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Chapter 12—LEADING IN A DYNAMIC ENVIRONMENT
TRUE/FALSE
1. Typically, organizing involves creating a vision of the future, devising a strategy for achieving that
vision, and communicating the vision so that everyone understands and believes in it.
ANS: F DIF: E OBJ: 1
2. Leadership entails building a culture that will inspire and motivate people to overcome obstacles.
ANS: T DIF: E OBJ: 1
3. The general consensus is that effective leaders use a task rather than a relations orientation.
4. Underlying the trait focus is the assumption that some people are endowed with certain physical
characteristics, aspects of personality, and attitudes.
5. Traits are a sufficient means for managers to predict the leadership abilities of their employees.
6. Possession of the listed qualities of effective leaders ensures that you will become a leader.
7. Trait research was successful in predicting leadership success consistently.
8. Despite the evidence that leaders tend to differ from nonleaders with respect to certain traits, traits alone
cannot predict leadership ability.
9. Setting goals, giving directions, setting standards, supervising worker performance, and applauding new
ideas are behaviors associated with a relations orientation.
10. Underlying the position power approach to leadership is the assumption that some people are "natural
leaders" and are thus endowed with certain traits not possessed by other individuals.
11. Referent power means that a leader's effectiveness is based on task-orientation such as setting goals,
giving directions, setting standards, supervising worker performance, and applauding new ideas.
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12. Authority is the right to get something done and is officially sanctioned; power is the ability to get
results.
13. Position power is derived from the opportunities inherent in a person's position within an organization.
14. Personal power is derived from the opportunities inherent in a person's position in an organization.
15. Personal power is derived from the interpersonal relationship between a leader and his or her followers.
16. Position power includes legitimate power, referent power, coercive power, and information power.
17. CEOs, managers, security personnel, and other have legitimate power simply because of the formal
positions they hold.
18. Power stemming from formal authority based on the particular position a person holds in an organization
is commonly referred to as coercive power.
19. The power to discipline, punish, and withhold rewards is referred to as coercive power.
20. Personal power includes legitimate power, coercive power, reward power, information power, and
expert power.
21. Personal power includes expert power and referent power.
22. The ability to influence based on personal liking, charisma, and reputation is referred to as reward
power.
23. Computer specialists often have substantial expert power in organizations because they have technical
knowledge that others need.
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24. The giving away and sharing of power with those who need it to perform their job functions is referred to
as total quality management.
25. Expert power is the ability to influence another person because of knowledge and competence.
26. Referent power is the ability to influence another person because of knowledge and competence.
27. Personalized power orientation is associated with a strong desire for esteem and status.
28. Personalized power is often used for the benefit of others to make them feel strong and responsible.
29. Individuals with a personalized power orientation often act impulsively.
30. Individuals with a socialized power orientation use their power for the benefit of others, to make them
feel stronger and more responsible.
31. Self-leadership is often referred to as followership.
32. Self-leaders have a willingness to take the initiative and deal with problems yet lack an understanding of
the organization and their contributions to it.
33. Self-leaders have the capacity to motivate themselves and stay focused on tasks.
34. Leadership substitutes are variables such as individual, task, and organizational characteristics that tend
to outweigh the leader's ability to affect subordinate satisfaction and performance.
35. According to the leadership substitutes paradigm, leadership substitutes make leadership behavior
irrelevant or redundant.
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36. A neutralizer is a condition that counteracts leader behavior and/or prevents the leader from having an
effect on a follower or a specific situation.
37. The situational leadership model examines the interaction between leadership behavior, the situation,
and the leader's readiness.
38. The participating style of leadership is typified by a leader who provides the subordinates with an
emphasis on specifics of the task.
39. With the telling style of leadership, the leader provides specific instructions and closely supervises
performance.
40. Empowerment is designed to increase the power and autonomy of all employees in an organization.
41. Empowerment of employees can also be a powerful motivational tool.
42. Empowerment is often described as delegation or devolution of power.
43. Transformational leadership increases follower motivation by activating the lower needs of followers.
44. Transformational leadership refers to the leader’s ability to influence employees to achieve more than
was originally expected or thought possible.
45. One characteristic of transformational leadership is the ability to help subordinates to think beyond their
own self-interest to the needs of the work teams and the organization.
46. Transformational leaders are willing and able to accept the status quo.
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47. Emotional intelligence in the workplace means simply controlling your temper in highly charged
emotional situations and getting along with people.
48. A recent study found that sales people with a higher level of emotional intelligence produced twice the
revenue of so-called “average” performers.
49. The personal competence component of emotional intelligence refers to the skills of working effectively
with others.
50. The characteristics of the social competence component of emotional intelligence include the ability to
understand what others are feeling.
51. In comparing women and men as leaders, women tend to use leadership behaviors that are more
directive. Men tend to use more transformational behavior.
52. In comparing women and men as leaders, women tend to use behaviors that are more transformational.
Men tend to use behaviors that are more directive.
53. Women are better at expressing feelings and accessing their emotions, while male leaders showed higher
levels of resilience and thoroughness than women leaders.
54. Women leaders feel they must struggle harder than men to succeed.
MULTIPLE CHOICE
1. The CEO of Wal-Mart spends the majority of his work time determining his company's objectives,
motivating behavior in pursuit of these objectives, and influencing group maintenance and culture. That
means, he spends the majority of his time engaged in
a. control.
b. organizing.
c. leadership.
d. supervision.
e. directing.
ANS: C DIF: E OBJ: 1 NOT: Application
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2. In addition to creating, devising the strategy for, and communicating the vision of the future of her
company, the founder also believes that it is her obligation to provide an environment that will inspire
and motivate her employees to overcome obstacles. This belief best represents which of the following
concepts?
a. leadership
b. controlling
c. planning
d. directing
e. organizing
ANS: A DIF: E OBJ: 1 NOT: Application
3. The assumption that some people are natural leaders, endowed with certain qualities not possessed by
others, is contained within
a. the behavioral approach.
b. the trait approach.
c. contingency models.
d. expert perspective.
e. initiating structure.
ANS: B DIF: E OBJ: 2 NOT: Recall
4. The first day at a new job, ask your supervisor, "What is your view of leadership?" Your supervisor
answers, "I believe that some people are natural leaders and are endowed with certain traits not
possessed by other individuals." Based on this answer, you make a mental note that you supervisor
subscribes to the __________ approach to understanding leadership.
a. trait
b. psychological
c. transformational
d. contingency
e. behavioral
5. Evidence suggests that leaders and nonleaders differ on several traits. According to our textbook, leaders
possess greater levels of all of the following attributes except one. This one exception is
a. drive.
b. motivation.
c. honesty and integrity.
d. conceptual ability.
e. physical strength.
ANS: E DIF: E OBJ: 2 NOT: Recall
6. The __________ approach to leadership examines what effective leaders do rather than what effective
leaders are.
a. task
b. transformational
c. introspective
d. behavioral
e. contingency
ANS: D DIF: E OBJ: 2 NOT: Recall
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7. __________ models of leadership include those that define a leader's effectiveness based on
task-orientation such as setting performance goals, giving directions, setting standards, providing
resources, and supervising worker performance.
a. Trait
b. Objective
c. Subjective
d. Referent Power
e. Behavioral
ANS: E DIF: M OBJ: 2 NOT: Recall
8. Megan Andrews is the CEO of a chain of Italian restaurants in the Pacific Northwest. One thing that
distinguishes Megan in her leadership style is a capacity to show empathy for others, establish trusting
relationships, and provide workers the opportunity to participate in decision making. Megan is an
example of a leader who has a __________ orientation.
a. relations
b. neutralizer
c. task
d. labor
e. responsibility
ANS: A DIF: M OBJ: 2 NOT: Application
9. The general consensus is that effective leaders use

a. a task orientation.
b. a relations orientation.
c. a responsibility orientation.
d. a combination of behavioral orientations.
e. a labor orientation.
10. Setting performance goals, planning and scheduling work, coordinating activities, and giving directions
are examples of which of the following?
a. task orientation
b. objective orientation
c. subjective orientation
d. contingency orientation
e. relations orientation
ANS: A DIF: E OBJ: 2 NOT: Recall
11. Jack Smith repeatedly set performance goals for his subordinates and critically supervised their work
performance. Jack went so far as to plan and schedule their work days. Jack's behavior is evidence of
which of the following?
a. task orientation.
b. readiness orientation.
c. subjective orientation.
d. contingency orientation.
e. relations orientation.
12. Behavior that shows empathy for subordinates, support for their needs, and trust relationships with them
is evidence of
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a. task orientation.
b. objective orientation.
c. subjective orientation.
d. situational orientation.
e. relations orientation.
13. Calvin is typically very responsive to his boss's requests because he knows that his boss has the power to
grant him tangible benefits such as a pay raise, a promotion, or a better work schedule. In this example,
Calvin is responding to his boss's __________ power.
a. reward
b. information
c. expert
d. coercive
e. legitimate
14. Richard McCormick, the CEO of his own company, is able to provide high performing employees
tangible benefits such as bonuses, salary increases, and promotions. The ability to distribute these types
of benefits gives Mr. McCormick __________ power.
a. legitimate
b. coercive
c. expert
d. reward
e. referent
ANS: D DIF: M OBJ: 3 NOT: Application
15. The two forms of personal power are

a. legitimate and information.
b. expert and referent.
c. expert and reward.
d. referent and legitimate.
e. reward and coercive.
16. Adam Smith is personal assistant to Stan Churchill, the President of North Sea Shipping. Because of his
position, Mr. Smith has access to a tremendous amount of information that flows in and out of the
president's office. Mr. Smith's unique access provides him __________ power.
a. information
b. coercive
c. referent
d. legitimate
e. expert
17. Hal Williams is a computer specialist who is known throughout his firm for his ability to troubleshoot
computer problems. As a result of his skills in this area, Hal has become a very influential person in his
firm. Based on this example, we can conclude that Hal has acquired __________ power.
a. reward
b. expert
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c. information
d. coercive
e. legitimate
ANS: B DIF: M OBJ: 3 NOT: Application
18. Cycle Sports is a chain of motorcycle dealerships in Ohio and Indiana. During the past three years, the
company was forced to close twelve dealerships and almost went bankrupt as a result of declining sales.
Mr. Rich Berry, who is a marketing specialist, was hired by the company five months ago and has made
tremendous progress in turning things around. As a result of his marketing savvy, Mr. Berry has quickly
become a very influence person in the firm. Mr. Berry has become influential because of __________
power.
a. referent
b. expert
c. reward
d. information
e. legitimate
19. The four forms of position power are

a. legitimate, coercive, reward, and information.
b. information, expert, referent, and coercive.
c. legitimate, coercive, referent, and expert.
d. legitimate, reward, coercive, and referent.
e. coercive, reward, information, and expert.
20. The ability to influence based on personal liking, charisma, and reputation is called
a. referent power.
b. expert power.
c. coercive power.
d. reward power.
e. legitimate power.
21. The ability to marshal human, informational, or material resources to get something done is called
a. prerogative.
b. power.
c. management.
d. authoritativeness.
e. control.
22. The CEO of General Signal Corporation has the ability to bring together human, informational, and
material resources to get something done. This ability, in the context of a discussion on leadership, is
referred to as
a. control.
b. authoritativeness.
c. management.
d. prerogative.
e. power.
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ANS: E DIF: E OBJ: 3 NOT: Application
23. Kevin Rollins is the newly appointed manager of R&D at Trident Software. In the context of a
discussion of leadership, in order to get the human, informational, and material resources necessary to
effectively run his department, Kevin needs
a. prestige.
b. competence.
c. ability.
d. personality.
e. power.
24. __________ is the right to get something done and is officially sanctioned; __________ is the ability to
get results.
a. Authority, personality
b. Authority, power
c. Ability, personality
d. Competence, skill
e. Power, talent
25. Which of the following best describes who can attain power in an organization?
a. top management
b. top management and the board of directors
c. anyone with the title "manager" or "supervisor"
d. employees who bring resources into the firm
e. anyone, regardless of rank
26. The type of power that is derived from opportunities inherent in a person's position in an organization is
referred to as
a. personal power.
b. legitimate power.
c. organizational power.
d. referent power.
e. follower-centered power.
27. Which of the following is not a form of position power?

a. information power
b. expert power
c. legitimate power
d. coercive power
e. reward power
28. The type of power that is derived from the interpersonal relationship between a leader and his or her
followers is called
a. hierarchical power.
b. position power.
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c. supervisory power.
d. institutional power.
e. personal power.
29. Power stemming from formal authority based on the position that an individual holds in an organization
is referred to as __________ power.
a. expert
b. legitimate
c. reward
d. coercive
e. referent
30. Alan Wool, the CEO of Circuit Center, has power within his organization simply because of the position
he holds. This type of power is referred to as __________ power.
a. expert
b. information
c. reward
d. coercive
e. legitimate
31. CEOs, managers, security personnel, and others have __________ power simply because of the formal
positions they hold.
a. expert
b. information
c. legitimate
d. coercive
e. organizational
ANS: C DIF: M OBJ: 3 NOT: Recall
32. Most people grant authority to the president of the company they work for based on the perception that
the president has a lot of responsibility and an obligation for the effectiveness of the firm. The power that
stems from this type of authority is referred to as __________ power.
a. referent
b. expert
c. reward
d. information
e. legitimate
33. Air traffic controllers are able to give instructions to commercial pilots and have their instructions
obeyed immediately because pilots recognize the responsibilities that controllers have. In this
illustration, the authority that pilots grant to air traffic controllers is referred to as __________ power.
a. information
b. coercive
c. reward
d. expert
e. legitimate
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ANS: E DIF: D OBJ: 3 NOT: Application
34. The admiral in charge of the aircraft carrier U.S.S. Harry Truman, has power simply because of the
formal position he holds. This is an example of __________ power.
a. expert
b. coercive
c. legitimate
d. reward
e. referent
ANS: C DIF: E OBJ: 3 NOT: Recall
35. The power to discipline, punish, and withhold rewards is referred to as

a. expert power.
b. information power.
c. reward power.
d. coercive power.
e. legitimate power.
36. Power derived from control over tangible benefits such as a promotion, a better job, a better work
schedule, or an increased expense account is referred to as __________ power.
a. expert
b. information
c. reward
d. coercive
e. legitimate
37. For reward power to be influential, an employee must

a. have above average cognitive abilities.
b. have an internal locus of control.
c. admire and respect the person distributing the rewards.
d. also be influenced by other sources of power.
e. value the reward.
38. NBA star Michael Jordan possesses tremendous __________ power, which is the ability to influence
based on personal liking, charisma, and reputation.
a. expert
b. information
c. reward
d. coercive
e. referent
39. Michael Penn is a very likable person, has tremendous charisma, and is well respected in his firm. These
attributes give Michael the ability to get things done where other people would fail because Michael
possesses __________ power.
a. referent
b. expert
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c. information
d. reward
e. legitimate
40. Leaders who have a strong need for esteem and status can be referred to as having
a. referent power orientation.
b. coercive power orientation.
c. socialized power orientation.
d. personalized power orientation.
e. position power orientation.
41.
In an attempt to make her subordinates feel strong, confident, and responsible for their jobs, a manager
consistently took advice from her subordinates and consistently reassured them that they were extremely
competent. This manager would be described as having a
a. referent power orientation.
b. coercive power orientation.
c. socialized power orientation.
d. personalized power orientation.
e. position power orientation.
42. Which of the following is sometimes referred to as followership?

a. transformational leadership
b. self-leadership
c. trait leadership
d. situational leadership
e. task orientation leadership
43. Which of the following is not a trait of managers with a self-leadership focus?
a. the capacity to motivate themselves and stay focused on tasks
b. a willingness to take the initiative to deal with problems
c. integrity that demands loyalty to the organization
d. a willingness to accept on faith the demands of management without understanding the
tasks role in the organization
e. versatility and the ability to adapt to a changing environment
ANS: D DIF: M OBJ: 4 NOT: Recall
44. Variables that tend to outweigh a leader's ability to affect subordinate satisfaction and performance are
called
a. leadership exchanges.
b. referent power.
c. sense of community..
d. situational leaderships.
e. leadership substitutes.
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45. The premise of the __________ model is that leader behaviors are irrelevant.
a. path-goal
b. leadership substitutes
c. Fiedler's LPC Model
d. transactional leadership
e. transformational leadership
46. __________ are variables such as individual, task, and organizational characteristics that tend to
outweigh the leader's ability to affect subordinate satisfaction and performance.
a. Leadership exchanges
b. Leadership transformations
c. Leadership substitutes
d. Leadership goals
e. Leadership contingencies
47. Peter Lynch is employed by Dell Computer. Although Peter has several leaders, his ability to perform
stems primarily from his experience, training, ability, and professional orientation, making the behaviors
of his leaders almost irrelevant. Peter's situation can be best explained by the __________ model of
leadership.
a. leadership substitutes
b. leadership contingencies
c. transactional
d. path-goal
e. transformational
48. A/An __________ is a condition that counteracts leader behavior and/or prevents the leader from having
an affect on a follower or a specific situation.
a. behavior focus
b. reaction
c. neutralizer
d. enabler
e. pacifier
49. The __________ states that effective leader behavior depends on the match between the readiness of the
subordinate and the behavior of the leader.
a. Leadership Substitutes Model
b. Situational Leadership Model
c. Trait Theory Model
d. Neutralizer Model
e. Position Power Model
50. According to the situational leadership model, __________ is the extent to which a subordinate
possesses the ability and willingness to complete a specific task.
a. task behavior
b. predisposition
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c. readiness
d. reluctance
e. ambivalence
51. In the context of situational leadership model, a leader using the __________ style provides specific
instructions and closely supervises performance.
a. striking
b. conspicuous
c. pretentious
d. leading
e. telling
52. Which model explains how to match leader behavior and readiness for the appropriate
behavior-readiness match?
a. Empowerment Model
b. Situational Leadership Model
c. Delegating Style Model
d. Leadership Substitutes Model
e. Quality of Work Life Model
53. The __________ style of leadership suggests lowering both task or relations behaviors.
a. telling
b. delegating
c. selling
d. informing
e. participating
ANS: B DIF: M OBJ: 6 NOT: Recall
54. William Short, a production manager at Steward Mills, believes in giving consideration to the needs of
subordinates, displaying concern for their welfare, and encouraging two-way communications. This
form of leader behavior is called a/an __________ style of leadership.
a. telling
b. delegating
c. selling
d. informing
e. participating
55. In a/an __________ style of leadership, the leader explains decisions and provides opportunities for
clarification.
a. telling
b. delegating
c. selling
d. informing
e. participating
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56. At the Avondale Shipyards, the managers explain to the welders, electricians, and general laborers
exactly what they want to achieve each day and the means by which they are to do it. These employees
are free at any time to ask their managers to further explain any detail if they require it. Avondale
Shipyards is practicing a/an __________ style of leadership.
a. telling
b. delegating
c. selling
d. informing
e. participating
57. As the owner and proprietor of the neighborhood ice cream store nears retirement age, he wishes to
spend less time at the store and more time vacationing and spending time with family and friends. In
order to keep the store doing well, the owner must develop the situation to be able to use which of the
following leadership styles?
a. telling
b. delegating
c. selling
d. informing
e. participating
58. Which leadership style helps to enhance a subordinate's desire to perform a task because he/she shares in
the decision-making?
a. telling
b. delegating
c. selling
d. informing
e. participating
59. __________ behavior is the extent to which a leader organizes and defines the role of followers by
explaining what each person must do and when, where, and how tasks are to be accomplished.
a. Relations
b. Task
c. Objective
d. Coercive
e. Transformational
60. __________ behavior is the extent to which a leader maintains personal relationships with followers by
opening up channels of communication and providing support.
a. Relations
b. Task
c. Objective
d. Coercive
e. Transformational
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61. Rather than introduce new sales quotas for his sales force based entirely on his own opinion, Jeff Buck
enlisted the opinions of all of his sales people to investigate what level would most likely motivate them
and achieve the overall sales goals of the organization. Jeff is practicing a/an __________ style of
leadership.
a. telling
b. delegating
c. selling
d. informing
e. participating
62. The four leadership styles of the situational leadership model are
a. telling, participating, directing, and delegating.
b. directing, selling, participating, and delegating.
c. delegating, directing, telling, and participating.
d. participating, selling, telling, and delegating.
e. selling, telling, directing, and delegating.
63. According to the situation leadership model, when readiness levels of subordinates are very low, a leader
should employ a __________ leadership style.
a. telling
b. delegating
c. selling
d. informing
e. participating
64. The principle contribution of the __________ model has been an expanded search for relevant
contingency factors and clarification of ways that managers can influence employee behavior.
a. readiness
b. leadership substitutes
c. situational leadership
d. trait
e. transformational
ANS: C DIF: M OBJ: 6 NOT: Recall
65. Some research suggests that leaders should share power with followers to improve an organization's
effectiveness. Which of the following would this research support?
a. relations behavior
b. transformational leadership
c. transactional leadership
d. situational leadership theory
e. empowerment
66. The underlying theme of __________ is the sharing of power with those who need it to perform their job
functions.
a. total quality management
b. empowerment
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c. reengineering
d. process control
e. just-in-time
67. Recently, Long Island Shipping implemented human resource management practices that are designed
to increase the power and autonomy of its employees. This type of movement is called
a. just-in-time.
b. reengineering.
c. empowerment.
d. process control.
e. static management.
68. The process of influencing the attitudes and assumptions of organizational members and building
commitment to the organization's mission and objectives is called
a. negotiable leadership.
b. situational leadership.
c. transactional leadership.
d. variable leadership.
e. transformational leadership.
69. Stan Butler is what some people call a "corporate doctor." He is often hired to take a failing company,
revitalize it, and return it to profitability. There are two things that are distinctive about Mr. Butler's
leadership style. First, he refuses to accept the status quo. Instead, he openly challenges standard
operating procedures and will change them if necessary. Second, he institutes change by replacing old
technical and political networks with new ones. Mr. Butler is an example of a/an __________ leader.
a. situational
b. transactional
c. organic
d. transformational
e. variable
ANS: D DIF: E OBJ: 8 NOT: Application
70. __________ leadership increases follower motivation by activating the higher needs of followers,
appealing to their moral ideas, and empowering them.
a. Situational
b. Referent
c. Transformational
d. Legitimate Power Leadership
e. Organic
71. A leader is able to define and articulate a vision for the organization, and the followers accept the leader's
credibility. This is evidence of which of the following?
a. situational leadership
b. referent leadership
c. transformational leadership
d. transactional leadership
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e. organic leadership
72. Which type of leadership activates higher-order needs such as creative expression and
self-actualization?
a. situational
b. referent
c. transformational
d. transactional
e. organic
73. Based upon the __________ dimension of transformational leadership, the specific behavior of the
leader is that of a mentor who is attentive to the achievement and growth needs of his/her subordinates.
a. intellectual stimulation
b. individualized consideration
c. empowerment
d. inspirational motivation
e. idealized influence
ANS: B DIF: M OBJ: 8 NOT: Recall
74. Based upon the __________ dimension of transformational leadership, the leader promotes innovation
and creativity and reframes problems.
c. empowerment
75. Based upon the __________ dimension of transformational leadership, the leader provides meaning and
challenge through prosocial and collective actions.
c. empowerment
76. Based upon the __________ dimension of transformational leadership, leaders share risks, are
considerate of others needs over their own, and is both ethical and moral.
c. empowerment
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77. After serving as a middle school principal for years, Etta Liccardi was seen by many as both ethical and
moral in her leadership. She often considered the needs of her students and faculty over her own
self-interests. Etta would score high on which of the following transformational leadership dimensions?
c. empowerment
78. When a leader employs the __________ dimension of transformational leadership, followers are often
motivated and feel valued.
c. empowerment
79. When a leader employs the __________ dimension of transformational leadership, followers are
encouraged to be novel and attempt new approaches.
c. empowerment
80. When a leader employs the __________ dimension of transformational leadership, followers are often
enthusiastic, optimistic, and filled with team spirit.
c. empowerment
81. Alabama coach Bear Bryant's players admired, respected, and trusted their leader. If Bear Bryant had
employed transformational leadership, which one of the following dimensions could we say he
particularly displayed through his behaviors?
c. empowerment
ANS: E DIF: M OBJ: 8 NOT: Application
82. As the founder of a web start-up company, Pam Brar encouraged her employees to be novel and try new
approaches in their work. Which dimension of transformational leadership behavior would is Pam
displaying?
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c. empowerment
ANS: D DIF: E OBJ: 8 NOT: Application
83. The two major components of emotional intelligence.

a. The ability to understand emotions, and the ability to use emotions.
b. Personal competence and social competence
c. Emotions and intelligence.
d. The ability to understand others’ emotions, and the ability to control one’s own emotions.
e. Self awareness and empathy.
84. Which of the following is true?

a. Research revealed that emotional intelligence was almost as important as cognitive skills
(IQ) but more important than technical skills in differentiating high performance.
b. Research revealed that emotional intelligence, cognitive skills (IQ), and technical skills
were equally important in differentiating high performance.
c. Research revealed that emotional intelligence was slightly more important than cognitive
skills (IQ) but nearly twice as important as technical skills in differentiating high
performance.
d. Research revealed that emotional intelligence was slightly more important than cognitive
skills (IQ) but not as important in differentiating high performance.
e. Research revealed that emotional intelligence was twice as important as cognitive (IQ) or
technical skills in differentiating high performance.
85. A recent study of Fortune 500 companies found that sales people with high EQ (emotional quotients,
which are the measure of emotional intelligence) produced __________ the revenue produced by
so-called “average” performers.
a. the same amount of
b. one-and-a-half times
c. two times
d. three times
e. four times
86. The capacity to effectively manage ourselves and our relationships is known as
a. emotional intelligence.
b. transformational leadership.
c. referent power.
d. empowerment.
e. coercive power.
87. Which of the following statements regarding the differences between men and women as leaders is not
true?
a. Women are better at expressing their feelings.
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b. Women have an easier time switching from the verbal left brain to the emotional right brain
than men do.
c. Women score higher on IQ tests than men do.
d. Men show pain and stress by externalizing them.
e. Women show pain and stress by internalizing them.
88. Which of the following was NOT found to be true in a recent study?
a. Female leaders are more empathetic than male leaders.
b. Female leaders are more thorough than male leaders.
c. Female leaders are more persuasive than male leaders.
d. Female leaders are better listeners than male leaders.
e. Female leaders are more willing to consider others’ points of view than male leaders.
89. Women are NOT as likely as men to use which one of the following behaviors?
a. Transformational leadership
b. Reliance on expertise
c. Charisma
d. Directive
e. Interpersonal skills
90. Which innovative technique used by Proctor and Gamble to support junior female managers was
discussed in the text?
a. Senior executives were assigned as mentors to female employees.
b. Junior female managers were permitted to attend upper management strategy meetings to
become familiar with corporate planning.
c. Junior female managers were assigned middle management positions under different
mentors in a revolving type schedule to learn various functions in the corporate structure.
d. Junior female managers were scheduled to participate in assessment center tests to
determine their capacity to assume middle and upper management roles.
e. Female employees were paired with a senior manager for reverse mentoring to help the
mostly male executives understand the issues women face.
MATCHING
Match each term with the correct statement below.

a. referent power
b. information power
c. legitimate power
d. coercive power
e. reward power
f. leadership
g. expert power
1. power derived from control over tangible benefits such as promotion, a better job, a better work
schedule, a larger operating budget, an increased expense account, and formal recognition of
accomplishments
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2. control over information that involves the leader's power to access and distribute information that is
either desired or vital to others
3. the power to discipline, punish, and withhold rewards
4. power stemming from formal authority based on the particular positions in an organization or social
system
5. the ability to influence based on personal liking, charisma, and reputation
6. a social influence process that involves determining the group's objectives, motivating behavior in
pursuit of these objectives, and influencing group maintenance and culture
7. the power to influence because of expert knowledge and competence
1. ANS: E DIF: E
2. ANS: B DIF: E
3. ANS: D DIF: E
4. ANS: C DIF: E
5. ANS: A DIF: E
6. ANS: F DIF: E
7. ANS: G DIF: E

a. trait approach
b. behavioral approach
c. task orientation
d. relations orientation
8. setting goals, giving directions, setting standards, supervising worker performance, and applauding new
ideas
9. showing empathy for needs and feelings, being supportive of group needs, establishing trusting
relationships, and allowing workers to participate in decision-making
10. the assumption that some people are "natural leaders," and are thus endowed with certain traits not
possessed by other individuals
11. the assumption that what the leader does is the primary variable that determines effectiveness
8. ANS: C DIF: E
9. ANS: D DIF: E
10. ANS: A DIF: E
11. ANS: B DIF: E

a. trait approach
b. behavioral approach
c. self-managed teams
d. situational leadership theory
e. transformational leadership
f. leadership substitutes
g. followership
h. transactional leadership
12. groups of employees who appear in many forms including quality circles, task forces, communication
teams, and new venture teams
13. a leadership paradigm founded on creating an organization of leaders who are ready to lead themselves
14. the assumption that some people are "natural leaders," and thus are endowed with certain traits
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15. situational variables that tend to outweigh a leader's ability to affect subordinate satisfaction and
performance
16. states that effective leader behavior depends on the situational contingency of readiness and the
appropriate behavior-readiness match
17. the process of influencing the attitudes and assumptions of organizational members and building
commitment to the organization's mission and objectives
18. the assumption that the leader does is the primary variable that determines effectiveness
19. perspective of leadership based on rational exchange
12. ANS: C DIF: E

13. ANS: G DIF: E
14. ANS: A DIF: E
15. ANS: F DIF: E
16. ANS: D DIF: E
17. ANS: E DIF: E
18. ANS: B DIF: E
19. ANS: H DIF: E
ESSAY
1. Define the concept of power. Why is power a necessary component of leadership?
ANS:
Power is the ability to marshal human, informational, or material resources to get something done. This
ability or capacity provides an individual with a platform upon which to project his or her leadership
abilities. Power is important not only for influencing subordinates, but also for influencing peers,
superiors, and people outside the organization such as clients and suppliers.
DIF: M OBJ: 3
2. What is referent power? Describe a leader in an organization with which you are familiar who has
referent power.
ANS:
Referent power is the ability to influence others based on personal liking, charisma, and reputation. It is
a form of personal power, meaning that it is not derived from an individual's position in an organization,
but rather from an individual's personal characteristics.
Most of your students should be able to identify someone they are familiar with who has referent power.
If a student cannot think of anyone, ask the student to select a politician or the CEO of a major company
who has referent power.
DIF: M OBJ: 3
3. Explain what the trait approach to understanding leadership attempted to determine. Has the trait
approach been successful in predicting leadership ability?
ANS:
316
The trait approach tried to determine which individual differences or traits (i.e., physical characteristics,
personality characteristics, abilities, etc.) predict leadership potential. Trait researchers tried to answer
questions such as, "Do tall people make better leaders than short people?" and "Do people with outgoing
personalities make better leaders than people who are more reserved?" In general, the trait researchers
have had only modest success. According to our textbook, trait researchers have found that leaders tend
to possess greater (1) drive, (2) motivation, (3) honesty and integrity, (4) self-confidence, (5) cognitive
ability, and (6) knowledge of the business. However, trait researchers have had very limited success
even with this list of characteristics in identifying more and less successful leaders.. Most leadership
experts believe that traits alone cannot predict leadership ability.
DIF: M OBJ: 2
4. What is transformational leadership? When is a transformational leader needed?
ANS:
Transformational leadership is simply the leader's ability to influence people to achieve more than was
originally expected. It is the process of influencing the attitudes and assumptions of organizational
members and building commitment to an organization's mission and objectives. Transformational
leaders do not accept the status quo, but rather work toward meaningful change. A transformational
leader is needed when dramatic organizational change is necessary. A transformational leader does
much more than improve the efficiency of an organization's operations. A transformational leader must
articulate a vision for change, then rally the organizational members around the change initiative and
build commitment to the organization's mission and objectives.
DIF: M OBJ: 8
5. How do leaders influence major change initiatives in business organizations? What is the most important
role a leader can assume in regard to such initiatives?
ANS:
A leader is in the unique position of setting the agenda and priorities for his or her organization. As a
result, it is unlikely that any major initiative in a business organization will be successful without the
active support of the organization's leader or leaders. Rarely are major change initiatives successful
without the visible support of the organization's leaders. This support can take many forms. Sometimes
symbolic acts are necessary to convey to the employees the importance of a change initiatives and other
priorities. Other forms of support leaders provide for change initiatives include resources, personnel, and
personal attention.
DIF: D OBJ: 1
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Chapter 12—LEADING IN A DYNAMIC ENVIRONMENT

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7. Trait research was successful in predicting leadership success consistently.

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21. Personal power includes expert power and referent power.

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29. Individuals with a personalized power orientation often act impulsively.

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31. Self-leadership is often referred to as followership.

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41. Empowerment of employees can also be a powerful motivational tool.

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42. Empowerment is often described as delegation or devolution of power.

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9. The general consensus is that effective leaders use

15. The two forms of personal power are

19. The four forms of position power are

27. Which of the following is not a form of position power?