One of the significant factors influencing the success of businesses is getting the right personnel occupy the appropriate positions within them. Differentiation is essentially a way of managing businesses and people. Usually, it is utilized as a system of management for determining the right individuals along with business approaches for transforming businesses to be unique or exceptional. Even as differentiation is an exceptional strategy, it helps in separating weak people from strong people. It helps in separating high performers from poor performers. Many businesses fail since their do not prioritize the management of people in the systems they use for managing their processes. Many businesses have their strategic plans highly influenced by the styles of leadership of their management cadres rather than being hinged on specific business strategies (Infinite Ideas, 2012). Ideally, businesses ought to put in place, or design, workforces in ways that add to them specific value and help in growing own strategic objectives. As a structured management system, differentiation helps lead business to success.
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There are various strengths, as well as downsides, of the differentiation manner that Jack Welch suggests in his frameworks. As well, Welch makes various assumptions in relation to the manner. Welch indicates that businesses are bound to suffer when they treat all stakeholders equally. When a business sets up a differentiation management system, the business becomes better placed to run effectively as well as efficiently. Regarding the strengths, the differentiation of employees may be seen as a means of making everyone win. That allows each of the employees to appreciate his or her position. The downsides and assumptions largely entail the numerous unconstructive, or negative, ways various individuals perceive differentiation. Particular individuals take differentiation as being unjust since they feel those who are close to the bosses as more likely to enjoy particular benefits than them.
Differentiating staff members the way Welch suggests may not work where managers are convinced that money can be issued out to generate success. There are many managers who are inclined towards offering monetary benefits to staff members to improve performance and business productivity. Some managers use the schemes they put in place to confer monies to staff members indiscriminately selfishly. Such managers are quite likely to take to politicking, as well as jockeying, to suffice their selfish interests.
To steer clear of conflicts, such managers are likely to confer benefits to employees indiscriminately without assessing the need for acting in that way (Infinite Ideas, 2012). Differentiating staff members the way Welch suggests has the strength of helping businesses triumph over the extant competition. Differentiating staff manners the way Welch suggests has the strength of helping businesses triumph over the extant competition especially in this age of digitization. Besides, differentiating staff manners the way Welch suggests has the strength of helping businesses triumph over the extant competition especially in this age of globalization (Parmenter, 2012).
The principal assumption that Welch makes is that employees fall into distinct categories. He views differentiation as a structured process through which employees are assessed and classified based on own performance. Welch assumes that 10% of all employees are poor performers. Welch assumes that 70% of all employees are average performers. Welch assumes that 20% of all employees are top performers. It may not be possible for managers to work based on such rigid distinction always. Welch comes off as convinced that 20% of all employees, who are top performers, can be kept more and more productive by showering them with varied rewards, including training, care for, praise, stock options, and bonuses. There is no scientific study that has shown conclusively that conferring such benefits to those deemed to be high performers improves their performance always (Infinite Ideas, 2012).
Welch assumes that the average performers should be managed differently from the top performers. According to him, the average performers can have their productivity heightened considerably via positive feedback, considered goal setting and training. There is no scientific study that has shown conclusively that positive feedback, considered goal setting and training improves their performance always (Hill & Langdon, 2007; Infinite Ideas, 2012). According to Welch, the poor performers should be relieved of own duties and roles. Welch assumes that a poor performer will leave his or her employer without a fight. That is usually not the case.
There are various suppositions that a person should to accept differentiation. Like Welch, the person should assume that employees fall into distinct categories. He views differentiation as a structured process through which employees are assessed and classified based on own performance (Infinite Ideas, 2012). As well, he or she should assume that a business succeeds when its leaders or managers make meaningful and clear distinctions between employees who are high performers and the employees who are poor performers. He or she should view the business as comprising of two components, hardware and software. The software comprises of people. The hardware may be the extant product lines and business portfolio.
In assessing employees to determine which category they fall into, one can use the performances of the employees against set benchmarks. The benchmarks should be objective. That would ensure that the employees are not categorized subjectively. Employees who score highly in the assessment should be taken as high performers. Employees who score lowly in the assessment should be taken as poor performers. Employees who score averagely in the assessment should be taken as average performers.
To ensure that employee differentiation is productive and equitable, there should be open communication in a business. That would ensure the employees in the business are aware of the benchmarks against which their performance will be appraised. The business should put in place a competitive culture. That will ensure that the employees strive to outdo each even as they heighten the business’ performance (Infinite Ideas, 2012). The most important that can ensure that employee differentiation is productive and equitable in business is impartiality.
If at all possible, businesses ought to put in place, or blueprint, workforces in ways that add to them definite value and lend them a hand in growing own planned objectives. As a prearranged management system, differentiation helps lead business to success. There is a choice of strengths, as well as downsides, of the differentiation manner that Jack Welch suggests in his frameworks. The most important assumption that Welch makes is that employees fall into distinctive categories. He views differentiation as a prearranged process through which employees are assessed and classified based on own performance. There are diverse suppositions that a person should to accept differentiation. The person should presume that employees fall into different categories. The most significant value that can ensure that employee differentiation is fruitful and evenhanded in business is impartiality.
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