Leadership and GM Challenges
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Questions and Answers

What was a key reason unions opposed General Motors' Sunbelt Strategy in the 1950s?

  • It focused on expanding production in suburban areas.
  • It was seen as a move away from union-dominated regions. (correct)
  • It resulted in the increase of employee salaries.
  • It shifted operations to union-controlled states.

Which component of the Diamond Model of Leadership focuses on creating organizational commitment?

  • Strategic Thinking
  • Developing Influence (correct)
  • Results
  • Managing Change

In the Diamond Model of Leadership, which result directly correlates with effective strategic thinking?

  • Employee Energy
  • Customer Satisfaction (correct)
  • Market Share
  • Designing Tasks

What aspect does the 'TASK' component of the Diamond Model address?

<p>Organizational Design (B)</p> Signup and view all the answers

Which consequence did General Motors experience due to the establishment of new plants under the Sunbelt Strategy?

<p>Escalation of conflicts within new plants (C)</p> Signup and view all the answers

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

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

Which aspect of NUMMI's production improved the most compared to GM in the same period?

<p>Productivity (D)</p> Signup and view all the answers

According to Edgar Schein's model, what is critical for changing an organization's culture?

<p>Changing cultural artifacts (D)</p> Signup and view all the answers

How many unresolved grievances did the GM Fremont Plant have in 1982?

<p>5000 (C)</p> Signup and view all the answers

What was the assembly cost per car at NUMMI compared to the assembly cost over Japan?

<p>The same as Japan (B)</p> Signup and view all the answers

What best describes the wildcat strikes at NUMMI compared to the GM Fremont Plant?

<p>NUMMI had no strikes, while GM had 3-4 (C)</p> Signup and view all the answers

In what category did NUMMI rank best compared to GM in 1986?

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

Which of the following factors is NOT a level of leadership affecting human behavior?

<p>Backstage dynamics (A)</p> Signup and view all the answers

What was one major consequence of the establishment of new plants under General Motors' Sunbelt Strategy?

<p>Heightened conflict and hostility in new plants (B)</p> Signup and view all the answers

Which factor in the Diamond Model of Leadership is primarily related to managing change within an organization?

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

In the context of the Diamond Model of Leadership, what does the component labeled 'RESULTS' primarily focus on?

<p>Quantifiable outcomes such as profits and market share (C)</p> Signup and view all the answers

What best characterizes the Sunbelt Strategy implemented by General Motors in the 1950s?

<p>Construction of plants in non-union 'right to work' states (B)</p> Signup and view all the answers

Which element in the Diamond Model of Leadership directly impacts employee energy and productivity?

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

What factor greatly contributed to the reduction of absenteeism from 20% at GM to 2% at NUMMI?

<p>Enhanced employee engagement through culture change (A)</p> Signup and view all the answers

How did the organizational processes at NUMMI differ from those at GM in terms of grievance handling?

<p>NUMMI implemented a more structured grievance resolution process. (A)</p> Signup and view all the answers

What approach did Edgar Schein advocate for changing organizational culture?

<p>Altering cultural artifacts to reflect desired behaviors (C)</p> Signup and view all the answers

Which level of leadership directly influences conscious thought and decision-making in an organization?

<p>Conscious thought (B)</p> Signup and view all the answers

What was one major difference in productivity between NUMMI and GM?

<p>NUMMI's productivity was double the GM average. (A)</p> Signup and view all the answers

What was the impact of culture change on the quality of vehicles produced at NUMMI compared to GM?

<p>NUMMI achieved the highest quality ranking within GM. (B)</p> Signup and view all the answers

What sums up NUMMI's innovative approach to employee motivation?

<p>Establishing an inclusive culture that addressed employee needs. (D)</p> Signup and view all the answers

Which cultural artifact was instrumental in changing the behavior of NUMMI employees?

<p>Visible signage promoting corporate values (D)</p> Signup and view all the answers

Flashcards

Diamond Model of Leadership

A leadership model focusing on the interaction between the leader, the organization, and environmental factors, ultimately affecting results.

Sunbelt Strategy

General Motors' strategy to build plants in the Southern and Western USA to avoid union influence.

GM Leadership Problems

General Motors faced challenges related to their leadership, which affected factors like efficiency and employee satisfaction.

Union Avoidance Strategy

A strategy to avoid union representation in the workplace, often by moving plants to areas not traditionally unionized.

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"Right to work" States

US states that have laws restricting the ability of unions to require membership or fees from employees in order to work at a company.

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GM Fremont Plant 1982

A GM plant in 1982 with high absenteeism, grievances, and low productivity, quality, and assembly costs relative to Japanese manufacturers (Chevrolet Nova Product).

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NUMMI Plant 1986

An improved GM Fremont plant in 1986, exhibiting dramatically improved employee engagement and high performance metrics and assembly costs relative to Japanese competitors (Chevrolet Nova+Geo Prism).

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Changing Corporate Culture

Transforming an organization's values, behaviors, and assumptions to achieve desired outcomes.

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Levels of Leadership

Leadership's influence impacting human behavior at three different levels: visible behavior, conscious thought, and Values, Assumptions, Beliefs, Expectations (VABE).

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Visible Behavior

Observable actions and reactions of people in an organization (body-language).

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Conscious Thought

Mental processes reflecting the thoughts of employees and leaders in the workplace.

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VABE's

Values, Assumptions, Beliefs, and Expectations, representing the semi-conscious and pre-conscious parts of behaviors in the workplace.

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Worker Needs

Understanding and addressing the desires and expectations of workers.

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NUMMI

A joint venture between General Motors and Toyota that aimed to improve the performance of the GM Fremont plant by adopting Toyota's lean manufacturing principles.

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Cultural Artifacts

Observable aspects of an organization's culture, including behaviors, practices, and physical environment, that reflect underlying values and beliefs.

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Study Notes

The Diamond Model of Leadership

  • The diamond model illustrates leadership factors affecting results
  • A leader's influence affects others, and their commitment to strategy.
  • A leader's strategic thinking impacts organizational tasks.
  • Designing and managing change are key tasks.
  • The leader's commitment to strategy, influence on others, and performance of organizational tasks leads to the organization's results.
  • Results include profits, customer satisfaction, market share, efficiency, learning, productivity, and employee energy.

GM Leadership Problems

  • GM leadership faced criticism for not truly understanding a concept.

General Motors Background

  • In the 1950s, General Motors established plants in the American South and West.
  • These plants were set up in "right-to-work" states that did not have union labor contracts.
  • These plants were seen unfavorably by unions as an attempt to avoid union influence.
  • This resulted in conflict in the new plants.

1982 GM Fremont Plant Issues

  • Employees: 5000
  • Absenteeism: 20%
  • Unresolved Grievances : 2000
  • Total Annual Grievances: 5000
  • Wildcat Strikes: 3-4
  • Chevrolet Nova Assembly Costs: 30% greater than Japanese counterparts
  • Productivity: Worst in GM
  • Quality: Worst in GM

1986 GM NUMMI Plant Performance

  • Employees: 2000
  • Absenteeism: 2%
  • Unresolved Grievances: 0
  • Total Annual Grievances: 2
  • Wildcat Strikes: 0
  • Chevrolet Nova/Geo Prism Costs : Same as Japanese models
  • Productivity: Doubled GM average
  • Quality: Best in GM

How Culture Changes

  • Edgar Schein's model of corporate culture provides insights into culture change.
  • The model suggests changing cultural artifacts - observable data regarding behavior and actions - is necessary to change culture.
  • Understanding the desired behaviors and processes for the new culture helps shape organizational changes.
  • Shook's and Schein's models differ on how to initiate change in a culture.

Levels of Leadership

  • Leadership impacts human behavior on three levels:
    • Visible behavior
    • Conscious thought
    • VABE's (Values, Assumptions, Beliefs, Expectations)
    • Visible behaviors, conscious thought, and unconscious values/ beliefs all contribute to a leader's impact.

Understanding Needs

  • Identifying the needs of employees at NUMMI was vital to improving the company's culture.
  • In general, effective leadership motivates employees by fulfilling basic needs.
  • Leaders need to understand the needs of different people to motivate them.

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Description

Explore the Diamond Model of Leadership and its impact on organizational performance through the lens of General Motors' historical leadership issues. This quiz examines the relationship between strategic thinking, change management, and leadership effectiveness, especially in the context of GM's challenges with union relations and plant management in the 1950s and beyond.

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