CHAPTER 11 QUIZ PROFESSOR BLUE

According to the former CEO of Hanover Insurance, learning organizations require that everyone feels and supports a compelling purpose. What is the most difficult aspect of creating this learning organization? A) Communicating an image of the future that draws people in and speaks to them B) Putting systems in place for training C) Find the resources for the necessary educational training D) Getting the shareholders to agree with the CEO

A) Communicating an image of the future that draws people in and speaks to them

Which of the following statements would leastlikely be found in a corporate credo? A) Maximize financial benefits for stakeholders as the primary goal of the organization. B) Provide secure and stable employment for employees. C) Establish an environment that enhances professional growth. D) Support community organizations and projects.

A) Maximize financial benefits for stakeholders as the primary goal of the organization.

________ are obstacles in which the design of organization structure, information processing, and reporting relationships, impede the proper flow and evaluation of information. A) Systemic barriers B) Behavioral barriers C) Political barriers D) Barriers to entry

A) Systemic barriers

When faced with barriers to change, leaders can create a good climate for advancing the aims of the organization and making progress towards its goals by building ________ and ________. A) a learning organization; an ethical organization B) a following organization; an ethical organization C) a learning organization; an efficient organization D) an efficient organization; a learning organization

A) a learning organization; an ethical organization

Which of the following positive relationships is notsupported with consistent results? A) between ethical performance and measures of financial performance B) between ethical performance and strong organizational culture C) between ethical performance and increased employee efforts D) between ethical performance and enhanced social

A) between ethical performance and measures of financial performance

Leaders risk creating a culture of fear and micromanagement if they A) create personal connections with their people through frequent unannounced visits. B) express their passion frequently. C) keep their workforce motivated. D) recognize the opinions of others so that they feel valued.

A) create personal connections with their people through frequent unannounced visits.

Proactive measures to prevent organizational ethics problems do notinclude A) instituting a reward system which considers outcomes as its primary criterion. B) using leaders as role models of ethical behavior. C) issuing statements describing organization commitment to certain standards of behavior. D) using organization information systems as a control system.

A) instituting a reward system which considers outcomes as its primary criterion.

Effective leadership is like a three-legged stool. Which of the following is notrepresented by one of the stool legs? A) maintaining the status quo B) nurturing a culture dedicated to excellence and ethical behavior C) setting a direction D) designing the organization

A) maintaining the status quo

Fisk Johnson is the fifth generation CEO of the family firm, SC Johnson. The combination of the ________, its ________, and its story-driven culture reinforce the willingness of the firm to lead the market in environmental awareness. A) ownership structure of the firm, strong leader B) listing of fragrances, financial awareness C) ownership structure of the firm, employee union D) employee participation, weak leadership

A) ownership structure of the firm, strong leader

Coercive power is the A) power exercised by use of fear of punishment for errors of omission or commission by employees. B) power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates. C) arises from manager access, control, and distribution of information that is not freely available to everyone in an organization. D) ability of the leader or manager to confer rewards for positive behaviors or outcomes.

A) power exercised by use of fear of punishment for errors of omission or commission by employees.

The source of referent power is A) subordinate identification with the leader. B) leader identification with the subordinates. C) derived from the fact that the manager can potentially act as a reference when the employee applies for another job. D) derived from manager ability to provide effective incentives to employees.

A) subordinate identification with the leader.

The central key to empowerment is effective leadership. Leading-edge organizations recognize the need for ________, ________, and ________ at all levels instead of the extensive and cumbersome rules and regulations inherent in hierarchical control. A) trust; cultural control; expertise B) training; finances; expertise C) respect; finances; trust D) control, order, finances

A) trust; cultural control; expertise

________ are obstacles associated with a managerial tendency to look at issues from a biased or limited perspective. A) Systemic barriers B) Behavioral barriers C) Political barriers D) Barriers to exit

B) Behavioral barriers

The medical products company, Medtronic, works to restore patients to full life. They have a holiday party that includes patients, their families, and their doctors who share their survival and recovery stories. What purpose does this holiday party serve for the learning organization? A) It offers patients a break from their problems. B) It inspires and motivates employees with a real mission and purpose. C) It empowers the patients. D) It discourages employees from participating in office gatherings.

B) It inspires and motivates employees with a real mission and purpose.

A strong ethical orientation can have ________ on employee commitment and motivation to excel. A) mitigating results B) a positive effect C) a negative impact D) an expensive outcome

B) a positive effect

Which of the following social skills do many executives find challenging to acquire? A) having empathy for subordinates B) being a good listener C) being a good motivator D) having a large network in place

B) being a good listener

Choose the best answer: Leaders play a key role in developing and sustaining organization A) the status quo. B) culture. C) reporting relationships. D) rules and regulations.

B) culture

The CEO scraps the company commission-based reward system because it rewards employees for inappropriate behavior. This is an example of A) ethical behavior. B) designing the organization. C) unethical behavior. D) the failure to maintain the status quo.

B) designing the organization

The central key to empowerment in a learning organization is A) trained employees. B) effective leadership. C) sufficient financial resources. D) rigid structure.

B) effective leadership.

Which component of emotional intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? A) self-awareness B) empathy C) social skills D) self-regulation

B) empathy

Which of the following is nota source for acquiring external environmental information for the firm mentioned in the text? A) alliance partners B) equity analysts C) suppliers D) scientific community

B) equity analysts

Companies that cultivate cultures of experimentation and curiosity make sure that ________ is not to be avoided at all costs. A) experimentation B) failure C) authority D) risk taking

B) failure

Which of the following is an important characteristic of a leader? A) strives to maintain the status quo B) goal-oriented C) reactive D) focused on past performance

B) goal-oriented

Texas Instruments teaches ethics to its employees. They include all levels of the organization in the exchange of knowledge and auditing of behaviors. This is a good example of a(n) ________ ethics program. A) compliance-based B) integrity-based C) conformance-based D) behavioral-based

B) integrity-based

Functional benchmarking A) is not very useful for organizations with a divisional organizational structure. B) is used to determine best practices regardless of industry. C) restricts the search for best practices to competitors. D) is useful when researching industry-specific standards.

B) is used to determine best practices regardless of industry.

Inspiring and motivating people with a mission or purpose is a ________ for developing an organization that can learn and adapt. A) necessary and sufficient condition B) necessary but not sufficient condition C) goal but not a necessary condition D) goal and a required precondition

B) necessary but not sufficient condition

Refusal to share information, conflicts over resources, conflicts between departments and divisions, and petty interpersonal differences are symptoms of which type of barrier to change? A) systemic barriers B) political barriers C) behavioral barriers D) entry barriers

B) political barriers

In the compliance-based approach to ethics management, the objective is to A) conform with externally imposed standards. B) prevent criminal misconduct. C) enable responsible conduct. D) reduce discretion, training, controls, audits, and penalties.

B) prevent criminal misconduct.

In the compliance-based approach to ethics management, the methods used include A) education, leadership, accountability, decision processes, auditing, and penalties. B) reduced discretion, training, controls, audits, and penalties. C) self-governance. D) conformity with externally imposed standards.

B) reduced discretion, training, controls, audits, and penalties.

The chance of ethical crises occurring is enhanced if A) the leader defines the corporate culture. B) the organization has a weak ethical culture. C) the shareholders have no confidence in the CEO. D) employees follow the direction of the leader.

B) the organization has a weak ethical culture.

The expression the dark side of competition means that A) illegal behaviors result in penalties. B) unethical behaviors are more like to take place when competition is intense. C) competition encourages ethical behavior. D) good competition is costly.

B) unethical behaviors are more like to take place when competition is intense.

Which of the following statements about ethics is false? A) Ethics may be defined as a system of right and wrong. B) Ethics assists individuals in deciding when an act is moral or immoral. C) Ethics can be assessed by the legality of an action. D) Business ethics is the application

C) Ethics can be assessed by the legality of an action.

________ is rarely self-sustaining in an organization. A) High-integrity B) Integrity C) Individual integrity D) Leader integrity

C) Individual integrity

Which of the following is nota characteristic of a successful learning organization? A) It creates a proactive, creative approach to the unknown. B) It empowers employees at all levels. C) It regularly engages in activities to reinforce the status quo. D) It gathers and integrates external information.

C) It regularly engages in activities to reinforce the status quo.

Which of the following statements about leadership is false? A) Leadership is focused on the creation and implementation of a creative vision. B) Leadership is the process of transforming organizations from what they are to what the leader would have them become. C) Leaders work to build a status quo and seek control mechanisms to maintain it. D) Effective implementation of strategy is essential for successful leadership.

C) Leaders work to build a status quo and seek control mechanisms to maintain it.

This legal act provides considerable legal protection to employees of publicly traded companies who report unethical or illegal practices. A) Taft-Hartley Act B) National Labor Relations Act C) Sarbanes-Oxley Act D) Norris-La Guardia Act

C) Sarbanes-Oxley Act

In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of A) resource allocator. B) resource controller. C) a flexible resource. D) an advocator of the status quo.

C) a flexible resource.

Many situations that a firm faces have regular, identifiable patterns. Leaders tend to handle such routines by establishing ________ or ________ to be followed that can be applied ________ to each occurrence. A) rules; regulations; individually B) policies; regulations; uniformly C) a policy; a procedure; uniformly D) documents; credos; uniquely

C) a policy; a procedure; uniformly

Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea was loved by everyone except a high-ranking manufacturing representative who rejected the idea because the new proposal involved a color change which he implied would create a spare-parts problem. Because his experience in manufacturing involved cost cutting, lean inventories and focus, he could not conceive of how this new product proposal would be good for innovation. This is an example of what kind of organizational barrier? A) vested interests in the status quo B) personal time constraints C) behavioral barrier D) systemic barrier

C) behavioral barrier

Houston-based Baylor College of Medicine has a ________ that instructs all employees to follow the Baylor Mission Statement, Compliance Program and Conflict of Interest policy. A) corporate reward B) corporate motto C) code of ethics D) system of evaluation

C) code of ethics

Leaders as good role models must walk the talk. This means they must be ________ in their words and actions. A) effective B) reliable C) consistent D) trust-worthy

C) consistent

Which two components of emotional intelligence (EI) deal with the personal ability to manage relationships with others? A) motivation and self-awareness B) self-regulation and empathy C) empathy and social skill D) motivation and empathy

C) empathy and social skill

A drawback of EI is that a leader can find it easy to over-identify with others and confuse ________ with ________. A) intelligence; empathy B) motivation; empathy C) empathy; sympathy D) motivation; intelligence

C) empathy; sympathy

In the integrity-based approach to ethics management, the objective is to A) conform with externally imposed standards. B) prevent criminal misconduct. C) enable responsible conduct. D) reduce discretion, training, controls, audits, and penalties.

C) enable responsible conduct.

Recognizing opportunities and threats in the external environment is vital to firm success. Complexity and rapid evolution make it critical for employees and managers to become more aware of ________ trends and events. A) internal B) outside C) environmental D) human resource

C) environmental

Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the Duke Power of Indiana program called GoGreen Power. This is an example of A) a benefit of an ethical organization. B) eco-friendly program development. C) greenwashing. D) a successful ethical marketing campaign.

C) greenwashing.

The senior executive team at AES, a 14 billion USD energy company, agreed to take pay cuts because several employees of the firm lied to the EPA about water quality at an AES owned water treatment plant in Oklahoma. This is an example of A) employees passing the responsibility to management. B) leadership shirking responsibility. C) leadership as role models. D) a regulatory solution.

C) leadership as role models.

In the integrity-based approach to management, ethics is the responsibility of the A) shareholders. B) outside stakeholders. C) management. D) employees.

C) management.

According to the textbook, ________ and ________ must accept personal responsibility for developing and strengthening ethical behavior throughout the organization. A) bankers, employees B) employees, external stakeholders C) managers, top executives D) managers, stockholders

C) managers, top executives

Empowering individuals by soliciting their input helps an organization to enjoy better employee A) retention. B) performance. C) morale. D) communication.

C) morale

A highly ethical organization must have all the following elements except A) codes of conduct. B) corporate credos. C) payment plans. D) role models.

C) payment plans.

Which of the following is nota part of the three broad sets of capabilities that a leader should possess? A) technical skills B) cognitive abilities C) physical abilities D) emotional intelligence

C) physical abilities

Which of the following does notconstitute organizational bases of leader power? A) legitimate power B) reward power C) referent power D) coercive power

C) referent power

The ethical compass of an organization, in the integrity-based ethics approach to management, consists of the expected ________ and ________. A) obligations; rules B) behaviors; penalties C) responsibilities; aspirations D) legalities; penalties

C) responsibilities; aspirations

Raytheon, a 24 billion USD defense contractor, incorporated into its Leadership Assessment Instrument the requirement of managers to maintain unequivocal commitment to honesty, truth and ethics in every facet of behavior and to conform with the letter and intent of company policies while working to affect any necessary policy change. This is an example of a A) 360-degree evaluation. B) leadership training program. C) reward and evaluation system that evaluates manager ethical behavior. D) reward system that evaluates bottom line performance.

C) reward and evaluation system that evaluates manager ethical behavior.

All of the following are components of emotional intelligence (EI) except A) self-awareness. B) self-regulation. C) self-promotion. D) empathy.

C) self-promotion

Former CEO of Check Point Software Technologies, Deborah Triant, says that debating is easy, listening with an open mind is not. She says that the worst thing a leader can do in the decision-making process is to voice an opinion before anyone else can. This is an example of a ________ skill. A) design B) organization C) social D) motivated

C) social

An ethically sound organization, drawing on the concepts of stakeholder management, can also strengthen its bonds among its ________, ________, and ________. A) policies; procedures; values B) values; organizational design; employees C) suppliers; customers; governmental agencies D) current employees; potential employees; future employees

C) suppliers; customers; governmental agencies

As a manager, when faced with ethical crises you should A) focus on issues most relevant to stockholders. B) wait for the other party to make the first move. C) take the initiative to address the problem. D) cover up as much as possible.

C) take the initiative to address the problem.

In organizations, ethical behavior must start with ________ before ________ can be expected to perform accordingly. A) the employees; the shareholders B) the shareholders; the leader C) the leader; the employees D) the leader; the shareholders

C) the leader; the employees

In the compliance-based approach to ethics management, leadership is driven by A) management with input from functional staff. B) management with input from shareholders. C) the legal office. D) the government.

C) the legal office.

Which of the following is notan aspect of culture that effective learning organization firms need to develop as they redistribute information, knowledge and rewards? A) encourage employees to offer ideas, ask questions, and express concerns B) encourage widespread sharing of information from various sources C) utilize technology that fosters tighter controls D) encourage collaborative

C) utilize technology that fosters tighter controls

According to research, effective leaders at all levels of organizations have high levels of Emotional Intelligence (EI). CEOs with high EI excel in all of the following except A) managing relationships. B) influencing people. C) forging alliances inside and outside the firm. D) ability to discourage outside stakeholders.

D) ability to discourage outside stakeholders.

Compliance-based ethic programs typically are designed by A) management. B) employees. C) shareholders. D) corporate counsel.

D) corporate counsel.

Which of the following is nota guideline an organization can use to promote the challenging of the status quo? A) establishing a culture of dissent B) forcefully creating a sense of urgency C) fostering a culture that encourages risk taking D) creating a results-based reward system

D) creating a results-based reward system

Which of the following does notexplain why organizations are prone to inertia and slow to change? A) personal time constraints B) political barriers C) vested interests in the status quo D) entry barriers

D) entry barriers

Effective learning organizations must redistribute ________, ________, and ________ in order to assure that there is a common body of knowledge. A) rewards; training; handbooks B) training; knowledge; pay raises C) knowledge; financial rewards; intangible rewards D) information; knowledge; rewards

D) information; knowledge; rewards

Expert power is derived from A) organizationally conferred decision-making authority. B) manager access, control, and distribution of information that is not freely available to everyone in an organization. C) referent power. D) leader capability and knowledge in a particular field.

D) leader capability and knowledge in a particular field.

Creating an ethical framework and developing organizational capabilities to make it operational is the responsibility of A) employees. B) shareholders. C) the law. D) leadership.

D) leadership.

Leaders who are ________ show a passion for the work itself, such as seeking out creative challenges, a love of learning, and taking pride in a job well done. A) self-aware B) self-regulators C) socially skilled D) motivated

D) motivated

Which of the following are used to evaluate whether a manager is acting in an ethical manner? A) bonuses and penalties B) job descriptions C) assessment and penalties D) reward and evaluation systems

D) reward and evaluation systems

CEOs who are ________ tend to have a wide circle of acquaintances as well as a knack for finding common ground and building rapport. A) self-aware B) self-regulators C) motivated D) socially skilled

D) socially skilled

When Target offered online purchasing of groceries for in-store pick up and then store delivery to customer locations it realized that their supply chain logistics no longer matched with the demands of this new offer. This is an example of what kind of barrier to change? A) vested interests in the status quo B) personal time constraints C) behavioral barrier D) systemic barrier

D) systemic barrier

Unethical business practices typically involve the ________ cooperation of others and reflect the values, attitudes, and behavior patterns that define the operating culture of the organization. A) select B) complete C) explicit D) tacit

D) tacit

Poor organizational design by leaders can result in all the following except A) lack of understanding of responsibility and accountability among managers. B) inadequate or inappropriate budgeting and control systems. C) reward systems that do not motivate individuals toward desired organizational goals. D) teams, systems, and organizational processes that facilitate implementation.

D) teams, systems, and organizational processes that facilitate implementation.

A strategic vision provides many benefits. Which of the following is notone of those benefits? A) a clear future direction B) a framework for their organization mission and goals C) enhanced employee communication and commitment D) the ability to influence the environment of the firm

D) the ability to influence the environment of the firm

While carefully developed policies and procedures guide behavior, they need to be reinforced with all the following except A) effective communication. B) enforcement. C) monitoring. D) threats of dismissal.

D) threats of dismissal.

A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior.

FALSE

A key function of the leaders in a learning organization is to generate an organization-wide commitment to the status quo.

FALSE

Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information.

FALSE

Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ).

FALSE

Empathy, one of the components of emotional intelligence (EI), refers to personal proficiency in managing relationships and building networks.

FALSE

Ethical crises are bad for organization reputation, but they rarely have any financial consequences.

FALSE

In integrity-based ethics programs, organizational ethics is seen as the responsibility of the employees.

FALSE

Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization.

FALSE

Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive.

FALSE

People with strong self-awareness are overly critical and unrealistically optimistic and are well suited to run organizations because they will make good judgment calls.

FALSE

Research supports that there are many potential benefits of an ethical organization, including that there is a strong and consistent relationship between ethical performance and measures of financial performance.

FALSE

The tendency of many individuals to invest further in decisions providing positive performance feedback is referred to as escalation.

FALSE

There can be a high-integrity organization without high-integrity individuals.

FALSE

Codes of conduct help employees from diverse backgrounds to work more effectively across cultural backgrounds.

TRUE

If leaders do not believe in the ethical standards that they are trying to inspire, they will not be effective as good role models.

TRUE

Inappropriate reward systems may cause individuals to commit unethical acts.

TRUE

Leaders must draw on a range of personal skills as well as organizational mechanisms to move their organizations forward in the face of barriers to change.

TRUE

Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.

TRUE

Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.

TRUE

Three key interdependent strategic leadership activities are: designing the organization, determining its direction, and nurturing a culture dedicated to excellence and ethical behavior.

TRUE