Leadership Theories and NUMMI Management

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Questions and Answers

What was a significant issue at the GM Fremont Plant in 1982?

Outstanding product quality

High employee satisfaction

High absenteeism rate (correct)

Low assembly costs

What was a key outcome of the new management at NUMMI in 1986?

Decline in product quality

Reduction in wildcat strikes (correct)

Increased unresolved grievances

Improved employee absenteeism

Which strategy did General Motors implement in the 1950s?

Union Strengthening Plan

Sunbelt Strategy (correct)

Northeast Expansion Initiative

Autonomous leadership model

What was one of the grievances concerning the GM Fremont Plant's productivity?

It was the worst productivity in GM Signup and view all the answers

What aspect was NOT mentioned as a need met by the new management at NUMMI?

Need for greater autonomy Signup and view all the answers

What do contingency theories of leadership emphasize?

The environment and situational variables Signup and view all the answers

According to situational theories, what should leaders consider when choosing a leadership style?

The situational variables related to the decision-making context Signup and view all the answers

What is a key belief of behavioral theories of leadership?

Leadership can be learned through teaching and observation Signup and view all the answers

Which of the following best describes participative leadership?

A style that considers input from others while maintaining leader oversight Signup and view all the answers

What do White and Hodgson suggest is crucial for effective leadership?

Balancing leader behaviors, follower needs, and context Signup and view all the answers

In what situation might an authoritarian leadership style be most appropriate?

When the leader is the most knowledgeable member Signup and view all the answers

What do participative leadership theories encourage among group members?

Active participation and contributions Signup and view all the answers

What aspect do behavioral theories of leadership focus on?

Actions and behaviors of leaders Signup and view all the answers

What is a primary focus of management theories?

Supervision, organization, and group performance Signup and view all the answers

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

Leadership is inherent and cannot be learned. Signup and view all the answers

Which of the following theories suggests that certain traits are inherited and may enhance one's ability to lead?

Great Man Theory Signup and view all the answers

How do transformational leaders primarily motivate their followers?

By emphasizing the higher good of tasks Signup and view all the answers

Which of the following is NOT a characteristic of managerial theories?

Encouragement of personal growth in employees Signup and view all the answers

In the context of leadership, what does the term 'KPCs' refer to?

Key Process Contributors Signup and view all the answers

What outcome is often associated with high ethical and moral standards in leaders?

Stronger connections with followers Signup and view all the answers

Which management paradigm is associated with power being distributed by gender and lineage?

Aristocracy Signup and view all the answers

What criticism can be highlighted regarding Trait Theories of leadership?

They ignore the role of situational factors. Signup and view all the answers

What is one important factor in the Diamond Model of Leadership?

Strategic commitment to tasks Signup and view all the answers

Which leadership style is primarily associated with developing interpersonal connections?

Transformational leadership Signup and view all the answers

What key characteristic is often highlighted as essential for effective leadership in Trait Theories?

Extroversion Signup and view all the answers

In which management paradigm do assumptions indicate that 'Boss knows best'?

Bureaucracy Signup and view all the answers

What is the primary role of rewards in management theories?

To encourage desired performance and behavior Signup and view all the answers

What describes the leadership style promoted by Infocracy?

Empowerment of knowledgeable contributors Signup and view all the answers

In relationship theories, what do transformational leaders seek for their team members?

Fulfillment of individual potential Signup and view all the answers

What is the main objective of the competition between the Women's Departments in KIABI stores?

To achieve the highest progression in sales Signup and view all the answers

What reward will the winning store receive in the sales competition?

A free dinner at a fancy restaurant Signup and view all the answers

What is the purpose of the side competition in this context?

To take the most appealing photos of store employees Signup and view all the answers

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

About six months Signup and view all the answers

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

Young ladies between 20 and 30 years of age Signup and view all the answers

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

In the employee room Signup and view all the answers

What is one of the manager's motivations for wanting to win the competition?

To demonstrate effective employee motivation Signup and view all the answers

What is the time frame for measuring the sales progression in the competition?

From October 1st to December 31st Signup and view all the answers

Which characteristic best describes individualistic societies?

Prioritize personal rights and independence Signup and view all the answers

Which country is known for having a high masculine culture?

Japan Signup and view all the answers

Which of the following best describes a high uncertainty avoidance culture?

Prefers structured situations and strict rules Signup and view all the answers

In terms of cultural orientation, what does long-term orientation value the most?

Perseverance and thrift Signup and view all the answers

Which statement accurately reflects indulgent societies?

Encourage enjoyment and leisure Signup and view all the answers

Which describes a characteristic of collectivist cultures?

Strong integration of individuals into social groups. Signup and view all the answers

What is a primary focus of high masculinity cultures?

Clear distinction of gender roles and assertiveness. Signup and view all the answers

Which characteristic best represents high uncertainty avoidance?

Preference for structured organizations and predictability. Signup and view all the answers

Which of the following accurately depicts power distance in a society?

Acceptance and expectation of inequality among people with power. Signup and view all the answers

What is a typical trait of individuals from an individualistic culture?

Strong focus on personal goals and achievements. Signup and view all the answers

What does high masculinity in a society typically indicate about gender roles?

Men are expected to be assertive and focused on material success. Signup and view all the answers

Which statement about France's cultural orientation is accurate?

Despite high levels of uncertainty avoidance, French people are competitive in nature. Signup and view all the answers

How is power distance characterized in low power distance countries?

There is a preference for flat organizational structures. Signup and view all the answers

Which characteristic is essential for effective global leaders according to the content?

Deep self-awareness Signup and view all the answers

Which of these countries is most associated with long-term orientation?

China Signup and view all the answers

What is a common misconception about teamwork in France?

French people work well in teams due to their cultural emphasis on equality. Signup and view all the answers

In individualistic cultures, how are decisions primarily made?

According to personal needs and preferences. Signup and view all the answers

What approach is typically taken in high feminine societies regarding social dynamics?

Promotion of community well-being and harmony. Signup and view all the answers

What is a common characteristic of collectivist cultures?

Prioritization of family connections and group harmony. Signup and view all the answers

What does the presence of 'devil's advocate' in organizations signify in the context of power distance?

Encouragement of functional conflict for problem-solving. Signup and view all the answers

Which of the following traits is NOT considered part of effective global leadership?

Focus on individual gain and competition. Signup and view all the answers

What does humility contribute to in the effectiveness of a global leader?

It fosters respect for different identities and affiliations. Signup and view all the answers

In high power distance cultures, how is power typically distributed?

Unequally, with acceptance of authoritative hierarchy. Signup and view all the answers

What is a characteristic of high masculinity index cultures?

Emphasis on assertiveness and material success. Signup and view all the answers

What is meant by the uncertainty avoidance index in cultures?

The degree to which a culture tolerates unpredictability. Signup and view all the answers

What is a significant consequence of the VABE 'I'm Right and You are wrong!'?

It is viewed as a destructive attitude in leadership. Signup and view all the answers

Which of the following is NOT a level of geographic identity in culture?

Company Signup and view all the answers

Why is deep self-awareness important for global leaders?

It enables them to understand their cultural biases. Signup and view all the answers

What is the impact of high uncertainty avoidance on a culture?

It leads to a preference for clear rules and structure. Signup and view all the answers

Study Notes

Leadership: Session 2

SKEMA Business School is an accredited business school.
The session is about leadership.

GM Leadership Problems

A cartoon depicts a conversation involving General Motors (GM) leadership.
The cartoon suggests GM's leadership had trouble with innovation.

Short Background on General Motors

In the 1950s, GM started building plants in the American South and West, these states were non-unionized.
This strategy was considered a move away from union-controlled states, the new plants were conflict ridden.

The GM Leadership Story (1982 Fremont Plant)

The 1982 GM Fremont plant had 5000 employees.
Employee absenteeism was 20%.
There were 2000 unresolved grievances and 5000 total grievances per year.
Strikes were seen 3–4 times per year.
Chevrolet Nova assembly costs were 30% above Japanese counterparts.
Productivity and quality were the lowest in GM.

The NUMMI Leadership Story (1986 GM NUMMI Plant)

The 1986 GM NUMMI plant had 2000 employees.
Employee absenteeism was 2%.
There were 0 unresolved grievances and 0 total annual grievances.
There were 0 strikes in this facility.
Chevrolet Nova and Geo Prism assembly costs were the same as Japanese counterparts.
Productivity and quality were best in GM.

What Needs Did New Management at NUMMI Meet?

The need to be understood and valued.
Other needs were identified.

Paradigm Shifts in Management

Management has shifted from aristocracy, to bureaucracy, to infocracy.
Power is distributed by gender and lineage during the aristocracy period (18th Century).
The 19th and 20th centuries saw power distributed by gender and office, the assumption is that the boss knows best.
Power is redistributed to key contributors, in this instance the assumption that "the KPC's know best"

What Are the Main Leadership Theories?

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

Great Man Theory

Great man theories believe that leaders are born.
Great leaders are characterized by charisma, confidence, intelligence, and social skills.
Leaders are considered naturally born with leadership tendencies (innate).

Trait Theories

Similar to Great Man theories, trait theories assume leaders possess inherent qualities that make them effective.
Traits like extroversion, self-confidence, and courage are commonly associated with leadership.

Contingency Theories

Contingency theories emphasize the importance of situational variables in choosing a leadership style.
Leaders need to adjust their behavior according to the specific situation.

Situational Theories

Situational theories suggest that the most effective leadership approach depends on the current situation.
Authoritarian styles might be best for situations where one leader is knowledgeable & experienced.
Democratic styles are better suited for groups with skilled specialists.

Behavioral Theories

Behavioral theories focus on the actions of leaders, assuming leadership is learnable.
Leaders can learn and adapt leadership skills through education and observation.

Participative Leadership

Participative leadership theories suggest leaders should value input from others and foster relevance in decision-making processes.
The leader retains the right to allow input from others and retains the ultimate decision-making prerogative.

Management Theories

Also known as transactional theories.
These theories focus on the role of supervision, organization, and performance.

Relationship Theories

Often called transformational leadership.
Leaders motivate and inspire followers by focusing on the task, group performance in context with the task, and the achievement of personal goals.

The Diamond Model of Leadership

A comprehensive leadership model.

Commitment

Questions about gaining commitment from individuals and employees to a team or organization were posed.

The Kiabi Vincenza Short Case

An assigned case study on Kiabi, an Italian retailer.
Store managers will compete to increase sales, with an additional competition for employee photos for the website.

Group Presentations - Class Discussions

Discussions on what makes a good presentation.

HLBT Method

Acronym for communicating (in public, in digital, in teams): Helpfulness, Listening, Thoughtfulness, and Bravery.

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Description

This quiz explores key aspects of leadership theories and the management changes at the NUMMI plant in the 1980s. It highlights significant issues faced at the GM Fremont Plant and the strategies implemented by General Motors and NUMMI. Test your knowledge on leadership styles and theories that influence effective management practices.