Question 1

If a manager maintains flexibility toward the final design proposal, she may risk:

Accepted Answer

Maintaining flexibility may be seen as a lack of commitment or indecisiveness, which can undermine a manager's credibility among their team, superiors, or stakeholders.

Question 2

While top level executives and the board of directors have wide-ranging discretion on leadership issues, most middle managers recognize that they must exercise leadership:

Accepted Answer

Middle managers typically operate within a pre-existing organizational structure and are expected to exercise leadership within that framework. They must make decisions and solve problems within the constraints of their position and the company's policies and procedures. While they may receive direction from senior management, they also have the autonomy to take the initiative and lead when necessary. Incentive commissions may motivate employees but are not the sole means of leadership. Middle managers should provide guidance and direction to employees who are struggling rather than waiting for them to act lost.

Question 3

If executives at Global Insurance think they have a new, innovative, and, importantly, profitable way to reorganize the company, they must recognize that they need to confront the:

Accepted Answer

The status quo management system refers to the current way of doing things in the company. If the executives want to implement a new and innovative way of reorganizing the company, they will need to confront the existing management system and make changes to it. This can be a challenging task but is necessary for the success of their innovative plan.

Question 4

In the 2001-2003 period, US airlines had a difficult time earning a positive net income. Terrorism, war, disease, and a weak economy all combined to reduce both business and tourist travel. In addition, the major airlines faced competition from the cut-rate airlines. Most airlines began a change in organizational architecture. All major airlines are organized by trade unions for pilots, clerks, mechanics, and flight attendants. What major leadership issues need to be addressed as these companies reorganize?

Accepted Answer

The answer of In the 2001-2003 period, US airlines had...

Question 5

Voluntary consent to a leader's proposals and control over resources by a leader both have an important impact of internal power of a corporate leader. Which one is most important for the successful functioning of today's corporate management?

Accepted Answer

The answer of Voluntary consent to a leader's proposals and...

Question 6

What are the three issues related to proposal design?

Accepted Answer

The answer of What are the three issues related to...

Question 7

To motivate people to change and follow a new mission for a company, it is important to:

Accepted Answer

Changing the company's organizational architecture is the best choice to motivate people to change and follow a new mission. This means looking at the company's structure, processes, and systems to ensure they are aligned with the new mission and values. This can include creating new teams, altering reporting lines, and restructuring roles and responsibilities. Moving overseas or outsourcing may lead to cost savings, but it is unlikely to motivate employees or bring about a significant cultural shift within the company. Relying on standard U-form organizational structures may also not be effective if the new mission requires a more collaborative or decentralized approach.

Question 8

A Nash equilibrium shows the outcomes of leadership in a non-cooperative environment. If the leadership of a company hopes to find a solution in a different position, the managers are required to be:

Accepted Answer

In a non-cooperative environment, a Nash equilibrium suggests that each manager will act in their own self-interest, which can result in suboptimal outcomes for the company as a whole. To find a solution in a different position, managers must be open to cooperative leadership, or working together towards a common goal. This may involve taking on additional risks, but it does not necessarily mean that they should be more risk-averse or more aggressive in their non-cooperative leadership. Instead, they should balance the marginal benefits of their leadership actions against the costs and benefits of cooperation, and strive to find mutually beneficial solutions.

Question 9

In the case study at the end of Chapter 20, Global Insurance is a company that offers disability insurance. Its major problem is that it does not process policies very quickly, largely because it is not computerized and the process is not linked electronically. The CEO wishes to innovate and to change organizational architecture to computerize and link all phases of the application process. What aspects of leadership need to be emphasized during this difficult transition at Global?

Accepted Answer

The answer of In the case study at the end...

Question 10

Two key components of leadership are:

Accepted Answer

Leadership often involves having a clear vision and the motivation to inspire and guide others towards achieving that vision.

Question 11

Why are academics way off base when it comes to organizational politics?

Accepted Answer

The answer of Why are academics way off base when...

Question 12

If a senior manager wishes to see her proposal win support through flexibility toward the final product, then she is:

Accepted Answer

The senior manager is attempting to reduce risk and increase the likelihood of getting support for her proposal by showing flexibility toward the final product. This is a common strategy in business and does not necessarily make her a lousy manager. She may be open to modifying the proposal based on feedback and getting others on board with a revised plan. It is unlikely she is waiting for the CEO to change the organizational architecture or not interested in winning support for her proposal.

Question 13

A key to motivating people in a business entity is to remember that each person:

Accepted Answer

Research has shown that people tend to act in their own self-interest, whether it is in the form of personal gain or job satisfaction. It is important for managers to understand this and create incentives and rewards that align with the employees' self-interest in order to motivate them to perform at their best. However, it is not accurate to say that people tend to be very lazy or simply follow orders without question. Additionally, while following ethical guidelines is important, it may not necessarily be a key motivator for individuals in all situations.

Question 14

As CitiGroup was being formed out of Travelers Insurance, Solomon Smith Barney, and CitiBank, many of the new executives were friends of one another. The company adopted an organizational architecture that financed large mergers, initial public offerings (IPOs), and corporate loans while using its brokerage house, Solomon Smith Barney, to sell stock in the companies it promoted to ordinary investors. Explain the potential issues of power and leadership in a new restructured corporation with a very complex structure.

Accepted Answer

The answer of As CitiGroup was being formed out of...

Question 15

What are the two tasks of good leadership?

Accepted Answer

The answer of What are the two tasks of good...

Question 16

If an executive exercises leadership through changing organizational architecture, then that manager will:

Accepted Answer

Changing organizational architecture involves making structural changes to the company, which can include reallocating decision rights, changing the reward system, and restructuring the performance evaluation system. Therefore all of the choices (A, B, and C) are correct.

Question 17

During the 1990s, Xerox had a problem with quality. CEO Kearns found that to solve the problem, he needed to:

Accepted Answer

Changing the evaluation and incentive system is the most effective solution to address quality problems as it ensures that employees are motivated to prioritize quality over quantity. Moving to a new company, showing that the copiers were built with quality, or hiring executives who understood quality may not necessarily address the root cause of the problem, which could be related to organizational culture and incentives.

Question 18

Becca Lynn Stanton is a product manager whose compensation is 100% variable pay and based on the profits earned by her product line. Since she is risk-averse, she tends to favor production proposals that increase her income and status, but she is leery of production proposals that have a wide potential for positive or negative payoffs. What would it take to get her to consider a new production system?

Accepted Answer

The answer of Becca Lynn Stanton is a product manager...

Question 19

Economists are often defined as people with good mathematical skills but without the personality of accountants. If leadership is so important, why do economists often rise to the top of organizations?

Accepted Answer

The answer of Economists are often defined as people with...

Question 20

Mahatma Gandhi, John F. Kennedy, Martin Luther King Jr. are all cited as charismatic leaders. Economics tells us that charisma can be learned. What is the inconsistency in the economic argument?
Economics tells us that those leaders will do anything to improve their own utility and promote their own self interest. If it is in the leader's self interest to be charismatic, then he will spend resources to learn the styles from others. But the problem is that the very style the leader is copying in the said question, are from individuals who did not care about their own welfare in the first place.

Accepted Answer

The answer of Mahatma Gandhi, John F. Kennedy, Martin Luther...

Quiz 20: Leadership: Motivating Change Within Organizations