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Lesson 2 Planning and Leadership EXAMINATION NUMBER 06042500 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 about it. D. exchange relationships in which involuntary compliance is viewed positively. 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 to profitability. 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 one’s decisions. 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 Theory Y? 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 are secure.” 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

Lesson 2

Planning and Leadership

 

EXAMINATION NUMBER

06042500

 

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

about it.

D. exchange relationships in which involuntary compliance is

viewed positively.

 

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

to profitability.

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

one’s decisions.

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

Theory Y?

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

are secure.”

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

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