BU.920.631
Leadership &
Organizational Behavior
Final Exam Review
(With Solutions)
2025
1
,1. A regional director introduces a decentralized decision-making model
to empower local managers. Six months later, turnover has fallen but
inconsistencies in customer service emerge across units. Which
leadership theory best explains the need to adjust the approach?
A. Transformational Leadership
B. Situational Leadership
C. Transactional Leadership
D. Servant Leadership
Correct ANS: B. Situational Leadership
Rationale: Situational Leadership posits that leaders must adapt style
(directive vs. supportive) based on follower competence and
commitment; decentralization requires ongoing diagnostic adjustments.
2. In a manufacturing plant, a supervisor observes that high-performing
shift teams receive more strategic information and project opportunities.
This differential treatment most closely aligns with:
A. Path-Goal Theory
B. Leader-Member Exchange Theory
C. Behaviorist Reinforcement Theory
D. Social Identity Theory
Correct ANS: B. Leader-Member Exchange Theory
Rationale: LMX explains in-group and out-group distinctions where
leaders develop higher‐quality exchanges with select members, granting
them greater resources and opportunities.
3. A CEO uses vivid storytelling to articulate the company vision, invoking
employees’ shared values and aspirations. This practice exemplifies
which leadership component of the Full Range Model?
A. Contingent Reward
2
, B. Inspirational Motivation
C. Active Management by Exception
D. Laissez-Faire Leadership
Correct ANS: B. Inspirational Motivation
Rationale: Inspirational Motivation involves articulating a compelling
vision and using symbolic language to foster commitment to
organizational goals.
4. During a major restructuring, a change agent holds biweekly “ask me
anything” forums and shares early wins. Which Kotter stage does this
best reflect?
A. Create a Sense of Urgency
B. Empower Broad-Based Action
C. Generate Short-Term Wins
D. Anchor New Approaches in Culture
Correct ANS: C. Generate Short-Term Wins
Rationale: Celebrating early successes sustains momentum and
validates change efforts during transformation.
5. A team leader on a global virtual project deliberately rotates
facilitation roles, encouraging boundary-spanning dialogues. Which
organizational behavior concept is the leader fostering?
A. Social Loafing
B. Psychological Safety
C. Groupthink
D. Role Ambiguity
Correct ANS: B. Psychological Safety
Rationale: Rotating facilitation and open dialogue reduce fear of
speaking up, thus enhancing psychological safety in diverse teams.
3
Leadership &
Organizational Behavior
Final Exam Review
(With Solutions)
2025
1
,1. A regional director introduces a decentralized decision-making model
to empower local managers. Six months later, turnover has fallen but
inconsistencies in customer service emerge across units. Which
leadership theory best explains the need to adjust the approach?
A. Transformational Leadership
B. Situational Leadership
C. Transactional Leadership
D. Servant Leadership
Correct ANS: B. Situational Leadership
Rationale: Situational Leadership posits that leaders must adapt style
(directive vs. supportive) based on follower competence and
commitment; decentralization requires ongoing diagnostic adjustments.
2. In a manufacturing plant, a supervisor observes that high-performing
shift teams receive more strategic information and project opportunities.
This differential treatment most closely aligns with:
A. Path-Goal Theory
B. Leader-Member Exchange Theory
C. Behaviorist Reinforcement Theory
D. Social Identity Theory
Correct ANS: B. Leader-Member Exchange Theory
Rationale: LMX explains in-group and out-group distinctions where
leaders develop higher‐quality exchanges with select members, granting
them greater resources and opportunities.
3. A CEO uses vivid storytelling to articulate the company vision, invoking
employees’ shared values and aspirations. This practice exemplifies
which leadership component of the Full Range Model?
A. Contingent Reward
2
, B. Inspirational Motivation
C. Active Management by Exception
D. Laissez-Faire Leadership
Correct ANS: B. Inspirational Motivation
Rationale: Inspirational Motivation involves articulating a compelling
vision and using symbolic language to foster commitment to
organizational goals.
4. During a major restructuring, a change agent holds biweekly “ask me
anything” forums and shares early wins. Which Kotter stage does this
best reflect?
A. Create a Sense of Urgency
B. Empower Broad-Based Action
C. Generate Short-Term Wins
D. Anchor New Approaches in Culture
Correct ANS: C. Generate Short-Term Wins
Rationale: Celebrating early successes sustains momentum and
validates change efforts during transformation.
5. A team leader on a global virtual project deliberately rotates
facilitation roles, encouraging boundary-spanning dialogues. Which
organizational behavior concept is the leader fostering?
A. Social Loafing
B. Psychological Safety
C. Groupthink
D. Role Ambiguity
Correct ANS: B. Psychological Safety
Rationale: Rotating facilitation and open dialogue reduce fear of
speaking up, thus enhancing psychological safety in diverse teams.
3
