Chapter 9 Leadership and Decision Making

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1 Copyright © 2017 Pearson Education, Inc. Business Essentials, 11e (Ebert/Griffin) Chapter 9 Leadership and Decision Making 1) Which of the following do organizations need in order to be effecti ... ve? 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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) People D) Sales E) Organization AACSB: Application of knowledge Objective: 9.1: Define leadership and distinguish it from management. 2 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.1: Define leadership and distinguish it from management. 3 Copyright © 2017 Pearson Education, Inc. 7) When someone is able to act as both a leader and a manager, what type of power to they possess that others often do not? A) Legitimate power B) Reward power C) Referent power D) Expert power E) Coercive power AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 9.1: Define leadership and distinguish it from management. 9) All managers are leaders, but not all leaders are managers.. Difficulty: Moderate AACSB: Application of knowledge Objective: 9.1: Define leadership and distinguish it from management. 10) What is the difference between leadership and management within an organization? AACSB: Application of knowledge Objective: 9.1: Define leadership and distinguish it from management. 4 Copyright © 2017 Pearson Education, Inc. 11) Identify the five types of leadership power and explain each. AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 variable mixture of employee-focused leader behavior and task-focused behavior depending on the task E) A variable mixture of employee-focused leader behavior and task-focused behavior depending on the employees AACSB: Application of knowledge Objective: 9.2: Summarize early approaches to the study of leadership. 5 Copyright © 2017 Pearson Education, Inc. 14) What was a major problem with the trait approach to leadership? A) The results were too innovative and thus were not taken seriously at the time. B) The results 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 results were too worshipful of certain leaders and thus were dismissed as irrelevant. AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.2: Summarize early approaches to the study of leadership. 6 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Analytical thinking Objective: 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. AACSB: Analytical thinking Objective: 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 the employees? A) Behavior B) Task C) Employee D) Situational E) Path-glory AACSB: Application of knowledge Objective: 9.2: Summarize early approaches to the study of leadership. 7 Copyright © 2017 Pearson Education, Inc. 20) Which of the following statements is the MOST accurate? A) Effective managers lead for stability, whereas visionary leaders lead for change. B) Effective leaders lead for stability, whereas visionary managers lead for change. C) Visionary managers lead for stability, whereas effective leaders lead for change. D) Strategic leaders lead for stability, whereas transforming leaders lead for change. E) Strategic managers lead for stability, whereas transforming managers lead for change. Difficulty: Moderate AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 9.2: Summarize early approaches to the study of leadership. 8 Copyright © 2017 Pearson Education, Inc. 24) What is the difference between employee-focused leadership and task-focused leadership? AACSB: Application of knowledge Objective: 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 situation to another? A) Situational leadership B) Trait-based leadership C) Transformational leadership D) Transactional leadership E) Charismatic leadership AACSB: Application of knowledge Objective: 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 AACSB: Analytical thinking Objective: 9.3: Discuss the concept of situational approaches to leadership. 9 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 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 Difficulty: Moderate AACSB: Application of knowledge Objective: 9.3: Discuss the concept of situational approaches to leadership. 29) Which approach to leadership only considers 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 AACSB: Application of knowledge Objective: 9.3: Discuss the concept of situational approaches to leadership. 10 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 9.3: Discuss the concept of situational approaches to leadership. 31) When a leader asks for employee's 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.3: Discuss the concept of situational approaches to leadership. 11 Copyright © 2017 Pearson Education, Inc. 33) The situational approach to leadership is concerned with the contingent outcomes and consequences of leader behavior rather than universal outcomes and consequences. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 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. AACSB: Analytical thinking Objective: 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. AACSB: Analytical thinking Objective: 9.3: Discuss the concept of situational approaches to leadership. 12 Copyright © 2017 Pearson Education, Inc. 37) Which of the following may describe charismatic leadership? A) An approach to leadership emphasizing the perspectives of the leader B) An approach to leadership emphasizing the perspectives of the followers C) An approach to leadership emphasizing the perspectives of the clientele D) An approach to leadership emphasizing the perspectives of the managers E) An approach to leadership emphasizing the perspectives of all parties in the organization AACSB: Application of knowledge Objective: 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 routine activities D) The implementation of employee incentives E) The implementation of situational problem solving AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.4: Describe transformational and charismatic perspectives on leadership. 13 Copyright © 2017 Pearson Education, Inc. 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. AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 energize others. B) They tend to set high expectations for themselves and establish high standards for others. C) They tend to establish high standards for and energize others. 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. AACSB: Application of knowledge Objective: 9.4: Describe transformational and charismatic perspectives on leadership. 14 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 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. Difficulty: Easy AACSB: Application of knowledge Objective: 9.4: Describe transformational and charismatic perspectives on leadership. 45) Few studies have successfully assessed the meaning and impact of charismatic leadership. AACSB: Application of knowledge Objective: 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. AACSB: Analytical thinking Objective: 9.4: Describe transformational and charismatic perspectives on leadership. 15 Copyright © 2017 Pearson Education, Inc. 47) Identify three crucial elements of charismatic leadership. AACSB: Analytical thinking Objective: 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 AACSB: Application of knowledge Objective: 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 Explanation: A) Leadership neutralizers are factors that may render leader behaviors ineffective. Difficulty: Easy AACSB: Application of knowledge Objective: 9.5: Identify and discuss leadership substitutes and neutralizers. 16 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 Difficulty: Moderate AACSB: Application of knowledge Objective: 9.5: Identify and discuss leadership substitutes and neutralizers. 53) Leadership neutralizers tend to outweigh a leader's ability to affect a subordinate's performance. AACSB: Application of knowledge Objective: 9.5: Identify and discuss leadership substitutes and neutralizers. 17 Copyright © 2017 Pearson Education, Inc. 54) Rigid rules and procedures, along with individual professionalism, may render leader behavior unnecessary. AACSB: Application of knowledge Objective: 9.5: Identify and discuss leadership substitutes and neutralizers. 55) High levels of experience and group cohesiveness among subordinates cannot neutralize leadership. AACSB: Application of knowledge Objective: 9.5: Identify and discuss leadership substitutes and neutralizers. 56) How can norms and cohesiveness in a work group neutralize leadership? AACSB: Analytical thinking Objective: 9.5: Identify and discuss leadership substitutes and neutralizers. 57) Contrast leadership substitutes with leadership neutralizers. Difficulty: Difficult AACSB: Analytical thinking Objective: 9.5: Identify and discuss leadership substitutes and neutralizers. 18 Copyright © 2017 Pearson Education, Inc. 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. AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership. 19 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 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. AACSB: Analytical thinking Objective: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership. 20 Copyright © 2017 Pearson Education, Inc. 63) Which of the following best describes the new, modern role of a leader? A) Overseer B) Individualist C) Collectivist D) Coach E) Autocratic Objective: 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 AACSB: Application of knowledge Objective: 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 Difficulty: Moderate AACSB: Application of knowledge Objective: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership. 21 Copyright © 2017 Pearson Education, Inc. 66) A coaching role may include taking on responsibilities as a mentor. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 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. Difficulty: Moderate AACSB: Application of knowledge Objective: 9.6: Discuss leaders as coaches and examine gender and cross-cultural issues in leadership. 22 Copyright © 2017 Pearson Education, Inc. 71) From a coaching perspective, what roles might an organizational leader assume? AACSB: Analytical thinking Objective: 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? AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 23 Copyright © 2017 Pearson Education, Inc. 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 Objective: 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 24 Copyright © 2017 Pearson Education, Inc. 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 Objective: 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. AACSB: Analytical thinking Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 80) Leaders at the now defunct energy company Enron were recognized as having demonstrated exemplarily high ethical leadership. AACSB: Application of knowledge Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 81) Most modern organizations are currently working toward becoming more hierarchical in structure. Difficulty: Moderate AACSB: Application of knowledge Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 25 Copyright © 2017 Pearson Education, Inc. 82) Strategic leadership is a leader's ability to understand the complexities of both the organization and its environment. AACSB: Application of knowledge Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 83) Virtual leadership refers to the role of leaders in a team environment. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 85) Why has virtual leadership become an important issue for organizations? AACSB: Analytical thinking Objective: 9.7: Describe strategic leadership, ethical leadership, and virtual leadership. 26 Copyright © 2017 Pearson Education, Inc. 86) Explain the concept and importance of ethical leadership. Objective: 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 27 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 Difficulty: Moderate AACSB: Application of knowledge Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 28 Copyright © 2017 Pearson Education, Inc. 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. AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 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 AACSB: Application of knowledge Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 29 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Application of knowledge Objective: 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 AACSB: Analytical thinking Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 97) What type of decisions are unstructured and require considerable time, energy, and resources to make? A) Conditional B) Nonprogrammed C) Ethical D) Strategic E) Programmed Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 30 Copyright © 2017 Pearson Education, Inc. 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 AACSB: Analytical thinking Objective: 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 AACSB: Analytical thinking Objective: 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 AACSB: Analytical thinking Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 31 Copyright © 2017 Pearson Education, Inc. 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 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 AACSB: Analytical thinking Objective: 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 AACSB: Analytical thinking Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 32 Copyright © 2017 Pearson Education, Inc. 104) The more important the decision, the more attention needs to be directed to developing alternatives. AACSB: Application of knowledge Objective: 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. AACSB: Application of knowledge Objective: 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. Difficulty: Moderate AACSB: Application of knowledge Objective: 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 leadership in the action. AACSB: Application of knowledge Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 33 Copyright © 2017 Pearson Education, Inc. 108) Programmed decisions are more structured than nonprogrammed decisions, and recur more often. AACSB: Analytical thinking Objective: 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? Difficulty: Moderate AACSB: Analytical thinking Objective: 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. Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. 34 Copyright © 2017 Pearson Education, Inc. 111) Discuss ways in which using a rational perspective to decision making will help when making nonprogrammed decisions. AACSB: Analytical thinking Objective: 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. AACSB: Analytical thinking Objective: 9.8: Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making. [Show More]

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