CH-9 Leadership and Decision Making – Business Essentials US Edition : Exam Guide

Chapter 9 Leadership and Decision Making 1. Management is defined as the processes and behaviors used to motivate, inspire, and influence the behaviors of others. Answer: False Explanation: This describes leadership. Management is the planning, organizing, leading, and controlling of an organization or a team of people. 2. Management is concerned more with planning and organizing than with agenda setting and inspiring. Answer: True Explanation: Agenda setting and inspiring relate centrally to leadership. 3. The trait approach to the study of leadership did not initially yield many practical results other than long lists of potential leadership attributes. Answer: True Explanation: The trait approach to the study of leadership gives attributes that a successful leader will have. 4. The behavioral approach to the study of leadership emphasized the actions taken by an effective leader rather than any specific traits. Answer: True Explanation: The behavioral approach to leadership identifies specific types of actions that an effective leader will take. 5. Transformational leadership involves managing change. Answer: True Explanation: Transformational leadership is exercised in situations involving change. 6. Taking over a leadership role from a charismatic leader is less challenging than taking over from a leader lacking charisma. Answer: False Explanation: Taking over a leadership role from a charismatic leader is more challenging since one must be at least as charismatic as the leader being replaced. 7. Leadership substitutes may make leadership unnecessary or irrelevant. Answer: True Explanation: Leadership substitutes are factors that are present that already fill leadership needs. 8. Leadership neutralizers tend to outweigh a leader's ability to affect a subordinate's performance. Answer: True Explanation: Leadership neutralizers are factors that detract from a leader's ability to lead. 9. A coaching role may include taking on responsibilities as a mentor. Answer: True Explanation: Coaches often act as mentors to other employees. 10. Strategic leadership relates leadership to the role of top management. Answer: True Explanation: Top management is in charge of making strategic leadership decisions affecting an entire company. 11. Alice has chosen one alternative from among several options; she has just engaged in decision making. Answer: True Explanation: Choosing from several options is decision making. 12. The more important the decision, the more attention needs to be directed to developing alternatives. Answer: True Explanation: No one option should be dwelt upon exclusively when making important decisions. 13. Ethical norms, managerial authority, and available technology may all constrain decision making. Answer: True Explanation: Ethical norms, managerial authority, and available technology may all constrain decision making. 14. Escalation of commitment is the extent to which a decision maker is willing to gamble when making a decision. Answer: False Explanation: Escalation of commitment is the extent to which a decision maker has begun to pursue one option. 15. The organization's culture is a prime ingredient in fostering different levels of risk propensity. Answer: True Explanation: Organizational cultures may vary in the amount of risk they are willing to tolerate. 16. All managers are leaders but not all leaders are managers. Answer: False Explanation: Being a manager does not ensure that a person is also a leader; any given manager may or may not also be a leader. 17. The behavioral approach to the study of leadership identified two main areas of effective leadership behavior: trait-focused behavior and goal-focused behavior. Answer: False Explanation: The two main areas of effective leadership identified by the behavioral approach are task-focused behavior and employee-focused behavior. 18. The behavioral approach to leadership assumes that appropriate leader behavior varies from one situation to another. Answer: False Explanation: The situational approach, not the behavioral approach, assumes that appropriate leader behavior varies from one situation to another. 19. The situational approach to leadership is concerned with the contingent outcomes and consequences of leader behavior rather than universal outcomes and consequences. Answer: True Explanation: The situational approach to leadership assumes that appropriate leader behavior varies from one situation to another. 20. The situational approach to leadership gives equal weight to the elements of the situation and the characteristics of the leader and followers in order to ascertain the outcomes of a leader's actions. Answer: True Explanation: The situational approach to leadership takes full account of the various factors that determine a situation. 21. Rigid rules and procedures and individual professionalism may render leader behavior unnecessary. Answer: True Explanation: A task characterized by routine, a high degree of structure, frequent feedback, and intrinsic satisfaction may render leader behavior unnecessary. 22. High levels of experience and group cohesiveness among subordinates cannot neutralize leadership. Answer: False Explanation: Experience and cohesion among subordinates can sometimes be so high that there is little the leader can do to change things. 23. Most modern organizations are currently working toward becoming more hierarchical in structure. Answer: False Explanation: Rather, the trend is toward organizations attempting to become less hierarchical, eliminating the old-fashioned command-and-control mentality often inherent in bureaucratic organizations. 24. A manager working in the United States will typically see a high level of collectivism among workers. Answer: False Explanation: U.S. culture usually emphasizes individualism over collectivism. 25. Strategic leadership is a leader's ability to understand the complexities of both the organization and its environment. Answer: True Explanation: Strategic leadership may be seen as an extension of transformational leadership. 26. The ethical behaviors of top management are less of a concern today compared to the past. Answer: False Explanation: The ethical behaviors of top leaders are being scrutinized more than ever. 27. Virtual management refers to the role of leaders in a team environment. Answer: False Explanation: There is no theory or research to guide managers functioning in a virtual world. 28. Virtual managers don't need to concern themselves with creating and maintaining relationships with their employees. Answer: False Explanation: Managers functioning in a virtual world, with its heavy emphasis on telephones and e-mail, need to work hard to convey appreciation, reinforcement, or constructive feedback. 29. Managers with a high degree of risk propensity tend to rely heavily on intuition. Answer: True Explanation: In addition, they tend to make decisions quickly and often risk big investments on their decisions. 30. Most leaders can successfully demonstrate transactional and transformational leadership. Answer: False Explanation: Some leaders adopt either transformational or transactional perspectives, depending on their circumstances, but few adopt both. 31. Most leadership theories and studies have focused on the roles of both men and women in leadership roles. Answer: False Explanation: Most leadership theories and studies have focused on male leaders. 32. Male leaders tend to be no more task-focused than female leaders. Answer: True Explanation: Male leaders are not systemically more harsh, controlling, or task-focused than female leaders. 33. Leaders at the now defunct energy company Enron were recognized as having demonstrated exemplarily high ethical leadership. Answer: False Explanation: This firm came under heavy criticism for its systematic lack of ethical leadership. 34. When making a decision, finding multiple acceptable alternatives may be possible; however, selecting just one and rejecting all others is critical. Answer: False Explanation: When making a decision, selecting just one and rejecting all others may not be necessary. 35. A teacher who takes the initiative to create and organize an after-school tutoring program for the students is an example of a manager who is not a leader. Answer: False Explanation: This is actually an example of a leader who is not a manager. 36. Few studies have successfully assessed the meaning and impact of charismatic leadership. Answer: True Explanation: Charismatic leadership ideas are quite popular among managers today and are the subject of numerous books and articles; unfortunately, few studies have specifically attempted to test the meaning and impact of charismatic leadership. 37. Which of the following describes the concept of leadership? A) the processes and behaviors used by someone to determine the optimal decision among several options B) the processes and behaviors used by someone to motivate, inspire, and influence the behaviors of others C) the processes and behaviors used by someone to establish the organizational structure of a firm D) the processes and behaviors used by someone to manage the functioning of an organization E) the processes and behaviors used by someone to achieve tangible outcomes within an organization Answer: B Explanation: B) Leaders set agendas and inspire others to follow their direction. 38. Whereas managers focus on plans, results, and goals, what do leaders focus on? A) productivity B) profitability C) people D) sales E) organization Answer: C Explanation: C) Leadership is concerned with motivating and inspiring people, rather than controlling and organizing a company. 39. Which tasks do managers typically focus on? A) monitoring organizational goals B) agenda setting C) aligning the organization with its environment D) inspiring employees E) planning and budgeting Answer: E Explanation: E) Management is concerned with the running of an organization. 40. When creating an agenda, what do leaders focus on? A) establishing direction B) controlling and problem solving C) organizing and staffing D) outlining procedures E) planning and budgeting Answer: A Explanation: A) This is the prime concern of a leader. 41. When developing the human resources for achieving an agenda, what do managers focus on? A) establishing direction B) controlling and problem solving C) organizing and staffing D) aligning people E) motivating and inspiring Answer: C Explanation: C) This is the primary methodology for a manager to achieve his or her goals. 42. When developing the human resources necessary for achieving an agenda, what do leaders focus on? A) establishing direction B) controlling and problem solving C) organizing and staffing D) aligning people and goals E) establishing workplace policies Answer: D Explanation: D) Aligning people to work together toward an agenda is one of the leadership responsibilities. 43. What area was the earliest research on leadership most concerned with? A) leadership behaviors B) leadership traits C) leadership situations D) leadership integrity E) leadership roles Answer: B Explanation: B) The trait approach to leadership yielded various lists of attributes that successful leaders often have. 44. What was a major problem with the trait approach to leadership? A) The results were too innovative and thus were not taken seriously at the time. B) The results were too inconsistent and thus not very practical. C) The results were not very inspiring and thus ignored. D) The results were found to be too pessimistic and thus were dismissed as useless. E) The results were too worshipful of certain leaders and thus were dismissed as irrelevant. Answer: B Explanation: B) These early studies never really managed to agree with each other. 45. Which of the following best describes task-focused leader behavior? A) concentration on how tasks should be performed B) concentration on which tasks should be performed C) concentration on why tasks should be performed D) concentration on who should perform which tasks E) concentration on when tasks should be performed Answer: A Explanation: A) Task-focused leader behavior occurs when a leader focuses on how tasks should be performed in order to meet certain goals and to achieve certain performance standards. 46. Which of the following best describes employee-focused leader behavior? A) concentration on both the work quality and work quantity of employees B) concentration on both the well-being and work quality of employees C) concentration on both the satisfaction and work quantity of employees D) concentration on both the satisfaction and the well-being of employees E) concentration on both the work quantity and the well-being of employees Answer: D Explanation: D) Employee-focused leader behavior occurs when a leader focuses on the satisfaction, motivation, and well-being of his or her employees. 47. Which of the following describes one of the primary concerns associated with charismatic leadership due to severe devotion to a particular leader? A) the potential lapse of ethical practices B) the potential inability to replace leadership efficiently C) the potential encouragement of micromanaging D) the potential stagnation of corporate vision E) the potential creation of bureaucracy Answer: A Explanation: A) Although many of these reflect hazards of charismatic leadership, overzealousness of supporters has often lead to serious ethical lapses of judgment. 48. Bill Lopez spends most of his time performing normal, routine tasks. Which of the following types of leadership is he primarily involved with? A) charismatic leadership B) transformational leadership C) behavioral leadership D) situational leadership E) transactional leadership Answer: E Explanation: E) Transactional leadership is essentially the same as management in that it involves routine, regimented activities. 49. Which of the following accurately describes a primary characteristic of charismatic leaders? A) They tend to set high expectations for themselves and energize others. B) They tend to set high expectations for themselves and establish high standards for others. C) They tend to establish high standards for and energize others. D) They tend to energize others and establish good, stable practices. E) They tend to set high expectations for themselves and establish good, stable practices. Answer: A Explanation: A) High standards are practiced through example in charismatic leadership, more than insisting that everyone follow them. 50. Which of the following organizational aspects allows employees to perform capably without the direction of a leader? A) leadership neutralizers B) leadership substitutes C) leadership incentives D) leadership guidelines E) leadership obstructions Answer: B Explanation: B) Leadership substitutes are individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance. 51. Which of the following best describes the effects of leadership neutralizers in an organization? A) They tend to make leader behavior ineffective. B) They tend to make leaders more charismatic. C) They tend to outweigh the need for leader behavior. D) They tend to make managers become effective leaders. E) They tend to make leaders more neutral toward employees. Answer: A Explanation: A) Leadership neutralizers are factors that may render leader behaviors ineffective. 52. Which of the following may be substitutes for leadership? A) lax individual professionalism B) group divisiveness C) explicit plans and goals D) a loose system of rules and procedures E) a performance-based reward system Answer: C Explanation: C) These may make the need for a leader to plan things out ineffective or unnecessary. 53. Bob, Joe, and Larry can all perform their jobs well without supervision. What does this indicate? A) presence of a rigid reward system B) presence of a leadership neutralizer C) presence of a leadership substitute D) presence of a leadership incentive E) presence of a highly automated system Answer: C Explanation: C) This is precisely an example of a situation for which a leader is not needed. 54. The norms of the engineering group at Acme Incorporated are so strong that there is nothing the new company leader can do to change things. What does this illustrate? A) leadership charisma B) leadership neutralizers C) leadership substitutes D) leadership mandates E) leadership amplifiers Answer: B Explanation: B) This is one example of a leadership neutralizer. 55. Which of the following types of leaders has the primary role of helping a less experienced person learn how to function and to advance within an organization? A) enabler B) mentor C) manager D) task master E) motivator Answer: B Explanation: B) Mentors help less experienced employees learn the ropes and advance within the organization. 56. Which is the most accurate statement regarding one of the main differences between the Japanese and American cultures? A) Overall, Japanese culture is often characterized as conservative, whereas American culture is often characterized as liberal. B) Overall, Japanese culture is often characterized as rigidly structured, whereas American culture is often characterized as loosely structured. C) Overall, Japanese culture is often characterized as authoritarian, whereas American culture is often characterized as democratic. D) Overall, Japanese culture is often characterized as collectivist, whereas American culture is often characterized as individualist. E) Overall, Japanese culture is often characterized as socialist, whereas American culture is often characterized as capitalist. Answer: D Explanation: D) This is often the primary difference between the structures of Japanese and American firms. 57. Which part of the management of an organization would be most involved with strategic leadership? A) the top level of management B) the supervisory level of management C) the advisory level of management D) the auxiliary level of management E) all levels of management Answer: A Explanation: A) Strategic leadership explicitly relates leadership to the role of top management. 58. Recent corporate scandals at firms like Enron have brought increased attention to what area of leadership? A) virtual leadership B) ethical leadership C) strategic leadership D) employee-focused leadership E) charismatic leadership Answer: B Explanation: B) This type of scrutiny, had it been present, may have prevented the 2008 economic meltdown. 59. Which of the current business characteristics has brought the rise of virtual leadership? A) more communication within the organization B) little communication among employees C) more face-to-face communication within the organization D) less face-to-face communication within the organization E) little communication between employees and management Answer: D Explanation: D) That is, telecommuting. 60. Which of the following is the name for choosing one alternative from among several options? A) decision making B) assessment C) evaluation D) discernment E) arbitration Answer: A Explanation: A) This is the definition of decision making. 61. What is the first step in rational decision making? A) understanding who will make the decision B) recognizing that a decision is necessary C) identifying alternatives to the problem D) choosing an alternative E) implementing the alternative Answer: B Explanation: B) The first step is figuring out that a first step is needed. 62. What is the definition of a coalition? A) an informal group formed to achieve a common goal B) an institution incorporated in order to achieve a common goal C) a pro-business political party D) the network of management within a firm E) the network of employees within a firm Answer: A Explanation: A) All of the other answers are possible specific examples of a coalition, but not its overall definition. 63. Managers at Adidas had a hunch that their sponsorship deal with the Yankees would be a good one. Their feelings were based on what concept? A) escalation of commitment B) risk propensity C) intuition D) perception E) rational decision making Answer: C Explanation: C) Intuition is based on feeling the answer, rather than analyzing the situation. 64. Which of the following reflects the extent to which a leader is willing to gamble when making a decision? A) escalation of commitment B) overconfidence C) caution D) intuition E) risk propensity Answer: E Explanation: E) The organization's culture is a prime ingredient in fostering different levels of risk propensity. 65. Anne bought stock in ABC Company in hopes of making a profit. Although the stock's price steadily continued to drop, she refused to sell her stock. What does this illustrate? A) risk propensity B) escalation of commitment C) intuition D) perception E) caution Answer: B Explanation: B) This is an example of committing to a decision and sticking it out. 66. Which of the following do organizations need in order to be effective? A) more leadership than management B) more management than leadership C) both leadership and management D) either leadership or management E) neither leadership nor management Answer: C Explanation: C) Leadership is necessary to create and direct change and to help the organization get through tough times; management is necessary to achieve coordination and systematic results and to handle administrative activities during times of stability. 67. Which of the following statements is the MOST accurate? A) Effective managers lead for stability whereas visionary leaders lead for change. B) Effective leaders lead for stability whereas visionary managers lead for change. C) Visionary managers lead for stability whereas effective leaders lead for change. D) Strategic leaders lead for stability whereas transforming leaders lead for change. E) Strategic managers lead for stability whereas transforming managers lead for change. Answer: A Explanation: A) Management in conjunction with leadership can help achieve planned change, and leadership in conjunction with management can keep the organization aligned with its environment. 68. In interviews with two leadership applicants, Ben tried to determine each person's knowledge of the industry, level of energy, and level of self-esteem. With which of the following concepts of leadership is Ben most concerned here? A) charismatic leadership B) behavioral leadership C) situational leadership D) trait-based leadership E) transformational leadership Answer: D Explanation: D) With trait theory, some people believe that intelligence, drive, motivation, honesty, integrity, self-confidence, cognitive ability, knowledge of the business, charisma, biological factors, and other variables play a role in one's leadership style. 69. Which of the following statements best describes the assumptions made by researchers of the behavioral approach to leadership? A) Behaviors of effective leaders differ in various situations. B) Behaviors of effective leaders are the same in all situations. C) Behaviors of effective leaders reflect the proper traits for effective leadership. D) Behaviors of effective leaders differ as reflected by different traits for effective leadership. E) Behaviors of effective leaders reflect the proper disposition for effective leadership. Answer: B Explanation: B) Behavioral researchers assumed that the behaviors of effective leaders differed somehow from the behaviors of less effective leaders, and that the behaviors of effective leaders would be the same across all situations. 70. A company leader who often uses the phrase "that was then and this is now" to explain his decisions most likely follows which model of leadership? A) situational leadership B) trait-based leadership C) transformational leadership D) transactional leadership E) charismatic leadership Answer: A Explanation: A) That leaders sometimes focus on employee-focused behaviors and sometimes on task-focused behaviors led to situational theories. 71. According to the situational approach to leadership, the extent to which a leader or subordinate is involved in decision making depends on characteristics of which aspects of an organization? A) the leader, the followers, and the situation B) the leader, the structure of the organization, and the situation C) the leader, the resources at hand, and the situation D) the followers, the resources at hand, and the situation E) the resources, the structure of the organization, and the situation Answer: A Explanation: A) This approach was first proposed as a continuum of leadership behavior, with one extreme of having the leader make decisions alone to the other extreme of having employees make decisions with only minimal guidance from the leader; each point on the continuum is influenced by characteristics of the leader, his or her subordinates, and the situation. 72. What are group effectiveness, worker disposition, and the type of organization examples of? A) cross-cultural traits that may affect a leader's decision making B) behavioral issues that may affect a leader's decision making C) strategic advantages that may affect a leader's decision making D) leadership obstructions that may affect a leader's decision making E) situational characteristics that may affect a leader's decision making Answer: E Explanation: E) These are the things that make a decision-making situation unique and thus affect the outcome of a decision. 73. Which of the following is an example of an approach to leadership as seen through the eyes of followers? A) situational leadership B) ethical leadership C) behavioral leadership D) transformational leadership E) trait-based leadership Answer: D Explanation: D) Both transformational leadership and charismatic leadership are approaches to leadership as seen through the eyes of followers. 74. Which of the following may describe charismatic leadership? A) an approach to leadership emphasizing the perspectives of the leader B) an approach to leadership emphasizing the perspectives of the followers C) an approach to leadership emphasizing the perspectives of the clientele D) an approach to leadership emphasizing the perspectives of the managers E) an approach to leadership emphasizing the perspectives of all parties in the organization Answer: B Explanation: B) Both transformational and charismatic leadership are approaches to leadership as seen through the eyes of followers. 75. GDB Technologies has had lackluster performance for the past few years. Choi is hired in an attempt to revivify the company's prospects and give it new direction away from its current situation. Which of the following best describes Choi's leadership role? A) transformational B) charismatic C) transactional D) situational E) cross-cultural Answer: A Explanation: A) Transformational leadership involves using a set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change. 76. Carol took over a stagnant firm three years ago. At that time, she clearly laid out her vision of where the firm should go and since that time has worked to energize the employees of the firm toward these goals. Which of the following best describes Carol's leadership role? A) transformational B) charismatic C) transactional D) situational E) cross-cultural Answer: B Explanation: B) This is typical charismatic leadership at work. 77. At Nordic Enterprises, Johann is most effective in carrying out the management of daily tasks that must be performed. Which of the following best describes Johann's leadership role? A) charismatic B) transactional C) transformational D) behavorial E) situational Answer: B Explanation: B) Transactional leadership is essentially the same as management in that it involves routine, regimented activities. 78. Which of following describes the activities most involved with transactional leadership? A) the implementation of a corporate vision B) the implementation of organizational transformations C) the implementation of routine activities D) the implementation of employee incentives E) the implementation of situational problem-solving Answer: C Explanation: C) Transactional leadership is essentially the same as management in that it involves routine, regimented activities. 79. Which of the following is a fundamental element of charismatic leadership? A) planning B) controlling C) analyzing D) influencing E) organizing Answer: D Explanation: D) Charismatic leadership is a type of influence based on the leader's personal charm. A highly charismatic supervisor will be more successful in influencing subordinate behavior than a supervisor who lacks charisma. 80. Which statement is true regarding charismatic leadership? A) Charismatic leadership ideas are unpopular among contemporary managers. B) Many studies have successfully assessed the impact of charismatic leadership. C) Charismatic leadership is recognized as the most important approach to leadership. D) Dependence on charismatic leadership can raise serious ethical concerns. E) Taking over a leadership role from a charismatic leader is often easier than following a leader lacking in charisma. Answer: D Explanation: D) Charismatic leaders can inspire such blind faith in their followers that they may engage in inappropriate, unethical, or even illegal behaviors just because the leader instructed them to do so. 81. Steven learned that the cohesiveness among his employees was so strong that there was nothing he could do to change things. Which of the following best describes this cohesiveness? A) leadership neutralizer B) leadership substitute C) leadership mandate D) leadership amplifier E) leadership incentive Answer: A Explanation: A) A leader may be powerless to improve things because a group is so cohesive; leadership neutralizers render certain leadership behaviors ineffective regardless of the extent to which they are present. 82. According to current theories of gender roles in leadership, which of the following best describes the differences in decision making? A) Males tend to be more democratic than females in making decisions. B) Males tend to be more critical than females in making decisions. C) Males tend to be more autocratic than females in making decisions. D) Males tend to be more rational than females in making decisions. E) Males tend to be more charismatic than females in making decisions. Answer: C Explanation: C) One difference that does seem to arise in some cases, according to the text, is that women have a tendency to be slightly more democratic in making decisions, whereas men have a tendency to be more autocratic. 83. As ABC Enterprises has grown during the past few years, more and more workers have been hired from the local Ethiopian population. A number of incidents at the firm have arisen during this time regarding certain customs prevalent among these new workers. Which of the following forms of leadership does the management of this firm need to utilize in order to most harmonize this situation? A) autocratic leadership B) democratic leadership C) cross-cultural leadership D) charismatic leadership E) mentoring leadership Answer: C Explanation: C) Some of these other answers may be local solutions. But the wider situation can only be solved by taking the cross-cultural effects into account for any leadership decisions. 84. Which states the correct definition of collectivism? A) a greater focus on group characteristics than on individual characteristics B) a greater focus on the group than on the individual C) a greater focus on the individual within a group than on the individual without a group D) a greater focus on individuals who are most successful E) a greater focus on groups that have been operative for the longest time Answer: B Explanation: B) All of the other answers are parts of collectivism, but not the whole concept. 85. Which states the correct definition of individualism? A) a greater focus on individual characteristic than on cultural characteristics B) a greater focus on the individual than on the group C) a greater focus on the individual within a group than on the individual without a group D) a greater focus on individuals who have been present for the longest time E) a greater focus on individuals who are in leadership roles Answer: B Explanation: B) All of the other answers are parts of individualism, but not the whole concept. 86. In exercising strategic leadership, what is a leader most likely to do? A) focus on company efficiency B) focus on hiring the right people C) align the company with its environment D) avoid environmental impact on the firm E) engage the firm with community organizations Answer: C Explanation: C) Strategic leadership is a leader's ability to understand the complexities of both the firm and its environment and to lead change in the firm so as to achieve and maintain a superior alignment between the organization and its environment. 87. An inward belief about something, often without conscious consideration, is often referred to as what? A) intuition B) risk taking C) commitment D) discernment E) rationality Answer: A Explanation: A) Intuition is an innate belief about something, without conscious consideration; managers sometimes decide to do something because it "feels right." Such an inner sense may help managers make an occasional decision without going through a full-blown rational sequence of steps. 88. Bill decides to study a foreign language. All of his friends said it will be easy. After the third week, he realizes the language is very difficult for him to grasp. He continues his studies, hoping that it will eventually get easier. What does this illustrate? A) rational decision making B) risk-taking decision making C) escalation of commitment D) intuitive decision making E) situational commitment Answer: C Explanation: C) With escalation of commitment, decision makers make decisions and then become so committed to the course of action suggested by that decision that they stay with it, even when it appears to have been wrong. 89. Leadership researchers in the late 1940s believed that leaders should engage in which of the following behaviors? A) mostly employee-focused leader behavior B) mostly task-focused leader behavior C) both employee-focused leader behavior and task-focused leader behavior in equal amounts D) a variable mixture of employee-focused leader behavior and task-focused behavior depending on the task E) a variable mixture of employee-focused leader behavior and task-focused behavior depending on the employees Answer: C Explanation: C) In the late 1940s, most researchers began to shift away from the trait approach and to look at leadership as a set of actual behaviors. 90. Which statement is FALSE regarding gender and leadership? A) Theories regarding gender and leadership are not well-proven. B) Most leadership theories and studies have focused on males. C) There is much still to be learned about the dynamics of gender and leadership. D) There is a growing number of woman leaders in the business world today. E) Men tend to be more democratic than women in decision making. Answer: E Explanation: E) Most theories and studies have focused on males; further, more work is needed in order to better understand the dynamics of gender and leadership. 91. In selecting an alternative when making a decision, what should decision makers keep in mind? A) Finding multiple acceptable alternatives is neither possible nor efficient. B) Finding multiple acceptable alternatives should not take very long. C) Selecting one alternative and rejecting all others will be the decision maker's main objective. D) Selecting one alternative and rejecting all others might not be necessary. E) Selecting one alternative and rejecting all others should be a straightforward process. Answer: D Explanation: D) Finding multiple acceptable alternatives may be possible; selecting one alternative and rejecting all the others might not be necessary. Further, selecting alternatives can be a long and difficult task. 92. Which of the following dispositions is typical for leaders with a high degree of risk propensity? A) reliance on intuition B) reliance on rational decisions C) aversion against use of intuition D) aversion against rational decisions E) aversion against use of both intuition and rational decisions Answer: A Explanation: A) Managers with a high degree of risk propensity tend to rely heavily on intuition, reach decisions quickly, and often risk big investments on their decisions. 93. What is a prime ingredient in fostering different levels of risk propensity within an organization? A) organizational culture B) profitability level C) gender differences D) cross-cultural interactions E) company size Answer: A Explanation: A) Risk propensity is the extent to which a decision maker is willing to gamble when making a decision; since some organizations' cultures are more conservative than others, organizational culture is a prime ingredient in fostering different levels of risk propensity. 94. Why has virtual leadership become an important issue for organizations? Answer: Many organizations are no longer completely based at one physical building. Face-to-face interaction is becoming less common as e-mail and other mobile technologies become available. An effective leader thus must have the skills to organize, motivate, and influence members of her or his organization through a variety of media, i.e., possess good virtual leadership skills. Explanation: Leaders in these situations must work hard at creating and maintaining relationships with their employees that go beyond words on a computer screen. 95. What is the difference between leadership and management within an organization? Answer: Leadership is necessary to create and direct change at an organization by influencing and motivating its members. Management, on the other hand, is more concerned with everyday administrative activities in order to bring stability to and obtain reliable results from the organization. Explanation: A person can be a manager, a leader, both, or neither. 96. What is the difference between employee-focused leadership and task-focused leadership? Answer: Employee-focused leadership is when a leader focuses on the satisfaction, motivation, and well-being of his or her employees, and task-focused leadership is when a leader focuses on how tasks should be performed in order to meet certain goals and to achieve certain performance standards. Explanation: These two basic forms of leader behavior were identified by researchers who assumed that the behaviors of effective leaders differed somehow from the behaviors of less effective leaders, and that the behaviors of effective leaders would be the same across all situations. 97. The situational approach to leadership was first proposed as a continuum of leadership behavior. Explain the two extreme ranges of the continuum. Answer: At one extreme, the leader makes decisions alone; at the other end, employees make decisions with only minimal guidance from the leader. Explanation: The situational approach to leadership assumes that appropriate leader behavior varies from one situation to another. 98. Describe a situation in which a leader would choose a more transactional approach to her leadership over a more transformational one. Answer: A company that has successfully reorganized and reinvigorated itself after years of floundering would probably have more need for a leader who is primarily concerned with ensuring that the changes made for better performance remain in place and well-utilized, rather than a leader who will continue to transform the organization. Explanation: Transformational leadership is the set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. In contrast, transactional leadership is essentially the same as management in that it involves routine, regimented activities. 99. From a coaching perspective, what roles might an organizational leader assume? Answer: The leader may help select team members, provide some general direction, help train and develop the team, and help the team obtain necessary resources. Explanation: Coaches from different teams may play important roles in linking the activities and functions of their respective teams. 100. What are three common constraints limiting the development of alternatives in the rational decision-making process? Answer: Common constraints include legal restrictions, moral and ethical norms, the power and authority of managers, available technology, economic considerations, and social norms. Explanation: Although managers should seek creative solutions, they must also recognize that various constraints often limit their alternatives. 101. How can norms and cohesiveness in a work group neutralize leadership? Answer: Norms and cohesiveness among group members can be so strong that there is nothing a leader can do to change things. Explanation: These group factors are known as leadership neutralizers due to their tendency to render leader behaviors ineffective. 102. Contrast leadership substitutes with leadership neutralizers. Answer: Leadership substitutes are individual, task, and organizational characteristics that tend to outweigh the leader's ability to affect subordinates' satisfaction and performance. That is, they take the place of many needed aspects of effective leadership. Leadership neutralizers are individual, task, and organizational characteristics that render any attempted leadership behavior ineffective. Group norms and cohesion are among some leadership neutralizers. Explanation: In some cases, certain factors may actually substitute for leadership, making actual leadership unnecessary or irrelevant. In other cases, factors may exist that neutralize or negate the influence of a leader, even when that individual is attempting to exercise leadership. 103. Describe the steps involved in the rational decision-making process. Answer: The rational decision-making process is a series of rational steps used when making a decision. The first step is to recognize and define the decision situation. Next, the decision maker identifies alternative solutions to the defined problem. The decision maker will then evaluate alternatives. The decision maker then implements the chosen alternative. Following up and evaluating the results is the final step. Explanation: If all decision situations were approached in this logical way, more decisions would prove successful. Yet decisions are often made with little consideration for logic and rationality. 104. Describe how the behavioral approach to leadership could apply to the situational approach to leadership. Answer: The behavioral approach to leadership suggests that two forms of leadership prevail: task-focused leader behavior, in which a leader focuses on how tasks should be performed in order to meet certain goals, and employee-focused leader behavior, in which a leader focuses on the satisfaction, motivation, and well-being of his or her employees. The situational approach posits that the actions of a leader depend completely on the given circumstances of the organization to be led. Certain circumstances will necessitate certain behaviors from the leader, task-focused or employee-focused, depending upon where the need is greatest. Explanation: Situational characteristics that affect decision making include the type of organization, group effectiveness, the problem itself, and time pressures. Mary Sutton was promoted to supervisor of the highly productive first-shift employees at Calder Enterprises. Though her predecessor, Myron Hart, was very autocratic in his leadership style, Mary felt she could accomplish more by taking on a coaching style of leadership. Within the first week, however, she learned that the cohesion among the first-shift employees was so strong that she hesitated to introduce any changes for fear that they would be ignored. Further, as time progressed, Mary began to observe vast personality differences and dramatic differences in motivation levels among her employees. 105. How transactional and how transformational is Mary's leadership style in this scenario? Explain. Answer: Mary appears to be committed to making some changes at Calder Enterprises. This will necessarily involve a fair amount of transformational leadership. However, the employees on the first shift are highly productive and cohesive. Therefore, Mary will have to nurture that part of the situation since a lack of attention to the routine, mundane parts of the organization may have adverse effects on the group's cohesion and productivity. She does not want to spoil the "good elements" that she already has at Calder. This is exactly what is meant by transactional leadership. Explanation: Transformational leadership is the set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. In contrast, transactional leadership is essentially the same as management in that it involves routine, regimented activities. 106. Are any leadership neutralizers evident in this scenario? Explain. Answer: Yes. The cohesiveness of Mary's workers, in particular, threatens to neutralize the effects of any leadership behaviors on her part. She has even begun to wonder if proposing changes is possible at this point. She fears the group's cohesiveness might prevent her from doing much. Explanation: In addition to group factors, elements of the job itself as well as organizational factors may also limit a leader's ability to "make a difference." 107. What variables in the scenario indicate that a situational approach to leadership may be advisable? Answer: The situational approach to leadership assumes that appropriate leader behavior varies from one situation to another. The scenario indicates that Mary's employees possess various ranges of motivation and personality; this will likely indicate to her that she may want to approach each situation differently. Explanation: Situational characteristics that affect decision making include the type of organization, group effectiveness, the problem itself, and time pressures. 108. What variables in the scenario indicate that a strategic approach to leadership may be advisable? Answer: It is very clear that there are subtleties to the history and culture of the company that Mary was unaware of in the beginning, particularly regarding the first-shift employees. In order to fully enact any necessary changes, she needs to come to understand the company's history and how and why it is in its current state of organization. Explanation: To be effective as a strategic leader, a manager needs to have a thorough and complete understanding of the organization—its history, its culture, its strengths, and its weaknesses. In addition, the leader needs a firm grasp of the organization's external environment. 109. Mary realizes she will have to play the role of "mentor." What does this mean? Answer: Mary will concern herself with the less-experienced employees of the company and ensure that they learn to integrate themselves within the organization and prepare themselves for success and advancement. Explanation: Mentors may also help resolve conflicts among team members and mediate other disputes that arise. 110. If the typical aspects about gender differences in leadership are observable at Calder Enterprises, how will Mary's leadership style be possibly different than that of her male predecessor? Answer: The scenario already indicates that Mary prefers a more democratic method of making decisions than her autocratic predecessor. Mary will probably have stronger interpersonal skills than Myron Hart, and her predecessor will have likely relied more on his own judgment in making decisions. Explanation: Given that most leadership theories and research studies have focused on male leaders, developing a better understanding of how women lead is clearly an important next step. However, much more work needs to be done in order to better understand the dynamics of gender and leadership. 111. After Mary's first month in her new supervisory position, she wonders if she is trapped in an "escalation of commitment." What might make her wonder that? Answer: Mary may have become so committed to her decision to accept the supervisory position that she now inwardly doubts whether it was the right decision. However, escalation of commitment pushes her further into the job; she will likely not quit because of being too embarrassed to quit or of feeling like she has somehow failed if she does quit. Explanation: Escalation of commitment is an important behavioral process that influences decision making. In particular, decision makers sometimes make decisions and then become so committed to the course of action suggested by that decision that they stay with it, even when it appears to have been wrong. 112. Based on Mary's feelings about the job within her first week, does her job call for effective leadership, effective management, or both? Answer: Management in conjunction with leadership can help achieve planned orderly change—a major focus of Mary's—and leadership in conjunction with management can keep the organization properly aligned with its environment. At this point, Mary will use both leadership and management. Explanation: One of the biggest errors people make is assuming that leadership and management mean the same thing when they are really different concepts. A person can be a manager, a leader, both, or neither. 113. According to the behavioral approach to leadership, what leader behavior will Mary likely exercise? Answer: Because her employees are already productive, though possessing varying degrees of motivation, Mary's attention in the beginning will be on employee-focused leader behaviors. The employees, perhaps through a part of their group norms and high level of cohesion, already appear to be task-focused themselves. Employee-focused leader behaviors will provide Mary with the chance to be a coach and mentor and to raise and/or stabilize the motivation levels of all employees. Explanation: Employee-focused leader behavior occurs when a leader focuses on the satisfaction, motivation, and well-being of his or her employees. In contrast, task-focused leader behavior occurs when a leader focuses on how tasks should be performed in order to meet certain goals and to achieve certain performance standards. 114. As the weeks progress, Mary makes many assumptions about her employees based on intuition. Should she rely on intuition? Explain. Answer: If Mary relies on intuition, she is developing innate beliefs about something, without conscious consideration. Doing something or perceiving something based on a "hunch" can sometimes be accurate if it is based on years of experience and practice in making decisions in similar situations. Not always is a full-blown series of rational steps necessary in making a decision. Managers, nonetheless, have to be cautious when making decisions or assumptions based on intuition. Explanation: All managers, but most especially inexperienced ones, should be careful not to rely too heavily on intuition. If rationality and logic are continually flouted for "what feels right," the odds are that disaster will strike one day. Manager: Here at ACME, Inc., we endorse an inclusive definition of leadership. We believe that leadership is the ability to influence others to help the organization achieve its goals and that any person in our organization can be a leader, even entry-level personnel. Because of this view we have built a culture in which every employee has an equal opportunity to lead. 115. How is the Manager's reasoning vulnerable to criticism? A) It fails to account for the possibility that people who lack organizational authority can still be leaders. B) It fails to demonstrate that ACME's definition of leadership is the most popular definition. C) It uses a variation of a commonly used definition of leadership. D) It does not demonstrate that ACME's goals were well-chosen. E) It ignores the effect that managerial authority has on one's ability to influence others. Answer: E Explanation: E) Many of the choices accurately describe things that the Manager does or doesn't do, but only Choice E is a problem. People with managerial authority have, in general, more opportunity to influence people. Since influencing people is essential to leadership, it is misleading to claim that everyone has an equal opportunity to lead. Choice A is inaccurate. The Manager's definition does allow for this possibility. Choices B, C, and D are accurate but do not point out a problem. Neither the popularity of the definition (Choice B) nor its originality (Choice C) is relevant to the question of equal opportunity for leadership. The wisdom of the goals (Choice D) also doesn't matter. The Manager is just claiming that everyone at ACME can lead, not that they'll lead in a good direction. 116. Which of the following, if true, would strengthen the Manager's argument? A) Many other corporations have adopted ACME's definition of leadership. B) ACME's cross-functional team structure allows individuals to influence other people despite a lack of direct authority. C) Most of the company's leaders have come from the Sales Department, and relatively few have come from the Quality Control Department. D) ACME's Human Resources Department makes outstanding efforts to recruit a diverse group of employment candidates. E) Executives at ACME are often recruited to serve in leadership positions at other organizations. Answer: B Explanation: B) Normally, a lack of direct authority would suggest less ability to influence others. But if Choice B is correct, then the lack of authority would make less of a difference at ACME. Choice B therefore strengthens the argument about equal opportunity. Choice A: The popularity of ACME's definition doesn't matter. Choice C suggests that opportunity isn't equal at all. Choice D speaks to equal opportunity in recruiting but not in leadership. Choice E suggests that the executives at ACME have other opportunities, but not that everyone at ACME has leadership opportunities. Manager: Our company's Employee Handbook makes it clear that the company's performance depends on effective leadership, and that all leaders at our company have managerial authority. Since my position as a manager in the Quality Control Division clearly gives me managerial authority, I must be a leader in this company, and my leadership will guarantee the company's strong performance. 117. The Manager's argument assumes all of the following EXCEPT which? A) The Employee Handbook is a reliable source of information. B) All managers are leaders. C) All leaders are effective leaders. D) Effective leadership is all the company needs for strong performance. E) The Manager was chosen for his position because of his leadership skills. Answer: E Explanation: E) This argument has lots of holes, but Choice E isn't one of them. It doesn't matter why the Manager has the position he has. The argument simply concerns the implications of the Manager holding that position. Choice A is assumed because the whole argument relies on information in the Employee Handbook. Choice B is assumed because we know that at the company, leaders have to be managers, but that doesn't mean that managers have to be leaders. Choice C is assumed because even if the Manager is a leader we don't know whether he is an effective leader. If he isn't (and it sounds that way) then how can his leadership guarantee strong performance? Choice D is assumed because we know that success depends on strong leadership, but that doesn't mean that strong leadership by itself will guarantee strong performance. Ben: We need to select the team members for the Dragon Owls project. I have identified seven essential skills we need to make this project successful: leadership skills, creative skills, conceptual skills, collaborative skills, technical skills, interpersonal skills, and planning skills. Therefore, we should bring at least seven people on to the team. 118. Which of the following is assumed by Ben's argument? A) No potential member of the Dragon Owls project has better leadership skills than conceptual skills. B) Every potential member of the Dragon Owls project has outstanding skills in at least one respect. C) Some potential members of the Dragon Owls project have creative skills and planning skills. D) No potential member of the Dragon Owls team has both conceptual skills and interpersonal skills. E) Every potential member of the Dragon Owls team with technical skills also has collaborative skills. Answer: D Explanation: D) Ben thinks that seven members are necessary because there are seven required skills. But if Choice D isn't true, then there's an overlap between skills, which would make it unnecessary to have seven members in order to cover the seven required skills. Choice A has it backwards. Ben is assuming that some people have skills that are stronger than their other skills. If Choice A were true, then it wouldn't matter who was picked to cover the "leadership" skill. Choice B brings in a new term, "outstanding skills," that doesn't show up in Ben's argument. Choices C and E also get it backwards. Ben assumes that there's no overlap. 119. Which of the following demonstrates flawed reasoning most similar to Ben's reasoning? A) Madeleine has seven requirements for her next car, but only the cars that have enough room for her musical equipment are worth considering. B) Noah wishes to visit seven cities during his vacation, but if some of them are close enough he will not need to fly into seven different airports. C) Simon's cold has seven symptoms, and so he will need to take seven different cold medications to treat his cold. D) Miriam is considering seven important criteria while selecting colleges, and so each of her top seven choices must be her top choice in exactly one of those seven aspects. E) Johann is choosing ingredients for a seven-course meal. Since the courses have no ingredients in common, he will need to choose at least seven ingredients. Answer: C Explanation: C) Just as Ben ignores the possibility that a single person could satisfy more than one requirement, Choice C ignores the possibility that a single medicine could treat multiple symptoms. Choice A gives priority to one concern, whereas Ben does not. Choice B recognizes the possibility that seven flights might not be necessary, whereas Ben misses the possibility that seven people might not be necessary. Choice D brings in the notion of a "top choice" in one aspect. But Ben does not refer to the potential member with the best skills in anything. Choice E is valid reasoning because it rules out the possibility of overlap. Tim Raitt: We all agree that effective leadership is important, but that doesn't tell us how to make sure that the people we put in leadership positions are actually leaders. In my view, the most effective way to accomplish this goal is to identify the characteristics of effective leaders and make sure that the people in leadership positions have those qualities. Bonnie Haffior: You're on the right track, but effective leadership is less an issue of the characteristics that effective leaders have and more of an issue of what effective leaders do. If we can learn the most effective leadership behaviors, then we can identify future leaders and improve the performance of those currently in leadership positions. J. C. Kahn-Tinn: Your theories would be wonderful if they worked, but in reality they don't. People who are effective leaders in one context can be ineffective in another. Leadership approaches are not simply right or wrong. The most effective approach is to consider the context of the situation and then identify the leadership approach that is most appropriate to that situation. 120. Suppose that an executive who was an effective leader in organization X took a position with organization Y and was ineffective there. Which of the following, if true, would support Bonnie Haffior's likely explanation for the difference in performance? A) The skills required in organization Y required the same kinds of leadership behavior. B) The executive lacked the qualities that lead to success in all leadership contexts. C) The executive's actions at organization X were significantly different from those the executive took at organization Y. D) Many of the people who held the executive's position have been even less effective. E) After leaving organization Y, the executive took a position at organization Z, where she was even more effective than she was at organization X. Answer: C Explanation: C) Bonnie Haffior believes that the key to effective leadership is to identify the things that good leaders do. If the executive had done the same things but got different results then that would suggest that different behavior would be required, which would weaken Bonnie's argument. But if Choice C were true, then the different results might be explained by different behavior, which would strengthen Bonnie's position. Choice A would weaken Bonnie's argument. Choice B sounds like something Tim Raitt would say. Choice D suggests that the executive might not have been so bad, but doesn't help explain why she wasn't effective. Choice E, if anything, supports a contingency approach. 121. Based on the descriptions above, Tim Raitt and J. C. Kahn-Tinn would most likely disagree about the answer to which of the following questions? A) Is effective leadership essential for strong business performance? B) Are there any characteristics that many effective leaders have in common? C) Could having a personality type be an advantage in one leadership context and a disadvantage in another? D) What is the most appropriate definition of "effective leadership"? E) What percentage of leaders are effective leaders? Answer: C Explanation: C) Tim believes that the same qualities are effective everywhere, whereas J. C. believes that the usefulness of qualities depends on the situation. So they would disagree on Choice C. The speakers would agree on Choice A, and might even agree on Choice B. Although J. C. doesn't believe that there are any characteristics that all effective leaders have in common, that wouldn't mean that there are no characteristics that many (or even most) effective leaders have in common. So we can't say for sure that the two would disagree about Choice B. Choices D and E aren't addressed by either speaker. 122. J. C. Kahn-Tinn's argument assumes which of the following? A) It is possible to identify the leadership approach that would be effective in a given context before leadership action is required. B) The leadership approach required to be successful in a given context is different from the approach required by any other context. C) A person who has one of the qualities associated with leadership success is likely to possess other qualities associated with leadership success. D) The leadership approaches people most often take are also the ones that are appropriate in most circumstances. E) No characteristics are strongly connected with effective leadership. Answer: A Explanation: A) J. C. believes that one should consider the context of the situation and then identify the leadership approach that is most appropriate to that situation. That would work only if Choice A is true. If you couldn't tell what would be effective, then this advice wouldn't help. Choices B and E would strengthen the argument if they were true, but neither is required. J. C. Kahn-Tinn doesn't have to believe that every situation is different (Choice B). He just has to believe that some are different. He also doesn't have to believe that no characteristics are connected with strong leadership (Choice E). He just has to believe that the connection between characteristics and effective leadership isn't perfect. Choice C sounds like an issue for the trait approach, and even then the issue of the likelihood that people possess those qualities isn't addressed here. Choice D speaks to what people actually do, and no speaker has an opinion there. Some say there are almost as many definitions of leadership as there are people who have tried to define the concept. Although different definitions sound similar, they have important differences. Compare and contrast these definitions, for example: Alistair: A leader is someone who can influence others and who has managerial authority. Bentham: Leaders have the ability to influence a group toward the achievement of a vision or set of goals. Cooke: Leaders exercise influence and control over other members to help a group or organization achieve the organization's goals. 123. Which of the following would be a leader according to Bentham's definition of leadership but would NOT be a leader according to Alistair's definition of leadership? A) a CEO who is able to shape the direction of a large organization B) an executive who is unable to affect the actions of others due to fundamental concerns about his competence C) a blogger with a wide audience who is effective at convincing others to adopt her political opinions D) an isolated individual with strong opinions about the most effective ways to run a business while respecting codes of ethics E) a middle manager who directs those under her authority to achieve the goals defined by top management Answer: C Explanation: C) Alistair believes that a leader needs to have authority, but Bentham does not. The blogger in Choice C can influence others but has no special authority, which means that Alistair would not consider this person to be a leader but Bentham would. Choices A and E would be a leader under either definition. Choices B and D would not be a leader under either definition, because both agree that a leader needs to be able to influence others. 124. Which of the following would be a leader according to Bentham's definition of leadership but would NOT be a leader according to Cooke's definition of leadership? A) an executive who influences other employees to reject their company's vision of social responsibility B) a manager who excels at executing clearly-defined tasks but consistently fails at tasks that are more fluid and flexible C) an employee who defines his or her personal goals based on the company's goals D) a division leader who wields power based on fear instead of professional duty E) a corporate officer who inspires others by describing a compelling vision of the future Answer: A Explanation: A) Cooke believes that leaders help organizations achieve their goals, but in Choice A, the executive is working against the organization's goals. But the executive in A is effective at influencing, and so that executive would be a leader according to Bentham. Choices B, D, and E: success on different kinds of tasks (Choice B), the sources of power (Choice D), and the tactics used (Choice E) aren't relevant. Choice C doesn't provide any evidence of successful influencing, and so that employee wouldn't be a leader according to either definition. Leadership Consultant: Definitions of leadership tend to focus on the ability to influence others. Some definitions believe that managerial authority is necessary, and others believe that the influence leaders exercise must advance their organization's goals. All of these definitions, however, leave out the central issue of consent. Someone cannot fairly be called a leader if he or she influences people only through threats and fear. 125. The Leadership Consultant's criticism of other definitions of leadership is based on the fact that the Leadership Consultant has a different definition of which of the following? A) "influence" B) "others" C) "goals" D) "people" E) "threats" Answer: A Explanation: A) The Leadership Consultant takes issue with the notion that one who influences others exclusively through threats and fear can be considered a leader. The Leadership Consultant believes that consent of the influenced is necessary, which is another way of saying that influence through threats and fear isn't the kind of influence that can fairly be called part of leadership. So the definition of "influence" is the key issue here. The other choices are used the same way in all definitions (Choices B, C, and D) or are used only by the Leadership Consultant (Choice E). 126. Which of the following principles would most strongly justify the Leadership Consultant's argument? A) Effective leadership is an essential element of strong business performance. B) Getting employees to perform according to directives is more important than the measures required to accomplish an organization's goals. C) Any leadership strategy needs an effective communications strategy in order to be effective. D) A leader must be able to persuade people to do things that they are not required to do. E) People who are likely to insist that managerial authority is an essential element of leadership are also likely to insist that the achievement of managerial goals is also an essential element of leadership. Answer: D Explanation: D) The Leadership Consultant believes that consent is essential and forcing people to do things isn't really "leadership." Choice D would help this case by establishing that you can't take credit for making people do things that they can't refuse to do. Choice A speaks to the importance of leadership, but the issue here is the definition of leadership. Choice B would undercut the Leadership Consultant's argument. Choice C gets at what you can do with a leadership strategy but doesn't help define leadership. Choice E tells us who believes what, but that doesn't help tell us what the best definition is. In surveying workplace demographics across locations, Latisha Gibbons, the Swish HR manager, observes that new female and minority hires are much more likely to be hired away by Swish's rivals than are nonminority hires. She is concerned and suspects that minority employees are reacting to a chilly climate for them in the workplace. Charles Clarke, Swish's CEO, is less concerned, attributing the attrition to Swish's rivals' stronger visibility among markets serving women and minorities. 127. Which of the following, if true, would support Clarke's position that the firm does not have a diversity problem? A) The corporation's code of ethics specifically prohibits any form of employment discrimination. B) Statistical analysis of middle- and top-management levels reveals no evidence of gender or ethnic bias. C) The firm's Vice President for Operations, the CEO's most powerful associate, is a Latino female. D) The firm recently instituted a system-wide voluntary training program in diversity sensitivity. E) The newest advertising campaign creates catchy versions of brand slogans in Spanish as well as English. Answer: B Explanation: B) Even if no overt campaign to discriminate against minorities exists, a pattern of bias would demonstrate a diversity issue. So Choice B is correct: if the top and middle management levels, from which leadership decisions emerge, are diverse, then it is unlikely that overt or covert discrimination would exist at the lower level. The other choices, on the other hand, do not disprove the existence of a diversity problem. Choices A and D could give lip service to minorities while tolerating discrimination in hiring and retention, and Choice C could be an example of tokenism. Choice E might help the firm's ability to tap minority markets like its competitors but is not relevant to diversity in the workplace. Santora: The steps this organization has taken to remedy years of discriminatory practices are clearly insufficient. Granted, there has been some progress in hiring entry-level personnel. The organization's first minority employees were hired one year ago. Still, there is not one minority anywhere in upper management. This failure clearly demonstrates the organization's lack of commitment to diversity. 128. Which of the following, if true, would weaken Santora's argument? A) Upper-level managers often take new positions in other organizations. B) Candidates for upper-level management positions are required to have at least three years of experience with the organization. C) The company successfully recruited entry-level employees through traditional channels. D) Upper-level managers are required to demonstrate capabilities in each of the four traditional management functions: Planning, Organizing, Leading, and Controlling. E) The organization took steps to promote diversity only after settling a series of lawsuits. Answer: B Explanation: B) Santora believes that the organization has demonstrated a lack of commitment to diversity. The evidence backs up this belief. Having no minorities among upper management is not a good sign. However, if Choice B is true, then there's an alternative explanation for this failure. All the minority employees have one year of experience or less, and if candidates for upper management positions need three years or more, then those current employees haven't been there long enough. Choice B doesn't prove the argument, but it does make it more likely. Choice A makes the argument stronger by suggesting that openings arise frequently. Choice C, if anything, suggests that the organization made no special efforts to recruit candidates. That would work against Santora's argument. Choice D tells us about the requirements of the job but nothing about the earnestness of the organization's efforts. Choice E suggests that some problems existed in the past. If anything, the severity of those problems would strengthen Santora's argument. 129. Which of the following, if true, would strengthen Santora's argument? A) Very few minorities were chosen for the leadership training program offered to promising entry-level employees. B) Very few minority candidates live within commuting distance of the organization's offices. C) Very few minority employees would have been hired under the organization's leadership at the time the organization was founded. D) The organization has a large number of employees but only a small number of upper-management positions. E) The organization expects greater growth in its product offerings than in its service offerings. Answer: A Explanation: A) Is it too early to tell if the steps the organization has taken are working? Since the organization had no minority employees just a year ago, looking at the number of minorities in upper-management may not be the most effective way to answer the question. But if Choice A is true, then those minority employees are not even viewed as candidates for leadership positions. Choice A, if true, suggests that the organization needs to do more in order to promote a diverse environment. Choices B and D provide excuses for the failure to bring a minority employee into upper-level management, which weakens Santora's argument. Choice C doesn't matter. We already know that just a year ago the organization had no minority employees. Also, we don't know when the founding was. It could have been centuries ago. Choice E doesn't matter because the product vs. service distinction is irrelevant to the question of the organization's commitment to diversity. Test Bank for Business Essentials US Edition Ronald J. Ebert, Ricky W. Griffin 9780133034028, 9780273766599, 9780136070764