About This Chapter
This topic covers important exam questions based on key concepts such as the passive management-by-exception, the situational leadership theory, the substitutes for leadership model, the transactional leaders, and the transformational leadership. It features multiple choice practice questions as well as True or False questions with explanations, designed to evaluate your understanding and enhance exam readiness. An answer key is provided for self-assessment and review. The learning objectives include: How does transformational leadership differ from transactional leadership, and which behaviors set it apart? What two dimensions capture most of the day-to-day leadership behaviors in which leaders engage? How does leadership affect job performance and organizational commitment?
Question 1

Kenya believes that there are no actions needed until she receives complaints about someone's performance. Which of the following styles of leadership is Kenya following?

  • laissez-faire leadership
  • transactional leadership
  • passive management-by-exception
  • contingent reward
  • transformational leadership
Correct Answer: passive management-by-exception
Explanation:

With passive management-by-exception, the leader waits around for mistakes and errors and then takes corrective action as necessary.

Glossary:

Passive Management-By-Exception: When the leader waits around for mistakes and errors, then takes corrective action as necessary.

Question 2

Kazue works in a department store. She has noticed that several of her coworkers avoid interacting with customers, take a lot of smoke breaks, and leave their sales areas messy and disorganized. When she discusses the situation with her manager, Rob, he says he will do something about it, but he does not. In fact, nothing changes until several customers file complaints in the space of a single week, at which point Rob takes disciplinary measures toward two of his employees. Rob is demonstrating

  • laissez-faire leadership.
  • transactional leadership.
  • contingent reward leadership.
  • active management-by-exception.
  • passive management-by-exception.
Correct Answer: passive management-by-exception.
Explanation:

With passive management-by-exception, the leader waits around for mistakes and errors and then takes corrective action as necessary.

Glossary:

Passive Management-By-Exception: When the leader waits around for mistakes and errors, then takes corrective action as necessary.

Question 3

Situational leadership theory is well supported by many scientific studies.

True
False
Correct Answer: False
Explanation:

Actually, the application of the theory has outpaced scientific testing, and the shifting nature of its terminology and predictions has made scientific testing somewhat difficult. The theory's predictions have only been supported in low readiness situations.

Glossary:

Leadership: The use of power and influence to direct the activities of followers toward goal achievement.

Question 4

Neutralizers reduce the importance of the leader while providing a direct benefit to employee performance.

True
False
Correct Answer: False
Explanation:

Neutralizers reduce the importance of the leader, but they themselves have no beneficial impact on performance.

Glossary:

Neutralizers: Situational characteristics that reduce the importance of the leader and do not improve employee performance in any way.

Question 5

Phyllis and her coworkers hardly ever talk to their boss Courtney. In fact, they only see her once or twice a day. Nevertheless, their department generally chugs along like a well-oiled machine thanks to the extremely structured nature of their work. They use a software system that tracks their time, guides them through each step of their workday, and even contains a help guide that addresses almost every conceivable problem that could arise. Everyone knows what their job is and what is expected of them. The software system acts as a(n)

  • replacement.
  • neutralizer.
  • augmenter.
  • substitute.
  • accessory.
Correct Answer: neutralizer.
Explanation:

According to the substitutes for leadership model, neutralizers only reduce the importance of the leader; they themselves have no beneficial impact on performance. For example, spatial distance lessens the impact of a leader's behaviors and styles, but distance itself has no direct benefit for employee job performance.

Glossary:

Neutralizers: Situational characteristics that reduce the importance of the leader and do not improve employee performance in any way.

Question 6

JoBeth works at a nonprofit organization whose goals she feels very in tune with. Having said that, she does not especially care for her boss, and neither do most of the other employees in her department. JoBeth finds Rani an unimaginative, inefficient, and personally unappealing boss, who makes things harder than they have to be and has unpleasant habits. However, JoBeth loves working with her team. They all get along well and do a lot to support each other. She feels deeply motivated by and invested in her team's goals. JoBeth's team is an effective

  • neutralizer.
  • benefactor.
  • substitute.
  • motivator.
  • satisficer.
Correct Answer: substitute.
Explanation:

Substitutes reduce the importance of the leader while simultaneously providing a direct benefit to employee performance.

Glossary:

Substitutes: Situational characteristics that reduce the importance of the leader while simultaneously providing a direct benefit to employee performance.

Question 7

Which of the following reduces the importance of the leader with no beneficial impact on performance?

  • substitutes
  • transactions
  • training programs
  • neutralizers
  • enhancers
Correct Answer: neutralizers
Explanation:

Neutralizers only reduce the importance of the leader; they themselves have no beneficial impact on performance.

Glossary:

Neutralizers: Situational characteristics that reduce the importance of the leader and do not improve employee performance in any way.

Question 8

________ reduce the importance of the leader while simultaneously providing a direct benefit to employee performance.

  • Substitutes
  • Directive styles
  • Transactional styles
  • Neutralizers
  • Enhancers
Correct Answer: Substitutes
Explanation:

Substitutes reduce the importance of the leader while simultaneously providing a direct benefit to employee performance.

Glossary:

Substitutes: Situational characteristics that reduce the importance of the leader while simultaneously providing a direct benefit to employee performance.

Question 9
Multiple Choice
Medium
Transactional leaders Exam

Cary just announced to his employees that if they meet the sales goal for the month of August, they can have a paid four-day vacation. Which of the following styles of leadership is being used by Cary in this case?

  • laissez-faire
  • contingent reward
  • passive management-by-exception
  • active management-by-exception
  • transformational
Correct Answer: contingent reward
Explanation:

Contingent reward represents a more active and effective brand of transactional leadership, in which the leader attains follower agreement on what needs to be done by using promised or actual rewards in exchange for adequate performance.

Glossary:

Contingent Reward: When the leader attains follower agreement on what needs to be done using rewards in exchange for adequate performance.

Question 10
Multiple Choice
Easy
Transactional leaders Exam

With ________, the leader arranges to monitor mistakes and errors dynamically and takes corrective action when required.

  • laissez-faire leadership
  • contingent reward leadership
  • passive management-by-exception
  • active management-by-exception
  • transformational leadership
Correct Answer: active management-by-exception
Explanation:

With active management-by-exception, the leader arranges to monitor mistakes and errors actively and takes corrective action when required.

Glossary:

Active Management-By-Exception: When the leader arranges to monitor mistakes and errors actively and takes corrective action when required.

Question 11

Transformational leadership represents the carrot-and-stick approach to leadership.

True
False
Correct Answer: False
Explanation:

Transactional leadership represents the "carrot-and-stick" approach to leadership, with management-by-exception providing the "sticks" and contingent reward supplying the "carrots."

Glossary:

Transformational Leadership: A pattern of behavior where the leader inspires followers to commit to a shared vision that provides meaning to their work while also serving as a role model who helps followers develop their own potential and view problems from new perspectives.

Question 12
Multiple Choice
Medium
Transactional leaders Exam

Which of the following represents the carrot-and-stick approach to leadership?

  • laissez-faire leadership
  • passive-avoidant leadership
  • transactional leadership
  • charismatic leadership
  • transformational leadership
Correct Answer: transactional leadership
Explanation:

Transactional leadership represents the "carrot-and-stick" approach to leadership, with management-by-exception providing the "sticks" and contingent reward supplying the "carrots."

Glossary:

Transactional Leadership: A pattern of behavior where the leader rewards or disciplines the follower based on performance.

Question 13
Multiple Choice
Medium
Transformational leadership Exam

________ involves behaving in ways that help followers achieve their potential through coaching, development, and mentoring.

  • Laissez-faire leadership
  • Inspirational motivation
  • Transactional leadership
  • Intellectual stimulation
  • Individualized consideration
Correct Answer: Individualized consideration
Explanation:

Individualized consideration involves behaving in ways that help followers achieve their potential through coaching, development, and mentoring.

Glossary:

Individualized Consideration: When the leader behaves in ways that help followers achieve their potential through coaching, development, and mentoring.