Leadership Session 2: GM Case Studies
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Questions and Answers

Which management paradigm primarily distributed power by gender and lineage?

  • Infocracy
  • Aristocracy (correct)
  • Bureaucracy
  • Participative Management

Great Man theories suggest what about leadership capacity?

  • It can be learned over time with practice.
  • It can be developed through education and experience.
  • It is acquired through personal relationships.
  • It is inherent and individuals are born with it. (correct)

What is a key assumption in trait theories of leadership?

  • Leadership qualities differ between genders.
  • Leadership is a learned skill.
  • Charisma is the only important trait for leaders.
  • Certain inherited traits make individuals suitable for leadership. (correct)

During which era was bureaucracy the dominant management paradigm?

<p>19th and 20th Centuries (B)</p> Signup and view all the answers

Which leadership theory emphasizes environmental factors in effective leadership?

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

What major flaw do trait theories exhibit in their approach to leadership?

<p>They focus excessively on inherited traits rather than learned skills. (B)</p> Signup and view all the answers

Which assumption underlies the infocracy paradigm of management?

<p>Office holders know best. (A)</p> Signup and view all the answers

What is a common misconception regarding the qualities of leaders based on the Great Man Theory?

<p>Only individuals with certain traits can become leaders. (A)</p> Signup and view all the answers

What is the primary focus of management theories?

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

Which characteristic is most commonly associated with transformational leaders?

<p>Focus on individual employee growth (B)</p> Signup and view all the answers

In the Diamond Model of Leadership, which factor is NOT directly associated with organizational commitment?

<p>Profit margins (A)</p> Signup and view all the answers

What role do rewards and punishments play in managerial theories?

<p>They reinforce desired behaviors among employees (B)</p> Signup and view all the answers

How do relationship theories differ from management theories?

<p>They emphasize ethical standards over results (B)</p> Signup and view all the answers

What is the primary objective of the competition among the Women’s Departments in KIABI stores?

<p>To achieve the highest progression in sales compared to the previous year (A)</p> Signup and view all the answers

Which aspect does the Diamond Model of Leadership emphasize for achieving results?

<p>Achievement of customer satisfaction (A)</p> Signup and view all the answers

What is the main goal of transformational leaders when working with group members?

<p>To help members understand the significance of their tasks (A)</p> Signup and view all the answers

What incentive is provided to the store that wins the main competition?

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

What strategy is suggested for gaining commitment from team members?

<p>Creating an environment that encourages involvement (C)</p> Signup and view all the answers

How often will the results of the sales progression be reported to the managers?

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

What is the reward for the side competition that involves taking photos?

<p>Having photos published on the internet site of the store (C)</p> Signup and view all the answers

What is the age range of the employees managed by the department manager?

<p>20 to 30 years old (B)</p> Signup and view all the answers

What was the primary reason for the hostility at new GM plants constructed during the Sunbelt Strategy?

<p>Perceived attempts to undermine union control (D)</p> Signup and view all the answers

What is the manager's goal regarding the competition?

<p>To prove capability in increasing sales and employee motivation (A)</p> Signup and view all the answers

Where will the initial meeting to discuss the competition be held?

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

Which of the following metrics significantly improved at the GM NUMMI plant compared to the 1982 plant?

<p>Productivity (A), Total annual grievances (B), Employee absenteeism (D)</p> Signup and view all the answers

What do contingency theories of leadership emphasize as crucial for determining effective leadership styles?

<p>Particular environmental variables (B)</p> Signup and view all the answers

What duration has the manager been overseeing the women’s and men’s departments?

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

According to situational theories, what factors do leaders consider when choosing their leadership style?

<p>Variability within the group and the nature of the tasks (B)</p> Signup and view all the answers

What was one of the critical needs that new management at NUMMI sought to meet?

<p>Need to be understood (D)</p> Signup and view all the answers

How did the quality of products produced at NUMMI compare to those from other GM plants?

<p>Quality was considered the best in GM (A)</p> Signup and view all the answers

How do behavioral theories of leadership differ from Great Man theories?

<p>They emphasize that leadership abilities can be learned (B)</p> Signup and view all the answers

Which of the following characteristics was true about the 1982 GM Fremont Plant?

<p>Had a high level of wildcat strikes (C)</p> Signup and view all the answers

Which behavior characterizes participative leadership style?

<p>Encouraging input but retaining final decision-making authority (B)</p> Signup and view all the answers

What is a key aspect that determines success in leadership according to White and Hodgson?

<p>The balance between the leader's behaviors and follower needs (D)</p> Signup and view all the answers

In what scenario would authoritarian leadership be considered most appropriate?

<p>When group members lack expertise (D)</p> Signup and view all the answers

Who argued that great leaders are developed through experience rather than innate traits?

<p>White and Hodgson (A)</p> Signup and view all the answers

What common misconception about leadership styles is addressed by situational theories?

<p>One leadership style fits all situations (A)</p> Signup and view all the answers

What was the productivity level of the 1982 GM Fremont Plant compared to GM's overall average?

<p>Worst in GM (B)</p> Signup and view all the answers

What was a significant change in absenteeism levels at the NUMMI plant compared to the GM Fremont Plant in 1982?

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

Which metric improved significantly at the NUMMI plant, reflecting its transformation from the 1982 Fremont Plant?

<p>Quality of Products (A)</p> Signup and view all the answers

What was the main reason for the hostility in GM's new plants established under the Sunbelt Strategy?

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

What key need did the new management at NUMMI prioritize to enhance employee relations?

<p>Need to be valued (A)</p> Signup and view all the answers

What is the primary focus of relationship theories?

<p>Connections between leaders and followers (B)</p> Signup and view all the answers

Which aspect is emphasized by managerial theories?

<p>Manager supervision and organization (B)</p> Signup and view all the answers

What do transformational leaders aim to instill in their team members?

<p>Understanding of the higher goal (C)</p> Signup and view all the answers

In the Diamond Model of Leadership, which element is directly linked to results?

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

What is a critical element in gaining commitment from team members?

<p>Offering rewards and incentives (B)</p> Signup and view all the answers

What characteristic is often associated with transformational leaders?

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

Which outcome is NOT a focus of managerial theories?

<p>Employee moral development (A)</p> Signup and view all the answers

What do contingency theories emphasize as crucial in determining effective leadership?

<p>The variables related to the environment (C)</p> Signup and view all the answers

Which leadership style is suggested to be most effective when the leader is the most knowledgeable member of a group?

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

In participative leadership theories, what remains with the leader despite considering input from others?

<p>Final decision-making power (A)</p> Signup and view all the answers

What is a core belief of behavioral theories of leadership?

<p>Leadership skills can be learned and developed (C)</p> Signup and view all the answers

What aspect contributes significantly to the success of a leader according to White and Hodgson?

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

Situational theories of leadership suggest that leaders must consider what when deciding on a leadership style?

<p>The skill level of group members (A)</p> Signup and view all the answers

Which statement best defines participative leadership?

<p>Leadership style centered on collective decision-making (C)</p> Signup and view all the answers

Which theory contrasts with the notion that great leaders are innate and cannot be developed?

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

What primary focus characterizes the Infocracy paradigm of management?

<p>Redistribution of power to key process contributors (C)</p> Signup and view all the answers

Which leadership theory suggests traits are inherited and determine leadership potential?

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

A significant flaw in trait theories involves explaining why individuals with certain traits may not be leaders. What does this indicate?

<p>Not all traits are linked to leadership effectiveness. (B)</p> Signup and view all the answers

According to Great Man theories, leaders are characterized by which of the following?

<p>They naturally embody traits like charisma and confidence. (A)</p> Signup and view all the answers

What reward will the winning store of the main sales competition receive?

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

What type of competition is additionally provided to encourage creativity among the stores?

<p>Photography competition of store employees (D)</p> Signup and view all the answers

What assumption is made about leaders according to trait theories?

<p>Certain traits predispose individuals to become great leaders. (D)</p> Signup and view all the answers

What is primarily critiqued about the Great Man theory's perspective on leadership?

<p>It underestimates learned behaviors in leadership. (A)</p> Signup and view all the answers

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

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

What defines the primary difference between Trait theories and Great Man theories?

<p>Trait theories argue traits can be developed, while Great Man theories do not. (B)</p> Signup and view all the answers

What is the primary reason the manager wants to win the competition?

<p>To showcase leadership skills and motivate employees (B)</p> Signup and view all the answers

What primary assumption underlies the Great Man Theory regarding leadership?

<p>Individuals are endowed with leadership traits from birth. (D)</p> Signup and view all the answers

In what setting will the initial meeting to discuss the competition take place?

<p>In the employee room at the store (B)</p> Signup and view all the answers

What characteristic is shared by the employees managed by the department manager?

<p>They are all under 30 years old (A)</p> Signup and view all the answers

How frequently will the results of the sales progression be reported during the competition?

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

Flashcards

GM Fremont Plant (1982)

A General Motors plant with high absenteeism, unresolved grievances, and frequent wildcat strikes; low productivity and quality compared to industry standards.

NUMMI Plant (1986)

A joint venture between GM and Toyota marked by a significant improvement in worker relations, leading to near-zero grievances, low absenteeism, and high quality, significantly improved productivity.

Improved Productivity at NUMMI

NUMMI's productivity was double the average of other GM plants, showcasing the impact of a better approach to worker needs.

Absenteeism at NUMMI

NUMMI Plant experienced a massive reduction in employee absences compared to the GM Fremont Plant.

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Grievances at NUMMI

NUMMI Plant had nearly no unresolved grievances and minimal total annual grievances compared to a very high number of such grievances in the GM Fremont Plant.

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Great Man Theory

Leaders are born, not made. They possess inherent qualities like charisma and confidence.

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Trait Theory

Leaders possess certain inherited traits that make them suitable. These traits might include extroversion or confidence.

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Aristocracy

Power distribution based on lineage and gender.

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Bureaucracy

Power distributed by gender and office.

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Infocracy

Power redistributing to key process contributors.

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Leadership Theories

Different models explaining what different leaders look like.

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Contingency Theory

Leadership styles may vary based on the situation

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Participative Leadership

Leadership style that involves input from team members.

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Situational Theories

Leadership styles tailored to the situation. Leaders pick the best course of action depending on the details of a situation.

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Behavioral Theories

Leadership is learned, a skill you can develop. Emphasizes the actions of leaders, rather than their inherent qualities.

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Leadership Style

A leader's way of managing and motivating others.

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Followers' Qualities

Characteristics of the people who are being led.

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Effective Leadership

Successfully guiding a group or team towards objectives.

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Context of Leadership

The environment and situation surrounding the leadership process.

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KIABI Sales Competition

A contest between all Italian KIABI Women's Departments to achieve the highest sales increase from October 1st to December 31st compared to the previous year.

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Competition Reward

The winning KIABI store will receive a free dinner for all employees at a fancy restaurant.

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Side Competition

A supplementary contest where each KIABI store competes to capture the most creative employee photos for online publication.

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Manager's Goal

To motivate employees and significantly improve sales to achieve the top spot in the KIABI competition.

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First Meeting

A gathering planned by the manager the next day to discuss the KIABI competition and motivate their team.

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Employee Demographics

The manager oversees 5 female employees, aged between 20 and 30.

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Meeting Location

The manager's meeting with employees will be held in the employee room, a small space containing a table, chairs, and a coffee machine.

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Manager's Motivation

The manager is eager to win the KIABI competition to demonstrate their leadership skills and ability to enhance sales.

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Transactional Leadership

Leadership style focused on supervision, organization, and performance. Uses rewards and punishments to motivate.

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Transformational Leadership

Leadership style emphasizes connection between leaders and followers, inspiring and motivating groups.

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Diamond Model of Leadership

A model that illustrates the interconnectedness of leadership factors, from leader's actions to organizational outcomes.

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Commitment to Strategy

The degree to which leaders and followers are aligned and dedicated to achieving the organization's goals.

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Strategic Thinking

The ability of a leader to anticipate future challenges and opportunities and develop plans to address them.

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Managing Change

The leadership skill of effectively guiding an organization through transitions and adapting to new circumstances.

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Organizational Commitment

The level of dedication employees have to their organization, feeling valued and part of something bigger.

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Employee Energy

The enthusiasm and motivation employees bring to their work, directly impacting productivity and performance.

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Sunbelt Strategy

General Motors' plan in the 1950s to build factories in the southern and western United States, where union presence was weaker.

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NUMMI Plant

A joint venture between General Motors and Toyota in Fremont, California, known for its drastic improvement in productivity, quality and worker morale compared to the previous GM plant.

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What needs did new management at NUMMI meet?

The new management at NUMMI addressed the basic needs of their employees, such as feeling understood and valued, leading to a dramatic increase in productivity and quality.

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Unresolved Grievances at NUMMI

NUMMI had almost no unresolved grievances, unlike the previous GM plant, which had a huge backlog; this shows the effectiveness of addressing employee concerns.

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Contingency Leadership

Leadership style that adapts to the situation. There is no best style for all situations.

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Situational Leadership

Leaders choose the best approach based on specific factors, like the skills of the group. Different styles work better in certain situations.

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Behavioral Leadership

Focuses on the ACTIONS of leaders, not their traits. Anyone can learn leadership through practice and observation.

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Study Notes

Leadership Session 2

  • SKEMA Business School is a business school.

  • The session focused on leadership.

  • There were discussions on GM leadership problems.

  • GM in the 1950s used a Sunbelt strategy to build plants in the southern and western USA. These were non-union plants in "right-to-work states."

  • The unions viewed this strategy as an attempt by GM to move away from union-controlled states.

  • This led to conflict in plants that were established in those states.

  • A case study of the GM Fremont Plant (1982) highlighted poor performance indicators, such as high absenteeism rates (20%), many unresolved grievances (2,000), high total annual grievances (5,000), and frequent wildcat strikes (3-4). The Chevrolet Nova had assembly costs 30% higher than that of Japanese competitors. Productivity and Quality were both the worst in GM.

  • A case study of the GM NUMMI Plant (1986) showed substantial improvements - much lower absenteeism (2%), zero unresolved grievances, zero wildcat strikes, and the Chevrolet Nova+Geo Prism assembly costs were similar to Japanese competitors. Productivity and quality were the best in GM.

  • New management at NUMMI needed to be understood and valued.

  • The presentation introduced different leadership theories, including the Great Man, Trait, Contingency, Situational, Behavioral, Participative, Management, and Relationship theories.

  • Details about each theory are provided - including definitions and descriptions.

Paradigm Shifts in Management

  • Different eras of management styles were described (Aristocracy, Bureaucracy, Infocracy).
  • These paradigms show how power distribution and assumptions about leadership have changed.

The Diamond Model of Leadership

  • A diamond model of leadership was introduced.
  • The model comprises interlocking components.

Commitment

  • The session included questions related to employee commitment.
  • Questions for discussion focused on employee commitment.

The KIABI Vicenza Short Case

  • A case study about a competition between KIABI stores was presented.
  • Employees were tasked with motivating others.
  • The competition is based on sales progression from October 1 to December 31
  • There will be a free dinner for the winners.
  • There is an additional side competition for interesting employee photos.

Sales Results (Quantitative Data)

  • Data was presented on sales, showing positive and negative performances of various KIABI store groups for the period of October 2011- December 2011.

Group Presentations and Class Discussion

  • The class was expected to discuss presentations and what makes them successful or bad.
  • A particular method (HLBT) of presentation was mentioned.

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Leadership: Session 2 PDF

Description

This session delves into leadership challenges faced by GM during the 1950s and the contrasting performances of the Fremont and NUMMI plants. It offers insights into union conflicts, productivity issues, and strategies implemented to improve employee grievances and absenteeism. Explore key takeaways for effective leadership in a unionized environment.

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