2.3 Management and Leadership

Which statement about leadership is false?

•   The role of leaders is always clearly established or defined

•   Leaders inspire others to achieve organizational goals

•   Not every leader is a manager

•   Leadership does not necessarily occur within the formal hierarchical structure

Answer explanation

The role of leaders is always clearly established or defined in the workplace, as it is not necessary for leaders to be formally hired as managers in an organizational hierarchy.

Which of the following is a drawback of situational leadership?

•   Unskilled or low-skilled workers cannot be motivated by this leadership style

•   Autocratic leadership is less motivational than paternalistic or laissez-faire leadership

•   Employees can become demotivated due to the unpredictable nature of situational leadership

•   Emergency situations cannot be accommodated by this leadership style

Answer explanation

The lack of a ‘natural’ or default leadership style under situational leadership can make it difficult for workers to know what to expect. Unpredictability in the workplace can be detrimental for employee motivation.

Which leadership style involves minimal direct input into the work of employees, thus allowing subordinates to make their own decisions?

•   Laissez-faire

• Democratic

• Paternalistic

• Autocratic

Answer explanation

Laissez-faire leaders leave workers to be autonomous, i.e. subordinates are independent decision makers.

Which of the following is least likely to influence the choice of leadership style?

•   Ethical considerations

•   The types of financial rewards for subordinates

•   The organizational culture

•   The number, skills and experiences of subordinates

Answer explanation

There is no direct correlation between how staff are remunerated (such as wages, bonuses or piece rate) and the choice of leadership style.

Which leadership style is most likely to encourage slack or laziness in the workplace?

• Paternalistic

•   Laissez-faire

• Autocratic

• Democratic

Answer explanation

By leaving workers to ‘get on with their jobs’, a potential drawback of a laissez-faire approach to leadership is that it can encourage a degree of slack or laziness.

According to Henri Fayol, which of the following is not a key FUNCTION of management?

• Commanding

• Budgeting

• Planning

• Organizing

Answer explanation

Budgeting is not a key management task as this can be delegated to budget holders, such as department managers.

Which leadership style does not work well when staff are relatively unskilled and need careful supervision for them to remain on task?

• Situational

• Paternalistic

• Autocratic

• Democratic

Answer explanation

When staff are unskilled and need careful supervision, a democratic leadership style is not effective. Instead, workers need direction whilst managers focus on command and control.

Which leadership style suggests that managers and leaders should change and adapt their style to different circumstances?

• Paternalistic

• Democratic

• Situational

• Autocratic

Answer explanation

Situational leadership requires managers and leaders to adapt their style in response to different circumstances.

Which leadership style involves managers treating their workers as family members by managing and acting in what is perceived to be their best interest?

• Autocratic

• Democratic

• Paternalistic

•   Laissez-faire

Answer explanation

Paternalistic managers and leaders act in a way they believe to be in the best interest of their staff, i.e. they act as a father (or parent) to their employees, often making decisions on their behalf.

Who has formal decision-making authority in an organization and has responsibility for problem-solving in order to achieve specific organizational goals?

• Employees

• Subordinates

• Managers

• Leaders

Answer explanation

Managers, rather than leaders, have formal decision-making authority. Not all leaders are in formal managerial positions in the workplace.