Leadership Session 2: GM Case Studies
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What was a significant issue at the GM Fremont Plant in 1982?

  • High employee morale
  • Efficient assembly costs
  • High number of unresolved grievances (correct)
  • Low absenteeism rates
  • Which strategy did General Motors implement in the 1950s?

  • Union expansion strategy
  • Sunbelt Strategy (correct)
  • Globalization Strategy
  • Westward Plant Strategy
  • What was the absentee rate at the NUMMI plant in 1986 compared to the GM Fremont Plant in 1982?

  • Higher at NUMMI
  • Similar to GM Fremont
  • Non-existent at NUMMI
  • Lower at NUMMI (correct)
  • Which of the following statements correctly describes the quality of production at the NUMMI plant?

    <p>Best in GM</p> Signup and view all the answers

    What crucial need did the new management at NUMMI aim to fulfill?

    <p>Need for understanding</p> Signup and view all the answers

    What do management theories primarily focus on?

    <p>Group performance and supervision</p> Signup and view all the answers

    Which characteristic is commonly associated with transformational leaders?

    <p>High ethical and moral standards</p> Signup and view all the answers

    Which of the following best defines relationship theories?

    <p>Emphasis on leader-follower connections</p> Signup and view all the answers

    What is a primary outcome of effective leadership in the Diamond Model?

    <p>Greater customer satisfaction</p> Signup and view all the answers

    How do managerial theories typically reward employee success?

    <p>Monetary bonuses</p> Signup and view all the answers

    Which factor is least likely to influence commitment according to the Diamond Model?

    <p>Team conflicts</p> Signup and view all the answers

    What is a common tool used to manage change within organizations?

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

    What is the primary focus of relationship theories in leadership?

    <p>Group members' performance and potential</p> Signup and view all the answers

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

    <p>To achieve the highest progression in sales</p> Signup and view all the answers

    What will the winners of the main competition receive?

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

    What additional competition is announced alongside the main competition?

    <p>Most interesting employee photos</p> Signup and view all the answers

    How long has the manager been overseeing the women’s and men’s departments?

    <p>Six months</p> Signup and view all the answers

    How many employees does the manager oversee?

    <p>Five employees</p> Signup and view all the answers

    What is one outcome the manager hopes to achieve by winning the competition?

    <p>To prove their motivational skills</p> Signup and view all the answers

    Where will the first meeting to discuss the competition take place?

    <p>In the employee room</p> Signup and view all the answers

    What is the time frame for measuring the sales competition?

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

    What is the primary assumption of the Great Man theory regarding leadership?

    <p>Leadership qualities are inherent and not developed.</p> Signup and view all the answers

    In which paradigm is power distributed by gender and office?

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

    Which leadership theory focuses on the interaction between leadership styles and the specific circumstances?

    <p>Situational Theory</p> Signup and view all the answers

    What assumption underlies trait theories of leadership?

    <p>Certain traits are linked to effective leadership.</p> Signup and view all the answers

    Which of the following paradigms redistributes power to key process contributors (KPCs)?

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

    What is a key criticism of the Great Man and Trait theories of leadership?

    <p>They suggest that leadership cannot be nurtured or developed.</p> Signup and view all the answers

    Which leadership theory identifies specific personality traits that may contribute to effective leadership?

    <p>Trait Theory</p> Signup and view all the answers

    In which era is the leadership structure defined by 'Father knows best' primarily found?

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

    What do contingency theories of leadership emphasize?

    <p>The influence of environmental variables on leadership style</p> Signup and view all the answers

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

    <p>When the leader is the most knowledgeable member</p> Signup and view all the answers

    Behavioral theories suggest that leadership skills can be developed through:

    <p>Observation and education</p> Signup and view all the answers

    What is the main focus of participative leadership theories?

    <p>Incorporating group input into decision-making</p> Signup and view all the answers

    How do situational theories of leadership differ from contingency theories?

    <p>They emphasize the best course of action based on specific situational variables</p> Signup and view all the answers

    Which of the following statements is true regarding effective leadership?

    <p>It involves balancing leader behaviors with the needs of followers and context</p> Signup and view all the answers

    What is a characteristic of leaders who utilize a democratic leadership style?

    <p>They encourage participation and value contributions from the team</p> Signup and view all the answers

    What does the behavioral theory of leadership reject?

    <p>The notion that leaders are born with specific traits</p> Signup and view all the answers

    What was a notable consequence of the Sunbelt Strategy for General Motors in the 1950s?

    <p>Creation of conflict-ridden work environments</p> Signup and view all the answers

    In 1986, how did the absenteeism rate at the NUMMI plant compare to that at the GM Fremont Plant in 1982?

    <p>NUMMI had significantly lower absenteeism than Fremont</p> Signup and view all the answers

    Which of the following demonstrates a key difference in grievances between the GM Fremont Plant and NUMMI?

    <p>Fremont's unresolved grievances were eliminated at NUMMI</p> Signup and view all the answers

    What was the state of productivity at the NUMMI plant compared to GM's average in 1986?

    <p>NUMMI achieved twice the productivity compared to GM's average</p> Signup and view all the answers

    What crucial management need was addressed by new management at NUMMI?

    <p>Need to foster employee understanding and value</p> Signup and view all the answers

    What is the primary assumption underlying Great Man theories of leadership?

    <p>Great leaders are inherently born with specific traits.</p> Signup and view all the answers

    Which of the following traits is commonly associated with effective leaders according to trait theories?

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

    In which leadership era is power primarily distributed by gender and lineage?

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

    What criticism is commonly leveled against trait theories of leadership?

    <p>They do not explain why some with leadership traits are not leaders.</p> Signup and view all the answers

    Which paradigm facilitates a redistribution of power to key process contributors?

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

    Which leadership theory suggests that effective leadership can change depending on the specific situation?

    <p>Contingency Theory</p> Signup and view all the answers

    What primary assumption differentiates participative leadership theories from authoritarian styles?

    <p>They empower subordinates to take initiative.</p> Signup and view all the answers

    What perspective is crucial to both Great Man and Trait theories regarding the origin of leadership capabilities?

    <p>Natural characteristics play a significant role in leadership.</p> Signup and view all the answers

    What is the primary focus of management theories?

    <p>Improving organization and group performance</p> Signup and view all the answers

    Which statement best describes transformational leadership?

    <p>It inspires individuals towards a greater purpose.</p> Signup and view all the answers

    In the Diamond Model of Leadership, what is essential for influencing others?

    <p>Developing influence through commitment</p> Signup and view all the answers

    What do relationship theories primarily seek to achieve?

    <p>Fostering a motivational environment among group members</p> Signup and view all the answers

    How do managerial theories typically enforce accountability?

    <p>With a system of rewards and punishments</p> Signup and view all the answers

    Which of the following is least likely to be a factor in developing commitment according to the Diamond Model?

    <p>Personal grievances</p> Signup and view all the answers

    What characterizes transformational leaders compared to transactional leaders?

    <p>They focus on individual potential and ethical standards</p> Signup and view all the answers

    What is an essential element of designing organizational commitment?

    <p>Managing change effectively</p> Signup and view all the answers

    What is the primary criterion for winning the sales competition among the Women's Departments?

    <p>Highest progression in sales compared to the previous year</p> Signup and view all the answers

    What kind of reward will the winners of the main competition receive?

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

    What additional activity is encouraged through the competition aside from sales progression?

    <p>Taking interesting photos of employees in the store</p> Signup and view all the answers

    How long has the manager been in charge of the women's and men's departments?

    <p>Six months</p> Signup and view all the answers

    What is one of the manager's objectives in winning the competition?

    <p>To demonstrate effective employee motivation and increase profits</p> Signup and view all the answers

    In what setting will the manager discuss the competition with employees?

    <p>In the employee room of the store</p> Signup and view all the answers

    What aspect of the competition will results be measured on a daily basis?

    <p>Sales progression compared to the previous year</p> Signup and view all the answers

    What is the minimum age range of the employees managed by the individual?

    <p>20 to 30 years</p> Signup and view all the answers

    What is the primary premise of contingency theories of leadership?

    <p>The effectiveness of a leadership style depends on environmental variables.</p> Signup and view all the answers

    Which leadership style is described as being most appropriate when the leader is the most knowledgeable member of a group?

    <p>Authoritarian style</p> Signup and view all the answers

    What do behavioral theories of leadership emphasize about leaders?

    <p>Great leaders can be made through teaching and observation.</p> Signup and view all the answers

    In participative leadership theories, what is the role of the leader regarding input from others?

    <p>The leader retains the ultimate authority while considering others' input.</p> Signup and view all the answers

    Which statement reflects the essence of situational theories of leadership?

    <p>Leaders adapt their style based on situational variables.</p> Signup and view all the answers

    What is a critical criticism of trait theories in leadership?

    <p>They suggest that effective leadership is independent of context.</p> Signup and view all the answers

    According to White and Hodgson, what is essential for truly effective leadership?

    <p>Balancing behaviors, follower needs, and situational context.</p> Signup and view all the answers

    What do participative leadership theories aim to achieve with group members?

    <p>Encouraging contributions and fostering commitment among group members.</p> Signup and view all the answers

    Study Notes

    Leadership: Session 2

    • SKEMA Business School, session on leadership
    • Session covered GM leadership problems, a 1982 GM Fremont Plant analysis, a 1986 NUMMI Plant and comparison analysis, and the needs of NUMMI's new management.

    GM Leadership Problems

    • GM's 1950s strategy included building non-union plants in the U.S. South and West
    • This strategy was seen as an attempt to move away from unionized areas
    • The new plants had high levels of conflict

    The 1982 GM Fremont Plant

    • 5000 employees
    • 20% absenteeism
    • 2000 unresolved grievances
    • 5000 total annual grievances
    • 3-4 wildcat strikes
    • Chevrolet Nova
    • Assembly costs were 30% higher than Japan's
    • Productivity was the worst in GM
    • Quality was the worst in GM

    The 1986 GM NUMMI Plant

    • 2000 employees
    • 2% absenteeism
    • 0 unresolved grievances
    • 2 total annual grievances
    • 0 wildcat strikes
    • Chevrolet Nova + Geo Prism
    • Assembly costs were the same as Japan's
    • Productivity was double the GM average
    • Quality was the best in GM

    What Needs Did New Management at NUMMI Meet?

    • Employee understanding
    • Employee value

    Paradigm Shifts in Management

    • Aristocracy (18th century): Power distributed by gender and lineage, "Father knows best"
    • Bureaucracy (19th and 20th centuries): Power distributed by gender and office, "Boss knows best"
    • Infocracy (Information Age): Power redistributed to key process contributors (KPCs), "KPCs know best"

    Main Leadership Theories

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

    Great Man Theory

    • Great leaders are born, not made
    • Inherent leadership capacity
    • Leaders possess charisma, confidence, intelligence, and social skills

    Trait Theories

    • Leaders inherit certain traits that make them naturally suited for leadership
    • Extroversion, self-confidence, and courage are some traits.

    Contingency Theories

    • Leadership style depends on the situation
    • Good leaders can adapt their behaviors based on the needs of followers and the circumstances.

    Situational Theories

    • Leader's best course of action depends on situation variables
    • Authoritarian or democratic styles may be more appropriate, depending on the experience level of the group.

    Behavioral Theories

    • Leadership is learned, not inherent
    • Leaders' actions are important
    • People can become leaders through teaching and observation

    Participative Leadership

    • Leadership style that involves input from others
    • Leaders encourage contributions and participation
    • Team members feel more committed to the process

    Management Theories

    • Focus on supervision, organization and group performance
    • Rewards and punishments as motivators

    Relationship Theories (Transformational Theories)

    • Leaders focus on relationships with followers
    • Leaders motivate and inspire others by helping them achieve their potential.
    • These leaders have high ethical and moral standards

    The Diamond Model of Leadership

    • Includes leader commitment to strategy, strategic thinking, and developing influence in a model with other factors (including results) as a key outcome

    Commitment

    • Questions: How can I get commitment from people? or How can I create commitment in employees towards my team or organization?

    Kiasbi Vincenza Short Case

    • Competition among women's departments, Italy
    • Top performer in sales wins free dinner for all staff
    • Additional creativity competition: photos of employees

    Group Presentations

    • Bad presentation characteristics
    • Good presentation characteristics discussed in class.

    HLBT Method for Communicating

    • A method for public, digital presentations, and team communication noted as H.L.B.T.

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    Description

    Explore the leadership challenges faced by GM through an in-depth analysis of the 1982 Fremont Plant and the 1986 NUMMI Plant. This session covers key factors contributing to management issues, absenteeism, grievances, and productivity comparisons. Join us to understand how leadership strategies evolved during this era at GM.

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