Planning and Leadership
1. Which one of the following is a defensive strategy?
A. Diversification C. Concentration
B. Vertical integration D. Divestiture
2. Negative power is primarily associated with
A. voluntary exchange relationships.
B. situations in which an individual is forced to change.
C. situations in which both parties to an exchange feel good
D. exchange relationships in which involuntary compliance is
3. Which one of the following situations is an example of overall cost leadership?
A. A dress manufacturer wants to make its product unique in its category.
B. A company that manufactures school desks is looking for ways to make its
desks less expensive than its competition.
C. A restaurant is seeking to reverse a negative trend to get themselves back
D. A large corporation has determined to liquidate parts of its business.
4. Graham maintains that formulation and implementation are phases in the strategic
management process. Yolanda maintains that evaluation and estimation are also part
of this process. Who is correct?
A. Yolanda is correct.
B. Both Graham and Yolanda are correct.
C. Graham is correct.
D. Neither Graham nor Yolanda is correct.
5. What is the typical time span for long-range plans?
A. More than 1 year C. 3–5 years
B. 2–3 years D. About 25 years
6. Which one of the following leadership styles could be best characterized by the
statement “Let George do it”?
A. Contingent C. Democratic
B. Laissez-faire D. Autocratic
7. According to the Managerial Grid, which basic style of management has a high concern
for people and a low concern for production?
A. Country club management
B. Authority-obedience management
C. Organization man management
D. Team management
8. Tactical planning focuses on the formulation of _______ plans.
A. long-range C. functional
B. contingency D. strategic
9. Which one of the following characteristics is associated with charismatic leaders?
A. Following management by the book
B. Lacking confidence in employees’ abilities
C. Promoting their beliefs with boundless energy.
D. Controlling the behavior of others.
10. Leadership is best defined as the
A. ability to influence people to willingly follow one’s guidance or adhere to
B. ability to influence, command, or apply force.
C. ability to avoid being forced by others to do what he or she doesn’t want to do.
D. right to issue directives and expend resources.
11. What tool was developed as a result of the Ohio State Studies?
A. Managerial grid
B. Least preferred coworker scale
C. Continuum of leader behavior
D. Leader Behavior Description Questionnaire
12. Management by objectives works best when the objectives of each organizational unit
are derived from
A. the social environment.
B. the objectives of a competitor.
C. the objectives of the next higher unit in the organization.
D. a functional or general manager.
13. Which one of the following quotes suggests a leader with an attitude consistent with
A. “These people hate work. If possible, they would never come in.”
B. “My advice to you as a new manager is to be firm with your people. Otherwise,
they won’t put out any effort to achieve our goals.”
C. “My employees have very little ambition. All they want is to know their jobs
D. “My people are committed to our organization’s objectives because they know
what’s in it for them.”
14. At the office, Jacob knows from his boss that his needs will be met as long as Jacob
performs his duties successfully. What theory of leadership does Jacob’s boss follow?
A. Situational leadership theory
B. Transformational leadership theory
C. Path-goal theory
D. Fiedler’s contingency theory
15. Which one of the following elements is part of an organization’s broad environment?
A. Stockholders C. Competitors
B. Political trends D. Labor unions
16. Basically speaking, a contingency plan is a _______ plan.
A. backup C. crisis management
B. primary D. tactical
17. According to Peter Drucker, who determines an organization’s purpose, or mission?
A. Company executives C. Stockholders
B. Customers D. Supervisors
18. Which one of the following is a personal source of power?
A. Coercive power C. Referent power
B. Reward power D. Legitimate power
19. Process culture emphasizes
A. the way things are to be done rather than the outcomes.
B. taking few risks and attaining rapid feedback.
C. making decisions that involve big stakes.
D. taking high risks while getting quick feedback.
20. Which one of the following employees would be most likely to develop a plan for
scheduling the completion of a production job?
A. Chief executive officer C. Lower-level manager
B. Senior vice president D. Production employees