MASTER OF BUSINESS ADMINISTRATION AWARDED BY NOTTINGHAM TRENT UNIVERSITY ASSIGNMENT SUBMISSION FORM Note: Students must attach this page to the front of the assignment before uploading to WECSERF. For uploading instructions please see the help file online Name of Student: Zubair Saleem Student Registration Number: KL102047 Module Name: Managing and Leading Strategically Module Number: WEC-MBA-11-0406 Assignment Title: Critical Analysis and Implementation of Leadership theories and Jack Welch's Leadership Style Submission Due Date: 13 December, 2009 Student’s Electronic Signature: Zubair Saleem Plagiarism is to be treated seriously. Students caught plagiarizing, can be expelled from the programme Page 0 of 39
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
MASTER OF BUSINESS ADMINISTRATION
AWARDED BY NOTTINGHAM TRENT UNIVERSITY
ASSIGNMENT SUBMISSION FORM
Note: Students must attach this page to the front of the assignment before uploading to WECSERF.
For uploading instructions please see the help file online
Name of Student: Zubair Saleem
Student Registration Number: KL102047
Module Name: Managing and Leading Strategically
Module Number: WEC-MBA-11-0406
Assignment Title: Critical Analysis and Implementation of Leadership theories and Jack Welch's Leadership Style
Submission Due Date: 13 December, 2009
Student’s Electronic Signature: Zubair Saleem
Plagiarism is to be treated seriously. Students caught plagiarizing, can be expelled from the programme
V
Page 0 of 27
Assignment Form MBA Jan04
1.0 Introduction……………………………………………………………………
2.0 Three Duties of Manufacturer ……………………………………………….
2.1 Consumer Production And Marketing ……………………………………
2.1.1 The Contractual View………………………………………………
2.1.2 The Due Care View…………………………………………………
2.1.3 The Social Cost View………………………………………………
2.2 Marketing Ethics of BD…………………………………………………
3.0 Sole Control, Patents and Monopoly of Becton & Dickinson…………………
3.1 Four Major Principals of Ethics…………………………………………
3.2 Is the Manufacturer Legally, Ethically responsible ………………………
4.0 Who was Responsible for Maryann Rockwood’s Injury…………………….
5.0 GPO’s and B&D’s Monopoly and Ethics …….……………………………..
6.0 Conclusion…………………………………………………………………….
7.0 References………………………………………………………………………
EXECUTIVE SUMMPARY
Page 1 of 27
In different ages of the past we have innovated ideologies, means and methods in almost all
fields which is based on 3 Ps i.e. People, Product and Profit. Leadership to manage, change,
innovate to increase competitiveness, performance and increase in desired outcome is on of those
great ideas which gave us opportunity to be able to motivate, communicate, change, innovate,
manage and lead the teams and groups or societies. The main theme comes to make the followers
able to put their combined effort to gain a competitive edge in today’s global competitive era.
Dr Francis “Jack” Welch Jr. is one of our great leaders of this era who worked in General
Electric for almost 41 years from 1960 to 2001 and remain CEO for 20 last years. He gave his
life to learn, teach and lead the organization and its employees and by increasing others abilities
and combined effort he turned company around almost 10 folds.
Though we have questioned ourselves that what qualities and leadership style he had or he
applied to achieve the desired success. The traits theory and its comparison to Jack Welch’s
leadership Qualities proved that though Trait theory is not highly considered in leadership as a
born leader or great man concept. But Mr Jack Welch increased the and improved his traits
through out his life and career in GE as well as he say’s “When I stop learning something new
and start talking about the past versus the future, I will go”. He focused the past and forecasted
the future while his second competitive trait was “accepting the Reality and Change” through
which he achieved the confidence of his followers and implemented Sig Sigma in GE.
In practical organizations leaders can never base on only the characteristics they have but they
have always tried to change and innovate the new ideas and even changed their leadership style
and behavior to its employees according to difference in situations. Welch believed to learn and
change not only the strategies when needed but he also changed his leadership style according to
the changing situations following the Hersy and Blanchard’s model. Welch’s aim was to move
and push the employees towards Delegating Style of this model which he covered in his 20 years
These are some of those important characteristics which a leader must have when dealing with
the teams and organizations. The styles of leadership differ with the difference in organizations’
corporate strategies, situations and conditions. Some of these main leadership styles are as given
below.
Page 9 of 27
"It is the real work of leadership" says HBS professor Nitin Nohria."Great communicators have an appreciation for positioning" says John Kotter."Your behavior, your action and your decision are also ways of communicating and leaders have to learn how to make it consistent" says David Thomas.
C o m m u n i c a t i o n a s a K e y
Nitin Nohria reflects Winston Churchhill's defeat in Gallipoli during world war I with 100,000 casualities but he took complete responsibility, the setback like this could be paralyzing but he was able to move forward to lead his country to victory in world war II.Jeff Bezos also says "it as one of the key element for a good leader"John Kotter stops to tell hard truth which demoralize the company.
T e l l i n g t h e H a r d t r u t h
Moss Kanter illustrates,"Leaders must wake people out of inertia. They must make them excited to achieve somethig that do not exist yet"Kotter says "Empowerment is also vital to manage change"Kanter observes that personal passion is not enough but your followers must also be believers"Kotters says to make people competitive to have progress in new era.
C o p i n g W i t h C h a n g e
"Knowledge is Power" while Joe Badaracco says "What your employees do is more challenging"David Thomas focuses that "Share knowledge is more important then retaining it"Nitin says "People do not follow your smartness but they prefer the leader who shares and who allows to share"Kotter says "A leader need enough understanding to fashion intelligence strategy"
T h e R o l e O f K n o w l e d g e
Kotter notes that " Like evolution from industrial age to information age, recognition of new opportunities are highly prized"Nohria urges Gandhi " Creativity not always take the most obvious form"Rosabeth illustrates that "If you fail to see the elements, someone else will see them and you will lose the game"David Thomas notes "Leaders must learn from others creativity"
This style of leadership is used when the task and relationship both of the behaviors are high, in
which most of the direction is given by leader and the followers are being encouraged. This style
is also termed as coaching approach and used in the situation when followers are willing to put
their efforts and are motivated but leader feels lack of maturity, ability and knowledge required
to accomplish the tasks.
Participating Style
This style of leadership with high relationship and low task behavior decision making is shared
between leaders and followers. Leader’s role in this style of leadership is to facilitate and
communicate with high support of leader to its followers with low direction. This style of
leadership is used when followers are capable of doing their tasks but feel unsecure and
unwilling and leader try to communicate to increase their participation and to motivate them to
achieve the combined goal of the group.
Delegating Style
When the relationship and task both behaviors are low in organization then leaders use this style
of leadership. In this leadership style a leader identifies the problems and issues but most of the
responsibilities are being shifted to followers by empowering them. This style is used when
followers are highly competitive and mature.
4.0 JACK WELCH’S LEADERSHIP QUALITIES
Jack Welch as the leader of Century is one of the personality which can be viewed but our
intentions are much more less than him and the way he think and behaves might be far away
from our minds but I have analyzed him on the basis of some theories and whatever I have seen
and learned in my career which might miss a number of points and I believe I might judge him
not as he should be. Some of his characteristics and leadership qualities are as contrasted below;
Page 17 of 27
Jack Welch and His Personal Traits
The traits of a person can be seen or felt but can only be said positive or negative if you compare
them with others or thoughts of others. The traits theory is though thought to come next to the
situational concept of leadership but it is very important to know that what was the reason which
made Jack Welch to withstand in GE and what were the traits which made him to take the perfect
decision with no place for mistakes.
Jack Welch always tried to learn and motivate to learn and this trait of Welch was not only
motivating but was pleasing to his followers and if they stopped, Welch pushed them. While he
by himself not only served for GE but through out his life was learning and accepting the new
innovations. He completed his Ph.D and then came to job, When Reuban Guttof asked him to
wait by giving him some facts, he accepted which shows that he was not an aggressive person
but even today his behavior shows that he is very nice person with pleasant nature.
He believed in playing while he says “Study whatever you think, you are better in but chose that
job which you like and enjoy”
We are not so sure about his childhood so can not say what he was when he was a child because
his traits can only be compared with that age to see that he had charismatic traits or he
transformed but most of authors believe that he possessed both the Qualities and he was not only
charismatic leader but he transformed and accepted the truth of need of willingness, change and
innovation.
Empowerment Approach of Jack Welch
Jack Welch says in his book “Jack: Straight from the Gut” that, “My main job was developing
talent. I was a gardener providing water and other nourishment to our top 750 people. Of course,
I had to pull out some weeds, too”
Page 18 of 27
While during his career also he emphasized to empower the employees and to improve their
talents whose living example is Jaffery R. Immelt who is current and successful CEO of GE after
Jack Welch. This leadership quality reflects the delegating style of leadership through which
Jack Welch believed to empower the people who posses the skills and abilities and are able to
work. Like Jaffery R. Immelt was one of 20 candidates to replace Jack Welch as CEO but Jaffery
was found to be more willing to serve his life for GE which was appreciated by Jack Welch.
He says in a video with HBS “When I stop learning something new and start talking about the
past versus the future, I will go” and the same concept he implemented in GE in which during his
third phase of leadership he studied and implemented Six Sigma while this concept leads us to
the telling style of Hersy and Blanchard’s contingency model. This style of leadership he also
applied in GE and encouraged the employees to learn to attain the competitive edge.
He not only believed to attain the confidence and willingness of his followers but he emphasized
on choosing the right person on right place and at right time as he quoted “If you pick the right
people and give them the opportunity to spread their wings and put compensation as a carrier
behind it you almost don’t have to manage them”
Change Agent Approach of Jack Welch
Jack Welch quotes in his book that, “Willingness is strength, even if it means plunging part of
the company into total confusion for a while” and “Change before you have to”
“An initiation is long lasting, and it changes the fundamental nature of organization. Regardless
of the source, I became cheerleader. I followed up on all of them with a passion and a mania that
often veered towards the lunatic fringe”
Intentions Towards Learning Organization
Jack Welch emphasized on learning not only during his career but even after that as he knew that
still not only the employees of General Electric but almost all business personnel and his words
are lesson for them. This is because people are opportunists in nature and they have followed
their leaders.
Page 19 of 27
Jack Welch was a realistic leader and he motivated his employees towards innovation and he
always tried to achieve the delegating style of leadership given by Hersy and Blanchard as he
says, “I've learned that mistakes can often be as good a teacher as success”.
Though leaders mostly follow the “Carrot and Stick” approach but as we have analyzed Jack
Welch, he only shown them Carrot and tried to hide the stick which was a motivating factor for
his followers. Like He says “Control your own destiny or someone else will” in which also he
mentions to control your destiny but at the same time a hidden stick is there which he is
motivating that he don’t want to apply.
5.0 MY OPINION ABOUT JACK WELCH’S LEADERSHIP STYLE
Before giving any comments on Jack Welch’s personality I would like to share that I worked for
four years in a textile industry and followed by four managers I was the only person in general
shift who had to satisfy them and provide them all the information whenever and wherever they
need. But one of the senior manager who was on top post, he used to take me when he will go
Page 20 of 27
back and in the Car, he used to ask me some things and I was telling everything that what is
happening with me in the industry. Though he was not giving me any thing but from my heart, I
still respect him. He used to respect the employees though sometimes he got angry but only to
those who were on key posts.
I have seen Jack Welch in the same category and his behavior since his start of career being an
engineer was the same. Though he got angry when was disappointed by the company but he
realized his mistake and did not leave the company but his learning cycle never stopped. During
his 41 years career he covered all those abilities and leadership qualities which a business person
always dreams.
Though some of the authors have criticized him for his less concentration on financial matters
and Jack Welch also says in his book “Straight from The Gut” that “a CEO’s primary social
responsibility is to assure the financial success of a company”. A. Symonds said that “ROIC
remained same during his last 10 years” but I believe that in a practical organization if we
consider and follow money matters, we may never satisfy our employees and I intend that Mr.
Jack Welch also believed so and he emphasized on employee satisfaction more than money.
Though we can never deny that he did not benefited the company as we have seen because of his
leadership, the company achieved the value of $286 billion from $12 billion in just years which
seems to be impossible but “Intentions lead the success and success leads success”
He says that from the People, Product and Profit, a leader must focus on the People and other 2
Ps comes after. I have seen in my career and through the studies that those leaders who are
people oriented, have always made more lean business structure and have faced less problems in
the organization.
Jack Welch also believed and during his first and second phase of his leadership, he eliminated
the non-working and non-value added business units from the organization but he did not kick
the employees out of the organization which shows his intention to go for lean business structure
but though he believed to retain the employees as it would be a de-moralizing and de-motivating
factor.
Page 21 of 27
Some of the authors also said that Jack Welch did not focus on Quality departments but as he
believed in Six Sigma so we may never deny his intentions towards high achievement of Quality
products with least defects.
His intention towards a learning organization gave him a competitive advantage to achieve the
desired goal by putting whole team effort rather than just managing and controlling his
followers. As he says “An organization's ability to learn, and translate that learning into action
rapidly, is the ultimate competitive advantage”
6.0 CONCLUSION
Jack Welch can be said confidently as one of the great business leaders of the new era. His vision
to serve for the company was like his life and goal of his life as he says in his quotes “Vision
without action is a dream. Action without vision is simply passing the time. Action with Vision
Page 22 of 27
is making a positive difference.” While his career, findings and efforts for General Electric
reflect if from his actions and business strategies.
He leaded the organization with passion and his empathically generated lean business
organization while keeping the employers confidence, support and talent improvement in mind.
He determines it as “The team with the best players wins.” And his realistic thinking gave a
competitive edge to the organization and his ideology, traits and behavior today reflects in the
organization. Today GE works as he set the organization on the basis of realistic and competitive
thinking as he quotes “If you don’t have a competitive advantage, don’t compete.”
His traits shows that he was also a charismatic leader but at the same time he was
transformational leader and followed the situations as he turned the company around in three
different stages as were required under different situations. While his People oriented leadership
is an example for all leaders to understand the value of employees who are the most important
asset of organization and without which organization can never ever succeed. Welch argues “In
the end, all business operations can be reduced to three words: people, product and profits.
Unless you’ve got a good team, you can’t do much with the other two.”
His leadership gives us lesson to show empathy and admire the employees from our actions like
he said “If your actions inspire others to dream more, learn more, do more and become more,
you are a leader.”
If we look at his traits, we may not say that he was a born leader because his financial
performance which is being criticized by Symond is an example and shows that a born leader can
not leave any stone unturned while at the same time we may take his approach as more towards
morale and motivation of employees in which sometimes financial matters of an organization
may act as barrier which was in against of his leadership approach.
REFERENCES
Primary Sources
Page 23 of 27
Carole A. Symonds, 2005, ‘Jack Welch Missed His Opportunity with GE’ Global
Financial Publishing, US.
Daniel Goleman at el. 2001, Primary Leadership: the Hidden Driver of Great
Performance, Harvard Business School Publishing, US.
Fred Fiedler, 1967, A Theory of Leadership Effectiveness, McGraw-Hill, New York.
Jack Welch and Suzy Welch, 2005, Winning, Harper Collin Publishers, New York
Jack Welch, 2001, Straight from the Gut, Warner Books Inc, New York.
Jaffery A. Krames, 2002, The Jack Welch “Lexicon of leadership”, McGraw-Hil, New
York.
James A. Baker at el., 2000, What is A Leader, American Academy of Achievement, US
Joan Symonds, 2005, Financial Expert Challenges Jack Welch and Jaffery Immelt’s
financial performance at GE, Press Release, Newswire, May 20, 2005
Kevin Maney, 2001, What is Leadership: America Shows Amazing Resilience, Press
Release, USA Today, October 30, 2001s
Kurt Lewin, 1939, Patterns of Aggressive Behavior in Experimentally Created Social
Climates, Journal Of Social Psychology.
Matt Murray at el., 2002, GE’s Jack Welch Meets Match in Divorce Court, The wall
street journal, US.
McCall, and Lombardo, 1983, Off the track: Why and how successful executives get
derailed, Greenboro NC, Centre for Creative Leadership.
Page 24 of 27
NTU, 2009, Handbook of Managing and Leading Strategically, Nottingham Trent
University, Malaysia.
Paul Hersey and Kenneth H. Blanchard, 1988, Management and Organizational
Behavior, Englewood Cliffs, NJ: Prentice-Hall.
Paul Hersey, 1984, The Situational Leader, Escondido, CA: Center for Leadership
Studies.
Richard Chandler and Jo Ellen Grzyb, 2003, Leadership, Are Leaders Born or Made?,
Impact Factory Publishing, New York .
Robert Slater, 2003, 29 leadership secrets from Jack Welch, 2nd Edition, McGraw-Hill,
New York.
Stogdill, R.M, 1974, Handbook of leadership: A survey of the literature, Free Press, New
York.
US Army, 1973, Military Leadership, US Army Handbook, US.
Secondary Sources
Brian Cronk, 2001, What is A Leader, Article, Online, Retrieved on 2nd December, 2009
from http://clearinghouse.missouriwestern.edu/manuscripts/583.php
Deborah Blagg and Susan Young, Harvard Business Faculty Perspectives, Alumini.HBS, Online, Retrieved 20th November 2009 from http://www.alumni.hbs.edu/bulletin/2001/february/leader.html
Essortment.com, 2007, Styles of Leadership, Online, Retrieved on 10th December, 2009
from http://www.essortment.com/all/leadershipstyle_rrnq.htm