Hawassa University

Awada College of Business and Economics

Department of Management
Model Examination on the Course Organizational Behaviour
Direction:
 This model exam is prepared to support management students who are going to
take exit exam.

1. Which statement best describes organizational behaviour?

A) It is a micro approach to organizations, focusing on individuals.
B) It focuses on the whole organization as a unit of analysis.
C) It is an “umbrella” that encompasses the study of organizational theory.
D) It is a subset of organizational theory.
Answer: A
2. ________ is defined as the processes that account for an individual's intensity, direction, and
persistence of effort toward attaining a goal.
A) Leadership
B) Management
C) Learning
D) Motivation
Answer: D
3. What are the three primary behavior determinants of organizational behavior?
A) individuals, profit structure, and job satisfaction
B) individuals, groups, and job satisfaction
C) groups, structure, and profit structure
D) individuals, groups, and structure
Answer: D
4. In order to predict human behavior, it is best to supplement your intuitive opinions with
information derived in what fashion?
A) common sense
B) direct observation
C) systematic study
D) organizational theory

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 Answer: C `

5. The science that seeks to measure, explain, and sometimes change the behavior of humans
and other animals is known as ________.
A) Psychiatry
B) Psychology
C) sociology
D) political science
Answer: B

6. Mr. Bahirew is a graduate student helping to organize a study about individual job
satisfaction. The study focuses on the top five reasons that a person is satisfied or dissatisfied
in his current job. His department is surveying 200 individuals in 100 different types of
organizations. Bahirew is most likely a graduate student in the department of ________.
A) Psychology
B) Anthropology
C) political science
D) social psychology
Answer: A

7. Which field of study has contributed to OB through its research on organizational culture
and formal organization theory and structure?
A) Psychology
B) operations management
C) political science
D) Sociology
Answer: D

8. Which of the following fields has most helped us understand differences in fundamental
values, attitudes, and behavior among people in different countries?
A) Anthropology
B) Psychology
C) political science
D) operations research
Answer: A

9. Which of the following statements best describes contingency variables?

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 A) They are scientific factors based on universal truths.
B) They are factors that moderate the relationship between two or more events or
situations.
C) There is general consensus among OB researchers that they can be controlled.
D) They are simple and universal principles that explain organizational behavior.
Answer: B
10. Which of the following statements is not an implication of increased workplace diversity?
A) Managers should recognize differences between workers.
B) Diversity training should be provided.
C) It is critical that all workers be treated alike.
D) Innovation and creativity in organizations is likely to increase.
Answer: C
11. Given the climate of "temporariness" in modern organizations, employees must
________.
A) continually update their knowledge and skills.
B) be prepared to stay in the same position for longer periods of time
C) make closer connections to their peers.
D) foster friendship within the work environment
Answer: A
12. Which of the following has only recently been considered a primary dependent variable
in organizational behavior?
A) Productivity
B) Absenteeism
C) job satisfaction
D) organizational citizenship behavior
Answer: D

13. Which of the following is an example of being an efficient company?

A) operating at the lowest possible cost while yielding a higher output
B) creating the highest customer satisfaction ratings
C) meeting the production schedule
D) obtaining the highest market share
Answer: A
14. What term is used to describe voluntary and involuntary permanent withdrawal from an

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organization?
A) Absenteeism
B) Turnover
C) Downsizing
D) social atrophy
Answer: B
15. ________ is discretionary behavior that is not part of an employee's formal job
requirement, but that promotes the effective functioning of the organization.
A) Productivity
B) Organizational citizenship
C) Organizational behavior
D) Corporate strategy
Answer: B

16. Individual-level independent variables include all of the following except

A) Leadership
B) Learning
C) Motivation
D) decision-making
Answer: A

17. Who defined personality as the dynamic organization within the individual of those
psychophysical systems that determine a person's unique adjustments to his/her environment?
A) Leon Festinger
B) Dr. Sigmund Freud
C) Gordon Allport
D) Abraham Maslow
Answer: C

18. ________ is the sum total of ways in which an individual reacts to and interacts with
others.
A) Talent
B) Knowledge
C) Heredity
D) Personality
Answer: D

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19. Which of the following is the most common means of measuring personality?
A) in-depth interviews
B) self-report surveys
C) reference interviews
D) stress interviews
Answer: B

20. Which of the following is a drawback of self-report surveys?

A) They involve a large number of people in the evaluation process.
B) They may have biased results if the surveyor's judgment is biased.
C) They comprise a large number of complex statistical data.
D) They may result in the respondent lying to create a good impression.
Answer: D
21. Which of the following terms refers to factors such as one's biological, physiological, and
inherent psychological makeup determined at conception?
A) social identity
B) Heredity
C) behavioral contagion
D) self-concordance
Answer: B

22. Which of the following statements is true about personality?

A) Personality is free from the influence of the environment.
B) Personality can be measured solely through personal interviews.
C) Personality is influenced by hereditary factors.
D) Parents highly influence the development of their offspring's personality.
Answer: C
23. Which of the following does the heredity approach state?
A) An individual's personality is determined by the social background one is brought up in.
B) An individual's personality is determined by molecular structure of the genes.
C) An individual's personality is influenced by the economic settings he/she is surrounded
by.
D) A person's personality traits are largely influenced by global trends and characteristics.
Answer: B
24. According to the Myers-Briggs Type Indicator (MBTI) classification, people belonging to

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the judging type ________.
A) are quiet, shy and introverted
B) rely on unconscious processes
C) prefer their world to be ordered
D) are flexible and spontaneous
Answer: C
25. According to the Myers-Briggs Type Indicator (MBTI) classification, introverted-
intuitive-thinking-judging type of people are ________
A) Visionaries
B) Organizers
C) Conceptualizers
D) Executors
Answer: A

26. What does the Myers-Briggs Type Indicator classification of "E or I" stand for?
A) enthusiastic/ingenious
B) emotional/impulsive
C) extraverted/introverted
D) emotive/illustrative
Answer: C

27. What is the major problem with the Myers-Briggs Type Indicator as a measure of
personality?
A) It has an excess of classifications, which tends to confuse a person.
B) It forces a person to be categorized as either one type or another.
C) It does not have a clear demarcation between different personality types.
D) It tends to overemphasize intuitive traits over analytical traits.
Answer: B
28. The ________ is a personality assessment model that taps basic dimensions which
encompass most of the significant variation in human personality, namely extraversion,
agreeableness, conscientiousness, emotional stability, and openness to experience.
A) Myers-Briggs Type Indicator
B) Big Five model
C) Birkman method
D) Keirsey Temperament Sorter

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 Answer: B

29. Which dimension of the Big Five model is a measure of reliability?

A) Extraversion
B) Agreeableness
C) Conscientiousness
D) openness to experience
Answer: C

30. Which dimension of the Big Five model refers to an individual's propensity to defer to
others?
A) Conscientiousness
B) Agreeableness
C) openness to experience
D) emotional stability
Answer: B

31. Which of the following dimensions of the Big Five model indicates a person's ability to
withstand stress?
A) emotional stability
B) Extraversion
C) openness to experience
D) Conscientiousness
Answer: A

32. Which of the following is most likely to be a drawback of highly conscientious people
according to the Big Five model?
A) They engage in numerous risky behaviors, such as smoking and drinking.
B) They tend to indulge in irresponsible behavior and be disorganized.
C) They do not adapt well to changing contexts.
D) They focus on learning instead of performing a job efficiently.
Answer: C
33. Which of the following differentiates introverts from extraverts?
A) Introverts tend to be happier in their jobs in comparison to extraverts.
B) Introverts express feelings more freely compared to extraverts.
C) Introverts experience more positive emotions than extraverts.

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 D) Introverts are generally more assertive than extraverts.
Answer: A
34. ________ refers to bottom-line conclusions individuals have about their capabilities,
competence, and worth as a person.
A) Core self-evaluation
B) Authoritarianism
C) Self-monitoring
D) Machiavellianism
Answer: A

35. Which of the following statements is true about people with positive core self-
evaluations?
A) They are committed to their goals and set ambitious goals.
B) They view themselves as powerless over their environment.
C) They tend to question their capabilities and capacities.
D) They tend to be disliked by superiors and co-workers.
Answer: A
36. Which of the following personality traits indicates the degree to which a person is
unemotional and pragmatic and believes that ends can justify means?
A) Extraversion
B) Machiavellianism
C) Agreeableness
D) self-concordance
Answer: B

37. ________ refers to the tendency to be arrogant, have a grandiose sense of self-
importance, require excessive admiration, and have a sense of entitlement.
A) Asceticism
B) Stoicism
C) Narcissism
D) Machiavellianism
Answer: C
38. ________ is the process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment.
A) Sensation

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 B) Impression
C) Attribution
D) Perception
Answer: D

39. Which of the following statements is true regarding perception?

A) Perception of reality is independent of one's personality.
B) Our perception of a target is not affected by the context of the situation in which the
perception is made.
C) Our perception of reality can be different from the objective reality.
D) Our perception of reality is independent of our past experiences.
Answer: C
40. When two people witness something at the same time and in the same situation yet
interpret it differently, factors that operate to shape their perceptions reside in the ________.
A) Perceivers
B) Target
C) Timing
D) situation
Answer: A

41. Which of the following is a factor present in a target which may affect a person's
perception?
A) Attitude
B) Motive

C) Interest
D) novelty
Answer: D

42. Which of the following is a factor present in a situation which may affect a person's
perception?
A) Similarity
B) Expectation
C) Time
D) experience
Answer: C
43. Which of the following is a factor present in a perceiver which may affect perception?

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 A) Interest
B) Similarity
C) Proximity
D) background
Answer: A
44. ________ explains the ways in which we judge people differently, depending on the
meaning we assign to a given behavior.
A) Attribution theory
B) Equity theory
C) Attachment theory
D) Cultural schema theory
Answer: A

45. Attribution theory suggests that when we observe an individual's behavior, we attempt to
determine whether it was internally or externally caused. That determination, however,
depends largely on three factors. Which of the following is one of these three factors?
A) Traceability
B) Consistency

C) Verifiability
D) Relatedness
Answer: B

46. Which of the following is an example of internally caused behavior?

A) An employee was late for a team meeting because of a heavy downpour.
B) An employee was fired from work because he violated a company policy.
C) An employee could not attend an interview because of a delayed flight.
D) An employee could not come to work because he met with an accident.
Answer: B
47. Which of the following is an example of externally caused behavior?
A) An employee postpones a meeting because he overslept.
B) An employee was promoted when he achieved more than the assigned objectives.
C) An employee is late to work because of a punctured tire.
D) An employee was fired because he violated a company policy.
Answer: C
48. When individuals observe another person's behavior, they attempt to determine whether it

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is internally or externally caused. Which of the following attempts to explain this
phenomenon?
A) Pygmalion effect
B) emotional dissonance
C) attribution theory
D) two-factor theory
Answer: C

49. With reference to the attribution theory, which of the following terms indicates the extent
to which an individual displays different behaviors in different situations?
A) Flexibility
B) Consensus
C) Consistency
D) distinctiveness
Answer: D

50. If a person responds to a particular situation in the same way over a long time period,
then the attribution theory states that the behavior demonstrates ________.
A) Distinctiveness
B) Consensus
C) Consistency
D) Discontinuity
Answer: C

51. According to the attribution theory, if everyone who faces a similar situation responds in
the same way, we can say the behavior shows ________.
A) Consistency
B) Distinctiveness
C) Tractability
D) Consensus
Answer: D

52. According to the attribution theory, which of the following behaviors is most likely to be
attributed to an external cause?

A) a behavior that scores high on consensus

B) a behavior that scores low on distinctiveness

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 C) a behavior that scores high on consistency
D) a behavior that scores low on traceability
Answer: A

53. Samrawit is never late for work, but last Monday she arrived an hour late because of
heavy traffic. According to the attribution theory, Samrawit's behavior on that day scores
________.
A) high on reliability
B) low on distinctiveness
C) high on traceability
D) low on consistency
Answer: D

54. Which of the following terms best describes the tendency to underestimate the influence
of external factors and overestimate the influence of internal factors when making judgments
about the behavior of others?
A) fundamental attribution error
B) contrast effect
C) emotional dissonance
D) self-fulfilling prophecy
Answer: A
55. ________ refers to the tendency of people to draw a general impression about an
individual on the basis of a single characteristic.
A) Confirmation bias
B) Self-serving bias
C) Randomness error
D) Halo effect
Answer: D
56. The tendency of an individual to attribute his own successes to internal factor while
placing the blame for failures on external factors is known as:
A) Self-serving bias
B) Fundamental attribution error
C) Selective perceptions
D) Selective judgement
Answer: A

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57. Which of the following describes the halo effect?
A) attributing our own successes to internal factors and failures to external factors.
B) judging someone on the basis of our perception of the group to which he or she belongs.
C) interpreting a person's behavior in comparison to others recently encountered
D) drawing a general impression about an individual on the basis of a single characteristic
Answer: D
58. ________ refers to the evaluation of a person's characteristics that is affected by
comparisons with other people recently encountered who rank higher or lower on the same
characteristics.
A) Halo effect
B) Contrast effect
C) Confirmation bias
D) Stereotyping
Answer: B

59. Which of the following statements is true regarding a contrast effect?

A) It attributes success to internal factors and blames failure on external factors.
B) It involves judging a person on the basis of perception of the group to which he or she
belongs.
C) It involves evaluation of a person's features based on comparison with another person.
D) It indicates a tendency to draw a general conclusion about a person on the basis of one
feature.
Answer: C
60. Judging someone on the basis of one's perception of the group to which the person
belongs is called ________.
A) confirmation bias
B) Stereotyping
C) framing effect
D) self-serving bias
Answer: B
61. A manager believes that he should not hire older workers because they can't learn new
skills. This belief is an example of ________.
A) a fundamental attribution error
B) a confirmation bias
C) a self-serving bias

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 D) stereotyping

Answer: D

62. Which of the following best defines organizational behavior?

A) It involves the study of groups of people coming together for collective bargaining.
B) It involves the study of what people do in a company and how it affects the company's
output.
C) It involves analyzing different people in an industry with independent profit-centered
motives.
D) It involves developing exclusively the knowledge of managers and senior -level
employees.
Answer: B
63. Which of the following is true of systematic study?
A) It attributes causes and effects based on intuition.
B) It involves supporting decisions based on gut feelings.
C) It analyzes relationships based on previous experiences.
D) It involves analyzing relationships based on scientific data.
Answer: D
64. In order to predict human behavior, it is best to supplement intuitive opinions with
information derived from ________.
A) common sense
B) direct observation
C) systematic study
D) speculation
Answer: C

65. Which of the following is true of contingency variables?

A) They refer to situational factors that moderate the relationship between two or more
variables.
B) They make simple, accurate, and sweeping generalizations about concepts in
organizational behavior.
C) They indicate that everyone is motivated by money and financial perks.
D) They refer to scientific factors which are based on universal truths.

Answer: A

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66. ________ refers to basing managerial decisions on the best available scientific proof.
A) Emergency management
B) Personal knowledge management
C) Evidence-based management
D) Knowledge management
Answer: C

67. Which of the following fields of study is most likely to involve studying organizational
culture, formal organization theory and structure?

A) Sociology

B) Deontology

C) Epistemology

D) psychology
Answer: A

68. You are bringing together faculty from different behavioral disciplines to author a new
textbook in organizational behavior. Represented are professors from psychology, sociology,
social psychology, anthropology, political science, and industrial engineering.Which faculty
member is most likely to furnish information about personality, learning, and motivation?
A) Sociology
B) Psychology
C) Anthropology
D) political science
Answer: B
69. You describe to your students a new committee within the university that brings together
specialists from all different departments to develop a new interdisciplinary program. The
structure of the committee best meets the definition of the ________ structure.
A) Matrix
B) Simple
C) Boundaryless
D) Bureaucratic
Answer: A

70. ________ refers to a gut feeling not necessarily supported by research.

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 A) Intuition
B) Reasoning
C) Rationality
D) Inference
Answer: A

71. Managers who oversee the movement of jobs to countries with low-cost labor are most
likely to ________.
A) provide poor customer service
B) face opposition from labor groups
C) manage a culturally homogeneous workforce
D) lose competitive advantage by exporting jobs
Answer: B
72. Group cohesiveness is increased with each of the following except:
A) when the group is heterogeneous.
B) when members spend time together.
C) when external threats exist.
D) when the group is physically isolated.
Answer: A
73. ________ refers to the heterogeneity of organizations in terms of gender, age, race,
ethnicity, sexual orientation, and inclusion of other diverse groups.
A) Workforce associability
B) Workforce diversity
C) Organizational congruity
D) Operational homogeneity
Answer: B

74. Which of the following should employees undertake to deal with "temporariness" in the
modern work climate?
A) continually update their knowledge and skills to perform new job requirements
B) be prepared to work in the same position for longer periods of time
C) have closer connections with peers and subordinates
D) avoid unpredictable situations to avert taking risks
Answer: A

75. Which of the following terms best describes organizations that allow people to

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communicate and work together even though they may be thousands of miles apart?
A) networked organizations
B) hierarchical organizations
C) matrix organizations
D) flat organizations
Answer: A

76. Which of the following is the major challenge for managers in a fully networked
organization?
A) eliminating the need for paper communication by relying entirely on e-mail, file
transfers, and the like
B) retaining team members who can easily move to another employer when demand for
their services changes
C) maintaining a "virtual office" through the use of computers, interoffice networks, and
the internet
D) managing people who work together but are geographically separate
Answer: D
77. A(n) ________ is an abstraction of reality, a simplified representation of some real-world
phenomenon
A) Model
B) Process
C) Outcome
D) Obective
Answer: A
78. Which of the following is one of the three variables proposed by a basic OB model which
refers to actions that individuals, groups, and organizations engage in as a result of inputs?
A) Processes
B) Scrutinization
C) Association
D) evaluation
Answer: A
79. ________ is a shared system of meaning held by the organization's members that
distinguishes the organization from other organizations.
A) Institutionalization

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 B) Organizational culture
C) Socialization
D) Corporate image
Answer: B

80. Which of the following is not a primary characteristic that captures the essence of
organizational culture?
A) attention to detail
B) formality orientation
C) team orientation
D) outcome orientation
Answer: B

81. ________ is the characteristic of organizational culture that addresses the degree to which
management decisions take into consideration the effect of outcomes on people within the
organization.
A) Humanistic
B) Community
C) People orientation
D) Relationship
Answer: C

82. The key characteristic of organizational culture that addresses the degree to which people
are competitive rather than easygoing is termed ________.
A) Assertiveness
B) Competitiveness
C) Aversiveness
D) aggressiveness
Answer: D

83. The key characteristic of organizational culture that addresses the degree to which
employees are expected to exhibit precision is termed ________.
A) accuracy orientation
B) Accountability
C) attention to detail
D) Stability

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 Answer: C

84. Cultures within an organization that are defined by departmental designations are often
called ________.
A) micro-cultures
B) Subcultures
C) divisional cultures
D) counter cultures
Answer: B

85. Which characteristic is not reflective of subcultures?

A) typically defined by department designations
B) rejects the core values of the dominant culture
C) usually defined by geographical separation
D) includes values unique to members of a department or group
Answer: B
86. The primary or dominant values that are accepted throughout the organization are known
as ________.
A) foundational values
B) core values
C) shared values
D) institutional traits
Answer: B

87. Which of the following is characteristic of a strong culture?

A) little influence over members' behavior
B) low behavioral controls
C) narrowly shared values
D) intensely held values
Answer: D

88. Which of the following is most likely to result from a strong organizational culture?
A) low employee turnover
B) low employee satisfaction
C) high employee turnover
D) low organizational commitment

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 Answer: A

89. The unanimity of a strong culture contributes to all of the following except:
A) Cohesiveness
B) higher product quality
C) organizational commitment
D) lower employees' propensity to leave the organization
Answer: B

90. Which of the following is NOT a function of culture?

A) It conveys a sense of organizational identity.
B) It shapes employee attitude and behavior.
C) It reduces the stability of the social system.
D) It has a boundary-defining role.
Answer: C
91. The process through which employees are adapted to an organization's culture is called
________.
A) training and development
B) Socialization
C) Institutionalization
D) intimidation
Answer: B

92. Which of the following is the first stage of the socialization process?
A) Prearrival
B) Encounter
C) Metamorphosis
D) Commitment
Answer: A

93. The correct order for the stages of the socialization process is ________.
A) prearrival, metamorphosis, encounter
B) prearrival, encounter, ritual
C) prearrival, ritual, encounter
D) prearrival, encounter, metamorphosis

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 Answer: D

94. During which stage of the socialization process do individuals come with a set of values,
attitudes and expectations?
A) Prearrival
B) Encounter
C) Metamorphosis
D) Ritual
Answer: A

95. Which of the following steps could your supervisor take to best help you develop a
commitment to your new company?
A) discourage you from putting too much weight on your initial expectations
B) discourage you from putting too much emphasis on your perception of the organization
C) encourage you to look carefully at your own assumptions, which may be biased
D) encourage you to develop friendship ties within the organization
Answer: D
96. Specific orientation and training programs that segregate new employees from the
ongoing work setting are examples of which type of entry socialization?
A) individual socialization.
B) collective socialization.
C) formal socialization.
D) investiture socialization
Answer: C

97. To create a more ethical culture, management should do all of the following except:
A) serve as a visible role model.
B) cover up unethical acts.
C) communicate ethical expectations.
D) provide protective mechanisms
Answer: B
98. All of the following factors increase the probability that cultural change can be
successfully implemented except:
A) the existence of a dramatic crisis.

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 B) a positive organizational culture.
C) a turnover in the organization's top leadership.
D) an organization that is both young and small.
Answer: B
99. ________ is defined as the processes that account for an individual's intensity, direction,
and persistence of effort toward attaining a goal.
A) Leadership
B) Management
C) Emotional labor
D) Motivation
Answer: D

100. According to the two-factor theory proposed by Herzberg, which of the following is
considered a hygiene factor?
A) promotional opportunities
B) quality of supervision
C) Recognition
D) responsibility
Answer: B

101. Which of the following statements is true according to McClelland's theory of needs?
A) People with a high achievement need prefer tasks that have a high level of risk.
B) People with a high achievement need are interested in motivating others to do well.
C) People with a high need for power and affiliation often make good managers in large
firms.
D) People with a high need for power and a low need for affiliation often make the best
managers.
Answer: D
102. Which of the following statements is true regarding goal-setting theory?
A) Goal commitment is more likely when individuals have an external locus of control.
B) Externally generated feedback is more powerful than self-generated feedback.
C) Generalized goals produce a higher level of output than specific goals.
D) People do better when they get feedback on how well they are progressing toward their
goals.
Answer: D

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103. Which of the following statements is true regarding an organization's culture?
A) Organizational culture is evaluative rather than descriptive.
B) A dominant culture expresses the core values shared by a majority of the organization's
members.
C) A strong culture reduces employee satisfaction and increases employee turnover.
D) Subcultures and dominant cultures do not share any common values.
Answer: B
104. The emotional, or feeling component of a person's attitude is called ________.
A) complex understanding
B) the cognitive component
C) the affective component
D) the behavior component
Answer: C

105. The belief that "violence is wrong" is an evaluative statement. Such an opinion
constitutes the ________ component of an attitude.
A) Cognitive
B) Affective
C) Reflective
D) Behavioral
Answer: A

106. Any incompatibility between two or more attitudes or between behavior and attitudes
results in ________.
A) organizational dissonance
B) cognitive dissonance
C) attitudinal clarification
D) values clarification
Answer: B

107. The degree to which a person identifies with his or her job, actively participates in it,
and considers his or her performance as being important to self-worth is ________.
A) job satisfaction
B) job involvement
C) job stability
D) organizational commitment

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 Answer: B

108. Which of the following is not considered a major job attitude by OB researchers?
A) job satisfaction
B) positive personality
C) organizational commitment
D) employee engagement
Answer: B

109. According to Herzberg, when ________ are adequate, people won't be dissatisfied, but
they will also not be satisfied.
A) achievement needs
B) affiliation needs
C) motivational factors
D) hygiene factors
Answer: D

110. Which one of the following characteristics is not part of a definition of a group?
A) Interdependent
B) two or more members
C) organizationally assigned goals
D) Interacting
Answer: C
111. Which of the following is not a sub-classification of groups?
A) Command
B) Task
C) Work
D) Friendship
Answer: C
112. Three employees from different departments who regularly eat lunch together are an
example of a(an) _____ group.
A) Formal
B) Informal
C) Command
D) Task

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 Answer: B
113. Which of the following statements is true?
A) All task groups are also command groups.
B) All command groups are also task groups.
C) All task groups are also friendship groups.
D) All command groups are also informal groups.
Answer: B
114. The group type that is determined by the organization chart is:
A) the friendship group.
B) the interest group.
C) the reference group.
D) the command group.
Answer: D
115. Which one of the following groups is organizationally determined?
A) Friendship
B) Task
C) Interest
D) Volvo owners
Answer: B
116. The group type that is not limited to its immediate hierarchical superior but can cross
command relationships is the:
A) task group.
B) command group.
C) interest group.
D) friendship group.
Answer: A
117. Which of the following statements most accurately describes interest groups?
A) They are longer lasting than command groups.
B) They rarely satisfy the needs of members.
C) They are formed because of some common interest.
D) They are not found in manufacturing organizations.
Answer: C
118. Which of the following is not a reason people join groups?
A) Security

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 B) Status
C) Equity
D) Power
Answer: C
119. According to goal-setting theory, goals are more likely to have a stronger impact on
performance when ________.
A) goals have long time frames for completion
B) tasks are complex rather than simple
C) tasks are novel rather than well learned
D) tasks are independent rather than interdependent
Answer: D
120. Which is not one of the stages in the five-stage group-development model?
A) Forming
B) Worming
C) Storming
D) Norming
Answer: B
121. Which is the stage of group development characterized by close relationships and
cohesiveness?
A) Bonding
B) Norming
C) Performing
D) Storming
Answer: B
122. Which of the following statements is true regarding goal-setting theory?
A) Externally generated feedback is more powerful than self-generated feedback.
B) Generalized goals produce a higher level of output than specific goals.
C) People do better when they get feedback on how well they are progressing toward their
goals.
D) Assigned goals generate greater goal commitment in low rather than high power-distance
cultures.
Answer: C
123. The stage in group development which is characterized by uncertainty is:
A) norming.

Prepared By: Gizaw B.(MBA) 26 OB model exam

 B) storming.
C) forming.
D) performing.
Answer: C
124. After which stage of a group’s development is there a relatively clear hierarchy of
leadership within the group?
A) Norming
B) Storming
C) Forming
D) Performing
Answer: B
125. Which of the following statements is true according to McClelland's theory of needs?
A) People with a high achievement need prefer tasks that have a high level of risk.
B) People with a high achievement need are interested in motivating others to do well.
C) People with a high need for power and affiliation often make good managers in large firms.
D) People with a high need for power and a low need for affiliation often make the best
managers.
Answer: D
126. After which stage of a group’s development has the group formed a common set of
expectations of member behaviors?
A) Norming
B) Storming
C) Forming
D) Performing
Answer: A
127. When the group energy is focused on the task at hand, the group has moved to the:
A) performing stage.
B) norming stage.
C) storming stage.
D) adjourning stage.
Answer: A
128. All of the following are reasons some groups are more successful than others except:
A) age of group members.
B) size of the group.

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 C) level of conflict.
D) internal pressures for conformity.
Answer: A
129. Which of the following is not an external condition imposed on the group?
A) group composition
B) authority structures
C) formal regulations
D) performance evaluation system
Answer: A
130. The more formal regulations that the organization imposes on its employees:
A) the more dissatisfied the employees will be.
B) the more productive the work group members will be.
C) the more the behavior of the work group members will be consistent and predictable.
D) the less productive the work group members will be.
Answer: C
131. Which external condition imposed on the group outlines the organization’s goals and the
means for attaining these goals?
A) organization’s overall strategy
B) authority structure
C) formal regulations
D) performance evaluation system
Answer: A
132. Erkinesh wants to become the head of the HR department. Although the role comes with a
generous salary hike and will put her in charge of several subordinates, she is mainly pursuing
this position because she believes she can do the job better than anyone else and wants people to
know this. According to McClelland's theory of needs, which of the following needs is Erkinesh
primarily driven by in this case?
A) the need for stability
B) the need for achievement
C) the need for security
D) the need for affiliation
E) the need for power
Answer: B

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133. Which external condition imposed on the group determines the kinds of people that will be
in its work groups?
A) selection process
B) authority structure
C) performance evaluation system
D) formal regulations
Answer: A
134. The unwritten law that defines for employees standards of acceptable and unacceptable
behavior is the:
A) organizational culture.
B) employee handbook.
C) feedback employees receive from their superiors.
D) informal discussion among co-workers.
Answer: A
135. Which of the following is not true concerning knowledge, skills, and abilities of group
members?
A) Part of a group’s performance can be predicted by addressing the knowledge, skills, and
abilities of its individual members.
B) A group’s performance is not merely the summation of its individual members’ abilities.
C) Interpersonal skills consistently emerge as important for high work group performance.
D) Group members do not need conflict management skills.
Answer: D
136. Which one of the following personality traits tends to be positively related to group
productivity?
A) Dominance
B) Authoritarianism
C) Sociability
D) Unconventionality
Answer: C
137. According to the two-factor theory proposed by Herzberg, which of the following is
considered a hygiene factor?
A) promotional opportunities
B) quality of supervision
C) Achievement

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 D) Recognition
Answer: B
138. Which of the following personality traits is generally negatively related to group
productivity?
A) Initiative
B) Unconventionality
C) Sociability
D) Openness
Answer: B
139. Which of the following is a motivational factor according to Herzberg's two-factor theory?
A) quality of supervision
B) Recognition
C) relationships with others
D) company policies
Answer: B
140. Span of control is a key element of an organization's structure. Which of the following key
questions is addressed by this element?
A) To whom do individuals and groups report?
B) To what degree will there be rules and regulations to direct employees and managers?
C) How many individuals can a manager efficiently and effectively direct?
D) To what degree are activities subdivided into separate jobs?
Answer: C
141. Formal leadership, roles, group norms, group status, and group size are examples of group:
A) structural variables.
B) role definitions.
C) status symbols.
D) perceptions of reality.
Answer: A
142. Which of the following is not true regarding formal leadership?
A) The formal leader can play an important role in the group’s success.
B) The formal leader is typically identified by titles such as manager, supervisor, foreman, and
project leader.
C) Formal leadership does not shape the behavior of members.
D) Almost every work group has a formal leader.

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 Answer: C
143. A _____ is a set of expected behavior patterns associated with a particular position in a
social unit.
A) Role
B) Norm
C) Stereotype
D) status hierarchy
Answer: A
144. Which of the following is true of role identity?
A) The attitudes and actual behaviors consistent with a role create the role perception.
B) People have the ability to shift roles rapidly when they recognize that the situation requires
change.
C) People do not have the ability to shift roles rapidly.
D) Everyone is required to play one specific role in every situation.
Answer: B
145. How others believe you should act in a given situation is a:
A) norm.
B) stereotype.
C) role expectation.
D) role perception.
Answer: C
146. When an individual finds that compliance with one role requirement may make more
difficult the compliance with another, the result is:
A) role conflict.
B) role expectation.
C) role perception.
D) role identity.
Answer: A
147. Acceptable standards of behavior that are shared by the group’s members are:
A) norms.
B) rules.
C) sanctions.
D) opinions.
Answer: A

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148. _____ is a socially defined position or rank given to groups or group members by others.
A) Position
B) Promotion
C) Status
D) Role
Answer: A
149. Which of the following is not true?
A) Status has been shown to have some interesting effects on the power of norms and the
pressures to conform.
B) High status members of groups are given more freedom to deviate from norms than are
other group members.
C) Low status members of groups are given more freedom to deviate from norms than are
other group members.
D) High status people are better able to resist conformity pressures than their lower status
peers.
Answer: C
150. In comparing the results of individual and group performance on a rope-pulling task,
Ringelmann concluded that:
A) the larger the group, the greater the individual productivity.
B) increases in group size are inversely related to individual performance.
C) total productivity tends to decline in large groups.
D) group size is not a determinant of individual productivity.
Answer: B
151. The degree to which group members are attracted to one another is called:
A) cohesiveness.
B) integration.
C) sociability.
D) reliability.
Answer: A
152. According to the expectancy theory, the performance-reward relationship is the degree to
which ________.
A) the individual believes performing at a particular level will lead to desired outcomes.
B) organizational rewards satisfy an individual's personal goals or needs.
C) the individual believes that exerting a given amount of effort will lead to performance.

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 D) organization rewards correspond with the individual's level of effort.
Answer: A
153. If cohesiveness is high and performance norms are low:
A) internal conflict will be high.
B) internal conflict will be low.
C) productivity will be high.
D) productivity will be low.
Answer: D
154. __________ is an action of two or more substances that results in an effect that is different
from the individual summation of the substances.
A) Brainstorming
B) Power diffusion
C) Synergy
D) Effectiveness
Answer: C
155. Jemal is a salaried employee whose job is to develop content for online web sites. He
discovers that he is paid substantially more than his colleagues even though their jobs and levels
of performance are very similar. According to the equity theory, what impact is this discovery
most likely to have on his behavior and performance?
A) He will reduce the amount of work that he does on a daily basis.
B) He will compare his earnings to those of another group of employees.
C) He will increase his productivity and/or the overall quality of his work.
D) He will seek a position within the company commensurate with his pay.
Answer: C
156. Which is not a weakness of group decision making?
A) It is time consuming.
B) There is increased diversity of views.
C) It suffers from ambiguous responsibility.
D) It can be dominated by one or a few members.
Answer: B
157. _____ is a phenomenon in which group pressures for conformity deter the group from
critically appraising unusual, minority, or unpopular views.
A) Group conformity
B) Groupshift

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 C) Groupthink
D) Compromise

Answer: C
158. All of the following are explanations for the phenomenon of groupshift except:
A) discussion creates familiarization among members.
B) most first-world societies value risk.
C) the group leader usually gets the credit or blame for the group action.
D) the group diffuses responsibility.
Answer: C
159. Which level of Maslow's hierarchy of needs deals with satisfying one's hunger, thirst, and
other bodily needs?
A) Safety
B) Physiological
C) Social
D) Psychological
Answer: B
160. According to the equity theory, there are four referent comparisons. The referent
comparison known as other-inside refers to ________.
A) An employee's experiences in a different position inside the employee's current
organization.
B) an employee's experiences in a different position outside the employee's current
organization.
C) another individual or group of individuals inside the employee's organization
D) another individual or group of individuals outside the employee's organization.
Answer: C
161. ________ refers to an individual's belief that he or she is capable of performing a task.
A) Reinforcement
B) Affect intensity
C) Self-efficacy
D) Self-determination
Answer: C
162. According to Maslow's hierarchy of needs, which of the following is a lower-order need?
A) Social
B) Safety

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 C) Esteem
D) self-actualization
Answer: B
163. If Abraham is categorized as a Theory X manager, which of the following behaviors is he
most likely to exhibit?
A) He will trust his employees to use their discretion in most matters.
B) He will strictly control all the details of any project he is managing.
C) He will delegate authority extensively to junior managers.
D) He will let his employees choose their own goals.
Answer: B
164. According to Douglas McGregor's Theory Y, a manager assumes that employees
________.
A) need to be directed
B) prefer to be controlled
C) learn to accept responsibility
D) attempt to avoid work
Answer: C
165. Which of the following needs in Maslow's hierarchy refers to the drive to become what one
is capable of becoming?
A) Social
B) self-actualization
C) Physiological
D) Esteem
Answer: B
166. ________ refers to the degree to which decision making is concentrated at a single point in
the organization.
A) Formalization
B) Departmentalization
C) Centralization
D) Line of command
Answer: C
167. Which of the following theories discusses three relationships: effort-performance
relationship, performance-reward relationship, and rewards-personal goals relationship?
A) goal-setting theory

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 B) self-efficacy theory
C) equity theory
D) expectancy theory
Answer: D
168. ________ is defined as a process that begins when one party perceives another party has or
is about to negatively affect something the first party cares about.
A) Problem solving
B) Assessment
C) Conflict
D) Negotiation
Answer: C
169. Activities that influence the distribution of advantages and disadvantages within the
organization are:
A) human resources
B) political behavior
C) tactical planning activities
D) strategic planning activities.
Answer: B
170. Which one of the following is not implied in the definition of power?
A) Influence
B) Potential
C) Dependency
D) actualization
Answer: D
171. Which of the following statements is true regarding a virtual organization?
A) A virtual organization is sometimes called matrix organization.
B) A virtual organization is highly decentralized.
C) A virtual organization is characterized by a high degree of departmentalization.
D) A virtual organization tends to have unclear roles, goals, and responsibilities.
Answer: D
172. Which of the following is a drawback of a narrow span of control?
A) It increases effectiveness.
B) It is more expensive.
C) It encourages employee autonomy.

Prepared By: Gizaw B.(MBA) 36 OB model exam

 D) It increases participatory decision making.
Answer: B
173. The reporting structure and division of labor in an organization is conveyed by the
A) Organization chart
B) Span of control
C) Organization hierarchy
D) Span of management
Answer: A
174. Which of the following statements is true regarding a matrix structure?
A) It breaks the unity-of-command concept.
B) It cannot achieve economies of scale.
C) It reduces ambiguity about who reports to whom.
D) It avoids duplication of activities.
Answer: A
175. Which of the following is created through division of labor and job specialization?
A) Integration
B) Coordination
C) Differentiation
D) Span of control
Answer: C
176. Chain of command is a key element of an organization's structure. Which of the following
key questions is addressed by this element?
A) How many individuals can a manager efficiently and effectively direct?
B) To whom do individuals and groups report?
C) On what basis will jobs be grouped together?
D) To what degree are activities subdivided into separate jobs?
Answer: B
177. The process by which different individuals and units perform specific parts of the larger
task is called
A) Accountability
B) Authority
C) Responsibility
D) Specialization
Answer: D

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178. You explain to your students the structure of a local grocery store situated in your
neighborhood. The store employs two full-time employees, a salesperson and a cashier. The
owner of the store acts as its manager and makes all the decisions. Which of the following
organizational structures is being described by you?
A) matrix structure
B) virtual structure
C) Bureaucracy
D) simple structure
Answer: D
179. A ________ is consistent with recent efforts by companies to reduce costs, cut overhead,
speed up decision making, increase flexibility, get closer to customers, and empower employees.
A) wider span of control
B) high degree of formalization
C) longer chain of command
D) lack of work specialization
Answer: A
180. Which of the following terms refers to the rights inherent in a managerial position to give
orders and expect them to be obeyed?
A) Chain of command
B) Authority
C) Power
D) Span of control
Answer: B
181. Which of the following statements is true regarding work specialization?
A) Work specialization decreases the time spent in changing tasks.
B) Work specialization increases the cost of finding and training workers to do specific and
repetitive tasks.
C) Work specialization decreases efficiency and productivity.
D) Work specialization hinders efficient use of employee skills.
Answer: A
182. A plant manager organizes a plant by separating engineering, accounting, manufacturing,
personnel, and purchasing into departments. The plant is departmentalized on the basis of
________.
A) target customer

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 B) Product
C) Function
D) Geography
Answer: C
183. Which of the following statements is true about the simple structure?
A) It is very expensive to operate.
B) It is characterized by a high degree of formalization.
C) It becomes increasingly inadequate as an organization grows.
D) It is characterized by a narrow span of control.
Answer: C
184. Sena's company needs to dramatically cut costs, speed decision making, and increase
flexibility. Which of the following structural decisions will help her achieve the desired
objectives?
A) increasing the span of control
B) decreasing the unity of command
C) increasing the degree of formalization
D) decentralizing management decisions
Answer: A
185. The unbroken line of authority that extends from the top of the organization to the lowest
echelon and clarifies who reports to whom is termed ________.
A) chain of command
B) path of power
C) span of control
D) line of responsibility
Answer: A
186. Which of the following types of organizational designs combines two forms of
departmentalization, functional and product?
A) simple structure
B) matrix structure
C) virtual structure
D) boundaryless structure
Answer: B
187. A ________ is characterized by a low degree of departmentalization, wide spans of control,
authority centralized in a single person, and little formalization.

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 A) matrix organization
B) simple structure
C) networked organizational structure
D) hierarchical organization
Answer: B
188. In an organization, top managers make all the decisions and lower-level managers merely
carry out their directives. This organization is most likely to be characterized by ________.
A) a narrower span of control
B) a low degree of formalization
C) a high degree of centralization
D) a high degree of departmentalization
Answer: C
189. Mr. Markos is the owner of a local shoe business. He has fifteen employees who report
directly to him, he makes all the decisions regarding the type and quality of shoes, and he looks
after the shop's finances. Which type of organizational structure does Mr. Markos have?
A) virtual structure
B) matrix structure
C) boundaryless structure
D) simple structure
Answer: D
190. Which of the following statements is true regarding a bureaucracy?
A) Bureaucracies are characterized by a low degree of formalization.
B) Typically, bureaucracies have wider spans of control.
C) Bureaucracies can get by with less talented middle- and lower-level managers.
D) Bureaucracies encourage employee empowerment.
Answer: C
191. Which one of the following problems is most likely to occur in a matrix structure?
A) decreased response to environmental change
B) increased social loafing
C) loss of economies of scale
D) employees receiving conflicting directives
Answer: D
192. A ________ organization is a small, core organization that outsources major business
functions.

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 A) Centralized
B) Virtual
C) Bureaucratic
D) Matrix
Answer: B
193. Which one of the following is true about coalition formation?
A) Coalitions seek to minimize their size
B) Coalitions usually precede uses of individual power
C) Coalitions are more likely to form where tasks are non-routine
D) Coalitions are more likely to be created where there is interdependence
Answer: D
194. ________ is a systematic effort to make an organization leaner by selling off business
units, closing locations, or reducing staff.
A) Removing boundaries
B) Departmentalizing
C) Decentralizing
D) Downsizing
Answer: D
195. Which of the following is typically a characteristic of the mechanistic model of
organization?
A) low formalization
B) rigid departmentalization
C) decentralized management
D) wide spans of control
Answer: B
196. Which of the following dimensions of an environment describes the degree to which the
environment can support growth?
A) Capacity
B) Volatility
C) Sustainability
D) Complexity
Answer: A
197. Which of the following is not an individual factor related to political behavior?
A) personality traits

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 B) perceived alternatives
C) declining organizational resources
D) expectations of success
Answer: C
198. The power that the College Dean has been granted by the University over the faculty is
termed:
A) coercive power
B) reward power
C) legitimate power
D) expert power
Answer: C
199. Which is not a contingency variable that affects the selection of a power tactic?
A) the organization’s formal policies and procedures
B) the manager’s relative power
C) the manager’s objectives for wanting to influence
D) the organization’s culture
Answer: A
200. Leadership focuses on the ________.
A) importance of lateral and upward influence patterns
B) elimination of dependency in relationships
C) downward influence of a leader on his or her followers
D) ways to increase a leader’s following
Answer: C
201. Which of the following statements is true regarding power?
A) A is said to have power over B if B controls something that A desires.
B) The greater A's dependence on B, the greater A's power in the relationship.
C) If A has the capacity to influence the behavior of B, then A is said to have power over B.
D) A can have power over B only when A and B have similar goals.
Answer: C
202. Which of the five sources of power is most likely to negatively affect an employee's job
satisfaction?
A) Legitimate
B) Coercive

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 C) Expert
D) Referent
Answer: B
203. The _____ relationship can be seen in the power of occupational categories. In occupations
where supply is low relative to demand, compensation is more attractive.
A) Substitutability
B) scarcity-dependency
C) referent power
D) importance-dependency
Answer: B
204. Which of the following types of power requires acceptance of the leader's authority by
members of the organization?
A) Referent
B) Coercive
C) Legitimate
D) Expert
Answer: C
205. Which of the following is not considered to be a power tactic?
A) Substitution
B) Ingratiation
C) Consultation
D) Rational persuasion
Answer: A
206. Which of the following statements is true regarding legitimate power?
A) Legitimate power develops out of admiration of another and a desire to be like that person
B) Legitimate power comes from an individual's unique characteristics.
C) Legitimate power is broader than the power to coerce and reward.
D) Celebrities who endorse products in commercials wield legitimate power over people.
Answer: C
207. When your superior offers you a raise if you will perform additional work beyond the
requirements of your job, he/she is exercising:
A) referent power
B) coercive power
C) reward power

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 D) expert power
Answer: C
208. An individual most likely to engage in political behavior would have all of the following
except:
A) a high need for power
B) a high ability to self monitor
C) a low need for security
D) an internal locus of control.
Answer: C
209. What is the relationship between unethical politicking and impression management?
A) Unethical politicking is always the result of impression management.
B) Impression management may be the motive for unethical politicking.
C) Impression management usually causes someone to unethically politick.
D) Unethical politicking and impression management go hand in hand.
Answer: C

Prepared By: Gizaw B.(MBA) 44 OB model exam