Training and Development - The GE Way

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Case Details:

Case Code : HROB072
Case Length : 18 Pages
Period : 1981-05
Pub Date : 2005
Teaching Note : Available
Organization : General Electric Company
Industry : Diversified
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Focus on e-Learning

GE had started implementing on-line training way back in the year 1998. While it was analyzing the return on investment for one of its courses at GE Aircraft Engineering , the company discovered that the three-day course cost the company $47 an hour in terms of productivity loss per customer and $1,500 for travel and living expenses incurred on participants who had to be flown in from various locations to GE Transportation's Cincinnati headquarters.

The existing training facility also needed a revamp and was estimated to cost $4.5 million. It was at this point that the company decided to implement an online course instead.

Later, when the company assessed the effectiveness of the online program, it turned out that employees were able to absorb nearly the same learning in a three hour online course.

It saved the time employees spent away from work. In addition, the company did not have to incur any additional costs for travel and related expenses...

The Impact

GE was recognized for its ability to maximize the value of the enterprise's intellectual capital by producing exceptional leaders.

Analysts observed that GE never experienced any dearth of good leaders to take over the reins as and when the need arose.

Experts pointed out that another key benefit of GE's focus on training was that it brought global consistency to all its businesses. As Rick Kennedy, manager, media relations, GE Aircraft Engines, remarked, "Despite the company's size, everyone has a common set of objectives to work from and it's very effective." GE had been able to use its diversity to transform itself into a learning organization where employees could develop themselves continuously. The on-the-job rotational assignments that the company offered enabled employees to get tremendous exposure across its varied business segments and divisions and gave them unmatched practical exposure to sharpen their managerial capabilities...


Exhibit I: GE's Distinguished Alumni
Exhibit II: Top Companies for Executive Development
Exhibit III: Crotonville's Mission
Exhibit IV: Various T&D Programs at Major Businesses of GE
Exhibit V: Financial Management Program
Exhibit VI: Information Management Leadership Program
Exhibit VII: Edison Engineering Development Program
Exhibit VIII: Operations Management Leadership Program
Exhibit IX: Distinguished FMP Graduates
Exhibit X: Experienced Commercial Leadership Program
Exhibit XI: Human Resource Leadership Program


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