General Electric: Jack Welch’s Second Wave (A)

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Publication Date:
June 28, 1991

Source:
Harvard Business School

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By the mid 1980’s Jack Welch had completely transformed General Electric with more than 300 divestitures and acquisitions since the beginning of the decade. Welch insisted that his business units be number one or number two in their markets, and have the strength of large companies and the leanness and agility of small ones. Yet, although Welch had succeeded restructuring GE the way he wanted, employee morale was low. The case focuses on Welch raising employee productivity by continuing to remove layers of management and by allowing employees to have a greater voice in their own affairs.

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General Electric: Jack Welch’s Second Wave (A)

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