Two companies, Roland Media and Go! Corp, are both headed by transformational leaders. However, Roland Media showed much greater profitability over a 5-year time period than did Go! Corp. Which of the following best explains why Roland Media performed better than Go! Corp under transformational leadership?
A) Go! Corp's leader regularly interacts with the company's workforce to make decisions, whereas Roland Media's leader must go through a complex bureaucratic structure.
B) Unlike Go! Corp's employees, Roland Media's employees don't readily give up decision-making authority.
C) Roland Media is a small, privately held firm, whereas Go! Corp is a large, complex public company.
D) Roland Media is headquartered in a high power distance country, whereas Go! Corp is headquartered in a country that is high in collectivism.
E) Roland Media's employees tend to be more highly individualistic than do Go! Corp's employees.

Question

Quizplus · Accepted Answer

Roland Media's status as a small, privately held firm likely allows for more agility and quicker decision-making, which can enhance the effectiveness of transformational leadership compared to the larger, more complex structure of Go! Corp.

Two Companies, Roland Media and Go! Corp, Are Both Headed