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Great Manager

General Electric’s Jack Welch Identifies Four Types of Managers

February 6, 2008 By Nagesh Belludi 5 Comments

Jack Welch's Four Types of Managers

Four Types of Managers

Jack Welch, Chairman and CEO of General Electric from 1981 to 2001, described four categories of managers in General Electric’s year 2000 annual report.

Type 1: shares our values; makes the numbers—sky’s the limit!

Type 2: shares the values; misses the numbers—typically, another chance, or two.

Type 3: doesn’t share the values; doesn’t make the numbers—gone.

Type 4 is the toughest call of all: the manager who doesn’t share the values, but delivers the numbers. This type is the toughest to part with because organizations always want to deliver and to let someone go who gets the job done is yet another unnatural act. But we have to remove these Type 4s because they have the power, by themselves, to destroy the open, informal, trust-based culture we need to win today and tomorrow.

We made our leap forward when we began removing our Type 4 managers and making it clear to the entire company why they were asked to leave—not for the usual “personal reasons” or “to pursue other opportunities,” but for not sharing our values. Until an organization develops the courage to do this, people will never have full confidence that these soft values are truly real.

Live by Corporate Values

Organizations face the challenge of developing and sustaining a culture that is both values-centered and performance-driven. They begin by developing mission and value statements that, in due course, become little more than wall decorations because the organization’s leaders and managers fail to uphold these values.

Nothing hurts morale more than when leaders tolerate employees who deliver results, but exhibit behaviors that are incongruent to values of the company. For instance, an organization that thrives on teamwork will suffer, over the long term, if a manager habitually claims all credit for his team’s accomplishments.

Idea for Impact: Core Values Matter!

As a manager, drive accountability. Hold employees responsible for their behaviors. Reward employees for proper behaviors and publicly discourage behaviors that do not uphold values. Do not make exceptions—exceptions signify your own indifference to the upholding of values.

As an employee, understand that an essential requirement for your success in your organization is your fit. Your behaviors must be congruent with the character and needs of your organization. Even if you are talented, you will not fare well if your behaviors are inconsistent with the values of your organization. Reflect on your behavior. On a regular basis, collect feedback from your managers, peers and employees. Seek change.

Keep the company values front and center in people’s mind.

Wondering what to read next?

  1. Seven Real Reasons Employees Disengage and Leave
  2. Fire Fast—It’s Heartless to Hang on to Bad Employees
  3. Eight Ways to Keep Your Star Employees Around
  4. How to Manage Overqualified Employees
  5. Don’t Push Employees to Change

Filed Under: Managing People, Sharpening Your Skills Tagged With: Coaching, Employee Development, Feedback, General Electric, Great Manager, Hiring & Firing, Human Resources, Jack Welch, Mentoring, Motivation, Performance Management

A Manager Badmouths an Employee

January 2, 2008 By Nagesh Belludi 1 Comment

Recently, I observed the following instance of a manager’s poor attitude towards an employee.

Here is the case of Sandy, a manager, and Clark, her employee.

Clark had joined Sandy’s team four months previously. She did not get to interview and select him into her team.

Clark was not one of Sandy’s favorite employees. They had little in common and had difficulty getting-along. A communication break-down ensued.

Sandy paid little attention to Clark and did not train him well. Nor did she elaborate her expectations of his performance. Over time, Clark’s sub-standard work resulted in serious consequences for the organization.

Every time customers approached Sandy and complained of problems stemming from Clark’s carelessness, Sandy underscored those complaints. She portrayed him in a negative light: a troublemaker, a nonconformist, and obstinate to feedback. In due course, she exclaimed she was helpless and recommended laying-off Clark.

Eventually, Sandy’s badmouthing Clark did not go unnoticed. The leader of the organization reprimanded Sandy for her poor attitudes toward Clark and demanded correction of her behavior. When Clark learned of Sandy’s recurring badmouthing, he was upset and lost confidence in her. He requested a transfer to another organization.

Badmouthing is Disrespectful

In venting her grievances about Clark to the organization’s customers and peers, Sandy was perhaps trying to draw sympathy towards her helplessness—for not being able to change Clark’s behavior. On balance, she did not have a say in interviewing or selecting him.

Sandy did not realize, however, that by openly criticizing Clark, she was drawing unnecessary attention to her own shortcomings in two important aspects of her role as a manager. Firstly, with the communication break-down, she did not anticipate problems with Clark’s projects and take timely measures to mitigate potential negative consequences. Secondly, she failed to coach Clark, provide corrective feedback, and help him to change his behavior.

Take-Away Lessons for Managers

  • Do not openly criticize or air grievances about your employee in public. In addition to creating employee frustration, you draw unnecessary attention to your own managerial failure.
  • When people approach you with problems they face with your employees, acknowledge the problem, pledge to study further and correct the problem immediately. Show support for your employee. Ask what steps you could take to avoid such problems in the future. Promptly follow-up with your employee and help him/her overcome the problem.
  • Recognize that trust is the foundation of a good working relationship between a manager and an employee. An employee looks to a manager for support, feedback and opportunities for improvement. Not supporting—and worse, badmouthing—your employee can be detrimental to this manager-employee relationship. As we have discussed in previous blog articles here and here, an employee’s relationship with the boss is a key determinant of the employee’s satisfaction with his/her job.

Handling criticisms of employees is a routine part of a manager’s job. By acknowledging an employee’s shortcomings, being supportive of the employee and encouraging corrective actions, a manager can earn respect from all quarters of the organization—employees, peers and superiors.

Wondering what to read next?

  1. General Electric’s Jack Welch Identifies Four Types of Managers
  2. Never Hire a Warm Body
  3. Never Skip Those 1-1 Meetings
  4. From the Inside Out: How Empowering Your Employees Builds Customer Loyalty
  5. Management by Walking Around the Frontlines [Lessons from ‘The HP Way’]

Filed Under: Managing People Tagged With: Great Manager

The Foundation of Great Relationships: Get to Know People

June 16, 2007 By Nagesh Belludi 2 Comments

An Act of Astonishing Leadership

In a sermon on the meaning of work, Nancy Ortberg of the Menlo Park Presbyterian Church, recalled an astonishing leadership act from when she worked as an emergency room nurse earlier in her career.

“It was about 10:30 p.m. The room was a mess. I was finishing up some work on the chart before going home. The doctor with whom I loved working was debriefing a new doctor, who had done a very respectable, competent job, telling him what he’d done well and what he could have done differently.”

“Then he put his hand on the young doctor’s shoulder and said, ‘When you finished, did you notice the young man from housekeeping who came in to clean the room?’ There was a completely blank look on the young doctor’s face.”

“The older doctor said, ‘His name is Carlos. He’s been here for three years. He does a fabulous job. When he comes in he gets the room turned around so fast that you and I can get our next patients in quickly. His wife’s name is Maria. They have four children.’ Then he named each of the four children and gave each child’s age.”

“The older doctor went on to say, ‘He lives in a rented house about three blocks from here, in Santa Ana. They’ve been up from Mexico for about five years. His name is Carlos,’ he repeated. Then he said, ‘Next week I would like you to tell me something about Carlos that I don’t already know. Okay? Now, let’s go check on the rest of the patients.'”

“I remember standing there writing my nursing notes–stunned–and thinking, I have just witnessed breathtaking leadership.”

Call for Action: Get to Know People

Getting to know and caring for people is the foundation of great relationships, both in our personal and professional lives. We know little about the people we interact with on a daily basis—often, we know nothing beyond their first and last names, and their functional responsibilities.

Here are seven fundamental steps to help know people.

  • Most people are enthusiastic about sharing their stories—of where they grew up, their life-experiences, travels, hobbies, interests, or children. Depending on the level of acquaintance, gauge whether a specific person would be comfortable with talking about himself/herself.
  • Consider asking open-ended questions. Initial questions can focus on a favourite sport, travel or school/career history.
  • A person’s desk may provide clues for conversation starters. Some people have pictures of kids, pets or their hometown. Others have memorabilia from a sports team they support or their school. Some others have plaques from the awards and recognitions they won. People are keen to talk about these interests—they are great topics to start conversations on.
  • Listen carefully. Make a mental note of the details the person provides.
  • Relate to the other person’s stories and share your experiences. This helps the other person to get to know you too.
  • After your conversation, jot down a few details to facilitate a follow-up conversation later. For instance, if your project manager talked about her children, write down the kids’ names, their school, etc.
  • Be careful not to pry too deep. Steer away from conversations on social or economic status, health, faith, and other personal details. Watch for gestures of discomfort when you ask questions.

Listening to people and getting to know them transforms your relationships: it helps you connect with people positively and discover shared values/interests. At a higher level, it demonstrates your caring for your people and helps you influence them or facilitate change, depending on the nature of your relationship with them.

Notes: Reference to Nancy Ortberg’s sermon via Guy Kawasaki of Garage Ventures and Rich Karlgaard of Forbes Magazine.

Wondering what to read next?

  1. Good Boss in a Bad Company or Bad Boss in a Good Company?
  2. This is the Career “Kiss of Death,” according to Lee Iacocca
  3. ‘I Told You So’
  4. Witty Comebacks and Smart Responses for Nosy People
  5. Let Others Think What They May

Filed Under: Sharpening Your Skills Tagged With: Getting Along, Great Manager, Social Life

Managerial Skills #2: Offering Retirees a Soft-landing

June 7, 2007 By Nagesh Belludi Leave a Comment

“Retired is being twice tired, I’ve thought.
First tired of working, then tired of not.”
– Richard Armour (American poet)

Retiring is a significant transitional event in one’s life. Retirement is ideally a happy stage of one’s life–an opportunity to relax and lead a peaceful life after decades of hard work. Yet, retirement can be stressful for numerous reasons: not being financially well prepared, failing health, the prospect of not being around people, or, missing work.

Managers can reduce retirement stress by offering retirees a soft-landing. As an alternative to cutting responsibilities abruptly, a prudent manager can allow a near-retiree to work for fewer hours and gradually handover responsibilities to successors. Part-time work can also help near-retirees to discover interests and activities they can retire to.

Consider the flexibility that your organization can allow. Encourage the retiree to contemplate various options you can offer. Do not impose any plan—the retiree will support any arrangement he/she helped establish.

A soft-landing will help retirees brace themselves for the substantial changes in lifestyle following retirement.

Wondering what to read next?

  1. Keeping a Diary on Employee Performance
  2. Employee Engagement: Show Them How They Make a Difference
  3. These are the Two Best Employee Engagement Questions
  4. How to … Lead Without Driving Everyone Mad
  5. How Far You’ve Come

Filed Under: Managing People Tagged With: Great Manager

Keeping a Diary on Employee Performance

December 8, 2006 By Nagesh Belludi 1 Comment

Blog reader Sasawat from Bangkok (Thailand) asks:

“I recently joined a multinational chemicals company that uses a performance appraisal system. I supervise seven engineers. To help me do their performance evaluations at the end of the year, should I maintain a diary to record their projects and actions?”

Most managers rely on employee performance in the period immediately preceding the performance evaluation deadline. Unfortunately, they do not weigh performance from throughout the year (or quarter, if their organizations use a quarterly review system.) Some employees exploit this behavior by slacking-off during most of the year and by shaping-up in the weeks before a performance evaluation is due.

Keeping a Diary on Employee PerformanceA log or a diary will help managers record employee projects and behaviors in one location. Clearly, recording significant and relevant examples of employee performance helps managers write objective performance summaries.

Recording events in a dairy every week, however, becomes overwhelming when you have seven employees. Instead, ask each employee to keep a diary of his/her achievements. Review this information with your employee once every week. Give regular, specific feedback, both affirmative and corrective. This ensures that you keep yourself informed of your employee’s work and demonstrates that you care about his/her current work and achievements.

When a performance evaluation is due, study the employee’s diary along with your notes, if any from your weekly meetings. You should not have to dig through your files or seek reports from various sources. You will have accumulated all the data you will need, in one place, to help you prepare for an effective performance evaluation statement and discussion.

Wondering what to read next?

  1. General Electric’s Jack Welch Identifies Four Types of Managers
  2. Never Skip Those 1-1 Meetings
  3. From the Inside Out: How Empowering Your Employees Builds Customer Loyalty
  4. Fostering Growth & Development: Embrace Coachable Moments
  5. Does Money Always Motivate?

Filed Under: Managing People Tagged With: Great Manager, Performance Management

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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