Leadership Session 2: GM Case Studies
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Questions and Answers

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

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

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

What do management theories primarily focus on?

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

Which characteristic is commonly associated with transformational leaders?

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

Which of the following best defines relationship theories?

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

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

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

How do managerial theories typically reward employee success?

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

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

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

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

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

What is the primary focus of relationship theories in leadership?

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

What will the winners of the main competition receive?

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

What additional competition is announced alongside the main competition?

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

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

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

How many employees does the manager oversee?

<p>Five employees (A)</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 (D)</p> Signup and view all the answers

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

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

What is the time frame for measuring the sales competition?

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

In which paradigm is power distributed by gender and office?

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

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

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

What assumption underlies trait theories of leadership?

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

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

<p>Infocracy (D)</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. (C)</p> Signup and view all the answers

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

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

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

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

What do contingency theories of leadership emphasize?

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

Behavioral theories suggest that leadership skills can be developed through:

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

What is the main focus of participative leadership theories?

<p>Incorporating group input into decision-making (B)</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 (B)</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 (C)</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 (C)</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 (D)</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 (C)</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 (C)</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 (C)</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 (D)</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 (C)</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. (C)</p> Signup and view all the answers

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

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

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

<p>Aristocracy (D)</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. (A)</p> Signup and view all the answers

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

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

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

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

What primary assumption differentiates participative leadership theories from authoritarian styles?

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

What is the primary focus of management theories?

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

Which statement best describes transformational leadership?

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

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

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

What do relationship theories primarily seek to achieve?

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

How do managerial theories typically enforce accountability?

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

What characterizes transformational leaders compared to transactional leaders?

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

What is an essential element of designing organizational commitment?

<p>Managing change effectively (A)</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 (A)</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 (D)</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 (B)</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 (A)</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 (B)</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 (C)</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 (D)</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 (A)</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. (C)</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 (B)</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. (C)</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. (D)</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. (C)</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. (A)</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. (D)</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. (D)</p> Signup and view all the answers

Flashcards

Management Theories

Focus on supervision, organization, and group performance, using rewards and punishments for leadership.

Relationship Theories

Focus on leader-follower connections, inspiring members to achieve a greater good.

Transactional Theories

Leadership style based on rewarding good performance and punishing poor performance.

Transformational Theories

Leadership focused on inspiring and motivating members towards a shared goal.

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Diamond Model of Leadership

A model demonstrating how leaders influence outcomes by focusing on internal and external factors.

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Employee Commitment

A key factor in the Diamond leadership model, influencing outcomes and productivity.

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Strategic Thinking

A leader's crucial ability to work with environmental factors to reach company goals.

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KIABI Vicenza

Managerial position tasked to improve and succeed in the men's and women's department of KIABI at Vicenza (Italy).

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KIABI Women's Department Competition

A competition among Italian KIABI Women's Departments to see which store has the highest sales growth from October 1st to December 31st compared to the previous year.

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Winning Reward

Free dinner at a fancy restaurant for the store with the highest sales growth.

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Side Competition

A separate competition to take the most interesting photos of employees to be published online.

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Competition Timeframe

The sales competition spans from October 1st to December 31st.

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Employee Motivation

The manager's goal to increase sales by motivating employees.

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Manager's Goal

Show management skills and increase profits by winning the competition.

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Employee Meeting

A meeting tomorrow to discuss the sales competition with employees.

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KIABI Vicenza

The specific KIABI store location in Vicenza, Italy, where the competition takes place.

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Contingency Theories

Leadership styles depend on the situation and context, and there's no universal best approach.

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Situational Theories

Leaders choose the best approach based on the specific situation, considering factors like group member expertise.

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Behavioral Theories

Leadership skills are learned, not inherent, focusing on observable actions and behaviors.

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Participative Leadership

Leadership style that values input from followers, encouraging participation in decision-making.

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Effective Leadership

A balance of behaviors, needs, and context for leaders to assess and adapt to.

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GM Sunbelt Strategy

General Motors' strategy of building plants in the southern and western US, often in 'right-to-work' states, which were non-union.

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GM Fremont Plant (1982)

A GM plant in 1982 with high employee absenteeism, unresolved grievances, frequent wildcat strikes, poor quality, low productivity, high assembly costs compared to Japan.

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NUMMI Plant (1986)

A joint venture GM/Toyota plant with significantly lower absenteeism, grievances, and strikes compared to the GM Fremont plant. Improved quality and productivity.

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Employee Needs at NUMMI

New management at NUMMI addressed needs for understanding and value amongst employees.

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Productivity (GM Fremont vs NUMMI)

GM Fremont's productivity was significantly worse than GM's average and especially worse than the NUMMI plant, which doubled GM's average.

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Quality (GM Fremont vs NUMMI)

Quality at the GM Fremont Plant was significantly worse than the NUMMI Plant's which was best in GM.

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Assembly Costs (GM Fremont vs Japan)

Assembly costs per car at the GM Fremont plant were 30% higher compared to the average of competitors including Japan.

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Paradigm Shift in Management

A fundamental change in how management is approached, with different historical periods emphasizing different power structures (e.g., aristocracy, bureaucracy, infocracy).

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Aristocracy

A historical management approach where power is distributed based on lineage and gender.

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Bureaucracy

A management approach that emerged during the 19th and 20th centuries. Power distribution is based on office/position, not lineage.

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Infocracy

A modern management paradigm where power is redistributed to individuals (Key Process Contributors (KPCs)) who contribute to core processes.

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Great Man Theory

Leadership theory asserting leaders are born, not made, possessing inherent qualities like charisma and confidence.

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Trait Theory

Leadership theory suggesting certain personality traits (e.g., extroversion, self-confidence) are linked to effective leadership.

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Contingency Theory

Leadership theory suggesting no single leadership style is effective all the time; different styles work in different situations.

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Situational Leadership

Leadership theory that effective leadership varies based on the situation and the followers' readiness.

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Behavioral Theories

Leadership theories that focus on observing and describing leadership behaviors.

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Participative Leadership

Leadership style that involves employees in the decision-making process.

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Management Theories

Leadership theories focused on efficient organization and task execution.

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Relationship Leadership

Leadership focusing on building strong relationships among team members.

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Management Theories

Leadership focusing on supervision, organization, and group performance; using rewards and punishments.

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Relationship Theories

Leadership focused on building connections and inspiring individuals.

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Diamond Model of Leadership

A leadership model showing how leaders influence outcomes through various factors.

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Employee Commitment

Employees' dedication to the team or organization.

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KIABI Vicenza Manager

Manager responsible for KIABI men's and women's departments in Vicenza, Italy.

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Increase Employee Commitment

Motivating employees to be dedicated to organizational goals.

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KIABI Women's Sales Competition

A competition among Italian KIABI Women's stores to see which has the highest sales growth from October 1st to December 31st (compared to the previous year).

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KIABI Vicenza Manager

The manager of the KIABI men's and women's departments in Vicenza, Italy.

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Competition Timeframe

The sales competition period is October 1st to December 31st.

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Employee Meeting

A meeting scheduled for tomorrow to strategize for the sales competition.

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Winning Reward

Free dinner at a fine restaurant for the winning store in the sales competition.

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Side Competition

A photo contest for employees, with the reward of publication online.

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Manager's Goal

To improve employee motivation and increase profits through winning the competition

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GM Sunbelt Strategy

General Motors' strategy of opening plants in the southern and western US, often in non-union areas.

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GM Fremont Plant (1982)

A GM plant in 1982 with high absenteeism, grievances, strikes, poor quality, and productivity, and high assembly costs.

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NUMMI Plant (1986)

A joint GM/Toyota venture with vastly improved employee relations, quality, and productivity.

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Employee Needs (NUMMI)

New management at the NUMMI plant addressed employee needs for understanding and value.

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Productivity (GM Fremont vs NUMMI)

NUMMI's productivity was significantly better than GM's average and the GM Fremont plant's productivity.

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Quality (GM Fremont vs NUMMI)

Quality at the NUMMI plant was better than the GM Fremont plant and also best in GM.

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Assembly Costs (GM Fremont vs Japan)

Assembly costs at the GM Fremont plant were 30% higher than Japan's average.

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Contingency Theories

Leadership styles vary based on the context of the situation; no one style works best in all situations.

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Situational Theories

Leaders adapt their style according to the specific situation, considering factors such as follower expertise.

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Behavioral Theories

Leadership is learned; great leaders are developed through experience and observation, not inherent traits.

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Participative Leadership

Followers' input is valued; leaders encourage participation in decision-making.

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Effective Leadership

Leaders must balance behaviors, follower needs, and the situation for optimal results.

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Paradigm Shift in Management

A crucial change in how management operates, with different historical eras emphasizing different power structures (e.g., aristocracy, bureaucracy, infocracy).

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Aristocracy

Historical approach to management where power is distributed based on lineage and gender.

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Bureaucracy

Management approach prevalent in the 19th and 20th centuries. Power is distributed based on position, not lineage.

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Infocracy

Modern management paradigm where power is redistributed to key process contributors.

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Great Man Theory

Theory suggesting leaders are born, not made, with inherent qualities like charisma and confidence.

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Trait Theory

Leadership theory suggesting specific personality traits (e.g., extroversion, self-confidence) are linked to leadership success.

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Contingency Theory

Leadership theory stating there's no one best management style. Effectiveness depends on the specific situation.

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Situational Leadership

Leadership style adjusting to the situation and the maturity level of followers for optimal effectiveness.

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Behavioral Theories

Focuses on describing and understanding the observable behavior of effective leaders rather than inherent traits.

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Participative Leadership

Leadership style involving followers in the decision-making process.

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Key Process Contributors

Individuals in an organization who contribute meaningfully to crucial processes.

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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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Skema Business School Leadership: Session 2 PDF

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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