Leadership Concepts in General Motors

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Questions and Answers

What was a significant outcome of General Motors' Sunbelt Strategy in the 1950s?

  • Enhanced collaboration with union leaders
  • Reduction in overall production costs
  • Increased union control in southern states
  • Hostility in newly established plants (correct)

Which element of the Diamond Model of Leadership is primarily focused on the results achieved by an organization?

  • Task (correct)
  • Others/People
  • Organization
  • Leader

In the context of the Diamond Model of Leadership, what does the strategic thinking component contribute to?

  • Commitment to external factors
  • Development of company culture
  • Designing a commitment to the strategy (correct)
  • Increase in employee benefits

Which factor primarily influences the organizational commitment in the Diamond Model of Leadership?

<p>Adaptability to change (A)</p> Signup and view all the answers

What role does 'Others/People' play in the Diamond Model of Leadership?

<p>Influences strategic thinking (D)</p> Signup and view all the answers

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

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

Which factor contributed to NUMMI's cultural change compared to GM's Fremont Plant?

<p>Reduction in unresolved grievances (D)</p> Signup and view all the answers

What does Edgar Schein's model of corporate culture emphasize as a method for changing culture?

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

How did productivity levels at NUMMI compare to GM's averages?

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

Which assembly cost comparison holds true about NUMMI and GM's Fremont Plant?

<p>NUMMI's assembly costs are the same as those of GM (B)</p> Signup and view all the answers

What was the total annual grievance count at GM's Fremont Plant in 1982?

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

What was the outcome regarding wildcat strikes after NUMMI's cultural changes?

<p>Ceased to exist (D)</p> Signup and view all the answers

Which emotional aspect does the concept of VABEs in leadership primarily target?

<p>Core beliefs and feelings (D)</p> Signup and view all the answers

What distinguishes persuasion from influence?

<p>Persuasion is a subset of influence that seeks attitude change. (D)</p> Signup and view all the answers

Which route of thinking constitutes the majority of decision-making processes?

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

What is the purpose of the 'Look' component in the HLBT method for public communication?

<p>To outline the main topics of the presentation (C)</p> Signup and view all the answers

Which organizational culture is most associated with personnel development and interpersonal relations?

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

Which of the following is NOT one of the CLARCCS cues?

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

In which culture is continuous improvement and innovation a primary focus?

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

In terms of persistence, how does the central route of thinking compare to the peripheral route?

<p>Central route has longer persistence. (C)</p> Signup and view all the answers

What does the 'Took' component in the HLBT method emphasize?

<p>Convincing the audience of the message's importance (A)</p> Signup and view all the answers

What does the 'Hook' component in the HLBT presentation method pertain to?

<p>Methods to capture the audience's attention. (A)</p> Signup and view all the answers

The Market Culture mainly aims to enhance which of the following?

<p>Customer satisfaction and competition (C)</p> Signup and view all the answers

What is the primary glue that holds the clan culture together?

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

Which thinking mode is categorized under Systematic thinking?

<p>Neo-Cortex (B)</p> Signup and view all the answers

Which type of leader is typically associated with an adocracy culture?

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

Which of the following best describes the relationship between arguments and cues in influence?

<p>Cues are more easily remembered than arguments. (A)</p> Signup and view all the answers

What is the ideal purpose of filling out the OCAI according to the instruction?

<p>To represent an ideal organization model (A)</p> Signup and view all the answers

In which culture is the primary focus on competition and customer satisfaction?

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

Which leadership quality is essential in a Hierarchy Culture?

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

What is one characteristic that is equal in both the central and peripheral routes of thinking?

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

Which of the following leadership traits is least associated with the Clan Culture?

<p>Prioritizing individual performance (A)</p> Signup and view all the answers

What is the preferred focus for improving organizations with a B culture?

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

What is a common characteristic of the adhocracy culture?

<p>Formation of ad-hoc groups (C)</p> Signup and view all the answers

Which statement accurately describes the hierarchy culture?

<p>It is governed by rules and procedures. (A)</p> Signup and view all the answers

What happens if an organization's culture is evenly distributed among all four types?

<p>Lack of identity. (D)</p> Signup and view all the answers

What is the glue that holds a market culture together?

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

How does Continuous Improvement aim to enhance a company's operations?

<p>By getting rid of ineffective processes and emphasizing strengths (D)</p> Signup and view all the answers

What key factor does Benchmarking rely on in a competitive market?

<p>Analyzing competitors' strengths and weaknesses (B)</p> Signup and view all the answers

What is a potential downside of perceived control systems in organizations?

<p>They can lead to employee dissatisfaction and resistance (C)</p> Signup and view all the answers

Which of the following best represents the concept of Acculturation within an organization?

<p>Integrating new employees into the established company culture (B)</p> Signup and view all the answers

What practice was notably adopted by Southwest Airlines to foster employee satisfaction?

<p>Providing pay increases and vacation time to employees (C)</p> Signup and view all the answers

In what way can After Sales Services contribute to customer satisfaction?

<p>They enhance customer loyalty through ongoing support (A)</p> Signup and view all the answers

How does the concept of energizing employees relate to market culture?

<p>It seeks to create a competitive edge by alleviating employee burnout (D)</p> Signup and view all the answers

Why might Walmart's control system be considered successful in its operations?

<p>It significantly reduces operational costs while maintaining order (D)</p> Signup and view all the answers

Flashcards

Diamond Model of Leadership

A leadership model emphasizing developing influence, strategic thinking, and commitment to achieve desired results.

Environmental Effects/Factors

External aspects affecting the success of a business strategy, encompassing various elements of the market and broader environment.

Sunbelt Strategy

General Motors' strategy to build plants in Southern and Western USA in the 1950s.

Right-to-work states

States in the USA that do not require union membership for employment.

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Conflict-ridden plants

GM plants characterized by tension and clashes between management and union workers.

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Culture Change at NUMMI

Improving GM Fremont plant's culture through observable behavior changes and reinforced work processes.

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Leadership Levels

Changing behavior requires affecting visible behavior, conscious thought, and underlying values, assumptions, and beliefs.

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Visible Behavior

Observable actions and reactions within an organization. Ex: Absenteeism, Strikes

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Conscious Thought

Thoughts and decisions individuals make regarding their work and behavior

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Values/Assumptions/Beliefs/Expectations (VABE's)

Unseen beliefs, values and assumptions that guide behavior; influence how people interact and work.

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NUMMI's Improvement

Significant decrease in absenteeism, grievances, wildcat strikes, and improvement in productivity and quality.

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Motivation at Work

Understanding worker needs to improve motivation

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Organizational Development

Strategies designed to improve organizational cultures and leadership

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HLBT Method

A communication method for public speaking, using four key steps: Hook, Look, Book, Took.

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Clan Culture

A culture focused on teamwork, collaboration, and employee development, emphasizing strong interpersonal relationships.

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Adhocracy Culture

A culture that values innovation, creativity, and constant improvement, where flexibility and risk-taking are encouraged.

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Market Culture

A culture driven by competition, customer satisfaction, and results, where employees are energized to perform.

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Hierarchy Culture

A culture that emphasizes order, structure, and control, prioritizing stability and following established processes.

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OCAI Assessment

A tool used to assess and understand an organization's culture based on four dimensions: Clan, Adhocracy, Market, and Hierarchy.

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What kind of leaders are needed in each culture?

Different cultures require different leadership styles. Clan cultures need supportive leaders, Adhocracy cultures need visionary leaders, Market cultures need competitive leaders, and Hierarchy cultures need directive leaders.

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Perfect Company Culture

Imagine your ideal work environment. What values and characteristics would it have?

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TRIAD Principle

A communication method for public speaking with three key elements: "Hook", "Look", and "Took".

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Hook

The opening part of a speech designed to grab the audience's attention and create interest.

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Took

The final part of a speech aimed at persuading the audience that the information presented is interesting and important.

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Organizational Culture

The shared values, beliefs, attitudes, and behaviors that characterize an organization.

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Influence vs. Persuasion

Influence is a broader concept encompassing any attempt to change someone's behavior or thinking. Persuasion is a specific type of influence that uses communication to change attitudes.

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Central Route Processing

This mode of thinking involves carefully considering arguments and evidence, leading to more durable attitudinal changes. It's slower and more effortful.

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Peripheral Route Processing

This mode of thinking relies on mental shortcuts and cues, leading to less lasting attitudinal changes. It's faster and less effortful.

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Comparison Cue

This persuasion cue suggests that if others are doing something, it's likely the right thing to do.

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Liking Cue

People are more likely to comply with requests from those they like or admire.

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Authority Cue

People are more likely to comply with requests from those perceived as authoritative.

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Reciprocity Cue

People feel an obligation to reciprocate when someone does something nice for them.

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Commitment/Consistency Cue

People are more likely to stick to commitments they've already made.

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EV Maintenance

Maintaining an electric vehicle (EV) generally costs more than maintaining a traditional gasoline-powered vehicle.

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Continuous Improvement

The practice of constantly identifying and eliminating weaknesses in processes and products to achieve optimal performance.

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Customer Satisfaction

The level of contentment customers feel after interacting with a company and its products or services.

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Competition

The rivalry between companies vying for the same customers or market share.

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Acculturation

The process of adapting to a new culture, often involving learning new customs, language, and ways of life.

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Control System

A set of procedures and measures designed to regulate and monitor operations within an organization.

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Coordination

Effective communication and collaboration between different departments or functions within an organization.

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Study Notes

The Diamond Model of Leadership

  • The model depicts leadership as a multifaceted process involving a leader, tasks, others/people, and the organization itself.
  • A leader's influence on others and commitment to the strategy are crucial.
  • Strategic thinking is emphasized, along with designing and managing change.
  • Results of effective leadership include profits, customer satisfaction, market share, efficiency, employee learning, productivity, and employee energy.

GM Leadership Problems

  • A cartoon illustration depicts a leadership problem at GM.
  • The cartoon suggests a lack of understanding and miscommunication (a literal interpretation) regarding desired changes in the company.

Short Background on General Motors

  • In the 1950s, GM implemented a Sunbelt strategy, establishing plants in the Southern and Western USA.
  • This strategy aimed to avoid unionization.
  • Unions perceived this strategy as an attempt to move away from union-controlled states.
  • Consequently, the newer plants (non-union) often had higher levels of employee conflict compared to other GM locations.
  • A link to a research article pertaining to the subject is available.

The 1982 GM Fremont Plant

  • Employee absenteeism was 20%.
  • Thousands of unresolved grievances existed, totaling 5,000 annually.
  • Frequent wildcat strikes occurred (3-4).
  • The Chevrolet Nova's assembly costs were 30% higher when compared to Japanese counterparts.
  • The Fremont plant's productivity and quality were lowest within GM.

The 1986 GM NUMMI Plant

  • Employee absenteeism was 2%.
  • There were virtually no unresolved grievances.
  • Total annual grievances were very low (2).
  • There were no wildcat strikes.
  • The Chevrolet Nova and Geo Prism's assembly costs were the same as equivalent Japanese models.
  • The plant's productivity and quality were the best within GM.

How Culture Changes

  • Edgar Schein's model of corporate culture is consistent with the culture changes observed at NUMMI.
  • Changing a culture involves changes in cultural artifacts, observable data—including behaviors and actions—of people within the organization.
  • Understanding and defining desired behaviors and actions, along with the design of work processes, are critical to reinforcement.
  • Shook's and Schein's models are presented visually.

Levels of Leadership

  • Leadership involves influencing human behavior, occurring on different levels.
  • Level 1: Visible behavior (body)
  • Level 2: Conscious thought (mind)
  • Level 3: Values, assumptions, beliefs, and expectations (semi-conscious, preconscious - heart)

Knowing the Heart Means Understanding Needs

  • Understanding employee needs is crucial for effective leadership, especially concerning how to motivate employees and meet their needs.
  • Motivational factors apply to both general and specific situations, and concern both routine and difficult workers.

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