Organizational Behaviour Practice Exam
Course Introduction
Organizational Behaviour explores the study of how individuals, groups, and structures influence behavior within organizations. This course examines fundamental theories and concepts related to motivation, leadership, team dynamics, communication, organizational culture, and decision-making. Students will develop analytical skills to understand workplace behavior and learn strategies to improve organizational effectiveness, manage change, and foster a positive work environment. Through case studies and real-world examples, the course equips students with practical tools to address challenges in todays dynamic organizational settings.
Recommended Textbook Strategic Compensation in 4th Canada Edition by Richard Long
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Page 2
Chapter 1: A Road Map to Effective Communication
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Sample Questions
Q1) The two key aspects of a compensation strategy are the amount of direct pay (cash)compensation to be paid and the amount of indirect compensation (non-cash services and benefits)to be provided.
A)True
B)False
Answer: False
Q2) The fundamental purpose of a compensation system is to help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization.
A)True
B)False
Answer: True
Q3) What philosophy is the total rewards approach to compensation based on?
A) Proper incentives can change employee behaviour.
B) Intrinsic rewards are more important to people than other rewards.
C) There are many awards associated with the work environment that have value.
D) Pay is still what matters most.
Answer: C
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3
Chapter 2: A Strategic Framework for Compensation
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Q1) As the business environment has become more complex,and demands on employee performance have gotten higher,it is important to simplify compensation systems.
A)True
B)False
Answer: False
Q2) Which of the following leadership styles is appropriate for companies pursuing a classical managerial strategy?
A) The leader is controlling and employee-oriented.
B) The leader is controlling and task-oriented.
C) The leader gives free rein to employees.
D) The leader is facilitating and both task- and employee-oriented.
Answer: B
Q3) Which of the following key cultural values would be detrimental to a high-involvement organization?
A) honesty
B) trustworthiness
C) doing things the way they have always been done
D) open communication
Answer: C
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Page 4
Chapter 3: A Behavioural Framework for Compensation
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Q1) In what way are Maslow's and Hertzberg's theory similar to each other?
A) The higher order needs correspond to motivators, and lower order needs correspond to the hygienes.
B) Both Maslow and Hertzberg assume a satisfied need no longer motivates.
C) Both Maslow and Hertzberg describe how the motivation process works.
D) Both Maslow and Hertzberg deal with job satsfaction and motivation.
Answer: A
Q2) Which of the following would be an example of distributive justice?
A) Based on your performance, you believe you were given the pay raise you deserved.
B) You have the opportunity to appeal your pay raise.
C) Your managers openly share the reward decision making process with all employees.
D) Reward decisions are based on job related performance and free of bias.
Answer: A
Q3) When employees are faced with reward dissatisfaction,their two main options are to demand higher pay or find a more rewarding job.
A)True
B)False
Answer: False
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5
Chapter 4: Components of Compensation Strategy
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Q1) Which of the following compensation options typically makes up the largest proportion of an employee's pay package?
A) Benefits
B) Performance pay
C) Indirect pay
D) Base pay
Q2) An advantage of performance pay is that workers are paid less this way.
A)True
B)False
Q3) Briefly describe the three main categories of performance pay,and provide examples for each category.
Q4) As the owner of a large hotel,you expect your employees to be flexible,learn a variety of skills,and shift around from one job to another as needed. Which of the following plans will best fit your needs?
A) Competency-based pay
B) Skill-based pay
C) Team-based pay
D) Piece rates
Q5) Briefly discuss the advantages and disadvantages of using indirect pay.
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Chapter 5: Performance Pay Choices
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Q1) What can you offer your employees to balance out the self-centered perspective,caused by your piece rate system,and encourage citizenship behaviour?
A) Perks
B) Employee stock ownership
C) Merit bonuses
D) Suggestion system
Q2) The three types of profit sharing plans are the current distribution plan,the deferred payout plan,and the amortization plan.
A)True
B)False
Q3) Which of the following managerial practices,combined with an employee stock plan,will increase the performance effects of employee ownership?
A) Sharing financial information about the company
B) The use of work teams
C) Training and development
D) Employee participation in decision making
Q4) Explain the difference between goal sharing and gain sharing plans.
Q5) Identify and briefly define each of the three types of employee stock plans.
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Chapter 6: Formulating the Reward and Compensation Strategy
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Q1) The text points out four key understandings in the process of developing a compensation strategy: understanding your organizational context;understanding your people;understanding your compensation options;understanding your compensation constraints.
A)True
B)False
Q2) The key reason that executives earn so much more than other employees is because their base pay is so much higher.
A)True
B)False
Q3) Which is not one of the key understandings needed to formulate compensation strategy?
A) Understand your organizational context.
B) Understand your people.
C) Understand your technical ladders.
D) Understand your compensation constraints.
Q4) Utility Analysis is used to determine which benefits will be included in the compensation system.
A)True B)False
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Chapter 7: Evaluating Jobs: the Job Evaluation Process
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Q1) Which of the following is not a valid purpose for conducting job evaluation?
A) to control employee performance
B) to control wage costs
C) to create an equitable pay structure
D) to create perceptions of equitable pay among those covered by the system
Q2) Which of the following job evaluation methods uses human judgement to establish the job hierarchy?
A) factor comparison
B) ranking
C) point
D) statistical policy capturing
Q3) Which of the following statements is an example of job specifications?
A) arranges meetings and schedules out of town travel
B) possession of a valid driver's licence.
C) answers telephones and personal inquiries
D) reports to the head of the department
Q4) A job description is determined from a careful process of job evaluation.
A)True
B)False
Q5) What should a job description contain if it is to be useful for job evaluation?
Page 9
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Chapter 8: Evaluating Jobs: the Point Method of Job Evaluation
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Q1) Discuss the advantages and disadvantages of the point method of job evaluation.
Q2) Briefly describe the main pitfalls in designing a point method system of job evaluation.
Q3) Which is not one of the steps in the development of a point method job evaluation plan?
A) identify the compensable factors.
B) analyze the questionnaire data.
C) test the system.
D) scale the factors.
Q4) A key advantage of the point method is its high degree of precision in measuring jobs.
A)True
B)False
Q5) Which of the following would be an example of job outputs for a painter?
A) manual dexterity and the ability to mix paint
B) dealing with paint fumes and heights
C) responsible for neatly painted walls and ceilings
D) required to climb ladders and exercise continuous repetitive movement
Q7) What criteria is used to determine movement through the pay range? Page 10
Q6) What are the key considerations in establishing pay grades and pay ranges?
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Chapter 9: Evaluating the Market
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Q1) In understanding labour markets,three kinds of competitors are relevant.
A)True
B)False
Q2) Which of the following statements refers to compa-ratio?
A) calculated by averaging the pay ranges in the quartiles
B) a measure of pay dispersion across employers
C) derived by dividing mean base pay by the midpoint of the pay range
D) a calculation based on average base pay for each job
Q3) Briefly discuss some of the limitations of compensation surveys.
Q4) Which of the following is the first step in analyzing compensation survey data?
A) establishing pay grades and ranges
B) calculating a compa-ratio
C) assessing the number of job evaluation points that each job has received
D) assessing central tendency of pay and the variation across employers
Q5) Which of the following identifies the three main "third party" sources of compensation data?
A) Statistics Canada, trade journals, and government agencies
B) private agencies, trade journals, and government agencies
C) government agencies, industry groups, and consulting firms
D) consulting firms, boards of trade, and publishers
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Chapter 10: Evaluating Individuals
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Q1) You have decided to set a maximum amount of money available for merit pay and then allocate it across your departments. Which of the following approaches have you used to determine the total amount of money available for merit pay?
A) "top-down"
B) "across the board"
C) organizational performance indicators
D) "bottom-up"
Q2) Which of the following is not a characteristics of effective goals?
A) measurable
B) broad
C) time-based
D) achievable
Q3) Which of the following is not a source of performance appraisals?
A) supervisors
B) board of directors
C) subordinates
D) professional raters
Q4) Identify and briefly explain the main categories of reasons for doing appraisals.
Q5) Define and describe the key elements of performance management.
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Chapter 11: Designing Performance Pay Plans
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Q1) Which of the following bonus allocation methods best supports the philosophy of gain-sharing?
A) Everyone receives an equal share after minor adjustments are made for time worked.
B) Higher performers receive a greater share.
C) Higher paid employees receive a greater share.
D) Part-time and newly hired employees receive nothing.
Q2) What type of bonus determination formula are you using by declaring that 10 percent of pre-tax profit goes into the profit-sharing bonus pool at the end of the year?
A) discretionary
B) fixed threshold
C) fixed percentage
D) fixed step
Q3) Which of the following measures is used to constrain undesirable behaviour?
A) independent measures
B) performance measures
C) arbitrary measures
D) modifiers
Q4) Identify the fundamental ways gain-sharing and goal-sharing plans differ.
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Chapter 12: Designing Indirect Pay Plans
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Q1) Which of the following benefits are increasing most rapidly in cost?
A) formal pension plans and supplemental medical
B) supplemental employment insurance and outplacement services
C) parental and educational leaves
D) tuition reimbursements and mortgage subsidies
Q2) Identify and briefly explain the types of pension plans discussed in the text.
Q3) Providing which of the following benefits will reinforce your strong commitment to helping your employees balance work and personal activities?
A) group banking package discount rates
B) paid time off for community service
C) subsidized meals and free hot drinks
D) computer purchase plan
Q4) After mandatory benefits,what are the costliest items in most company benefits packages?
A) disability, life, and accident insurance plans
B) supplemental health and dental insurance plans
C) pension and retirement plans
D) parental and sabbatical leaves
Q5) Identify and briefly explain the most common and important employee services.
Page 15
Q6) Describe how a health care spending account works.
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Q1) Which of the following is not an appropriate use for computers?
A) computing market lines and pay policies
B) determining the relative value of jobs
C) labour market data analysis
D) online surveys of employee attitudes
Q2) Discuss the advantages and disadvantages of outsourcing compensation administration,as well as the factors involved in deciding outsourcing policy.
Q3) What main indicators should firms examine in the process of examining compensation costs?
A) budgeted costs and actual costs
B) compensation cost ratios and budget ratios
C) net profit per employee and average employee earnings
D) compensation cost ratios and average employee earnings
Q4) Identify the tasks involved in preparing to implement a compensation system.
Q5) In order to avoid resistance to a new compensation system,it is best to restrict the amount of information provided as much as possible.
A)True
B)False
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Q6) What are the primary areas of computer applications in a compensation system?