Exercise 1 - Chapter 1

WKU6033-ORGANIZATION BEHAVIOR
SEM 1 2023/2024
Exercise 1 - Chapter 1: OVERVIEW OF ORGANIZATIONAL BEHAVIOR
1. Organizational behavior is defined as the study of three interrelated areas, one of which
is the __________.
a. profitability and capital value of the business
b. maximization of an organization's human resources
c. management of interpersonal conflict in the workplace
d. interface between individuals and the organization
2. Which of the following factors is NOT a typical positive result when managers make a
practice of listening to employees, recognizing their work, building trust, and behaving
ethically?
a. savings through staff layoffs
b. improved financial performance
c. reduced absenteeism and turnover
d. stronger customer loyalty
3. Which of the following is true about global mindset?

a. It is an inherent personality trait.
b. It is the ability to effectively communicate with, understand, and motivate
individuals and groups.
c. It combines cultural intelligence and a multinational business orientation.
d. It is dependent upon the number of languages a person speaks.
4. Within Odyssey Adventures, Ramon is known as an expert in the hotels, restaurants,

and amenities at various luxury destinations. Because he is so enthusiastic and
knowledgeable, he is highly effective at encouraging clients to extend their vacation plans
with add-on packages and upgraded experiences. Which management skill does this
ability best demonstrate?
a. conceptual skills
b. interpersonal skills
c. diagnostic skills
d. technical skills
5. Which of the following scenarios most clearly exemplifies the successful use of a
manager's diagnostic skills in dealing with people?
a. A program on Sally's computer stops working. She could ask Gary, a member
of the tech support team, to fix it, but Sally is good with computers and fixes the
problem herself in less time than it would have taken Gary to come over and
fix it.
b. Sally must convince Gary and Roberta to work overtime. Since Gary's top
priority is his own self-interest, she emphasizes how much money he'll make
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SEM 1 2023/2024
by working overtime. Since Roberta's top priority is her well-being, she

emphasizes how much it will mean to her to work overtime.
c. Sally suspects that Gary is underperforming because he is not getting enough
sleep, not because he is incapable. She lets him work from 10 to 6 instead of
9 to 5, and his performance improves.
d. Sally has to decide whether to disband Gary and Roberta's division and form a
new division to develop an innovative new product line.
6. Developing new ways to hire and train employees and paying them higher wages can
result in which of the following benefits?
a. It can result in a reduced emphasis on global mindset.
b. It can result in fewer employees being needed.
c. It can result in better communication with management.
d. It can result in better retention of employees.
7. Which of the following is the primary competitive advantage Costco has over Sam's
Club, its closest competitor?
a. excellent customer experience
b. high-quality products at a low price
c. lower operating expenses
d. lower employee salaries
8. Your region has many supermarket bakeries, but there aren't any niche cafés offering
superior coffee and home-baked goods using local, organic ingredients. You decide to
open such a business. Based on these factors, which types of strategic behaviors would
help assure that your small enterprise specializes and thrives?
a. offer the best quality product at a low price
b. hire employees with strong business experience
c. deliver unique products and services
d. explore opportunities for mergers and acquisitions
9. Michael Porter says that companies gain a competitive advantage by giving customers
__________.
a. perfect customer service
b. a feeling of brand loyalty
c. superior value for their money
d. the product with the highest possible quality
10. Why is it important for managers to understand the Hawthorne effect?

a. It proved that workers perform better under bright light than under dim light.
b. It proved a direct correlation between employee satisfaction and performance.
c. It explained the effects of dehumanizing workplace environments.
d. It showed that people improve their performance when they know they're being
observed.
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SEM 1 2023/2024
11. Which of the following factors did W. Edwards Deming believe should be removed
from the workplace?
a. diversity
b. fear
c. hierarchy
d. competition
12. Under the systems perspective, which of the following is NOT an output that managers
generate from the four inputs of materials, human resources, financial resources, and
information?
a. environmental stewardship
b. profits or losses
c. employee behaviors
d. products or services
13. Ashanti is the founder of a small app development firm. She devised a method for
meeting deadlines that has proven very effective for her organization. She believes that
her method will also work for any other organization. What type of perspective does this
belief reflect?
a. universal
b. scientific
c. situational
d. interactional
14. Shell Oil is part of a system that uses materials, human resources, financial resources,
and information to affect its environment. Which of the following is NOT one of Shell Oil's
outputs?
a. value to shareholders
b. employee contributions to communities
c. taxes paid to the government
d. money received from oil and gas sales
15. Written predictions specifying expected relationships between certain variables are
known as __________.
a. theories
b. hypotheses
c. strategies
d. correlations
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SEM 1 2023/2024
16. The Sensor Dynamics Corporation did a scientific study on the impact of absenteeism
on increased costs. It determined that there's a statistical correlation of 0.7. What does
that indicate for the organization?
a. Absenteeism significantly increases costs.
b. Costs are reduced due to absenteeism's labor savings.
c. Absenteeism increases costs, but only to a minor degree.
d. There is no relationship between absenteeism and costs.
17. Which of the following employee behaviors are associated with effective
management?
a. qualifying for a year-end bonus
b. not asking for raises
c. working only on job-description tasks
d. identification with the company
18. This course focuses on how organizations and the behaviors of the people who
comprise them all function within the context of an environment. What is the primary focus
of parts 2, 3, and 4 of the text, respectively?
a. power, politics, conflict
b. organizational design, structure, culture
c. organizations, behaviors, environment
d. individuals, groups and teams, leadership
19. The _____ perspective is becoming increasingly important throughout the entire field
of organizational behavior (OB).
a. human relations
b. interactional
c. situational
d. universal
20. Katy is a baker. She arrives at her gourmet cupcake shop early every morning and
bakes batches upon batches of cupcakes. Katy's job relies primarily upon which of the
following types of skills?
a. Diagnostic
b. Conceptual
c. Interpersonal
d. Technical

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WKU6033-ORGANIZATION BEHAVIOR

Exercise 1 - Chapter 1: OVERVIEW OF ORGANIZATIONAL BEHAVIOR

3. Which of the following is true about global mindset?

4. Within Odyssey Adventures, Ramon is known as an expert in the hotels, restaurants,

by working overtime. Since Roberta's top priority is her well-being, she

10. Why is it important for managers to understand the Hawthorne effect?

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