D072 Fundamentals for Success in Business - Set 1 - Part 1

Correct Answer: Autocratic Style

The autocratic leadership style is known for its top-down approach where communication is often one-sided, leading to potential misunderstandings. The other styles encourage participation or provide more flexibility, reducing communication barriers.

Correct Answer: Coercive Power

Coercive power involves the use of force or the threat of punishment. Leaders using this power may create an environment of fear. Reward power and referent power are more positive, while expert power is based on knowledge.

Correct Answer: Ethics

A "Code of Ethics" is a set of guidelines that define acceptable behavior in the workplace. It is more focused than corporate culture, which encompasses the broader values and attitudes of an organization.

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Noise and ambiguity create misunderstandings, and an autocratic leadership style can hinder open communication. Active listening and clear feedback promote effective communication.

Correct Answer: Mechanistic

Mechanistic structures are hierarchical and bureaucratic, with centralized authority and specialized functions. Organic structures, in contrast, are more decentralized and flexible.

Correct Answer: Task-Oriented Style

Task-oriented leaders focus on the completion of tasks and tend to prioritize job efficiency over employee well-being. People-oriented leaders, on the other hand, focus on interpersonal relationships.

Correct Answer: Emotional Intelligence

Emotional intelligence includes the ability to recognize and adapt to others' emotions, ensuring more effective communication and leadership.

Correct Answer: Laissez-faire Style

Laissez-faire leadership gives employees full freedom to make decisions without interference from managers. Delegating also allows for autonomy but usually includes some level of oversight.

Correct Answer: Telling

The telling style involves giving clear and direct instructions, leaving little room for employee input or modification.

Correct Answer: Idealized Influence

Idealized influence is a component of transformational leadership where leaders set an example that subordinates choose to follow.

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Effective communication involves providing clear feedback, being aware of nonverbal signals, and actively listening to ensure understanding. Coercive language, however, can hinder communication.

Correct Answer: Encouraging employee participation and feedback

A positive corporate culture is built on open communication and employee involvement. Strict rules and focusing only on productivity can create a rigid and unengaged environment.

Correct Answer: People-Oriented Style

A people-oriented leadership style focuses on interpersonal relationships and team morale, contrasting with task-oriented styles that prioritize efficiency.

Correct Answer: Organic

Organic leadership fosters an environment that encourages innovation and flexibility, allowing for more creative problem-solving compared to mechanistic structures.

Correct Answer: Recognition practices

Organizations that do not recognize employee contributions can lead to demotivation. While ethical standards are important, the specific issue here pertains to recognition.

Correct Answer: Internal Transparency

Internal transparency involves open communication about values and practices. It fosters trust and alignment within the organization, unlike CSR, which pertains to external actions.

Correct Answer: Rational Persuasion

Rational persuasion involves using facts and logical arguments to convince others. The other options involve emotional appeals or coercive tactics.

Correct Answer: Situational Leadership

Situational leadership involves adjusting one’s approach according to the specific context and needs of the team, unlike transformational leadership, which primarily focuses on inspiring change.

Correct Answer: Organizational Culture

Organizational culture encompasses the values and norms that promote diversity and inclusion, while CSR pertains to external societal responsibilities.

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Effective emotional intelligence includes self-regulation and understanding others' feelings. Ignoring others’ feelings and reacting impulsively are contrary to emotional intelligence.