Strategic Management Text And Cases 8th Edition By Mcnamara – Test Bank

Overview

Chapter 11
Strategic Leadership: Creating a Learning Organization and an Ethical Organization Answer Key

True/false

1. Three key interdependent strategic leadership activities are: designing the organization, determining its direction, and nurturing a culture dedicated to excellence and ethical behavior.

TRUE
Many authors contend that successful leaders must recognize three interdependent activities that must be continually reassessed for organizations to succeed. These are: (1) setting a direction, (2) designing the organization, and (3) nurturing a culture dedicated to excellence and ethical behavior.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 1 Easy
Topic: Leadership: Three Interdependent Activities

2. Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.

TRUE
A holistic understanding of the organization stakeholders requires an ability to scan the environment to develop knowledge of all of the company stakeholders and other salient environmental trends and events. Managers must integrate this knowledge into a vision of what the organization could become.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 1 Easy
Topic: Leadership: Three Interdependent Activities

3. Designing the organization is the leadership activity that involves building structures, teams, systems, and processes that facilitate the implementation of leader vision.

TRUE
When designing the organization, successful leaders are actively involved in building structures, teams, systems, and organizational processes that facilitate the implementation of their vision and strategies.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 1 Easy
Topic: Leadership: Three Interdependent Activities

4. Leaders play an important role in sustaining organization culture, but they are powerless to change it.

FALSE
Leaders play a key role in changing, developing, and sustaining organization culture.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 2 Medium
Topic: Leadership: Three Interdependent Activities

5. Leaders are not expected to accept personal responsibility for ethical behavior in an organization, because ethics is a matter of individual choice.

FALSE
Managers and top executives must accept personal responsibility for developing and strengthening ethical behavior throughout the organization. They must consistently demonstrate that such behavior is central to the vision and mission of the organization.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 2 Medium
Topic: Leadership: Three Interdependent Activities

6. Leadership is the process of transforming organizations from what they are to what the leader would have them become. This implies that there will be a lot of satisfaction with the status quo.

FALSE
Leadership is the process of transforming organizations from what they are to what the leader would have them become. This definition implies a lot: dissatisfaction with the status quo, a vision of what should be, and a process for bringing about change.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 2 Medium
Topic: Leadership: Three Interdependent Activities

7. Hypercompetition suggests that sustainable competitive advantages are no longer possible because all of the dimensions of competition are compressed in time and heightened in complexity.

TRUE
Richard D’Aveni, author of Hypercompetition, argued that in a world where all dimensions of competition appear to be compressed in time and heightened in complexity, sustainable competitive advantages are no longer possible.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 2 Medium
Topic: Leadership: Three Interdependent Activities

8. Leaders may find it difficult to implement their vision and strategies because they have inadequate or inappropriate budgeting and control systems.

TRUE
At times, almost all leaders have difficulty implementing their vision and strategies. Such problems may stem from a variety of sources including inadequate or inappropriate budgeting and control systems.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 2 Medium
Topic: Leadership: Three Interdependent Activities

9. A strategic vision provides a clear future direction for the firm, a framework for its mission and goals, and enhanced employee communication, participation, and commitment.

TRUE
This necessitates the capacity to solve increasingly complex problems, become proactive in approach, and develop viable strategic options. A strategic vision provides many benefits: a clear future direction; a framework for the organization’s mission and goals; and enhanced employee communication, participation, and commitment.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged.
Level of Difficulty: 1 Easy
Topic: Leadership: Three Interdependent Activities

10. In order for a firm to become highly ethical, it needs corporate credos and codes of conduct.

FALSE
Several elements must be present and reinforced for a firm to become highly ethical, including role models, corporate credos and codes of conduct, reward and evaluation systems, and policies and procedures.