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c. poor products and low innovation.
d. external promotions that discouraged long time employees.
62. A.G. Lafley, current CEO of Procter and Gamble, is credited with the company’s revival and high
performance. Lafley’s style is best described as:
a. quiet and determined team builder.
b. energetic and loud change master.
c. inspirational and charismatic.
d. focus on financial performance.
63. How does Lafley regard power?
a. Power is not necessary for performance.
b. Power must be shared with all employees.
c. Building a power base starts with expertise and must be backed up with force if
necessary.
d. Power is determined by influence rather than control.
True/False Questions
64. CEOs have considerable impact on the direction and strategy of organizations.
a. true
b. false
65. The definition of leadership is different at different levels of leadership,
a. true
b. false
66. The difference between micro and macro leadership is in the nature of the process.
a. true
b. false
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67. There is usually one person who is the top leader of an organization.
a. true
b. false
68. Dealing with external constituents is central to the function of upper echelon leaders.
a. true
b. false
69. Both micro and macro leaders are effective when they reach their goal.
a. true
b. false
70. There are four strategic forces that are the domain of strategic management
a. true
b. false
71. The environment is the most important of the strategic forces.
a. true
b. false
72. Technology is the process by which inputs are transformed into outputs.
a. true
b. false
73. The environment is made up of all the factors outside an organization that have the potential to affect
it.
a. true
b. false
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74. The structure of an organization refers to how leadership is organized.
a. true
b. false
75. The company Jagged Edge Mountain Gear provides an example where strategic forces are not in
balance and do not fit one another.
a. true
b. false
76. Strategic leaders must balance the various strategic forces and create a fit among them.
a. true
b. false
77. Upper echelon leaders often formulate, but do not implement strategy.
a. true
b. false
78. Upper echelon leaders often have unlimited power and influence in all aspects of decision making in
their organizations.
a. true
b. false
79. The leader’s role becomes more prominent when an organization faces an uncertain environment.
a. true
b. false
80. Because mergers often create a sense of crisis and lead to internal chaos, employees rely less on their
leadership.
a. true
b. false
81. CEOs of very large organizations have considerably more impact on their organizations.
a. true
b. false
82. CEOs often have stronger impact in young organizations.
a. true
b. false
83. Mickey Drexler, CEO of J. Crew, was unsuccessful at changing the culture and focusing on the long-
term good of the company.
a. true
b. false
84. Powerful boards or TMTs are often needed to provide balance to the growing power of CEOs.
a. true
b. false
85. The task-relationship dimensions used in micro level leadership have strong applications to upper
level leadership.
a. true
b. false
86. Research indicates that CEOs who are older men tend to be more externally oriented and more
innovative in their strategic choices.
a. true
b. false
87. CEOs who are risk-takers and open to change perform better than those who are not.
a. true
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b. false
88. Monica Luechtefeld, e-commerce chief of Office Depot, is an example of a challenge seeker.
a. true
b. false
89. CEOs who encourage diverse opinions and put into place few rules often perform better than those
who tightly control their organizations.
a. true
b. false
90. CEOs who control their organizations tightly are often successful in implementing various projects
such as increasing diversity.
a. true
b. false
91. Mickey Drexler of J.Crew and A.G. Lafley of P&G both are high control leaders.
a. true
b. false
92. A high-control innovator has a high need for control and seeks challenges.
a. true
b. false
93. A status-quo guardian seeks challenges and needs high control.
a. true
b. false
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94. A participative innovator delegates control inside his/her organization and is a risk-taker.
a. true
b. false
95. A process manager delegates control inside the organization and is a risk-taker.
a. true
b. false
96. Jamie and Victor Tsao, founders of Linksys, are participative innovators.
a. true
b. false
97. Mickey Drexler, former CEO of the Gap, is an example of a status quo guardian.
a. true
b. false
98. High-control innovators will seek innovative strategies that stay close to their current businesses.
a. true
b. false
99. Status-quo guardians will protect their organizations from the outside and hire people who are similar
to them.
a. true
b. false
100. Participative innovators are open to new strategies and decentralize decision making.
a. true
b. false
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101. Process managers avoid risk and centralize decision making.
a. true
b. false
102. Jon Brock, CEO of InBev, represents a process manager.
a. true
b. false
103. Ricardo Semler, CEO of Semco, is an example of a participative innovator.
a. true
b. false
104. The type of strategic leader that will be effective depends on various organizational factors.
a. true
b. false
105. The more participative strategic leaders who encourage participation and empowerment are
usually better and more effective CEOs.
a. true
b. false
106. Cross-cultural research shows different patterns of leadership based on culture, but those
differences do not apply to upper echelon leadership.
a. true
b. false
107. CLTs suggest that Anglo and Latin American value leaders who have visions are more
inspirational more than Middle Easterners.
a. true
b. false
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108. The French upper echelon leaders are generally more open to change and non-hierarchical than
leaders at other levels of French organizations.
a. true
b. false
109. The French upper management tends to have considerable power and authority.
a. true
b. false
110. Some research suggests that upper echelon female leaders tend to have a lower need for control
than their male counterparts.
a. true
b. false
111. Female upper echelon leaders often focus less on power acquisitions than their male
counterparts.
a. true
b. false
112. One of the most powerful ways upper echelon leaders influence others is through direct decisions
regarding vision, mission, strategy, and structure.
a. true
b. false
113. One of the ways Jeff Bezos, CEO of Amazon.com, influences the direction of his organization is
by deciding where resources will go.
a. true
b. false
114. CEOs often control the formal, but not the informal, reward system of their organizations.
a. true
b. false
115. Role modeling is often an ineffective way for CEOs to try to influence the behavior of others in
their organizations.
a. true
b. false
116. The CEO salaries of large U.S. companies have consistently been at least twice as high as CEOs
in other industrialized countries.
a. true
b. false
117. Data on executive salaries and firm performance shows a clear relationship between the two.
a. true
b. false
118. Many poorly performing upper echelon leaders continue to keep their jobs in spite of poor
performance.
a. true
b. false
119. The more global a company, the higher the compensation of its CEO.
a. true
b. false
120. In almost all cases, poorly performing CEOs are eventually fired because of their lack of
performance.
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a. true
b. false
121. Many CEOs are simply not held accountable for their poor performance or even unethical
behavior.
a. true
b. false
122. Nonprofit organizations do not have distinguishing characteristics from for-profit organizations.
a. true
b. false
123. Nonprofit organizations are largely based on principles of altruism and self-sacrifice.
a. true
b. false
124. There is typically a surplus of adequately qualified leaders willing to move into positions with
nonprofit organizations.
a. true
b. false
125. Effective leadership in nonprofit organizations requires empowerment.
a. true
b. false
126. A.G. Lafley of Proctor & Gamble is an example of the typical power U.S. executives hold and
how they use it.
a. true
b. false
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Short Answer/ Essay Questions
127. Discuss the differences between micro and macro leadership.
128. Explain the concept of top management team TMT and what dynamics influence its composition.
129. List and explain the six strategic forces impacting senior leadership style.
130. What is meant by the statement: “… as an organization matures the leader’s influence is replaced
by a strong culture? “ Give examples.
131. Explain how diversity on the governing board has both good and bad consequences.
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132. Does the increasing pressure toward empowerment mean that empowering employees is a more
desirable style of leadership? Explain.
133. Explain the differences between the participative innovator and the status quo guardian.
134. Explain the positive and negative aspects of the French “cadre.”
135. Discuss what variables contributed to the dramatic increase between CEO salaries in the U.S. and
the average American worker, between the years of 1978 and today. Explain your opinion of whether
that trend and difference is good or bad for America.
136. How is it that CEOs can do a poor leadership job with their company and still keep their jobs and
receive substantial salary increases?