INTRODUCTION TO BUSINESS & MANAGEMENT
UNIVERSITY COLLEGE OF ISLAMIC ECONOMICS TAZKIA
EXERCISE 13: LEADERSHIP AND DECISION MAKING
37. Which of the following describes the concept of leadership?
A) the processes and behaviors used by someone to determine the optimal decision among several
options
B) the processes and behaviors used by someone to establish the organizational structure of a firm
C) the processes and behaviors used by someone to motivate, inspire, and influence the behaviors of
others
D) the processes and behaviors used by someone to manage the functioning of an organization
E) the processes and behaviors used by someone to achieve tangible outcomes within an organization
38. Whereas managers focus on plans, results, and goals, what do leaders focus on?
A) sales
B) productivity
C) organization
D) people
E) profitability
39. Which tasks do managers typically focus on?
A) aligning the organization with its environment
B) agenda setting
C) inspiring employees
D) monitoring organizational goals
E)planning and budgeting
40. When creating an agenda, what do leaders focus on?
A) organizing and staffing
B) controlling and problem solving
C) planning and budgeting
D) establishing direction
E) outlining procedures
41. When developing the human resources for achieving an agenda, what do managers focus on?
A)organizing and staffing
B) controlling and problem solving
C) establishing direction
D) aligning people
E) motivating and inspiring
42. When developing the human resources necessary for achieving an agenda, what do leaders focus
on?
A) controlling and problem solving
B) organizing and staffing
C) aligning people and goals
D) establishing direction
E) establishing workplace policies
43. What area was the earliest research on leadership most concerned with?
A) leadership situations
B) leadership roles
C) leadership traits
D) leadership integrity
E) leadership behaviors
44. What was a major problem with the trait approach to leadership?
A) The results were not very inspiring and thus ignored.
B) The results were found to be too pessimistic and thus were dismissed as useless.
C) The results were too inconsistent and thus not very practical.
D) The results were too innovative and thus were not taken seriously at the time.
E) The results were too worshipful of certain leaders and thus were dismissed as irrelevant.
45. Which of the following best describes task-focused leader behavior?
A) concentration on when tasks should be performed
B) concentration on who should perform which tasks
C) concentration on which tasks should be performed
D) concentration on why tasks should be performed
E) concentration on how tasks should be performed
46. Which of the following best describes employee-focused leader behavior?
A) concentration on both the satisfaction and work quantity of employees
B) concentration on both the work quantity and the well-being of employees
C) concentration on both the satisfaction and the well-being of employees
D) concentration on both the work quality and work quantity of employees
E) concentration on both the well-being and work quality of employees
47. Which of the following describes one of the primary concerns associated with charismatic
leadership due to severe devotion to a particular leader?
A) the potential lapse of ethical practices
B) the potential inability to replace leadership efficiently
C) the potential stagnation of corporate vision
D) the potential creation of bureaucracy
E) the potential encouragement of micromanaging
48. Bill Lopez spends most of his time performing normal, routine tasks. Which of the following
types of leadership is he primarily involved with?
A) transactional leadership
B) situational leadership
C) charismatic leadership
D) behavioral leadership
E) transformational leadership
49. Which of the following accurately describes a primary characteristic of charismatic leaders?
A) They tend to set high expectations for themselves and establish high standards for others.
B) They tend to establish high standards for and energize others.
C) They tend to energize others and establish good, stable practices.
D) They tend to set high expectations for themselves and establish good, stable practices.
E) They tend to set high expectations for themselves and energize others.
50. Which of the following organizational aspects allows employees to perform capably without the
direction of a leader?
A) leadership substitutes
B) leadership guidelines
C) leadership incentives
D) leadership neutralizers
E) leadership obstructions
51. Which of the following best describes the effects of leadership neutralizers in an organization?
A) They tend to make leaders more neutral toward employees.
B) They tend to make leader behavior ineffective.
C) They tend to outweigh the need for leader behavior.
D) They tend to make managers become effective leaders.
E) They tend to make leaders more charismatic.
52. Which of the following may be substitutes for leadership?
A) a performance-based reward system
B) a loose system of rules and procedures
C) group divisiveness
D) explicit plans and goals
E) lax individual professionalism
53. Bob, Joe, and Larry can all perform their jobs well without supervision. What does this indicate?
A) presence of a rigid reward system
B) presence of a leadership neutralizer
C) presence of a leadership incentive
D) presence of a highly automated system
E) presence of a leadership substitute
54. The norms of the engineering group at Acme Incorporated are so strong that there is nothing the
new company leader can do to change things. What does this illustrate?
A) leadership mandates
B) leadership neutralizers
C) leadership substitutes
D) leadership amplifiers
E) leadership charisma
55. Which of the following types of leaders has the primary role of helping a less experienced person
learn how to function and to advance within an organization?
A) manager
B) enabler
C) task master
D) motivator
E) mentor
56. Which is the most accurate statement regarding one of the main differences between the Japanese
and American cultures?
A ) Overall, Japanese culture is often characterized as authoritarian, whereas American culture is
often characterized as democratic.
B) Overall, Japanese culture is often characterized as socialist, whereas American culture is often
characterized as capitalist.
C) Overall, Japanese culture is often characterized as rigidly structured, whereas American culture is
often characterized as loosely structured.
D) Overall, Japanese culture is often characterized as conservative, whereas American culture is often
characterized as liberal.
E) Overall, Japanese culture is often characterized as collectivist, whereas American culture is often
characterized as individualist.
57. Which part of the management of an organization would be most involved with strategic
leadership?
A) the advisory level of management
B) the supervisory level of management
C) the auxiliary level of management
D) the top level of management
E) all levels of management
58. Recent corporate scandals at firms like Enron have brought increased attention to what area of
leadership?
A) virtual leadership
B) charismatic leadership
C) ethical leadership
D) employee-focused leadership
E) strategic leadership
59. Which of the current business characteristics has brought the rise of virtual leadership?
A) little communication among employees
B) more communication within the organization
C) less face-to-face communication within the organization
D) more face-to-face communication within the organization
E) little communication between employees and management
60. Which of the following is the name for choosing one alternative from among several options?
A) assessment
B) evaluation
C) arbitration
D) decision making
E) discernment
61. What is the first step in rational decision making?
A) identifying alternatives to the problem
B) understanding who will make the decision
C) recognizing that a decision is necessary
D) choosing an alternative
E) implementing the alternative
62. What is the definition of a coalition?
A) an institution incorporated in order to achieve a common goal
B) the network of management within a firm
C) an informal group formed to achieve a common goal
D) the network of employees within a firm
E) a pro-business political party
63. Managers at Adidas had a hunch that their sponsorship deal with the Yankees would be a good
one. Their feelings were based on what concept?
A) risk propensity
B) intuition
C) rational decision making
D) escalation of commitment
E) perception
64. Which of the following reflects the extent to which a leader is willing to gamble when making a
decision?
A) intuition
B) escalation of commitment
C) risk propensity
D) caution
E) overconfidence
65. Anne bought stock in ABC Company in hopes of making a profit. Although the stock's price
steadily continued to drop, she refused to sell her stock. What does this illustrate?
A) perception
B) intuition
C) escalation of commitment
D) caution
E) risk propensity
66. Which of the following do organizations need in order to be effective?
A) more leadership than management
B) either leadership or management
C) both leadership and management
D) more management than leadership
E) neither leadership nor management
67. Which of the following statements is the MOST accurate?
A) Effective managers lead for stability whereas visionary leaders lead for change.
B) Visionary managers lead for stability whereas effective leaders lead for change.
C) Strategic managers lead for stability whereas transforming managers lead for change.
D) Strategic leaders lead for stability whereas transforming leaders lead for change.
E) Effective leaders lead for stability whereas visionary managers lead for change.
68. In interviews with two leadership applicants, Ben tried to determine each person's knowledge of
the industry, level of energy, and level of self-esteem. With which of the following concepts of
leadership is Ben most concerned here?
A) charismatic leadership
B) trait-based leadership
C) behavioral leadership
D) situational leadership
E) transformational leadership
69. Which of the following statements best describes the assumptions made by researchers of the
behavioral approach to leadership?
A) Behaviors of effective leaders are the same in all situations.
B) Behaviors of effective leaders reflect the proper disposition for effective leadership.
C) Behaviors of effective leaders differ as reflected by different traits for effective leadership.
D) Behaviors of effective leaders differ in various situations.
E) Behaviors of effective leaders reflect the proper traits for effective leadership.
70. A company leader who often uses the phrase "that was then and this is now" to explain his
decisions most likely follows which model of leadership?
A) charismatic leadership
B) transactional leadership
C) trait-based leadership
D) tranformational leadership
E) situational leadership
71. According to the situational approach to leadership, the extent to which a leader or subordinate is
involved in decision making depends on characteristics of which aspects of an organization?
A) the resources, the structure of the organization, and the situation
B) the leader, the structure of the organization, and the situation
C) the followers, the resources at hand, and the situation
D) the leader, the resources at hand, and the situation
E) the leader, the followers, and the situation
72. What are group effectiveness, worker disposition, and the type of organization examples of?
A) situational characteristics that may affect a leader's decision making
B) strategic advantages that may affect a leader's decision making
C) cross-cultural traits that may affect a leader's decision making
D) leadership obstructions that may affect a leader's decision making
E) behavioral issues that may affect a leader's decision making
73. Which of the following is an example of an approach to leadership as seen through the eyes of
followers?
A) ethical leadership
B) transformational leadership
C) behavioral leadership
D) situational leadership
E) trait-based leadership
74. Which of the following may describe charismatic leadership?
A) an approach to leadership emphasizing the perspectives of the followers
B) an approach to leadership emphasizing the perspectives of the clientele
C) an approach to leadership emphasizing the perspectives of the leader
D) an approach to leadership emphasizing the perspectives of all parties in the organization
E) an approach to leadership emphasizing the perspectives of the managers
75. GDB Technologies has had lackluster performance for the past few years. Choi is hired in an
attempt to revivify the company's prospects and give it new direction away from its current situation.
Which of the following best describes Choi's leadership role?
A) transactional
B) cross-cultural
C) charismatic
D) situational
E) transformational
76. Carol took over a stagnant firm three years ago. At that time, she clearly laid out her vision of
where the firm should go and since that time has worked to energize the employees of the firm toward
these goals. Which of the following best describes Carol's leadership role?
A) cross-cultural
B) transformational
C) transactional
D) charismatic
E) situational
77. At Nordic Enterprises, Johann is most effective in carrying out the management of daily tasks that
must be performed. Which of the following best describes Johann's leadership role?
A) situational
B) behavorial
C) transformational
D) charismatic
E) transactional
78. Which of following describes the activities most involved with transactional leadership?
A) the implementation of employee incentives
B) the implementation of organizational transformations
C) the implementation of routine activities
D) the implementation of a corporate vision
E) the implementation of situational problem-solving
79. Which of the following is a fundamental element of charismatic leadership?
A) controlling
B) planning
C) influencing
D) organizing
E) analyzing
80. Which statement is true regarding charismatic leadership?
A) Charismatic leadership ideas are unpopular among contemporary managers.
B) Taking over a leadership role from a charismatic leader is often easier than following a leader
lacking in charisma.
C) Charismatic leadership is recognized as the most important approach to leadership.
D) Many studies have successfully assessed the impact of charismatic leadership.
E) Dependence on charismatic leadership can raise serious ethical concerns.
81. Steven learned that the cohesiveness among his employees was so strong that there was nothing he
could do to change things. Which of the following best describes this cohesiveness?
A) leadership substitute
B) leadership neutralizer
C) leadership amplifier
D) leadership mandate
E) leadership incentive
82. According to current theories of gender roles in leadership, which of the following best describes
the differences in decision making?
A) Males tend to be more charismatic than females in making decisions.
B) Males tend to be more democratic than females in making decisions.
C) Males tend to be more autocratic than females in making decisions.
D) Males tend to be more rational than females in making decisions.
E) Males tend to be more critical than females in making decisions.
83. As ABC Enterprises has grown during the past few years, more and more workers have been hired
from the local Ethiopian population. A number of incidents at the firm have arisen during this time
regarding certain customs prevalent among these new workers. Which of the following forms of
leadership does the management of this firm need to utilize in order to most harmonize this situation?
A) mentoring leadership
B) charismatic leadership
C) cross-cultural leadership
D) autocratic leadership
E) democratic leadership
84. Which states the correct definition of collectivism?
A) a greater focus on group characteristics than on individual characteristics
B) a greater focus on groups that have been operative for the longest time
C) a greater focus on the group than on the individual
D) a greater focus on the individual within a group than on the individual without a group
E) a greater focus on individuals who are most successful
85. Which states the correct definition of individualism?
A) a greater focus on individual characteristic than on cultural characteristics
B) a greater focus on individuals who are in leadership roles
C) a greater focus on individuals who have been present for the longest time
D) a greater focus on the individual within a group than on the individual without a group
E) a greater focus on the individual than on the group
86. In exercising strategic leadership, what is a leader most likely to do?
A) avoid environmental impact on the firm
B) focus on company efficiency
C) engage the firm with community organizations
D) focus on hiring the right people
E) align the company with its environment
87. An inward belief about something, often without conscious consideration, is often referred to as
what?
A) risk taking
B) discernment
C) commitment
D) intuition
E) rationality
88. Bill decides to study a foreign language. All of his friends said it will be easy. After the third
week, he realizes the language is very difficult for him to grasp. He continues his studies, hoping that
it will eventually get easier. What does this illustrate?
A) rational decision making
B) escalation of commitment
C) intuitive decision making
D) risk-taking decision making
E) situational commitment
89. Leadership researchers in the late 1940s believed that leaders should engage in which of the
following behaviors?
A) a variable mixture of employee-focused leader behavior and task-focused behavior depending on
the task
B) both employee-focused leader behavior and task-focused leader behavior in equal amounts
C) mostly employee-focused leader behavior
D) a variable mixture of employee-focused leader behavior and task-focused behavior depending on
the employees
E) mostly task-focused leader behavior
90. Which statement is FALSE regarding gender and leadership?
A) Men tend to be more democratic than women in decision making.
B) There is a growing number of woman leaders in the business world today.
C) Theories regarding gender and leadership are not well-proven.
D) There is much still to be learned about the dynamics of gender and leadership.
E) Most leadership theories and studies have focused on males.
91. In selecting an alternative when making a decision, what should decision makers keep in mind?
A) Finding multiple acceptable alternatives is neither possible nor efficient.
B) Selecting one alternative and rejecting all others might not be necessary.
C) Selecting one alternative and rejecting all others should be a straightforward process.
D) Finding multiple acceptable alternatives should not take very long.
E) Selecting one alternative and rejecting all others will be the decision maker's main objective.
92. Which of the following dispositions is typical for leaders with a high degree of risk propensity?
A) reliance on intuition
B) reliance on rational decisions
C) aversion against rational decisions
D) aversion against use of both intuition and rational decisions
E) aversion against use of intuition
93. What is a prime ingredient in fostering different levels of risk propensity within an organization?
A) company size
B) organizational culture
C) profitability level
D) cross-cultural interactions
E) gender differences
