FINALTERM  EXAMINATION

Fall 2009
MGT502- Organizational Behaviour
Solved by vuZs Team
Eemaan Khan, Zubair Hussain
&
Mehreen Humayun
Time: 120 min
M - 80
Question No: 1    ( M - 1 )    .
________________ is the study of societies to learn about human beings and their activities.
 
       Sociology
       Anthropology
       Social work
       Social psychology
Anthropology is the study of societies to learn about human beings and their activities. Anthropologists work on cultures and environments.
   
Question No: 2    ( M - 1 )    .
Ali migrated from Pakistan to a foreign country. He is disorientated by the country’s customs and has difficulty in adapting it. He also feels homesickness. What is Ali experiencing?
 
►Culture shock
►Foreign culture
►Alien culture
►Adventure
People who move to a foreign country feel confused and bewildered by the country’s customs and will have difficulty adapting. This is known as culture shock.   
   
Question No: 3    ( M - 1 )    .
Two people see the same thing at the same time yet interpret it differently. Who is responsible for this difference?
 
►The perceiver
►The timing
►The context
►The situation
   
Question No: 4    ( M - 1 )    .
Which of the following statements is NOT an example of stereotyping?
 
►There is no need to offer child-care to him; men aren’t interested in child care
►Don’t hire an older worker; they can’t learn new skills
►She was good at her last job, so she will be good at this one
►She won’t relocate for a promotion, since women don’t relocate
   
Question No: 5    ( M - 1 )    .
Which of the following are all forms of variable-pay programs?
 
►Wage incentive plans, flextime, piece-rate
►Piece-rate, wage incentive plans, gain sharing
►Profit-sharing, lump-sum bonuses, extended vacations
►Retirement benefits, extended vacations, flextime
 Variable Pay Programs can take the form of piece-rate plans, wage incentives, profit sharing, bonuses, and gain-sharing.
  
Question No: 6    ( M - 1 )    .
What sort of plan is a company-established benefit plan where employees acquire stock as part of their benefits?
 
►MBO program
►Gain sharing plan
►Employee stock ownership plan
►Piece-rate plan
 Ref: An ESOP (Employee stock ownership plan) is a kind of employee benefit plan. Employees can buy stock directly, be given it as a bonus, can receive stock options, or obtain stock through a profit sharing plan.
Question No: 7    ( M - 1 )    .
►Face-to-face interacting groups
►Brainstorming
►Delphi technique
►Nominal group technique
   
Question No: 8    ( M - 1 )    .
According to John Kotter, leaders establish direction by:
 
►Developing a vision of the future
►Inspiring people to overcome hurdles
►Aligning people by communicating their vision
►All of the given options
John Kotter feels that management is about coping with complexity. Leaders establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles.
   
Question No: 9    ( M - 1 )    .
According to the Ohio State studies, which of the following is the extent to which a leader is likely to have job relationships characterized by mutual trust and respect for his/her employees?
 
►Consideration
►Initiating structure
►Consensus-building
►Maximization
Consideration is described as “the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings.”
 
Question No: 10    ( M - 1 )    .
Which of the following are the two dimensions of leadership behavior identified in the University of Michigan studies?
 
►Emotional and rational
►Autocratic and democratic
►Initiating structure and consideration
►Employee-oriented and production-oriented
Leadership studies were undertaken at the same time as those being done at Ohio State, with similar research objectives. They discovered two dimensions of leadership behavior— employee-oriented and production-oriented.
   
Question No: 11    ( M - 1 )    .
Rabia writes a memo to his employees. Putting her thoughts onto paper is an example of:
 
►Encoding
►Communicating
►Messaging
►Channeling
   
Question No: 12    ( M - 1 )    .
Which of the following statements is NOT true regarding face-to-face communication?
 
►It is highly personal
►It has high channel richness
►It usually results in delayed feedback
►It offers multiple information cues
   
Question No: 13    ( M - 1 )    .
A ______ is a senior employee who guides and supports a less-experienced employee.
►Facilitator
► Leader
►Coach
►Mentor
   
Question No: 14    ( M - 1 )    .
The path-goal theory was developed by ______________.
 
►Robert House
►Fred Fiedler
►Blake and Mouton
►Vroom and Yetton
One of the most respected approaches to leadership is the path-goal theory developed by Robert House.   
   
Question No: 15    ( M - 1 )    .
Which of the following is NOT a dimension of trust?
 
►Integrity
►Competence
►Loyalty
►Determination
The key dimensions that underlie the concept of trust are integrity, competence, consistency, loyalty, and openness.
   
Question No: 16    ( M - 1 )    .
Which of the following is a feeling of devotion, duty, or attachment to somebody or something?
 
►Integrity
►Consistency
►Loyalty
►Reliability
The quality or state of being loyal a feeling of devotion, duty, or attachment to somebody or something.
   
Question No: 17    ( M - 1 )    .
Trust and trustworthiness affect a leader’s access to:
 
►Dedication and achievement
►Persuasion and control
►Power and influence
►Knowledge and cooperation
It is evident that it is impossible to lead people who do not trust you. Trust and trust-worthiness modulate the leader’s access to knowledge and cooperation.  
 
Question No: 18    ( M - 1 )    .
 
►The ability to influence the behavior of others
►The right to influence the behavior of others
►The actualization of the dependency of others
►Downward influence on one’s followers
 Power - the ability to influence another person.
  
Question No: 19    ( M - 1 )    .
One reacts to _____ power out of fear of the negative consequences if one fails to comply.
 
►Legitimate 
►Coercive 
►Punitive 
►Referent 
Coercive power depends on fear One reacts to this type of power out of fear of the negative results that might occur if one fails to comply.
   
Question No: 20    ( M - 1 )    .
Which of the following is least likely to create dependency?
 
►Scarcity of resources
►Non substitutability
►Power legitimacy
►Supply and demand
   
Question No: 21    ( M - 1 )    .
Activities that influence the distribution of advantages and disadvantages within an organization are known as:
 
►Human resources
►Political behaviors
►Influential power moves
►Interactive initiatives
We shall define political behavior in organizations as those activities that are not required as part of one’s formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization.   
   
Question No: 22    ( M - 1 )    .
Which of the following is NOT considered one of the potential sources of conflict?
 
►Too much communication
►Value similarities
►Too little communication
►Jurisdictional ambiguity
 
Question No: 23    ( M - 1 )    .
The focus of relationships in distributive bargaining is:
 
►Accommodation
►The long term
►The short term
►Lose-lose
Distributive bargaining can resolve disputes, but it often negatively affects one or more negotiators’ satisfaction because it is focused on the short term. 
   
Question No: 24    ( M - 1 )    .
Which one of the following dichotomies of organizational structure specifically defines where decisions are made?
 
►Complexity/simplicity
►Specialization/enlargement
►Formalization/in formalization
►Centralization/decentralization
   
Question No: 25    ( M - 1 )    .
Which of the following organizational design superimposes product or project based design on existing function-based design?
 
►Matrix Structure
►Functional Structure
►Divisional Structure
►Holding structure
Matrix Structure:   It combines two forms of departmentalization--functional and product.
   
Question No: 26    ( M - 1 )    .
A bureaucracy is characterized by all of the following EXCEPT:
 
►Highly routine operating tasks
►Formalized rules and regulations
►Decentralized decision making
►High work Specialization
 The bureaucracy is characterized by highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.
   
Question No: 27    ( M - 1 )    .
How do most employees react to job enlargement efforts?
 
►Unqualified approval
►Somewhat enthusiastically
►With a lack of enthusiasm
►The reaction tends to be mixed
   
Question No: 28    ( M - 1 )    .
Which one of the following can impact international business operations by its affect on business hours, holidays, and days of rest?
 
►Paralanguage
►Communication barriers
►Religion
►Cultural knowledge
 
Question No: 29    ( M - 1 )    .
Essential elements of TQM include all EXCEPT:
 
►Analysis of customer quality needs
►Benchmarking
►Rewarding
►Standards
Essential Elements of TQM
• A supportive organizational culture
• Management commitment and leadership
• Provide a sense of direction
• Analysis of customer quality needs
• Benchmarking
• Standards
• Strategies to close quality gaps
• Training
• Quality teams
• Progress monitoring and measurement
• Exceeding customer expectations.
   www.vuzs.info
   
Question No: 30    ( M - 1 )    .
Focusing on controlling or eliminating stressors that might provoke the stress response is called:
 
►Managing stress
►Stress Prevention
►Job stress
►Stress management
 Stress Prevention: Focusing on controlling or eliminating stressors that might provoke the stress response.
  
Question No: 31    ( M - 1 )    .
The individual or group who undertakes the task of introducing and managing a change in organization is called:
 
►Negotiator
►Communicator
►Change Agent
►Spokesperson
Change agent - the individual or group who undertakes the task of introducing and managing a change in an organization.
   
Question No: 32    ( M - 1 )    .
All of the following are advantages of internal change agents EXCEPT:
 
►Better Knowledge of the organization
►Available more quickly
►May be close to the problem
►Requires higher out of pocket costs
Advantage of Internal Change Agents is Lower out-of-pocket costs.
  
Question No: 33    ( M - 1 )    .
Ali is working as a Finance Officer in a private limited company. His boss periodically observes his work on specific parts of his job and writes down using specific behavioral descriptions, what he sees him doing. The boss is using which one of the following appraisal technique?
 
►Critical incident methods
►Written essays
►Graphic rating scale
►Paired comparison
The Critical Incident Technique (or CIT) is a set of procedures used for collecting direct observations of human behavior that have critical significance and meet methodically defined criteria.
   
Question No: 34    ( M - 1 )    .
Most important elements in managing culture include all EXCEPT:
 
►What leaders pay attention to
►How leaders react to crises
►How leaders behave
►What leaders think about work
   
Question No: 35    ( M - 1 )    .
Which of the following are indicators of a strong organizational culture?
 
►Weak managers
►Narrowly defined roles
►Widely shared values
►High levels of dissention
Strong cultures: The organization’s core values are both intensely held and widely shared.  
 
Question No: 36    ( M - 1 )    .
Consistency of behavior is an asset to an organization when it faces which of the following?
 
►Massive changes
►A dynamic environment
►An unknown environment
►A stable environment
 Consistency of behavior is an asset to an organization when it faces a stable environment.
   www.vuzs.info
Question No: 37    ( M - 1 )    .
Which of the following is NOT a means of transmitting culture within an organization?
 
►Stories
►Rituals
►Language
►Therapy
   
Question No: 38    ( M - 1 )    .
Which of the following is NOT a source of individual resistance to change?
 
►Habit
►Security
►Inertia
►Economic factors
Individual Resistance
Five reasons why individuals may resist change are:
1. Habit
2. Security
3. Economic factors
4. Fear of the unknown
5. Selective information processing
 
Question No: 39    ( M - 1 )    .
Which one of the following is not listed as a tactic for dealing with resistance to change?
 
►Acceleration
►Manipulation
►Participation
►Education
 Overcoming Resistance to Change
Six tactics used by change agents in dealing with resistance to change:
1. Education and communication
2. Participation
3. Facilitation and support
4. Negotiation
5. Manipulation and cooptation
6. Coercion
 
Question No: 40    ( M - 1 )    .
In practice, organizations use interviews for which of the following reason?
 
►To determine applicant-organization fit
►Solely to assess specific, job relevant skills
►To assess a candidate’s credit history
►To manipulate an applicant’s image of the company
   
Question No: 41    ( M - 5 )
Discuss the advantages and disadvantages of a conflict?
 
Answer: 
Conflict: A process in which one party thinks that its interests are being opposed or negatively affected by another.  There are advantages as well as disadvantages attached to conflict. A conflict of a mild level is always healthy because it brings innovation and creativity. Functional conflict is a healthy, constructive disagreement. Whereas, dysfunctional conflict brings about destruction because it does not end up in resolution.  Generally relationship conflicts focusing on interpersonal relationships are dysfunctional because it affects performance as it decreases mutual understanding. Task conflicts relate to how work will be carried out a moderate level of conflict at this level is good. It enhances performance because it brings about discussion.
 
Question No: 42    ( M - 5 )
What is globalization? Why is Globalization Significant for Organizational Behavior?
Answer:
 
Globalization: Globalization is doing the business across the world.
Significance of Globalization for organizational Behavior:
             There are many significances of globalization for organizational behavior.
  • It helps in avoiding uncertainty
  • It focuses on long and short term orientation
  • It helps in language issues
  • Use of space
  • Uses time orientation
  • Helps learning culture
  • Issue of power distance
  • Religion matters

Question No: 43    ( M - 10 )
Describe the advantages and disadvantages of External Change Agents.
 
Answer:
Change Agents: A change is an alteration in organization's design and change agents refer to an individual or group who is responsible for bringing and managing change within an organization.
  The change agent can internal or external to the organization.
Advantages and Disadvantages of External Change Agents:
 
Advantages
Disadvantages
More diverse experience
Less knowledge of organization
More specific experience and knowledge
An unknown quantity
Views are more objective
Requires higher out of pocket costs
 
Hurts management image
 
Longer start up time
 
Question No: 44    ( M - 10 )
What do you think how organizational culture is developed and how can management attempt to maintain it.
 
Answer:
Organizational Culture: Organizational culture is a set of shared, taken for granted implicit assumptions that a group holds and that determines it perceives, thinks about and reacts to its various environment.
Developing Organizational Culture: Organizational culture is a combination of peoples' shared values, routine behaviors of employee, rules and regulation of the organization, various norms shared by teams and climate of organization. Interaction of all these help developing organizational culture.
     In order to develop a strong organizational culture organization needs to develop a mission statement for the firm, strategic objectives to back and support the mission, identifying core values and operating principles that support the mission and strategic objectives. Socializing new employees into culture of firm and hiring employees who are compatible with firm's culture. Needs to communicate culture to employees is also an important aspect of developing a strong culture.
Maintaining Organizational Culture: Maintaining a stable organizational culture is one of the very important aspect management must look into for a smooth running.
   Maintaining a culture needs a strong knowledge of culture first, communicating it effectively to the employees. Helping new comers learn the culture. How leaders react to crisis also helps maintaining and managing culture.
 
Question No: 45    ( M - 10 )
Suppose you are CEO of a well-reputed ceramic company which is successfully operating at national level. Now you have decided to extend your business in the global market. Describe what the expected benefits of doing so are? And what competencies you need to acquire in order to be successful in global market?
 
Answer:
Being a CEO of a company decision of going into global market needs many things to take into consideration.
 The benefits attached to globalization
·         Increased market share
·         Low costs
·         Enormous economic power and impact
·         Diverse workforce
 
Competencies required going into global market
  • Must understand difference cultures
  • Knowledge of language
  • Managerial skills vary across world so managers should learn what is demanded outside country
  • Communication needs to be more strong
  • Requires foreign exchange knowledge
  • Openness to diversification