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

1.

Three key interdependent strategic leadership activities are: designing the organization; determining its direction; and nurturing a culture dedicated to excellence and ethical behavior.    TRUE Many authors contend that successful leaders must recognize three interdependent activities that must be continually reassessed for organizations to succeed. These are: (1) setting a direction, (2) designing the organization, and (3) nurturing a culture dedicated to excellence and ethical behavior.

AACSB: Analytic Blooms: Remember Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Level of Difficulty: 1 Easy Topic: Leadership: Three Interdependent Activities

2.

Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.    TRUE A holistic understanding of the organization stakeholders requires an ability to scan the environment to develop a knowledge of all of the company stakeholders and other salient environmental trends and events. Managers must integrate this knowledge into a vision of what the organization could become.

AACSB: Analytic Blooms: Remember Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Level of Difficulty: 1 Easy Topic: Leadership: Three Interdependent Activities

3.

Designing the organization is the leadership activity that involves building structures, teams, systems, and processes that facilitate the implementation of leader vision.    TRUE When designing the organization, successful leaders are actively involved in building structures, teams, systems, and organizational processes that facilitate the implementation of their vision and strategies.

AACSB: Analytic Blooms: Remember Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Level of Difficulty: 1 Easy Topic: Leadership: Three Interdependent Activities

4.	Leaders play an important role in sustaining organization culture, but they are powerless to change it.    FALSE Leaders play a key role in changing, developing, and sustaining organization culture.

AACSB: Analytic Blooms: Understand Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Level of Difficulty: 2 Medium Topic: Leadership: Three Interdependent Activities

5.

Leaders are not expected to accept personal responsibility for ethical behavior in an organization, because ethics is a matter of individual choice.    FALSE Managers and top executives must accept personal responsibility for developing and strengthening ethical behavior throughout the organization. They must consistently demonstrate that such behavior is central to the vision and mission of the organization.

AACSB: Analytic Blooms: Understand Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Level of Difficulty: 2 Medium Topic: Leadership: Three Interdependent Activities

6.

Visionary leadership is only the domain of the CEO, as suggested by the example of Joe Ling at 3M who developed the Pollution Prevention Pays (3P) program.    FALSE Joe Ling was a vice president of environmental engineering and pollution control at 3M, when he started the Pollution Prevention Pays (3P) program that brought about creative change in the organization. The 3P program not only encourages top executives to rethink products and processes, but also empowers lower-level employees to generate sustainability improvements. The program continues to this day and is an example of visionary leadership that was brought about beyond the domain of the CEO.

AACSB: Analytic Blooms: Understand Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Level of Difficulty: 2 Medium Topic: Leadership: Three Interdependent Activities

7.

The tendency of many individuals to throw good money at bad decisions despite negative performance feedback is referred to as escalation.    TRUE Many people have vested interests in the status quo. People tend to be risk averse and resistant to change. There is a broad stream of research on escalation, wherein certain individuals continue to throw good money at bad decisions despite negative performance feedback.

AACSB: Analytic Blooms: Remember Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 1 Easy Topic: Getting Things Done: Overcoming Barriers and Using Power

8.

Systemic barriers to change refer to elements of organization design, structure, and reporting relationships that impede the flow of information.    TRUE Organizations at all levels are prone to inertia and are slow to learn, adapt, and change because there are systemic barriers. The design of organization structure, information processing, reporting relationships, and so forth impede the proper flow and evaluation of information.

AACSB: Analytic Blooms: Remember Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 1 Easy Topic: Getting Things Done: Overcoming Barriers and Using Power

9.

Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information.    FALSE Behavioral barriers cause managers to look at issues from a biased or limited perspective due to their education, training, work experiences, and so forth. Political barriers refer to conflicts arising from power relationships.

AACSB: Analytic Blooms: Understand Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 2 Medium Topic: Getting Things Done: Overcoming Barriers and Using Power

10.

According to the Gresham law of planning, operational decisions do not drive out the time necessary for strategic thinking and reflection.    FALSE According to the Gresham law of planning, operational decisions do drive out the time necessary for strategic thinking and reflection. This tendency is accentuated in organizations experiencing severe price competition or retrenchment, wherein managers and employees are spread rather thin.

AACSB: Analytic Blooms: Understand Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 2 Medium Topic: Getting Things Done: Overcoming Barriers and Using Power

11.

Political barriers to change can be overcome by promoting collaboration throughout the organization, as seen in the case study on Natura Cosmeticos of Brazil in which CEO Carlucci implemented a comprehensive engagement process across the organization.    TRUE Natura Cosmeticos of Brazil provides another example of overcoming barriers to change by addressing political barriers. Alessandro Carlucci, CEO of the large manufacturer and marketer of beauty products, has implemented a comprehensive engagement process that promotes a collaborative mindset at all levels of the organization.

AACSB: Analytic Blooms: Understand Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 2 Medium Topic: Getting Things Done: Overcoming Barriers and Using Power

12.

Leaders must draw on a range of personal skills as well as organizational mechanisms to move their organizations forward in the face of barriers to change.    TRUE Leaders must draw on a range of personal skills as well as organizational mechanisms to move their organizations forward in the face of such barriers to change. One of the most important tools a leader has for overcoming barriers to change is their personal and organizational power.

AACSB: Analytic Blooms: Understand Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 2 Medium Topic: Getting Things Done: Overcoming Barriers and Using Power

13.	The two broad bases of leader power are organizational and hierarchical.    FALSE A leader derives his or her power from several sources or bases. The simplest way to understand the bases of power is by classifying them as organizational and personal.

AACSB: Analytic Blooms: Remember Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 1 Easy Topic: Getting Things Done: Overcoming Barriers and Using Power

14.	Referent power refers to manager identification with his or her employees.    FALSE The source of referent power is subordinate identification with the leader. Leader personal attributes or charisma might influence subordinates and make them devoted to that leader.

AACSB: Analytic Blooms: Remember Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 1 Easy Topic: Getting Things Done: Overcoming Barriers and Using Power

15.	Coercive power is the power exercised by use of fear of punishment for errors of either omission or commission by employees.    TRUE Coercive power is the power a manager exercises over employees using fear of punishment for errors of omission or commission.

AACSB: Analytic Blooms: Remember Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 1 Easy Topic: Getting Things Done: Overcoming Barriers and Using Power

16.

When Peter Loscher took over as CEO at Siemens in 2007, he lacked internal connections. He used formal bases of power to bring about organizational change and increase a customer orientation.    FALSE As an outsider Mr. Loscher found it challenging to establish himself as a strong leader inside the bureaucratic Siemens organization. Naturally, in the early stage of his tenure, he lacked internal connections and the bases of power associated with inside knowledge of people and processes. Absent a more formal power base, he turned to more informal means to accomplish his mandate of organizational change and increasing customer orientation.

AACSB: Analytic Blooms: Understand Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and the effective use of power. Level of Difficulty: 2 Medium Topic: Getting Things Done: Overcoming Barriers and Using Power

17.

Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ).    FALSE The five components of EI are: self-awareness, self-regulation, motivation, empathy, and social skill. Findings indicate that EI is a better predictor of life success (economic well-being, satisfaction with life, friendship, family life), including occupational attainments, than IQ.

AACSB: Analytic Blooms: Remember Learning Objective: 11-03 The crucial role of emotional intelligence (EI) in successful leadership as well as its potential drawbacks. Level of Difficulty: 1 Easy Topic: Emotional Intelligence: A Key Leadership Trait

18.	Emotional intelligence (EI) is generally a better predictor of life success than intelligence quotient (IQ).    TRUE Findings indicate that EI is a better predictor of life success (economic well-being, satisfaction with life, friendship, family life), including occupational attainments, than IQ.

AACSB: Analytic Blooms: Understand Learning Objective: 11-03 The crucial role of emotional intelligence (EI) in successful leadership as well as its potential drawbacks. Level of Difficulty: 2 Medium Topic: Emotional Intelligence: A Key Leadership Trait

19.

Empathy, one of the components of emotional intelligence (EI), refers to personal proficiency in managing relationships and building networks.    FALSE Empathy is the ability to understand the emotional makeup of other people, and skill in treating people according to their emotional reactions. Social skill is proficiency in managing relationships and building networks and an ability to find common ground and build rapport.

AACSB: Analytic Blooms: Remember Learning Objective: 11-03 The crucial role of emotional intelligence (EI) in successful leadership as well as its potential drawbacks. Level of Difficulty: 1 Easy Topic: Emotional Intelligence: A Key Leadership Trait

20.

People with strong self-awareness are overly critical and unrealistically optimistic and are well suited to run organizations, because they will make good judgment calls.    FALSE Self-awareness involves a person having a deep understanding of his or her emotions, strengths, weaknesses, and drives. People with strong self-awareness are neither overly critical nor unrealistically optimistic. Instead, they are honest with themselves and others. People who assess themselves honestly (i.e., self-aware people) are well suited to do the same for the organizations they run.

AACSB: Analytic Blooms: Understand Learning Objective: 11-03 The crucial role of emotional intelligence (EI) in successful leadership as well as its potential drawbacks. Level of Difficulty: 2 Medium Topic: Emotional Intelligence: A Key Leadership Trait