Question 1

The dyadic relationship dynamics of leader and follower influence the leadership process because:

Leader-member exchange (LMX) theory is a branch of situational leadership theory which posits that each
person should be treated as the leader would like to be treated.

 Leader should always treat each of their followers in the same, consistent way, in a homogeneous group.

Leader-member exchange (LMX) theory focuses on the quality of the dyadic relationship between a leader and
an individual. It argues that, because followers are uniquely different, leaders should establish a special
relationship with each of her or his followers, rather than treating followers as a homogeneous group.

Leader-member exchange (LMX) theory focuses on the quality of the dyadic relationship between a leader and
an individual. It argues that, because followers are all the same, leaders should establish a special relationship
with each of her or his followers, and treat them as a homogeneous group.

Question 2
Bill has been CEO of the global Chocolate Bear company for 15 years and it has just emerged that one of their
branch employees who Bill has never met before has been embezzling funds to support his gambling habit. The
ethos of the company is to provide treats for children and support local family charities and initiatives. The
company has previously had a squeaky clean image. Which of the following statements is the most accurate?

There is clearly a breach of reporting systems or oversight functions in the company and superiors should have
seen a red flag and will therefore be arrested.

In reality, the governing board is rarely held responsible for illegal behaviour, but the company may suffer bad
publicity.

Bill will be personally held responsible for this as he is CEO.

It has got nothing to do with Bill; he does not know the perpetrator, although he works closely with his
superiors.

Question 3
Turning to the limits of distributed and shared leadership theories, there are several issues to consider, one of
which is;
  There is debate among critical workplace scholars regarding the tendency of leadership researchers not to give
sufficient consideration of economic (i.e., profit or cost-reduction targets) imperatives and asymmetrical power
relations

The debate among critical workplace scholars regarding the tendency of leadership researchers not to give
sufficient consideration of economic (i.e., profit or cost-reduction targets) imperatives and asymmetrical power
relations has been rebutted by new theory.

Too much emphasis is given to economic imperative

Asymmetrical power relations are over emphasised

Question 4
Which of the statements below is most accurate?
Contingent reward is the only way to inspire followers.

A social contract binds leaders to do what they promised followers.

Transactional leadership is no basis for effective leadership, but extraordinary performance and loyalty is
possible by transformative leadership.

Transactional leadership provides the basis for effective leadership, but extraordinary performance and loyalty
is possible if augmented by transformative leadership.

Question 5
Transformational leadership is ______.

a psychological contract

a close cousin of transactional leadership

an exchange relationship in which leader and follower are engaged in some kind of agreement

not an exchange process but appeals to followers sense of values beyond their own self-interest for the good of
the organization

Question 6
Leaders role in innovation is best described by which choice below?

Leaders are always at the forefront of innovation, with little involvement from other levels of the firm.

Leaders do not facilitate innovation; it is driven bottom up from within the firm, far removed from the C-Suite.

Leaders direct innovation at the implementation stage only.

 Leaders influence innovation by creating enabling environments and setting goals and direction.

Question 7
 Leadership is different from management, and the following statements are true except:

Leaders encourage compliance, while Managers encourage empowerment.

Leaders operate at an emotional level, seeking to appeal to followers’ emotions, while Managers operate
logically and value rationality.

Leaders encourage empowerment, while Managers encourage compliance.

Leaders are change agents associated with vuja de, while Managers are change agents associated with déjà vu.

Question 8
 Each level of the strategy hierarchy requires different levels of leadership. Which of the statements below are
correct?

Corporate level strategy demands that leaders work daily to solve problems relating to the support of business
strategy.

Business level strategy is carried out by first level leadership to answer the question, “How
do we compete?”
Executive-level leaders are figureheads who do not get involved in strategy formulation.
Business level strategy is concerned with how functions such as HR and Finance operate.
Question 9
Which of the below statements is the most correct?
 Ethical leadership underscores that leaders should go beyond their self-interest.

Authentic, ethical and servant leadership theories address the role of leaders in creating ethical organizational
practices.

Authentic leadership is reported to create a culture of service and identification with an organization’s goals.

Servant leadership emphasises integrity and consistency between a leaders’ espoused value
and behaviour.
Question 10
In what way does the charismatic nature of transformative leadership present risks for organizations?

Leaders may take risks, unchallenged given their locus of power and obtain commitment from employees in an
insecure position

The leader has no economic power, only charisma.

Learning is always a positive and transformative leadership does not pose a risk.

Followers do not expect to follow based on rational-legal authority.

Question 11
Which statement below best describes early research on leadership trait theory?

The Big Five Personality Traits are statistically accurate at predicting the success of leaders, as quantitative
results establish a causal connection between traits and leadership effectiveness.

Trait theories of leadership focus on personal characteristics, or intellectual attributes that differentiate leaders
from non-leaders.

Leadership trait theory takes account of context, followership and social dimensions of class, gender and race,
as well as culture, and that is why it is enjoying a renaissance.

Trait theories of leadership focus on personal characteristics, or intellectual attributes that differentiate leaders
 from non-leaders but some weaknesses are; it does not account for context or followership.

Question 12
Ethical behaviour in work organisations can be assessed according to five criteria which are ______.

animals, environment, people, politics and suitability

animals, forests, staff, oceans and plastic use

animals, environment, people, politics and sustainability

processes, tools, people, employees and stakeholders

Question 13
Ethical leadership has two clear schools of thought, which are ______.

Ethics are only for those who get caught and ethics are intrinsic to good business
the transactional one where leaders ‘have’ ethics and the philosophical view where conditions for success must
be provided by leaders and ethics are ‘managed’

the philosophical one where leaders ‘have’ ethics and the behaviourist/transactional view where conditions for
success must be provided by leaders and ethics are ‘managed’

Ethical leaders must be transactional leaders by definition

Question 14
Pick the best answer from below. Contemporary leaders will need to take into account issues such as ______.

AI and digitisation

HRM, digitisation and AI

organisational culture only as this is the only thing a leader can control

organisational culture, HRM, digitisation and AI

Question 15
Charismatic leadership is best described as ______.

something you are just born with

a leader-centric perspective, when leaders communicate, they can reassure, inspire and alter followers
perceptions of change

a style that can be used when there is stability and followers can clearly identify with the leader

a positive way for leaders to engage followers through their natural or learned charismatic qualities

Question 16
 Tom is undergoing a strategy reformulation after recognising that a new competitor has arrived in his market.
He wants to utilise a framework that will allow an understanding of the firm’s internal environment. Which of
the following choices would you advise as the most appropriate?  

SWOT
STEEPLE
PRIMO-F

PESTLE
Question 17
Which statement below is the best description of follower-centric approaches to understanding leader-follower
relations and the leadership process?

Follower-centric approaches rebut the opinion that followers’ self-concept directly influences the leader-
follower relationship and effectiveness, as there is no interdependent relationship.

Follower-centric approaches explore traits and behaviours of leaders.

Follower-centric approaches cultivates the opinion that followers’ self-concept directly influences the leader-
follower relationship and effectiveness, as there is an interdependent relationship.

Follower-centric approaches look at the traits and behaviours of followers only.

Question 18
Organizational leadership is a process of influencing within an employment relationship involving
ongoing human interaction with others wherein those others consent to achieve a goal. 

Which of the following statement describes the above definition incorrectly?

Leadership is influencing each other directly and indirectly within a formal structure of organization.

The style of leadership adopted is affected by the actions embedded in a system of both cooperation and structural
conflict.

The influence process only applies to those with rankings in the organizational hierarchy.

The aim of leadership is ultimately to reach a desired outcome, and its success is measured by the goal’s
effectiveness.

Question 19
Matt is a lecturer and explaining a theory to his class by Fiedler. The theory states that a leader’s situation has
three dimensions: task structure, position power, and leader-member relations, based on which the state is either
favourable or unfavourable for the leader. Which theory is he referring to?

Great Man Theory

Trait theory

Path Goal Theory

Least Preferred Co-Worker Theory

Question 20
Distributed leadership is:

A model where managers who tell subordinates the goals of the leader.
The notion that managers can never have more power if they devolve some power to a unit or team leader or,
indeed, other employees not formally designated as leaders in the organization

Not successful because people inevitably need direction and structure, or else chaos ensues, or people
underperform through laziness.

The notion that managers can actually have more power if they devolve some power to a unit or team leader
or, indeed, other employees not formally designated as leaders in the organization.