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Nisha is a retail manager at Hexagon Corp. She needs to troubleshoot customer complaints about a product. She has to decide whether to scrap the product or replace it with a different brand. Based on customer complaints about the product and favorable online reviews of alternate brands, she decides to switch to a different brand. According to the normative decision theory, which of the following decision-making styles has Nisha adopted in this scenario?


A) AI
B) AII
C) CI
D) GII

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

Correct Answer

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Seth is a manager at Click Systems. He leads a team of 20 employees, and Amanda is his least preferred coworker because he finds it difficult to cooperate with her. During an employee feedback session, Seth informs his boss that Amanda is unresponsive, insincere, lazy, and unfriendly. In this scenario, Seth has a _____ leadership style.


A) relationship-oriented
B) country club
C) task-oriented
D) team management

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

Correct Answer

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Janet, a manager at a gym, finds it difficult to get any job done with Sam, who is her least preferred coworker. However, when her boss asks for a feedback about her employees, she describes Sam as cheerful, supportive, sincere, and friendly. This scenario illustrates that Janet follows a(n) _____ leadership style.


A) impoverished management
B) relationship-oriented
C) task-oriented
D) authority-compliance

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

Correct Answer

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Path-goal theory assumes that leaders can change and adapt their leadership styles.

A) True
B) False

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Kendra is a retail manager at Shonder Corp. She needs to respond to customer complaints regarding a product and fix the problem. To do that, she has to decide on either scrapping the product or replacing it with a different brand. Based on the success and favorable online reviews of an alternate brand, she decides to switch to a different brand. In the context of the normative decision theory, which of the following decision styles has Kendra adopted in this scenario?


A) The AI decision style
B) The AII decision style
C) The CI decision style
D) The CII decision style

E) C) and D)
F) B) and C)

Correct Answer

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Steven is a manager at Kewl Gadgets. Calvin is Steven's least preferred subordinate because he finds it difficult to approach Calvin when it comes to collaborating and getting the work done. When asked by Steven's boss, he states that Calvin is complacent, unresponsive, and hostile. Therefore, Steven does not want to work with Calvin. In this scenario, Steven has a _____ leadership style.


A) relationship-oriented
B) country club
C) task-oriented
D) team management

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

Correct Answer

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Studies show that transactional leadership is much more effective on average than transformational leadership.

A) True
B) False

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In the context of leadership styles, relationship-oriented leaders with high Least Preferred Coworker (LPC) scores are better leaders:


A) in situations where they have no position power.
B) under moderately favorable situations.
C) when tasks are completely unstructured.
D) in highly unfavorable situations.

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

Correct Answer

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Colby, the chief executive officer of Max Group Hotels, recently appointed a new manager, Frank. Frank now has control over who is hired and who is asked to leave the company. In addition, he can appreciate the employees' hard work through rewards or reprimand them for poor performance. This scenario illustrates that Colby has a high _____.


A) position power
B) emotional intelligence
C) instrumentality
D) integrity

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

Correct Answer

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Sarah, a manager at Ackles Inc., plays pranks on her subordinates in an attempt to make the workplace livelier. She trusts her subordinates and does not care much about the quality of their work. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is Sarah using in this scenario?


A) The middle-of-the-road style
B) The country club style
C) The authority-compliance style
D) The impoverished style

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

Correct Answer

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_____ states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the routes to objectives and by increasing the number and kinds of rewards available for the attainment of objectives.


A) Contingency theory
B) Path-goal theory
C) Normative decision theory
D) Trait theory

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

Correct Answer

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Kyle is a strict boss. He is more concerned about the successful execution of tasks than the wellbeing of his employees. As a result, his employees are highly demotivated and often feel pressurized to complete their work. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is Kyle using in this scenario?


A) The middle-of-the-road style
B) The country club style
C) The authority-compliance style
D) The impoverished style

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

Correct Answer

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In the context of the kinds of charismatic leaders, ethical charismatics differ from unethical charismatics in that ethical charismatics _____.


A) seek out viewpoints on critical issues
B) avoid candid feedback
C) are the sole source of vision
D) want uncritical acceptance of their ideas

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

Correct Answer

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Anna is a team leader at Shine Design Inc. Gavin is her least preferred employee because he makes silly mistakes in his reports. However, Anna believes that he is a valuable resource to the company because he is sincere and hardworking. In this scenario, Anna has a(n) _____ leadership style.


A) relationship-oriented
B) authority-compliance
C) task-oriented
D) impoverished

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

Correct Answer

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In the context of the decision rules that the normative decision theory uses, which of the following is a similarity between autocratic and consultative decision styles?


A) Neither should be used when subordinates' goals are different from the organization's goals.
B) Neither should be used when subordinates lack enough information to make a decision.
C) Neither should be used when subordinates' acceptance of a decision is important and critical to successful implementation and subordinates are likely to disagree over the decision.
D) Neither should be used when the quality of a decision is important and the leader does not have enough information to make the decision on his or her own.

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

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According to late business professor Warren Bennis, leaders differ from managers in that leaders _____.


A) are concerned with doing the right thing
B) focus on productivity and efficiency
C) have a relatively short-term perspective
D) solve problems so that others can do their work

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

Correct Answer

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John is a manager at First Strike Technologies. He is lethargic and complacent. He cares very little about his job and his team members, usually assigns them less challenging work, and is indifferent to their lack of sincerity. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is John using in this scenario?


A) The middle-of-the-road style
B) The country club style
C) The authority-compliance style
D) The impoverished style

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

Correct Answer

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Abby's Designer Wear is a large boutique of designer clothes. Over the past year, the business slowed down, and the boutique started losing its popularity. Abigail, the boutique's owner, started an employee discussion board where employees shared their inputs on how the boutique could regain its popularity. After consulting the employees, Abigail launched a whole new collection of vintage wear that proved to be a sales success. Besides this, the employees felt happy that their inputs were taken into consideration. The leadership style that is illustrated in this scenario by Abigail is called _____.


A) supportive leadership
B) achievement-oriented leadership
C) participative leadership
D) directive leadership

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

Correct Answer

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In the context of the Blake/Mouton leadership grid, which of the following is a similarity between leaders using the team management leadership style and leaders using the authority-compliance leadership style?


A) Both have a low concern for production.
B) Both have a high concern for production.
C) Both have a high concern for people.
D) Both have a low concern for people.

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

Correct Answer

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Unlike directive leadership, supportive leadership is used when _____.


A) the formal authority system is clear
B) task structure is low
C) workers have an external locus of control
D) tasks are relaxing and varied

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

Correct Answer

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