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Mastering Organizational Behavior 14th

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Chapter 11
Leadership Effectiveness: New Perspectives
TRUE/FALSE

1. In Learning from Experience: Isadore Sharp, founder of the Four Seasons Hotels and
Resorts, knew that customer service would differentiate his hotels from others.

ANS: T
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Factual
AACSB: Analytical Thinking

2. A transactional leader takes a hands-off approach to managing and relies on subordinates


to create their own goals.

ANS: F
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

Feedback: Transactional leadership involves motivating and directing followers primarily


through appealing to their own self-interests.

3. Corinne actively monitors the reports submitted by her staff and has a list of procedures to
follow to create the reports. She is an example of a transactional leader.

ANS: T
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Application
AACSB: Knowledge Application

4. In Change Competency: When Meg Whitman took over as CEO of Hewlett-Packard, she
said that job one was to lower bottom-line costs and provide customers with a better
product.

ANS: F
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Factual
AACSB: Analytical Thinking

Feedback: When Meg Whitman took over as CEO, job one was engineering some trust
and stability.

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5. A transformational leader is one who anticipates future trends and develops others to be
better leaders.

ANS: T
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

6. The degree to which a leader attends to followers’ needs and acts as a mentor or coach is
called intellectual stimulation.

ANS: F
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

Feedback: The term individualized consideration refers to the degree to which a leader
attends to followers’ needs and acts as a mentor or coach.

7. The prevailing view of a transactional leader is that it is better to question ourselves than
to leave all of the questioning about us to our competitors.

ANS: F
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

Feedback: This is the prevailing view of a transformational leader not a transactional


leader.

8. A leader’s vision expresses fundamental aspirations and purpose, usually by appealing to


people’s emotions and minds.

ANS: T
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Factual
AACSB: Analytical Thinking

9. Charisma results when people come together create new alternatives and solutions that are
better than their individual efforts.

ANS: F
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Factual
AACSB: Analytical Thinking

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Feedback: When people come together to create new alternatives and solutions that are
better than their individual efforts it is called synergy.

10. In Diversity Competency: Sheryl Sandberg, COO of Facebook, wrote her book Lean In
when she noticed that fewer women were staying home to raise their children.

ANS: F
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Factual
AACSB: Analytical Thinking

Feedback: Sandberg’s book Lean In was written when she noticed that fewer women at
the company were asking for leadership positions than men.

11. To be a moral manager, a person must proactively attempt to shape followers’ values by
role modeling ethical behavior, communicating the importance of ethics, enforcing ethical
standards, and showing care and concern for followers.

ANS: T
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Factual
AACSB: Analytical Thinking

12. If higher level leaders in an organization demonstrate ethical behavior, employees at lower
levels of the firm are likely to mimic this behavior.

ANS: T
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

13. Authoritarian leaders are those who know and understand themselves, know what they
believe and value, and act on their values and beliefs through open and honest
communication with subordinates.

ANS: F
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

Feedback: This is the definition of authentic leadership not authoritarian leadership.

14. An authentic leader will foster a subordinate’s sense of hope by communicating important
information they need to reach their goals.

ANS: T

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CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

15. In Self Competency: According to Bill George, if a company is in crisis, a leader should
volunteer first before asking others to sacrifice.

ANS: T
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Factual
AACSB: Analytical Thinking

MULTIPLE CHOICE

16. In Learning from Experience: According to Four Seasons Hotels and Resorts founder,
Isadore Sharp, what policy is the reason for his company’s success?
a. Glory is fleeting, but obscurity is forever: Make your brand known.
b. The Golden Rule: Treat people well, the way you would like to be treated.
c. A bird in the hand is worth two in the bush: Focus on the person before you.
d. We hold these truths to be self evident: Work hard to be successful.

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Factual
AACSB: Analytical Thinking

17. Which leadership style focuses on setting performance expectations and goals and
providing feedback to followers?
a. transactional
b. authoritarian
c. transformational
d. passive

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

18. As department manager, Ryan rewards each of his sales staff with a $25 credit card when
they achieve their monthly sales goal. What type of leadership does this demonstrate?
a. transformational
b. passive
c. authoritarian
d. transactional

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ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Application
AACSB: Knowledge Application

19. The three primary components of a transactional leader are (1) provide contingent
rewards, (2) exhibit active management by exception, and (3)
a. promote team cooperation.
b. exhibit a “hands off” policy.
c. emphasize passive management by exception.
d. embrace and exhibit mutual respect.

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Factual
AACSB: Analytical Thinking

20. A transactional leader who is exhibiting active management by exception would be likely
to
a. enforce rules to prevent mistakes.
b. wait to take action until mistakes are brought to their attention.
c. use punishment in response to poor performance.
d. allow subordinates to work without monitoring them.

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

21. Molly is an example of a(n) ____ leader because she took responsibility when her
department decided to discontinue the breakfast cereal from the company’s product line
and developed an action plan for her team to create a new breakfast product.
a. authoritarian
b. passive
c. transactional
d. transformational

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Application
AACSB: Knowledge Application

22. Michael told Parul she could have a corner office with views of the lake if she was able to
convince the client to come back to their company. What type of leadership is Michael
displaying?
a. transformational

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b. transactional
c. passive
d. authoritarian

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Application
AACSB: Knowledge Application

23. A transactional leader is likely to link achievement of goals to


a. company policy.
b. standard practices.
c. their personal input.
d. a reward.

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

24. The power of transactional leaders stems from their


a. formal authority in the company.
b. ability to allow subordinates freedom.
c. ability to be a visionary.
d. thoughtful contemplation of culture.

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

25. An effective transactional leader is likely to ask which of these questions?


a. What’s in it for me?
b. Why are we choosing to do it this way?
c. What needs to be done?
d. Why did you do that?

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

26. Lynnette’s boss told her she would receive a substantial pay raise and a company car
when she met the sales goals established by the company. What type of leader would
promise these types of rewards?
a. transactional

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b. passive
c. authoritarian
d. transformational

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Application
AACSB: Knowledge Application

27. In Change Competency: Meg Whitman, CEO of Hewlett-Packard, says that when leading
a change, you have to be exactly
a. who the company wants you to be.
b. who you are.
c. what the employees think you are.
d. what you hope others see you as.

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transactional Leadership
Bloom's: Factual
AACSB: Analytical Thinking

28. A transformational leader would be described as


a. inspiring.
b. passive.
c. dominant.
d. complacent.

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

29. As the owner of the company, Rick feels it is his job to develop his management team to
be better leaders and build the organization into a group of challenged and rewarded
learners. Which type of leadership is Rick displaying?
a. transactional
b. passive
c. transformational
d. authoritarian

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

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30. Nicole believes her company should take the risk of creating a separate start-up and
create new channels for consumers to purchase their farm-to-table produce. She has been
described as a visionary by her staff. Which type of leadership is Nicole displaying?
a. authoritarian
b. passive
c. transactional
d. transformational

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

31. Which type of leader is recognized as a person who anticipates future trends?
a. transformational
b. authoritarian
c. passive
d. transactional

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

32. The degree to which a leader attends to the needs of followers and listens to their
concerns is called
a. inspirational motivation.
b. individualized consideration.
c. idealized influence.
d. intellectual stimulation.

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Factual
AACSB: Analytical Thinking

33. Mai-Lai carefully listens to her employee, Serena, who is concerned about losing her
status in the department if she works from home two days each week. Mai-Lai assures
Serena that she will help her work through the transition, and they decide to have a
weekly phone conversation to share important information. Which aspect of a
transformational leader is Mai-Lai demonstrating?
a. intellectual stimulation
b. idealized influence
c. individualized consideration
d. cognitive dissonance

ANS: c

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CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

34. Nathan encourages his staff to “think outside of the box” and be creative with ideas for
the new advertising campaign. Which characteristic of a transformational leader is he
using?
a. intellectual stimulation
b. idealized influence
c. individualized consideration
d. inspirational motivation

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

35. Reggie realizes that many of his staff members are hesitant to suggest changes to the loan
application program because they know he had created it ten years ago. At the next
meeting, he plans to tell them to “throw my old way out the window and figure out what
we need to do for today’s customer.” His use of _____ suggests he is a transformational
leader.
a. individualized consideration
b. idealized influence
c. cognitive dissonance
d. intellectual stimulation

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

36. A transformational leader would say that risk taking is


a. necessary.
b. unpleasant.
c. avoidable.
d. quantifiable.

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

37. _____ is the degree to which leaders articulate a vision that appeals to followers.
a. Individualized consideration
b. Inspirational motivation

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c. Idealized influence
d. Intellectual stimulation

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

38. Johan was using _____ when he told his staff he was proud of all their hard work and
announced their vision of globalizing was coming true and offices in Canada, Argentina,
and Denmark would be realized within the year.
a. idealized influence
b. intellectual stimulation
c. inspirational motivation
d. individualized consideration

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

39. A transformational leader embraces a(n) _____ that expresses fundamental aspirations
and purpose typically by appealing to peoples’ emotions and minds.
a. charisma
b. vision
c. behavior
d. value

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

40. A manager who appeals to the employees’ sense of pride to motivate them to do their job
is demonstrating _____ leadership.
a. authoritarian
b. passive
c. transactional
d. transformational

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

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41. Meg admires and respects her manager because he allows his staff the freedom to
question what is being advocated. She also feels he uses his power, not for his personal
gain, but to move the team toward a goal. Which characteristic of a transformational
leader does Meg notice in her manager?
a. intellectual stimulation
b. individualized consideration
c. idealized influence
d. inspirational motivation

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

42. When Patrice is having difficulty with a customer, she calls her manager Gregor to help.
Gregor is very charismatic and people instantly feel comfortable talking with him –
Patrice wishes she had this same ability. Patrice is aware of Gregor’s
a. inspirational motivation.
b. idealized influence.
c. intellectual stimulation.
d. individualized consideration.

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

43. When assessing whether Kendra is an effective manager, Robert questions whether she
has developed and communicated a clear and customer-focused direction for her
department. What aspect of Kendra’s work is Robert evaluating?
a. intellectual stimulation
b. individualized consideration
c. idealized influence
d. inspirational motivation

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Knowledge Application

44. ____ is described as motivating and directing followers by developing in them a strong
emotional commitment to a vision and set of shared values.
a. Charisma
b. Perception
c. Vision
d. Synergy

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ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

45. When Phoebe and Manuel offered different solutions for reducing shipping costs on
overnight orders, they realized that by combining both of their ideas, the company would
save even more money. This is an example of
a. perception.
b. vision.
c. synergy.
d. charisma.

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Application
AACSB: Teamwork

46. The greatest chance for achieving synergy occurs when


a. people agree on the best way to accomplish a task.
b. people don’t see things the same way.
c. companies create controls and policies.
d. a leader makes all final decisions.

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

47. A leader who exhibits _____ behaviors is recommended when creating an upper
management team with diverse members because this type of leader is willing to listen to
understand another person.
a. transactional
b. authoritarian
c. transformational
d. passive

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Conceptual
AACSB: Diversity

48. In Diversity Competency: Sheryl Sandberg, COO of Facebook, authored the book Lean
In and feels a responsibility to give women the tools they need to
a. finance higher education.
b. find happiness after having a child.

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c. work as subordinates to men.
d. assume leadership roles.

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Transformational Leadership
Bloom's: Factual
AACSB: Diversity

49. _____ leadership involves the demonstration of normatively appropriate conduct by a


manager through his or her interpersonal relationships and the promotion of appropriate
conduct to followers through communication, reinforcement, and decision making.
a. Ethical
b. Transactional
c. Authentic
d. Transformational

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Factual
AACSB: Analytical Thinking

50. Keith informs his employees that the company Wi-Fi is for tasks related to their jobs and
not for personal use. When they are in a meeting and need information about something
not related to the project they are discussing, he makes sure to demonstrate how he uses
his data and not the company Wi-Fi to secure the information. Keith’s actions are an
example of _____ leadership.
a. transformational
b. ethical
c. transactional
d. passive

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Application
AACSB: Knowledge Application

51. A moral person is someone who is


a. decisive.
b. complacent.
c. trustworthy.
d. dishonest.

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

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52. Maria is confident in her ability to get the warehouse reorganized so the company can
keep better track of inventory. Her boss has guided her through similar tasks before and
has praised her work on past jobs. What characteristic is Maria exhibiting?
a. indecision
b. self-efficacy
c. egoism
d. honesty

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Application
AACSB: Knowledge Application

53. To be an ethical leader, a person needs to be


a. a charismatic person and a person with vision.
b. the leader and the follower.
c. both internal and external in thoughts and actions.
d. a moral person and a moral manager.

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

54. The flow of ethical leadership in an organization is typically


a. from the top-down.
b. horizontal across departments.
c. from the bottom-up.
d. contained to each individual.

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

55. The owners of the company where Raul works show a great deal of concern for
employees. Office furnishings, carpets, and storage systems are upgraded every five
years, and each employee can request an upgraded computer system every two years. The
company also demonstrates ethical behaviors in dealing with the environment and when
working with foreign entities. Raul’s company is an example of a(n)
a. ethnocentric.
b. moral manager.
c. transactional leader.
d. transformational leader.

ANS: b

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CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Application
AACSB: Knowledge Application

56. The flow of ethical leadership in a company occurs based on three reasons. Which of the
following is NOT one of those reasons?
a. social learning process
b. cultural effects
c. competitor effects
d. formal systems and policies

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Ethical Leadership
Bloom's: Factual
AACSB: Analytical Thinking

57. Which type of leadership encompasses individuals who know and understand themselves,
know what they believe and value, and act on their values and beliefs through open and
honest communication with subordinates?
a. authentic
b. transformational
c. passive
d. transactional

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Factual
AACSB: Analytical Thinking

58. Collette has five employees in her department, each with a very distinct idea about how
to organize the company display at the convention. She respects diverse viewpoints and
strives to empower them to bring their ideas together and come up with a plan. Collette
recognizes and values her followers’ underlying talents and will help to build them into
workable strengths and competencies. Collette is behaving like a(n) _____ leader.
a. transactional
b. passive
c. authoritarian
d. authentic

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Application
AACSB: Teamwork

59. An authentic leader is most similar to a(n) _____ leader.


a. transformational

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b. passive
c. authoritarian
d. transactional

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

60. What is one of the core components of an authentic leader?


a. provides contingent rewards
b. raises optimism
c. exhibits active management by exception
d. demonstrates individualism

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

61. Stefan worked with his employee, Jennifer, to come up with three goals for next year and
they created a plan to help her meet those goals. An authentic leader uses this process to
create ____ within an employee.
a. value
b. charisma
c. hope
d. integrity

ANS: c
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Application
AACSB: Knowledge Application

62. Jamal encourages open communication in his department and wants his staff to tell him
both the good and the bad. As an authentic leader, Jamal’s actions create _____ within
his department.
a. hope
b. trust
c. charisma
d. bias

ANS: b
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Application
AACSB: Knowledge Application

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63. Matthew reminded his staff that just because the first test market didn’t purchase the
cereal, there were three other test markets they would place the product in; this was just a
temporary setback in their progress. What characteristic of an authentic leader is Matthew
exemplifying?
a. optimism
b. charisma
c. complacency
d. trust

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Application
AACSB: Knowledge Application

64. A(n) _____ leader is most likely to say “When I mess up, I will fess up.”
a. passive
b. authoritarian
c. transactional
d. authentic

ANS: d
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Conceptual
AACSB: Analytical Thinking

65. In Self Competency: When discussing authentic leaders, Bill George notes, “No matter
how bad things are,
a. they will get worse.”
b. you’ve already survived the worst.”
c. they can’t get any worse.”
d. someone else has it worse.”

ANS: a
CH: 11. Leadership Effectiveness: New Perspectives
TOP: Authentic Leadership
Bloom's: Factual
AACSB: Analytical Thinking

ESSAY

66. List and describe the three primary components of transactional leadership. Provide an
example of these components in use.

ANS:

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(1) Provides contingent rewards. A transactional leader links the achievement of a goal
to a reward. These leaders set and clarify detailed goals to obtain short-term and
measurable results. A manager might guarantee the receipt of a bonus or stock
option in direct exchange for measurable things the manager wants such as an
employee meeting all of the goals established by the company or manager.
(2) Exhibits active management by exception. A transactional leader actively monitors
the work performed by staff and will take corrective actions if they don’t follow
proper procedures.
(3) Emphasizes passive management by exception. Transactional leaders step in if
unacceptable performance by an employee occurs. The manager will use corrective
actions and possibly punishment, such as firing an employee or denying
advancement within the company, as a response to unacceptable performance.
Note: Student examples will vary.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Transactional Leadership
Bloom's: Analytic
AACSB: Analytical Thinking

67. Characterize behaviors associated with transactional leaders.

ANS:
There are five practices a transactional leader is likely to engage in. First off, they ask
“What needs to be done?” They tend to place too much emphasis on short-term goals
and day-to-day operations. Second, this type of leader also asks, “What is right for the
organization?” In other words, there is little regard for what might be right for the
employees. As a result, the relationship between transactional leaders and followers is
not based on an emotional bond. Third, a transactional leader develops action plans.
They tend to stifle creativity, and new ideas that come from lower organizational levels
are not welcome. They might ignore an idea that doesn’t fit in with their plan. Fourth,
transactional leaders take responsibility for decisions and do not rely on subordinates for
this task. Last, they also take responsibility for communicating. They will clarify exactly
what performance standards are desired by others and state the extrinsic rewards based
on these. Transactional leaders are highly directive and action oriented, if not
dominating.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Transactional Leadership
Bloom's: Analytic
AACSB: Reflective Thinking

68. Describe a transformational leader.

ANS:

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A transformational leader anticipates future trends and inspires staff members to
embrace new possibilities. They will develop others in their own leadership roles and
strive to build an organization into a community of challenged and rewarded learners.
The transformational leader can be described as visionary, inspiring, daring, and ethical.
They are typically risk takers and appreciate new opportunities. But, they are also
thoughtful in the process and consider the interactions of technology, culture,
stakeholders, and other external environment forces.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Transformational Leadership
Bloom's: Analytic
AACSB: Reflective Thinking

69. List and describe the core components of a transformational leader and provide an
example of each of these components.

ANS:
A transformational leader demonstrates individualized consideration. In other words,
they provide specialized attention to each employee’s needs for achievement and
growth. Encouragement is provided to develop successfully higher levels of potential,
and individual differences are embraced and rewarded. A transformational leader
demonstrates intellectual stimulation when they challenge assumptions, take risks, and
solicit the ideas of their staff. They want their staff to explore new ideas and methods in
order to foster creativity. A transformational leader is willing to abandon old practices
that are no longer useful even if the leader had played a role in creating that practice. A
transformational leader demonstrates inspirational motivation by articulating a vision
that appeals to followers. The leader appeals to staff by providing them with a sense of
meaning and challenge and also inspires others by what he or she says and does. A
transformational leader demonstrates idealized influence by behaving in ways that
cause staff members to identify with them. Followers typically admire, respect, and trust
this type of leader and identify with them as a person. Charisma is often associated with
this trait, which involves motivating and directing followers by developing in them a
strong emotional commitment to a vision and a set of shared values.
Note: Student examples will vary.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Transformational Leadership
Bloom's: Analytic
AACSB: Analytical Thinking

70. Explain which type of leadership fosters synergy and describe the effects of synergy.
Give an example of synergy in the workplace.

ANS:

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Transformational leadership fosters synergy because this type of leadership inspires
followers to understand and embrace new possibilities and develops better leadership
skills in others. Synergy is the term given when people together create new alternatives
and solutions that are better than their individual efforts. If everyone is already in
agreement, the chance for achieving synergy lessens. The greatest chance to achieve
synergy occurs when people have different views on things and need to work together to
achieve the final outcome. In essence, differences present opportunities and growth.
Synergy is created by people who think “win-win” and who take time to listen to the
views and opinions of others.
Note: Student examples will vary.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Transformational Leadership
Bloom's: Analytic
AACSB: Reflective Thinking

71. Compare and contrast a transformational leader to a transactional leader.

ANS:
A transformational leader is seen as a leader of vision, confidence, and determination
whether they are leading a small team or an entire organization. They motivate others to
assert themselves and to join in team efforts while feeling positive about their job. They
support employees who make unpopular decisions and who accept reasonable risks.
There is a “right to fail” associated with transformational leaders.

A transactional leader tends to stifle creativity. This leadership style may only work
where organizational problems and goals are clear and well defined. This type of leader
may choose not to reward ideas that do not fit in with personal plans and goals. Extrinsic
rewards, such as financial incentives and status, are used in exchange for good
performance. These leaders are action-oriented and may be quite effective in guiding
plans to cut costs and improve productivity in the short term.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Transformational Leadership
Bloom's: Analytic
AACSB: Reflective Thinking

72. Explain what criteria you could use to evaluate how well a manager portrays idealized
influence.

ANS:
A manager’s leadership effectiveness in relation to idealized influence could be assessed
by considering four items.
(1) Maintains unequivocal commitment to honesty/truth in every facet of behavior
(2) Follows through on commitments; assumes responsibility for own mistakes
(3) Fair and compassionate, yet willing to make difficult decisions
(4) Values and promotes full utilization of global and workforce diversity

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Transformational Leadership

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Bloom's: Analytic
AACSB: Analytical Thinking

73. Describe the core components of ethical leadership.

ANS:
An ethical leader must be both a moral person and a moral manager. As a moral person,
the leader should demonstrate trustworthiness, fairness, and self-discipline. A consistent
work ethic and strong personal values relay the image of a moral person. As a moral
manager, a leader must proactively attempt to shape followers’ values by role modeling
ethical behavior, communicating the importance of ethics, enforcing ethical standards
through rewards and punishments, and showing care and concern for followers. An
employer might demonstrate this by implementing a company philosophy that says
“customers come first, company comes second” and demonstrate this philosophy in their
own behavior.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Ethical Leadership
Bloom's: Analytic
AACSB: Analytical Thinking

74. List and describe the five core components of an authentic leader. Provide an example of
each component.

ANS:
(1) Stimulates follower identification: these leaders influence followers’ attitudes and
behaviors that lead to a stronger self-esteem in the follower. These leaders lead by
example and set high moral and ethical standards.
(2) Creates hope: by fostering goals and helping followers identify how to achieve
them, these leaders develop hope. Hope involves a person’s willpower and
waypower to achieve goals. Followers are more likely to commit and be willing to
work on goals that can be achieved.
(3) Reflects trust: this type of leader builds trust by encouraging open communication,
sharing critical information (good and bad), and constructively revealing his or her
perceptions and feelings. By doing this, followers learn what a leader values and
stands for.
(4) Shows positive emotions: a positive reaction encourages followers to figure out how
to solve a problem and fosters creative thinking. This also stimulates identification
within the organization.
(5) Raises optimism: these leaders persevere even when things aren’t going as planned
and this can stimulate followers to do the same. It is the assumption that individuals
can do something to change the situation for the better.
Note: Student examples will vary.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Authentic Leadership
Bloom's: Analytic
AACSB: Analytical Thinking

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75. Define authentic leadership and explain how subordinates react to a leader who portrays
this trait.

ANS:
Authentic leadership refers to individuals who (1) know and understand themselves, (2)
know what they believe and value, and (3) act on their values and beliefs through open
and honest communication with subordinates and others. This type of leadership is
typically respected by subordinates as they are more willing to trust and follow this type
of leader. Authentic leaders tend to build their credibility, which wins the respect of
followers by encouraging and respecting diverse points of view. Key attributes of
authentic leaders are the desire to foster collaborative and trusting relationships with
followers, customers, shareholders, and other stakeholders. They have a genuine desire
to serve and not control others through their leadership. Employees appreciate that this
type of leadership values subordinates’ individual differences and underlying talents,
and helps them build their talents into workable strengths.

CH: 11. Leadership Effectiveness: New Perspectives


TOP: Authentic Leadership
Bloom's: Analytic
AACSB: Analytical Thinking

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