CHAPTER 1—ORGANIZATIONAL BEHAVIOUR AND OPPORTUNITY

MULTIPLE CHOICE

	1.	What is involved in the study of organizational behaviour?
a.	psychosocial actions, individual behaviour, and organizational structure	
b.	psychosocial actions, interpersonal behaviour, and group processes	
c.	interpersonal behaviour, group dynamics in organizations, and work design	
d.	individual behaviour, the structure of the organization, and group processes	

ANS:	D	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Remember

	2.	Which topic area studies individual behaviour and group dynamics in organizational settings?
a.	organizational development	
b.	organization theory	
c.	organizational behaviour	
d.	organization design	

ANS:	C	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Remember

	3.	What are the “clockworks” and “snake pit” metaphors illustrating about organizations?
a.	the orderly idealized view of organizational behaviour	
b.	the view of the organization versus the view of the individual	
c.	the conflicts, stress, and struggles in organizations	
d.	the confusion of the work in organizations	

ANS:	B	PTS:	1	REF:	p. 3	OBJ:	LO1
BLM:	Higher Order		

	4.	Which is an example of the snake pit metaphor or the “dark side”?
a.	a rational, logical approach to work	
b.	working in teams	
c.	workplace violence	
d.	human behaviour in times of change	

ANS:	C	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Higher Order		

	5.	Psychology is the study of the science of human behaviour. What discipline is sociology the science of?
a.	social circumstances	
b.	individuals	
c.	society	
d.	environmental forces	

ANS:	C	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Higher Order		

	6.	Which independent discipline evolved from the disciplines of psychology, sociology, engineering, anthropology, management, and medicine?
a.	organizational understanding	
b.	organizational perspective	
c.	organizational behaviour	
d.	organizational research	

ANS:	C	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Remember

	7.	The internal perspective of human behaviour has resulted in a range of motivational theories. What does this perspective imply?
a.	similarity among individuals	
b.	conflict among individuals	
c.	individuals are best understood by external forces	
d.	individuals are best understood from inside	

ANS:	D	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Higher Order		

	8.	A manager states that Cheryl is an outstanding employee because she has a high need for achievement. What perspective is the manager using to explain Cheryl’s behaviour?
a.	cultural	
b.	internal	
c.	interactive	
d.	external	

ANS:	B	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Higher Order		

	9.	Why did Katz, Kahn, and Leavitt establish the open system framework?
a.	to better understand organizations	
b.	to better understand the individual	
c.	to better understand individual behaviour and group processes	
d.	to better understand the structural dimensions of organizations	

ANS:	A	PTS:	1	REF:	p. 6	OBJ:	LO1
BLM:	Remember

	10.	Which statement best captures Kurt Lewin’s explanation for human behaviour?
a.	It is a function of the individual personality and preferences for leadership style.	
b.	It is a function of culture and the systemic properties of the organization.	
c.	It is a function of the consequences of compliant and deviant behaviour within social groups.	
d.	It is a function of the person and the environment.	

ANS:	D	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Remember

	11.	Which discipline includes human behaviour?
a.	engineering	
b.	psychology	
c.	anthropology	
d.	sociology	

ANS:	B	PTS:	1	REF:	p. 4	OBJ:	LO1
BLM:	Remember

	12.	Which discipline includes culture and the study of learned behaviour?
a.	psychology	
b.	management	
c.	anthropology	
d.	sociology	

ANS:	C	PTS:	1	REF:	p. 5	OBJ:	LO1
BLM:	Remember

	13.	Which discipline focuses on performance standards to shape goal-setting practices?
a.	anthropology	
b.	engineering	
c.	sociology	
d.	psychology	

ANS:	B	PTS:	1	REF:	p. 5	OBJ:	LO1
BLM:	Remember

	14.	Which discipline supports organizational behaviour in our understanding of the cultural implications of organizations?
a.	psychology	
b.	medicine	
c.	anthropology	
d.	sociology	

ANS:	C	PTS:	1	REF:	p. 5	OBJ:	LO1
BLM:	Higher Order		

	15.	Which discipline demonstrated that the modern corporation could be considered a unit of analysis, emphasizing design, implementation, and the coordination of administrative and organization systems?
a.	psychology	
b.	management	
c.	anthropology	
d.	sociology	

ANS:	B	PTS:	1	REF:	p. 5	OBJ:	LO1
BLM:	Higher Order		

	16.	What distinguishes medicine from psychology?
a.	the study of the individual	
b.	the study of society	
c.	health and wellness programs	
d.	the study of design	

ANS:	C	PTS:	1	REF:	p. 5	OBJ:	LO1
BLM:	Higher Order		

	17.	How does the discipline of organizational behaviour distinguish itself from other disciplines?
a.	by emphasizing absolutes	
b.	by emphasizing the situation	
c.	by emphasizing the organization	
d.	by emphasizing the organizational system	

ANS:	B	PTS:	1	REF:	p. 5	OBJ:	LO1
BLM:	Higher Order		

	18.	Which behaviour is supported by having a positive attitude, asking questions, listening to the answers, and being committed to success?
a.	change	
b.	denial	
c.	supportive	
d.	internal	

ANS:	A	PTS:	1	REF:	p. 6	OBJ:	LO2
BLM:	Remember

	19.	Dorian has started a cultural shift at his organization in quality processes. Which type of reaction will he most likely face in the early stages?
a.	rigid and reactive	
b.	open and responsive	
c.	angry and defiant	
d.	emotional and reactive	

ANS:	A	PTS:	1	REF:	p. 5	OBJ:	LO2
BLM:	Higher Order		

	20.	Where does organizational behaviour occur?
a.	the group context	
b.	the organizational context	
c.	the external environment context	
d.	the individual context	

ANS:	B	PTS:	1	REF:	p. 6	OBJ:	LO3
BLM:	Remember

	21.	When contrasting Six Sigma to TQM, executive ownership in Six Sigma can be compared to TQM’s self-directed work teams. What element of TQM can be compared to Six Sigma’s business results oriented philosophy?
a.	cross-functional	
b.	quality oriented	
c.	self-directed	
d.	quality initiated	

ANS:	B	PTS:	1	REF:	p. 11	OBJ:	LO6
BLM:	Remember

	22.	During a learning activity, mastery of basic objective knowledge takes place. What will happen next?
a.	development of specific skills and abilities	
b.	application of knowledge and skills	
c.	remembering of basic objective knowledge	
d.	memorization	

ANS:	A	PTS:	1	REF:	p. 13	OBJ:	LO7
BLM:	Higher Order		

	23.	Where is an organization’s task reflected?
a.	input materials	
b.	structure	
c.	human resources	
d.	mission or purpose	

ANS:	D	PTS:	1	REF:	p. 6	OBJ:	LO3
BLM:	Remember

	24.	What converts inputs to outputs in an open system?
a.	task structure	
b.	robots	
c.	technology	
d.	borrowed financial resources	

ANS:	C	PTS:	1	REF:	p. 6	OBJ:	LO3
BLM:	Remember

	25.	What represents the core technology of a post-secondary educational institution?
a.	library, laboratories, classrooms, and computer equipment	
b.	registration and billing systems	
c.	athletic programs	
d.	student brain power	

ANS:	A	PTS:	1	REF:	p. 6	OBJ:	LO3
BLM:	Higher Order		

	26.	Starbucks Canada is the main competitor to Tim Hortons. What part of an organization does this represent?
a.	labour market	
b.	transformation technology	
c.	external task environment	
d.	formal structure	

ANS:	C	PTS:	1	REF:	p. 7	OBJ:	LO3
BLM:	Higher Order		

	27.	What is the term for using a wide range of tools, knowledge, and/or techniques to transform inputs into outputs?
a.	task environment	
b.	structure	
c.	technology	
d.	mission	

ANS:	C	PTS:	1	REF:	p. 6	OBJ:	LO3
BLM:	Remember

	28.	What is the term for an organization’s suppliers, customers, and regulatory agencies?
a.	market	
b.	general environment	
c.	task environment	
d.	political economy	

ANS:	C	PTS:	1	REF:	p. 7	OBJ:	LO3
BLM:	Remember

	29.	What is represented by the hiring of new staff and the purchase of material?
a.	outputs	
b.	throughputs	
c.	inputs	
d.	transformations	

ANS:	C	PTS:	1	REF:	p. 7	OBJ:	LO3
BLM:	Higher Order		

	30.	What is best reflected by beliefs and assumptions about people, work, and the organization?
a.	social surface	
b.	informal organization	
c.	overt organization	
d.	formal organization	

ANS:	B	PTS:	1	REF:	p. 8	OBJ:	LO4
BLM:	Remember

	31.	Which of the following is an example of a covert organization?
a.	a friendship/relationship between two employees	
b.	a job description	
c.	a hierarchical superior–subordinate authority relationship	
d.	a workflow sequence between two departments	

ANS:	A	PTS:	1	REF:	p. 8	OBJ:	LO4
BLM:	Higher Order		

	32.	What did the Hawthorne Studies uncover?
a.	viewing an organization as clockworks	
b.	the importance of the informal organization and its impact on productivity	
c.	delegating authority downward and throughout the organization	
d.	the workflow and scheduling of work for production efficiency	

ANS:	B	PTS:	1	REF:	p. 8	OBJ:	LO4
BLM:	Remember

	33.	What is the foundation of the Canadian economy?
a.	goods sector	
b.	manufacturing sector	
c.	foreign trade	
d.	domestic trade	

ANS:	C	PTS:	1	REF:	p. 9	OBJ:	LO5
BLM:	Remember

	34.	What change force is demonstrated by the arrival of the retail store Target to Canada?
a.	process management	
b.	politics	
c.	global competition	
d.	quality	

ANS:	C	PTS:	1	REF:	p. 9	OBJ:	LO6
BLM:	Higher Order		

	35.	What are the four challenges related to change for managers in contemporary organizations?
a.	globalization, technology, religiosity, and ethics	
b.	globalization, workforce diversity, ethics and character, and technology	
c.	globalization, demography, diversity, and ethics	
d.	globalization, technology, diversity, and employee attitudes	

ANS:	B	PTS:	1	REF:	p. 9	OBJ:	LO6
BLM:	Remember

	36.	Which organization recently went on record to the public stating that it lost focus and stopped listening to its customers?
a.	General Motors	
b.	Enron	
c.	Fannie Mae	
d.	Toyota	

ANS:	D	PTS:	1	REF:	p. 10	OBJ:	LO6
BLM:	Remember

	37.	What must organizations respond to for success in global competition?
a.	changes in information technology	
b.	changes in wage structure	
c.	changes in demography	
d.	ethnic, religious, and gender diversity	

ANS:	D	PTS:	1	REF:	p. 9	OBJ:	LO6
BLM:	Higher Order		

	38.	What is a significant aspect of total quality management (TQM)?
a.	the use of computers	
b.	employee-driven suggestion systems	
c.	continuous improvement and attention to customer needs	
d.	the suboptimization of resource allocation	

ANS:	C	PTS:	1	REF:	p. 11	OBJ:	LO6
BLM:	Remember

	39.	Company XYZ uses quantitative data to predict cost savings. Which approach to quality management is company XYZ using?
a.	the Shanin system	
b.	Six Sigma	
c.	TQM	
d.	Taguchi’s method	

ANS:	B	PTS:	1	REF:	p. 11	OBJ:	LO6
BLM:	Higher Order		

	40.	Which of the following applies to the Six Sigma philosophy for companywide quality improvement?
a.	improving quality within the outsourcing process	
b.	decision making based on qualitative data	
c.	customer-driven approach	
d.	decreased inputs	

ANS:	C	PTS:	1	REF:	p. 11	OBJ:	LO6
BLM:	Higher Order		

	41.	Which statement best applies to total quality management (TQM)?
a.	Quality is machine driven with quality improvements resulting from use of robotic equipment.	
b.	Quality is an employee-oriented philosophy required by quality engineers.	
c.	Quality is the responsibility of specialists who randomly perform quality checks on items as they leave the assembly line.	
d.	Quality is a customer-oriented philosophy with important implications for virtually all aspects of organizational behaviour.	

ANS:	D	PTS:	1	REF:	p. 11	OBJ:	LO6
BLM:	Remember

	42.	Managing organizational behaviour in a turbulent environment is challenging. Globalization, workforce diversity, and technological innovation are three factors that contribute to this challenge. What is the fourth factor?
a.	job analysis	
b.	employee compensation	
c.	customer satisfaction	
d.	moral and ethical behaviour	

ANS:	D	PTS:	1	REF:	p. 12	OBJ:	LO6
BLM:	Remember

	43.	Martha uses her knowledge of organizational behaviour principles at work. What is she demonstrating?
a.	learning	
b.	skill development	
c.	subjective knowledge	
d.	essential skills	

ANS:	B	PTS:	1	REF:	p. 12	OBJ:	LO7
BLM:	Higher Order		

	44.	Alex told his supervisor about the inconsistencies between the new product and the old. What is he demonstrating?
a.	critical thinking	
b.	job performance	
c.	subjective knowledge	
d.	organizational reality	

ANS:	A	PTS:	1	REF:	p. 13	OBJ:	LO7
BLM:	Higher Order		

	45.	How is objective knowledge developed in any field of study?
a.	through basic and applied research	
b.	through past practices and training	
c.	through experience	
d.	through a review of the relevant literature	

ANS:	A	PTS:	1	REF:	p. 13	OBJ:	LO7
BLM:	Remember

	46.	What is an important advantage of the application of knowledge and skills for understanding organizational behaviour?
a.	experiential learning	
b.	rote memorization	
c.	imitating others	
d.	reading	

ANS:	A	PTS:	1	REF:	p. 14	OBJ:	LO7
BLM:	Remember

	47.	What is the relationship between abductive reasoning and design thinking?
a.	passively accepting the direction of others with more knowledge	
b.	designing a new solution without relying on the past	
c.	designing a solution that uses critical thinking and a process orientation	
d.	not experimenting with new ideas and information	

ANS:	B	PTS:	1	REF:	p. 15	OBJ:	LO8
BLM:	Higher Order		

	48.	The Human Resource Manager of the organization considers certain skills necessary to be successful. Which skills is she/he looking for in new employees?
a.	resource management, oral communication, computer use, and numeracy	
b.	resource management, thinking skills, computer skills, and oral communication	
c.	thinking skills, computer and document use, and oral communication	
d.	resource management, reading mathematics, communication, and critical thinking	

ANS:	C	PTS:	1	REF:	p. 13	OBJ:	LO7
BLM:	Higher Order		

	49.	What makes developing skills different from acquiring objective knowledge?
a.	structured practice and feedback	
b.	deduction	
c.	empirical testing	
d.	induction	

ANS:	A	PTS:	1	REF:	p. 13	OBJ:	LO7
BLM:	Remember

TRUE/FALSE

	1.	Role set, norms, and intragroup and intergroup behavioural dynamics are key aspects in the field of psychology.

ANS:	F	PTS:	1	REF:	p. 4

	2.	Organizational behaviour is considered a blended discipline.

ANS:	T	PTS:	1	REF:	p. 4

	3.	A change initiative often results in failure.

ANS:	T	PTS:	1	REF:	p. 6

	4.	The study of individual differences is the main focus of anthropology.

ANS:	F	PTS:	1	REF:	p. 5

	5.	Management involves the coordination of activities and human resources for the accomplishment of organization goals.

ANS:	T	PTS:	1	REF:	p. 5

	6.	It is often how we behave in the midst of change that determines whether change will fail or result in success.

ANS:	T	PTS:	1	REF:	p. 6

	7.	Early research with individuals, groups, and organizations in the midst of environmental change found that change is often experienced as a threat, which leads to a reliance on well-learned and dominant forms of behaviour.

ANS:	T	PTS:	1	REF:	p. 5

	8.	In the midst of change, people often become rigid and reactive rather than open and responsive.

ANS:	T	PTS:	1	REF:	p. 5

	9.	A complete understanding of organizational behaviour requires only an understanding of the organizational context within which human behaviour is acted out.

ANS:	F	PTS:	1	REF:	p. 6

	10.	A business firm’s interaction with the environment is a characteristic of an open system.

ANS:	T	PTS:	1	REF:	p. 6

	11.	The informal organization is the unofficial part of the system.

ANS:	T	PTS:	1	REF:	p. 8

	12.	The hierarchy of authority or chain of command is an important feature of the informal organization.

ANS:	F	PTS:	1	REF:	p. 8

	13.	Global competition is a leading force driving change at work.

ANS:	T	PTS:	1	REF:	p. 9

	14.	Total quality management is an employee-oriented philosophy of management.

ANS:	F	PTS:	1	REF:	p. 10

	15.	Total quality management is a total dedication to continuous improvement.

ANS:	T	PTS:	1	REF:	p. 10

	16.	The study and management of organizational behaviour is primarily an art rather than a science.

ANS:	F	PTS:	1	REF:	p. 4

	17.	Skill development is facilitated by structured practice and feedback.

ANS:	T	PTS:	1	REF:	p. 13

	18.	Organizational behaviour is an applied discipline where a student is trained in organizational behaviour principles.

ANS:	F	PTS:	1	REF:	p. 15

	19.	A manager who applies the design thinking approach will be relying on past successes.

ANS:	F	PTS:	1	REF:	p. 15

MATCHING

Match the following:
a.	The applied science of energy and matter	
b.	The science of human behaviour	
c.	The science of human-learned behaviour and study of organizational culture	
d.	A discipline concerned with the study of organizations	
e.	The science of society and study of groups	

	1.	Psychology

	2.	Anthropology

	3.	Management

	4.	Engineering

	5.	Sociology

	1.	ANS:	B	PTS:	1	REF:	p. 4-5

	2.	ANS:	C	PTS:	1	REF:	p. 4-5

	3.	ANS:	D	PTS:	1	REF:	p. 4-5

	4.	ANS:	A	PTS:	1	REF:	p. 4-5

	5.	ANS:	E	PTS:	1	REF:	p. 4-5

Match the following:
a.	Dedication to continuous improvement and meeting customer demands	
b.	Research results or scientific information	
c.	Learning and mastery of physical and social abilities	
d.	The primary concern for managers in the 21st century	
e.	Knowledge of results	

	6.	Skill Development

	7.	Objective Knowledge

	8.	Total Quality

	9.	Feedback

	10.	Change

	6.	ANS:	C	PTS:	1	REF:	p. 12-13

	7.	ANS:	B	PTS:	1	REF:	p. 12-13

	8.	ANS:	A	PTS:	1	REF:	p. 12-13

	9.	ANS:	E	PTS:	1	REF:	p. 12-13

	10.	ANS:	D	PTS:	1	REF:	p. 12-13

Match the following:
a.	Economic activity outside of the firm	
b.	An organization’s primary concern, goal, and/or reason for existence	
c.	Tools, equipment, and procedures for transforming inputs into outputs	
d.	An organization that receives inputs from the environment and releases outputs to the environment	
e.	The result of an organization’s conversion process, i.e., products, services	
f.	The specific setting within which organizational behaviour is enacted	

	11.	Technology

	12.	Open System

	13.	Environment

	14.	Task

	15.	Output

	16.	Organizational Context

	11.	ANS:	C	PTS:	1	REF:	p. 7-8

	12.	ANS:	D	PTS:	1	REF:	p. 7-8

	13.	ANS:	A	PTS:	1	REF:	p. 7-8

	14.	ANS:	B	PTS:	1	REF:	p. 7-8

	15.	ANS:	E	PTS:	1	REF:	p. 7-8

	16.	ANS:	F	PTS:	1	REF:	p. 7-8

ESSAY

	1.	Explain why it is important to study organizational behaviour.

ANS:	
Of the four principal ingredients (task, technology, structure, and people) of an organization, employees are the most difficult to manage and change. Individuals display numerous differences, group norms can influence productivity, and leaders can fail. Motivation, leadership, and group dynamics are very difficult to understand. Greater understanding of these behavioural phenomena can enhance one’s managerial effectiveness.

PTS:	1	REF:	p. 5-6	OBJ:	LO6

	2.	Briefly identify the four phases Six Sigma uses to tackle problems.

ANS:	
(1) measure, (2) analyze, (3) improve, and (4) control

PTS:	1	REF:	p. 11	OBJ:	LO6

	3.	Identify the major reasons why managing organizational behaviour will be challenging during changing times.

ANS:	
Reasons include:
1) the increasing globalization of organizations’ operating territory 
2) the increasing diversity of organizational workforces 
3) the continuing demand for higher levels of moral and ethical behaviour at work
4) continuing technological innovation

PTS:	1	REF:	p. 12	OBJ:	LO 6

	4.	What is the difference between objective knowledge and skill knowledge?

ANS:	
Objective knowledge is the information gained from research and scholarly activity. Answers to scientific questions resulting from research studies form the knowledge base for effectively managing organizations. Skill development refers to the practice and feedback associated with mastering behavioural abilities necessary for successful management.

PTS:	1	REF:	p. 12-13	OBJ:	LO7

	5.	In addition to basic enabling skills, Human Resources and Skills Development Canada identified nine essential skills necessary to be successful for work, learning, and life. Briefly identify four of these skills.

ANS:	
The nine were identified through research and are needed to be successful in most types of work and life. The nine are:
1) reading text
2) document use
3) numeracy
4) writing
5) oral communication
6) working with others
7) continuous learning
8) thinking skills
9) computer use

While the skills are used in different degrees and at different levels of complexity in different types of work, they are all needed. All these skills are used in the study of organizational behaviour.

PTS:	1	REF:	p. 13	OBJ:	LO 7

	6.	Briefly identify the major drivers of change in the current work environment.

ANS:	
Change is driven by:
1) the increasing globalization of organizations’ operating territory
2) the increasing diversity of organizational workforces
3) the continuing demand for higher levels of moral and ethical behaviour at work
4) continuing technological innovation

PTS:	1	REF:	p. 12	OBJ:	LO6

	7.	Provide an example of a business firm as an open system.

ANS:	
An open system gathers or receives inputs from its environment, transforms these inputs through application of technology, and provides a finished product to the environment or marketplace. A Heinz food processing plant purchases raw tomatoes, onions, and other vegetables from the environment. It then mixes and cooks these ingredients and converts them into ketchup. The ketchup is bottled, packaged, and shipped to the marketplace.

PTS:	1	REF:	p. 6-7	OBJ:	LO3

	8.	Distinguish between informal and formal organizations. Are they complementary or contradictory?

ANS:	
The formal organization consists of positions, departments, organization levels, and the authority and lines of communication that link organization parts and people together. The personal relationships and friendships between two or more organizational members constitute an informal organization. The formal and informal can coexist, be mutually reinforcing, or be in conflict. The task of the manager is to be aware of the informal and try to manage the situation so that the informal supports and furthers the goals of the formal organization.

PTS:	1	REF:	p. 8	OBJ:	LO4