In 1995 Jack Welch sent a memo to his senior managers telling them that they wou

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Do you believe that this directive was a motivational action, or did it violate W. Edwards Deming’s maxim that managers and leaders must “cast out fear”? Why or why not?

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Explanation & Answer

Jack Welch was the smartest and very impatient CEO of GE in 1981. He was ruthless at reducing cost. His memo demanded that all employees, managers and leader must train and complete the six sigma program if they wanted promotion. The six sigma program is used in manufacturing industry,  a process that removes defects and reduces cost in a short period but increases customer satisfaction.

Jack Welch's directive violates one of Edward Demings 14 point  principles of management which is to drive out fear. Edward Demings stated that management that demands quick result is bound to be doomed and disappointed.

Jack Welch leadership style using the six sigma program pushes managers to work under pressure and achieve results in the short-run.

Really useful study material!