In today’s competitive business world, organisations are facing fierce competition in industries, and they implement strategic policies to gain a competitive advantage over others. Effective leadership is a crucial requirement in modern corporations since it contributes to their success (Yukl, 2012). Organisations expect their senior managers and executives to be effective leaders, and they focus on improving their skills by investing in specialised leadership programs. This essay will analyse the leadership selection and development program at General Electric (GE) which is an American multinational conglomerate company. In 1892, the firm was incorporated in New York. The Boston, Massachusetts headquarter based enterprise operates in different industries including Aviation, global research, financial services, automotive, engineering industries, transportation, oil and gas, lighting and others (GE, 2018a). This essay will evaluate the difference between leadership and management and analyse the behavioural theory of leadership. The essay will examine the effectiveness of leadership selection and training program which is implemented by General Electric. Further, the essay will contextualise the selection and training program of General Electric based on the previous theoretical discussion.
Leadership and management practices assist employees in becoming more productive which is crucial for organisational success. Effectiveness of leadership and management strategies assist in improving employees’ productive performance which provides a competitive advantage to corporations. Leadership is defined as an art of leading and motivating a group of people in order to direct them towards achieving common objectives. A leader is a person in a company who has authority and control in a company over his/her followers, and he/she influence others and their work (Yukl, 2012). A successful leader is passionate, and he/she creates opportunities for his/her followers to trade along and operates in such a way that the actions benefit people around him. Effective leadership is referred as activities that are performed by the leader that motivates, inspire and develops followers in order to achieve common organisational objectives. Effectiveness of leadership is determined when all the employees or followers are satisfied with their job. The requirement of good leaders is increasing between companies, and they are developing through a never-ending procedure which includes education, training, self-study and experience. (Spillance & Healey, 2010) Though leadership can be learned, the knowledge and skills of a leader can be influenced by his/her traits or attributes such as values, ethics, beliefs, and characters.
Management is defined as a multi-purpose structure which including various practices of managing the business, workers, and working environment. The process of management comprises planning, organisation, leading, directing, staffing and controlling in a corporation (Robbins, 2011). Managers play a significant role in effectively performing business activities. They are responsible for getting things done in a company. After assigning work of each employee, the respective line managers generally help them in achieving such tasks or objectives by supervising or directing them. Managers systematically coordinate and organise things in an effective way that result in achieving common organisational goals (Monnappa, 2017). Managers are referred as a number of people in a company such as personal manager, line manager, and others. They are accountable for ensuring that the effective performance of employees is achieving the objectives which are set by shareholders or directors in the corporation. Management is considered as an act of getting people together in a company to accomplish the desired objectives and goals by using available resources efficiently and effectively (Robbins and Judge, 2013). Many of the managers are leaders as well but only if they are responsible for motivating employees and carrying out the activities of leadership responsibilities which include motivation, communication, providing inspiration, encouraging and giving guidance.
There is a significant difference between management and leadership in terms of role, objectives, followers and others. According to Yukl (2012), leadership is considered as a skill of leading people in order to achieve common organisational objectives. The leaders focus on influencing and motivating others to contribute towards the success of a corporation. Management is considered as an art of systematically organising and coordinating employees of a firm in an effective manner. Managers perform the activities of directing and controlling people in a firm in order to coordination and harmonise them towards accomplishing common organisational goals. The main basis for leadership is trust between the leaders and followers. The employees are not obligated to follow the instruction of leader, but, their relationship is based on mutual trust and benefits. Therefore, they follow the actions given by the leader (Nkomo, 2011). On the other hand, the basis for management is control over employees. As per Robbins (2011), the manager has the authority over employees, and he/she can give them directions which they are obligated to follow. The relationship between manager and employees is formal, and the workers did not have any choice but to follow the instructions given by the manager.
Effective leadership focuses on inspiring the employees in a company in order to encourage them to achieve common organisational goals. Management focuses on managing employees rather than motivating them; managers implement plans, organise work and direct the employees to emphasis on managing activities in a firm (Lunenburg, 2011). The leaders have the power to influence others in order to achieve common organisational goals, whereas, leaders have the power to rule over employees. The leaders focus on encouraging change in between employees since it promotes innovate approach between them. Organisations use an innovative approach to improve the efficiency of their product and services and reduce the wastage which provides them a competitive advantage over others. Management approach focuses on bringing stability in the organisational processes in order to improve the effectiveness of the current procedures (McCaffery, 2010). Leaders generally adopt a proactive strategy in which they attempt to reduce the chances of occurrence of a challenging behaviour which might negatively impact company’s business. Managers, on the other hand, adopt a reactive strategy that is used once the challenging behaviour has occurred.
Leaders are people-oriented, and effective leaders encourage people by understanding and fulfilling their requirements. Managers are task-oriented, and they emphasise on completing the tasks or achieving organisational targets at any costs. Effective leaders simply look at problems and develop new and creative solutions by using their charisma and commitment towards the work. Managers’ approach to tasks based on creating strategies, policies and methods for smooth completion of tasks (Stacey, 2012). They empower employees by soliciting their values, views and principles because they believe that this combination reduces inherent threats and assist in achieving success (Robbins and Judge, 2013). Managers ensure that the current procedures implemented by the company are being appropriately followed by the employees, whereas, leaders work with employees and encourage them to find new creative solutions for the solutions. Effective leaders assist in increasing employees’ productivity which contributes to improve company’s performance and provide them a competitive advantage (Hallinger, 2013). Therefore, modern corporations focus on implementing effective leadership selection and training programs for their managers in order to make them better leaders since it provides corporations a competitive advantage.
Leadership is described as a procedure for influence people in order to aid and support them to accomplish common objectives. There are three basic principles which are involved in different leadership styles including knowing yourself, being an ethical, open and caring person and participating in the development of community and people by acting upon own passions and commitments (Chemers, 2014). Following is the analysis of the behavioural theory of leadership which is becoming popular among modern corporations since they use this theory to improve the leadership abilities of their senior level executives.
The Behavioural theories of leadership focus on the specific behaviour of leaders which assist them in becoming effective leaders. This theory provides that leaders are made, not born. As per this theory, people can learn to become better leaders by observation and teaching programs (Derue, et al., 2011). Leaders have the option to become successful by taking action towards studying in-depth about the behaviour that contributes towards success or failure of leaders. The leaders can analyse their past behaviour to predict future performance which results in making them effective leaders. The theory focuses on a leader’s behaviour by analysing whether he/she is employee centred (people oriented behaviour), or job cantered (task-oriented behaviour). The leader who is task oriented can find leadership to be quite overwhelming since he/she just focuses on completing the tasks and achieving the targets at any costs. In this approach, the targets are achieved by the leader, but he/she failed to maintain effective relationship with employees (Gavetti, 2012). Due to lack of employee relations, the leader is not able to find the potential of employees, and he/she failed to utilise such potential to find creative solutions for organisational problems.
The behavioural theory of leadership is significantly popular between modern corporations as more and more studies prove that behaviour of leaders directly influences their effectiveness (Westphal and Zajac, 2013). The corporations that implement behaviour theory of leadership focus on building the skills of their senior executives rather than hiring candidates with appropriate traits. For example, Coca-Cola has implemented behavioural leadership theory in order to improve the behavioural qualities of its senior executives and make them effective leaders. The firm has established Coca-Cola University (CCU) in order to provide company’s education curriculum to its employees (Coca-Cola, 2012). The university offers a wide range of courses to employees through field training, classroom training and e-learning which assist them in developing both personally and professionally. The learning program focuses on improving employees’ leadership and others skills which provide them different growth opportunities. The firm has also implemented Leadership Excellence and Accelerating Performance (LEAP) which is a leadership development program that focuses on improving the skills of senior level executives by providing them appropriate training (Banerjea, 2014). The corporation believes in building the skills and behaviour of leaders rather than hiring candidates with specific traits.
In recent years, the popularity of behaviour theory has increased due to the popularity of training and development programs. Organisations focus on hiring individuals with high qualification and creative talent, and they provide them training to improve their leadership skills. Another example is Amazon which is a leading global e-commerce website with more than half a million employees worldwide. The firm has implemented an intensive, month-long training and development program for its employees prior to their hiring (Hoppe & Reinelt, 2010). The company also prepays 95 percent of tuition for its employees at fulfilment centres for the courses of their demand. Amazon has also established a “Virtual Contract Centre” which provides the facilities of training employees for work from home (Thottam, 2018). The main motto of company’s training and development program is to make their employees owners from day one. The corporation focuses on investing in its employees to make them future leaders by providing opportunities to learn, grow and become better leaders (Amazon Jobs, 2018). The firm did not focus on traits of its candidates; instead, it focuses on building their skills to make them better leaders for tomorrow. The continuous success of these programs proves the effectiveness of behavioural theory of leadership and its popularity among modern companies.
General Electric (GE) was founded in 1892 with the merger of two of the greatest innovative corporations at the time: Thomas Houston Company and Thomas Edison’s Electric Company (O’Boyle, 2011). The firm is a conglomerate but the five key business sectors in which the company operates in include technology infrastructure, energy, human and business solutions, finance and media. Currently, John L. Flannery is the CEO and chairman of the corporation. The enterprise focuses on implementing effective programs for its employees to improve their productivity and performance which assist the corporation in achieving organisational goals. During the recruitment and selection process, the HR managers of the firm focus on hiring employees with appropriate qualification and skills. The traits of the candidates are not analysed by the HR executives since they focus on improving workers’ skills by implementing effective training and development programs (Blumenthal, et al., 2012). Similarly, the enterprise has implemented specialised training and development programs for its senior managers to improve their leadership skills since it assists in improving company’s growth.
GE’s has implemented a world-renowned leadership development programs in order to provide unparalleled career opportunities to its employees. The program is considerably effective since it implements a systematic approach to improve the skills of firm’s employees. The programs offer services to both entry-level graduates and experienced professionals. The programs provide training through different programs such as classroom training which is combined with real-world experiences (GE, 2018b). The trainees visit and work in different locations to gain experience, and it exposed them to senior leadership issues. The firm hires specialised trainers in the field that assist employees by maximising their leadership potential at every stage of their professional journey. The success of the training programs can be seen by the strengthened skill set and new opportunities that they create for the employees and improvement in the delivery of services to customers and society. The corporation has also implemented Experienced Commercial Leadership Program (ECLP) for its employees that have MBA degree and work experience in the fields of marketing and sales (Goldmeer, et al., 2015). The program includes a two-year rotational course that provides different opportunities to the trainees, and they receive world-class commercial and leadership training from the experts. The program contributes to the company’s commitment towards becoming “gold standard in marketing”.
Due to fierce competition in the industry, GE has implemented specialised leadership training and development programs for its senior managers in order to improve their leadership abilities. Effective leadership skills assist managers in deals with various managerial and administrative issues that are necessary to be addressed in order to sustain company’s development. According to Kosur (2015), the company has implemented a five-year development program for its executives that assist them in building their skills and improving overall knowledge. The company runs the program from the town of Fairfield, Connecticut. The building is carefully hidden behind a security gate and rolling hills. The training program assists employees in becoming company’s next CEOs, CFOs, presidents and vice presidents. This program was started by the enterprise in 1910 in order to train the next generation corporate leaders of the firm (Joseph and Ocasio, 2012).
The corporation has hired carefully selected specialists who work tirelessly in order to provide training to the company’s next executives. The program immerses the trainees into real-world audit, operations, and technology jobs. Officially, the training program is called Corporate Audit Staff (CAS), but internally it is known as Green Beret program. Every year, around 200 to 300 GE employees joined the training program, but, only 2 percent complete the entire process. The trainees who complete the entire process lands an executive level position in the firm. As per Jeffrey Immelt, former CEO of the company, the program provides a great training ground to young employees (Kosur, 2015). They can utilise this program to improve their skills in order to gain an executive level position in the firm. The trainees go on audits, develop their own apps, design their own systems and perform various other activities to learn how the operations work in the enterprise. The training program mainly consists of young trainees since the training specialists believe that they have the capabilities to improve their skills and assist in sustaining company’s development.
The program has a substantially difficult entry process which ensures that only the brightest and creative employees are entered into the program. The program only accepts the application of one or two percent of the applicants. At the initial level, the employees are put through a pilot program for four weeks (Kosur, 2015). The pilot program assesses the candidates’ leadership skills and their ability to think critically. The selected applicants are sent to remote locations where they work on a number of unfamiliar projects, audit, or IT roles. The trainees perform these actions along with veteran managers and executives who share their experience with the trainees along the way in order to improve their ability. The initial stage four week program focuses on testing the abilities of the candidates by forcing them to work outside their comfort zone (Rothwell, 2010). After the pilot program, the teachers evaluate whether the candidates have a desire to learn and to apply for rigorous analytics and technology.
Applicants who have proven their abilities in the pilot program and who desire to further improve their leadership and critical thinking abilities are asked to make a two-year commitment to another program. The applicants are sent to various GE locations around the world in between four months of the two-year program. In this program, the participants are given feedback by the specialists on a daily basis. The candidates also go through formal appraisals for six times in a year. Only a fraction of the candidates completes the entire Green Beret program which lasts for five-years. As per Kosur (2015), more than half of the candidates join the post of audit manager after the third year, and around 20 percent of them are accepted as senior audit manager position after four years. Around 2 percent of the candidates who complete the entire five-year program earn an executive audit-manager-level job at GE after the fifth year.
The effectiveness of the program can be evaluated by the number of senior-level executives who have participated in the CAS program. More than 80 percent of the top CFOs of GE have participated in the CAS program which proves its effectiveness (Kosur, 2015). Former vice president and CFO of the firm, Jeff Bornstein, was one of the candidates who completed the entire CAS program. Failure in non-completion of the program does not end an employee’s career in GE. The candidates who failed to complete the program are also hired at the executive places of the firm. Generally, the participants who complete two years in the CAS program receive at least two job offers by the firm which makes the process of recruitment very straightforward. The top-level executive of GE provides that the success of the program depends upon how the employees are treated during the program. According to Khozema Shipchandler, vice president of GE’s corporate audit staff, other corporations treat their employees badly due to fierce competition during their training and development program, and they put pressure on them to improve their skills. On the other hand, GE’s program focuses on building team spirit and leadership skills among employees without putting them under massive pressure. The corporation also offers jobs to candidates who did not go further than two years in the CAS program. These policies assist in the effectiveness of CAS program and provide highly qualified and talented leaders in the firm which contributes to the sustainable development of General Electric (Houghton and DiLiello, 2010).
The training and development program implemented by General Electric is inspired by the behaviour theory of leadership which focuses on improving the skills and abilities of leaders rather than hiring candidates with specific traits. As per the theoretical discussion conducted in the report above, the behavioural theory of leadership provides that leaders are created rather than born. According to this theory, organisations should implement effective leadership training and development program for its senior as well as lower-level executives in order to improve their leadership skills (Ely, Ibarra and Kold, 2011). The program should systematically focus on the deficiencies of the leaders and provide them appropriate training in order to improve their overall skills. Effective training leads to improving the skills of senior executives in the firm which assist in sustaining its future growth. General Electric has established an intense training and development program for its employees in order to improve their leadership skills and providing them executive level positions in the firm such as CEO, CFO, President and Vice President. The program focuses on improving the behaviour of executives, and they also get training from veteran leaders of GE who share their experience and knowledge with the future leaders of the enterprise (Yukl, 2012). The program has been successful since more than 80 percent of the executive level employees have received training from the program.
The effectiveness of implementing behaviour theory of leadership and training programs for senior-level managers can assist in increasing a company’s growth and sustain its future development. There are various examples from the industry which supports the argument that leadership and training programs assist in improving skills of senior-level managers in corporations and provide them a competitive advantage. For example, 3M is one of the biggest competitors on General Electrics. It also implements training and development program for its senior managers in order to generate a competitive advantage over others. The firm had implemented a specialised training and development program called the “Catalyst program” (Crumpton-Young, et al., 2010). It focuses on improving training to its employees in order to improve their leadership and decision-making skills (3M, 2016). Unlike General Electric, the Catalyst program of 3M provides training for 12 months, whereas, the CAS program of GE provide training for five-years. According to Yaprak Gorur, Global Supervisor Development Leader of 3M, the program incorporates multiple face-to-face learning opportunities provided to its senior and executive level leaders with mobile-enabled and online experiences (3M, 2016). The program assists 3M in maintain a dominating position in about 70 countries in which it operates.
There are different drawbacks of implementing the behavioural theory of leadership in companies as well. The first limitation of the theory is the research conducted by Kouzes and Posner which provided that just because people leader the practices and behaviour of effective leaders does not mean that they will be able to implement and enact them properly (Dennis, Kinzler-Norheim and Bocarnea, 2010). The theory provides that just because senior-level managers learn the behaviour and practices of effective leaders, it does not mean that they will be able to improve their skills as well or implement such principles in real-world situations. Another issue with the behavioural theory is adaptability; there is lack of knowledge regarding how behaviour theory can be implemented in different cultural contexts. The theory is not universal enough to implement effectively (Wong and Laschinger, 2013). To address these issues, the companies can implement different policies which resulted in improving the effectiveness of behavioural theory and training and development programs of an enterprise (Robbins and Judge, 2013). The firm should carefully select the trainees in order to ensure that they have the potential to learn and implement the principles of leadership in real-world situations. The abilities of trainees should be tested in real-world issues before giving them an executive-level position in the firm. For example, trainees in GE go on different audits and create real-world programs to improve their abilities and skills
Conclusion
In conclusion, leadership and management are two different concepts. Leadership is referred to the quality of influencing people and encouraging them to achieve common objectives. Management is referred as a discipline of managing things or people in the best possible manner in order to achieve organisational goals. Leadership focuses on inspiring employees, whereas, management focuses on managing the activities to maintain discipline in a company. The behavioural theory of leadership focuses on the specific study of leaders’ behaviour. It provided that leaders are created rather than born. Many industry leaders have implemented the theory; they focus on implementing specialised leadership training and development programs for their senior managers to improve their leadership skills and abilities. General Electric has implemented an intensive five-year training and development programs for creating the firm’s next CFOs, CEOs, Presidents and Vice Presidents. The program is called Corporate Audit Staff, and it trains employees by sending them on different audits and providing them opportunities to deal with the real world issues. The program is effective since more than 80 percent of company’s executives are program members. The selection and training program of the firm is based on the behavioural theory of leadership which focus on improving leaders’ skills and abilities. Effective implementation of leadership training and development program can assist corporations in improving the skills and abilities of their senior managers which resulted in sustaining their future development.
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