Question 1

The ability of a leader to control the distribution and use of resources inside a corporation provides that leader with:

Accepted Answer

A)  a legal fiduciary responsibility. 
B)  power over others. 
C)  the ability to veto voluntary assent to a leader's proposals. 
D)  the ability to declare all changes emergencies. 
A)  a legal fiduciary responsibility. 
B)  power over others. 
C)  the ability to veto voluntary assent to a leader's proposals. 
D)  the ability to declare all changes emergencies. B

Question 2

Becca Lynn Stanton is a product manager whose compensation is 100% variable pay and based on the profits earned by her product line. Since she is risk-averse, she tends to favor production proposals that increase her income and status, but she is leery of production proposals that have a wide potential for positive or negative payoffs. What would it take to get her to consider a new production system?

Accepted Answer

Management could change Stanton's compensation to base pay plus variable pay. She is leery of the new production system because she is risk averse and perceives a higher variance of her compensation. Including base pay allows management to reduce the variance of her total compensation, which might be sufficient for her to consider the new production system.

Question 3

In his famous Fortune magazine article, Wheat listed "what it takes" to become a great leader. Which of the following is not on his list?

Accepted Answer

A)  Stand up and be seen. 
B)  Be brutally optimistic. 
C)  Don't let the facts get in your way. 
D)  Make team members feel important. 
A)  Stand up and be seen. 
B)  Be brutally optimistic. 
C)  Don't let the facts get in your way. 
D)  Make team members feel important. C

Question 4

One way to market a proposal for a new business venture, especially when architecture changes are ruled out and opposition seems strong is to:

Accepted Answer

A)  replace the Board of Directors. 
B)  emphasize the level of crisis that exists inside the firm. 
C)  pretend that architecture changes will be made. 
D)  withdraw the proposal. 
A)  replace the Board of Directors. 
B)  emphasize the level of crisis that exists inside the firm. 
C)  pretend that architecture changes will be made. 
D)  withdraw the proposal.

Question 5

A Nash equilibrium shows the outcomes of leadership in a non-cooperative environment. If the leadership of a company hopes to find a solution in a different position, the managers are required to be:

Accepted Answer

A)  more risk-averse. 
B)  open to cooperative leadership. 
C)  more aggressive in their non-cooperative leadership. 
D)  balance the marginal benefits of leadership. 
A)  more risk-averse. 
B)  open to cooperative leadership. 
C)  more aggressive in their non-cooperative leadership. 
D)  balance the marginal benefits of leadership.

Question 6

Three issues related to proposal design are:

Accepted Answer

A)  commitment, distribution and marketing. 
B)  flexibility, marketing and distribution. 
C)  flexibility, commitment and marketing. 
D)  flexibility, commitment and distribution. 
A)  commitment, distribution and marketing. 
B)  flexibility, marketing and distribution. 
C)  flexibility, commitment and marketing. 
D)  flexibility, commitment and distribution.

Question 7

Which one of the following is a source of organizational power?

Accepted Answer

A)  Vision setting. 
B)  Logrolling. 
C)  Coalition formation. 
D)  Having close friends and allies. 
A)  Vision setting. 
B)  Logrolling. 
C)  Coalition formation. 
D)  Having close friends and allies.

Question 8

Franklin D. Roosevelt pointed out that the New Deal was a series of experiments and that one could learn the good and bad from trying. His leadership reveals:

Accepted Answer

A)  commitment. 
B)  clever marketing. 
C)  distribution awareness. 
D)  flexibility. 
A)  commitment. 
B)  clever marketing. 
C)  distribution awareness. 
D)  flexibility.

Question 9

Logrolling refers to

Accepted Answer

A)  bunch of individuals who are indifferent about one single proposal, but agree to support it, so each can get what he wants 
B)  one individual who is indifferent about others' proposals, but agrees to support all the requests, so he can get what he wants 
C)  bunch of individuals who care about others' proposals, and agree to support each other 
D)  bunch of individuals who are indifferent about others' proposals, but agree to support all the requests, so each can get what he wants 
A)  bunch of individuals who are indifferent about one single proposal, but agree to support it, so each can get what he wants 
B)  one individual who is indifferent about others' proposals, but agrees to support all the requests, so he can get what he wants 
C)  bunch of individuals who care about others' proposals, and agree to support each other 
D)  bunch of individuals who are indifferent about others' proposals, but agree to support all the requests, so each can get what he wants

Question 10

Sometimes a person has a number of successes and people tend to think that this manager always presents good new proposals for ratification. If a manager does not work hard at proposal design or marketing, then they are:

Accepted Answer

A)  getting sloppy after all the years of success. 
B)  relying on reputation. 
C)  working hard to lay the groundwork of proposal. 
D)  going to change the architecture during the monitoring phase. 
A)  getting sloppy after all the years of success. 
B)  relying on reputation. 
C)  working hard to lay the groundwork of proposal. 
D)  going to change the architecture during the monitoring phase.

Question 11

For an employee (agent) with formal leadership assignments or title, specific knowledge can be:

Accepted Answer

A)  a problem and a potential for loss of employment. 
B)  something that evolves into general knowledge. 
C)  a significant source of power in ratification of proposals. 
D)  the result of an intuitive translation. 
A)  a problem and a potential for loss of employment. 
B)  something that evolves into general knowledge. 
C)  a significant source of power in ratification of proposals. 
D)  the result of an intuitive translation.

Question 12

Which one of the following is a source of organizational power?

Accepted Answer

A)  Vision setting. 
B)  Logrolling. 
C)  Coalition formation. 
D)  Formal authority. 
A)  Vision setting. 
B)  Logrolling. 
C)  Coalition formation. 
D)  Formal authority.

Question 13

To motivate people to change and follow a new mission for a company, it is important to:

Accepted Answer

A)  move overseas for most of production. 
B)  outsource marketing and advertising. 
C)  change the company's organizational architecture. 
D)  rely on standard U-form organizational structures. 
A)  move overseas for most of production. 
B)  outsource marketing and advertising. 
C)  change the company's organizational architecture. 
D)  rely on standard U-form organizational structures.

Question 14

During the 1990s, Xerox had a problem with quality. CEO Kearns found that to solve the problem, he needed to:

Accepted Answer

A)  move to a new company and start over. 
B)  change the evaluation and incentive system. 
C)  show that he built his copiers with quality. 
D)  hire executives who understood quality. 
A)  move to a new company and start over. 
B)  change the evaluation and incentive system. 
C)  show that he built his copiers with quality. 
D)  hire executives who understood quality.

Question 15

Why are academics way off base when it comes to organizational politics?

Accepted Answer

Most academic discussions are conducted

Question 16

A key to motivating people in a business entity is to remember that each person:

Accepted Answer

A)  tends to be very lazy. 
B)  tends to act in his/her own self interest. 
C)  follows the rules of ethics distributed by their professional societies. 
D)  tends to follow orders unless a strong reason is given to otherwise. 
A)  tends to be very lazy. 
B)  tends to act in his/her own self interest. 
C)  follows the rules of ethics distributed by their professional societies. 
D)  tends to follow orders unless a strong reason is given to otherwise.

Question 17

The problem with logrolling is

Accepted Answer

A)  nobody wins in the long run 
B)  all other proposals go through only after yours goes through 
C)  your proposal will be supported only after all other proposals go through 
D)  once you support someone's proposal, they can turn their back on yours 
A)  nobody wins in the long run 
B)  all other proposals go through only after yours goes through 
C)  your proposal will be supported only after all other proposals go through 
D)  once you support someone's proposal, they can turn their back on yours

Question 18

Mahatma Gandhi, John F. Kennedy, Martin Luther King Jr. are all cited as charismatic leaders. Economics tells us that charisma can be learned. What is the inconsistency in the economic argument?
Economics tells us that those leaders will do anything to improve their own utility and promote their own self interest. If it is in the leader's self interest to be charismatic, then he will spend resources to learn the styles from others. But the problem is that the very style the leader is copying in the said question, are from individuals who did not care about their own welfare in the first place.

Accepted Answer

Economics tells us that those leaders wi

Question 19

While top level executives and the board of directors have wide-ranging discretion on leadership issues, most middle managers recognize that they must exercise leadership:

Accepted Answer

A)  only when told to by senior management. 
B)  exclusively through incentive commissions. 
C)  within the existing architecture. 
D)  only when employees act completely lost. 
A)  only when told to by senior management. 
B)  exclusively through incentive commissions. 
C)  within the existing architecture. 
D)  only when employees act completely lost.

Question 20

Ultimately, power to change inside a corporation comes from:

Accepted Answer

A)  other people who voluntary agree to comply with a leader's proposals. 
B)  a leader's charter in the articles of incorporation. 
C)  a leader's formal ownership of his employees. 
D)  changing the organizational architecture every two years. 
A)  other people who voluntary agree to comply with a leader's proposals. 
B)  a leader's charter in the articles of incorporation. 
C)  a leader's formal ownership of his employees. 
D)  changing the organizational architecture every two years.

Exam 20: Leadership: Motivating Change Within Organizations

The ability of a leader to control the distribution and use of resources inside a corporation provides that leader with:

In his famous Fortune magazine article, Wheat listed "what it takes" to become a great leader. Which of the following is not on his list?

One way to market a proposal for a new business venture, especially when architecture changes are ruled out and opposition seems strong is to:

A Nash equilibrium shows the outcomes of leadership in a non-cooperative environment. If the leadership of a company hopes to find a solution in a different position, the managers are required to be:

Three issues related to proposal design are:

Which one of the following is a source of organizational power?

Franklin D. Roosevelt pointed out that the New Deal was a series of experiments and that one could learn the good and bad from trying. His leadership reveals:

Logrolling refers to

Sometimes a person has a number of successes and people tend to think that this manager always presents good new proposals for ratification. If a manager does not work hard at proposal design or marketing, then they are:

For an employee (agent) with formal leadership assignments or title, specific knowledge can be:

Which one of the following is a source of organizational power?

To motivate people to change and follow a new mission for a company, it is important to:

During the 1990s, Xerox had a problem with quality. CEO Kearns found that to solve the problem, he needed to:

Why are academics way off base when it comes to organizational politics?

A key to motivating people in a business entity is to remember that each person:

The problem with logrolling is

While top level executives and the board of directors have wide-ranging discretion on leadership issues, most middle managers recognize that they must exercise leadership:

Ultimately, power to change inside a corporation comes from:

Introduction

Economists View of Behavior

Markets, Organizations, and the Role of Knowledge

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Economics of Strategy: Game Theory

Incentive Conflicts and Contracts

Organizational Architecture

Decision Rights: The Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Attracting and Retaining Qualified Employees

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Understanding the Business Environment: The Economics of Regulation

Ethics and Organizational Architecture

Organizational Architecture and the Process of Management Innovation

Filters