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AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS
Participants in flexible learning programs have limitations on the nature of the
time they can spend on learning. Typically they are employed fully or partially,
pursuing higher studies or have other social and familial responsibilities.
Availability of time is a great constraint to these students.
To aidthe participants,we have developedfour unique learningtools as below:
Bullet Notes : Helps in introducing the important concepts in each unit
of curriculum, equip the
student during preparation of
examinations and
Case Studies : Illustrate the concepts through real life experiences

Workbook : Helps absorption of learning through questions based on reallife nuggets
PEP Notes :Sharing notes of practices and experiences in the Industry will help the student to
rightly perceive and get inspired to learn concepts at the cutting edge
application level.placementinterviews
Why are these needed?
 Adults learn differently from B. School or college going
students who spend long hours at campus.
 Enhancing analytical skills through application related learning
kits trigger experiential learning
 Availability of time is a challenge.
 Career success increasingly depends on continuous learning
and success
What makes it relevant?

How is it useful?


Where does this lead to?
As and when you get 5 to 10 minutes you can read one of these and absorb and comprehend.
Spending more time is your choice.
You can use the time in travel, waiting for meetings, lunch time, small breaks or at home
usefully.
Through these tools, the learning bytes are right sized for ease of learning for time challenged
participants.
The content starts from practice and connect to precept making it easy to connect to industry
and retain.
They can be connectedto continuous assessment process of the academic program.
Practitioners can use their real life knowledge and skill to enhance learning skills.
Immediate visualization of the practical dimension of the concept will offer a rich learning
experience.

Easier to move ahead in the learning process.

Will facilitate the student to complete the program earlier than
otherwise.Helpsstay motivated and connected.
When is it useful?


Organizational
Behavior
Workbook

The ICFAI Foundation for Higher Education(IFHE), Hyderabad
April, 2015.All rights reserved
No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or
transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without
prior permission in writing from The ICFAI Foundation for Higher Education (IFHE), Hyderabad.
Ref. No. OB-WB-IFHE – 042015
For any clarification regarding this book, the students may please write to The ICFAI Foundation for
Higher Education (IFHE), Hyderabad giving the above reference number of this book specifying chapter
and page number.
While every possible care has been taken in type-setting and printing this book, The ICFAI Foundation
for Higher Education (IFHE), Hyderabad welcomes suggestions from students for improvement in future
editions.
Our E-mail id:cwfeedback@icfaiuniversity.in
ii

INTRODUCTION
Participants in ICFAI University Programs are eager to learn more from practice. They realize
that application orientation can enhance their learning and subsequent usage of management
precepts and practices. Picking out the principle behind real world events is critical to this
learning, as also identifying the alternative/solution using the principle. Towards this end the
institution has reengineered the Workbook.
The Workbook is a set of questions which typically illustrate a real life context from
contemporary corporate happenings and then poses a question to the student for reflection. The
narration of question helps the reader to reinforce the concept and facilitates the student to
enhance his/her capabilities in analyzing and interpreting the conceptual frameworks.
The examples depicting the names of existing persons or companies are taken from news
clippings/published articles from various public domain websites or website of respective
companies. Since live examples reinforce the understanding of the students, the possible
responses are connected to the concepts taught directly or indirectly. In many cases the
alternatives provided are choices in a work situation based on alternative approaches.
These questions provoke the learner to start thinking from the application side and connect to
the knowledge that he will use to solve. Practitioners can connect better thereby improving the
learning experience. This form of assessment improves learning while assessing whereas the
conventional form is more about assessment of learning.
The learning outcomes expected are:
The examples are linked back to application of theoretical knowledge in the illustrated
real-time situation. This facilitates the student to develop analytical approach in similar
or related situations.
Application based approach which enhances absorption and retention significantly.
Exposure to the current incidences and situations in relation to important concepts of
the subject.
The Workbook format is also used for Assessment.
iii

DETAILED CURRICULUM
UNIT 1 UNDERSTANDING ORGANIZATIONAL BEHAVIOR
Definition of Organizational Behavior - Management Roles: Interpersonal Roles-figure head, leadership,
liaison role; Informational Roles – monitor, disseminator, spokesperson; Decision Roles - entrepreneur,
disturbance handler, resource allocator, negotiator - Management Skills: Technical Skills, Human Skills,
Conceptual Skills - Consistency vs. Individual Differences - Theoretical Framework: Cognitive
Framework, Behavioristic Framework, Social Learning Framework, A Model of Organizational Behavior
- Challenges and Opportunities for Organizational Behavior: Creation of Global Village, Improving
Quality and Productivity, Improving People Skills, Management Control to Empowerment, Stability to
Flexibility, Improving Ethical Behavior - Models of Organizational Behavior: The Autocratic Model,
The Custodian Model, The Supportive Model, The Collegial Model
UNIT 2 FOUNDATIONS OF HUMAN RELATIONS AND ORGANIZATIONAL BEHAVIOR
Definition of Human Relations and Organizational Behavior: Human Relations, Organizational Behavior
(OB) - Historical Development of Human Relations and Organizational Behavior: Scientific
Management, Research Studies, Other Developments, Interdisciplinary Studies, The Mature Outlook,
The Emergence of Human Relations and Organizational Behavior - Contribution of other Disciplines to
Human Relations and Organizational Behavior: Psychology – Social Psychology, Industrial Psychology;
Sociology, Anthropology, Economics, Political Science - Significance of Human Relations and
Organizational Behavior: Development of Skills, Organizational Performance - Research Foundation for
Organizational Behavior: Hawthorne Studies – The Illumination Experiments, Relay Assembly Room
Experiments, interview Phase, Bank Wiring observation room experiments; Theory X; Theory Y; Theory
Z
UNIT 3 UNDERSTANDING PEOPLE AND ORGANIZATIONS
Uniqueness of Human Beings - Human Limitations - Influence of Internal and External Factors on
Human Behavior: Instinct vs. Environment, Personality vs. Environment, Cognition vs. Environment -
Understanding Behavior: Learning- Situated Learning, Action Learning, Incidental Learning, Associative
Learning, Instrumental Learning - Why Organizations Exist : What is an Organization?, Goals and Goal
Setting, Management, Problems Confronting Managers – Size, Complexity, Technology - Organizational
Tasks: Task Design and Efficiency, Task Design and Motivation - The Social Aspect of Organization
UNIT 4 DIVERSITY AND ETHICS
Concept and Nature of Diversity: Reasons for the emergence of diversity – Changing demographic
structure of the workforce, Government legislation and lawsuits alleging discrimination, Recruiting best
talent, Increasing globalization; Specific Characteristics of Diversity – Age, Gender, Ethnicity, Education
- Managing Diversity in Organization: Creation of Family-friendly Workplaces, Providing Diversity
Training to Employees, Developing Mentoring Programs for Employees - Individual and Organizational
Approaches to Managing Diversity: Individual Approaches - Learning, Empathy; Organizational
Approaches – Testing, Training, Mentoring, Alternative work schedules - Developing the Multi-cultural
Organization: Exclusionary organization, Club organization, Compliance organization, Affirmative
action organization, Redefining organization, Multicultural organization - Ethics and Ethical Behavior in
Organization: Sexual Harassment, Pay and Promotion Discrimination, Employee Privacy Issues
UNIT 5 MANAGING COMMUNICATION
Definition of Communication - Historical Background of the Role of Communication: Henry Fayol‟s
Contribution to Communication, Chester Barnard‟ Contribution to Communication, The Modern
Perspective - Importance o f Communication - The Two-way Communication Process: Developing an
Idea, Encoding the message, Transmitting the message, Reception of message, Decoding the message,
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Acceptance or rejection of message, Using the information, Giving feedback - Problems Associated with
Two-way Communication - Nonverbal Communication: Body Language and Paralanguage;
Understanding Nonverbal Communication, Observe keenly what is happening, Consider differences
between verbal statements and nonverbal behavior, Look for subtleties in nonverbal behavior -
Downward Communication - Upward Communication - Lateral Communication - Interactive
Communication: Role of Interactive Communication, Types of Interactive Communication –Networks,
Grapevine Communication - Barriers to Effective Communication: Filtering, Selective Perception,
Defensiveness, Language - Communication Technology: Management Information System, Electronic
Mail, Telecommuting
UNIT 6 INTERNATIONAL ORGANIZATIONAL BEHAVIOR
Conditions Affecting Multinational Operations- Social Conditions, Political Conditions, Economic Conditions,
Individual Differences – Individualism/Collectivism, Power distance, Uncertainty avoidance,
Masculinity/Femininity - How Culture Influences International OB: Differences in Cultures-People‟s Perceptions,
People‟s relationship with their environment, The time dimension, Public and private space
Managing a Global Workforce: Cultural Adaption, Barriers to cultural adaptation-Parochialism,
Ethnocentrism, Cultural Distance, Culture Shock, Overcoming Barriers to Cultural Adaptation – Careful
selection of employees, Compatible assignments, Pre-departure Training, Orientation and support in the
new country, Preparation for reentry - Differences in Managerial Leadership across Cultures: Personal
Values, Interpersonal Skills, Background of Managers, Decision-Making - Cultural Contingencies and
Productivity: Cultural Contingencies, Ethical Considerations, Global Competency of Managers
UNIT 7 PERSONALITY AND ATTITUDES
Meaning of Personality: Personality Traits – Extroversion, Agreeableness, Conscientiousness, Emotional
Stability, Openness to experience; Self-Concept: Self-Esteem and Self-Efficacy, Person-Situation
Interaction, Personality Determinants-Heredity, Environment, Situation - Personality Attributes that
Influence Organizational Behavior: Locus of Control- Internals, Externals, Machiavellianism, Self-
Esteem, Self- monitoring, Risk Taking, Type A Personality - The Development of Personality and Socialization:
Levinson‟s Theory of Adult Life Stages, Hall‟s Career Stage Model – Exploration, Establishment,
Maintenance, Decline; Argry‟s Immaturity to Maturity Theory; The Socialization Process
Matching Personalities with Jobs - Concept of Attitudes: Sources of Attitudes, Types of Attitudes- Job
Satisfaction, Outcomes of Job Satisfaction, Job Involvement, Organizational Commitment- Affective
commitment, Continuance commitment, Normative commitment; Functions of Attitudes - The adjustment
function, The ego-defensive function, The value expressive function, The knowledge function - Attitudes
and Consistency - Cognitive Dissonance Theory
UNIT 8 MOTIVATION
Definitions of Motivation- Needs, Drive, Incentives - Classification of Motives: Primary Motives,
General Motives – The curiosity, The affection motive, Secondary Motives – The power motive, The
achievement motive,The affiliation motive,The security motive,The status motive -The Content Theories of
Work Motivation : Maslow‟s Hierarchy of Needs- Physiological Needs, Safety Needs, Social Needs,
Esteem Needs, Self-actualization Needs; Herzberg‟s Two-factor Theory of Motivation; Alderfer‟s ERG
Theory – Existence Needs,RelatednessNeeds, Growth Needs - The Process Theories of Work Motivation:
Vroom‟s Expectancy Theory of Motivation; The Porter-Lawler Model- Effort, The
Performance, Rewards, Satisfaction - The Contemporary Theories of Work Motivation: Equity Theory-
Self-inside, Self-outside, Other-inside, Other-outside; Attribution Theory; Other Emerging Theories
UNIT 9 PERCEPTION
Meaning and Significance of Perception: Sensation vs. Perception - Sub-processes of Perception:
Stimulus or situation, Registration, Interpretation, Feedback - Perceptual Selectivity: External Attention
Factors – Intensity, Size, Contrast, Repetition, Motion, Novelty and Familiarity; Internal Set Factors -
Learning and Perception, Perceptual set in the workplace, Motivation and Perception, Personality and
Perception - Factors Influencing Perception: The Perceiver, The Target, The Situation - Perceptual
Organization: Figure-Ground, perceptual Grouping- Closure, Continuity, Proximity, Similarity;
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Perceptual Constancy; Perceptual Context; Perceptual Defense - Social Perception: Attribution-
Dispositional attribution, Situational attribution; Stereotyping; The Halo Effect - Impression
Management: The Process of Impression Management – Impression motivation, Impression construction,
Impression Management Strategies Used by Employees, Promotion-Enhancing Strategy – Characteristic
- Entitlements, Enhancements, Obstacle disclosure, Association
UNIT 10 LEARNING
Significance of Learning - The Theoretical Process of Learning: Behavioristic Theories – Classical
conditioning, Operant conditioning; Cognitive Theories; Social Learning Theory – Modeling processes -
Principles of Learning: Law of Effect, Meaning of Reinforcement, Positive and negative reinforcement
and punishment - Behavioral Management: Steps in the OB Mod Process – Identify critical performance,
Measure the critical performance, Carry out a functional analysis of the behavior, Develop an effective
intervention strategy, Evaluate the intervention strategy to ensure performance improvement
UNIT 11 LEADERSHIP
Definition of Leadership - Traits of Effective Leaders - Leadership Behavior vs. Traits - Leadership
Skills: Technical Skills, Human Skills, Conceptual Skills - Leadership Theories: Traits Theories,
Behavioral Theories- The Ohio State Studies, University of Michigan Studies- Employee-oriented
dimension, Production –oriented dimension; The Managerial Grid- Scandinavian Studies; Contingency
Approaches to Leadership; Fielder‟s Contingency Model- Leader-member relationship, Degree of
task structure, The leader‟s position; Hersey and Blanchard‟s situational theory- Telling, Selling,
Participating, Delegating; Leader-member exchange theory, Leadership-participation model- Autocratic
I, Autocratic II, Consultive I, Consultive II, Group II; Path-goal theory
UNIT 12 EMPOWERMENT& PARTICIPATION
Empowerment - Participation: Involvement, Contribution, Responsibility, The Process of Participation,
Advantages of Participation - Programs for Participation: Consultative Management, Suggestion
Programs, Program Emphasizing Quality- Quality circles, Total Quality Management; Middle-
Management Committees, Industrial Democracy, Self-managing Teams - Limitations of Participation
UNIT 13 CONFLICT, NEGOTIATION, & INTER GROUP BEHAVIOR
Sources of Conflict: Organizational change, Personality clashes,Differences in values sets,Threats to
status, Perceptual differences - Classification of Conflicts: Intrapersonal Conflict, Interpersonal Conflict,
Inter group Conflict - The Conflict Process: Potential Opposition or Incompatibility-Communication,
Structure, Personal Variables; Cognition and Personalization, Intentions - Dominating, Avoiding,
Accommodating, Problem-solving, Compromising, Behavior, Outcomes, Functional outcomes,
Dysfunctional outcomes - Negotiation: Distributive Bargaining, Integrative Bargaining - The Negotiation
Process: Preparation and Planning, Defining Rules, Clarification and Justification, Bargaining and
Problem-solving, Closure and Implementation - Issues in the Negotiation Process: Biases in Decision-
Making, Personality Traits, Cultural Differences, Third-Party Negotiation- A mediator, An arbitrator, A
conciliator, A consultant - Inter group Relations: Factors that Affect Inter group Relations -
Interdependence, Pooled Interdependence, Sequential Interdependence, Reciprocal Interdependence,
Task Uncertainty, Orientation of Time and Goal Managing Inter group Relations: Rules and Procedures,
Hierarchy, Planning, Liaison roles, Task forces, Teams, Integrating departments
UNIT 14 FOUNDATIONS OF GROUP BEHAVIOR
Nature of Groups: Dynamics of Group Formation - Various Types of Groups: Formal Groups, Informal
Groups - Stages of Group Development: The Five-Stage Model- Forming, Storming, Norming,
Performing, Adjourning; The Punctuated Equilibrium Model - Group Structure: Formal Leadership;
Roles – Role Identity, Role Perception, Role Expectations, Role Conflict; Norms- Norms pertaining to
performance-related processes, Appearance norms, Norms pertaining to informal social arrangements,
Norms that regulate the allocation of resources; Status, Size, Composition - Group Tasks - Group
Processes
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UNIT 15 UNDERSTANDING WORK TEAMS
Definition of Work Teams - Benefits of Creating Work Teams – Improved Organizational Performance,
Employee Benefits, Reduced Costs, Organizational Enhancement - Differences between Work Groups
and Work Teams: Broad job categories, Role of supervisor, Reward system- Skill-based pay system,
Gain-sharing system, Team-bonus plans - Types of Work Teams: Problem-solving Teams, Self-Managed
Work Teams, Cross-Functional Teams - Team Effectiveness: Individual problems of team members,
Organizational problems; Essentials for Building Effective Teams- Providing a supportive environment,
Relevant skills and role clarity, Focus on super ordinate goals, Team rewards; Shaping Individuals into
Team Players – Selection, Training, Rewards - Teams and Total Quality Management - Teams and
Workforce Diversity
UNIT 16 INFORMAL ORGANIZATIONS
Nature of Informal Organizations: Formal Vs Informal Organizations-Organizational structure, Position
terminology, Goals of the organization, Basis of influence, Control mechanisms, Communication,
Charting of member relationships, other characteristics; Member status and informal leadership -
Benefits and Problems of Informal Organizations: Benefits of informal organizations, Problems created
by informal organizations – Conflicts between members of informal organizations, Preventing
organizational change, Role conflict in members, Fixed Norms, Ensuring conformity of employees, Use
of penalties and sanctions - Informal Communication: Essential features of grapevine, Factors
responsible for grapevine, Patterns of Grapevine – Single strand communication, Gossip chain;
Management response to the grapevine, Difference between grapevine and rumor - Managing Informal
Organizations
UNIT 17 FOUNDATIONS OF ORGANIZATIONAL STRUCTURE
Definition of Organizational Structure - Key Elements in Designing an Organizational Structure: Work
specialization, Departmentalization – Departmentalization by function, Departmentalization by product,
Departmentalization by geography, Departmentalization by process, Departmentalization by customer;
Chain of Command- Authority, Unity of Command; Span of Control; Centralization/Decentralization –
Functional Centralization, Geographical Centralization, ;Analytical, Geographic Decentralization,
Functional Decentralization, Analytical; Formalization – Explicit rules and procedures, implicit rules and
procedures - Types of Organizational Design: Simple structure, The Bureaucracy- Work specialization,
Division of labor, Abstract rules, Impersonality of managers, Hierarchy; The matrix organization -
Organizational Design and Employee Behavior
UNIT 18 DECISION MAKING
Nature of Decision Making - Decision Rationality: Programmed decisions, Non-Programmed decisions -
Models of Behavioral Decision Making: The economic rationality model, Simon‟s bounded
rationality model, Judgmental heuristics and biases model – The availability heuristic, The
representative heuristic, The anchoring and adjustment heuristic; The Social model- Characteristics of the
project, Psychological determinants, Social forces, Organizational determinants - Behaviorally-Oriented
Decision-making Techniques: Traditional participative techniques, Modern participative techniques -
Creativity and Decision Making: Divergent thinking, Cognitive complexity - Group Decision Making:
Group polarization, Groupthink, Group problem solving- Brainstorming, The nominal group technique,
The Delphi technique
UNIT 19 POWER AND POLITICS
Definition and Meaning of Power - Distinction between Power, Authority, and Influence - Bases of
Power: Coercive power, Reward power, Legitimate power, Expert power, Referent power - The
Dependency Factor: Importance, Scarcity - Contingency Approaches to Power: Interdependence and
influencability, Overall contingency model for power – Compliance, Identification, Internalization -
Power in Groups: Coalitions - Organizational Politics: Definition and nature of politics, Factors relating
to political behavior- Individual factors, Organizational factors - The Ethics of Power and Politics
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UNIT 20 ORGANIZATIONALCULTURE
Definition of Organizational Culture - Characteristics of Organizational Culture: Norms, Innovation and
risk taking, Attention to detail, Outcome orientation , People orientation, Team orientation, Observed
behavioral regularities, Dominant values, Rules, Philosophy, Organizational climate - Uniformity of
Culture: Dominant culture, Subculture - Strong Vs Weak Cultures: Sharedness, Intensity - Types of
Culture: Market culture, Adhocracy, Clan culture, Hierarchical culture - Culture and Formalization -
Functions of Culture - Beginning of Culture in an Organization: Selection, Top management,
Socialization- Pre-arrival stage, Encounter stage, Metamorphosis stage - Learning Culture: Stories,
Rituals and ceremonies, Material symbols, Language - Changing Organizational Culture: The change
process – Assess existing culture, Change agent, Introduce alternatives, Define a new paradigm, Change
must be top-down, Shed old paradigm, Quick transition
UNIT 21 ORGANIZATIONALCHANGE
Forces of Change: People, Technology,Information processing and communication, Competition -
Managing Planned Change: First-order change, Second-order change - The Organizational Change
Process: Problem recognition, Identifying the cause of problems, Implementing the change, Generating
motivation for change, Managing the transition state, Supporting change, Evaluating the change -
Resistance to Change: Individual source of resistance-Habit, Security, Economic Factors, Fear of the
Unknown, Selective Information Processing, Social Factors; Organizational resistance – Structural
inertia, Limited focus of change, Group inertia, Threat to expertise, Threat to established power
relationships, Threat to established resource allocation - Overcoming Resistance to Change - Lewin‟s
Three-Step Model: Unfreeze, Movement to Change, Refreeze - Innovation: Sources of innovation –
Organizational Culture, Management Support - The Learning Organization: Single-loop learning,
Double-loop learning;Managing learning-Commitment to change andinnovation,Change theOrganization‟s
Structure, Change the Organizational Culture - Work Stress and Stress Management: The
causes of stress- Extra organizational stressors, Organizational stressors, Individual stressors, Role
conflict and ambiguity, Type A characteristics, Locus of control, Learned helplessness, Self-efficacy,
Psychological hardiness - Strategies to Cope with Stress: Individual Strategies to cope with stress:
Problem-focused strategies- Managing time properly, Requesting others to help, Shifting to another job;
Emotion - focused strategies - Relaxation, Exercise, Psychological strategies, Recreation,
Companionship, Organizational Strategies to cope with stress: Problem-focused Strategies- Redesigning
the job, Proper selection and placement of employees, Providing proper training, Enhancing team
building, Providing various day care facilities, Emotion-focused strategies- Promoting open
communication, Offering employee assistance programs, Mentoring and assisting employees with regard
to performance, offering a wellness program
UNIT 22 FUNDAMENTALS OF ORGANIZATIONAL DEVELOPMENT
Definition and Concepts of Organizational Development - History of Organizational Development:
Laboratory training- The training process; Survey feedback, Action research - Nature of Organizational
Development: Foundations of OD- OD is an ongoing and interactive process, OD is a form of applied
behavioral science, OD as a normative- re-educative strategy of change, OD views organization from a
systems perspective, OD is a data-based approach to planned change, OD is experience-based, OD
emphasizes goal setting and planning, OD focuses on intact work teams - The OD Process: Components
of the OD process – The diagnostic component, The action or intervention component, The process-
maintenance component -Client-ConsultantRelationship: Entry and contracting, Defining the client system,
Mutual trust between client andconsultant, Nature of client‟s expertise, Proper diagnosis anduse
of appropriate interventions,Determining the depth of the Intervention, Risk of being influenced by the
Client‟s organizationculture,Ability of the consultant to be a model, Consultant team as a microcosm,
Action research and OD process, Dependency and termination of contract, Ethical dilemmas in OD
consulting, Implications of OD for the client
UNIT 23 ORGANIZATIONAL DEVELOPMENT INTERVENTIONS
Meaning of OD Interventions - Types of OD Interventions: Sensitivity training, Survey feedback,
Process consultation intervention, Teaminterventions – The formal group diagnostic methods, The
viii

formal group team-building meeting, Gestalt approach to team building, Role analysis technique, Role
negotiation technique- Contract setting, Issue diagnosis, Influence trade or negotiation period, Force-field
analysis; Inter group team-building interventions; Third-party peacemaking interventions, Structural
interventions- Parallel learning structures, Self-managed teams, Management by objective, Quality
circles, Quality of work life projects, Total Quality management, Six Sigma- Champions, Master Black
Belts, Black Belts, Green Belts
UNIT 24 FUTURE OF ORGANIZATIONAL DEVELOPMENT
Strengths of OD - The Future of OD: Leadership and values, Knowledge about OD, OD Training,
Interdisciplinary nature of OD, Diffusion of OD techniques, Integrative practice, Rediscovering and
recording history -Possible Changesin ODProcesses andPractices:ODwill become a part of organization‟s
operations, OD Processes will use IT, Duration of OD process will be shortened, OD will
increase the scope for learning and innovation, The interdisciplinary nature of OD will increase, The
diversity of organizations implementing OD will increase, OD Practitioners need to work in increasingly
cross-cultural work environment; The need for clarity regarding OD values will increase
ix

CONTENTS
Multiple Choice Questions
Unit 1: Understanding Organizational Behavior 13
Unit 2: Foundations of Human Relations and Organizational Behavior 15
Unit 3: Understanding People and Organizations 17
Unit 4: Diversity and Ethics 19
Unit 5: Managing Communication 21
Unit 6: International Organizational Behavior 23
Unit 7: Personality and Attitudes 25
Unit 8: Motivation 27
Unit 9: Perception 29
Unit 10: Learning 31
Unit 11: Leadership 33
Unit 12: Empowerment and Participation 35
Unit 13: Conflict, Negotiation & Inter Group Behavior 37
Unit 14: Foundations of Group Behavior 39
Unit 15: Understanding Work Teams 41
Unit 16: Informal Organizations 43
Unit 17: Foundations of Organizational Structure 45
Unit 18: Decision Making 47
Unit 19: Power and Politics 49
Unit 20: Organizational Culture 51
Unit 21: Organizational Change 53
Unit 22: Fundamentals of Organizational Development 55
Unit 23: Organizational Development Interventions 57
Unit 24: Future of Organizational Development 59
Multiple Choice Answers and Explanations
Unit 1: Understanding Organizational Behavior 61
Unit 2: Foundations of Human Relations and Organizational Behavior 62
Unit 3: Understanding People and Organizations 63
Unit 4: Diversity and Ethics 64
Unit 5: Managing Communication 65
Unit 6: International Organizational Behavior 66
Unit 7: Personality and Attitudes 67
Unit 8: Motivation 68
Unit 9: Perception 69
x

Unit 10: Learning 70
Unit 11: Leadership 71
Unit 12: Empowerment and Participation 72
Unit 13: Conflict, Negotiation and Inter Group Behavior 73
Unit 14: Foundations of Group Behavior 74
Unit 15: Understanding Work Teams 75
Unit 16: Informal Organizations 76
Unit 17: Foundations Of Organizational Structure 77
Unit 18: Decision Making 78
Unit 19: Power and Politics 79
Unit 20: Organizational Culture 80
Unit 21: Organizational Change 81
Unit 22: Fundamentals of Organizational Development 82
Unit 23: Organizational Development Interventions 83
Unit 24: Future of Organization Development 84
xi

MULTIPLE CHOICE QUESTIONS
UNIT 1: UNDERSTANDING ORGANIZATIONAL BEHAVIOR
Which discipline of the social sciences,studies the development in society and the nature of social
behavior and contributes to organizational behavior?
a. Psychology b. Sociology
b. Law d. Political Science
c. Anthropology
Mr. Roopal is appointed as a manager for a paint manufacturing company at Cochin branch. As a
manager, he has to hire people, arrange training programs, motivate themand ensure discipline of
that branch. Which type of interpersonal role of a manager would Mr Roopal be performing?
a. Figurehead role b. Leadership role
c. Liaison role d. All the above
e. Consultant Role
Mr. Kamal Agarwal is sales head for a brand mobile shop at Hyderabad. He keeps himself updated
through newspapers and magazines. He conducts meetings with his sales team and with the field
executives who are in close contact with customers. Which type of informational role is Mr. Kamal
performing?
a. Disseminator b. Spokesperson
c. Disturbance handler d. Entrepreneur
d. Monitor
The ability to understand people, to communicate and to motivate makes it easier for managers to
maintain peace and co-operation among the employees. This in turn ensures smooth functioning of
the organization. What type of skills are we discussing about?
a. Human Skills b. Conceptual Skills
c. Technical Skills d. Practical Skills
e. All the above
Hewlett Packard (HP) follows an MBWA (Management by Wandering Around) concept wherein
managers play sports and have their lunch with staff. Staff meetings are held every week to increase
employee approach to management. Lot of opportunities and benefits are provided to motivate
staff. Competition among peer groups is encouraged for effective contributions. Employees are
encouraged for creativity, innovation and invention. Which type of OB model is being followed by
HP?
a. The Autocratic Model b. The Custodial Model
c. The Supportive Model d. The Collegial Model
e. The Analytical Model
The duo who observed that a stimulus elicits a certain response,which results in learning are:
a. BF Skinnerand Ivan Pavlov b. Ivan Pavlov and John B Watson
c. John B Watson andBFSkinner d. Edward Tolman and Ivan Pavlov
John B Watson and Edward Tolman
13

Organizational Behavior: Workbook
In 2010, IBM hosted a Cultural Intelligence Summit to generate learning road map for cultural
intelligence. It held an event called Winspiration, bringing together women employees fromaround
the company to empower and guide to leverage their expertise and hone their leadership skills for
success in the workplace. It announced a streamlined process called Accessible Workplace
Connection (AWC) for people with disabilities who require ongoing support to complete their
work. These initiations are undertaken to deal with:
a. Improving quality b. Improving people skills
c. Flexibility d. Improving ethical behavior
e. Workforce diversity
Mr. Lokanath, manager for a customer service firm has totally 15 employees working under him.
He encouraged them to create their own structure of teams based on their interest areas to feel
comfortable and increase productivity. The structure of the teamdictated on how the team
processes information and executes its duties.Mr. Lokanath intervenes only when the situation
needs. What is Mr. Lokanath‟s objective?
a. To empower employees b. To motivate employees
c. To counselemployees d. To control employees
To discourage employees
A sales manager in an office is threatened by his boss to sell 50 large toasters that are inferior to
small ones. To save his job, he violated his conscience and sold large toasters. His boss forced him
to do something wrong to meet the product sales goal. Now the sales manager is in dilemma
whether to report the incident to management or not. How does a firm deal with this kind of
situation?
Negatively reinforcing
Providing insights to modify employees behavior
Restructure the organizational culture
Framing policies for ethical behavior
Providing counseling sessions
A model of OB where employees are self-disciplined, self-satisfied, and have specific goals which
motivate them to improve their performance is called
a. The Supportive Model b. The Collegial Model
c. The CustodialModel d. The Autocratic Model
The System Model
14

Multiple Choice – Questions
UNIT 2: FOUNDATIONS OF HUMAN RELATIONS AND
ORGANIZATIONAL BEHAVIOR
Who has defined Human Relations as “Motivating people in organizational setting to develop
teamwork which accomplishes individual as well as organizational goals effectively” ?
a. SG Huneryager b. IL Heckmann
c. Keith Davis d. Fredrick W. Taylor
e. Elton Mayo
KFC found that employees took almost five minutes to complete a customer‟s order. To
reduce the time, KFC improved working conditions by providing workstations to the employees so
that they can pick up the required items within in no time. The workers required little training to
pick up these skills. The Management practice in the case relates to:
a. Scientific Management b. Social Management
c. Human Management d. Resource Management
e. Skill Management
While psychology contributed to understanding individual behavior, disciplines like sociology,
anthropology,economics and political science helped in analyzing:
a. Human behavior b. Manager behavior
c. Managementbehavior d. Supervisor behavior
e. Group behavior
Following an accident at a manufacturing unit, a new supervisor was appointed who could
immediately analyze the situation and frame policies to avoid accidents, improve safety measures
and physical environment for the workers. The qualification that helped him to ensure these
measures is:
a. Sociology b. Industrial Psychology
c. Anthropology d. Political Science
f. Economics
Knowledge and Skill result in
a. Attitude b. Situation
c. Motivation d. Ability
e. Potential performance
In an organization, it is found that employees who took 90 minutes break reported a 30% higher
level of focus and creativity raised by 46% than those who took one or no breaks at all during the
day. The theory that helped to study this behavior is:
a. Theory Z b. Theory X
c. Hawthorne Studies d. Theory Y
e. Scientific Management
The working experiences in a group influencedthe __________demands ofthe workers.
a. Security b. Commercial
c. Financial d. Social
Economical
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Dr. Krishnamurthy, appointed as Chief Advisor at a factory observes that employees were not
ambitious and were avoiding work. They were completely dependent on the management for
directions at work and were reluctant to take responsibilities. These attitudes depict the
characteristics of:
a. Theory A b. Theory B
c. Theory X d. Theory Y
e. Theory Z
A large corporation company that adopts theory Z practice is identified through the following
feature:
a. Long-termemployment b. Coercion by punishment
c. Financialrewards d. Employees seeking responsibility
e. Security measures
Who made significant contributionsto study theimportance ofpeople at the workplace?
a. Frederick W. Taylor b. Elton Mayo and F.J Roethlisberger
c. S.G. Huneryager d. Fred Luthans
Keith Devis
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UNIT 3: UNDERSTANDING PEOPLE AND ORGANIZATIONS
____________ helps us to understand organizational behavior.
a. Learning b. Coaching
c. Mentoring d. Leading
e. Guiding
In a Software Company, Mr. Rohan was efficiently handling data management in a small branch.
He was transferred to a big branch where voluminous data was to be maintained and analyzed. As a
result, he started committing mistakes and his performance was low because of______.
a. Technicallimitations b. Software limitations
c. Human limitations d. Hardware limitations
e. Attitudinal limitations
Mr. Gupta was recently transferred from a team of market research to sales noticing his soft and
convincing nature. Of late, it was observed that his soft nature disappeared and was seen frustrated.
He was influenced by the teammembers in the sales department who were always under pressure to
meet the targets. Factor that played a vital role in change was __________.
a. Instinct b. Personality
c. Cognition d. Perception
e. Environment
___________ believe that an individual‟s behavior could be understood by observing the way
an individual had responded to a certain stimulus in the past and also the consequences of the
response.
a. Anthropologists b. Psychologists
c. Socialists d. Behaviorists
e. Scientists
Mr. Susheel, Head-Operations, Rex Group of industries, trained his employees to communicate
with ease with the Chinese community, about their work culture, values and norms before they
were promoted to the China Branch, which was expected to open shortly this year. This type of
learning is called:
a. Incidentallearning b. Situated learning
c. Action learning d. Associative learning
e. Instrumental learning
Ram, a fresh BBM graduate joined Majestic Motor Company as an assistant to a Marketing
Manager. Ram‟s job was to enter the details of sales pertaining to different branches.
Lacking the experience, he recorded all the details in a single document which had to be
segregated for the final figures. Next year, he maintained branch details separately. The type of
learning here is_______________.
a. Formal learning b. Informal learning
c. Cultural learning d. Instrumental learning
e. Incidental learning
The effective management of an organization required proper management of the________ and
_________ in the organization.
a. Activities and Technology b. People & Technology
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c. Activities & People d. Activities
e. Technology
Mick and Robert were promoted as team leaders by the manager consequent to their combined
accomplishments in the earlier team. Gradually, co-ordination and integration between them failed
as they belonged to two different teams. Manager has encountered with the problem related
to____________.
a. Task b. Efficiency
c. Technology d. Size
d. Complexity
While Snehal is a commerce graduate and interested to work in accounting department, he was
placed in administration department with a good package as per the requirement of the
organization. The reason for his low performance lies in___________.
a. Traits b. Task Design Personality
c. Job Location d. Designation
e. Salary
The major elements of organizational environment that are responsible for shaping attitudes and
work behavior of the members are the ___________characteristics of an organization and the
nature of the tasks performed by organizational members.
a. Structural b. Technological
c. Spiritual d. Economic
Political
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UNIT 4: DIVERSITY AND ETHICS
There are different reasons for the emergence of diversity in organizations. _____________ has
contributed significantly to the increase of diversity in organizations.
a. Minimization b. Globalization
c. Industrialization d. Regionalization
e. Maximization
A beverage company went for globalization process. Soon, it observed that sales were not as expected
and marketing department was blamed. Under market research, it was found that the products were
not suitable to the tastes of that country. The mistake committed by the company is recruiting
people from ________________.
a. Host country b. Third country
c. Home country d. Both host and home country
e. Both home and third country
Both Ms. Sheetal and Mr. Manish have been working as Asst. Managers in a FMCGcompany for over
five years for South division and East division. Both are equally competent and good performers.
While Mr. Manish was promoted as manager, Sheetal was just given increment. The diversity
challenge observed relates to___________________.
a. Gender b. Age
c. Ethnicity d. Education
e. Geography
The aim of creating a family-friendly workplace is to improve employee
a. Morale b. Productivity
c. Reduce absenteeism d. All the three
e. None of the above
In today‟s world, fathers are also contributing in bringing up children. They are making for certain
privileges and support fromcompanies to be great dads and great employees. Organizations
_______ can enhance the morale of employees and help them to improve productivity as well.
a. Creating family-friendly
workplaces
b. Creating cultural-friendly workplaces
c. Creating social-friendly workplaces d. Creating political-friendly workplaces
e. All the above
There was a remarkable improvement seen in the performance of Ms. Isha after one year of
continuous guidance given by her supervisor Mr. Rupesh. Organization is said to have followed
__________________measure ofdiversity management.
a. Balancing theirfamily life b. Flexible work hours
c. Creation of family-friendly workplace d. Diversity training
Mentoring program
Individualapproach to managediversity in an organization is through_____________.
a. Testing b. Learning & empathy
c. Training d. Provision of alternative work
Systemthinking
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Rakesh and Krishna were equally capable and enthusiastic employees in an organization and were
interested to work offshore. Suddenly, Rakesh got the opportunity while Krishna did not. On
inquiring, Krishna came to know that he lost the opportunity for being physically challenged. In the
case, the manager who selected Rakesh is said to lack_____________.
a. Fear b. Anger
c. Empathy d. Courtesy
e. Honesty
To continue the maternity leave further, Ms. Neha chose to work from home with the permission of
concerned officials. This type of arrangement is called________________.
a. Flexitime b. Compressed workweek
c. Job sharing d. Job rotation
e. Telecommuting
The ___________ effect preventswomen fromreaching top levelmanagement.
a. Metalceiling b. Copper ceiling
c. Glass ceiling d. Wooden ceiling
Bronze ceiling
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UNIT 5: MANAGING COMMUNICATION
One-to-one communication between superior and subordinate is based on the principle of
____________.
a. Chain of command b. Chain of control
c. Chain of measurement d. Chain of evaluation
e. Chain of superiority
A sales manager in a Café Coffee day regularly sends reports to his superiors about the branch
sales. He trains his team on how to deal with critical situations on the job and motivates his
employees to deal with unexpected and unpleasant situations to keep their customers satisfied. The
sales manager is said to be a______________.
a. Mechanistic isolates b. Interactor
c. Informal developers d. Formal controllers
e. Humanistic interactors
A professor at a National Conference was speaking on the Emerging Issues in HR. He used power
point presentation along with theoretical explanation for clarity. During the lecture he maintained
eye-contact with audience and his facial expressions created interest in the audience. He concluded
his presentation requesting feedback from the audience. Name the non-verbal communication in the
case.
a. Power point presentation b. Gestures
c. TheoreticalExplanation d. Feedback
e. All the above
Feedbackoccurswhen the _____________responds to the message received by him.
a. Sender b. Message
c. Receiver d. Decoder
e. Encoder
A manager in a small size organization was giving instructions to employees regarding tasks,
policies and procedures to make them understand the jobs. He neither encouraged employees to
give their feedback nor allowed them to interact with the other department staff. The type of
communication referred here is_______________.
a. Upward communication b. Interactive communication
c. Lateral communication d. Grapevine communication
e. Downward communication
As a production manager, Mr. Nitish interacts with employees regularly to collect their feedback on
the production schedules. He introduced the use of suggestion box to encourage employees who
hesitate to share information. The technique followed by Mr. Nitish is______________.
a. Counseling b. Mentoring
c. Participative d. Non-participative
e. Empathizing
A group of individuals which enhances its interpersonal relationships with a view to exchanging
information of common interest in an informal manner is:
a. Club organization b. Gangplank
c. Grapevine d. Networks
Boundary spanners
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While a company was being merged with another company, executives kept employees in the dark
about it. The absence of accurate information allowed spreading rumors and subsequent fear in the
organization. As a result, employees lost morale and this in turn affected their productivity through
strikes. Communication that barred the merger process was ____________.
a. Grapevine communication b. Lateral communication
c. Vertical communication d. Horizontal communication
e. Cross communication
The “Wise Guy” portal at ICICI has been started to share information by knowledgeable persons
in the form of discussions, queries, edited contributions, books, training calendar, vendors, external
and internal reports, events, and captured offline lectures/presentation. The technological tool
utilized is ________________.
a. Managementinformation systemMIS b. Cross- communication
c. Electronic Cottage d. Electronic conferencing
e. Kinesics
A computer-based communication systemby which the sender sends his messages overthe
computer networks that can be viewed and opened by the receiver on his computer is known as
a. Post b. Courier
c. Speed post d. Registered post
Electronic mail
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UNIT 6: INTERNATIONAL ORGANIZATIONAL BEHAVIOR
Business operations in different countries should be varied, complying with the__________ of
people of the country in which the organization operates.
a. Beliefs b. Attitudes
c. Customs d. All the above
⸀Ā ⸀ Ā ⸀ Ā ⸀ Ā ⸀ Ā ⸀
ultinational companies are outsourcing their operations to India due to the availability of highly
skilled personneland low cost labour. The issues underdiscussion relate to_______________.
a. Economic conditions b. Social conditions
c. Political conditions d. Physical conditions
e. All the above
Samuel , an American working for a multinational company got transferred to production facility in
Japan. He is habituated to being informal at workplace and seeking workers participation in work
matters directly. Upon moving to Japan, he discovered that his management techniques did not
work to gain his workers respect. The dimension of difference appearing is:
a. Personality b. Individualism/Collectivism
c. Power distance d. Masculinity/Femininity
Uncertainty avoidance
A golf ball manufacturing company packed golf balls in packs of four for convenient purchase in
Japan. Unfortunately, the number 4 is considered equivalent to the number 13 in Japan that sounded
like the word “death”. The company had to repackage the product. In order to avoid such
mistakes, companies should know_____________________.
People‟s relationship with their environment b. The time dimension
c. Public and private space d. People‟s perceptions
Peoples motivation
In the US and Canada, people are more concerned about the present and the near future and European
countries have orientation to the past and believe in preserving history. Which of the statements is
true?
People‟s orientation to time is same in different countries
People‟s orientation to time is same in almost all countries
People‟s orientation to time is different to different countries
Time has no meaning
All of the above
In the US culture, it is considered as intrusive and rude for a strangerto stand close to you while riding
the bus,but in South American culture, it is considered as a norm. This is an example of
a. Attitude b. Personality
c. Perception d. Value
e. Learning
An organization introduced a new technology in one of its departments and employees were given
training to operate that technology. On being successful, it has introduced the same technology in
one of its foreign branches. Then managers or staff concerned had to relocate or move from their
nation to the other nation. These people are known as
23

a. Strangers b. Trainers
c. Technicalexperts d. Expatriates
Localites
Coca-cola name in China was first read as “Kekoukela”, meaning “Bite the Wax Tadpole” or
“Female Horse Stuffed with Wax”, depending on the dialect. Coke then researched 40,000
characters to finda phonetic equivalent “Kokoukole”, translating into “Happiness in the Mouth”.
The factor that gave culture shockis_____________________.
Difference in managerial philosophies
The difference in attitude toward work and productivity
Difference in currency system
Changes in personal values of society, religion, etc
Changes in work practices
An Indian manager in a Japanese company was told to give critical feedback to a subordinate during
performance evaluations. Indians are uncomfortable giving direct feedback because of their nature.
It was a hard task for the manager and took time before he could discuss the poor performance.
Which factor obstructed the managerial leadership across cultures?
a. Personal values b. Interpersonal skills
b. Background of managers d. Decision-making
d. Culture
What considerations make expatriates to understand the laws and values of foreign countries to work in
accordance with acceptable behavior?
a. Social b. Ethical
c. Cultural d. Political
Economical
24

UNIT 7: PERSONALITY AND ATTITUDES
What do you call the psychological characteristic of human beings that influences the way people
behave when they interact with others and react to a particular situation?
a. Personality b. Attitude
c. Leadership d. Perception
e. Motivation
Mr. Neilesh joined as an assistant manager, administration, for after sales services in a show room.
He was seen maintaining good relations with customers. After observing his relationship
management, friendly and social nature he was immediately promoted as PRO within six months of
his joining. Which personality trait is responsible for his quick promotion?
a. Conscientiousness b. Agreeableness
c. Extroversion d. Emotional stability
e. Openness to experience
Jeffrey, an executive at a leading consumergoods company,though intelligent, talented, and ambitious,
was often angry at bosses who disregarded his views, at subordinates who didn‟t follow orders or
colleagues who didn‟t pull their weight. How can Jeffrey overcome this attitude?
a. Agreeableness b. Self-esteem
c. Self-efficacy d. Emotional stability
e. Openness to experience
Ram and Shyam who studied in the same college got placed in different organizations. Ram
excelled as he believed in his abilities, and Shyam could not do because he believed in luck and
chance. These two different shades of personality are called as___________________.
a. Internals and Externals b. Heredity
c. Environment d. Risk-taking
e. All of the above
A person who maintains an emotional distance from others believing that „the ends justify the
means‟ is called
a. Machiavellianism b. Self-esteem
c. Self-monitoring d. Risk taking
e. Type A personality
A new CEO took up leadership in Waverick Life Insurance Company after huge losses. She
immediately fired 400 employees and replaced top people to shift the business focus. While most of
the staffwasted theirtime in expecting what would happen,Mr.Sirish and some ofhis friends
continued to work normally and performed consistentlyas usual.Mr. Sirish‟s personalityreflects:
a. A Personality b. C personality
c. B personality d. X personality
e. Y personality
Name the process where people‟s personality is influenced by their interaction with other
individuals, groups,and society at large.
a. Organizational process
c. Physiological process
b. Individual process
d. Economical process
Socialization process
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People with „Autism‟ spectrum have neurologically different behavior and possess some s pecial
abilities to performcertain information technology tasks excellently and habituated to work in
solitary.Observingthese characteristics,SAPAG,multinationalsoftware giant decidedto hire 1% of
their workforce with „autism‟ by 2020.The underlying principle to hire people with „autism‟ is:
a. Matching salary with jobs b. Matching qualification with jobs
c. Matching satisfaction with jobs d. Matching personalities with jobs
e. All the above
Sunil, working as assistant manager-Quality division, in an organization pointed out that the new plans
of his manager would not assure quality in a staff meeting. Since then there was change observed in
his treatment towards Sunil. The reason for the change in his attitude relates to which function?
a. The knowledge function b. The ego-defensive function
c. The adjustment function d. The value expressive function
e. All the above
The Cognitive Dissonance Theory was first proposed by
a. John P.Meyer b. L.M. Kendall
c. Leon Festinger d. Natalie J. Allen
P. C. Smith
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UNIT 8: MOTIVATION
71. The elements of motivation are:
a. Desires and wants b. Inputs and outputs
c. Sanctions d. Needs, Drives and Incentives
e. All of the above
People today are attracted to work for organizations that provide benefits such as Provident fund,
Pensions, health insurance coverage, saving plans, scholarships for education, cab facilities etc.
Which of the following secondary motives are satisfied with these facilities?
a. The statusmotive b. The affiliation motive
c. The security motive d. The achievement motive
e. The power motive
The chief executive of a chemical company recognizing burnouts at work introduced changes in the
work system. He introduced breaks into work, started appreciating people for achievements,
modified the practices of meetings, email, flexible work arrangements, conflict resolution and
recognition to meet their physical, emotional, mental and spiritual needs.
Which of the following motivation theories match with the above mentioned needs?
a. Alderfer‟s ERG theory b. Vroom‟s expectancy theory
c. The porter-lawler model d. Herzberg‟s two-factortheory
Maslow‟s hierarchy of needs
Which of the following variables belong to Porter-Lawler Model.
Motivators and Hygiene factors
Existence, Relatedness,and Growth
Effort, Performance, Rewards and Satisfaction
Valence, Instrumentality, and Expectancy
Physiological, Safety, and Self-actualization needs
Prashant started his career as a technician in after sales department of an electronics showroom. He
was earning well to meet his food, clothing and shelter requirements. Later, he was promoted as an
executive with good increments along with welfare benefits. He then got married. Now
Prashant‟s dream is to become manager for the whole Branch. Which stage of Maslow‟s
hierarchy of needs matches with Mr. Prashant needs?
a. Self-actualization needs b. Esteem needs
c. Social needs d. Physiological needs
e. Safety needs
Kaushal who is working as HR manager in a Pharmaceutical company got disappointed when compared
herself with Keerthi working as Head - Accounts department in a super market. This type of
comparison is referred to as______________
a. Self-inside b. Other-outside
c. Self-outside d. Other-inside
All of the above
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77. Attribution theory deals with
a. Behavioralprocess b. Conceptual process
c. Cognitive process d. Logical process
e. Technical process
Mr. Munesh holds a very big position in a textile industry and has to work under pressure all the time.
But he is always found cheerful at work with no signs of stress. He is also very considerate to his
subordinates and welcomes anyone who has a problem at workplace. He spends time to counsel
them and motivate them. These characteristics belong to____________.
a. External locus ofcontrol b. Locus ofcontrol
c. Internallocus ofcontrol d. High locus of control
e. Low locus of control
The top management of a Rainbow Networks company insisted their staff to work for extra hours to
meet the demands at workplace. But employees refused to do so. The management promised to give
incentives as a percentage over the revenue earned for the extra hour and announced to give
increments based on their performance during the extra hours. This strategy is related to which
theory___________________-.
a. The Agencytheory b. Attribution theory
c. Expectancy theory d. Control theory
e. Equity theory
_____________ is strength of a person‟s preference for receiving a reward.
a. Expectancy b. Valence
c. Instrumentality d. Effort
Satisfaction
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UNIT 9: PERCEPTION
Name the cognitive process wherein an individual collects, organizes, and interprets data from the
environment to obtain a meaning from it.
a. Learning b. Perception
c. Motivation d. Leadership
e. Participation
Siru has a habit of solving puzzles. Every morning Siru rushes to his father to take the Sudoku page
from the newspaper to test his intelligence and improvements. This type of selectivity is
called________________.
a. Registration b. Conceptual
c. Cognitive d. Perceptual
e. Sensitive
Rupa and Anita participated in a drawing competition where both of them drew the same picture but
with different colors. While Rupa filled only one color, Anita selected two opposite colors to fill the
picture. Finally, Anita won the completion. Identify the factor that made Anita win the competition.
a. Contrast b. Intensity
c. Size d. Repetition
e. Novelty and Familiarity
Factors influencingperceptionare:the situation,the targetand______________________.
a. Perceiver b. Learner
c. Motivator d. Participator
e. Leader
A reputed international organization has Americans and Asians working for it. Over the years, it was
observed that most of the promotions were given to Asians assuming that Asians are alert and
reserved while Americans are impatient and arrogant. This is a mistake of ________.
a. Social perception b. Attribution
c. Dispositional d. Situational
e. Stereotyping
When the task of promoting an employee was given to Ms. Neelamin a premier boutique, she suggested
the name of an employee who was runner up in a recent fashion show and was awarded
appreciation letter. The decision-making is based on ________________.
a. The Halo Effect b. Stereotyping
c. Attribution d. Social perception
Name the process where people try to manage or control the perceptions formed by others about
themselves.
a. Behaviormanagement b. Attitude management
c. Impression management d. Controlmanagement
Situation management
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Poonam was given the responsibility of training and mentoring some of the new entrants in a call centre.
But she noticed that the number of trainees would be unmanageable to her and requested her boss to
take the assistance of her colleague. It reflects the______ characteristics of promotion-enhancing
strategy:
a. Association b. Obstacle disclosure
c. Enhancements d. Entitlements
e. Disassociation
In a meeting to adopt new cloud technology in to their organization, a manager requested his employees
to share their views for better implementation practices. The employees started to explain the costs
for implementation and the consequent effects on the employees rather than improvements. These
excuses can be attributed to _________________.
a. Obstacle disclosure b. Disassociation
c. Demotion-preventive strategy d. Personalization
e. Self-presentation
Different contexts convey different meanings to people.This is the principle of
a. Perceptualgrouping b. Perceptual constancy
c. Perceptualdefense d. Perceptual context
Perceptual similarity
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UNIT 10: LEARNING
The concept of learning is significant in understanding,developing,and managing ________in an
organization.
a. Technology b. Systems
c. Structures d. Hierarchy
e. Human resources
The learning based on relationship between cognitive environmental cues and expectation belongs to:
a. Behavioristic Theories b. Cognitive Theories
c. Social Learning Theories d. Classical conditioning Theories
e. Instrumental conditioning Theories
Ms. Neha, a scholar at an institution once got an opportunity to attend the best conference at
international level. Immediately after the conference, she started imitating an eminent personality
getting inspired by his talking style. Learning in this case relates to
a. Classicalconditioning b. Operant conditioning
c. Behavior learning d. Cognitive learning
e. Social learning
Once Praveen was appreciated by his manager for righteously taking up a challenging task. His manager
also rewarded him with incentives and promotions immediately by looking at the performance of
the tasks. Consequently, Praveen expressed his interest in taking up further challenging tasks with
his manager. This is an example of
a. Empowerment b. Learning
c. Positive reinforcement d. Reinforcement
e. Negative reinforcement
An employee who is irregular to office was bombarded by his senior and warned pay-cut if repeated
further. This is an example of _______________.
a. Stimulus b. Negative reinforcement
c. Positive reinforcement d. Learning
Both (a) and (c)
The Law ofEffect was given by_______________
a. Ivon Pavlov b. John B. Watson
c. Edward Tolman d. BF Skinner
e. Thorndike
The effectiveness of the O.B. Mod process is measured on the basis of the data obtained on parameters
such as___________
a. Quantity b. Turnover
c. Absenteeism d. Customer complaints
e. All the above
Social learning theories explained learning through modeling processes and ___________.
a. Self-esteem b. Self-efficacy
31

c. Self-confidence d. Self-reliance
e. Self-perceptions
The learning ofthe associationbetween thecue and expectationis referred to as _____________.
a. S-S learning b. S-R connection
c. R-S connection d. cognitive theory
e. Learning Theory
Ms. Bhavna, an administrative officer in TSJ Limited, observed employees moving frequently for
various reasons, had an effect on their performance. She has decided to help them improve their
behavior in the organization. Please help her with the effective improvement model.
a. Punish b. OB Mod process
c. Dismiss d. Stop increments
Transfer
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UNIT 11: LEADERSHIP
Name the category of people who have a vision, set goals to realize the vis ion, and motivate and gain
the commitment of their people to work toward the achievement of the goals.
a. Leaders b. Politicians
c. Doctors d. Actors
e. Teachers
Gary Kaplan of Virginia Mason Health system could improve his organization, despite opposition from
his employees, by adopting system thinking and emerged successful. Which trait of a leader is
highlighted in the case?
a. Collaboration b. Flexibility
c. Self-confidence d. Integrity
e. Ambition
When Garry was working as a marketing manager for a consultancy company, he had to go for
company-wide lay-offs. The team of ten was reduced to six. As a result, the teamthat remained had
to absorb the duties of the four that left. He understood that people have to overwork. He then
announced huge incentives for those who took up extra work, foreseeing the consequences. What
type of skill is presented here by Garry?
a. Technical Skill b. Human skill
c. Conceptualskill d. Both a& b
Both a & c
104.A theory that proposed that the personality traits necessary to become an effective leader could be
acquired through training and experiences of
a. Great Leader b. Great Man
c. Great Women d. Great study
Great person
105.Neelesh,a good performerwas found dullat a meeting conductedby the Accounts manager.The
manager inquired and found that Neelesh‟s father was hospitalizedand he is hesitating to apply for
leave as it was the peak time to submit accounts for auditing. Realizing the situation, the manager
approved him leave along with some advance. Name the effective leadership dimension the
manager has demonstrated.
a. Initiating structure b. Consideration
c. Production-oriented d. Organization-oriented
All the above
106.Thomas as a production manager in an automobile factory has set targets to complete the purchase
orders by the month end. He strictly warned all the employees not to take leaves and enforced them
to work for extra hours in case of necessity. What is the leadership dimension observed in the case
called?
a. Production-oriented dimension b. Sales-oriented dimension
c. Organization-orienteddimension d. Employee-oriented dimension
Welfare-oriented dimension
Which theoryofleadershipis relatedto „development-oriented behavior‟?
a. The Ohio State Studies b. Scandinavian Studies
33

c. University of Michigan Studies d. All the above
Path-goal Theory
108.A manager in a Pharmaceutical company conducted a special group discussion in an urgency to
seek ideas and suggestions from his staff. He led the discussion till the group reached a consensus
on the solution and implemented the same. What is the style of leadership called?
Autocratic I(A-I)
Consultive I(C-I)
Group II (G-II)
Autocratic II (A-II)
Consultive II (C-II)
109.Shikhar, a fresh graduate, joined as an associate software engineer and was keen to learn work. He
was placed under the team guided by Mr. Suman who always encourages and gives directions and
support required to learn. Shikhar could improve his performance a lot within one year to become
the team leader. This depicts_________ leadership style.
a. Telling b. Selling
c. Participating d. Delegating
Consulting
110.The theory developed by Robert House is____________
a. Hersey and Blanchard‟s situational theory b. Leader-member exchange theory
c. Path-goal theory d. Traits theory
Behavioral theory
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UNIT 12: EMPOWERMENT AND PARTICIPATION
111.Involving employees in the organizational functioning by giving them more authority to make
decisions is called________________.
a. Self-efficacy b. Self-esteem
c. Empowerment d. Contribution
e. Responsibility
Kamal as a manager always calls for a meeting in times of emergency to collect ideas and opinions from
his subordinates but neverimplements them. These managers are called
a. Autocratic managers b. Altrocentric managers
c. Ethnocentric managers d. Efficient managers
e. All the above
In 2011, Wiproites started the Employee Advocacy Group (EAG) -a representative group to seek
employee ideas and suggestions to improve company policies and processes relating to HR,
Recruitment and Training. EAG shortlists suggestions with function Heads, and implements them
in collaboration with functions. What dimension of participation are we talking about?
a. Involvement b. Responsibility
c. Leadership d. Contribution
All the above
The indirect advantages ofemployee participation include
Commitment to achieving organizational goals
b. Lower stress levels c. Less resistance to change
d. Reduce attrition rate e. All the above
At Nissan Motor Corporation, Field Quality Investigation and Analysis (FQIA) is established to make
improvements quickly to exceed their customer‟s expectations. While suppliers and various
functions at Nissan use quality circles to thoroughly research the problemtogether and identify the
elements of improvement, what are the other alternative methods of quality improvement?
a. TotalQuality Management(TQM) b. Middle-Management Committees
c. Self-managing Teams d. Quality Circles
e. All the above
Since Michelle joined as supervisor in the production department of a Pump manufacturing company,
Mark-Manager production observed that there was a huge improvement in terms of productivity,
quality, innovation, customer service and profitability. On inquiry it was found that Michelle gave
workers the responsibilities, goals, targets, parameters, deadlines, authority, rewards and
consequences to manage work on their own. This concept refers to:
a. Self-managing Teams b. Industrial Democracy
c. Consultative Management d. Quality circles
e. Suggestion Programs
Industrial democracy ensures that all employees have a say in the major decisions of organizations by
representing at the ____________levels ofthe organizations.
a. Lower b. Higher
c. Middle d. Top
At all levels
35

Looking at the success of workers participation programs in a similar company, a capacitor
manufacturing company initiated to implement such programs in their company. But they could not
succeed because they failed to understand that their company did not have the trade union as theirs.
This mistake relates to__________________.
Lack of proper planning and implementation
Technologies used at work
Specialized work roles of employees
The complexity of the organizational structure
Lack of knowledge needed
A supervisor in a manufacturing company in a fear to lose his power and status did not want to
encourage his employees to participate in decision-making because he firmly believed in _____
assumptions.
a. Theory Z b. Theory Y
c. Theory A d. Theory B
e. Theory X
The participation of employees faces problem when they are more involved in ________ aspects of
participation.
a. Cultural b. Structural
c. Procedural d. Social
Political
36

UNIT 13: CONFLICT, NEGOTIATION & INTER GROUP BEHAVIOR
121. Conflicts can be classified into __________________
a. Intrapersonalconflict b. Interpersonal conflict
c. Intergroup conflict d. All the above
e. Intrapreneurial conflict
Ketan is working as an administrative officer in a cosmetic company reporting to the Manager-
Administration. While one of his colleagues in accounts department went on leave, he was assigned
with extra work from accounts department. Since then Ketan is always seen tensed and stressed as
he had to report to both the bosses every day which is a___ conflict.
a. Intrapersonalconflict b. Interpersonal conflict
c. Organizationalconflict d. Opinion conflict
e. All of the above
CEO of a service oriented organization set a goal of reaching sales target. For this, market research team
had to update the sales team with the availability of target customers. When the sales target was
achieved, both the teams were competing to take the credit. It is an example of________________.
a. Intragroup conflict b. Intrapersonal conflict
c. Intergroup conflict d. Interpersonal conflict
Internal conflict
Name the first stage ofconflict process.
a. Intentions b. Behavior
c. Cognition and Personalization d. Potential opposition or incompatibility
e. Outcomes
Nishant and Satish, colleagues in an organization, always had difference of opinions in goal setting
because Nishant believed that departmental goals are important while Satish believed
organizational goals to be a priority. These differences depict which factor of conflict:
a. Communication b. Personal variables
c. Structure d. Cognition and Personalization
e. Intentions
You and a colleague are assigned to complete an important part of a software programthat must go out
for testing in a week. You both have different programming techniques to get the work done. But
you have accepted to follow the technique of other colleague as you were convinced by the
management about his past experience. Name the conflict handling situation.
a. Compromising b. Accommodating
c. Avoiding d. Dominating
Problem-solving
127.The _____________ approach involves division of a fixed amount of resources among the
negotiating parties.
a. Integrative bargaining b. Problem-solving
c. Distributive bargaining d. Decision-making
All of the above
37

128.William is one of the top sales executive and a PRO in a company and was asked to deal a
negotiation with a customer. In spite of requesting for three weeks time to prepare for this specific
assignment, he was forced to do within a week. During negotiation, William was hesitating and
hemming due to lack of confidence. Which stage of negotiation process was undermined here?
a. Defining rules b. Clarification and justification
c. Bargaining and problem-solving c. Closure and implementation
d. Preparation and planning
There was a dispute in an organization with its base in India, regarding the supply of stock on time with
an agency in North America. During the negotiation process, Indian negotiator was emphasizing on
the concession offered, while the American negotiator was stressing on the time and deadline of
supply. This stands as an example for_______________________.
a. Personality traits b. Cultural differences
c. Third party negotiation d. Mediator
Arbitrator
Name the factors that affect the intergroup relations.
a. Interdependence b. Task uncertainty
c. Orientation oftime and goal d. All the above
Intra dependence
38

UNIT 14: FOUNDATIONS OF GROUP BEHAVIOR
The ______________________ saysgroup formation results from the similarity of attitudes and values
between people.
a. Balance theory b. Exchange theory
c. Reward cost theory d. Propinquity theory
e. Valence theory
In an organization, when a manager proposed a change,only few people with similar interests,values
and loyalties responded positively while others commented. Name the interest group.
a. Small group b. Primary group
c. Large group d. Coalitions
Reference group
133.California based Baskin-Robbins,world‟s largestchainof ice cream specialtyshops joined with
Massachusetts based Dunkin‟ Donuts, a global doughnut company and coffeehouse chain to
share their stores.They improved their stores and shared the revenue thus generated.This form of
creation is called_________________
a. Reference group b. Interest group
c. Friendship group d. Formal group
Coalition
134.Name the stage which is characterized by the development of close relationships and cohesiveness
within the group.
a. Forming b. Storming
c. Norming d. Performing
Adjourning
135.NITC is an institute training students for the engineering profession. Students are trained for
various branches such as computer engineering, electrical, mechanical etc. The larger goal is thus
divided into departments. All these departments together achieve the goal of efficiently training the
students for engineering purpose. What is this formation called?
a. Informal groups b. Large groups
c. Small groups d. Formal groups
Reference groups
136.With reference to question no. 135, students from different streams live together in hostel for four
years an naturally interact and build relationship with their friends. What is this form of group
called?
a. Informal group b. Interest group
c. Friendship group d. Coalitions
Formal group
Example for reference group is___________________
a. Alcoholic b. Illiterate
c. Common man d. Celebrities
Drug addict
39

In Vertex Software Company, a new project was assigned to a team of 10 members. A deadline of
one month was given followed by weekly reviews. During the first two weeks it was observed that
there was no development in the task whereas in the last two weeks, the team rigorously worked
and finished the task. What do you call this model of group development?
a. The five-stage Model b. The Punctuated Equilibrium Model
c. The Four-stage Model d. The Unpunctuated Equilibrium Model
The Three- stage Model
139.Mithilesh working in production section is a friendly person and behaves very casually with
workers in his section. Continuing the same behavior put him into troubles when he was promoted
as supervisor for that section. The management has suggested himto change his behavior. Name
the role dimension_________________.
a. Role Perception b. Role Expectations
c. Role Identity d. Role conflict
Role negotiation
If the tasks are __________________,there will be interactions between members ofa group.
a. Dependent b. Non dependent
c. Similar d. Non similar
Interdependent
40

UNIT 15: UNDERSTANDING WORK TEAMS
141.Work teams are increasingly becoming popular in ________________________.
a. Popularorganizations b. Modern organizations
c. Unpopularorganizations d. Sick organizations
All the above
142.Amana refrigeration Inc. assigned task forces to deal with quality problems across departmental
lines. Each task force has a unique area of problem-solving responsibility such as handling in-plant
products, handling problems that arise outside the production facility, supplier problems etc. These
task forces improved vertical and horizontal communication and substantially reduced the service
problems in the field. Where exactly does it benefit?
a. Employee benefits b. Reduced costs
c. Organizationalenhancement d. Improved organizational performance
e. All the above
In a large manufacturing company, the production manager observed that the rate of absenteeism was
increasing due to work stress. He then decided to create small teams with different work times to
complete the production schedule. Subsequently, it was observed that workers were more regular to
the work. How does this strategy help work teams?
a. Organizationalenhancement b. Reduced costs
c. Employee benefits d. All the above
None of the above
Teams help organizations adapt to changes quickly, thereby enabling them to ________competition.
a. Create b. Reduce
c. Withstand d. Control
e. All the above
A quality control manager promised a bonus plan to his staff. He instructed that for considering bonus,
only the performance of the particular team is checked instead of the performance of the whole
organization. Name the reward system.
a. Skill-based pay system b. Gain-sharing system
c. Gain bonus plans d. Team-bonus plans
e. All of the above
A supervisor in Excel steel Company was following the conventional method of control to improve
productivity. He is threatened by the major paradigm shift in the work culture where good deal of
time and effort needs to be put. What are the contemporary methods we are talking about?
a. Problem-solving teams b. Self-managed work teams
c. Cross-functionalteams d. All the above
Parallel teams
Workteams sufferfromwhich of the following drawbacks?
a. Cultural problems b. Personal problems
c. Departmentalproblems d. Attitudinalproblems
Individualand organizationalproblems
41

Barat as a senior manager – corporate relations found that his staff performance was reducing since the
culture of team work was introduced. He observed that though teams were formed co-ordination
among the team members were missing. Kindly guide him in choosing the correct method for
improving team effectiveness.
a. Selection b. Training
c. Rewards d. All the above
e. Disciplinary action
A team constituting Japanese and American members was selected for the study in Japan. The team
members were provided with each day‟s performance for one week. By the end of the seventh
day, it was observed that both team members improved energy and engagement. How could the
team do it?
a. Providing a supportive environment b. Relevant skills and role clarity
c. Focus on superordinate goals d. Team rewards
All the above
Advantage of diversity in teams is
a. Ambiguity b. Confusion
c. Multiple interpretations d. Complexity
Mis-communication
42

UNIT 16: INFORMAL ORGANIZATIONS
Name the person who defined informal organization as “Patterns of behavior and influence
stemming from human interaction within a formal structure”.
a. ChesterBarnard b. JL Gray and FA
c. Elton Mayo d. McGregor
e. David McClleland
In a manufacturing company, Suresh being a supervisor officially has the right to represent workers to
the management. But workers always approach Amman (a fitter) who they believe has leadership
skills whenever they have a question or complaint. Which factor does it highlight among the
informal organizations?
a. Organizational structure b. Position terminology
c. Basis ofinfluence d. Control mechanisms
e. Communication
In the above case, Amman unintentionally accepts to represent workers to satisfy them. It reflects the
factor of
a. Charting ofmember relationships b. Control mechanisms
c. Basis ofinfluence d. Position terminology
Goals of the organization
There may be more than one leader in an
a. Formal organization b. Large organization
c. Small organization d. Informal organization
Multinational companies
Krishna who is working as an accounts manager in a consultancy firm, seeks the cooperation of his
subordinate Satish at times, when they have to submit accounts for auditing. Name the benefit of
this informal organization.
Expression or outlet for frustration and anxieties
Decrease in the workload of managers
Increase in satisfaction and feeling of stability in work groups
Development of an effective organizational system
e Developing a feeling of belonging with the organization
When a cement factory opted to replace its old machinery and layoff with some of the old employees
working for more than two decades, the trade union intervened and went for a discussion with the
management which resulted in continuing them. This is an example of :
a. Role of conflict in members b. Fixed norms
c. Ensuring conformity ofemployees d. Use of penalties andsanctions
Preventing organizational change
Informal communications in an organization is termed as_____________________
a. Grape vine b. Upward communication
c. Lateral communication d. Downward communication
All the above
43

McDonald's fought a persistent rumor in the 1970s in Chicago that they were mixing earthworms into
their hamburger meat that eventually extinguished itself. The factor responsible for grapevine
was__________________-
Involvement of friends and associates
Nature of job held by an individual
Personality traits of the individual
Periods of excitement and insecurity brought about by change
Availability of recent information
159.In order to control the workers who are not punctual in a factory, some workers who are always
regular spread a rumor that their performance appraisals would be based on punctuality. This rumor
reached the top management and consequently the security was made strict. What type of rumor is
this?
a. Spontaneous rumors b. Anxiety or bogy rumors
c. Wedge drivers d. Pipe dreams or wish fulfillment
e. Premeditated rumors
If an important announcement is delayed by the management of an organization, rumors related to the
situation spread quickly among the employees. What are these rumors called?
a. Curiosity rumors b. Home-stretchers
c. Wedge drivers d. Anxiety or bogy rumors
Premeditated rumors
44

UNIT 17: FOUNDATIONS OF ORGANIZATIONAL STRUCTURE
161. _____________ refers to the extent to which the jobs in an organization are divided into sub-tasks.
a. WorkStudy b. Work Measurement
c. Work Specialization d. Work Design
e. Work Redesign
A bank being successful in its banking operations started extending insurance services to its customers.
As the number of responses was overwhelming, it has proposed to separate its insurance services
from now onwards. What sort of departmentalization is it planning for?
a. Departmentalization by Function b. Departmentalization by Product
c. Departmentalization by Geography d. Departmentalization by Process
e. Departmentalization by Customer
Kumar, an executive in an education institute reports to the Dean directly. Subsequently as the
strength increased, a deputy registrar was appointed. Now Kumar has to report to both the Dean and
deputy registrar till the deputy registrar gets familiar with the institute‟s procedures. Name
the concept that is affected here:
a. Chain of command b. Span of control
c. Authority d. Centralization
e. Unity of command
In ________organizations,power & authority are vested with the top management in the organizational
hierarchy.
a. Centralized b. Decentralized
c. Departmentalized d. Divisional
e. Documentation
A company under its expansion plans, opened its new branches in two different states and appointed
managers to operate the branches. They were given all the powers to act on their own and take
decisions and perform all the operations. Identify the type of decentralization implemented in this
organization?
a. FunctionalDecentralization b. Geographical Decentralization
c. AnalyticalDecentralization d. Product Decentralization
Process Decentralization
Characteristicsofbureaucracyinclude____________________
a. Workspecialization b. Division of labor
c. Abstract rules d. Impersonality ofmanagers
e. All the above
Mr. Karan is a self-confident and innovative executive in an office. But he is not satisfied at the
workplace because his creativity is not recognized and his manager is very rigid and keeps his staff
under strict control. Name the type of organization that suits Karan‟s behavior.
a. Centralized b. Decentralized
c. Departmentalized d. All the above
Flat Structure
45

A manufacturing company dealing with three products reorganized its structure and as a result Kireet
who was heading the marketing department for the current product had to head the marketing team
of all the three products. Name the kind of organization structure he is presently heading?
a. Simple structure b. The bureaucracy
c. Tall structure d. Flat structure
e. The matrix organization
A newly appointed manager in an industry found that productivity is being affected by the staff behavior
and made some changes in the jobs of his staff to suit their abilities. The change has improved
productivity and staff was found more satisfied with their jobs. What is the key element noticed by
the manager in the organization design?
a. Workspecialization b. Departmentalization
c. Chain of command d. Span of control
Unity of command
Name the concept that defines howjob tasks are formally divided,grouped,and coordinated.
a. Organizational structure b. Organizational design
c. Organizationalculture d. Organizational development
Organizational policy
46

UNIT 18: DECISION MAKING
Name the factors that influence the decision making of managers in an organization.
External environment
Past experience
The cognition levels of managers
Human relationships within the organization
All the above
In a textile manufacturing unit, top management confronted with the consistent problem from raw-
material suppliers. They considered owning the supplies as an alternative solution. Subsequently
the management performed cost/benefit analysis and finally decided to drop the idea as it was more
destructive than constructive. Name the underlying concept of decision making.
a. Intellectualdecision-making b. Irrational decision-making
c. Rationaldecision-making d. Productive decision-making
e. Unproductive decision-making
A manager at a confectionery company with 15 years of experience was frequently confronting with the
problem of quality supplies. Based on his experience and his long relationships with the suppliers,
he thought that this was the right time to replace their suppliers and chose the best and reliant
suppliers currently available. What kind of decision making is this?
a. Programmed decisions b. Non-programmed decisions
c. Decision rationality d. Divergent thinking
e. Cognitive complexity
Name the decision-making model where the decision maker establishes a link between the means and
ends rationally, is fully aware about the available alternatives, has a consistent set of alternatives to
guide him/her in decision-making.
a. Simon‟s boundedrationality model b. Judgmental heuristics and biases model
c. The economic rationality model d. The social model
e. All the above
Williams, a plant manager of Procter & Gamble (P&G) has a habit of walking through his plant
everyday to discuss some issues with the employees. While doing so, he was interrupted many
times by employees to raise questions or present their ideas. He used to listen carefully and assess
their concerns. What do you call this decisions-making?
a. Cultural decision-making b. Behavioraldecision-making
c. Social decision-making d. Political decision-making
e. Economic decision-making
Vedant, head of a 500 person R&D department was discussing a major issue with senior executives. He
realized that the issue was not taken up properly. Though he was not the senior person, he
advocated his point passionately which spread throughout the organization. The issue was re-
framed accordingly. What do you call this type of decision making?
a. Traditional participative b. Modern participative
c. Creative d. Destructive
Behaviorally-oriented
47

Name the reasons why a decision maker under social model tries to commit resources to a course of
action that is certain to fail.
a. Characteristicsofthe project b. Psychological determinants
c. Social forces d. Organizational determinants
e. All the above
Twitter created an online service without a clear practical application and then launched it to see how
people used it so that they could refine it. In twitter‟s case the bullet-proof strategy worked out.
What do you call this type of decision making?
a. Cognitive complexity b. Group polarization
c. Divergent thinking d. Groupthink
e. Group problem solving
During a meeting in a software company where all the heads of the departments were called to openly
and honestly discuss an issue, it was found that all the teammembers were trying to close the issue
by unanimously agreeing to a solution than to meet overall purpose of the team decision making.
What exactly is the team lacking in?
a. Group polarization b. Group -thinking
c. Cognitive complexity d. Group problem solving
e. Individual problem solving
To overcome the problems of group polarization and group-thinking, what type of problem solving
techniques need to be used?
a. Brainstorming b. Nominal group technique
c. The Delphi technique d. All the above
Cognitive technique
48

UNIT 19: POWER AND POLITICS
Who defined power as “the potential ability to influence behavior, to change the course of events,to
overcome resistance, and to get people to do things that they would not otherwise do.”?
a. MaxWeber b. Stephen P. Robbins
c. Jeffrey Pfeffer d. Grimes A.J.
e. Fernandes
Jennifer, a young reporter, wrote a negative article about the new speaker, the later informed the reporter
that individual reporters could be barred from entering the assembly. Name the correct term for the
action taken.
a. Authority b. Influence
c. Power d. Behavior
e. Politics
A successful production manager in an electronic corporation was transferred to other department as his
knowledge and experience can be used to improve the performance of the other department. Which
type of power is used in this example?
a. Expert power b. Referent power
c. Reward power d. Coercive power
Legitimate power
The level of dependency depends upon
a. Importance b. Scarcity
c. Non-substitutability d. All the above
e. Abundance
A Multinational Software Company is in search of people who have the knowledge of latest technology
– Hadoop. As there is a huge demand for employees with this skill, the company is ready to offer
attractive salary package. Name the resource of dependency in this case
a. Scarcity b. Importance
c. Non-substitutability d. All the above
e. Abundance
Pranav, sales manager in a company observed that Basheer, a sales executive has not been meeting the
target since three weeks. Pranav sent a memo to Basheer informing that he would have to quit the
organization if he fails to achieve the current month target. Name the power exerted by the sales
manager.
a. Expert power b. Referent power
c. Reward power d. Coercive power
e. All of the above
Name the process of contingency model for power where the agent has a referent power due to which
the target identifies with or tries to follow an individual.
a. Internalization b. Identification
c. Socialization d. Actualization
Personalization
49

Idealist.org is an organization focused on making connections between college students doing social
justice work and the organizations working on similar issues. It took the help of Young Nonprofit
Professionals Network (YNPN) that provides training and network-building opportunities for
people in the social sector to speed up for efficient ways of meeting their current needs. This is an
example of ________________________.
a. Power b. Politics
c. Coalition d. Ethics
e. Authority
A manager who is disliked by his CEO is given the responsibility for a troubled division whose market
is collapsing and later he was fired and dismissed for the poor performance. What do you name this
behavior as?
a. Ethical consideration b. Referent power
c. Expert power d. Organizational politics
All the above
Individuals who report unethicalpracticesby theiremployerto outsiders are called____________.
a. Whistle blowers b. Politicians
c. Representatives d. Insiders
Rumor mongers
50

UNIT 20: ORGANIZATIONAL CULTURE
__________ refers to a pattern of learned behaviors that is shared and passed on among the members of
an organization.
a. Organizational structure b. Organizational behavior
c. Organizationalpolitics d. Organizational culture
e. Organizational chart
In 2002, The Nokia‟s Research and Development operations were scattered across the world in 69
sites, and its 19,579 engineers, designers and sociologists were given complete freedom to operate
and develop their own ideas, over and above their officially designated research projects. Name the
characteristics of the culture that Nokia follows.
a. People orientation b. Team orientation
c. Outcome orientation d. Philosophy
Innovation and risk taking
A customer service representative at Zappos got a call from a woman to cancel the boots ordered for
her husband, as her husband died after the order. The day after the call, the representative sent her
flowers as a token of condolence. Zappos‟ CEO encourages employees to go “above and
beyond the average level of service to create an emotional impact on the receiver”. This story
replicates the organization‟s _________________.
a. Attentionto detail b. People orientation
c. Philosophy d. Organizational climate
e. Rules
The new employees of the organizations can be helped through induction programs to adopt shared
valued and help in increasing the _________ofculture among employees.
a. Intensity b. Sharedness
c. Outcome d. All the above
e. Nature
In healthcare environment, the IT, Operations, and Front line employees are a minority group. What are
these minority groups called in organizational context?
a. Dominant Culture b. Subculture
c. Weakculture d. Strong culture
e. Organizational culture
New chefs in McDonald‟s who do not have previous training begin their career by doing only one job-
cooking fries. Along with mastering the job of cooking fries, they have to study and take test on the
rules manual which consists 350 pages to get promotion and reach a managerial level. Name the
culture type followed by McDonalds.
a. Hierarchical culture b. Clan culture
c. Market culture d. Adhocracy
Traditional culture
Name the important functions of culture in an organization:
To create a boundary defining role for employees
To act as a control mechanism
To develop a sense of identity
d. Both a & b e. Both a & c
51

From the time Bill Gates was involved in the launch of Microsoft he is known for his passion for hard
work and long hours and these became the basis for that company‟s values of excellence,
innovation and high quality and for creativity and high standards. His work ethic pushed other
employees to come in early and stay late and employees soon developed similar expectations of
innovation and quality relating to their qualities. Identify the factor of influence on the
organizational culture.
a. Selection b. Top management
c. Socialization d. All the above
e. Coercion
In an ice cream company Ben & Jerry‟s Homemade Holdings Inc., corporate values replicate the
personalities of its founders Ben Cohen and Jerry Greenfield. These values are retained as part of
the corporate culture and are being taught to new members as the right way to do business. Define
the learning method of organizational culture.
a. Rituals and ceremonies b. Language
c. Materialsymbols d. Stories
Emblems
The important thingsto be considered while implementing the change process are:
a. Assessexisting culture b. Introduce alternatives
c. Change must be top-down d. All the above
Number of changes that have taken place
52

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