Deck 12: Strategic Leadership

Question 1

According to the flexible leadership theory, the CEO of an organization should ________.

A) focus primarily on short-term objectives such as quarterly profits
B) provide heroic, charismatic leadership for the organization
C) coordinate leadership processes across levels and subunits
D) emphasize direct behaviors more than management programs and systems

Answer 1

C

Question 2

How is a strong organizational culture related to the financial performance of an organization?

A) Performance is enhanced.
B) Performance is reduced.
C) Performance may be enhanced or reduced.
D) There is little impact on performance.

Answer 2

C

Question 3

Much of the early leadership literature was concerned with ________ in organizations, but in more recent years there has been increased interest in "strategic leadership" by ________.

A) supervisors; top executives
B) middle managers; supervisors
C) top executives; supervisors
D) top executives; middle managers

Answer 3

A

Question 4

When the competition is intense and the environment is changing rapidly, it is especially important to ________.

A) have detailed plans and operating procedures
B) increase the power of the chief executive
C) maintain a high level of external monitoring
D) strengthen the organization culture

Question 5

Which guideline about management programs and systems is most consistent with flexible leadership theory?

A) Programs and systems should be used to reduce the number of individual managers that are needed.
B) A program or system should not be used if more than one performance determinant will be affected.
C) A program or system should not duplicate the effects of direct behavior by individual managers.
D) Programs and systems should be supported by the direct behavior of individual managers.

Question 6

What is the BEST summary of findings in research on leadership succession?

A) Chief executives have little influence on organization performance due to the overwhelming influence of economic and market conditions.
B) Chief executives have a strong impact on organization performance and are the primary determinant of whether the organization prospers or declines.
C) Chief executives have a moderate impact on organizational performance when measured over a period of several years.
D) Chief executives influence stock prices but have little or no influence on the firm's actual economic performance.

Question 7

The shift in focus of leadership literatures reflects an increased interest in understanding how executives can transform their companies to cope with all of the following EXCEPT ________.

A) globalization
B) maintaining the status quo
C) increasing international competition
D) rapid technological and social change

Question 8

Research finds that major changes in companies are usually initiated by ________.

A) a strong chief executive who has occupied the position for many years
B) an internal successor selected by the prior chief executive before retiring
C) an internal successor selected to replace the prior CEO who was forced out
D) an external successor brought in to replace a CEO who was forced out

Question 9

Which of the following was NOT given as a guideline for external monitoring?

A) Examine a wide range of developments and trends in the environment.
B) Make an extra effort to learn what clients and customers want and need.
C) Identify both the strengths and weaknesses of competing products.
D) Rely primarily on your own intuition to analyze the environment.

Question 10

According to Schein, organization culture is BEST described as ________.

A) basic values and beliefs shared by members of the organization
B) member perception of the primary mission of the organization
C) the values and objectives espoused by the top executives
D) member commitment to the organizational objectives

Question 11

Which condition is NOT likely to limit a chief executive's discretion to make major changes in the strategy of an organization?

A) The organization has a few major clients who account for most sales.
B) The organization has ample financial reserves.
C) The culture of the organization is strong.
D) The organization has a strong board of directors.

Question 12

In what situation are executive teams LEAST likely to be useful?

A) The organization includes several business units with diverse products.
B) There is intense competition among executives to become the next CEO.
C) The organization has a complex and turbulent environment.
D) The executives in the team have very diverse backgrounds and perspectives.

Question 13

Which of the following theories MOST strongly emphasizes the importance of emergent processes for the adaptation of organizations to their environment?

A) complexity leadership theory
B) relational leadership theory
C) informal leadership theory
D) distributed leadership theory

Question 14

When an organization has declining performance, a CEO who has been in office for many years is LEAST likely to ________.

A) look for ways to improve implementation of the existing strategy
B) make small, incremental changes in the strategy
C) give a pep talk and urge people to redouble their effort
D) make major changes in the organization's strategy

Question 15

Which of the following actions by the CEO is NOT likely to improve the effectiveness of an executive team?

A) Clearly define objectives consistent with shared values of team members.
B) Eliminate most meetings and use email to communicate separately with individuals.
C) Give the team considerable discretion but specify limits of team authority.
D) Rely more on advice from members with the most expertise.

Question 16

Which condition is LEAST important for the success of a new strategy?

A) It is similar to a strategy that was previously successful.
B) It is based on the core competencies of the organization.
C) It is compatible with significant changes in the external environment.
D) It has a few clear themes relevant to the shared values of the members.

Question 17

Which is NOT a core performance determinant for an organization in the flexible leadership theory?

A) efficiency and process reliability
B) leader experience and intelligence
C) human resources and relations
D) innovation and adaptation

Question 18

According to flexible leadership theory, strategic leadership is MOST difficult when ________.

A) adaptation is more important than the other performance determinants
B) efficiency is more important than the other performance determinants
C) the performance determinants are all very important
D) the performance determinants all differ in importance

Question 19

Adaptation is more important when the external environment is ________.

A) volatile
B) certain
C) stable
D) predictable

Question 20

An important responsibility for ________ is to formulate strategies for the future survival and prosperity of the organization.

A) hourly employees
B) supervisors
C) middle management
D) top executives

Question 21

________ means avoiding unnecessary delays, errors, quality defects, or accidents.

A) Adaptation
B) Efficiency
C) Competitiveness
D) Process reliability

Question 22

The second general approach to influencing the determinants of organizational performance, making decisions about competitive strategy, organization structure, and management programs, ________ influences individuals and groups.

A) in no way
B) directly
C) indirectly
D) negatively

Question 23

________ is the use of people and resources to carry out essential operations in a way that minimizes costs and avoids wasted effort and resources.

A) Adaptation
B) Efficiency
C) Competitiveness
D) Reliability

Question 24

Which is NOT an example of a process and quality improvement program?

A) quality circles
B) TQM
C) outsourcing
D) Six Sigma

Question 25

Entrepreneurship programs and innovation goals are examples of ________.

A) market analysis programs
B) innovation programs
C) knowledge acquisition
D) organizational learning

Question 26

Direct behaviors and decisions about strategy and programs or structures are ________ forms of leader influence.

A) complementary
B) competing
C) mutually exclusive
D) conflicting

Question 27

In the context of competitive strategy, patriotism is an example of which of the following?

A) types of products or services to offer
B) basis for appealing to customers
C) methods used to influence potential clients
D) ways to obtain necessary financial resources

Question 28

The external environment is more likely to be volatile and uncertain in situations of ________.

A) gradual technological change
B) political stability
C) new threats from competitors
D) economic turmoil

Question 29

Assessment centers and recruiting programs are examples of which of the following?

A) quality of work-life programs
B) socialization and teambuilding
C) employee development programs
D) human resource planning

Question 30

Human capital is LESS important for which types of workplaces?

A) consulting firms
B) virtual organizations
C) advertising agencies
D) research universities

Question 31

A major change in strategy is more likely to be accepted when ________.

A) employees are left to determine how it will benefit the organization
B) colleagues exchange theories on the reason it is needed
C) possible reasons for the change are circulated via the grapevine
D) leaders explain why it is needed

Question 32

At a company call center, an incentive program rewards employees based solely on the number of customers served. Since faster service is achieved by reducing service quality, service declines. This is an example of ________.

A) management programs enhancing the effects of direct leadership behavior
B) management programs limiting the effects of direct leadership behavior
C) direct behaviors facilitating the implementation of a strategy or program
D) direct behaviors impeding the implementation of a strategy or program

Question 33

The term ________ is sometimes used to describe the quality of an organization's human resources, which include the relevant skills and experience of members.

A) social capital
B) human capital
C) collective work
D) organizational culture

Question 34

Process reliability ________.

A) is conceptualized primarily as a component of efficiency
B) usually decreases costs
C) often leads to increased accidents
D) never affects adaptation or human resources

Question 35

________ includes decisions about the types of products or services to offer, the basis for appealing to potential customers, and the methods used to influence potential customers or clients.

A) Adaptation
B) Process reliability
C) Efficiency
D) Competitive strategy

Question 36

A rapid response to changing conditions and new competitors is especially important for an organization with a strategy that emphasizes ________.

A) mass market, imitation products
B) services designed to satisfy the repetitive needs of customers and clients
C) unique, leading-edge products
D) services designed to deal with consistent and timeless customer needs

Question 37

Other determinants of ________ include effective knowledge management; flexibility of work processes; innovations in products, services, or processes; and the availability of discretionary resources.

A) adaptation to the environment
B) efficiency and process reliability
C) strategic human resource management
D) competitive strategy

Question 38

Human capital is MORE important for an organization that ________.

A) has highly automated processes
B) requires few employees
C) employs mostly unskilled workers
D) depends on people with unique talents

Question 39

Efficiency is less important when ________.

A) the competitive strategy of the organization is to offer its products and services at a lower price than competitors
B) an organization is unable to pass along cost increases to customers
C) the organization is highly subsidized by the government or private investors
D) a financial crisis occurs and funds to support essential operations are limited

Question 40

Which is an example of a method used to enhance employee skills?

A) flexible job design
B) use of work teams
C) recruitment
D) rewards and incentives

Question 41

The implementation of a new strategy or major change can be delayed ________.

A) only when there is a powerful CEO
B) only when there is a weak CEO
C) by prolonged conflicts among top management
D) by acceptance of change at the middle-management level

Question 42

Discretion is constrained ________.

A) by powerful external stakeholders who can dictate conditions
B) when the organization is in a growth industry that has rapidly increasing demand
C) if the company's sales come from a wide variety of clients
D) when the organization can turn to one of several suppliers for key materials

Question 43

Managerial discretion is greater if the organization ________.

A) is in an industry that has flat demand
B) deals in products that are standardized commodities
C) is a monopoly
D) faces much direct competition

Question 44

Once a leader achieves a good balance of trade-offs among the performance determinants, ________.

A) things will continue smoothly
B) changing conditions may upset it
C) the situation no longer needs to be assessed
D) any upset can be cured by using the same strategies that worked in the past

Question 45

Which statement is correct?

A) Top executives have a monopoly on relevant information or new ideas.
B) Innovative changes in organizations rarely originate from lower levels.
C) There are several ways top management can increase the involvement of middle- and lower-level managers in making strategic decisions.
D) Virtual meetings about strategic decision making are impractical and ineffective.

Question 46

In periods of relative stability and prosperity, major innovative changes in an organization are ________ to occur.

A) almost guaranteed
B) more probable
C) required
D) less likely

Question 47

________ primary responsibility for ensuring that the organization has a relevant core ideology, but leaders at ________ must help to build support for it and ensure that it is understood.

A) Top management has; all levels
B) Middle management has; the top management level
C) Hourly employees have; the middle management level
D) Clients have; all levels

Question 48

The primary responsibility for resolving disagreements and achieving integration usually falls on ________.

A) the CEO
B) the executive team
C) middle management
D) hourly employees

Question 49

There is less discretion for top executives when the ________.

A) CEO is a major shareholder of the firm
B) CEO is an owner of the firm
C) board of directors is easily influenced to support the CEO
D) CEO operates in the shadow of the company founder

Question 50

Which is a type of internal constraint faced by top executives?

A) powerful coalitions within an organization
B) the nature of the organization's primary products
C) the nature of the organization's primary services
D) the types of markets in which the organization operates

Question 51

A company-wide training program reduces the amount of training that managers need to provide to their immediate subordinates. This is an example of ________.

A) management programs serving as substitutes for direct behaviors
B) direct behaviors serving as substitutes for management programs
C) management programs undermining direct behaviors
D) direct behaviors undermining management behaviors

Question 52

Whenever possible, leaders should try to enhance ________ performance determinant at a time.

A) only one
B) more than one
C) at least three
D) four or more

Question 53

The potential influence of a CEO on the organization's performance is ________ when major changes in the environment threaten to undermine the effectiveness of the existing strategy or provide unusual opportunities to pursue a new strategy.

A) far less
B) inconsequential
C) much greater
D) trivial

Question 54

In a crisis situation, leaders are expected to take more ________, innovative actions

A) impulsive
B) traditional
C) decisive
D) hesitant

Question 55

The ________ of an organization consists of shared assumptions, beliefs, and values for the members.

A) competitive strategy
B) core competency
C) culture
D) synergy

Question 56

When leaders are able to enhance innovative adaptation and efficiency simultaneously, this is called ________.

A) relational leadership
B) process reliability
C) organizational ambidexterity
D) collective work

Question 57

The power and discretion of top executives are greater when ________.

A) there is a strong organizational culture resistant to change
B) the CEO answers to a strong board of directors
C) surplus financial reserves are available to fund new ventures
D) labor unions have sufficient power to block changes a leader wants to make

Question 58

The most restrictive situation is one in which internal and external constraints are so severe that the CEO is merely a figurehead who cannot implement any significant strategy changes or innovations. This type of position is unlikely to attract a(n) ________ leader.

A) compliant
B) innovative
C) conservative
D) risk-averse

Question 59

A CEO position with ample discretion ________ innovative leadership.

A) provides opportunities for
B) guarantees
C) precludes
D) limits the possibility of

Question 60

How much time is usually required to verify the success of a major change?

A) six months
B) one and a half years
C) three to five years
D) at least one decade

Question 61

Many different types of improvement programs, management systems, and structural forms can be used to influence organizational effectiveness.

Question 62

External monitoring is also called ________.

A) internal constraining
B) environmental scanning
C) strategic planning
D) adaptation

Question 63

The research on leadership by chief executives of organizations shows that they have more influence on organizational processes and outcomes in some situations than in others.

Question 64

External monitoring, which is needed to detect threats and opportunities for the organization, is a function delegated to lower-level managers because of their proximity to front line workers.

Question 65

Efficiency is an especially important performance determinant when the competitive strategy of the organization is to offer unique, leading-edge products or services.

Question 66

Reviews of research on strategy formulation and strategic planning by top executives show that it can improve an organization's performance, and that it is more important in an environment that ________.

A) is simple
B) is dynamic
C) has no threats
D) has few opportunities

Question 67

The determinants of organizational performance are so closely interrelated that efforts to improve one determinant generally improve the other determinants as well.

Question 68

Which statement is correct?

A) Not all organizations have a top management group.
B) The CEO, middle managers, and supervisors make up the top management group in an organization.
C) The top management group functions the same way in all organizations.
D) A current trend is to share power within the top management team.

Question 69

________ is needed to detect threats and opportunities for the organization, and ________ guides the organization's response to threats and opportunities.

A) External monitoring; competitive strategy
B) External monitoring; strategic human resource management
C) Internal monitoring; competitive strategy
D) Internal monitoring; strategic human resource management

Question 70

Which of the following is NOT a potential advantage of executive teams?

A) additional skills
B) additional knowledge
C) infallible decision making
D) improved communication

Question 71

Relational Leadership Theory describes leadership as part of the evolving social order resulting from interactions, exchanges, and influence processes among many people.

Question 72

Executive teams ________.

A) are becoming less acceptable
B) have not been used successfully in other countries
C) have been effective in Japan
D) are not beneficial for complex organizations in a turbulent environment

Question 73

Complexity theories of leadership are primarily concerned with describing the complex cognitive processes that occur in CEOs.

Question 74

Competitive strategy includes decisions about the types of products or services to offer and the basis for appealing to potential customers or clients.

Question 75

A study of top management teams from 116 Israeli firms found that a high level of mutual understanding and collaboration among members, called ________, was related to better quality of strategic decisions and more favorable ratings of organizational performance

A) organizational ambidexterity
B) behavioral integration
C) team-centrism
D) organizational culture

Question 76

In general, it is much more difficult for leaders to change culture in a mature organization than to create it in a new organization.

Question 77

More external monitoring is needed when the ________.

A) organization is highly dependent on outsiders
B) environment is relatively stable
C) organization faces minimal competition
D) organization is relatively self-sufficient

Question 78

A study found that when the CEO ________a strategic decision, the decision quality was better, the decision was perceived as more fair, team members were more committed to implement the decision, their trust in the leader increased, and they identified more with the team.

A) allowed members of the executive team to influence
B) was solely responsible for
C) appointed a surrogate from the executive team to make
D) abstained from participating in

Question 79

Flexible Leadership Theory describes how leaders change their strategic objectives so that employees will do more than they initially expected.

Question 80

The guidelines for strategic leadership ________.

A) depict a rigid sequence of steps
B) are based on theory but not research
C) are cyclical, overlapping activities
D) reflect a simple approach to effective planning