Business Essentials, Canadian Edition, 9e (Ebert)

Chapter 9 Motivating, Satisfying, and Leading Employees

9.1 Multiple Choice Questions

1) Organizational citizenship refers to

A) employee behaviour that contributes to the organization's bottom line.
B) behaviour of employees who make a positive overall contribution to the organization.
C) those behaviours that are always easily defined and measured.
D) those behaviours that detract from organizational performance.
E) an employee who refuses to work overtime.
Answer: B
Diff: 2 Type: MC Page Ref: 184
Skill: Knowledge
Objective: 9.1

2) Counterproductive behaviours include all of the following except

A) absenteeism.
B) turnover.
C) theft.
D) emotionality.
E) sexual harassment.
Answer: D
Diff: 1 Type: MC Page Ref: 184
Skill: Comprehension
Objective: 9.1

3) What is the meaning of the term "turnover" when dealing with people in the organization?
A) Turnover measures the departure of employees from the organization.
B) Turnover measures the rate at which the finished goods inventory is sold during the year.
C) Turnover refers to the mental attitude employees have about their job.
D) Turnover is based on the number of grievances submitted by employees.
E) Turnover measures the profitability of the firm per employee.
Answer: A
Diff: 1 Type: MC Page Ref: 184
Skill: Comprehension
Objective: 9.1

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4) Agreeableness, emotionality, and extroversion are all part of
A) EQ.
B) emotional intelligence.
C) personality.
D) attitude.
E) organizational commitment.
Answer: C
Diff: 1 Type: MC Page Ref: 185
Skill: Knowledge
Objective: 9.2

5) Self-awareness, empathy, and social skills are all part of

A) attitudes.
B) emotional intelligence.
C) personality.
D) self-esteem.
E) organizational citizenship.
Answer: B
Diff: 1 Type: MC Page Ref: 185
Skill: Knowledge
Objective: 9.2

6) Individuals with an internal locus of control believe that they

A) can control others as a result of their own internal strength of character.
B) can control what happens to them.
C) cannot control what happens to them.
D) have a higher IQ than their co-workers.
Answer: B
Diff: 1 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

7) John believes that power and status differences are important issues in social systems such as
organizations. John is most likely talking about
A) authoritarianism.
B) self-efficacy.
C) Machiavellianism.
D) locus of control.
E) self-esteem.
Answer: A
Diff: 1 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

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8) Machiavellianism refers to behaviour which is designed to
A) gain power and control.
B) make other people feel more appreciated.
C) improve the job satisfaction of subordinates.
D) increase the job satisfaction of subordinates.
E) increase employee recognition of the importance of power and status.
Answer: A
Diff: 1 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

9) Mary is having difficulty understanding the difference between self-esteem and self-efficacy.
You tell her that
A) self-esteem is the most important of the two concepts for understanding how to motivate
people.
B) self-efficacy is most relevant for managers, while self-esteem is most relevant for
subordinates.
C) self-efficacy refers to how worthwhile an individual feels, while self-esteem refers to the
extent to which people believe that their behaviour really affects what happens to them.
D) self-efficacy refers to people's beliefs about their ability to perform a task, while self-esteem
refers to the extent to which people believe that they are worthwhile individuals.
E) self-efficacy influences productivity, while self-esteem influences job satisfaction.
Answer: D
Diff: 1 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

10) The three components of attitudes are

A) job satisfaction, job performance, and organizational citizenship.
B) cognition, affect, and intention.
C) organizational citizenship, turnover, and job satisfaction.
D) self-esteem, self-efficacy, and self-loathing.
E) self-esteem, self-efficacy, and job satisfaction.
Answer: B
Diff: 1 Type: MC Page Ref: 186
Skill: Knowledge
Objective: 9.2

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11) Which of the following statements is correct with respect to the components of attitudes?
A) Cognition is the most important element because without thinking, there is no action.
B) Cognitive dissonance occurs when two employees have disagreement.
C) Intentions are always translated into actual behaviour.
D) Research has shown that the most important influence on attitudes is cognition.
E) The term "affect" refers to how a person feels about something.
Answer: E
Diff: 1 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

12) Which statement is accurate regarding job satisfaction?

A) High levels of job satisfaction almost always lead to higher productivity.
B) High levels of job satisfaction do not necessarily lead to higher productivity.
C) Job satisfaction is sometimes called job commitment.
D) Job satisfaction is not an attitude.
E) It is not possible to say anything about the relationship between job satisfaction and
productivity.
Answer: A
Diff: 2 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

13) What is the meaning of the term "job satisfaction"?

A) An action on the part of management which makes the employees believe they are receiving
special attention
B) Satisfaction with the quality of leadership that employees are receiving
C) The overall attitude people have toward their workplace
D) The extent to which people have positive attitudes toward their jobs
E) None of these
Answer: D
Diff: 1 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

14) ________ refers to the extent to which people have positive attitudes toward their jobs, while
________ refers to the overall attitude people have toward their workplace.
A) Organizational commitment; morale
B) Morale; organizational commitment
C) Motivation; human relations
D) Job satisfaction; morale
E) Morale; job satisfaction
Answer: D
Diff: 1 Type: MC Page Ref: 186
Skill: Knowledge
Objective: 9.2

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15) What is a contributing factor to the higher costs experienced by firms with a low level of
employee job satisfaction?
A) Higher salary levels
B) Greater willingness to work overtime
C) Lower absenteeism
D) Increased loyalty to the organization
E) Higher turnover rates
Answer: E
Diff: 2 Type: MC Page Ref: 186
Skill: Comprehension
Objective: 9.2

16) A(n) ________ contract is the set of expectations held by employees concerning what they
will contribute to an organization and what the organization will provide in return.
A) psychological
B) employee
C) inducements/contribution
D) leadership
E) attitudinal
Answer: A
Diff: 2 Type: MC Page Ref: 187
Skill: Knowledge
Objective: 9.3

17) A good person-job fit is a situation in which

A) the employee's contributions and the company's inducements balance.
B) the employee's contributions slightly exceed the company's inducements.
C) the company's inducements slightly exceed the employee's contributions.
D) the person hired for the job is qualified for it.
E) the person has the right psychological makeup for the job.
Answer: A
Diff: 2 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.3

18) Christine is a programmer for a software company. In terms of a psychological contract, her
________ include her education, skills, effort, time, and energy, while her ________ include a
good place to work, nice benefits, and a large salary.
A) promises; commitments
B) commitments; satisfaction
C) contributions; inducements
D) inducements; contributions
E) satisfaction; commitments
Answer: C
Diff: 2 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.3
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19) Penn Enterprises has just downsized, eliminating the middle-management positions into
which many entry-level managers had hoped to be promoted. How might this affect the
company?
A) Employees will likely see fewer inducements.
B) The psychological contract will likely be easier to manage now.
C) The person-job fit is likely to be more on target now.
D) Penn will likely see more contributions from employees.
E) There will be little change.
Answer: A
Diff: 2 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.3

20) Patricia and Gita were discussing the meaning of the term "psychological contract." Patricia
would be correct if her meaning encompassed
A) the level of anxiety each employee displays when working.
B) the contract signed when taking a stress leave.
C) the set of expectations held by an employee concerning what he or she will contribute to an
organization and what the organization will provide for the employee in return.
D) the satisfaction of each employee with regard to their paycheque.
E) the emotional role each employee plays in relation to other employees.
Answer: C
Diff: 2 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.3

21) Motivation is
A) a characteristic in employees over which management has no control.
B) the set of forces that causes people to behave in certain ways.
C) a characteristic only of middle and upper management.
D) an inner characteristic that employees either have or don't have.
E) something that allows management to step aside and let the workers take control.
Answer: B
Diff: 2 Type: MC Page Ref: 188
Skill: Knowledge
Objective: 9.4

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22) The classical theory of motivation says that
A) workers are motivated when attention is paid to them by supervisors.
B) workers are motivated almost solely by money.
C) workers are motivated almost solely by status.
D) there are many different factors that contribute to motivation.
E) some factors prevent dissatisfaction and some factors contribute to satisfaction.
Answer: B
Diff: 2 Type: MC Page Ref: 188
Skill: Knowledge
Objective: 9.4

23) Which of the following best describes scientific management?

A) A theory of motivation holding that job satisfaction depends on two factors, hygiene and
motivation
B) A theory of motivation holding that people are motivated to work toward rewards that they
want and that they have a reasonable chance of obtaining
C) A theory of motivation holding that people evaluate their treatment by the organization
relative to the treatment of others
D) A theory of motivation holding that managers should analyze jobs to find the most efficient
methods and use money as a primary motivator
E) A theory of motivation holding that people will work more productively as long as they
receive some kind of attention from management
Answer: D
Diff: 2 Type: MC Page Ref: 188
Skill: Knowledge
Objective: 9.4

24) Among the flaws of scientific management is that it

A) does not recognize the importance of money as a motivator.
B) does time-and-motion studies.
C) was a success with manual labour jobs.
D) doesn't see that there are factors other than money that contribute to job satisfaction.
E) relies too much on input from employees.
Answer: D
Diff: 1 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.4

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25) The concept of finding the "one best way" to do a job was a key feature of
A) scientific management.
B) Herzberg's two-factor theory.
C) Maslow's study of human needs.
D) the Hawthorne studies.
E) expectancy theory.
Answer: A
Diff: 1 Type: MC Page Ref: 188
Skill: Knowledge
Objective: 9.4

26) Which of the following is correct regarding scientific management?

A) Job analysis permitted the breakdown of the jobs into easily repeated tasks, which increased
the production rate.
B) Improved lighting increased the production rate.
C) Individual workers received lower wages even though their production increased.
D) Firms permitted their employees to determine how the job would be performed.
E) All of these are correct.
Answer: A
Diff: 2 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.4

27) What conclusions did business managers draw from scientific management?
A) Because salary is a hygiene factor, wages do not motivate workers to produce more.
B) The informal group was relatively unimportant.
C) Goal setting increased worker output.
D) Business firms had to provide for food, water, and shelter for their workers in order to
increase output.
E) Paying workers a higher wage and redesigning the job into simple tasks would dramatically
increase output.
Answer: E
Diff: 2 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.4

28) What is the "Hawthorne effect"?

A) The observed effect that pay is an important motivator for workers.
B) An increase in employee output caused by almost any management action which makes
workers believe that they are receiving special attention.
C) Increased lighting levels caused increased productivity.
D) It refers to the human need for self-fulfillment.
E) The discovery that the informal group at work can counteract management objectives.
Answer: B
Diff: 2 Type: MC Page Ref: 189
Skill: Comprehension
Objective: 9.4
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29) A manager makes several changes in his employees' working environment to see if morale
increases. Assuming the Hawthorne Effect is operating, which of the following is most likely to
result?
A) Employees will be annoyed with the changes.
B) Some of the changes will work better than others.
C) There will be no effect because the cause of the employees' morale problems has not been
identified.
D) No environmental changes can be made in the employees' work environment due to the
nature of their work.
E) Employee productivity will increase irrespective of which changes are made.
Answer: E
Diff: 3 Type: MC Page Ref: 189
Skill: Application
Objective: 9.4

30) If managers were to implement lessons learned from the Hawthorne Studies, they would
A) eliminate informal groups as they are relatively unimportant.
B) pay workers a higher wage as it would cause them to increase their production.
C) have managers who used the Theory X principles.
D) pay more attention to employees.
E) change the specific pay scheme from hourly to piece-rate.
Answer: D
Diff: 2 Type: MC Page Ref: 189
Skill: Application
Objective: 9.4

31) Steve is trying to increase the productivity of his workers. He decides to offer an incentive of
25 cents for each unit over the average number produced in the last 3 weeks. Steve is following
the ________ theory of motivation.
A) equity
B) two-factor
C) Theory X
D) classical
E) hierarchy of needs
Answer: D
Diff: 2 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.4

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32) Time and motion studies
A) are the basis of Maslow's Hierarchy of Needs Model.
B) are designed to determine how best to perform a job most efficiently.
C) helped managers understand the odd results of the Hawthorne studies.
D) are crucial for improving the abilities of human resources.
E) are mainly used to assess higher-level jobs.
Answer: B
Diff: 1 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.4

33) What was the result of the Hawthorne studies that puzzled the researchers?
A) The redesigned jobs made the work easier and faster for the employees.
B) Worker productivity increased when pay was increased.
C) Productivity went up when the amount of lighting was increased.
D) The differential percent pay system was ineffective in increasing productivity.
E) Increased lighting levels improved productivity, but so did lowering lighting levels.
Answer: E
Diff: 3 Type: MC Page Ref: 188
Skill: Comprehension
Objective: 9.4

34) David thinks his workers are naturally lazy and uncooperative and must therefore be either
punished or rewarded to be made productive. David subscribes to the theory of motivation called
A) the hierarchy of needs.
B) Theory Y.
C) Theory X.
D) two-factor theory.
E) expectancy theory.
Answer: C
Diff: 1 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

35) Kathy believes that her workers are naturally energetic, growth-oriented, self-motivated, and
interested in being productive. Her beliefs closely parallel the ________ theory of motivation.
A) Theory Y
B) Theory X
C) two-factor theory
D) expectancy theory
E) hierarchy of needs
Answer: A
Diff: 1 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

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36) "Smith! Jones! You good-for-nothing, lazy, freeloaders!" This statement exemplifies a boss
with a(n) ________ approach to motivation.
A) expectancy theory
B) equity theory
C) Theory Y
D) hierarchy of needs
E) Theory X
Answer: E
Diff: 1 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

37) The Theory Y approach works best for people who

A) are motivated by basic needs.
B) are naturally energetic and growth oriented.
C) are uncooperative and irresponsible.
D) have a high concern for salary.
E) want to earn a lot of money.
Answer: B
Diff: 2 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

38) Maslow's hierarchy of needs shows which of the following five needs in order starting from
the lowest needs?
A) Psychological, esteem, security, self-actualization, and social needs
B) Social, physiological, esteem, security, and self-actualization needs
C) Physiological, esteem, security, social, and self-actualization needs
D) Physiological, security, social, esteem, and self-actualization needs
E) Psychological, security, social, esteem, and self-actualization needs
Answer: D
Diff: 2 Type: MC Page Ref: 190
Skill: Knowledge
Objective: 9.4

39) Which of Maslow's hierarchy of needs is being addressed by the employer that offers a
pension to workers?
A) Security
B) Social
C) Physiological
D) Retirement
E) Self actualization
Answer: A
Diff: 1 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

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40) In the hierarchy of needs model, all of the following would have to be satisfied before the
individual would seek status and a job title except
A) a decent pension plan.
B) friends at work.
C) a decent salary.
D) a challenging job.
E) a secure place to live.
Answer: D
Diff: 2 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

41) The fundamental presumption in Maslow's hierarchy of needs is

A) security needs are more important than physiological needs.
B) self-actualization needs can never really be satisfied.
C) social needs are less important than esteem needs.
D) a satisfied need is not a motivator.
E) social needs are more important than all other needs.
Answer: D
Diff: 2 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

42) The people who work for Frank are very dissatisfied. Assuming that Maslow's hierarchy is
correct, which of the following actions is the likely best first step to motivate his subordinates?
A) Improve their pay and job security
B) Restructure their jobs so they are more interesting
C) Create more opportunity for subordinates to learn new things
D) Institute an "employee of the month" program
E) Delegate more responsibility to employees
Answer: A
Diff: 3 Type: MC Page Ref: 190
Skill: Application
Objective: 9.4

43) Harriet thinks that Maslow's hierarchy of needs model is very relevant for her workers. She
also knows that their physiological needs are being met. What type of needs should Harriet focus
on next?
A) Good friends at work
B) A respected job title
C) A sense of belonging to the company
D) Job security
E) Challenging job assignments
Answer: D
Diff: 2 Type: MC Page Ref: 190
Skill: Application
Objective: 9.4
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44) How can a business firm help an employee meet self-actualization needs?
A) Provide a challenging job
B) Provide a wage high enough to buy food and provide for shelter
C) Provide a respected job title and a large office
D) Offer a social network at the business
E) Offer a pension plan
Answer: A
Diff: 1 Type: MC Page Ref: 190
Skill: Application
Objective: 9.4

45) Which of the following is true about the hierarchy of needs theory?
A) Once a need has been satisfied, it becomes a motivator.
B) People's individual needs do not vary much.
C) Lower-level needs must be met before higher-level needs emerge.
D) Higher-level needs must be met before lower-level needs emerge.
E) The more a need is satisfied, the more it becomes a motivator.
Answer: C
Diff: 3 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

46) After several years of work, Samantha is finally publishing her first novel. This has been a
life-long dream. According to Maslow, which need is being met?
A) Physiological
B) Job security
C) Social
D) Self-actualization
E) Concern for production
Answer: D
Diff: 1 Type: MC Page Ref: 190
Skill: Comprehension
Objective: 9.4

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47) The two-factor theory states that
A) there are two aspects to motivation: the manager and the subordinate.
B) there are two aspects to motivation: hygiene factors, which prevent dissatisfaction, and
motivators, which contribute to satisfaction.
C) there are two factors that increase job satisfaction: pay and job security.
D) there are two aspects to motivation: hygiene factors, which contribute to satisfaction, and
motivators, which prevent dissatisfaction.
E) recognition that completion of a difficult task is one of the two dominant factors in
motivation.
Answer: B
Diff: 3 Type: MC Page Ref: 191
Skill: Knowledge
Objective: 9.4

48) Tim tries to motivate his employees by making sure that pay and working conditions meet
employee expectations and then providing employees with responsibility and recognition. Tim
likely subscribes to the ________ theory of motivation.
A) scientific management
B) hierarchy of needs
C) two-factor
D) equity
E) expectancy
Answer: C
Diff: 3 Type: MC Page Ref: 191
Skill: Comprehension
Objective: 9.4

49) Regarding the two-factor theory, which one of the following statements is true?
A) The opposite of dissatisfaction is satisfaction.
B) Hygiene factors impact dissatisfaction.
C) The opposite of satisfaction is dissatisfaction.
D) Hygiene factors deal with the content of the job.
E) None of these statements is true.
Answer: B
Diff: 3 Type: MC Page Ref: 191
Skill: Comprehension
Objective: 9.4

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50) Regarding Herzberg's two-factor theory, it is correct to say that
A) only the presence of money can increase employee job satisfaction.
B) Herzberg's hygiene factors are roughly equivalent to Maslow's lower level needs.
C) if good hygiene factors are present, an employee will be satisfied.
D) if motivation factors are present, an employee will not be dissatisfied.
E) the two factors are Theory X and Theory Y.
Answer: B
Diff: 3 Type: MC Page Ref: 191
Skill: Comprehension
Objective: 9.4

51) Larry's subordinates are neither satisfied nor dissatisfied. Of the following, which is the best
move to create satisfaction among his subordinates, assuming that Larry subscribes to Herzberg's
ideas?
A) Improve the company policies on vacation time
B) Spend more time with them to get to know them better
C) Delegate more responsibility to them
D) Get everyone new desks and equipment
E) Increase everyone's pay
Answer: C
Diff: 3 Type: MC Page Ref: 191
Skill: Application
Objective: 9.4

52) Which of the following statements is correct with respect to McClelland's acquired needs
theory?
A) The most important place where needs are acquired is the workplace.
B) People who are high in need for achievement are most likely to be Machiavellian in their
behaviour.
C) People who are high in need for affiliation are most likely to make Theory X assumptions.
D) The need for power is the least important acquired need.
E) People with a high need for power can be successful managers if they seek power in order to
help the organization perform better.
Answer: E
Diff: 3 Type: MC Page Ref: 191
Skill: Comprehension
Objective: 9.4

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53) In McClelland's acquired needs theory, which need typically is the most important?
A) The need for achievement
B) The need for affiliation
C) The need for power
D) The need for achievement and the need for power are equally dominant.
E) None of the needs generally dominates; rather, for each person, a different need dominates.
Answer: E
Diff: 3 Type: MC Page Ref: 191
Skill: Comprehension
Objective: 9.4

54) Brenda believes that people are motivated to work toward rewards that they want and believe
they have a reasonable chance of obtaining. What motivation theory does she subscribe to?
A) Scientific management
B) Equity theory
C) Expectancy theory
D) Two-factor theory
E) Goal-setting theory
Answer: C
Diff: 1 Type: MC Page Ref: 191-192
Skill: Knowledge
Objective: 9.4

55) Which of the following helps explain why some people do not work as hard as they can
when their salaries are based purely on seniority?
A) Two-factor theory
B) Maslow's hierarchy of needs
C) Scientific management
D) Goal-setting theory
E) Expectancy theory
Answer: E
Diff: 3 Type: MC Page Ref: 191
Skill: Comprehension
Objective: 9.4

56) Joe wonders, "If I work hard will I get a pay raise?" Joe then concludes that "No, I won't
receive a raise." This type of reasoning is important in
A) Theory X.
B) scientific theory.
C) expectancy theory.
D) negative attitudes.
E) equity theory.
Answer: C
Diff: 2 Type: MC Page Ref: 191-192
Skill: Comprehension
Objective: 9.4

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57) In order to motivate his subordinates, Phil has offered them all a free dinner if they can
complete a large project they are working on by the end of the month. But everyone thinks that
the input they need won't be received in time for them to complete their report. Phil has ignored
one requirement of the ________ theory.
A) human relations
B) two-factor
C) hierarchy of needs
D) equity
E) expectancy
Answer: E
Diff: 2 Type: MC Page Ref: 191
Skill: Comprehension
Objective: 9.4

58) A football team signed a rookie defensive back at a higher rate of pay than any of its team
veterans were paid. After that, the team almost immediately began to play poorly. This decline
can best be explained using
A) goal-setting theory.
B) equity theory.
C) Maslow's hierarchy of needs.
D) two-factor theory.
E) expectancy theory.
Answer: B
Diff: 3 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.4

59) Which motivational theory assumes that employees assess their ratio of contributions to their
returns and then compare that ratio to the perceived ratio of other employees?
A) Scientific management
B) The Grinnell theory
C) Expectancy
D) Goal setting
E) Equity
Answer: E
Diff: 1 Type: MC Page Ref: 192
Skill: Knowledge
Objective: 9.4

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60) Joe was hired out of college for a starting salary of $55 000 a year. Two months after he
started, he found out that Nancy was hired at the same time for $65 000. At first, he was angry
but then he found out that she had five years of previous experience and that she knew two more
computer-programming languages than he did. Then he was not angry anymore. This illustrates
the ________ motivation theory.
A) two-factor
B) expectancy
C) hierarchy of needs
D) human relations
E) equity
Answer: E
Diff: 2 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.4

61) Pay, praise, promotions, suspensions, and firings are examples of

A) reinforcement.
B) job enrichment.
C) empowerment.
D) participation.
E) management by objectives.
Answer: A
Diff: 2 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.5

62) Mark feels that he can change his subordinates' behaviour by withholding negative
consequences if his employees exhibit desirable behaviour. Mark is using ________ in order to
influence employee behaviour.
A) Punishment
B) Omission
C) Positive reinforcement
D) Negative reinforcement
E) None of these
Answer: D
Diff: 1 Type: MC Page Ref: 192
Skill: Knowledge
Objective: 9.5

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63) Alicia strongly believes in reinforcement as a strategy for motivating people to do good
work. She therefore presents desired consequences to employees when they exhibit behaviour
she desires. She is using
A) punishment.
B) omission.
C) positive reinforcement.
D) negative reinforcement.
E) none of these.
Answer: C
Diff: 1 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.5

64) Marshall thinks that the best way to stop undesirable behaviour on the part of his
subordinates is to ignore it. Marshall is using ________ as a strategy.
A) punishment
B) omission
C) positive reinforcement
D) negative reinforcement
E) none of these
Answer: B
Diff: 1 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.5

65) Usha thinks that the best way to stop undesirable behaviour is to apply negative
consequences to employees who exhibit it. Usha is using
A) punishment.
B) omission.
C) positive reinforcement.
D) negative reinforcement.
E) none of these.
Answer: A
Diff: 1 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.5

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66) Don has started to arrive at work on time in order to avoid being yelled at by his boss. Don is
responding to what reinforcement strategy?
A) Punishment
B) Omission
C) Positive reinforcement
D) Negative reinforcement
E) None of these
Answer: D
Diff: 1 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.5

67) When Maple Leaf Sports & Entertainment gives out "good job" cards to employees who do
outstanding work, this is an example of which reinforcement strategy?
A) Punishment
B) Omission
C) Positive reinforcement
D) Negative reinforcement
E) None of these
Answer: C
Diff: 1 Type: MC Page Ref: 192
Skill: Comprehension
Objective: 9.5

68) The first step in establishing an effective MBO program is to

A) establish overall organizational goals.
B) communicate organizational goals to subordinates.
C) set goals for each subordinate.
D) find out what the subordinate's goals are.
E) meet with subordinates to establish goals.
Answer: A
Diff: 3 Type: MC Page Ref: 193
Skill: Knowledge
Objective: 9.5

69) Which of the strategies for enhancing job satisfaction is also used as a tool for managing the
planning process?
A) Management by objectives
B) Theory X and Y
C) Reinforcement and punishment
D) Participative management and empowerment
E) Job enrichment
Answer: A
Diff: 1 Type: MC Page Ref: 193
Skill: Comprehension
Objective: 9.5

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70) Which of the following is key to a successful MBO program?
A) Punishment
B) Job enrichment
C) Organizational enrichment
D) Collaborative action
E) Rewards
Answer: D
Diff: 1 Type: MC Page Ref: 193
Skill: Knowledge
Objective: 9.5

71) Aaron, a sales manager, selects MBO because the biggest advantage is
A) creating specific performance evaluation criteria.
B) automatic setting of subordinate goals by managers.
C) reducing employee turnover.
D) increased employee motivation.
E) reducing time spent in meetings.
Answer: D
Diff: 2 Type: MC Page Ref: 193
Skill: Comprehension
Objective: 9.5

72) Some companies try to give workers a large amount of discretion so they feel empowered. At
Morning Star Company, the world's largest tomato processor, the empowerment program
includes all of the following features except
A) workers write up a mission statement which describes how they will contribute to the overall
goals of the company.
B) employees are expected to propose the hiring of new people if they are overloaded or if they
see a need that should be met.
C) each employee develops a "Colleague Letter of Understanding" with other employees who are
affected by the person's work.
D) workers have the right to set their own salary.
E) at the end of the year, employees receive feedback on their performance from colleagues with
whom they have a Letter of Understanding.
Answer: D
Diff: 2 Type: MC Page Ref: 193
Skill: Comprehension
Objective: 9.5

21
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73) At WestJet, front-line employees have the right to issue travel credits to customers they feel
have not been treated properly. This is an example of
A) punishment.
B) management by objectives.
C) positive reinforcement.
D) negative reinforcement.
E) empowerment.
Answer: E
Diff: 1 Type: MC Page Ref: 193
Skill: Comprehension
Objective: 9.5

74) ________ teams are based on the idea that the best solutions to problems are likely to come
from the employees who actually do the work.
A) Transnational
B) Problem-solving
C) Self-managed
D) Virtual
E) Empowerment
Answer: B
Diff: 2 Type: MC Page Ref: 194
Skill: Knowledge
Objective: 9.5

75) At the Bowmanville, Ontario, plant of St. Mary's Cement Inc., members of various
departments joined a team whose goal was to find ways to reduce the company's energy bills.
After analyzing the situation, the committee developed a list of energy-saving initiatives and
created plans to implement them. This is an example of a
A) problem-solving team.
B) virtual team.
C) transnational team.
D) self-managed team.
E) project team.
Answer: A
Diff: 1 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

22
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76) John recently joined a team, which sets its own goals, selects its own team members, and
evaluates its performance. John is part of a
A) problem-solving team.
B) virtual team.
C) transnational team.
D) self-managed team.
E) project team.
Answer: D
Diff: 1 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

77) Mary recently joined a team that has the responsibility of accomplishing a specific task,
which requires using a combination of telecommunications and information technologies. Mary
is part of a
A) problem-solving team.
B) virtual team.
C) transnational team.
D) self-managed team.
E) project team.
Answer: B
Diff: 1 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

78) At Johnsonville Foods, teams recruit, hire, evaluate, and terminate low performers on their
own. This is an example of a ________ team.
A) transnational
B) problem-solving
C) self-managed
D) virtual
E) empowerment
Answer: C
Diff: 2 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

23
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79) At Western Airlines, flight attendants now have more control over their own scheduling.
This is an example of
A) an emphasis on company loyalty.
B) job redesign.
C) participative decision making.
D) management by objectives.
E) job enrichment.
Answer: E
Diff: 3 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

80) What does a job enrichment program attempt to accomplish?

A) It attempts to add one or more motivating factors to the job situation.
B) It enriches the individual with a cash bonus for exceeding a quota.
C) It provides employees with a voice in how to do their jobs.
D) It provides an opportunity for employees and managers to meet and set goals for the coming
year.
E) It helps to improve the worker by creating natural work groups and combining tasks.
Answer: A
Diff: 2 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

81) Job redesign programs

A) motivate individuals with a high need for growth or achievement.
B) provide for rewards through reinforcement of desirable work behaviour.
C) permit two workers to share a single full-time job.
D) increase participative management within the organization.
E) facilitate the introduction of flextime into the organization.
Answer: A
Diff: 1 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

82) In order to help increase Lee's job satisfaction, he has been given additional responsibilities.
This is an example of
A) combining tasks.
B) natural work grouping.
C) job redesign.
D) compressed work.
E) job enrichment.
Answer: E
Diff: 2 Type: MC Page Ref: 194
Skill: Comprehension
Objective: 9.5

24
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83) When software writers at Microsoft were allowed to watch test users work with programs
and discuss problems with them, this was an example of
A) combining tasks.
B) worksharing.
C) forming natural work groups.
D) establishing client relationships.
E) flextime programs.
Answer: D
Diff: 2 Type: MC Page Ref: 195
Skill: Comprehension
Objective: 9.5

84) When the job done by a programmer who maintains computer systems is modified to include
some systems design and systems development tasks, this is an example of
A) flextime programs.
B) worksharing.
C) establishing client relationships.
D) combining tasks.
E) forming natural work groups.
Answer: D
Diff: 2 Type: MC Page Ref: 195
Skill: Comprehension
Objective: 9.5

85) The method of increasing job satisfaction by changing tasks to achieve a better fit between
workers and their jobs is called
A) job redesign.
B) work share.
C) management by objectives.
D) job enrichment.
E) job rotation.
Answer: A
Diff: 1 Type: MC Page Ref: 194
Skill: Knowledge
Objective: 9.5

86) When the new product manager creates a team composed of the mechanical engineer,
manufacturing manager, purchasing manager, and the marketing manager, this is an example of
A) establishing client relationships.
B) flextime programs.
C) forming natural work groups.
D) combining tasks.
E) worksharing.
Answer: C
Diff: 2 Type: MC Page Ref: 195
Skill: Comprehension
Objective: 9.5
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87) Marsha appreciated several things about her job, including her choice in scheduling the hours
she worked. This is an example of motivating employees through
A) Maslow's workplace redesign.
B) flextime.
C) inflated workweek.
D) core time motivational training.
E) compressed workweek.
Answer: B
Diff: 1 Type: MC Page Ref: 195
Skill: Comprehension
Objective: 9.5

88) Bob's workweek consists of four 10-hour days. Bob is working a

A) compressed workweek.
B) flextime workweek.
C) new age workweek.
D) partial workweek.
E) reduced workweek.
Answer: A
Diff: 1 Type: MC Page Ref: 196
Skill: Comprehension
Objective: 9.5

89) Steve uses his home office and his high-speed Internet connection to contact customers even
though he is 350 kilometres away from the corporate offices. This is an example of
A) telecommuting.
B) the virtual office.
C) flextime.
D) worksharing.
E) job redesign.
Answer: A
Diff: 1 Type: MC Page Ref: 196
Skill: Comprehension
Objective: 9.5

90) An obstacle in telecommuting programs is

A) showing up for work on time.
B) increased travel times.
C) convincing managers that employees can still get things done and meet deadlines.
D) convincing managers that some time will be spent on family relations.
E) the availability of networked computers, fax machines, cellular telephones, and overnight
delivery services.
Answer: C
Diff: 1 Type: MC Page Ref: 196
Skill: Comprehension
Objective: 9.5
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91) At Rock Inc., there are 200 people who work out of the downtown Toronto office, but there
are only 55 desks at that location. The company is most likely using ________ as a strategy to
enhance employee motivation.
A) job redesign
B) job enrichment
C) telecommuting
D) flextime
E) job sharing
Answer: C
Diff: 1 Type: MC Page Ref: 196
Skill: Comprehension
Objective: 9.5

92) ________ is a disadvantage of telecommuting for individuals, but ________ is an advantage

for managers.
A) Fear of career derailment; lack of knowledge of where workers are at any given time
B) Difficulty separating personal and professional life; decreased worker productivity
C) Lower stress levels; feeling ill-suited for telecommuting
D) Lower electric bills; spending more time with subordinates on the phone
E) Feeling "out of the loop"; increased worker productivity
Answer: E
Diff: 2 Type: MC Page Ref: 196
Skill: Comprehension
Objective: 9.5

93) A modified work schedule which permits two or more employees to work part-time while
filling a single full-time job is known as
A) a quality circle.
B) flextime.
C) job cycling.
D) worksharing.
E) job enlargement.
Answer: D
Diff: 1 Type: MC Page Ref: 196
Skill: Knowledge
Objective: 9.5

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94) Leadership is
A) the process of motivating others to work to meet specific objectives.
B) monitoring an organization's performance to ensure that it is meeting its goals.
C) a method of increasing job satisfaction by designing a more satisfactory fit between workers
and their jobs.
D) determining what an organization needs to do and how best to get it done.
E) determining how best to arrange an organization's resources into a coherent structure.
Answer: A
Diff: 2 Type: MC Page Ref: 197
Skill: Comprehension
Objective: 9.6

95) Managers focus on plans, results, and goals, whereas leaders focus on
A) productivity.
B) profitability.
C) people.
D) sales.
E) controlling for results.
Answer: C
Diff: 1 Type: MC Page Ref: 198
Skill: Knowledge
Objective: 9.6

96) When creating an agenda, leaders focus on ________, whereas managers focus on ________,
A) establishing direction; planning and budgeting
B) controlling and problem solving; organization and staffing
C) organizing and staffing; controlling and problem solving
D) outlining procedures; establishing direction
E) planning and budgeting; producing change
Answer: A
Diff: 1 Type: MC Page Ref: 198
Skill: Knowledge
Objective: 9.6

97) When developing the human resources for achieving an agenda, leaders focus on ________,
whereas managers focus on ________.
A) establishing direction; producing change
B) controlling and problem solving; establishing direction
C) organizing and staffing; aligning people
D) aligning people; organizing and staffing
E) motivating and inspiring; controlling and problem solving
Answer: D
Diff: 1 Type: MC Page Ref: 198
Skill: Knowledge
Objective: 9.6

28
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98) When executing plans, leaders focus on ________, while managers focus on ________.
A) establishing direction; producing change
B) controlling and problem solving; establishing direction
C) organizing and staffing; aligning people
D) aligning people; organizing and staffing
E) motivating and inspiring; controlling and problem solving
Answer: E
Diff: 1 Type: MC Page Ref: 198
Skill: Knowledge
Objective: 9.6

99) ________ is most necessary to achieve coordination and systematic results and to handle
administrative activities during times of stability, while ________ is most necessary to create and
direct change and to help the organization get through tough times.
A) Leadership; management
B) Management; leadership
C) Contingency management; crisis management
D) Systematic decision making; intuition
E) Formal leadership; informal leadership
Answer: B
Diff: 1 Type: MC Page Ref: 198
Skill: Knowledge
Objective: 9.6

100) With respect to the concept of power, it is correct to say that

A) coercive power is the most effective form of power because people can be forced to do
something.
B) legitimate power is synonymous with authority.
C) reward power is the most effective because people are generally motivated by money.
D) expert power is least effective because many people are suspicious of others who claim they
are experts.
E) referent power is typically more commonly found at the top levels of management in an
organization.
Answer: B
Diff: 1 Type: MC Page Ref: 198-199
Skill: Comprehension
Objective: 9.6

29
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101) The employees in Barry's department pay a lot of attention to what he says because they
value "what he stands for." Barry most likely possesses what kind of power?
A) Reward power
B) Coercive power
C) Expert power
D) Referent power
E) Legitimate power
Answer: D
Diff: 1 Type: MC Page Ref: 198-199
Skill: Comprehension
Objective: 9.6

102) Ben interviewed two applicants. In the interviews, he tried to determine each applicant's
level of energy and level of self-esteem. Ben was trying to apply the ________ approach to
leadership.
A) charismatic
B) behavioural
C) trait
D) transformational
E) situational
Answer: C
Diff: 2 Type: MC Page Ref: 199
Skill: Application
Objective: 9.7

103) An autocratic management style

A) is proposed by McGregor as ideal.
B) is generally preferred by employees over a democratic style.
C) is used only in small businesses.
D) allows for rapid decision making.
E) is never appropriate.
Answer: D
Diff: 1 Type: MC Page Ref: 199
Skill: Comprehension
Objective: 9.7

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104) His boss has just informed Carlos that the new product demonstration scheduled for next
week has been moved to tomorrow. Unfortunately, Carlos and his subordinates have not started
to put together their demonstration. The management style that Carlos would find best under
these conditions is probably
A) autocratic.
B) democratic.
C) contingency.
D) reinforcement.
E) free-rein.
Answer: A
Diff: 2 Type: MC Page Ref: 199
Skill: Comprehension
Objective: 9.7

105) Scott manages a software development group. He has asked two of his subordinates to
accompany him and a prospective new employee to lunch. He wants their opinions but he will
make the final decision. Scott is using the ________ management style.
A) contingency
B) reinforcement
C) autocratic
D) free-rein
E) democratic
Answer: E
Diff: 1 Type: MC Page Ref: 199
Skill: Comprehension
Objective: 9.7

106) The field service department has just reported a potentially disastrous problem in a recently
launched product. The engineering VP has called an emergency meeting with department heads
and specialized staff. Which management style is most likely to lead to the best solution?
A) Reinforcement
B) Contingency
C) Autocratic
D) Free-rein
E) Democratic
Answer: C
Diff: 1 Type: MC Page Ref: 199
Skill: Application
Objective: 9.7

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107) Which of the following statements best describes the autocratic managerial style?
A) Be direct and tell people what you expect.
B) Pay employees well and they will work hard.
C) Involve your employees in every decision.
D) The best solution will depend upon the situation.
E) Allow employees the freedom to be creative.
Answer: A
Diff: 3 Type: MC Page Ref: 199
Skill: Comprehension
Objective: 9.7

108) Which of the following statements best describes the democratic leadership style?
A) Involve your employees in every decision.
B) Pay employees well and they will work hard.
C) Be direct and tell people what you expect.
D) The best solution will depend upon the situation.
E) Allow employees the freedom to be creative.
Answer: A
Diff: 3 Type: MC Page Ref: 199
Skill: Comprehension
Objective: 9.7

109) Managers who serve as advisers to subordinates who are allowed to make decisions are
using which leadership style?
A) Democratic
B) Free-rein
C) Autocratic
D) Editorial
E) Dictatorial
Answer: B
Diff: 1 Type: MC Page Ref: 199
Skill: Knowledge
Objective: 9.7

110) The situational approach to leadership means that a manager should

A) use a democratic style when a rapid decision has to be made.
B) use an autocratic style when a complex decision has to be made.
C) shift his or her managerial style based upon the situation that the manager faces.
D) use a free-rein style when managing a group of inexperienced, young workers.
E) use an autocratic style when managing a group of technicians.
Answer: C
Diff: 2 Type: MC Page Ref: 199
Skill: Comprehension
Objective: 9.7

32
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111) Arliss is a new manager, and she faces low productivity in her department. Some of the
employees are satisfied and some are not. On what should she most likely focus to improve
productivity?
A) Virtual leadership
B) Task-oriented leader behaviours
C) Strategic leadership
D) Employee-oriented leader behaviours
E) Ethical leadership
Answer: B
Diff: 3 Type: MC Page Ref: 199
Skill: Analysis
Objective: 9.7

112) Benjamin observes high productivity in his department, yet his employees have low levels
of job satisfaction. On what should Benjamin most likely concentrate in order to improve
employee job satisfaction?
A) Virtual leadership
B) Task-oriented leader behaviours
C) Strategic leadership
D) Employee-oriented leader behaviours
E) Ethical leadership
Answer: D
Diff: 3 Type: MC Page Ref: 199
Skill: Analysis
Objective: 9.7

113) According to the path-goal theory of leadership, what is the primary job of a leader?
A) To make desired rewards available to subordinates and to clarify for them the kinds of
behaviours that will lead to goal attainment
B) To get subordinates to enthusiastically participate in decision making
C) To "run interference" for employees and to protect them from arbitrary actions by upper-level
managers
D) To treat employees as human beings and show concern for their welfare
E) To make sure that as many employees as possible feel like they are in the "in-group"
Answer: A
Diff: 2 Type: MC Page Ref: 200
Skill: Comprehension
Objective: 9.7

33
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114) What is the essential argument that is made in the leader-member exchange (LMX) model?
A) That leaders establish a special relationship with a small number of trusted subordinates
B) That the leader is able to display different leadership behaviours
C) That different leadership styles are appropriate for different situations
D) That the degree to which subordinates should participate in decision making depends on the
characteristics of the situation, and that no one decision making process is best for all situations
E) That the leader's job is to make desired rewards available to subordinates, and to clarify for
them the kinds of behaviours that will lead to goal attainment
Answer: A
Diff: 2 Type: MC Page Ref: 200
Skill: Comprehension
Objective: 9.7

115) Marlene is the leader of a group of engineers. She sets challenging goals for subordinates,
expects them to perform at a high level, encourages them, and shows confidence in their abilities.
In terms of path-goal theory, what kind of leader behaviour is Marlene exhibiting?
A) Directive
B) Supportive
C) Participative
D) Achievement oriented
E) Theory X
Answer: D
Diff: 2 Type: MC Page Ref: 200
Skill: Comprehension
Objective: 9.7

116) At Nordic Enterprises, Johann is most effective in carrying out the management of daily
tasks that must be performed. Which of the following approaches most likely characterizes
Johann's management style?
A) Charismatic
B) Transactional
C) Transformational
D) Situational
E) Ethical
Answer: B
Diff: 2 Type: MC Page Ref: 200
Skill: Comprehension
Objective: 9.8

34
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117) Which of following describes the activities most involved with transactional leadership?
A) The implementation of a corporate vision
B) The implementation of organizational transformations
C) The implementation of routine activities
D) The implementation of employee incentives
E) The implementation of situational problem-solving
Answer: C
Diff: 2 Type: MC Page Ref: 200
Skill: Comprehension
Objective: 9.8

118) Charismatic leaders do all of the following except

A) set high expectations for themselves.
B) structure the work of subordinates so they will be efficient in carrying out their tasks.
C) energize others by demonstrating personal excitement.
D) empathize with others.
E) express confidence in others.
Answer: B
Diff: 1 Type: MC Page Ref: 201
Skill: Comprehension
Objective: 9.8

119) In a move to become less hierarchical, many organizations have eliminated the old-
fashioned command and control mentality. This is most consistent with the idea of
A) leaders as coaches.
B) transaction leadership.
C) situational leadership.
D) trait leadership.
E) substitutes for leadership.
Answer: A
Diff: 1 Type: MC Page Ref: 201
Skill: Comprehension
Objective: 9.8

120) In referring to cross-cultural leadership, culture refers to

A) international differences.
B) diversity-based differences within one culture.
C) international differences and diversity-based differences within one culture.
D) neither international differences nor diversity-based differences within one culture.
E) the difficulty of leadership working at all in some cultures.
Answer: C
Diff: 1 Type: MC Page Ref: 202
Skill: Knowledge
Objective: 9.8

35
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121) Which of the following is correct with regard to male and female leadership?
A) Female leaders are more nurturing than male leaders.
B) Male leaders have a tendency to be more autocratic than females leaders.
C) Male leaders are harsher than female leaders.
D) Male leader are more task-focused than female leaders.
E) All of these are correct.
Answer: B
Diff: 2 Type: MC Page Ref: 202
Skill: Comprehension
Objective: 9.8

122) In exercising strategic leadership, what is a leader most likely to do?

A) Focus on company efficiency
B) Focus on company profitability
C) Align the company with its environment
D) Avoid environmental impact on the firm
E) It is not possible to say with the information given.
Answer: C
Diff: 2 Type: MC Page Ref: 203
Skill: Comprehension
Objective: 9.8

123) Which of the following is generally true about Canadian and American managers?
A) Canadians usually use a democratic style, while Americans prefer an autocratic style.
B) Americans are more committed to their companies.
C) Americans seem to be more willing to follow the latest management fad.
D) Americans are more open to different cultures.
E) Americans are more subtle than Canadians.
Answer: C
Diff: 2 Type: MC Page Ref: 203
Skill: Comprehension
Objective: 9.8

124) Virtual leadership likely results in

A) employees working in the same physical location.
B) more face-to-face communication among employees.
C) telecommuting.
D) little communication among employees.
E) lower motivation on the part of employees.
Answer: C
Diff: 2 Type: MC Page Ref: 203
Skill: Comprehension
Objective: 9.8

36
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125) Which of the following best describes the actions by members of an organization that
directly or indirectly influences the organization's effectiveness?
A) Employee behaviour
B) Worker's conduct
C) Employee habits
D) Worker's reactions
E) Staff actions
Answer: A
Diff: 1 Type: MC Page Ref: 184
Skill: Knowledge
Objective: 9.1
ESL: Alternate/ESL

126) What are behaviours that detract from organizational performance called?
A) Detrimental behaviours
B) Counterproductive behaviours
C) Adverse behaviours
D) Destructive behaviours
E) Negative behaviours
Answer: B
Diff: 1 Type: MC Page Ref: 184
Skill: Knowledge
Objective: 9.1
ESL: Alternate/ESL

127) What is the relatively stable set of psychological attributes that distinguish one person from
another called?
A) Disposition
B) Traits
C) Identity
D) Manner
E) Personality
Answer: E
Diff: 1 Type: MC Page Ref: 185
Skill: Knowledge
Objective: 9.2
ESL: Alternate/ESL

37
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128) The extent to which people are self-aware, can manage their emotions, can motivate
themselves, express empathy for others and possess social skills is which of the following?
A) Personality awareness
B) Empathetic disposition
C) Attitude enlightenment
D) Emotional intelligence
E) Identity stability
Answer: D
Diff: 1 Type: MC Page Ref: 185
Skill: Knowledge
Objective: 9.2
ESL: Alternate/ESL

129) What are a person's beliefs and feelings about specific ideas, situations or people called?
A) Attitudes
B) Values
C) Ethics
D) Morals
E) Judgements
Answer: A
Diff: 1 Type: MC Page Ref: 186
Skill: Knowledge
Objective: 9.2
ESL: Alternate/ESL

130) The extent to which people have positive attitudes toward their jobs is which of the
following?
A) Job fulfillment
B) Job pleasure
C) Job contentment
D) Job enjoyment
E) Job satisfaction
Answer: E
Diff: 1 Type: MC Page Ref: 186
Skill: Knowledge
Objective: 9.2
ESL: Alternate/ESL

38
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131) Which of the following is an individual's identification with the organization and its
mission?
A) Organizational identity
B) Organizational dedication
C) Organizational commitment
D) Organizational engagement
E) Organizational attachment
Answer: C
Diff: 1 Type: MC Page Ref: 186
Skill: Knowledge
Objective: 9.2
ESL: Alternate/ESL

132) What is the extent to which a person's contributions and the organization's inducements
match one another called?
A) Job matching
B) Fair compensation
C) Work equity balance
D) Person-job fit
E) Equality employment
Answer: D
Diff: 1 Type: MC Page Ref: 188
Skill: Knowledge
Objective: 9.3
ESL: Alternate/ESL

133) Which of the following is a theory of motivation that presumes workers are motivated
almost solely by money?
A) Classical theory of motivation
B) Money motivation theory
C) Compensation driven motivation theory
D) Wage/effort motivation theory
E) Greed motivation theory
Answer: A
Diff: 1 Type: MC Page Ref: 188
Skill: Knowledge
Objective: 9.3
ESL: Alternate/ESL

39
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134) What is the tendency for workers' productivity to increase when they are getting special
attention from management called?
A) Classical theory of motivation
B) Hawthorne effect
C) Theory X
D) Expectancy theory
E) Employer awareness theory
Answer: B
Diff: 1 Type: MC Page Ref: 189
Skill: Knowledge
Objective: 9.3
ESL: Alternate/ESL

135) Which of the following is a management approach based on the belief that people must be
forced to be productive because they are naturally lazy, irresponsible and uncooperative?
A) Theory Y
B) Expectancy theory
C) Theory X
D) Two-factor theory
E) Hawthorne effect
Answer: C
Diff: 1 Type: MC Page Ref: 190
Skill: Knowledge
Objective: 9.4
ESL: Alternate/ESL

136) What is a management approach based on the belief that people want to be productive
because they are naturally energetic, responsible and cooperative called?
A) Classical theory of motivation
B) Expectancy theory
C) Theory X
D) Two-factor theory
E) Theory Y
Answer: E
Diff: 1 Type: MC Page Ref: 190
Skill: Knowledge
Objective: 9.4
ESL: Alternate/ESL

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137) Which of the following is the theory of motivation describing five levels of human needs
and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs?
A) Hierarchy of human needs model
B) Classical theory of motivation
C) Expectancy theory
D) Theory Y
E) Acquired needs theory
Answer: A
Diff: 1 Type: MC Page Ref: 190
Skill: Knowledge
Objective: 9.4
ESL: Alternate/ESL

138) A theory of human relations developed by Frederick Herzberg that identifies factors that
must be present for employees to be satisfied with their jobs and factors that if increased lead
employees to work harder is which of the following?
A) Expectancy theory
B) Two-factor theory
C) Theory X
D) Equity theory
E) Hawthorne effect
Answer: B
Diff: 1 Type: MC Page Ref: 191
Skill: Knowledge
Objective: 9.4
ESL: Alternate/ESL

139) What is the theory that people are motivated to work toward rewards that they believe they
have a reasonable chance of obtaining called?
A) Equity theory
B) Two-factor theory
C) Expectancy theory
D) Theory Y
E) Acquired needs theory
Answer: C
Diff: 1 Type: MC Page Ref: 191
Skill: Knowledge
Objective: 9.4
ESL: Alternate/ESL

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140) Which of the following is the theory that people compare 1) what they contribute to their
job with what they get in return and 2) their input/output ratio with that of other employees?
A) Two-factor theory
B) Expectancy theory
C) Acquired needs theory
D) Equity theory
E) Theory Y
Answer: D
Diff: 1 Type: MC Page Ref: 192
Skill: Knowledge
Objective: 9.4
ESL: Alternate/ESL

141) What is controlling and modifying employee behaviour through the use of systematic
rewards and punishments for specific behaviours called?
A) Behaviour modification
B) Incentives
C) Carrot and stick
D) Bonus and fines
E) Reinforcement
Answer: E
Diff: 1 Type: MC Page Ref: 192
Skill: Knowledge
Objective: 9.5
ESL: Alternate/ESL

142) What is the theory that people perform better when they set specific, quantified, time-
framed goals called?
A) Equity theory
B) Goal-setting theory
C) Expectancy theory
D) Two-factor theory
E) Theory Y
Answer: B
Diff: 1 Type: MC Page Ref: 193
Skill: Knowledge
Objective: 9.5
ESL: Alternate/ESL

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143) A technique for maximizing quality of production where employees are grouped into small
teams that define, analyze and solve quality and other process-related problems within their area
is which of the following?
A) Quality unit
B) Quality squad
C) Quality team
D) Quality circle
E) Quality group
Answer: D
Diff: 1 Type: MC Page Ref: 194
Skill: Knowledge
Objective: 9.5
ESL: Alternate/ESL

144) What is allowing employees to do all or some of their work away from the office called?
A) Flextime
B) Job sharing
C) Job rotation
D) Hometime
E) Telecommuting
Answer: E
Diff: 1 Type: MC Page Ref: 196
Skill: Knowledge
Objective: 9.5
ESL: Alternate/ESL

145) The process of motivating others to work to meet specific objectives is

A) management.
B) directing.
C) influencing.
D) leadership.
E) guidance.
Answer: D
Diff: 1 Type: MC Page Ref: 197
Skill: Knowledge
Objective: 9.6
ESL: Alternate/ESL

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146) A leadership approach focused on identifying the essential traits that distinguish leaders is
called which of the following?
A) Trait approach
B) Behavioural approach
C) Situational approach
D) Characteristics approach
E) Attribute approach
Answer: A
Diff: 1 Type: MC Page Ref: 199
Skill: Knowledge
Objective: 9.7
ESL: Alternate/ESL

147) What is a leadership approach in which appropriate leader behaviour varies from one
situation to another called?
A) Behavioural approach
B) Trait approach
C) Situational approach
D) Location approach
E) Position approach
Answer: C
Diff: 1 Type: MC Page Ref: 199
Skill: Knowledge
Objective: 9.7
ESL: Alternate/ESL

148) Which kind of leadership is best described as the set of abilities that involve routine,
regimented activities that are necessary during periods of stability?
A) Transactional leadership
B) Charismatic leadership
C) Transformational leadership
D) Task leadership
E) Functional leadership
Answer: A
Diff: 1 Type: MC Page Ref: 200
Skill: Knowledge
Objective: 9.8
ESL: Alternate/ESL

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149) The type of influence based on the leader's personal charisma is which kind of leadership?
A) Characteristic leadership
B) Personality leadership
C) Transactional leadership
D) Transformational leadership
E) Charismatic leadership
Answer: E
Diff: 1 Type: MC Page Ref: 201
Skill: Knowledge
Objective: 9.8
ESL: Alternate/ESL

9.2 Critical Thinking Questions

1) Which of the following is a prominent feature of virtual leadership?

A) Interpreting body language
B) Communicating with subordinates by phone calls and email
C) Strategic planning
D) Welcoming diversity
E) Face-to-face communication
Answer: B
Diff: 2 Type: MC Page Ref: 203
Skill: Comprehension
Objective: 9.8

2) A manager has noticed that her workers are more likely to be in negative moods between 3 pm
and 4:30 pm. She believes that employees will make valuable contributions to staff meetings
when they are in positive moods, and that staff meetings cannot be successful unless the
employees make valuable contributions. For these reasons, she has moved her daily staff meeting
from 3 pm to 10 am.
Which of the following is assumed by the manager?
A) The meetings would be more effective if they were held once a week.
B) The staff meetings are not the cause of the workers' bad moods.
C) If the workers make valuable contributions, then the meetings will be successful.
D) Successful meetings will be an important contributor to the success of the organization.
E) The workers' moods will be more positive at 10 am than at any other time of the day.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

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3) A manager has noticed that her workers are more likely to be in negative moods between 3 pm
and 4:30 pm. She believes that employees will make valuable contributions to staff meetings
when they are in positive moods, and that staff meetings cannot be successful unless the
employees make valuable contributions. For these reasons, she has moved her daily staff meeting
from 3 pm to 10 am.
If the manager's statements are all true, which of the following must also be true?
A) If the employees make valuable contributions during a staff meeting, then that meeting will
be successful.
B) If the employees are in positive moods during a staff meeting, then that meeting will be
successful.
C) If the employees did not make valuable contributions during a staff meeting, then they must
have been in negative moods.
D) If the employees do not make valuable contributions during a staff meeting, then that staff
meeting cannot be successful.
E) If the employees are not in positive moods during a staff meeting, then they will not make
valuable contributions during that staff meeting.
Answer: D
Diff: 3 Type: MC
Skill: Analysis

4) A company is convinced of the benefits of exercise for its workers. Healthy employees take
fewer sick days and tend to be more focused on their job. In addition, exercise enhances the
workers' positive moods. The company is so convinced of the value of exercise that it has
adopted a new policy: Moving forward, all workers will be allowed to exercise during the work
day for up to three hours per week.
The reasoning behind the company's exercise policy assumes which of the following?
A) Exercise is the most effective way to improve the moods of the workers.
B) The exercise that the workers would engage in will be more strenuous than the exercise they
would do on their own.
C) Most employees will not exercise more unless they are forced to do so.
D) Adopting the policy will not require the company to purchase any special equipment or
reallocate any office space.
E) The employees who would exercise during the work day are not getting enough exercise.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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5) A company is convinced of the benefits of exercise for its workers. Healthy employees take
fewer sick days and tend to be more focused on their job. In addition, exercise enhances the
workers' positive moods. The company is so persuaded of the value of exercise that it has
adopted a new policy: Moving forward, all workers will be allowed to exercise during the work
day for up to three hours per week.
All the following questions are relevant to the company's decision with respect to its exercise
policy except
A) What is the value of the time the workers will spend exercising during the work day?
B) How likely is it that workers will be injured by over-exercising?
C) Would the workers have different exercise needs if they had formed different behavioural
patterns when they were children?
D) What resources will be required to monitor the workers to make sure that they do not spend
more than 3 hours per week exercising during work hours?
E) After how much exercise do the benefits of exercise diminish?
Answer: C
Diff: 3 Type: MC
Skill: Analysis

6) A company is convinced of the benefits of exercise for its workers. Healthy employees take
fewer sick days and tend to be more focused on their job. In addition, exercise enhances the
workers' positive moods. The company is so persuaded of the value of exercise that it has
adopted a new policy: Moving forward, all workers will be allowed to exercise during the work
day for up to three hours per week.
Which of the following, if true, would weaken the argument for the company's exercise policy?
A) The company has set up an arrangement with a local gym to provide facilities for exercising.
B) The policy is not designed to increase the amount of time that the workers' families will spend
exercising.
C) Many of the workers who exercise more because of the policy would return to their previous
levels of exercise if they left the company.
D) Different people require different kinds of exercise in order to get the benefits of exercise.
E) The workers who are most in need of additional exercise are least likely to participate in the
exercise program.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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7) The sales staff at Macmoo Real Estate is compensated primarily based on the value of the
properties they sell. However, in order to encourage the salespeople to act in the best interests of
the company, Macmoo bases 10 percent of each salesperson's yearly bonus on whether the
company reaches its yearly financial goals.
Macmoo's compensation structure is based on which of the following principles?
A) People will act to accomplish a goal when they have a stake in the accomplishment of that
goal.
B) An incentive structure should be as simple as possible.
C) An incentive structure is more effective when it encourages people to act in ways that benefit
society in general as well as themselves.
D) Compensation policies should always follow the specific requirements of all applicable laws.
E) People will be more likely to follow a policy when they have had some input into the creation
of that policy.
Answer: A
Diff: 3 Type: MC
Skill: Analysis

8) The sales staff at Macmoo Real Estate is compensated primarily based on the value of the
properties they sell. However, in order to encourage the salespeople to act in the best interests of
the company, Macmoo bases 10 percent of each salesperson's yearly bonus on whether the
company reaches its yearly financial goals.
The incentive plan is based on which assumption?
A) In comparison to other Macmoo employees, Macmoo salespeople are less interested in the
overall success of the company.
B) Macmoo salespeople believe that they can have a significant effect on the overall
performance of the company.
C) In the past, Macmoo salespeople have not consistently acted in the best interests of the
company.
D) The only effective way to motivate employees is through financial incentives.
E) Macmoo employees are like other salespeople in the industry.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

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9) The sales staff at Macmoo Real Estate is compensated primarily based on the value of the
properties they sell. However, in order to encourage the salespeople to act in the best interests of
the company, Macmoo bases 10 percent of each salesperson's yearly bonus on whether the
company reaches its yearly financial goals. In which of the following situations would the
interests of the salesperson be most likely to conflict with the interests of the overall
organization?
A) A Macmoo real estate agent and another real estate agent have a difference of opinion about
the fair market value of a property.
B) A Macmoo real estate agent completes a transaction, earns a commission, and generates sales
leads that become profitable relationships for other Macmoo agents.
C) A Macmoo agent becomes the selling agent for the same property multiple times.
D) A real estate transaction would generate a high commission for an agent but would associate
the agency with the destruction of a beloved local landmark.
E) A Macmoo agent works excessively to earn a big bonus but neglects her personal life.
Answer: D
Diff: 3 Type: MC
Skill: Analysis

10) Estelle took a new position as team leader of a software development team and is finding the
position far more frustrating than she had expected. The six members of her team are all highly
qualified and produce good work, but one of the team members behaves negatively every time a
new problem or challenge arises. This programmer, Jake, defines every problem as someone
else's fault. He avoids volunteering for any new assignment, saying he has a hard enough time
meeting deadlines as it is. The rest of the team is visibly annoyed with Jake. Which of the
following personality traits might be influencing Jake's behaviour?
A) Machiavellianism and low self-esteem
B) External locus of control and low self-efficacy
C) Internal locus of control and high self-efficacy
D) Internal locus of control and low emotional intelligence
E) High self-efficacy and high authoritarianism
Answer: B
Diff: 3 Type: MC
Skill: Analysis

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11) Estelle took a new position as team leader of a software development team and is finding the
position far more frustrating than she had expected. Estelle finds that the team members do not
accept her direction well. When she makes assignments to the team, some of the members
openly question whether she is distributing the work effectively. Estelle has pointed out that
since she is the team leader, she should make the assignments, and although she says it
pleasantly, she can tell from the faces around her that the team members resent her. How might
an understanding of authoritarianism help Estelle lead her team more effectively?
A) An understanding of authoritarianism could teach Estelle how to become a firmer leader
when employees resist.
B) Estelle could see that the team members are more authoritarian than she is, so they want to
direct their own work.
C) Estelle could see that she is more authoritarian than her team members, so they are less
accepting of status differences on the team.
D) An understanding of authoritarianism could teach Estelle to be more rational, less emotional,
and better able to manipulate others.
E) Estelle could learn to be more willing to take chances, make risky decisions, and experiment
with new ideas.
Answer: C
Diff: 3 Type: MC
Skill: Analysis

12) The Executive Committee at Oak Meteors made the following statement: "We want all of
our business developers to be outstanding. For these reasons, we have started the "excellence
club," whose membership is limited to those who place in the top 10 percent in terms of the
dollar value of the deals they complete. The annual goals of each business developer include
membership in this club. We also believe in continuous improvement. To meet their annual
goals, the business developers also must generate more dollars in sales than they did last year. In
order to keep the business developers focused, they have no other annual goals."
Which of the following must be true about the business developers at Oak Meteors during any
given year?
A) Some of them meet all their annual goals.
B) Some of those that meet all their annual goals are among the top performers in the entire
organization.
C) All of those who generate more dollars in sales than they did in the previous year qualify for
the "excellence club."
D) Some of those in the "excellence club" do not meet all their annual goals.
E) Not all of them meet all their annual goals.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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13) The Executive Committee at Oak Meteors made the following statement: "We want all of
our business developers to be outstanding. For these reasons, we have started the "excellence
club," whose membership is limited to those who place in the top 10 percent in terms of the
dollar value of the deals they complete. The annual goals of each business developer include
membership in this club. We also believe in continuous improvement. To meet their annual
goals, the business developers also must generate more dollars in sales than they did last year. In
order to keep the business developers focused, they have no other annual goals."
A manager criticizes the "excellence club" because she believes that it encourages negative
behaviour that would not happen otherwise. She believes instead that business developers should
be rewarded based on the revenue they bring in. Which of the following, if true, would most
strongly support this conclusion?
A) Business developers often pursue deals that generate revenue in the year they are completed
but are bad propositions in the long term.
B) Business developers who are less successful have been known to try to take credit for deals
completed by more successful business developers.
C) Business developers have sometimes lied to customers about the real value of the deals they
offer.
D) Toward the end of the fiscal year, business developers outside the top 10 percent put in extra
hours in order to increase their chances of qualifying for the "excellence club."
E) Business developers outside the top 10 percent have contacted some customers of those in the
top 10 percent to prevent those customers from completing their deals.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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14) The Executive Committee at Oak Meteors made the following statement: "We want all of
our business developers to be outstanding. For these reasons, we have started the "excellence
club," whose membership is limited to those who place in the top 10 percent in terms of the
dollar value of the deals they complete. The annual goals of each business developer include
membership in this club. We also believe in continuous improvement. To meet their annual
goals, the business developers also must generate more dollars in sales than they did last year. In
order to keep the business developers focused, they have no other annual goals."
Suppose that Oak Meteors institutes a "Super Bonus" program that provides a large cash award
for the business developer with the greatest year-to-year increase in revenue. A manager claims
that this would encourage business developers to do poorly in one year in order to make it easier
to do much better in the subsequent year. All the following would help address this concern
except
A) restricting eligibility for the "Super Bonus" program to those who achieved their annual goals
in the previous year.
B) changing the "Super Bonus" so that it is awarded only to those who have increased their
revenue by a substantial percentage.
C) offering the "Super Bonus" for the current year's performance and then never offering it
again.
D) including a review panel empowered to disallow the "Super Bonus" for those who have
abused the process.
E) disqualifying all business developers who have earned a negative performance review within
the last three years.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

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15) The Executive Committee at Oak Meteors made the following statement: "We want all of
our business developers to be outstanding. For these reasons, we have started the "excellence
club," whose membership is limited to those who place in the top 10 percent in terms of the
dollar value of the deals they complete. The annual goals of each business developer include
membership in this club. We also believe in continuous improvement. To meet their annual
goals, the business developers also must generate more dollars in sales than they did last year. In
order to keep the business developers focused, they have no other annual goals."
If it were possible to qualify for membership in the "excellence club" by completing a new
product deal worth over $1 000 000, then which of the following business developers would
have met all his or her annual goals?
A) Ali, who did not complete any deal worth over $1 000 000 but generated more dollars in sales
than he did last year.
B) Jim, who completed more new product deals worth over $1 000 000 than any other business
developer.
C) Kelly, who qualified for the "excellence club" and completed a new product deal worth over
.
D) Shelly, who did not place in the top 10 percent in terms of the dollar value of the deals
completed, completed a new product deal worth over $1 000 000 and generated more dollars in
sales than she did last year.
E) Bobby, who did not qualify for the "excellence club," completed a deal worth over
and generated more dollars in sales than he did last year.
Answer: D
Diff: 3 Type: MC
Skill: Analysis

16) Gordon, a manager, makes the following statement: "Our experimentation with a teams-
focused product development process is complete, and the evidence clearly supports adopting
this process across our organization. We picked a test project to see if productivity would be
better under shared leadership, team accountability, and collaborative work. That project, Zen
Park Frantic, was a market success. What more do we need to know?"
Linda, another manager, responds by saying: "You are jumping to conclusions. If Zen Park
Frantic went especially well, then that improvement was probably caused by the Hawthorne
effect and almost any change from the normal procedures would have produced a benefit."
Which of the following is a point at issue between Gordon and Linda?
A) Was Zen Park Frantic a market success?
B) Would Zen Park Frantic have been as successful if it had followed the organization's normal
procedures?
C) Are team-based product development processes successful in any organizational setting?
D) Is the "Hawthorne effect" an important concept in explaining the causes of increased
productivity?
E) Does the evidence support a move to team-based product development?
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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17) Marilyn Peck, the manager of human resources makes the following statement: "Our new
incentive system is the best way to encourage high performance out of each employee. It
specifies the things that employees should do and the results that will lead to rewards."
David Witt, a production manager, responds by saying: "You ignore a key issue: no matter what
else is going on, employees will not be motivated if they do not feel that they are being treated
fairly. Workers who feel that they are paid less than others for the same work will not feel that
they are being treated fairly unless the organization provides persuasive justification. For
example, Robin cannot possibly be motivated given that she is paid much less than Jonaki."
All the following are assumed by Peck's argument except
A) employees can understand the new incentive system.
B) employees can achieve the results specified by the new incentive system.
C) employees who exhibit a similar level of effort will receive similar rewards.
D) employees will perceive that the rewards offered by the new incentive system are worth the
effort required to achieve the results that lead to those rewards.
E) employees believe that the things that the new incentive system calls for them to do are likely
to influence the outcomes that affect their rewards.
Answer: C
Diff: 3 Type: MC
Skill: Analysis

18) Marilyn Peck, the manager of human resources makes the following statement: "Our new
incentive system is the best way to encourage high performance out of each employee. It
specifies the things that employees should do and the results that will lead to rewards."
David Witt, a production manager, responds by saying: "You ignore a key issue: no matter what
else is going on, employees will not be motivated if they do not feel that they are being treated
fairly. Workers who feel that they are paid less than others for the same work will not feel that
they are being treated fairly unless the organization provides persuasive justification. For
example, Robin cannot possibly be motivated given that she is paid much less than Jonaki."
Witt's claim that Robin must be dissatisfied assumes which of the following?
A) Jonaki is aware of Robin's salary.
B) Most people in the organization would agree that Robin and Jonaki do comparable work.
C) Jonaki receives more favourable employee reviews than Robin does.
D) Robin has met all the goals specified by the organization's incentive system.
E) Robin has not been provided with a persuasive justification for the difference in salary.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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19) Marilyn Peck, the manager of human resources makes the following statement: "Our new
incentive system is the best way to encourage high performance out of each employee. It
specifies the things that employees should do and the results that will lead to rewards."
David Witt, a production manager, responds by saying: "You ignore a key issue: no matter what
else is going on, employees will not be motivated if they do not feel that they are being treated
fairly. Workers who feel that they are paid less than others for the same work will not feel that
they are being treated fairly unless the organization provides persuasive justification. For
example, Robin cannot possibly be motivated given that she is paid much less than Jonaki."
If all of Witt's statements are true, which of the following must also be true?
A) If Robin were paid more than Jonaki, she would be motivated.
B) All employees who are motivated and feel that they are paid less than employees who do the
same work have received a persuasive justification.
C) If Robin felt that she is being treated fairly, then she would be motivated.
D) Workers who are provided with a persuasive justification for differences in pay will be
motivated.
E) Any employees who are not motivated and feel that they have been treated unfairly must not
have received a persuasive justification.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

20) Which of the following, if true, would best show that a manager's strategy for motivating his
team is consistent with "Theory Y" about employee motivation?
A) The employees would need to see incentives as worth having for their own sake.
B) The employees would need to see their work as contributing to a success that they share in.
C) The manager wants his team to feel rewarded by doing their job well.
D) The manager thinks that his team will not do their work well without added incentives.
E) The manager thinks that incentives are needed in order to boost morale.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

21) If, instead of offering incentives for sales goals, a manager were to get ideas on increasing
sales revenue from her sales team to implement, which of the following would most likely
result?
A) The sales team would be more motivated by feeling more invested in the process.
B) The sales team would prefer to be given clearly defined goals to meet.
C) The sales team would not have enough information to go on in order to get ideas.
D) The sales team would come up with too many different ideas.
E) The sales team would be more motivated because of the chance to earn more money.
Answer: A
Diff: 3 Type: MC
Skill: Analysis

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22) Suppose that a manager decides to experiment with making changes in his employees'
working environment to see if morale increases. Based on what we have learned from the
"Hawthorne effect" which of the following is most likely to result?
A) The employees will be annoyed at any of the changes made.
B) One of the possible environmental changes will work much better than others.
C) The changes will have no effect because the source of the employees' morale problems likely
comes from elsewhere.
D) No environmental changes will be possible in his team's work environment due to the nature
of their work.
E) His employees will increase their productivity regardless of which changes are made.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

23) Deidra is a manager of a team that has a morale problem. According to the two-factor theory
of motivation, which of the following, if true, would be the most reliable indication that the
morale problem with Deidra's team is primarily due to a lack of motivators?
A) Deidra's team members all report that they like the building and location in which they work.
B) A survey of Deidra's team members shows that most of them have a sense of the importance
of their work.
C) Many of Deidra's team members have difficulty relating to each other.
D) Deidra's team members report getting negative messages about customers from other parts of
the company.
E) When surveyed, Deidra's team members do not express any dissatisfaction with existing work
conditions.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

24) Sam manages a team of employees and wants to motivate them. Which of the following, if
true, would provide the best reason for thinking that Sam operates under Theory X of employee
motivation?
A) Sam decides to arrange private conferences individually with his employees to gauge their
sources of dissatisfaction.
B) Sam decides to give all his employees a raise in order to boost their morale.
C) Sam decides to initiate a system of stricter rules and work policies in order to increase his
team's productivity.
D) Sam assumes that something must be wrong with the conditions under which his employees
work.
E) Sam decides to survey his employees to determine what it would take to make them work
more productively.
Answer: C
Diff: 3 Type: MC
Skill: Analysis

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25) Alexis, a manager, decides to increase the morale of her team by giving more conspicuous
praise for work done well. Which of the following, if true, would likely make this strategy
ineffective?
A) Employees are already receiving effective praise from their co-workers.
B) Employees feel that their salaries are below industry standard.
C) Employees feel that they are not living up to their full potential.
D) Employees are already being paid very well by industry standards.
E) Employees indicate that they are satisfied with their physical working environment.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

26) Bill Tarnofsky makes the following statement: "We must become more flexible if we are to
meet our personnel needs and maximize efficiency. In the past, we simply hired as many full-
time employees as we thought we needed. But this focus has caused us to lose many valuable
employees. We should offer flextime and job sharing options to help us keep and attract talented
employees."
Margaret Robin responds by saying: "Alternatives to traditional job design approaches can lead
to significant cost savings. Next year we are expected to have 500 more employees than our
current facility allows, but my analysis reveals that 600 of our employees could telecommute.
Therefore, we can avoid costly actions such as moving our offices or building extensions if these
workers became telecommuters. Job sharing can also reduce facility costs as well as payroll
costs."
Tarnofsky and Robin would be most likely to disagree about which of the following questions?
A) Would telecommuting likely lead to cost savings?
B) Does the organization have a moral obligation to offer flextime and job sharing options?
C) If offering a job sharing option would not reduce costs, should the organization still offer it?
D) Would the organization be better able to keep valuable employees if it offered flextime and
job sharing options?
E) Are any other organizational structure decisions important for the future of the organization?
Answer: C
Diff: 3 Type: MC
Skill: Analysis

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27) Bill Tarnofsky makes the following statement: "We must become more flexible if we are to
meet our personnel needs and maximize efficiency. In the past, we simply hired as many full-
time employees as we thought we needed. But this focus has caused us to lose many valuable
employees. We should offer flextime and job sharing options to help us keep and attract talented
employees."
Margaret Robin responds by saying: "Alternatives to traditional job design approaches can lead
to significant cost savings. Next year we are expected to have 500 more employees than our
current facility allows, but my analysis reveals that 600 of our employees could telecommute.
Therefore, we can avoid costly actions such as moving our offices or building extensions if these
workers became telecommuters. Job sharing can also reduce facility costs as well as payroll
costs."
Which of the following, if true, would strengthen Tarnofsky's argument?
A) Most of the jobs at the organization do not require the employee to be physically present.
B) Employees tend to believe that employees in nontraditional job arrangements are the most
vulnerable to layoffs.
C) Flextime arrangements are more common in service industries than in other industries.
D) The number of employees interested in flextime is higher than the number of employees
interested in job sharing.
E) A large number of people with desirable job skills cannot commit to taking full-time
positions.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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28) Bill Tarnofsky makes the following statement: "We must become more flexible if we are to
meet our personnel needs and maximize efficiency. In the past, we simply hired as many full-
time employees as we thought we needed. But this focus has caused us to lose many valuable
employees. We should offer flextime and job sharing options to help us keep and attract talented
employees."
Margaret Robin responds by saying: "Alternatives to traditional job design approaches can lead
to significant cost savings. Next year we are expected to have 500 more employees than our
current facility allows, but my analysis reveals that 600 of our employees could telecommute.
Therefore, we can avoid costly actions such as moving our offices or building extensions if these
workers became telecommuters. Job sharing can also reduce facility costs as well as payroll
costs."
If Robin's statements are all true, which of the following must also be true?
A) If the organization is forced to relocate its offices next year, then the number of
telecommuters must be fewer than 600.
B) If the number of telecommuters is more than 600, then the organization will be forced to
either move its offices or build an extension.
C) The organization cannot build an extension and move its office at the same time.
D) If the number of telecommuters is fewer than 600, then the organization will be forced to
either move its offices or build an extension.
E) The potential cost saving from telecommuting is greater than the potential cost saving from
job sharing.
Answer: A
Diff: 3 Type: MC
Skill: Analysis

29) Consider the following argument: Marcia's primary leadership trait is her ability to give
commands because if all else fails, she can always be an effective leader by directing others.
Which of the following, if true, would undermine this argument?
A) Marcia can give clear direction in uncertain circumstances.
B) Marcia relies on her experience in order to know the right thing to do when a decision needs
to be made.
C) Marcia has been known to be firm and decisive when dealing with problem employees.
D) Marcia is well-respected by her colleagues in the organization.
E) In almost all cases, Marcia's decisions are backed up by her superiors.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

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30) Consider the following argument: Marcia's command skills rely on her ability to get to know
what makes people "tick" and thereby communicate well with them; she must rely on this ability,
without which effectively leading people in any manner would not be possible. Which of the
following, if true, would strengthen this argument?
A) Marcia can quickly train new employees on company best practices and get them started on
their work.
B) Marcia relies on a small group of trusted colleagues to keep abreast of industry best practices.
C) Employees have reported that they feel that Marcia listens well and that she "gets" where they
are coming from.
D) Marcia's employees indicate that she tends to not spend much one-on-one time with them
personally.
E) Marcia's immediate superior likes to be able to get to know each of Marcia's employees
personally.
Answer: C
Diff: 3 Type: MC
Skill: Analysis

31) A top manager at ACME, Inc. makes the following statement: "We endorse an inclusive
definition of leadership. We believe that leadership is the ability to influence others to help the
organization achieve its goals and that any person in our organization can be a leader, even
entry-level personnel. Because of this view, we have built a culture in which every employee has
an equal opportunity to lead."
How is the manager's reasoning vulnerable to criticism?
A) It fails to account for the possibility that people who lack organizational authority can still be
leaders.
B) It fails to demonstrate that ACME's definition of leadership is the most popular definition.
C) It uses a variation of a commonly used definition of leadership.
D) It does not demonstrate that ACME's goals were well-chosen.
E) It ignores the effect that managerial authority has on one's ability to influence others.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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32) A top manager at ACME, Inc. makes the following statement: "We endorse an inclusive
definition of leadership. We believe that leadership is the ability to influence others to help the
organization achieve its goals and that any person in our organization can be a leader, even
entry-level personnel. Because of this view, we have built a culture in which every employee has
an equal opportunity to lead."
Which of the following, if true, would strengthen the Manager's argument?
A) Many other corporations have adopted ACME's definition of leadership.
B) ACME's cross-functional team structure allows individuals to influence other people despite a
lack of direct authority.
C) Most of the company's leaders have come from the sales department, and relatively few have
come from the quality control department.
D) ACME's human resources department makes outstanding efforts to recruit a diverse group of
employment candidates.
E) Executives at ACME are often recruited to serve in leadership positions at other
organizations.
Answer: B
Diff: 3 Type: MC
Skill: Analysis

33) A manager in the quality control division makes the following statement: "Our company's
employee handbook makes it clear that the company's performance depends on effective
leadership, and that all leaders at our company have managerial authority. Since my position as a
manager in the quality control division clearly gives me managerial authority, I must be a leader
in this company, and my leadership will guarantee the company's strong performance."
The manager's argument assumes all the following except which?
A) The employee handbook is a reliable source of information.
B) All managers are leaders.
C) All leaders are effective leaders.
D) Effective leadership is all the company needs for strong performance.
E) The manager was chosen for his position because of his leadership skills.
Answer: E
Diff: 3 Type: MC
Skill: Analysis

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34) Ben says: "We need to select the team members for the Dragon Owls project. I have
identified seven essential skills we need to make this project successful: leadership skills,
creative skills, conceptual skills, collaborative skills, technical skills, interpersonal skills, and
planning skills. Therefore, we should bring at least seven people on to the team."
Which of the following is assumed by Ben's argument?
A) No potential member of the Dragon Owls project has better leadership skills than conceptual
skills.
B) Every potential member of the Dragon Owls project has outstanding skills in at least one
respect.
C) Some potential members of the Dragon Owls project have creative skills and planning skills.
D) No potential member of the Dragon Owls team has both conceptual skills and interpersonal
skills.
E) Every potential member of the Dragon Owls team with technical skills also has collaborative
skills.
Answer: D
Diff: 3 Type: MC
Skill: Analysis

35) Ben says: "We need to select the team members for the Dragon Owls project. I have
identified seven essential skills we need to make this project successful: leadership skills,
creative skills, conceptual skills, collaborative skills, technical skills, interpersonal skills, and
planning skills. Therefore, we should bring at least seven people on to the team."
Which of the following demonstrates flawed reasoning most like Ben's reasoning?
A) Madeleine has seven requirements for her next car, but only the cars that have enough room
for her musical equipment are worth considering.
B) Noah wishes to visit seven cities during his vacation, but if some of them are close enough he
will not need to fly into seven different airports.
C) Simon's cold has seven symptoms, and so he will need to take seven different cold
medications to treat his cold.
D) Miriam is considering seven important criteria while selecting colleges, and so each of her top
seven choices must be her top choice in exactly one of those seven aspects.
E) Johann is choosing ingredients for a seven-course meal. Since the courses have no ingredients
in common, he will need to choose at least seven ingredients.
Answer: C
Diff: 3 Type: MC
Skill: Analysis

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36) Tim Raitt says: "We all agree that effective leadership is important, but that doesn't tell us
how to make sure that the people we put in leadership positions are actually leaders. In my view,
the most effective way to accomplish this goal is to identify the characteristics of effective
leaders and make sure that the people in leadership positions have those qualities."
Bonnie Haffior responds by saying: "You're on the right track, but effective leadership is less an
issue of the characteristics that effective leaders have and more of an issue of what effective
leaders do. If we can learn the most effective leadership behaviours, then we can identify future
leaders and improve the performance of those currently in leadership positions."
J. C. Kahn-Tinn chimes in: "Your theories would be wonderful if they worked, but in reality,
they don't. People who are effective leaders in one context can be ineffective in another.
Leadership approaches are not simply right or wrong. The most effective approach is to consider
the context of the situation and then identify the leadership approach that is most appropriate to
that situation."
Suppose that an executive who was an effective leader in organization X took a position with
organization Y and was ineffective there. Which of the following, if true, would support Bonnie
Haffior's likely explanation for the difference in performance?
A) The skills required in organization Y required the same kinds of leadership behaviour.
B) The executive lacked the qualities that lead to success in all leadership contexts.
C) The executive's actions at organization X were significantly different from those the executive
took at organization Y.
D) Many of the people who held the executive's position have been even less effective.
E) After leaving organization Y, the executive took a position at organization Z, where she was
even more effective than she was at organization X.
Answer: C
Diff: 3 Type: MC
Skill: Analysis

63
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37) Tim Raitt says: "We all agree that effective leadership is important, but that doesn't tell us
how to make sure that the people we put in leadership positions are actually leaders. In my view,
the most effective way to accomplish this goal is to identify the characteristics of effective
leaders and make sure that the people in leadership positions have those qualities."
Bonnie Haffior responds by saying: "You're on the right track, but effective leadership is less an
issue of the characteristics that effective leaders have and more of an issue of what effective
leaders do. If we can learn the most effective leadership behaviours, then we can identify future
leaders and improve the performance of those currently in leadership positions."
J. C. Kahn-Tinn chimes in: "Your theories would be wonderful if they worked, but in reality they
don't. People who are effective leaders in one context can be ineffective in another. Leadership
approaches are not simply right or wrong. The most effective approach is to consider the context
of the situation and then identify the leadership approach that is most appropriate to that
situation."
Based on the descriptions above, Tim Raitt and J. C. Kahn-Tinn would most likely disagree
about the answer to which of the following questions?
A) Is effective leadership essential for strong business performance?
B) Are there any characteristics that many effective leaders have in common?
C) Could having a personality type be an advantage in one leadership context and a disadvantage
in another?
D) What is the most appropriate definition of "effective leadership"?
E) What percentage of leaders are effective leaders?
Answer: C
Diff: 3 Type: MC
Skill: Analysis

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38) Tim Raitt says: "We all agree that effective leadership is important, but that doesn't tell us
how to make sure that the people we put in leadership positions are actually leaders. In my view,
the most effective way to accomplish this goal is to identify the characteristics of effective
leaders and make sure that the people in leadership positions have those qualities."
Bonnie Haffior responds by saying: "You're on the right track, but effective leadership is less an
issue of the characteristics that effective leaders have and more of an issue of what effective
leaders do. If we can learn the most effective leadership behaviours, then we can identify future
leaders and improve the performance of those currently in leadership positions."
J. C. Kahn-Tinn chimes in: "Your theories would be wonderful if they worked, but in reality,
they don't. People who are effective leaders in one context can be ineffective in another.
Leadership approaches are not simply right or wrong. The most effective approach is to consider
the context of the situation and then identify the leadership approach that is most appropriate to
that situation."
J. C. Kahn-Tinn's argument assumes which of the following?
A) It is possible to identify the leadership approach that would be effective in a given context
before leadership action is required.
B) The leadership approach required to be successful in a given context is different from the
approach required by any other context.
C) A person who has one of the qualities associated with leadership success is likely to possess
other qualities associated with leadership success.
D) The leadership approaches people most often take are also the ones that are appropriate in
most circumstances.
E) No characteristics are strongly connected with effective leadership.
Answer: A
Diff: 3 Type: MC
Skill: Analysis

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39) Some say there are almost as many definitions of leadership as there are people who have
tried to define the concept. Although different definitions sound similar, they have important
differences. Compare and contrast these definitions, for example:
Alistair: A leader is someone who can influence others and who has managerial authority.
Bentham: Leaders can influence a group toward the achievement of a vision or set of goals.
Cooke: Leaders exercise influence and control over other members to help a group or
organization achieve the organization's goals.
Which of the following would be a leader according to Bentham's definition of leadership but
would not be a leader according to Alistair's definition of leadership?
A) A CEO who can shape the direction of a large organization
B) An executive who is unable to affect the actions of others due to fundamental concerns about
his competence
C) A blogger with a wide audience who is effective at convincing others to adopt her political
opinions
D) An isolated individual with strong opinions about the most effective ways to run a business
while respecting codes of ethics
E) A middle manager who directs those under her authority to achieve the goals defined by top
management
Answer: C
Diff: 3 Type: MC
Skill: Analysis

40) Some say there are almost as many definitions of leadership as there are people who have
tried to define the concept. Although different definitions sound similar, they have important
differences. Compare and contrast these definitions, for example:
Alistair: A leader is someone who can influence others and who has managerial authority.
Bentham: Leaders can influence a group toward the achievement of a vision or set of goals.
Cooke: Leaders exercise influence and control over other members to help a group or
organization achieve the organization's goals.
Which of the following would be a leader according to Bentham's definition of leadership but
would not be a leader according to Cooke's definition of leadership?
A) An executive who influences other employees to reject their company's vision of social
responsibility
B) A manager who excels at executing clearly-defined tasks but consistently fails at tasks that
are more fluid and flexible
C) An employee who defines his or her personal goals based on the company's goals
D) A division leader who wields power based on fear instead of professional duty
E) A corporate officer who inspires others by describing a compelling vision of the future
Answer: A
Diff: 3 Type: MC
Skill: Analysis

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41) A leadership consultant says: "Definitions of leadership tend to focus on the ability to
influence others. Some definitions believe that managerial authority is necessary, and others
believe that the influence leaders exercise must advance their organization's goals. All these
definitions, however, leave out the central issue of consent. Someone cannot fairly be called a
leader if he or she influences people only through threats and fear."
The leadership consultant's criticism of other definitions of leadership is based on the fact that
the leadership consultant has a different definition of which of the following?
A) "Influence"
B) "Others"
C) "Goals"
D) "People"
E) "Threats"
Answer: A
Diff: 3 Type: MC
Skill: Analysis

42) A leadership consultant says: "Definitions of leadership tend to focus on the ability to
influence others. Some definitions believe that managerial authority is necessary, and others
believe that the influence leaders exercise must advance their organization's goals. All these
definitions, however, leave out the central issue of consent. Someone cannot fairly be called a
leader if he or she influences people only through threats and fear."
Which of the following principles would most strongly justify the leadership consultant's
argument?
A) Effective leadership is an essential element of strong business performance.
B) Getting employees to perform according to directives is more important than the measures
required to accomplish an organization's goals.
C) Any leadership strategy needs an effective communications strategy in order to be effective.
D) A leader must be able to persuade people to do things that they are not required to do.
E) People who are likely to insist that managerial authority is an essential element of leadership
are also likely to insist that the achievement of managerial goals is also an essential element of
leadership.
Answer: D
Diff: 3 Type: MC
Skill: Analysis

9.3 True/False Questions

1) Both organizational citizenship and performance behaviours benefit organizations.

Answer: TRUE
Diff: 2 Type: TF Page Ref: 184
Skill: Knowledge
Objective: 9.1

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2) Job satisfaction is the overall attitude that employees have about their workplace.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 186
Skill: Knowledge
Objective: 9.2

3) Extraversion is the most important of the Big Five personality traits.

Answer: FALSE
Diff: 2 Type: TF Page Ref: 185
Skill: Comprehension
Objective: 9.2

4) High levels of job satisfaction generally lead to higher levels of employee productivity.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 186
Skill: Comprehension
Objective: 9.2

5) People with an internal locus of control believe that they control what happens to them.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 186
Skill: Comprehension
Objective: 9.2

6) Individuals high in Machiavellianism tend to be rational and non-emotional, may be willing to

lie to attain their personal goals, put little emphasis on loyalty and friendship.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 186
Skill: Comprehension
Objective: 9.2

7) People who have high self-esteem are more likely to focus on intrinsic rewards, while people
with low self-esteem are more likely to focus on external rewards.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 186
Skill: Comprehension
Objective: 9.2

8) Attitudes contain three components: satisfaction, performance, and motivation.

Answer: FALSE
Diff: 1 Type: TF Page Ref: 186
Skill: Knowledge
Objective: 9.2

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9) Marvin thinks that smoking and over-eating are dangerous, but he nevertheless does both
because he finds the behaviour pleasurable. Marvin is therefore unlikely to experience cognitive
dissonance.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 186
Skill: Application
Objective: 9.2

10) Not-for-profit organizations face fewer problems in managing psychological contracts than
for-profit business firms do.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 187
Skill: Comprehension
Objective: 9.3

11) A psychological contract is a person's set of expectations regarding what he or she will
contribute to the organization and what the organization will provide in return.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 187
Skill: Knowledge
Objective: 9.3

12) Classical motivation theory assumes that workers are motivated solely by money.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 188
Skill: Knowledge
Objective: 9.4

13) Theory X and Y distinctions are somewhat simplistic and offer little concrete basis for
managerial action.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 190
Skill: Knowledge
Objective: 9.4

14) The Hawthorne studies confirmed the scientific management viewpoint that worker
productivity was a direct result of higher pay.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 189
Skill: Knowledge
Objective: 9.4

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15) The "Hawthorne effect" is the tendency for workers to be more productive when they believe
that they are receiving special attention from management.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 189
Skill: Knowledge
Objective: 9.4

16) Maslow's hierarchy of human needs states that lower level needs must be met before a
person will seek to meet higher level needs.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 190
Skill: Knowledge
Objective: 9.4

17) Two-factor theory states that hygiene factors affect motivation and satisfaction only if they
are absent or fail to meet expectations.
Answer: FALSE
Diff: 3 Type: TF Page Ref: 191
Skill: Knowledge
Objective: 9.4

18) Herzberg's motivating factors include salary (pay) as one of the primary motivational factors.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 190
Skill: Knowledge
Objective: 9.4

19) Individuals who are high in need for achievement tend to set moderately difficult goals and
to make moderately risky decisions.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 191
Skill: Knowledge
Objective: 9.4

20) Expectancy theory states that people compare what they contribute to their job with what
they get in return compared to others.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 191
Skill: Knowledge
Objective: 9.4

21) For an individual to feel equitably treated, the input/outcome ratio must be similar to the
other individual's ratio with whom he or she is comparing.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 192
Skill: Comprehension
Objective: 9.4
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22) The fundamental assumption of equity theory is that workers prefer a workplace where all
employees are paid equally.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 192
Skill: Comprehension
Objective: 9.4

23) Reinforcement includes both rewards and punishments.

Answer: TRUE
Diff: 1 Type: TF Page Ref: 192
Skill: Knowledge
Objective: 9.5

24) Susan wants to use reinforcement to improve the performance of her employees. She has
already identified the specific behaviours that she wants her employees to exhibit. Her next step
in the reinforcement process is to keep specific records of employee behaviour.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 192
Skill: Application
Objective: 9.5

25) Managers generally like positive reinforcement as a motivation strategy, but they don't often
use it because it costs the company too much money to give the necessary rewards.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 192
Skill: Application
Objective: 9.5

26) Mary's boss withholds positive consequences when Mary exhibits undesirable behaviours.
This is an example of the omission strategy of reinforcement.
Answer: TRUE
Diff: 3 Type: TF Page Ref: 192
Skill: Comprehension
Objective: 9.5

27) John's boss withholds negative consequences when John exhibits desired behaviours. This is
an example of the use of negative reinforcement.
Answer: TRUE
Diff: 3 Type: TF Page Ref: 192
Skill: Comprehension
Objective: 9.5

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28) Participative management is a popular motivational tool because it promises a financial gain
for the employees through participation in the profits earned by the firm.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 193
Skill: Comprehension
Objective: 9.5

29) At Morning Star Company—the world's largest tomato processor—workers can set their
own salaries.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 193
Skill: Knowledge
Objective: 9.5

30) Empowerment is not desired by all employees.

Answer: TRUE
Diff: 1 Type: TF Page Ref: 193
Skill: Knowledge
Objective: 9.5

31) Problem-solving teams are based on the idea that the best solutions to problems are likely to
come from the employees who actually do the work.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 193
Skill: Comprehension
Objective: 9.5

32) At Levi Strauss, team members who were faster workers resented slower workers because
they reduced the team's total output.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 194
Skill: Comprehension
Objective: 9.5

33) Job enrichment and job redesign programs are used to increase satisfaction by putting
motivating factors into jobs when the job itself is lacking these factors.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 194
Skill: Comprehension
Objective: 9.5

34) Flextime programs have generally failed as a tool to improve job satisfaction because they
place an extra burden on the supervisor.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 195
Skill: Comprehension
Objective: 9.5
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35) In a compressed workweek, employees work fewer days per week but more hours per day.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 195
Skill: Knowledge
Objective: 9.5

36) In the typical flextime schedule, there are hours which the employee must be on the job and
the remaining hours are up to the employee to select.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 195
Skill: Knowledge
Objective: 9.5

37) Leadership is the process of influencing people so that they are motivated to behave in ways
that help to achieve the firm's objectives.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 197
Skill: Knowledge
Objective: 9.6

38) Leadership and management mean essentially the same thing.

Answer: FALSE
Diff: 2 Type: TF Page Ref: 198
Skill: Comprehension
Objective: 9.6

39) Managers tend to focus on monitoring results and correcting deviations, whereas leaders tend
to focus on energizing people to help reach goals.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 198
Skill: Knowledge
Objective: 9.6

40) All managers are leaders but not all leaders are managers.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 198
Skill: Knowledge
Objective: 9.6

41) Organizations need both leadership and management if they are to be effective.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 198
Skill: Knowledge
Objective: 9.6

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42) Legitimate power and authority are two quite different things.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 198-199
Skill: Comprehension
Objective: 9.6

43) Expert power is the most effective type of power because followers will defer to the leader's
expertise when situations are complex.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 198-199
Skill: Comprehension
Objective: 9.6

44) In the democratic managerial style, subordinates are asked to vote on which alternative is the
best, with the alternative getting the most votes being the one that is selected.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 199
Skill: Comprehension
Objective: 9.7

45) The situational (contingency) approach to managing states that a manager should always
have a backup plan (a contingent plan) just in case the first plan doesn't work.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 199
Skill: Knowledge
Objective: 9.7

46) The path-goal theory of leadership suggests that the primary functions of a leader are to
make valued or desired rewards available in the workplace.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 200
Skill: Knowledge
Objective: 9.7

47) The decision tree approach to leadership assumes that the leader is unable to display different
leadership styles in different situations.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 200
Skill: Knowledge
Objective: 9.7

48) The leader-member exchange (LMX) model suggests that supervisors establish a special
relationship with a small number of trusted subordinates (the "in-group").
Answer: TRUE
Diff: 2 Type: TF Page Ref: 200
Skill: Knowledge
Objective: 9.7
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49) Women tend to be more democratic when making decisions, whereas men tend to be more
autocratic.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 202
Skill: Knowledge
Objective: 9.8

50) Transformational leadership involves managing change.

Answer: TRUE
Diff: 2 Type: TF Page Ref: 200
Skill: Knowledge
Objective: 9.8

51) Strategic leadership may be seen as an extension of transactional leadership.

Answer: FALSE
Diff: 2 Type: TF Page Ref: 201
Skill: Comprehension
Objective: 9.8

52) Few studies have specifically attempted to test the meaning and impact of charismatic
leadership.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 201
Skill: Knowledge
Objective: 9.8

53) Female leaders tend to be more nurturing and supportive than male leaders.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 202
Skill: Knowledge
Objective: 9.8

54) Employee behaviour is the pattern of actions by the members of an organization that directly
or indirectly influences the organization's effectiveness.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 184
Skill: Knowledge
Objective: 9.1
ESL: Alternate/ESL

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55) Emotional intelligence, or emotional quotient (EQ), refers to the extent to which people
possess social skills, are self-aware, can manage their emotions, can motivate themselves, and
can express empathy for others.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 185
Skill: Knowledge
Objective: 9.2
ESL: Alternate/ESL

56) Job fulfillment reflects the extent to which people have positive attitudes toward their jobs.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 186
Skill: Knowledge
Objective: 9.2
ESL: Alternate/ESL

57) A psychological contract is the set of expectations held by an employee concerning what he
or she will contribute to an organization (referred to as contributions) and what the organization
will provide to the employee (referred to as inducements).
Answer: TRUE
Diff: 1 Type: TF Page Ref: 187
Skill: Knowledge
Objective: 9.3
ESL: Alternate/ESL

58) The employer awareness effect is the tendency for workers' productivity to increase when
they feel they are getting special attention from management.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 189
Skill: Knowledge
Objective: 9.3
ESL: Alternate/ESL

59) Theory Y is a management approach based on the belief that people must be forced to be
productive because they are naturally lazy, irresponsible, and uncooperative.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 190
Skill: Knowledge
Objective: 9.4
ESL: Alternate/ESL

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60) Controlling and modifying employee behaviour through the use of systematic rewards and
punishments for specific behaviours is known as reinforcement.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 192
Skill: Knowledge
Objective: 9.5
ESL: Alternate/ESL

61) Coercive power is the power to force another person to comply by means of psychological,
emotional, or physical threat.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 199
Skill: Knowledge
Objective: 9.6
ESL: Alternate/ESL

62) A leadership approach focused on identifying the essential traits that distinguish leaders is
known as the behavioural approach.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 199
Skill: Knowledge
Objective: 9.7
ESL: Alternate/ESL

63) Transactional leadership is the set of abilities that allows a leader to recognize the need for
change, to create a vision to guide that change, and to execute the change effectively.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 200
Skill: Knowledge
Objective: 9.8
ESL: Alternate/ESL

9.4 Short Answer Questions

1) What are performance behaviours?

Answer: The behaviours that relate directly to performing a job
Diff: 1 Type: SA Page Ref: 184
Skill: Comprehension
Objective: 9.1

2) What is organizational citizenship?

Answer: Behaviour that provides benefits to the organization, but in more indirect ways than job
performance (for example, by being willing to work overtime)
Diff: 1 Type: SA Page Ref: 184
Skill: Comprehension
Objective: 9.1

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3) What is personality?
Answer: The relatively stable set of psychological attributes that distinguish one person from
another
Diff: 1 Type: SA Page Ref: 185
Skill: Comprehension
Objective: 9.2

4) List and briefly discuss the "big five" personality traits.

Answer: Agreeableness (ability to get along with others), conscientiousness (being systematic,
careful, responsible, and self-disciplined), emotionality (the degree to which people tend to be
positive or negative in their outlook), extraversion (sociability, talkativeness, assertiveness), and
openness (refers to how open or rigid a person is in his or her beliefs).
Diff: 2 Type: SA Page Ref: 185
Skill: Comprehension
Objective: 9.2

5) What is meant by emotional intelligence?

Answer: Emotional intelligence refers to the extent to which people are self-aware, can manage
their emotions, can motivate themselves, express empathy for others, and possess social skills.
Diff: 2 Type: SA Page Ref: 185
Skill: Comprehension
Objective: 9.2

6) Explain the locus of control concept. How are individuals with an internal locus of control
different than individuals with an external locus of control?
Answer: The locus of control concept focuses on the extent to which people believe that they
control what happens to them. Individuals with an internal locus of control believe that they
control what happens to them. For example, they believe that if they work hard, they will get a
promotion. Individuals with an external locus of control believe that fate or luck controls what
happens to them. For example, an employee who does not get a promotion may attribute it to the
manipulative political behaviour of others.
Diff: 2 Type: SA Page Ref: 186
Skill: Analysis
Objective: 9.2

7) What characteristics to people high in Machiavellianism tend to possess?

Answer: Individuals high in Machiavellianism tend to be rational and non-emotional, may be
willing to lie to attain their personal goals, put little emphasis on loyalty and friendship, and
enjoy manipulating other people.
Diff: 2 Type: SA Page Ref: 186
Skill: Comprehension
Objective: 9.2

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8) What are attitudes?
Answer: Attitudes reflect our beliefs and feelings about specific ideas, situations, or other
people.
Diff: 2 Type: SA Page Ref: 186
Skill: Knowledge
Objective: 9.2

9) What are the three components of attitudes?

Answer: The three components of attitudes are cognition (the knowledge a person has about
someone or something), affect (a person's feelings toward someone or something), and intention
(a person's plan to behave in a certain way).
Diff: 2 Type: SA Page Ref: 186
Skill: Knowledge
Objective: 9.2

10) What is job satisfaction?

Answer: It reflects the extent to which people have positive attitudes about their jobs. A closely
related concept (morale. refers to the overall attitude people have toward their workplace.
Diff: 1 Type: SA Page Ref: 186
Skill: Comprehension
Objective: 9.2

11) What is a psychological contract?

Answer: The set of expectations held by an employee concerning what he or she will
contributed to an organization
Diff: 1 Type: SA Page Ref: 187
Skill: Comprehension
Objective: 9.3

12) When is a person-job fit considered to be good?

Answer: A good person-job fit is one in which the employee's contributions match the
inducements the organization offers.
Diff: 1 Type: SA Page Ref: 188
Skill: Comprehension
Objective: 9.3

13) What is the only factor motivating workers according to the classical theory of motivation?
Answer: Money
Diff: 2 Type: SA Page Ref: 188
Skill: Knowledge
Objective: 9.4

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14) What is the Hawthorne effect?
Answer: The Hawthorne effect is the finding that productivity rises in response to almost any
management action that workers interpret as special attention.
Diff: 2 Type: SA Page Ref: 189
Skill: Comprehension
Objective: 9.4

15) What term did Douglas McGregor use to describe management assumptions that workers are
naturally energetic, growth-oriented, self-motivated, and interested in being productive?
Answer: Theory Y
Diff: 2 Type: SA Page Ref: 190
Skill: Knowledge
Objective: 9.4

16) List the five levels of needs in Maslow's hierarchy of needs, from lowest to highest.
Answer: Physiological, security, social, esteem, and self-actualization
Diff: 2 Type: SA Page Ref: 190
Skill: Knowledge
Objective: 9.4

17) Why is the Hawthorne effect important?

Answer: The Hawthorne effect is important because it provides an alternate explanation for why
workers behave the way they do. It is obviously important for managers to understand why
workers behave the way they do, and knowledge of the Hawthorne Effect helps managers with
this understanding.
Diff: 2 Type: SA Page Ref: 189
Skill: Comprehension
Objective: 9.4

18) What are the motivational factors in Herzberg's two-factor theory?

Answer: Recognition, the work itself, responsibility, achievement, and growth
Diff: 2 Type: SA Page Ref: 190
Skill: Knowledge
Objective: 9.4

19) According to the two-factor theory, how should managers enhance motivation?
Answer: According to this theory, managers should follow a two-step approach to enhance
motivation. First, managers must ensure that hygiene factors are acceptable because this will
reduce dissatisfaction. Then they must offer motivational factors because these will improve the
job satisfaction and motivation levels of their subordinates.
Diff: 2 Type: SA Page Ref: 190
Skill: Comprehension
Objective: 9.4

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20) What are the hygiene factors in Herzberg's two-factor theory?
Answer: Hygiene factors include supervisors, working conditions, interpersonal relations, pay,
security, and company policies and administration.
Diff: 2 Type: SA Page Ref: 190
Skill: Knowledge
Objective: 9.4

21) What are the three needs in McClelland's acquired needs theory?
Answer: The three needs are need for achievement (the desire to accomplish a goal or task as
effectively as possible), the need for affiliation (the need for human companionship), and the
need for power (the need to control others).
Diff: 2 Type: SA Page Ref: 191
Skill: Knowledge
Objective: 9.4

22) What is meant by equity theory?

Answer: The theory that people compare (1) what they contribute to their job with what they get
in return and (2) their input/ output ratio with that of other employees.
Diff: 2 Type: SA Page Ref: 192
Skill: Knowledge
Objective: 9.5

23) What is behaviour modification?

Answer: With behaviour modification, companies try to control, alter, or modify workers'
behaviour through systematic rewards and punishments for specific behaviours.
Diff: 2 Type: SA Page Ref: 192
Skill: Comprehension
Objective: 9.5

24) What is involved in participative management and empowerment?

Answer: It means tapping into workers' knowledge about the job, encouraging them to be self-
motivated and to make suggestions for improving the way jobs are done. It gives workers more
authority and responsibility so that they feel they are a real part of the company's success.
Diff: 2 Type: SA Page Ref: 193
Skill: Comprehension
Objective: 9.5

25) List three common ways to implement job redesign.

Answer: Combining tasks, forming natural work groups, and establishing client relationships
Diff: 2 Type: SA Page Ref: 194
Skill: Knowledge
Objective: 9.5

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26) What is the difference between job enrichment and job redesign?
Answer: Job redesign is the more general term and refers to restructuring work to achieve a
more satisfactory fit between workers and their jobs. Job redesign can motivate individuals with
strong needs for career growth or achievement. Job enrichment is a specific idea which involves
adding one or more motivating factors to job activities.
Diff: 2 Type: SA Page Ref: 194
Skill: Comprehension
Objective: 9.5

27) What is flextime?

Answer: Flextime is designed to increasing job satisfaction by allowing workers to adjust their
work schedules on a daily or weekly basis.
Diff: 2 Type: SA Page Ref: 195
Skill: Comprehension
Objective: 9.5

28) Identify the advantages (and disadvantages) that telecommuting provides for both the
company and its employees.
Answer: The advantages and disadvantages for both individuals and the company are
summarized in Table 9.1.
Diff: 2 Type: SA Page Ref: 196
Skill: Comprehension
Objective: 9.5

29) What is leadership?

Answer: It is the processes and behaviours used by managers to motivate, inspire, and influence
the behaviour of others to meet objectives.
Diff: 2 Type: SA Page Ref: 197
Skill: Comprehension
Objective: 9.6

30) What is power? What are the five sources of power that are available to leaders?
Answer: Power is the ability to affect the behaviour of others. The five sources of power are
legitimate power (which is synonymous with formal authority), reward power (the power to give
or withhold rewards), coercive power (the power to punish others), expert power (the power that
comes from expert knowledge about certain things), and referent power (the power that comes
from being the kind of person that other people want to emulate).
Diff: 2 Type: SA Page Ref: 198-199
Skill: Comprehension
Objective: 9.6

31) What is the key difference between the trait approach and the behavioural approach?
Answer: Trait theory focuses on the traits of leaders, while behavioural theory focuses on actual
leader behaviour.
Diff: 2 Type: SA Page Ref: 199
Skill: Comprehension
Objective: 9.6
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32) List the three basic managerial styles.
Answer: Autocratic, democratic, and free-rein
Diff: 2 Type: SA Page Ref: 199
Skill: Knowledge
Objective: 9.7

33) What is the key difference between the trait approach and the situational approach?
Answer: The trait approach assumed that effective leaders had certain traits that would allow
them to be effective in any situation. In contrast, the situational approach assumes that different
situations demand different leadership styles (this implies that a leader with certain traits might
be effective in one situation but not in another).
Diff: 2 Type: SA Page Ref: 199
Skill: Comprehension
Objective: 9.7

34) What was the goal of the behavioural approach to leadership?

Answer: To determine how the behaviours of effective leaders differed from the behaviours of
less effective leaders.
Diff: 2 Type: SA Page Ref: 199
Skill: Comprehension
Objective: 9.7

35) What is the essence of the situational approach to leadership?

Answer: That different leadership styles are effective in different situations
Diff: 2 Type: SA Page Ref: 199
Skill: Comprehension
Objective: 9.7

36) In path-goal theory, what is the primary function of a leader?

Answer: The path-goal theory says that the primary functions of a leader are to make valued or
desired rewards available in the workplace, and to clarify for the subordinate s the kinds of
behaviours that will lead to goal accomplishment and valued rewards.
Diff: 2 Type: SA Page Ref: 199
Skill: Comprehension
Objective: 9.7

37) What is the key assumption in the leader-member exchange (LMX) model?
Answer: The LMX model suggests that supervisors establish a special relationship with a small
number of trusted subordinates (the "in-group"), and these in-group members usually receive
special duties and special privileges.
Diff: 2 Type: SA Page Ref: 199
Skill: Comprehension
Objective: 9.7

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38) How have managerial styles changed as organizations have become flatter and workers more
empowered?
Answer: Managers have shifted from an autocratic to a more democratic style.
Diff: 2 Type: SA Page Ref: 200
Skill: Comprehension
Objective: 9.8

39) What is charismatic leadership?

Answer: A type of influence based on a leader's personal charisma
Diff: 2 Type: SA Page Ref: 201
Skill: Comprehension
Objective: 9.8

40) What are the three characteristics typically exhibited by charismatic leaders?
Answer: They can envision future trends and patterns, they are able to energize others by
demonstrating personal excitement, and they enable others by supporting them.
Diff: 2 Type: SA Page Ref: 201
Skill: Comprehension
Objective: 9.8

41) What is ethical leadership?

Answer: Maintaining high ethical standards and holding followers to the same high standards
Diff: 2 Type: SA Page Ref: 203
Skill: Comprehension
Objective: 9.8

42) What is virtual leadership?

Answer: Leadership that is practised even when leaders and followers do not interact on a face-
to-face basis
Diff: 2 Type: SA Page Ref: 203
Skill: Comprehension
Objective: 9.8

9.5 Essay Questions

1) Differentiate between performance behaviours, organizational citizenship behaviours, and

counterproductive behaviours.
Answer: Performance behaviours directly contribute to productivity and performance.
Organizational citizenship behaviours are behaviours that make a positive overall contribution to
the organization; such behaviours are often observed when employees go above and beyond
what is expected of them. Counterproductive behaviours detract from performance and actually
cost the organization.
Diff: 1 Type: ES Page Ref: 184
Skill: Comprehension
Objective: 9.1

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2) What is emotional intelligence? Why is it important for employees in organizations?
Answer: Emotional intelligence refers to the extent to which people are self-aware, can manage
their emotions, can motivate themselves, can express empathy for others, and possess social
skills. People with high emotional intelligence may perform better than others, especially in jobs
that require a lot of interpersonal interaction or that require directing others. These activities are
obviously very important to the smooth functioning of organizations.
Diff: 2 Type: ES Page Ref: 185
Skill: Comprehension
Objective: 9.2

3) Briefly describe the "Big Five" personality traits. How might these traits influence a person's
success in their business career?
Answer: The Big Five personality traits are agreeableness (the ability to get along with others),
conscientiousness (the extent to which a person is organized, thorough, responsible, and self-
disciplined), emotionality (the extent to which people tend to be positive or negative in their
outlook and behaviours toward others), extraversion (a person's comfort level with
relationships), and openness (the extent to which a person is open to new ideas). These traits are
likely to have a major impact on a person's career. An employee who is agreeable, conscientious,
positive in their outlook, extroverted, and open to new ideas is much more likely to be successful
than an employee who is disagreeable, not conscientious, negative in their outlook, introverted,
and not open to new ideas.
Diff: 2 Type: ES Page Ref: 185
Skill: Application
Objective: 9.2

4) What is the difference between self-efficacy and self-esteem?

Answer: Self-efficacy is a person's belief about his or her capabilities to perform a task. People
with high self-efficacy believe that they can perform well on a specific task, but people with low
self-efficacy have doubts about their ability to perform a specific task. A person's belief in their
ability to perform a task results in their being more self-assured and better able to focus their
attention on performance. Self-esteem is the extent to which a person believes that he or she is a
worthwhile and deserving individual. A person with high self-esteem is more likely to seek
higher-status jobs, be more confident in his or her ability to achieve higher levels of
performance, and focus on intrinsic satisfaction like feeling good about doing useful work. By
contrast, a person with low self-esteem may be more content to remain in a lower-level job, be
less confident of his or her ability, and focus more on extrinsic rewards such as money. Research
suggests that the role of self-esteem is important in organizations in many different cultures.
Diff: 2 Type: ES Page Ref: 186
Skill: Comprehension
Objective: 9.2

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5) How would you tell if a given individual was high in Machiavellianism?
Answer: A person who is high in Machiavellianism exhibits behaviour which is designed to gain
power and control. Individuals high in Machiavellianism tend to be rational and non-emotional.
They may also be willing to lie to attain their personal goals, and to put little emphasis on loyalty
and friendship. They enjoy manipulating other people. By contrast, people low in
Machiavellianism exhibit behaviours that are opposite.
Diff: 2 Type: ES Page Ref: 186
Skill: Comprehension
Objective: 9.2

6) Why is employee job satisfaction important to a manager? What are the benefits when
employees are satisfied with their jobs? What happens when employees are not satisfied?
Answer:
Satisfied workers are:
- more likely to work hard and try to make useful contributions to the organization
- less likely to file grievances
- less likely to exhibit negative behaviours
- more likely to come to work daily
- more likely to remain with the organization

When workers are dissatisfied:

- they are more likely to be absent due to minor illness
- the company experiences higher turnover
- there are numerous vacancies which disrupt production
- there is decreased productivity
- the company experiences high retraining costs
Diff: 3 Type: ES Page Ref: 186
Skill: Comprehension
Objective: 9.2

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7) Explain what each of the three components of attitudes mean in practical terms.
Answer: The three components of attitudes are cognition, affect, and intention. Cognition is the
knowledge a person has about someone or something. For example, you may like a class because
the textbook is interesting, the class meets at a convenient time for you, the instructor is
knowledgeable, and the workload is light. Cognitions are based on perceptions about reality, and
perceptions agree with reality to varying degrees. When two sets of cognitions or perceptions are
contradictory or incongruent, a person experiences cognitive dissonance. Cognitive dissonance
also occurs when people behave in a way that is inconsistent with their attitudes. For example, a
person who thinks that smoking and overeating are dangerous may nevertheless do both because
the person finds the behaviour pleasurable. The person may try to reduce the anxiety and
discomfort that is associated with the cognitive dissonance by, for example, deciding to go on a
diet (but not until next week!). A person's affect is his or her feelings toward someone or
something. For example, you may like one of your classes and dislike another one. If the class
you dislike is an elective, you may not be particularly concerned about your participation or your
final grade. But if the class you like is required for your major, you may work very hard to get a
good grade. Intention guides a person's behaviour. If you like a certain instructor, you may
intend to take another class from that instructor next term. But intentions are not always
translated into actual behaviour. If the instructor's course next term is scheduled for 8:30 a.m.,
you may decide that it is not convenient for you take it.
Diff: 3 Type: ES Page Ref: 186
Skill: Application
Objective: 9.2

8) What are the key features of the psychological contract?

Answer: A psychological contract is a person's set of expectations regarding what he or she will
contribute to the organization and what it will provide in return. An individual makes a variety of
contributions to the organization; contributions can include effort, skills, ability, time, and
loyalty. In return for these contributions, the organization provides inducements to the
individual; these inducements can include pay, career opportunities, job security, status, etc. All
organizations face the basic challenge of managing psychological contracts: They want value
from their employees and they need to give employees the right inducements. Recent trends in
downsizing and cutbacks have complicated the process of managing psychological contracts. In
addition, globalization of business is also a challenge.
Diff: 2 Type: ES Page Ref: 187
Skill: Comprehension
Objective: 9.3

9) How are equity theory and the psychological contract connected?

Answer: A psychological contract is a person's set of expectations regarding what he or she will
contribute to the answer. In both situations, employees compare a ratio of contribution to return.
With equity theory, one employee compares his or her ratio with another employee's ratio.
According to both theories, employees need to know that they are being treated fairly.
Diff: 2 Type: ES Page Ref: 187,192
Skill: Comprehension
Objective: 9.3

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10) Outline the basic characteristics of the classical theory of motivation. Can this theory be used
today by business firms? Explain.
Answer:
- Workers motivated solely by money
- Meant that managers had to design the work process in such a way as to recognize this
motivation for money
- Important to realize that factors other than money often contribute to job satisfaction

Examples of the other views are:

- Results of Hawthorne Studies
- Expectancy theory
- Theory X and Y
- Equity theory
- Maslow's Hierarchy of Needs
- Goal setting theory
- Two-factor theory
Diff: 2 Type: ES Page Ref: 188
Skill: Comprehension
Objective: 9.4

11) How do the conclusions of the classical theory of motivation differ from the conclusions of
the Hawthorne studies?
Answer: According to the classical theory of motivation, workers are motivated solely by
money. Taylor reasoned that if workers are motivated by money, then paying them more should
prompt them to produce more. Researchers studying the Hawthorne Works of Western Electric
found unexpected results. In this study, increase pay failed to increase productivity. The
researchers found that productivity rose in response to almost any management action that
workers interpreted as special attention. Known as the Hawthorne effect, this finding had a major
influence on human relations theory.
Diff: 2 Type: ES Page Ref: 188
Skill: Comprehension
Objective: 9.4

12) Describe the human-resources model of motivational theory and identify its author.
Answer:
- Theory X, Theory Y
- Fundamental beliefs about people and their attitudes
- For Theory X managers, people are lazy, lack ambition, self-centred, resist change, are gullible
and not very bright
- For Theory Y managers, people are just the opposite
- Proposed by Douglas McGregor
Diff: 1 Type: ES Page Ref: 190
Skill: Comprehension
Objective: 9.4

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13) What are the characteristics of a manager with a Theory X belief about people? How does
this differ from one who has a Theory Y belief about people?
Answer: Managers who subscribe to Theory X tend to believe that people are naturally lazy and
uncooperative and must therefore be either punished or rewarded to be made productive.
Managers who subscribe to Theory Y tend to believe that people are naturally energetic, growth-
oriented, self-motivated, and interested in being productive.
Diff: 1 Type: ES Page Ref: 190
Skill: Comprehension
Objective: 9.4

14) Describe the essential features of the hierarchy of needs model.

Answer: The model proposes that there are five levels of human needs that are arranged
hierarchically, and that higher-level needs to not emerge until lower-level needs have been
largely satisfied. Once a need has been satisfied, it is no longer a motivator of behaviour. The
five levels of needs are physiological (the need for food and water), security (the need to feel
safe), social (the need to interact with others), esteem (the need for status and recognition), and
self-actualization (the need to become what one is capable of becoming and to achieve
meaningful goals).
Diff: 1 Type: ES Page Ref: 190
Skill: Comprehension
Objective: 9.4

15) How can managers use the needs at each level of the hierarchy of needs to achieve business
goals?
Answer: Managers can identify the needs that each employee has and specifically try to satisfy
the need level they are currently exhibiting. For example, if physiological needs are important to
any employee, providing a good salary will likely help the employee satisfy his or her need for
food and shelter. Examples of what can be done for employees at other need levels are as
follows: security (pension plan); social (friends at work); esteem (job title); self-actualization
(challenging job).
Diff: 2 Type: ES Page Ref: 190
Skill: Comprehension
Objective: 9.4

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16) Describe the motivating factors of Herzberg's two-factor theory. What is the role of salary
and working conditions in Herzberg's theory of job satisfaction?
Answer:
- Hygiene factors such as working conditions
- Motivating factors such as recognition for a job well done

- Motivation factors (satisfaction):

* Achievement
* Recognition
* The work itself
* Responsibility
* Advancement and growth

- Hygiene factors (dissatisfaction):

* Working conditions
* Interpersonal relations
* Pay and security
* Company policies and administration
Diff: 2 Type: ES Page Ref: 191
Skill: Comprehension
Objective: 9.4

17) How does McClelland's acquired needs theory differ from the motivation theories of Maslow
and Herzberg?
Answer: In McClelland's acquired needs theory there are three needs that motivate people:
achievement, affiliation, and power. One of these three needs typically dominates a given
individual's need structure. People who are high in need for achievement have a strong desire to
accomplish a goal or task as effectively as possible. They tend to set moderately difficult goals
and to make moderately risky decisions. Individuals with a high need for affiliation focus on
human companionship. They want reassurance and approval from others, and are genuinely
concerned about others' feelings. Individuals with a high need for power are driven by the desire
to control their environment (including the financial, material, information, and human resource
aspects). Unlike Maslow's theory, McClelland's theory is not hierarchical, i.e., there are no
higher-level or lower-level needs, and different needs do not emerge at different times. Rather,
McClelland says the each individual's behaviour is dominated by one of three needs:
achievement, affiliation, or power. Unlike Herzberg's theory, McClelland's theory does not
divide needs into two basic categories (motivators and hygienes) that apply to all people. Rather,
McClelland says that different individuals are motivated by different needs (achievement,
affiliation, or power).
Diff: 2 Type: ES Page Ref: 191
Skill: Analysis
Objective: 9.4

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18) How does expectancy theory explain employee motivation?
Answer: Expectancy theory suggests that people are motivated to work towards rewards that
they want, and that they believe they have a reasonable chance (expectancy) of obtaining.
Expectancy theory states that several issues must be considered for individuals to exert high
effort. The individual must expect that high effort will result in high individual performance, and
thereby organizational rewards. Finally, the individual must expect that the organizational
reward will meet their personal goals.
Diff: 2 Type: ES Page Ref: 192
Skill: Comprehension
Objective: 9.4

19) What are the basic assumptions inherent in equity theory?

Answer: This approach says that people first analyze what they contribute to their jobs (time,
effort, education, experience, and so forth) relative to what they get in return (salary, benefits,
recognition, security). The result is a ratio of contribution to return. Employees then compare
their own ratios to those of "comparison others" (employees who are similar in terms of
experience and training). Depending on their assessments, they experience feelings of equity or
inequity.
Diff: 1 Type: ES Page Ref: 192
Skill: Comprehension
Objective: 9.4

20) How do expectancy theory and equity theory differ?

Answer: Expectancy theory assumes that people are motivated by outcomes that they see as
desirable and achievable, while equity theory assumes that people are motivated after they
compare their own input/outcome ratio with the input/outcome ratio of their comparison other.
Diff: 1 Type: ES Page Ref: 192
Skill: Comprehension
Objective: 9.4

21) What is reinforcement theory and how can managers apply it?
Answer: Reinforcement means applying (or withholding) positive (or negative) consequences in
order to motivate employees to exhibit behaviours the manager wants. A manager has four basic
reinforcement options: (1) positive reinforcement (apply positive consequences when employees
exhibit desired behaviours), (2) punishment (apply negative consequences when employees
exhibit undesirable behaviours), (3) omission (withhold positive consequences when employees
exhibit undesirable behaviours), and (4) negative reinforcement (withhold negative consequences
when employees exhibit desired behaviours).
Diff: 2 Type: ES Page Ref: 193
Skill: Application
Objective: 9.5

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22) Suppose a person wanted to apply the concept of a SMART goal in order to lose weight.
What would the goal look like?
Answer: SMART goals are specific, measurable, achievable, relevant, and time-framed. To be
effective in losing weight, the person would have to set goals that are specific (state in
quantitative terms exactly how much weight the person wants to lose), measurable (the person
must able to measure progress toward the goal), achievable (the person must decide how much
weight they can feasibly lose), relevant (achieving the goal is important to the person), and time-
framed (the person must decide the date by which the goal will be achieved. So, a SMART goal
might be simply stated like this: To lose 50 pounds by September 1.
Diff: 2 Type: ES Page Ref: 193
Skill: Comprehension
Objective: 9.5

23) Describe the different types of teams an organization might form. What benefits are evident
for individuals and for the organization?
Answer: Problem-solving teams focus on developing solutions to specific problems. They are
based on the idea that the best solutions to problems are likely to come from the employees who
actually do the work. The problem-solving idea is developed even further in self-managed teams,
which set their own goals, select their own team members, evaluate their own performance, and
generally manage themselves. Project teams (also called venture teams) work on specific
projects like developing new processes, new products, or new businesses. Transnational teams,
which are composed of members from many different countries, have also become common.
Virtual teams are groups of geographically dispersed co-workers that are assembled to
accomplish a specific task, using a combination of telecommunications and information
technologies. These teams are becoming increasingly popular because of globalization. Teams
provide monetary benefits for companies that use them, but they also provide non-monetary
benefits such as increasing motivation and job satisfaction levels for employees, enhancing
company-wide communication, and making members feel like they are an integral part of the
organization.
Diff: 2 Type: ES Page Ref: 194
Skill: Comprehension
Objective: 9.5

24) Describe employee participation and empowerment and provide an example.

Answer: It involves tapping into worker's knowledge about the job, encouraging them to be self-
motivated, to make suggestions for improving work processes, and giving workers more
authority and responsibility. It means motivating and energizing employees to create high quality
products and to provide bend-over-backwards services to customers to increase the organizations
competitiveness. For example, at WestJet front line employees can issue travel credits to
customers they feel have not been treated well.
Diff: 2 Type: ES Page Ref: 193
Skill: Comprehension
Objective: 9.5

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25) Jack is a manager at StyleCo. Jack's boss started a program that encourages employee
empowerment. Jack presented the idea to his staff, but the employees seemed reluctant to take
part. Jack tells his boss that subordinates are not interested in empowerment. What assumption is
Jack making?
Answer: Jack is attributing the employees' reluctance to take part to a lack of interest. However,
they may have good reason to be reluctant, especially if Jack has been a dictatorial-type manager
in the past. If Jack himself is not enthusiastic about the empowerment program, the employees
probably picked up on his feelings when he presented the idea to them and feel that if they take
part, they will annoy Jack and end up paying a price for their involvement.
Diff: 3 Type: ES Page Ref: 193
Skill: Analysis
Objective: 9.5

26) Under what conditions might the use of work teams be inappropriate?
Answer: Although many employees enjoy working in teams, such programs are not always
appropriate. Work teams may not be appropriate when workers perform repetitive, highly
specialized tasks. Paying workers based on team productivity can result in resentment on the part
of faster workers when slower workers reduce the group's total output. Slower workers might
also resent the pressure put on them by faster co-workers.
Diff: 2 Type: ES Page Ref: 194
Skill: Comprehension
Objective: 9.5

27) What is an MBO program and what are the major benefits of such a program?
Answer: MBO (Management by Objectives) is a system of collaborative goal setting that
involves managers and subordinates in setting mutually acceptable goals. The benefits are:
- Improved motivation
- More team-oriented behaviour
- Commitment to corporate objectives
Diff: 2 Type: ES Page Ref: 193
Skill: Comprehension
Objective: 9.5

28) Briefly describe job redesign and identify the three major ways of implementing it.
Answer: Job redesign refers to the methods that are used to increase job satisfaction by
designing a better fit between workers and their jobs. It is accomplished by combining tasks,
forming natural work groups, and establishing client relationships (for example, letting workers
interact with customers).
Diff: 2 Type: ES Page Ref: 194
Skill: Comprehension
Objective: 9.5

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29) What are some of the potential benefits of flextime?
Answer: The increased sense of freedom associated with flextime reduces stress and may
improve individual productivity. In urban areas, flextime programs mean that at least some
employees can avoid the rush hour traffic. Employers are also likely to exhibit higher levels of
commitment and job satisfaction because they are working hours that they prefer. Flextime also
increases employee satisfaction and motivation by helping them balance their work and personal
life.
Diff: 2 Type: ES Page Ref: 195
Skill: Comprehension
Objective: 9.5

30) Describe the modified work schedule programs which a business may implement to increase
employee job satisfaction.
Answer:
- Flextime: increases job satisfaction by allowing them some choice in the hours they work
- Compressed workweek: employees work fewer days/week but more hours on the days they do
work
- Telecommuting: allowing employees to do all or some of their work away from the office
- Worksharing: method of increasing employee job satisfaction by allowing two people to share
one job
Diff: 1 Type: ES Page Ref: 195-196
Skill: Comprehension
Objective: 9.5

31) How is "leadership" different from "management"?

Answer: Leadership refers to the processes and behaviours used by managers to motivate,
inspire, and influence others to meet objectives. Management refers to the action of carrying out
the functions of planning, organizing, leading, and controlling. Table 9.2 summarizes the
differences between leaders and managers.
Diff: 2 Type: ES Page Ref: 198
Skill: Comprehension
Objective: 9.6

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32) In practical terms, how is referent power different from expert power?
Answer: Expert power is derived from information or expertise that managers possess. For
example, a manager who can interact effectively with important customers, or a foreman who
knows how to repair a complicated machine, or a scientist who achieves an important technical
breakthrough, possesses expert power. The more important the information and the fewer the
people who have access to it, the greater the degree of expert power possessed by a manager or
leader. By contrast, referent power is possessed by leaders who have followers who value what
the leader stands for. This type of power is based on followers' willingness to identify with the
leader or imitate the leader. Because followers highly value what the leader stands for, the leader
gains power over them. Followers might choose to imitate a leader by wearing the same kind of
clothes, working the same hours, or supporting the same management philosophy that the leader
uses. A leader who has expert power would not observe this sort of behaviour on the part of
followers.
Diff: 2 Type: ES Page Ref: 198
Skill: Application
Objective: 9.6

33) What are leadership styles? Identify the three major styles.
Answer: The term "leadership style" refers to the patterns of behaviour that a manager exhibits
in dealing with subordinates. The three major styles are autocratic (the manager issues orders
and expects them to be obeyed without question), democratic (the manager asks for input from
subordinates but retains final decision-making power), and free-rein (the manager serves as an
advisor to subordinates who are allowed to make decisions).
Diff: 1 Type: ES Page Ref: 199
Skill: Comprehension
Objective: 9.7

34) How do the trait and behavioural approaches differ?

Answer: The trait approach assumes that specific personality traits are associated with effective
leadership, while the behavioural approach assumes that it is the leader's actual behaviour that
determines effectiveness.
Diff: 2 Type: ES Page Ref: 199
Skill: Comprehension
Objective: 9.7

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35) Describe three situational (contingency) leadership theories.
Answer: The path-goal theory of leadership suggests that the primary function of a leader is to
make valued or desired rewards available in the workplace and to clarify for the subordinate s the
kinds of behaviours that will lead to goal accomplishment and valued rewards. The leader
clarifies the paths to goal attainment and can use four kinds of behaviours to achieve this,
depending on the situation. Directive leader behaviour lets subordinates know what is expected
of them, gives guidance and direction, and schedules work. Supportive leader behaviour is being
friendly and approachable, showing concern for subordinates' welfare, and treating members as
equals. Participative leader behaviour means consulting with subordinates, soliciting
suggestions, and allowing participation in decision making. Achievement oriented behaviour sets
challenging goals, expects subordinates to perform at high levels, encourages subordinates, and
shows confidence in subordinates' abilities. The decision tree approach assumes that the leader
is able to display different leadership styles as needed. The decision tree approach concerns itself
with only a single aspect of leader behaviour: subordinate participation in decision making. The
decision tree approach assumes that the degree to which subordinates should participate in
decision making depends on the characteristics of the situation, and that no one decision making
process is best for all situations. After evaluating a variety of problem attributes, the leader
determines an appropriate decision style that specifies the amount of subordinate participation.
The leader-member exchange (LMX) model focuses on the differential relationships leaders often
establish with different subordinates. Each superior-subordinate pair represents a "vertical dyad."
The model suggests that supervisors establish a special relationship with a small number of
trusted subordinates (the "in-group"). The in-group usually receives special duties special
privileges. Subordinates who are not a part of this group are called the "out-group," and they
receive less of the supervisor's time and attention.
Diff: 2 Type: ES Page Ref: 199-200
Skill: Comprehension
Objective: 9.7

36) Explain the difference between transformational and transactional leadership.

Answer: Transformational leaders recognize the need for change, create a vision to guide that
change, and execute the change effectively. Transactional leaders, by contrast, engage in routine
(but necessary) activities.
Diff: 2 Type: ES Page Ref: 200
Skill: Comprehension
Objective: 9.8

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37) In what type of situation would a leader likely be more effective with a transactional
approach than with a transformational approach?
Answer: Remember that a transformational leader recognizes the need for change, creates a
vision to guide that change, and implements the change effectively. In contrast, a transactional
leader makes sure that routine (but necessary) activities are carried out. Keeping this difference
in mind, consider a company that has successfully reorganized and reinvigorated itself after years
of floundering. A company in this situation does not need a transformational leader who will
make more changes. Rather, it needs a leader who will make sure that the company is run based
on the changes that have recently been made. A transactional (rather than a transformational)
leader would therefore be most effective.
Diff: 2 Type: ES Page Ref: 200
Skill: Comprehension
Objective: 9.8

38) Mary Sutton has just been promoted to supervisor of the highly productive first-shift
employees at Calder Enterprises. She feels that she can be effective by taking on a coaching style
of leadership. During her first week in her new position, she learns that the cohesion among the
first-shift employees is very strong, so she does not introduce any changes for fear that they
would be ignored. Further, as time progressed, Mary began to observe vast personality
differences and dramatic differences in motivation levels among her employees. How
transactional and/or transformational is Mary's leadership style in this situation?
Answer: Mary appears to be committed to making some changes at Calder Enterprises. This will
necessarily involve a fair amount of transformational leadership. However, the employees on the
first shift are highly productive and cohesive. Therefore, she will have to nurture that part of the
situation since a lack of attention to the routine work activities of the organization may have
adverse effects on the group's cohesion and productivity. She does not want to spoil the "good
elements" that she already has at Calder. While Mary's attitude is transformational, her
behaviour is transactional.
Diff: 2 Type: ES Page Ref: 200
Skill: Comprehension
Objective: 9.8

39) Do men and women lead differently?

Answer: Research suggests that female leaders are not necessarily more nurturing or supportive
than male leaders. Likewise, male leaders are not necessarily harsher, more controlling, or more
task-oriented than female leaders. However, women do tend to be more democratic when making
decisions, whereas men tend to be more autocratic.
Diff: 2 Type: ES Page Ref: 202
Skill: Comprehension
Objective: 9.8

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40) Discuss the differences between Canadian and American management styles.
Answer: The following differences have been noted: Canadian managers are more subtle and
more subdued, more committed to their companies, less willing to mindlessly follow the latest
management fad, and are more open to different cultures because of the multicultural nature of
Canada.
Diff: 2 Type: ES Page Ref: 202
Skill: Comprehension
Objective: 9.8

41) Why has virtual leadership become an important issue for organizations?
Answer: Many organizations are no longer completely based at one physical location. Face-to-
face interaction is becoming less common as email and other mobile technologies become
available. An effective leader must therefore have the skills to organize, motivate, and influence
subordinates through a variety of media, i.e., possess good virtual leadership skills. Leaders in
these situations must work hard at creating and maintaining relationships with their employees
that go beyond words on a computer screen.
Diff: 2 Type: ES Page Ref: 203
Skill: Comprehension
Objective: 9.8

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