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Effective leadership is like a three-legged stool. Which of the following is not represented by one of the stool legs?


A) dedication to maintaining the status quo
B) nurturing a culture dedicated to excellence and ethical behavior
C) determining a direction
D) designing the organization

E) A) and B)
F) A) and C)

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Organizational ethics is the responsibility of top management only.

A) True
B) False

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This legal act provides considerable legal protection to employees of publicly traded companies who report unethical or illegal practices.


A) Taft-Hartley Act
B) National Labor Relations Act
C) Sarbanes-Oxley Act
D) Norris-La Guardia Act

E) A) and D)
F) None of the above

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Research suggests that not all leadership development programs are equally effective. Which of the following is not a common trait shared in all successful development programs?


A) The programs are designed to fit the company overall strategy.
B) The programs combine real-world experiences with classroom activities.
C) The programs identify organizational biases and ways to overcome them.
D) Managers and trainers only assess the impact of the training immediately upon completion.

E) All of the above
F) C) and D)

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Leaders are not expected to accept personal responsibility for ethical behavior in an organization, because ethics is a matter of individual choice.

A) True
B) False

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Greenwashing is a type of fraud in which companies make unsubstantiated claims about how environmentally friendly their products or services really are.

A) True
B) False

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A strategic vision provides many benefits. Which of the following is not one of those benefits?


A) a clear future direction
B) a framework for their organization mission and goals
C) enhanced employee communication and commitment
D) diminished employee participation

E) All of the above
F) None of the above

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Barriers associated with a managerial tendency to look at issues from a biased or limited perspective are known as


A) systemic barriers.
B) behavioral barriers.
C) political barriers.
D) barriers to exit.

E) A) and B)
F) All of the above

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Socially skilled people tend to have a wide circle of acquaintances as well as a knack for finding common ground and building support. This means that they are less likely to be effective in leading change or in having expertise in building and leading teams.

A) True
B) False

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Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.

A) True
B) False

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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.

A) True
B) False

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Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization.

A) True
B) False

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Ethical crises are bad for organization reputation, but they rarely have any financial consequences.

A) True
B) False

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When faced with barriers to change, leaders can create a good climate for advancing the aims of the organization and making progress towards its goals by building ______________ and _____________.


A) a learning organization; an ethical organization
B) a following organization; an ethical organization
C) a learning organization; an efficient organization
D) an efficient organization; a learning organization

E) None of the above
F) B) and C)

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Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the Duke Power of Indiana program called GoGreen Power. This is an example of


A) a benefit of an ethical organization.
B) eco-friendly program development.
C) greenwashing.
D) a successful ethical marketing campaign.

E) A) and C)
F) None of the above

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The ethical compass of an organization, in the integrity-based ethics approach to management, consists of the expected ________ and ____________.


A) obligations; rules
B) behaviors; penalties
C) responsibilities; aspirations
D) legalities; penalties

E) B) and C)
F) All of the above

Correct Answer

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According to research, effective leaders at all levels of organizations have high levels of Emotional Intelligence (EI) . CEOs with high EI excel in all of the following except


A) managing relationships.
B) influencing people.
C) forging alliances inside and outside the firm.
D) ability to discourage outside stakeholders.

E) A) and B)
F) B) and D)

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Successful learning organizations have a proactive, creative approach to the unknown.

A) True
B) False

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In organizations, ethical behavior must start with _______ before _________ can be expected to perform accordingly.


A) the employees; the shareholders
B) the shareholders; the leader
C) the leader; the employees
D) the leader; the shareholders

E) B) and D)
F) None of the above

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Alan Mulally took over Ford Motor Company in 2006 at a time when it was struggling, losing money, and market share. Under his leadership, the firm returned to high profitability. Which of the following is not one of the interdependent activities of leadership that he used to accomplish this task?


A) He set a direction using strategic analysis and strategy formulation.
B) He designed the organization to facilitate the implementation of his vision and strategies.
C) He nurtured a culture dedicated to profits at any cost.
D) He nurtured a culture focused on core competencies and high ethical standards.

E) A) and D)
F) A) and C)

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