chapter 11

Question 1

Which of the following is an important characteristic of a leader? 
A. goal-oriented
B. satisfied with the status quo
C. reactive
D. focused on past performance

Answer 1

A. goal-oriented

Question 2

All of the following statements about leadership are true EXCEPT
A. leadership is focused on the creation and implementation of a creative vision.
B. leadership is the process of transforming organizations from what they are to what the leader would have them become.
C. leaders support the status quo and seek control mechanisms to maintain it.
D. effective implementation of strategy is essential for successful leadership.

Answer 2

C. leaders support the status quo and seek control mechanisms to maintain it.

Question 3

According to the text, effective leadership is like a three-legged stool consisting of all of the following EXCEPT
A. dedication to maintaining the status quo.
B. nurturing a culture dedicated to excellence and ethical behavior.
C. determining a direction.
D. designing the organization.

Answer 3

A. dedication to maintaining the status quo.

Question 4

The leader’s role in developing a strategic vision provides many benefits including
A. a clear future direction.
B. a framework for their organization’s mission and goals.
C. enhanced employee communication and commitment.
D. all of these.

Answer 4

D. all of these.

Question 5

Poor organizational design by leaders can result in all of the following EXCEPT
A. insufficient mechanisms that integrate and coordinate activities across the firm.
B. inadequate accountability among managers and employees.
C. inappropriate budgeting and control systems.
D. teams, systems, and organizational processes that facilitate implementation.

Answer 5

D. teams, systems, and organizational processes that facilitate implementation.

Question 6

XYZ's CEO scrapped the company's commission-based reward system because it was rewarding employees for inappropriate behavior. This is an example of 
A. setting a direction.
B. designing the organization.
C. unethical behavior.
D. failure to maintain the status quo.

Answer 6

B. designing the organization.

Question 7

Leaders play a key role in developing and sustaining an organization's 
A. status quo.
B. culture.
C. reporting relationships.
D. rules and regulations.

Answer 7

B. culture.

Question 8

The process by which people reconcile opposing thoughts to identify creative solutions that provide them with more options and new alternatives is known as 
A. designing the organization.
B. conservative thinking.
C. ethical planning.
D. integrative thinking.

Answer 8

D. integrative thinking.

Question 9

All of the following stages are part of the integrative thinking and deciding process EXCEPT 
A. causality.
B. conservation.
C. architecture.
D. salience.

Answer 9

B. conservation.

Question 10

In the integrative thinking and deciding process, making a mental map of the causal relationships between the elements of a decision to evaluate how the elements relate to one another is known as 
A. architecture.
B. causality.
C. visualization.
D. multidimensionality.

Answer 10

B. causality.

Question 11

Barriers in which the design of the organization's structure, information processing, and reporting relationships, impede the proper flow and evaluation of information are known as 
A. systemic barriers.
B. behavioral barriers.
C. political barriers.
D. barriers to entry.

Answer 11

A. systemic barriers.

Question 12

Barriers associated with a manager's tendency to look at issues from a biased or limited perspective are known as 
A. systemic barriers.
B. behavioral barriers.
C. political barriers.
D. barriers to exit.

Answer 12

B. behavioral barriers.

Question 13

Refusal to share information, conflicts over resources, conflicts between departments and divisions, and petty interpersonal differences are symptoms of which type of barrier to change? 
A. systemic barriers
B. political barriers
C. behavioral barriers
D. all of these

Answer 13

B. political barriers

Question 14

Which of the following explains why organizations are prone to inertia and slow to change? 
A. personal time constraints
B. political barriers
C. vested interests in the status quo
D. all of these

Answer 14

D. all of these

Question 15

All of the following constitute organizational bases of a leader's power EXCEPT 
A. legitimate power.
B. reward power.
C. referent power.
D. coercive power.

Answer 15

C. referent power.

Question 16

Expert power
A. is derived from organizationally conferred decision-making authority.
B. arises from a manager’s access, control, and distribution of information that is not freely available to everyone in an organization.
C. is derived from referent power.
D. is derived from the leader’s capability and knowledge in a particular field.

Answer 16

D. is derived from the leader’s capability and knowledge in a particular field.

Question 17

Coercive power is
A. the power exercised by use of fear of punishment for errors of omission or commission by employees.
B. the power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates.
C. is the type that arises from a manager’s access, control, and distribution of information that is not freely available to everyone in an organization.
D. the ability of the leader or manager to confer rewards for positive behaviors or outcomes.

Answer 17

A. the power exercised by use of fear of punishment for errors of omission or commission by employees.

Question 18

The source of referent power is
A. a subordinate’s identification with the leader.
B. a leader’s identification with the subordinates.
C. derived from the fact that the manager can potentially act as a reference when the employee applies for another job.
D. derived from the manager’s ability to provide effective incentives to employees.

Answer 18

A. a subordinate’s identification with the leader.

Question 19

The three broad sets of capabilities that a leader should possess include all of the following EXCEPT 
A. technical skills.
B. cognitive abilities.
C. calculative abilities.
D. emotional intelligence

Answer 19

C. calculative abilities.

Question 20

All of the following are components of Emotional Intelligence (EI) EXCEPT 
A. self-awareness.
B. self-regulation.
C. self-promotion.
D. empathy.

Answer 20

C. self-promotion

Question 21

Which component of Emotional Intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? 
A. self-awareness
B. empathy
C. social skills
D. self-regulation

Answer 21

B. empathy

Question 22

The following two components of Emotional Intelligence (EI) deal with a person's ability to manage relationships with others: 
A. motivation and self-awareness.
B. self-regulation and empathy.
C. empathy and social skill.
D. motivation and empathy.

Answer 22

C. empathy and social skill.

Question 23

Complete the following sentence. The days when a company’s leader __________ are gone; today, all employees need to be involved in __________.
A. learned for the organization; learning and adapting
B. managed from the top; self-management
C. delegated authority; assuming responsibility and control
D. was held in high regard; holding leaders accountable for their actions

Answer 23

A. learned for the organization; learning and adapting

Question 24

What happens to organizations that get caught up in day-to-day work activities?
A. They fail to think objectively about themselves and their business.
B. They fail to refresh their strategies or reengineer their work processes.
C. They fail to ask probing questions about their basic assumptions.
D. All of these.

Answer 24

D. All of these.

Question 25

Which of the following is not a characteristic of a successful learning organization?
A. They create a proactive, creative approach to the unknown.
B. They actively solicit the involvement of employees at all levels.
C. They regularly engage in activities to reinforce the status quo.
D. They enable everyone to use their intelligence and apply their imagination.

Answer 25

C. They regularly engage in activities to reinforce the status quo.

Question 26

Complete the following sentence. “Inspiring and motivating people with a mission or purpose is a __________ for developing an organization that can learn and adapt.”
A. necessary and sufficient condition
B. necessary, but not a sufficient condition
C. goal, but not a necessary condition
D. goal and a required pre-condition

Answer 26

B. necessary, but not a sufficient condition

Question 27

In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager's role needs to be that of 
A. resource allocator.
B. resource controller.
C. a flexible resource.
D. an advocator of the status quo.

Answer 27

C. a flexible resource.

Question 28

The "top-down" perspective of empowerment 
A. encourages intelligent risk taking.
B. trusts people to perform.
C. encourages cooperative behavior.
D. delegates responsibility.

Answer 28

D. delegates responsibility.

Question 29

The “bottom-up” perspective of empowerment
A. clarifies the organization’s values and mission.
B. builds teams to encourage cooperative behavior.
C. communicates specific plans.
D. encourages employees to “ask permission rather than forgiveness.”

Answer 29

B. builds teams to encourage cooperative behavior.

Question 30

The empowerment perspective that involves trusting people to "do the right thing," take intelligent risks, and act with a sense of ownership is known as 
A. the leadership perspective.
B. the top-down approach.
C. the bottom-up approach.
D. the risk-taking model.

Answer 30

C. the bottom-up approach.

Question 31

An empowerment perspective that delegates responsibility, focuses on accountability, and relies on clearly specified rewards to motivate is known as 
A. the leadership perspective.
B. the top-down approach.
C. the bottom-up approach.
D. the accounting model.

Answer 31

B. the top-down approach.

Question 32

Manufacturing employees at Chaparral Steel are directly involved with customers and have access to the new innovative knowledge being developed in its manufacturing processes. This is an example of 
A. hierarchical control.
B. knowledge management.
C. enabling heroes and drones.
D. employee empowerment.

Answer 32

D. employee empowerment.

Question 33

Which of the following is NOT one of the three core activities in the “open book” management system pioneered by Jack Stack?
A. Information is generated daily that reflects the work performance and production costs of each employee.
B. The information is aggregated once a week and shared with employees at every level.
C. Information about customer expectations and feedback is distributed monthly.
D. Extensive training in how to use and interpret the numbers is provided to all employees.

Answer 33

C. Information about customer expectations and feedback is distributed monthly.

Question 34

At Whole Foods, the "no secrets" management philosophy allows employees access to most of the company's operating and financial data. This is an example of 
A. information sharing.
B. employee advocacy.
C. bottom-up empowerment.
D. internal benchmarking.

Answer 34

A. information sharing.

Question 35

Internal benchmarking at Whole Foods
A. is used by teams to compete against other teams in their stores.
B. is used by teams which compete against their own goals for sales, growth, and productivity.
C. is used by teams to compete against similar teams at different stores and regions.
D. all of these.

Answer 35

D. all of these.

Question 36

Functional benchmarking
A. is not very useful for organizations with a divisional organizational structure.
B. endeavors to determine best practices regardless of industry.
C. restricts the search for best practices to competitors.
D. is useful when researching industry-specific standards.

Answer 36

B. endeavors to determine best practices regardless of industry.

Question 37

All of the following are guidelines an organization can use to promote the challenging of the status quo EXCEPT
A. establishing a “culture of dissent.”
B. forcefully creating a sense of urgency.
C. fostering a culture that encourages risk taking.
D. creating a results-based reward system.

Answer 37

D. creating a results-based reward system.

Question 38

Companies that cultivate cultures of experimentation and curiosity make sure that \_\_\_\_\_\_\_\_\_\_ is not, in essence, to be avoided at all costs. 
A. experimentation
B. failure
C. authority
D. risk taking

Answer 38

B. failure

Question 39

Which of the following statements about ethics is FALSE?
A. Ethics may be defined as a system of right and wrong.
B. Ethics assists individuals in deciding when an act is moral or immoral.
C. Ethics is NOT concerned with whether or not an act is socially desirable.
D. Business ethics is the application of ethical standards to commercial enterprises.

Answer 39

C. Ethics is NOT concerned with whether or not an act is socially desirable.

Question 40

As a manager, when faced with ethical crises you should
A. focus on issues most relevant to stockholders.
B. wait for the other party to make the first move.
C. take the initiative to address the problem.
D. cover up as much as possible.

Answer 40

C. take the initiative to address the problem.

Question 41

All of the following statements about ethical organizations are true EXCEPT
A. the potential benefits of an ethical organization are few but direct.
B. ethical values shape the search for opportunities.
C. organizational ethics define what a company is and what it stands for.
D. ethics provide a common frame of reference that serves as a unifying force.

Answer 41

A. the potential benefits of an ethical organization are few but direct.

Question 42

Proactive measures to prevent organizational ethics problems include all of the following EXCEPT
A. instituting a reward system which considers outcomes as its primary criterion.
B. using leaders as role models of ethical behavior.
C. issuing statements describing the organization’s commitment to certain standards of behavior.
D. using the organization’s information systems as a control system.

Answer 42

A. instituting a reward system which considers outcomes as its primary criterion.

Question 43

Which of the following statements would least likely be found in a corporate credo?
A. Maximize financial benefits for stakeholders.
B. Provide secure and stable employment for employees.
C. Establish an environment that enhances professional growth.
D. Support community organizations and projects.

Answer 43

A. Maximize financial benefits for stakeholders.