[Class]The X FactorCritically analyse and evaluate how leadership, motivation and rewards might contribute to this "essential X factor" for both employees and organisational high performance. IntroductionThe CIPD (2001) reports that leadership, employee motivation and pay systems that are based on rewarding employees can significantly contribute to the level of productivity and performance which is seen at various enterprises. A critical evaluation of this statement is possible by looking at the example presented by Apple Inc. and GE which has been given the title of the most admired company in the world by Fortune magazine (Demos, 2006).
The case of GE shows that GE has the X factor which is provided by a combination of the leadership values at GE as well as the motivational and reward management policies which are followed at the company. There is no other company in the world which is as well respected as GE in terms of business practices (Demos, 2006). Of course the company has had some management related issues in the past but in recent years, it has been given the highest awards and accepted as one of the global stalwarts of good management methods (Fisher, 2006).
The respect that GE has owes a lot to the way in which GE manages and creates leaders at the company. These leaders help to provide motivation for GE employees and reward them for high performance levels which in turn, make GE more productive (Welch, 2005). While GE is a large company with more than 300,000 employees, Schmitt (2001) notes that the policies used by GE can be applied for smaller firms as well. This is because GE is in a variety of businesses where the same values are applied across the board.
The company has entered markets which related to high technology, financial services and even the manufacture of medical equipment and it maintains a leadership position in those fields. Most importantly, while GE works in more than 150 countries around the world, its core values remains the same regardless of the fact that it is working in Australia, the UK, the United States of America or India (GE, 2006). LeadershipGE appears to be using the functionalist paradigm of management which suggests that people will behave rationally.
The paradigm also suggests that organizational behaviour can be understood through experimental observation and by evaluations of created hypotheses (Boxall and Purcell, 2003). This paradigm is certainly applicable for GE since its leadership system and the way in which the leaders of the company interact with the employees is based on rationality. This rationality also becomes evident for rewarding and motivating employees but Leadership has to be considered first since it starts from the top. Jack Welch is the former CEO of GE and his leadership style as well as his leadership policy has been maintained at GE even after his departure.
In fact, as reported by Colvin (2006) little has changed since his exit because the systems established by him were continued in place with only minor modifications to reflect the changing times. Welch has shared his experiences concerning management in his book titled Winning and his leadership values have been recognised by Business Week since it considers him to be America’s Best Manager (Byrne, 1998).