Organizational Behavior
Final Exam Review
Questions & Solutions
2025
©2025
, Question 1: Leadership in a Dynamic Environment
Scenario: In a technology company facing rapid innovation, a leader
wants to inspire employees to challenge the status quo and embrace
creative thinking. Which leadership style is most effective in this
environment?
A. Transactional Leadership
B. Transformational Leadership
C. Autocratic Leadership
D. Laissez‑faire Leadership
ANS: B
Rationale: Transformational leadership focuses on inspiring change,
motivating employees by articulating a compelling vision, and fostering
an atmosphere where innovation is encouraged—all critical in a dynamic,
innovation‐driven environment.
---
Question 2: Motivational Theories
Scenario: A manager who wants to understand why employees have
different needs and priorities reviews a classic theory that ranks human
needs from basic physiological needs up to self‑actualization. Which
theory does this describe?
A. Herzberg’s Two‑Factor Theory
B. McClelland’s Theory of Needs
C. Maslow’s Hierarchy of Needs
D. Expectancy Theory
ANS: C
Rationale: Maslow’s Hierarchy of Needs outlines five levels of needs
(physiological, safety, social, esteem, self‑actualization), which help
explain varying employee motivations.
©2025
,---
Question 3: Expectancy Theory Components
Scenario: According to expectancy theory, employee motivation
depends on three factors: the belief that effort will lead to performance
(expectancy), the belief that performance will be rewarded
(instrumentality), and the reward’s value (valence). Which component
addresses the value of the reward?
A. Expectancy
B. Instrumentality
C. Valence
D. Equity
ANS: C
Rationale: Valence is defined as the perceived attractiveness (or value)
of the reward associated with an outcome, making it a key factor in
motivating behavior.
---
Question 4: Groupthink Dynamics
Scenario: A senior management team makes a risky strategic decision
without adequately considering alternative viewpoints, largely because
dissenting opinions were not voiced. This situation best demonstrates
which of the following phenomena?
A. Social Loafing
B. Cognitive Dissonance
C. Groupthink
D. Satisficing
ANS: C
Rationale: Groupthink occurs when cohesive groups suppress dissent
and prioritize harmony over critical evaluation, leading to suboptimal
decisions.
©2025
, ---
Question 5: Bounded Rationality in Decision Making
Scenario: A project manager selects the first solution that meets the
minimum acceptable criteria rather than evaluating all possible options.
Which decision-making concept does this behavior best exemplify?
A. Maximising
B. Satisficing
C. Incrementalism
D. Heuristics
ANS: B
Rationale: Satisficing is a concept from bounded rationality where
decision-makers choose an option that is “good enough” rather than
optimizing, given the constraints of speed, information, or time.
---
Question 6: Change Management Models
Scenario: When planning an organisational change, a manager follows a
three‑step process: unfreezing existing behaviors, implementing the
change, and establishing stability once the change has been made. Which
model does this process represent?
A. Kotter’s 8‑Step Model
B. Lewin’s Change Model
C. The McKinsey 7‑S Framework
D. ADKAR Model
ANS: B
Rationale: Lewin’s Change Model describes a three‑step process
(unfreeze, change, refreeze) that helps organisations transition efficiently
during change.
---
©2025
Final Exam Review
Questions & Solutions
2025
©2025
, Question 1: Leadership in a Dynamic Environment
Scenario: In a technology company facing rapid innovation, a leader
wants to inspire employees to challenge the status quo and embrace
creative thinking. Which leadership style is most effective in this
environment?
A. Transactional Leadership
B. Transformational Leadership
C. Autocratic Leadership
D. Laissez‑faire Leadership
ANS: B
Rationale: Transformational leadership focuses on inspiring change,
motivating employees by articulating a compelling vision, and fostering
an atmosphere where innovation is encouraged—all critical in a dynamic,
innovation‐driven environment.
---
Question 2: Motivational Theories
Scenario: A manager who wants to understand why employees have
different needs and priorities reviews a classic theory that ranks human
needs from basic physiological needs up to self‑actualization. Which
theory does this describe?
A. Herzberg’s Two‑Factor Theory
B. McClelland’s Theory of Needs
C. Maslow’s Hierarchy of Needs
D. Expectancy Theory
ANS: C
Rationale: Maslow’s Hierarchy of Needs outlines five levels of needs
(physiological, safety, social, esteem, self‑actualization), which help
explain varying employee motivations.
©2025
,---
Question 3: Expectancy Theory Components
Scenario: According to expectancy theory, employee motivation
depends on three factors: the belief that effort will lead to performance
(expectancy), the belief that performance will be rewarded
(instrumentality), and the reward’s value (valence). Which component
addresses the value of the reward?
A. Expectancy
B. Instrumentality
C. Valence
D. Equity
ANS: C
Rationale: Valence is defined as the perceived attractiveness (or value)
of the reward associated with an outcome, making it a key factor in
motivating behavior.
---
Question 4: Groupthink Dynamics
Scenario: A senior management team makes a risky strategic decision
without adequately considering alternative viewpoints, largely because
dissenting opinions were not voiced. This situation best demonstrates
which of the following phenomena?
A. Social Loafing
B. Cognitive Dissonance
C. Groupthink
D. Satisficing
ANS: C
Rationale: Groupthink occurs when cohesive groups suppress dissent
and prioritize harmony over critical evaluation, leading to suboptimal
decisions.
©2025
, ---
Question 5: Bounded Rationality in Decision Making
Scenario: A project manager selects the first solution that meets the
minimum acceptable criteria rather than evaluating all possible options.
Which decision-making concept does this behavior best exemplify?
A. Maximising
B. Satisficing
C. Incrementalism
D. Heuristics
ANS: B
Rationale: Satisficing is a concept from bounded rationality where
decision-makers choose an option that is “good enough” rather than
optimizing, given the constraints of speed, information, or time.
---
Question 6: Change Management Models
Scenario: When planning an organisational change, a manager follows a
three‑step process: unfreezing existing behaviors, implementing the
change, and establishing stability once the change has been made. Which
model does this process represent?
A. Kotter’s 8‑Step Model
B. Lewin’s Change Model
C. The McKinsey 7‑S Framework
D. ADKAR Model
ANS: B
Rationale: Lewin’s Change Model describes a three‑step process
(unfreeze, change, refreeze) that helps organisations transition efficiently
during change.
---
©2025
