Contemporary Business 14th Edition by Louis Boone, David Kurtz

تمرين 27

Jeff Immelt Tries to Lead GE in a New Direction GE, once considered one of the nation's most recognizable and respected firms, has fallen on hard times. The company, which manufactures everything from toasters to washing machines to jet engines, has been forced to pull the plug on various ventures in order to save itself. The man in charge of the power at GE is its CEO, Jeffrey Immelt. Over the years, GE has grown into a conglomerate, straying far from its roots as a manufacturer of electrical appliances. Its GE Capital unit, which accounted for more than half of the company's overall profits, is now burdened with a huge number of bad loans. GE's stake in NBC Universal and the NBC network will likely be sold to cable operator Comcast. But shareholders and others are asking, "Why was GE involved in these businesses in the first place?" Jeffrey Immelt has vowed to change the direction of the company. "GE must be an industrial company first," he notes. "We need a new strategy for this economy. We should clear away any arrogance, false assumptions, or a sense that things will be OK just because we are [in] America." Financially, GE can't just walk away from its GE Capital commitments.But Immelt has promised to reduce its size and renew the firm's focus on its industrial roots, including a significant investment in clean energy projects. He takes his leadership role, as well as the leadership role of GE itself, very seriously. "We need to invest more in innovation. We need to target this innovation toward fulfilling big needs like clean energy," he says. "Nothing of consequence is accomplished without leadership."Immelt observes that today's leaders must adopt a democratic style that encourages input from employees. "Twenty-first century leaders listen. They use external inputs as a catalyst. They put their ego in check. They ask more questions than they answer. They welcome dissent and debate, and are constantly seeking more intelligence." Immelt has been spending his weekends listening to the 185 officers of GE-one at a time. The weekend sessions create personal connections with his team.He also points out the importance of delegating in order to innovate more easily and regain a competitive standing in the marketplace. "GE is a big organization. The problem with size is that it can be too slow. At GE, we must push decision-making down in the organization and we must delegate more."Immelt has demonstrated his commitment to GE, his employees, and the firm's shareholders by declining his bonus two years in a row. This doesn't mean he isn't paid well-he still earns more than $5.5 million per year. Immelt is determined to regain the respect for his firm that it once enjoyed. As a leader, he understands this cannot be accomplished without inspired employees. "Leaders must motivate with vision," he observes. His vision includes a much brighter light for GE.
-Do you think Immelt is an effective motivator? Would you want to work for him? Why or why not?