Page 282 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 16: International HRM

14. Global corporation has corporate units in .............................. that are integrated to operate Notes
as one organisation worldwide.
(i) One country

(ii) Two countries
(iii) Isolation
(iv) number of countries
15. An employee who is a citizen of one country, working in a second country and employed
by an organisation headquartered in a third country.
(i) Host
(ii) Base

(iii) Second
(iv) Third



Case Study General Electric

oday, General Electric succeeds in dozens of diverse businesses, and is continuously
at the vanguard of change. Some years ago, however, in locations throughout GE,
Tlocal managers were operating in an insulated environment with walls separating
them, both horizontally and vertically, from other departments and their workforce.
Employee questions, initiatives, and feedback were discouraged.

Determined to harness the collective power of GE employees, create a free flow of ideas,
and redefine relationships between boss and subordinates, Jack Welch, CEO, General
Electric, created a new corporate culture. It's key elements are:

1. Redesigning the role of the leader in the new economy: creating followers through
communicating a vision, and establishing open, caring relations with every employee.
2. Creating an open, collaborative workplace where everyone's opinion is welcome.

3. Empowering senior executives to run far-flung businesses in entrepreneurial fashion.
4. Liberating the workforce; making everybody a participant through improving
vertical communication and employee empowerment.

The Need for Change

In the new knowledge-driven economy, Jack Welch, CEO, General Electric, "viewed this
as anathema. He believed in creating an open collaborative workplace where everyone's
opinion was welcomed." He wrote in a letter to shareholders: "If you want to get the
benefit of everything employees have, you've got to free them - make everybody a
participant. Everybody has to know everything, so they can make the right decisions by
themselves."
Improving Connectivity: Creating a Seamless Link between Strategy, Management, and
Employees Determined to harness the collective power of GE employees, create a free
flow of ideas, and redefine relationships between boss and subordinates, Welch developed
Contd...

LOVELY PROFESSIONAL UNIVERSITY 275