Chapter 11, The People Factory Summary and Analysis

Jack contends that people are GE's core competency, and he has been known to hire in unusual ways. A strong people focus, passion, and intensity, define GE's management. To ensure that every employee knows the rules of the game, formal human resource "Session C" meetings are held at each business location. April and November "Session C" review meetings discuss the organization and people, diversity, and game-changing initiatives. They focus on careers, promotions, vitality curves, strengths and weaknesses, mentoring program results, initiatives, and meetings with local unions. Informally, an unspoken personnel review happens every day in hallways, lunchrooms, and meetings.

The "360-degree evaluation" works for several years, revealing "horses-asses and kiss-ups." The system is replaced when people find a way to "game" it, saying good things about each other to ensure good ratings. Jack develops the...