DBA Strategic Leadership and Organizational Change 1 — Questions and Answers
Question 1: Which leadership theory emphasizes the exchange of rewards for performance between leaders and followers?
- Transformational leadership
- Transactional leadership (Correct answer)
- Servant leadership
- Authentic leadership
Correct answer: Transactional leadership
Transactional leadership is based on contingent reward and management-by-exception, where leaders motivate followers through clear exchanges.
Question 2: According to Kotter's 8-Step Change Model, what is the FIRST step in a successful organizational change effort?
- Building a guiding coalition
- Creating a vision for change
- Establishing a sense of urgency (Correct answer)
- Communicating the vision
Correct answer: Establishing a sense of urgency
Kotter's model begins with creating urgency by helping people see why change is necessary, which motivates stakeholders to act.
Question 3: What does 'strategic ambidexterity' mean in organizational management?
- Using both hands equally in decision-making
- The ability to simultaneously exploit current capabilities and explore new opportunities (Correct answer)
- Balancing domestic and international strategies
- Switching between cost leadership and differentiation
Correct answer: The ability to simultaneously exploit current capabilities and explore new opportunities
Strategic ambidexterity refers to an organization's capacity to both exploit existing competencies for efficiency and explore new innovations for future growth.
Question 4: Which type of organizational change involves incremental improvements to existing processes without altering the fundamental business model?
- Transformational change
- First-order (evolutionary) change (Correct answer)
- Revolutionary change
- Disruptive change
Correct answer: First-order (evolutionary) change
First-order or evolutionary change involves continuous, incremental adjustments that improve efficiency while maintaining existing structures and strategies.
Question 5: In Porter's Five Forces framework, which force is represented by the availability of substitute products?
- Bargaining power of buyers
- Threat of new entrants
- Threat of substitutes (Correct answer)
- Rivalry among existing competitors
Correct answer: Threat of substitutes
The threat of substitutes measures how easily customers can switch to alternative products or services that satisfy the same need.
Question 6: What is the primary focus of 'servant leadership' in organizational contexts?
- Maximizing shareholder value above all else
- Prioritizing the growth, well-being, and empowerment of followers (Correct answer)
- Following orders from senior management strictly
- Centralizing decision-making authority
Correct answer: Prioritizing the growth, well-being, and empowerment of followers
Servant leadership, developed by Greenleaf, places the needs of followers first, with the leader's primary goal being to serve and develop the people they lead.
DBA Strategic Leadership and Organizational Change 1
Which leadership theory emphasizes the exchange of rewards for performance between leaders and followers?