Page 1
1. The form of leadership in which the leader motivates followers to perform at their full
potential by influencing changes in perceptions and by providing a sense of direction to
the group is known as:
A) Situational leadership
B) Transformational leadership
C) Great Man leadership
D) Servant leadership
2. You are in charge of a group of 14 people (10 [2 are ill] nursing assistants and 4 RNs)
caring for 88 nursing home residents. Today's care must be completed by 1:30 PM
because of a special event involving most of the employees. Which management style
will probably work best in this situation?
A) Authoritarian
B) Coercive
C) Democratic
D) Laissez-faire
3. Which of the following will help you as you work at developing a leadership style and is
a practical step to take?
A) Identify a role model.
B) Complete some personal inventory tests such as the Myers-Briggs.
C) Wait for input from others, especially your immediate supervisor.
D) Discuss a number of different styles with friends to see which they believe would
work best for you.
4. You are a nurse on a busy day-surgery unit. You will have a new unit manager
beginning Monday. What behavior on your part would best demonstrate that you intend
to be an effective follower?
A) Never overstep your role by making suggestions.
B) Keep quiet about your personal preferences and simply follow the new manager.
C) Set personal goals that fit into your unit goals.
D) Do not bother the new manager with questions but take them to a trusted coworker.
5. Michael Schott, RN, serves as the chair of the Nursing Practice Committee for the
hospital. The meetings do not have a planned agenda; members of the committee who
are interested in a particular topic feel free to suggest it and then to lead the subsequent
discussion. His leadership style could be termed _______________.

Page 2
6. Your clinical supervisor empowers others to act by delegating authority for decision
making. Which form of leadership involves such behaviors?
A) Transformational leadership
B) Servant leadership
C) Laissez-faire leadership
D) Autocratic leadership
7. How might one define leadership?
A) Leadership is the process of planning, organizing, directing, and controlling
activities.
B) Leadership is the process of guiding, teaching, motivating, and directing others.
C) Leadership is the process by which the leader shares power with others.
D) Leadership is the process of interviewing, hiring, and firing personnel.
8. What is a synonym for power?
A) Coercion
B) Potency
C) Predilection
D) Inclination
9. When assessing your own effectiveness as a leader, what is it important to look at?
A) How much education you have had
B) How you set your personal goals
C) How well the rest of the staff likes you
D) How you interact with others
10. Your new unit manager states that his management style is multicratic. What behavior
would you expect him to exhibit?
A) Uses several forms of democratic management techniques and tools
B) Adjusts his or her management style to the situation at hand
C) Develops the role of the follower to enhance his or her own role
D) Chooses a management style and sticks to it
11. When we attempt to get others to act in a particular manner by creating obligations,
through pressure tactics or other coercive behaviors, it may be termed ______________.
12. An important characteristic of both leadership behaviors and management skills is that
they can both be _________.

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13. How does leadership differ from management?
A) Leadership involves having the ability to influence others.
B) Leadership involves coordination and integration of resources.
C) Management does not involve guiding, teaching, and motivating behaviors.
D) Leadership is usually an appointed position.
14. A new staff nurse has been on the unit for 2 weeks. The manager states that this nurse is
an effective follower. What characteristic of the staff nurse would the manager base that
statement on? (Select all that apply.)
A) The staff nurse is intelligent.
B) The staff nurse is enthusiastic.
C) The staff nurse participates in pursuit of organizational goals.
D) The staff nurse gets along well with other staff members.
E) The staff nurse never calls in sick.
15. You are the charge nurse on a unit that empowers its staff members. What action could
you take to empower a nursing assistant with whom you work?
A) Encourage the nursing assistant to have input into decisions regarding a patient's
care.
B) Give the nursing assistant explicit instructions on how to care for her patients.
C) Let the nursing assistant bring you a list of what care needs to be given to the
patients.
D) Accompany the nursing assistant every time she gives care to a patient.
16. You are teaching a class on nursing theory and you know it is important to be able to tie
nursing theory to nursing situations. What would you tell your class about the research
into behaviorist theories when it is applied to nursing situations?
A) Research demonstrates the relationship between the work environment and positive
patient outcomes.
B) Research has demonstrated that staff nurses are less likely to participate in
organizational goals.
C) Research has demonstrated that patient outcomes are less positive as the work
environment becomes more conducive to teamwork.
D) Research has demonstrated that turnover of staff increases as staff satisfaction
decreases.
17. A nurse manager also serves as a leader in delivering patient care. This same nurse also
has an important responsibility as a __________.

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18. On an empowered unit, what is a factor when assigning tasks to staff?
A) Autonomy/support
B) Independence/role modeling
C) Motivation/personal goals
D) Cooperation/delegation
19. What is a required skill in a good manager?
A) Ability to give independence to staff
B) Ability to make staffing plans
C) Ability to empower others
D) Ability to balance budget
20. What factors do organizations use to gauge your ability to provide direction to others or
to bring about change? (Select all that apply.)
A) Reputation
B) Power
C) Influence
D) Seniority
E) Influence tactics

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Page 1
1. Given a matrix organizational structure in which each unit manager reports directly to
the nursing administrator and works directly with the staff development department,
who should do the performance evaluation for the unit manager?
A) CEO (administrator)
B) Nursing administrator
C) Staff development officer
D) RN
2. In an organization in which the housekeeping director and the nursing director are on
the same level, both report to a higher level administrator, and both have individual unit
managers who report to them, to whom should the staff nurse direct concerns about the
adequacy of the cleaning done by an individual housekeeper?
A) To the housekeeper individually
B) To the nursing unit manager
C) To the director of nursing
D) To the director of housekeeping
3. In applying Maslow's hierarchy of needs to members of an organization, the informal
organization is most likely to meet which needs?
A) Belonging/social
B) Ego or self-esteem
C) Security/safety
D) Physiologic
4. Before John accepted a position at Mercy Hospital, he asked a number of employees
about their perceptions of the prevailing feelings and values of the organization. What
was he evaluating?
A) The informal organization
B) The organizational culture
C) The organizational climate
D) The organizational philosophy
5. Mary works in an organization in which the nursing staff and the nursing management
are both involved in making decisions as opposed to having the decisions made at an
administrative level only. Which professional practice model does this represent?
A) An autocratic model
B) A democratic model
C) A multicratic model
D) A shared governance model

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Page 2
6. A nurse who is interested in participating in decision making is most likely to find this
opportunity in which type of organization?
A) Tall
B) Flat
C) Matrix
D) There is no difference
7. What is meant by the term organizational structure? (Mark all that apply.)
A) The way in which decision making occurs
B) The way in which a group is formed
C) The way in which the informal organization operates
D) The way in which social alliances are made
E) The way in which lines of communication flow
8. Why is a hospital's mission statement important to clients?
A) It helps clients to know if the institution will meet their needs.
B) It helps clients to know if the hospital is good.
C) It helps clients to know how care is given.
D) It helps clients to know how culturally diverse the institution is.
9. Where would you look to gain information about who is to make specific decisions for
an organization?
A) In the mission statement
B) In the policy manual
C) In the procedure manual
D) In the philosophy statement
10. Why might you want to change the organizational culture or climate?
A) You may feel the efforts and accomplishments of the employees receive too little
recognition.
B) You disagree with the unit supervisor regarding staffing patterns.
C) You believe there is a better method of introducing a new procedure.
D) You want to take actions that will result in an internal promotion.
11. The form of care delivery in which an individual monitors the patient's interaction with
the entire health care system is known as which one of the following?
A) Primary nursing
B) The case method
C) Total patient care
D) Case management

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Page 3
12. What is the purpose of the nursing philosophy of any organization?
A) It is needed for legal incorporation.
B) It spells out the broad goals of that organization.
C) It outlines the values and beliefs of members.
D) It identifies the spiritual affiliation of the organization.
13. What are the criteria for Magnet Hospital Status? (Mark all that apply.)
A) Low staff nurse turnover rate
B) High educational level of staff nurses
C) Appropriate resolution of grievances
D) Data collection by staff nurses
E) Authoritarian management throughout organization
14. What is known as the official power an individual has to approve an action, to command
an action, or to enforce a decision?
A) Accountability
B) Advocacy
C) Authenticity
D) Authority
15. Which of the following is the best definition of span of control?
A) The number of subordinates for which one person in the organization is responsible
B) The right one person has to control resources and actions
C) The responsibility one person has for seeing that the activities are carried out
D) The way actions occur within an organization
16. As public scrutiny of health care facilities becomes more common, more attention will
be paid to organizational ______________.
17. In hospitals with shared governance, what are nurses now doing?
A) Defining salaries and benefits
B) Providing excellent patient care
C) Having more satisfactory social relationships
D) Showing a decreased level of job satisfaction
18. In a shared governance model, managers must learn to share ___________ over key
areas that were their sole domain such as scheduling, budgeting, and staffing.

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Page 1
1. Which of the following is a good reason to have a meeting?
A) To coordinate action or exchange information
B) To ensure that everyone is at work
C) To assert your role as leader
D) Because people expect frequent meetings
2. You are the nurse manager. Which of the following should be your priority?
A) A nursing assistant wanting to discuss his vacation time
B) A physician asking that you call him regarding the results of an ordered hematocrit
C) The patient in room 205 who just fell
D) The patient complaining about his lunch and wanting your attention
3. You are the charge nurse. Which of the following tasks should you delegate to the LPN
(LVN)?
A) Giving the epidural pain medication
B) Leading the patient care conference
C) Counting the linen for inventory
D) Passing the noon oral medications
4. In which part of the budget would one find major renovations?
A) Operating budget
B) Capital budget
C) Administrative budget
D) Equipment budget
5. Because of a new contract, you must budget for an increase in nurses' salaries. Under
which budget category would you apply for this increase?
A) Capital budget
B) Operating budget
C) Supply budget
D) Construction budget
6. Of the following, which is the best way in which a staff nurse might become involved in
the budget process?
A) Providing timely budget requests
B) Reporting to the supervisor extended lunch breaks taken by fellow workers
C) Looking for ways to reuse supplies
D) Seeking shortcuts to charting

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Page 2
7. The nurse working in the emergency department knows that the policy of the hospital
states that no individuals without insurance will be treated. Uninsured individuals will
be directed to go to the county hospital emergency department. A woman in labor enters
and the nurse determines that this woman is very near delivery and would not make it to
the other hospital before delivering. Is it ethical for the nurse to send the woman to the
other emergency department to conform to the hospital policy? Why or why not?
A) No, because the hospital should not be allowed to set such policies.
B) No, because the nurse has an independent duty to avoid harm to those seeking care.
C) Yes, because as an employee the nurse's duty is to the hospital.
D) Yes, because the nurse may or may not be correct in her assessment.
8. The nurse is discharging a patient based on a critical pathway. The patient suddenly
shows signs of a beginning complication. The unit manager states, “There is nothing that
can be done, the allotted days of hospital stay are over, and the cost controls will not
allow the patient to stay.” In this case, would the limit on length of stay, imposed by the
health plan, protect the health care institution and its employees from a successful
malpractice action? Why or why not?
A) Yes, because they have no control over the health plan decisions.
B) Yes, because they are discharging a patient according to a predetermined critical
pathway.
C) No, because anyone can sue for anything, anytime.
D) No, because health care professionals are always accountable for their own
decisions about patient care.
9. Which of the following provides the greatest opportunity for cost containment in a
nursing department's expenses?
A) Equipment
B) Supplies
C) Environmental assessment
D) Salaries
10. A coworker says to a fellow nurse, “An ordinary nurse can't have any effect on the cost
of health care. I don't know why you worry about it.” The nurse's most accurate reply is:
A) “There are many costs associated with complications that nurses can prevent.”
B) “You are probably right, but it makes me feel better if I try something.”
C) “Well, by not using sterile supplies, I know that I am really cutting costs.”
D) “If I talk about costs, maybe those who really can affect costs, like doctors, will
begin to pay attention.”

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Page 3
11. Which of the following is the area on the patient's bill where the cost of nursing care has
appeared?
A) Special nursing services
B) Patient care maintenance
C) An integral part of the daily room rate
D) Itemized expenses
12. In a capitated health plan, which entity is at greatest financial risk?
A) Provider
B) Health plan
C) Individual
D) Government
13. John Thomsen, age 76, is admitted to the hospital for a hip replacement. Which of the
following sources would you expect to pay a good share of his hospital bill?
A) His employer
B) Medicare
C) His son
D) A state insurance plan
14. What are the factors affecting rising health care costs? (Mark all that apply.)
A) Fear of litigation
B) Aging population
C) Administrative costs
D) Judicious use of staff
E) Overuse of resources
15. Cost ____________ includes all efforts directed toward preventing the steep rise in
costs of health care.
16. What are the factors influencing a patients' access to health care? (Mark all that apply.)
A) Do they have the time?
B) Can a relative or friend go with them?
C) Can they afford it?
D) Is it available near their home?
E) Is it viewed as culturally sensitive?

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Page 4
17. Because of increased litigation, physicians have begun practicing “defensive medicine.”
What does this mean?
A) Care was ordered for legal protection
B) Needed diagnostic tests were not ordered
C) Care was only given to those with insurance
D) Specialists were called in when not needed
18. As a staff nurse, where can you impact the system by making suggestions to reduce
redundant paperwork or streamline processes?
A) At the mid-management level
B) At the informal organizational level
C) At the grassroots level
D) At the administrative level
19. The future of cost containment hinges on balancing what? (Mark all that apply.)
A) Patient satisfaction
B) Length of stay
C) Age of patients
D) Quality of care given
E) Cost of care provided
20. Restructuring of health care organizations in an effort to contain costs might include
what?
A) Opening trauma units
B) Continuing to provide community emergency care
C) Hiring unlicensed assistive personnel
D) Decreasing the number of physicians on the payroll

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