MBA 704 ORGANIZATIONAL BEHAVIOR
MODULE 2 EXAM PREP 150 Q AND A
WITH DETAILED RATIONALES AND
BOLD ANSWERS ULTIMATE STUDY
GUIDE A+ GUARANTEED:
MBA 704: Organizational Behavior – Module 2 Exam
Prep (Questions 1-50) Note: Module 2 typically covers
Organizational Culture, Motivation, Perception & Decision
Making, Organizational Learning, and Organizational
Design/Structure.
1. According to Edgar Schein’s model of organizational
culture, which of the following represents the deepest,
most unconscious level of culture that is the most
resistant to change? A. Artifacts and visible creations B.
Espoused values and stated beliefs C. Basic underlying
assumptions D. Formal rules and standard operating
procedures Correct Answer: C Rationale: Schein’s
model posits that basic underlying assumptions are the
deepest, taken-for-granted beliefs that unconsciously guide
behavior and perception. Unlike visible artifacts or stated
espoused values, these assumptions are rarely questioned and
are highly resistant to change.
2. In Vroom’s Expectancy Theory of motivation, the
belief that a given level of effort will lead to a specific
level of performance is known as: A. Valence B.
Instrumentality C. Expectancy D. Equity Correct Answer:
C Rationale: Expectancy is the individual's belief that their
effort will result in the desired level of performance.
,Instrumentality is the belief that performance will lead to a
specific reward, and valence is the value the individual places
on that reward.
3. Which organizational structure is characterized by
high specialization, rigid departmentalization, a clear
chain of command, narrow spans of control, and high
centralization? A. Organic structure B. Mechanistic structure
C. Matrix structure D. Network structure Correct Answer:
B Rationale: A mechanistic structure is highly formalized
and centralized, resembling a traditional bureaucracy. This
contrasts with an organic structure, which is flexible,
decentralized, and has low formalization.
4. When a manager attributes an employee’s poor
performance to a lack of effort (an internal factor)
rather than considering that the employee was given
faulty equipment (an external factor), the manager is
committing which perceptual error? A. The halo effect B.
The fundamental attribution error C. Self-serving bias D.
Selective perception Correct Answer: B Rationale: The
fundamental attribution error is the tendency to
underestimate the influence of external factors and
overestimate the influence of internal or personal factors when
making judgments about the behavior of others.
5. In the context of organizational learning, what is the
primary difference between single-loop and double-
loop learning? A. Single-loop learning involves changing the
organization’s underlying norms and policies, while double-
loop learning only corrects errors without changing the core
objectives. B. Single-loop learning corrects errors by modifying
actions to match existing policies and goals, whereas double-
loop learning questions and modifies the underlying norms,
policies, and objectives themselves. C. Single-loop learning is
driven by top management, while double-loop learning is
,driven exclusively by frontline employees. D. There is no
difference; the terms are used interchangeably in knowledge
management. Correct Answer: B Rationale: Single-
loop learning is like a thermostat that turns the heat on or off
to maintain a set temperature. Double-loop learning questions
whether the set temperature is the right one to begin with,
leading to transformative change in organizational norms and
strategies.
6. According to Herzberg’s Two-Factor Theory, which
of the following is considered a "motivator" that
actively increases job satisfaction? A. Company policies
and administration B. Salary and fringe benefits C.
Achievement and recognition D. Job security and working
conditions Correct Answer: C Rationale: Herzberg
classified factors into "hygiene factors" (like salary, policies,
and working conditions) which prevent dissatisfaction but do
not motivate, and "motivators" (like achievement, recognition,
and the work itself) which actively drive job satisfaction and
motivation.
7. What is the primary disadvantage of a matrix
organizational structure? A. It lacks the flexibility to
respond to environmental changes. B. It creates a dual chain of
command, which can lead to power struggles, confusion, and
role conflict for employees. C. It isolates departments,
preventing cross-functional collaboration. D. It requires a very
wide span of control, making supervision impossible.
Correct Answer: B Rationale: The defining feature of a
matrix structure is the dual chain of command (e.g., reporting
to both a functional manager and a project manager). This
often leads to role ambiguity, power struggles, and conflict
over resource allocation.
8. In Adams’ Equity Theory, if an employee perceives
that their outcome-to-input ratio is less favorable than
, that of a referent other, they are most likely to
experience: A. Overpayment inequity and guilt B.
Underpayment inequity and anger, leading to reduced effort or
a demand for higher rewards C. Increased intrinsic motivation
to prove their worth D. A state of cognitive dissonance that
improves their job performance Correct Answer: B
Rationale: Equity theory states that individuals compare
their input/outcome ratios to others. Perceived underpayment
inequity creates tension (anger), which the employee will try
to reduce by decreasing inputs (e.g., slacking off), increasing
outcomes (e.g., asking for a raise), or changing the referent.
9. Which of the following is the correct sequence of the
three stages of organizational socialization? A.
Encounter, Metamorphosis, Prearrival B. Prearrival,
Encounter, Metamorphosis C. Metamorphosis, Prearrival,
Encounter D. Prearrival, Metamorphosis, Encounter Correct
Answer: B Rationale: The socialization process consists of
Prearrival (everything learned before joining), Encounter (the
new employee sees what the organization is truly like and
confronts potential mismatches), and Metamorphosis (the
employee adjusts and internalizes the organization’s norms).
10. The concept of "bounded rationality" in decision-
making suggests that: A. Managers always make perfectly
optimal decisions by analyzing all available information. B.
Decision-makers construct simplified models that extract the
essential features from problems without capturing all their
complexity, leading to "satisficing" rather than maximizing. C.
Rationality is strictly bounded by the legal and ethical
constraints of the organization. D. Groups always make more
rational decisions than individuals due to diverse perspectives.
Correct Answer: B Rationale: Proposed by Herbert
Simon, bounded rationality acknowledges that human
cognitive limits, time constraints, and incomplete information
MODULE 2 EXAM PREP 150 Q AND A
WITH DETAILED RATIONALES AND
BOLD ANSWERS ULTIMATE STUDY
GUIDE A+ GUARANTEED:
MBA 704: Organizational Behavior – Module 2 Exam
Prep (Questions 1-50) Note: Module 2 typically covers
Organizational Culture, Motivation, Perception & Decision
Making, Organizational Learning, and Organizational
Design/Structure.
1. According to Edgar Schein’s model of organizational
culture, which of the following represents the deepest,
most unconscious level of culture that is the most
resistant to change? A. Artifacts and visible creations B.
Espoused values and stated beliefs C. Basic underlying
assumptions D. Formal rules and standard operating
procedures Correct Answer: C Rationale: Schein’s
model posits that basic underlying assumptions are the
deepest, taken-for-granted beliefs that unconsciously guide
behavior and perception. Unlike visible artifacts or stated
espoused values, these assumptions are rarely questioned and
are highly resistant to change.
2. In Vroom’s Expectancy Theory of motivation, the
belief that a given level of effort will lead to a specific
level of performance is known as: A. Valence B.
Instrumentality C. Expectancy D. Equity Correct Answer:
C Rationale: Expectancy is the individual's belief that their
effort will result in the desired level of performance.
,Instrumentality is the belief that performance will lead to a
specific reward, and valence is the value the individual places
on that reward.
3. Which organizational structure is characterized by
high specialization, rigid departmentalization, a clear
chain of command, narrow spans of control, and high
centralization? A. Organic structure B. Mechanistic structure
C. Matrix structure D. Network structure Correct Answer:
B Rationale: A mechanistic structure is highly formalized
and centralized, resembling a traditional bureaucracy. This
contrasts with an organic structure, which is flexible,
decentralized, and has low formalization.
4. When a manager attributes an employee’s poor
performance to a lack of effort (an internal factor)
rather than considering that the employee was given
faulty equipment (an external factor), the manager is
committing which perceptual error? A. The halo effect B.
The fundamental attribution error C. Self-serving bias D.
Selective perception Correct Answer: B Rationale: The
fundamental attribution error is the tendency to
underestimate the influence of external factors and
overestimate the influence of internal or personal factors when
making judgments about the behavior of others.
5. In the context of organizational learning, what is the
primary difference between single-loop and double-
loop learning? A. Single-loop learning involves changing the
organization’s underlying norms and policies, while double-
loop learning only corrects errors without changing the core
objectives. B. Single-loop learning corrects errors by modifying
actions to match existing policies and goals, whereas double-
loop learning questions and modifies the underlying norms,
policies, and objectives themselves. C. Single-loop learning is
driven by top management, while double-loop learning is
,driven exclusively by frontline employees. D. There is no
difference; the terms are used interchangeably in knowledge
management. Correct Answer: B Rationale: Single-
loop learning is like a thermostat that turns the heat on or off
to maintain a set temperature. Double-loop learning questions
whether the set temperature is the right one to begin with,
leading to transformative change in organizational norms and
strategies.
6. According to Herzberg’s Two-Factor Theory, which
of the following is considered a "motivator" that
actively increases job satisfaction? A. Company policies
and administration B. Salary and fringe benefits C.
Achievement and recognition D. Job security and working
conditions Correct Answer: C Rationale: Herzberg
classified factors into "hygiene factors" (like salary, policies,
and working conditions) which prevent dissatisfaction but do
not motivate, and "motivators" (like achievement, recognition,
and the work itself) which actively drive job satisfaction and
motivation.
7. What is the primary disadvantage of a matrix
organizational structure? A. It lacks the flexibility to
respond to environmental changes. B. It creates a dual chain of
command, which can lead to power struggles, confusion, and
role conflict for employees. C. It isolates departments,
preventing cross-functional collaboration. D. It requires a very
wide span of control, making supervision impossible.
Correct Answer: B Rationale: The defining feature of a
matrix structure is the dual chain of command (e.g., reporting
to both a functional manager and a project manager). This
often leads to role ambiguity, power struggles, and conflict
over resource allocation.
8. In Adams’ Equity Theory, if an employee perceives
that their outcome-to-input ratio is less favorable than
, that of a referent other, they are most likely to
experience: A. Overpayment inequity and guilt B.
Underpayment inequity and anger, leading to reduced effort or
a demand for higher rewards C. Increased intrinsic motivation
to prove their worth D. A state of cognitive dissonance that
improves their job performance Correct Answer: B
Rationale: Equity theory states that individuals compare
their input/outcome ratios to others. Perceived underpayment
inequity creates tension (anger), which the employee will try
to reduce by decreasing inputs (e.g., slacking off), increasing
outcomes (e.g., asking for a raise), or changing the referent.
9. Which of the following is the correct sequence of the
three stages of organizational socialization? A.
Encounter, Metamorphosis, Prearrival B. Prearrival,
Encounter, Metamorphosis C. Metamorphosis, Prearrival,
Encounter D. Prearrival, Metamorphosis, Encounter Correct
Answer: B Rationale: The socialization process consists of
Prearrival (everything learned before joining), Encounter (the
new employee sees what the organization is truly like and
confronts potential mismatches), and Metamorphosis (the
employee adjusts and internalizes the organization’s norms).
10. The concept of "bounded rationality" in decision-
making suggests that: A. Managers always make perfectly
optimal decisions by analyzing all available information. B.
Decision-makers construct simplified models that extract the
essential features from problems without capturing all their
complexity, leading to "satisficing" rather than maximizing. C.
Rationality is strictly bounded by the legal and ethical
constraints of the organization. D. Groups always make more
rational decisions than individuals due to diverse perspectives.
Correct Answer: B Rationale: Proposed by Herbert
Simon, bounded rationality acknowledges that human
cognitive limits, time constraints, and incomplete information
