Course Introduction
Organizational Behavior
Textbook Exam Questions
Organizational Behavior explores the study of how individuals, groups, and structures affect and are affected by behavior within organizations. The course examines key topics such as motivation, leadership, team dynamics, organizational culture, communication, decision-making, power, conflict, and change management. By integrating theories from psychology, sociology, and management, students gain insight into human behavior in the workplace and learn practical strategies for improving organizational effectiveness and employee well-being. This foundational course prepares students to analyze and address behavioral issues in various organizational contexts.
Recommended Textbook
Compensation 10th Edition by George T. Milkovich
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Page 2
Chapter 1: The Pay Model
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Q1) You are an HR manager and your boss has told you to find the best way to raise job performance.After some research you find that _____ produce(s)the largest and most reliable performance increases.
A) high base pay
B) great benefits that attract and retain workers
C) a combination of goal setting and job enrichment
D) monetary incentives
Answer: D
Q2) Compensations differ with perspective.What are the different perspectives of compensation described in the text?
Answer: The text describes compensation from the perspective of a member of society,a stockholder,a manager,and an employee.
Q3) 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
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Chapter 2: Strategy: The Totality of Decisions
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Q1) The alignment test
A) is difficult to imitate.
B) is the most difficult test.
C) helps ensure passing the differentiation test.
D) becomes difficult if the differentiation test is not clear.
Answer: C
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) In a high-performance system,pay strategy plays a lead,as opposed to support role.
A)True
B)False
Answer: False
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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Q1) When employees can see the relationships between their work,the work of others and the organization's objectives,this is called
A) procedural justice.
B) line-of-sight.
C) goal congruence.
D) path-goal-congruence.
Answer: B
Q2) Which of the following pay structure procedures would not increase perceptions of pay fairness?
A) Consistency across all employees
B) Use of accurate data
C) Consultants develop the pay structure
D) Including appeals procedures
Answer: C
Q3) Hierarchical pay structures have all but which of the following characteristics?
A) Supports a close fit with the organization
B) Supports cooperation
C) Many levels
D) Is based upon the job or person
Answer: B
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Chapter 4: Job Analysis
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Q1) Potential problems with using one method of job analysis to collect information for most HR purposes include all but which of the following?
A) It is very expensive
B) Information collected may be too general
C) Information may not be accurate
D) It violates the Americans with Disabilities Act
Q2) Job analysis results are judged useful when they are _____.
A) reliable and valid
B) cost-effective and valid
C) acceptable and reliable
D) reliable,valid and acceptable
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) Write a short note on Americans with Disabilities Act.
Q5) Write a short note on offshoring and the susceptibility of job analysis to offshoring.
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Chapter 5: Job-Based Structures and Job Evaluation
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Q1) A compensable factor of effort has a weight 30% and has two sub-factors,physical and mental.Mental has a degree rating of 4.How many points does the mental effort receive?
A) 120
B) 60
C) 40
D) 45
Q2) Exchange value of a job is its _____
A) job content value.
B) relative job value.
C) internal market value.
D) external market value.
Q3) What are the steps in designing a point plan?
Q4) The number of job evaluation plans required depends upon the number of employees in the organization.
A)True
B)False
Q5) Discuss the two methods of ranking.
Q6) How does job evaluation aid in the process of establishing an internally aligned pay structure?
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Chapter 6: Person-Based Structures
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Q1) The most important factor determining success of a skill-based pay plan is:
A) its impact on labor costs.
B) how well it aligns with the organization strategy.
C) the stakeholder satisfaction with the plan.
D) its effect on productivity.
Q2) Skill-based is to transactional work as competencies are to _____ work.
A) tightly coupled
B) tacit knowledge
C) programmed
D) office and clerical
Q3) Managerial and supervisory analysis provide the data for skill-based pay systems.
A)True
B)False
Q4) _____ translate each core competency into action.
A) Competency indicators
B) Multi-functional skills
C) Skill-based structures
D) Competency sets
Q5) How are organizations redefining the original definition of competencies?
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Chapter 7: Defining Competitiveness
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Q1) Which of the following factors do not affect an employer's ability to pay high wages?
A) Product demand
B) Degree of competition
C) Productivity of labor
D) Supply of skilled employees
Q2) Implication of the _____ theory is that pay level affects an employer's ability to recruit.
A) human capital
B) reservation wage
C) signaling
D) efficiency
Q3) Employers continue to hire until marginal revenue of the last hire equals their wage rate because as per the first labor market theory assumption:
A) markets are competitive.
B) pay rates reflect all costs of employment.
C) employers seek to maximize profits.
D) workers are homogeneous and interchangeable.
Q4) What is the principal argument of the compensating differentials theory?
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Chapter 8: Designing Pay Levels, mix, and Pay Structures
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Q1) In a survey,employees' views reveal what they think about their pay. A)True B)False
Q2) A survey conducted in January,2007 found the median pay effective January 1,2007,for a clerk was $20,000 and the forecast rate of wage increases in the market for 2007 was 5% and another 5% for 2008.An employer choosing to follow a lead/lag policy for the 2008 plan year will need to _____.
A) add $2000 to base pay
B) multiply the salary by 105 %
C) multiply the salary by 105 % and then by another 5 %
D) multiply the salary by 110%
Q3) The purpose of collecting data on number of employees in a pay survey is to _____.
A) indicate how the business is organized
B) estimate the ability to pay
C) estimate the organization's impact on the labor market
D) indicate staffing patterns
Q4) The most common measure of variation in pay surveys is the standard deviation. A)True
B)False
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Chapter 9: Pay-For-Performance: the Evidence
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Q1) Additional authority,control and autonomy are always positively motivating job factors for workers.
A)True
B)False
Q2) Which among the following components of a reward system is a dimension of empowerment?
A) Work importance
B) Control
C) Feedback
D) Advancement
Q3) What are stay bonuses?
Q4) Incentive pay systems are an effective way to motivate workers to perform a variety of tasks in changing situations.
A)True
B)False
Q5) Security in terms of compensation refers to the predictability of one's paycheck from one time to another.
A)True
B)False
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Chapter 10: Pay-For-Performance Plans
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Q1) Individual incentives yield higher productivity gains.
A)True
B)False
Q2) The free-rider problem is common in firms using individual incentive plans.
A)True
B)False
Q3) Gain sharing plans tend not to use a historical standard to set productivity standards since environmental conditions can change quickly.
A)True
B)False
Q4) _____ offer(s)a reward pool based upon achieving performance targets and communicates organizational priorities.
A) The balanced scorecard
B) Stock options
C) Deferred profit sharing
D) Cash profit sharing
Q5) What is the trend in team incentive plans?
Q6) Discuss the trends that are leading to the increased interest in variable pay.
Q7) What are the key elements in designing a gainsharing plan?
Page 12
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Chapter 11: Performance Appraisals
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Q1) Which one of the following is generally not true of management by objectives?
A) Individual goals are linked to the company's strategic goals.
B) Performance is determined based upon the extent of goal achievement.
C) Goals are established by management and assigned to individual employees.
D) Manager and subordinate have performance-related discussions during the rating period.
Q2) Supervisors' ratings are less likely to terminate employees for performance when unemployment is low.
A)True
B)False
Q3) The greatest amount of research on rating formats has focused on reducing error and improving accuracy.
A)True
B)False
Q4) What are the types of pay systems that do not have high motivational potential,but provide equal increases to all employees regardless of performance?
Q5) Why is it pertinent to define behavioral expectations for highly routine tasks?
Q6) What are the various factors that influence performance ratings?
Q7) Describe the paired comparison method of appraisal.
Page 13
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Chapter 12: The Benefit Determination Process
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Q1) While approximately _____ percent of fulltime U.S.employees receive paid vacations and holidays,_____ percent of part time workers receive these benefits.
A) 80,60
B) 90,36
C) 70,50
D) 90,60
Q2) Alternatives to financing benefit plans include all of the following except:
A) contributory
B) 401K
C) noncontributory
D) employee financed
Q3) The only two benefits shown to reduce turnover are pensions and medical coverage.
A)True
B)False
Q4) The ideal approach to determining employee benefit preferences is a flexible benefit plan.
A)True
B)False
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Chapter 13: Benefit Options
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Q1) Requiring a second opinion prior to surgery is an example of a method to reduce employee demand for health care.
A)True
B)False
Q2) )
Medicare is not part of social security.
A)True
B)False
Q3) _____ was designed to reduce an employer's ability to deny coverage to an employee based upon a preexisting condition.
A) COBRA
B) OSHA
C) HIPPA
D) FMLA
Q4) The basic purpose of social security is to provide basic financial security for Americans and their families.
A)True
B)False
Q5) Explain vesting and portability.
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Chapter 14: Compensation of Special Groups
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Q1) A _____ is a cash or stock award determined by an increase in stock price at a fixed future date.
A) phantom stock plan
B) performance share/unit plan
C) stock appreciation right
D) nonqualified stock option
Q2) During recessions,top salespeople's compensation is likely to increase.
A)True
B)False
Q3) Briefly describe the role of contingent workers.Why are most U.S.employers hiring contingent workers? What is the compensation challenge for contingent workers?
Q4) At the time it is granted,which of the following has no tax implications for the executive?
A) Phantom stock plans
B) Incentive stock options
C) Stock appreciation rights
D) Performance share/unit plans
Q5) What are the types of conflict faced by supervisors?
Q6) Discuss the compensation strategy for corporate directors.
Page 16
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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) A deferred wage increase is negotiated at the time of initial contract negotiations.
A)True
B)False
Q3) Briefly summarize lump-sum awards and ESOPs.
Q4) What are the reasons for the decline in unionization?
Q5) Which of the following industries does not enjoy as much larger union-nonunion differentials as the others?
A) Utilities
B) Construction
C) Transportation
D) Agriculture
Q6) Introduction of a profit-sharing plan is particularly effective when union members participate in plan development.
A)True
B)False
Page 17
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Chapter 16: International Pay Systems
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Q1) Neither works councils or co-determination are legally required in the United States and are quite rare.
A)True
B)False
Q2) Compare and contrast the pay objectives of Japanese,German and U.S.pay systems.
Q3) Which of the following is an advantage of the U.S.approach to total pay?
A) Supports commitment and security
B) Focus on short-term payoffs
C) Greater predictability for companies and employees
D) Companies do not compete with pay
Q4) Uncertainty avoidance is _____.
A) the distribution of emotional roles between the genders
B) the extent to which a culture programs its members to accept delayed gratification of their material needs
C) the extent to which the less powerful members of organizations accept and expect that power is distributed unequally
D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
Q5) What were the "three pillars" of Japan's employment relationships?
Page 18
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Chapter 17: Government and Legal Issues in Compensation
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Q1) What does the Securities Exchange Act of 1934 do?
Q2) If federal and state minimum wage laws cover the same job,workers should be paid at or above the higher rate.
A)True
B)False
Q3) The gender wage gap is moderate for recent college graduates and decreases as the cohort ages.
A)True
B)False
Q4) The Schultz v.Wheaton Glass case ruled that for jobs to receive equal pay,they do not have to be identical but substantially equal.
A)True
B)False
Q5) Compare and contrast disparate treatment and disparate impact.
Q6) A higher proportion of women are employed by small versus large firms.
A)True
B)False
Q7) What is the Fair Labor Standards Act of 1938? What are its major provisions?
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Q8) How can a proactive compensation manager influence the nature of regulations?
Chapter 18: Management: Making It Work
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Q1) The final step in the compensation communication cycle is conducting the communication sessions.
A)True
B)False
Q2) Sometimes referred to as "churn" or "slippage," the _____ recognizes the fact that when people leave an organization,they typically are replaced by employees who earn a lower wage.
A) productivity effect
B) conflict effect
C) turnover effect
D) morale effect
Q3) A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may also affect perceptions of pay equity.
A)True
B)False
Q4) Tying changes in pensions,social security payments,and labor agreements to changes in the CPI is called indexing.
A)True
B)False
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