The Impact of Path-Goal Leadership Behaviors on The Financial Performance and Organizational Culture of General Electric Europe (2017)

This dissertation examines the impact of leadership behaviors on the organizational performance of General Electric and organizational culture of General Electric Europe using the examples of Jack Welch’s and Jeff Immelt’s path-goal leadership behaviors. The analysis is conducted using the combined methodological approach, which includes descriptive statistics, the analysis of secondary data, and the questionnaire.

As a result, it becomes possible to conclude that Jack Welch possesses an achievement-oriented leadership behavior, and Jeff Immelt possesses a participative leadership behavior. The analysis of the annual reports and the financial data presented in the Appendix F to Q about GE and its competitors allows concluding that the impact of Welch’s leadership behavior on the performance of GE is more profound and significant in the short run.

Jeff’s leadership behavior delivers more modest results in the short run, but has a potential to significantly improve the performance of the company in the long run. In addition, the organizational culture survey shows that the participative leadership behavior contributes to a better organizational climate, even though the clearness of the company’s vision and goals becomes somehow blurrier.

The central research question of the dissertation can be formulated as follows: “What is the impact of path-goal leadership behaviors on the financial performance and the organizational culture of General Electric Europe?” The answer to this question allows identifying how each of the four main types of path-goal leadership behaviors, namely directive leadership behavior, achievement-oriented leadership behavior, participative leadership behavior, and supportive leadership behavior, affects and affected the performance and organizational culture, of General Electric.

These leadership behaviors are measured using the research of House (1996) and Martin Evans. The aim of the dissertation is to study the impact of the path-goal leadership behaviors of Jack Welch and Jeff Immelt on the financial performance and organizational culture of GE.

Dissertation Objectives

• To study the impact of path-goal leadership behaviors on organizational performance using both theoretical and empiric approaches and to cover the academic theories, concepts, and models of the topic of leadership
• To assess the impact of different path-goal leadership behaviors on organizational culture using the dimensions of the Denison organizational culture chart
• To compare the impact of path-goal leadership behaviors and their efficiency in relation to human resources and other resources of organizations, such as land, capital, and intangible resources, which are reflected in the balance sheet, income statement, and other pieces of financial information located in the financial reports
• To identify the most-efficient leadership styles based on the analysis of the situations, in which they are applied, and organizational growth or wane they cause
• To cover the academic theories, concepts, and models that may influence the research methods used

• 16,000 words – 62 pages in length
• Excellent use of literature
• Excellent analysis of subject area
• Well written throughout
• Includes questionnaire
• Ideal for MBA students

1 – Introduction
Background
Research Problem
Dissertation Objectives
Methodology Deployed
Research Rationale
Dissertation Structure

2 – Literature Review
Introduction
The Overview of Theoretical Approaches to The Identification of Path-Goal Leadership Behaviors
The Role of Dependent, Independent, And Intervening Variables, The Role of Moderators in The Identification and Assessment of Path-Goal Leadership Behaviors
The Assessment and Choice of Organizational Culture Measurement Tools

3 – Background Information on The Main Characters Of The Research
Jack Welch
Jeff Immelt

4 – Methodology
Research Philosophy
Research Approach
Research Strategy
Research Choices, Time horizons, Techniques and Procedures
Research Reliability, Validity, and Generalisability

5 – Discussion

6 – Data Analysis

7 – Conclusions and Recommendations

8 – Research Limitations

Bibliography

Appendices
Blake and Mouton’s Managerial Grid
Path-goal leadership behaviors introduced by Martin Evans and developed by House
Organizational culture measurement tool
GE’s stock prices during Jack Welch’s tenure and after Jeff Immelt’s coming to power
The Questionnaire
GE’s financial results during the tenure of Jack Welch
The increase in the revenues of chosen divisions caused by acquisitions
The analysis of the impact of layoffs in GE on the increase of the company’s revenue
The stock prices of United Technologies Corporation in the period from 1980 to 2000
The stock prices of Caterpillar Company in the period from 1980 to 2000
The stock prices of Deere & Company in the period from 1980 to 2000
GE’s performance during the first 10 years of Jeff Immelt’s tenure
The stock prices of United Technologies Corporation in the period from 2005 to 2015
The stock prices of Caterpillar in the period from 2005 to 2015
The stock prices of Deere & Company in the period from 2005 to 2015
The stock prices of GE (2005-2015)
The results of the questionnaire