MGMT TEST 2- SIMOON CANON

Authority typically is associated with a particular

person rather than a particular position.

person rather than a particular department.

department rather than a particular team.

position rather than a particular person.

department rather than a particular person

position rather than a particular person.

Explanation

Traditionally, authority resides in positions more than in people. The job of vice president of a division has authority over that division, regardless of how many people come and go in that position and who currently holds it.

The ________blank dimension of an organization's structure refers to issues as reporting relationships, authority, responsibility, and related ideas.

lateral

transcendental

vertical

unilateral

horizontal

vertical

Explanation

To understand issues such as reporting relationships, authority, responsibility, and the like, we need to begin with the vertical dimension of a firm’s structure.

For years, Kathleen served as head of the research and development (R&D) department at Bannerman Pharmaceuticals in Chicago. She enjoyed enormous support from her team, who liked her personally and respected her professionally. Now she has retired, and her place has been taken by Jerome from Bannerman's Cleveland facility. Yet employees continue to sidestep Jerome and come directly to Kathleen for guidance, calling or emailing her at home with questions. What is her best course of action?

to let employees know that she wishes she were still in charge, but Jerome is their boss now, and there is nothing anyone can do about that fact

to call Jerome and offer some advice regarding the techniques she has developed over the years for winning and keeping employees' loyalty

to continually direct her former direct reports to Jerome while emphasizing the fact that, as the new director of R&D, he has authority over, and responsibility for, the team

to let team members know that failure to respect Jerome will be regarded as a breach of protocol, and that they should no longer contact her

to willingly offer guidance to her former direct reports, as well as her replacement, and encourage them to involve her in settling any disputes

to continually direct her former direct reports to Jerome while emphasizing the fact that, as the new director of R&D, he has authority over, and responsibility for, the team

Explanation

Traditionally, authority resides in positions more than in people. The job of R&D director has authority over that department, regardless of how many people come and go in that position or who currently holds it.

Lawrence and Lorsch found that highly differentiated firms were successful if they had ________blank levels of integration.

increasing

varied

minimal

high

moderate

high

Explanation

Lawrence and Lorsch found that highly differentiated firms were successful if they also had high levels of integration. Organizations are more likely to fail if they exist in complex environments and are highly differentiated but fail to integrate their activities adequately.

It is generally accepted that having fewer hierarchical levels creates greater operating efficiency.

true or false

true

Explanation

A powerful trend for U.S. businesses over the past few decades has been to reduce the number of hierarchical layers. Most executives today believe that fewer layers create a more efficient, fast-acting, and cost-effective organization.

Dante, an operations manager at Therma-Pro Insulation, has been put on a big project with a tight deadline. He distributes half the work to two other supervisors, taking care of the bigger aspects of the project himself. This is an example of

unity of command.

specialization.

delegation.

differentiation.

span of control.

delegation.

Explanation

Delegation is the assignment of authority and responsibility to a direct report at a lower level. It often requires that the direct report answer back to his or her boss about how effectively the assignment was carried out.

Andrea delegates an important project to José. Andrea tells José that he must give her regular reports. Andrea also tells José that she will take over the work if José falls behind or does not produce quality results. This is an example of

differentiation.

authority.

subordination.

hierarchy.

accountability.

accountability.

Explanation

Accountability means the direct report’s manager has the right to expect the direct report to perform the job and the right to take corrective action if the direct report fails to do so.

Franz wants to balance the strategic triangle for his company. To do this, he must consider the company, the customer, and the

government.

suppliers.

board of directors.

shareholders.

competition.

competition.

Explanation

Any business unit must take into account at least three core players in the strategic triangle: the company itself, the competition, and the customer.

The advantages of a small organization include

easier access to capital.

scale economies.

being able to move fast.

lower proportional operating costs.

greater purchasing power.

being able to move fast.

Explanation

Size creates scale economies—that is, lower costs per unit of production. Greater size can offer specific advantages such as lower operating costs, greater purchasing power, and easier access to capital. In contrast, smaller companies can move fast, provide quality goods and services to targeted market niches, and inspire greater involvement from their people.

Cameron wants to improve her customer service department by using information technologies to create two-way conversations with customers to gain more knowledge of their wants and preferences. Cameron wants to institute ________blank management.

computer-integrated

customer relationship

just-in-time

mass customization

total quality

customer relationship

Explanation

Customer relationship management (CRM) is a multifaceted process, typically using information technologies, that fosters two-way exchanges with customers so that firms know “intimately” their needs, wants, and buying patterns. Firms acquire this knowledge by applying predictive analytical techniques to the voluminous data (big data) collected from customers. The goal of this analysis is to identify patterns from current and historical data

Goal! Sportswear, a maker of clothing for soccer players, buys textiles made in South Asia, which are then sewn into jerseys, shorts, and other items of sportswear at factories in East Asia. Recently, Darius, the company president, has received a large volume of negative emails from customers concerned with allegations of unfair labor practices at these facilities, and therefore the company is reviewing its entire process. Darius has appointed Millie, Avi, and Asher, three company managers, to assess the company's choices as to textile suppliers and production facilities and to examine what the customers—both amateur and professional soccer players—are looking for in the company's products.

When Millie reviews the process of producing the actual sportswear, the part of the value chain she is most likely to look at is

outbound logistics.

inbound logistics.

research and development.

marketing and sales.

operations.

operations

Explanation

A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step. Operations constitute a step in this sequence that deals with transforming the raw materials into final product.

With the cost of warehouse space and maintaining inventory increasing, Parker has decided to change the operation of his company to a "just-in-time" (JIT) mode, whereby manufacturing is initiated only upon customer order and only in very small lots, minimizing the company's warehouse and inventory costs. However, Parker is nervous about the change because he knows that JIT offers costs savings only when the costs of storing product are greater than the costs of

managing TQM.

making large batches.

delivering inventory.

making small batches.

reworking inventory.

delivering inventory.

Explanation

In just-in-time (JIT) operations, subassemblies and components are manufactured in very small lots and delivered to the next stage in the process precisely at the time needed (just in time). A customer order triggers a factory order and the production process. The supplying work centers do not produce the next lot of product until the consuming work center requires it. Even external suppliers deliver to the company just in time. But JIT has limits. It’s not the most efficient choice when the costs of delivery exceed the costs of storage. And if suppliers have trouble fulfilling orders, the whole system breaks down. JIT requires close ties with suppliers, so finding ready replacements can be difficult.

The mechanistic organization emphasizes flexibility and is less rigid than the organic structure.

True or False

False

Explanation

The organic structure stands in stark contrast to the mechanistic organization. It is much less rigid and, in fact, emphasizes flexibility.

Which of the following statements about types of economies is true?

An organization's small size often creates scale economies but not economies of scope.

An organization's small size often creates scale economies and economies of scope.

An organization's large size often creates economies of scope but not scale economies.

An organization's large size often creates scale economies but not economies of scope.

An organization's large size often creates scale economies and economies of scope.

An organization’s large size often creates scale economies and economies of scope.

Explanation

Size creates scale economies—that is, lower costs per unit of production. Size can offer specific advantages such as lower operating costs, greater purchasing power, and easier access to capital. Size also creates economies of scope; materials and processes employed in one product can be used to make related products.

Ricardo is the owner of Mex Magic, a chain of restaurants serving reasonably priced Mexican food with fresh, healthy ingredients. He has discovered that the rising price of avocados and some of the other fresh produce the restaurants use has been driving down profits. Customers have come to expect high-quality ingredients for a low price, and Mex Magic's marketing research has shown that the upscale interior of the stores, along with its great customer service, are a big draw. The feedback has also shown that a large percentage of the customers come with children. If Mex Magic is to be truly responsive to its market environment while maximizing profits, Ricardo should

consider removing menu items that rely heavily on fresh ingredients.

add child-friendly entrees that include fries or chips instead of guacamole.

expand the bar so as to draw in more adult customers, with or without children.

reduce the waitstaff, as well as the number of cashiers, in order to lower payroll costs.

adapt to the rising cost of avocados by raising the price of guacamole on the menu.

add child-friendly entrees that include fries or chips instead of guacamole.

Explanation

The formal structure of an organization is put in place to control people, decisions, and actions. But in today’s fast-changing business environment, responsiveness—quickness, agility, the ability to adapt to changing demands—is vital to a firm’s survival. Implementing measures that appeal to his customer base, which includes many families with children, is a smarter choice for Ricardo than simply cutting costs on avocadoes or other components of the restaurant’s overhead.

A ________blankorganization can often create scale economies and economies of scope, which leads to advantages such as lower operating costs, greater purchasing power, and easier access to capital.

large

small

mass customized

high agility

highly flexible

large

Explanation

Size creates scale economies—that is, lower costs per unit of production. Size can offer specific advantages such as lower operating costs, greater purchasing power, and easier access to capital. Size also creates economies of scope.

The top management of EatWell, a snack food manufacturer, sits down for an annual meeting. The chairperson, Janelle, wants to create processes that will help the company interact with customers and gather knowledge of their wants, needs, and buying patterns. She also wants to improve internal quality management by using some ideas from Deming's "14 points" theory. The president of the company, Lee, wants to use an approach to management that helps to attain customer satisfaction through tools that deliver high-quality goods. The senior managers put forward the idea that the organization should adopt a method to analyze the causes of defects in products that need to be eliminated to improve customer satisfaction.

In order to fulfill senior management's aim of adopting a method to analyze the causes of defects in products that need to be eliminated to improve customer satisfaction, the company might consider a quality initiative such as

logistics.

six sigma.

benchmarking.

downsizing.

just-in-time.

six sigma.

Explanation

Six sigma quality is a method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction.

The human resources department of Spark Media makes use of its employee database to analyze its past rates of turnover, terminations, and retirements. The company is looking at its ________blank labor supply.

internal

external

potential

excess

past

internal

Explanation

Turnover, terminations, retirements, promotions, and transfers determine internal, not external, labor supply. A computerized human resources information system assists greatly in supply forecasting.

Liana and Rosario are entrepreneurs who started Deliverables, an online company that curates, assembles and delivers "unique, customized gift baskets for busy people." The company has been so successful that Liana and Rosario recently opened a brick-and-mortar shop in their large city, which they need to fully staff within the next month. Along with Yiannis, their HR Manager, they have determined how many people they need and what skills those people need to have. They have also looked at workforce trends and the information they have regarding available workers already with the company, and have determined that they need to hire additional employees from outside the company to meet their needs. Liana and Rosario are ready to start accepting applications and interviewing candidates, but Yiannis tells them there is one last step to complete before they are ready to start the recruitment process. Which of the following remains to be done?

Yiannis needs to conduct a demand forecast for their city and present the results.

Rosario and Liana need to conduct job analyses and write descriptions for each position.

Rosario needs to research their current workforce via an integrated social media campaign.

Yiannis needs to conduct background checks on potential applicants for each position.

Liana needs to conduct research on Betsy's Baskets, their biggest competitor in the area.

Rosario and Liana need to conduct job analyses and write descriptions for each position.

Explanation

The HR planning process occurs in three stages: planning, programming, and evaluating. First, to ensure that the right number and types of people are available, HR managers need to know the organization’s business plans: where the company is headed, the mix of businesses and the industries they will compete in, expected future growth, and so forth. To do this, companies use demand forecasts, which determine how many and what types of people are needed; conduct labor supply forecasts, which determine how many and what types of employees are available to do the work and are done internally by looking at data about turnover, terminations, retirements, promotions, and transfers, and externally by looking at workforce trends; reconcile supply and demand; and conduct job analyses. Rosario, Liana, and Yiannis have completed the first three elements of this process but have not yet done job analyses or written job descriptions.

Happy Home Consultants is a growing company that helps city homeowners tackle a variety of home improvements. It plans to expand its business to work with homeowners in several nearby suburbs and to add personnel to help negotiate favorable pricing with local hardware stores for equipment and building supplies. The human resources (HR) department compared the company's current staffing with the number and type of employees the company would need to carry out its business plans. The department also looked into how to obtain new employees. It concluded that the company would need to hire eight new handypersons and a contractor while retaining all its current employees. The department gained approval to begin recruiting workers and to revise the pay system. Now the HR department is beginning a formal process to evaluate how well its plans for recruitment and staff retention are going.

Which of the following stages of the HR planning process was the HR department involved in when it implemented recruitment and pay-system revisions?

monitoring

delivering

directing

programming

budgeting

programming

Explanation

The HR planning process occurs in three stages, as shown in Exhibit 10.1. The second is programming. In this stage, the organization implements specific human resources activities, such as recruitment, training, and pay systems.

Which of the following statements is true about a 360-degree appraisal?

It involves using a single source for appraisal information.

It often misses qualities that other appraisal methods capture.

Usually, feedback is obtained only from top-level managers.

Its objective is to provide a basis for administrative decisions.

Often, the person being rated can select the appraisers.

Often, the person being rated can select the appraisers

Explanation

In a process known as 360-degree appraisal, feedback is obtained from every level involved with the employee: subordinates, peers, and superiors. Often the person being rated can select the appraisers.

Two years ago, Maribel hired 15 new people into her department. Since their hire, they have undergone training, development, performance appraisals, and compensation review/reward. Now it is time to evaluate ________blank, in terms of productivity, quality, innovation, satisfaction, turnover, absenteeism, health, and other factors.

controls

programming

planning

methods

results

results

Explanation

Human resources activities are evaluated to determine whether they are producing the results needed to contribute to the organization’s business plans, in terms of productivity, quality, innovation, satisfaction, turnover, absenteeism, health, and other factors.

Which of the following is one of the concerns of human resources managers?

managing employee layoffs

understanding the needs of customers

improving the quality of products

increasing sales

creating economies of scale

managing employee layoffs

Explanation

HR managers have many concerns regarding their workers, including attracting talent; maintaining a well-trained, highly motivated, and loyal workforce; managing diversity; devising effective compensation systems; managing layoffs; and containing health care and pension costs.

Celine is a machinist at Top-Quality Manufacturing. She exclaimed to her coworker, "Graham! Great news! The union won the election! That means that management and the union, representing us, are legally required to

continue business as usual."

start over by having all employees reapply for their jobs."

bargain in good faith."

stay out of each other's business."

operate under the existing contract."

bargain in good faith.”

Explanation

If the union wins the election, management and the union are legally required to bargain in good faith to obtain a collective bargaining agreement or contract.

Incentive plans are devised to

save employers money.

decrease employee stress.

bribe employees into working more.

help employees get along better with each other.

motivate employees to be more productive.

motivate employees to be more productive.

Explanation

Various incentive systems have been devised to motivate employees to be more productive. Individual incentive plans are the most common type of incentive plan.

Recruitment activities increase the

pool of candidates who can be hired.

likelihood of a lawsuit.

cost of the applicants.

the job analysis requirements.

likelihood of hiring an internal candidate.

pool of candidates who can be hired.

Explanation

Recruitment activities help increase the pool of candidates that might be selected for a job. Recruitment may be internal to the organization (considering current employees for promotions and transfers) or external.

Poor supervisory practices can influence workers to vote for a union.

True or False

True

Explanation

Four factors play a significant role in workers voting for a union. One of them is job dissatisfaction. Poor supervisory practices, favoritism, lack of communication, and perceived unfair or arbitrary discipline and discharge are specific triggers of job dissatisfaction.

Tidewater, Incorporated, requires its job applicants to take a test that measures their vocabulary and numerical skills. For specific jobs, the company also requires its applicants to perform a sample of the job. Before implementing the tests, the management analyzes how well the test actually correlates and predicts job performance. When Tidewater needed to downsize, the company helped employees who were laid off to get placed in other organizations, and immediate supervisors talked to the employees about the reasons for their dismissal.

One of the jobs associated with Tidewater, Incorporated, is welding. For applicants wishing to be hired as a welder, Tidewater, Incorporated, requires the applicant to demonstrate their welding abilities in a(n) ________blank test.

integrity

personality

cognitive-ability

concentration

performance

performance

Explanation

In a performance test, the test taker performs a sample of the job. Most companies use some type of performance test, typically for administrative assistant and clerical positions.

Firms need policies for ________blank inclusivity, which can include allowing employees to maintain certain appearances or wear certain attire for faith-based reasons.

age

ethnic

gender

race

religious

religious

Explanation

Firms need policies for religious tolerance and inclusion. Accommodations might include time off for a religious holiday, adjustments to a company’s dress code for a faith-based need to wear certain attire or maintain certain appearances, and allowing certain religious practices.

Companies have to choose between diversity and financial success.

True or False

False

Explanation

Diversity in an organization’s upper ranks relates to superior financial performance, as shown by a number of studies.

Managing diversity means

not just tolerating or accommodating all sorts of differences, but supporting, nurturing, and utilizing these differences to the organization's advantage.

Correct

emphasizing differences between people as a means of redressing past attitudes toward members of various ethnic and other groups.

supporting, nurturing, and utilizing differences between people in order to encourage competition within the organization.

tolerating or accommodating differences, no matter how much one might object to doing so, simply because it is the law.

hiring as many women and members of underrepresented groups as possible in order to enhance the organization's image and comply with government regulations.

not just tolerating or accommodating all sorts of differences, but supporting, nurturing, and utilizing these differences to the organization’s advantage.

Explanation

Managing diversity requires awareness of aspects common to a group of employees while also working with each employee as an individual. Managing diversity means not just tolerating or accommodating all sorts of differences, but supporting, nurturing, and utilizing these differences to the organization’s advantage.

Alcoholism and drug addiction are disabilities.

True or False

True

Explanation

The Americans with Disabilities Act Amendments Act (ADAAA) defines a disability as a physical or mental impairment that substantially limits one or more major life activities. Examples of such physical or mental impairments include those resulting from orthopedic, visual, speech, and hearing impairments; cerebral palsy; epilepsy; multiple sclerosis; HIV infections; cancer; heart disease; diabetes; mental retardation; psychological illness; particular learning disabilities; drug addiction; and alcoholism.

Avoiding discrimination and harassment are concerns for many underrepresented groups, but ________blank employees are also particularly concerned about obtaining benefits for spouses or domestic partners, as well as feeling free not to be secretive about who they are.

African American, Native American, and Hispanic

elderly and disabled

lesbian, gay, bisexual, transgender, queer or questioning

non-Christian

undereducated

lesbian, gay, bisexual, transgender, queer or questioning

Explanation

Employees who are lesbian, gay, bisexual, transgender, or queer or questioning (LGBTQ) want to avoid discrimination and harassment too, to obtain benefits for a same-gender spouse or domestic partner, and to feel free not to be secretive about this aspect of who they are.

Camelia works in a department where there are only a few women. Pictures of scantily clad women are posted in the employee breakroom. She is uncomfortable being in the breakroom, so she avoids the breakroom. She considers it a hostile environment. Camelia is experiencing

sexual harassment.

inclusion.

overreaction.

affirmative action.

workplace cohesion.

sexual harassment.

Explanation

Much more attention than in the past is being paid to the serious problem of sexual harassment: unwelcome sexual conduct falling into two categories. The first, quid pro quo harassment, occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions. The second type, hostile environment, occurs when unwelcome sexual conduct “has the effect or purpose of interfering unreasonably with job performance or creates an intimidating, or offensive work environment.” Behaviors that can cause a hostile work environment include persistent or pervasive displays of pornography, lewd or suggestive remarks, or demeaning taunts or jokes.

A top-level manager at Jones & Ewing Financial, Sandra works with Bernice, an underrepresented group employee who has been identified as having high potential. As Bernice's mentor, one of Sandra's most important jobs is teaching Bernice about

norms and values within the larger industry of which Jones & Ewing is a part.

minorities at Jones & Ewing and their role in the company's history.

how to address sexual harassment concerns at the company.

Jones & Ewing's ethnic action policies.

the corporate culture and politics of Jones & Ewing Financial.

the corporate culture and politics of Jones & Ewing Financial.

Explanation

Mentors are higher-level managers who help ensure that high-potential personnel are introduced to top management and socialized into the norms and values of the organization.

Sexual harassment falls into two categories: quid pro quo harassment and hostile environment.

True or False

True

Explanation

Sexual harassment falls into two categories. The first, quid pro quo harassment, occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions. The second type, hostile environment, occurs when unwelcome sexual conduct “has the effect or purpose of interfering unreasonably with job performance or creates an intimidating, or offensive work environment.” Both categories of harassment violate Title VII of the Civil Rights Act of 1964.

Antonia and Monique, colleagues who are both having problems at work, relate their experiences to each other. Antonia speaks of a conversation with her immediate supervisor in which he tells her that if she spends a night with him the next time that they take a business trip together, he will recommend her for a promotion. Monique has a different situation. She works in an area of the office where there are few women. Her colleagues consistently make lewd remarks about her body and have shown her pornographic pictures.

Monique is a victim of

the glass ceiling.

gender discrimination.

a sexualized workplace.

quid pro quo harassment.

a hostile environment.

a hostile environment.

Explanation

Sexual harassment falls into two different categories: quid pro quo harassment and hostile environment. A hostile environment occurs when unwelcome sexual conduct has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment.

Managing diversity well can give a company a competitive advantage by

sending a message to the federal government that the company is diverse.

creating a positive image with the media and thus improving stock prices.

making it more homogeneous and thus able to appeal to restricted markets.

encouraging greater flexibility and therefore a quicker response to environmental changes.

spreading out its efforts so that the company can take a multipronged approach.

encouraging greater flexibility and therefore a quicker response to environmental changes.

Explanation

Managing diversity well requires a corporate culture that tolerates many styles and approaches. Less restrictive policies and less standardized operating methods enable greater flexibility and thus quicker response to environmental changes.

Fiona is very charismatic and persuasive. People follow her because they want her approval. This is an example of ________blank power.

referent

reward

coercive

legitimate

expert

referent

Explanation

A leader with referent power has personal characteristics that appeal to others. People comply because of admiration, personal liking, desire for approval, or desire to be like the leader.

A set of leader characteristics that reflect a high level of effort, ambition, and tenacity refer to the leader's

power.

drive.

charisma.

Incorrect

integrity.

vision.

drive

Explanation

One of the leadership traits is drive. Drive refers to a set of characteristics that reflect a high level of effort, including high need for achievement, constant striving for improvement, ambition, energy, tenacity (persistence in the face of obstacles), and initiative.

In the present organizational setup, having a vision for the future and communicating that vision to others are known to be essential components of great leadership.

True or False

True

Explanation

Until a few years ago, vision was not a word spoken by managers. But today, having a vision for the future and communicating that vision to others are known to be essential components of great leadership.

The most effective leadership development experiences have three components: evaluation, accomplishment, and control.

True or False

False

Explanation

The most effective developmental experiences have assessment, challenge, and support components.

Abdul, a sales manager, gives his salespeople some tips on how to close a deal. The salespeople then alter their sales techniques because they respect Abdul's proficiency. This is an example of ________blank power.

professional

reward

referent

expert

coercive

expert

Explanation

A leader who has expert power has certain expertise or knowledge; people comply because they believe in, can learn from, or can otherwise gain from that expertise.

In leadership, charisma can be used positively or negatively.

True or False

True

Explanation

The term charisma can be associated with the negative charisma of evil leaders whom people follow blindly. Yet charismatic leaders who display appropriate values and use their charisma for appropriate purposes serve as ethical role models for others.

A personal skill that is very important in the situational approaches to leadership is the ability to

display self-confidence in the face of setbacks and make decisions despite uncertainty.

perceive the needs and goals of others and adjust your leadership approach accordingly.

have the intelligence to interpret vast quantities of information.

have a high need for achievement and constantly strive for improvement.

impose your will upon unwilling followers and make them conform to your goals.

perceive the needs and goals of others and adjust your leadership approach accordingly.

Explanation

There is one personal skill that may be the most important: the ability to perceive the needs and goals of others and to adjust one’s personal leadership approach accordingly. Effective leaders do not rely on one leadership style; rather, they are capable of using different styles as the situation warrants. This quality is the cornerstone of the situational approaches to leadership.

Leaders who use transactional leadership often

rely on expert power to get followers to achieve goals.

rely on their charisma to inspire their followers.

exchange rewards for services rendered by followers.

Correct

try to inspire their followers.

rely on follower empowerment to accomplish organization goals.

exchange rewards for services rendered by followers

Explanation

Unlike transformational leadership, transactional leadership does not excite, transform, empower, or inspire people to focus on the interests of the group or organization. However, transactional approaches may be more effective for individualists than for collectivists. Transactional leaders view management as a series of transactions in which they use their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered. Unlike transformational leadership, transactional leadership is dispassionate.

In monolithic organizations, conflict between groups is

High.

Nonexistent

Low

Ignored

Favored.

Low

Explanation

Unlike transformational leadership, transactional leadership does not excite, transform, empower, or inspire people to focus on the interests of the group or organization. However, transactional approaches may be more effective for individualists than for collectivists. Transactional leaders view management as a series of transactions in which they use their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered. Unlike transformational leadership, transactional leadership is dispassionate.