nonprofit management - quiz two - practice problems
the significant characteristic of transformational leadership is that it: -gives a leader absolute power -reduces the responsibility of the leader -balances the power between the leader and his or her subordinates -offers an approach to leading both subordinates and organizations
offers an approach to leading both subordinates and organizations
a common and problematic method that researchers have used for identifying effective nonprofit leaders is based on: -revenues generated -staff turnover -perceptions of effectiveness -levels of complacency
perceptions of effectiveness
in carvers policy governance model, he argues that the board should lead the organization by focusing its attention on establishing: -board evaluations -policies -a group of advisors -senior management positions
policies
this concept states that a board member or officer of the organization cannot unreasonably benefit from the organizations funds. -conflict of interest -private inurement -obedience -intermediate sanctions
private inurement
______ means that a person is perceived by himself and the board of directors as the organizations formal authority. -social rationalism -purposive rationality -psychological centrality -emergent perception
psychological centrality
the model of organizations that conceives of the board as the top of a hierarchy and the CEO as merely its agent is: -the governance as leadership model -the policy governance model -purposive rational model -self perpetuating model
purposive-rational model
a nonprofit board of directors asked an outside consulting organization to assess the organizations program performance. the board is applying the best practice of: -strategic thinking -independent mindedness -results oriented -revitalization
results-oriented
according to dym and hutson, alignment is: -controlled by the leader only -controlled by the organization only -a two way process -an illusion
a two-way process
a board of directors is interviewing individuals for a CEO position of a nonprofit organization. the directors want to ensure the person they hire has the personality that matches the organization's mission. the board members want to ensure: -charisma -transformation -dissonance -alignment
alignment
the most common type of board in public organizations is a(n): -elected board -appointed board -self perpetuating board -advisory board
appointed board
leaders who use a political frame are: -more likely to go on to run for political office -sensitive to external forces that might affect the organization -less likely to maintain external relationships -inured to public opinion
sensitive to external forces that might affect the organization
the type of leader that listens, empathizes with others, and focuses on relationships is a: -servant leader -task oriented leader -relationship oriented leader -team leader
servant-leader
crutchfield and grant determined that effective nonprofit CEOs: -manage their organizations as closed system -share leadership with others -do not work outside of their expertise -do not conduct strategic planning
share leadership with others
which type of board CEO model suggests an organizations strategic plan is simply a paperwork project? -purposive rational model -psychological centrality and board centered leadership model -social constructionist model -governance as leadership model
social constructionist model
the idea that a leader must be friendly but cannot permit himself or herself to become too familiar with subordinates is: -self sacrifice -persuasive appeal -social distance -superior management
social distance
in grant thorntons 2012 survey of nonprofit boards, what activity/responsibility was identifies as the most important focus? -accountability items -the organizations reputation -strategic planning -ensuring effective programs
strategic planning
internal preparation for executive transition is the shared responsibility of the board and: -the CEO -a committee of volunteers -the founder -the chair elect
the CEO
who did herman and heimovics find is actually seen as responsible for the organizations success or failure? -the board -the shareholders -the marketing department -the CEO
the CEO
chait, ryan, and taylor call for the board and the CEO to focus their attention on: -the critical issues facing the organization -policies and their implementation -monetary goals -expansion
the critical issues facing the organization
a nonprofit organizations finance committee is listening to the advice of a financial expert on how they should manage the organizations investments. the board is practicing which duty? -the duty of investment -the duty of care -the duty of loyalty -the duty of obedience
the duty of care
the board of directors of a nonprofit is debating if a proposed new program is offering falls within the organizations mission. the board is applying which type of duty? -the duty of investment -the duty of care -the duty of loyalty -the duty of obedience
the duty of obedience
in a self-perpetuating board, new members are selected by: -the membership of the organization -the CEO -the existing members of the board -a selection committee
the existing members of the board
an ex-officio seat on a board is held by: -the individual who holds a certain office or position -a randomly selected individual -the highest ranking officer in the organization -an individual appointed by the most senior member of the board
the individual who holds a certain office or position
the theories that maintain that the function of leadership is to continually examine better ways of doing things are: -contingency theory -skills theory -trait theory -change theory
change theory
according to proponents of this type of leadership, a leader is someone who behaves in certain ways that cause others to see him or her as a leader. -charismatic leadership -legislative leadership -behavioristic leadership -executive leadership
charismatic leadership
according to kotter's top-down approach, efforts at transformational change in an organization often fail because leaders allow too much: -complacency -flexibility -input from subordinates -negative publicity
complacency
an organizational leader who changes his leadership styles based on the particular circumstances of a situation is practicing: -contingency theory of leadership -trait theory of leadership -data based leadership -nepotism leadership
contingency theory of leadership
george retired from a local law firm and then volunteered to oversee a nonprofits legal records. george is performing the duties of a: -corporate secretary -corporate clerk -bookkeeper -sergeant at arms
corporate secretary
according to boardsource, exceptional boards shape and uphold their organizations mission, articulate a compelling vision, and ensure the congruence between: -decisions and core values -its direction and its financial goals -the CEO and members of the board -its governance duties and is organizational priorities
decisions and core values
a lack of leadership by the CEO of a nonprofit organization will eventually lead to: -corporate takeover -restructuring of leadership -drift, decline, and failure -a more democratic method of leadership
drift, decline, and failure
according to kotter, leaders planning to implement organization change should first: -create a guiding coalition -establish a sense of urgency -communicate the change vision -generate short term wins
establish a sense of urgency
robert, the chair of a nonprofit board of directors, asked the CEO to provide the board an accurate report of the expenses incurred for a fundraiser. robert is practicing which best practice recommended by boardsource? -strategic thinking -ethos of transparency -continuous learning -revitalization
ethos of transparency
according to collins, this type of leadership exists when the leader has the power to simply make decisions. -legislative leadership -figurehead leadership -executive leadership -charismatic leadership
executive leadership
chait writes that nonprofit boards should manage the organizations they serve. -true -false
false
in the alignment model, alignment must be achieved between the leader and the nonprofit board only. -true -false
false
in the study daring to lead, researchers found a negative correlation between the amount of time the CEO spends with the board and CEO and board member satisfaction -true -false
false
nonprofits are not required to file a form 990 with the IRS unless their annual revenues are over $100,000. -true -false
false
one of the responsibilities of a nonprofit CEO is to recruit and select new members to the board of directors. -true -false
false
one of the responsibilities of a nonprofit board member is to supervise volunteers. -true -false
false
self-perpetuating board members are elected by the organizations membership. -true -false
false
the board responsibility to obedience means that the board must do what the CEO asks them to do. -true -false
false
trait theories emphasize the background and business experience of the nonprofit leader -true -false
false
transformational leadership primarily uses rewards or punishment to influence and change the behaviors of others -true -false
false
in 2009, the IRS introduces a revised version of _____ which changed the original form from a financial report into a financial and governance report. -stern v. lucy webb hayes national training school for deaconesses and missionaries -intermediate sanctions legislation -form 990 -the sarbanes-oxley act
form 990
the founder of habitat for humanity found it difficult to turn management of the nonprofit over to a new CEO. the founder was demonstrating: -fear syndrome -reluctance syndrome -founder syndrome -change syndrome
founder syndrome
a ____ is a perspective or a way of seeing and understanding things. -grid -task behavior -transition -frame
frame
most nonprofit CEOs are recruited: -from within the organization -from outside the organization -from corporations -by a committee of volunteers
from outside the organization
nonprofit CEOs spend the majority of the time on the external activity of: -marketing -fundraising -research and development -personnel management
fundraising
the importance of this aspect of external activity is growing as government support for many programs has been reduced. -professional associations -executive transitions -employee orientation -fundraising
fundraising
a nonprofit board of directors has hired a consultant to help the directors think of new and creative ways to improve organizational performance. according to chait, the board is operating in what type of mode? -fiduciary mode -evaluation mode -generative mode -strategic mode
generative mode
no subject commands more ink, or more lung power, than the role of the board in: -giving and raising philanthropic funds -administering benefits to its members -maintaining its members salaries -monitoring its moral responsibility
giving and raising philanthropic funds
another name from a nominating committee is a(n): -ad hoc committee -governance committee -naming committee -stewardship committee
governance committee
mandy is a CEO who displays little commitment to the organization's mission and staff. according to blake and mouton, mandy has what type of management style? -authority obedience -team -impoverished -country club
impoverished
financial penalties to publish individuals who engage in or permit improper transgressions are called: -give or get policies -intermediate sanctions -excess benefit transactions -means to an end
intermediate sanctions
todays boards are being exhorted not only to raise money and promote the organization but also to: -encourage more cooperation between the CEO and the board -be more aggressive in monitoring performance -motivate its members -increase communication levels between the board and the rest of the organization
be more aggressive in monitoring performance
bryan is a CEO of a nonprofit organization and while he wants to be successful, he focuses his work based on political realities his organization must deal with. bryan is demonstrating CEO: -behavior -common practice -pressure -pleasure
behavior
establishing the organization mission is the responsibility of its: -human resources department -CEO -members -board
board
in 2005, who assembled a panel of experts to identify those practices that lead to effective governance in an organization? -the stanford social innovation review -the federal government -boardsource -grant thornton
boardsource
according to herman and heimovics, effective CEOs stay focused on: -key goals and outcomes -the organization's revenue -industry comparisons -past failures
key goals and outcomes
a board of directors want to hold an organizational retreat so they can interact with the CEO, staff, and volunteers of their organization. The board is implementing which leadership theory? -contingency theory -production orientation theory -leader member exchange theory -conceptual theory
leader member exchange theory
rebecca is attending a working lunch with community leaders who share her nonprofit organization's values. rebecca is practicing which type of leadership? -executive -subordinate -legislative -novel
legislative
the concept that is defined as members of the board putting the interests of the organization above their own personal financial interests is called: -loyalty -selflessness -care -obedience
loyalty
the responsibility mostly concerned with day-to-day operations, and with making things work is called: -leadership -management -guidance -control
management
when a board is operating in the fiduciary mode, it is concerned with: -the organizations long term directions and goals -specific criteria for monitoring and evaluating the CEOs performance -matters such as stewardship of tangible assets, faithfulness to mission, performance accountably, and obedience to law -creative, out of the box thinking in which visionary leaders often engage
matters such as stewardship of tangible assets, faithfulness to mission, performance accountably, and obedience to law
a nonprofit board of directors is establishing ground rules that inform members what type of fundraising efforts would not be allowed. the board is setting a policy that carver would refer to as: -boardstaff relationships -ends to be achieved -means to be achieved -means to the end
means to the end
elected boards are most common in: -public organizations -member serving and advocacy organizations -charitable nonprofits -companies headed by a CEO
member-serving and advocacy organizations
in dym and hutson's alignment map, how many components must be aligned for a perfect fit? -two -three -four -five
three
the type of theory that explains leadership in terms of the innate characteristics of individuals who are leaders is: -skills theory -trait theory -behavior theory -contingency theory
trait theory
a CEO exhibiting "founder syndrome" can pose a serious challenge or even crisis for a nonprofit organization. -true -false
true
a board governs the nonprofit organization while the CEO manages it. -true -false
true
advisory councils have no legal responsibility or authority for governance of a nonprofit organization. -true -false
true
an advantage of an elected board is that it helps ensure that the organization will be responsive to member needs. -true -false
true
an effective CEO shares leadership and empowers others -true -false
true
behavior theories include task behaviors and relationship behaviors. -true -false
true
governing boards have the ultimate responsibility for ensuring an organization serves its mission. -true -false
true
hybrid boards may have elected and appointed members. -true -false
true
servant leadership places emphasis on values and commitment. -true -false
true
successful executive transitions involve creating a plan and procedure before it is needed. -true -false
true
the CEOs responsibilities involve both managing and leading the organization. -true -false
true
the panel on the nonprofit sector issues reports recommending practices similar to those outlined in the sarbanes-oxley act. -true -false
true
the sarbanes-oxley act has a provision to protect whistle blowers. -true -false
true
brandon uses a newsletter as his organization's only communication tool. according to kotter, brandon's communication channel may result in: -declaring victor too soon -complacency -drift -under communication
under communication
excess benefit transaction is: -when a persons compensation is deemed in excess of the value of his or her services -the responsibility of a board to make sure an organization is complying with law -how an organization keeps costs of benefits reasonable -model of board CEO relationship
when a persons compensation is deemed in excess of the value of his or her services