Organizational Behavior
Textbook Exam Questions
Course Introduction
Organizational Behavior explores the dynamics of how individuals, groups, and structures influence behavior within organizations. The course examines key concepts such as motivation, leadership, group dynamics, communication, decision-making, organizational culture, and change management. Through a combination of theoretical frameworks and practical examples, students will develop a deeper understanding of how to effectively manage people and processes to achieve organizational goals and improve workplace productivity and satisfaction.
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Management An Integrated Approach 2nd Edition by Ranjay Gulati
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Chapter 1: Introduction to Management
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Q1) Best Tools, a manufacturing company, needs to cut costs to remain competitive. The manager of the company believes that the answer lies in finding more efficient processes and is using time and motion studies to see where improvements can be made. This shows that the manager of Best Tools is using _____ to make strategic changes.
A) technical skills
B) contingency approach
C) contextual intelligence
D) scientific management
Answer: D
Q2) Bureaucratic organization structure involves vertical separation of planning and execution so that plans are made in the upper ranks of an organization and executed in the lower.
A)True
B)False
Answer: True
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Chapter 2: The Global Business Environment
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Q1) As a delegate to the World Trade Organization, Kate stated during negotiations that the same rules and regulations that applied to another country's domestic firms must also be applied to her country's firms operating in that country. Kate was invoking the A) principle of national treatment.
B) consensus principle.
C) most favored nation principle.
D) least favored nation principle.
Answer: A
Q2) The Uruguay Round is noteworthy because it created the successor to GATT.
A)True
B)False
Answer: True
Q3) The sociocultural dimension of a firm's environment includes interest rates of all the countries where it sells its products and services.
A)True
B)False
Answer: False
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Chapter 3: Ethics and Corporate Social Responsibility
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Q1) When making a decision, Sara prepares a cost-benefit analysis of all possible outcomes and selects the alternative that results in the greatest good for all affected parties. Sara subscribes to which ethical framework?
A) Utilitarianism
B) Kantianism
C) Virtue ethics
D) Distributive justice (Egalitarianism)
Answer: A
Q2) When Monni evaluates employees, he considers their results as well as the attitude and process with which the results were obtained. Monni most likely subscribes to which ethical framework?
A) Utilitarianism
B) Kantianism
C) Virtue ethics
D) Distributive justice (Egalitarianism)
Answer: B
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Chapter 4: Introduction to Strategy
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Q1) Which of the following statements is true about strategy formulation?
A) The strategy development process typically flows in a linear fashion.
B) Managers should engage in environmental scanning on an ongoing basis.
C) All aspects of a firm's strategy are more susceptible to frequent changes.
D) The formulation of strategy is the last step toward achieving profitability.
Q2) In Greece, McDonald's introduced the "Greek Mac" using pita bread and yogurt sauce. This is an example of a(n)
A) multinational strategy.
B) global strategy.
C) international strategy.
D) transnational strategy.
Q3) According to military leaders, tactics differed from strategy in that
A) tactics were usually aimed at creating a military advantage.
B) tactics represented the specific moves their armies would perform on the battlefield.
C) tactics represented the grand plan for the war.
D) tactics referred to an individual leader's ability to marshal a large set of resources.
Q4) Define vision, mission, and objectives. What are the benefits provided by effective mission statements?
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Chapter 5: Business-Level Strategy
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Q1) What are the tangible and intangible resources of an organization? Give examples.
Q2) The most recognizable resources that a firm uses to manufacture its products, such as the firm's plant and equipment, are categorized as _____ resources.
A) tangible
B) human
C) intangible
D) natural
Q3) Inside CHS Company, there is a culture of frugality, discipline, and efficiency. The firm pays its employees a competitive wage, but there are no perks. CHS Company is likely using a
A) differentiation strategy.
B) cost leadership strategy.
C) differentiated focus strategy.
D) stuck in the middle strategy.
Q4) In a focus strategy, a firm seeks to be unique in its industry along a dimension or a group of dimensions that are valued by consumers.
A)True
B)False
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Chapter 6: Corporate-Level Strategy
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Q1) Firms pursuing related diversification to increase market power are attempting to decrease the price at which they sell their products to levels below the normal prices found in the market.
A)True
B)False
Q2) The ultimate goal of an unrelated diversification strategy is usually to A) create financial economies. B) support failing businesses. C) enhance innovation.
D) expand globally.
Q3) The ultimate goal of an unrelated diversification strategy is usually to create some form of financial economies.
A)True
B)False
Q4) Corporate advantage occurs when a firm maximizes its resources to build a competitive advantage across its various business units.
A)True
B)False
Q5) Why do managers pursue diversification strategies?
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Chapter 7: Organizational Design
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Q1) Define organizational structure and briefly describe its types.
Q2) Outline the five customer-centric activities of an organization.
Q3) Of the five activities that make a firm customer-centric, connection involves A) helping employees at the firm develop the right skills needed to better serve customers.
B) creating structural mechanisms at the firm that allow workers to organize their activities to focus more exclusively on creating value for customers.
C) developing relationships with external partners to deliver greater value to customers. D) using informal methods such as culture and incentives to encourage people in the organization to come together in the spirit of serving customers.
Q4) The process by which firms impact the nature of their overarching environment and adapt their organization in response to evolving contextual factors is called A) business process reengineering.
B) vertical specialization.
C) mutual adaptation.
D) horizontal specialization.
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Chapter 8: Organizational Culture
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Q1) Which of the following levels of organizational culture refers to the visible organizational structures, processes, and languages?
A) Artifacts
B) Values
C) Assumptions
D) Beliefs
Q2) Ben & Jerry's 5-to-1 policy, whereby executives could not earn more than five times the amount of the lowest-paid employee, is an example of a company's
A) cultural artifacts.
B) cultural beliefs and values.
C) cultural assumptions.
D) mission.
Q3) Identify the different levels of a firm's culture and their specific attributes.
Q4) Which of the following is a source from which a firm's culture develops?
A) The employees' skill set
B) The suppliers and customers
C) The organization's competitors
D) The founder of the organization
Q5) Discuss the role of founders in influencing a firm's culture.
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Chapter 9: Managing Human Capital
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Q1) Which of the following statements is a disadvantage of group-based pay systems?
A) Group-based systems cannot be fully customized to a particular department.
B) They do not allow managers to modify their targets and formulas.
C) Group-based pay systems tend to result in a diffusion of responsibility.
D) All group-based pay programs are generally difficult to calculate and monitor.
Q2) Eris Company is managing employees by outlining a series of specific milestones that they are expected to meet in a defined time period. Eris is utilizing
A) off-the-job training.
B) management by objectives.
C) Total Quality Management.
D) 360-degree feedback.
Q3) Which of the following questions should individuals address when making decisions about their career?
A) What are my strengths and values?
B) Who is my role model?
C) With whom will I work effectively?
D) From whom should I learn?
Q4) Outline the different methods of training.
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Chapter 10: Performance Management
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Q1) Downing Company is studying the costs required to attract new customers compared to the lifetime profitability of certain types of customers before it decides which new customers to target. Downing is focused on which of the various customer metrics?
A) Customer retention
B) New customer acquisition
C) Customer profitability
D) Market share
Q2) The accounting system used to assess the specific cost components of producing a product or service is known as
A) economic value added.
B) return on equity.
C) activity-based costing.
D) economies of scale.
Q3) Describe the two primary areas in which leaders take corrective action.
Q4) The factor that differentiates behavior and output is that
A) outputs include the decisions of individual employees.
B) behavior is controlled at the unit or department level.
C) outputs are more flexible and diverse.
D) behavior can be specified for an entire organization.
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Chapter 11: Organizational Change
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Q1) Thomas, a top executive of an organization, is responsible for managing the transformational change process that the organization is about to undergo soon. Which of the following should Thomas do in order to combat the employees' resistance to change and to create a sustainable change?
A) He should keep the reasons for change confidential.
B) He should set up a bonus plan to reward employees for the change.
C) He should fire employees who complain about the change process.
D) He should engage employees in the change process.
Q2) Define organizational change and briefly explain how change can be driven by external factors.
Q3) A process in which small improvements or changes are made to processes and approaches on an ongoing basis is known as _____ change.
A) transformative
B) reactive
C) organic
D) incremental
Q4) List the characteristics of successful change leaders.
Q5) Discuss the factors causing resistance to organizational change.
Q6) Briefly describe the change process.
Page 13
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Chapter 12: Leadership in Organizations
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Q1) Which of the following aspects of a situation hinder a leader's ability to act in a particular way?
A) Assumptions
B) Neutralizers
C) Competitors
D) Substitutes
Q2) Harry, a firm's marketing head, has certain characteristics that make him gain his team's loyalty. Moreover, he can elicit performance beyond expectations from his team members. He has the ability to motivate his team members through strong communication skills. From this description, it can be inferred that Harry is a _____ leader.
A) transactional
B) bureaucratic
C) charismatic
D) task-oriented
Q3) Define Fiedler's contingency model and situational leadership.
Q4) Fiedler's contingency model suggests that the situation should be changed to match the leader.
A)True
B)False
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Chapter 13: Becoming a Leader: Knowing Yourself
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Q1) Which of the following statements is true with regard to Howard Gardner's multiple intelligences?
A) He held that IQ measurements are generally predictive of success in any professional endeavors.
B) He states that most people have a combination of intelligences that influence their approach to various situations.
C) He proposed that there are twelve types of intelligence that can be indicators of career success.
D) He argued that standardized test scores and grades are the key predictors of who succeeds and who does not.
Q2) Hali is described as "picture smart" and volunteers to do all the slide presentations for her team. Hali is high in _____ intelligence.
A) spatial
B) kinisthetic
C) naturalist
D) linguistic
Q3) Outline the components of emotional intelligence.
Q4) Briefly explain Howard Gardner's multiple intelligences.
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Chapter 14: Power and Influence
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Q1) Which of the following statements best describes power?
A) It is often defined as the exercise of control and the effective use of influence.
B) It is the potential of one individual or group to influence the behavior, thinking, or attitudes of another individual or group.
C) It is the means or vehicle by which control is exercised.
D) It is the ability of a leader to appropriately size up a situation and to appeal to the needs of followers.
Q2) Susan completed tasks that were assigned but without a sense of excitement or personal buy-in. Susan demonstrated which type of reaction to power?
A) Commitment
B) Active resistance
C) Compliance
D) Passive resistance
Q3) Which of the following is required to sustain power?
A) Willingness to engage in constructive feedback
B) Inflated view of self
C) Sense of entitlement
D) Willingness to use others
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Chapter 15: Decision Making
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Q1) _____ is the process of identifying issues and making choices from alternative courses of action.
A) Problem solving
B) Environmental scanning
C) Decision making
D) Strategic positioning
Q2) The representativeness heuristic contends that individuals make choices based on a certain starting point.
A)True
B)False
Q3) The classical model of decision making seeks to maximize economic or other outcomes using a rational choice process.
A)True
B)False
Q4) Identifying a few possible courses of action is the first step involved in the rational decision-making process.
A)True
B)False
Q5) List the actions that can help managers "de-bias" their judgments.
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Chapter 16: Conflict and Negotiation
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Q1) Which of the following is a characteristic of an integrative negotiation?
A) Creating value for both negotiators
B) Lack of interpersonal trust
C) What one wins, the other loses
D) Focus on a single issue
Q2) Which of the following theories proposes that members of an in-group will seek to find negative aspects of an out-group to enhance their own self-image?
A) Traits-based theory
B) Social identity theory
C) Great man theory
D) Realistic conflict theory
Q3) Which of the following is a symptom of groupthink?
A) Underestimation of the group's opinion
B) Open-mindedness
C) Pressures toward uniformity
D) High interpersonal conflicts
Q4) Discuss negotiating in egalitarian and heirarchical cultures.
Q5) Describe affective and cognitive conflict.
Q6) How are disagreements resolved?
Q7) List the steps involved in an effective negotiation process.
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Chapter 17: Leading Teams
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Q1) Which of the following managers should be assigned to lead a geographically distributed team?
A) Jose, who has already shown skill at managing a collocated team
B) Marci, who handles conflicts poorly, because conflicts seldom occur in geographically distributed teams
C) Roger, who will not disclose team members' background information to other team members
D) Saul, who seldom sets guidelines, because there are no timelines for virtual teams
Q2) Describe manager-led teams.
Q3) Which of the following statements is true of diverse teams?
A) Diverse team members generally lack complementary information and expertise.
B) Collocated teams tend to be more diverse than geographically distributed teams.
C) Dysfunctional conflicts are less likely to be experienced by diverse teams.
D) Diverse team members tend to produce more creative and innovative solutions over the long term.
Q4) Identify and describe the behaviors of effective team leaders.
Q5) Outline the five-stage process of team development.
Q6) What defines a team, and under what conditions is the use of teams appropriate?
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Chapter 18: Motivation
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Q1) Outline the content theories of motivation.
Q2) Which of the following is an extrinsic reward?
A) Autonomy
B) Challenging task
C) Self-direction
D) Compensation
Q3) Adam, a team leader, while assessing the performance of his team members, came to realize that their performance was deteriorating. In order to motivate them, Adam adopted the four-drive theory of motivation and differentiated good performers from average and poor performers. Moreover, he designed a reward system such that it was tied clearly to performance. From this scenario, it can be inferred that Adam tried to fulfill the employees' drive to
A) acquire.
B) bond.
C) comprehend.
D) defend.
Q4) In contrast to intrinsic motivation, extrinsic motivation is derived from aspects of "doing the job."
A)True
B)False
Page 20
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Chapter 19: Communication
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Q1) Joe, the marketing manager, provided a sales manual to his sales personnel containing protocols to be followed in all sales situations. This is an example of _____ communication.
A) filtered horizontal
B) downward vertical
C) interdepartmental horizontal
D) upward vertical
Q2) Noise is often maximized by an ongoing back-and-forth process of seeking clarification.
A)True
B)False
Q3) One of the most compelling ways to build a personal connection is through storytelling.
A)True
B)False
Q4) Which of the following statements about communication is true?
A) Communication simply includes what is said and heard.
B) Communication is seldom influenced by personal factors.
C) Communication is an iterative and interactive process.
D) Communication is a series of linear exchanges from one person to another.
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Chapter 20: Networking
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Q1) According to David Krackhardt, the components of strong ties are
A) interaction, affection, and time.
B) importance, capability, and personality.
C) interest, similarity, and acceptance.
D) intimacy, attitude, and knowledge.
Q2) Trust networks often reveal the pattern of linkages between employees who talk about work-related matters on a regular basis.
A)True
B)False
Q3) Which of the following networks allows employees to share sensitive information and support one another in a crisis?
A) Trust networks
B) Communication networks
C) Advice networks
D) Diverse networks
Q4) What are networking clubs? What are their purpose and how do they differ?
Q5) Define centrality and its conceptions.
Q6) Discuss the three types of interpersonal networks.
Q7) Briefly describe the strength of ties.
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