SMB103 WB

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kbook
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 aid the participants, we have developed four unique learning tools as below:
 Bullet Notes : Helps in introducing the important concepts in each unit
of curriculum, equip the student during preparation of examinations and
placement interviews
 Case Studies : Illustrate the concepts through real life experiences
 Workbook : Helps absorption of learning through questions based on real life 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.
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
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kits trigger experiential learning
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 Availability of time is a challenge.
 Career success increasingly depends on continuous learning
and success
What makes it relevant?

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 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.
How is it useful?
 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 connected to continuous assessment process of the academic program.
Where does this lead to?
 Helps stay motivated and connected.
 Easier to move ahead in the learning process.
 Will facilitate the student to complete the program earlier than
otherwise.
When is it useful?
 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.
Organizational
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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.
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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
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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
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the knowledge that he will use to solve. Practitioners can connect better thereby improving the
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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:

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1. 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.
2. Application based approach which enhances absorption and retention significantly.
3. Exposure to the current incidences and situations in relation to important concepts of

the subject.
The Workbook format is also used for Assessment.
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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
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Experiments, interview Phase, Bank Wiring observation room experiments; Theory X; Theory Y;
Theory Z
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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 -
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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
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Stability, Openness to experience; Self-Concept: Self-Esteem and Self-Efficacy, Person-Situation
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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
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- 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, Relatedness Needs, 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

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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
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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

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Definition of Organizational Structure - Key Elements in Designing an Organizational Structure: Work
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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
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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,
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Double-loop learning; Managing learning-Commitment to change and innovation, Change the
Organization‟s Structure, Change the Organizational Culture - Work Stress and Stress Management: The
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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,
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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-Consultant Relationship: Entry and contracting, Defining the client
system, Mutual trust between client and consultant, Nature of client‟s expertise, Proper diagnosis and use
of appropriate interventions, Determining the depth of the Intervention, Risk of being influenced by the
Client‟s organization culture, 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, Team interventions – The formal group diagnostic methods, The
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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 Changes in OD Processes and Practices: OD will 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
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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
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Unit 15: Understanding Work Teams 41
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Unit 16: Informal Organizations 43
Unit 17: Foundations of Organizational Structure 45
Unit 18: Decision Making 47
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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
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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
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MULTIPLE CHOICE QUESTIONS
UNIT 1: UNDERSTANDING ORGANIZATIONAL BEHAVIOR
1. 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
2. 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 them and 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
3. 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
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executives who are in close contact with customers. Which type of informational role is Mr. Kamal
performing?
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a. Disseminator b. Spokesperson
c. Disturbance handler d. Entrepreneur
d. Monitor
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4. 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
5. 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
6. The duo who observed that a stimulus elicits a certain response, which results in learning are:
a. BF Skinner and Ivan Pavlov b. Ivan Pavlov and John B Watson
c. John B Watson and BF Skinner d. Edward Tolman and Ivan Pavlov
e. John B Watson and Edward Tolman
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Organizational Behavior: Workbook
7. 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 from around
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
8. 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 team dictated 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 counsel employees d. To control employees
e. To discourage employees
9. 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?
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a. Negatively reinforcing
b. Providing insights to modify employees behavior
c. Restructure the organizational culture
d. Framing policies for ethical behavior
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e. Providing counseling sessions

10. 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 Custodial Model d. The Autocratic Model
e. The System Model
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Multiple Choice – Questions
UNIT 2: FOUNDATIONS OF HUMAN RELATIONS AND

ORGANIZATIONAL BEHAVIOR
11. 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
12. 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
13. 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. Management behavior d. Supervisor behavior
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e. Group behavior
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14. 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:
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a. Sociology b. Industrial Psychology

c. Anthropology d. Political Science
f. Economics
15. Knowledge and Skill result in
a. Attitude b. Situation
c. Motivation d. Ability
e. Potential performance
16. 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
17. The working experiences in a group influenced the __________demands of the workers.
a. Security b. Commercial
c. Financial d. Social
e. Economical
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18. 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
19. A large corporation company that adopts theory Z practice is identified through the following
feature:
a. Long-term employment b. Coercion by punishment
c. Financial rewards d. Employees seeking responsibility
e. Security measures
20. Who made significant contributions to study the importance of people at the workplace?
a. Frederick W. Taylor b. Elton Mayo and F.J Roethlisberger
c. S.G. Huneryager d. Fred Luthans
e. Keith Devis
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UNIT 3: UNDERSTANDING PEOPLE AND ORGANIZATIONS
21. ____________ helps us to understand organizational behavior.

a. Learning b. Coaching
c. Mentoring d. Leading
e. Guiding
22. 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. Technical limitations b. Software limitations
c. Human limitations d. Hardware limitations
e. Attitudinal limitations
23. 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 team members 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
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24. ___________ believe that an individual‟s behavior could be understood by observing the way an
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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
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e. Scientists
25. 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. Incidental learning b. Situated learning
c. Action learning d. Associative learning
e. Instrumental learning
26. 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
27. 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
28. 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
29. 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
30. 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
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d. Economic
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e. Political
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UNIT 4: DIVERSITY AND ETHICS
31. 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
32. 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
33. Both Ms. Sheetal and Mr. Manish have been working as Asst. Managers in a FMCG company 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
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d. Education
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e. Geography
34. The aim of creating a family-friendly workplace is to improve employee
a. Morale b. Productivity
c. Reduce absenteeism d. All the three
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e. None of the above

35. In today‟s world, fathers are also contributing in bringing up children. They are making for certain
privileges and support from companies 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
36. 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 of diversity management.
a. Balancing their family life b. Flexible work hours
c. Creation of family-friendly workplace d. Diversity training
e. Mentoring program
37. Individual approach to manage diversity in an organization is through_____________.
a. Testing b. Learning & empathy
c. Training d. Provision of alternative work
e. System thinking
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38. 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
39. 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 work week
c. Job sharing d. Job rotation
e. Telecommuting
40. The ___________ effect prevents women from reaching top level management.
a. Metal ceiling b. Copper ceiling
c. Glass ceiling d. Wooden ceiling
e. Bronze ceiling
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UNIT 5: MANAGING COMMUNICATION
41. 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
42. 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
43. 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
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c. Theoretical Explanation d. Feedback
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e. All the above
44. Feedback occurs when the _____________responds to the message received by him.
a. Sender b. Message
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c. Receiver d. Decoder
e. Encoder
45. 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
46. 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
47. 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
e. Boundary spanners
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48. 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
49. 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. Management information system MIS b. Cross- communication
c. Electronic Cottage d. Electronic conferencing
e. Kinesics
50. A computer-based communication system by which the sender sends his messages over the
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
e. Electronic mail
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UNIT 6: INTERNATIONAL ORGANIZATIONAL BEHAVIOR
51. 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
52. Multinational companies are outsourcing their operations to India due to the availability of highly
skilled personnel and low cost labour. The issues under discussion relate to_______________.
a. Economic conditions b. Social conditions
c. Political conditions d. Physical conditions
e. All the above
53. 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
e. Uncertainty avoidance
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54. A golf ball manufacturing company packed golf balls in packs of four for convenient purchase in
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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_____________________.
a. People‟s relationship with their environment b. The time dimension
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c. Public and private space d. People‟s perceptions

e. Peoples motivation
55. 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?
a. People‟s orientation to time is same in different countries
b. People‟s orientation to time is same in almost all countries
c. People‟s orientation to time is different to different countries
d. Time has no meaning
e. All of the above
56. In the US culture, it is considered as intrusive and rude for a stranger to 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
57. 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
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a. Strangers b. Trainers
c. Technical experts d. Expatriates
e. Localites
58. 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 find a phonetic equivalent “Kokoukole”, translating into “Happiness in the Mouth”.
The factor that gave culture shock is_____________________.
a. Difference in managerial philosophies
b. The difference in attitude toward work and productivity
c. Difference in currency system
d. Changes in personal values of society, religion, etc
e. Changes in work practices
59. 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
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60. What considerations make expatriates to understand the laws and values of foreign countries to
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work in accordance with acceptable behavior?
a. Social b. Ethical
c. Cultural d. Political
e. Economical
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UNIT 7: PERSONALITY AND ATTITUDES
61. 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
62. 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
63. Jeffrey, an executive at a leading consumer goods 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
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64. 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
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c. Environment d. Risk-taking
e. All of the above
65. 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
66. 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 staff wasted their time in expecting what would happen, Mr. Sirish and some of his friends
continued to work normally and performed consistently as usual. Mr. Sirish‟s personality reflects:
a. A Personality b. C personality
c. B personality d. X personality
e. Y personality
67. Name the process where people‟s personality is influenced by their interaction with other
individuals, groups, and society at large.
a. Organizational process b. Individual process
c. Physiological process d. Economical process
e. Socialization process
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68. People with „Autism‟ spectrum have neurologically different behavior and possess some special
abilities to perform certain information technology tasks excellently and habituated to work in
solitary. Observing these characteristics, SAP AG, multinational software giant decided to 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
69. 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
70. The Cognitive Dissonance Theory was first proposed by
a. John P. Meyer b. L.M. Kendall
c. Leon Festinger d. Natalie J. Allen
e. 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
72. 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 status motive b. The affiliation motive
c. The security motive d. The achievement motive
e. The power motive
73. 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
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d. Herzberg‟s two-factor theory
e. Maslow‟s hierarchy of needs
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74. Which of the following variables belong to Porter-Lawler Model.
a. Motivators and Hygiene factors
b. Existence, Relatedness, and Growth
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c. Effort, Performance, Rewards and Satisfaction

d. Valence, Instrumentality, and Expectancy
e. Physiological, Safety, and Self-actualization needs
75. 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
76. 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
e. All of the above
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77. Attribution theory deals with

a. Behavioral process b. Conceptual process
c. Cognitive process d. Logical process
e. Technical process
78. 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 of control b. Locus of control
c. Internal locus of control d. High locus of control
e. Low locus of control
79. 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 Agency theory b. Attribution theory
c. Expectancy theory d. Control theory
e. Equity theory
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80. _____________ is strength of a person‟s preference for receiving a reward.
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a. Expectancy b. Valence
c. Instrumentality d. Effort
e. Satisfaction
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UNIT 9: PERCEPTION
81. 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
82. 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
83. 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
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84. Factors influencing perception are: the situation, the target and______________________.
a. Perceiver b. Learner
c. Motivator d. Participator
e. Leader
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85. 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
86. When the task of promoting an employee was given to Ms. Neelam in 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
87. Name the process where people try to manage or control the perceptions formed by others about
themselves.
a. Behavior management b. Attitude management
c. Impression management d. Control management
e. Situation management
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88. 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
89. 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
90. Different contexts convey different meanings to people. This is the principle of
a. Perceptual grouping b. Perceptual constancy
c. Perceptual defense d. Perceptual context
e. Perceptual similarity
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UNIT 10: LEARNING
91. 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
92. 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
93. 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. Classical conditioning b. Operant conditioning
c. Behavior learning d. Cognitive learning
e. Social learning
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94. 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
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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
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e. Negative reinforcement
95. 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
e. Both (a) and (c)
96. The Law of Effect was given by_______________
a. Ivon Pavlov b. John B. Watson
c. Edward Tolman d. BF Skinner
e. Thorndike
97. 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
98. Social learning theories explained learning through modeling processes and ___________.
a. Self-esteem b. Self-efficacy
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c. Self-confidence d. Self-reliance
e. Self-perceptions
99. The learning of the association between the cue and expectation is referred to as _____________.
a. S-S learning b. S-R connection
c. R-S connection d. cognitive theory
e. Learning Theory
100. 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
e. Transfer
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UNIT 11: LEADERSHIP
101. Name the category of people who have a vision, set goals to realize the vision, 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
102. 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
103. 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 team that 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. Conceptual skill
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d. Both a& b
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e. 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
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c. Great Women d. Great study

e. Great person
105.Neelesh, a good performer was found dull at a meeting conducted by the Accounts manager. The
manager inquired and found that Neelesh‟s father was hospitalized and 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
e. 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-oriented dimension d. Employee-oriented dimension
d. Welfare-oriented dimension
107. Which theory of leadership is related to „development-oriented behavior‟?
a. The Ohio State Studies b. Scandinavian Studies
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c. University of Michigan Studies d. All the above

e. 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?
a. Autocratic I (A-I) b. Autocratic II (A-II)
c. Consultive I (C-I) d. Consultive II (C-II)
e. Group II (G-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
e. 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
e. 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
112. Kamal as a manager always calls for a meeting in times of emergency to collect ideas and opinions
from his subordinates but never implements them. These managers are called
a. Autocratic managers b. Altrocentric managers
c. Ethnocentric managers d. Efficient managers
e. All the above
113. 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
e. All the above
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114. The indirect advantages of employee participation include
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a. Commitment to achieving organizational goals
b. Lower stress levels c. Less resistance to change
d. Reduce attrition rate e. All the above
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115. 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 problem together and identify the
elements of improvement, what are the other alternative methods of quality improvement?
a. Total Quality Management (TQM) b. Middle-Management Committees
c. Self-managing Teams d. Quality Circles
e. All the above
116. 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
117. Industrial democracy ensures that all employees have a say in the major decisions of organizations
by representing at the ____________levels of the organizations.
a. Lower b. Higher
c. Middle d. Top
e. At all levels
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118. 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__________________.
a. Lack of proper planning and implementation
b. Technologies used at work
c. Specialized work roles of employees
d. The complexity of the organizational structure
e. Lack of knowledge needed
119. 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
120. The participation of employees faces problem when they are more involved in ________ aspects of
participation.
a. Cultural b. Structural
c. Procedural d. Social
e. Political
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UNIT 13: CONFLICT, NEGOTIATION & INTER GROUP BEHAVIOR
121. Conflicts can be classified into __________________

a. Intrapersonal conflict b. Interpersonal conflict
c. Inter group conflict d. All the above
e. Intrapreneurial conflict
122. 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. Intrapersonal conflict b. Interpersonal conflict
c. Organizational conflict d. Opinion conflict
e. All of the above
123. 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
e. Internal conflict
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124. Name the first stage of conflict process.
a. Intentions b. Behavior
c. Cognition and Personalization d. Potential opposition or incompatibility
e. Outcomes
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125. 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
126. You and a colleague are assigned to complete an important part of a software program that 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
e. 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
e. All of the above
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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
129. 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
e. Arbitrator
130. Name the factors that affect the inter group relations.
a. Interdependence b. Task uncertainty
c. Orientation of time and goal d. All the above
e. Intra dependence
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UNIT 14: FOUNDATIONS OF GROUP BEHAVIOR
131. The ______________________ says group 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
132. 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
e. Reference group
133.California based Baskin-Robbins, world‟s largest chain of ice cream specialty shops 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
e. Coalition
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134.Name the stage which is characterized by the development of close relationships and cohesiveness
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within the group.
a. Forming b. Storming
c. Norming d. Performing
e. Adjourning
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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
e. 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
e. Formal group
137. Example for reference group is___________________
a. Alcoholic b. Illiterate
c. Common man d. Celebrities
e. Drug addict
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138. 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
e. 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 him to change his behavior. Name
the role dimension_________________.
a. Role Perception b. Role Expectations
c. Role Identity d. Role conflict
e. Role negotiation
140. If the tasks are __________________, there will be interactions between members of a group.
a. Dependent b. Non dependent
c. Similar d. Non similar
e. Interdependent
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UNIT 15: UNDERSTANDING WORK TEAMS
141.Work teams are increasingly becoming popular in ________________________.

a. Popular organizations b. Modern organizations
c. Unpopular organizations d. Sick organizations
e. 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. Organizational enhancement d. Improved organizational performance
e. All the above
143. 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. Organizational enhancement b. Reduced costs
c. Employee benefits
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d. All the above
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144. Teams help organizations adapt to changes quickly, thereby enabling them to ________competition.
a. Create b. Reduce
c. Withstand d. Control
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e. All the above

145. 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
146. 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-functional teams d. All the above
e. Parallel teams
147. Work teams suffer from which of the following drawbacks?
a. Cultural problems b. Personal problems
c. Departmental problems d. Attitudinal problems
e. Individual and organizational problems
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148. 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
149. 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 super ordinate goals d. Team rewards
e. All the above
150. Advantage of diversity in teams is
a. Ambiguity b. Confusion
c. Multiple interpretations d. Complexity
e. Mis-communication
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UNIT 16: INFORMAL ORGANIZATIONS
151. Name the person who defined informal organization as “Patterns of behavior and influence
stemming from human interaction within a formal structure”.
a. Chester Barnard b. JL Gray and FA
c. Elton Mayo d. McGregor
e. David McClleland
152. 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 of influence d. Control mechanisms
e. Communication
153. In the above case, Amman unintentionally accepts to represent workers to satisfy them. It reflects
the factor of
a. Charting of member relationships b. Control mechanisms
c. Basis of influence d. Position terminology
e. Goals of the organization
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154. There may be more than one leader in an
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a. Formal organization b. Large organization
c. Small organization d. Informal organization
e. Multinational companies
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155. 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.
a. Expression or outlet for frustration and anxieties
b. Decrease in the workload of managers
c. Increase in satisfaction and feeling of stability in work groups
d. Development of an effective organizational system
e Developing a feeling of belonging with the organization
156. 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 of employees d. Use of penalties and sanctions
e. Preventing organizational change
157. Informal communications in an organization is termed as_____________________
a. Grape vine b. Upward communication
c. Lateral communication d. Downward communication
e. All the above
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158. 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__________________-
a. Involvement of friends and associates
b. Nature of job held by an individual
c. Personality traits of the individual
d. Periods of excitement and insecurity brought about by change
e. 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
160. 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
e. Premeditated rumors
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UNIT 17: FOUNDATIONS OF ORGANIZATIONAL STRUCTURE
161. _____________ refers to the extent to which the jobs in an organization are divided into sub-tasks.
a. Work Study b. Work Measurement
c. Work Specialization d. Work Design
e. Work Redesign
162. 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
163. 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
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164. In ________organizations, power & authority are vested with the top management in the
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organizational hierarchy.
a. Centralized b. Decentralized
c. Departmentalized d. Divisional
e. Documentation
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165. 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. Functional Decentralization b. Geographical Decentralization
c. Analytical Decentralization d. Product Decentralization
e. Process Decentralization
166. Characteristics of bureaucracy include____________________
a. Work specialization b. Division of labor
c. Abstract rules d. Impersonality of managers
e. All the above
167. 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
e. Flat Structure
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168. 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
169. 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. Work specialization b. Departmentalization
c. Chain of command d. Span of control
e. Unity of command
170. Name the concept that defines how job tasks are formally divided, grouped, and coordinated.
a. Organizational structure b. Organizational design
c. Organizational culture d. Organizational development
e. Organizational policy
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UNIT 18: DECISION MAKING
171. Name the factors that influence the decision making of managers in an organization.
a. External environment
b. Past experience
c. The cognition levels of managers
d. Human relationships within the organization
e. All the above
172. 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. Intellectual decision-making b. Irrational decision-making
c. Rational decision-making d. Productive decision-making
e. Unproductive decision-making
173. 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
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b. Non-programmed decisions
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c. Decision rationality d. Divergent thinking
e. Cognitive complexity
174. 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
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alternatives to guide him/her in decision-making.

a. Simon‟s bounded rationality model b. Judgmental heuristics and biases model
c. The economic rationality model d. The social model
e. All the above
175. 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. Behavioral decision-making
c. Social decision-making d. Political decision-making
e. Economic decision-making
176. 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
e. Behaviorally-oriented
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177. 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. Characteristics of the project b. Psychological determinants
c. Social forces d. Organizational determinants
e. All the above
178. 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
179. 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 team members 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
180. To overcome the problems of group polarization and group-thinking, what type of problem solving
techniques need to be used?
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a. Brainstorming b. Nominal group technique
c. The Delphi technique d. All the above
e. Cognitive technique
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UNIT 19: POWER AND POLITICS
181. 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. Max Weber b. Stephen P. Robbins
c. Jeffrey Pfeffer d. Grimes A.J.
e. Fernandes
182. 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
183. 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
e. Legitimate power
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184. The level of dependency depends upon
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a. Importance b. Scarcity
c. Non-substitutability d. All the above
e. Abundance
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185. 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
186. 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
187. 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
e. Personalization
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188. 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
189. 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
e. All the above
190. Individuals who report unethical practices by their employer to outsiders are called____________.
a. Whistle blowers b. Politicians
c. Representatives d. Insiders
e. Rumor mongers
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UNIT 20: ORGANIZATIONAL CULTURE
191. __________ 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. Organizational politics d. Organizational culture
e. Organizational chart
192. 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
e. Innovation and risk taking
193. 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. Attention to detail b. People orientation
c. Philosophy
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d. Organizational climate
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e. Rules
194. The new employees of the organizations can be helped through induction programs to adopt shared
valued and help in increasing the _________of culture among employees.
a. Intensity b. Sharedness
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c. Outcome d. All the above

e. Nature
195. 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. Weak culture d. Strong culture
e. Organizational culture
196. 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
e. Traditional culture
197. Name the important functions of culture in an organization:
a. To create a boundary defining role for employees
b. To act as a control mechanism
c. To develop a sense of identity
d. Both a & b e. Both a & c
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198. 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
199. 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. Material symbols d. Stories
e. Emblems
200. The important things to be considered while implementing the change process are:
a. Assess existing culture b. Introduce alternatives
c. Change must be top-down d. All the above
d. Number of changes that have taken place
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UNIT 21: ORGANIZATIONAL CHANGE
201. Change may be defined as the coping process of moving from the present state to the desired state
that individuals, groups, and organizations undertake in response to dynamic internal and external
factors such as
a. People b. Technology
c. Information processing and communication d. Competition
e. All the above
202. When Mahindra took over Satyam, subsequent to the fraudulent acts; it changed the name of the
organization, restructured the organization and all its operations. Name the type of change that was
introduced.
a. First-order change b. Second-order change
c. Third-order change d. Unidimensional change
e. Multi-dimensional change
203. In a marketing firm, the advertising practices were becoming obsolete and need to be changed. For
this it had to adopt new technologies and processes. It conducted several meetings across all levels
of employees involving them in coming up with new ideas. It also announced rewards to those who
came up with new ideas. Identify where exactly the firm is in change process?
a. Supporting change b. Managing the transition state
c. Generating motivation for change d. Evaluating the change
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e. Refreezing
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204. Organizational resistance can be in the form of
a. Structural inertia b. Limited focus of change
c. Group inertia d. All the above
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e. Group think
205. Nike introduced a new app called „Making‟ to measure the environmental impact of using different
materials and to eliminate the use of hazardous chemicals in the creation of its products for the first
time. It is expected that hundreds of key players in the materials ecosystem come together to
discover, incubate, and accelerate companies developing new materials to be used on a wide scale
to address global issues. What is the concept observed in the above case?
a. Innovation b. Power
c. Span of control d. Project
e. Change process
206.Manik, General Manager in an interior designer company took the help of a consultancy to introduce
new technologies into its processes. Consequently, the employees started spreading the rumor of
losing their jobs. Which individual factor of resistance does it reflect?
a. Habit b. Social factors
c. Economic d. Security
e. Fear of the unknown
207. _______________allay fears and anxieties among employees by counseling them and offer training
in new skills that change program might entail.
a. Change agents b. Sales agents
c. Business agents d. All the above
e. Supervisors
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208. Manager in a business firm never communicated their vision or encouraged innovation by
employees and was always strict towards his employees. Though the employees were very
interested in innovations and creativity they never focused on those areas. Name the factor that
hindered the innovation process in the case.
a. Organizational culture b. Management support
c. Structural variables d. HR policies
e. All of the above
209. Kapil is working as a senior software engineer in a multinational company. He has been assigned
the responsibilities of a new project with a deadline. Since then he is experiencing exhaustiveness at
work and finally shared his experience with one of his best colleagues. According to his colleague‟s
suggestion, he went on a tour with his family for one week and included walking and swimming in
his daily routine that helped him to relieve to some extent. Name the strategy adopted by Kapil.
a. Problem-focused strategies b. Emotion-focused strategies
c. Attitude-focused strategies d. Development oriented strategies
e. All of the above
210. Name the strategies to cope with stress:
a. Development focused strategies b. Attitude focused strategies
c. Vision-focused strategies d. Target based strategies
e. Problem and Emotion focused Strategies
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UNIT 22: FUNDAMENTALS OF ORGANIZATIONAL DEVELOPMENT
211. Thomas G. Cummings and Christopher G. Worley defined OD as____________

a. A system-wide application of behavioral science knowledge to planned development
b. A long-term effort, led and supported by top management
c. A system-wide application of scientific knowledge
d. A short-term effort, led and supported by top management
e. A long-term effort, led and supported by middle management
212. When labor relations and quality were at an all-time low, and absenteeism was rampant at a Motor
Corporation, employees were formed into groups consisting of 10 to 16 members. The groups were
headed by a trainer who facilitates the group members to interact with each other and analyze the
behavior of others. This has improved the attitude of employees and employees became sensitive to
feelings and reactions of others. Name the OD approach exercised in the case
a. Survey feedback
b. T-groups
c. Action research
d. Tavistock Socio-technical and Socio-clinical approach
e. Sensitivity Training
213. In an organization, interlocking chain of conferences were conducted in task groups with superiors
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and their immediate subordinates to discuss the employee problems together. The major findings of
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these discussions were reported to the top management and then transmitted throughout the
organization. What is the approach used by this management called?
a. Survey feedback b. Laboratory training
c. Action research d. Socio-clinical approach
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e. Sensitivity Training
214. Please arrange the order of action research model steps proposed by French and Bell
i) Collection of data from the client ii) Making a preliminary diagnosis
iii) Exploration of data by the client iv) Providing feedback about the data to the client
a. i, ii, iii& iv b. i, iii, ii& iv
b. ii ,iii, iv& i d. ii, i, iv & iii
e. iii, iv ,ii& i
215. Three strategies for organizational change given by R. Chin and K. Benne are based on
a. OD as a normative – re-educative strategy of change
b. OD as an ongoing, interactive process
c. OD views organization from a systems perspective
d. OD is experience –based
e. OD is a form of applied behavioral science
216. A manufacturing company observed huge decrease in the productivity and performance of the
employees. Then it tried to diagnose the problem through several meetings and finally ended up
appointing an OD consultant. The OD consultant after analyzing and collecting data came out with
some solutions. He implemented the best solution selected by the management and tested the
effectiveness. These steps are relevant to
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a. History of OD b. Nature of OD
c. Foundations of OD d. OD process
e. OD interventions
217. When an external OD consultant works for an organization, and manages change process and
checks the implementation, the relationship that is built between the organization and the OD
consultant is termed as:
a. Consumer-consultant relationship b. Client-consumer relationship
c. Contractor-consultant relationship d. Client-consultant relationship
e. All of the above
218. A software company appointed an external OD consultant to provide solution for its employees
stress. The OD consultant diagnosed the organization across all levels and offered a list of
alternative solutions to be chosen by organization. Name the stage at which the client-consultant
relationship is there right now.
a. Entry and contracting b. Defining the client system
c. Nature of client‟s expertise d. Determining the depth of intervention
e. Consultant team as a microcosm
219. ABZ, a manufacturing company intervened and found that an OD consultant was rude towards the
employees and insisted them to share some confidential information. Find the relevancy of problem
in the case under client-consultant relationship process.
a. Dependency and termination of contract
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b. Ethical dilemmas in OD consulting
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c. Consult team as a microcosm d. Implications of OD for the client
e. Determining the depth of the intervention
220. A team comprising the consultant and the key client working together to take action and mold
employee behavior so that team is a _____________for the organization for the OD process.
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a. Macrocosm b. Majorcosm
c. Minorcosm d. Microcosm
e. All the above
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UNIT 23: ORGANIZATIONAL DEVELOPMENT INTERVENTIONS
221. OD practitioners attach importance to the values of _______________.

a. Collaboration b. Confrontation
c. Participation d. All the above
e. Self-centeredness
222. An international school desired to implement extra learning hours every day wanted to collect the
opinion of parents. It gave some questionnaires to its students to collect the opinions from their
parents. From the collected data, it has decided to incorporate extra study hour for an hour every
day after the school. Name the kind of OD intervention.
a. Sensitivity training b. Survey feedback
c. Process consultation intervention d. All the above
e. Empowerment
223. Ramaiah Institute of Management Studies (RIMS) identified that the quality of their students‟
education was relatively low compared to popular business schools. RIMS then appointed Dr.
Krishnamurthy as a Chief Academics Advisor to audit, analyze and improve the change process for
quality improvement. What is this type of intervention called?
a. Inter group team-building interventions b. Third-party peacemaking interventions
c. Structural interventions d. Team interventions
e. All the above
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224. Which is the oldest and most widely used intervention for understanding problematic situations and
planning corrective actions?
a. The formal group diagnostic methods b. Gestalt approach to team building
c. Role analysis technique d. Role negotiation technique
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e. Force-field analysis
225. In Hero Honda Motors, a voluntary team called Sunrise investigation was formed to solve the
problem of unsuccessful indicators that endangered the bike riders and brought down the reputation.
The investigation team found that the indicators failed due to gap in the contact points and made
changes in the angle of the piece concerned and used foolproof tools. It helped them in increasing
customer satisfaction and improving the reputation of the company. Name the structural
intervention used in the case.
a. Parallel learning structures b. Self-managed teams
c. Management by objectives (MBO) d. Quality circles
e. Total quality management (TQM)
226. Walt Disney is recognized for their focus on training and team building, as well as the happiness of
their employees. Google promote flexible schedules and personal and professional balances, where
employees learn how to manage their time, multitask and collaborate. Name the structural
intervention discussed.
a. Six Sigma b. Quality of work life (QWL)
c. Quality Circles d. Inter group team-building intervention
e. Third-party peacemaking interventions
227. The Role Analysis Technique suggested __steps for implementation:
a. Three b. Two
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c. Four d. Five
e. Six
228. A vice president in a company called his product manager to set an objective for the product
management process. They both discussed and finally decided to establish leadership in an
emerging market segment. Name the management technique used here.
a. Quality circles b. Total quality management
c. Management by objective d. Six sigma
e. Self-managed teams
229. In an organization there had a problem between the employer and the employee on the salary issue
at the time of appraisals. Employee demand was not considered. Then the issue was solved with the
help of a consultant who interfered in to the matter and convinced both the parties on the issue.
Explain the technique of intervention used in the case.
a. Role analysis technique b. Force-field analysis
c. Gestalt approach to team building d. The formal group team-building meeting
e. Role negotiation technique
230. To implement Six sigma strategy, employees are trained as ________________.
a. Champions b. Master Black Belts
c. Black Belts d. Green Belts
e. All the above
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UNIT 24: FUTURE OF ORGANIZATIONAL DEVELOPMENT
231. ______________ is a dynamic process which addresses the problems that arise in an organization.
a. Organizational culture b. Organizational chart
c. Organizational climate d. Organizational development
e. Organizational conflict
232. Siri, a paint and lubricant manufacturing company concentrated on paint manufacturing as the
constructions were in progress in the city. For time being it ignored the importance of lubricants.
The company staff urged to develop the sales of lubricant to gain market share. But the
management did not consider. Lubricant being the essential commodity for industries, a competitor
took over the sales for the year. Name the factor that led to uncertainty about the future of OD.
a. Leadership and values b. Knowledge about OD
c. OD training d. Interdisciplinary nature of OD
e. Diffusion of OD techniques
233. A manager in an IT company being busy with his work stopped reading books, journals, and
newspapers for a week. Later he realized that he missed an opportunity to attend a conference
which was very important for the organizational development. Identify the factor that made him
lose the opportunity.
a. Rediscovering and recording history b. OD training
c. Knowledge about OD
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d. Interdisciplinary nature of OD
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e. Leadership and values
234. Laboratory training or the __________ training approach to OD led to the development of training
techniques.
a. T-group b. S-group
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c. P-group d. Q-group
e. M-group
235. A newly appointed manager in an organization encountered with a problem and was searching for
the solution. His personal secretary knowing this searched the old records and narrated a similar
situation that happened long ago in the organization and the actions taken against it. Find out which
factor of OD that helped the manager to solve the problem.
a. OD training b. Diffusion of OD techniques
c. Rediscovering and recording history d. Knowledge about OD
e. Integrative practice
236. The future of OD might be carried out through the __________ without the need for the practitioner
to be physically present. That is, individuals can participate in these interventions virtually.
a. Intranet b. Internet
c. Funbook d. All the above
e. Structure
237. The ___________________ approach of OD will increase the need for an integrated approach to
planned change so as to bring about large-scale changes in the organizations.
a. The interdisciplinary nature b. The diversity of organizations
c. Duration of OD process d. The need for clarity of OD values
e. Usage of IT
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238.Deloitte‟s Merger & Acquisition Services professionals helps clients in their efforts to gain a
competitive edge through Mergers or Acquisitions by applying multi-functional approach and
providing services throughout the deal life-cycle and include the support for activities such as
strategy development, target screening, due diligence, transaction execution, integration and
divestiture. Name the OD processes and practices factor.
a. Use of IT in OD process
b. Learning and innovation in OD
c. Interdisciplinary nature of OD
d. OD to become part of organization‟s operations
e. Increasing clarity regarding OD values
239.Delta Consultants as an OD process services helped Knoll, Inc, Manufacturer of high quality
commercial furniture to join with The US Domestic Sales Force. Delta Consultants conducted
numerous, in-depth interviews with sales representatives and regional managers in key U.S.
markets to understand (1) the characteristics of sales success, (2) a job description of successful
representatives and (3) qualitative and descriptive performance measurement guidelines to
complement traditional measures. What is Delta trying to do in OD process?
a. Trying to get clarity regarding OD values
b. Utilizing IT in OD process
c. Increasing the scope for learning and innovation
d. All the above
e. Decreasing the scope for learning and innovation
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240. The use of IT would reduce the OD life cycle due to _______________ factor.
a. Fast analysis of problem b. Manpower planning
c. Efficient coordination d. Cause and effect
e. Quick diagnosis and Reduction in the time spent in data collection
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MULTIPLE CHOICE – ANSWERS AND EXPLANATIONS
UNIT 1: UNDERSTANDING ORGANIZATIONAL BEHAVIOR
1 b. Sociology: Sociology is the scientific study of the developments in society and the nature of
social behavior.
2 b. Leadership Role: According to Mintzberg, the three important interpersonal roles of a manager
are figurehead role, leadership role, and liaison role. Under the leadership role the manager
performs functions like hiring, training, and ensuring discipline among the employees.
3 e. Monitor: As a monitor, manager gathers information with the help of newspapers, magazines,
etc., and also by communicating with field executives who are in close contact with customers.
4 a. Human Skills: Possessing human skills like the ability to understand people, the ability to
communicate and the ability to motivate makes it easier for managers to maintain peace and co-
operation among the employees.
5 c. The supportive model: The supportive model emphasizes leadership rather than power or
money. Under this approach, leaders promote an environment for the employees to grow while they
help in achieving the organization‟s objectives. The supportive model enhances the relationships
between the employee and the employer.
6 b. Ivan Pavlov and John B Watson: Ivan Pavlov and John B Watson who pioneered the
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behaviorist theory explained human behavior with the help of stimulus-response experiments.
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7 e. Workforce diversity: Workforce diversity implies the heterogeneity of employees in an
organization in terms of gender, race, ethnicity and abilities. A person who differs from the rest of
the group in any form contributes to workforce diversity. Hence, managers need to change their
uniform approach and be more responsive to the differences in culture of the employees.
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8 a. To empower employees: Today, managers are assuming the roles of coaches, advisers,
sponsors, and facilitators while employees are increasingly being given complete freedom in their
work. Thus, by empowering, employees are made responsible for their actions while managers
ensure the responsibility of their employees.
9 d. Framing policies for ethical behavior: Sometimes employees‟ superiors encourage them to
follow unethical practices to accomplish the tasks. In such cases, employees face an ethical
dilemma whether to obey his/her superior or report the matter to the top management. Hence, every
organization must adopt a policy that ensures the employees ethical practices in the organization.
10 b. The Collegial Model: In the collegial model, employees are self-disciplined, self-satisfied, and
have specific goals which motivate them to improve their performance. In Collegial Model,
superior acts more like a leader who leads and motivates employees to perform at their best.
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UNIT 2: FOUNDATIONS OF HUMAN RELATIONS AND

ORGANIZATIONAL BEHAVIOR
11 c. Keith Davis: Keith Davis defines human relations as “Motivating people in organizational
setting to develop teamwork which accomplishes individual as well as organizational goals
effectively.”
12 a. Scientific Management: FW Taylor proposed management practices such as division of labor
and the use of scientific methods in selection, placement, and training of workers. He made a
significant effort to improve the working conditions of workers.
13 e. Group behavior: Political science helped in analyzing group behavior within organizations and
its influence on the organizational system.
14 b. Industrial psychology relates to the theories and principles of psychology applied in the
industrial context. Its contribution to OB has been in analyzing various selection and placement
processes, the influence of the physical environment on human performance, accident, and safety,
and in understanding individual differences.
15 d. Ability- Knowledge and Skill result in ability.
16 c. Hawthorne Studies: In relay assembly room experiments conducted by Elton Mayo under
Hawthorne studies, it is found that increasing the duration of rest pauses increases productivity.
17 d. Social: The working experiences in a group influenced the social demands of the workers.
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c. Theory X: The assumptions of Theory X formulated by Douglas McGregor says people are not
ambitious, try to avoid work, depend on management for directions and give utmost importance to
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security needs.
19 a. Long-term employment: Theory Z propounded by William Ouchi states that organizations
believe in lifetime employment and consider their employees as family members and involve them
in decision making.
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20 b. Elton Mayo and F.J. Roethlisberger: In 1920s, the management of Western Electric Company
was concerned about the high level of dissatisfaction prevailing among them and approached the
National Academy of Sciences for help in finding a solution. In 1927, Elton Mayo and F.J.
Roethlisberger of the Harvard Business School began experiments at the Hawthorne plant of
Western Electric Company that led to development of concepts such as participatory management
and team building.
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Multiple Choice – Answers
UNIT 3: UNDERSTANDING PEOPLE AND ORGANIZATIONS
21 a Learning: Learning can be referred to as a relatively permanent change in an individual‟s beliefs

and attitudes as a result of experience gained by him or her over a period of time. The nature of
tasks assigned to employees also influences their behavior in the organizations.
22 c. Human Limitations: Human beings have certain physical and psychological limits beyond
which they cannot change themselves. It leaves the person in a state of confusion and commits
several mistakes. As a result, the person‟s work becomes ineffective.
23 e. Environment: Social scientists believed that the external environment shaped the behavior of a
person. They emphasized that behavior is an interactive process between individual and
environment. Environment is seen to play a vital role in molding the behavior of a person.
24 d. Behaviorists: Behaviorists believe that an individual‟s behavior could be understood by
observing the way he/she had responded to a certain stimulus in the past and also the consequences
of the response.
25 b. Situated learning: In this type, learning takes place in the context of a particular situation. The
learner applies the knowledge gained to different new situations and in a variety of new ways.
26 d. Instrumental Learning: Behaviorists hold that when an individual observes that responding in a
particular way to a particular stimulus is rewarding, then he/she tends to behave in a similar way in
the future to a similar stimulus.
27 c. Activities and people: The effective management of an organization required proper
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management of the activities and people in the organization. Managers need to control and co-
ordinate the various activities performed by the employees.
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28 e. Complexity: Due to heterogeneous complexity in organizations, co-ordination, integration, and
control of various activities across different departments have also become difficult, giving rise to a
conflict of goals within the organization.
29 b. Task Design: Organizational tasks should be designed in such a way that they bring efficiency in
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the performance of the employees.

30 a. Structural: The major elements of organizational environment that are responsible for shaping
attitudes and work behavior of the members are the structural characteristics of an organization and
the nature of the tasks performed by organizational members. The social aspect of an organization
is also vital element in its environment.
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UNIT 4: DIVERSITY AND ETHICS
31 b. Globalization: There are different reasons for the emergence of diversity in organizations.
Globalization has contributed significantly to the increase of diversity in organizations.
32 c. Home Country: While going for globalization, organizations have to employ local people to
ensure functioning with thorough knowledge about the values and culture of the people in the
country in which they are operating.
33 a. Gender: Manager has to understand the nature of diversity in organizations by understanding
some specific characteristics of diversity. Demographic differences such as age, gender, education,
and ethnicity are some of the specific characteristics.
34 d. All the above: Morale, enhancing productivity, and reduce absenteeism.
35 a. Creating family-friendly workplaces: To manage a diverse workforce efficiently, companies
have tried to create family-friendly workplaces. These are intended to take care of the interests of
working mothers, single parents, and men and women of families where both spouses work. The
aim of creating a family-friendly workplace is to improve employee morale, enhance productivity,
and reduce absenteeism.
36 e. Mentoring program: An employee who is less experienced can be guided by the senior
employee acting as mentor.
37 b. Learning and empathy: Individual approaches to managing diversity can be through learning,
that is, by improving the knowledge of an individual about other people, or with empathy, i.e.
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understanding others by putting oneself in other person‟s shoes.
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38 c. Empathy: Managers would be able to understand the problems of employees when they
empathize with their employees. He should not discriminate employees and should learn that
employee likes to be treated on par with other employees.
39 e. Telecommuting: In this arrangement, employees need not travel to office and can work from
home. Work is done on the telephone. It saves time, space, and other costs for the organizations.
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40 c. Glass ceiling: Discrimination of women or any other group in the payment of salaries or in
promoting employees to higher positions in organizations is treated as unethical behavior. The glass
ceiling effect prevents women from reaching the top level management.
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UNIT 5: MANAGING COMMUNICATION
41 a. Chain of command: Classical management theorists emphasized only one-to-one

communication between superior and subordinate. This type of communication is based on the
principle of „chain of command‟.
42 e. Humanistic interactor: The humanistic interactor actively communicates with both supervisors
and subordinates.
43 b. Gestures: Non verbal communication can be in the form of gestures, eye-contact, facial
expressions, cues, vocal characteristics, etc.
44 c. Receiver: Feedback occurs when the receiver responds to the message received by him. This
response can be in the form of acknowledgement of receipt of the message, making corrections in
the message received, adding more information to the data received, disapproval of the message
received, etc.
45 e. Downward Communication: In downward communication, information flows from superior to
subordinates either belonging to the same department or to other departments.
46 c. Participative techniques: Union, management committees, suggestion boxes, informal
relationships with employees, etc., help the management in gathering valuable information that can
be utilized to improve the management of the organization.
47 d. Networks: A network consists of a group of individuals who enhance their interpersonal
relationships with a view to exchanging information of common interest in an informal manner. An
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individual who engages in such an activity is said to be „networking‟.
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48 e. Grapevine communication: Informal communication is referred to as the „grapevine‟. The
grapevine is the result of social forces existing in the organization. It provides information
regarding employees‟ attitude toward the rules and management decisions.
49 a. Management information system (MIS): MIS is a data collection and analysis system that
provides customized solutions to managers. MIS collects, organizes, and analyzes data. MIS uses
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this data to offer solutions that suit a particular situation.

50 e. Electronic Mail/email: Electronic mail, more commonly referred to as e-mail, is a computer-
based communication system, by which the sender send his messages over the computer networks.
The receiver can only view the message when he logs on to his computer and opens his message
box.
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UNIT 6: INTERNATIONAL ORGANIZATIONAL BEHAVIOR
51 d. All the above: Business operations in different countries should be varied, complying with the
beliefs, attitudes, and customs of people of the country in which the organization operates.
52 a. Economic conditions: Before creating business plans or when evaluating existing ones, it is
important to scan the external environment. Economic changes that affect business include changes
in the interest rate, wage rates and the rate of inflation. Business will be more encouraged to expand
and take risks when economic conditions are right.
53 c. Power distance: Power distance refers to the managers‟ decision-making powers which separate
them from the other employees of an organization. Power distance influences the level of
acceptance by subordinates of the managers‟ decisions.
54 d. People’s perception: People living in a particular country may have imbibed a set of values,
which may be very different from the values of the people of other countries.
55 c. i and ii: People‟s orientation to time is different in different countries. In some countries, people
are oriented toward the past, while in others, they think more about the present; in still others,
people think of future prospects.
56 c. Perception: People living in a particular country may have imbibed a set of values, which may
be very different from the values of the people of other countries. When people travel from one
country to another which has a different culture, background, and values, they may take time to
adjust to the new country.
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d. Expatriates: People who are either relocated or moved to other nations as per organization‟s
requirement are known as expatriates.
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58 e. Culture shock: While trying to adapt to a new culture, expatriates go through different phases.
The factors that give rise to culture shock include dramatic differences in language and the
consequent difficulties in communicating, differences in mannerisms, customs, and cultural
orientations of people with regard to the use of time, and the relative importance given by people to
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privacy and activity.

59 b. Interpersonal skills: The interpersonal skills of managers are different in different nations. A
study by P. C. Burger says that managers of Japan are least concerned about rules while Indian
managers were most concerned.
60 b. Ethical considerations: The ethical behavior of one country differs from that of another country
in the world. Expatriates should understand the laws and ethical values of foreign countries.
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UNIT 7: PERSONALITY AND ATTITUDES
61 a. Personality: Personality is the characteristic of human beings that influences the way people
behave when they interact with others and react to a particular situation.
62 c. Extroversion: Extroverts are those people who have a high degree of comfort in interacting with
others. They are sociable, friendly, and outgoing in nature.
63 d. Emotional stability: Emotionally stable people can endure stressful situations. They tend to feel
emotionally secure. Such people can overcome tensions and perform their jobs effectively even
under severe pressure.
64 a. Internals & Externals: People who believe that they are the masters of their own fate are known
as internals while those who believe that fate is controlled by luck, chance, or external forces are
called externals.
65 a. Machiavellianism: This quality refers to the extent to which a person is pragmatic in
maintaining an emotional distance from others. Such a person believes that the ends justify the
means.
66 b. Type B personalities are not obsessed with achieving a number of tasks within a short period
and they maintain a low profile and do not discuss their achievements. Type B personalities can do
more justice to routine jobs such as clerical jobs.
67 e. Socialization process: People‟s personality may also be influenced by their interaction with
other individuals, groups, and society at large. Such a development process is known as the
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socialization process. The socialization process is a continuous and ongoing process.
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68 d. Matching personalities with jobs: Individuals, whose personalities matched the requirements of
the job, generally did not quit their jobs voluntarily. John Holland established a relationship
between personality characteristics, requirement of the job, and the performance of the job.
69 b. The ego-defensive function: Employees develop attitudes to defend their self-image. When a
subordinate points out mistakes committed by a superior, the superior might develop a negative
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attitude toward the subordinate.

70 c. Leon Festinger: The cognitive dissonance theory was first proposed by Leon Festinger in the
late 1950s. This theory refers to the incompatibility that an individual may perceive between two or
more of his attitudes, or between his behavior and attitudes.
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UNIT 8: MOTIVATION
71 d. i, ii & iii Motivation is a condition which causes a certain behavior in an individual to achieve
certain goals, and is initiated by physiological deficiency or need in an individual. Needs, drives
and incentives are the elements of motivation. Needs are the basis for drives, which in turn, form
the basis for achieving incentives.
72 c. The security motive: Security is a prime concern, specifically in technologically advanced
societies because of growing insecurity among people over maintaining relationships with family
and friends, meeting loan repayment obligations, job security, etc. Employers address the security
motive of their employees by means of insurance policies, savings plans and other benefits.
73 e. Maslow’s Hierarchy of Needs: Abraham Maslow proposed a theory of motivation based on
hierarchy of needs. The hierarchy of needs is physiological, safety, social or love needs, esteem
needs and self-actualization needs.
74 c. Efforts, performance, rewards and satisfaction: Porter-Lawler model is an extension of
Vroom‟s theory to explain the complex relationship between motivation, satisfaction, and
performance. The important variables in the Porter-Lawler model are effort, performance, rewards
and satisfaction.
75 a. Self-actualization needs: These are at the highest level in the hierarchy of needs as given by
Maslow. When people realize their full potential and fulfill it, they attain self-actualization.
76 b. Other-outside: An employee compares his/her experiences with that of an individual or group of
individuals working for another organization in different positions.
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77 c. Cognitive process: The attribution theory tries to answer the „why‟ aspect of motivation and
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behavior. As stated by a famous social psychologist, Harold H. Kelley, the attribution theory deals
with cognitive processes, which help to interpret individuals‟ behavior as caused by aspects of the
relevant environment.
78 c. Internal locus of control: Managers with internal locus of control are better performers,
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considerate toward their subordinates, are not over-stressed and follow a strategic approach.
79 a. The agency theory is developed on the basis of some concepts in financial economics, is
applicable to various areas of organizational behavior. It helps in understanding how top
management can reduce conflicts between their interests and those of employees by giving rewards
or incentives for achieving the desired results.
80 b Valence: Valence is strength of a person‟s preference for receiving a reward.
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UNIT 9: PERCEPTION
81 b. Perception: Perception is a cognitive process wherein an individual collects, organizes, and

interprets data from the environment to obtain a meaning from it. Perception differs from person to
person for the same situation.
82 d. Perceptual selectivity: People are constantly exposed to various stimuli. However, sometimes
the stimuli may be so understated that they may not even be aware of it. This is called subliminal
perception. Individuals are prone to select only a few stimuli at a given time.
83 a. Contrast: According to the principle of contrast, the stimuli that contradict most with the
background or the expectations of people, receive maximum attention.
84 a. The Perceiver: The factors that help in shaping perception are the perceiver, the target which is
being perceived, and the situation in which perception occurs.
85 e. Stereotyping: Stereotyping refers to the generalization of the characteristics of all members
belonging to a certain group. People judge others based on the perception they have about the group
to which these individuals belong and do not consider the unique characteristics of the person in
question.
86 a. The Halo effect: In the halo effect, the perceiver tends to judge a person depending upon a
dominant trait which can be either positive or negative.
87 c. Impression management: Impression management is also referred to as „self-presentation‟. It is
a process by which people try to manage or control the perceptions formed by others about
themselves.
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88 b. Obstacle disclosure: Sometimes employees convey to their superiors the unavoidable obstacles
(personal or organizational) that they had to overcome in order to achieve the outcome.
89 c. Demotion-preventive strategy: Employees use this strategy to reduce their responsibilities for a
negative outcome or to stay out of trouble by explaining the negative outcome by giving excuses or
by apologizing to the superior for the negative outcome.
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90 d. Perceptual context: The context of the situation also plays a major role in shaping the
perception of individuals. Different contexts convey different meanings to people.
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UNIT 10: LEARNING
91 e. Human resources: The concept of learning is significant in understanding, developing, and

managing human resources in an organization.
92 b. Cognitive theories: Edward Tolman, a theorist of cognitive psychology, stated that cognitive
learning consisted of a relationship between cognitive environmental cues and expectation.
93 e. Social learning theory: Albert Bandura carried out research on modeling processes stated that
people learn from others by observing and enacting. The sub-process includes attention, retention,
reproduction, and reinforcement, which are interrelated.
94 d. Reinforcement: Reinforcement is explained as anything a person finds rewarding. The law of
effect states that repetition of responses is more likely to happen if followed by pleasant
consequences than if it is followed by unpleasant consequences.
95 b.Negative reinforcement: Negative reinforcement and punishment are common forms of negative
control of behavior. Punishment weakens and decreases the probability of occurrence of a particular
behavior.
96 e. Thorndike: The law of effect was given by Thorndike in 1920. He stressed that learning
involved forming of bonds between stimuli and responses.
97 e. All the above: The effectiveness of the O.B. Mod process is measured on the basis of the data
obtained on parameters such as Quantity, turnover, absenteeism and consumer complaints
98 b. Self-efficacy: Social learning theories explained learning through modeling processes and self-
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efficacy apart from stimulus and responses.
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99 e. None of the above: The learning of the association between the cue and expectation is referred to
as Social learning theory.
100 b. OB Mod process: OB Mod process focuses on the influence of the environment on employee
behavior, the antecedent cues or conditions that precede a behavior, the consequence of a particular
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behavior and the impact of the behavior on performance effectiveness.
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UNIT 11: LEADERSHIP
101 a. Leaders: Leaders are people who have a vision, set goals to realize the vision, and motivate and
gain the commitment of their people to work toward the achievement of the goals.
102 d. Integrity: There are certain traits which differentiate leaders from non-leaders such as initiative,
ambition, desire to lead, integrity, self-confidence, analytical ability, knowledge of a specific
company, industry, or technology, creativity and flexibility
103 c. Conceptual skills: With the help of conceptual skills, an individual can analyze complex
situations, rationally process and interpret available information, and accordingly design a suitable
solution to a problem.
104 e. Great Person: A theory that proposed that the personality traits necessary to become an effective
leader could be acquired through training and experiences of great person.
105 b. Consideration: People who score high on this dimension are very friendly and open with their
subordinates. They extend help to their employees to solve both personal and work-related
problems.
106 a. Production-oriented dimension: The production-oriented dimension concentrates on
productivity rather than on employees. Leaders who score high on this dimension consider
employees only as a means to achieve goals.
107 b. Scandinavian studies: The Scandinavian studies led to the finding of a new dimension called
„development-oriented behavior‟. According to this dimension, leaders were ready to experiment
with new ideas and practices and embrace change.
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108 e. Group II (G-II): Under this dimension, the leader initiates a group discussion on alternative
solutions, and moderates the discussion till the group reaches a consensus on the solution to be
adopted.
109 b. Selling: In this style, leaders give directions as well as provide the required support to the
subordinate. This style can be followed for employees low on their ability to perform but high on
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willingness to perform.
110 c. Path-goal theory: The path-goals theory was developed by Robert House. According to this
theory, leaders define individual or group goals to the subordinates that are in line with the
organizational goals.
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UNIT 12: EMPOWERMENT AND PARTICIPATION
111 c. Empowerment: Empowerment means involving employees in the organizational functioning by

giving them more authority to make decisions. Through empowerment, organizations try to
motivate their employees.
112 a. Autocratic managers: Autocratic managers only promote pseudo-participation in the
organization rather than true participation. These managers are unable to encourage the ego-
involvement of employees in organizational activities and this leads to the imitation of participation
by employees in the organization rather than true participation.
113 d. Contribution: Participation in decision-making motivates employees to use their abilities and
creativity to achieve organizational goals. In fact, the contribution that employees make toward
accomplishing these goals in the way of ideas and suggestions enhances their motivation levels
further.
114 e. All the above: Participation helps to reduce the attrition rate and absenteeism among employees.
The indirect advantages of employee participation would be their commitment to achieving
organizational goals, lower stress levels, and less resistance to change.
115 d. All the above: To solve work-related problems in organizations, committees are formed with
managers and subordinates as members. These committees are known as involvement teams, work
committees. These programs help in improving productivity in organizations by involving the
employees.
116 a. Self-managing Teams: Employee groups in some organizations participate in major decisions.
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In such participation programs, the contribution of ideas by individual members and the influence
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of the group are given significance. The group decision approach is formally referred to as the use
of „self-managing teams‟.
117 b. Higher: Some government legislations make the participation of employees in decision-making
mandatory, especially in matters relating to workers. This is called industrial democracy. Industrial
democracy ensures that all employees have a say in the major decisions of organizations by having
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representation at the higher levels of the organizations.

118 d. The complexity of the organizational structure: The limitations of participation include the
lack of proper planning and implementation, the complexity of the organizational structure and the
technologies used at work, the specialized work roles of employees in organizations.
119 e. Theory X: Supervisors who believe in Theory X assumptions are afraid of allowing participation
of lower level employees as it might dilute their power and status. Therefore, they may not facilitate
participation of employees by coaching and guiding them.
120 c. Procedural: The participation of employees faces problem when they are more involved in
procedural aspects of participation. Participative procedures may not make employees feel
automatically empowered.
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UNIT 13: CONFLICT, NEGOTIATION AND INTER GROUP BEHAVIOR
121 d. All the above: Conflicts can be classified into interpersonal conflict, intrapersonal conflict, and
inter group conflict.
122 a. Intrapersonal conflict: Individuals might experience stress and frustration in the process of
achieving their goals. This leads to intrapersonal conflict. Intrapersonal conflict may arise: when the
employee‟s roles and responsibilities are not defined clearly; when the employee receives
conflicting orders from more than one boss; when the employee faces conflicting expectations from
superiors and subordinates
123 c. Inter group conflict: In an organization, conflicts occur when one group attempts to take the
entire credit for the successful completion of a task, to the completion of which another group may
have also made significant contributions.
124 d. Potential Opposition or Incompatibility: This is the first stage in the conflict process. A
conflict arises as a result of the operation of certain factors. The presence of these factors is
essential for a conflict to result.
125 c. Structure: The variables that constitute the structure of organizations are; size of work groups,
degree of specialization of employees; role clarity of individuals and departments; leadership style;
diversity of goals and reward system. These are also a major source of conflict in organizations.
126 b. Accommodating: This occurs when one party tries to satisfy the interests of the other party by
sacrificing its own interests.
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127 c. Distributive bargaining: The distributive bargaining approach involves division of a fixed
amount of resources among the negotiating parties. The significant feature of this method is that it
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operates under zero-sum conditions – if one of the parties to the negotiations gains a certain amount
in the bargaining process, the other party suffers an equivalent loss.
128 e. Preparation and planning: Before starting the negotiations, the negotiator must thoroughly
understand the reasons and the situations that led to the conflict. One major aspect that a negotiator
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needs to be clear about is the goal that he/she wants to achieve for his/her party.
129 b. Cultural differences: Cultural differences have an impact on the negotiation process.
Negotiation styles differ from country to country.
130 d. All the above: Inter group relationships have a major influence on the co-ordination among the
individuals belonging to various groups. Therefore, inter group relations have to be maintained
properly. Factors that affect inter group relations are; Interdependence-Pooled interdependence,
Sequential interdependence, Reciprocal interdependence; Task uncertainty; Orientation of time and
goal.
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UNIT 14: FOUNDATIONS OF GROUP BEHAVIOR
131 a. Balance theory: People form groups for various reasons. Different classical theories of groups
try to explain why people form groups. The balance theory says group formation results from the
similarity of attitudes and values between people.
132 b. Primary group: A primary group is small in size, is made up of members who have similar
values and loyalties, and have a feeling of comradeship toward each other.
133 e. Coalition: Coalitions are groups created for a particular purpose and do not have a formal
structure.
134 c. Norming: In group development, under the five-stage model, this stage is characterized by the
development of close relationships and cohesiveness within the group. A common set of
expectations for behavior in the group is the outcome of this stage.
135 d. Formal groups: A group formed by the organization to accomplish a specific task is termed as a
formal group. The organization sets up a formal group and allocates tasks and responsibilities to
different members with the intention of achieving organizational goals.
136 a. Informal groups: These groups are formed by the members themselves. The reasons for the
formation of informal groups could be the need for companionship, common interests, growth,
recreation, or support.
137 d. Club membership: Reference groups are groups to which people wish to belong like a
prestigious club etc.
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138 b. The Punctuated Equilibrium Model: Under this model, there are long periods of inactivity in
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group formation and its functioning. The period of the first half is characterized by inertia. In the
second half period, members realize the passage of time and lack of progress that leads to
intensified activity to complete the project.
139 c. Role Identity: Role identity results from attitude and behavior of individuals in different roles.
Individuals need to make the necessary changes in behavior to suit the requirements of an
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organization.
140 e. Interdependent: The complexity and interdependence in the tasks of a group influence the
performance of the group. When the tasks are complex, the members of a group need to discuss
things with each other and share ideas to work better. If the tasks are interdependent, there will be
interactions between members of a group.
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UNIT 15: UNDERSTANDING WORK TEAMS
141 b. Modern organizations: Work teams are increasingly becoming popular in modern organizations
as they encourage co-ordination and co-operation among members to have a positive impact on the
goals of the teams as well as on those of the organization.
142 d. Improved organizational performance: Teams foster healthy competition among the team
members as a result of which each team member strives to put in maximum efforts toward the
achievement of the team‟s common goals. This in turn has a positive impact on the organizational
performance because every team in the organization is formed to achieve the organizational goals
and objectives.
143 b. Reduced costs: Members of work teams have a sense of belonging to the organization and its
goals. They also remain committed to the organization, as a result of which they try to reduce
wastage, be more regular to work, etc. Thus work teams help organizations reduce costs.
144 c. Withstand: Teams bring in innovation and creativity by forcing team members to look for newer
ways of doing things. Teams also help organizations to adapt to changes quickly, thereby enabling
them to withstand competition.
145 d. Team-bonus plans: In this reward system, only the performance of the particular team is
considered instead of the performance of the whole organization.
146 d. All the above: Depending upon the objectives, teams can be classified into problem-solving
teams, self-managed teams and cross-functional teams
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147 e. a & b: Work teams suffer from both the individual problems of team members and
organizational problems.
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148 a. Selection: Work teams require that team members interact very frequently with each other. It is
also necessary that they co-ordinate with each other for the achievement of common goals.
149 a. Providing a supportive environment: The performance of teams is largely dependent on the
ability and willingness of the team members to perform effectively. Therefore, the management
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must foster a work environment in the organization that provides support and encourages the
members to work toward the fulfillment of organizational goals.
150 c. Multiple interpretations: The advantages of workforce diversity includes- multiple
perspectives, greater openness to new ideas, multiple interpretations, increased creativity, increased
flexibility and increased problem solving skills.
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UNIT 16: INFORMAL ORGANIZATIONS
151 b. JL Gray and FA defined informal organization as” Patterns of behavior and influence stemming
from human interaction within a formal structure”.
152 c. Basis of influence: In formal organizations, the basis of influence is the position a person holds
in the organization while in an informal organization, a person can influence other members with
his/her charisma.
153 e. Goals of the organization: Informal organizations work mainly to satisfy their members
whereas formal organizations have the goal of maximizing profitability while serving society at
large.
154 d. Informal organization: There may be more than one leader in an informal organization. In fact,
informal leaders enjoy a special status among other members of the organization.
155 b. Decrease in the workload of managers: When managers secure the cooperation of members of
informal organizations, they can delegate work to able subordinates. This reduces their workload of
frequently checking on the workers.
156 e. Preventing organizational change: To bring about organizational change, the consent of
informal organizations is essential. If informal organizations are conventional then the employees
will oppose change, thus preventing the organization from implementing changes.
157 a. Grapevine: Communication in formal organizations is generally through formal means such as
company reports, memos, official notices, newsletters, and meetings. On the other hand, the
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communication channel of informal organizations is termed as the grapevine.
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158 e. Availability of recent information: Some factors in the organization responsible for grapevine
includes periods of excitement and insecurity brought about by change, involvement of friends and
associates, availability of recent information, nature of job held by an individual, and personality
traits of the individual.
159 d. Pipe dreams or wish fulfillment: These rumors have their bases in the employees‟ desire to
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bring about a change in the way the organization functions. Thus, these rumors are positive and
tend to enhance the efficiency of the organization.
160 b. Home-stretchers: If an important announcement is delayed by the management of an
organization, rumors related to the situation spread quickly among the employees.
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UNIT 17: FOUNDATIONS OF ORGANIZATIONAL STRUCTURE
161 c. Work specialization: Work specialization refers to the extent to which the jobs in an
organization are divided into sub-tasks.
162 b. Departmentalization by product: Large and complex organizations consisting of a wide array
of product portfolios generally resort to departmentalization by product. In this method, the
organization is split into a number of Strategic Business Units (SBU), each producing a particular
product or services. The SBU‟s are independent of each other and provide wide scope for the
personal development and growth of employees.
163 e. Unity of command: According to unity of command, an employee should not report to more
than one superior. If an employee is assigned tasks by more than one superior, it could lead to
confusion and conflicts, affecting the performance of the employee.
164 a. Centralized: In centralized organizations, power and authority are vested with the top
management in the organizational hierarchy.
165 b. Geographic Decentralization: Here, different business units situated in different geographic
locations perform all the operations.
166 e. All the above: The bureaucratic model of organization founded by Max Weber complied with
the values of western culture which emphasized rationality. The characteristics of a bureaucratic
organization include work specialization, division of labor, abstract rules, impersonality of
managers and hierarchy.
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167 b. Decentralized: Decentralization refers to the delegation of authority and decision-making power
to all levels of the organization.
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168 e. The matrix organization: The matrix organization is a combination of two complementary
structures – product structure and functional structure. Every subordinate in the organization has to
obey orders given by the functional head and the product manager.
169 a. Work specialization: work specialization refers to the extent to which the jobs in an
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organization are divided into sub-tasks. Each of these sub-tasks is performed by an individual
employee.
170 a. Organizational structure: According Stephen P. Robbins, “An organizational structure defines
how tasks are formally divided, grouped, and coordinated.”
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UNIT 18: DECISION MAKING
171 e. All the above: Decision making is an integral part of management. External environment, past
experiences, the cognition levels of managers and human relationships within the organization
influence the decision making of managers.
172 c. Rational Decision-making: The rational decision-making process involves logical step by step
decision making – problem definition, identification of key criteria, awareness of alternatives,
evaluation of the alternatives based on the key criteria, and finally choosing the alternative with the
highest value.
173 a. Programmed decisions: If the occurrence of a particular situation is frequent, managers will
have a prior idea about the appropriate decision for that situation. As the managers will have
adequate information about the situation, they make decisions in a structured manner. These
decisions are termed as programmed decisions.
174 c. The economic rationality model: The basic assumption of the economic rationality model is
that the decision maker is perfectly rational while making a decision. It assumes that 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.
175 b. Behavioral decision making: The behavioral approach toward decision making emphasizes the
role and importance of human behavior in the process of decision making.
176 e. Behaviorally-oriented: Behaviorally-oriented decision-making techniques stress the importance
of participation by all employees in the organization in the decision-making process. By
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encouraging employees to participate, organizations can get the advantage of having a board range
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of alternatives to choose from while making decisions.
177 e. All the above: The social model tries to explain the reasons for erratic decision making by the
decision makers through escalation of commitment as explained by Barry M. Staw and Jerry Rose.
According to them, the four reasons for this behavior are characteristics of the project,
psychological determinants, social forces and organizational determinants.
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178 c. Divergent thinking: Divergent thinking refers to an individual‟s ability to develop innovative,
but relevant responses to given questions or problems. Ideas generated by divergent thinking are
generally novel and sometimes appear irrational.
179 b. Groupthink: When members of a group make decisions, they tend to opt for sub-optimal
decisions without evaluating the alternatives so as to go with the decision of the majority in the
group. Decisions resulting from groupthink tend to be incorrect or suboptimal as the members try
for unanimity in decisions.
180 d. All the above: In order to overcome the problems of group polarization and groupthink,
managers use problem solving techniques such as brainstorming, nominal group technique, and the
Delphi techniques in the decision-making process.
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UNIT 19: POWER AND POLITICS
181 c. Jeffrey Pfeffer: In the words of Jeffrey Pfeffer, an organizational behavior theorist, power is,
“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”
182 c. Power: Power gives a person/group the ability to bring about a change in another person or
group. It also empowers a person to manipulate other people or a situation to bring about the
required change.
183 a. Expert power: Expert power is bestowed upon individuals who possess some specialized skill or
knowledge. Their expertise in a certain skill or area gives them the confidence and self-esteem with
which they can influence others.
184 d. All the above: The study of power is incomplete without understanding the role of dependency
in the process of application of power.
185 a. Scarcity: The dependency levels of individuals on people who control scarce resource is higher.
186 d. Coercive power: Coercive power compels individuals to strictly adhere to the rules and
regulations of the organization. People tend to obey the orders of an individual/group fearing the
consequences of their failure to carry out the tasks assigned to them.
187 d. Identification: According to Herbert Kelman, a social psychologist, the three main processes of
power are compliance, identification and internalization. In identification process, the agent has a
referent power due to which the target identifies with or tries to emulate him/her.
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188 c. Coalition: A coalition consists of a group of people who come together with the aim of
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improving their bargaining power or their influence over other people. A coalition generally
consists of individuals who share similar interests and strive to achieve common goals.
189 d. Organizational Politics: According to Stephen Robbins, politics are , “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.”
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190 a. Whistle blowers: Individuals who report unethical practices by their employer to outsiders are
called whistle blowers.
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UNIT 20: ORGANIZATIONAL CULTURE
191 d. Organizational culture: Organizational culture refers to a pattern of learned behaviors that is
shared and passed on among the members of an organization. It comprises of the various
assumptions, values, beliefs, norms, rituals, language, etc. that people in an organization share.
192 e. Innovation and risk taking: Some organizations develop a culture to generate innovative ideas
by encouraging employees to take more risks at work. They invest a lot of money in R&D.
193 c. Philosophy: Philosophy is the policy the organization adopts in treating its employees and
customers. It also refers to the values adopted by organizations and differs from one organization to
another.
194 b. Sharedness: The acceptance level of the organizational culture and the degree of sharedness
make the culture of an organization strong or weak. The greater the sharedness of the culture, the
stronger will be the organizational culture. The degree of sharedness is affected to a great extent by
the orientation the employees receive when they join the organization and also by the reward
system.
195 b. Subculture: Subculture is a culture adopted by a minority group or small groups within the
organization.
196 a. Hierarchical culture: A hierarchical culture prevails in organizations where the traditional
leadership style is followed. Hierarchical cultures are characterized by formal organizational
processes and obedience to the norms of the organizational culture.
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197 e. a & c: The important functions of culture in an organization includes; to create a boundary
defining role for employees and to develop a sense of identity
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198 b. Top management: The top management of an organization influences the culture in the
organization to a great extent. Usually, the ideas and behavior of the top level management seep
down throughout the organization.
199 d. Stories: Stories relating to the behavior of employees in an organization help the new
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employees to easily analyze the expectations of the organization and its culture. Stories convey the
ideologies of the organization‟s founders, the past experiences of employees in the organization.
200 d. All the above: The important things to be considered while implementing the change process
are; assess existing culture, change agent, introduce alternatives, define a new paradigm, change
must be top-down, employee participation, shed old paradigm and quick transition.
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UNIT 21: ORGANIZATIONAL CHANGE
201 e. All the above:-Change is defined by Curtis W. Cook, Philip L, Hunsaker, and Robert E. Coffey,
in the context of business is, “The coping process of moving from the present state to the desired
state that individuals, groups, and organizations undertake in response to dynamic internal and
external factors” such as people, technology, information processing and communication and
competition.
202 b. Second-order change: Second-order change is also known as fundamental or quantum change.
In this type of change, organizations transform themselves radically and the new structure bears no
resemblance to the old one.
203 c. Generating motivation for change: David A. Nadler proposed three strategies to motivate
employees to embrace change; constantly make employees realize the shortcomings in the existing
system, employees should be given a role to play in the change process, and employees who
successfully adopt the desired behavior should be rewarded.
204 d. All the above:- Organizational resistance can be in the form of structural inertia, limited focus of
change, group inertia, threat to expertise,, threat to established power relationships and threat to
established resource allocations.
205 a. Innovation: Innovation involves introduction and application of new ideas and practices that
give useful results. Innovation in organizations can take place in aspects such as research and
development, marketing, and other business strategies, HR policies, the manufacturing process, the
recruitment process, and other processes.
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206 e. Fear of the unknown: People associate change with uncertainty. They fear the unknown and the
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insecurity resulting from it.
207 a. Change agents: The management must provide support to the employees in getting over their
fears and anxieties about the change process. They have to counsel them and offer them training in
new skills that the change program might entail.
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208 a. Organizational Culture: In innovative organizations, the vision, mission, and strategies of the
organization are clearly communicated to the employees. The organizational culture fosters an
environment that inspires and encourages people to be innovative and experiment with new ideas.
209 b. Emotion-focused strategies: some of the emotion focused strategies to reduce stress could be
relaxation, exercise, psychological strategies, recreation or companionship.
210 e. a & b: Strategies to cope with stress can be of two types. They are problem-focused or emotion-
focused.
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UNIT 22: FUNDAMENTALS OF ORGANIZATIONAL DEVELOPMENT
211 a. “A system-wide application of behavioral science knowledge to the planned development and
reinforcement of organizational strategies, structures, and processes for improving an organization‟s
effectiveness “was defined by Thomas G. Cummings and Christopher G. Worley in their book
Organizational Development and Change
212 b. T-groups: T-groups are formed consisting of 10 to 16 members. The groups have one or two
trainers who act as facilitators. Individual members of the group interact with each other and
analyze the behavior of others.
213 b. Laboratory training: In laboratory training the participants are grouped and allowed to interact
in an unstructured manner so that they get to understand each other.
214 d. ii, i, iv & iii: According to French and Bell, the action research model consists of the following
steps: making a preliminary diagnosis, collection of data from the client, providing feedback about
the data to the client, exploration of data by the client, development of an action plan by the client,
implementation of the action plan or taking action
215 a. OD as a normative – re-educative strategy of change: Three strategies for organizational
change given by R. Chin and K. Benne are the empirical-rational strategy, normative re-educative
strategy, and the power-coercive strategy.
216 d. OD process: Components of the OD process are the diagnostic, action and process-maintenance
components.
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217 b. Client-Consultant relationship: When an external OD consultant works for an organization and
managers change process and checks the implementation, the relationship that is built between the
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organization and the OD consultant is termed as Client-Consultant relationship.
218 c. Nature of client’s expertise: The OD consultant is asked for suggestions, the consultant should
not pose as a content expert by giving substantive advice. Instead, he/she should give a list of
options to the client so that the final decision is made by the client.
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219 b. Ethical dilemmas in OD consulting: OD consultant would be unethical if he conspires with

some employees of the organization to give a particular feedback against some persons in the
organization. And if the consultant compels employees to take action which they are not willing to
do or to share confidential information his/her behavior will be considered to be unethical.
220 a. Macrocosm: A team comprising the consultant and the key client working together to take action
and mold employee behavior so that team is a macrocosm for the organization for the OD process.
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UNIT 23: ORGANIZATIONAL DEVELOPMENT INTERVENTIONS
221 d. All the above: OD practitioners do not believe in power, control, and coercion. They attach
importance to the values of collaboration, confrontation, and participation.
222 b. Survey feedback: In the survey feedback method, the management provides a questionnaire to
the members of the entire organization or of a particular organizational unit. After collecting the
data, the management together with the participants discusses the changes that have to be made in
the organization.
223 b. Third-party peacemaking interventions: The third-party peacemaking intervention is a method
to resolve interpersonal conflicts. This method was developed by R.E. Walton. He proposed that for
conflicts to be resolved, confrontation should take place between the conflicting parties.
224 e. Force-field analysis: Force-field analysis is one of the oldest and most widely used interventions
for understanding problematic situations and planning corrective actions. This technique was
developed by Kurt Lewin.
225 d. Quality Circles: Quality circles are formed when employees belonging to a particular unit or
several units voluntarily form a group to discuss problems related to quality and to suggest
measures to improve quality.
226 b. Quality of work life (QWL): The employees of an organization voluntarily form groups called
QWL projects to discuss ways to improve the work environment in the organization. The
management also offers complete support to these groups and provides training in problem solving
methods.
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227 a. Three: Role analysis technique (RAT) is used to define the roles of members of a new team or
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clarify the ambiguity in the multiple roles of the members of a team. IshwarDayal and John Thomas
who designed RAT suggested three steps for implementation.
228 c. Management by objective (MBO): MBO is a technique where both superior and subordinate
together set goals. The subordinate is also given an opportunity to discuss his/her abilities and
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problems with the superior so that achievable goals can be set for him/her.
229 e. Role negotiation technique (RNT): The RNT was designed by Roger Harrison. It is based on
the principle that an individual is ready to make some compromises in order to resolve a conflict.
The consultant with the help of this technique negotiates between the conflicting parties and reaches
an agreement.
230 e. All the above: Six Sigma was pioneered by Bill Smith, an engineer at Motorola, in the 1980s. It
is a process improvement methodology according to which a process should not produce more than
3.4 defects per million opportunities. To implement this strategy, employees are trained as
Champions, Master Black Belts, Black Belts, and Green Belts.
83
UNIT 24: FUTURE OF ORGANIZATION DEVELOPMENT
231 d. Organizational development: Organizational development is a dynamic process which

addresses the problems that arise in an organization.
232 a. Leadership and values: The leadership style of the management influences the OD process of
an organization. The managers need to give importance to the roles and responsibilities of the
employees apart from the performance related with profitability of the organization for the success
of OD.
233 c. Knowledge about OD: The knowledge of the top level management about the OD processes has
an impact on the successful implementation of OD techniques. The top managers usually gain
knowledge about OD through books, journals, training programs, university courses, and
newspapers.
234 a. T-group: Laboratory training or the T-group training approach to OD led to the development of
training techniques.
235 c. Rediscovering and recording history: Maintaining records of OD intervention would provide
OD practitioners with a quick reference for finding solutions to organizational problems and
prevent loss of valuable time of OD practitioners in reinventing and rediscovering solutions.
236 b. Internet: The future of OD might be carried out through the internet without the need for the
practitioner to be physically present. That is, individuals can participate in these interventions
virtually.
I
237 a. The interdisciplinary nature: The interdisciplinary nature approach of OD will increase the
need for an integrated approach to planned change so as to bring about large-scale changes in the
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organizations.
238 d. OD to become part of organization’s operations: OD interventions could be integrated into
business processes such as strategic planning, product development, and order fulfillment and thus
facilitate quick changes in the business environment.
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239 a. Trying to get clarity regarding OD values: OD practitioners should have a clear idea about the
kind of interventions required for OD. Organizations approach OD practitioners to seek their help
in maintaining a balance between work pressure on employees and personal development efforts.
240. e. Quick diagnosis and Reduction in the time spent in data collection-The use of latest
information technology will help OD practitioners to complete data collection required in OD
interventions in lesser time and analysis of a problem can be done very fast.
84
The ICFAI Group
ICFAI was established in
1984 as a not-for-profit ICFAI practices the value of academic integrity at all
society with the broad levels.
objective of empowering
The ICFAI Group's culture of teaching and learning
citizens through world class
supports and fosters intellectual and personality
quality education. Since its
development among its graduating students. They carry
establishment, ICFAI Group
an attitude of ownership of their work. ICFAI Group strives
has made a significant mark
to make the students - DOERS. ICFAI Group system,
in the Indian educational
strongly believes in developing an 'entrepreneurial
field with a pan Indian
network and presence.
Subsequently, there was a
big leap when ICFAI Group
started its chain of business
schools (IBS) across India in
1995 to offer management
program. Since its
inception, IBS has been
consistently ranked among
the top ranked B-Schools of
India providing excellent
academic delivery and
I
infrastructure to its students
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and transforming them into
leaders for the future.
ICFAI Group has 3 Strategic
Institutional Units, the ICFAI
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Universities, the ICFAI

Business Schools and the Flexible Learning Programs
(Distance Mode). In all the programs offered across these
units, the emphasis is on adherence to academic rigor mindset' among its
and differentiated curriculum that bridges the industry graduating students.
–academia gap.
The alumni of ICFAI
Flexible and tech enabled learning also plays an Group are working in
important role in ICFAI's teaching methodology. The renowned companies
delivery takes place with the use of hi-tech learning world-wide. Collectively,
management system at campus programs and content ICFAI Group alumni
delivery for distance learning through online medium. contribute significantly to
the growth story of India.
Awards won by ICFAI Group

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Participants in flexible learning programs have limitations on the nature of the

What makes it relevant?

Ref. No. OB-WB-IFHE – 042015

The learning outcomes expected are:

2. Application based approach which enhances absorption and retention significantly.

3. Exposure to the current incidences and situations in relation to important concepts of

The Workbook format is also used for Assessment.

UNIT 2 FOUNDATIONS OF HUMAN RELATIONS AND ORGANIZATIONAL BEHAVIOR

UNIT 4 DIVERSITY AND ETHICS

UNIT 5 MANAGING COMMUNICATION

UNIT 6 INTERNATIONAL ORGANIZATIONAL BEHAVIOR

UNIT 7 PERSONALITY AND ATTITUDES

UNIT 12 EMPOWERMENT& PARTICIPATION

UNIT 13 CONFLICT, NEGOTIATION, & INTER GROUP BEHAVIOR

UNIT 14 FOUNDATIONS OF GROUP BEHAVIOR

UNIT 16 INFORMAL ORGANIZATIONS

UNIT 17 FOUNDATIONS OF ORGANIZATIONAL STRUCTURE

UNIT 18 DECISION MAKING

UNIT 19 POWER AND POLITICS

Companionship, Organizational Strategies to cope with stress: Problem-focused Strategies- Redesigning

UNIT 22 FUNDAMENTALS OF ORGANIZATIONAL DEVELOPMENT

UNIT 23 ORGANIZATIONAL DEVELOPMENT INTERVENTIONS

UNIT 24 FUTURE OF ORGANIZATIONAL DEVELOPMENT

Multiple Choice Questions

Unit 19: Power and Politics 49

UNIT 1: UNDERSTANDING ORGANIZATIONAL BEHAVIOR

e. Providing counseling sessions

UNIT 2: FOUNDATIONS OF HUMAN RELATIONS AND

a. Sociology b. Industrial Psychology

UNIT 3: UNDERSTANDING PEOPLE AND ORGANIZATIONS

21. ____________ helps us to understand organizational behavior.

c. Activities & People d. Activities

UNIT 4: DIVERSITY AND ETHICS

e. None of the above

UNIT 5: MANAGING COMMUNICATION

UNIT 6: INTERNATIONAL ORGANIZATIONAL BEHAVIOR

c. Public and private space d. People‟s perceptions

UNIT 7: PERSONALITY AND ATTITUDES

71. The elements of motivation are:

c. Effort, Performance, Rewards and Satisfaction

77. Attribution theory deals with

UNIT 10: LEARNING

UNIT 11: LEADERSHIP

c. Great Women d. Great study

c. University of Michigan Studies d. All the above

UNIT 12: EMPOWERMENT AND PARTICIPATION

UNIT 13: CONFLICT, NEGOTIATION & INTER GROUP BEHAVIOR

121. Conflicts can be classified into __________________

UNIT 14: FOUNDATIONS OF GROUP BEHAVIOR

UNIT 15: UNDERSTANDING WORK TEAMS

141.Work teams are increasingly becoming popular in ________________________.

e. All the above

UNIT 16: INFORMAL ORGANIZATIONS

UNIT 17: FOUNDATIONS OF ORGANIZATIONAL STRUCTURE

UNIT 18: DECISION MAKING

alternatives to guide him/her in decision-making.

UNIT 19: POWER AND POLITICS

UNIT 20: ORGANIZATIONAL CULTURE

c. Outcome d. All the above

UNIT 21: ORGANIZATIONAL CHANGE

UNIT 22: FUNDAMENTALS OF ORGANIZATIONAL DEVELOPMENT

211. Thomas G. Cummings and Christopher G. Worley defined OD as____________