Key Exam Questions Key Topics That May Appear in the Exam: Evidence-Based Decision Making Organizational Behavior (OB) Methods of Knowing Method of Intuition Method of Experience Method of Authority Organizational Behavior (OB); Does Organizational Behavior Matter? Learning Objectives What are the two primary outcomes in studies of OB? What factors affect the two primary OB outcomes? What is the definition of “organizational behavior” (OB)? What is the role of theory in the scientific method? Why might firms that are good at OB tend to be more profitable?

How are correlations interpreted?

A study shows that the high turnover rate at a company is only caused by the domineering attitude of a middle manager. What criteria of causal inference does this example show?

The study was conducted in an open environment.

No alternative explanation exists for the correlation.

The presumed effect precedes the presumed cause in time.

The two variables are not correlated.

The sample size is large enough.

Which of the following correlations indicates a perfect statistical relationship between two variables?

-1

100

-100

Which of the following correlations indicates no statistical relationship between two variables?

-1

0.1

-0.1

Which of the following is an example of meta-analysis?

Yeeun used one study, which used a consistent measuring method, to determine the cause of employee stress.

Sosuke used one study, which combined different samples, to determine why customers buy a certain product.

Gail used two studies, each using the same samples and measures, to determine why sales of a product have declined.

Sergio combined several studies, each using the same measuring method, to determine why profitability has increased.

Fionn combined several studies, each using different kinds of samples and measures, to determine the cause of employee turnover.

You work for a company that manufactures jeans, and you have an idea about how cold weather correlates with buying jeans. If you were implementing the scientific method for this company, which of the following actions would you do first?

write a report showing how the data proves that more jeans sell in cold weather

predict that more of the company's jeans will sell in January than in July

collect data to prove that jeans will sell more in January than in July

distribute surveys to find out how cold weather affects customers

assert that cold weather makes people buy more jeans

Venia, who often relies on the method of authority, has to make an important decision about marketing a product. Which of the following would she most likely do?

hire an ad agency because she liked working with the agency before

hire an ad agency because her close friend works for the agency

hire an ad agency because many other companies have hired it

hire an ad agency because a survey showed it was effective

hire an ad agency because her boss recommended it

Choose the method that suggests people accept some belief because studies have tended to replicate that result using a series of samples, settings, and methods.

method of science

method of intuition

method of behavior

method of authority

method of experience

Riku, an HR manager, believes that his implementation of HR practices in the company is impeccable because he received the inputs for these practices from the CEO himself. Which of the following philosophies is he relying on?

method of science

method of intuition

method of behavior

method of authority

method of experience

Which of the following methods suggests that people hold firmly to some belief because it is consistent with their own observations?

method of science

method of intuition

method of behavior

method of authority

method of experience

________ is defined as a collection of assertions that specify how and why variables are related, as well as the conditions in which they should and should not be related.

Hypothesis

Information

Paradigm

Data

Theory

The Container Store, a retailer based out of Texas, wants to increase the motivation of its employees. Which of the following examples would most likely achieve this?

a performance-based incentive system for its employees in which workers' pay will be based on their productivity

a reduction of insurance benefits for employees who have been working at the company for less than five years

the implementation of a new computer system that will enable employees to do more work for the same pay

a more hands-on managerial style in which all employees would have to fill out time cards

the consolidation of two departments into one, thereby reducing overhead expenses

Gateway Corporation developed a new form of technology for which they hold a patent. This technology allowed them to significantly reduce the cost of production on their major product line. This resource is

simple.

complex.

inimitable.

hypothetical.

substitutable.

Which of the following is a primary individual outcome of interest to organizational behavior researchers according to the integrative model?

job performance

team processes

personality

culture

stress

OB research on job performance and individual characteristics draws primarily from studies in

managerial and organizational psychology.

industrial and organizational psychology.

economic and organizational sociology.

economic and managerial sociology.

industrial and economic psychology.

When a firm expands into a new product segment, it is known as

cartelization.

product recall.

diversification.

monopolization.

product divestment.

Which of the following takes the theories and principles studied in OB and explores the nuts and bolts applications of those principles in organizations?

human resource management

operations management

financial management

strategic management

economic research

The strength of a correlation can be inferred from the compactness of its scatterplot.

According to the resource-based view of organizations, a firm's resources include resources related to organizational behavior, such as the knowledge, ability, and wisdom of the workforce.

To counter the effects of a bad product, effective management of OB can help make the product get better, incrementally, over the long term.

What are the two primary outcomes in studies of OB?

The resource-based view of organizations states that people are valuable assets because their knowledge, skills, and abilities are rare and also because people are

incorrigible.

inimitable.

accessible.

adaptable.

infallible.

Which of the following shows employees' psychological responses to job demands that tax or exceed their capabilities?

job performance

leadership style

job satisfaction

ability

stress

Causal inferences means establishing that one variable really does cause another.

What factors affect the two primary OB outcomes?

Manon supports an evidence-based management style. Considering this, which of the following actions would she most likely take?

disregarding a casual inference that indicates the cause of employee dissatisfaction

taking the advice of a government agency on how to increase employee motivation

lessening the reliance on analytics to hire employees and instead relying more on intuition

transforming a human resources department by hiring more research and development experts

combining meta-analysis with her own experience to determine the cause of employee turnover

Ji-woo is interested in the effects of the choice of reward on employee motivation. She knows that there have been several studies done on this subject and compares their results looking for an average correlation. Ji-woo is conducting a

meta-analysis.

mediocre analysis.

medial analysis.

remedial analysis.

moderated analysis.

Which of these takes all the correlations found in studies of a particular relationship and calculates a weighted average of them?

alpha analysis

gamma analysis

meta-analysis

causal analysis

beta analysis

Ji-hu believes in making decisions based on the method of experience. Considering this, which of the following actions would he most likely take?

He would buy the Hellman espresso machine because the choice seems obvious.

He would buy the Almas espresso machine because his manager highly recommends it.

He would buy the Franceso espresso machine because research shows it is the most durable.

He would buy the Jones espresso machine because he liked his previous machine, which was made by Jones.

He would buy the Lucia espresso machine because surveys of the product show the highest customer approval.

You are a manager that uses the method of intuition to make decisions. Considering this, which of the following actions would you probably take?

Your hire more workers because it just makes sense.

You fire fifteen employees because your boss claims this action was necessary.

You recommend expanding your company into Canada because of survey reports.

You approve a budget for a new product lined based on extensive market research.

You lower your bid for a new project due of your history with a competitor who is also submitting a bid.

________ are written predictions that specify relations between variables.

Hypotheses

Verifications

Theories

Data

Collections

The scientific method requires that theories be used to inspire

verification.

hypotheses.

experience.

intuition.

auditing.

Ella believes that 360-degree performance review is ideal for her company because she recently read about a major survey of Fortune 100 companies that highlighted the effectiveness of this method. Which of the following philosophies is she relying on?

method of science

method of intuition

method of behavior

method of authority

method of experience

Which of the following are two of the methods by which people know things?

method of intuition and method of education

method of education and method of authority

method of experience and method of intuition

method of authority and method of economics

method of economics and method of education

According to the Rule of One-Eight, which of the following scenarios is the most common?

The CEO of Starbridge, Inc., read books about how putting people first build profits, but did not believe them.

The CEO of Energize, Inc., implemented comprehensive changes to put employees first, but ended this plan prematurely.

The CEO of LongRun, Inc., increased the benefits of employees, which was one of many suggested changes to put people first.

The CEO of ShoreIsland, Inc., made long-lasting changes that put employees first and, as a result, the company's profits soared.

The CEO of UpGrade, Inc., gave employees more responsibility over their work, but stopped this approach after only two months.

Which of the following scenarios would be the most invisible to competitors?

Mongo Films fires its CEO and hires a new one.

Sports Stuff, Ltd., lowers its prices on swimwear.

JTR, Ltd., opens a manufacturing plant in the Philippines.

Spotless, Inc., starts a new line of natural bathroom cleaners.

High Grade, Inc., hires a new middle-manager for its Boston office.

In which of the following scenarios does history create a business advantage?

Using its market research, Rise n'Shine devises the best-selling alarm clock to hit the market in the last 20 years.

To maintain a business advantage, Cindy's Cinnies keeps the recipe for their highly popular cinnamon rolls top secret.

Smooth Scent's new ad campaign gives this body lotion and cosmetics company a business advantage over competitors.

The first company to sell vacuum cleaners in the retail market, Suck It Up, uses its experience to maintain a business advantage.

HGT Enterprises and BDO, Inc., both West Coast real estate development firms, have been fierce competitors for more than 20 years.

You are a new employee who wants to impress upon your manager how valuable you are to the company. According to the research-based view, which of the following actions should you take?

play it safe and avoid suggesting ideas that might seem risky

agree with whatever your manager says, even if you disagree

make sure you arrive on time each work day and attend all the meetings

act in a friendly way with your co-workers and contribute to team discussions

make unique, significant contributions to the company that most employees could not achieve

You are the CEO of a business who wants to use an integrative model of OB. Which of the following actions would you take to implement this?

use one work team, but do not appoint a specified leader

have employees work alone but occasionally report to a manager

divide your employees into three work teams, each headed by a different leader

have employees work closely with two other people but without forming a team

use a work team for the managers, but have the other employees work individually

Magnus has come to mistrust the company he works for in recent months. Which of the following examples most likely caused this?

Magnus's efforts to get a new vending machine installed failed.

Magnus learned that his employer uses unethical advertising practices.

Magnus became disappointed when his employer did not promote a close friend.

Magnus had to fire an employee who had worked for his company for many years.

Magnus proposed a policy that was partially successful in increasing company revenue.

Which of the following examples shows an effective way of dealing with the international element of OB?

Nancy adjusted her approach with an employee from South Korea because he had different motivations than U.S. employees.

Hinata felt ashamed about discussing with her manager the difficulties of adjusting to American business practices.

Larry assumed the policies he used for his Chicago office would work equally as well in the new Tokyo branch.

Sean decided to ignore the international aspect of his work team because he did not want to play favorites.

Mario believes the principles of OB management are consistent in countries throughout the world.

Culture, trust, teamwork, and reputation are termed ________ because it is not always clear how they came to develop, though it is clear which organizations do possess them.

socially complex

vague correlations

natural structures

evidence-based resources

associative structures

Culture, teamwork, trust, and reputation are examples of

socially complex resources.

easy-to-develop resources.

evidence-based resources.

associative structures.

natural structures.

Organizational ________ is the organizational mechanism in the integrative model that captures the way things are in an organization.

structure

ability

leadership

performance

culture

Which of the following captures the specific actions that leaders take to influence others at work?

leader influence and negotiation

leader styles and behaviors

leader cultural values

leader personality

leader power

Which of the following group mechanisms summarizes how individuals attain authority over others?

leader personality

leader cultural values

leader responsibilities

leader styles and behaviors

leader power and negotiation

Which of the following is an example of a group mechanism?

ability

motivation

trust, justice, and ethics

organizational commitment

team characteristics and diversity

In the integrative model, ability-which includes cognitive abilities, emotional skills, and physical abilities-is classified as a(n)

organizational mechanism.

individual characteristic.

individual mechanism.

individual outcome.

group outcome.

According to the integrative model, job satisfaction is a(n)

organizational mechanism.

individual mechanism.

individual outcome.

group mechanism.

group outcome.

Research on satisfaction, emotions, and team processes found in OB draws heavily from studies in

organizational sociology.

industrial psychology.

managerial sociology.

economic sociology.

social psychology.

Which of the following focuses on the product choices and industry characteristics that affect an organization's profitability?

process management

strategic management

operations management

organizational behavior

human resource management

Which of the following attributes have been identified as some of the worst behaviors exhibited by coworkers?

resisting even beneficial change

being first to arrive and last to leave

getting a job done without being managed

complaining about anything and everything

feeling an attachment to an employer for the long haul

________ is a field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations.

Organizational behavior

Strategic management

Economic research

Resource management

Financial management

Understanding correlation is important because OB questions are yes or no in nature.

A useful way to understand correlation between two variables is to look at a scatterplot.

Theory is defined as a collection of assertions-both verbal and symbolic-that specify how and why variables are related, as well as the conditions in which they should (and should not) be related.

The integrative model of OB was designed with the Rule of One-Eighth in mind.

OB research suggests that there are several OB practices that each can increase profitability; that is, they serve as magic bullets for organizations.

Firms that undergo an IPO typically have shorter histories and need an infusion of cash to grow or introduce some new technology.

Resources like culture, teamwork, trust, and reputation are termed socially complex because it is not always clear which organizations do (and do not) possess them, although it is clear how they came to develop.

Like individual characteristics, group mechanisms shape satisfaction, stress, motivation, trust, and learning.

Much of what we know about organizational behavior is considered universal and culture free, showing that managing people faces the same challenges everywhere.

The two primary outcomes of interest to OB researchers, employees, and managers are job performance and job satisfaction.

What is the definition of "organizational behavior" (OB)?

Which of the following explains the term causal inferences?

proving that two variables are correlated

making sure the sample size is adequate enough

explaining why one variable is not correlated to another

establishing that one variable truly does result in another

analyzing a situation and understanding what went wrong

Correlations can be positive or negative and can range from

0 to +1

-1 to +1

0 to +100

-10 to 0

-10 to +10

The resource-based view of organizations suggests that a resource is more valuable when it is

simple.

complex.

inimitable.

expensive.

substitutable.

The resource-based view suggests that a resource is more valuable when it is

technologically advanced.

socially complex.

complex.

simple.

rare.

The level of creativity demonstrated by Yosef's co-workers is rare. Therefore, according to the ________, these employees are valuable to the firm.

resource-based view of organizations

integrative theory of organizational behavior

normative selection model

economic theory of the firm

performance-based theory of organizations

In the integrative model, which organizational mechanism captures shared knowledge about the rules, norms, and values that shape employee attitudes and behaviors?

organizational leadership

organizational structure

organizational culture

organizational ability

job satisfaction

Which of these individual mechanisms captures the energetic forces that drive employees' work efforts?

job performance

motivation

personality

ability

stress

Of the following, which is a primary individual outcome according to the integrative model?

team cohesion

job satisfaction

cultural awareness

personality adaptability

organizational commitment

OB primarily uses models from ________ to understand motivation, learning, and decision making.

marketing

economics

psychology

sociology

anthropology

Authority-based management argues that scientific findings should form the foundation for management education.

What is the role of theory in the scientific method?

Which of these is one of the conditions necessary to establish causal inferences?

The presumed cause follows the presumed effect in time.

Multiple alternative explanations exist for the correlation.

Factors other than the variables in question could create causation.

The two variables are correlated.

The sample size is large enough.

In organizational behavior research, a correlation of +1 between two variables is considered

weak.

inconclusive.

arbitrary.

irrelevant.

perfect.

________ summarize the statistical relationships between variables.

Hypotheses

Correlations

Observations

Collections

Theories

Of the following methods, which suggests that people hold firmly to some belief because some respected official, agency, or source has said it is so?

method of science

method of intuition

method of behavior

method of authority

method of experience

Chiara decided to increase the price of her merchandise because it seemed to be the obvious thing to do. Which of the following philosophies is he relying on?

method of science

method of intuition

method of behavior

method of authority

method of experience

Top Shelf Enterprises is conducting its annual performance review. Which of the following employees would Top Shelf view as being the most inimitable?

Juana, who has had difficulty getting along with members of her work team

Bert, who has often been late to meetings and complains about his work load

Takumi, who devised a new component that increased company sales by 25 percent

Liam, who has been a steady and reliable worker for the company for over five years

Lotte, who has brilliant suggestions but often fails to follow them all the way through

The scientific method begins with

theory.

auditing.

paradigm.

hypotheses.

verification.

According to the resource-based view of organizations, people are inimitable because they

are necessary for building co-workers' morale.

are necessary for the production of goods and/or services.

do their work with more precision than a machine could achieve.

create lasting changes in the organization that can be replicated if necessary.

make many small decisions that cannot be replicated by other organizations.

Which of the following statements about the resource-based view of organizations is accurate?

It suggests that resources are valuable because they are plentiful.

It describes what makes resources capable of creating long-term profits for the firm.

It suggests that inimitable resources are of lesser value to an organization.

A firm's resources include resources related to individual behavior.

It suggests that the value of resources depends on a single factor.

Which of the following individual characteristics illustrated in the integrative model of OB reflect the various traits and tendencies that describe how people act, with commonly studied traits including extraversion, conscientiousness, and collectivism?

trust, justice, and ethics

learning and decision making

personality and cultural values

job performance and organizational commitment

organizational structure and organizational culture

As Isabella gains experience, she obtains job knowledge and uses this knowledge to manage her employees effectively. Which individual mechanism is referred to in this statement?

learning and decision making

trust, justice, and ethics

personality and ability

team processes

motivation

Which of the following reflect(s) the degree to which employees feel that their company does business with fairness, honesty, and integrity?

trust, justice, and ethics

personality and ability

job satisfaction

team processes

motivation

Which of the following is one of the two primary goals managers have for their employees?

optimization of stock price

rationalization of job structure

maximization of job performance

obedience to organizational rules and regulations

utilization of rational decision-making techniques

A correlation describes the statistical relationship between three variables.

Job satisfaction has no effect on job performance, but it does affect organizational commitment.

Learning and decision making deal with how employees gain job knowledge and how they use that knowledge to make accurate judgments on the job.

The theories and concepts found in OB are drawn from two disciplines: human resources management and strategic management.

Why might firms that are good at OB tend to be more profitable?

Which of the following argues that scientific findings should form the foundation for management education?

resource-based view

contingency approach

traditional management

management by objectives

evidence-based management

In the 1960s, a popular ad stated that Blondes have more fun! This is an example of

a positive correlation.

negative causation.

a proven fact.

verification.

data.

Who is considered to be the originator of the scientific method?

Jeffrey Pfeffer

Frederick Taylor

Charles Darwin

Sir Francis Bacon

Adam Smith

According to the Rule of One-Eighth,

at least 88 percent of organizations will do everything necessary to put people first and thereby build profits.

at best, 12 percent of organizations will actually do what is required to build profits by putting people first.

75 percent of organizations won't believe the connection between how they manage their people and the profits they earn.

38 percent of the organizations try to make a single change to solve their problems.

one in eight organizations miserably fails at making the people-to-profit connection.

Which organizational mechanism illustrated by the integrative model dictates how the units within the firm link to other units?

organizational leadership

organizational structure

organizational culture

organizational ability

organization size

According to the integrative model of organizational behavior, motivation, trust, justice, and ethics are

organizational mechanisms.

individual mechanisms.

individual outcomes.

group mechanisms.

group outcomes.

Strategic management focuses on the product choices and industry characteristics that affect an organization's profitability.

A study shows that people who chew bubble gum have more cavities. Which criteria of casual inference does this example show?

The two variables are not correlated.

Multiple alternative explanations exist for the correlation.

The presumed cause precedes the presumed effect in time.

The study was conducted in an open environment.

The sample size is large enough.