HRM 1101 Lecture Notes - Lecture 11: Jack Welch
5 May 2018
School
Department
Course
Professor
• Rak ad Yak “stes
o Also ko as fored rakigs or fored distriutio
o Annual exercise popularized by CEO Jack Welch at GE
▪ Pro: Fores aagers to hae tough disussios ith eploees
▪ Con: Breeds mistrust among employees and between employees and
management
o Ranks workforce into three categories:
▪ A Plaers top % – Loved and nurtured
▪ B Plaers iddle 7% – Must improve performance
▪ C Plaers otto % – Fired
• Compensation Is a Critical Motivator
o Benefits of a fair, effective, and appropriate compensation system
▪ Helps attract and retain high-performance employees
▪ Impacts the strategic performance of the firm
o Types of compensation
▪ Base wage or salary
▪ Bonus
▪ Commissions
▪ Stock Options
• Factors That Influence Pay & Benefits
o Eploee’s Teure & Performance?
▪ How long has the employee been employed? At what level of
performance?
o Kind of Job?
▪ Does it require a high level of skill?
o Kind of Industry?
▪ High tech vs. retail?
o Is it unionized?
▪ Union employees generally all get the same pay raise
o Labor/Capital Intensive?
▪ Labor/Capital intensive business is more costly; often less $ for salaries
o Management Philosophy?
▪ Lead or lag market?
o Geographic Location?
▪ New York City vs. Cincinnati
o Company Performance?
▪ Company Performance?
o Size of Company?
▪ Multinational or Mom & Pop?
Leadership
• Organization Levels
o Board of Directors
▪ Serves as expert counsel to top executives and company shareholders
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