1. Why is GE one a very few diversified companies that is revered among peers? What are the historical reasons underlying its long-term success despite short-term challenges?

GE is a diversified company that has managed to be a leader in world business even while being engaged in very different areas of business. I believe an important part of their long-term success has been their HR practices throughout the years. The establishment of Crotonville, their in-house corporate university, helped by providing the executives needed for the long run.

2. How does GE show its parenting advantage in focusing on the people development element of its business? What are the specific ways in which it adds value to its business in this regard?

GE shows its parenting advantage by developing their managers better than the competition would. Not only that but they recruit people not necessarily from the top schools in the country, but people who are the correct fit for the company. The fact of growing in-house talent leads to a lower turnover than usual, so employees tend to stay with the company a longer time and decreases the costs of training a new person for and officer job or trying to lure away a highly qualified executive from another company to try to work at GE.

3. What elements of the GE people development model would you recommend be changed? What is your rationale?

I think Cordiner’s 29 PLs are a better idea for companies abroad than Welch’s 7 broad bands. Many developing countries (not only India) give great importance to rank in a company. The 29 levels may be symbolic at some points, but it boosts the morale of people making them feel progress and not like they are stuck in one of the