Business Essentials, 12e (Ebert/Griffin)

Chapter 9 Leadership and Decision Making

1) Which of the following do organizations need in order to be effective?

A) More leadership than management
B) More management than leadership
C) Both leadership and management
D) Either leadership or management
E) Neither leadership nor management
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.1: Define leadership and distinguish it from management.

2) Which of the following describes the concept of leadership?

A) The processes and behaviors used by someone to determine the optimal decision among
several options
B) The processes and behaviors used by someone to motivate, inspire, and influence the
behaviors of others
C) The processes and behaviors used by someone to establish the organizational structure of a
firm
D) The processes and behaviors used by someone to manage the functioning of an organization
E) The processes and behaviors used by someone to achieve tangible outcomes within an
organization
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.1: Define leadership and distinguish it from management.

3) Whereas managers focus on plans, results, and goals, what do leaders focus on?
A) Productivity
B) Profitability
C) Inspiration
D) Sales
E) Organization
Answer: C
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.1: Define leadership and distinguish it from management.
4) What type of power is granted through the established hierarchy within the organization?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
Answer: A
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.1: Define leadership and distinguish it from management.

5) Salary increases, bonuses, promotions, praise and job assignments are all examples of what
type of power?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
Answer: B
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.1: Define leadership and distinguish it from management.

6) What type of power is more abstract, often based on loyalty or charisma?

A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
Answer: C
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.1: Define leadership and distinguish it from management.
7) When someone is able to act as both a leader and a manager, what type of power do they
possess that others often do not?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.1: Define leadership and distinguish it from management.

8) Management is defined as the processes and behaviors used to motivate, inspire, and influence
the behaviors of others.
Answer: FALSE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.1: Define leadership and distinguish it from management.

9) All managers are leaders, but not all leaders are managers.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.1: Define leadership and distinguish it from management.

10) What is the difference between leadership and management within an organization?
Answer: Leadership is necessary to create and direct change at an organization by influencing
and motivating its members. Management, on the other hand, is more concerned with everyday
administrative activities in order to bring stability to and obtain reliable results from the
organization. A person can be a manager, a leader, both, or neither.
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.1: Define leadership and distinguish it from management.
11) Identify the five types of leadership power and explain each.
Answer: Power is the ability to affect the behavior of others. Legitimate power is power granted
through the organizational hierarchy; it is the power defined by the organization to be accorded
to people occupying a particular position. Reward power is the power to give or withhold
rewards. Rewards that a manager may control include salary increases, bonuses, promotion
recommendations, praise, recognition, and interesting job assignments. Coercive power is the
power to force compliance by means of psychological, emotional, or physical threat. Compared
with legitimate, reward, and coercive power, which are relatively concrete and grounded in
objective facets of organizational life, referent power is abstract. It is based on identification,
imitation, loyalty, or charisma. Expert power is derived from information or expertise. The more
important the information and the fewer the people who have access to it, the greater is the
degree of expert power possessed by any one individual.
Difficulty: Difficult
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.1: Define leadership and distinguish it from management.

12) What area was the earliest research on leadership MOST concerned with?
A) Leadership behaviors
B) Leadership traits
C) Leadership situations
D) Leadership integrity
E) Leadership roles
Answer: B
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.2: Summarize early approaches to the study of leadership.

13) Leadership researchers in the late 1940s believed that leaders should engage in which of the
following behaviors?
A) Mostly employee-focused leader behavior
B) Mostly task-focused leader behavior
C) Both employee-focused leader behavior and task-focused leader behavior in equal amounts
D) A mixture of employee-focused leader behavior and task-focused behavior depending on the
task
E) A mixture of employee-focused leader behavior and task-focused behavior depending on the
employees
Answer: C
Difficulty: Difficult
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.2: Summarize early approaches to the study of leadership.
14) What was a major problem with the trait approach to leadership?
A) The studies were too innovative and thus were not taken seriously at the time.
B) The studies were too inconsistent and thus not very practical.
C) The results were not very inspiring and thus ignored.
D) The results were found to be too pessimistic and thus were dismissed as useless.
E) The studies were too focused on certain leaders and thus were dismissed as irrelevant.
Answer: B
Difficulty: Difficult
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.2: Summarize early approaches to the study of leadership.

15) Which of the following BEST describes task-focused leader behavior?

A) Concentration on how tasks should be performed
B) Concentration on which tasks should be performed
C) Concentration on why tasks should be performed
D) Concentration on who should perform which tasks
E) Concentration on when tasks should be performed
Answer: A
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.2: Summarize early approaches to the study of leadership.

16) Which of the following BEST describes employee-focused leader behavior?

A) Concentration on both the work quality and work quantity of employees
B) Concentration on both the well-being and work quality of employees
C) Concentration on both the satisfaction and work quantity of employees
D) Concentration on both the satisfaction and the well-being of employees
E) Concentration on both the work quantity and the well-being of employees
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.2: Summarize early approaches to the study of leadership.
17) In interviews with two leadership applicants, a manager tried to determine each person's
knowledge of the industry, level of energy, and level of self-esteem. With which of the following
concepts of leadership is the manager MOST concerned here?
A) Charismatic leadership
B) Behavioral leadership
C) Situational leadership
D) Trait-based leadership
E) Transformational leadership
Answer: D
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.2: Summarize early approaches to the study of leadership.

18) Which of the following statements BEST describes the assumptions made by researchers of
the behavioral approach to leadership?
A) Behaviors of effective leaders differ in various situations.
B) Behaviors of effective leaders are the same in all situations.
C) Behaviors of effective leaders reflect the proper traits for effective leadership.
D) Behaviors of effective leaders differ as reflected by different traits for effective leadership.
E) Behaviors of effective leaders reflect the proper disposition for effective leadership.
Answer: B
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.2: Summarize early approaches to the study of leadership.

19) What type of leader behavior is focused on the motivation and well-being of those who work
in the organization?
A) Behavior
B) Task
C) Employee
D) Situational
E) Path-glory
Answer: C
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.2: Summarize early approaches to the study of leadership.
20) Which of the following are characteristics identified in current approaches to trait
leadership?
A) Emotional and mental intelligence, drive, and integrity
B) Long-term vision, profitability, and competitiveness
C) Task, goals, and performance standards
D) Performance standards, profitability, and competitiveness
E) Drive, height, and mental capacity
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.2: Summarize early approaches to the study of leadership.

21) The behavioral approach to the study of leadership identified two main areas of effective
leadership behavior: trait-focused behavior and goal-focused behavior.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.2: Summarize early approaches to the study of leadership.

22) The behavioral approach to leadership assumes that appropriate leader behavior varies from
one situation to another.
Answer: FALSE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.2: Summarize early approaches to the study of leadership.

23) The behavioral approach to the study of leadership emphasized the actions taken by an
effective leader rather than any specific traits.
Answer: TRUE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.2: Summarize early approaches to the study of leadership.
24) What is the difference between employee-focused leadership and task-focused leadership?
Answer: Employee-focused leadership is when a leader focuses on the satisfaction, motivation,
and well-being of his or her employees, and task-focused leadership is when a leader focuses on
how tasks should be performed in order to meet certain goals and to achieve certain performance
standards. These two basic forms of leader behavior were identified by researchers who assumed
that the behaviors of effective leaders differed somehow from the behaviors of less effective
leaders, and the behaviors of effective leaders would be the same across all situations.
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.2: Summarize early approaches to the study of leadership.

25) Which approach to leadership is based on the assumption that appropriate behavior varies
from one experience to another?
A) Situational leadership
B) Trait-based leadership
C) Transformational leadership
D) Transactional leadership
E) Charismatic leadership
Answer: A
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.3: Discuss the concept of situational approaches to leadership.

26) According to the situational approach to leadership, the extent to which a leader or
subordinate is involved in decision making depends on characteristics of which aspects of an
organization?
A) The leader, the followers, and the situation
B) The leader, the structure of the organization, and the situation
C) The leader, the resources at hand, and the situation
D) The followers, the resources at hand, and the situation
E) The resources, the structure of the organization, and the situation
Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Analytical
LO: 9.3: Discuss the concept of situational approaches to leadership.
27) Which of the following models of leadership is based on the expectancy theory of motivation
and suggests that the function of a leader is to make rewards available to the workplace?
A) Supportive
B) Path-goal
C) Decision tree
D) Employee-focused
E) Leader-member exchange
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.3: Discuss the concept of situational approaches to leadership.

28) Under the path-goal theory of leadership, what type of leader behavior includes setting
challenging goals for the employee with the expectation that those goals will be achieved?
A) Directive
B) Supportive
C) Participative
D) Achievement-oriented
E) Decision tree
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.3: Discuss the concept of situational approaches to leadership.

29) Which approach to leadership focuses only on subordinate participation in decision making,
yet does not address other aspects of leadership?
A) Decision tree
B) Leader-member exchange
C) Transformational
D) Path-glory
E) Directive leader
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.3: Discuss the concept of situational approaches to leadership.
30) Which method of leadership encourages supervisors to establish a small number of trusted
subordinates and give them special duties and privileges?
A) Transformational
B) Charismatic
C) Leader-member exchange
D) Decision tree
E) Path-glory
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.3: Discuss the concept of situational approaches to leadership.

31) When a leader asks for employees' suggestions and input in the decision-making process,
what type of leadership style is being utilized?
A) Directive
B) Supportive
C) Participative
D) Achievement
E) Transformational
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.3: Discuss the concept of situational approaches to leadership.

32) A leader who sets levels of expectation, then gives direction and guidance and determines
work schedules uses what type of leadership theory?
A) Transformational
B) Directive
C) Supportive
D) Participative
E) Achievement-oriented
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.3: Discuss the concept of situational approaches to leadership.

33) The situational approach to leadership is concerned with the contingent outcomes and
consequences of leader behavior rather than universal outcomes and consequences.
Answer: TRUE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.3: Discuss the concept of situational approaches to leadership.

34) The situational approach to leadership gives equal weight to the elements of the situation and
the characteristics of the leader and followers in order to ascertain the outcomes of a leader's
actions.
Answer: TRUE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.3: Discuss the concept of situational approaches to leadership.

35) The situational approach to leadership was first proposed as a continuum of leadership
behavior. Explain the two extreme ranges of the continuum.
Answer: At one extreme, the leader makes decisions alone; at the other end, employees make
decisions with only minimal guidance from the leader. The situational approach to leadership
assumes that appropriate leader behavior varies from one situation to another.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.3: Discuss the concept of situational approaches to leadership.

36) Describe how the behavioral approach to leadership could apply to the situational approach
to leadership.
Answer: The behavioral approach to leadership suggests that two forms of leadership prevail:
task-focused leader behavior, in which a leader focuses on how tasks should be performed in
order to meet certain goals, and employee-focused leader behavior, in which a leader focuses on
the satisfaction, motivation, and well-being of his or her employees. The situational approach
posits that the actions of a leader depend completely on the given circumstances of the
organization to be led. Certain circumstances will necessitate certain behaviors from the leader,
task-focused or employee-focused, depending upon where the need is greatest. Situational
characteristics that affect decision making include the type of organization, group effectiveness,
the problem itself, and time pressures.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.3: Discuss the concept of situational approaches to leadership.

37) Which of the following may describe charismatic leadership?

A) A form of interpersonal attraction based on the perspectives of the leader
B) A form of interpersonal attraction that inspires support and acceptance
C) A form of interpersonal guidance based on the perspectives of the managers
D) A form of interpersonal guidance that uses highly controlled alternatives
E) A form of interpersonal attraction which utilizes group performance norms
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

38) Which of following describes the activities MOST involved with transactional leadership?
A) The implementation of a corporate vision
B) The implementation of organizational transformations
C) The implementation of regimented activities
D) The implementation of employee incentives
E) The implementation of situational problem solving
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

39) Which of the following is a fundamental element of charismatic leadership?

A) Planning
B) Controlling
C) Analyzing
D) Influencing
E) Organizing
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

40) Which statement is true regarding charismatic leadership?

A) Charismatic leadership ideas are unpopular among contemporary managers.
B) Many studies have successfully assessed the impact of charismatic leadership.
C) Charismatic leadership is recognized as the most important approach to leadership.
D) Dependence on charismatic leadership can raise serious ethical concerns.
E) Taking over a leadership role from a charismatic leader is often easier than following a leader
lacking in charisma.
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.4: Describe transformational and charismatic perspectives on leadership.
41) Which of the following describes one of the primary concerns associated with charismatic
leadership due to severe devotion to a particular leader?
A) The potential lapse of ethical practices
B) The potential inability to replace leadership efficiently
C) The potential encouragement of micromanaging
D) The potential stagnation of corporate vision
E) The potential creation of bureaucracy
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

42) Which of the following accurately describes a primary characteristic of charismatic leaders?
A) They tend to set high expectations for themselves and control the expectations of others.
B) They tend to set high expectations for themselves and establish high standards for others.
C) They tend to establish high standards for themselves and rely on others to accomplish goals.
D) They tend to energize others and establish good, stable practices.
E) They tend to set high expectations for themselves and establish good, stable practices.
Answer: B
Difficulty: Difficult
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

43) What type of leadership recognizes the need for change then creates and executes a plan for
change?
A) Transformational
B) Transactional
C) Charismatic
D) Supportive
E) Directive
Answer: A
Difficulty: Difficult
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

44) Taking over a leadership role from a charismatic leader is less challenging than taking over
from a leader lacking charisma.
Answer: FALSE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.4: Describe transformational and charismatic perspectives on leadership.
45) Few studies have successfully assessed the meaning and impact of charismatic leadership.
Answer: TRUE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

46) Describe a situation in which a leader would choose a more transactional approach to her
leadership over a more transformational one.
Answer: A company that has successfully reorganized and reinvigorated itself after years of
floundering would probably have more need for a leader who is primarily concerned with
ensuring that the changes made for better performance remain in place and well-utilized, rather
than a leader who will continue to transform the organization. Transformational leadership is the
set of abilities that allows a leader to recognize the need for change, to create a vision to guide
that change, and to execute the change effectively. In contrast, transactional leadership is
essentially the same as management in that it involves routine, regimented activities.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

47) Identify three crucial elements of charismatic leadership.

Answer: Most experts today acknowledge three crucial elements of charismatic leadership.
Charismatic leaders envision likely future trends and patterns, set high expectations for
themselves and for others, and behave in ways that meet or exceed those expectations.
Charismatic leaders energize others by demonstrating personal excitement, personal confidence,
and consistent patterns of success.
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.4: Describe transformational and charismatic perspectives on leadership.

48) Which of the following organizational aspects allows employees to perform capably without
the direction of a leader?
A) Leadership neutralizers
B) Leadership substitutes
C) Leadership incentives
D) Leadership guidelines
E) Leadership obstructions
Answer: B
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.
49) Which of the following BEST describes the effects of leadership neutralizers in an
organization?
A) They tend to make leader behavior ineffective.
B) They tend to make leaders more charismatic.
C) They tend to outweigh the need for leader behavior.
D) They tend to make managers become effective leaders.
E) They tend to make leaders more neutral toward employees.
Answer: A
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.

50) Which of the following may be a substitute for leadership?

A) Lax individual professionalism
B) Group divisiveness
C) Explicit plans and goals
D) A loose system of rules and procedures
E) A performance-based reward system
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.

51) When an employee can perform well without a leader, what is indicated?
A) Presence of a rigid reward system
B) Presence of a leadership neutralizer
C) Presence of a leadership substitute
D) Presence of a leadership incentive
E) Presence of a highly automated system
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.
52) What type of factors result in a leadership behavior that has been effective in the past no
longer working in a new situation?
A) Substitutes
B) Neutralizers
C) Charisma
D) Transactional
E) Cross-cultural patterns
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.

53) Leadership neutralizers tend to strongly affect a leader's ability to affect a subordinate's
performance.
Answer: TRUE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.

54) Rigid rules and procedures, along with individual professionalism, may render leader
behavior unnecessary.
Answer: TRUE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.

55) High levels of experience and group cohesiveness among subordinates cannot neutralize
leadership.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.

56) How can norms and cohesiveness in a work group neutralize leadership?
Answer: Norms and cohesiveness among group members can be so strong that there is nothing a
leader can do to change things. These group factors are known as leadership neutralizers due to
their tendency to render leader behaviors ineffective.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.
57) Contrast leadership substitutes with leadership neutralizers.
Answer: Leadership substitutes are individual, task, and organizational characteristics that tend
to outweigh the leader's ability to affect subordinates' satisfaction and performance. That is, they
take the place of many needed aspects of effective leadership. Leadership neutralizers are
individual, task, and organizational characteristics that render any attempted leadership behavior
ineffective. Group norms and cohesion are among some leadership neutralizers. In some cases,
certain factors may actually substitute for leadership, making actual leadership unnecessary or
irrelevant. In other cases, factors may exist that neutralize or negate the influence of a leader,
even when that individual is attempting to exercise leadership.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.5: Identify and discuss leadership substitutes and neutralizers.

58) According to current theories of gender roles in leadership, which of the following BEST
describes the differences in decision making?
A) Males tend to be more democratic than females in making decisions.
B) Males tend to be more critical than females in making decisions.
C) Males tend to be more autocratic than females in making decisions.
D) Males tend to be more rational than females in making decisions.
E) Males tend to be more charismatic than females in making decisions.
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

59) Which states the correct definition of collectivism?

A) A greater focus on group characteristics than on individual characteristics
B) A greater focus on the group than on the individual
C) A greater focus on the individual within a group than on the individual without a group
D) A greater focus on individuals who are most successful
E) A greater focus on groups that have been operative for the longest time
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.
60) Which states the correct definition of individualism?
A) A greater focus on individual characteristics than on cultural characteristics
B) A greater focus on the individual than on the group
C) A greater focus on the individual within a group than on the individual without a group
D) A greater focus on individuals who have been present for the longest time
E) A greater focus on individuals who are in leadership roles
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

61) Which of the following types of leaders has the primary role of helping a less experienced
person learn how to function and to advance within an organization?
A) Enabler
B) Mentor
C) Manager
D) Taskmaster
E) Motivator
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

62) Which is the MOST accurate statement regarding one of the main differences between the
Japanese and American cultures?
A) Overall, Japanese culture is often characterized as conservative, whereas American culture is
often characterized as liberal.
B) Overall, Japanese culture is often characterized as rigidly structured, whereas American
culture is often characterized as loosely structured.
C) Overall, Japanese culture is often characterized as authoritarian, whereas American culture is
often characterized as democratic.
D) Overall, Japanese culture is often characterized as collectivist, whereas American culture is
often characterized as individualist.
E) Overall, Japanese culture is often characterized as socialist, whereas American culture is often
characterized as capitalist.
Answer: D
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.
63) Which of the following best describes the new, modern role of a leader?
A) Overseer
B) Individualist
C) Collectivist
D) Coach
E) Autocratic
Answer: D
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Concept
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

64) What is the term for those who work with less experienced employees to learn how to
advance within the organization?
A) Overseer
B) Coach
C) Individualist
D) Collectivist
E) Mentor
Answer: E
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

65) Which of the following identifies international differences and diversity issues within an
organization?
A) Culture
B) Individualism
C) Collectivism
D) Diversity
E) Autocracy
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

66) A coaching role may include taking on responsibilities as a mentor.

Answer: TRUE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.
67) The ethical behaviors of top management are less of a concern today compared to the past.
Answer: FALSE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

68) A manager working in the United States will typically see a high level of collectivism among
workers.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

69) Most leadership theories and studies have focused on the roles of both men and women in
leadership roles.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

70) Male leaders tend to be no more task-focused than female leaders.

Answer: TRUE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

71) From a coaching perspective, what roles might an organizational leader assume?
Answer: The leader may help select team members, provide some general direction, help train
and develop the team, and help the team obtain necessary resources. Coaches from different
teams may play important roles in linking the activities and functions of their respective teams.
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.
72) How will leadership styles change in a collective culture when compared to an individualistic
culture?
Answer: Japan is generally characterized by collectivism (group before individual), whereas the
United States is based more on individualism (individual before group). So when a Japanese firm
sends an executive to head up the firm's operation in the United States, that person will likely
find it necessary to recognize the importance of individual contributions and rewards and the
differences in individual and group roles that exist in Japanese and U.S. businesses.
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

73) Which part of the management of an organization would be MOST involved with strategic
leadership?
A) The top level of management
B) The supervisory level of management
C) The advisory level of management
D) The auxiliary level of management
E) All levels of management
Answer: A
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

74) Recent corporate scandals that have shaken the public's faith in business leadership have
brought increased attention to what area of leadership?
A) Virtual leadership
B) Ethical leadership
C) Strategic leadership
D) Employee-focused leadership
E) Charismatic leadership
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.
75) Which of the current business characteristics has brought the rise of virtual leadership?
A) More communication within the organization
B) Little communication among employees
C) More face-to-face communication within the organization
D) Less face-to-face communication within the organization
E) Little communication between employees and management
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

76) In exercising strategic leadership, what is a leader MOST likely to do?

A) Focus on company efficiency
B) Focus on hiring the right people
C) Align the company with its environment
D) Avoid environmental impact on the firm
E) Engage the firm with community organizations
Answer: C
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

77) In addition to understanding the organization's history and culture, what must a leader
understand in order to be effective at strategic leadership?
A) The external environment
B) The needs of stakeholders
C) The advantages to virtual leadership
D) The hiring process
E) How men and women respond to various leadership styles
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.
78) Which of the following is considered to be one of the biggest challenges facing virtual
leaders and their workers today?
A) Clear goals and measurements for projects
B) Feelings of isolation
C) Highly complex work environments
D) Inconsistent "big pictures" for employees
E) Organizational commitment
Answer: B
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Analytical
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

79) How can virtual leaders ensure effective communication with remote workers?
A) Develop a strong one-way process for communication.
B) Limit active listening.
C) Use multiple channels to communicate.
D) Minimize the use of structured work-related events.
E) Allow each remote employee to establish ground rules for getting work done.
Answer: C
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Analytical
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

80) Business leaders are promoted to senior position because they are ethical people.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

81) Strategic leaders work toward creating a more hierarchical structure.

Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

82) Strategic leadership is a leader's ability to understand the complexities of both the
organization and its environment.
Answer: TRUE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

83) Virtual leadership refers to the role of leaders in a team environment.

Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

84) Virtual leaders don't need to concern themselves with creating and maintaining relationships
with their employees.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

85) Why has virtual leadership become an important issue for organizations?
Answer: Many organizations are no longer completely based at one physical building. Face-to-
face interaction is becoming less common as e-mail and other mobile technologies become
available. An effective leader thus must have the skills to organize, motivate, and influence
members of her or his organization through a variety of media, i.e., possess good virtual
leadership skills. Leaders in these situations must work hard at creating and maintaining
relationships with their employees that go beyond words on a computer screen.
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.

86) Explain the concept and importance of ethical leadership.

Answer: In the wake of corporate scandals at firms such as Enron, Boeing, and AIG, faith in
business leaders has been shaken. Perhaps now more than ever, high standards of ethical conduct
are being held up as a prerequisite for effective leadership. More specifically, business leaders
are being called on to maintain high ethical standards for their own conduct, to unfailingly
exhibit ethical behavior, and to hold others in their organizations to the same standards. The
behaviors of top leaders are being scrutinized more than ever, and those responsible for hiring
new leaders for a business are looking more closely at the backgrounds of those being
considered. Emerging pressures for stronger corporate governance models are likely to further
increase the commitment to select only those individuals with high ethical standards for
leadership positions in business and to hold them more accountable than in the past for both their
actions and the consequences of those actions.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership.
87) Which of the following is the name for choosing one alternative from among several
options?
A) Decision making
B) Assessment
C) Evaluation
D) Discernment
E) Arbitration
Answer: A
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

88) What is the first step in rational decision making?

A) Understanding who will make the decision
B) Recognizing that a decision is necessary
C) Identifying alternatives to the problem
D) Choosing an alternative
E) Implementing the alternative
Answer: B
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

89) What is the definition of a coalition?

A) An informal group formed to achieve a common goal
B) An institution incorporated in order to achieve a common goal
C) A pro-business political party
D) The network of management within a firm
E) The network of employees within a firm
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.
90) Which of the following reflects the extent to which a leader is willing to gamble when
making a decision?
A) Escalation of commitment
B) Overconfidence
C) Caution
D) Intuition
E) Risk propensity
Answer: E
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

91) An inward belief about something, often without conscious consideration, is frequently
referred to as what?
A) Intuition
B) Risk taking
C) Commitment
D) Discernment
E) Rationality
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

92) In selecting an alternative when making a decision, what should decision makers keep in
mind?
A) Finding multiple acceptable alternatives is neither possible nor efficient.
B) Finding multiple acceptable alternatives should not take very long.
C) Selecting one alternative and rejecting all others will be the decision maker's main objective.
D) Selecting one alternative and rejecting all others might not be necessary.
E) Selecting one alternative and rejecting all others should be a straightforward process.
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.
93) Which of the following dispositions is typical for leaders with a high degree of risk
propensity?
A) Reliance on intuition
B) Reliance on rational decisions
C) Aversion against use of intuition
D) Aversion against rational decisions
E) Aversion against use of both intuition and rational decisions
Answer: A
Difficulty: Difficult
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

94) What is a prime ingredient in fostering different levels of risk propensity within an
organization?
A) Organizational culture
B) Profitability level
C) Gender differences
D) Cross-cultural interactions
E) Company size
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

95) Which of the following represents an informal alliance of individuals who seek to achieve a
common goal?
A) Lobbying
B) Escalation of commitment
C) Political force
D) Coalition
E) Leadership
Answer: D
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.
96) What is the behavior that results when a decision maker makes a decision and continues to
support that decision, even when it appears to be wrong?
A) Escalation of commitment
B) Legitimate power
C) Risk propensity
D) Path-glory
E) Intuition
Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

97) What types of decisions are unstructured and require considerable time, energy, and
resources to make?
A) Conditional
B) Nonprogrammed
C) Ethical
D) Strategic
E) Programmed
Answer: B
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

98) What type of decision-making process should be used for basic operating systems,
procedures, and standard organizational transactions?
A) Conditional
B) Strategic
C) Programmed
D) Ethical
E) Nonprogrammed
Answer: C
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.
99) When there is little ambiguity in the decision-making process, what decision-making
condition exists?
A) A state of recognition
B) A state of risk
C) A state of rationality
D) A state of certainty
E) A state of uncertainty
Answer: D
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

100) When does a state of certainty exist in a decision-making process?

A) When conditions and alternatives are understood
B) When conditions are complex and turbulent
C) When potential payoffs and costs are determined
D) When decisions are made based on intuition, judgment, and experience
E) When the conditions are clearly defined and the need for a decision is clear
Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Analytical
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

101) What decision-making state occurs when identifying each alternative and the associated
costs and payoffs of those alternatives?
A) A state of recognition
B) A state of risk
C) A state of rationality
D) A state of certainty
E) A state of uncertainty
Answer: B
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Analytical
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.
102) When a manager must make a guess as to the probabilities associated with each alternative,
what decision-making state is that manager working in?
A) Rationality
B) Certainty
C) Risk
D) Recognition
E) Uncertainty
Answer: C
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

103) Because of the complexity and dynamism of organizations, what decision-making state
occurs when risks, alternatives, and consequences are unknown?
A) A state of recognition
B) A state of risk
C) A state of rationality
D) A state of certainty
E) A state of uncertainty
Answer: E
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Concept
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

104) The more important the decision, the more attention needs to be directed to developing
alternatives.
Answer: TRUE
Difficulty: Easy
AACSB: Application of Knowledge
Quest. Category: Analytical
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

105) Managers with a high degree of risk propensity tend to rely heavily on intuition.
Answer: TRUE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.
106) When making a decision, finding multiple acceptable alternatives may be possible;
however, selecting just one and rejecting all others is critical.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Application
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

107) An escalation of commitment indicates the increased support of all members and leadership
in the action.
Answer: FALSE
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

108) Besides having more structure than a nonprogrammed decision, programmed decisions also
recur more often.
Answer: TRUE
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

109) What are three common constraints limiting the development of alternatives in the rational
decision-making process?
Answer: Common constraints include legal restrictions, moral and ethical norms, the power and
authority of managers, available technology, economic considerations, and social norms.
Although managers should seek creative solutions, they must also recognize that various
constraints often limit their alternatives.
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.
110) Describe the steps involved in the rational decision-making process.
Answer: The rational decision-making process is a series of rational steps used when making a
decision. The first step is to recognize and define the decision situation. Next, the decision maker
identifies alternative solutions to the defined problem. The decision maker will then evaluate
alternatives. The decision maker then implements the chosen alternative. Following up and
evaluating the results is the final step. If all decision situations were approached in this logical
way, more decisions would prove successful. Yet decisions are often made with little
consideration for logic and rationality.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Application
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

111) Discuss ways in which using a rational perspective to decision making will help when
making nonprogrammed decisions.
Answer: There are three different conditions in which decisions must be made. These are
conditions of certainty, risk, or uncertainty. The rational perspective prescribes a logical process
for making decisions. It involves six steps: (1) recognizing and defining the decision situation,
(2) identifying alternatives, (3) evaluating alternatives, (4) selecting the best alternative, (5)
implementing the chosen alternative, and (6) following up and evaluating the results. The
behavioral perspective acknowledges that things such as political forces, intuition, escalation of
commitment, and risk propensity are also important aspects of decision making.
Difficulty: Difficult
AACSB: Analytical Thinking
Quest. Category: Critical Thinking
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.

112) Discuss why the majority of decisions made by managers are made under a state of
uncertainty, and how managers can minimize the risk of poor decisions.
Answer: Most of the major decision making in contemporary organizations is done under a state
of uncertainty. The decision maker does not know all the alternatives, the risks associated with
each, or the likely consequences of each alternative. This uncertainty stems from the complexity
and dynamism of contemporary organizations and their environments. The emergence of the
Internet as a significant force in today's competitive environment has served to increase both
revenue potential and uncertainty for most managers. To make effective decisions in these
circumstances, managers must acquire as much relevant information as possible and approach
the situation from a logical and rational perspective. Intuition, judgment, and experience always
play major roles in the decision-making process under conditions of uncertainty.
Difficulty: Moderate
AACSB: Analytical Thinking
Quest. Category: Analytical
LO: 9.8: Relate leadership to decision making and discuss both rational and behavioral
perspectives on decision making.