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Chapter 7: Other Leadership Perspectives: Upper Echelon and Leadership of
Nonprofits
Multiple Choice Questions
1. The difference between micro and macro level leadership is in the _________ and ___________.
a. definition; process
b. level; scope
c. type; focus
d. performance level; definition
2. In micro leadership, the leader focuses on __________ factors, while macro leaders focus on
___________ issues.
a. internal; external
b. people; task
c. financial; performance
d. team; department
3. Which of the following is not considered to be part of the upper echelon leadership of an
organization?
a. president
b. chief operating officers
c. top management team
d. top department leader
4. The job of upper echelon leaders requires an equal focus on:
a. internal/external
b. people/task
c. financial/performance
d. teams/departments
5. Micro leaders are typically evaluated as effective based on , whereas upper echelon leaders are
typically evaluated based on .
a. employee satisfaction; stock prices
b. motivation; absenteeism
c. stakeholder satisfaction; employee satisfaction
d. productivity; financial measures
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6. How many strategic forces are in the domain of strategic leadership?
a. two
b. four
c. six
d. eight
7. Which one of the following is not one of the strategic forces that impact organizations?
a. culture
b. environment
c. technology
d. management
8. Structure is best defined as:
a. the way human resources are organized.
b. the process by which inputs are transformed into outputs.
c. a common set of beliefs.
d. the internal factors that affect an organization.
9. includes all of the outside forces that potentially affect the organization.
a. Environment
b. Structure
c. Technology
d. Strategy
10. The Jagged Edge Mountain Gear company provides an example of:
a. the role of strategic planning.
b. the key role of the CEO.
c. the importance of the fit among strategic factors.
d. the link between upper level leadership and strategy.
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11. When do upper echelon leaders have a primary responsibility to formulate strategy for an
organization?
a. When an organization is looking for strategic redirection.
b. When a successful strategy is in place.
c. When the environment is uncertain.
d. When stakeholders have power to make decisions that impact the organization.
12. Two general sets of factors moderate the power and discretion of executives. These include:
a. employees and other managers.
b. environmental factors and stakeholders.
c. external factors and organizational factors.
d. leadership factors and market issues.
13. Which is not an external environmental factor that moderates the power of leaders?
a. environmental uncertainty
b. market growth
c. industry type
d. organizational culture
14. The ___________ the organization, the __________ the power and discretion of its top leader.
a. more complex; less
b. more diverse; more
c. smaller; more
d. more uncertain; less
15. A sense of crisis sets the stage for:
a. poor performance.
b. emergence of charismatic CEOs.
c. a decrease in CEO discretion.
d. stakeholders to exercise more power.
16. Anthony has just become the CEO of a company that has been around for over 100 years and has
been steadily declining. As Anthony takes on his new job, he finds that he has considerable power
and influence to make decisions and implement them. Anthony’s discretion is an example of:
a. the typical powers of CEOs
b. the increase of CEO discretion in times of crisis.
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c. how older companies still have traditional power structures.
d. the effectiveness of the fit between CEO characteristics and organizational factors.
17. In successful companies, the well established culture and procedures often _______________.
a. reduce the impact of teams
b. provide increased discretion to the leader
c. increase the power of the leader
d. act as substitutes for the CEO
18. As organizations grow and mature, the leader’s influence is often replaced with:
a. the influence of teams.
b. the power of middle management.
c. the presence of a strong culture.
d. individual decision making.
19. Mickey Drexler, former CEO of the Gap and current CEO at J. Crew, had considerable power and
discretion while he was with the Gap because:
a. he is an effective CEO.
b. he was well-liked by his employees.
c. the company board of directors was weak and ineffective.
d. the company was new and in need of revival.
20. The _____________, the less the power and discretion of the CEO.
a. less uncertainty in the environment
b. stronger the TMT
c. younger the organization
d. more cohesive the organization
21. The case of Larry Ellison, Safra Catz, and Mark Hurd at Oracle is an example of:
a. the role of culture in CEOs’ behavior and decisions.
b. the impact of partnerships on leader power.
c. the negative effect of a poor economy on CEO performance.
d. the negative impact of arrogance on CEOs.
22. As a general rule, the power and discretion of the CEO increase when:
a. the TMT members are similar to the leader.
b. the CEO has considerable international experience.
c. the company goes public
d. a board of directors is put in place to help the CEO
23. The XYZ organization is headed by the 60 year old Rodger Smith who has been with the company
for 25 years and CEO for the past 5 years. XYZ has performed well under his leadership. Based on
research about upper echelon leaders, which of the following is most likely to happen?
a. Rodger will continue performing well by changing course as the need for change arises.
b. Rodger’s performance is likely to go down, since most CEOs are not effective beyond 5
years.
c. Rodger is likely to engage in international venture because most people in his generation
have international experience.
d. Rodger is likely to lead XYZ the same way he has been for the past 5 years, without
making major changes.
24. Which type of CEO of less likely to change an organization.
a. a high Machiavellian
b. an insider
c. a younger outsider
d. a type B personality
25. Entrepreneurship, openness to change, transformational leadership, and futuricity are all part of which
characteristic of upper echelon leaders?
a. external orientation
b. individualism
c. challenge seeking
d. risk-taking
26. How open a leader is to change and how willing he/she is to take risks is most important and relevant:
a. in small organizations.
b. during the formulation of strategy.
c. in times of crisis when high-risk decisions often pay off.
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d. in certain environments.
27. Tolerance for diversity, extent of centralization, degree of employee participation, and organicity are
all part of which characteristic of upper echelon leaders?
a. internal orientation
b. collectivism
c. need for control
d. risk-aversion
28. Which characteristic of CEOs would be more likely lead to an organization with centralized decision
making, low delegation, and a low focus on process?
a. an internally focused CEO
b. a collectivist leader
c. a CEO with low need for control
d. a leader who likes risk-taking
29. Mickey Drexler, former CEO of the Gap is an example of:
a. arrogant leaders who can’t work with others.
b. creative CEOs who are open to change.
c. CEOs of large companies that failed because of their leadership.
d. CEOs who have a high need for control.
30. Zhen does not like change much and empowers his employees to make their own decisions. Which
strategic leadership type is he?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
31. Maleeni enjoys new situations, likes taking risks, and believes that leaders should delegate decision
making to the lowest possible level. Which strategic leadership type is she?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
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d. Process manager
32. Stephen has always enjoyed new challenges and feels most comfortable when he has a tight control of
his employees. Which strategic leadership type is he?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Product manager
33. Ashley is most comfortable when she is fully in charge of her group and likes to keep things as they
are. Which strategic leadership type is she?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
34. Jeffrey Katzenberg, CEO of Dreamworks, is an example of a
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
35. Janie and Victor Tsao, founders of Linksys, are examples of:
a. High-control innovators
b. Participative innovators
c. Status quo guardians
d. Process managers
36. Which one of the strategic leaders implements the latest high-technology innovations in his/her
organization, builds a strong dominant culture, and hires managers who are similar to him/her?
a. High-control innovator
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b. Participative innovator
c. Status quo guardian
d. Process manager
37. Which one of the strategic leaders tries to protect the organization from the impact of outside forces,
encourages a fluid culture, and emphasizes efficiency?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
38. Which one of the strategic leaders will focus on efficiency and protecting the organization from
change and build a centralized and homogeneous organization?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
39. Which of the strategic leaders will open his/her organization to the outside, engage in high risk
strategies, and empower employees to make decisions?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
40. Jon Brock, CEO of InBev, represents which type of strategic leader?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
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41. Ricardo Semler, CEO of Semco, is an example of which type of strategic leader?
a. High-control innovator
b. Participative innovator
c. Status quo guardian
d. Process manager
42. Culturally endorsed leadership theories (CLTs) were proposed by __________.
a. GLOBE researchers
b. Hofstede
c. Trompenaars
d. Hall
43. According to the culturally endorsed leadership theories, which cultures most value leaders who are
inspirational and provide a vision?
a. Middle Easterners and Southern Europeans
b. Latin Americans and Nordic Europeans
c. Eastern Asians and Africans
d. Southwestern Asians and Germans
44. As a manager who practices participation and empowerment, your style of leadership is likely to be
most appreciated by:
a. Eastern Europeans
b. Middle Easterners
c. Nordic Europeans
d. Asians
45. Which of the following terms best represent the typical characteristics of French upper management,
or “cadre”?
a. participative, creative, and highly technical
b. stubbornness, control, and practical application
c. empowerment, focus on efficiency, and flexible
d. intellectual brilliance, excellent communication, and analytical skills
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46. The common thread among many female executives is:
a. the fear of failure
b. employee empowerment
c. lack of international experience
d. strong financial skills
47. Which of the following is not one of the processes leaders use to influence their organizations.
a. direct decisions
b. laissez-faire
c. selection of other leaders
d. role modeling
48. Which is not one of the primary methods top echelon leaders use to affect their organizations?
a. direct decisions
b. allocation of resources
c. setting norms
d. assessing employees skills
49. Jeff Bezos, CEO of Amazon.com, decided to focus his organization on staying on top of
technological developments. This is an example of how CEOs affect their organization through:
a. allocation of resources
b. selection of other leaders
c. role modeling
d. technology management
50. Ming Tsao rarely openly comments on or criticizes his managers and employees’ actions. Instead, he
carefully selects those he believes have potential, invites them to attend meetings and social events,
and allows them to spend more time with him. Ming’s behavior is an example of which processes
upper echelon leaders use to influence their organization?
a. direct decisions
b. role modeling
c. informal reward system
d. promotions
51. In the examples provided in your book, Feargal Quinn, the CEO of the Irish supermarket chain
Superquinn, and James Rogers of Duke Energy rely on ___________ to influence their employees
and organizations.
a. direct decisions
b. role modeling
c. informal reward system
d. promotions
52. In 2012, the average salary of CEOs in Standard and Poor’s top 500 companies was:
a. Over $4 million
b. between $400,000 and $800,000
c. between $2 and $4 million
d. a little over $1 million
53. In 2012, the average CEO salary was times the salary of a minimum wage worker.
a. 151
b. 354
c. 532
d. 821
54. What do Patricia Woertz of Archer Daniels Midland, James McNemey of Boeing, and Ray Gilmartin
of Merck have in common?
a. They are all CEOs of profitable companies.
b. They all got considerable pay increases while their companies performed poorly.
c. They all have been accused of ethical violations regarding corporate governance.
d. They were all fired for poor performance.
55. Which of the following is not a factor in determining a CEO’s compensation?
a. Company size
b. Competition within the industry
c. Internationalization
d. Company performance
56. One argument in support of the high executive packages is that:
a. higher pay leads to higher performance
b. the high salaries are needed to prevent CEOs from abusing their power
c. CEO jobs are demanding and unstable
d. U.S. CEOs are among the best in the world
57. Which is not a distinguishing characteristic of nonprofit organizations?
a. operate without profit
b. public service mission
c. governed by paid board of directors
d. funded through contributions
58. Which is not a nonprofit organization?
a. Stanford University
b. Proctor and Gamble
c. Planned Parenthood
d. National Association for the Advancement of Colored People NAACP
59. The public-good mission of nonprofits, along with voluntary participation of many contributors
requires leaders to engage in a style.
a. directive
b. collaborative
c. authoritative
d. task-oriented
60. According to the Bridgespan Group’s 2006 study, there are the number of nonprofit
organizations compared to 20 years ago.
a. two times
b. three times
c. five times
d. ten times
61. Prior to the year 2000, Procter and Gamble had a reputation for:
a. encouraging employee creativity and non-conformity.
b. providing clear guidelines for everything employees did.