Organizational Behavior (Leadership) Answer Key Part 3

48) According to the LMX theory, a leader implicitly categorizes followers as "in" or "out" ________. A) after careful performance analysis B) on a temporary basis C) early in the interaction D) because of political pressure E) only after several months of working together Answer: C Explanation: The LMX theory proposes that early in the history of the interaction between a leader and a given follower, the leader implicitly categorizes the follower as an "in" or an "out," and that relationship is relatively stable over time. 49) In her first few weeks at the marketing division of Rolland Retails, Judith Cox realized that Joshua, Doug, and Carl were closer to her manager, Eric Scott, than the other five team members. Eric, Joshua, Doug, and Carl came to work at the same time, were seen together at the cafeteria, and stayed late and worked when the need arose. In contrast to them, the other five team members did the routine jobs assigned to them, and their interactions lacked the understanding and camaraderie that Eric shared with the others. Joshua, Doug, and Carl make up Eric's ________. A) out-group B) reference group C) nominal group D) ingroup E) peripheral group Answer: D Explanation: Leader-member exchange (LMX) theory argues that, because of time pressures, leaders establish a special relationship with a small group of their followers. These individuals make up the ingroup; they are trusted, get a disproportionate amount of the leader's attention, and are more likely to receive special privileges. Other followers fall into the out-group. 50) In her first few weeks at the marketing division of Rolland Retails, Judith Cox realized that Joshua, Doug, and Carl were closer to her manager, Eric Scott, than the other five team members. Eric, Joshua, Doug, and Carl came to work at the same time, were seen together at the cafeteria, and stayed late and worked when the need arose. While Judith was in training, she received very good feedback from Eric, and as she transitioned to the floor, she felt that Eric was giving her interesting projects, allowing her more freedom, and seeking her opinion frequently. The information provided in the scenario supports the prediction that ________. A) Judith will develop low trust propensity toward Eric B) Joshua, Doug, and Carl will display low trust propensity in Judith C) Eric's ingroup will remain a reference group for Judith permanently D) Judith will become a part of Eric's ingroup in the marketing division E) Judith will have lower levels of identification-based trust with Eric when compared to other trainees Answer: D Explanation: Leader-member exchange (LMX) theory argues that, because of time pressures, leaders establish a special relationship with a small group of their followers. These individuals make up the ingroup, and they are trusted, get a disproportionate amount of the leader's attention, and are more likely to receive special privileges. Other followers fall into the out-group. 51) Which theory of leadership proposes that followers attribute heroic or extraordinary leadership abilities when they observe certain behaviors? A) situational leadership theory B) path-goal leadership theory C) transactional leadership theory D) behavioral leadership theory E) charismatic leadership theory Answer: E Explanation: According to House's charismatic leadership theory, followers attribute heroic or extraordinary leadership abilities when they observe certain behaviors. A number of studies have attempted to identify the characteristics of charismatic leaders: they have a vision, they are willing to take personal risks to achieve that vision, they are sensitive to follower needs, and they exhibit extraordinary behaviors. 52) According to evidence, what is the first step a charismatic leader takes to influence followers? A) by developing an aura of charisma B) engaging in emotion-inducing and often unconventional behavior C) setting an example for followers through actions and words D) articulating an appealing vision E) communicating high performance expectations Answer: D Explanation: Evidence suggests that charismatic leaders use a process that begins with articulating an appealing vision, a long-term strategy for attaining a goal by linking the present with a better future for the organization. Desirable visions fit the times and circumstances and reflect the uniqueness of the organization. 53) Charismatic leaders ________. A) engage in traditional behaviors that follow norms B) focus on their own responsibilities largely ignoring the needs and feelings of employees C) avoid personal risk D) propose a vision of the future that is better than the status quo E) ensure their own position as leader even if it means sacrificing others Answer: D Explanation: Key characteristics of charismatic leaders include vision and articulation (proposing a future that is better than the status quo); personal risk (willing to take on high personal risk); sensitivity to follower needs (perceptive of others' abilities and responsive to their needs and feelings); unconventional behavior (engages in behaviors that are perceived as novel and counter to the norm). 54) Leaders who function primarily by clarifying role and task requirements to accomplish established goals exhibit a(n) ________ style of leadership. A) transformational B) transactional C) charismatic D) laissez-faire E) employee-oriented Answer: B Explanation: Recent studies, including the Ohio State Studies, Fiedler's model, and path-goal theory, have focused on the differences between transformational leaders and transactional leaders. In contrast to transformational leaders, who inspire their followers to transcend their self-interests for the good of the organization, transactional leaders encourage their followers to achieve goals by defining specific goals and task requirements. 55) A transactional leader is likely to ________. A) reward employees for the work that they have done, thus recognizing accomplishments B) help followers trust the leader and develop a loyalty toward the common vision C) stimulate others in the organization to become thinkers of what the organization is all about D) pay attention to the emotional needs of others and consider individual differences E) avoid authoritarian, command, and control behaviors when dealing with employees Answer: A Explanation: A transactional leader is likely to reward employees for the work that they have done, thus recognizing accomplishments. 56) Which of the following scenarios reflects a transactional approach to leadership? A) Samuel Perez has been running a small automobile service agency with a set of employees that he hired and trained over a decade ago. Though the business is mediocre and profit margins are not substantial, the employees work well as a team because each of them treats the other as equal, just like Samuel himself does. B) Carol Turner began V Care, a non-profit organization, with the purpose of battling various forms of abuse. As the organization grew, she took care to hire employees who felt the same kind of sensitivity she felt for victims of abuse. Today, she openly proclaims that the organization that she started is successful because every single employee shares and understands what the organization is aiming for. C) When new projects come, it is a time of excitement for the content production team of Impact, an advertising agency. Lori Wood, the department head, begins a project meeting by having her whole team envision what the final product of this campaign must aim at. She then sets progressively higher standards for the team and clarifies what each member of the team stands to gain if the project is a success. In allocating roles and tasks, she often incorporates the needs and preferences of her team members. D) Wayne Torres believes that setting targets, monitoring employee performance, and correcting defaulting employees are his tried and tested ways to accomplish tasks. He rewards employees who do well and match his predetermined expectations and recognizes accomplishments that he values. His team, however, has not grown substantially and seems to be at a functional status quo. E) Glenn Cruzz works at Leverage as a senior consultant. She ensures that her team of consultants has a framework of flexible tools and skills to help clients who come their way with diversity and inclusion issues. Through audits, research, and workshops, her team is encouraged to come up with unconventional solutions that help clients establish and leverage its employee diversity. Answer: B Explanation: Transactional leaders set goals for their employees and define roles and expectations. Unlike transformational leaders, however, transactional leaders are unlikely to motivate their employees to exceed expectations or go beyond the call of duty. 57) ________ leaders inspire followers to transcend their self-interests for the good of the organization and can have an extraordinary effect on their followers. A) Transformational B) Transactional C) Task-oriented D) Laissez-faire E) Production-oriented Answer: A Explanation: Transformational leaders can have an extraordinary effect on their followers, inspiring them toward selfless goals that benefit the larger organization. These types of leaders inspire their followers by paying attention to their concerns, helping them rethink old problems in new ways, and encouraging them to achieve goals as a group. 58) Transformational leaders enhance performance of employees by ________. A) restricting creativity among employees B) focusing on short-term goals for employees C) instilling pride in employees D) establishing goals, roles, and requirements E) abdicating all responsibility to employees Answer: C Explanation: Characteristics of transactional leaders: contingent reward, management by exception (active), management by exception (passive), and laissez-faire. Characteristics of transformational leaders: idealized influence; inspirational motivation, intellectual stimulation, individualized considerations. 59) In terms of the full range of leadership models, which leadership behavior is the least effective? A) management by exception (active) B) contingent reward C) management by exception (passive) D) individualized consideration E) laissez-faire Answer: E Explanation: According to the full range of leadership models, laissez-faire is the most passive and therefore least effective of leader behaviors. Management by exception–active or passive–is slightly better than laissez-faire. 60) Which of the following leadership behaviors is likely to differentiate between transactional and transformational leaders? A) management by exception (active and passive) B) contingent reward C) individualized consideration D) micromanagement E) laissez-faire Answer: C Explanation: According to the full range of leadership models, leadership behaviors including laissez-faire, management by exception (active or passive), and contingent reward will not get employees to go above and beyond the call of duty. Only with the four styles of transformational leadership–individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence–are leaders able to motivate followers to perform above expectations and transcend their self-interest for the sake of the organization. 61) In terms of the full range of leadership models, which leadership behavior represents the most active and effective approach for leaders? A) contingent reward B) idealized influence C) management by exception (active) D) individualized consideration E) laissez-faire Answer: B Explanation: According to the full range of leadership models, idealized influence, wherein a leader provides vision, establishes a sense of mission, and instills pride is the most active and effective leadership behavior. By doing so, the leader gains respect and trust. 62) The leader-member exchange (LMX) theory proposes that the leader implicitly categorizes the follower as belonging to his ingroup or out group after a detailed analysis of his or her performance over a prolonged period of time. Answer: FALSE Explanation: The theory proposes that early in the history of the interaction between a leader and a given follower, the leader implicitly categorizes the follower as belonging to the ingroup or outgroup, and this relationship is relatively stable over time. 63) An individual who lacks self-esteem and questions his or her self-worth is more likely to absorb a leader's direction rather than establish and individual way of leading or thinking. Answer: TRUE Explanation: An individual who lacks self-esteem and questions his or her self-worth is more likely to absorb a leader's direction rather than establish and individual way of leading or thinking. For these people the situation may matter much less than the charismatic qualities of the leader. 64) The best leaders are transformational, not transactional. Answer: FALSE Explanation: The best leaders are transactional and transformational. 65) Transactional leaders guide their followers toward established goals by clarifying role and task requirements. Answer: TRUE Explanation: Transactional leaders guide their followers toward established goals by clarifying role and task requirements. 66) Intellectual stimulation and individualized consideration are likely to be seen in the management by exception (active) style of leadership. Answer: FALSE Explanation: Intellectual stimulation and individualized consideration are likely to be seen in the transformational style of leadership, while management by exception (active or passive) is a transactional style of leadership. 67) Transformational leadership has a greater impact on the bottom line in smaller, privately held firms than in more complex organizations. Answer: TRUE Explanation: Transformational leadership has a greater impact on the bottom line in smaller, privately held firms than in more complex organizations. The personal nature of transformational leadership may be most effective when leaders can directly interact with the workforce and make decisions than when they report to an external board of directors or deal with a complex bureaucratic structure. 68) The HR department at Basic Elements, a software development firm, has begun testing employee personality and preferences to reorganize their teams such that team members and leaders are matched. They believe that this will enable them to ensure smooth functioning and greater cohesion. As a part of this test, employees were given the least preferred co-worker questionnaire. The employees were asked to think of all the co-workers they had in the past and describe the one they least enjoyed working with by rating that person on a scale of 1 to 8 for each of 16 sets of contrasting adjectives. Rachel's LPC score was high, while Victor's was low. Many employees like Ashley had LPC scores that were moderate. Interpret and compare the results of Rachel, Victor, and Ashley. Answer: The fact that Rachel's LPC score was high means that she described the person she was least able to work with in favorable terms. Victor's low LPC score reflects that he rated his least preferred co-worker in unfavorable terms. Thus, we can say that Rachel is relationship-oriented, while Victor is task-oriented. Ashley's LPC score, being in the middle range, cannot be interpreted as her preference falls beyond the range of the predictions of Fiedler contingency model. 69) What are the key characteristics of charismatic leaders? Answer: A charismatic leader is characterized by: a) vision and articulation: having an idealized goal and being able to clarify its importance b) personal risk: willingness to take personal risks, incur high costs, and make sacrifices c) sensitivity to follower needs: recognizing and responding to others' abilities, needs, and feelings d) unconventional behavior: engaging in behaviors that are novel