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Coercive power is the


A) power exercised by use of fear of punishment for errors of omission or commission by employees.
B) power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates.
C) arises from manager access, control, and distribution of information that is not freely available to everyone in an organization.
D) ability of the leader or manager to confer rewards for positive behaviors or outcomes.

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

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Ethical crises are bad for organization reputation,but they rarely have any financial consequences.

A) True
B) False

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A strategic vision provides many benefits.Which of the following is not one of those benefits?


A) a clear future direction
B) a framework for their organization mission and goals
C) enhanced employee communication and commitment
D) the ability to influence the environment of the firm

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

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Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive.

A) True
B) False

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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 B)
F) A) and C)

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There can be a high-integrity organization without high-integrity individuals.

A) True
B) False

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Explain why the leadership activities of (1)setting a direction,(2)designing the organization,and (3)nurturing a culture dedicated to excellence and ethical behavior are independent.

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Leaders are change agents whose success ...

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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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Raytheon,a 24 billion USD defense contractor,incorporated into its Leadership Assessment Instrument the requirement of managers to maintain unequivocal commitment to honesty,truth and ethics in every facet of behavior and to conform with the letter and intent of company policies while working to affect any necessary policy change.This is an example of a


A) 360-degree evaluation.
B) leadership training program.
C) reward and evaluation system that evaluates manager ethical behavior.
D) reward system that evaluates bottom line performance.

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

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A strong ethical orientation can have ________ on employee commitment and motivation to excel.


A) mitigating results
B) a positive effect
C) a negative impact
D) an expensive outcome

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

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Choose the best answer: Leaders play a key role in developing and sustaining organization


A) the status quo.
B) culture.
C) reporting relationships.
D) rules and regulations.

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

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The central key to empowerment in a learning organization is


A) trained employees.
B) effective leadership.
C) sufficient financial resources.
D) rigid structure.

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

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For a firm to become a highly ethical organization,it must have several key elements: role models; corporate credos and codes of conduct; reward and evaluation systems; and policies and procedures.Explain briefly each of these elements.

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Leaders are role models in their organiz...

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Empathy,one of the components of emotional intelligence (EI),refers to personal proficiency in managing relationships and building networks.

A) True
B) False

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According to the textbook,________ and ________ must accept personal responsibility for developing and strengthening ethical behavior throughout the organization.


A) bankers, employees
B) employees, external stakeholders
C) managers, top executives
D) managers, stockholders

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

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While carefully developed policies and procedures guide behavior,they need to be reinforced with all the following except


A) effective communication.
B) enforcement.
C) monitoring.
D) threats of dismissal.

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

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The tendency of many individuals to invest further in decisions providing positive performance feedback is referred to as escalation.

A) True
B) False

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Former GVO marketing director,David Lieberman,tells a story about a new product idea proposed by a creative person.The idea was loved by everyone except a high-ranking manufacturing representative who rejected the idea because the new proposal involved a color change which he implied would create a spare-parts problem.Because his experience in manufacturing involved cost cutting,lean inventories and focus,he could not conceive of how this new product proposal would be good for innovation.This is an example of what kind of organizational barrier?


A) vested interests in the status quo
B) personal time constraints
C) behavioral barrier
D) systemic barrier

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

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Which of the following is not a guideline an organization can use to promote the challenging of the status quo?


A) establishing a culture of dissent
B) forcefully creating a sense of urgency
C) fostering a culture that encourages risk taking
D) creating a results-based reward system

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

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Research supports that there are many potential benefits of an ethical organization,including that there is a strong and consistent relationship between ethical performance and measures of financial performance.

A) True
B) False

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