Organizational Behavior Exam Preparation Guide
Course Introduction
Organizational Behavior explores the dynamics of human behavior within professional settings, focusing on how individuals, groups, and structures impact organizational effectiveness and productivity. The course examines key concepts such as motivation, leadership, group dynamics, communication, decision-making, organizational culture, and change management. Through theoretical frameworks and real-world case studies, students gain an understanding of the psychological and sociological principles that drive behavior in organizations, as well as strategies for improving teamwork, fostering a positive work environment, and managing conflict. The course prepares students to analyze and influence workplace behavior to enhance organizational performance and employee satisfaction.
Recommended Textbook
Compensation 10th Edition by George T. Milkovich
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18 Chapters
1442 Verified Questions
1442 Flashcards
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Page 2
Chapter 1: The Pay Model
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80 Flashcards
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Sample Questions
Q1) The objective of compliance suggests the way a pay decision is made may be as important to employees as the results of that decision.
A)True
B)False
Answer: False
Q2) A bonus promised by your boss if costs are below your budget is a merit increase.
A)True
B)False
Answer: False
Q3) Base wage reflects both the value of the work and individual employee skills and experience.
A)True
B)False
Answer: False
Q4) A major challenge facing most employers is the rising cost of health care benefits.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Strategy: The Totality of Decisions
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80 Flashcards
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Sample Questions
Q1) The social,competitive and regulatory environment factors are most important for which type of strategy?
A) Corporate
B) Business unit
C) HR
D) Strategic compensation
Answer: D
Q2) The role non-HR managers play in making pay decisions is called _____.
A) ownership
B) transparency
C) technology
D) decentralized decision-making
Answer: A
Q3) "To maintain good citizenship as a company" and "To make a fair profit on current operations" are examples of _____.
A) values
B) mission
C) goals
D) operating principles
Answer: A
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Chapter 3: Defining Internal Alignment
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Q1) The content and value of work are the most common bases for determining internal structures.
A)True
B)False
Answer: True
Q2) Organization factors that shape internal pay structures include all but _____.
A) technology
B) cost implications
C) HR policy
D) economic pressures
Answer: D
Q3) Which of the following is not a component of human capital?
A) Seniority level
B) Experience
C) Knowledge
D) Education
Answer: A
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Page 5
Chapter 4: Job Analysis
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Sample Questions
Q1) For which of the following types of HR decisions would the least detailed job information be required?
A) Legal compliance
B) Career paths
C) Compensation
D) Staffing
Q2) The verification process of job analysis is conducted with both the supervisor and job incumbents.
A)True
B)False
Q3) In the process of creating an internal structure,"assess relative value" is done after _____.
A) determining what to value
B) collecting and summarizing job content information
C) translate into structure
D) job evaluation
Q4) Reliability examines the convergence of results among sources of data and methods.
A)True
B)False
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Chapter 5: Job-Based Structures and Job Evaluation
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Sample Questions
Q1) The Hay plan is primarily used with professional and managerial jobs.
A)True
B)False
Q2) All the following are true of compensable factors except:
A) reinforce an organization's culture.
B) support the business direction.
C) represent the nature of work.
D) are common within an industry type.
Q3) A job description is compared to class descriptions.This describes the _____ method of job evaluation.
A) position analysis questionnaire
B) point
C) Hay Guide Chart-Profile
D) classification
Q4) A job structure based upon job value orders jobs on the relative contribution of job content to the organization's goals.
A)True
B)False
Q5) What are some of the challenges of the classification system?
Q6) What are the characteristics of a benchmark job?
Page 7
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Chapter 6: Person-Based Structures
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Q1) Reliability of job evaluations can be improved by using evaluators who are neutral third parties or by employing consumer evaluation committees.
A)True
B)False
Q2) Customer orientation is an example of a visionary competency.
A)True
B)False
Q3) How are organizations redefining the original definition of competencies?
Q4) The main advantage of skill-based pay plans is:
A) the line of sight is clear.
B) they aid in matching workers to the work flow.
C) they are less expensive than job-based plans.
D) courts view them very favorably.
Q5) Does skill-based pay systems reduce the requirement for supervision?
Q6) As experience with competencies has grown,organizations are placing greater emphasis on business-related descriptions of behaviors.
A)True
B)False
Q7) Briefly discuss skill-based plans.
Page 8
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Chapter 7: Defining Competitiveness
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Q1) Marginal revenue is measurable and used by managers to determine both pay levels and how many employees to hire.
A)True
B)False
Q2) Signaling theory applies to both the demand and supply side.
A)True
B)False
Q3) Other things being constant,in a hiring scenario,the employer will continue to hire until the marginal revenue generated by the last hire is equal to the costs associated with employing that person.
A)True
B)False
Q4) _____ sets a maximum pay level an employer can pay.
A) Government legislation
B) The product market
C) The labor market
D) Labor market competitors
Q5) According to efficiency-wage theory,how does increased wages increase efficiency and lower labor costs?
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Chapter 8: Designing Pay Levels, mix, and Pay Structures
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Sample Questions
Q1) A common practice is to use the 10<sup>th</sup> and 90<sup>th</sup> percentiles from pay survey data to set minimums and maximums of pay grades.
A)True
B)False
Q2) Which of the following jobs would most likely fall into a fuzzy market?
A) Screen writer (MGM)
B) Sound engineer (Sony studios)
C) Director of future vision services (West Publishing)
D) Vice-president of people (Southwest Airlines)
Q3) Applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs is called the _____ approach.
A) low-high
B) benchmark job
C) benchmark conversion
D) point survey conversion
Q4) When there is an unusual level of turnover in a job,an employer is likely to conduct a market survey.
A)True
B)False
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Chapter 9: Pay-For-Performance: the Evidence
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Sample Questions
Q1) Generally,team-based incentives are more attractive than individual incentives.
A)True
B)False
Q2) Eligibility refers to who in the organization may participate in an incentive pay program.
A)True
B)False
Q3) Which theories would support a higher minimum wage?
A) Reinforcement and agency
B) Goal setting and equity
C) Maslow and Herzberg's two-factor
D) Expectancy and agency
Q4) When employee performance is easily measured and the organization's performance is fairly stable over time,the most effective type of compensation is to offer
A) large base and low-incentive pay
B) variety of rewards and base pay
C) a variety of rewards with significant incentive pay
D) monetary rewards with large incentives
Q5) What are the behaviors that compensation ought to enforce?
11
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Chapter 10: Pay-For-Performance Plans
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Q1) Which of the following is not an advantage of group incentive pay plans?
A) Performance measures are easier to develop than for individual plans
B) Cooperation within and across groups is encouraged
C) Compensation risk to income stability is reduced
D) Employee participation in decision-making increases
Q2) Why do companies prefer lump-sum pay over merit pay increases?
Q3) In gain sharing plan formulas,_____ is/are the numerator and _____ the denominator.
A) productivity measures,inputs
B) productivity measures,labor inputs
C) costs and scrap rate,revenues
D) labor inputs,productivity measures
Q4) Which of the following is not true of lump-sum bonuses?
A) They help maintain competitive pay position relative to competitors.
B) They are less expensive than merit pay.
C) Employees dislike them.
D) They are a more visible reward than merit pay.
Q5) The free-rider problem is common in firms using individual incentive plans.
A)True
B)False
Page 12
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Chapter 11: Performance Appraisals
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Sample Questions
Q1) The first question in designing merit guidelines is how much of an increase does it take for employees to recognize the raise as a real increase.
A)True
B)False
Q2) Raters who are low on conscientiousness and very agreeable tend to:
A) be very accurate raters.
B) commit central tendency error.
C) commit halo error.
D) commit leniency error.
Q3) In most Asian cultures,employees do not welcome performance feedback.
A)True
B)False
Q4) Subordinate ratings are more accurate when they are not anonymous. A)True
B)False
Q5) MBO requires more paperwork than other rating methods and increases both performance pressure and stress.
A)True
B)False
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Chapter 12: The Benefit Determination Process
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Q1) For the past 15 years,health care costs have risen an average of nearly _____ percent per year.
A) 16
B) 3
C) 12
D) 6
Q2) The average per hour cost of benefits is higher in state and local governments than in the private sector.
A)True
B)False
Q3) Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs.
A)True
B)False
Q4) Before World War II,hourly employees were given time off for holidays but without pay.
A)True
B)False
Q5) What can administrators do to control the increasing benefits costs?
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Chapter 13: Benefit Options
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Q1) A type of general health care plan in which health services are provided for a fixed fee at a specific site is:
A) a PPO.
B) an HMO.
C) a POS.
D) the traditional health care.
Q2) Under the Economic Growth and Tax Reconciliation Act of 2001,employers have three vesting schedule options.
A)True
B)False
Q3) The rising costs of Social Security have been covered by:
A) increases in the maximum earnings base and the tax rate at which it is taxed.
B) reduction in Social Security benefits by providing market-driven options.
C) progressive reduction in the coverage.
D) welfare grants and annual supplements from Congress.
Q4) An account set up to cover part of a high health care deductible is a:
A) POS.
B) flexible spending account.
C) PCA.
D) PPO.
Page 15
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Chapter 14: Compensation of Special Groups
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Q1) If improved account retention became a major focus of attention,the performance measure stressed would be _____.
A) gross margin on sales or price per unit
B) percentage account erosion
C) a volume measure
D) a customer satisfaction index
Q2) Independent contractors typically earn less than other contingent workers.
A)True
B)False
Q3) When selling the product requires a long training time and also considerable time to develop an effective sales presentation,the compensation system should _____.
A) set specific and challenging sales goals
B) have low base pay and high commissions
C) be straight commission
D) have a large base-pay component
Q4) Incentive stock options may be deducted as a company expense.
A)True
B)False
Q5) Discuss the compensation strategy for corporate directors.
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Chapter 15: Union Role in Wage and Salary Administration
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Q1) The vast majority of contracts specify that a job is to be compensated on an hourly basis.
A)True
B)False
Q2) Tiers can be used as a cost control strategy to allow _____.
A) deflation
B) economic survival
C) expansion
D) divestiture
Q3) Lump-sum awards are typically given because they are less costly to the employer than merit increases.
A)True
B)False
Q4) Describe the strategy for moving employees through wage ranges based on merit.
Q5) A study of unions in 114 companies concluded that _____.
A) unions made a difference in wages in half of the companies
B) unions made a difference in wages in only a few industries
C) unions made a difference in wages across all studies and time periods
D) unions were not responsible for any differences in wages
Q6) Briefly describe gain-sharing plans.
Page 17
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Chapter 16: International Pay Systems
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Q1) Individualism is _____.
A) the degree to which individuals are supposed to look after themselves or remain integrated into groups,usually around the family
B) the distribution of emotional roles between the genders
C) the extent to which a culture programs its members to accept delayed gratification of their emotional needs
D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
Q2) What is the balance sheet approach? What is its objective?
Q3) Which of the following is not true of tariff agreements in Germany?
A) Small organizations use them as guidelines
B) Managerial jobs are covered by the agreements
C) Job evaluation methods are part of the agreements
D) Tariff agreements are different for each industrial sector
Q4) Neither works councils or co-determination are legally required in the United States and are quite rare.
A)True
B)False
Q5) Compare and contrast the pay objectives of Japanese,German and U.S.pay systems.
Page 18
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Chapter 17: Government and Legal Issues in Compensation
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Q1) Which of the following factors has not been suggested as an explanation of the earnings gap between the sexes and among minorities?
A) Personality and cultural differences
B) Industry and firm differences
C) Union differences
D) Work-related behavior differences
Q2) A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.
A)True
B)False
Q3) A study of the effects of the living wage law in Los Angeles found all but the following
A) employees covered by the law received a pay increase of 20 percent
B) one percent of covered jobs were lost
C) a higher proportion of new hires were female
D) turnover and absenteeism declined
Q4) What does the Securities Exchange Act of 1934 do?
Q5) Distinguish between access discrimination and valuation discrimination.
Q6) What are the four basic steps in establishing a comparable-worth plan?
Page 19
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Chapter 18: Management: Making It Work
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Q1) For the compensation system,the basic question to ask is _____
A) "Who should do the activity?"
B) "How should the technique be redesigned?"
C) "Does each specific activity directly contribute to our objectives?"
D) "Should the activity be done in-house,or can others do it more effectively?"
Q2) The denominator for calculating the current year's rise is _____.
A) average pay at beginning of year
B) average pay at end of year
C) average number of employees during the year
D) average employment level
Q3) Manager self-service answers questions,explains compensation policy,and explains how systems affect their pay.
A)True
B)False
Q4) Which of following is a legitimate reason why a compa-ratio may be less than 1?
A) A majority of workers with high performance
B) The majority of employees may be new or recent hires
C) Low promotion rates
D) Turnover is low
Q5) What are red circle rates?
Page 20
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