UNIVERSITY OF TORONTO
Rotman Commerce
RSM260
Organizational Behaviour
Complete Study Bundle |
📚 PART 1 — Study Guide & Key Frameworks
📝 PART 2 — 60 Exam Q&A with Verified Answers & Rationales
✓ Verified Answers ✓ Graded A+ ✓ Updated Fall 2026
, PART 1 — STUDY GUIDE & KEY FRAMEWORKS
UNIT 1 — Foundations of Organizational Behaviour
Organizational Behaviour (OB) is the study of how individuals, groups, and structure affect and are
affected by behaviour within organizations. The goal is to apply this knowledge to improve
organizational effectiveness.
Key Definitions
• Organization: A consciously coordinated social unit composed of two or more people that
functions on a relatively continuous basis to achieve common goals
• OB: Investigates the impact of individuals, groups, and structure on behaviour within
organizations
• Effectiveness: The degree to which an organization achieves its goals
• Efficiency: The ratio of effective output to the input required to achieve it
OB Model — Three Levels of Analysis
Level Focus
Individual level Personality, perception, attitudes, motivation, decision-making
Group level Team dynamics, communication, leadership, conflict, negotiation
Organizational level Structure, culture, change, HR policies
UNIT 2 — Personality & Individual Differences
The Big Five Personality Traits (OCEAN)
Trait High scorer tends to be… Work relevance
Openness Creative, curious, adaptable Good at innovation roles
Conscientiousness Organized, reliable, goal-driven Strongest predictor of job performance
Extraversion Sociable, assertive, talkative Predicts sales & leadership emergence
Agreeableness Cooperative, trusting, empathetic Better team performance
Neuroticism Anxious, emotionally unstable Negatively predicts job performance
UNIT 3 — Perception & Attribution Theory
The Perception Process
• Perception: The process by which individuals organize and interpret sensory impressions to give
meaning to their environment
• Selective perception: Tendency to selectively interpret based on interests, background, and
attitudes
, • Halo effect: Drawing a general impression from a single characteristic
• Stereotyping: Judging someone based on group membership
• Projection: Attributing one's own characteristics to others
Attribution Theory (Kelley)
We explain behaviour by attributing it to internal causes (dispositional) or external causes
(situational).
Cue High → Internal attribution High → External
attribution
Distinctiveness Low (behaves same in all situations)
Consensus Low (others don't act the same way)
Consistency High (same behaviour over time)
Key Exam Trap: Fundamental Attribution Error = overestimating internal factors and
underestimating external factors when judging others' behaviour. Self-serving bias = opposite for our
own behaviour.
UNIT 4 — Motivation Theories
Maslow's Hierarchy of Needs
• Level 1 — Physiological: Food, water, shelter
• Level 2 — Safety: Job security, safe environment
• Level 3 — Social: Belonging, relationships at work
• Level 4 — Esteem: Recognition, achievement, status
• Level 5 — Self-actualization: Fulfilling full potential
Exam note: Lower-order needs (1–2) are satisfied externally; higher-order needs (3–5) are satisfied
internally.
Herzberg's Two-Factor Theory
Hygiene Factors (prevent dissatisfaction) Motivators (drive satisfaction)
Salary, company policy, supervision, working conditions, Achievement, recognition, responsibility, advancement,
job security growth
Expectancy Theory (Vroom)
Motivation = Expectancy × Instrumentality × Valence
• Expectancy: Belief that effort → performance (Can I do it?)
• Instrumentality: Belief that performance → reward (Will I get rewarded?)
• Valence: The value placed on the reward (Do I want it?)
If ANY of the three is zero, motivation = zero. This is the most commonly tested formula in RSM260
exams.
Rotman Commerce
RSM260
Organizational Behaviour
Complete Study Bundle |
📚 PART 1 — Study Guide & Key Frameworks
📝 PART 2 — 60 Exam Q&A with Verified Answers & Rationales
✓ Verified Answers ✓ Graded A+ ✓ Updated Fall 2026
, PART 1 — STUDY GUIDE & KEY FRAMEWORKS
UNIT 1 — Foundations of Organizational Behaviour
Organizational Behaviour (OB) is the study of how individuals, groups, and structure affect and are
affected by behaviour within organizations. The goal is to apply this knowledge to improve
organizational effectiveness.
Key Definitions
• Organization: A consciously coordinated social unit composed of two or more people that
functions on a relatively continuous basis to achieve common goals
• OB: Investigates the impact of individuals, groups, and structure on behaviour within
organizations
• Effectiveness: The degree to which an organization achieves its goals
• Efficiency: The ratio of effective output to the input required to achieve it
OB Model — Three Levels of Analysis
Level Focus
Individual level Personality, perception, attitudes, motivation, decision-making
Group level Team dynamics, communication, leadership, conflict, negotiation
Organizational level Structure, culture, change, HR policies
UNIT 2 — Personality & Individual Differences
The Big Five Personality Traits (OCEAN)
Trait High scorer tends to be… Work relevance
Openness Creative, curious, adaptable Good at innovation roles
Conscientiousness Organized, reliable, goal-driven Strongest predictor of job performance
Extraversion Sociable, assertive, talkative Predicts sales & leadership emergence
Agreeableness Cooperative, trusting, empathetic Better team performance
Neuroticism Anxious, emotionally unstable Negatively predicts job performance
UNIT 3 — Perception & Attribution Theory
The Perception Process
• Perception: The process by which individuals organize and interpret sensory impressions to give
meaning to their environment
• Selective perception: Tendency to selectively interpret based on interests, background, and
attitudes
, • Halo effect: Drawing a general impression from a single characteristic
• Stereotyping: Judging someone based on group membership
• Projection: Attributing one's own characteristics to others
Attribution Theory (Kelley)
We explain behaviour by attributing it to internal causes (dispositional) or external causes
(situational).
Cue High → Internal attribution High → External
attribution
Distinctiveness Low (behaves same in all situations)
Consensus Low (others don't act the same way)
Consistency High (same behaviour over time)
Key Exam Trap: Fundamental Attribution Error = overestimating internal factors and
underestimating external factors when judging others' behaviour. Self-serving bias = opposite for our
own behaviour.
UNIT 4 — Motivation Theories
Maslow's Hierarchy of Needs
• Level 1 — Physiological: Food, water, shelter
• Level 2 — Safety: Job security, safe environment
• Level 3 — Social: Belonging, relationships at work
• Level 4 — Esteem: Recognition, achievement, status
• Level 5 — Self-actualization: Fulfilling full potential
Exam note: Lower-order needs (1–2) are satisfied externally; higher-order needs (3–5) are satisfied
internally.
Herzberg's Two-Factor Theory
Hygiene Factors (prevent dissatisfaction) Motivators (drive satisfaction)
Salary, company policy, supervision, working conditions, Achievement, recognition, responsibility, advancement,
job security growth
Expectancy Theory (Vroom)
Motivation = Expectancy × Instrumentality × Valence
• Expectancy: Belief that effort → performance (Can I do it?)
• Instrumentality: Belief that performance → reward (Will I get rewarded?)
• Valence: The value placed on the reward (Do I want it?)
If ANY of the three is zero, motivation = zero. This is the most commonly tested formula in RSM260
exams.
