MAN 3065 CHAPTER 11
48. Discuss the role of leadership in understanding and executing ethical decision making in organizations.
ANSWER: Ethical leadership creates an ethical culture. If top managers fail to express desired ethical behaviors and goals, a corporate culture evolves on its own to reflect the values and norms of the company. Thus, it is not enough to have strong ethical leaders and corporate values initially—an ethical corporate culture must be maintained through effective leadership at all times during the firm's existence. Ethical leadership also has a significant impact on ethical decision making because leaders have the power to motivate others and enforce the organization's norms, policies, and viewpoints. Ethical leaders ensure these goals are met in an ethical manner. Leaders are central to influencing an organization's corporate culture and ethical posture.
50. Discuss the differences between the five styles of conflict management and provide an example for each conflict management style.
ANSWER: A competing style of conflict management scores high on assertiveness but low on cooperativeness. Competing leaders believe in winning at any cost and measure success by how much the other side loses. Cofounder and Chairman of Dish Network Charlie Ergen has a confrontational management style, and many former employees detail how he yelled and berated them when they did something wrong. He might be considered to have a competing style of conflict management. An avoiding style of conflict management scores low on both assertiveness and cooperativeness. They are not effective because they will avoid conflict at any cost. Chairman Ken Lay and CEO Jeff Skilling of Enron appeared to adopt this style. They were aggressive in terms of managing the operations of the business, but they were ethically passive as Enron became increasingly complacent toward misconduct. An accommodating style of conflict management scores high on cooperativeness but low on assertiveness. They give in to the other side even if it means losing and sacrificing corporate values. For instance, a sales manager who knows her salespeople engage in bribery and kickbacks to sell products but allows the misconduct to continue because of their high performance has an accommodating style of conflict management. A compromising style of conflict management scores between the assertiveness and cooperativeness dimensions. They believe the best approach to resolving conflicts is for each side to give something up in order to gain something of value. Many negotiations appear to take this technique. Finally, the collaborating style of conflict management scores high on cooperativeness and assertiveness. Collaborative leaders desire to meet the needs of stakeholders. However, they also strongly adhere to organizational values and principles. An example of this would be a leader who looks for solutions that will be a win-win for both parties, even if they take longer to come up with.
51. Describe and differentiate between a compliance-based approach and an integrity-based approach to leadership. Which approach is preferred?Justify your response.
ANSWER: A compliance approach is more focused upon risks, while an integrity approach views ethics more as an opportunity. Leaders that adopt a compliance-based approach emphasize obedience to rules and regulations and set processes in place to ensure compliance. Such an approach deters illegal conduct and stresses a culture of avoidance. An integrity-based approach views ethics as an opportunity to implement core values. Leaders who adopt an integrity-based approach take responsibility for the firm's ethical culture and hold employees accountable for practicing ethical behaviors and core practices. While it might seem that an integrity-based approach is preferable, many ethical leaders use a combination of the two approaches. Without compliance to laws and basic rules and regulations the company and industry have set, an organization will not survive in the long-term.
53. Unlike transformational leaders, transactional leaders do not positively influence the corporate culture. a. True b. False
ANSWER: False
57. Paralanguage includes gestures, facial expressions, proximity, time, and dress. a. True b. False
ANSWER: False
52. Discuss the differences between groupthink and group polarization, providing examples of each.
ANSWER: Groupthink occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree. A famous example is the Challenger explosion. NASA was warned by their subcontractor that cold temperatures on the day of the launch could threaten a crucial part of the shuttle. NASA placed pressure on the subcontractor engineers to conform to their desire for a launch. The engineers finally agreed, and the result was a disaster. Group polarization refers to the fact that a group is more likely to move toward a more extreme position than the group members might have done individually. A teenager getting behind the wheel of a car, for instance, might not entertain thoughts of drag racing. However, the presence of friends and the resulting thrill and camaraderie might convince the teenager to engage in what he or she would normally consider a dangerous behavior not worth the risk. Students' answers on examples will vary.
49. Describe the RADAR model, discussing key objectives needed to be obtained for each step of the model.
ANSWER: The RADAR model is an acronym for recognizing ethical issues, avoiding misconduct whenever possible, discovering ethical risk areas, answering stakeholder concerns when an ethical issue comes to light, and recovering from an ethical misconduct disaster. The first step to prevent misconduct is recognizing the firm's ethical risk areas. Next, ethical leaders must determine what issues the firm is most likely to face so controls can be implemented to limit the opportunity for misconduct. After identifying ethical risk areas, ethical leaders should develop policies and procedures for detecting and avoiding misconduct. Ethical leaders should engage in ethics continuity planning as a way to avoid ethical misconduct disasters. Ethics continuity planning involves the identification of risk areas and the development of a response plan to deal with major issues. By imagining worst case scenarios, leaders brainstorm with others in the firm on the best way to avoid them. In the third step, managers should proactively uncover ethical risk areas that could lead to misconduct. They should engage in an assessment process to evaluate the firm's ethical weaknesses so the firm can address them. The fourth and fifth steps address what to do if an ethical misconduct disaster does occur. Answering involves responding to the discovery of an ethical dilemma through communication both internally and externally. When an ethical issue is detected, a leader should communicate with employees so everyone is aware of the issue, its importance, and the necessity for resolving it. Recovery occurs when a firm begins to rebuild its reputation. From an ethical standpoint, leaders should use this period to fix any weaknesses in the ethics program and develop improved ways of detecting misconduct. Recovery involves a four-step process: (1) take corrective action, (2) compensate stakeholders harmed by the misconduct, (3) express regret for the misconduct, and (4) reinforce the firm's reputation with positive messages.
54. Ethical leaders should take a holistic view of the firm's ethical culture. a. True b. False
ANSWER: True
55. Former Sunbeam CEO Al Dunlap, known as "Chainsaw Al," had a reputation for aggressive tactics and cutting the workforce. He most likely had a competing style of management. a. True b. False
ANSWER: True
56. Employee empowerment is an essential component of a values-based organizational culture. a. True b. False
ANSWER: True
59. Apathetic leaders are not necessarily unethical. a. True b. False
ANSWER: True
12. Ethical leadership should be based on a. holistic thinking that embraces the complex issues facing firms every day. b. a strong shareholder desire for profits. c. the opinions of a leader who defines success in terms of group gratification. d. short-term thinking that looks at the firm's health on a day-to-day basis. e. people who embrace a transactional style of leadership.
ANSWER: a
15. Which of the following is true about ethical leadership? a. It is a foundational requirement for impacting the long-term valuation of the firm. b. It is necessary for the firm to achieve profitability to satisfy shareholders. c. It maintains a short-term orientation to ethical decision making. d. It requires ethical leaders to have charismatic personalities. e. It usually avoids transactional leadership.
ANSWER: a
20. _____ is the ability or authority to guide and direct others toward a goal. a. Leadership b. Collaboration c. Democracy d. Transparency e. Pacesetting
ANSWER: a
26. A _____-based culture encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts. a. values b. profits c. consumers d. shareholders e. Stakeholders
ANSWER: a
29. The four categories of communication include all of the following except a. reporting b. small group communication c. nonverbal communication d. interpersonal communication e. Listening
ANSWER: a
3. Which of the following is not a characteristic of authentic leaders? a. They negotiate for desired levels of performance. b. They align employees behind a common vision. c. They are passionate about the firm. d. They are concerned with stakeholders' interests. e. They display principle-centered power.
ANSWER: a
34. Gossip, manipulation, playing favorites, and taking credit for another's work are all examples commonly associated with a. organizational politics b. political skills c. competitiveness d. groupthink e. ethical conflict
ANSWER: a
36. _____ leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders. a. Authentic b. Coaching c. Transformational d. Transactional e. Pacesetter
ANSWER: a
4. Which of the following types of leaders have a strong influence on coworker support and building an ethical culture through increasing employee commitment and fostering motivation? a. Transformational leaders b. Transactional leaders c. Coercive leaders d. Pacesetting leaders e. Authoritative leaders
ANSWER: a
40. These leaders produce employees who achieve a negotiated level of performance, including compliance with ethical and legal standards. a. Transactional b. Coercive c. Transformational d. Compromising e. Authentic
ANSWER: a
43. This step of the RADAR model involves responding to the discovery of an ethical dilemma through communication both internally and externally. a. Answer b. Recover c. Recognize d. Avoid e. Detect
ANSWER: a
58. Which of the following is NOT something ethical leaders do? a. Wait for ethical problems to arise b. Identify potential risks c. Identify emerging risks d. Model the organization's values e. Develop processes to deal with risk
ANSWER: a
21. These leaders are characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoy flouting rules. a. Unethical leaders b. Psychopathic leaders c. Apathetic leaders d. Pacesetting leaders e. Charismatic leaders
ANSWER: b
27. _____ claims that leaders form unique relationships with followers through social interactions. a. Leader-follower congruence b. Leader-exchange theory c. Normative myopia d. Emotional intelligence theory e. Conflict management
ANSWER: b
32. This occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company. a. Groupthink b. Leader-follower congruence c. Group polarization d. Values-based culture e. Ethical leadership
ANSWER: b
35. _____ can be used to promote organizational goals and help rather than hinder other employees. a. Office politics b. Political skills c. Ethical conflict d. Democracy e. Coercion
ANSWER: b
37. Which one of the following is not true about feedback? a. Most companies recognize the need for organizational leaders to provide feedback to employees. b. Most companies recognize the need for organizational leaders to get feedback from their employees. c. Feedback can occur through informal methods like a simple conversation or through more formal systems such as employee performance evaluations. d. Employee feedback can be generated in many different ways, including interviews, anonymous surveys, ethical audits, and websites. e. Negative feedback is important to inform employees of weaknesses and provide constructive ways for improving them.
ANSWER: b
44. Which two steps of the RADAR model occur when a firm is faced with an ethical conflict or dilemma? a. Recognize & Avoid b. Answer & Recover c. Detect & Avoid d. Answer & Detect e. Recover and Detect
ANSWER: b
11. The _____ of an organization can influence the acceptance of and adherence to organizational norms and values. a. nation of origin b. locus of control c. leadership style d. production methods e. Opportunity
ANSWER: c
16. Which of the following attributes are necessary for ethical communication? a. Stakeholder compassion and reporting b. Proactivity and transparency c. Transparency and reporting d. Passion and dedication e. Passion and collaboration
ANSWER: c
17. Which type of leader relies on participation and teamwork to reach collaborative decisions? a. Transformational b. Coercive c. Democratic d. Coaching e. Pacesetting
ANSWER: c
19. Group polarization a. occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree. b. occurs when two or more groups interact with one another on an informal basis. c. is when a group is more likely to move toward a more extreme position than members might have done individually. d. sets up a number of independent groups to work on opposing sides of an issue. e. assigns each team member as a "critical evaluator" with the responsibility to express opinions and objections freely.
ANSWER: c
2. Which of the following types of leaders attempts to create employee satisfaction through bartering or negotiating for desired behaviors or level of performance? a. Pacesetting leaders b. Coercive leaders c. Transactional leaders d. Transformational leaders e. Affiliative leaders
ANSWER: c
22. This occurs when there are two or more positions on an ethical decision. a. Ethical leadership b. Competing leadership c. Ethical conflicts d. Empowerment e. Interpersonal communication
ANSWER: c
24. Leaders having an accommodating conflict management style are a. highly assertive and not very cooperative. b. not effective because they avoid conflict at any costs - even if it leads to misconduct. c. highly cooperative but non-assertive. d. in between the assertiveness and cooperativeness dimensions. e. cooperative and assertive.
ANSWER: c
30. _____ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree. a. Group polarization b. Leader-follower congruence c. Groupthink d. Normative myopia e. Conflict
ANSWER: c
38. _____ leaders communicate a sense of mission, stimulate new ways of thinking, and enhance as well as generate new learning experiences. a. Authentic b. Democratic c. Transformational d. Transactional e. Cooperative
ANSWER: c
42. From an ethical standpoint, leaders should take time during this step of the RADAR model to fix any weaknesses in the ethics program and develop improved ways of detecting misconduct. a. Detect b. Answer c. Recovery d. Avoid e. Recognize
ANSWER: c
7. Sherry's leadership style often creates a negative working climate because of the high standards she sets. Sherry is most likely a(n) _____ leader. a. autocratic b. democratic c. pacesetting d. empathetic e. Coercive
ANSWER: c
9. Which of the following is one of the seven habits of strong ethical leaders? a. Adequate compensation b. Good employees c. The passion to do right d. Charisma e. A great education
ANSWER: c
1. The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-control. a. democratic b. coaching c. affiliative d. coercive e. Pacesetting
ANSWER: d
13. A fundamental problem in traditional personal character development is that specific vales are used to teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be respected. A solution is a. to teach more general values to develop a set of basic beliefs. b. to ignore moral philosophies and to train solely based on the organization's code of conduct. c. to teach completely different values and skills in different cultural environments. d. to teach individuals intellectual skills that address the complexities of ethical issues in business. e. to teach individuals the literary canons of the major philosophers from both western and eastern religions.
ANSWER: d
23. Leaders having a(n) _____ conflict management style are highly assertive and not very cooperative. a. accommodating b. avoiding c. collaborating d. competing e. Compromising
ANSWER: d
28. _____ is a two-way process in which the communicator communicates with superiors and subordinates. a. Cooperation b. Transparency c. Leader-follower congruence d. Reporting e. Collaboration
ANSWER: d
33. _____ provide(s) important guidelines for employees on how to act in different situations. a. Leader-exchange theory b. Small group communication c. Interpersonal communication d. Codes of ethics e. Leader-follower congruence
ANSWER: d
39. The most effective leaders possess the ability to manage themselves and their relationships with others effectively, a skill known as a. conflict management. b. group theory. c. collaboration. d. emotional intelligence. e. leader-follower theory.
ANSWER: d
41. The acronym RADAR stands for a. Recognize, Answer, Discourage, Avoid, and Recover b. Recognize, Answer, Detect, Avoid, and Recover c. Recover, Answer, Discourage, Avoid, and Recognize d. Recognize, Avoid, Discover, Answer, and Recover e. Recover, Avoid, Detect, Answer, and Recognize
ANSWER: d
45. Many managers are reluctant to engage in this step of the RADAR model because they fear doing so will uncover questionable conduct that could put the firm in an unfavorable light. a. Avoid b. Recover c. Answer d. Detect e. Recognize
ANSWER: d
47. How can ethical leaders mitigate power differences with workers? a. Using political skills b. Through workplace politics c. Implementing codes of conduct d. Through frequent communication e. Conducting ethics audits
ANSWER: d
10. The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative. a. authoritative b. affiliative c. democratic d. coaching e. Pacesetting
ANSWER: e
14. Strong ethical leaders have a passion for all of the following except to a. do the right thing. b. be proactive c. consider stakeholder interests d. be role models for the organization and its employees. e. satisfy shareholders before other stakeholder groups.
ANSWER: e
18. What is not a necessity for strong ethical leaders to make good decisions? a. Pertinent information b. Courage c. Experience making the right decisions d. Knowledge e. The ability to coerce subordinates
ANSWER: e
25. Leaders with a(n) _____ conflict management style desire to meet the needs of stakeholders and strongly adhere to organizational values and principles. a. avoiding b. competing c. compromising d. accommodating e. Collaborating
ANSWER: e
31. When managers overlook or stifle the importance of core values in their business decisions, this is known as a. Leader-follower congruence b. Groupthink c. Institutionalization d. Group polarization e. Normative myopia
ANSWER: e
46. After massive recalls due to a floor mat problem, Toyota released feel-good commercials and developed better quality standards to regain its quality image. What stage in RADAR was Toyota engaging in? a. Recognize b. Avoid c. Discover d. Answer e. Recover
ANSWER: e
5. A coaching leader builds a positive climate by a. valuing people, their emotions, and their needs. b. focusing on communication across all layers of the organization. c. inspiring employees to follow their departmental leaders without question. d. focusing on achievement, initiative, and self-control. e. developing skills for success, delegating responsibility, and issuing challenging assignments.
ANSWER: e
6. Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking? a. Authoritative leadership b. Coaching leadership c. Pacesetting leadership d. Coercive leadership e. Affiliative leadership
ANSWER: e
8. _____ are a primary influence on employee's ethical behavior because they are role models for the organizations' values. a. Friends b. Parents c. Peers d. Coworkers e. Leaders
ANSWER: e
