Diamond Model of Leadership and GM Case Study
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Questions and Answers

Which component is not directly linked to the Diamond Model of Leadership?

  • Environmental Effects/Factors
  • Leader
  • Employee Compensation (correct)
  • Strategic thinking
  • What was a significant outcome of General Motors' Sunbelt Strategy?

  • Enhanced market share
  • Conflict in new plants (correct)
  • Reduction in production costs
  • Increased employee satisfaction
  • How did the unions perceive GM's move to build plants in the southern USA?

  • As a strategy to increase profits
  • As an effort to enhance productivity
  • As an attempt to undermine union control (correct)
  • As a method to improve customer satisfaction
  • What aspect of the Diamond Model of Leadership emphasizes managing change?

    <p>Organizational commitment (A)</p> Signup and view all the answers

    Which outcome is emphasized in the Diamond Model of Leadership as a result of effective leadership?

    <p>Heightened market efficiency (B)</p> Signup and view all the answers

    What was the absenteeism rate at the GM Fremont Plant in 1982?

    <p>20% (C)</p> Signup and view all the answers

    Which of the following elements is NOT part of Edgar Schein's model for changing corporate culture?

    <p>External market conditions (A)</p> Signup and view all the answers

    What was the level of unresolved grievances at the NUMMI plant after the changes?

    <p>0 (C)</p> Signup and view all the answers

    Which car model was produced at the NUMMI plant?

    <p>Geo Prism (C)</p> Signup and view all the answers

    How did productivity at the NUMMI plant compare to GM's average productivity?

    <p>It was double that of GM's average. (C)</p> Signup and view all the answers

    Which of the following best describes the assembly costs per car at NUMMI?

    <p>The same as Japanese costs (C)</p> Signup and view all the answers

    What major aspect of workplace culture was emphasized for change according to Schein?

    <p>Observable behaviors (C)</p> Signup and view all the answers

    What was one of the key motivations for NUMMI's workers that needed addressing?

    <p>Job security and respect (C)</p> Signup and view all the answers

    Which component of the Diamond Model of Leadership directly involves influencing commitment towards a strategic direction?

    <p>Leader Influence (B)</p> Signup and view all the answers

    What was a major consequence of the Sunbelt Strategy for General Motors in terms of operational effectiveness?

    <p>High levels of workplace conflict and dissatisfaction (C)</p> Signup and view all the answers

    In the Diamond Model of Leadership, which aspect focuses on achieving high levels of customer satisfaction?

    <p>Results Component (B)</p> Signup and view all the answers

    Which factor was crucial in making the new GM plants in the Sunbelt region conflict-ridden?

    <p>Union resistance against the new plants (D)</p> Signup and view all the answers

    What does the 'Organizational Commitment' component aim to address within the Diamond Model of Leadership?

    <p>Fostering employee motivation and energy (D)</p> Signup and view all the answers

    What was the absenteeism rate at the NUMMI plant after it was restructured?

    <p>2% (A)</p> Signup and view all the answers

    Which of the following best describes how unresolved grievances were handled at NUMMI compared to GM?

    <p>They were virtually eliminated at NUMMI. (C)</p> Signup and view all the answers

    What key behavior change is suggested for those looking to alter corporate culture?

    <p>Change cultural artifacts and behaviors. (C)</p> Signup and view all the answers

    How does Edgar Schein propose to change corporate culture?

    <p>By changing cultural artifacts. (D)</p> Signup and view all the answers

    Which car models were produced at the NUMMI plant after its restructuring?

    <p>Geo Prism and Chevrolet Nova (A)</p> Signup and view all the answers

    What was the productivity level at NUMMI compared to GM's average productivity?

    <p>Double GM's average (B)</p> Signup and view all the answers

    Which of the following was a significant issue at the GM Fremont plant prior to NUMMI's intervention?

    <p>Excessive annual grievances (D)</p> Signup and view all the answers

    What aspect of workplace culture is vital to a leader's ability to affect human behavior?

    <p>Visible behavior (A)</p> Signup and view all the answers

    Flashcards

    Diamond Model of Leadership

    A leadership model focusing on leader influence, strategic thinking, commitment, designing organizational structure, managing change, task management, and developing people, leading to results.

    GM's Sunbelt Strategy

    GM's 1950s strategy of building plants in the American South and West, often in non-union areas.

    Union Opposition to GM's Strategy

    Unions saw the Sunbelt strategy as a way for GM to avoid union-controlled areas.

    Conflict in New GM Plants

    The new non-union plants in the Sunbelt became trouble spots for GM, rife with conflicts.

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    Environmental effects/factors

    External factors that can affect leadership and results, like customer satisfaction, market share, and productivity.

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    NUMMI

    A joint venture between General Motors and Toyota formed in 1984 to produce cars at the former GM Fremont plant in California.

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    GM Fremont Plant (1982)

    A struggling GM plant facing high absenteeism, unresolved grievances, frequent wildcat strikes, and low productivity and quality scores.

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    NUMMI Plant (1986)

    The transformed GM Fremont plant after the NUMMI partnership, exhibiting significantly improved performance metrics like reduced absenteeism, resolved grievances, increased productivity, and top-tier quality.

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    Leadership Levels

    Leadership operates at three levels: Visible behavior, conscious thought, and values, assumptions, beliefs, and expectations.

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    What workers needed at NUMMI

    Workers at NUMMI needed a sense of respect, autonomy, and purpose in their work, along with a collaborative and safe work environment.

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    Cultural Artifacts

    Observable behaviors and actions that reflect the underlying culture of an organization. These include work processes, communication styles, and decision-making approaches.

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    Changing a Culture

    To change a culture, leaders should define the desired behaviors, design work processes to reinforce those behaviors, and continuously refine the culture based on observation and feedback.

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    Leadership Impact on Behavior

    Leaders can influence human behavior by shaping visible actions, shaping conscious thinking, and aligning their values with the organization's goals.

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    Sunbelt Strategy

    General Motors' plan in the 1950s to build plants in the American South and West, often in states with less union presence.

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    Union Opposition to Sunbelt Strategy

    Unions saw GM's Sunbelt strategy as a way to avoid unionized areas and weaken their influence.

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    Hostile & Conflict-Ridden Plants

    GM's new plants in the Sunbelt became known for strong disagreements and confrontations between workers and management.

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    What's the core of the Diamond Model?

    The Diamond Model emphasizes that leader influence, strategic thinking, commitment to strategy, and effective task and people management are crucial for achieving desired results.

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    NUMMI Joint Venture

    A partnership between General Motors and Toyota formed in 1984 to produce cars at the former GM Fremont plant in California.

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    How to Change a Culture

    Change behaviors first, then design work processes to reinforce those behaviors. Continuously refine the culture based on observation and feedback.

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    Three Levels of Leadership

    Leaders affect human behavior at three levels: visible actions, conscious thinking, and values, assumptions, beliefs, and expectations.

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    Understanding Needs: 'Heart' of Change

    To change a culture, understand the underlying needs and motivations of the workforce.

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    Study Notes

    The Diamond Model of Leadership

    • The Diamond Model of Leadership illustrates a framework for understanding effective leadership.
    • The model posits a leader's influence on others and an organization.
    • Key factors include developing influence, commitment to strategy, strategic thinking, designing tasks, managing change, organizational commitment, and results like profits, customer satisfaction, market share, efficiency, learning, productivity, and employee energy.
    • Environmental effects are also a factor in the leader's context.

    GM Leadership Problems

    • A cartoon portrays a leadership problem, highlighting a perceived disconnect between desired innovation and actual results.
    • The cartoon suggests a lack of clear understanding or implementation of a specific concept.

    Short Background on General Motors

    • In the 1950s, General Motors implemented a strategy of establishing plants in the southern and western USA, which were non-unionized ("right-to-work states").
    • This strategy was seen by unions as an attempt to move away from union-controlled states.
    • These new plants, as per the background information provided, became some of the most conflicted and problem-ridden within GM's system.

    1982 GM Fremont Plant

    • Statistics from the 1982 GM Fremont plant include 5000 employees, 20% absenteeism, 2000 unresolved grievances, 5000 total annual grievances.
    • Reported issues include 3-4 wildcat strikes, unfavorable product performance (Chevrolet Nova assembly costs 30% over its Japanese counterpart), low productivity, and poor quality.

    1986 GM NUMMI Plant

    • The 1986 GM NUMMI plant showed significant improvement.
    • The statistic-based comparison mentions 2000 employees, 2% absenteeism, 0 unresolved grievances, 2 total annual grievances, 0 wildcat strikes.
    • The plant produced a Chevrolet Nova+Geo Prism, the product's assembly costs were comparable to Japanese counterparts, and the plant's productivity and quality surpassed the GM average and were amongst the best in GM.

    How Culture Changes

    • Lessons from NUMMI's transformation are consistent with Edgar Schein's model of organizational culture.
    • This model suggests that changing artifacts—observables such as actions and behaviors—can reshape a company's culture.
    • The model also stresses the need to define desired behaviors and craft processes reinforcing them.

    Levels of Leadership

    • Effective leaders influence human behavior at three levels;
    • Visible behavior,
    • Conscious thought, and
    • Values, assumptions, beliefs, and expectations (semi-conscious).

    Knowing the Heart Means Understanding Needs

    • The importance of understanding employees' needs, particularly in the context of the NUMMI plant, is highlighted.
    • The need for leaders to motivate and understand employees' expectations and goals.
    • The importance of considering difficult employees and how leaders can still successfully engage with them.

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    Description

    This quiz explores the Diamond Model of Leadership, emphasizing its framework for effective leadership within organizations. It also examines General Motors' historical leadership challenges and strategic decisions in relation to innovation and influence. Test your knowledge on these crucial concepts of leadership dynamics and organizational commitment.

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