MNGT 4500 Chapter 7

In 2012, the average CEO salary was ________ times the salary of a minimum wage worker. a. 151 b. 354 c. 532 d. 821

b. 354

Maleeni enjoys new situations, likes taking risks, and believes that leaders should delegate decision making to the lowest possible level. Which strategic leadership type is she? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

b. Participative innovator

Ricardo Semler, CEO of Semco, is an example of which type of strategic leader? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

b. Participative innovator

The public-good mission of nonprofits, along with voluntary participation of many contributors requires leaders to engage in a ________ style. a. directive b. collaborative c. authoritative d. task-oriented

b. collaborative

How open a leader is to change and how willing he or she is to take risks is most important and relevant: a. in small organizations. b. during the formulation of strategy. c. in times of crisis when high-risk decisions often pay off. d. in certain environments.

b. during the formulation of strategy.

A sense of crisis sets the stage for: a. poor performance. b. emergence of charismatic CEOs. c. a decrease in CEO discretion. d. stakeholders to exercise more power.

b. emergence of charismatic CEOs.

The common thread among many female executives is: a. the fear of failure b. employee empowerment c. lack of international experience d. strong financial skills

b. employee empowerment

A process manager delegates control inside the organization and is a risk-taker. a. true b. false

b. false

A status-quo guardian seeks challenges and needs high control. a. true b. false

b. false

A.G. Lafley of Proctor & Gamble is an example of the typical power U.S. executives hold and how they use it. a. true b. false

b. false

Because mergers often create a sense of crisis and lead to internal chaos, employees rely less on their leadership. a. true b. false

b. false

CEOs of very large organizations have considerably more impact on their organizations. a. true b. false

b. false

CEOs often control the formal, but not the informal, reward system of their organizations. a. true b. false

b. false

CEOs often have stronger impact in young organizations. a. true b. false

b. false

CEOs who are risk-takers and open to change perform better than those who are not. a. true b. false

b. false

Cross-cultural research shows different patterns of leadership based on culture, but those differences do not apply to upper echelon leadership. a. true b. false

b. false

Data on executive salaries and firm performance shows a clear relationship between the two. a. true b. false

b. false

In almost all cases, poorly performing CEOs are eventually fired because of their lack of performance. a. true b. false

b. false

Jamie and Victor Tsao, founders of Linksys, are participative innovators. a. true b. false

b. false

Mickey Drexler of J.Crew and A.G. Lafley of P&G both are high control leaders. a. true b. false

b. false

Mickey Drexler, CEO of J. Crew, was unsuccessful at changing the culture and focusing on the long-term good of the company. a. true b. false

b. false

Mickey Drexler, former CEO of the Gap, is an example of a status quo guardian. a. true b. false

b. false

Nonprofit organizations do not have distinguishing characteristics from for-profit organizations. a. true b. false

b. false

Process managers avoid risk and centralize decision making. a. true b. false

b. false

Research indicates that CEOs who are older men tend to be more externally oriented and more innovative in their strategic choices. a. true b. false

b. false

Role modeling is often an ineffective way for CEOs to try to influence the behavior of others in their organizations. a. true b. false

b. false

Some research suggests that upper echelon female leaders tend to have a lower need for control than their male counterparts. a. true b. false

b. false

The French upper echelon leaders are generally more open to change and non-hierarchical than leaders at other levels of French organizations. a. true b. false

b. false

The difference between micro and macro leadership is in the nature of the process. a. true b. false

b. false

The environment is the most important of the strategic forces. a. true b. false

b. false

The more participative strategic leaders who encourage participation and empowerment are usually better and more effective CEOs. a. true b. false

b. false

The structure of an organization refers to how leadership is organized. a. true b. false

b. false

The task-relationship dimensions used in micro level leadership have strong applications to upper level leadership. a. true b. false

b. false

There are four strategic forces that are the domain of strategic management a. true b. false

b. false

There is typically a surplus of adequately qualified leaders willing to move into positions with nonprofit organizations. a. true b. false

b. false

Upper echelon leaders often formulate, but do not implement strategy. a. true b. false

b. false

Which one of the strategic leaders tries to protect the organization from the impact of outside forces, encourages a fluid culture, and emphasizes efficiency? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

d. Process manager

Prior to the year 2000, Procter and Gamble had a reputation for: a. encouraging employee creativity and non-conformity. b. providing clear guidelines for everything employees did. c. poor products and low innovation. d. external promotions that discouraged long time employees.

b. providing clear guidelines for everything employees did.

In the examples provided in your book, Feargal Quinn, the CEO of the Irish supermarket chain Superquinn, and James Rogers of Duke Energy rely on ___________ to influence their employees and organizations. a. direct decisions b. role modeling c. informal reward system d. promotions

b. role modeling

Mickey Drexler, former CEO of the Gap is an example of: a. arrogant leaders who can't work with others. b. creative CEOs who are open to change. c. CEOs of large companies that failed because of their leadership. d. CEOs who have a high need for control.

d. CEOs who have a high need for control.

The job of upper echelon leaders requires an equal focus on: a. internal and external b. people and task c. financial and performance d. teams and departments

a. internal and external

In micro leadership, the leader focuses on __________ factors, while macro leaders focus on ___________ issues. a. internal; external b. people; task c. financial; performance d. team; department

a. internal; external

A.G. Lafley, current CEO of Procter and Gamble, is credited with the company's revival and high performance. Lafley's style is best described as: a. quiet and determined team builder. b. energetic and loud change master. c. inspirational and charismatic. d. focus on financial performance.

a. quiet and determined team builder.

As a general rule, the power and discretion of the CEO increase when: a. the TMT members are similar to the leader. b. the CEO has considerable international experience. c. the company goes public d. a board of directors is put in place to help the CEO

a. the TMT members are similar to the leader.

Structure is best defined as: a. the way human resources are organized. b. the process by which inputs are transformed into outputs. c. a common set of beliefs. d. the internal factors that affect an organization.

a. the way human resources are organized.

A high-control innovator has a high need for control and seeks challenges. a. true b. false

a. true

A participative innovator delegates control inside his or her organization and is a risk-taker. a. true b. false

a. true

Both micro and macro leaders are effective when they reach their goal. a. true b. false

a. true

CEOs have considerable impact on the direction and strategy of organizations. a. true b. false

a. true

CEOs who control their organizations tightly are often successful in implementing various projects such as increasing diversity. a. true b. false

a. true

Dealing with external constituents is central to the function of upper echelon leaders. a. true b. false

a. true

High-control innovators will seek innovative strategies that stay close to their current businesses. a. true b. false

a. true

Participative innovators are open to new strategies and decentralize decision making. a. true b. false

a. true

According to the culturally endorsed leadership theories, which cultures most value leaders who are inspirational and provide a vision? a. Middle Easterners and Southern Europeans b. Latin Americans and Nordic Europeans c. Eastern Asians and Africans d. Southwestern Asians and Germans

b. Latin Americans and Nordic Europeans

Which of the strategic leaders will open his or her organization to the outside, engage in high risk strategies, and empower employees to make decisions? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

b. Participative innovator

Which is not a nonprofit organization? a. Stanford University b. Proctor and Gamble c. Planned Parenthood d. National Association for the Advancement of Colored People NAACP

b. Proctor and Gamble

Many CEOs are simply not held accountable for their poor performance or even unethical behavior. a. true b. false

a. true

Many poorly performing upper echelon leaders continue to keep their jobs in spite of poor performance. a. true b. false

a. true

Monica Luechtefeld, e-commerce chief of Office Depot, is an example of a challenge seeker. a. true b. false

a. true

Nonprofit organizations are largely based on principles of altruism and self-sacrifice. a. true b. false

a. true

One of the most powerful ways upper echelon leaders influence others is through direct decisions regarding vision, mission, strategy, and structure. a. true b. false

a. true

One of the ways Jeff Bezos, CEO of Amazon.com, influences the direction of his organization is by deciding where resources will go. a. true b. false

a. true

Powerful boards or TMTs are often needed to provide balance to the growing power of CEOs. a. true b. false

a. true

Ricardo Semler, CEO of Semco, is an example of a participative innovator. a. true b. false

a. true

Status-quo guardians will protect their organizations from the outside and hire people who are similar to them. a. true b. false

a. true

Strategic leaders must balance the various strategic forces and create a fit among them. a. true b. false

a. true

Technology is the process by which inputs are transformed into outputs. a. true b. false

a. true

The CEO salaries of large U.S. companies have consistently been at least twice as high as CEOs in other industrialized countries. a. true b. false

a. true

The French upper management tends to have considerable power and authority. a. true b. false

a. true

The environment is made up of all the factors outside an organization that have the potential to affect it. a. true b. false

a. true

The leader's role becomes more prominent when an organization faces an uncertain environment. a. true b. false

a. true

The more global a company, the higher the compensation of its CEO. a. true b. false

a. true

The type of strategic leader that will be effective depends on various organizational factors. a. true b. false

a. true

There is usually one person who is the top leader of an organization. a. true b. false

a. true

CLTs suggest that Anglo and Latin American value leaders who have visions are more inspirational more than Middle Easterners. a. true b. false

a. true

Effective leadership in nonprofit organizations requires empowerment. a. true b. false

a. true

Female upper echelon leaders often focus less on power acquisitions than their male counterparts. a. true b. false

a. true

Jon Brock, CEO of InBev, represents a process manager. a. true b. false

a. true

________ includes all of the outside forces that potentially affect the organization. a. Environment b. Structure c. Technology d. Strategy

a. Environment

Culturally endorsed leadership theories (CLTs) were proposed by __________. a. GLOBE researchers b. Hofstede c. Trompenaars d. Hall

a. GLOBE researchers

Jeffrey Katzenberg, CEO of Dreamworks, is an example of a a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

a. High-control innovator

Stephen has always enjoyed new challenges and feels most comfortable when he has a tight control of his employees. Which strategic leadership type is he? a. High-control innovator b. Participative innovator c. Status quo guardian d. Product manager

a. High-control innovator

Which one of the strategic leaders implements the latest high-technology innovations in his or her organization, builds a strong dominant culture, and hires managers who are similar to him or her? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

a. High-control innovator

When do upper echelon leaders have a primary responsibility to formulate strategy for an organization? a. When an organization is looking for strategic redirection. b. When a successful strategy is in place. c. When the environment is uncertain. d. When stakeholders have power to make decisions that impact the organization.

a. When an organization is looking for strategic redirection.

Jeff Bezos, CEO of Amazon.com, decided to focus his organization on staying on top of technological developments. This is an example of how CEOs affect their organization through: a. allocation of resources b. selection of other leaders c. role modeling d. technology management

a. allocation of resources

Micro leaders are typically evaluated as effective based on ________ , whereas upper echelon leaders are typically evaluated based on ________. a. employee satisfaction; stock prices b. motivation; absenteeism c. stakeholder satisfaction; employee satisfaction d. productivity; financial measures

a. employee satisfaction; stock prices

What do Patricia Woertz of Archer Daniels Midland, James McNemey of Boeing, and Ray Gilmartin of Merck have in common? a. They are all CEOs of profitable companies. b. They all got considerable pay increases while their companies performed poorly. c. They all have been accused of ethical violations regarding corporate governance. d. They were all fired for poor performance.

b. They all got considerable pay increases while their companies performed poorly.

Which type of CEO of less likely to change an organization. a. a high Machiavellian b. an insider c. a younger outsider d. a type B personality

b. an insider

CEOs who encourage diverse opinions and put into place few rules often perform better than those who tightly control their organizations. a. true b. false

b. false

The company Jagged Edge Mountain Gear provides an example where strategic forces are not in balance and do not fit one another. a. true b. false

b. false

The definition of leadership is different at different levels of leadership, a. true b. false

b. false

Upper echelon leaders often have unlimited power and influence in all aspects of decision making in their organizations. a. true b. false

b. false

Which of the following is not one of the processes leaders use to influence their organizations. a. direct decisions b. laissez-faire c. selection of other leaders d. role modeling

b. laissez-faire

The difference between micro and macro level leadership is in the _________ and ___________. a. definition; process b. level; scope c. type; focus d. performance level; definition

b. level; scope

The _____________, the less the power and discretion of the CEO. a. less uncertainty in the environment b. stronger the TMT c. younger the organization d. more cohesive the organization

b. stronger the TMT

The case of Larry Ellison, Safra Catz, and Mark Hurd at Oracle is an example of: a. the role of culture in CEOs' behavior and decisions. b. the impact of partnerships on leader power. c. the negative effect of a poor economy on CEO performance. d. the negative impact of arrogance on CEOs.

b. the impact of partnerships on leader power.

Anthony has just become the CEO of a company that has been around for over 100 years and has been steadily declining. As Anthony takes on his new job, he finds that he has considerable power and influence to make decisions and implement them. Anthony's discretion is an example of: a. the typical powers of CEOs b. the increase of CEO discretion in times of crisis. c. how older companies still have traditional power structures. d. the effectiveness of the fit between CEO characteristics and organizational factors.

b. the increase of CEO discretion in times of crisis.

According to the Bridgespan Group's 2006 study, there are ________ the number of nonprofit organizations compared to 20 years ago. a. two times b. three times c. five times d. ten times

b. three times

One argument in support of the high executive packages is that: a. higher pay leads to higher performance b. the high salaries are needed to prevent CEOs from abusing their power c. CEO jobs are demanding and unstable d. U.S. CEOs are among the best in the world

c. CEO jobs are demanding and unstable

As a manager who practices participation and empowerment, your style of leadership is likely to be most appreciated by: a. Eastern Europeans b. Middle Easterners c. Nordic Europeans d. Asians

c. Nordic Europeans

Ashley is most comfortable when she is fully in charge of her group and likes to keep things as they are. Which strategic leadership type is she? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

c. Status quo guardian

Which one of the strategic leaders will focus on efficiency and protecting the organization from change and build a centralized and homogeneous organization? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

c. Status quo guardian

Janie and Victor Tsao, founders of Linksys, are examples of: a. High-control innovators b. Participative innovators c. Status quo guardians d. Process managers

c. Status quo guardians

Which characteristic of CEOs would be more likely lead to an organization with centralized decision making, low delegation, and a low focus on process? a. an internally focused CEO b. a collectivist leader c. a CEO with low need for control d. a leader who likes risk-taking

c. a CEO with low need for control

Entrepreneurship, openness to change, transformational leadership, and futuricity are all part of which characteristic of upper echelon leaders? a. external orientation b. individualism c. challenge seeking d. risk-taking

c. challenge seeking

Two general sets of factors moderate the power and discretion of executives. These include: a. employees and other managers. b. environmental factors and stakeholders. c. external factors and organizational factors. d. leadership factors and market issues.

c. external factors and organizational factors.

Which is not a distinguishing characteristic of nonprofit organizations? a. operate without profit b. public service mission c. governed by paid board of directors d. funded through contributions

c. governed by paid board of directors

Ming Tsao rarely openly comments on or criticizes his managers and employees' actions. Instead, he carefully selects those he believes have potential, invites them to attend meetings and social events, and allows them to spend more time with him. Ming's behavior is an example of which processes upper echelon leaders use to influence their organization? a. direct decisions b. role modeling c. informal reward system d. promotions

c. informal reward system

Tolerance for diversity, extent of centralization, degree of employee participation, and organicity are all part of which characteristic of upper echelon leaders? a. internal orientation b. collectivism c. need for control d. risk-aversion

c. need for control

How many strategic forces are in the domain of strategic leadership? a. two b. four c. six d. eight

c. six

The ___________ the organization, the __________ the power and discretion of its top leader. a. more complex; less b. more diverse; more c. smaller; more d. more uncertain; less

c. smaller; more

The Jagged Edge Mountain Gear company provides an example of: a. the role of strategic planning. b. the key role of the CEO. c. the importance of the fit among strategic factors. d. the link between upper level leadership and strategy.

c. the importance of the fit among strategic factors.

As organizations grow and mature, the leader's influence is often replaced with: a. the influence of teams. b. the power of middle management. c. the presence of a strong culture. d. individual decision making.

c. the presence of a strong culture.

Which of the following is not a factor in determining a CEO's compensation? a. Company size b. Competition within the industry c. Internationalization d. Company performance

d. Company performance

How does Lafley regard power? a. Power is not necessary for performance. b. Power must be shared with all employees. c. Building a power base starts with expertise and must be backed up with force if necessary. d. Power is determined by influence rather than control.

d. Power is determined by influence rather than control.

Jon Brock, CEO of InBev, represents which type of strategic leader? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

d. Process manager

Zhen does not like change much and empowers his employees to make their own decisions. Which strategic leadership type is he? a. High-control innovator b. Participative innovator c. Status quo guardian d. Process manager

d. Process manager

The XYZ organization is headed by the 60 year old Rodger Smith who has been with the company for 25 years and CEO for the past 5 years. XYZ has performed well under his leadership. Based on research about upper echelon leaders, which of the following is most likely to happen? a. Rodger will continue performing well by changing course as the need for change arises. b. Rodger's performance is likely to go down, since most CEOs are not effective beyond 5 years. c. Rodger is likely to engage in international venture because most people in his generation have international experience. d. Rodger is likely to lead XYZ the same way he has been for the past 5 years, without making major changes.

d. Rodger is likely to lead XYZ the same way he has been for the past 5 years, without making major changes.

In 2012, the average salary of CEOs in Standard and Poor's top 500 companies was: a. Over $4 million b. between $400,000 and $800,000 c. between $2 and $4 million d. a little over $1 million

d. a little over $1 million

In successful companies, the well established culture and procedures often _______________. a. reduce the impact of teams b. provide increased discretion to the leader c. increase the power of the leader d. act as substitutes for the CEO

d. act as substitutes for the CEO

Which is not one of the primary methods top echelon leaders use to affect their organizations? a. direct decisions b. allocation of resources c. setting norms d. assessing employees skills

d. assessing employees skills

Which of the following terms best represent the typical characteristics of French upper management, or "cadre"? a. participative, creative, and highly technical b. stubbornness, control, and practical application c. empowerment, focus on efficiency, and flexible d. intellectual brilliance, excellent communication, and analytical skills

d. intellectual brilliance, excellent communication, and analytical skills

Which one of the following is not one of the strategic forces that impact organizations? a. culture b. environment c. technology d. management

d. management

Which is not an external environmental factor that moderates the power of leaders? a. environmental uncertainty b. market growth c. industry type d. organizational culture

d. organizational culture

Mickey Drexler, former CEO of the Gap and current CEO at J. Crew, had considerable power and discretion while he was with the Gap because: a. he is an effective CEO. b. he was well-liked by his employees. c. the company board of directors was weak and ineffective. d. the company was new and in need of revival.

d. the company was new and in need of revival.

Which of the following is not considered to be part of the upper echelon leadership of an organization? a. president b. chief operating officers c. top management team d. top department leader

d. top department leader