Leadership Session 2: GM Case Study

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Questions and Answers

What was a significant change that occurred at the GM NUMMI plant by 1986 compared to 1982?

  • Total annual grievances decreased significantly. (correct)
  • The assembly costs per car increased.
  • Abenteeism rates rose sharply.
  • Productivity remained the same as in 1982.

Which of the following was NOT a characteristic of the GM Fremont plant in 1982?

  • High employee morale. (correct)
  • Frequent wildcat strikes.
  • Numerous unresolved grievances.
  • High absenteeism rate.

What strategy did General Motors employ in the 1950s to address labor issues?

  • Increasing wages for existing employees.
  • Building plants in right-to-work states. (correct)
  • Expansion of plants in union-controlled areas.
  • Implementing strict union regulations.

What was a reported effect on the workers in the new GM plants established during the Sunbelt Strategy?

<p>Increased hostility and conflict. (B)</p> Signup and view all the answers

Which need was identified as essential for the new management at NUMMI to address?

<p>Need to be understood. (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 of the following best defines transformational leadership?

<p>Leadership focusing on group motivation and potential (C)</p> Signup and view all the answers

What is one characteristic of relationship theories?

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

In the Diamond Model of Leadership, what does 'strategic thinking' relate to?

<p>Leader influence and commitment (B)</p> Signup and view all the answers

What aspect is NOT a focus of management theories?

<p>Employee personal growth (B)</p> Signup and view all the answers

Which of the following is an environmental factor considered in the Diamond Model?

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

What is a key outcome expected from relationship theories?

<p>Enhanced motivation and performance (B)</p> Signup and view all the answers

What is the typical approach of managerial theories towards employee failures?

<p>Reprimanding or punishment (D)</p> Signup and view all the answers

What is the primary focus of contingency theories of leadership?

<p>Environmental variables affecting leadership style (A)</p> Signup and view all the answers

According to situational theories, what factor primarily influences a leader's choice of action?

<p>Specific situational variables (A)</p> Signup and view all the answers

What philosophy underpins behavioral theories of leadership?

<p>Leadership is primarily learned through observation (B)</p> Signup and view all the answers

In participative leadership theories, what aspect does the leader retain?

<p>Right to allow others' input (C)</p> Signup and view all the answers

Which leadership style is suggested to be most appropriate when the leader possesses the most knowledge and experience?

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

What do contingency theories assert about effective leadership?

<p>Success relies on a combination of various factors (A)</p> Signup and view all the answers

Which of the following elements is NOT considered in situational theories?

<p>Leader's emotional intelligence (A)</p> Signup and view all the answers

What characteristic is typically associated with participative leadership?

<p>Encouragement of group contributions (D)</p> Signup and view all the answers

What is the main criterion for winning the competition among the Women's Departments at KIABI stores?

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

What is the reward for the winning store in the sales competition?

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

Which aspect of the competition includes a reward for recognition rather than a material prize?

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

What is the demographic composition of the employees under the manager's responsibility?

<p>Young ladies aged 20-30 (A)</p> Signup and view all the answers

What is a primary goal for the manager regarding the upcoming competition?

<p>To demonstrate effective employee motivation (C)</p> Signup and view all the answers

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

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

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

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

How will the results of the competition be communicated to the managers?

<p>Daily updates from Top Management (C)</p> Signup and view all the answers

What assumption is associated with the Bureaucracy paradigm in management?

<p>Boss knows best. (D)</p> Signup and view all the answers

Which of the following leadership theories suggests that leaders possess inherent traits for effective leadership?

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

What critical viewpoint is questioned within Trait's Theory concerning leaders who do not exhibit strong leadership despite possessing certain traits?

<p>The applicability of hereditary traits. (D)</p> Signup and view all the answers

In which management paradigm is power primarily distributed by office rather than by lineage?

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

Which leadership theory portrays leaders as mythic figures destined to rise when needed?

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

What is a significant challenge associated with Trait Theories in identifying effective leaders?

<p>Overlap in traits with non-leaders. (C)</p> Signup and view all the answers

What is the primary assumption of Infocracy regarding the redistribution of power?

<p>Power is redistributed to key process contributors. (B)</p> Signup and view all the answers

What does the Behavioral Theory of leadership focus on regarding leaders?

<p>Learning and developing key behaviors. (D)</p> Signup and view all the answers

Flashcards

Management Theories

Management theories focus on supervision, organization, and group performance, using rewards and punishments for leadership.

Relationship Theories

Relationship theories focus on the connection between leaders and followers, motivating and inspiring them to achieve group goals and individual potential.

Transformational Leadership

Leadership style focused on connecting with and inspiring followers to achieve the group's overall goals and personal potential.

Transactional Leadership

Leadership style using rewards and punishments to motivate employees and maintain organizational efficiency.

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Environmental Effects

Factors outside the organization that influence the leader and the organization's success.

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Strategic Thinking

Thinking about long-term goals and plans to achieve desired outcomes.

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Employee Commitment

The level of dedication and loyalty employees show towards their work and organization.

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Organizational Commitment

The organizational aspect of employee commitment.

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GM Fremont Plant (1982)

A General Motors plant with high absenteeism, unresolved grievances, and frequent wildcat strikes, very low productivity, and low quality.

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GM NUMMI Plant (1986)

A General Motors plant with drastically improved performance compared to the Fremont plant in 1982, including significantly lower absenteeism, unresolved grievances and wildcat strikes, higher productivity, and improved quality.

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Sunbelt Strategy

GM's strategy in the 1950s to build plants in southern and western USA, typically in states without unions.

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Employee Needs (NUMMI)

New management at NUMMI prioritized meeting employee needs, which improved productivity and quality. This emphasized understanding and value.

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Productivity and Quality (GM)

NUMMI plant showed significant improvement compared to the Fremont plant, in terms of productivity and quality. NUMMI achieved best in class quality.

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KIABI Sales Competition

A competition among Italian KIABI women's departments to see which store has the highest sales increase 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 top-performing store.

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Employee Photo Contest

A side competition to determine the store with the most interesting photos of employees for website and social media promotion.

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Competition Duration

October 1st to December 31st.

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Manager's Goal

Increase sales and demonstrate effective employee motivation.

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Employee Room Meeting

Staff meeting discussing sales competition goals.

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Sales Progression

Comparing current sales to last year's sales for a specific time.

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Employee Department

Women's Fashion.

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Great Man Theory

Leadership is an inherent quality, leaders are born, not made.

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Trait Theory

Leadership is linked to specific personality traits.

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Aristocracy

Power distributed by lineage and gender in the 18th century.

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Bureaucracy

Power distributed by gender and office. Time period: 19th and 20th Centuries.

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Infocracy

Power redistributing to contributors in the Information Age.

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Contingency Theory

Leadership style dependent on the specific situation.

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Situational Theory

Leadership style changes according to specific circumstances.

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Leadership Theories

Different models about how leaders emerge and influence others.

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Situational Leadership

Leaders adapt their style based on the specific situation. Different situations need different leadership approaches.

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Behavioral Leadership

This theory emphasizes that leaders are made, not born. They develop their skills through learning and observation.

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Participative Leadership

This style involves actively seeking and incorporating input from the team. It encourages collaboration and decision-making.

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What are the core principles of Contingency Theories?

Contingency theories emphasize that leadership effectiveness depends on a variety of factors including the situation, the team, the task, and the leader's style. There is no single best leadership style.

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What are the key elements of Situational Theories?

Situational theories propose that effective leaders choose the optimal strategy based on the specific circumstances. They adapt their leadership style to the situation.

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What are the main tenets of Behavioral Theories?

Behavioral theories believe that leadership skills can be learned. People can become effective leaders through training and experience.

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What is the essence of Participative Leadership?

Participative leadership involves actively engaging the team in decision-making. It emphasizes collaboration and shared input.

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Study Notes

Leadership: Session 2

  • SKEMA Business School is a business school with various accreditations (EQUIS, AMBA, AACSB, EFMD)
  • GM (General Motors) leadership problems, including a cartoon depicting issues with new concepts.
  • A background on General Motors' Sunbelt Strategy in the 1950s, focused on building non-union plants in the southern and western USA. The strategy was seen as an effort to avoid union influence in these states. This led to conflict-ridden plants.
  • Details about the 1982 GM Fremont Plant, including high absenteeism (20%), unresolved grievances (2000), annual grievances (5000), and wildcat strikes (3-4). The Chevrolet Nova was 30% more costly to manufacture than Japanese models. Productivity and quality were also considered the worst in GM.
  • Description of the 1986 GM NUMMI Plant: Employee count (2000), low absenteeism (2%), zero unresolved and annual grievances, zero wildcat strikes, product costs similar to Japanese models, double GM average in terms of productivity, and deemed the best in GM in terms of quality.
  • Critical needs identified for new management at NUMMI - understanding and valuing employees.
  • Paradigm shifts in management, moving from aristocracy to bureaucracy to infocracy. Power distribution shifts from gender/lineage to gender/office and then to key process contributors.
  • Important leadership theories - Great Man, Trait, Contingency, Situational, Behavioral, Participative, Management and Relationship.
  • Further detail on Great Man theory, explaining a leader as "born to lead" with inherent qualities, and traits
  • Further detail on Trait theories, linking traits to leadership qualities.
  • Detail on Contingency theories, focusing on variables influencing leadership style and suggesting no single best style.
  • Situational theories - leaders choose the best course based on situational variables, with examples of authoritarian vs. democratic leadership styles dependent on characteristics of the group.
  • Behavioral theories - believe leaders are made not born, focusing on observable actions for leadership development.
  • Participative leadership - emphasizing the importance of input from others. Leaders still retain the right to accept or reject ideas.
  • Management theories, aka Transactional theories - based on rewards and punishments.
  • Relationship theories; emphasizing leaders focusing on task performance while inspiring potential and moral standards.
  • Detail on The Diamond Model of Leadership: the leader, followers/people, organization, tasks, and effects of the environment.

Additional Information

  • Commitment: Questions for participants to consider how to gain commitment from people and employees towards their team or organization.
  • KIABi Vincenza Case Study: KIABI, a clothing retailer, has a competition for its women's departments in Italy, with the store with the best sales progression winning a celebratory dinner. The manager is in charge of five young employees.

Presentation Notes (Pages 23-24)

  • Group Presentation Class Discussion: Discussion points about what makes a good and bad presentation.
  • HLBT Method for Communicating (in public, digital presentation, in teams) A summarized method for creating better communications.

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