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Chapter 11 MGT 405
1. Which of the following is an important characteristic of a leader?A. satisfied with the status quoB. goal-orientedC. reactive D. focused on past performance
2. Which of the following statements about leadership is false?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 t
C. Leaders support the status quo and seek control mechanisms to maintain it.
3. Effective leadership is like a three-legged stool. Which of the following is not represented by one of the stool legs?A. dedication to maintaining the status quoB. nurturing a culture dedicated to excellence and ethical behavior C. determining a dire
A. dedication to maintaining the status quo
4. A strategic vision provides many benefits. Which of the following is not one of those benefits?A. a clear future directionB. a framework for their organization mission and goalsC. enhanced employee communication and commitment D. diminished employee
D. diminished employee participation
5. Poor organizational design by leaders can result in all of the following exceptA. insufficient mechanisms that integrate and coordinate activities across the firm.B. inadequate accountability among managers and employees. C. inappropriate budgeting a
D. teams, systems, and organizational processes that facilitate implementation.
6. The CEO scraps the company commission-based reward system, because it rewards employees for inappropriate behavior. This is an example ofA. setting a direction.B. designing the organization.C. unethical behavior. D. failure to maintain the status qu
B. designing the organization.
7. Leaders play a key role in developing and sustaining organizationA. status quo.B. culture.C. reporting relationships. D. rules and regulations.
8. Alan Mulally took over Ford Motor Company in 2006 at a time when it was struggling, losing money, and market share. Under his leadership, the firm returned to high profitability. Which of the following is not one of the interdependent activities of lea
C. He nurtured a culture dedicated to profits at any cost.
9. According to Michael Williams, director of Entrepreneurship Activities and the Business and Entrepreneurship Clinic at the University of Wisconsin-Madison School of Business, effective leaders
A. surround; communicators
10. According to Michael Williams, director of Entrepreneurship Activities and the Business and Entrepreneurship Clinic at the University of Wisconsin-Madison School of Business, effective leaders must design an organization to achieve the direction they
D. creating core values that matter only to shareholders
11. Barriers in which the design of organization structure, information processing, and reporting relationships, impede the proper flow and evaluation of information are known asA. systemic barriers.B. behavioral barriers.C. political barriers. D. barr
12. Barriers associated with a managerial tendency to look at issues from a biased or limited perspective are known asA. systemic barriers.B. behavioral barriers.C. political barriers. D. barriers to exit.
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 barriersB. political barriers C. behavioral barriers
14. Which of the following does not explain why organizations are prone to inertia and slow to change?A. personal time constraintsB. political barriersC. vested interests in the status quo D. entry barriers
16. When faced with barriers to change, leaders can create a good climate for advancing the aims of the organization and making progress towards its goals by building _________and___________.A. a learning organization; an ethical organization B. a follow
A. a learning organization; an ethical organization
17. Which of the following does not constitute organizational bases of leader power?A. legitimate powerB. reward powerC. referent power D. coercive power
18. Expert powerA. is derived from organizationally conferred decision-making authority.B. arises from manager access, control, and distribution of information that is not freely available to everyone in an organization. C. is derived from referent powe
D. is derived from leader capability and knowledge in a particular field.
19. Coercive power is theA. power exercised by use of fear of punishment for errors of omission or commission by employees.B. power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates. C. type that arises from m
A. power exercised by use of fear of punishment for errors of omission or commission by employees.
20. The source of referent power isA. subordinate identification with the leader.B. leader 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. d
A. subordinate identification with the leader.
21. Which of the following is not a part of the three broad sets of capabilities that a leader should possess?A. technical skillsB. cognitive abilitiesC. physical abilities D. emotional intelligence
22. All of the following are components of emotional intelligence (EI) exceptA. self-awareness.B. self-regulation.C. self-promotion. D. empathy.
23. 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-awarenessB. empathyC. social skills D. self-regulation
24. Which two components of emotional intelligence (EI) deal with personal ability to manage relationships with others?A. motivation and self-awarenessB. self-regulation and empathyC. empathy and social skill D. motivation and empathy
C. empathy and social skill
25. According to research, effective leaders at all levels of organizations have high levels of Emotional Intelligence (EI). CEOs with high EI excel in all of the following exceptA. managing relationships.B. influencing people. C. forging alliances insi
D. ability to discourage outside stakeholders.
26. Leaders who are ________ show a passion for the work itself, such as seeking out creative challenges, a love of learning, and taking pride in a job well done.A. self-awareB. self-regulatorsC. socially skilled D. motivated
27. CEOs who are ______ tend to have a wide circle of acquaintances as well as a knack for finding common ground and building rapport.A. self-awareB. self-regulatorsC. motivated D. socially skilled
28. Which of the following social skills do many executives find challenging to acquire?A. having empathy for subordinatesB. being a good listenerC. being a good motivator D. having a large network in place
29. A drawback of EI is that a leader can find it easy to over-identify with others and confuse ______ with________.A. intelligence; empathyB. motivation; empathyC. empathy; sympathy D. motivation; intelligence
31. Which of the following is not a characteristic of a successful learning organization?A. It creates a proactive, creative approach to the unknown.B. It actively solicits the involvement of employees at all levels. C. It regularly engages in activitie
C. It regularly engages in activities to reinforce the status quo.
32. Inspiring and motivating people with a mission or purpose is a _______ for developing an organization that can learn and adapt.A. necessary and sufficient conditionB. necessary but not sufficient conditionC. goal but not a necessary condition D. go
B. necessary but not sufficient condition
33. In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that ofA. resource allocator.B. resource controller.C. a flexible resource. D. an advocator
34. When important decisions need to be made at WBG Construction, CEO Greg Burrill asks all employees with relevant knowledge or a stake in the outcome for their thoughts. This collaborative approach recently led to a decision that not only sold a house b
35. Functional benchmarkingA. 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 r
B. endeavors to determine best practices regardless of industry.
36. Which of the following is not a guideline an organization can use to promote the challenging of the status quo?A. establishing a culture of dissentB. forcefully creating a sense of urgencyC. fostering a culture that encourages risk taking D. creati
D. creating a results-based reward system
37. Companies that cultivate cultures of experimentation and curiosity make sure that _______ is not, in essence, to be avoided at all costs.A. experimentationB. failureC. authority D. risk taking
38. According to the CEO of Hanover Insurance, learning organizations require that everyone feels and supports a compelling purpose. What is the most difficult aspect of creating this learning organization?
A. Communicating an image of the future that draws people in and speaks to them
39. Research suggests that not all leadership development programs are equally effective. Which of the following is not a common trait shared in all successful development programs?A. The programs are designed to fit the company overall strategy. B. The
D. Managers and trainers only assess the impact of the training immediately upon completion.
40. Empowering individuals by soliciting their input helps an organization to enjoy better employeeA. retention.B. performance.C. morale. D. communication.
41. Effective learning organizations must redistribute _______, _______, and ______ in order to assure that there is a common body of knowledge.A. rewards; training; handbooksB. training; knowledge; pay raises C. knowledge; financial rewards; intangible
D. information; knowledge; rewards
42. 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 socia
C. Ethics is not concerned with whether or not an act is socially desirable.
43. As a manager, when faced with ethical crises you shouldA. 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.
C. take the initiative to address the problem.
44. Unethical business practices typically involve the ______ cooperation of others and reflect the values, attitudes, and behavior patterns that define the operating culture of the organization.A. selectB. completeC. explicit D. tacit
46. The chance of ethical crises occurring is enhanced ifA. the leader defines the corporate culture.B. the organization has a weak ethical culture.C. the shareholders have no confidence in the CEO. D. employees follow the direction of the leader.
B. the organization has a weak ethical culture.
47. Which of the following positive relationships is not supported with consistent results?A. between ethical performance and measures of financial performanceB. between ethical performance and strong organizational culture C. between ethical performanc
A. between ethical performance and measures of financial performance
48. Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the Duke Power of Indiana program called GoGreen Power. This is an example ofA. a benefit of an ethical organization. B. eco-friendly pr
49. A strong ethical orientation can have _________ on employee commitment and motivation to excel.A. mitigating resultsB. a positive effectC. a negative impact D. an expensive outcome
50. An ethically sound organization, drawing on the concepts of stakeholder management, can also strengthen its bonds among its ________, ________, and __________.A. policies; procedures; valuesB. values; organizational design; employees C. suppliers; c
C. suppliers; customers; governmental agencies
51. _______________ is rarely self-sustaining in an organization.A. High-integrityB. IntegrityC. Individual integrity D. Leader integrity
52. Creating an ethical framework and developing organizational capabilities to make it operational is the responsibility ofA. employees.B. shareholders.C. the law. D. leadership.
53. In the compliance-based approach to ethics management, the objective is toA. conform with externally imposed standards.B. prevent criminal misconduct.C. enable responsible conduct. D. reduce discretion, training, controls, audits, and penalties.
B. prevent criminal misconduct.
54. In the integrity-based approach to ethics management, the objective is toA. conform with externally imposed standards.B. prevent criminal misconduct.C. enable responsible conduct. D. reduce discretion, training, controls, audits, and penalties.
C. enable responsible conduct.
55. In the compliance-based approach to ethics management, the methods used includeA. education, leadership, accountability, decision processes, auditing, penalties.B. reduced discretion, training, controls, audits, penalties.C. self-governance. D. con
B. reduced discretion, training, controls, audits, penalties.
56. In the compliance-based approach to ethics management, leadership is driven byA. management, with input from functional staff.B. management, with input from shareholders.C. the legal office. D. the government.
57. In the integrity-based approach to management, ethics is the responsibility of theA. shareholders.B. outside stakeholders.C. management. D. employees.
58. Compliance-based ethic programs typically are designed byA. management.B. employees.C. shareholders. D. corporate counsel.
59. Texas Instruments teaches ethics to its employees. They include all levels of the organization in the exchange of knowledge and auditing of behaviors. This is a good example of a(n) ______ ethics program.A. compliance-basedB. integrity-based C. conf
61. Proactive measures to prevent organizational ethics problems do not includeA. instituting a reward system which considers outcomes as its primary criterion.B. using leaders as role models of ethical behavior. C. issuing statements describing organiz
A. instituting a reward system which considers outcomes as its primary criterion.
62. Which of the following statements would least likely be found in a corporate credo?A. Maximize financial benefits for stakeholders at any cost.B. Provide secure and stable employment for employees. C. Establish an environment that enhances professio
A. Maximize financial benefits for stakeholders at any cost.
63. A highly ethical organization must have all of the following elements exceptA. codes of conduct.B. corporate credos.C. payment plans. D. role models.
64. Leaders as good role models must walk the talk. This means they must be _______ in their words and actions.A. effectiveB. reliableC. consistent D. trust-worthy
65. The expression the dark side of competition means thatA. illegal behaviors result in penalties.B. unethical behaviors are more like to take place when competition is intense.C. competition encourages ethical behavior. D. good competition is costly.
B. unethical behaviors are more like to take place when competition is intense.
66. Which of the following are used to evaluate whether a manager is acting in an ethical manner?A. bonuses and penaltiesB. job descriptionsC. assessment and penalties D. reward and evaluation systems
D. reward and evaluation systems
67. Many situations that a firm faces have regular, identifiable patterns. Leaders tend to handle such routines by establishing ______ or _______ to be followed that can be applied ______ to each occurrence.A. rules; regulations; individually B. policies
C. a policy; a procedure; uniformly
68. While carefully developed policies and procedures guide behavior, they need to be reinforced with all of the following exceptA. effective communication.B. enforcement.C. monitoring. D. undefined corporate governance practices.
D. undefined corporate governance practices.
69. This legal act provides considerable legal protection to employees of publicly traded companies who report unethical or illegal practices.A. Taft-Hartley ActB. National Labor Relations ActC. Sarbanes-Oxley Act D. Norris-La Guardia Act |
A strong ethical orientation can have ________ on employee commitment and motivation to excel.
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