Leadership 2: Case Study of GM
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Questions and Answers

What was a significant issue at the GM Fremont Plant before the NUMMI transformation?

  • Low assembly costs per car
  • Low absenteeism rates
  • High number of unresolved grievances (correct)
  • High employee morale

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

  • 20% (correct)
  • 30%
  • 10%
  • 2%

Which product was produced at the GM Fremont Plant during its struggle in 1982?

  • Geo Prism
  • Chevrolet Camaro
  • Chevrolet Malibu
  • Chevrolet Nova (correct)

How did the productivity of the NUMMI Plant compare to the Fremont Plant?

<p>It was double GM average. (B)</p> Signup and view all the answers

What was the primary strategy of General Motors in the 1950s related to union presence?

<p>To move operations to non-union 'right to work' states. (A)</p> Signup and view all the answers

What is the primary assumption of the Great Man theory?

<p>Great leaders are born with inherent qualities. (D)</p> Signup and view all the answers

Which leadership theory focuses on traits inherited by individuals?

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

What aspect of power distribution is characteristic of an aristocracy?

<p>By gender and lineage (B)</p> Signup and view all the answers

What is a limitation often discussed in trait theories of leadership?

<p>Many people with leadership traits do not pursue leadership roles. (A)</p> Signup and view all the answers

What assumption underlies the bureaucratic distribution of power?

<p>Power is distributed by gender and office. (A)</p> Signup and view all the answers

Which statement best describes the infocratic distribution of power?

<p>Power is redistributing to key process contributors. (B)</p> Signup and view all the answers

Which leadership theory suggests that effective leaders adapt their style depending on the situation?

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

What is a common misconception about leaders discussed in the content?

<p>Leadership roles depend on inherent traits. (A)</p> Signup and view all the answers

What is the main focus of transformational leaders?

<p>Creating connections with followers (C)</p> Signup and view all the answers

Which factor do transformational leaders prioritize in their leadership style?

<p>Ethical and moral standards (A)</p> Signup and view all the answers

In the diamond model of leadership, which aspect is NOT part of the results category?

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

What is a critical component for gaining commitment from team members?

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

What is the primary objective of the KIABI competition?

<p>To achieve the highest sales progression (C)</p> Signup and view all the answers

Which of the following is NOT an aspect of the leader's role in the diamond model?

<p>Designing marketing strategies (B)</p> Signup and view all the answers

How should transformational leaders approach the development of their followers?

<p>By encouraging personal potential (A)</p> Signup and view all the answers

What reward is offered to the winners of the KIABI competition?

<p>A fancy dinner (D)</p> Signup and view all the answers

What is the main goal of the competition announced by Top Management?

<p>To increase sales progression (A)</p> Signup and view all the answers

What reward is offered for the main competition?

<p>Free dinner at a fancy restaurant (D)</p> Signup and view all the answers

What is the additional side competition about?

<p>Employee photo creativity (D)</p> Signup and view all the answers

What type of room will the first meeting with employees be held in?

<p>A small employee room (A)</p> Signup and view all the answers

Who is responsible for the management of the women’s and men’s departments?

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

How many employees does the manager have under their responsibility?

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

What is the desired outcome of winning the competition for the manager?

<p>To prove effective leadership and motivation skills (A)</p> Signup and view all the answers

What time frame is defined for measuring sales progression in the competition?

<p>From October 1st to December 31st (A)</p> Signup and view all the answers

What do contingency theories of leadership emphasize?

<p>Environmental variables that influence leadership effectiveness (B)</p> Signup and view all the answers

According to behavioral theories of leadership, what is emphasized in the development of leaders?

<p>The learning and actions of leaders (A)</p> Signup and view all the answers

In which scenario would an authoritarian leadership style be most appropriate?

<p>In crisis situations where quick decisions are necessary (B)</p> Signup and view all the answers

What key aspect do participative leadership theories promote?

<p>Participation and contribution from group members (D)</p> Signup and view all the answers

Which statement best describes management theories of leadership?

<p>They rely on a system of rewards and punishments (C)</p> Signup and view all the answers

What is a primary assertion of situational theories of leadership?

<p>Leaders must tailor their actions to specific situations (A)</p> Signup and view all the answers

What do White and Hodgson suggest is crucial for effective leadership?

<p>The balance of behaviors, needs, and context (B)</p> Signup and view all the answers

Which of the following is a key focus of transactional leadership theories?

<p>The organization and performance of the group (B)</p> Signup and view all the answers

Flashcards

GM Sunbelt Strategy

General Motors' strategy to build plants in the southern and western USA to avoid union influence. This was seen by unions as a way to avoid union control of plants.

GM Fremont Plant (1982)

GM's Fremont plant in 1982, characterized by high absenteeism, unresolved grievances, frequent wildcat strikes, and poor quality/productivity compared to Japanese competitors.

GM NUMMI Plant (1986)

GM's NUMMI plant in 1986, a significant improvement over the 1982 plant with lower absenteeism, fewer grievances, fewer strikes, and notably better quality and significantly increased productivity.

Productivity Improvement (NUMMI)

Significant productivity improvements were seen in the NUMMI plant compared to the same plant in 1982. Improved productivity was doubled from 1982 levels

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Quality Improvement (NUMMI)

Quality of the NUMMI plant improved dramatically compared to the earlier Fremont plant. The 1986 plant reached best in class quality in the industry.

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Aristocracy

A form of government where power is distributed based on lineage and gender.

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Bureaucracy

A system of government based on power attributed by office.

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Infocracy

Power redistributed to key process contributors.

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Great Man Theory

Leadership is inherent; leaders are born, not made.

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Trait Theory

Leaders possess specific personality or behavioral characteristics.

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18th Century Leadership

Leadership perspectives from the 1700's, centered around lineage and father figure.

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19th & 20th Century Leadership

Leadership from the 1800s through 1900s focusing on gender and office positions.

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Information Age Leadership

Leadership distributed to key process contributors; focuses on ability.

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Contingency Leadership

Leadership style effectiveness depends on the specific situation. No one style is best for all situations.

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Situational Leadership

Leaders adjust their approach based on the situation, considering things like follower skills and knowledge.

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Authoritarian Leadership

Leadership style where the leader makes decisions and directs others without much input.

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Democratic Leadership

Leadership style that involves group members in decision-making.

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Behavioral Leadership

Leadership effectiveness comes from learned behaviors, not inherent qualities.

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Participative Leadership

Leadership style that values input from followers and makes them feel involved.

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Transactional Leadership

Leadership that motivates through rewards and punishments, often in organizational settings.

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Effective Leadership

A leader needs to consider behaviors, needs, and the context of a situation. They tailor their approach to achieve success.

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Transformational Leadership

Leadership style focusing on motivating and inspiring followers to achieve a shared vision, emphasizing individual potential and high ethical standards.

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Commitment

A pledge or promise to fulfill an obligation or achieve a goal.

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KIABI Vicenza Competition

A sales competition between women's departments at KIABI Italian stores, judged by sales progression from October 1st to December 31st.

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Sales Progression

The measure of growth in sales from a previous timeframe.

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Employee Engagement

The enthusiasm and commitment that employees demonstrate towards their work and the organization.

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Organizational Performance

The overall effectiveness of an organization, measured in terms of profits, customer satisfaction, market share, efficiency, and learning.

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Strategy

A plan of action to achieve a specific goal or set of goals.

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Competition

Rivalries or contests among different entities, often used for promotion or achievement.

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KIABI Sales Competition

A competition between KIABI stores in Italy to see which store has the highest sales progression from October 1st to December 31st, compared to the previous year.

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Employee Photo Competition

A side competition designed to have the most interesting photos of employees published on the store's website.

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Meeting in Employee Room

A meeting to discuss and strategize about the competitions with employees.

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Motivation Strategies

Methods for inspiring employees to achieve targets.

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Employee Room Size

Meeting location size: Roughly 15 square meters, with a table, chairs, and coffee machine.

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Women's Department Management

The responsibility of managing the women's department within a specific KIABI store.

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Competition Reward

Free dinner for winners at a fancy restaurant.

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Sales Progression

Measuring sales growth compared to the previous year.

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Study Notes

Leadership: Session 2

  • SKEMA Business School is an accredited business school.
  • The session is about leadership.
  • GM Leadership Problems: A cartoon illustrates a problem at GM.

GM Leadership Problems: A Case Study

  • GM's 1950s strategy expanded plants in the Sunbelt (non-union).
  • This angered unions, leading to major conflict at new plants.
  • A case study document explores this.
  • The link https://sloanreview.mit.edu/article/how-to-change-a-culture-lessons-from-nummi/ is provided for further background.
  • A 1982 GM Fremont plant was poorly performing with high absenteeism (20%), unresolved grievances (2000), annual grievances (5000), wildcat strikes (3-4), and poor product quality (30% worse than Japan in assembly costs per car)

The GM Leadership Story: 1982 Fremont Plant

  • Employees: 5000
  • Absenteeism: 20%
  • Unresolved Grievances: 2000
  • Total Annual Grievances: 5000
  • Wildcat Strikes: 3-4
  • Product: Chevrolet Nova
  • Assembly Costs per Car: 30% over Japan
  • Productivity: Worst in GM
  • Quality: Worst in GM

The NUMMI Leadership Story: 1986 Plant

  • Employees: 2000
  • Absenteeism: 2%
  • Unresolved Grievances: 0
  • Total Annual Grievances: 2
  • Wildcat Strikes: 0
  • Product: Chevrolet Nova + Geo Prism
  • Assembly Costs per Car: Same as Japanese
  • Productivity: Double GM Average
  • Quality: Best in GM

What Needs Did New Management at NUMMI Meet?

  • Need for understanding
  • Need for value
  • Other needs are listed

Paradigm Shifts in Management

  • Aristocracy (18th Century): Power distributed by gender and lineage. Assumption: "Father knows best."
  • Bureaucracy (19th and 20th Centuries): Power distributed by gender and office. Assumption: "Boss knows best."
  • Infocracy (Information Age): Power redistributing to key process contributors (KPC's). Assumption: "KPC's know best."

Main Leadership Theories

  • Great Man
  • Trait
  • Contingency
  • Situational
  • Behavioral
  • Participative
  • Management
  • Relationship

Great Man Theory

  • Leaders are born, not made.
  • Inborn characteristics (charisma, confidence, intelligence, social skills) determine leadership.
  • Leadership is an inherent quality, not something learned.

Trait Theories

  • Leaders inherit qualities that enable successful leadership.
  • Certain personality and behavioral characteristics are shared by effective leaders (e.g., extroversion, self-confidence, courage)

Contingency Theories

  • Leadership style depends on the situation.
  • Effective leaders adjust their style to suit the needs of the context, behaviors and needs of their followers.

Situational Theories

  • Leaders choose the best course of action based on situational variables.
  • Leadership style depends on factors such as decision-making, group knowledge, and member experience.
  • Example, Authoritarian style may suit a group with little knowledge, others might perform better in a democratic environment.

Behavioral Theories

  • Leadership is developed, more about actions than mental qualities.
  • Focus is on leadership actions rather than internal qualities.
  • Leaders are skilled through teaching and observation.

Participative Leadership

  • Leaders consider others' inputs while making decisions.
  • Leaders encourage participation and help group members feel more engaged in decision-making.
  • The leader still retains the right to make the final decision.

Management Theories

  • Also known as transactional theories, focus on supervision and performance.
  • Reward and punishment system as the basis for leadership.

Relationship Theories

  • Focus on leader-follower relationships and inspiring followers.
  • Transformational leaders motivate and inspire by focusing on the importance of the task and helping members achieve their potential.
  • Those who are successful often have high moral standards.

The Diamond Model of Leadership

  • A model showing the many aspects and variables of leadership success that should be considered as a leader.

Commitment

  • Students choose one question to answer:
    • How can I get commitment from people?
    • How can I create commitment in employees towards my team or organization?

The KIABI Vicenza Short Case and Analysis

  • KIABI store competition in Vicenza, Italy.
  • Competition: Highest sales progression in October-December in Women's Departments compared to previous year.
  • Winner: Free dinner at a fancy restaurant.
  • Side competition: Most interesting employee photos.

Quantitative Results (October-December 2011)

  • Data on sales progression for various KIABI stores.

HLBT Method for Communicating

  • A method for effective communication in public, digital presentations, and teams.

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Related Documents

Leadership Session 2 SKEMA Business School PDF

Description

Explore the complexities of leadership through a detailed case study on GM's challenges during the 1982 Fremont plant situation. This session highlights the impact of leadership decisions on workforce relations and productivity, focusing on issues like absenteeism and grievances. Gain insights into lessons learned from GM's past and the evolution of leadership strategies.

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