE. As CEO of GE, he fired the bottom 10% of his least performing employees at a time when radical downsizing was not common practice. Employed different managerial techniques by moving away from the ninelayer management hierarchy and bringing a sense of informality to the business environment.

Personality Type
Type A personalities are especially suited to act as a support to others, take

on the role of leaders and to give a fresh stimulus for development.

Jack Welch is predominantly a Type A personality.
He is result-oriented, efficient and obsessed with numbers, relying on solid

financials as a barometer for success.

MANAGERIAL GRID
1,9 Country club management 9,9 Team management

Impoverished management 1,1

5,5 Organization man management

Authorityobedience management 9,1

Conclusion
After analyzing Jack Welchs behavioral traits, we conclude that he has a powerful personality and has all the attributes that it takes to be a winner.

Thank You!