Chapter 12

Leadership and Culture

Multiple Choice Questions

1. (p. 368) _____________ is the process and practice by key executives of guiding and
shepherding people in an organization toward a vision over time and developing that
organization's future leadership and organizational culture.
A. Organizational structure
B. Organizational strategy
C. Organizational leadership
D. Cultural context

Difficulty: Easy
Learning Objective: 1

2. (p. 370) Which of the following is NOT a way through which leaders galvanize commitment
to embrace change?
A. Involve every employee in corporate strategic decision making
B. Shape organizational culture
C. Build the organization
D. Clarify strategic intent

Difficulty: Easy
Learning Objective: 1

3. (p. 370) Leaders galvanize commitment to embrace change through clarifying strategic intent,
building an organization, and
A. by strategic planning
B. developing a mission
C. developing a Vision
D. shaping organizational culture
Difficulty: Medium
Learning Objective: 1
4. (p. 370) Leaders galvanize commitment to embrace change through __________, building an
organization, and shaping organizational culture.
A. by strategic planning
B. developing a mission
C. developing a Vision
D. clarifying strategic intent

Difficulty: Medium
Learning Objective: 1

5. (p. 370) Leaders help their company embrace change by setting forth their ________ a clear
sense of where they want to lead the company and what results they expect to achieve.
A. Strategic quota
B. Mission
C. Vision
D. Strategic intent

Difficulty: Medium
Learning Objective: 1

6. (p. 370) Traditionally, the concept of _________ has been a description or picture of what the
company could be that accommodates the needs of all its stakeholders.
A. Mission
B. Vision
C. Strategy
D. Performance

Difficulty: Medium
Learning Objective: 2

7. (p. 370) A _________ is an articulation of a simple criterion or characterization of what the

leader sees the company must become to establish and sustain global leadership.
A. Leader's principle
B. Mission
C. Leader's vision
D. Strategic intent

Difficulty: Medium
Learning Objective: 2
8. (p. 371) Vision should be
A. varied
B. complex
C. simple
D. long

Difficulty: Medium
Learning Objective: 2

9. (p. 371) The statement, “Facebook helps you connect and share with the people in your life,”
is an example of a
A. Leader's principle
B. Mission
C. Leader's vision
D. Strategic intent

Difficulty: Medium
Learning Objective: 2

10. (p. 371) The statement, “Our company is a global business system for which we raise capital
to make concentrate and sell it at an operating profit. Then we pay the cost of that capital.
Shareholders pocket that difference,” is an example of a
A. Leader's principle
B. Mission
C. Leader's vision
D. Strategic intent

Difficulty: Medium
Learning Objective: 2
11. (p. 371) A key element of good organizational leadership is to make clear the ___________ a
leader has for the organization and managers in it, as they seek to move toward the vision.
This will help keep the firm on track in the present term.
A. Strategic purpose
B. Strategic goals
C. Alternative structures
D. Performance expectations

Difficulty: Medium
Learning Objective: 2

12. (p. 371) Vision is a ____ picture.

A. present
B. past
C. future
D. timely

Difficulty: Medium
Learning Objective: 2

13. (p. 373) Because leaders are attempting to embrace change, they are often _____________
their organization.
A. Abandoning
B. Rebuilding or remaking
C. Divesting businesses in
D. Repositioning

Difficulty: Medium
Learning Objective: 2
14. (p. 374) ____________ is the effort to familiarize future leaders with the skills important to
the company and to develop exceptional leaders among the managers you employ.
A. Identifying an action plan
B. Education and leadership development
C. Developing principles
D. Creating passion

Difficulty: Easy
Learning Objective: 3

15. (p. 374) Which one of the following is NOT a way by which good leaders go about building
the organization they want and dealing with problems and issues?
A. Education
B. Perseverance
C. Visioning
D. Principles
Difficulty: Medium
Learning Objective: 2

16. (p. 374) _____ is the capacity to see a commitment through to completion long after most
people would have stopped trying.
A. Principle
B. Passion
C. Perseverance
D. Strategic intent

Difficulty: Medium
Learning Objective: 2

17. (p. 375) ____________ are your fundamental personal standards that guide your sense of
honesty, integrity and ethical behavior.
A. Values
B. Ethics
C. Principles
D. Passions

Difficulty: Medium
Learning Objective: 3
18. (p. 377) A future leader's personal philosophies and choices ___________ for any key
leaders of any organization.
A. Manifest themselves exponentially
B. Are usually diminished over time
C. Always permeate the company
D. Become less pronounced with time

Difficulty: Medium
Learning Objective: 3

19. (p. 377) An effective organization is better built and is strongest when:
A. Its leaders clearly articulate their vision for the firm
B. Its leaders show by example what principles are important
C. Its leaders "manage from afar"
D. Its leaders micromanage the employees of the firm

Difficulty: Easy
Learning Objective: 3

20. (p. 377) _____________ can be seen in principles, honesty and "living by example." This
can become a major force by which a leader will shape and move his or her organization.
A. Prioritization
B. Transparency
C. Strategy
D. Long-term objectives

Difficulty: Easy
Learning Objective: 3
21. (p. 374) Perseverance is the capacity to see a _______ through to completion long after most
people would have stopped trying.
A. Commitment
B. Passion
C. Principle
D. Integrity

Difficulty: Easy
Learning Objective: 3

22. (p. 377) __________ is a highly motivated sense of commitment to what you do and want to
do.
A. Passion
B. Patience
C. Perseverance
D. Principle

Difficulty: Easy
Learning Objective: 3

23. (p. 377) Leaders shape organizational _____ through their passion for the enterprise and the
selection/development of talented managers to be future leaders.
A. strategic intent
B. culture
C. vision
D. strategy

Difficulty: Easy
Learning Objective: 3

24. (p. 377) Leaders look to managers to execute strategy, accept risk and cope with the
complexity of change. So, _________ becomes a major leadership role.
A. Setting short-term strategy
B. Selection and development of key managers
C. Establishing priority among senior executives
D. Limiting managerial "buy-in"

Difficulty: Easy
Learning Objective: 3
25. (p. 379) ___________ will increase pressure on corporations to push authority downward in
their organizations. This means every line manager will have to exercise leadership
prerogatives to an extent unthinkable a generation earlier.
A. Globalization
B. Fragmentation of industries
C. Consolidation of industries
D. The accelerated pace and complexity of business

Difficulty: Medium
Learning Objective: 3

26. (p. 380) According to researcher Ronald Riggio, which one of the following is NOT a
recommended level where senior leaders should develop competency?:
A. self/personal leadership
B. interpersonal leadership
C. dyadic leadership
D. leading teams and organizations

Difficulty: Medium
Learning Objective: 3

27. (p. 381) According to researcher Ronald Riggio, ability to communicate falls under the
_____ level of competence.
A. self/personal leadership
B. interpersonal leadership
C. emotional leadership
D. managerial leadership
Difficulty: Easy
Learning Objective: 3

28. (p. 381) _________ is engendering trust through genuine awareness and openness to people
from diverse backgrounds.
A. Self-management
B. Global mindset
C. Social awareness
D. Social skills

Difficulty: Hard
Learning Objective: 3
29. (p. 380) __________ is to have a deep understanding of oneself, one’s strengths and
challenges.
A. Social empathy
B. Social awareness
C. Social skills
D. Self-awareness

Difficulty: Hard
Learning Objective: 3

30. (p. 381) ___________ is a key for any leader.

A. Motivation
B. Empathy
C. Trust
D. Self-management

Difficulty: Medium
Learning Objective: 3

31. (p. 381) Engendering trust through genuine awareness and openness to people from diverse
backgrounds is called ______.
A. Sympathy
B. Global mindset
C. Relationship
D. Sensitivity

Difficulty: Medium
Learning Objective: 3

32. (p. 381) Trust starts with ____

A. others
B. empathy
C. self
D. social-management

Difficulty: Easy
Learning Objective: 3
33. (p. 381) ___________ is character driven.
A. Trust
B. Empathy
C. Communication
D. Organizational management

Difficulty: Medium
Learning Objective: 3

34. (p. 381) Good leaders are inevitably good verbal and ___ communicators
A. visual
B. emotional
C. oral
D. loud

Difficulty: Medium
Learning Objective: 3

35. (p. 381) A key way the characteristics of the desirable manager manifest themselves in a
manager's routine activities is found in the way they:
A. Seek to get favorable decisions from corporate management
B. Collaborate with others
C. Choose individual workers
D. Seek to get the work of their unit done over time

Difficulty: Medium
Learning Objective: 3

36. (p. 381) Organizational sources of power are derived from:

A. The manager's tenure at the firm
B. The manager's role in the organization
C. The manager's style of working individually
D. The manager's functional tactics

Difficulty: Medium
Learning Objective: 4
37. (p. 381) _________ is formally established based on the manager's position in the
organization.
A. Organization power
B. Reward power
C. Position power
D. Information power

Difficulty: Easy
Learning Objective: 4

38. (p. 381) By virtue of Sam's vice presidency in the organization, certain decision-making
authorities and responsibilities are conferred that he is entitled to use to get things done. This
is an example of:
A. Peer influence
B. Expert influence
C. Punitive power
D. Position power

Difficulty: Medium
Learning Objective: 4
39. (p. 381) ___________ is the source of power many new managers expect to be able to rely
on, but often the least useful.
A. Referent power
B. Reward power
C. Punitive power
D. Position power

Difficulty: Medium
Learning Objective: 4

40. (p. 381) __________ is available when the manager confers something in return for desired
actions and outcomes.
A. Punitive power
B. Referent influence
C. Reward power
D. Information power

Difficulty: Medium
Learning Objective: 4

41. (p. 381) Often a power source, _________ is the type used when Jomar, a business unit
manager, gave Elisa, his subordinate, the option to have a flexible work schedule or to work
from home in return for her finishing several projects on-deadline.
A. Referent power
B. Reward power
C. Information power
D. Peer influence

Difficulty: Easy
Learning Objective: 4
42. (p. 381) ___________ can be particularly effective and is derived from a manager's access to
and control over the dissemination of information that is important to subordinates yet not
easily available in the organization.
A. Information power
B. Organization power
C. Expert influence
D. Referent power

Difficulty: Easy
Learning Objective: 4

43. (p. 381) Jerry was using __________ when he asked his workers to reorganize the
department. They did not yet know why they were doing this, but knew that Jerry had a good
reason that he had not yet shared.
A. Referent power
B. Punitive power
C. Information power
D. Peer influence

Difficulty: Easy
Learning Objective: 4

44. (p. 381) ___________ is the power exercised via coercion or fear of punishment for mistakes
by a manager's subordinates.
A. Expert influence
B. Information power
C. Position power
D. Punitive power

Difficulty: Easy
Learning Objective: 4
45. (p. 381) The assembly line workers had already received cutbacks in bonus compensation
when profits fell last quarter. Rogeco's managers made it clear that unless productivity and
profits were brought back up to the industry benchmarks within two quarters, further cuts
would be made to base pay. This demonstrates:
A. Expert influence
B. Referent influence
C. Information power
D. Punitive power

Difficulty: Medium
Learning Objective: 4

46. (p. 381) Leaders today _________ rely on their personal ability to influence others.
A. Decreasingly
B. Try not to
C. Increasingly
D. Should never

Difficulty: Medium
Learning Objective: 4
47. (p. 381) Personal influence is a form of
A. strategy
B. power
C. motivation
D. reward

Difficulty: Easy
Learning Objective: 4

48. (p. 382) ________, a form of power, comes mainly from three sources: expert, referent and
peer influences.
A. External influence
B. Personal influence
C. Punitive influence
D. Organizational influence

Difficulty: Easy
Learning Objective: 4

49. (p. 382) _________ is derived from a leader's knowledge in a particular area or situation.
A. Expert influence
B. Information power
C. Punitive power
D. Peer influence

Difficulty: Medium
Learning Objective: 4

50. (p. 382) __________ comes from having others want to identify with the leader.
A. Expert influence
B. Peer influence
C. Referent influence
D. Coercive power

Difficulty: Medium
Learning Objective: 4
51. (p. 382) Asif was one of the most charismatic managers at Titan Systems. He had a great
personality and was always very empathetic to employee needs. Asif can be characterized as
having strong:
A. Referent influence
B. Peer influence
C. Expert influence
D. Information power

Difficulty: Medium
Learning Objective: 4

52. (p. 382) ___________ can be a very effective way for leaders to influence the behaviors of
others. This is used when leaders use the assignment of team members and the charge to the
team to influence the outcomes produced.
A. Punitive power
B. Peer influence
C. Information power
D. Referent influence

Difficulty: Easy
Learning Objective: 4

53. (p. 382) Effective leaders:

A. Choose just one key source of power and influence
B. Tend to limit these types of influence and use more legitimate means
C. Usually do not have reason to use more than one of these types of power at a time
D. Make use of all seven sources of power, often in combination

Difficulty: Medium
Learning Objective: 4
54. (p. 382) Bartlett and Ghoshal studied several of the most successful global companies in the
last decade. Their research suggests that combining flexible responsiveness with integration
and innovation:
A. Requires consistency in the management role in a twenty-first century company
B. Is based on an institution, not a process in a twenty-first century company
C. Determines the value of the management role in a twenty-first century company
D. Requires rethinking the management role and the distribution of management roles within
a twenty-first century company

Difficulty: Medium
Learning Objective: 5

55. (p. 382) The ___________ according to Bartlett and Ghoshal involves decisions about
opportunities to pursue and resource deployment.
A. Entrepreneurial process
B. Integration process
C. Innovation process
D. Renewal process

Difficulty: Medium
Learning Objective: 5

56. (p. 382) The ___________ according to Bartlett and Ghoshal involves building and
deploying organizational capabilities.
A. Integration process
B. Innovation process
C. Entrepreneurial process
D. Renewal process

Difficulty: Medium
Learning Objective: 5
57. (p. 382) The ___________ according to Bartlett and Ghoshal involves shaping organizational
purpose and enabling change.
A. Entrepreneurial process
B. Renewal process
C. Integration process
D. Innovation process

Difficulty: Medium
Learning Objective: 5

58. (p. 382) The research of Bartlett and Ghoshal suggests that the critical management
functions:
A. Must be present in the organization, but not necessarily in all three levels of management
B. Is strictly the domain of top management?
C. Should be confined, typically, to the top two management levels
D. Need to be shared and distributed across three management levels

Difficulty: Medium
Learning Objective: 5

59. (p. 382) Developing operating managers and supporting their activities occurs in middle
management as part of the:
A. Integration process
B. Renewal process
C. Innovation process
D. Entrepreneurial process

Difficulty: Hard
Learning Objective: 5

60. (p. 382) In front-line management, creating and pursuing opportunities and managing
contiguous performance improvement is an example of the:
A. Integration process
B. Entrepreneurial process
C. Renewal process
D. Innovation process

Difficulty: Hard
Learning Objective: 5
61. (p. 382) Providing institutional leadership through shaping and embedding corporate purpose
and challenging embedded assumptions at the top management level is reflective of the:
A. Innovation process
B. Integration process
C. Renewal process
D. Entrepreneurial process

Difficulty: Medium
Learning Objective: 5

62. (p. 382) Linking skills, knowledge and resources across units in the middle-management
level demonstrates the:
A. Renewal process
B. Integration process
C. Entrepreneurial process
D. Innovation process

Difficulty: Medium
Learning Objective: 5

63. (p. 382) Attracting resources and capabilities and developing the business at the front-line
management level exemplifies the:
A. Renewal process
B. Integration process
C. Innovation process
D. Entrepreneurial process

Difficulty: Medium
Learning Objective: 5
64. (p. 383) ________ is the set of important assumptions that members of an organization share
in common.
A. Organizational culture
B. Organizational leadership
C. Organizational strategy
D. Organizational change

Difficulty: Easy
Learning Objective: 5

65. (p. 383) The important assumptions shared by members of an organization are often:
A. Very similar to all other organizations in that industry
B. Very obvious to outsiders
C. Unstated
D. Formalized

Difficulty: Medium
Learning Objective: 5

66. (p. 383) An organization’s ______ is similar to an individual’s personality.

A. strategy
B. leadership
C. culture
D. vision

Difficulty: Medium
Learning Objective: 5

67. (p. 383) When a member internalizes the beliefs and values of the firm, the corresponding
behavior is:
A. A shared assumption
B. Extrinsically rewarding
C. Enforced using referent power
D. Intrinsically rewarding

Difficulty: Medium
Learning Objective: 5
68. (p. 383) Assumptions become shared assumptions through __________ among an
organization's individual members.
A. Internalization
B. Externalization
C. Reiteration
D. Reflection

Difficulty: Medium
Learning Objective: 5

69. (p. 383) An organization’s culture is

A stated
B. Very obvious to outsiders
C. intangible
D. Formalized

Difficulty: Medium
Learning Objective: 5

70. (p. 384) Joe Germane, CEO of Brady Healthcare, has made sure to visit each of the
international business units biannually since he was brought on in the firm. This demonstrates
Joe's:
A. Building time in the organization
B. Emphasizing key themes
C. Adapting common themes in a unique way
D. Institutionalizing practices that reinforce desired beliefs

Difficulty: Easy
Learning Objective: 6
71. (p. 384) An organization is much like a(n) __________, in which new members must be
initiated and earn trust and credibility among fellow members.
A. Institution
B. Tribe
C. Army
D. Elite club

Difficulty: Medium
Learning Objective: 6

72. (p. 387) ________ are a person's basis for differentiating right from wrong.
A. Principles
B. Ethical standards
C. Morals
D. Laws

Difficulty: Hard
Learning Objective: 6

73. (p. 387) Power Fund is a long-standing brokerage firm with a great history of high returns
and well-managed growth. The managers at Power Fund repeatedly refer to terms like
"quality," "growth," and "reliability" in the firm's advertisements. This demonstrates
managers':
A. Dissemination of stories and legends about core values
B. Emphasis on key themes or dominant values
C. Building time into the organization
D. Managing the firm globally

Difficulty: Medium
Learning Objective: 6
74. (p. 388) Foto Show, an online full-service photo processing site, institutionalizes its
storytelling among old and new employees alike--they even give awards to reinforce the given
theme. This demonstrates:
A. Emphasizing dominant values
B. Encouraging dissemination of legends about core values
C. Building time in the organization
D. Managing organizational culture in a global organization

Difficulty: Medium
Learning Objective: 6

75. (p. 389) _________ create differences across national boundaries that influence how people
interact, read personal cues and otherwise interrelate socially.
A. Values
B. Religions
C. Social norms
D. Educations

Difficulty: Medium
Learning Objective: 6
76. (p. 388) Which one of the following is NOT a typical belief that shapes organizational
culture
A. A belief in being the best
B. A belief in superior quality and service
C. A belief that suppliers should reign supreme
D. A belief in the importance of informal communication

Difficulty: Medium
Learning Objective: 6

77. (p. 389) __________ about similar circumstances varies from country to country. In North
America, individualism is central, but in Japan, the needs of the group dominate.
A. Values and attitudes
B. Religions
C. Educations
D. Social norms

Difficulty: Medium
Learning Objective: 6

78. (p. 389) __________, manifest in holidays, practices and belief structures, differ in
fundamental ways that must be taken into account as one attempts to shape organizational
culture in a global setting.
A. Values and attitudes
B. Social norms
C. Religion
D. Education

Difficulty: Easy
Learning Objective: 6
79. (p. 389) __________ differs across national borders in the various ways people are
accustomed to learning.
A. Social norms
B. Social awareness
C. Education
D. Religion

Difficulty: Easy
Learning Objective: 6

80. (p. 389) __________ differs across national borders.

A. Vision
B. Mission
C. Education
D. Intent

Difficulty: Easy
Learning Objective: 6

81. (p. 390) When there is a high potential compatibility of changes with the existing culture and
many changes in key organizational factors that are necessary to implement the new strategy:
A. Managers should manage around the culture
B. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural
change
C. Managers should link changes to the basic mission and fundamental organizational norms
D. Managers should focus on reinforcing the culture and achieving synergies

Difficulty: Hard
Learning Objective: 7
82. (p. 390) When there is a low potential compatibility of changes with the existing culture and
many changes in key organizational factors that are necessary to implement the new strategy:
A. Managers should link changes to the basic mission and fundamental organizational norms
B. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural
change
C. Managers should focus on reinforcing the culture and achieving synergies
D. Managers should manage around the culture

Difficulty: Hard
Learning Objective: 7
83. (p. 390) When there is a high potential compatibility of changes with the existing culture and
few changes in key organizational factors that are necessary to implement the new strategy:
A. Managers should focus on reinforcing the culture and achieving synergies
B. Managers should link changes to the basic mission and fundamental organizational norms
C. Managers should manage around the culture
D. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural
change

Difficulty: Hard
Learning Objective: 7

84. (p. 390) When there is a low potential compatibility of changes with the existing culture and
few changes in key organizational factors that are necessary to implement the new strategy:
A. Managers should link changes to the basic mission and fundamental organizational norms
B. Managers should focus on reinforcing the culture and achieving synergies
C. Managers should manage around the culture
D. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural
change

Difficulty: Hard
Learning Objective: 7

85. (p. 390) Using a time of relative stability to remove organizational roadblocks to the desired
culture is one broad theme in attempting to:
A. Manage around culture
B. Maximize synergy
C. Link to mission
D. Reformulate the strategy or culture

Difficulty: Medium
Learning Objective: 7
Essay Questions

86. Define and describe organizational leadership in the context of a leader's action.

Please refer to the introductory discussion on pages 368-370.

Learning Objective: 1

87. What is strategic intent? How is articulating vision an important aspect of clarifying
strategic intent?

Please refer to the discussion titled "Clarifying Strategic Intent" on pages 370-373.

Learning Objective: 2

88. Why is clarifying performance expectations key to articulate strategic intent?

Please refer to the discussion “Performance” on pages 371-373.

Learning Objective: 2

89. How do good leaders use leadership development to build an organization?

Please refer to the discussion on pages 373-374.

Learning Objective: 2

90. Describe three ways good leaders go about building the organization they want and deal
with problems that arise.

Please refer to the discussion titled "Building an Organization," on pages 373-377.

Learning Objective: 3
91. What is meant by “passion” in the context of organizational leadership?

Please refer to discussion titled “passion (of a leader) on pages 377-379.

Learning Objective: 3

92. Discuss the idea that leaders shape organizational culture through their passion for the
enterprise and the selection/development of talented managers to be future leaders.

Please see the discussion “Shaping Organizational Culture” and “Recruiting and Developing
Talented Operational Leadership” on pages 377-382.

Learning Objective: 3

93. What are the three levels of competencies required for senior leaders as per researcher
Ronald Riggio?

Please refer to the discussion on pages 380-381.

Learning Objective: 3

94. Describe the four main sources of power available to an organizational leader.

Please refer to the discussion titled "Recruiting and Developing Talented Operational
Leadership" on page 381.

Learning Objective: 4
95. Describe the sources of personal influence available to a leader.

Please see the discussion on page 382.

Learning Objective: 4

96. Briefly define organizational culture and explain the importance of assumptions.

Please refer to the discussion titled "Organizational Culture," on page 383.

Learning Objective: 5

97. What does it mean to "build time" into an organization. How does length of tenure affect
the leader's relationship with the organization?

Please refer to the discussion titled "Build Time in the Organization," on pages 384-387.

Learning Objective: 5

98. Discuss the framework for managing the strategy-culture relationship that leaders face.

Please refer to Exhibit 12.8 on page 390.

Learning Objective: 5

99. What factors affect how a leader can manage organizational culture in a global context?

Please refer to the discussion titled "Organizational Culture in a Global Organization," on

page 389.

Learning Objective: 6
100. How do organizational stories and legends contribute to organizational culture?

Please refer to the discussion in the section “Encourage Dissemination of Stories and Legends
About Core Values” on page 388.

Learning Objective: 7