Organizational Behavior Test Bank
Course Introduction
Organizational Behavior explores the study of how individuals, groups, and structures affect and are affected by behavior within organizations. This course delves into core topics such as motivation, leadership, team dynamics, organizational culture, decision-making, power, and communication. Students will analyze real-world business scenarios and apply theories to understand and address complex workplace challenges. Through case studies, discussions, and interactive activities, the course equips learners with practical insights and tools to enhance both individual effectiveness and organizational performance.
Recommended Textbook
Compensation 12th Edition by George Milkovich
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18 Chapters
989 Verified Questions
989 Flashcards
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Page 2
Chapter 1: Pay-For-Performance: The Evidence
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.
A)True
B)False
Answer: True
Q2) Procedural fairness suggests that the way a pay decision is made is of less importance to employees than the results of the decision.
A)True
B)False
Answer: False
Q3) Which of the following is given as an increment to the base pay in recognition of past work behavior?
A)Base pay
B)Long-term incentive
C)Merit pay
D)Short-term incentive
Answer: C
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Page 3
Chapter 2: Strategy: The Totality of Decisions
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55 Flashcards
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Sample Questions
Q1) Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage?
A)Alignment test
B)Cost-effectiveness test
C)Differentiation test
D)Value-addition test
Answer: B
Q2) In a high-performance system, pay strategy always plays a lead role.
A)True
B)False
Answer: False
Q3) Research on the effects of pay level shows that how employees are paid has no effect on the performance of the employees.
A)True
B)False
Answer: False
Q4) Customer-focused pay strategies are most likely to use market-based pay.
A)True
B)False
Answer: False
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Chapter 3: Defining Internal Alignment
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Sample Questions
Q1) A layered pay structure is more hierarchical than a delayered pay structure and less egalitarian in terms of number of levels.
A)True
B)False
Answer: True
Q2) When cooperation is important for successful organization performance, which of the following pay structures is most suitable?
A)A tournament theory-based pay structure
B)An egalitarian pay structure
C)An hierarchical pay structure
D)A layered pay structure
Answer: B
Q3) The most common bases for determining internal structures are:
A)work content and its value
B)seniority and experience
C)use value and exchange value
D)pay surveys and job evaluation
Answer: A
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Chapter 4: R: Job Analysis
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Sample Questions
Q1) Typical data collected for a job analysis would not include relationships with suppliers and customers.
A)True
B)False
Q2) A set of identical positions makes a _____.
A)procedure
B)task
C)title
D)job
Q3) What are the usual steps in a conventional job analysis procedure? List them in their order of occurrence.
Q4) The list of tasks, duties, and responsibilities that make up a job is known as a _____.
A)job search
B)job control
C)job specification
D)job description
Q5) What should the manager do if employees and their supervisors do not agree on what is part of the job?
Q6) Discuss the ways information can be collected.
Page 6
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Chapter 5: Job-Based Structures and Job Evaluation
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Sample Questions
Q1) Each compensable factor degree should be equidistant from the adjacent degrees.
A)True
B)False
Q2) The most common way of allocating weights to factors is regression modeling.
A)True
B)False
Q3) The job evaluation method that most resembles a bookcase with many shelves is:
A)ranking.
B)the Hay plan.
C)the point method.
D)classification.
Q4) What are the steps in designing a point plan?
Q5) An advantage of the ranking method is that the basis for comparison is called out.
A)True
B)False
Q6) One of the criteria for scaling compensable factors is to ensure that the number of degrees used is necessary to distinguish among jobs.
A)True
B)False
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Chapter 6: Person-Based Structures
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Sample Questions
Q1) One approach to both improving and measuring the level of acceptance of job evaluation is to establish a formal appeals process.
A)True
B)False
Q2) How are organizations redefining the original definition of competencies?
Q3) As experience with competencies has grown, organizations are placing greater emphasis on business-related descriptions of behaviors.
A)True
B)False
Q4) _____ are the observable behaviors that indicate the level of competency.
A)Competency sets
B)Core competencies
C)Competency indicators
D)Behavior scale points
Q5) How do modern organizations analyze work processes?
Q6) In virtually all the studies on job evaluation, job-based evaluation is treated as a measurement device.
A)True
B)False
Page 8
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Chapter 7: Defining Competitiveness
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Sample Questions
Q1) _____ puts a lid on the maximum pay level an employer can set.
A)Government legislation
B)The product market
C)The labor market
D)Labor market competition
Q2) The _____ theory is the most influential in explaining pay-level differences.
A)human capital
B)marginal productivity
C)efficiency-wage
D)signaling
Q3) All of the following are important factors in defining a market for compensation purposes EXCEPT:
A)the skill or knowledge required.
B)geography.
C)the ability to pay.
D)product and/or labor market competitors.
Q4) Combat pay premiums paid to military personnel to offset some of the risk of being fired upon is an example of a lead pay-level policy.
A)True
B)False
Page 9
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Chapter 8: Designing Pay Levels, Mix, and Pay
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Sample Questions
Q1) Pay ranges for managerial jobs are larger than the ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower-level jobs.
A)True
B)False
Q2) The first step in setting competitive pay and designing a pay structure is to _____.
A)specify a pay-level policy
B)conduct a job evaluation
C)draw policy lines
D)specify the relevant market
Q3) Which of the following statements is true about market pricers?
A)They align pay structures with the business strategy.
B)Their pay structures are unique and difficult to imitate.
C)They assume that little value is added through internal alignment.
D)They emphasize pay structures based on unique technology or the way work is organized.
Q4) Regression smoothes large amounts of data while minimizing variations.
A)True
B)False
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Chapter 9: Pay-For-Performance: the Evidence
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55 Flashcards
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Sample Questions
Q1) _____ is an individual level form of performance pay.
A)Risk sharing
B)Gain sharing
C)Merit bonus
D)Success sharing
Q2) Flexible compensation is based on the idea that the organization knows what package of rewards would best suit an individual employee's needs.
A)True
B)False
Q3) _____ theory argues that performance-based pay is the optimal compensation choice for complex jobs, where monitoring employee performance is difficult.
A)Reinforcement
B)Goal-setting
C)Agency
D)Expectancy
Q4) What predictions can be made about performance-based pay based on Maslow's theory?
Q5) What are the behaviors that compensation needs to enforce?
Q6) Briefly explain the concept of flexible compensation.
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Chapter 10: Pay-For-Performance Plans
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Sample Questions
Q1) A major problem in group incentive plans is that performance targets are not correctly set.
A)True
B)False
Q2) TreeDen Corp.experiences an increase in employee turnover rate.Upon investigating, it discovers that employees are dissatisfied with the company's pay.Employees cannot see a direct link between their performance and their pay.They are also unhappy about having to pay out of their pockets to obtain grants.In this case, TreeDen is most likely using a _____.
A)stock ownership plan
B)cash profit sharing plan
C)gain-sharing plan
D)team incentive plan
Q3) Discuss SVOP.
Q4) _____ have the disadvantage of requiring employees to spend money to obtain their incentive.
A)Cash profit sharing plans
B)Balanced scorecard plans
C)Stock options plans
D)Deferred profit sharing plans
Page 12
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Chapter 11: Performance Appraisals
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Sample Questions
Q1) Which of the following types of rankings would be least preferred by managers of more than 10-15 employees?
A)Straight ranking
B)Alternation ranking
C)Paired-comparison ranking
D)Forced distribution ranking
Q2) Performance-standard training provides raters with a standard of comparison or frame of reference for making appraisals.
A)True
B)False
Q3) Louie received the highest performance rating and is in the second quartile of his pay range.He received a pay increase of 8 percent.Bart also received the highest performance rating and is in the fourth quartile.Given the way most merit increase grids work, what size of pay increase would you expect Bart to receive?
A)Less than 8 percent
B)More than 8 percent
C)8 percent
D)There is no relationship between ratings and position in pay range.
Q4) What was Deming's major criticism against performance appraisals?
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Chapter 12: The Benefit Determination Process
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Sample Questions
Q1) In 1959, benefits were approximately _____ percent of payroll and in 2010 it was approximately _____ percent of payroll.
A)30; 50
B)20; 38
C)25; 30
D)30; 60
Q2) _____ is the most frequently used medium for communicating employee benefits.
A)A notice board
B)A seminar
C)An employee benefit handbook
D)A meeting with the chief executive officer
Q3) What are the major disadvantages of a flexible benefits package?
Q4) If the future cost containment of a benefit may be a problem, the benefit should be offered on a noncontributory basis.
A)True
B)False
Q5) What is the role of government impetus in the development of employee benefits?
Q6) No strong data exist linking benefits level and employee productivity.
A)True
B)False
Page 14
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Chapter 13: Benefit Options
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Sample Questions
Q1) Which of the following benefits is a federally administered program?
A)Workers' compensation
B)Social Security
C)Job security
D)Occupational Safety and Health Act
Q2) Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to:
A)increased variable component of base wage.
B)devaluation of the dollar.
C)employer safety programs.
D)relaxed federal regulations.
Q3) Some level of dental coverage is provided by about _____ percent of all employers with above 500 employees.
A)30
B)60
C)11
D)85
Q4) Workers' compensation is covered by federal laws.
A)True
B)False
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Chapter 14: Compensation of Special Groups
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Sample Questions
Q1) In maturing markets, companies focus both on performance-based pay tied to customer satisfaction and on greater.
A)True
B)False
Q2) Unlike executives, scientists and engineers are less likely to receive lavish athletic facilities and large offices.
A)True
B)False
Q3) In recent years, some firms have tried to deal with the plateau effect and also accommodate the different career motivations of mature scientists and engineers through a(n) _____.
A)individual-career ladder
B)alternative career path
C)military-style career ladder
D)dual-career ladder
Q4) Organizations rely very heavily on external market data in pricing scientists' and engineers' base pay.
A)True
B)False
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Chapter 15: Union Role in Wage and Salary Administration
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Sample Questions
Q1) Few contracts specify special rates for part-time and temporary employees.
A)True
B)False
Q2) A deferred wage increase _____.
A)specifies that wages will be renegotiated at a specified time
B)specifies that such nonwage items as pension and benefits will be renegotiated under certain conditions
C)is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract
D)involves periodic adjustments based typically on changes in the consumer price index
Q3) Introduction of a gain-sharing plan is particularly effective when union members participate in plan development.
A)True
B)False
Q4) Voluntary benefits account for nearly 37 percent of the total compensation package for unionized workers.
A)True
B)False
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Chapter 16: International Pay Systems
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Sample Questions
Q1) Which of the following statements about ownership and financial markets is true?
A)In the United States, corporate ownership and access to capital is far more concentrated than in most other countries.
B)Ninety percent of American households own stock in companies either directly or indirectly through mutual funds and pension funds.
C)Recent tax law changes in many countries have made stock options more attractive, but limited ownership of many companies remains the rule.
D)Large conglomerates in Germany link performance bonuses to increased shareholder value as it is the most effective pay system.
Q2) Japanese pay systems are more person-based than job-based.
A)True
B)False
Q3) Generally, it is difficult to compare total compensation of a U.S.firm with a foreign competitor.
A)True
B)False
Q4) Explain the dimensions of national cultural attributes proposed by Hofstede.
Q5) What is the balance sheet approach? What is its objective?
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Chapter 17: Government and Legal Issues in Compensation
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Sample Questions
Q1) The gender wage gap is moderate for recent college graduates and decreases as the cohort ages.
A)True
B)False
Q2) Women's median annual earnings compared to men's has changed from about 60 percent to 78 percent from 1980 to 2013.
A)True
B)False
Q3) Compare and contrast disparate treatment and disparate impact.
Q4) The _____ specifies the number of breaks that must be provided in an eight-hour workday.
A)Portal-to-Portal Act
B)Occupational Safety and Health Administration legislation
C)Walsh-Healey Public Contracts legislation
D)Equal Pay Act
Q5) While government affects the supply of labor through legislation, it has no effect on the demand for labor.
A)True
B)False
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Chapter 18: Management: Making It Work
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Sample Questions
Q1) Generally, organizations have increased their use of variable pay relative to traditional base pay increases.
A)True
B)False
Q2) If Philadelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100, it means that _____.
A)prices have risen faster in Philadelphia since the base year than in Houston
B)it essentially costs more to live in Philadelphia than in Houston
C)it costs less to live in Houston than in Philadelphia
D)pay in Philadelphia is, on average, 20 percent higher than in Houston
Q3) Which of the following is NOT a likely consequence of a highly decentralized pay system?
A)Financial malfeasance is completely eliminated.
B)Pay rates for the same work could be inconsistent.
C)Managers could use pay to motivate their own objectives.
D)Employees are likely to be treated unfairly.
Q4) What are the potential problems associated with headcount reductions?
Q5) Briefly summarize compa-ratios.
Q6) What is the turnover effect? Explain how it is calculated with an example.
Page 20
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