"GEs Challenges Going Forward As this chapter has shown, firms need to clearly link their strategies, cultures, and people. Strategies define where, how, and with what firms will compete. Culture defines the shared norms regarding appropriate behaviors and can encourage behavior that supports the strategy. People execute strategies and culture can attract and guide them.Page 104 While GE was known for years as being the role model for other companies, it drifted over time. Part of the strategy entailed being the best in any industry, and if they were not the best, the business leader was to fix it, close it, or sell it. This strategy was supported by a highly disciplined and competitive culture that attracted and retained bright and ambitious people. However, as the strategy drifted and the culture evolved into one that seemed to reinforce conformity. GEs struggles seemingly stem from a culture that stifled dissent. The lack of dissent led the company into a series of strategic decisions that ended up putting the company at risk. The current financial situation threatens their ability to attract and retain talent. John Flannery took over as CEO in 2017, inheriting a series of difficult challenges. As much as he tried to deal with them, the winds blew too strongly against him, and he was fired 14 months after assuming the helm. He was replace by Larry Culp, a board member who has served as the CEO of Danaher Corporation. Sadly, the company that was known for building the greatest leaders had to hire its next CEO from outside.

QUESTIONS What do you think might have led GE to make poor strategic decisions? How might an HR executive influence those decisions to be better?

How important do you think culture is to the success of a business? In what ways can getting culture right contribute to the business and getting it wrong hurt the business?

Why do you think talent or people are critical to business success? In what ways do they need to be aligned to strategy?"

Strategic Human Resource Management: GE's Challenges Going Forward At the end of Chapter 2 is a Look Back section, which visits the GE case and asks 3 questions, address all 3 questions. Mgt 3410