Diamond Model of Leadership & GM Problems
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Questions and Answers

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

  • 10%
  • 2%
  • 20% (correct)
  • 30%
  • Which product was manufactured at the GM Fremont Plant before it became NUMMI?

  • Chevrolet Camaro
  • Chevrolet Nova (correct)
  • Geo Prism
  • Ford Mustang
  • What significant change occurred in unresolved grievances after NUMMI was established?

  • Increased to 2000
  • Increased to 5000
  • Remained the same at 2000
  • Decreased to 0 (correct)
  • According to Schein's model, what should be done to change an organization's culture?

    <p>Change cultural artifacts</p> Signup and view all the answers

    What was the productivity status of the GM Fremont Plant compared to the GM average?

    <p>Lower than GM average</p> Signup and view all the answers

    What does VABE stand for in the context of leadership levels?

    <p>Values, Assumptions, Beliefs, Expectations</p> Signup and view all the answers

    What was the total annual grievances at the GM Fremont Plant in 1982?

    <p>5000</p> Signup and view all the answers

    What approach did NUMMI take to improve employee motivation and culture?

    <p>Define desired behaviors and enhance work processes</p> Signup and view all the answers

    What was a primary element of the Diamond Model of Leadership focused on developing within an organization?

    <p>Strategic thinking</p> Signup and view all the answers

    What was the primary goal of General Motors' Sunbelt Strategy initiated in the 1950s?

    <p>To build plants in non-union states</p> Signup and view all the answers

    Which of the following most closely represents a potential result of the Diamond Model of Leadership's emphasis on influence and commitment?

    <p>Increased productivity</p> Signup and view all the answers

    According to the Diamond Model of Leadership, what is a critical factor in managing organizational change?

    <p>Environmental influences</p> Signup and view all the answers

    What conflict arose from the Sunbelt Strategy employed by General Motors?

    <p>Hostility from union representatives</p> Signup and view all the answers

    Which aspect of the Diamond Model of Leadership is most directly involved in achieving organizational outcomes like productivity and efficiency?

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

    What was a likely consequence of General Motors' decision to establish new plants in non-union states during the 1950s?

    <p>Increased conflicts within the workforce</p> Signup and view all the answers

    In terms of strategic thinking within the Diamond Model of Leadership, which factor is essential for sustaining employee energy?

    <p>Commitment to Strategy</p> Signup and view all the answers

    What can be inferred about the relationship between strategic thinking and results in the Diamond Model of Leadership?

    <p>Effective strategic thinking directly leads to improved results.</p> Signup and view all the answers

    Which element of the Diamond Model of Leadership is most closely associated with managing organizational change effectively?

    <p>Designing Organizational Commitment</p> Signup and view all the answers

    What was a notable difference in absenteeism rates between the GM Fremont Plant and NUMMI after the cultural change?

    <p>GM Fremont had 20%, while NUMMI had 2%</p> Signup and view all the answers

    Which of the following best describes the change in total annual grievances from GM Fremont to NUMMI?

    <p>Decreased from 5000 to 2</p> Signup and view all the answers

    What aspect of culture change does Schein’s model emphasize as crucial for successful transformation?

    <p>Altering observable behaviors and actions</p> Signup and view all the answers

    What productivity level was reported for NUMMI compared to GM's average?

    <p>Double the GM average</p> Signup and view all the answers

    Which of the following products was notably associated with NUMMI post-implementation?

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

    Edgar Schein's model proposes that the desired actions and behaviors need to be reinforced through what?

    <p>Defined work processes</p> Signup and view all the answers

    What was the unresolved grievances count at NUMMI after cultural shifts compared to GM Fremont?

    <p>0 at NUMMI vs. 2000 at GM Fremont</p> Signup and view all the answers

    Which behavioral characteristic is emphasized in the concept of VABE in organizational leadership?

    <p>Values, Assumptions, Beliefs, and Expectations</p> Signup and view all the answers

    Study Notes

    The Diamond Model of Leadership

    • The Diamond Model illustrates leadership factors influencing results and encompassing leader, task, others/people, and organization

    • Leader: includes developing influence, commitment to the strategy, and strategic thinking

    • Task: includes designing and managing change

    • Others/People: includes organizational commitment

    • Organization: encompasses interactions across leader, task and people

    • Results: measured by profits, customer satisfaction, market share, efficiency, learning, productivity, and employee energy

    • Environmental Factors: external influences affecting outcomes

    GM Leadership Problems

    • Cartoon depicts a humorous and critical take on GM's leadership, showcasing failures in adapting to necessary innovation and forward thinking

    Short Background on General Motors

    • GM's 1950s strategy involved building plants in the Southern and Western US, avoiding labor unions
    • This approach was seen as a move away from union-controlled states causing conflict in those regions
    • The new plants faced opposition and conflict

    The GM Fremont Plant (1982)

    • Faced numerous challenges including high employee absenteeism (20%)
    • High grievance rates (2,000 unresolved grievances and 5,000 total annual grievances)
    • Frequent wildcat strikes (3-4 strikes)
    • Poor product quality (Chevrolet Nova assembly costs were 30% higher than Japanese equivalents)
    • Low productivity, with the lowest scores in the company

    The NUMMI Plant (1986)

    • Demonstrated significant improvement compared to the Fremont plant
    • Lower absenteeism (2%)
    • No unresolved grievances
    • Zero wildcat strikes
    • Similar product assembly costs like Japanese
    • Productivity improved, reaching a GM average
    • Product quality was the top quality in the division

    How Culture Changes

    • Lessons from NUMMI align with Edgar Schein's model of corporate culture
    • Schein's model suggests culture change occurs through altering observable data, encompassing employee actions that support the desired behaviors/culture

    Levels of Leadership

    • Leadership fundamentally alters human behavior across three interconnected levels
    • Level 1 (Visible behavior): Directly observable actions of the leader & employees
    • Level 2 (Conscious thought): Internal reasoning processes impacting behavior
    • Level 3 (VABE): Values, Assumptions, Beliefs, Expectations & pre-conscious motivations

    Knowing the Heart Understanding Needs

    • NUMMI's success highlighted the importance of understanding worker needs
    • General motivational strategies are considered
    • Examples of employee's needs are considered

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    Description

    This quiz explores the Diamond Model of Leadership, which highlights key factors influencing leadership effectiveness such as leader influence, task management, and organizational commitment. Additionally, it delves into the leadership challenges faced by General Motors, illustrated through a humorous cartoon reflecting on their failures in innovation and strategy. Test your understanding of these concepts and their implications for organizational success!

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