Chapter 1: Organizational Behavior and Key Competencies
TRUE/FALSE
1. In Learning from Experience: Indra Nooyi, the CEO of PepsiCo, said her father told him that
whatever anybody says or does, always assume positive intent.
ANS: T PTS: 1 DIF: Easy
NAT: AACSB Analytic | Creation of Value MSC: Recall
2. In Learning from Experience: Indra Nooyi, the CEO of PepsiCo, has seen that one of the ways to
inspire people is by having a vision that everyone can get behind.At PepsiCo, that vision is
“Performance with as Passion.”
ANS: F
Correct answer would be: “Performance with Purpose.”
PTS: 1 DIF: Easy NAT: AACSB Analytic | Creation of Value
MSC: Recall
3. Organizational behavior is the study of how organizations interact with one another in order to
get business done.
ANS: F
Organizational behavior is the study of individuals and groups within an organizational context,
and the study of internal processes and practices as they influence the effectiveness of
individuals, teams, and organizations.
PTS: 1 DIF: Easy NAT: AACSB Analytic | Creation of Value
MSC: Recall
4. Leadership is the process of developing ideas and a vision, living by values that support those
ideas and that vision, influencing others to embrace them in their own behaviors, and making
hard decisions about human and other resources.
ANS: T PTS: 1 DIF: Easy OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
5. A leader is someone who is in control of other people, and in today’s culture this person often
leads with command and control.
ANS: F
, A leader is a person who exhibits the key attributes of leadership—ideas, vision, values,
influencing others, and making tough decisions. In today’s world, leaders act less and less
through command and control, and more and more through changing people’s mindsets and
hence altering the way they behave.
PTS: 1 DIF: Moderate OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
6. A manager directs, controls, and plans the work of others and is responsible for results.
ANS: T PTS: 1 DIF: Easy OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
7. Leadership and management are the same thing.
ANS: F
A leader is a person who exhibits the key attributes of leadership—ideas, vision, values,
influencing others, and making tough decisions, whereas a manager directs, controls, and plans
the work of others and is responsible for results.
PTS: 1 DIF: Moderate OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
8. A competency is an interrelated set of perceptions, attitudes, and values that enable an employee
to provide value to the organization.
ANS: F
A competency is an interrelated cluster of knowledge, skills, and abilities needed by an individual
to be effective in most professional and managerial positions.
PTS: 1 DIF: Easy OBJ: 1-2
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
9. A competency is an interrelated cluster of knowledge, skills, and abilities needed by an individual
to be effective.
ANS: T PTS: 1 DIF: Easy OBJ: 1-2
NAT: AACSB Analytic | Individual Dynamics MSC: Recall
10. The seven key competencies are increasingly important to the effectiveness of virtually all
employees, not simply those in managerial and leadership roles.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-2
NAT: AACSB Analytic | Individual Dynamics MSC: Recall
,11. The ethics competency includes the knowledge, skills, and abilities to know what is legal or
illegal.
ANS: F
The ethics competency includes the knowledge, skills, and abilities to incorporate values and
principles that distinguish right from wrong in making decisions and choosing behaviors.
PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
12. The key attributes of the ethics competency include incorporating values and principles that
distinguish right from wrong on the basis of laws and regulations, the employer's rules of
conduct, demonstrating dignity and respect for others in working relationships, and demonstrating
honesty and openness in communication, limited only by legal, privacy, and competitive
considerations.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Comprehension
13. Ethics can be defined as the rules and values that differentiate legal from illegal behavior.
ANS: F
Ethics are the values and principles that distinguish right from wrong.
PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
14. Ethics are the values and principles that distinguish right from wrong.
ANS: T PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
15. An ethical dilemma occurs when an individual or team must make a decision quickly and cannot
take enough time to make an informed decision.
ANS: F
An ethical dilemma occurs when an individual or team must make a decision that involves
multiple values.
PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
, 16. An ethical dilemma doesn't simply involve choosing right over wrong because there may be
several competing values.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Comprehension
17. Ethical behavior can be difficult to define, especially in a global economy with its varied beliefs
and practices.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
18. In Ethics Competency, Robert A. Eckert, Chairman & CEO, Mattel, Inc., Robert states that
during Mattel’s crisis with dangerous toys a few years ago, he had to make sure he was very open
with the public on the steps Mattel was taking to correct the situation.
ANS: T PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
19. In Ethics Competency: Robert A. Eckert, Chairman & CEO, Mattel, Inc., Robert states that he
organized a team to find out who was responsible the product failures.
ANS: F
Robert says,”Placing blame is not only divisive, but also wastes valuable time when people
should be working together toward solutions. Leaders need to empower people and teams to
make decisions and set an ethical tone through example.”
PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
20. Ethical dilemmas always have a right and wrong answer.
ANS: F
Ethical dilemmas include situations in which there are no right or wrong answers.
PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Comprehension
21. The professional competency includes the knowledge, skills, and abilities to assess your own
strengths and weaknesses, set and pursue professional and personal goals, balance work and
personal life, and engage in new learning--including new or modified skills, behaviors, and
attitudes.
ANS: F
TRUE/FALSE
1. In Learning from Experience: Indra Nooyi, the CEO of PepsiCo, said her father told him that
whatever anybody says or does, always assume positive intent.
ANS: T PTS: 1 DIF: Easy
NAT: AACSB Analytic | Creation of Value MSC: Recall
2. In Learning from Experience: Indra Nooyi, the CEO of PepsiCo, has seen that one of the ways to
inspire people is by having a vision that everyone can get behind.At PepsiCo, that vision is
“Performance with as Passion.”
ANS: F
Correct answer would be: “Performance with Purpose.”
PTS: 1 DIF: Easy NAT: AACSB Analytic | Creation of Value
MSC: Recall
3. Organizational behavior is the study of how organizations interact with one another in order to
get business done.
ANS: F
Organizational behavior is the study of individuals and groups within an organizational context,
and the study of internal processes and practices as they influence the effectiveness of
individuals, teams, and organizations.
PTS: 1 DIF: Easy NAT: AACSB Analytic | Creation of Value
MSC: Recall
4. Leadership is the process of developing ideas and a vision, living by values that support those
ideas and that vision, influencing others to embrace them in their own behaviors, and making
hard decisions about human and other resources.
ANS: T PTS: 1 DIF: Easy OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
5. A leader is someone who is in control of other people, and in today’s culture this person often
leads with command and control.
ANS: F
, A leader is a person who exhibits the key attributes of leadership—ideas, vision, values,
influencing others, and making tough decisions. In today’s world, leaders act less and less
through command and control, and more and more through changing people’s mindsets and
hence altering the way they behave.
PTS: 1 DIF: Moderate OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
6. A manager directs, controls, and plans the work of others and is responsible for results.
ANS: T PTS: 1 DIF: Easy OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
7. Leadership and management are the same thing.
ANS: F
A leader is a person who exhibits the key attributes of leadership—ideas, vision, values,
influencing others, and making tough decisions, whereas a manager directs, controls, and plans
the work of others and is responsible for results.
PTS: 1 DIF: Moderate OBJ: 1-1
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
8. A competency is an interrelated set of perceptions, attitudes, and values that enable an employee
to provide value to the organization.
ANS: F
A competency is an interrelated cluster of knowledge, skills, and abilities needed by an individual
to be effective in most professional and managerial positions.
PTS: 1 DIF: Easy OBJ: 1-2
NAT: AACSB Analytic | Individual Dynamics MSC: Comprehension
9. A competency is an interrelated cluster of knowledge, skills, and abilities needed by an individual
to be effective.
ANS: T PTS: 1 DIF: Easy OBJ: 1-2
NAT: AACSB Analytic | Individual Dynamics MSC: Recall
10. The seven key competencies are increasingly important to the effectiveness of virtually all
employees, not simply those in managerial and leadership roles.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-2
NAT: AACSB Analytic | Individual Dynamics MSC: Recall
,11. The ethics competency includes the knowledge, skills, and abilities to know what is legal or
illegal.
ANS: F
The ethics competency includes the knowledge, skills, and abilities to incorporate values and
principles that distinguish right from wrong in making decisions and choosing behaviors.
PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
12. The key attributes of the ethics competency include incorporating values and principles that
distinguish right from wrong on the basis of laws and regulations, the employer's rules of
conduct, demonstrating dignity and respect for others in working relationships, and demonstrating
honesty and openness in communication, limited only by legal, privacy, and competitive
considerations.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Comprehension
13. Ethics can be defined as the rules and values that differentiate legal from illegal behavior.
ANS: F
Ethics are the values and principles that distinguish right from wrong.
PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
14. Ethics are the values and principles that distinguish right from wrong.
ANS: T PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
15. An ethical dilemma occurs when an individual or team must make a decision quickly and cannot
take enough time to make an informed decision.
ANS: F
An ethical dilemma occurs when an individual or team must make a decision that involves
multiple values.
PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
, 16. An ethical dilemma doesn't simply involve choosing right over wrong because there may be
several competing values.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Comprehension
17. Ethical behavior can be difficult to define, especially in a global economy with its varied beliefs
and practices.
ANS: T PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
18. In Ethics Competency, Robert A. Eckert, Chairman & CEO, Mattel, Inc., Robert states that
during Mattel’s crisis with dangerous toys a few years ago, he had to make sure he was very open
with the public on the steps Mattel was taking to correct the situation.
ANS: T PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
19. In Ethics Competency: Robert A. Eckert, Chairman & CEO, Mattel, Inc., Robert states that he
organized a team to find out who was responsible the product failures.
ANS: F
Robert says,”Placing blame is not only divisive, but also wastes valuable time when people
should be working together toward solutions. Leaders need to empower people and teams to
make decisions and set an ethical tone through example.”
PTS: 1 DIF: Moderate OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Recall
20. Ethical dilemmas always have a right and wrong answer.
ANS: F
Ethical dilemmas include situations in which there are no right or wrong answers.
PTS: 1 DIF: Easy OBJ: 1-3
NAT: AACSB Ethics | Individual Dynamics MSC: Comprehension
21. The professional competency includes the knowledge, skills, and abilities to assess your own
strengths and weaknesses, set and pursue professional and personal goals, balance work and
personal life, and engage in new learning--including new or modified skills, behaviors, and
attitudes.
ANS: F
