Question 1

According to the path-goal theory, what are the two leadership styles that parallel the two key leadership behaviors of initiating structure and consideration? Describe each style.

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Question 2

Briefly describe the value of the normative decision theory to the practicing manager.

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Question 3

Hewlett-Packard
When Mark Hurd stepped into his role as its new CEO, Hewlett-Packard (HP) was the eleventh largest company in the United States. It was well known, however, that HP was struggling financially. Under the guidance of the previous CEO, Carly Fiorina, HP had paid $19 billion to acquire Compaq but then incurred more than $10 billion during the integration of the two companies. In short, expenses had risen too much, revenues and market share had risen too little, and HP was earning profits far below its competition. A number of other significant problems were apparent as well. The first was HP's strategic vision, which Fiorina had repeatedly described as "digital, virtual, mobile, personal." While this sounded good, no one was quite clear what it meant. Another problem was HP's confusing business structure, which blurred lines of accountability and slowed decision making. For example, HP sales people reported to people in four or more divisions such as sales, printing, computing, and corporate. A fourth problem was HP's reward system, which was so complex in its calculation that no one understood how their performance affected their bonuses. The most worrisome problem, though, was the deep sense of distrust that pervaded HP, from first-level employees to executive suites all the way to the boardroom.
Mark Hurd did many things to correct these problems. First, he sat down with his management team to specify the financial targets they would strive to achieve three years later. After specifying those goals, he and his team worked backwards to determine the financial goals for each part of the company. Indeed, that process was a key part in deciding to lay off 14,500 employees. Those layoffs, which saved the company $1.9 billion a year helped HP to maintain its $3.5 billion a year budget for product research and development. Next, Mark decided to follow Fiorina's strategic plans for HP but recast the strategy into specifics. Fortune describes Hurd's version of the strategy like this, "…selling big businesses every little thing they want for their IT departments, offering printing services as well as printers, and selling portable products like notebook and handheld computers." Then, Hurd
began tackling key operational and implementation issues like the company's confusing business structure and its complicated bonus system. Mark divided the sales force three ways so that sales, printers, and corporate would have dedicated sales people who do nothing but sell and service their products. A new, simpler bonus plan linked bonuses to the performance of the HP division and to the company as a whole.
Finally, Mark began to address the distrust at HP. Says Hurd, "I like being part of teams that go into things that people don't think are doing very well and getting into them to do better." He would frequently call people three or four levels down in the company to ask them specific operational questions about how things did or did not get done. Consistent with that approach, Hurd regularly sits in on divisional reviews of performance, something that Fiorina never did. And, then, to make sure things got done, Hurd held his managers and staffers accountable for following up. Managers and employers appreciated that Mark was willing to help them do their jobs. Dave Booth, senior vice president for sales, said, "If I pick up the phone and tell Mark's office I have an urgent customer request, if he isn't already with a customer, he'll stop what he's doing and call me to find out what he can do. The fact that I pick up the phone and call his office directly and not go through channels is new."
-Refer to Hewlett-Packard. There was a deep sense of distrust at HP when Hurd replaced Carly Fiorina as CEO. Which leadership behavior should Mark use to help improve the situation?
A) Participative leadership
B) Locus of control
C) Leader-member relations
D) Cognitive abilities
E) Consideration

Accepted Answer

Consideration is the extent to which leaders are friendly, approachable, supportive, and show concern for employees. Consideration primarily affects subordinates' job satisfaction, or in this instance, distrust.

Question 4

What does management research say about who leaders are and what leaders do? What is the best leadership style for all situations and employees. Provide an example of a leader that you know of or have worked with and explain how this individual demonstrates some of the typical characteristics and behaviors identified by management research as typical of leaders.

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Question 5

List and briefly identify four of the eight traits that differentiate leaders from non-leaders.

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Question 6

Hewlett-Packard
When Mark Hurd stepped into his role as its new CEO, Hewlett-Packard (HP) was the eleventh largest company in the United States. It was well known, however, that HP was struggling financially. Under the guidance of the previous CEO, Carly Fiorina, HP had paid $19 billion to acquire Compaq but then incurred more than $10 billion during the integration of the two companies. In short, expenses had risen too much, revenues and market share had risen too little, and HP was earning profits far below its competition. A number of other significant problems were apparent as well. The first was HP's strategic vision, which Fiorina had repeatedly described as "digital, virtual, mobile, personal." While this sounded good, no one was quite clear what it meant. Another problem was HP's confusing business structure, which blurred lines of accountability and slowed decision making. For example, HP sales people reported to people in four or more divisions such as sales, printing, computing, and corporate. A fourth problem was HP's reward system, which was so complex in its calculation that no one understood how their performance affected their bonuses. The most worrisome problem, though, was the deep sense of distrust that pervaded HP, from first-level employees to executive suites all the way to the boardroom.
Mark Hurd did many things to correct these problems. First, he sat down with his management team to specify the financial targets they would strive to achieve three years later. After specifying those goals, he and his team worked backwards to determine the financial goals for each part of the company. Indeed, that process was a key part in deciding to lay off 14,500 employees. Those layoffs, which saved the company $1.9 billion a year helped HP to maintain its $3.5 billion a year budget for product research and development. Next, Mark decided to follow Fiorina's strategic plans for HP but recast the strategy into specifics. Fortune describes Hurd's version of the strategy like this, "…selling big businesses every little thing they want for their IT departments, offering printing services as well as printers, and selling portable products like notebook and handheld computers." Then, Hurd
began tackling key operational and implementation issues like the company's confusing business structure and its complicated bonus system. Mark divided the sales force three ways so that sales, printers, and corporate would have dedicated sales people who do nothing but sell and service their products. A new, simpler bonus plan linked bonuses to the performance of the HP division and to the company as a whole.
Finally, Mark began to address the distrust at HP. Says Hurd, "I like being part of teams that go into things that people don't think are doing very well and getting into them to do better." He would frequently call people three or four levels down in the company to ask them specific operational questions about how things did or did not get done. Consistent with that approach, Hurd regularly sits in on divisional reviews of performance, something that Fiorina never did. And, then, to make sure things got done, Hurd held his managers and staffers accountable for following up. Managers and employers appreciated that Mark was willing to help them do their jobs. Dave Booth, senior vice president for sales, said, "If I pick up the phone and tell Mark's office I have an urgent customer request, if he isn't already with a customer, he'll stop what he's doing and call me to find out what he can do. The fact that I pick up the phone and call his office directly and not go through channels is new."
-Refer to Hewlett-Packard. As Mark Hurd began his role as CEO, he needed to______ of his management team.
A) initiate structure
B) improve situationals
C) implement position-power
D) implement a mission statement
E) initiate change to improve the performance

Accepted Answer

Initiating structure means setting goals, giving directions, setting deadlines, and assigning
tasks. A leader's ability to initiate structure primarily affects subordinates' job performance.

Question 7

What are the two key leader behaviors that are central to successful leadership? How does each typically influence subordinates?

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Question 8

Compare and contrast charismatic and transformational leadership. Explain why ethical transgressions are less likely among transformational leaders than they are among charismatic leaders.

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Question 9

Identify and define the components of visionary leadership.

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Question 10

Identify and describe Fiedler's contingency theory. Explain how this approach might be particularly valuable to an experienced manager in selecting among several job offers for managerial positions in different organizational situations.

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Question 11

Define leadership and management and explain how leaders and managers approach their jobs differently.

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Question 12

Hewlett-Packard
When Mark Hurd stepped into his role as its new CEO, Hewlett-Packard (HP) was the eleventh largest company in the United States. It was well known, however, that HP was struggling financially. Under the guidance of the previous CEO, Carly Fiorina, HP had paid $19 billion to acquire Compaq but then incurred more than $10 billion during the integration of the two companies. In short, expenses had risen too much, revenues and market share had risen too little, and HP was earning profits far below its competition. A number of other significant problems were apparent as well. The first was HP's strategic vision, which Fiorina had repeatedly described as "digital, virtual, mobile, personal." While this sounded good, no one was quite clear what it meant. Another problem was HP's confusing business structure, which blurred lines of accountability and slowed decision making. For example, HP sales people reported to people in four or more divisions such as sales, printing, computing, and corporate. A fourth problem was HP's reward system, which was so complex in its calculation that no one understood how their performance affected their bonuses. The most worrisome problem, though, was the deep sense of distrust that pervaded HP, from first-level employees to executive suites all the way to the boardroom.
Mark Hurd did many things to correct these problems. First, he sat down with his management team to specify the financial targets they would strive to achieve three years later. After specifying those goals, he and his team worked backwards to determine the financial goals for each part of the company. Indeed, that process was a key part in deciding to lay off 14,500 employees. Those layoffs, which saved the company $1.9 billion a year helped HP to maintain its $3.5 billion a year budget for product research and development. Next, Mark decided to follow Fiorina's strategic plans for HP but recast the strategy into specifics. Fortune describes Hurd's version of the strategy like this, "…selling big businesses every little thing they want for their IT departments, offering printing services as well as printers, and selling portable products like notebook and handheld computers." Then, Hurd
began tackling key operational and implementation issues like the company's confusing business structure and its complicated bonus system. Mark divided the sales force three ways so that sales, printers, and corporate would have dedicated sales people who do nothing but sell and service their products. A new, simpler bonus plan linked bonuses to the performance of the HP division and to the company as a whole.
Finally, Mark began to address the distrust at HP. Says Hurd, "I like being part of teams that go into things that people don't think are doing very well and getting into them to do better." He would frequently call people three or four levels down in the company to ask them specific operational questions about how things did or did not get done. Consistent with that approach, Hurd regularly sits in on divisional reviews of performance, something that Fiorina never did. And, then, to make sure things got done, Hurd held his managers and staffers accountable for following up. Managers and employers appreciated that Mark was willing to help them do their jobs. Dave Booth, senior vice president for sales, said, "If I pick up the phone and tell Mark's office I have an urgent customer request, if he isn't already with a customer, he'll stop what he's doing and call me to find out what he can do. The fact that I pick up the phone and call his office directly and not go through channels is new."
-Refer to Hewlett-Packard. According to the contingency theory, when Mark Hurd decided to lay off 14,500 employees, he was showing high______ .
A) consideration
B) autonomy
C) Machiavellianism
D) instrumentality
E) position power

Accepted Answer

Position power is defined as the degree to which leaders are able to hire, fire, reward, and
punish workers. Hurd's mass layoffs indicate that he had position power in Hewlett­Packard.

Question 13

Hewlett-Packard
When Mark Hurd stepped into his role as its new CEO, Hewlett-Packard (HP) was the eleventh largest company in the United States. It was well known, however, that HP was struggling financially. Under the guidance of the previous CEO, Carly Fiorina, HP had paid $19 billion to acquire Compaq but then incurred more than $10 billion during the integration of the two companies. In short, expenses had risen too much, revenues and market share had risen too little, and HP was earning profits far below its competition. A number of other significant problems were apparent as well. The first was HP's strategic vision, which Fiorina had repeatedly described as "digital, virtual, mobile, personal." While this sounded good, no one was quite clear what it meant. Another problem was HP's confusing business structure, which blurred lines of accountability and slowed decision making. For example, HP sales people reported to people in four or more divisions such as sales, printing, computing, and corporate. A fourth problem was HP's reward system, which was so complex in its calculation that no one understood how their performance affected their bonuses. The most worrisome problem, though, was the deep sense of distrust that pervaded HP, from first-level employees to executive suites all the way to the boardroom.
Mark Hurd did many things to correct these problems. First, he sat down with his management team to specify the financial targets they would strive to achieve three years later. After specifying those goals, he and his team worked backwards to determine the financial goals for each part of the company. Indeed, that process was a key part in deciding to lay off 14,500 employees. Those layoffs, which saved the company $1.9 billion a year helped HP to maintain its $3.5 billion a year budget for product research and development. Next, Mark decided to follow Fiorina's strategic plans for HP but recast the strategy into specifics. Fortune describes Hurd's version of the strategy like this, "…selling big businesses every little thing they want for their IT departments, offering printing services as well as printers, and selling portable products like notebook and handheld computers." Then, Hurd
began tackling key operational and implementation issues like the company's confusing business structure and its complicated bonus system. Mark divided the sales force three ways so that sales, printers, and corporate would have dedicated sales people who do nothing but sell and service their products. A new, simpler bonus plan linked bonuses to the performance of the HP division and to the company as a whole.
Finally, Mark began to address the distrust at HP. Says Hurd, "I like being part of teams that go into things that people don't think are doing very well and getting into them to do better." He would frequently call people three or four levels down in the company to ask them specific operational questions about how things did or did not get done. Consistent with that approach, Hurd regularly sits in on divisional reviews of performance, something that Fiorina never did. And, then, to make sure things got done, Hurd held his managers and staffers accountable for following up. Managers and employers appreciated that Mark was willing to help them do their jobs. Dave Booth, senior vice president for sales, said, "If I pick up the phone and tell Mark's office I have an urgent customer request, if he isn't already with a customer, he'll stop what he's doing and call me to find out what he can do. The fact that I pick up the phone and call his office directly and not go through channels is new."
-Refer to Hewlett­Packard. Critics say that Fiorina's weakness as CEO is that she focused too much on and not enough on______ .
A) autonomy; specificity
B) task structure; goal commitment
C) leadership; management
D) management; leadership
E) specificity; autonomy

Accepted Answer

Fiorina was too much of a big picture thinker (leadership) and she didn't provide enough
direction (management).

Question 14

Hewlett-Packard
When Mark Hurd stepped into his role as its new CEO, Hewlett-Packard (HP) was the eleventh largest company in the United States. It was well known, however, that HP was struggling financially. Under the guidance of the previous CEO, Carly Fiorina, HP had paid $19 billion to acquire Compaq but then incurred more than $10 billion during the integration of the two companies. In short, expenses had risen too much, revenues and market share had risen too little, and HP was earning profits far below its competition. A number of other significant problems were apparent as well. The first was HP's strategic vision, which Fiorina had repeatedly described as "digital, virtual, mobile, personal." While this sounded good, no one was quite clear what it meant. Another problem was HP's confusing business structure, which blurred lines of accountability and slowed decision making. For example, HP sales people reported to people in four or more divisions such as sales, printing, computing, and corporate. A fourth problem was HP's reward system, which was so complex in its calculation that no one understood how their performance affected their bonuses. The most worrisome problem, though, was the deep sense of distrust that pervaded HP, from first-level employees to executive suites all the way to the boardroom.
Mark Hurd did many things to correct these problems. First, he sat down with his management team to specify the financial targets they would strive to achieve three years later. After specifying those goals, he and his team worked backwards to determine the financial goals for each part of the company. Indeed, that process was a key part in deciding to lay off 14,500 employees. Those layoffs, which saved the company $1.9 billion a year helped HP to maintain its $3.5 billion a year budget for product research and development. Next, Mark decided to follow Fiorina's strategic plans for HP but recast the strategy into specifics. Fortune describes Hurd's version of the strategy like this, "…selling big businesses every little thing they want for their IT departments, offering printing services as well as printers, and selling portable products like notebook and handheld computers." Then, Hurd
began tackling key operational and implementation issues like the company's confusing business structure and its complicated bonus system. Mark divided the sales force three ways so that sales, printers, and corporate would have dedicated sales people who do nothing but sell and service their products. A new, simpler bonus plan linked bonuses to the performance of the HP division and to the company as a whole.
Finally, Mark began to address the distrust at HP. Says Hurd, "I like being part of teams that go into things that people don't think are doing very well and getting into them to do better." He would frequently call people three or four levels down in the company to ask them specific operational questions about how things did or did not get done. Consistent with that approach, Hurd regularly sits in on divisional reviews of performance, something that Fiorina never did. And, then, to make sure things got done, Hurd held his managers and staffers accountable for following up. Managers and employers appreciated that Mark was willing to help them do their jobs. Dave Booth, senior vice president for sales, said, "If I pick up the phone and tell Mark's office I have an urgent customer request, if he isn't already with a customer, he'll stop what he's doing and call me to find out what he can do. The fact that I pick up the phone and call his office directly and not go through channels is new."
-Refer to Hewlett­Packard. In doing a better job of implementing Fiorina's strategy for HP, Mark Hurd is using which form of leadership?
A) strategic leadership
B) visionary leadership
C) managerial leadership
D) supportive leadership
E) charismatic leadership

Accepted Answer

Strategic leadership involves working with others to initiate changes that will create a positive future for an organization. Doing a better job of implementing the company's current strategy is one way of doing that.

Question 15

List the three major situational theories of leadership. How do they differ in terms of what each assumes about the adaptability of leadership style (i.e., a leader's ability to change his or her leadership style in different situations)?

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Question 16

What is the difference between a leader and a manager? What is the relative importance of leaders and managers to the success of organizations today?

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Question 17

Briefly explain the difference between transformational and transactional leadership.

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Question 18

Oakland Athletics
Over the past decade, professional baseball has evolved into an increasingly dysfunctional, sharply divided game of big-time haves and small-time have-nots. A few big market teams like the New York Yankees and the Los Angeles Dodgers leverage huge television contracts to acquire top talent at top salaries. Clubs in smaller cities with meager budgets make do with what's left. This trend has not proven true for the Oakland Athletics. From 2000 to
2006, the A's finished first in their division 5 times and second 2 times, all the while spending about one­third of the money as the Yankees on player payroll. The team's success as a small­market team is credited to its general manager Billy Beane. Billy Beane is a man who knows how to do more with less. He relentlessly exploits market mismatches by mining data his rivals ignore and by scooping up assets that others have undervalued, an approach made famous in Michael Lewis' Moneyball. He realizes that every player must be evaluated according to his long- term economic impact on the team. People who work with Beane describe him as "monomaniacal, ardent, and controlling."
-Refer to Oakland Athletics. Beane's subordinates respect the general manager's abilities, trust him to do what his best for the team, and like him as a person. In terms of situational favorableness, Beane's leadership ability is influenced by______ .
A) strong position power
B) empowerment
C) low task structure
D) weak position power
E) good leader-member relations

Accepted Answer

Beane's leadership ability is influenced by good leader-member relations, as his subordinates respect, trust, and like him.

Question 19

What are the assumptions of Fiedler's contingency theory? What needs to be done in order to make this theory practical for use in the workplace?

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Question 20

What is the difference between honesty and integrity? How is each relevant to effective leadership?

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Quiz 13: Section 1: Motivation