MBA 704 - KUNGU - WEEK 7 - CHAPTERS 11 & 12 FINAL
TEST 2026 QUESTIONS WITH CORRECT ANSWERS
GRADED A+
● Major theoretical explanations for group formation. Answer: a. George Homans b.
Theodore Newcomb classic balance theory c. exchange theory
● George Homan's Social Exchange Theory. Answer: i. Activities ii. Interactions (major
element) iii. Sentiments
● Theodore Newcomb's Classic Balance Theory. Answer: Persons are attracted to one
another based on similar attitudes toward commonly relevant objects and goals. Keeping a
balance until there is a disruption which will dissolve the relationship.
● Exchange theory. Answer: based on reward-cost outcomes of interaction. Rewards from
interactions gratify needs, whereas costs incur anxiety, frustration, embarrassment, or fatigue.
Propinquity, interaction, and common attitudes all have roles in exchange theory.
● Stages of Group Development. Answer: 1. Forming 2. Storming 3. Norming 4. Performing
5. Adjourning
● forming stage. Answer: Group members are not sure about purpose, structure, task and
leadership of the group.
● storming stage. Answer: Conflict and confrontation.
● norming stage. Answer: Settling into cooperation and collaboration, feeling of "we" is
established
● performing stage. Answer: Group is fully functional and devoted to effectively accomplish
the task.
● Adjourning Stage. Answer: End of the group once the objective is achieved, the group will
disintegrate and form a new one with new objectives.
● What are some functions of the informal organization?. Answer: i. Makes for a more
effective total system. ii. Lightens the workload on management iii. Fills in the gaps in
manager's abilities. iv. Provides a safety valve for employee emotions. v. Improves
, communication.
● Dysfunctions of Informal Organization. Answer: a. Norm violation and role ambiguity b.
Risky Shift c. Social Loafing
● Norm violation and role ambiguity dysfunction. Answer: (sexual harassment or theft,
lying spreading rumors, withholding effort and absenteeism). Employee is unsure about the
dictates of given situation, incomplete orders, inexperience. Role conflict might also be
present.
● risky shift. Answer: the tendency for groups to make riskier decisions than individuals
would
● social loafing. Answer: the tendency for people in a group to exert less effort when pooling
their efforts toward attaining a common goal than when individually accountable
● causes of social loafing. Answer: a. Lack of performance feedback within the group. b.
Tasks that are not intrinsically motivating c. Situations in which the performance of other will
cover for the reduced effort of others d. "Sucker effect" not wanting to do more than the
percepton of efford being given by others
● When is more probable for Social Loafing to occur ?. Answer: in large teams
● What is groupthink?. Answer: "a deterioration of mental efficiency, reality testing, and
moral judgment that results from in group pressures."
● Symptoms of groupthink include:. Answer: 1. Illusion of invulnerability, excessive
optimism and risk taking 2. Rationalizations by members to discount warnings. 3.
Unquestioned belief in groups inherited mortality. Ignores ethical or moral issues or stances.
4. Those who oppose the group are stereotyped as evil, weak and stupid. 5. Direct Pressure
on members who question the stereotyping. Loyal members do not question the direction in
which the group is heading. 6. Self-Censorship of any deviation from apparent group
consensus 7. Illusion of unanimity, silence is interpreted as consent. 8. Self-appointed mind
guards who protect the group from adverse information
● Teams in todays organizations. Answer: i. Shared leadership roles ii. Individual and
mutual accountability iii. Specific purpose iv. Collective work-products v. Encourages
open-ended, active problem-solving meetings. vi. Measures performance directly by
assessing collective work-products. vii. Discusses, decided and does real work.
● traditional work group. Answer: i. Has a strong leader ii. Individual accountability iii.
Purpose is the same as organization. iv. Individual work-products v. Runs efficient meetings.
TEST 2026 QUESTIONS WITH CORRECT ANSWERS
GRADED A+
● Major theoretical explanations for group formation. Answer: a. George Homans b.
Theodore Newcomb classic balance theory c. exchange theory
● George Homan's Social Exchange Theory. Answer: i. Activities ii. Interactions (major
element) iii. Sentiments
● Theodore Newcomb's Classic Balance Theory. Answer: Persons are attracted to one
another based on similar attitudes toward commonly relevant objects and goals. Keeping a
balance until there is a disruption which will dissolve the relationship.
● Exchange theory. Answer: based on reward-cost outcomes of interaction. Rewards from
interactions gratify needs, whereas costs incur anxiety, frustration, embarrassment, or fatigue.
Propinquity, interaction, and common attitudes all have roles in exchange theory.
● Stages of Group Development. Answer: 1. Forming 2. Storming 3. Norming 4. Performing
5. Adjourning
● forming stage. Answer: Group members are not sure about purpose, structure, task and
leadership of the group.
● storming stage. Answer: Conflict and confrontation.
● norming stage. Answer: Settling into cooperation and collaboration, feeling of "we" is
established
● performing stage. Answer: Group is fully functional and devoted to effectively accomplish
the task.
● Adjourning Stage. Answer: End of the group once the objective is achieved, the group will
disintegrate and form a new one with new objectives.
● What are some functions of the informal organization?. Answer: i. Makes for a more
effective total system. ii. Lightens the workload on management iii. Fills in the gaps in
manager's abilities. iv. Provides a safety valve for employee emotions. v. Improves
, communication.
● Dysfunctions of Informal Organization. Answer: a. Norm violation and role ambiguity b.
Risky Shift c. Social Loafing
● Norm violation and role ambiguity dysfunction. Answer: (sexual harassment or theft,
lying spreading rumors, withholding effort and absenteeism). Employee is unsure about the
dictates of given situation, incomplete orders, inexperience. Role conflict might also be
present.
● risky shift. Answer: the tendency for groups to make riskier decisions than individuals
would
● social loafing. Answer: the tendency for people in a group to exert less effort when pooling
their efforts toward attaining a common goal than when individually accountable
● causes of social loafing. Answer: a. Lack of performance feedback within the group. b.
Tasks that are not intrinsically motivating c. Situations in which the performance of other will
cover for the reduced effort of others d. "Sucker effect" not wanting to do more than the
percepton of efford being given by others
● When is more probable for Social Loafing to occur ?. Answer: in large teams
● What is groupthink?. Answer: "a deterioration of mental efficiency, reality testing, and
moral judgment that results from in group pressures."
● Symptoms of groupthink include:. Answer: 1. Illusion of invulnerability, excessive
optimism and risk taking 2. Rationalizations by members to discount warnings. 3.
Unquestioned belief in groups inherited mortality. Ignores ethical or moral issues or stances.
4. Those who oppose the group are stereotyped as evil, weak and stupid. 5. Direct Pressure
on members who question the stereotyping. Loyal members do not question the direction in
which the group is heading. 6. Self-Censorship of any deviation from apparent group
consensus 7. Illusion of unanimity, silence is interpreted as consent. 8. Self-appointed mind
guards who protect the group from adverse information
● Teams in todays organizations. Answer: i. Shared leadership roles ii. Individual and
mutual accountability iii. Specific purpose iv. Collective work-products v. Encourages
open-ended, active problem-solving meetings. vi. Measures performance directly by
assessing collective work-products. vii. Discusses, decided and does real work.
● traditional work group. Answer: i. Has a strong leader ii. Individual accountability iii.
Purpose is the same as organization. iv. Individual work-products v. Runs efficient meetings.
