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					                                                                                         GE Aircraft Engines

The Ohio State University
HR Overview


       Susan Hunsberger
       Amy Dooley



       February 20, 2003


HR Best Practices- 022002   GE Proprietary / Do Not Distribute
                                                    GE Proprietary / Do Not Distribute
                                      Agenda
        Welcome and Overview…what we are all about
                       • GE Business
                       • GE Operating Rhythm


        Cultural at GE…how we have evolved


        Human Resources Role…true business partner
                       • Vision
                       • Structure
                       • Core Processes
                       • Metrics

        Performance Management…ensuring we get the best from everyone

        Session C…tying it all together




HR Best Practices- 022002                             GE Proprietary / Do Not Distribute
                                                    General Electric Company
                            20 World-Class Businesses with $130B in Revenues
                                          Aircraft Engines                                            Medical Systems
                                 Commercial Finance                                                       Structured Finance Group
                       Employers Reinsurance                                                                   Equity
                                       Appliances                                                                  NBC

  Global Consumer Finance                                                                                               Real Estate

Vendor Financial Services                                                                                                Plastics

                 Financial Assurance                                                                                Commercial Equipment Finance

                             Industrial Systems                                                                   Power Systems

                              Mortgage Insurance                                                              Aviation Services
                                                      Lighting                                          Transportation Systems



                            Exchanging an Endless Stream of New Ideas & Best Practices
HR Best Practices- 022002                                        GE Proprietary / Do Not Distribute
                                                 General Electric
                                                                   GE: A Group of Businesses:
                                            g                       - Each #1 or #2 in industry
                                                                    - Growing +10% / year
                                                                    - Returning +15% / year



                                                                      Built on Common Values
                                                    - Integrity       - Speed                                    - Boundarylessness
                                                 - Stretch                             - Diversity             - Customer Centricity



                                                                  Focused on Four Key Initiatives

                               Services                     Globalization                                    Six Sigma                  e.Business
                             Provide Total                Build Global Markets,                         Deliver World- Class           Accelerate GE &
                            Customer Solutions               Sources, Intellect                                 Quality                    Customer
                                                                                                                                          Productivity
HR Best Practices- 022002                                              GE Proprietary / Do Not Distribute
                                                 The GE Management System

                            January

                                      February

                                                 March

                                                         April

                                                                 May                                Session 1 Strategy
                             Session C
                                                                                 June
                        Organization/Staffing
                                                                                                        July

                                                                                                               August                       Session 2
                                                                                                                        September
                                                                                                                                          Operating Plan
                                                                                                                                    October

                                                                                                                                              November

                 •      Embedded Management Processes                                                                                                      December

                 •      Bottoms-Up and Top-Down
                                                                                                                                 Session D
                 •      Minimal Ceremony/Paper                                                                                  Compliance
                 •      Highly Interactive                                                                     #s
                 •      Basis for CEO Resource Allocation                                                      People
                                                                                                               Technology

HR Best Practices- 022002                                          GE Proprietary / Do Not Distribute
                                         The Rhythm of GE Management

                            Boca              Review/Theme                                        January

                            Session–E         Environment                                         March

                            Session–C         Organization/Staffing                               May

                            Session–I         Strategy                                            June

                            Session–II        Operating Plan                                      October

                            Session–D         Compliance                               November



                                                                                                            GE Proprietary Information
HR Best Practices- 022002                         GE Proprietary / Do Not Distribute                            For GE Use Only
                                               Employment Profile

             Chief Executive Office (3)
             Senior Staff &                                                                                                                       B
             Business Leaders (~20)                                                                                                               u
                                                              CEO Slates                             Executive   Executive      CEO
                                                                                                                                                  s
                                                                                                    Assessment    Courses     Session C
                                                                                                                                                  i
                                               Officers                                                                                           n
                                                                                                                                                  e
                                               (~150)                                                                                             s
                                                                                                                                                  s
                                                                                                                                                  e
                                                Senior                                                                                            s’
                                            Executive Band
                                                 ~370                                                                                             S
                                                                                                                                                  e
                                                                                                                                                  s
                                            Executive Band                                                                                        s
                                                                                                                  Diversity                       i
                                                ~2,500
                                                                                                                                                  o
                                                                                                                                                  n

                                          All Other Exempts                                                                                      C
                                               ~61,000



                                                                                                                                          GE Proprietary Information
HR Best Practices- 022002                                      GE Proprietary / Do Not Distribute                                             For GE Use Only
                            Cultural Change at GE


                             How we have evolved…
                               • Values

                               • Workout

                               • Change Acceleration Process (CAP)

                               • Key Leadership Traits




                                                                                GE Proprietary Information
HR Best Practices- 022002                  GE Proprietary / Do Not Distribute       For GE Use Only
                            GE Values — Reasoning


                                      Simple Reasoning


                                     Values Drive Behavior

                                    Behaviors Drive Results




                                                                            GE Proprietary Information
HR Best Practices- 022002              GE Proprietary / Do Not Distribute       For GE Use Only
                            GE Values



                                         GE Culture…
                                   Breeds outstanding leaders


                                         GE Values…
                                 Building blocks of GE culture




                                                                             GE Proprietary Information
HR Best Practices- 022002               GE Proprietary / Do Not Distribute       For GE Use Only
                                         GE Leadership Values


              Unyielding Integrity
              Thirst for Change
              Growth Driven, Globally Oriented
              Embracing Speed and Excellence
              Creating Meritocracy
              Every Person, Every Idea Counts
              Passion for our Customers
              Living the Hallmarks of GE Leadership
                     Passion for Learning and Sharing Ideas
                     Connected to the workplace, customers and communities
                     Ability to energize and inspire, diverse, global teams




 Privileged and
HR Best Practices- 022002 Confidential                   GE Proprietary / Do Not Distribute
                                     Work-Out – Stages of GE’s Culture Change

                                                                                                                                   E.Business



                              high                                                                                        Six Sigma Quality


                                                                                                          Making Customers Winners:
                                                                                                            GE Tool-Kit

                                                                                                Key Strategic Initiatives:
                                                                                                 QMI*, NPI*, OTR*, SP*, Productivity, Globalization
         Intensity
             of                                                         Change Acceleration Process:
          Change                                                            increase success and accelerate change


                                                        Process Improvement:                                                   Bullet Train Approach
                                                           continuous improvement, re-engineering


                                              Productivity / Best Practices:                                                  Best Practice Sharing
                                                 looking outside GE


                                       Work-Out / Town Meetings:                                                              Action Work-Outs
                                        empowerment, bureaucracy busting, action                                              Customized Work-Outs
* New Product Introduction
                              low
  Quick Market Intelligence
  Order to Remittance
  Supplier Partnership
HR Best Practices- 022002                                  GE Proprietary / Do Not Distribute
                                                                                                    Time                                          GE Proprietary Information
                                                                                                                                                      For GE Use Only
                                        Establishing a Leadership Culture at GE

          • Drive Major Initiatives                                                                • Grow Leaders
                • Globalization                • Six Sigma
               • Services                      • e.Business


          • Move Initiative Leaders into Big Jobs                                                  • Stretch Assignments


          • Accountability                                                                         • De-centralized Leadership
                                                                                                   • Team Culture with Accountable Leaders



          • Measure, Reward, Promote Performance                                                   • From Options for 50 to Options for 30,000




                       Successful Leaders Share the Values and Meet Commitments

HR Best Practices- 022002                                     GE Proprietary / Do Not Distribute
                                               Stretch -- A Key Factor in GE’s
                                               Success
         Expect More Than Your Team Thinks It Can Deliver!
                                                                                                                                       Rationale
                                                                                                                         • Focuses team on the “undoable”
                                         Stretch                                                                         • Prevents incremental thinking




                                                                                                                                        Process
                                                                                                              • Reward & recognize those who drive for stretch
                                                                                                              • Don’t punish them for a miss




 Commitment                                              Measurement                                                                    Benefits
  • Meets shareholders expectations                • Vs. market & competition                                 • Results always higher because you aimed higher
  • Drives revenue/cost alignment                  • Drives compensation                                      • Exceeds shareholder expectations
                                                                                                              • Grows leaders




                                      Stretch Drives Creativity and Superior Results
HR Best Practices- 022002                                                GE Proprietary / Do Not Distribute
                                  Human Resources Framework

                                                       Vision




                            Metrics                Business                  Structure
                                                   Strategy




                                                 Core
                                               Processes
HR Best Practices- 022002               GE Proprietary / Do Not Distribute
                                               Human Resources Vision

                 GE – the Most Competitive and Exciting Enterprise in the World

                            HR – Credible, Visible, Value-Added Business Partner
                 •          HR Initiatives and Outcomes Closely Linked to Business Scorecard
                 •          Anticipating Business Needs ... Defining and Creating What Adds Value to Business Performance in Terms of:
                            – Individual and Organizational Energy and Capacity (Structure, Leadership, Motivation, Skills Development)
                            – Attraction, Deployment and Retention of Best Diverse and Global Talent
                            – “Boundaryless” Teamwork (Cross-Functional, Cross-Border, Cross-Business Unit) at All Levels of the
                              Organization ... Including Effective Working of External Partnerships (JVs and Alliances)
                 •          Best HR Talent with World-Class Functional Skills and Business Understanding
                 •          Making a GE Job the Best Job in Every Community in the World ... “Raising the Bar”




HR Best Practices- 022002                                           GE Proprietary / Do Not Distribute
                                               The Human Resources Mandate . . .
                                               Helping the Business Become More Competitive


                              Roles                                        Outcome
                            Business Partner                               • Align HR and Business strategy

                            Change Agent                                   • Manage transformation and processes

                                                                           • Develop and implement efficient and contemporary
                     Infrastructure Expert                                   organization structures and HR practices

                                                                           • Understand, respond to and advocate employee issues
                                                                             within the context of the business strategy
                      Employee Champion




HR Best Practices- 022002                                    GE Proprietary / Do Not Distribute
                                                       HR Transformation . . . . The Approach

                                 Digitization                                            Outsourcing                 Employee/Manager
                                                                                                                        Self-Service
                  Single database to support                         Centralize and outsource non-core                   Employee Access
                  core HR functions                                  HR functions

                  • Enhance quality, speed and value                 •   Payroll administration
                  • Enhance productivity                             •   Benefits administration
                  • Improve process access                           •   Relocation
                                                                     •   Disability management
                                                                     •   Workers’ compensation



                                           OHR
                                                                                                                           Manager Access



           Recruiting                                                 Motivating and
                                                          Talent     Rewarding Talent
                             Development                Assessment




HR Best Practices- 022002                                                       GE Proprietary / Do Not Distribute
                                  Human Resources Framework

                                                       Vision




                            Metrics                Business                  Structure
                                                   Strategy




                                                 Core
                                               Processes
HR Best Practices- 022002               GE Proprietary / Do Not Distribute
                                                     HR Structure

                                                                   Transportation                                    Aircraft Engines
                                                          HR                                                    HR

                                          Plastics                                                                                              Appliances
                                 HR                                                                                               HR

                                                                                        Corporate                                                              Financial Services
                             NBC
                   HR                                                                 Executive Office                                               HR
                                                                           HR
                                       Indus                                                                                                             Power Systems
                                      Systems
                            HR                                                                                                                  HR

                                                     Medical Systems                                                                    Information Services
                                           HR                                                                                    HR
                                                                                                Lighting
                                                                              HR

                                                                   Eleven “Independent” Global Businesses
                                                           Supported by Direct Reporting Global HR Organizations
HR Best Practices- 022002                                                  GE Proprietary / Do Not Distribute
                                                           Aircraft Engine’s HR Structure
          Engineering HR - Barry Blackmore                                  Compensation, Benefits & HR Systems
                                                                                                                                                                Organization Development
                                                                                     David Frederick
         - Nancy Bouchard - Engineering components-Lynn                                                                                                            Susan Hunsberger
         - Hobek - Adv Eng. Products,, Mfg & Qlty Tech, MI&ES          - HR Systems                         - Compensation
         - Deanna Schmitt - Engine Systems Design & Integration,         Ron Manne - HRIS Leader             David Schacherer - Comp Leader
         Materials and Processes Dept.                                   Debra Melton - HRIS Analyst      - Benefits                                                                       - Andrea Lupu – HRLP (06/01)
                                                                         Sean Higgins - HRIS Support/Trng    Alice Guillott - Benefits Leader           - Renee Cutright - HRLP (07/01)
         - Kinga Zalucka – HR Mgr Poland                                                                                                                - Amy Dooley – HRLP 01/01)         --Cynthia Osmer - HRLP(07/01)
                                                                         Linda Correll – HRIS Analyst
         -- Husniye Yilmaz – HR Mgr-Turkey                                                                                                              - Susan Fitzhenry - HRLP (06/01)   - Jennifer Waldo - HRLP (06/01)*Fairfield assignme
         -- Jose Chavez – HR Mgr-Mexico                                      Recruitment , Placement & Employment                                       - Marty Blied – HRLP (01/02)       - Bill Gibbons - HRLP (07/02)
         - Katya Dmitrieva – HR Mgr-Russia                                               Jennifer Stites                                                                                   - Alice Bodonnat (01/03)
         -- Prasan Raj – HR Mgr-India
                                                                            - Babatu Short - Entry Level Recruiting
          e.Business & Technology Solutions                                 - Judy Lacey - Evendale Staffing/Nonexempt                                               Finance and Legal
              and BD HR – Carlos Griner                                     Salaried Relations                                                                              HR
           -Rohit Thakur - HR Manager, Global Technology Solutions          -Kathy Ward - Expatriate Admin                                                               Pete Dyke
             (GTS-India)
           -Apreeta Singh – Compensation & HR Systems, (GTS-India)          -Karen Clark - Early Ident /Interns/Co-ops
           -Gerald Santosh – Sourcing , (GTS-India)
                                                                               Health Care Management and                                                     Human Resources Development
                                                                              Medical Services - Joyce Huber                                                          Paul Lutmer
              Commercial Engines, Marketing &
                 Sales, HR - Mary Liz Finn                             - Faye Mathews - Sr HR Clrk - Medical Director
                                                                       - Health Care Management       John Zerbe
                                                                         Faith Yohman                       - (Open) -Clinical Specialist - Lynn
            - (Open) - Marketing & Sales/CLP Program                     Eve Jackson-DFWP                       -   Elizabeth Peart-Nurse-Lynn
            - Linda Leever – Customer & Product Support                  Beth Hallgren                          -   Jeannine Faulkner-Lynn-Nurse                      Master Black Belt
                                                                                                                -   Barbara Hineman-Medical Tech-Lynn
                                                                                                                -   Mary Holden-Nurse-Lynn                            Brenda Reynolds
                            Military Engines HR -                                                               -   Patricia Schavone-Nurse-Lynn


            - Steven Howery – HRM- Military Projects and IAD.

                                              Functional Support
                                              Specialist Support



                                                                     HR Structure Aligns with Centralized Business Structure

HR Best Practices- 022002                                                                   GE Proprietary / Do Not Distribute                                                                  12/02
                                  Human Resources Framework

                                                       Vision




                            Metrics                Business                  Structure
                                                   Strategy




                                                 Core
                                               Processes
HR Best Practices- 022002               GE Proprietary / Do Not Distribute
                                     Core HR Processes



       Talent Development…building for the future

                            • Recruiting Talent
                            • Training Talent
                            • Developing Talent
                            • Motivating and Retaining Talent




HR Best Practices- 022002                          GE Proprietary / Do Not Distribute
                                 Staffing Mission
                            Key Leadership Responsibilities:
                            • Pick Winners
                            • Allocate Resources
                            • Set Vision For Organization



                              HR Professionals Are Key To Making Sure The Business Is Only
                                          Picking And Promoting The Very Best



                                                 Our Mission Statement

                                 Staffing Will Support The Business By Providing Our
                                Customers With The Tools, Expertise, and Information To
                                 Source, Assess, Select and Attract “the best” To Meet
                                      Current and Future Human Resource Needs
                                                                                             GE Proprietary Information
HR Best Practices- 022002                        GE Proprietary / Do Not Distribute              For GE Use Only
                            How GEAE Finds Top Talent
        Approach                                                              Type of Candidates

        • Non-Exempt Staffing                                                 Contractors/5-10
                                                                               years Experience

        • Early Identification Program                                        Pre-Graduates

        • Entry Level Training Programs                                       Graduates GPA 3.0+

        • Entry Level Direct Hires                                            Graduates

        • Mid-Career Hires                                                    3-7 Years Experience

        • Leadership Executive                                                7-10 Years Experience

                                                                                                  GE Proprietary Information
HR Best Practices- 022002                GE Proprietary / Do Not Distribute                           For GE Use Only
                                         Full-Time Entry Level Paths


                            Edison Engineering                                             Information Management
                            Development                                                      Leadership Program
                            Program (EEDP)                                                          (IMLP)



                             Financial                                                              Operations
                            Management                                                              Management
                             Program                                                                Leadership
                               (FMP)                                                                Program (OMLP)



                                Human Resources                                              Technical Sales Leadership
                               Leadership Program                                            Program (TSLP)
                                     (HRLP)


                                                                 Direct Hire


                                                                                                               GE Proprietary Information
HR Best Practices- 022002                             GE Proprietary / Do Not Distribute                           For GE Use Only
                                Entry Level Program Experience

                            Multi-Faceted Development Programs

                                           Technical                                 Leadership
                                            Training                                  Training

                                                                                                   Structured
                             Rotational
                                                                                                  Performance
                            Assignments
                                                                                                   Feedback
                                                                     Entry Level
                                                                      Program
                               Career
                             Development                                                          Networking
                                Tools
                                             Sr. Level
                                            Visibility &                             Mentoring
                                             Exposure


                                     Expansion of opportunities through
                                        a broad range of experiences
                                                                                                                GE Proprietary Information
HR Best Practices- 022002                       GE Proprietary / Do Not Distribute                                  For GE Use Only
                                    Recruiting:
                                    Building a Powerful Employment Brand


       •Differentiate GE From the
       •Competition:
           – GE’s Size/Diversity = Unparalleled
             Opportunity

           – GE Is a Leader

           – GE Is an Innovator

           – GE Is a People Developer


                        Our “Product” Is a Future ...
                        Not an Entry-level Position


HR Best Practices- 022002
                                     Drive Consistent Image Through People and Campus Media
                                                    GE Proprietary / Do Not Distribute
                                             Training Talent



                                  Business-based
                                                                                                     GE Crotonville
                                     training



                            • Leadership development                                           • Leadership development

                            • Project management skills                                        • Advanced business skills

                            • General business skills                                          • Targeted functional skills

                            • Functional skills                                                • GE values reinforcement

                            • Six Sigma tools                                                  • Best practice sharing

                                                                                                                              GE Proprietary Information
HR Best Practices- 022002                                 GE Proprietary / Do Not Distribute                                      For GE Use Only
                                         Leadership Training & Development

                        Crotonville’s Mission Is to Create, Identify, and Transfer Organizational Learning to
                                      Enhance GE’s Growth and Competitiveness Worldwide:


             • Provide Professional Growth and Development for GE Employees


             • Transfer Best Practices, Corporate Initiatives, Change Acceleration Concepts and Learning Experiences Across the
               Businesses


             • Partner With the Businesses to Educate, Develop and Build Relationships With Their Customers and External
               Constituencies


             • Broadcast GE’s Culture and Values



HR Best Practices- 022002                                   GE Proprietary / Do Not Distribute
                            Leadership Development — Crotonville Setting




                                                                                GE Proprietary Information
HR Best Practices- 022002                  GE Proprietary / Do Not Distribute       For GE Use Only
                                         GE Crotonville

                      Core Leadership Development sequence...


                            Stage IV:      Executives
                                                                                              Business
                                                                                             Leadership
                            Stage III:     Senior Functional
                                           Professionals                                     Functional
                                                                                             Leadership

                            Stage II:      Experienced
                                           Professionals
                                                                                              Mastery


                            Stage I:       New Professional
                                           Hires
                                                                                             Competency


                                                                                                          GE Proprietary Information
HR Best Practices- 022002                               GE Proprietary / Do Not Distribute                    For GE Use Only
                                         Leadership Development — The Building Blocks

                            •   Hire Outstanding Talent.



                            •   Create an Intense Performance Culture.



                            •   Rigorously Assess Employee Performance and Promotability.



                            •   Provide Opportunities for People to Excel, to Develop Their Skills, and to Achieve Their Dreams.




                                                           GE’s Highest Priority Agenda Item

                                                                                                                               GE Proprietary Information
HR Best Practices- 022002                                       GE Proprietary / Do Not Distribute                                 For GE Use Only
                                             Leadership Development

                            Career success formula…

                             • Build solid core of functional expertise

                             • Capitalize on opportunities to apply core
                               skills in a business context                                               • Opportunity to
                                                                                                            contribute
                             • Perfect leadership skills in a variety of
                               functional/matrix/team environments                                        • Opportunity to
                                                                                                            develop
                             • Cultivate a broad array of business/functional
                               sponsors                                                                   • Opportunity to
                                                                                                            win
                             • Develop multi-cultural sensitivity and
                               contribution-based experiences

                             • “Evolve” into multi-functional business
                               leadership

                                                                                                                         GE Proprietary Information
HR Best Practices- 022002                                            GE Proprietary / Do Not Distribute                      For GE Use Only
                                     Developing Future Leaders - Six Sigma


                                            Leadership                                    Business
                                                                            6s
                                              Skills                                      Acumen



                              Key Dimensions                                               Key Dimensions
                              • Energy / Edge                                              • Project Management
                              • Influence                                                  • Financial Knowledge
                              • Developing People                                          • Customer/Quality Focus
                              • Presence and Impact                                        • Accountability for Results
                              • Building Diverse Teams                                     • Managing Marketplace
                              • Strategic Thinking


                                        Leadership Development Curriculum
                                Business Cycle Energy / Energize Finance 101 Leading Teams
                            Marketplace / Customers Project Management Strategy / Vision Influence
                                           Coaching Career Mgmt. Presence & Impact
                                                                                                                          GE Proprietary Information
HR Best Practices- 022002                            GE Proprietary / Do Not Distribute                                       For GE Use Only
                                         360o Feedback
       Leadership Values Assessment
                                                                                             The systems vary in
                                                                                             design, but all have   • to reduce reliance on the
                                                       Manager                               the same goals …         manager’s lone opinion of
                                                                                                                      an employee’s performance

                                                                                                                    • to gather inputs from all
                                                                                                                      people who deal with an
                                                                                                                      employee, both inside and
                            Peers                     360°                                         Customers          outside the organization


              How the “system” works:
                                                   System                                                           • to present this information to
                                                                                                                      the employee in a helpful
                                                                                                                      and non-threatening way
              1. Questions are asked,
                 based on the GE values
                                                                                                                    • to make employees more
              2. Data are gathered (by mail,                                                                          aware of how their behavior
                 computer, phone, or interview)     Subordinates                                                      and values impact others in
                 by Human Resources                                                                                   the organization

              3. Data are collated by category or
                 question and/or category of person
                 giving the feedback
                                                                                                         Performance
                                                                                                          Feedback
              4. A consolidated report (numerical scores,
                 graphical representations and/or narrative
                 comments) is given to the employee

              5. The identity of the people supplying the inputs                                                           Employee
                 is kept confidential
                                                                                                                                         GE Proprietary Information
HR Best Practices- 022002                                     GE Proprietary / Do Not Distribute                                             For GE Use Only
                                           Motivating and Retaining Talent



           1.               Give key employees critical, visible jobs


           2.               Provide opportunities for visibility to business leaders


           3.               Reward key employees with big salary increases, special
                            awards and stock options




                                                                                                  GE Proprietary Information
HR Best Practices- 022002                                    GE Proprietary / Do Not Distribute       For GE Use Only
                                    Compensation Philosophy

             • Keep pay and the pay structure competitive with the market in order to attract
               and retain necessary skills and talent


             • Maintain equitable internal pay relationships


             • Pay for the overall value of individual contributions, with special emphasis on
               the treatment of those demonstrating sustained superior performance


             • Recognize employees’ contributions when they function as part of a team


             • Reward people appropriately for taking greater risks, assuming more
               responsibility and achieving better results


             • Ensure all compensation systems are in compliance with federal, state and local laws
                                                                                                      GE Proprietary Information
HR Best Practices- 022002                                GE Proprietary / Do Not Distribute               For GE Use Only
                                 Compensation Model


                                                                                             Long Term           Long Term
                                                                                           Incentive Plan      Incentive Plan

                                                                                                                    +
                                                                 Stock                         Stock               Stock
                                                                Options                       Options             Options
                                                                                                 +                  +
                                   Stock                         Annual                       Annual              Annual
                                  Options                        Bonus                        Bonus               Bonus

                                                                      +                          +                  +
                 Wages             Salary                         Salary                      Salary              Salary


        Production Workers   Professional Employees          Executives                       Sr. Executives      Officers

                    22,000            9,000                         310                           40                12



                                                                                                                         GE Proprietary Information
HR Best Practices- 022002                             GE Proprietary / Do Not Distribute                                     For GE Use Only
                                  Human Resources Framework

                                                       Vision




                            Metrics                Business                  Structure
                                                   Strategy




                                                 Core
                                               Processes
HR Best Practices- 022002               GE Proprietary / Do Not Distribute
                            Digital Cockpit- Key Metric Areas




                             Metrics Aligned to Critical HR Deliverables
HR Best Practices- 022002               GE Proprietary / Do Not Distribute
                                 Performance Management


                            Ensuring we get the best from everyone…

                              • Expectations


                              • Assessments


                              • Coaching and feedback


                              • Metrics and actions


                                                                                     GE Proprietary Information
HR Best Practices- 022002                       GE Proprietary / Do Not Distribute       For GE Use Only
                                          Accountability


                            Reinforcing the Agenda…Making Commitments

           Financial                      People                              Compliance/EHS                  • Set Expectations
              • Start with the answer      • Most important asset                 • Zero tolerance!!

              • Make all costs variable    • Best people MBB, BB                  • Leadership -vs- control
                 - Drive accountability       - Weed and feed!!

              • Accept reality…take
                quick action!!
                                           • Energy…Energize…
                                             Edge…Execution
                                                                                  • Understand…
                                                                                    simplify/error proof
                                                                                                              • Keep it Simple
           Quality                        Variation                           Sourcing/Programs
              • Always starts with a       • Cycle is key…inventory               • Global/cost entitlement
                “process”                    delivery, costs                        business necessity        • Make it Visible
                               Processes…Metrics…Leadership…Values




                        • Communicate, Communicate, Communicate...

                                                        Expectations drive behavior                                          GE Proprietary Information
HR Best Practices- 022002                                           GE Proprietary / Do Not Distribute                           For GE Use Only
                            Session C


                                  Tying it all together…

                                    • Purpose and process


                                    • Succession planning


                                    • Talent analysis


                                    • Leadership Potential


                                                                             GE Proprietary Information
HR Best Practices- 022002               GE Proprietary / Do Not Distribute       For GE Use Only
                              Purpose of Session C

•   To review the effectiveness of the organization and any plans to change

•   To review and provide feedback on the performance,
    promotability, and developmental needs of the top management

•   To review plans and suggestions for backup planning for key management jobs

•   Early identification of high-potential talent to ensure appropriate development

•   To focus special attention on key corporate or business messages




             While the fundamental process/agenda does not change, it is tailored each year to leverage
                                               Company priorities
                                                                                                          GE Proprietary Information
                                                                                                              For GE Use Only
                                            Session C Process

                                                Organization                          Talent           Succession
                            EMS–2’s & 3’s         Issues                            Summaries            Plans



          January                       Comprehensive talent and organization review . . . of                                    Businesses screen data
                                        every professional employee and every organization                                       against Session C agenda,
                                                   component in every business                                                   GE Values



                                                                                                                Business “C’ Reviews
          February                               Internal human resource review                                 •   organization issues, options, and fixes
                                                  (Session C) in each business                                  •   succession rosters for key positions
                                                                                                                •   performance and potential of senior leaders
                                                                                                                •   talent pools for major functions and businesses


          March—April—May                                       CEO
                                                               Reviews                                   • Business Snapshots
                                                                                                         • Cross-business issues and personnel moves
                                                                                                         • Growth potential of future business leaders

          June                                               Corporate C                                 • Crotonville executive course nominations
                                                                Wrap                                     • Anticipated key openings and back-up plans
                                                                                                         • Best Bets for early-career stretch assignments
                                                                                                         • Diversity activity and pipeline status
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                                                                                                                                                        For GE Use Only
                                                                     Session C Begins With 2 Forms
                                                       EMS-2                                                                                                                                         EMS-3

      g                                          INDIVIDUAL EXPERIENCE RECORD                                       Strictly Private                               Annual Accomplishment & Development Review
                                                                                                                                                   Name:__________________________                   Social Security #:______________________
      NAME
                 (last)              (first)             (initial)
                                                                                                                                                                                               Employee Summary

      SOCIAL SECURITY NO.                                 GE SERVICE                                                                               Business Contributions: Describe your key contributions during the last 12 months. Also include
      CITIZENSHIP                                                                                                                                  specific examples on how you demonstrated the GE values and related behaviors (e.g. Vision,
                                                                              mo/day/yr                                specify                     Accountability, etc.)
      EDUCATION
      School & Location                        Curriculum or Major                Dates Attended                    Degree




      MAJOR PROGRAMS & TRAINING (List formal training programs and year completed, e.g. FMP, EEP/"A","B","C" courses, MMP,
      TSP, IMLP, HRLP, TLP, etc. List GE Crotonville training, such as MDC, BMC, EDC, etc. and year completed)                                     Self-Assessment: Summarize your key strengths and two or three areas you would like to develop
                                                                                                                                                   further.
                                                                                                                                                   Strengths:




                                                                                                                                                   Development:



      PROFESSIONAL EXPERIENCE SUMMARY (Identify specific competencies - functional, product, market, customer, technical)



                                                                                                                                                   Career Objectives: If applicable, describe your short and long-term career interests, including specific new job
                                                                                                                                                   assignments, location and timing.




      OTHER QUALIFICATIONS (Professional licenses, honors, patents, awards, special recognition, community experiences, etc.)


                                                                                                                                                   Self-Development Plan: Highlight your progress toward last year’s self-development goals. During
                                                                                                                                                   the coaching session, you and your manager should agree on a plan to further develop your skills and
                                                                                                                                                   personal effectiveness.
                                                                                                                                                   Last Year’s Self-Development Plan and Status:



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                                           Individual Inputs to Business Session C

                   The EMS-2 . . . Our Internal Resume
                            • Used by businesses to inventory internal skills available to fill open jobs
                            • Used to track Crotonville course attendance
                            • Available to hiring managers and usually their starting point when screening candidates


                   The EMS-3 . . . Performance and Career Review
                            • Serves as an annual performance appraisal
                            • Tees up career development discussion between individuals and managers
                            • Integrates with 360° feedback system




                                                                                                                GE Proprietary Information
HR Best Practices- 022002                                    GE Proprietary / Do Not Distribute                     For GE Use Only
                                                Succession Planning
           Identifies best know replacements for key positions

                                                                                                              Component
                                                    GE AIRCRAFT ENGINES
                                                       SUCCESSION                                             Incumbent
                                                          PLAN




                                                                                                                   *

                                                                                                                          * New Organization

                Used to:
                            •   Check quality and depth of back-ups
                            •   Encourage discussions about developmental opportunities,
                                cross-functional/organizational moves
                            •   Gain consensus from peer organizations on people they will team with
                                in the future
                            •   Identify berths for developing talent or where we lack a pipeline
                            •   Check for diversity of pipeline talent
                            •   Provides starting point to generate slates for key jobs
                                                                                                                                    GE Proprietary Information
HR Best Practices- 022002                                                GE Proprietary / Do Not Distribute                             For GE Use Only
                                 Thank You




                            Questions & Answers

HR Best Practices- 022002           GE Proprietary / Do Not Distribute
     Value                  Outstanding Strength                             Strength                                Needs Improvement
                                                                                                           Neglects to consider the the policies
                            Creates open environment, encourages Assures that business is conducted in
     Unyielding integrity                                                                                  and impact of decisions in every
                            discussion of any potential issue    compliance with the spirit and the letter
                                                                                                           circumstance

                            Seeks out change for the opportunities Values change for the opportunities it
                                                                                                                     Reacts to external pressure for
     Thirst for Change      it brings; Builds acceptance for change brings; Builds acceptance for change
                                                                                                                     change; Avoids or resists change
                            within the team                         within the team

                            Drives efforts to expand our markets             Participates in expansion of our
                                                                                                                   Struggles to embrace other cultures;
     Growth Driven,         across the world, grow our top line;             markets across the world; Identifies
                                                                                                                   Consistently comfortable with the
     Globally Oriented      Leads the design of a major new                  new, innovative approaches, redesigns
                                                                                                                   status quo
                            product                                          business processes


                            Improves productivity through
                                                                                                                     Struggles to prioritize conflicting
                            digitization, increasing speed,                  Sets and meets aggressive stretch
     Embracing speed and                                                                                             business measurements; Shuns
                            accuracy of decision making;                     goals for self and team; supports
     excellence                                                                                                      responsibility for delivering on
                            Understands speed as a competitive               digitization, hates bureaucracy
                                                                                                                     commitments and business objectives
                            advantage


                            Creates an environment that
                                                                             Promotes individuals who have an
                            recognizes performance as a lever for                                                    Uses inconsistent and/or unclear
                                                                             ongoing track record of exemplary
     Creating meritocracy   professional fulfillment; Committed to
                                                                             performance; differentiations rewards
                                                                                                                     criteria for promotion, reward and
                            differentiation reward and recognition                                                   recognition
                                                                             on performance
                            based upon performance and values.




HR Best Practices- 022002                                GE Proprietary / Do Not Distribute
     Value                        Outstanding Strength                            Strength                                   Needs Improvement
                                                                                                                             Continuously relies on the same few
                                  Actively seeks and embraces the best
     Every Person, Every                                                Manages work with local, global and                  team members for major business
                                  ideas and practices from all sources;
     Idea Counts:                                                       virtual teams; listens conscientiously.              decisions; Ineffectively resolves conflict
                                  Builds an inclusive environment
                                                                                                                             within the team

                                                                        Considers customer feedback in
                                  Measures processes and performance decision making; Ensures that                           Rarely seeks out or incorporates
     Passion for our              through customers' eyes…prime         customer CTQ's are a key input to                    customer feedback as an input to
     customers                    source of feedback; Maintains regular products and processes; Establishes                  decision making; Rarely has personal
                                  contact with key/strategic customers means to ensure that the customer                     contact with customers
                                                                        receives personal contact

                                                                                                                         Does not seek learning opportunities;
                                  Creates a learning culture, encourages          Shares personal expertise with others;
                                                                                                                         Unaware of personal strengths,
     Passion for Learning         mentoring; Recognizes collective                Understands personal strengths and
                                                                                                                         development areas; misses
     and Sharing Ideas            strengths, development areas…pusues             development areas. Establishes
                                                                                                                         opportunities to establish and execute
                                  ways to leverage, improve them.                 personal improvement plans.
                                                                                                                         on personal improvement plans


     Connected to the     Applies a world view, incorporating                                                                Does not fully consider community
                                                                                  Supports and sponsors employee
     workplace, customers customers, communities and the                          activities in the community
                                                                                                                             impact or the impact on customers in
     and communities      workplace into decisions.                                                                          key business decisions


                                                                                                                             Lacks understanding of the cruitical
     Ability to energize and Identifies, advances and retains critical            Identifies and develops critical talent;
                                                                                                                             talent on the team, loses key talent for
                                                                                  Encourages others to contribute their
     inspire, diverse, global talen; Inspires employees to excel -                                                           reasons within control; does not drive
                                                                                  best efforts in order to make GE
     teams                    thinking, energy                                                                               ongoing development, slow to address
                                                                                  successful
                                                                                                                             performance problems
HR Best Practices- 022002                                     GE Proprietary / Do Not Distribute
                                                What is Work-OutTM?
        •        Work-OutTM is a process...not a single event.



        •        Work-OutTM involves everyone...from the worker on the factory floor to the secretary to the engineer to the office manager to the Chairman.



        •        Begun in 1988-89, this process is a way of solving or “working out” problems by listening to and acting on the suggestions of the very people who can
                 best solve the problem...the employees themselves.



        •        In many cases, Work-OutTM is literally “taking work out ” - making the process or the procedure simpler or faster in order to make it better. The
                 result is increased customer satisfaction, better products or services, and highly-motivated employees.



        •        Work-OutTM is a process where employees can speak up and suggest new ideas without the fear of being reprimanded by their manager.



        •        Work-OutTM is a process which we have used with great success with customers and suppliers around the world - meeting with them to plan and agree
                 upon how our organizations can work together better.




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                                     Change Acceleration Process
                                                              Leading Change:
                                                  Having a champion who sponsors the change.


                            Creating A Shared Need:
                                                                                                                                           S
                                                                                                                                           y
            L                     The reason to change, whether driven by threat or opportunity, is instilled within the                   s
                                  organization and widely shared through data, demonstration, demand or diagnosis.                         t
            e                     The need for change must exceed its resistance.
            a                                                                                                                              e
            d               Shaping A Vision:                                                                                              m
            i                                                                                                                              s
                                  The desired outcome of change is clear, legitimate, widely understood
            n                     and shared.
                                                                                                                                            &
            g               Mobilizing Commitment:

                                  There is a strong commitment from key constituents to invest in the change, make it
                                                                                                                                            S
            C                                                                                                                               t
                                  work, and demand and receive management attention.
            h                                                                                                                               r
            a               Making Change Last:
                                                                                                                                            u
            n                     Once change is started, it endures, flourishes and learnings are transferred throughout                   c
            g                     the organization.                                                                                         t
            e                                                                                                                               u
                            Monitoring Progress:
                                                                                                                                            r
                                  Progress is real; benchmarks set and realized; indicators established to guarantee                        e
                                  accountability                                                                                            s
                                                    Changing Systems and Structures:
                                            Making sure that the management practices are used to
                                                     complement and reinforce change.                                       GE Proprietary Information
HR Best Practices- 022002                                    GE Proprietary / Do Not Distribute                                 For GE Use Only
                              Leadership Development –
                               Crotonville Site Summary

              • 53 Acre Site Located in Ossining, NY
              • Established in 1956 to Conduct Management Training
                  – Continuous Upgrades Including Total Renovation in 1997
                  – Expansions Now Underway/Planned to Residence and Education Building
              • Campus Consists of Four Main Buildings
                  – Residence Building
                  – Education Building
                  – Learning Center
                  – Recreation Building
              • Other Site Features
                  – Health and Fitness Center
                  – Tennis/Racket Ball Facilities
                  – Basketball and Volleyball Courts
                  – Baseball/Softball Field
                                Campus Promotes and Facilitates The Learning Experience
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