60. During his tenure as the CEO of Credit Suisse First Boston (CSFB), John Mack turned the
money-losing bank into a profitable firm by “goading workers to move out of their comfort zones” and
setting challenging goals for them. His high expectation for his employees indicates that Mack used
a(n) ____ leadership style.
a.
achievement-oriented
b.
supportive
c.
charismatic
d.
democratic
e.
participative
61. According to the path-goal theory, which of the following is an example of an environmental
contingency?
a.
the formal authority system
b.
perceived ability
c.
locus of control
d.
subordinate satisfaction
e.
focus of subordinate
62. According to the path-goal theory of leadership, ____ means setting challenging goals, having high
expectations of employees, and displaying confidence that employees will assume responsibility and
put forth extraordinary effort.
a.
directive leadership
b.
supportive leadership
c.
participative leadership
d.
achievement-oriented leadership
e.
empowerment leadership
63. Hot Topic is a fast-growing clothing chain targeted to the alternative teen demographic. Hot Topic’s
CEO Betsy McLaughlin relies on her employees to locate new trends. McLaughlin almost daily
consults with her employees for suggestions on what the stores should carry. She relies on their input
before making inventory decisions. McLaughlin uses the ____ style of management.
a.
achievement-oriented
b.
autonomous
c.
charismatic
d.
directive
e.
participative
64. W. L. Gore is the company that created Gore-Tex among many other innovative products. Gore
employees (known as associates) don’t have titles or bosses in the traditional sense. Instead, associates
make commitments to work on projects that they believe are most worthy of their time. At Gore, few
leaders are appointed; leaders simply emerge as needed by the other employees or the project itself.
Since the firm has been extremely successful since its inception, you can assume that Hersey and
Blanchard’s situational theory would predict Gore’s employees have:
a.
a high degree of worker readiness
b.
strong goal congruence
c.
a high degree of worker synergy
d.
strong concern for people
e.
strong concern for production
65. Betsy McLaughlin, former CEO of the fast-growing clothing chain Hot Topic, relied on her employees
to spot new trends in the market. Since she was high in relationship behavior and high in task
behavior, Hersey and Blanchard’s situational theory indicates that she had a(n) ____ leadership style.
a.
telling
b.
empowering
c.
participating
d.
delegating
e.
selling
66. W. L. Gore is the company that created Gore-Tex among many other innovative products. Gore
employees (known as associates) don’t have titles or bosses in the traditional sense. Instead, associates
make commitments to work on projects that they believe are most worthy of their time. At Gore, few
leaders are appointed; leaders simply emerge as needed by the other employees or the project itself.
According to Hersey and Blanchard’s situational theory, what type of leadership style is used by
Gore’s top management?
a.
telling
b.
empowering
c.
participating
d.
delegating
e.
selling
67. The normative decision theory ____.
a.
states that the situation determines what leadership style to use
b.
assumes that certain inalienable characteristics determine the most effective leaders
c.
helps managers determine how much employee participation should be used in decision
making
d.
assumes leader behavior can be fitted to subordinate characteristics
e.
assumes leaders are generally unable to change their leadership style
68. To save a company from bankruptcy, its CEO told its employees that he would eliminate 53 percent of
the company’s mechanics and reduce the compensation of the remaining mechanics by 26 percent. In
terms of the normative decision theory, Steenland ____.
a.
made consultative decisions
b.
used a telling leadership style
c.
made autocratic decisions
d.
used a selling leadership style
e.
used an adaptive leadership style
69. In many organizations, sales managers develop companywide sales forecasts by asking members of
the sales force to decide how much growth they anticipate in their individual sales territories. Sales
managers then take the input from the individual salespeople and create the companywide sales
forecasts based on this information. In the normative decision model, this would be an example of a(n)
____ decision-making style.
a.
Consultative
b.
Group
c.
Autocratic
d.
Participative
e.
Supportive
70. Which of the following is an example of a rule used within normative decision theory to increase
decision quality?
a.
the subordinate conflict rule
b.
the goal congruence rule
c.
the worker readiness rule
d.
the commitment requirement rule
e.
the commitment probability rule
71. Which of the following leadership theories uses a decision tree to determine the appropriate level of
participation by subordinates in decision-making?
a.
Fiedler’s contingency theory
b.
Blake and Mouton’s leadership grid
c.
path-goal theory
d.
Vroom-Yetton-Jago’s normative decision model
e.
trait theory
72. ____ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others
to initiate change that will create a positive future for the organization.
a.
Strategic leadership
b.
Initiating leadership
c.
Vision congruence
d.
Progressive leadership
e.
Empathetic leadership
73. In the trucking industry today, leaders are needed that will do more than simply manage or direct
drivers, owner-operators, and the staff that supports them. These leaders need to inspire, coach,
encourage, and guide. Today’s leaders need to earn consensus by working as part of the team,
providing resources to get the job done, then getting out of the way and letting their people perform.
Today, these men and women need to be ____ leaders.
a.
Strategic
b.
Transactional
c.
Directive
d.
Autonomous
e.
job-oriented
74. ____ is leadership that creates a positive image of the future that motivates organizational members
and provides direction for future planning and goal setting.
a.
Visionary leadership
b.
Supportive leadership
c.
Transactional leadership
d.
Achievement-oriented leadership
e.
Leadership empowerment
75. Malcolm Thompson was brought in as the CEO of Novalux, a company involved in laser research, to
save the company’s promise of innovation. It’s what he loves: turning ideas into companies, then
shaping those businesses to meet evolving challenges. “You’re never done,” he says. “It always looks
like you’re near the finish line, but there are always new opportunities along the road—and new
obstacles you’d never thought of. That’s part of the exploration—constantly looking at the next
problem and the next solution.” Apparently, Thompson is an example of a(n) ____.
a.
leadership substitute
b.
trait leader
c.
leadership neutralizer
d.
visionary leader
e.
transactional leader
76. The two types of visionary leadership are ____.
a.
tactical leadership and charismatic leadership
b.
charismatic leadership and transformational leadership
c.
situational leadership and transactional leadership
d.
transformational leadership and transactional leadership
e.
situational leadership and strategic leadership
77.
The author of The Science of Good and Evil describes his meeting with the founders of Google in the
book. He described them as visionary leaders, which means their primary goal for being in business is
to ____.
a.
get rich
b.
show off their intelligence and expertise
c.
create a positive image of the future
d.
have as much free time as possible
e.
be charismatic
78. The two kinds of charismatic leaders are referred to as ____.
a.
ethical charismatics and unethical charismatics
b.
effective charismatics and ineffective charismatics
c.
transformational and transactional leaders
d.
visionary and nonvisionary leaders
e.
those who have learned how to be charismatic and those who are naturally charismatic
79. ____ refers to the behavioral tendencies and personal characteristics of leaders that create an
exceptionally strong relationship between them and their followers.
a.
Consideration leadership
b.
Charismatic leadership
c.
Transactional leadership
d.
Transformational leadership
e.
Leadership empowerment
80. Charismatic leaders generally ____.
a.
articulate a vision based on strongly held values
b.
have strong coercive and reward power
c.
have trouble delegating
d.
base their influence on an exchange process in which followers are rewarded for good
performance and punished for poor performance
e.
are accurately described by none of these
81. People with Machiavellian personalities believe that virtually any type of behavior is acceptable if it
helps satisfy needs or accomplish goals. Add that skill to someone with the ability to create strong
bonds with followers and you have described a leader who is a(n) ____.
a.
negative transformation leader
b.
transactional leader
c.
country club manager
d.
reactive leader
e.
unethical charismatic leader
82. ______ leaders are ones who will control and manipulate followers, do what is best for themselves
instead of his or her organization, only want to hear positive feedback, only share information that is
beneficial to themselves, and have moral standards that put their interests before everyone else’s.
a.
manipulative charismatic
b.
Machiavellian charismatic
c.
unethical charismatic
d.
illegitimate charismatic
e.
charismatic ombudsmen
83. Transformational leaders ____.
a.
are able to make their followers feel they are a vital part of the organization
b.
encourage followers to make sacrifices for the organization
c.
help followers see how their jobs fit with the organization’s vision
d.
get employees to see beyond their own needs for the good of the group
e.
are accurately described by all of these
84. UPS was founded UPS in 1907 as a message delivery business. The development of the telephone
would have put an end to the business if UPS’s founder had not been a ____ type of leader. One who
was able to get his employees to accomplish more than they had thought possible and re-invent the
company as a company that delivered goods for retailers.
a.
transformational
b.
substitute
c.
participative
d.
transactional
e.
supportive
85. ____ generates awareness and acceptance of a group’s purpose and mission and gets employees to see
beyond their own needs and self-interest for the good of the group.
a.
Virtual leadership
b.
Charismatic leadership
c.
Leadership empowerment
d.
Transformational leadership
e.
Transactional leadership
86. Which of the following is NOT a component of transformational leadership?
a.
idealized influence
b.
supportive influence
c.
intellectual stimulation
d.
individualized consideration
e.
inspirational motivation
87. Which of the following is one of the steps recommended for companies to take to reduce the risks
associated with unethical charismatic leaders?
a.
Enforce a clearly written code of conduct.
b.
Recruit, select, and promote managers with high ethical standards.
c.
Train leaders how to value, seek, and use diverse points of view.
d.
Reward employees who act ethically, especially managers.
e.
All of these are recommended steps to take to reduce the risks associated with unethical
charismatics.
88. Transactional leaders ____.
a.
reward followers for good behavior and punish followers for poor behavior
b.
help followers see how their jobs fit with the organization’s vision
c.
pay special attention to individual needs by creating learning opportunities
d.
motivate followers by providing them with meaningful and challenging work
e.
are accurately described by all of these
89. As CEO of UPS, Michael Eskew transformed the company from a package delivery service to a
logistics expert so it could serve as a traffic manager for corporate America. As a transformational
manager, Eskew ____.
a.
insisted his employees do the right thing
b.
created opportunities for rewards
c.
used intellectual stimulation to encourage his employees to take innovative approaches to
problem solving
d.
encouraged his employees to depend on information technology as the basis for
decision-making
e.
created heuristics to guide the transformation procedure
90. ____ is based on an exchange process, in which followers are rewarded for good performance and
punished for poor performance.
a.
Visionary leadership
b.
Charismatic leadership
c.
Leadership empowerment
d.
Transformational leadership
e.
Transactional leadership
91. Transformational leaders that pay special attention to followers’ individual needs by creating learning
opportunities, accepting and tolerating individual differences, encouraging two-way communication,
and practice being a good listener describes the component of transformational leadership known as
____?
a.
idealized influence
b.
inspirational motivation
c.
intellectual stimulation
d.
individualized consideration
e.
influential stimulation
92. Which leadership style would be most likely to rely on positive and negative reinforcement?
a.
transformational leadership
b.
charismatic leadership
c.
participative leadership
d.
delegating leadership
e.
transactional leadership
93. Research results consistently show ____.
a.
transformational leadership is much more effective on average than transactional
leadership
b.
transactional leadership is much more effective on average than transformational
leadership
c.
transformational and transactional leadership are both equally effective
d.
transformational leadership tends to emerge from transactional leadership
e.
transformational leadership based on a vision is more effective than when it is based on an
exchange process
Oakland Athletics
Over the past decade, professional baseball has evolved into an increasingly dysfunctional, sharply
divided game of big-time haves and small-time have-nots. A few big market teams like the New York
Yankees and the Los Angeles Dodgers leverage huge television contracts to acquire top talent at top
salaries. Clubs in smaller cities with meager budgets make do with what’s left. This trend has not
proven true for the Oakland Athletics. From 2000 to 2006, the A’s finished first in their division 5
times and second 2 times, all the while spending about one-third of the money as the Yankees on
player payroll. The team’s success as a small-market team is credited to its general manager Billy
Beane. Billy Beane is a man who knows how to do more with less. He relentlessly exploits market
mismatches by mining data his rivals ignore and by scooping up assets that others have undervalued,
an approach made famous in Michael Lewis’s Moneyball. He realizes that every player must be
evaluated according to his long-term economic impact on the team. People who work with Beane
describe him as “monomaniacal, ardent, and controlling.”
94. Refer to Oakland Athletics. By describing Beane as ardent and controlling, his co-workers are using
____ to define its leader.
a.
trait theory
b.
path-goal theory
c.
motivation decision theory
d.
contingency theory
e.
situational leadership theory
95. Refer to Oakland Athletics. Billy Beane is an example of a leader because he ____.
a.
wants to maintain the status quo
b.
is a problem solver—not a motivator
c.
has a strong desire to lead
d.
is a general manager
e.
avoids change
96. Refer to Oakland Athletics. Other teams have an average payroll of $85 million. Beane’s payroll for
the Athletics is only $33 million. His ability to be frugal and yet build a successful team is in large part
due to his ability to set goals, give directions, and assign tasks. In other words, Beane excels in ____.
a.
consideration
b.
creating instrumentality
c.
using decision rules
d.
initiating structure
e.
participative management
97. Refer to Oakland Athletics. One of the reasons for Beane’s success is his ability to let employees know
precisely what is expected of them, give specific guidelines for playing baseball (e.g., All pitchers are
instructed to throw strikes on the first pitch and to throw as few pitches as possible during each
inning.), and make sure players follow these standards of performance. Beane is a(n) ____ leader.
a.
directive
b.
participative
c.
supportive
d.
autonomous
e.
proactive
98. Refer to Oakland Athletics. Beane operates within windows of opportunity; that’s all he can afford.
Because compensation trails performance, he must find players on the rise, guys who haven’t caught
fire yet but who could. His ability to see potential players creates a positive image for the baseball
club’s future. Beane’s ability to provide direction for the future means that he could be classified as
a(n) ____.
a.
entrepreneur
b.
visionary leader
c.
transactional leader
d.
leader ombudsmen
e.
team leader
99. Refer to Oakland Athletics. Beane’s subordinates respect the general manager’s abilities, trust him to
do what his best for the team, and like him as a person. In terms of situational favorableness, Beane’s
leadership ability is influenced by ____.
a.
strong position power
b.
empowerment
c.
low task structure
d.
weak position power
e.
good leader-member relations
WWYD Apple
CEO and cofounder Steve Jobs was synonymous with Apple. Fired from Apple in 1985, Jobs founded
NeXT Computer and created Pixar Studios. Then he returned to Apple as CEO in 1995. In his absence,
Apple lost billions and its share of the personal computer market dropped from 9 percent to 2 percent.
Jobs saved Apple by procuring a $150 million investment from Bill Gates and Microsoft and
launching the iMac, a desktop machine that became one of Apple’s leading sellers. Most importantly,
Jobs directed the development of Apple’s new operating system, OS X, which, in combination with
easy–to-use software for film and picture editing, desktop publishing, presentations, and word
processing, stabilized Apple’s sales and market share and put it in a financial position to eventually
create the iPod and iTunes as well as the iPhone, iPad, and now iCloud. Today, its market share is
growing or commanding (tablets and digital music), and its stock value is greater than Intel and
Microsoft combined.
But in the middle of all this success, Jobs’ health became a concern. He took he took medical
leaves in 2004 and 2009, and died in October 2011.
Jobs was known for his highly demanding and influential leadership at Apple. Jobs was also
famous for saying “no.” “We’re always thinking about new markets we could enter. But it’s only by
saying no,” he said, “that you can concentrate on the things that are really important.” Yet, despite his
toughness and discipline, Jobs inspired Apple’s managers, software engineers, and designers to create
elegant, simple, innovative products. Jobs’ charismatic leadership was clearly central to Apple’s
success. The challenge for Apple is how to replace a charismatic leader like Jobs.
One way to gain some insight into this issue is to examine what has happened during Jobs’
extended medical absences from the company. One of Apple’s business partners believes that “creative
tension” waned during Jobs’ absences, replaced by a “play–it–safe ethos.” However, during Jobs’
medical leaves, Apple thrived under the leadership of Tim Cook, who was named CEO after Jobs’
death. His expertise in supply chains ensured the success of such products as the iPod Nano. And like
Jobs, Cook demands much of the people who work for him. Nevertheless, he needs people around him
to make up for his weaknesses in creativity. According to Jez Frampton, group CEO of Interbrand,
“Now the worry is the organization has to rewire itself and learn how to make decisions on its own.”
While many key decisions at Apple were made by Jobs, or by Jobs and his top management
team, Jobs used several approaches to bring in a broader group of managers into Apple’s regular
decision making, a series of meetings where each day is devoted to product development, marketing,
and so on. There is also the annual Top 100 retreat. The 100 are not just the “vice presidents” but
include “key individual contributors” as well. They also work with a high degree of secrecy, even
among Apple employees, such that when the iPod was introduced at a Top 100 meeting, only its
development team knew beforehand. How critical are the Top 100 to running Apple? A former Apple
executive says that, “If he [Jobs] had to recreate the company, these are the 100 people he’d bring
along.” That also suggests that the Top 100 would continue to work together to lead Apple in Jobs’
absence.
Finally, before he passed away, Jobs hired Joel Podolny, formerly Dean of Yale’s School of
Management, to be vice president of human resources and create Apple University. Podolny is
working with a team of business professors to write business cases about the major decisions Apple
has made over the last 15 years, so that a broader group of younger managers can learn how and why
Apple makes decisions. The cases, taught by Apple’s top executives, cover topics such as Apple’s
decision to start Apple stores, or why Apple only has one factory in China that makes iPhones.
According to Fortune magazine, “The goal is to expose the next layer of management to the executive
team’s thought process.” Together, these approaches could prepare Apple without Steve Jobs given his
lasting influence on management during his medical leaves. A former Apple executive says, “You can
ask anyone in the company what Steve wants and you’ll get an answer, even if 90 percent of them have
never met Steve.”
100. Refer to WWYD Apple. Which leadership theory would best tap the creativity of Apple employees
and allow leaders to best emulate the best of Jobs?
a.
trait theory
b.
leadership style theory
c.
normative decision theory
d.
charismatic succession theory
e.
Hersey & Blanchard’s theory
101. What is the purpose of Apple University?
a.
train employees for the Apple Stores
b.
teach and develop readings that document how Steve Jobs and other Apple executives
made decisions
c.
provide Apple managers with degrees
d.
create library of case studies for young managers to honor Steve Jobs
e.
develop charismatic leaders
102. Refer to WWYD Apple. Which quality does Steve Jobs lack as a charismatic leader?
a.
the ability to receive feedback
b.
doing what’s best for himself instead of for Apple
c.
ability to inspire followers to greatness
d.
being highly influential
e.
ability to communicate high expectations to followers
103. Refer to WWYD Apple. Steve Jobs was famous for saying “no.” When he did, he was using which
leadership style?
a.
telling
b.
selling
c.
participating
d.
delegating
e.
experiencing
104. Refer to WWYD Apple. The Top 100 meeting is the venue where Jobs and his managers made
GII-level decisions.
a.
Not really because Steve Jobs is an AI type autocrat.
b.
Yes, because Steve Jobs seeks their advice in making decisions.
c.
No, these meetings only showcase new products.
d.
No, because Jobs never shared decision-making responsibilities.
e.
No, because GII decisions are open to all employees, not just a special few
105. Refer to WWYD Apple. The fact that Steve Jobs hired Joel Podolny can be considered a refutation of
which leadership theory?
a.
normative theory
b.
situational theory
c.
path-goal theory
d.
trait theory
e.
contingency theory
SHORT ANSWER
1. Define leadership and management and explain how leaders and managers approach their jobs
differently.
2. List and briefly identify four of the eight traits that differentiate leaders from non-leaders.
3. What is the difference between honesty and integrity? How is each relevant to effective leadership?
4. What are the two key leader behaviors that are central to successful leadership? How does each
typically influence subordinates?
5. What are the assumptions of Fiedler’s contingency theory? What needs to be done in order to make this
theory practical for use in the workplace?
6. According to the path-goal theory, what are the two leadership styles that parallel the two key
leadership behaviors of initiating structure and consideration? Describe each style.
ANS:
7. Briefly describe the value of the normative decision theory to the practicing manager.
8. Identify and define the components of visionary leadership.
9. Briefly explain the difference between transformational and transactional leadership.
ANS:
ESSAY
1. What is the difference between a leader and a manager? What is the relative importance of leaders and
managers to the success of organizations today?
2. What does management research say about who leaders are and what leaders do? What is the best
leadership style for all situations and employees. Provide an example of a leader that you know of or
have worked with and explain how this individual demonstrates some of the typical characteristics and
behaviors identified by management research as typical of leaders.
ANS:
3. Identify and describe Fiedler’s contingency theory. Explain how this approach might be particularly
valuable to an experienced manager in selecting among several job offers for managerial positions in
different organizational situations.
ANS:
4. Compare and contrast charismatic and transformational leadership. Explain why ethical transgressions
are less likely among transformational leaders than they are among charismatic leaders.
