2020-International Business Strategies BA405-Chapter 11 Answers PDF

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Strategic Management: Text and Cases, 9e (Dess) Chapter 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization 1) Three key interdependent strategic leadership activities are: designing the organization, determining its direction, and nurturing a culture dedicated to excellence and ethical behavior. Answer: TRUE Explanation: 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. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Bloom's: Understand AACSB: Knowledge Application Accessibility: Keyboard Navigation 2) Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become. Answer: TRUE Explanation: 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. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Bloom's: Understand AACSB: Knowledge Application Accessibility: Keyboard Navigation

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3) The tendency of many individuals to invest further in decisions providing positive performance feedback is referred to as escalation. Answer: FALSE Explanation: Many people have vested interests in the status quo. People tend to be risk averse and resistant to change. There is a broad stream of research on escalation, wherein certain individuals continue to throw good money at bad decisions despite negative performance feedback. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and using power effectively. Bloom's: Analyze AACSB: Knowledge Application Accessibility: Keyboard Navigation 4) Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information. Answer: FALSE Explanation: Behavioral barriers cause managers to look at issues from a biased or limited perspective due to their education, training, work experiences, and so forth. Political barriers refer to conflicts arising from power relationships. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and using power effectively. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 5) Leaders must draw on a range of personal skills as well as organizational mechanisms to move their organizations forward in the face of barriers to change. Answer: TRUE Explanation: Leaders must draw on a range of personal skills as well as organizational mechanisms to move their organizations forward in the face of such barriers to change. One of the most important tools a leader has for overcoming barriers to change is their personal and organizational power. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-02 Two elements of effective leadership: overcoming barriers to change and using power effectively. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

6) Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ). Answer: FALSE Explanation: The five components of EI are: self-awareness, self-regulation, motivation, empathy, and social skill. Findings indicate that EI is a better predictor of life success (economic well-being, satisfaction with life, friendship, family life), including occupational attainments, than IQ. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-03 The crucial role of emotional intelligence (EI) in successful leadership, as well as its potential drawbacks. Bloom's: Analyze AACSB: Knowledge Application Accessibility: Keyboard Navigation 7) Empathy, one of the components of emotional intelligence (EI), refers to personal proficiency in managing relationships and building networks. Answer: FALSE Explanation: Empathy means thoughtfully considering employee feelings, along with other factors, in the process of making intelligent decisions. Empathy is particularly important in the business environment today for at least three reasons: the increasing use of teams, the rapid pace of globalization, and the growing need to retain talent. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-03 The crucial role of emotional intelligence (EI) in successful leadership, as well as its potential drawbacks. Bloom's: Analyze AACSB: Knowledge Application Accessibility: Keyboard Navigation 8) People with strong self-awareness are overly critical and unrealistically optimistic and are well suited to run organizations because they will make good judgment calls. Answer: FALSE Explanation: Self-awareness involves a person having a deep understanding of his or her emotions, strengths, weaknesses, and drives. People with strong self-awareness are neither overly critical nor unrealistically optimistic. Instead, they are honest with themselves and others. People who assess themselves honestly (i.e., self-aware people) are well suited to do the same for the organizations they run. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-03 The crucial role of emotional intelligence (EI) in successful leadership, as well as its potential drawbacks. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

9) A key function of the leaders in a learning organization is to generate an organization-wide commitment to the status quo. Answer: FALSE Explanation: A learning environment involves organization-wide commitment to change, an action orientation, and applicable tools and methods. It must be viewed by everyone as a guiding philosophy and not simply as another change program. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-04 The importance of creating a learning organization. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 10) Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization. Answer: FALSE Explanation: Inspiring and motivating people with a mission or purpose is a necessary, but not sufficient, condition for developing an organization that can learn and adapt to a rapidly changing, complex, and interconnected environment. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-04 The importance of creating a learning organization. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation 11) Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive. Answer: FALSE Explanation: An important benefit of the sharing of internal information at Whole Foods becomes the active process of internal benchmarking. Competition is intense at Whole Foods. Teams compete against their own goals for sales, growth, and productivity; they compete against different teams in their stores; and they compete against similar teams at different stores and regions. There is an elaborate system of peer reviews through which teams benchmark each other. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-04 The importance of creating a learning organization. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

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12) Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds. Answer: TRUE Explanation: Ethics is as much an organizational as a personal issue. Leaders who fail to provide proper leadership to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds. Difficulty: 2 Medium Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-05 The leader's role in establishing an ethical organization. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 13) Ethical crises are bad for organization reputation, but they rarely have any financial consequences. Answer: FALSE Explanation: Ethical crises can be very expensive, both in terms of financial costs and in the erosion of human capital and overall firm reputation. Merely adhering to the minimum regulatory standards may not be enough to remain competitive in a world that is becoming more socially conscious. Difficulty: 2 Medium Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-05 The leader's role in establishing an ethical organization. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 14) 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. Answer: FALSE Explanation: Positive relationships generally have been found between ethical performance and strong organizational culture, increased employee efforts, lower turnover, higher organizational commitment, and enhanced social responsibility. Research has found somewhat inconsistent results concerning the overall relationship between ethical performance and measures of financial performance. Difficulty: 2 Medium Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-05 The leader's role in establishing an ethical organization. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 5 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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15) A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior. Answer: FALSE Explanation: Integrity-based ethics programs combine a concern for law with an emphasis on managerial responsibility for ethical behavior. It is broader, deeper, and more demanding than a legal compliance initiative. Difficulty: 2 Medium Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-06 The difference between integrity-based and compliance-based approaches to organizational ethics. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 16) There can be a high-integrity organization without high-integrity individuals. Answer: FALSE Explanation: There cannot be high-integrity organizations without high-integrity individuals; however, individual integrity is rarely self-sustaining. Difficulty: 2 Medium Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-06 The difference between integrity-based and compliance-based approaches to organizational ethics. Bloom's: Apply AACSB: Ethics Accessibility: Keyboard Navigation 17) In integrity-based ethics programs, organizational ethics is seen as the responsibility of the employees. Answer: FALSE Explanation: In integrity-based ethics programs, organizational ethics is seen as the responsibility of management. Difficulty: 2 Medium Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-06 The difference between integrity-based and compliance-based approaches to organizational ethics. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation

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18) If leaders do not believe in the ethical standards that they are trying to inspire, they will not be effective as good role models. Answer: TRUE Explanation: When leaders do not believe in the ethical standards that they are trying to inspire, they will not be effective as good role models. Being an effective leader often includes taking responsibility for ethical lapses within the organization, even though the executives themselves are not directly involved. Difficulty: 1 Easy Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-07 Several key elements that organizations must have to become ethical organizations. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 19) Codes of conduct help employees from diverse backgrounds to work more effectively across cultural backgrounds. Answer: TRUE Explanation: Corporate credos and codes of conduct are mechanisms that provide statements of norms and beliefs, as well as guidelines for decision making. They provide employees with a clear understanding of the organization policies and ethical position. Such guidelines also provide the basis for employees to refuse to commit unethical acts and help to make them aware of issues before they are faced with the situation. Difficulty: 2 Medium Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-07 Several key elements that organizations must have to become ethical organizations. Bloom's: Understand AACSB: Ethics Accessibility: Keyboard Navigation 20) Inappropriate reward systems may cause individuals to commit unethical acts. Answer: TRUE Explanation: A flaw in an organization reward structure may inadvertently cause individuals to act in an inappropriate manner, if rewards are seen as being distributed on the basis of outcomes, rather than the means by which goals and objectives are achieved. Difficulty: 3 Hard Topic: Leaders Role in Establishing a Firm's Ethical Climate Learning Objective: 11-07 Several key elements that organizations must have to become ethical organizations. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 8 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

21) Which of the following is an important characteristic of a leader? A) strives to maintain the status quo B) goal-oriented C) reactive D) focused on past performance Answer: B Explanation: Leadership is proactive, goal-oriented, and focused on the creation and implementation of a creative vision. 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. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 22) Which of the following statements about leadership is false? A) Leadership is focused on the creation and implementation of a creative vision. B) Leadership is the process of transforming organizations from what they are to what the leader would have them become. C) Leaders work to build a status quo and seek control mechanisms to maintain it. D) Effective implementation of strategy is essential for successful leadership. Answer: C Explanation: Leadership is proactive, goal-oriented, and focused on the creation and implementation of a creative vision. 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. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation

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23) Effective leadership is like a three-legged stool. Which of the following is not represented by one of the stool legs? A) maintaining the status quo B) nurturing a culture dedicated to excellence and ethical behavior C) setting a direction D) designing the organization Answer: A Explanation: Many authors contend that successful leaders must recognize three interdependent activities that must be continually reassessed for organizations to succeed. These activities include: (1) setting a direction, (2) designing the organization, and (3) nurturing a culture dedicated to excellence and ethical behavior. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Bloom's: Analyze AACSB: Knowledge Application Accessibility: Keyboard Navigation 24) 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 Answer: D Explanation: A strategic vision provides many benefits: a clear future direction; a framework for the organization mission and goals; and enhanced employee communication, participation, and commitment. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-01 The three key interdependent activities in which all successful leaders must be continually engaged. Bloom's: Analyze AACSB: Knowledge Application Accessibility: Keyboard Navigation

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25) Fisk Johnson is the fifth generation CEO of the family firm, SC Johnson. The combination of the ________, its ________, and its story-driven culture reinforce the willingness of the firm to lead the market in environmental awareness. A) ownership structure of the firm, strong leader B) listing of fragrances, financial awareness C) ownership structure of the firm, employee union D) employee participation, weak leadership Answer: A Explanation: The combination of the ownership structure of the firm, its strong leader, and its story-driven culture reinforce the willingness of the firm to lead the market in environmental awareness. For example, in early 2016, Fisk decided that SC Johnson would be the first firm to list 100 percent of the fragrance ingredients it uses. He saw this decision as a means to push itself and its rivals to use more environmentally friendly fragrance ingredients. Difficulty: 2 Medium Topic: Value of Strategic Leadership Learning Objective: 11-01 The th...