

Organizational Behavior Test Questions
Course Introduction
Organizational Behavior explores the dynamics of individual and group actions within organizational settings, examining how people interact, communicate, and work together to achieve common goals. The course covers key topics such as motivation, leadership, team dynamics, organizational culture, decision-making, conflict management, and change processes. Through case studies, real-world examples, and interactive activities, students develop an understanding of how to analyze and influence behavior at various organizational levels, equipping them with skills to improve workplace effectiveness and foster a positive organizational climate.
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) Which of the following policy choices has the greatest effect on employees' decisions to stay with the organization and to seek additional training and responsibilities?
A) External competitiveness
B) Employee contributions
C) Internal alignment
D) Job evaluation
Answer: C
Q2) In judging the value of research,an important guideline is that the research was conducted by Ph D researchers.
A)True
B)False
Answer: False
Q3) Which of the following decisions directly affects employees' attitudes and work behaviors?
A) Employee contributions
B) Internal alignment
C) External competitiveness
D) Management
Answer: A
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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) Compensation strategy should reflect the organization's values.
A)True
B)False
Answer: True
Q2) _____ is a "best practice".
A) Smaller internal pay differences
B) Larger internal pay differences
C) Both smaller and larger internal pay differences
D) Neither smaller nor larger internal pay differences
Answer: C
Q3) Flexible-generic job descriptions would most likely be used with a _____ strategy.
A) innovator
B) customer-focused
C) differentiated
D) cost-cutter
Answer: A
Q4) List the different factors in mapping a total compensation strategy.
Answer: Factors in mapping a total compensation strategy include objective,alignment,competitiveness,contributions and,management.
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Chapter 3: Defining Internal Alignment
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80 Flashcards
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Sample Questions
Q1) Equity theory research shows that an egalitarian pay structure will be seen as more fair than a hierarchical structure.
A)True
B)False
Answer: False
Q2) Which of the following are related to greater performance when the work flow depends on individual contributors?
A) Egalitarian
B) Hierarchical
C) Tournament
D) Institutional
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: Job Analysis
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Sample Questions
Q1) Job evaluation is usually conducted before job analysis.
A)True
B)False
Q2) Job incumbents can complete the PAQ since the reading level is relatively low.
A)True
B)False
Q3) Which of following item is a part of oral communication in the Position Analysis Questionnaire?
A) Read technical publications to keep current in industry.
B) Consult with co-workers to exchange ideas.
C) Routine information exchange job related.
D) Attend industry standards meetings.
Q4) The process of collecting information that identifies similarities and differences among jobs is _____.
A) job evaluation
B) job analysis
C) observation
D) work structure analysis
Q5) What should the manager do if employees and their supervisors do not agree on what is part of the job?
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Chapter 5: Job-Based Structures and Job Evaluation
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80 Flashcards
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Sample Questions
Q1) Research shows that the compensable factor skill accounts for _____ percent of the variance in job evaluation results.
A) 90
B) 70
C) 55
D) 42
Q2) Which of the following is not an appropriate basis for evaluating the worth of jobs to an organization?
A) Worker performance
B) External market
C) Skills required
D) Organizational culture
Q3) _____ are those characteristics in the work that an organization values;that help it pursue its strategy and achieve its objectives.
A) Competitive skills
B) Compensable factors
C) Core competencies
D) Benchmark factors
Q4) What are some of the challenges of the classification system?
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Chapter 6: Person-Based Structures
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Sample Questions
Q1) In a multiskill system,pay increases come with:
A) improved efficiency.
B) tenure and seniority.
C) job assignments.
D) certification of new skills.
Q2) What are the common certification methods organizations use?
Q3) An inappropriate way to assess the acceptability of a job evaluation plan and its resulting job structure is to:
A) examine the number of formal appeals.
B) examine the number of requests for reanalysis.
C) conduct employee attitude surveys.
D) examine the number of job offers not accepted.
Q4) How do skill-based plans motivate employees?
Q5) 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
Q6) How do modern organizations analyze work processes?
Q7) What is relevance of flexibility in skill-based plans?
Page 8
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Chapter 7: Defining Competitiveness
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Sample Questions
Q1) What are the factors that affect decisions on pay level and mix?
Q2) A pay policy most likely to reduce pay dissatisfaction is _____.
A) lead
B) employer of choice
C) hybrid
D) match
Q3) An employer offering lower base pay with high bonuses is likely signaling they are seeking risk-taking employees.
A)True
B)False
Q4) If Company A raises its pay rate one dollar per hour to hire additional workers and competitors immediately match the increase,what is the most likely result?
A) Higher labor costs for Company A,but not more workers
B) Company A will hire the needed workers at the higher wage rate
C) Competitors will lose employees to Company A
D) Company A will hire higher quality workers
Q5) Signaling theory applies to both the demand and supply side.
A)True
B)False
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Chapter 8: Designing Pay Levels, mix, and Pay Structures
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81 Flashcards
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Sample Questions
Q1) Explain the difference between standard deviation and quartiles and percentiles.
Q2) The pay structure is reflected in job evaluation or skill certification.
A)True
B)False
Q3) Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?
A) Weighted mean
B) Mean
C) Standard deviation
D) Median
Q4) Explain the market pricing approach to compensation.
Q5) The final major decision in pay-level determination is _____.
A) interpret and apply results of survey
B) obtain top-management acceptance of final decisions
C) design grades and ranges
D) draw policy lines
Q6) Career moves between bands are more common than within bands.
A)True
B)False
Q7) Explain the concept of pay ranges.
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Chapter 9: Pay-For-Performance: the Evidence
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Sample Questions
Q1) Available evidence indicates managers believe the most important factor for pay increases is _____.
A) effort
B) nature of the job
C) seniority
D) performance
Q2) Goal setting theory argues that employees' performance in maximized when performance targets are stated as "do your very best".
A)True
B)False
Q3) The motivation triangle includes _____.
A) selection
B) organization design
C) culture
D) organization development
Q4) Explain the expectancy theory of motivation.
Q5) What are the implications for performance-based pay based on the theory of reinforcement?
Q6) Briefly explain the concept of cafeteria-style or flexible compensation.
Q7) Compare risk sharing and success-sharing plans.
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Chapter 10: Pay-For-Performance Plans
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Sample Questions
Q1) Dissatisfaction with _____ performance indicators for group incentives has led to greater use of _____.
A) financial;the balanced scorecard
B) human resource capabilities;financial measures
C) financial;customer-focused measures
D) the balanced scorecard;resource utilization measures
Q2) The common feature to all types of incentive plans is:
A) a standard of performance to determine magnitude of incentive pay.
B) a sharing formula between worker and employer.
C) penalties for poor performance.
D) limits on magnitude of incentive pay.
Q3) A _____ plan divides a task into simple actions and determines the time an average worker takes to complete each action.
A) standard hour
B) Rowan
C) Bedeaux
D) Merrick
Q4) Time studies do not take into account fatigue or worker personal needs.
A)True
B)False
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Chapter 11: Performance Appraisals
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Sample Questions
Q1) The greatest amount of research on rating formats has focused on reducing error and improving accuracy.
A)True
B)False
Q2) In _____ ranking,raters look at a list of employees,decide who the best employee is,and cross that person's name off the list.From the remaining names,the manager decides who the worst employee is and crosses that name off the list-and so forth.
A) paired-comparison
B) straight
C) alternation
D) forced distribution
Q3) Merit guidelines allocate pay increases based upon:
A) seniority and performance.
B) performance level.
C) performance level and employee position in their pay grade.
D) performance and size of merit budget.
Q4) Subordinate ratings are more accurate when they are not anonymous.
A)True
B)False
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Chapter 12: The Benefit Determination Process
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Sample Questions
Q1) The Employment Retirement Income Security Act (1974)requires employers to offer some form of pension.
A)True
B)False
Q2) The first issue in setting up a benefits package is:
A) who should be protected or benefited.
B) how much choice should employees have among benefits.
C) how should benefits be financed.
D) are benefits legally defensible.
Q3) The typical employee can recall _____ percent of the benefits they receive.
A) almost 50
B) less than 15
C) over 30
D) 40
Q4) Which of the following benefits are not mandated by state or federal legislation?
A) Workers' compensation
B) Pensions
C) Social security
D) Unemployment insurance
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Chapter 13: Benefit Options
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Sample Questions
Q1) In a _____ plan an employer agrees to provide a specific level of retirement pension,which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase)with years of seniority in the company.
A) defined benefit
B) noncontributory benefit
C) 401 (k)
D) shared-benefit
Q2) Contingent workers receive _____ benefits than regular workers;contingent workers' benefits cost employers _____ than regular workers.
A) more,less
B) fewer,more
C) more,more
D) fewer,less
Q3) Vesting is the amount of time an employee must work for an employer to be entitled to their employer's contributions to a pension.
A)True
B)False
Q4) What are the three types of defined contribution plans?
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Page 15

Chapter 14: Compensation of Special Groups
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Sample Questions
Q1) Which of the following benefits is not tied to earnings?
A) Life insurance
B) Disability insurance
C) Vehicle loans
D) Pensions
Q2) Equity is the major compensation challenge for _____.
A) sales staff
B) professionals
C) executives
D) supervisors
Q3) Incentive stock options may be deducted as a company expense.
A)True
B)False
Q4) Today,top executive pay is more than _____ times the pay of the average worker.
A) 20
B) 42
C) 275
D) 364
Q5) Who are special groups? What are the characteristics that special groups share?
Q6) What are the types of conflict faced by supervisors?
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Chapter 15: Union Role in Wage and Salary Administration
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Sample Questions
Q1) Strong management efforts to lower the impact a union has on wages have been successful in recent years.
A)True
B)False
Q2) 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
Q3) Most unions would agree that profit-sharing plans benefit employees.
A)True
B)False
Q4) Few contracts specify special rates for part-time and temporary employees.
A)True
B)False
Q5) With gain-sharing plans,the most common union strategy is to _____.
A) delay taking a stand
B) be very enthusiastic
C) have direct opposition to the plans
D) have no concern for the plans

17
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Chapter 16: International Pay Systems
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Sample Questions
Q1) The two most common reasons for using expats in foreign assignments are _____.
A) for sales and management development
B) to protect company interests and sales
C) to train locals and specific expertise
D) to broaden international perspectives and new ventures
Q2) Which of the following is an advantage of hiring LCNs?
A) The company incurs relocation expenses and other substantial expenses associated with the use of expatriates.
B) The company has concerns about employees adapting to the local culture.
C) Only rarely do organizations decide that hiring LCNs is appropriate.
D) Employment of LCNs satisfies nationalistic demands for hiring locals.
Q3) Explain the dimensions of national cultural attributes proposed by Hofstede.
Q4) Trade unions and employer federations are examples of _____ factors in international compensation.
A) economic
B) employee
C) organizational
D) institutional
Q5) Distinguish between expatriates,local nationals,and third-country nationals with examples.
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Chapter 17: Government and Legal Issues in Compensation
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Sample Questions
Q1) The ADEA _____.
A) prohibits discrimination on the basis of sex,race,or color
B) was amended in 1990 to include the Older Workers Benefit Protection Act
C) typically focuses on differences in pay,promotions,pay raises,and performance reviews
D) prohibits discrimination on the basis of national origin in any employment condition
Q2) The purpose of minimum wage legislation is to maximize the number of employed people.
A)True
B)False
Q3) Prevailing wages protect foreign workers working as registered nurses.
A)True
B)False
Q4) Denial of jobs,promotions,or training opportunities to qualified women or minorities are examples of _____ discrimination.
A) access
B) valuation
C) disparate treatment
D) preferential treatment
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Chapter 18: Management: Making It Work
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Sample Questions
Q1) Under the contract pay system,each worker was paid according to a uniform contract for each company.
A)True
B)False
Q2) What are red circle rates?
Q3) Which of the following is not a likely consequence of a highly decentralized pay system?
A) Total labor costs would be reduced
B) Pay rates would be very unsystematic
C) Managers would use pay to motivate their own objectives
D) Employees are likely to be treated unfairly
Q4) In a total decentralized pay system,employees are likely to be treated unequally and unfairly.
A)True
B)False
Q5) 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
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