Business Essentials, 12e (Ebert/Griffin)
Chapter 9 Leadership and Decision Making
1) 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
2) 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
3) Whereas managers focus on plans, results, and goals, what do leaders focus on?
A) Productivity
B) Profitability
C) Inspiration
D) Sales
E) Organization
4) What type of power is granted through the established hierarchy within the organization?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
5) Salary increases, bonuses, promotions, praise and job assignments are all examples of what
type of power?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
6) What type of power is more abstract, often based on loyalty or charisma?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
7) When someone is able to act as both a leader and a manager, what type of power do they
possess that others often do not?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
8) Management is defined as the processes and behaviors used to motivate, inspire, and influence
the behaviors of others.
9) All managers are leaders, but not all leaders are managers.
10) What is the difference between leadership and management within an organization?
11) Identify the five types of leadership power and explain each.
12) 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
13) 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 mixture of employee-focused leader behavior and task-focused behavior depending on the
task
E) A mixture of employee-focused leader behavior and task-focused behavior depending on the
employees
14) What was a major problem with the trait approach to leadership?
A) The studies were too innovative and thus were not taken seriously at the time.
B) The studies 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 studies were too focused on certain leaders and thus were dismissed as irrelevant.
15) 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
16) 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
17) In interviews with two leadership applicants, a manager 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 the manager MOST concerned here?
A) Charismatic leadership
B) Behavioral leadership
C) Situational leadership
D) Trait-based leadership
E) Transformational leadership
18) 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.
19) What type of leader behavior is focused on the motivation and well-being of those who work
in the organization?
A) Behavior
B) Task
C) Employee
D) Situational
E) Path-glory
20) Which of the following are characteristics identified in current approaches to trait
leadership?
A) Emotional and mental intelligence, drive, and integrity
B) Long-term vision, profitability, and competitiveness
C) Task, goals, and performance standards
D) Performance standards, profitability, and competitiveness
E) Drive, height, and mental capacity
21) The behavioral approach to the study of leadership identified two main areas of effective
leadership behavior: trait-focused behavior and goal-focused behavior.
22) The behavioral approach to leadership assumes that appropriate leader behavior varies from
one situation to another.
23) The behavioral approach to the study of leadership emphasized the actions taken by an
effective leader rather than any specific traits.
24) What is the difference between employee-focused leadership and task-focused leadership?
25) Which approach to leadership is based on the assumption that appropriate behavior varies
from one experience to another?
A) Situational leadership
B) Trait-based leadership
C) Transformational leadership
D) Transactional leadership
E) Charismatic leadership
26) 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
27) Which of the following models of leadership is based on the expectancy theory of motivation
and suggests that the function of a leader is to make rewards available to the workplace?
A) Supportive
B) Path-goal
C) Decision tree
D) Employee-focused
E) Leader-member exchange
28) Under the path-goal theory of leadership, what type of leader behavior includes setting
challenging goals for the employee with the expectation that those goals will be achieved?
A) Directive
B) Supportive
C) Participative
D) Achievement-oriented
E) Decision tree
29) Which approach to leadership focuses only on subordinate participation in decision making,
yet does not address other aspects of leadership?
A) Decision tree
B) Leader-member exchange
C) Transformational
D) Path-glory
E) Directive leader
30) Which method of leadership encourages supervisors to establish a small number of trusted
subordinates and give them special duties and privileges?
A) Transformational
B) Charismatic
C) Leader-member exchange
D) Decision tree
E) Path-glory
31) When a leader asks for employees’ suggestions and input in the decision-making process,
what type of leadership style is being utilized?
A) Directive
B) Supportive
C) Participative
D) Achievement
E) Transformational
32) A leader who sets levels of expectation, then gives direction and guidance and determines
work schedules uses what type of leadership theory?
A) Transformational
B) Directive
C) Supportive
D) Participative
E) Achievement-oriented
33) The situational approach to leadership is concerned with the contingent outcomes and
consequences of leader behavior rather than universal outcomes and consequences.
34) 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.
35) The situational approach to leadership was first proposed as a continuum of leadership
behavior. Explain the two extreme ranges of the continuum.
36) Describe how the behavioral approach to leadership could apply to the situational approach
to leadership.
37) Which of the following may describe charismatic leadership?
A) A form of interpersonal attraction based on the perspectives of the leader
B) A form of interpersonal attraction that inspires support and acceptance
C) A form of interpersonal guidance based on the perspectives of the managers
D) A form of interpersonal guidance that uses highly controlled alternatives
E) A form of interpersonal attraction which utilizes group performance norms
38) 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 regimented activities
D) The implementation of employee incentives
E) The implementation of situational problem solving
39) Which of the following is a fundamental element of charismatic leadership?
A) Planning
B) Controlling
C) Analyzing
D) Influencing
E) Organizing
40) 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.
41) 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
42) Which of the following accurately describes a primary characteristic of charismatic leaders?
A) They tend to set high expectations for themselves and control the expectations of others.
B) They tend to set high expectations for themselves and establish high standards for others.
C) They tend to establish high standards for themselves and rely on others to accomplish goals.
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.
43) What type of leadership recognizes the need for change then creates and executes a plan for
change?
A) Transformational
B) Transactional
C) Charismatic
D) Supportive
E) Directive
44) Taking over a leadership role from a charismatic leader is less challenging than taking over
from a leader lacking charisma.
45) Few studies have successfully assessed the meaning and impact of charismatic leadership.
46) Describe a situation in which a leader would choose a more transactional approach to her
leadership over a more transformational one.
47) Identify three crucial elements of charismatic leadership.
48) 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
49) 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.
50) Which of the following may be a substitute 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
51) When an employee can perform well without a leader, what is indicated?
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
52) What type of factors result in a leadership behavior that has been effective in the past no
longer working in a new situation?
A) Substitutes
B) Neutralizers
C) Charisma
D) Transactional
E) Cross-cultural patterns
53) Leadership neutralizers tend to strongly affect a leader’s ability to affect a subordinate’s
performance.
54) Rigid rules and procedures, along with individual professionalism, may render leader
behavior unnecessary.
55) High levels of experience and group cohesiveness among subordinates cannot neutralize
leadership.
56) How can norms and cohesiveness in a work group neutralize leadership?