MO221 Exam 1 Questions with Verified Answers Latest 2025-2026
What is Organizational Behavior (OB)?: - Answers The study of what people think, feel, do in +
around organizations
OB examines: - Answers - How employees behave, perceive, make decisions, and respond
emotionally
- How individuals and teams in organizations relate to each other and their counterparts in other
organizations
- How organizations interact with their external environments
What makes orgs successful? Even during disruption + change?
- According to the Fortune 2022 100 Best Companies to Work For® list, top companies
prioritized the following: - Answers - Employee well-being
- Inclusion
- Purpose
- Listening
- Care
A) In 2020, the best companies outperformed the market by ____
B) Why? Their Employees stayed _____ because they... - Answers A) 16.5%
B) engaged, trusted their leaders
OB is about... - Answers learning and practicing the concepts and principles that help you to
become an inclusive, trustworthy, & EFFECTIVE teammate + leader
What is an organization? - Answers Groups of people who work interdependently toward some
purpose
Organizations have varying structures based on the following contingencies: - Answers -
External environment
- Organizational size
- Technology
- Organizational strategy
2 elements of organizational structure that impact management: - Answers - Span of Control
,- Centralization
Span of control definition and types - Answers Span of control: the number of people directly
reporting to the next level above in the hierarchy
Types: narrow + wide
Narrow span of control: - Answers "tall structures" where few people report directly to a
manager
Wide span of control: - Answers "flat structures" where a manager has many direct reports
A) Organizations with a Narrow Span of Control (Taller structure) include:
B) Organizations that ARE/NOT highly regulated are more likely to have this type of structure.
Why do you think this is? - Answers A) General Electric, Wells-Fargo, Boston University, most
militaries + governments
B) ARE;
- Traditional hierarchies tend to have longer chains of command, which allows for more control
of processes (+ employees)
- but can mean that employees have less autonomy (which can be demotivating), + decision-
making
+ change tends to be relatively slow
A) Organizations with a Wide Span of Control (Flatter structure) include:
B) Why do you think organizations of today are moving more toward this type of structure? -
Answers A) Tesla, Whirlpool, Cisco, Pandora, Google, Apple
B) Flatter companies tend to value communication + collaboration (which is why this is a
popular structure at tech companies), which is possible w/out as many layers of management
between you + the CEO
- Companies are moving toward flatter structures (delayering companies) b/c of the quick
communication + collaboration that allows for the spread of ideas through orgs.
- However, the burden on managers tends to be greater w/ more direct reports
Centralization: - Answers the degree to which formal decision authority is held by a small
number of people (typically at the top of the organizational hierarchy)
Centralized organizations: - Answers have most decisions made by top management, and
, members often have "standard operating procedures" for decision-making, aimed at creating
efficiency
Decentralized organizations: - Answers disperse decision-making through the organization,
because senior executives have to/want to, + members often can give insights/innovation for
strategic management.
A) Organizations that are Centralized include:
B) Advantages:
C) Disadvantages - Answers A) Microsoft, Apple, and most start-ups, manufacturing firms, &
hotel chains
B) Advantages: clear chain of command, focused vision, reduced costs, quick decision-
implementation, improved work quality
C) Disadvantages: Bureaucratic leadership, remote control of work, work delays, weak employee
loyalty
A) Organizations that are Decentralized include:
B) Advantages
C) Disadvantages - Answers A) Johnson & Johnson, Amazon, Eventbrite, and Starbucks
B) More employee participation, innovation, problem-solving, flexibility, and agile strategies,
better communication
C) Unclear/undefined roles, job overlap, less efficiency
What is management? - Answers A process designed to achieve an organization's objectives by
using its resources effectively and efficiently in a changing environment
There are two basic activities of management: - Answers 1. Figuring out what to do often
despite uncertainty and an enormous amount of potentially relevant information
2. Getting things done through other people, despite having little direct control over most of
them
Approaches to management and how they impact employees:
McGregor's Theory X + Theory Y (1960)
A) Theory X managers assume:
B) Theory Y managers assume: C) The reality is that... - Answers A) Theory X managers assume:
What is Organizational Behavior (OB)?: - Answers The study of what people think, feel, do in +
around organizations
OB examines: - Answers - How employees behave, perceive, make decisions, and respond
emotionally
- How individuals and teams in organizations relate to each other and their counterparts in other
organizations
- How organizations interact with their external environments
What makes orgs successful? Even during disruption + change?
- According to the Fortune 2022 100 Best Companies to Work For® list, top companies
prioritized the following: - Answers - Employee well-being
- Inclusion
- Purpose
- Listening
- Care
A) In 2020, the best companies outperformed the market by ____
B) Why? Their Employees stayed _____ because they... - Answers A) 16.5%
B) engaged, trusted their leaders
OB is about... - Answers learning and practicing the concepts and principles that help you to
become an inclusive, trustworthy, & EFFECTIVE teammate + leader
What is an organization? - Answers Groups of people who work interdependently toward some
purpose
Organizations have varying structures based on the following contingencies: - Answers -
External environment
- Organizational size
- Technology
- Organizational strategy
2 elements of organizational structure that impact management: - Answers - Span of Control
,- Centralization
Span of control definition and types - Answers Span of control: the number of people directly
reporting to the next level above in the hierarchy
Types: narrow + wide
Narrow span of control: - Answers "tall structures" where few people report directly to a
manager
Wide span of control: - Answers "flat structures" where a manager has many direct reports
A) Organizations with a Narrow Span of Control (Taller structure) include:
B) Organizations that ARE/NOT highly regulated are more likely to have this type of structure.
Why do you think this is? - Answers A) General Electric, Wells-Fargo, Boston University, most
militaries + governments
B) ARE;
- Traditional hierarchies tend to have longer chains of command, which allows for more control
of processes (+ employees)
- but can mean that employees have less autonomy (which can be demotivating), + decision-
making
+ change tends to be relatively slow
A) Organizations with a Wide Span of Control (Flatter structure) include:
B) Why do you think organizations of today are moving more toward this type of structure? -
Answers A) Tesla, Whirlpool, Cisco, Pandora, Google, Apple
B) Flatter companies tend to value communication + collaboration (which is why this is a
popular structure at tech companies), which is possible w/out as many layers of management
between you + the CEO
- Companies are moving toward flatter structures (delayering companies) b/c of the quick
communication + collaboration that allows for the spread of ideas through orgs.
- However, the burden on managers tends to be greater w/ more direct reports
Centralization: - Answers the degree to which formal decision authority is held by a small
number of people (typically at the top of the organizational hierarchy)
Centralized organizations: - Answers have most decisions made by top management, and
, members often have "standard operating procedures" for decision-making, aimed at creating
efficiency
Decentralized organizations: - Answers disperse decision-making through the organization,
because senior executives have to/want to, + members often can give insights/innovation for
strategic management.
A) Organizations that are Centralized include:
B) Advantages:
C) Disadvantages - Answers A) Microsoft, Apple, and most start-ups, manufacturing firms, &
hotel chains
B) Advantages: clear chain of command, focused vision, reduced costs, quick decision-
implementation, improved work quality
C) Disadvantages: Bureaucratic leadership, remote control of work, work delays, weak employee
loyalty
A) Organizations that are Decentralized include:
B) Advantages
C) Disadvantages - Answers A) Johnson & Johnson, Amazon, Eventbrite, and Starbucks
B) More employee participation, innovation, problem-solving, flexibility, and agile strategies,
better communication
C) Unclear/undefined roles, job overlap, less efficiency
What is management? - Answers A process designed to achieve an organization's objectives by
using its resources effectively and efficiently in a changing environment
There are two basic activities of management: - Answers 1. Figuring out what to do often
despite uncertainty and an enormous amount of potentially relevant information
2. Getting things done through other people, despite having little direct control over most of
them
Approaches to management and how they impact employees:
McGregor's Theory X + Theory Y (1960)
A) Theory X managers assume:
B) Theory Y managers assume: C) The reality is that... - Answers A) Theory X managers assume:
