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

A) True
B) False

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Leaders who are _______________ show a passion for the work itself,such as seeking out creative challenges,a love of learning,and taking pride in a job well done.


A) self-aware
B) self-regulators
C) socially skilled
D) motivated

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

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Methods used for ethics management in a compliance-based approach include education,reduced discretion,auditing and controls,and penalties.

A) True
B) False

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

A) True
B) False

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Organizational learning works best when an organization leader gathers information and teaches it to employees who are like their students.

A) True
B) False

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A highly ethical organization must have all of the following elements except


A) codes of conduct.
B) corporate credos.
C) payment plans.
D) role models.

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

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The source of referent power is


A) subordinate identification with the leader.
B) leader identification with the subordinates.
C) derived from the fact that the manager can potentially act as a reference when the employee applies for another job.
D) derived from manager ability to provide effective incentives to employees.

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

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Many situations that a firm faces have regular,identifiable patterns.Leaders tend to handle such routines by establishing ______ or ___________ to be followed that can be applied _______________ to each occurrence.


A) rules; regulations; individually
B) policies; regulations; uniformly
C) a policy; a procedure; uniformly
D) documents; credos; uniquely

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

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Which of the following does not constitute organizational bases of leader power?


A) legitimate power
B) reward power
C) referent power
D) coercive power

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

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Functional benchmarking


A) is not very useful for organizations with a divisional organizational structure.
B) endeavors to determine best practices regardless of industry.
C) restricts the search for best practices to competitors.
D) is useful when researching industry-specific standards.

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

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Compliance-based ethic programs typically are designed by


A) management.
B) employees.
C) shareholders.
D) corporate counsel.

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

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Unethical business practices typically involve the _______ cooperation of others and reflect the values,attitudes,and behavior patterns that define the operating culture of the organization.


A) select
B) complete
C) explicit
D) tacit

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

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The CEO scraps the company commission-based reward system,because it rewards employees for inappropriate behavior.This is an example of


A) setting a direction.
B) designing the organization.
C) unethical behavior.
D) failure to maintain the status quo.

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

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Socially skilled people tend to have a wide circle of acquaintances as well as a knack for finding common ground and building support.This means that they are less likely to be effective in leading change or in having expertise in building and leading teams.

A) True
B) False

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Companies that cultivate cultures of experimentation and curiosity make sure that ______________ is not,in essence,to be avoided at all costs.


A) experimentation
B) failure
C) authority
D) risk taking

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

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Which of the following does not explain why organizations are prone to inertia and slow to change?


A) personal time constraints
B) political barriers
C) vested interests in the status quo
D) entry barriers

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

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Codes of conduct help employees from diverse backgrounds to work more effectively across cultural backgrounds.

A) True
B) False

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Texas Instruments teaches ethics to its employees.They include all levels of the organization in the exchange of knowledge and auditing of behaviors.This is a good example of a(n) ____________ ethics program.


A) compliance-based
B) integrity-based
C) conformance-based
D) behavioral-based

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

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Barriers in which the design of organization structure,information processing,and reporting relationships,impede the proper flow and evaluation of information are known as


A) systemic barriers.
B) behavioral barriers.
C) political barriers.
D) barriers to entry.

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

Correct Answer

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Which of the following is an important characteristic of a leader?


A) satisfied with the status quo
B) goal-oriented
C) reactive
D) focused on past performance

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

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