Organizational Behavior Exam Practice Tests
Course Introduction
Organizational Behavior explores the dynamics of how individuals and groups interact within organizations, examining the impact of behaviors, attitudes, and performance at the individual, group, and organizational levels. This course covers key topics such as motivation, leadership, team dynamics, decision-making processes, organizational culture, communication, power, and change management. By analyzing real-world scenarios and organizational case studies, students gain tools to enhance workplace effectiveness, foster positive working environments, and develop strong leadership and interpersonal skills necessary for professional success.
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Modern Management Concepts and Skills 12th Edition by Samuel C. Certo
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Page 2
Chapter 1: Introducing Modern Management: Concepts and Skills
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Q1) ________ resources refer to the machines used during the manufacturing process.
A) Hardware
B) Capital
C) Technology
D) Raw material
E) Monetary
Answer: B
Q2) Define management and explain how the four functions of management are related.
Answer: Management is the process of reaching organizational goals by working with and through people and other organizational resources. Planning, organizing, influencing, and controlling the four functions of management are integrally related and therefore cannot be separated in practice. Managers use these activities solely for reaching organizational goals. Organizing is based on well-thought out plans developed during the planning process, and influencing systems must be tailored to reflect both these plans and the organizational design used to implement them. The fourth function, controlling, involves possible modifications to existing plans, organizational structure, or the motivation system used to develop a more successful effort.
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Chapter 2: Managing: History and Current Thinking
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Q1) A human is an example of a(n) ________ system. Constant interaction with the environment influences the person's state of existence and future.
A) static
B) inert
C) closed
D) conditional
E) open
Answer: E
Q2) Managers use the Gantt chart to ________.
A) encourage worker initiative
B) conduct motion analysis of tasks
C) retain productive employees
D) monitor work schedules
E) reward innovation by workers
Answer: D
Q3) Fayol defined centralization as raising the importance of the subordinate role.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Corporate Social Responsibility, Ethics, and Sustainability
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Q1) S. Prakash Sethi has presented three important management approaches to meeting social obligations. Briefly explain these approaches.
Answer: S. Prakash Sethi provides three ways that management can meet social obligations: (1) social obligation approach; (2) social responsibility approach; and (3) social responsiveness approach. The social obligation approach is an approach to meeting social obligations that considers business to have primarily economic purposes and confines social responsibility activity largely to conformance to existing legislation. The social responsibility approach is an approach to meeting social obligations that considers business as having both societal and economic goals. The social responsiveness approach is an approach to meeting social obligations that considers business to have societal and economic goals as well as the obligation to anticipate potential social problems and to work actively toward preventing them from occurring.
Q2) Certain business institutions become involved in certain social problems that are outside their normal areas of operation. This behavior is inconsistent with the Davis Model of Corporate Social Responsibility.
A)True
B)False
Answer: False
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Chapter 4: Management and Diversity
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Sample Questions
Q1) The term "majority group" does not necessarily refer to the group with a numerical majority.
A)True
B)False
Q2) Perceptions about the sexes based on what society believes are appropriate behaviors for men and women are ________.
A) instances of sexual harassment
B) gender-role stereotypes
C) sources of pluralism
D) indications of ethnocentrism
E) a result of bicultural stress
Q3) In an organization, the group of people who hold most of the positions that command decision-making power is known as the ________.
A) majority group
B) model minority
C) determinant group
D) functional group
E) working group
Q4) How can diversity be promoted through equal employment and affirmative action?
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Chapter 5: Managing in the Global Arena
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Q1) Transnational organizations are also called ________.
A) global corporations
B) multinational corporations
C) international corporations
D) domestic corporations
E) pan-national corporations
Q2) The ________ attitude reflects the belief that because foreign managers are closer to foreign organizational units, they understand them better, and therefore foreign management practices are more insightful than home-country management practices.
A) ethnocentric
B) polycentric
C) egocentric
D) geocentric
E) gynocentric
Q3) Discuss the three types of organizational members found in multinational corporations.
Q4) What are the six stages of multinationalization? What activities does a company perform at each stage?
Q5) Why do managers make foreign investments? What are the risks involved in this?
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Chapter 6: Management and Entrepreneurship
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Q1) Define social entrepreneurship.
Q2) Which of the following is the most frequently used type of corporate entrepreneurship?
A) sustained regeneration
B) organized rejuvenation
C) domain definition
D) strategic renewal
E) project hosting
Q3) ________ is the likelihood and magnitude of the opportunity's downside loss.
A) Illusion of control
B) Entrepreneurial risk
C) Entrepreneurial alertness
D) Exploitation
E) Entrepreneurial opportunity
Q4) When do entrepreneurs require external capital? Describe the three primary sources of external capital.
Q5) Exploitation exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.
A)True
B)False
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Chapter 7: Principles of Planning
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Q1) Of the four primary management functions, organizing usually precedes planning.
A)True
B)False
Q2) Which of the following is NOT a necessary factor for a successful management by objectives (MBO) program?
A) Management must follow through on employee performance evaluations by rewarding employees accordingly.
B) Top management must be committed to the MBO process and set appropriate objectives for the organization.
C) Managers and subordinates together must develop and agree on each individual's goals.
D) Employee performance should be conscientiously evaluated against established objectives.
E) Managers must conclude automatically that employees have produced at an acceptable level because they have reached their objectives.
Q3) Management's evaluation of organizational planners should be completely objective.
A)True
B)False
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Page 9
Chapter 8: Making Decisions
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Q1) Decision-makers who believe the source of all good is outside of themselves, and therefore rely heavily on suggestions from others, are classified as having an exploitative orientation.
A)True
B)False
Q2) Peter often asks his colleagues for their ideas and suggestions in order to make a decision. However, he never gives credit to the individuals who gave him the ideas and instead passes the ideas off as his own. Which of the following orientations does Peter have?
A) legitimate
B) exploitative
C) hoarding
D) marketing-oriented
E) ideal
Q3) What is the probability theory? Define probability and expected value. How are they related to each other?
Q4) What are the disadvantages of group decision-making?
Q5) Explain brainstorming as a group decision process.
Q6) Discuss briefly the steps in the decision-making process.
Q7) What are heuristics and biases?
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Chapter 9: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Sample Questions
Q1) What are the main strategy formulation tools of strategic management?
Q2) Which of the following, if true, would support the argument that Chelsea is following a cost leadership strategy?
A) The company has a reputation of producing high quality products.
B) The company discontinues some of its less successful ventures.
C) The company launches the product in a country where it enjoys a larger market share.
D) The company encourages economies of scale by focusing on standardization of the product.
E) The company acquires one of its smaller competitors.
Q3) RX Corporation has four strategic business units (A, B, C,D). During a review meeting, a member of the company's board of directors suggests that SBU A, which is in the textile industry, should be sold off. Which of the following, if true, would strengthen the argument to eliminate SBU A from the company's portfolio?
A) SBU A requires very little financial investment.
B) The textile industry is in the maturity stage of the market.
C) SBU A was a first mover in its market.
D) The textile industry has very high barriers to exit.
E) SBU A recently underwent a rebranding exercise.
Page 11
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Chapter 10: Plans and Planning Tools
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Q1) In a PERT network, a(n) ________ is the completion of major project tasks.
A) exercise
B) deed
C) event
D) activity
E) route
Q2) The Delphi method of forecasting is more formal than the jury of executive opinion method and it also gathers, evaluates, and summarizes expert opinions as the basis for a forecast.
A)True
B)False
Q3) The next step in the human resource planning process, after taking a human resource inventory, is determining net human resource requirements.
A)True
B)False
Q4) What is a Gantt chart, explain its features.
Q5) Explain the critical path of the program evaluation and review technique (PERT).
Q6) Define the program evaluation and review technique (PERT).
Q7) Explain the qualitative methods of sales forecasting.
Page 12
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Chapter 11: Fundamentals of Organizing
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Q1) Alistair Fashions, a clothing manufacturer, uses an assembly-line to manufacture clothes whereby different groups of workers specialize in particular tasks-cutting fabric, finishing sleeves, making collars, fixing zippers, sewing buttons, etc. Identify the organizing system being used here.
A) job rotation
B) job enlargement
C) participative management
D) division of labor
E) job enrichment
Q2) Pixel Technologies, a manufacturer of electronic products and cell phones, has departmentalized the organization on the basis of ________ by dividing the business into two divisions-Electronics Retailers and Cell Phone Retailers.
A) geography
B) products
C) functional
D) customers
E) matrix
Q3) What are the forces influencing formal structure?
Q4) Discuss the five main steps in the organizing process.
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Chapter 12: Responsibility, Authority, and Delegation
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Q1) Functional authority consists of the right to give orders within a segment of the organization in which this right is normally nonexistent.
A)True
B)False
Q2) Barnard defines ________ as the character of communication by which an order is accepted by an individual as governing the actions that individual takes within the system.
A) accountability
B) responsibility
C) authority
D) personal attitude
E) influence
Q3) According to Barnard, to enhance the probability of acceptance of authority, communication channels should be ________.
A) formal
B) informal
C) lateral
D) customized
E) culturally-fair
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Page 14
Chapter 13: Human Resource Management
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Sample Questions
Q1) Which of the following is the first step in providing appropriate human resources for an organization?
A) selection
B) orientation
C) recruitment
D) training
E) performance appraisal
Q2) An assessment center is a place in which participants engage in a number of individual and group exercises constructed to simulate important activities at the organizational levels to which they aspire.
A)True
B)False
Q3) ________ refer(s) to the information or skill areas of an individual or group that require further development to increase the productivity of that individual or group.
A) Training needs
B) Professional maturity
C) Self-actualization needs
D) Vocational interest
E) Growth potential
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Page 15
Chapter 14: Organizational Change: Stress, Conflict, and Virtuality
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Q1) Which of the following alternative work arrangements is characterized by the least amount of mobility?
A) hotelling
B) tethered in the office
C) home based
D) occasional telecommuting
E) working out of a car
Q2) Attitudes, leadership skills, and communication skills are ________.
A) structural factors
B) technological factors
C) communication factors
D) people factors
E) informative factors
Q3) Which of the following is the most complete description of organizational effectiveness?
A) the extent to which an organization accomplishes its objectives
B) overall profitability of an organization or an organizational unit
C) ability of an organization to produce maximum output with a given input
D) the extent to which an organization's actions benefit society
Page 16
E) the extent to which an organization's resources are used cost-effectively
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Chapter 15: Influencing and Communication
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Q1) Malcolm, an accounts clerk, is all set to make a presentation on how his team can improve their productivity by changing certain work practices. His manager asks the employees not to be too critical of Mark's suggestions and to avoid arguing with him. The manager most likely said this because being critical ________.
A) will increase the amount of time Mark will need to finish his presentation
B) will only annoy the other people attending the presentation C) will put Malcolm on the defensive
D) will confuse people about the ideas and suggestion put forth E) will reduce the level of group cohesiveness
Q2) Organizational communication that does not follow the lines of the organizational chart is specifically called ________.
A) lateral communication
B) upward communication
C) vertical communication
D) informal communication
E) downward communication
Q3) Formal organizational communication is more important that informal organizational communication. Why?
Q4) What are the major characteristics of organizational grapevine?
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Chapter 16: Leadership
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Q1) Some employees crave a greater degree of freedom in working. These employees are most likely to have ________.
A) low interest in problem solving
B) high emotional intelligence
C) moderate intellectual capabilities
D) high tolerance for ambiguity
E) high level of structured behavior
Q2) Which of the following leadership facets is highlighted in the Tannenbaum and Schmidt Leadership Continuum?
A) employee motivation
B) communication
C) workforce controlling
D) decision making
E) employee training
Q3) Entrepreneurial leaders approach each mistake as if it is a significant error rather than a smaller error that will be neutralized by the normal functioning of the organization.
A)True
B)False
Q4) Explain the difference between a leader and a manager.
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Chapter 17: Motivation
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Q1) Which of the following theories describe how motivation occurs?
A) Maslow's hierarchy of needs
B) Vroom expectancy theory
C) Alderfer's ERG theory
D) McClelland's acquired needs theory
E) Argyris's maturity-immaturity continuum
Q2) The correct order of Maslow's Hierarchy of Needs is ________.
A) physiological, social, esteem, security, self-actualization
B) social, physiological, self-actualization, esteem, security
C) physiological, security, social, esteem, self-actualization
D) security, physiological, social, esteem, self-actualization
E) self-actualization, social, esteem, security, physiological
Q3) The process of increasing the number of operations an individual performs in a job is
A) team management
B) job enlargement
C) job enrichment
D) cross training
E) job rotation
Q4) Briefly explain Likert's management systems.
Page 19
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Chapter 18: Groups and Teams
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Q1) During the ________ stage of team development, managers should recognize the team's accomplishments regularly, for productive team behavior must be reinforced to enhance the probability that it will continue in the future.
A) performing
B) adjourning
C) storming
D) forming
E) learning
Q2) Which of the following is considered a people-related factor that leads to effective team performance?
A) mutual trust and team spirit
B) stable goals and priorities
C) high power struggle within the team
D) proper technical direction and leadership
E) organizational stability and job security
Q3) During the norming stage of team development, the team will finish its job and prepare to disband.
A)True
B)False
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Page 20
Chapter 19: Managing Organization Culture
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Q1) The ________ dimension of organization culture is a facet or organization culture that focuses on making sure that an organization emphasizes not only what is good for the organization, but what is good for other human beings.
A) quality
B) customer
C) ethics
D) spirituality
E) innovation
Q2) The shared values about organizational functioning held by the majority of organization members is known as the ________.
A) leading organization subculture
B) organization design
C) organizational hierarchy
D) dominant organization culture
E) organizational effectiveness
Q3) Organization cultures that have a spiritual emphasis typically focus on one specific type of spiritual belief or religion.
A)True
B)False
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Page 21
Chapter 20: Encouraging Creativity and Innovation
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Q1) Which of the following is one of the principles of reengineering, as outlined by Michael Hammer?
A) Work should be organized around tasks, rather than outcomes.
B) Information-processing work should be carried out separately from the real work that produces the information.
C) Geographically dispersed resources must be treated as though they are decentralized and autonomous.
D) Parallel activities should be linked instead of integrating their results.
E) Control should be built into processes by keeping the decision point apart from where the work is performed.
Q2) What are the seven principles of reengineering improvements, as outlined by Michael Hammer?
Q3) According to the reengineering improvements process, work should be organized around outcomes rather than tasks.
A)True
B)False
Q4) What are the three components of creativity in an individual?
Q5) Provide a brief note on the time-pressure/creativity matrix.
Q6) What are the steps involved in the incremental improvement process?
Page 22
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Chapter 21: Controlling, Information, and Technology
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Q1) The typical IS is a formally established organizational network that gives managers continual access to vital information.
A)True
B)False
Q2) In management terms, information refers to ________.
A) a collection of facts or statistics
B) the skill set of the employees carrying out a particular organizational function
C) the set of conclusions derived from the analysis of data that relate to the operation of an organization
D) a collection of numbers, characters, images or other outputs from devices that gather physical quantities and symbols
E) raw, unorganized representations of individual facts and/or figures
Q3) The information that managers receive heavily influences managerial decision making.
A)True
B)False
Q4) What are the challenges faced by executives in managing the IS workforce?
Q5) Define the terms technology, information technology, and information systems.
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Chapter 22: Production and Control
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Q1) Which of the following ratios is best suited to analyze how the company finances its projects?
A) inventory turnover
B) debt ratio
C) current ratio
D) acid test ratio
E) return on investment
Q2) The break-even point is the level of production at which the total revenue of an organization equals its total costs.
A)True
B)False
Q3) The fixed-position layout is one in which the resources are stationary while the products flow from one resource to another.
A)True
B)False
Q4) Briefly explain the concept of strategies, systems, and processes.
Q5) Inventory turnover ratio is a profitability ratio used in organizations.
A)True
B)False
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