43) Leslie is a middle-level production manager at the California branch of ALT Corp. ALT
Corp. is an automobile manufacturing company that specializes in the manufacture of heavy
motor vehicles. Leslie’s job is to supervise his assembly line employees. Leslie has worked in
this position for over four years, and he strongly believes that a supportive leadership style is
most suitable in his context. Which of the following, if true, would weaken Leslie’s approach to
leadership in this case?
A) The company is planning to lay off some employees in the near future.
B) The company has stopped the production of most of its older models as it wants to focus on
the most profitable models.
C) The assembly line jobs are routine and highly structured by nature.
D) The recent round of OSHA inspections revealed that many assembly line employees were not
complying with stipulated safety measures.
E) The company’s workforce is comprised primarily of employees of the baby boomer
generation.
44) Max Hiller was recently hired by Sync, a consumer goods company. During his first meeting
with the sales team, Max impressed upon his team that work performance is the only criterion he
would use to evaluate them. To help them perform well and meet their targets, he pushed his
team to work extra hours. He also gave very clear instructions to each member regarding their
job responsibilities and continually verified if they were meeting their targets. Which of the
following, if true, would weaken Max’s approach?
A) Max is leading many new employees who have joined his team directly after training.
B) Max’s team functions in a sluggish manner and picks up pace only a week or so before the
monthly operations cycle meetings.
C) Max’s sales team is comprised of independent and experienced employees who are committed
to their jobs.
D) Max’s team does not display high levels of cohesiveness, and members fail to coordinate with
each other.
E) Sales figures for the region that Max’s team is responsible for have improved in the last
quarter.
45) The leader-participation model focuses on ________.
A) the personality traits of leaders
B) the presence of charisma in the leader
C) the way decisions are made by the leader
D) the mere projection of successful leadership by the leader
E) the use of ingroups by the leader
46) Which of the following leadership theories argues that because of time pressures, leaders
establish a special relationship with a small group of their subordinates—the ingroup, who are
trusted, get a disproportionate amount of the leader’s attention, and are more likely to receive
special privileges?
A) situational leadership theory
B) leader-member exchange
C) path-goal
D) expectancy
E) Fiedler’s theory
47) According to the LMX theory, a leader implicitly categorizes followers as “in” or “out”
________.
A) after careful performance analysis
B) on a temporary basis
C) early in the interaction
D) because of political pressure
E) only after several months of working together
48) In her first few weeks at the marketing division of Rolland Retails, Judith Cox realized that
Joshua, Doug, and Carl were closer to her manager, Eric Scott, than the other five team
members. Eric, Joshua, Doug, and Carl came to work at the same time, were seen together at the
cafeteria, and stayed late and worked when the need arose. In contrast to them, the other five
team members did the routine jobs assigned to them, and their interactions lacked the
understanding and camaraderie that Eric shared with the others. Joshua, Doug, and Carl make up
Eric’s ________.
A) out-group
B) reference group
C) nominal group
D) ingroup
E) peripheral group
49) In her first few weeks at the marketing division of Rolland Retails, Judith Cox realized that
Joshua, Doug, and Carl were closer to her manager, Eric Scott, than the other five team
members. Eric, Joshua, Doug, and Carl came to work at the same time, were seen together at the
cafeteria, and stayed late and worked when the need arose. While Judith was in training, she
received very good feedback from Eric, and as she transitioned to the floor, she felt that Eric was
giving her interesting projects, allowing her more freedom, and seeking her opinion frequently.
The information provided in the scenario supports the prediction that ________.
A) Judith will develop low trust propensity toward Eric
B) Joshua, Doug, and Carl will display low trust propensity in Judith
C) Eric’s ingroup will remain a reference group for Judith permanently
D) Judith will become a part of Eric’s ingroup in the marketing division
E) Judith will have lower levels of identification-based trust with Eric when compared to other
trainees
50) Which theory of leadership proposes that followers attribute heroic or extraordinary
leadership abilities when they observe certain behaviors?
A) situational leadership theory
B) path-goal leadership theory
C) transactional leadership theory
D) behavioral leadership theory
E) charismatic leadership theory
51) According to evidence, what is the first step a charismatic leader takes to influence
followers?
A) developing a formal vision statement
B) engaging in emotion-inducing and often unconventional behavior
C) setting an example for followers through actions and words
D) articulating an appealing vision
E) communicating high performance expectations
52) The third step in the process of charismatic leadership involves ________.
A) the leader conceptualizing a long-term strategy for attaining a goal by linking the present with
a better future for the organization
B) the leader conveying a new set of values and setting an example for followers to imitate
C) the charismatic leader engaging in emotion-inducing behaviors to ensure that employee
commitment is generated
D) the leader using unconventional behavior to demonstrate courage and conviction about the
vision
E) the leader providing a formal articulation of an organization’s vision or mission to guide his
followers
53) Leaders who function primarily by clarifying role and task requirements to accomplish
established goals exhibit a(n) ________ style of leadership.
A) transformational
B) transactional
C) charismatic
D) laissez-faire
E) employee-oriented
54) A transactional leader is likely to ________.
A) reward employees for the work that they have done, thus recognizing accomplishments
B) help followers trust the leader and develop a loyalty toward the common vision
C) stimulate others in the organization to become thinkers of what the organization is all about
D) pay attention to the emotional needs of others and consider individual differences
E) avoid authoritarian, command, and control behaviors when dealing with employees
55) Which of the following scenarios reflects a transactional approach to leadership?
A) Samuel Perez has been running a small automobile service agency with a set of employees
that he hired and trained over a decade ago. Though the business is mediocre and profit margins
are not substantial, the employees work well as a team because each of them treats the other as
equal, just like Samuel himself does.
B) Carol Turner began V Care, a non-profit organization, with the purpose of battling various
forms of abuse. As the organization grew, she took care to hire employees who felt the same
kind of sensitivity she felt for victims of abuse. Today, she openly proclaims that the
organization that she started is successful because every single employee shares and understands
what the organization is aiming for.
C) When new projects come, it is a time of excitement for the content production team of
Impact, an advertising agency. Lori Wood, the department head, begins a project meeting by
having her whole team envision what the final product of this campaign must aim at. She then
sets progressively higher standards for the team and clarifies what each member of the team
stands to gain if the project is a success. In allocating roles and tasks, she often incorporates the
needs and preferences of her team members.
D) Wayne Torres believes that setting targets, monitoring employee performance, and correcting
defaulting employees are his tried and tested ways to accomplish tasks. He rewards employees
who do well and match his predetermined expectations and recognizes accomplishments that he
values. His team, however, has not grown substantially and seems to be at a functional status
quo.
E) Glenn Cruzz works at Leverage as a senior consultant. She ensures that her team of
consultants has a framework of flexible tools and skills to help clients who come their way with
diversity and inclusion issues. Through audits, research, and workshops, her team is encouraged
to come up with unconventional solutions that help clients establish and leverage its employee
diversity.
56) ________ leaders inspire followers to transcend their self-interests for the good of the
organization and can have an extraordinary effect on their followers.
A) Transformational
B) Transactional
C) Task-oriented
D) Laissez-faire
E) Production-oriented
57) Transformational leaders enhance performance of employees by ________.
A) restricting creativity among employees
B) focusing on short-term goals for employees
C) building consensus among employees
D) establishing goals, roles, and requirements
E) abdicating all responsibility to employees
58) In terms of the full range of leadership models, which leadership behavior is the least
effective?
A) management by exception (active)
B) contingent reward
C) management by exception (passive)
D) individualized consideration
E) laissez-faire
59) Which of the following leadership behaviors is likely to differentiate between transactional
and transformational leaders?
A) management by exception (active and passive)
B) contingent reward
C) individualized consideration
D) micromanagement
E) laissez-faire
60) In terms of the full range of leadership models, which leadership behavior represents the
most active and effective approach for leaders?
A) contingent reward
B) idealized influence
C) management by exception (active)
D) individualized consideration
E) laissez-faire
61) In the context of the Fiedler contingency model, leader-member relations measures the
degree of influence a leader has over power variables such as hiring, firing, discipline,
promotions, and salary increases.
62) The situational leadership theory focuses on follower readiness to determine the appropriate
leadership behavior.
63) According to the path-goal theory, directive leadership is likely to be welcomed and accepted
by employees with high ability or considerable experience.
64) The leader-member exchange (LMX) theory proposes that the leader implicitly categorizes
the follower as belonging to his ingroup or out group after a detailed analysis of his or her
performance over a prolonged period of time.
65) Charismatic leadership places somewhat more emphasis on the way leaders communicate
(are they passionate and dynamic?), while transformational leadership focuses more on what
they are communicating (is it a compelling vision?).
66) Charismatic leadership is a manifestation of innate traits, and it cannot be learned or
enhanced.
67) Transactional leaders guide their followers toward established goals by clarifying role and
task requirements.
68) Intellectual stimulation and individualized consideration are likely to be seen in the
management by exception (active) style of leadership.
69) Transformational leadership has a greater impact on the bottom line in smaller, privately held
firms than in more complex organizations.
70) The HR department at Basic Elements, a software development firm, has begun testing
employee personality and preferences to reorganize their teams such that team members and
leaders are matched. They believe that this will enable them to ensure smooth functioning and
greater cohesion. As a part of this test, employees were given the least preferred co-worker
questionnaire. The employees were asked to think of all the co-workers they had in the past and
describe the one they least enjoyed working with by rating that person on a scale of 1 to 8 for
each of 16 sets of contrasting adjectives. Rachel’s LPC score was high, while Victor’s was low.
Many employees like Ashley had LPC scores that were moderate. Interpret and compare the
results of Rachel, Victor, and Ashley.
71) According to the Fiedler model of leadership, how can leader effectiveness be improved?
72) Describe the path-goal theory of leadership.
73) What are the key characteristics of charismatic leaders?