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?

<p>It was the worst productivity in GM (D)</p> Signup and view all the answers

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

<p>Need for greater autonomy (B)</p> Signup and view all the answers

What do contingency theories of leadership emphasize?

<p>The environment and situational variables (D)</p> Signup and view all the answers

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

<p>The situational variables related to the decision-making context (A)</p> Signup and view all the answers

What is a key belief of behavioral theories of leadership?

<p>Leadership can be learned through teaching and observation (A)</p> Signup and view all the answers

Which of the following best describes participative leadership?

<p>A style that considers input from others while maintaining leader oversight (D)</p> Signup and view all the answers

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

<p>Balancing leader behaviors, follower needs, and context (C)</p> Signup and view all the answers

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

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

What do participative leadership theories encourage among group members?

<p>Active participation and contributions (D)</p> Signup and view all the answers

What aspect do behavioral theories of leadership focus on?

<p>Actions and behaviors of leaders (B)</p> Signup and view all the answers

What is a primary focus of management theories?

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

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

<p>Leadership is inherent and cannot be learned. (A)</p> 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?

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

How do transformational leaders primarily motivate their followers?

<p>By emphasizing the higher good of tasks (D)</p> Signup and view all the answers

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

<p>Encouragement of personal growth in employees (C)</p> Signup and view all the answers

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

<p>Key Process Contributors (B)</p> Signup and view all the answers

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

<p>Stronger connections with followers (D)</p> Signup and view all the answers

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

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

What criticism can be highlighted regarding Trait Theories of leadership?

<p>They ignore the role of situational factors. (D)</p> Signup and view all the answers

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

<p>Strategic commitment to tasks (C)</p> Signup and view all the answers

Which leadership style is primarily associated with developing interpersonal connections?

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

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

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

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

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

What is the primary role of rewards in management theories?

<p>To encourage desired performance and behavior (D)</p> Signup and view all the answers

What describes the leadership style promoted by Infocracy?

<p>Empowerment of knowledgeable contributors (A)</p> Signup and view all the answers

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

<p>Fulfillment of individual potential (D)</p> Signup and view all the answers

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

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

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

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

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

<p>To take the most appealing photos of store employees (D)</p> Signup and view all the answers

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

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

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

<p>Young ladies between 20 and 30 years of age (A)</p> Signup and view all the answers

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

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

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

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

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

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

Which characteristic best describes individualistic societies?

<p>Prioritize personal rights and independence (A)</p> Signup and view all the answers

Which country is known for having a high masculine culture?

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

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

<p>Prefers structured situations and strict rules (A)</p> Signup and view all the answers

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

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

Which statement accurately reflects indulgent societies?

<p>Encourage enjoyment and leisure (D)</p> Signup and view all the answers

Which describes a characteristic of collectivist cultures?

<p>Strong integration of individuals into social groups. (A)</p> Signup and view all the answers

What is a primary focus of high masculinity cultures?

<p>Clear distinction of gender roles and assertiveness. (B)</p> Signup and view all the answers

Which characteristic best represents high uncertainty avoidance?

<p>Preference for structured organizations and predictability. (D)</p> Signup and view all the answers

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

<p>Acceptance and expectation of inequality among people with power. (A)</p> Signup and view all the answers

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

<p>Strong focus on personal goals and achievements. (C)</p> Signup and view all the answers

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

<p>Men are expected to be assertive and focused on material success. (A)</p> Signup and view all the answers

Which statement about France's cultural orientation is accurate?

<p>Despite high levels of uncertainty avoidance, French people are competitive in nature. (A)</p> Signup and view all the answers

How is power distance characterized in low power distance countries?

<p>There is a preference for flat organizational structures. (A)</p> Signup and view all the answers

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

<p>Deep self-awareness (B)</p> Signup and view all the answers

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

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

What is a common misconception about teamwork in France?

<p>French people work well in teams due to their cultural emphasis on equality. (D)</p> Signup and view all the answers

In individualistic cultures, how are decisions primarily made?

<p>According to personal needs and preferences. (B)</p> Signup and view all the answers

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

<p>Promotion of community well-being and harmony. (A)</p> Signup and view all the answers

What is a common characteristic of collectivist cultures?

<p>Prioritization of family connections and group harmony. (D)</p> Signup and view all the answers

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

<p>Encouragement of functional conflict for problem-solving. (B)</p> Signup and view all the answers

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

<p>Focus on individual gain and competition. (B)</p> Signup and view all the answers

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

<p>It fosters respect for different identities and affiliations. (A)</p> Signup and view all the answers

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

<p>Unequally, with acceptance of authoritative hierarchy. (D)</p> Signup and view all the answers

What is a characteristic of high masculinity index cultures?

<p>Emphasis on assertiveness and material success. (C)</p> Signup and view all the answers

What is meant by the uncertainty avoidance index in cultures?

<p>The degree to which a culture tolerates unpredictability. (B)</p> Signup and view all the answers

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

<p>It is viewed as a destructive attitude in leadership. (D)</p> Signup and view all the answers

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

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

Why is deep self-awareness important for global leaders?

<p>It enables them to understand their cultural biases. (D)</p> Signup and view all the answers

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

<p>It leads to a preference for clear rules and structure. (D)</p> Signup and view all the answers

Flashcards

GM Fremont Plant Problems (1982)

High absenteeism (20%), numerous unresolved grievances (2000), frequent wildcat strikes, low productivity, and poor quality compared to Japanese competitors.

NUMMI Plant Improvement (1986)

A significant improvement in GM's Fremont plant, showing a dramatic reduction in absenteeism (2%), grievance resolution, wildcat strikes, and increased productivity and quality.

GM's Fremont Plant (1982) Employee Count

The plant had 5000 employees.

NUMMI Plant (1986): Employee Count

The NUMMI plant had 2000 employees.

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Employee Needs Met at NUMMI

The new management at NUMMI addressed employee needs for understanding and value.

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Contingency Theories

Leadership styles vary based on the situation, no one style is best for all situations.

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Situational Theories

Leaders choose the best action based on situational variables.

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Behavioral Theories

Leaders are made, not born. Focus on actions, not innate qualities.

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Participative Leadership

Leaders encourage input and contributions from others.

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What are contingency theories of leadership based on?

Contingency theories explore how different situational variables can influence the effectiveness of various leadership styles.

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What is a key aspect of behavioral leadership theory?

The belief that leadership skills can be developed through learning and observation.

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What makes participative leadership effective?

It allows for group members to contribute input and makes them feel valued and invested in the decision-making process.

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How do situational theories explain leadership?

They suggest that different leadership styles are appropriate for different situations and circumstances.

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Great Man Theory

Leaders are born with inherent qualities like charisma and confidence, making them natural leaders.

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Trait Theories

Leaders possess specific personality traits (e.g., extroversion) that make them suited to leadership.

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Aristocracy

Power distribution based on gender and lineage (18th century and before).

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Bureaucracy

Power distribution based on gender and office (19th & 20th centuries).

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Infocracy

Power redistributing to key process contributors (KPC's) in the information age.

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Situational Leadership

Leadership adjustments based on followers' readiness and competence.

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Transactional Leadership

Leadership style focused on supervision, organization, and group performance. It emphasizes rewards for success and punishments for failure.

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Transformational Leadership

Leadership style that focuses on building strong connections and inspiring followers. It motivates by highlighting the higher purpose and importance of the task.

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Diamond Model of Leadership

A leadership framework emphasizing the importance of influencing others, strategic thinking, and achieving results. It also highlights key factors like commitment to the strategy and the influence of external factors.

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Commitment to the Strategy

The degree to which employees believe in and are committed to the organization's overall plan and direction.

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Employee Energy

Reflects the level of motivation, enthusiasm, and overall effort employees bring to their work.

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Organizational Committment

The level of dedication and loyalty employees have towards their organization.

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KIABI Vicenza Short Case

A case study about managing the KIABI men and women's departments in Vicenza, Italy, focusing on leadership and organizational challenges.

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How to create commitment?

A critical management question exploring ways to foster employee dedication and loyalty towards the team or organization.

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KIABI Competition

A sales competition between KIABI Women's Departments in Italy, running from October 1st to December 31st. The store with the highest sales progression compared to the previous year wins.

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Competition Reward

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

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Side Competition

A photo competition where KIABI stores submit interesting employee photos. The top three winners have their photos published online.

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Manager's Goal

The KIABI manager aims to win the competition to demonstrate their ability to motivate employees and boost sales.

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Employee Meeting

A meeting scheduled for tomorrow in the employee room to discuss the KIABI competition with the team.

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Employee Profile

The KIABI store has five employees, all young women between 20 and 30 years old.

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Timeframe

The competition period for KIABI stores is from October 1st to December 31st.

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Sales Tracking

Sales results for each KIABI store are provided daily throughout the competition.

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What is culture?

Culture is a shared set of values, assumptions, beliefs, and expectations held by a group of people. It's like a song you can't explain without singing it.

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VABEs

VABEs stand for Values, Assumptions, Beliefs, and Expectations. They are the core components that define a culture.

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Hofstede's Cultural Dimensions

This framework analyzes cultural differences across various countries using dimensions like power distance, masculinity, and uncertainty avoidance.

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Power Distance

The degree to which less powerful members accept the unequal distribution of power in a society.

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Masculinity

The emphasis on achievement, assertiveness, and competition within a society.

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Uncertainty Avoidance

The level of tolerance for ambiguity and unpredictable situations.

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Humility

The key characteristic of a successful global leader, recognizing the value of other cultures and perspectives.

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What is the single most important element of a global leader?

Humility is crucial. It allows leaders to respect different identities and understand others' perspectives.

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Masculinity vs. Femininity

This dimension describes the degree to which a society values masculine traits like assertiveness and competition versus feminine traits like cooperation and quality of life.

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Individualism vs. Collectivism

This dimension describes the degree to which a society prioritizes individual needs and autonomy versus group harmony and communal responsibilities.

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Overseas Experience for Global Leaders

Having work experience in different countries helps develop cultural understanding, adaptability, and global perspectives essential for effective leadership.

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Cultural Diversity (Adaptable)

Effective global leaders embrace and adapt to different cultures, demonstrating sensitivity and responsiveness to international contexts.

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Honesty in Global Leadership

Integrity, transparency, and truthfulness are crucial for building trust and credibility in a global environment.

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Globally Strategic

Effective global leaders have a strategic mindset that encompasses international perspectives and considers global implications of their actions.

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Individualistic Cultures

Cultures where people prioritize personal goals and independence over group needs.

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Collectivist Cultures

Cultures where people prioritize group harmony and interdependence over individual goals.

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High Uncertainty Avoidance

Cultures that prefer structured situations and are uncomfortable with uncertainty.

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Low Uncertainty Avoidance

Cultures comfortable with ambiguity and tolerate risk-taking.

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Long-Term Orientation

Cultures that focus on future rewards and prioritize long-term goals.

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Short-Term Orientation

Cultures that focus on immediate gratification and short-term gains.

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Individualistic Societies

Societies that prioritize individual goals and values over group harmony, emphasizing personal independence and self-reliance.

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Collectivist Societies

Societies that emphasize group harmony and loyalty over individual goals, placing strong value on collective interests and social cohesion.

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Long-Term vs. Short-Term Orientation

This dimension examines how cultures balance past traditions with present and future challenges. Long-term oriented societies value patience and perseverance for future rewards, while short-term oriented societies focus on immediate outcomes.

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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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