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Chapter 15 Leadership
1) Managerial ability, rather than leadership, is a prerequisite for organizational success.
Answer: False
Rationale:
While managerial ability is important for organizational success, leadership is equally crucial.
Leadership involves inspiring and guiding employees towards achieving a common goal,
which complements the managerial aspect of organizing and controlling resources to achieve
that goal. Both managerial ability and leadership are necessary for organizational success.
2) A manager makes sure the job gets done whereas a leader cares about and focuses on the
people who do the job.
Answer: True
Rationale:
This statement reflects the fundamental difference between management and leadership.
Managers are typically responsible for ensuring tasks are completed efficiently, while leaders
are more concerned with motivating and supporting their team members to achieve those
tasks. Effective leadership involves understanding and nurturing the individuals within the
team.
3) The trait approach to leadership proposes that leaders are made, not born.
Answer: False
Rationale:
The trait approach to leadership suggests that certain traits or characteristics are inherent to
effective leaders, such as intelligence, charisma, and confidence. This view implies that
leaders are born with these traits rather than developing them over time. However, it's worth
noting that contemporary leadership theories emphasize the development of leadership skills
through education, training, and experience, suggesting that leadership can be cultivated.
4) The OSU studies concluded that leaders exhibit two main types of behavior — structure
behavior and consideration behavior.
Answer: True

Rationale:
The Ohio State University (OSU) studies on leadership identified two broad dimensions of
leadership behavior: initiating structure (similar to task-oriented behavior) and consideration
(similar to relationship-oriented behavior). These dimensions describe how leaders interact
with their followers and are still relevant in understanding leadership behavior today.
5) Consideration behavior is any leadership activity that delineates the relationship between
the leader and the leader's followers.
Answer: False
Rationale:
Consideration behavior, as defined in the context of leadership, refers to the extent to which a
leader shows concern for the needs, feelings, and well-being of their followers. It is more
about building rapport and creating a supportive environment than delineating the
relationship itself.
6) Pygmalion effect is observed when the leaders display job-centered behavior rather than
being employee-centered.
Answer: False
Rationale:
The Pygmalion effect, also known as the self-fulfilling prophecy, occurs when people's
expectations of themselves or others lead to behaviors that make those expectations come
true. It is not directly related to whether leaders display job-centered or employee-centered
behavior.
7) The more the desire to succeed in followers, the more mature they are said to be.
Answer: True
Rationale:
According to Hersey and Blanchard's Situational Leadership Theory, follower maturity refers
to the extent to which followers are willing and able to take responsibility for directing their
own behavior. A high desire to succeed suggests a higher level of maturity, as these followers
are more motivated and capable of working independently.

8) An inexperienced man has just been hired as a salesperson in a men's clothing store.
According to the life cycle theory, a low-task/high-relationship style of leadership should be
maintained to effectively manage this person.
Answer: False
Rationale:
The life cycle theory, also known as the situational leadership theory, suggests that leadership
styles should vary based on the readiness or maturity of the followers. In this case, an
inexperienced salesperson would be considered low in maturity and would require a hightask/low-relationship style of leadership, focusing more on task direction and less on
relationship building.
9) Fiedler's contingency theory proposes that leaders should change their styles to match the
situation.
Answer: False
Rationale:
Fiedler's contingency theory suggests that effective leadership is contingent upon matching
the leader's style with the right situation. However, it does not advocate for leaders to
constantly change their styles. Instead, it emphasizes that leaders have a preferred style that is
more effective in certain situations and less effective in others.
10) Task structure is determined by the extent to which a leader has control over the rewards
and punishments followers receive.
Answer: False
Rationale:
Task structure, as defined in Fiedler's contingency theory, refers to the extent to which tasks
are clear and have well-defined goals and procedures. It is not directly related to the leader's
control over rewards and punishments, but rather the clarity and structure of the task itself.
11) A considerate leader would be more effective than a structuring leader when the leadermember relations are good, the task structure is weak, and the leader position power is weak.
Answer: True

Rationale:
According to Fiedler's contingency theory, in situations where leader-member relations are
good, task structure is weak, and leader position power is weak, a leader who is considerate
(relationship-oriented) would be more effective. This is because in such situations, building
trust and relationships with followers becomes crucial for achieving goals.
12) The path-goal theory of leadership suggests that the primary activity of a leader is to
make desirable and achievable rewards available to organization members who attain
organizational goals.
Answer: True
Rationale:
The path-goal theory of leadership focuses on how leaders motivate followers to achieve
goals. One of the key aspects of this theory is that leaders clarify the path to goal
achievement, remove obstacles, and provide rewards along the way to motivate followers.
Therefore, making desirable and achievable rewards available to those who attain
organizational goals is a primary activity of a leader according to this theory.
13) Supportive behavior of leaders is primarily aimed at seeking suggestions from followers
regarding business operations to the extent that followers are involved in making important
organizational decisions.
Answer: False
Rationale:
Supportive behavior, as defined in leadership theories, is more about providing
encouragement, showing concern for followers' well-being, and creating a positive work
environment. It is not primarily aimed at seeking suggestions or involving followers in
making important organizational decisions, which would fall more under participative or
democratic leadership styles.
14) According to Tannenbaum and Schmidt, managers who sell decisions can be called
subordinate-centered.
Answer: False
Rationale:

Tannenbaum and Schmidt's leadership continuum distinguishes between boss-centered and
subordinate-centered leadership styles based on the degree of authority retained by the
manager versus delegated to the subordinates. Managers who sell decisions are more likely to
fall under the boss-centered category, as they are still primarily making decisions themselves
rather than empowering subordinates to participate in decision-making.
15) A manager who permits the group to make decisions within prescribed limits appears at
the center of Tannenbaum and Schmidt leadership continuum and is considered moderately
democratic.
Answer: False
Rationale:
According to Tannenbaum and Schmidt's leadership continuum, a manager who permits the
group to make decisions within prescribed limits falls under the area of the continuum where
the manager retains moderate control but allows for some degree of participation from
subordinates. This is considered a more autocratic or boss-centered style, rather than being
moderately democratic.
16) The move from a boss-centered style to a subordinate-centered style means some loss of
certainty about how problems should be solved.
Answer: True
Rationale:
Moving from a boss-centered style, where the manager makes most or all decisions, to a
subordinate-centered style, where more decision-making authority is delegated to
subordinates, can result in a loss of certainty for the manager. This is because in a
subordinate-centered style, the manager relies more on the input and decisions of others,
which may introduce new perspectives and approaches to problem-solving that the manager
may not have considered.
17) The Vroom-Yetton-Jago Model is built on the premises that organizational decisions
should be of high quality and subordinates should accept and be committed to organizational
decisions that are made.
Answer: True

Rationale:
The Vroom-Yetton-Jago Model focuses on decision-making processes within organizations.
One of its key premises is that decisions should be of high quality, meaning they are wellthought-out and likely to lead to effective outcomes. Additionally, the model emphasizes the
importance of gaining acceptance and commitment from subordinates for the decisions that
are made, as this can impact their implementation and success.
18) In the AII decision style, presented in the VYJ model, manager and subordinates meet as
a group to discuss the situation, but the manager makes the decision.
Answer: False
Rationale:
In the Vroom-Yetton-Jago Model, the AII decision style (Autocratic II) involves the manager
gathering information from subordinates individually, but the decision is ultimately made by
the manager alone, without group discussion. The manager considers the input from
subordinates but retains the authority to make the final decision.
19) A major drawback of the VYJ model is that it cannot be used for determining when a
leader should use which decision style.
Answer: False
Rationale:
One of the strengths of the Vroom-Yetton-Jago Model is its systematic approach to helping
leaders determine which decision style to use in different situations. The model provides a
decision tree that guides leaders through a series of questions to determine the most
appropriate decision-making style based on factors such as the importance of the decision,
time constraints, and the level of subordinate input desired.
20) Moral courage is the strength to take actions that are consistent with moral beliefs despite
pressures, either inside or outside of the organization, to do otherwise.
Answer: True
Rationale:

Moral courage involves standing up for one's moral beliefs and principles, even in the face of
adversity or pressure to act in a different way. It requires strength and conviction to do what
is right, even when it may be easier or more comfortable to do otherwise.
21) The central theme of leadership is ________.
A) rational assessment and handling of business situations
B) ensuring that the organization produces high-quality products
C) the rational selection of goals and purposes
D) getting things accomplished through people
E) reducing the overall cost of the organization
Answer: D
Rationale:
The central theme of leadership is getting things accomplished through people. While aspects
like rational assessment and handling of business situations are important, the core of
leadership is the ability to inspire, motivate, and guide individuals and teams toward
achieving common goals.
22) Which of the following is a valid observation of management and leadership?
A) Leading is not a part of the influencing function.
B) Leading is synonymous with managing in most cases.
C) Leadership is considered a subset of management.
D) Leading is much broader in scope than managing.
E) Leading mainly emphasizes nonbehavioral issues.
Answer: C
Rationale:
Leadership is often considered a subset of management. While management involves
planning, organizing, staffing, and controlling, leadership focuses more on inspiring and
guiding individuals towards common goals. Effective management often requires effective
leadership skills.

23) Leading mainly emphasizes ________.
A) performance evaluation and control
B) organizational performance
C) organizational productivity
D) behavioral issues of employees
E) individual performances
Answer: D
Rationale:
Leading mainly emphasizes the behavioral issues of employees. Leadership involves
understanding and addressing the behaviors, motivations, and emotions of individuals and
teams to inspire them to achieve organizational goals.
24) Which of the following approaches to leadership views the personal characteristics of an
individual as the main determinants of how successful that individual could be as a leader?
A) behavioral approach
B) situational approach
C) characteristic approach
D) trait approach
E) follower approach
Answer: D
Rationale:
The trait approach to leadership views personal characteristics as the main determinants of
leadership success. It suggests that certain traits or qualities, such as intelligence, charisma,
and emotional stability, are inherent in successful leaders.
25) Which of the following statements is consistent with the trait approach to leadership?
A) Good leaders change their behaviors based on the situation.
B) Emotional maturity and stability are important characteristics of leaders.

C) Leaders should be reactive rather than proactive.
D) People who have the skill to participate socially become ineffective leaders.
E) Past achievements are not significant determinants of leadership.
Answer: B
Rationale:
The trait approach emphasizes the importance of personal characteristics, such as emotional
maturity and stability, in effective leadership. These traits are believed to contribute to a
leader's ability to inspire and influence others.
26) Carrie is the CEO of a leading electronics manufacturer. She bases her managerial
recruitments entirely on aspects such as the prospect's intelligence quotient, emotional
maturity, dependability, persistence, and the drive for continuing achievement. Which of the
following approaches to leadership does Carrie believe in?
A) behavioral
B) transformational
C) trait
D) entrepreneurial
E) employee-centered
Answer: C
Rationale:
Carrie believes in the trait approach to leadership, which focuses on identifying and selecting
individuals with specific traits or characteristics believed to be associated with effective
leadership.
27) Which of the following is a conclusion derived from the OSU studies on leadership?
A) Individual traits are crucial to leadership effectiveness.
B) Employee-centered leaders are more effective than job-centered leaders.
C) Leaders exhibit structured behavior and consideration behavior.

D) Leadership styles should be linked with various situations.
E) Followers progress from immaturity to maturity in their lifecycle.
Answer: C
Rationale:
The OSU studies concluded that leaders exhibit structured behavior (task-oriented) and
consideration behavior (relationship-oriented). This suggests that effective leaders balance
task-focused behaviors with relationship-building behaviors.
28) William Cooley is the manager of a professional football club. He bases his relationship
with the players on aspects such as friendship, mutual trust, respect, and warmth in the
relationship. Here, William is displaying a(n) ________.
A) intrinsic behavior
B) structured behavior
C) consideration behavior
D) externalist behavior
E) maturity-based behavior
Answer: C
Rationale:
William is displaying consideration behavior by focusing on building positive relationships
with his players. Consideration behavior emphasizes mutual respect, trust, and warmth in
leader-follower relationships.
29) According to the OSU studies, the behavior that reflects friendship, mutual trust, respect,
and warmth in the relationship between leader and follower is called ________.
A) internal behavior
B) central behavior
C) consideration behavior
D) structured behavior

E) unstructured behavior
Answer: C
Rationale:
According to the OSU studies, consideration behavior reflects friendship, mutual trust,
respect, and warmth in the relationship between a leader and a follower. This behavior is
crucial for building positive relationships and fostering a supportive work environment.
30) According to the Michigan studies, behavior that focuses primarily on the work a
subordinate is doing is known as ________.
A) employee-centered behavior
B) job-centered behavior
C) consideration behavior
D) structure behavior
E) subordinate-centered behavior
Answer: B
Rationale:
According to the Michigan studies, behavior that focuses primarily on the work a subordinate
is doing is known as job-centered behavior. This behavior emphasizes task completion and
efficiency in work processes.
31) As the manager of a department store, Joan focuses primarily on the work that each
employee at the store is doing and provides rewards purely based on performance. This
behavior is called ________.
A) subordinate-centered behavior
B) consideration behavior
C) structured behavior
D) job-centered behavior
E) employee-centered behavior

Answer: D
Rationale:
Joan's behavior aligns with job-centered behavior, which focuses on task accomplishment and
performance evaluation. This approach emphasizes efficiency and productivity in work
processes.
32) ________ is a phenomenon in which the more the leaders believe their subordinates can
achieve, the more the subordinates actually achieve.
A) Superleadership
B) Internal orientation
C) Pygmalion effect
D) Position power transformation
E) Motivational effect
Answer: C
Rationale:
The Pygmalion effect, also known as the self-fulfilling prophecy, occurs when individuals
perform better because of the higher expectations placed upon them. In leadership, this effect
suggests that leaders who have high expectations of their followers can positively influence
their performance.
33) Which of the following approaches to leadership suggests successful leadership requires a
unique combination of leaders, followers, and leadership circumstances?
A) the trait approach
B) the situational approach to leadership
C) transformational leadership
D) contingency approach
E) the behavioral approach
Answer: B

Rationale:
The situational approach to leadership suggests that successful leadership is contingent upon
the interaction between leaders, followers, and the specific leadership situation. It emphasizes
the need for leaders to adapt their style based on the circumstances and the maturity of their
followers.
34) According to the life cycle theory, the ability of followers to perform their jobs
independently, to assume additional responsibility, and to desire to achieve success is called
________.
A) maturity
B) authority
C) responsibility
D) accountability
E) flexibility
Answer: A
Rationale:
In the life cycle theory of leadership, maturity refers to the ability of followers to perform
their jobs independently, take on additional responsibilities, and have the desire to achieve
success. This concept is central to determining the appropriate leadership style.
35) The life cycle theory of leadership maintains that ________.
A) a manager's leadership style should be independent of the follower's maturity levels and
abilities
B) the organization should match individuals with specific leadership situations
C) a manager's leadership style will be effective only if it is appropriate for the maturity level
of the followers
D) leadership abilities of an individual increase as he gains experience and decrease after he
reaches the maturity level
E) as a manager gains experience, he should shift toward a participative style of leadership

Answer: C
Rationale:
The life cycle theory of leadership suggests that a manager's leadership style will be effective
only if it is appropriate for the maturity level of the followers. It emphasizes the need for
leaders to adjust their style based on the readiness and maturity of their followers.
36) Which of the following statements of a manager is consistent with the views expressed by
the life cycle theory?
A) Organizational productivity is more important to leadership than individual behaviors.
B) Managers must not use a directive style when making decisions concerning employees.
C) Situational approaches to leadership are more effective than behavioral approaches.
D) Leadership styles depend on the ability of followers to perform jobs independently.
E) Task behaviors and relationship behaviors of managers are independent of each other.
Answer: D
Rationale:
The statement "Leadership styles depend on the ability of followers to perform jobs
independently" aligns with the views of the life cycle theory, which emphasizes that
leadership styles should be adjusted based on the maturity and readiness of followers.
37) When most individuals join an organization, they are unable to solve task-related
problems independently. According to the life cycle theory, which of the following is the
appropriate leadership style for these individuals?
A) low task and low relationship
B) low task and high relationship
C) high task and high relationship
D) high task and low relationship
E) moderate task and relationship behavior
Answer: D

Rationale:
According to the life cycle theory, when individuals are unable to solve task-related problems
independently, the appropriate leadership style is high task (directive) and low relationship
(less emphasis on personal relationships).
38) Situational theories of leadership, except for Fiedler's theory, are all based upon the
concept of ________.
A) leader flexibility
B) follower readiness
C) skills and abilities of managers
D) specific follower skills
E) leader-member relationships
Answer: A
Rationale:
Situational theories of leadership, except for Fiedler's theory, are based on the concept of
leader flexibility. These theories suggest that effective leadership requires leaders to adjust
their style based on the situational demands and the readiness of their followers.
39) ________ theory hypothesizes that in any given leadership situation, success is
determined primarily by: (1) the degree to which the task performed by the followers is
structured, (2) the degree of position power possessed by the leader, and (3) the type of
relationship between the leader and the followers.
A) Path-goal
B) Transformational leadership
C) Superleadership
D) Fiedler's Contingency
E) Life cycle
Answer: D
Rationale:

Fiedler's Contingency Theory hypothesizes that in any given leadership situation, success is
primarily determined by the degree of task structure, the leader's position power, and the
leader-follower relationship.
40) According to Fiedler's contingency theory of leadership, which of the following is a
primary factor that should be considered when moving leaders into situations appropriate for
their leadership styles?
A) participative behavior
B) analytic skills of managers
C) past performances
D) task structure
E) emotional intelligence
Answer: D
Rationale:
According to Fiedler's contingency theory, one of the primary factors to consider when
moving leaders into situations appropriate for their leadership styles is task structure. Task
structure refers to the degree to which tasks are clearly defined and structured. Leaders with a
task-oriented style are more effective in highly structured tasks.
41) According to the contingency theory of leadership, the degree to which the goals and
other situational factors are outlined clearly is called ________.
A) organizational power
B) task structure
C) internal configuration
D) independence
E) position power
Answer: B
Rationale:

In the contingency theory of leadership, task structure refers to the degree to which goals,
procedures, and other situational factors are clearly defined. A high degree of task structure
indicates that goals and procedures are well-defined, making it easier for leaders to determine
the appropriate leadership style.
42) According to the contingency theory of leadership, the extent to which the leader has
control over the rewards and punishments received by followers is known as ________.
A) leader-member relations
B) position power
C) task structure
D) power distance
E) motivational structure
Answer: B
Rationale:
Position power in the contingency theory of leadership refers to the extent to which a leader
has control over rewards and punishments. Leaders with high position power have more
control over rewards and punishments, which can influence their leadership effectiveness.
43) A permissive, passive, and considerate leadership is most appropriate if the leadership
situation is characterized by ________.
A) good member relations, weak task structure, and weak leader position power
B) good member relations, weak task structure, and strong leader position power
C) moderately poor member relations, weak task structure, and weak leader position power
D) good member relations, high task structure, and weak leader position power
E) good member relations, high task structure, and strong leader position power
Answer: A
Rationale:
In a situation characterized by good member relations, weak task structure, and weak leader
position power, a permissive, passive, and considerate leadership style may be most

appropriate. This style focuses on maintaining positive relationships with followers and
allows for more freedom and autonomy in task completion.
44) Which of the following is a disadvantage of Fiedler's contingency model of leadership?
A) The model is not suitable to decide leadership style if the task structure is weak.
B) The model may not provide concrete answers to leadership problems.
C) It does not emphasize the importance of situational variables.
D) Leadership behaviors are not considered in this model.
E) Leader-member relations are ignored when selecting a suitable style of leadership.
Answer: B
Rationale:
One disadvantage of Fiedler's contingency model is that it may not provide concrete answers
to leadership problems. The model's reliance on factors like task structure, leader-member
relations, and position power can make it complex and difficult to apply in real-world
situations.
45) Which of the following statements is most closely associated with the concepts of the
path-goal theory of leadership?
A) Achievement of organizational goals is more important than the paths used to achieve
them.
B) Managers must set the goals for performance and allow employees to select the path they
use to achieve the goal.
C) Directive behavior is not appropriate when precise performance goals and procedures
exist.
D) Effective leaders are characterized by a high degree of acceptance and low taskorientation.
E) Managers can help job performance by showing employees how their performance
directly affects the reception of rewards.
Answer: E

Rationale:
The path-goal theory of leadership emphasizes the role of leaders in clearing paths for their
followers to achieve their goals. This includes setting challenging goals and demonstrating
confidence in followers' abilities to achieve them, which is reflected in the statement about
how managers can help job performance by showing employees how their performance
directly affects the reception of rewards.
46) ________ behavior is aimed at telling followers what to do and how to do it.
A) Supportive
B) Directive
C) Accommodating
D) Participative
E) Achievement
Answer: B
Rationale:
Directive behavior involves giving specific instructions and guidance to followers on what to
do and how to do it. This style is effective in situations where tasks are unclear or complex.
47) Buildtech is a small-scale manufacturer of lightweight building panels. Ruth Wallace, the
CEO of the company, leads the organization by clearly telling employees what to do and how
to do it. Here, Ruth is exhibiting a(n) ________.
A) achievement behavior
B) accommodating behavior
C) directive behavior
D) participative behavior
E) supportive behavior
Answer: C
Rationale:

Ruth is exhibiting directive behavior by clearly telling employees what to do and how to do
it. This style of leadership is characterized by giving specific instructions and guidance to
followers.
48) Derek Bonnell is the editor of a leading magazine. He rarely exerts positional powers and
remains friendly with his subordinates. He also takes care to accommodate the personal needs
of his subordinates as far as possible. Derek is a(n) ________.
A) supportive leader
B) accommodating leader
C) participative leader
D) directive leader
E) achievement-oriented leader
Answer: A
Rationale:
Derek is a supportive leader who focuses on maintaining positive relationships with his
subordinates and accommodating their personal needs. Supportive leaders tend to be friendly
and empathetic towards their followers.
49) Which of the following types of behavior is a leader engaging in when he sets
challenging goals for followers to reach and demonstrates confidence that they will measure
up to the challenge?
A) supportive
B) accommodating
C) directive
D) participative
E) achievement
Answer: E
Rationale:

The leader is engaging in achievement behavior by setting challenging goals for followers
and demonstrating confidence in their ability to achieve them. Achievement-oriented leaders
focus on setting high standards and challenging goals for their followers.
50) Which of the following leadership facets is highlighted in the Tannenbaum and Schmidt
Leadership Continuum?
A) employee motivation
B) communication
C) workforce controlling
D) decision making
E) employee training
Answer: D
Rationale:
The Tannenbaum and Schmidt Leadership Continuum highlights decision-making as a key
leadership facet. It emphasizes the importance of leaders' decision-making styles and their
impact on followers and organizational outcomes.
51) According to Tannenbaum and Schmidt, one extreme of the continuum is boss-centered
leadership where ________.
A) the manager presents tentative decisions as subject to change
B) the manager sells decisions to subordinates
C) the manager defines limits and asks the group to make the decision
D) the manager presents ideas and invites questions
E) the manager makes the decision and announces it to the subordinates
Answer: E
Rationale:
Boss-centered leadership, as described by Tannenbaum and Schmidt, is characterized by the
manager making the decision and announcing it to the subordinates without much input or

involvement from them. This style reflects a high level of control and authority by the
manager.
52) A manager who has the tendency to "sell" his or her decisions is most likely to ________.
A) be on the right-hand side of the Tannenbaum and Schmidt Leadership Continuum
B) remain a follower-friendly and popular leader
C) give up his authority to increase effectiveness
D) identify the problem and make decisions independently
E) seek the opinion of employees before implementing decisions
Answer: D
Rationale:
A manager who has the tendency to "sell" his or her decisions is likely to be more directive
and authoritative in decision-making, which aligns with being on the right-hand side of the
Tannenbaum and Schmidt Leadership Continuum. This style involves the manager
identifying the problem and making decisions independently.
53) Which of the following leadership aspects would be most significant when choosing the
manager based on the Tannenbaum and Schmidt Leadership Continuum?
A) employee motivation
B) communication
C) workforce controlling
D) decision making
E) employee training
Answer: D
Rationale:
Decision making would be the most significant leadership aspect when choosing a manager
based on the Tannenbaum and Schmidt Leadership Continuum. The continuum emphasizes
different decision-making styles and their impact on leadership effectiveness.

54) Albert decides to select a person who is likely to show the highest degree of subordinatecentered leadership behavior. Which of the following descriptions of a candidate's previous
leadership experience supports this style of leadership?
A) The candidate allows subordinates to function independently within defined limits.
B) The candidate seeks the opinion of the subordinates before making an important decision.
C) The candidate conducts a poll after making a decision to evaluate the decision's
effectiveness.
D) The candidate is in the habit of presenting a tentative decision that is subject to change
based on the opinions of the subordinates.
E) The candidate usually suggests ideas to the group and invites questions and opinions from
the followers.
Answer: A
Rationale:
Subordinate-centered leadership involves allowing subordinates to function independently
within defined limits. This style emphasizes empowering and trusting subordinates to make
decisions within set boundaries.
55) A manager displays the highest degree of subordinate-centered leadership when he or she
________.
A) permits subordinates to function within limits defined by superior
B) defines the limits and asks the group to make decisions
C) presents a problem and gets suggestions from subordinates before making decisions
D) presents a tentative decision subject to change based on follower opinions
E) suggests ideas and invites questions from the followers
Answer: A
Rationale:

Subordinate-centered leadership involves allowing subordinates to function within limits
defined by the superior. This style of leadership emphasizes giving subordinates autonomy
and decision-making authority within specified boundaries.
56) Which of the following is the most important force within managers that influences their
determination of how to make decisions as a leader?
A) nature of the task
B) sense of group effectiveness
C) tolerance for ambiguity
D) support from followers
E) interpersonal skills
Answer: C
Rationale:
Tolerance for ambiguity is the most important force within managers that influences their
determination of how to make decisions as a leader. Managers with a low tolerance for
ambiguity may prefer more directive and autocratic decision-making styles, while those with
a high tolerance may prefer more participative styles.
57) Some employees crave a greater degree of freedom in working. These employees are
most likely to have ________.
A) low interest in problem solving
B) high emotional intelligence
C) moderate intellectual capabilities
D) high tolerance for ambiguity
E) high level of structured behavior
Answer: D
Rationale:

Employees who crave a greater degree of freedom in working are most likely to have a high
tolerance for ambiguity. They are comfortable with uncertainty and are more likely to thrive
in environments where they have autonomy and independence.
58) Managers must assume an autocratic or boss-centered approach to making decisions
when subordinates are characterized by ________.
A) high tolerance for ambiguity
B) high need for independence
C) moderate intellectual capabilities
D) low levels of aggression
E) low level of job experience
Answer: E
Rationale:
Managers must assume an autocratic or boss-centered approach to making decisions when
subordinates are characterized by a low level of job experience. Inexperienced employees
may require more guidance and direction from their managers.
59) If the time available to come to a decision on a problem is very limited, it is most likely
that ________.
A) the manager will leave the subordinates to make the decision
B) the skills of the subordinates will be effectively used
C) the level of confidence the manager has in followers will be high
D) the skills of the manager as a decision maker will play a secondary role
E) the manager will take a boss-centered approach to leadership
Answer: E
Rationale:
If the time available to come to a decision on a problem is very limited, the manager is most
likely to take a boss-centered approach to leadership. This involves the manager making the
decision without much input or involvement from subordinates.

60) Five styles of decision making, ranging from autocratic to consultative, are identified in
the ________.
A) Fiedler's Contingency Theory
B) Hersey-Blanchard Model
C) path-goal leadership model
D) Vroom-Yetton-Jago Model
E) trait theory of leadership
Answer: D
Rationale:
The Vroom-Yetton-Jago Model identifies five styles of decision making, ranging from
autocratic to consultative. This model emphasizes the importance of decision-making styles
and their impact on leadership effectiveness.
61) In which of the following decision styles described in the VYJ model are the subordinates
made aware of the problem, expected to provide information to the manager, but do not meet
as a group?
A) AI
B) AII
C) CI
D) CII
E) GII
Answer: C
Rationale:
In the Vroom-Yetton-Jago (VYJ) model, the CI style involves the manager gathering
information from subordinates individually but not meeting as a group. The manager makes
the decision alone based on the information provided.
62) A manager adopts the GII style of decision making. He or she would ________.

A) meet with the group to discuss the situation and allow the group to make decisions
B) make organizational decisions alone, without consulting followers
C) ask for information from subordinates but make the decisions alone
D) meet with the followers to discuss the situation, but make the decision alone
E) share the situation with subordinates and ask for information before making the decision
Answer: A
Rationale:
The GII style in the VYJ model involves the manager meeting with the group to discuss the
situation and allow the group to make decisions collectively.
63) Bryan is the production manager of a small company that manufactures printed circuit
boards. Prior to making a decision, Bryan usually asks for information from his subordinates.
However, his subordinates are not always informed about the problem at hand. Which of the
following VYJ model decision-making styles does Bryan use?
A) AI
B) AII
C) GII
D) CI
E) CII
Answer: B
Rationale:
Bryan uses the AII style in the VYJ model, where the manager gathers information from
subordinates individually and then makes the decision alone.
64) Keith is the leader of a project team designated to design new products for a firm. He
conducts group meetings and discussions regularly so that all team members are aware of the
work progress. Keith ensures that all members participate in the meetings and that all the key
decisions regarding product design are made by the team. According to the VYJ model,
Keith's style of leadership can be classified as ________.

A) GII
B) CI
C) AI
D) CII
E) AII
Answer: A
Rationale:
Keith's style of leadership aligns with the GII style in the VYJ model, where the group meets
to discuss the situation and make decisions collectively.
65) The Vroom-Yetton-Jago model is a method for determining ________.
A) when a leader should use which decision style
B) interpersonal dynamics of organizational leaders
C) the motivational appeals necessary to motivate followers
D) leadership traits and motivation of individuals
E) the effectiveness of leaders in various situations
Answer: A
Rationale:
The Vroom-Yetton-Jago model provides a systematic approach for determining which
decision-making style a leader should use based on the situational factors and the level of
follower involvement desired.
66) Transformational leadership ________.
A) proposes leaders match their style with the maturity levels of their followers
B) proposes that all good leaders possess a set of identifiable traits which are highly desirable
C) is characterized by a charismatic leader who considers the employees' opinion though he
or she makes the decisions alone

D) inspires organizational success by affecting followers' beliefs in what an organization
should be as well as their values
E) shares the view that leaders' major job is to make decisions that help the organization grow
as an independent entity
Answer: D
Rationale:
Transformational leadership is characterized by leaders who inspire and motivate followers
by affecting their beliefs, values, and ideals. These leaders focus on the long-term
development of their followers and the organization.
67) Under which of the following leadership theories does the leader inspire organizational
success by profoundly affecting followers' beliefs in what an organization should be, as well
as their values, such as justice and integrity?
A) situational leadership
B) path-goal leadership
C) transformational leadership
D) entrepreneurial leadership
E) superleadership
Answer: C
Rationale:
Transformational leadership is the theory under which leaders inspire organizational success
by profoundly affecting followers' beliefs in what an organization should be, as well as their
values.
68) Leaders who identify inappropriate behavior in followers and suggest how they might
correct that behavior fall into the category of ________.
A) transformational leaders
B) coaching leaders
C) superleaders

D) entrepreneurial leaders
E) path-goal leaders
Answer: B
Rationale:
Coaching leaders focus on identifying and correcting inappropriate behavior in followers by
providing guidance and support. They help followers develop their skills and abilities.
69) Lisa Lewis is the leader of a small research team formed to study the internal operations
of a company. She instructs the team members on how to collect and analyze the data. Lisa is
an expert on statistics and the team members are free to approach her for technical help
whenever needed. She is also careful to note any inappropriate behavior that may occur in the
team and takes immediate measures to guide the person concerned. Lisa can be called a(n)
________.
A) superleader
B) transformational leader
C) entrepreneurial leader
D) coaching leader
E) positional leader
Answer: D
Rationale:
Lisa's leadership style aligns with that of a coaching leader, as she provides guidance,
support, and correction when needed to help her team members improve their performance
and behavior.
70) Which of the following is a characteristic of an effective coach?
A) hard headed
B) does not listen
C) acts as a dictator
D) concern for welfare of people

E) impatient
Answer: D
Rationale:
An effective coach demonstrates a concern for the welfare of people by providing support,
guidance, and feedback to help them improve. They are empathetic, understanding, and
patient with their followers.
71) Which of the following is NOT a characteristic of an effective coach?
A) empathy
B) diplomacy and tact
C) competitiveness with team members
D) self-confidence and emotional stability
E) enthusiasm for people
Answer: C
Rationale:
An effective coach is empathetic, diplomatic, and tactful, displaying self-confidence,
emotional stability, and enthusiasm for people. Competitiveness with team members is not a
characteristic associated with effective coaching, as coaching emphasizes collaboration and
support rather than competition.
72) Which of the following characteristics is more closely associated with an emerging leader
than a manager?
A) independence
B) persistence
C) analytical skills
D) problem-solving ability
E) tough-mindedness
Answer: A

Rationale:
Independence is more closely associated with an emerging leader, as they may be more
focused on forging their path and establishing their identity within a leadership role, whereas
managers often work within established structures and frameworks.
73) Peter is the sales manager of an insurance company. He believes his primary job is to help
his subordinates perform better in order to raise company profits. He considers his personal
needs, aspirations, and interests as secondary to helping his subordinates improve. Peter can
be considered a(n) ________.
A) superleader
B) collaborative leader
C) high-consideration leader
D) emotionally intelligent leader
E) servant leader
Answer: E
Rationale:
Peter's focus on helping his subordinates perform better and prioritizing their needs over his
own aligns with the characteristics of a servant leader, who places a high value on serving
others and prioritizing the well-being of their team members.
74) A leader who places high value on helping others over self interests is called a(n)
________.
A) emotionally intelligent leader
B) servant leader
C) collaborative leader
D) high-consideration leader
E) superleader
Answer: B
Rationale:

A servant leader places a high value on helping others and prioritizes the needs and wellbeing of their team members over their self-interests.
75) Which of the following statements is most closely associated with the servant leadership
style?
A) Leaders' primary job is encouraging people to eliminate negative thoughts about the
company.
B) Leaders must instruct followers on how to meet the special organizational challenges they
face.
C) A leader's main responsibility is the care of human resources of the organization.
D) The basic purpose of leadership is leading by showing others how to lead themselves.
E) Leaders should be authoritative when an organization is facing conflicts.
Answer: C
Rationale:
The statement that a leader's main responsibility is the care of human resources of the
organization is most closely associated with the servant leadership style, which emphasizes
serving others and prioritizing the well-being of team members.
76) Which of the following is a critical characteristic of servant leaders?
A) transformation
B) persistence
C) superior attitudes
D) good listening
E) inaccurate information
Answer: D
Rationale:
Good listening is a critical characteristic of servant leaders, as they prioritize understanding
the needs and concerns of their team members and strive to support them effectively.

77) An organization urges its managers to blend personal humility with an intense will to
build long-term success of the company. Which of the following classifications is best suited
to describe this leadership approach?
A) transformational leadership
B) mentoring leadership
C) entrepreneurial leadership
D) coaching leadership
E) Level 5 leadership
Answer: E
Rationale:
Level 5 leadership, characterized by a blend of personal humility and a fierce resolve to build
long-term success, best describes this leadership approach. Level 5 leaders are known for
their humility and their focus on organizational success over personal ego.
78) An organization considers its managers to have moral courage. The managers at this
organization can be considered ________.
A) transformational leaders
B) servant leaders
C) Level 5 leaders
D) authentic leaders
E) coaching leaders
Answer: D
Rationale:
Authentic leaders are known for their moral courage and integrity. They are committed to
their values and principles, inspiring trust and confidence in their followers.
79) Which of the following statements is true regarding transformational leadership, coaching
leadership, authentic leadership, and Level 5 leadership?

A) These styles can be combined to generate a unique style of leadership.
B) These styles are considered mutually exclusive.
C) Transformational leadership is the best form of leadership.
D) Entrepreneurial leadership is considered a better style than the other three styles.
E) Superleadership is a form of entrepreneurial leadership.
Answer: A
Rationale:
These leadership styles are not mutually exclusive and can be combined to create a unique
approach to leadership. Each style brings different strengths and focuses, and leaders may
incorporate elements of multiple styles based on their personal style and the needs of the
situation.
80) Explain the difference between a leader and a manager.
Answer: Leading is not the same as managing. Although some managers are leaders and
some leaders are managers, leading and managing are not identical activities. Leadership, as
one of the four primary activities of the influencing function, is a subset of management.
Managing is much broader in scope than leading and focuses on nonbehavioral as well as
behavioral issues. Leading emphasizes mainly behavioral issues. Merely possessing
management skill is no longer sufficient for success as an executive in the business world. A
manager makes sure a job gets done and a leader cares about and focuses on the people who
do the job.
81) The trait approach to leadership assumes a good leader is born, not made. Do you agree
with this view? Explain your answer.
Answer: Leadership ability cannot be fully explained by an individual's traits or inherited
characteristics. Leadership effectiveness depends on a variety of other factors such as
situation and follower behavior. Some contemporary thinkers believe that individuals can be
trained to be good leaders. However, students may argue that certain traits such as honesty,
integrity, and intelligence are essential to successful leadership. Student answers will vary
due to the nature of this question.
82) Explain the major findings of the OSU studies.

Answer: The OSU studies concluded that leaders exhibit two main types of behavior.
Structure behavior is any leadership activity that delineates the relationship between the
leader and the leader's followers or establishes well-defined procedures followers should
adhere to in performing their jobs. Structure behavior can be useful to leaders as a means of
minimizing follower activity that does not significantly contribute to organizational goal
attainment.
Consideration behavior is leadership behavior that reflects friendship, mutual trust, respect,
and warmth in the relationship between leader and followers. This type of behavior generally
aims to develop and maintain a good human relationship between the leader and the
followers. The OSU studies resulted in a model that depicts four fundamental leadership
styles. A leadership style is the behavior a leader exhibits while guiding organization
members in appropriate directions. The four styles are 1. low structure, high consideration
2. high structure, high consideration
3. low structure, low consideration
4. high structure, low consideration
83) Compare and contrast the life cycle theory of leadership with Fiedler's model.
Answer: The Life Cycle Theory of Leadership essentially states that managers' leadership
styles should reflect the maturity level, leader task behavior, and leadership relationship
behavior of the followers. Maturity is defined as the ability of followers to do the job
independently, to assume additional responsibilities, and to desire to achieve success. This
theory obviously assumes leaders actually have leader flexibility, which is the ability to
change leadership styles as required. Fiedler, on the other hand, says it may be difficult for
leaders to actually effectively change their style of leadership. In fact, he proposes it might be
easier to shift leaders to situations appropriate for their leadership style rather than expecting
them to change their styles.
84) According to Fiedler's contingency theory of leadership, what are the primary factors that
should be considered when moving leaders into situations appropriate for their leadership
styles? Briefly describe the factors.

Answer: According to Fiedler's contingency theory of leadership, leader-member relations,
task structure, and the position power of the leader are the three primary factors that should
be considered when moving leaders into situations appropriate for their leadership styles.
(1) Leader-member relations are the degree to which the leader feels accepted by the
followers.
(2) Task structure is the degree to which the goals — the work to be done — and other
situational factors are outlined clearly.
(3) Position power is determined by the extent to which the leader has control over the
rewards and punishments followers receive.
85) What is the central theme of the path-goal theory of leadership? What kinds of leadership
behavior does it describe? Give an example of a situation in which a manager uses this model
to decide how to act with a particular subordinate.
Answer: The path-goal theory of leadership is a contingency model that suggests that the
activities of a leader should be to make desirable and achievable rewards available to
organizational members who achieve organizational goals, and to clarify what subordinates
must do to obtain those goals. It describes four styles: Directive (telling); supportive (being
friendly); participative (getting input); and achievement (setting challenging goals). Example:
if a subordinate is inexperienced and does not have a good understanding of his/her job, a
manager should use more directive behavior to help the subordinate understand the job.
86) What are the major forces in a situation that influence a manager's determination of how
to make decisions? Explain briefly.
Answer: Organizational factors, including the size of working groups and their geographic
distribution, are important influences on leadership style. Extremely large work groups or
wide geographic separations of work groups, for example, could make a subordinate-centered
leadership style impractical.
The second situational force is the effectiveness of a group. To gauge this force, managers
should evaluate such issues as the experience of group members in working together and the
degree of confidence they have in their ability to solve problems as a group.
The third situational force is the problem to be solved. Before deciding to act as a
subordinate-centered leader, a manager should be sure the group has the expertise necessary

to make a decision about the problem in question. If it does not, the manager should move
toward more boss-centered leadership.
The fourth situational force is the time available to make a decision. As a general guideline,
the less time available, the more impractical it is to assign decision making to a group
because a group typically takes more time than an individual to reach a decision.
87) Explain how leaders behave and make decisions using the 7 concepts of Tannenbaum and
Schmidt Leadership Continuum.
Answer:
1. The manager makes the decision and announces it. This behavior is characterized by the
manager (a) identifying a problem, (b) analyzing various alternatives available to solve it, (c)
choosing the alternative that will be used to solve it, and (d) requiring followers to implement
the chosen alternative. The manager may or may not use coercion, but the followers have no
opportunity to participate directly in the decision-making process.
2. The manager "sells" the decision. The manager identifies the problem and independently
arrives at a decision. Rather than announce the decision to subordinates for implementation,
however, the manager tries to persuade subordinates to accept the decision.
3. The manager presents ideas and invites questions. Here, the manager makes the decision
and attempts to gain acceptance through persuasion. One additional step is taken, however:
Subordinates are invited to ask questions about the decision.
4. The manager presents a tentative decision that is subject to change The manager allows
subordinates to have some part in the decision-making process but retains the responsibility
for identifying and diagnosing the problem. The manager then arrives at a tentative decision
that is subject to change on the basis of subordinate input. The final decision is made by the
manager.
5. The manager presents the problem, gets suggestions, and then makes the decision. This
leadership activity is the first of those described thus far that allows subordinates the
opportunity to offer problem solutions before the manager does. The manager, however, is
still the one who identifies the problem.
6. The manager defines the limits and asks the group to make a decision. In this type of
leadership behavior, the manager first defines the problem and sets the boundaries within

which a decision must be made. The manager then enters into partnership with subordinates
to arrive at an appropriate decision. The danger here is that if the group of subordinates does
not perceive that the manager genuinely desires a serious group decision-making effort, it
will tend to arrive at conclusions that reflect what it thinks the manager wants rather than
what the group actually wants and believes is feasible.
7. The manager permits the group to make decisions within prescribed limits. Here, the
manager becomes an equal member of a problem-solving group. The entire group identifies
and assesses the problem, develops possible solutions, and chooses an alternative to be
implemented. Everyone within the group understands the group's decision will be
implemented.
88) Explain the Vroom-Yetton-Jago model of leadership.
Answer: The Vroom-Yetton-Jago Model focuses on how much participation to allow
subordinates in the decision-making process in order to obtain optimum results. The model
suggests there are five different decision styles, or ways leaders can make decisions. These
range from autocratic to consultative to group-focused leader behavior. In order to determine
which style is appropriate in a specific situation, the leaders ask a series of eight questions
about the situation and follow a structured decision tree to determine the appropriate style.
Although it is a complex model to apply in real life, managers have experienced some
success in doing so.
89) Briefly explain and discuss the five leadership styles in organizations and those that are
emerging.
Answer: The first emerging style is that of the transformational leader. A transformational
leader inspires organizational success by profoundly affecting followers' beliefs in what an
organization should be, as well as their values. The transformational leader must raise
followers' awareness of organizational issues (and their consequences), and build and
communicate a vision for the organization.
The coaching approach involves instructing followers how to meet the special organizational
challenges they face. With increasing use of teams in the workplace today, coaching is
becoming more popular.
Servant leadership is an approach to leading in which leaders view their primary role as
helping followers in their quests to satisfy personal needs, aspirations, and interests. Servant

leaders see pursuit of their own personal needs, aspirations, and interests as secondary to the
followers' pursuit of these factors. They place high value on service to others over selfinterests and see their main responsibility as the care of human resources of the organizations.
Level 5 is an approach to leadership that blends personal humility with an intense will to
build long-range organizational success. They have a tendency to give credit to others when
things go right, and blame themselves when things go wrong.
The final emerging leadership style is authentic leadership. This is based on the attitude that
leaders are deeply aware of their own and others' moral perspectives and who are confident,
hopeful, optimistic, resilient, and of high moral character. Authentic leaders are clear on their
personal moral beliefs and values, make them known to others, and use them as the basis for
action. They have moral courage which enables leaders to stand up for their moral beliefs,
disregard pressures to do otherwise, and take action consistent with them.

Test Bank for Modern Management: Concepts and Skills
Samuel C. Certo, S. Trevis Certo
9780133059922, 9780133254105, 9780135983546

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