Let's see how well you answered the questions.
CanGo's Executive Committee has determined that Liz cannot continue as CEO due to a lack of managerial experience. They have decided to "boot her upstairs" by making her Chairman of the Board. See if you agree with the Committee's assessment of Liz's skills.
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1. |
CEOs must be involved in every aspect of the firm and demonstrate leadership by doing. |
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a. True |
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b. False |
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Your Answer:
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Correct Answer: b |
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Although CEOs must stay on top of what is happening and how well things are going, they do not need to have their fingers in every pot and be involved in all aspects of the firm. |
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2. |
Given the latest technological advances in computers and communications, MBWA (Management by Walking Around) is an antiquated technique for gathering information. |
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a. True |
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b. False |
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Your Answer:
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Correct Answer: b |
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Many CEOs find it absolutely necessary to get out into the field or go out onto the shop floor and get a feel for what is happening in the company. They are afraid of becoming isolated from the operation and want firsthand information about their organization. |
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3. |
One of the CEO's most important functions is to lead personally the changes needed by the organization. |
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a. True |
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b. False |
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Your Answer:
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Correct Answer: a |
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CEOs understand that they must subscribe to and promote the vision of the firm and advance the changes needed to fulfill that vision. What the CEO says and does has a significant impact on employees and nurtures strategy implementation. |
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4. |
The politics of corporate strategy center around |
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a. creating power bases that have loyalty to the CEO and his/her ideas. |
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b. dictating the strategy by using top-down policy formulation techniques. |
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c. separating groups with similar interests and reducing the power bases of the opposition. |
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d. none of the above. |
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Your Answer:
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Correct Answer: d |
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CEOs must build consensus for a particular strategy in an inclusive manner, regardless of employee loyalty. The aim is to provoke open and honest discussion of any new strategies and to build broad-based support for the plan, even if stakeholders change parts of the plan to better serve their interests and the interests of the firm. |
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5. |
CEOs exercise ethical leadership by doing all of the following, except |
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a. setting an excellent example by deeds, not words. |
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b. hiring legal counsel to establish codes of ethics. |
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c. establishing training programs in business ethics. |
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d. quickly acting to remove those employees who have violated the ethics codes. |
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Your Answer:
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Correct Answer: b |
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Although legal counsel might be consulted when
constructing a code of ethics for a business, it is the CEO, with the Committee's and top management's input, who should set the ethical standards of the firm. |
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© 2002 by Prentice-Hall, Inc.
