Test Bank Ch1

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Chapter 01 Organizational Behavior: The Quest for People- 2. Power can be provided to employees via centralization.
(p. 4)
Centered Organizations and Ethical Conduct Answer Key
FALSE
Power can be provided to employees via decentralization and self-
directed teams.
True / False Questions

AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory
1. People-centered practices are associated with higher profits and lower Y assumptions about employees.
(p. 4) Level of Difficulty: 2 Medium

employee turnover.
Topic: Introduction
TRUE 3. Providing training for employees leads to lower employee turnover.

(p. 4)
Research evidence from companies in both the United States and

TRUE
Germany shows that people-centered practices are strongly associated
with much higher profits and significantly lower employee turnover. Providing training is one of the people-centered practices. This leads to
lower employee turnover.
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Understand
Y assumptions about employees.
Level of Difficulty: 1 Easy
Topic: Introduction
Topic: Introduction
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Topic: Welcome to the World of OB

4. Trust can be built in organizations through the sharing of critical
(p. 4)
information.
6. OB is an interdisciplinary field dedicated to better understanding and
(p. 6)
managing people at work.
TRUE
TRUE
Trust can be built in organizations through the sharing of critical
information.
OB is an interdisciplinary field dedicated to better understanding and
managing people at work.

AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory AACSB: Analytic
Y assumptions about employees. Blooms: Remember
Level of Difficulty: 1 Easy Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory
Topic: Introduction Y assumptions about employees.
Topic: Organizational Behavior: An Interdisciplinary Field

5. Organizations are a social invention helping us to achieve things
(p. 5)
collectively that we could not achieve alone.
7. The three levels of OB analysis are individual, business, and strategic.
(p. 6)
TRUE
FALSE
Organizations are a social invention helping us to achieve things

The three basic levels of analysis in organizational behavior are
collectively that we could not achieve alone.
individual, group, and organizational.
AACSB: Analytic
AACSB: Analytic
Blooms: Remember
Blooms: Remember

9. Organizational behavior is a vertical discipline functioning in the human
(p. 7)
resource realm.
8. OB knowledge is derived exclusively from organization theory.

(p. 6)
FALSE
FALSE
OB is a horizontal discipline cutting across virtually every job category,
OB draws upon a diverse array of disciplines, including psychology, business function, and professional specialty.
management, sociology, organization theory, social psychology,
statistics, anthropology, general systems theory, economics, AACSB: Analytic
Blooms: Remember
information technology, political science, vocational counseling, human
stress management, psychometrics, ergonomics, decision theory, and Y assumptions about employees.

ethics.
Topic: Some FAQs about Studying OB
AACSB: Analytic
Blooms: Remember
10. Organizational behavior is a specific job category in most 11. Legalization of union-management collective bargaining helped foster
(p. 7) (p. 8)
organizations. the human relations movement.
FALSE TRUE
Organizational behavior is an academic designation. With the A unique combination of factors during the 1930s fostered the human
exception of teaching/research positions, OB is not an everyday job relations movement. First, following legalization of union-management
category such as accounting, marketing, information technology, or collective bargaining in the United States in 1935, management began
finance. Students of OB typically do not get jobs in organizational looking for new ways of handling employees. Second, behavioral
behavior, per se. scientists conducting on-the-job research started calling for more
attention to the "human" factor.
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
Topic: Some FAQs about Studying OB
Topic: The Human Relations Movement
12. Reanalysis of the original Hawthorne data explained that high-quality 13. Writer Elton Mayo advised managers to attend to employees'
(p. 8) (p. 8)
raw materials were responsible for high output in the relay assembly emotional needs in his 1933 classic The Human Problems of an
test room experiments. Industrial Civilization.
TRUE TRUE
Reanalysis of the original Hawthorne data explained that money, fear Writer Elton Mayo advised managers to attend to employees'
of unemployment during the Great Depression, managerial discipline, emotional needs in his 1933 classic The Human Problems of an
and high-quality raw materials not supportive supervision turned Industrial Civilization.
out to be responsible for high output in the relay assembly test room
experiments. AACSB: Analytic
Blooms: Remember
AACSB: Analytic Y assumptions about employees.
Blooms: Remember Level of Difficulty: 1 Easy
Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory Topic: The Human Relations Movement

14. Mary Parker Follett urged managers to demand job performance from
(p. 8)
employees instead of merely attempting to motivate them.
FALSE
Mary Parker Follett urged managers to motivate job performance
instead of merely demanding it, a "pull" rather than "push" strategy.
AACSB: Analytic
Blooms: Remember
16. According to McGregor's Theory X, people tend to procrastinate and
(p. 9)
Level of Difficulty: 2 Medium loaf whenever they can.
TRUE
15. According to McGregor's Theory Y, managers could accomplish more
(p. 9)
by believing that employees require close direction when they are
One of the assumptions of McGregor's Theory X is that most people
working.
must be coerced and threatened with punishment before they will
work. It assumed that most people actually prefer to be directed. They

FALSE
tend to avoid responsibility and exhibit little ambition.
Refer: Table 1-1

McGregor believed managers could accomplish more through others by
viewing them as self-energized, committed, responsible, and creative

AACSB: Analytic
beings.
Blooms: Understand

AACSB: Analytic
Level of Difficulty: 2 Medium
Blooms: Remember
17. Confidence, self-control, self-direction, imagination, and creativity are
(p. 9)
the key dimensions of McGregor's Theory X. Level of Difficulty: 2 Medium
FALSE
19. According to McGregor's Theory X, employees must be coerced and
(p. 9)
threatened with punishment before they will work.
Close direction, coercion, punishment, irresponsibility, and employee
security are the key dimensions of McGregor's Theory X.

TRUE
Refer: Table 1-1
According to McGregor's Theory X, employees must be coerced and

AACSB: Analytic
threatened with punishment before they will work.
Blooms: Understand
Refer: Table 1-1
Topic: The Human Relations Movement AACSB: Analytic
Blooms: Remember
18. According to McGregor's Theory Y, the typical employee can learn to
(p. 9)
accept and seek responsibility. Level of Difficulty: 2 Medium
TRUE
According to McGregor's Theory Y, the typical employee can learn to
accept and seek responsibility.
Refer: Table 1-1
AACSB: Analytic
Blooms: Remember
20. The ultimate goal of Six Sigma is to come within six standard 21. Total quality management (TQM) is defined as continuous, customer-
(p. 10) (p. 11)
deviations of perfection. centered, employee-driven improvement.
TRUE TRUE
Six Sigma expresses a way of thinking about business a problem that Total quality management (TQM) is defined as continuous, customer-
encourages precision and predictability. The "sigma" refers to the centered, employee-driven improvement.
Greek letter, which in statistics is used to measure how far something
deviates from perfection. The "six" comes from the goal to be no more AACSB: Analytic
Blooms: Remember
than six standard deviations away from that perfect measure.
Learning Objective: 01-02 Identify the four principles of total quality management (TQM).
Topic: The Quality Movement

AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory 22. Total quality management is in the corporate DNA today thanks in
Y assumptions about employees. (p. 11)
large part to the pioneering work of Douglas McGregor.
FALSE
Total quality management is in the corporate DNA today thanks in
large part to the pioneering work of W Edwards Deming.
AACSB: Analytic
Blooms: Remember
23. Total quality management need not be necessarily employee driven. 25. According to W. Edwards Deming, when things go wrong, there is
(p. 11) (p. 11)
roughly a 40% chance that the system is at fault and about a 60%
FALSE chance that the individual employee is at fault.
TQM is necessarily employee driven because product or service quality

FALSE
cannot be continuously improved without the active learning and
participation of every employee. According to W. Edwards Deming, when things go wrong, there is
roughly an 85% chance the system (including management,
AACSB: Analytic
machinery, and rules) is at fault and about 15% chance that the
Blooms: Remember
individual employee at fault.

AACSB: Analytic
Blooms: Remember
24. In successful improvement programs, total quality management Learning Objective: 01-02 Identify the four principles of total quality management (TQM).

principles are embedded in the organization's culture.
TRUE 26. W. Edwards Deming believed that statistical analysis is required to

(p. 11)
uncover system failures.
In successful improvement programs, total quality management
principles are embedded in the organization's culture.

TRUE
AACSB: Analytic
W. Edwards Deming believed that statistical analysis is required to
Blooms: Remember
uncover system failures.

AACSB: Analytic
Blooms: Remember
28. Social media innovations have enabled the growing importance of
(p. 12)
Level of Difficulty: 2 Medium usergenerated content.
TRUE
27. Deming called for emphasis on numerical quotas rather than on
(p. 11)
continuous process improvements.
Social media innovations such as Facebook, LinkedIn, and Twitter have
enabled the growing importance of usergenerated content. Passive

FALSE
consumers of mass content have become creators and distributors of
individualized content who blog, Facebook, and tweet whatever they

Deming called for emphasis on continuous process improvements
like to whomever they like whenever they like.
rather than on numerical quotas.
AACSB: Analytic
AACSB: Analytic
Blooms: Remember
Blooms: Remember
Learning Objective: 01-03 Define the term e-business; and describe the Net Generation.
Topic: The Internet and Social Media Revolution
29. E-commerce involves buying and selling goods and services over the
(p. 12)
internet.
TRUE
E-business involves using the Internet to facilitate every aspect of
running a business, including the management of virtual teams.
AACSB: Analytic
Blooms: Remember
31. Human capital is the productive potential of an individual's knowledge
(p. 15)
Level of Difficulty: 2 Medium and actions.
TRUE
30. E-business has evolved into e-commerce i.e. using the Internet to
(p. 12)
facilitate every aspect of running a business, including the
Human capital is the productive potential of an individual's knowledge
management of virtual teams.
and actions.
FALSE
AACSB: Analytic
Blooms: Remember
E-commerce (buying and selling goods and services over the Internet) Learning Objective: 01-04 Contrast human and social capital; and explain why we need to build both.

has evolved into e-business i.e. using the Internet to facilitate every
Topic: The Need to Build Human and Social Capital
aspect of running a business, including the management of virtual
teams. 32. Social capital is productive potential resulting from strong

(p. 15)
relationships, goodwill, trust, and cooperative effort.
AACSB: Analytic
Blooms: Remember
TRUE

Social capital is productive potential resulting from strong
relationships, goodwill, trust, and cooperative effort.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 Contrast human and social capital; and explain why we need to build both.

33. Trust, mutual respect, teamwork, and cooperative effort are
(p. 15)
dimensions of human capital.
35. Good management requires a clear purpose and a bias toward action.
(p. 16)
FALSE
TRUE
Trust, mutual respect, teamwork, and cooperative effort are

A recent review of 30 years of business literature led to this conclusion
dimensions of social capital. It is a productive potential resulting from
about what good management involves: "Find a clear purpose. Be
strong relationships, goodwill, trust, and cooperative effort.
aware that past experience and a mass of information can interfere
with wise decisions. Maintain a bias toward action. Be open to change.

AACSB: Analytic
Seek feedback."
Blooms: Remember

AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 Define the term management; and identify at least five of the eleven managerial skills
34. Positive social interactions can have favorable impacts on in Wilson's profile of effective managers.

cardiovascular health and the immune system.
Topic: The Managerial Context: Getting Things Done with and through Others
TRUE
Research indicates that positive social interactions can have favorable
impacts on cardiovascular health and the immune system.
AACSB: Analytic
Blooms: Remember
36. Henry Mintzberg observed that managers typically devote large blocks 37. According to Wilson's managerial skills research, an effective manager
(p. 16) (p. 17)
of time to planning. controls details by being overbearing.
FALSE FALSE
Observational studies by Henry Mintzberg and others have found the According to Wilson's managerial skills research, an effective manager
typical manager's day to be a fragmented collection of brief episodes. controls details without being overbearing.
Interruptions are commonplace, while large blocks of time for planning Refer: Table 1-2
and reflective thinking are not.
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
in Wilson's profile of effective managers.
Topic: What Do Managers Do? A Skills Profile
38. The Wilson managerial skills research yields the lesson that dealing 39. Managers with high levels of skill mastery tend to have better subunit
(p. 18) (p. 18)
effectively with people is what management is all about. performance and employee morale than managers with lower levels of
skill mastery.
TRUE
TRUE
The Wilson managerial skills research yields that dealing effectively
with people is what management is all about. The eleven managerial The Wilson managerial skills research yields that, managers with high
skills given by Wilson constitute a goal levels of skill mastery tend to have better subunit performance and
creation/commitment/feedback/reward/accomplishment cycle with employee morale than managers with lower levels of skill mastery.
human interaction at every turn.
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Characterize 21st-century managers.

40. According to the Wilson managerial skills research, effective female
(p. 18)
and male managers have significantly different skill profiles. Topic: 21st-Century Managers
42. A successful 21st century manager uses formal authority as the

FALSE
(p. 19)
primary source of influence.
According to the Wilson managerial skills research, effective female
and male managers do not have significantly different skill profiles, FALSE
contrary to claims in the popular business press in recent years.

A successful 21st century manager uses knowledge (technical and
interpersonal) as the primary source of influence.

AACSB: Analytic
Blooms: Remember
Refer: Table 1-3
Level of Difficulty: 2 Medium AACSB: Analytic
Topic: What Do Managers Do? A Skills Profile Blooms: Remember
st Level of Difficulty: 2 Medium

41. The successful 21 century manager shares access to power and key
Topic: 21st-Century Managers
(p. 19)
information.
TRUE
The successful 21st century manager shares access to power and key
information.
Refer: Table 1-3
AACSB: Analytic
Blooms: Remember
43. The primary role of a 21st century manager is to give orders and 45. Managers of the future will be compensated based on time, effort, and
(p. 19) (p. 19)
control action. rank.
FALSE FALSE
The primary role of a 21st century manager is to facilitate, teach, Managers of the future will be compensated based on skills and
advocate, sponsor, and coach. results.
Refer: Table 1-3 Refer: Table 1-3
AACSB: Analytic AACSB: Analytic
Blooms: Remember Blooms: Remember
Learning Objective: 01-06 Characterize 21st-century managers. Learning Objective: 01-06 Characterize 21st-century managers.
Level of Difficulty: 2 Medium Level of Difficulty: 2 Medium
Topic: 21st-Century Managers Topic: 21st-Century Managers
44. A successful 21st century manager seeks to facilitate change. 46. Corporate officers in the U.S. became subject to high accountability
(p. 19) (p. 20)
standards and harsh criminal penalties under the Sarbanes-Oxley Act
TRUE of 2002.
A successful 21st century manager seeks to facilitate change.

TRUE
Refer: Table 1-3
Corporate officers in the U.S. became subject to high accountability
AACSB: Analytic
standards and harsh criminal penalties under the Sarbanes-Oxley Act
Blooms: Remember
of 2002.

AACSB: Analytic
Blooms: Remember
48. In Carroll's global corporate social responsibility pyramid, legal
Learning Objective: 01-07 Describe Carroll's global corporate social responsibility pyramid; and discuss the
(p. 21)
problem of moral erosion. responsibility states that one should do what is expected by global
stakeholders.
Topic: The Ethics Challenge
47. The highest level of Carroll's global social responsibility pyramid is FALSE
(p. 20)
occupied by ethical responsibility.
In Carroll's global corporate social responsibility pyramid, legal
responsibility states that one should do what is required by global

FALSE
stakeholders.
The highest level of Carroll's global social responsibility pyramid is Refer: Figure 1-3
occupied by philanthropic responsibility.
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
problem of moral erosion.
49. In Carroll's global corporate social responsibility pyramid, philanthropic 50. Employers are generally lax when it comes to checking references,
(p. 21) (p. 24)
responsibility states that one should do what is desired by global creden ial , ran crip , and o her informa ion on applican r m .
stakeholders.
TRUE
TRUE
Employers are generally lax when it comes to checking references,
In Carroll's global corporate social responsibility pyramid, philanthropic creden ial , ran crip , and o her informa ion on applican r m .
responsibility states that one should do what is desired by global More diligent action in this area can screen out those given to fraud
stakeholders. and misrepresentation.
Refer: Figure 1-3
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Learning Objective: 01-08 Identify four of the seven general ethical principles; and explain how to improve an
Blooms: Remember
organization's ethical climate.
Topic: How to Improve the Organization's Ethical Climate

51. An organization's ethical climate can be improved by developing a
(p. 25)
meaningful code of ethics.
TRUE
An organization's ethical climate can be improved by developing a
meaningful code of ethics.
AACSB: Analytic
Blooms: Remember
53. A field study is a statistical pooling technique allowing behavioral
(p. 26)
Level of Difficulty: 2 Medium scientists to draw general conclusions about certain variables from
many different studies.
52. Codes of ethics will have a positive impact if they are not enforced with
(p. 25) FALSE
strict penalties for noncompliance.
A meta-analysis is a statistical pooling technique allowing behavioral

FALSE
scientists to draw general conclusions about certain variables from
many different studies.

Codes of ethics will have a positive impact if they are evenly enforced
with rewards for compliance and strict penalties for noncompliance.

AACSB: Analytic
Blooms: Remember
AACSB: Analytic Learning Objective: 01-09 Describe the sources of organizational behavior research evidence.
Blooms: Remember Level of Difficulty: 2 Medium
Learning Objective: 01-08 Identify four of the seven general ethical principles; and explain how to improve an Topic: Five Sources of OB Research Insights

54. Due to the highly controlled nature of laboratory studies, generalizing
(p. 27)
the results to organizational management requires caution.
TRUE
The highly controlled nature of laboratory studies enhances research
precision. But generalizing the results to organizational management
requires caution.
AACSB: Analytic
Blooms: Remember
56. People-centered management practices are associated with:
Learning Objective: 01-09 Describe the sources of organizational behavior research evidence.
(p. 4)
Topic: Five Sources of OB Research Insights
A. higher profits.
55. Case studies yield very generalizable results.
B. higher turnover.
(p. 27)
C. increased centralized decision making.
FALSE
D. increased layoffs.
As case studies have limited scope, they yield realistic but not very E. increased emphasis on hierarchical status.
generalizable results.
Research evidence from companies in both the United States and
Germany shows that people-centered practices are strongly associated

AACSB: Analytic
with much higher profits and significantly lower employee turnover.
Blooms: Remember

AACSB: Analytic
Blooms: Remember
Multiple Choice Questions Topic: Introduction
57. Which of the following people-centered practices is carried out to build 58. Which of the following people-centered practices is achieved through
(p. 4) (p. 4)
a "we" feeling? the sharing of critical information?
A. Job security A. Job security
B. Careful hiring B. Trust building
C. Less emphasis on status C. Less emphasis on status
D. Lots of training D. Lots of training
E. Generous pay for performance E. Generous pay for performance
Less emphasis is given on status in order to build a "we" feeling. Trust building is achieved through the sharing of critical information.
Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory
Y assumptions about employees. Y assumptions about employees.
Level of Difficulty: 1 Easy Level of Difficulty: 1 Easy
Topic: Introduction Topic: Introduction
59. The three basic levels of analysis in organizational behavior are: 60. Which of the following is true about organizational behavior (OB)?
(p. 6) (p. 6)
A. psychological, sociological, and statistical. A. Accounting and finance students need not study OB.
B. emotional, physical, and cognitive. B. OB teaches employees how to survive in an organization, but not
C. functional, business, and strategic. how to thrive in it.
D. individual, group, and organizational. C. The three basic levels of analysis in organizational behavior are
E. group, business, and environmental. functional, business, and strategic.
D. OB deals with how people react outside organizations.

The three basic levels of analysis in organizational behavior are
E. OB is both research and application oriented.
individual, group, and organizational.
Organizational behavior, commonly referred to as OB, is an
AACSB: Analytic
interdisciplinary field dedicated to better understanding and managing
Blooms: Remember
people at work. By definition, organizational behavior is both research

and application oriented.
AACSB: Analytic
Blooms: Remember
61. According to academics and managers, which of the following had a 62. As early as the 1920s, Mary Parker Follett:
(p. 8) (p. 8)
powerful effect on job performance that helped the human relations
movement gather momentum through the 1950s?

A. argued for using the one-best way to perform tasks.
B. suggested that managers could accomplish more through others by
A. Fear of unemployment during the Great Depression viewing them as self-energized, committed, responsible, and
B. Individual needs creative beings.
C. High-quality raw materials C. advocated a "push" rather than "pull" strategy to improve employee
D. Scientific principles performance.
E. Managerial discipline D. focused on the importance of using high-quality raw material to
increase productivity.
The human relations movement gathered momentum through the
E. advised managers to motivate job performance instead of merely
1950s, as academics and managers alike made stirring claims about
demanding it.
the powerful effect that individual needs, supportive supervision, and
group dynamics apparently had on job performance. Mary Parker Follett was ahead of her time in telling managers to
motivate job performance instead of merely demanding it, a "pull"
AACSB: Analytic
rather than "push" strategy.
Blooms: Remember
Y assumptions about employees. AACSB: Analytic
Level of Difficulty: 3 Hard Blooms: Remember
Topic: The Human Relations Movement Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory
Level of Difficulty: 3 Hard
63. The book, The Human Problems of an Industrial Civilization, that 64. Which of the following is an assumption of McGregor's Theory X?
(p. 8) (p. 9)
advised managers to attend to employees' emotional needs, was
written by _____.
A. People generally become committed to organizational objectives if
they are rewarded for doing so.
A. Douglas McGregor B. Work is a natural activity, like play or rest.
B. Elton Mayo C. People are capable of self-direction and self-control if they are
C. W. Edwards Deming committed to objectives.
D. Henry Mintzberg D. Most people dislike work and they avoid it when they can.
E. Mary Parker Follett E. The typical employee can learn to accept and seek responsibility.
Elton Mayo, who headed the Harvard researchers at Hawthorne, One of the assumptions of McGregor's Theory X is that most people
advised managers to attend to employees' emotional needs in his dislike work and they avoid it when they can.
1933 classic, The Human Problems of an Industrial Civilization. Refer: Table 1-1
Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory Learning Objective: 01-01 Define the term organizational behavior; and contrast McGregor's Theory X and Theory
Y assumptions about employees. Y assumptions about employees.
Topic: The Human Relations Movement Topic: The Human Relations Movement
65. Which of the following is an assumption of McGregor's Theory Y? 66. _____ is based on pessimistic and negative assumptions about human
(p. 9) (p. 9)
nature.
A. The typical person has imagination and creativity.
B. Most people dislike work. A. Theory A
C. Most people must be coerced and threatened with punishment B. Theory W
before they will work. C. Theory X
D. Most people actually prefer to be directed. D. Theory Y
E. People require close direction when they are working. E. Theory Z
One of the assumptions of McGregor's Theory Y is that the typical McGregor's Theory X assumptions were pessimistic and negative and,
member of the general population has imagination, ingenuity, and according to McGregor's interpretation, typical of how managers
creativity. traditionally perceived employees.
Refer: Table 1-1
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
67. Which of the following theories was formulated to help managers 68. According to the principles of total quality management (TQM),
(p. 9) (p. 11)
break with the negative tradition of how they perceived employees? improvement is _____ driven.
A. Theory A A. stakeholder
B. Theory W B. management
C. Theory X C. leader
D. Theory Y D. employee
E. Theory Z E. industry
McGregor's Theory X assumptions were pessimistic and negative and, TQM is employee driven because product or service quality cannot be
according to Mc Gregor's interpretation, typical of how managers continuously improved without the active learning and participation of
traditionally perceived employees. To help managers break with this every employee.
negative tradition, McGregor formulated his Theory Y, a modern and
positive set of assumptions about people. McGregor believed managers AACSB: Analytic
Blooms: Remember
could accomplish more through others by viewing them as self-
energized, committed, responsible, and creative beings. Level of Difficulty: 2 Medium
AACSB: Analytic
Blooms: Remember
69. Which of the following is defined as, "continuous, customer-centered, 70. Which of the following did W. Edwards Deming call for, regarding the
(p. 11) (p. 11)
employee-driven improvement?" human side of development?
A. Total quality management A. Emphasis on individual responsibility
B. Contingency approach B. Elimination of freedom to ask questions
C. Open-systems perspective C. Elimination of barriers to good workmanship
D. Refreezing process D. Emphasis on numerical quotas
E. Organizational subculture E. Order giving and punishment
Quality consultant Richard J Schonberger sums up total quality Regarding the human side of quality improvement, one of the things
management as "continuous, customer-centered, employee-driven Deming called for was the elimination of barriers to good
improvement." workmanship.
Learning Objective: 01-02 Identify the four principles of total quality management (TQM). Learning Objective: 01-02 Identify the four principles of total quality management (TQM).
Topic: The Quality Movement Topic: The Quality Movement
71. According to W. Edwards Deming, _____ is required to uncover 72. According to W. Edwards Deming, when things go wrong, there is
(p. 11) (p. 11)
system failures. roughly a(n) ______ % chance the system (e.g., management,
machinery, or rules) is at fault and about a(n) _____ % chance the
individual employee is at fault.

A. a fearful work environment
B. new leadership
C. an interview with the attending supervisor A. 80, 20
D. an interview with the employee responsible B. 15, 85
E. statistical analysis C. 75, 25
D. 85, 15
As Deming observed, the typical manager spends most of her time
E. 95, 05
wrongly blaming and punishing individuals for system failures.
Statistical analysis is required to uncover system failures. When things go wrong, there is roughly an 85% chance the system
(including management, machinery, and rules) is at fault. Only about
AACSB: Analytic
15% of the time is the individual employee at fault.
Blooms: Remember
Level of Difficulty: 2 Medium AACSB: Analytic
Topic: The Quality Movement Blooms: Remember
73. A common principle underlying various total quality management 74. _____ refers to using the Internet to facilitate every aspect of running
(p. 12) (p. 12)
(TQM) programs is that one should: a business.
A. trace defective items back to the individual responsible. A. Virtual organization
B. maintain a strong distinction between labor and management. B. E-business
C. listen and learn from competitors. C. E-mail
D. not learn from customers. D. Virtual team
E. do it right the first time to eliminate costly rework. E. E-commerce
One of four common TQM principles is, to do it right the first time to What was once e-commerce (buying and selling goods and services
eliminate costly rework and product recalls. over the Internet), has evolved into e-business, using the Internet to
facilitate every aspect of running a business.
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
75. _____ capital represents the productive potential of an individual's 76. _____ capital represents the productive potential resulting from strong
(p. 15) (p. 15)
knowledge and actions. relationships, goodwill, trust, and cooperative effort.
A. Organizational A. Organizational
B. Relationship B. Relationship
C. Human C. Human
D. Structural D. Structural
E. Social E. Social
Human capital is the productive potential of an individual's knowledge Social capital is the productive potential of strong, trusting, and
and actions. cooperative relationships.
Learning Objective: 01-04 Contrast human and social capital; and explain why we need to build both. Learning Objective: 01-04 Contrast human and social capital; and explain why we need to build both.
Topic: The Need to Build Human and Social Capital Topic: The Need to Build Human and Social Capital
77. Intel spends millions of dollars each year to encourage education in 78. _____ is the process of working with and through others to achieve
(p. 15) (p. 16)
math and science by holding tough contests with scholarships. This organizational objectives in an efficient and ethical manner.
policy:
A. Performance appraisal
A. builds human capital. B. Management
B. improves the productive potential of strong, trusting, and C. Human relations movement
cooperative relationships. D. Surface-level diversity
C. increases employee turnover. E. Globalization
D. reflects a Theory X view of human nature.

Management is the process of working with and through others to
E. aims to promote philanthropy.
achieve organizational objectives, efficiently and ethically, amid
Human capital is the productive potential of an individual's knowledge constant change.
and actions. Intel encourages youngsters to study math and science
and sponsors rigorous science competitions with scholarships up to AACSB: Analytic
Blooms: Remember
$100,000 for the winners. The aim of Intel is to build the world's
human capital. in Wilson's profile of effective managers.
AACSB: Analytic
Blooms: Understand
79. According to Clark Wilson, an effective manager: 80. Which of the following calls for using management techniques in a
(p. 17) (p. 18)
situationally appropriate manner instead of relying on "one best way"?
A. does not rely on schedules and deadlines to keep things moving.
B. makes unilateral decisions to ensure objectives are met. A. Theory Y
C. controls details by being overbearing. B. Six Sigma approach
D. assigns duties to others while maintaining goal clarity and C. Human relations movement
commitment. D. Contingency approach
E. applies intense pressure for goal accomplishment. E. Total quality management
According to Clark Wilson, an effective manager empowers and The contingency approach calls for using management techniques in a
delegates key duties to others while maintaining goal clarity and situationally appropriate manner, instead of trying to rely on "one best
commitment. way" or "one size fits all."
Refer: Table 1-2
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
Topic: The Contingency Approach to Management
81. Which of the following is a characteristic of a 21st century manager? 82. Which of the following is a characteristic of a 21st-century manager?
(p. 19) (p. 19)
A. Vertical communication patterns A. Compensation based on time, effort, and rank
B. Compensation based on time and effort B. Viewing people as a primary resource
C. Periodic learning C. A monocultural, monolingual orientation
D. Afterthought ethical consideration D. Afterthought ethical consideration
E. Multicultural orientation E. Hoarding power and key information
Multicultural orientation is a characteristic of a 21st manager. A 21st-century manager views people as a primary resource.
Refer: Table 1-2
AACSB: Analytic
Blooms: Remember
AACSB: Analytic
Blooms: Remember
83. Corporate officers in the United States are subject to high 84. The base of Carroll's global corporate social responsibility pyramid is
(p. 20) (p. 21)
accountability standards and harsh penalties under the _____ Act. _____ responsibility.
A. Swart-Surber A. economic
B. Hayes-Rachel B. legal
C. Gambino C. ethical
D. Sarbabes-Oxley D. philanthropic
E. Brown E. egoistic
Corporate officers in the United States are subject to high The base of Carroll's global corporate social responsibility pyramid is
accountability standards and harsh penalties under the Sarbabes-Oxley economic responsibility.
Act. The act was instituted to promote ethical behavior in business. Refer: Figure 1-3
Learning Objective: 01-06 Characterize 21st-century managers. Learning Objective: 01-07 Describe Carroll's global corporate social responsibility pyramid; and discuss the
Level of Difficulty: 2 Medium problem of moral erosion.
Topic: The Ethics Challenge Level of Difficulty: 2 Medium
Topic: A Model of Global Corporate Social Responsibility and Ethics
85. In Carroll's global corporate social responsibility pyramid, _____ 86. Which of the following moral principles of Hodgson states that all have
(p. 21) (p. 24)
responsibility states that one should do what is required by the right be treated equitably, and the right to the necessities of life,
stakeholders. especially those in deep need and the helpless?
A. economic A. Dignity of human life
B. legal B. Autonomy
C. ethical C. Honesty
D. philanthropic D. Loyalty
E. egoistic E. Fairness
The legal responsibility states that that one should do what is required The moral principle of fairness states that people should be treated
by stakeholders. justly. One has the right to be treated fairly, impartially, and equitably.
Refer: Figure 1-3 One has the obligation to treat others fairly and justly. All have the
right to the necessities of life, especially those in deep need and the
AACSB: Analytic
helpless.
Blooms: Remember
Refer: Table 1-4

AACSB: Analytic
Topic: A Model of Global Corporate Social Responsibility and Ethics
Blooms: Remember
Topic: General Moral Principles
87. In Hodgson's seven moral principles, the notion of self-determination 88. Which of the following is true about organizational ethics?
(p. 24) (p. 25)
is captured by _____.
A. Ethical behavior is a bottom-to-top proposition.
A. dignity of human life B. Ethics will have a positive impact if they are not enforced with strict
B. autonomy penalties for noncompliance.
C. honesty C. Ethical conduct is often ignored.
D. loyalty D. Ethical behavior that is reinforced tends to disappear.
E. humaneness E. Managers ensure that unethical behavior is punished.
The principle of autonomy states that all persons are intrinsically Ethical conduct too often is ignored or even punished while unethical
valuable and have the right to self-determination. We should act in behavior is rewarded.
ways that demonstrate each person's worth, dignity, and right to free
choice. AACSB: Analytic
Blooms: Remember
Refer: Table 1-4

AACSB: Analytic
Blooms: Remember
89. _____ occurs when an employee reports a perceived unethical and/or 90. A _____ is a statistical pooling technique that allows behavioral
(p. 26) (p. 26)
illegal activity to a third party such as government agencies, news scientists to draw conclusions about certain variables from many
media, or public-interest groups. different studies.
A. Blind trust A. case study
B. Collusion B. meta-analysis
C. Embezzlement C. sample survey
D. Whistle-blowing D. field analysis
E. Lapping E. laboratory study
Whistle-blowing occurs when an employee reports a perceived A meta-analysis is a statistical pooling technique that allows behavioral
unethical and/or illegal activity to a third party such as government scientists to draw conclusions about certain variables from many
agencies, news media, or public-interest groups. different studies.
Learning Objective: 01-08 Identify four of the seven general ethical principles; and explain how to improve an Learning Objective: 01-09 Describe the sources of organizational behavior research evidence.
organization's ethical climate. Level of Difficulty: 1 Easy
Level of Difficulty: 2 Medium Topic: Five Sources of OB Research Insights
91. Which of the following is true about a field study? 92. In a _____, variables are manipulated and measured in controlled
(p. 27) (p. 27)
situations.
A. A field study is an in-depth analysis of a single individual, group, or
organization. A. case study
B. A field study is a statistical pooling technique that permits B. meta-analysis
behavioral scientists to draw general conclusions about certain C. sample survey
variables from many different studies. D. field study
C. In a field study, samples of people from specified populations E. laboratory study
respond to questionnaires.
Laboratory studies manipulate and measurement variables of interest
D. A field study probes individual or group processes in an
in contrived situations.
organizational setting, involving real-life situations.
E. In a field study, variables are manipulated and measured in

AACSB: Analytic
contrived situations.
Blooms: Remember
In OB, a field study probes individual or group processes in an Level of Difficulty: 1 Easy

organizational setting. Because field studies involve real-life situations,
their results often have immediate and practical relevance for
managers.
AACSB: Analytic
Blooms: Remember
93. The highly controlled nature of _____ enhances research precision. 94. A _____ is an in-depth analysis of a single individual, group, or
(p. 27) (p. 27)
organization.
A. field studies
B. sample surveys A. case study
C. laboratory studies B. meta-analysis
D. case studies C. sample survey
E. meta-analyses D. field study
E. laboratory study
In a laboratory study, variables are manipulated and measured in
contrived situations. The highly controlled nature of laboratory studies A case study is an in-depth analysis of a single individual, group, or
enhances research precision. organization.
Learning Objective: 01-09 Describe the sources of organizational behavior research evidence. Learning Objective: 01-09 Describe the sources of organizational behavior research evidence.
Topic: Five Sources of OB Research Insights Topic: Five Sources of OB Research Insights
Essay Questions
95. List the seven people-centered practices that are strongly associated 96. Describe McGregor's Theory X and Theory Y assumptions about people
(p. 4)
with higher profits and lower employee turnover. (p. 9)
at work.
The following seven people-centered practices are strongly associated Theory X assumptions are pessimistic and negative in nature. It is
with much higher profits and significantly lower employee turnover: assumed that people dislike work and will avoid it when possible, that
they must be coerced and threatened and that they prefer to be

(1) Job security (to eliminate fear of layoffs).
directed. Theory X assumes that people avoid responsibility and exhibit
(2) Careful hiring (emphasizing a good fit with the company culture).
little ambition and that they are interested only in security. Theory Y
(3) Power to the people (via decentralization and self-managed
assumptions are positive in nature. In this case, it is assumed that
teams).
people are capable of self-direction and self-control, that they will be
(4) Generous pay for performance.
committed to organizational objectives if they are rewarded for doing
(5) Lots of training.
so, and the typical employee will seek responsibility and has
(6) Less emphasis on status (to build a "we" feeling).
imagination, ingenuity and creativity. McGregor believed managers
(7) Trust building (through the sharing of critical information).
could accomplish more through others by viewing them as self-
energized, committed, responsible, and creative beings.

AACSB: Analytic
Blooms: Remember
Feedback: Refer: Table 1-1

AACSB: Analytic
Topic: Introduction
Blooms: Remember
97. Mention the four common TQM principles. 98. What is the difference between e-commerce and e-business? Describe
(p. 12) (p. 12)
the E-business implications for organizational behavior.
The four common TQM principles are:
E-commerce refers to the buying and selling of goods and services

(1) Do it right the first time to eliminate costly rework and product
over the Internet. E-commerce has evolved into e-business, which is
recalls.
much broader in scope and refers to the use of the Internet to
(2) Listen to and learn from customers and employees.
facilitate every aspect of running a business, including the
(3) Make continuous improvement an everyday matter.
management of virtual teams. E-business can radically alter any
(4) Build teamwork, trust, and mutual respect.
activity that depends significantly on the flow of information. This
might include everything from customer needs and product design to

AACSB: Analytic
prices, schedules, finances, employee performance data, and
Blooms: Remember
Learning Objective: 01-02 Identify the four principles of total quality management (TQM). corporate strategy. Managers and employees have access to greater
quantities of information because communication crosses traditional
organizational boundaries.
AACSB: Analytic
Blooms: Remember
99. Define human capital. Describe the qualities and characteristics of 100. Compare and contrast the characteristics of past managers and 21st
(p. 15) (p. 19)
individual human capital. century managers.
Human capital is the productive potential of an individual's knowledge Past managers saw themselves as order-givers who relied on formal
and actions. Characteristics of human capital include individual authority as a source of influence. Communication patterns were
intelligence, aspirations, technical and social skills, self-esteem, typically vertical in nature and information was restricted. Employees
initiative, adaptability, readiness to learn, creativity, enthusiasm, were often viewed as a source of problems and competitive
motivation and commitment, persistence, ethical standards, honesty interpersonal relationships. 21st century managers see themselves as
and emotional maturity. facilitators and coaches. They rely on technical and interpersonal
knowledge as a power base. Communication flows in multiple
AACSB: Analytic
directions and information is shared. Employees are viewed as a
Blooms: Remember
valued resource and partners in cooperative interpersonal

relationships.
Feedback: Refer: Table 1-3
AACSB: Analytic
Blooms: Remember

101. Identify the seven general ethical principles and briefly describe each.
(p. 24)
102. Mention the actions for improving on-the-job ethics to improve the
(p. 24-
The seven general ethical principles include dignity of human life, organization's ethical climate.
26)
autonomy, honesty, loyalty, fairness, humaneness, and the common
good. Dignity of human life means that humans have a right to live
and to be treated with respect. Autonomy means that all persons are Actions for improving on-the-job ethics include:
intrinsically valuable and thus have rights to self-determination and

(1) Behave ethically yourself.
equal human liberty. Honesty means that the reality of the situation
(2) Screen potential employees.
should be told to those who have a right to know it. One should speak
(3) Develop a meaningful code of ethics.
and act so as to reflect the reality of the situation. Loyalty means that
(4) Provide ethics training.
promises, contracts, and commitments should be honored. Fairness
(5) Reinforce ethical behavior.
means that one has a right to be treated fairly, impartially, and
(6) Create positions, units, and other structural mechanisms to deal
equitably, and has the obligation to treat others fairly and justly.
with ethics.
Humaneness means that our actions ought to do good to ourselves
(7) Create a climate in which whistle-blowing becomes unnecessary.
and others and we should avoid doing evil. The common good means
that actions should benefit the welfare of the largest number of people
AACSB: Analytic
while trying to protect the rights of individuals.
Blooms: Remember
Feedback: Refer: Table 1-4 organization's ethical climate.
AACSB: Analytic
Blooms: Remember
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103. Mention the four criteria for codes of ethics to have a positive impact.
(p. 25)
Codes of ethics can have a positive impact if they satisfy these four
criteria:
(1) They are distributed to every employee.
(2) They are firmly supported by top management.
(3) They refer to specific practices and ethical dilemmas likely to be
encountered by target employees (e.g., salespersons paying kickbacks,
purchasing agents receiving payoffs, laboratory scientists doctoring
data, or accountants "cooking the books").
(4) They are evenly enforced with rewards for compliance and strict
penalties for noncompliance.
AACSB: Analytic
Blooms: Remember
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What are the seven general ethical principles?

What are the seven general ethical principles?

How can an organization improve its ethical climate?

How can an organization improve its ethical climate?

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Power can be provided to employees via decentralization and self-

True / False Questions

(p. 4) Level of Difficulty: 2 Medium

TRUE 3. Providing training for employees leads to lower employee turnover.

Research evidence from companies in both the United States and

lower employee turnover.

Topic: Welcome to the World of OB

managing people at work.

Y assumptions about employees. Blooms: Remember

Topic: Introduction Y assumptions about employees.

Level of Difficulty: 1 Easy

Topic: Organizational Behavior: An Interdisciplinary Field

Organizations are a social invention helping us to achieve things

Level of Difficulty: 1 Easy

8. OB knowledge is derived exclusively from organization theory.

management, sociology, organization theory, social psychology,

statistics, anthropology, general systems theory, economics, AACSB: Analytic

Level of Difficulty: 1 Easy

Y assumptions about employees.

Level of Difficulty: 1 Easy

Topic: Organizational Behavior: An Interdisciplinary Field

attention to the "human" factor.

Topic: The Human Relations Movement

test room experiments. Industrial Civilization.

experiments. AACSB: Analytic

AACSB: Analytic Y assumptions about employees.

Blooms: Remember Level of Difficulty: 1 Easy

Y assumptions about employees.

Level of Difficulty: 1 Easy

Mary Parker Follett urged managers to motivate job performance

instead of merely demanding it, a "pull" rather than "push" strategy.

work. It assumed that most people actually prefer to be directed. They

Refer: Table 1-1

viewing them as self-energized, committed, responsible, and creative

Y assumptions about employees.

Y assumptions about employees.

Level of Difficulty: 2 Medium

Topic: The Human Relations Movement

Topic: The Human Relations Movement

security are the key dimensions of McGregor's Theory X.

According to McGregor's Theory X, employees must be coerced and

Level of Difficulty: 2 Medium

Topic: The Human Relations Movement AACSB: Analytic

Topic: The Human Relations Movement

According to McGregor's Theory Y, the typical employee can learn to

accept and seek responsibility.

Refer: Table 1-1

Greek letter, which in statistics is used to measure how far something

Level of Difficulty: 2 Medium

Topic: The Quality Movement

Topic: The Quality Movement

Total quality management is in the corporate DNA today thanks in

large part to the pioneering work of W Edwards Deming.

Level of Difficulty: 2 Medium

Topic: The Quality Movement