Chapter 14: Leadership
TRUE/FALSE
1. Leadership is the process of influencing others to achieve group or organizational goals.
2. One of the differences between managers and leaders is that managers focus on visions, missions,
goals, and objectives, and leaders focus solely on productivity and efficiency.
3. As the manager at a McDonald’s restaurant, Bob is more likely to worry about how fast orders from
the drive-through window are filled than the company’s long-term operating expenditures.
4. The primary difference between leaders and managers is that leaders are concerned with doing the
right thing, and managers are concerned with doing things right.
5. Whereas managers tend to have a short-term perspective, leaders tend to have a long-term perspective.
6. Subordinate, task, or organizational characteristics that make leaders redundant or unnecessary are
called leadership neutralizers.
7. Ability, experience, training and knowledge in subordinates may neutralize people-related leadership
behaviors and either substitute for or neutralize task-related leadership behaviors.
8. According to the “Doing the Right Thing” box, 35 percent of companies in a recent survey believe that
a CEO succession plan was critically important to the organization.
9. Leadership substitutes create a need for leadership by preventing leadership from working.
10. According to the trait theory, all effective leaders possess a similar set of traits or characteristics.
11. Since there are no consistent trait differences between leaders and nonleaders, or between effective and
ineffective leaders, trait theory is wrong.
12. The leadership trait of integrity refers to the extent to which leaders do what they said they would do.
13. As a leader behavior, initiating structure is the degree to which a leader structures the roles of
followers by setting goals, giving directions, setting deadlines, and assigning tasks.
14. As a leader behavior, consideration refers to the extent to which leaders do what they said they would
do.
15. Initiating structure leader behavior has also been referred to as “job-centered leadership” and “concern
for production.”
16. Consideration leader behavior has also been referred to as “concern for people” and
“employee-centered leadership.”
17. While consideration primarily affects subordinates’ job performance, initiating structure primarily
affects subordinates’ job satisfaction.
18. Researchers believe leaders can simultaneously be considerate and initiate structure because
consideration and initiating structure are independent behaviors.
19. The four major situational leadership theories all assume that the effectiveness of any leadership style
(the way a leader generally behaves toward followers) depends on the situation.
20. There is no such thing as a “best” leadership style for all situations and employees.
21. Fiedler’s contingency theory is based on the assumption that leaders are capable of adapting and
adjusting their leadership styles to fit the demands of different situations.
22. Fiedler’s contingency theory states that in order to maximize work group performance, leaders must be
matched to the right leadership situation.
23. In Fiedler’s contingency theory, the two situational factors that determine the favorability of a situation
are leader-member relations and task structure.
24. Fiedler’s contingency theory has been successfully used to place leaders in appropriate situations
where they can perform most efficiently.
25. Fiedler’s contingency theory has proven easy for practicing managers to understand and apply.
26. Directive leadership of the path-goal theory is similar to the key leadership behavior of initiating
structure.
27. Within the path-goal model, the achievement-oriented and participative leadership styles directly
parallel the key leadership behaviors of initiating structure and consideration, respectively.
28. Directive leadership is a leadership style in which leaders set challenging goals, have high expectations
of employees, and display confidence that employees will assume responsibility and put forth
extraordinary effort.
29. Virginia blames the fact that she is always late to work on traffic rather than her inability to get up
early. She probably has a high external locus of control.
30. Within the path-goal model, the achievement-oriented and participative leadership styles directly
parallel the key leadership behaviors of initiating structure and consideration, respectively.
31. Hersey and Blanchard’s situational theory is based on the idea of worker readiness.
32. The two components of worker readiness are physical readiness and emotional readiness.
33. Robert Haas, CEO of Levi Strauss & Company, has been described as very detail oriented, which
means that he probably wouldn’t use a delegating style of management.
34. The normative decision theory helps leaders decide how much employee participation should be used
when making decisions.
35. According to the normative decision theory, using the right degree of employee participation improves
the quality of decisions and the extent to which employees accept and are committed to decisions.
36. In terms of research evidence, the path-goal theory has been described as the best supported of all
leadership theories.
37. Commitment probability, subordinate conflict, and commitment requirement rules are used to increase
employee acceptance of and commitment to decisions.
38. Strategic leadership is defined as the ability to think strategically and create a strategic plan for an
organization.
39. Eddy Groves, the founder of ABC Learning Centres, once the world’s largest child-care company, saw
the need for child-care long before most entrepreneurs did. Groves acted as a tactical leader.
40. Transformational leadership is leadership that 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.
41. While transformational leaders use visionary and inspirational appeals to influence followers,
transactional leadership is based on an exchange process.
42. The three components of transformational leadership are charisma, a strong internal locus of control,
and strong position power.
MULTIPLE CHOICE
1. Effective managers define ____ as the process of influencing others to achieve group or organizational
goals.
a.
management
b.
leadership
c.
interpersonal influence
d.
supervision
e.
autonomy
2. Which of the following is a major concern of managers (as opposed to leaders)?
a.
maintaining the status quo
b.
inspiring and motivating others
c.
taking a long-term view
d.
promoting change
e.
organizational improvements
3. One of the criticisms of the television industry is the networks’ desire to maintain ratings by thinking in
terms of next week’s programming. The networks are also more concerned with how to get high
program ratings than achieving the ratings through giving viewers time to become acquainted with
high-quality programs. Problem solving in terms of show placement or guest stars seems to be more
important than inspiring great television innovations. This criticism assumes:
a.
doing the right things is more important than doing things right in the television industry
b.
the television industry benefits from strong leadership
c.
long-term strategy is more important than tactics in the television industry
d.
the television industry has a shortage of effective leadership
e.
the television industry attracts more architects than builders
4. Which of the following is a major concern of leaders (as opposed to managers)?
a.
controlling and limiting the choices of others
b.
solving problems so that work can be done
c.
preserving the status quo
d.
inspiring and motivating others
e.
a focus on productivity and efficiency
5. Ford Motor Company has always attracted and nurtured capable managers, but it has failed to do the
same for leaders. So, as part of the automaker’s organizational cultural overhaul, Ford is embarking on
a sweeping attempt to mass-manufacture leaders. It wants to build an army of “warrior-entrepreneurs.”
Ford’s “warrior-entrepreneurs” will be expected to:
a.
take a long-term perspective
b.
inspire and motivate employees to embrace change
c.
realize that results are more important than processes
d.
be architects rather than builders
e.
do all of these things
6. Airline companies have blamed their recent financial problems on labor unions, the events of
September 11, and a weak economy. Those airlines in financial difficulties have tried to solve the
problem through short-term price reductions, firings and early retirements, and asking for employees
to take pay cuts. The CEOs of these companies have not tried to motivate employees to create
long-term solutions to the problems facing the companies. The CEOs of these troubled companies:
a.
are true leaders
b.
are more interested in doing the right thing than doing things right
c.
are promoting long-term change
d.
tend to focus on organizational visions, missions, goals, and objectives rather than
organizational efficiency and productivity
e.
are more than likely managers rather than leaders
7. When Jack Welch went to work for General Electric, he immediately began to make drastic changes in
the company’s structure and product lines. He envisioned a bloated, inefficient General Electric
becoming an efficient, profitable organization over time. He inspired and motivated his employees to
change. Jack Welch:
a.
would be characterized as a leader
b.
had a short-term perspective
c.
emphasized means rather than ends
d.
acted as a builder rather than an architect
e.
would be characterized as a manager
8. Which of the following statements about leaders and managers is true?
a.
Organizations need both leaders and managers.
b.
Leaders are critical to getting out the day-to-day work.
c.
Managers are critical to inspiring employees and setting long-term direction.
d.
Most organizations place greater emphasis on leadership than on management.
e.
All of these statements about leaders and managers are true.
9. The term __________ refers to subordinate, task, or organizational characteristics that make leaders
redundant or unnecessary.
a.
leadership substitutes
b.
leadership neutralizers
c.
leadership favorableness
d.
leadership contingencies
e.
leader behavior formalization
10. The term __________ refers to subordinate, task, or organizational characteristics that can interfere
with a leader’s actions or make it impossible for a leader to influence followers’ performance.
a.
leadership substitutes
b.
leadership neutralizers
c.
leadership favorableness
d.
leader behavior formalization
e.
leadership contingencies
11. __________ create a need for leadership.
a.
Leadership substitutes
b.
Leadership neutralizers
c.
A narrow span of management
d.
Mentors
e.
Leader liaisons
12. Which of the following subordinate characteristics can act as a leadership substitute for either
task-related or people-related leadership behavior?
a.
cohesive work groups
b.
inflexible rules and procedures
c.
spatial distance between supervisors and subordinates
d.
an intrinsically satisfying job
e.
a professional orientation
13. Which of the following organizational characteristics may act as either a leadership substitute or a
leadership neutralizer for both task-related and people-related leadership behaviors?
a.
ability, experience, training, and knowledge
b.
unambiguous and routine tasks
c.
cohesive work groups
d.
spatial distance between supervisors and subordinates
e.
individual needs for independence
14. When Robert Haas became the CEO of Levi Strauss & Company, he wanted to change the company’s
mission from dressing the world in riveted denim to proving that a company driven by social values
could outperform a one driven by profits. Soon all Levi’s employees were attending the company’s
“core curriculum,” a three-part, ten-day course covering leadership, diversity, and ethical
decision-making. Unfortunately, the organizational culture at Levi Strauss prevented its employees
from embracing this new mission and made it difficult for Haas to implement innovation. The
organizational culture acted as a_____.
a.
leadership substitute
b.
leadership neutralizer
c.
leadership favorableness metric
d.
leader behavior formalization barrier
e.
leadership contingency
15. Anderson & McGowan is an accounting firm that specializes in conducting government audits. When
either partner in the company sends an auditing team to a work site, he does not have to be concerned
about assuming any task-related leadership behavior because the teams have such a professional
orientation. This professional orientation acts as a(n):
a.
mentoring device
b.
organizational control
c.
leadership substitute
d.
gatekeeper
e.
autonomous link
16. Sources of leadership substitutes and of leadership neutralizers are:
a.
top management, subordinates, and stakeholders
b.
top management, the task, and subordinates
c.
the organization, the industry, and the task
d.
top management, the industry, and the subordinates
e.
the task, the organization, and the subordinates
17. Relatively stable characteristics such as abilities, psychological motives, or consistent patterns of
behavior, form the basis for the ____ of leadership.
a.
situational theory
b.
behavioral theory
c.
trait theory
d.
expectancy theory
e.
path-goal theory
18. According to an article from CIO Magazine, “Leadership grows from courage and integrity.” From this
opening statement, you know the article will discuss leadership from the:
a.
University of Michigan perspective
b.
trait theory viewpoint
c.
situational approach to leadership
d.
motivational approach to leadership
e.
Hersey and Blanchard perspective
19. The “great person” theory is another name for the ____ theory of leadership.
a.
trait
b.
behavioral
c.
situational
d.
path-goal
e.
leader formalization
20. Chang Yung-fa is the chairman of the Evergreen Group and founder of the world’s third—largest
shipping company. Chang was born a sailor’s son and began his international company with one
second-hand boat. Today, he is the head of Taiwan’s biggest business conglomerate. Chang’s
accomplishments are probably a result of which of the following leadership traits?
a.
drive
b.
empathy
c.
charisma
d.
locus of control
e.
power position
21. Which of the following traits refers to high levels of effort and is characterized by achievement,
motivation, ambition, energy, tenacity, and initiative?
a.
desire to lead
b.
motivational cues
c.
drive
d.
self-confidence
e.
charisma
22. Which of the following traits refers to the extent to which leaders are truthful with others?
a.
honesty
b.
self-confidence
c.
emotional stability
d.
charisma
e.
extroversion
23. Oftentimes when an individual is running for a local political office, he or she promises to consider
each issue, make decisions that are good for the entire community, and reduce taxes. When the
individual assumes office, he or she is often unable to carry through on political promises, which leads
to a perceived problem with:
a.
honesty
b.
integrity
c.
empathy
d.
drive
e.
charisma
24. Leaders who possess the trait of ____ are more decisive and assertive and more likely to gain others’
confidence.
a.
emotional stability
b.
integrity
c.
self-confidence
d.
drive
e.
cognitive ability
25. Which of the following traits refers to the tendency of leaders to remain even-tempered and consistent
in their outlook and the way they treat others even when things go wrong?
a.
honesty
b.
integrity
c.
emotional stability
d.
self-confidence
e.
cognitive ability
26. Which of the following statements about what makes a successful leader is true?
a.
Successful leaders have the same traits that nonleaders have.
b.
Successful leaders have drive, which is defined as the ability to attract and retain the best
employees.
c.
Successful leaders are more decisive and assertive and are more likely to gain others’
confidence.
d.
Successful leaders believe in individual reciprocity.
e.
None of these statements about what makes a successful leader is true.
27. Successful business leaders are not like other people. Successful business leaders:
a.
have a desire to lead
b.
have emotional stability
c.
are knowledgeable about business
d.
are self-confident
e.
are accurately described by all of these
28. According to the What Really Works, “Leadership Traits Do Make a Difference,” which of the
following traits was LEAST likely to cause employees to see their leader as a better leader?
a.
extroversion
b.
intelligence
c.
dominance
d.
charisma
e.
emotional stability
29. According to the What Really Works, “Leadership Traits Do Make a Difference,” which of the
following traits was MOST likely to cause employees to see their leader as a better leader?
a.
extroversion
b.
intelligence
c.
dominance
d.
agreeableness
e.
introversion
30. Research at three universities has confirmed that two basic leader behaviors, ____ and ____, are
central to successful leadership.
a.
initiating structure; consideration
b.
initiating structure; job-centered leadership
c.
employee-centered leadership; consideration
d.
concern for production; job-centered leadership
e.
autonomous; participative
31. Which of the following is another term for considerate leadership behavior?
a.
initiating structure behavior
b.
participative management
c.
job-centered leadership
d.
concern for production
e.
employee-centered leadership
32. Hot Topic is a fast-growing clothing chain targeted to the alternative teen demographic. Hot Topic’s
former CEO Betsy McLaughlin relied on her employees to locate new trends. McLaughlin consulted
with her employees almost daily for suggestions on what the stores should carry. She relied on their
input before making inventory decisions. McLaughlin is demonstrating:
a.
achievement-orientation
b.
consideration
c.
charisma
d.
initiating structure
e.
empathy
33. In terms of leadership behavior, the term ____ refers to the extent to which a leader is friendly,
approachable, supportive, and shows concern for employees.
a.
initiating structure
b.
job-centered leadership
c.
consideration
d.
concern for production
e.
autonomy
34. Walter Reed Army Institute of Research has made a study of how important it is for military leaders to
be friendly with and to show concern for their troops. Its research shows that a leadership behavior
high in ____ positively influences soldier health and their ability to adapt to stressful environments.
a.
achievement
b.
charisma
c.
consideration
d.
initiating structure
e.
vision
35. Doris Cunningham, CEO of Members Choice Federal Credit Union in West Virginia, believes keeping
staff excited about the business they’re in is one of a leader’s primary roles. She believes a spirit of
enthusiasm must start at the top. “I’ve been in the movement for 35 years,” she says. “I have the credit
union philosophy. And I really try to instill that in my employees.” This indicates that Cunningham is
high in:
a.
achievement
b.
charisma
c.
consideration
d.
initiating structure
e.
vision
36. United Fruit Company is the owner of the Chiquita brand of bananas. To get the bananas picked,
United Fruit used a leadership style high in ____ and emphasized how the fruit was to be picked and
packed for transportation. It showed no concern for the workers.
a.
achievement
b.
charisma
c.
consideration
d.
initiating structure
e.
vision
37. College football coaches are often high in ____. They design every facet of practices, set goals for
their players, determine schedules, and even direct all of the plays during the games.
a.
achievement
b.
consideration
c.
charisma
d.
initiating structure
e.
empathy
38. When Stan O’Neal became CEO of Merrill-Lynch, he began his tenure by firing the entire
management committee. A few months later he fired two of his hand-picked senior executives because
they were “plotting to diminish his authority” and did not want to follow his orders unquestioningly.
Due to the key leadership behavior O’Neal used, it is obvious that he was more concerned about his
employees’ ____ than their job satisfaction.
a.
worker synergy
b.
motivational cues
c.
job performance
d.
worker responsiveness
e.
vision
39. Which of the following is another term for initiating structure leadership behavior?
a.
considerate leader behavior
b.
employee-centered leadership
c.
concern for people
d.
concern for production
e.
formalized people skills
40. A CEO who tours company plants to meet and talk to employees at all levels in order to better
understand their concerns and feelings is demonstrating which type of leader behavior?
a.
consideration
b.
leader formalization
c.
autonomy
d.
reciprocity
e.
initiating structure
41. Research shows that while initiating structure impacts primarily on ____, consideration impacts
primarily on ____.
a.
job satisfaction; job performance
b.
job performance; job satisfaction
c.
job performance; motivational drive
d.
job satisfaction; worker synergy
e.
job description; job specification
42. When Gamal Aziz became president of the MGM Grand Hotel and Casino in Las Vegas, he asked all
employees, not just managers, to tell him how the hotel could improve. He was surprised to learn that
hotel staff was not told what was happening in the hotel each day. Aziz listened and now the hotel’s
10,000 employees start their work shift with a brief meeting, at which they are given a detailed
overview of the conventions being held in the hotel, as well as the daily events and specials that the
staff could offer to guests. By listening to employees’ problems and concerns, Aziz is demonstrating
what type of leadership behavior?
a.
consideration
b.
leader formalization
c.
autonomy
d.
reciprocity
e.
initiating structure
43. Which of the following statements about the two basic leader behaviors that are central to successful
leadership is true?
a.
These behaviors are referred to as initiating structure and consideration.
b.
These behaviors are dependent, meaning that leaders can only do one at a time.
c.
The worst leadership style entails the use of both behaviors in equal amounts.
d.
The best leadership style entails high levels of both of these behaviors.
e.
Most effective leaders select one behavior, adopt it, and maintain that style of leadership
for their entire careers.
44. Which of the following statements about the two basic leader behaviors that are central to successful
leadership is true?
a.
These behaviors are referred to as initiating structure and constructing networks.
b.
These behaviors are independent, meaning that leaders can do both at the same time.
c.
These behaviors both impact primarily on job performance.
d.
These behaviors have minimal impact on work environments.
e.
All of these statements about the two basic leader behaviors that are central to successful
leadership are true.
45. Which of the following is the best leadership style for all situations?
a.
team management
b.
middle of the road management
c.
authority-compliance
d.
country club management
e.
none of these
46. Rex Ryan is the coach of the New York Jets football team. As a successful coach, he has to schedule
structured practices, emphasize careful planning, and assign tasks. He also has to show the players that
he genuinely cares about them as people. According to the Blake and Mouton grid, Ryan would be
characterized as:
a.
authority-compliance
b.
country club management
c.
middle-of-the-road management
d.
team management
e.
impoverished management
47. Which of the following is an example of a situational theory of leadership?
a.
stimulus-response theory
b.
trait theory
c.
Fiedler’s contingency theory
d.
equity theory of leadership
e.
charismatic theory
48. Which of the following leadership theories assumes that leadership styles are consistent and difficult to
change?
a.
path-goal theory
b.
normative decision theory
c.
the Vroom theory
d.
the status quo theory of leadership
e.
none of these
49. When Stan O’Neal became CEO of Merrill-Lynch, he began his tenure by firing the entire
management committee. A few months later he fired two of his hand-picked senior executives because
they were “plotting to diminish his authority” and did not want to follow his orders unquestioningly.
According to the Blake/Mouton Leadership Grid, O’Neal was using which style of management?
a.
middle-of-the-road style
b.
authority-compliance style
c.
country club management style
d.
impoverished management style
e.
team management style
50. Fiedler’s contingency theory assumes:
a.
leaders are effective when their work groups perform well
b.
leadership styles cannot be matched to the proper situation
c.
leaders can change their leadership styles to fit the situation
d.
favorable situations permit leaders to influence group members
e.
leaders should be judged according to how they perform—not how their subordinates
perform
51. 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.
Gore more than likely adheres to the ____ theory of leadership.
a.
contingency
b.
normative
c.
strategic
d.
trait
e.
visionary
52. In Fiedler’s contingency theory, the term ____ refers to the degree to which leaders are able to hire,
fire, reward, and punish workers.
a.
situational favorableness
b.
leader-member relations
c.
task structure
d.
position power
e.
situational unfavorableness
53. In Fiedler’s contingency theory, the term ____ refers to the degree to which a particular situation either
permits or denies a leader the chance to influence the behavior of group members.
a.
situational favorableness
b.
leader-member relations
c.
task structure
d.
position power
e.
task favorableness
54. When Stan O’Neal became the CEO of Merrill-Lynch, he began his tenure by firing the entire
management committee. A few months later he fired two of his hand-picked senior executives because
they were “plotting to diminish his authority” and did not want to follow his orders unquestioningly. In
terms of Fiedler’s contingency theory, O’Neal was most concerned with establishing:
a.
situational favorableness
b.
consideration
c.
position power
d.
goal commitment
e.
empowerment quality