Chapter 1: The Nature and Importance of
Leadership
1. A defining aspect of leadership is that it includes the ability to
a) communicate with people.
b) delegate responsibility to others.
c) maintain equilibrium in the organization.
d) inspire people's confidence and gain their support.
Ans: d Page: 2
2. One of the definitions of leadership offered in the text deals with figuring out what is
right rather than
a) having other people tell you what is right.
b) explaining what is right.
c) doing what is right.
d) duplicating what is right.
Ans: a Page: 3
3. Leadership can be practiced
a) only in the executive suite.
b) at any level in the organization.
c) only by people whose job title includes “manager.”
d) only when employees are performing below standard.
Ans: b Page: 3
4. Which one of the following is the least important factor in building a partnership
between the leader and group members?
a) Many people working on the same purpose
b) The right for people to express a contrary opinion
c) The leader having most of the accountability
d) Absolute honesty among people
Ans: c Page: 4
5. Rather than leadership being something you do to people, it is considered something
you do
a) against them.
b) with them.
c) after them.
d) before them.
Ans: b Page: 4
,6. A study of both transactional and transformational leadership on the financial
performance of companies found that charismatic leadership
a) has almost no relationship to performance.
b) improved the performance most when conditions were stable.
c) improved the performance when employees were desperate.
d) had the biggest impact when the environment is uncertain.
Ans: d Page: 8
7. According to an analysis of a group of studies, in terms of having an impact on
company performance the leader was about as important as the
a) building in which the company headquarters is located.
b) packaging chosen for the products.
c) industry in which the company operated.
d) price of the stock.
Ans: c Page: 8
8. According to attribution theory, many people perceive leaders to be
a) victims of environmental forces.
b) responsible for the fate of their organizations.
c) controlled by the desires of group members.
d) passive figures in controlling the organization.
Ans: b Page: 9
9. Substitutes for leadership refers to
a) financial incentives that encourage people to work independently.
b) group members who are in charge when the leader is absent.
c) factors in the work setting that make leadership superfluous.
d) extra compensation given to employees who are asked to supervise their own
work.
Ans: c Page: 9
10. Intrinsically satisfying work can be a leadership substitute because such work
a) is so self-motivating that the worker requires very little leadership.
b) usually involves computer technology.
c) is usually performed when the leader is away.
d) lies outside the jurisdiction of leaders.
Ans: a Page: 10
11. The leader irrelevance theory suggests that factors outside the leader's control
a) work at cross purposes against the leader.
b) have a larger impact on business outcomes than does the leader.
c) are more relevant to group members than is the leader.
d) point leaders in an unethical direction.
Ans: b Page: 11
,12. According to the leadership studies of Jim Collins, the most important factor in
organizational performance is the
a) personality of the organization.
b) personality of the leader.
c) product mix offered to the public.
d) efficiency of operations.
Ans: a Page: 11
13. A point made by complexity theory is that leaders and managers
a) create unnecessary complexity in their organizations.
b) can predict accurately which strategies or product mixes will survive.
c) can usually stay one step ahead of environmental forces.
d) can do little to alter the course of the complex organizational system.
Ans: d Page: 11
14. A recommended approach for understanding the impact of leadership on performance
is to ask
a) "Under what conditions do leaders make a difference?"
b) "How well liked is the leader?"
c) "What is the history of the firm?"
d) "What company policies regulate leadership?"
Ans: a Page: 12
15. A company president attends a groundbreaking ceremony for a new children's
hospital located near company headquarters. The president's role is best classified as
that of
a) figurehead.
b) coach.
c) team leader.
d) spokesperson.
Ans: a Page: 14
16. An aspect of the coach and motivator role of the leader is to
a) deal with outside groups.
b) display loyalty to superiors.
c) informally recognize team member achievements.
d) bargain with superiors for funds, facilities, and equipment.
Ans: c Page: 14
17. Middle manager Sara is engaged in the team builder role when she
a) negotiates for a larger budget for her team.
b) represents her group at a company meeting.
c) holds a meeting to talk about team accomplishments.
d) helps the group solve a technical problem.
Ans: c Page: 15
, 18. Marketing vice president Derek is engaged in the strategic planner role when he
a) takes a key customer to lunch.
b) coaches an account executive on how to close a major sale.
c) makes plan for enlarging the office.
d) looks for ideas in the outside world that could help the company.
Ans: d Page: 15
19. An advantage of being a leader noted in the leadership text is
a) being able to avoid the long hours typically worked by team members.
b) loads of overtime pay.
c) the opportunity to sidestep organizational politics.
d) a chance to help others grow and develop.
Ans: d Page: 16
20. A potential disadvantage of being a leader is
a) losing contact with paperwork and email.
b) isolation from problems involving people.
c) having fewer people to confide in about work-related issues.
d) being out of the loop in terms of company policies.
Ans: c Page: 19
21. The central theme of the nine dilemmas faced by leaders is
a) controlling costs versus spending money.
b) granting people the authority to act independently yet getting them aligned.
c) built-in conflicts between labor and management.
d) motivating versus satisfying employees.
Ans: b Page: 20
22. One meaning of the formula L = f ( l,gm,s) is that leadership is partially a function of
a) gross marketing share.
b) group members.
c) gross national product.
d) satisfactions of the leader's boss.
Ans: b Page: 20
23. Leadership effectiveness, as defined in the framework for understanding leadership,
refers to the leader
a) being impressive enough to get promoted.
b) attaining desirable outcomes such as productivity and satisfaction.
c) creating an attractive vision.
d) turning over decision-making responsibility to group members.
Ans: b Page: 20
Leadership
1. A defining aspect of leadership is that it includes the ability to
a) communicate with people.
b) delegate responsibility to others.
c) maintain equilibrium in the organization.
d) inspire people's confidence and gain their support.
Ans: d Page: 2
2. One of the definitions of leadership offered in the text deals with figuring out what is
right rather than
a) having other people tell you what is right.
b) explaining what is right.
c) doing what is right.
d) duplicating what is right.
Ans: a Page: 3
3. Leadership can be practiced
a) only in the executive suite.
b) at any level in the organization.
c) only by people whose job title includes “manager.”
d) only when employees are performing below standard.
Ans: b Page: 3
4. Which one of the following is the least important factor in building a partnership
between the leader and group members?
a) Many people working on the same purpose
b) The right for people to express a contrary opinion
c) The leader having most of the accountability
d) Absolute honesty among people
Ans: c Page: 4
5. Rather than leadership being something you do to people, it is considered something
you do
a) against them.
b) with them.
c) after them.
d) before them.
Ans: b Page: 4
,6. A study of both transactional and transformational leadership on the financial
performance of companies found that charismatic leadership
a) has almost no relationship to performance.
b) improved the performance most when conditions were stable.
c) improved the performance when employees were desperate.
d) had the biggest impact when the environment is uncertain.
Ans: d Page: 8
7. According to an analysis of a group of studies, in terms of having an impact on
company performance the leader was about as important as the
a) building in which the company headquarters is located.
b) packaging chosen for the products.
c) industry in which the company operated.
d) price of the stock.
Ans: c Page: 8
8. According to attribution theory, many people perceive leaders to be
a) victims of environmental forces.
b) responsible for the fate of their organizations.
c) controlled by the desires of group members.
d) passive figures in controlling the organization.
Ans: b Page: 9
9. Substitutes for leadership refers to
a) financial incentives that encourage people to work independently.
b) group members who are in charge when the leader is absent.
c) factors in the work setting that make leadership superfluous.
d) extra compensation given to employees who are asked to supervise their own
work.
Ans: c Page: 9
10. Intrinsically satisfying work can be a leadership substitute because such work
a) is so self-motivating that the worker requires very little leadership.
b) usually involves computer technology.
c) is usually performed when the leader is away.
d) lies outside the jurisdiction of leaders.
Ans: a Page: 10
11. The leader irrelevance theory suggests that factors outside the leader's control
a) work at cross purposes against the leader.
b) have a larger impact on business outcomes than does the leader.
c) are more relevant to group members than is the leader.
d) point leaders in an unethical direction.
Ans: b Page: 11
,12. According to the leadership studies of Jim Collins, the most important factor in
organizational performance is the
a) personality of the organization.
b) personality of the leader.
c) product mix offered to the public.
d) efficiency of operations.
Ans: a Page: 11
13. A point made by complexity theory is that leaders and managers
a) create unnecessary complexity in their organizations.
b) can predict accurately which strategies or product mixes will survive.
c) can usually stay one step ahead of environmental forces.
d) can do little to alter the course of the complex organizational system.
Ans: d Page: 11
14. A recommended approach for understanding the impact of leadership on performance
is to ask
a) "Under what conditions do leaders make a difference?"
b) "How well liked is the leader?"
c) "What is the history of the firm?"
d) "What company policies regulate leadership?"
Ans: a Page: 12
15. A company president attends a groundbreaking ceremony for a new children's
hospital located near company headquarters. The president's role is best classified as
that of
a) figurehead.
b) coach.
c) team leader.
d) spokesperson.
Ans: a Page: 14
16. An aspect of the coach and motivator role of the leader is to
a) deal with outside groups.
b) display loyalty to superiors.
c) informally recognize team member achievements.
d) bargain with superiors for funds, facilities, and equipment.
Ans: c Page: 14
17. Middle manager Sara is engaged in the team builder role when she
a) negotiates for a larger budget for her team.
b) represents her group at a company meeting.
c) holds a meeting to talk about team accomplishments.
d) helps the group solve a technical problem.
Ans: c Page: 15
, 18. Marketing vice president Derek is engaged in the strategic planner role when he
a) takes a key customer to lunch.
b) coaches an account executive on how to close a major sale.
c) makes plan for enlarging the office.
d) looks for ideas in the outside world that could help the company.
Ans: d Page: 15
19. An advantage of being a leader noted in the leadership text is
a) being able to avoid the long hours typically worked by team members.
b) loads of overtime pay.
c) the opportunity to sidestep organizational politics.
d) a chance to help others grow and develop.
Ans: d Page: 16
20. A potential disadvantage of being a leader is
a) losing contact with paperwork and email.
b) isolation from problems involving people.
c) having fewer people to confide in about work-related issues.
d) being out of the loop in terms of company policies.
Ans: c Page: 19
21. The central theme of the nine dilemmas faced by leaders is
a) controlling costs versus spending money.
b) granting people the authority to act independently yet getting them aligned.
c) built-in conflicts between labor and management.
d) motivating versus satisfying employees.
Ans: b Page: 20
22. One meaning of the formula L = f ( l,gm,s) is that leadership is partially a function of
a) gross marketing share.
b) group members.
c) gross national product.
d) satisfactions of the leader's boss.
Ans: b Page: 20
23. Leadership effectiveness, as defined in the framework for understanding leadership,
refers to the leader
a) being impressive enough to get promoted.
b) attaining desirable outcomes such as productivity and satisfaction.
c) creating an attractive vision.
d) turning over decision-making responsibility to group members.
Ans: b Page: 20
