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%

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?

It was double GM average. Signup and view all the answers

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

To move operations to non-union 'right to work' states. Signup and view all the answers

What is the primary assumption of the Great Man theory?

Great leaders are born with inherent qualities. Signup and view all the answers

Which leadership theory focuses on traits inherited by individuals?

Trait theory Signup and view all the answers

What aspect of power distribution is characteristic of an aristocracy?

By gender and lineage Signup and view all the answers

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

Many people with leadership traits do not pursue leadership roles. Signup and view all the answers

What assumption underlies the bureaucratic distribution of power?

Power is distributed by gender and office. Signup and view all the answers

Which statement best describes the infocratic distribution of power?

Power is redistributing to key process contributors. Signup and view all the answers

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

Contingency theory Signup and view all the answers

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

Leadership roles depend on inherent traits. Signup and view all the answers

What is the main focus of transformational leaders?

Creating connections with followers Signup and view all the answers

Which factor do transformational leaders prioritize in their leadership style?

Ethical and moral standards Signup and view all the answers

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

Employee Energy Signup and view all the answers

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

Inspiration and motivation Signup and view all the answers

What is the primary objective of the KIABI competition?

To achieve the highest sales progression Signup and view all the answers

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

Designing marketing strategies Signup and view all the answers

How should transformational leaders approach the development of their followers?

By encouraging personal potential Signup and view all the answers

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

A fancy dinner Signup and view all the answers

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

To increase sales progression Signup and view all the answers

What reward is offered for the main competition?

Free dinner at a fancy restaurant Signup and view all the answers

What is the additional side competition about?

Employee photo creativity Signup and view all the answers

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

A small employee room Signup and view all the answers

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

A new manager Signup and view all the answers

How many employees does the manager have under their responsibility?

Five Signup and view all the answers

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

To prove effective leadership and motivation skills Signup and view all the answers

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

From October 1st to December 31st Signup and view all the answers

What do contingency theories of leadership emphasize?

Environmental variables that influence leadership effectiveness Signup and view all the answers

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

The learning and actions of leaders Signup and view all the answers

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

In crisis situations where quick decisions are necessary Signup and view all the answers

What key aspect do participative leadership theories promote?

Participation and contribution from group members Signup and view all the answers

Which statement best describes management theories of leadership?

They rely on a system of rewards and punishments Signup and view all the answers

What is a primary assertion of situational theories of leadership?

Leaders must tailor their actions to specific situations Signup and view all the answers

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

The balance of behaviors, needs, and context Signup and view all the answers

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

The organization and performance of the group Signup and view all the answers

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.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

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.