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Your Company's HR Director Is a Believer in Trait Theories

question 47

Multiple Choice

Your company's HR director is a believer in trait theories of leadership. He believes that he can differentiate leaders from nonleaders by focusing on personal qualities and characteristics. The HR director plans to promote Lawrence, a highly extraverted manager with a great deal of ambition and energy to the position of VP, Manufacturing. He asks for your expertise in helping him to apply trait theory to leadership selection within your company. The director believes that because of his innate characteristics, Lawrence will be highly effective at helping the company achieve its production goals. You advise the director against basing his decision purely on traits because ________.


Definitions:

Materials Quantity Variance

The deviation of the actual materials used from the expected standard quantity in production, times the standard unit cost.

Controllable Overhead Variances

The differences between the budgeted and actual overhead costs that management can control or influence.

Volume Overhead Variances

The difference between the expected (budgeted) overhead costs based on standard volume and the actual overhead costs incurred.

Flexible Manufacturing Budget

A budget that adjusts to changes in the volume of production, providing variable costs based on different levels of activity.

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