MBA Leadership 3 — Questions and Answers
Question 1: In Leader-Member Exchange (LMX) theory, members of the 'in-group' typically receive:
- Standardized task assignments with minimal discretion
- Greater trust, autonomy, and developmental opportunities from their leader (Correct answer)
- Higher base salaries negotiated through HR
- More frequent performance reviews than out-group members
Correct answer: Greater trust, autonomy, and developmental opportunities from their leader
LMX theory posits that leaders develop differentiated relationships; in-group members receive more latitude, support, and career development.
Question 2: A leader uses inspiration, intellectual stimulation, and individualized consideration to elevate followers' motivation. This BEST describes:
- Transactional leadership
- Laissez-faire leadership
- Transformational leadership (Correct answer)
- Autocratic leadership
Correct answer: Transformational leadership
Transformational leadership (Bass) uses the four I's — idealized influence, inspirational motivation, intellectual stimulation, individualized consideration — to raise follower performance beyond expectations.
Question 3: Which power base, identified by French and Raven, stems from others' perception that a leader has specialized knowledge or expertise?
- Referent power
- Legitimate power
- Expert power (Correct answer)
- Coercive power
Correct answer: Expert power
Expert power derives from the belief that the leader possesses superior knowledge or skill relevant to the task at hand.
Question 4: An organization's culture consistently rewards short-term results and punishes failure. What leadership challenge does this MOST directly create?
- Reduced need for strategic planning
- Suppressed innovation and risk-taking by employees (Correct answer)
- Increased span of control for middle managers
- Greater alignment between individual and organizational goals
Correct answer: Suppressed innovation and risk-taking by employees
A culture that punishes failure discourages experimentation and risk-taking, which are essential for innovation and long-term competitiveness.
Question 5: According to the Ohio State leadership studies, which two independent dimensions define leader behavior?
- Task orientation and people orientation
- Initiating structure and consideration (Correct answer)
- Concern for production and concern for people
- Directive behavior and supportive behavior
Correct answer: Initiating structure and consideration
The Ohio State studies identified 'initiating structure' (organizing tasks) and 'consideration' (relationship-oriented behaviors) as the two key independent dimensions.
Question 6: A leader who sets clear goals, monitors deviations from standards, and corrects poor performance is exercising which component of transactional leadership?
- Inspirational motivation
- Management by exception (Correct answer)
- Intellectual stimulation
- Idealized influence
Correct answer: Management by exception
Management by exception — active or passive — is a transactional component where leaders intervene when performance deviates from the standard.
Question 7: When leading cross-functional teams, which leadership challenge is MOST unique compared to leading a traditional functional team?
- Establishing a clear vision for the team
- Managing competing loyalties and reporting relationships (Correct answer)
- Setting individual performance objectives
- Conducting regular performance appraisals
Correct answer: Managing competing loyalties and reporting relationships
Cross-functional team members often have dual loyalties — to their functional department and the team — creating role conflict that leaders must actively manage.
MBA Leadership 3
In Leader-Member Exchange (LMX) theory, members of the 'in-group' typically receive: