MCQ Organisational Behaviour Objective Questions
The below articles contain MCQs on Organisational Behaviour. These questions involve the types of questions that are frequently asked in the examination.
Organisational Behavior
Organizational Behaviour Question 1:
Which of the following integrations is related to supernational organizational structure?
Answer (Detailed Solution Below)
The correct answer is Economic Integration.
Key Points
Economic integration refers to the process of reducing trade barriers and fostering economic cooperation among multiple countries. It involves the integration of economies to promote the free flow of goods, services, capital, and labour. Economic integration can take various forms, including:
Free trade agreements (FTAs): These agreements aim to reduce or eliminate tariffs and non-tariff barriers on trade between participating countries. Examples include the North American Free Trade Agreement (NAFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Customs unions: In a customs union, member countries eliminate trade barriers among themselves and establish a common external tariff on goods imported from non-member countries. The Southern Common Market (Mercosur) is an example of a customs union.
Common markets: A common market goes beyond a customs union by also allowing for the free movement of factors of production, such as capital and labour, in addition to goods and services. The European Economic Community (EEC) and the European Union's Single Market are examples of common markets.
Additional Information
Free Trade Agreement (FTA): An FTA is a form of economic integration that aims to reduce or eliminate trade barriers, such as tariffs and quotas, between participating countries. FTAs promote trade liberalization and provide preferential treatment to member countries, encouraging increased economic cooperation and market access.
Common Market: A common market goes beyond an FTA by not only eliminating trade barriers but also allowing for the free movement of goods, services, capital, and labour among member countries. In addition to facilitating trade, a common market aims to create a level playing field for businesses and promote economic integration by harmonizing regulations and standards.
Economic Union: An economic union represents a higher level of economic integration than a common market. In addition to the free movement of goods, services, capital, and labour, an economic union typically involves deeper coordination of economic policies, including monetary policy, fiscal policy, and regulatory frameworks. It may also include the establishment of a common currency and a central bank.
Organizational Behaviour Question 2:
Assertion (A): Change made in strategy is unrelated to an organization’s structure
Reason (R): Structure of the organization majorly dictates how objectives and policies are going to be established
Answer (Detailed Solution Below)
The correct answer is that (A) is wrong, and (R) is correct.
Key Points
- A company's strategy can cause the structure to change or shift.
- As a business creates specific goals, marketing strategies, and market analysis, it may need to change its structure.
- For example, a company whose goal is to open a new location may need to adjust its teams and department sizes.
- They may choose to revise their structure to accomplish the new goals from their business strategy.
- So, Change made in strategy is definitely related to an organization’s structure.
- Thus Assertion A is wrong.
- An organization's structure can help the company reach its business goals.
- As the business grows and operates, the structure may change as leadership adds new positions and employees.
- This change to the structure may eventually change the strategy.
- Thus Reason R is correct.
Additional Information
Strategy:
- Strategy is the action steps a business takes to reach its goals.
- This is typically part of the business plan, which is a document detailing a business's goals and approaches.
- A business strategy can detail many company elements, including Marketing plans, Branding ideas, Price models, Growth plans, and Market analysis.
Structure:
- An organization's structure reflects the overall company formation.
- The organizational structure describes many components within the business, including People in the company, Leadership positions and teams, Job positions and the number of employees, Technical procedures, Business methods, etc.
Hence, the correct answer is (A) is wrong, and (R) is correct.
Organizational Behaviour Question 3:
How does organisational climate affect the employees in an organisation?
Answer (Detailed Solution Below)
Organizational climate is a concept that has academic meaning in the fields of organizational behavior and I/O psychology as well as practical meaning in the business world There is continued scholarly debate about the exact definition of organizational climate for the purposes of scientific study.
Important Points
Hence with the help of the above information, we can say that the organizational climate affects the productivity level and motivation level.
Additional Information
- Respect for employer and salary, Team spirit and quality of products, and Employees’ dedication and salary also affect the organizational climate but not as much as productivity level and motivation level because these depend upon employee productivity and motivational level.
Organizational Behaviour Question 4:
Which one of the following is NOT the purpose of the organization breakdown structure?
Answer (Detailed Solution Below)
Explanation:
Do not tie the organisation unit to cost control accounts is NOT the purpose of the organization breakdown structure
Additional Information
Work Breakdown Structure (WBS):
- The WBS is described as a hierarchical structure that is designed to logically subdivide all the work elements of the project into a graphical presentation.
- A full scope of work for the project is placed at the top of the diagram, and then subdivided smaller elements of work are at each lower level of the breakdown.
- At the lowest level of the WBS, the elements of work are called a work package. A list of project activities is developed from the work packages
Benefits WBS
- WBS forces the team to create detailed steps
- WBS lays the groundwork for schedule and budget
- WBS creates accountability
- WBS creation breeds commitment
Organizational Behaviour Question 5:
How is the closeness or commonness of attitude, behaviour, trust and performance within the organization designated?
Answer (Detailed Solution Below)
Cohesion: It defines the degree of closeness that the member feels with the group. The cohesiveness of a group can produce miracles in the organization if group objectives and organizational objectives are complementary to each other.
Morale: Morale is defined as the total satisfaction derived by an individual from his job, his workgroup, his superior, the organization he works for, and the environment.
Communication: It is an important factor in developing an ideal interpersonal relationship. All communication barriers should be removed. It is a process of exchanging verbal and non-verbal messages.
Leadership: Organizational leadership requires developing an understanding of your own worldview as well as the worldviews of others.
Organizational Behaviour Question 6:
What is meant by 'Conflict of Interest'?
Answer (Detailed Solution Below)
Organizational Behaviour Question 7:
How does organisational climate affect the employees in an organisation?
Answer (Detailed Solution Below)
A Whistleblower is someone who
Answer (Detailed Solution Below)
Whistle-blowing is the act by an employee of informing the public or higher management of unethical or illegal behaviour by an employer or supervisor.
According to the code of ethics of the professional engineering societies, engineers have the right to disclose the illegal and unethical behaviour of organisations.
When should Whistle Blowing be attempted?
- Need: Should be clear about the problems to be conveyed.
- Proximity: Should be in a clear position to report the problem. Should have the expertise and first-hand knowledge about the problems.
- Capability: Should have a reasonable chance of success. Should be able to take care of the financial security of their family.
- Last resort: Attempted only for rare emergencies. Should try to work out formal and informal organization channels.
- The whistle-blower feels that all other lines of action within the context of the organization have been explored and shut off.
Consider the following steps for an individual regarding preparation for disclosure of unethical behaviour:
1. Study and document the facts and formulate a plan for an appeal
2. Take up the matter with higher management
3. Discuss the matter with the immediate supervisor
4. If the internal appeal does not resolve the conflict, then he should notify the company that he intends to continue with an external review of the problem
What is the correct sequence of order of the above steps?
Answer (Detailed Solution Below)
Unethical behaviour is an action that falls outside of what is considered morally right or proper for a person, a profession, or an industry.
The correct sequence of order of the given steps for an individual regarding preparation for disclosure of unethical behaviour is
- Study and document the facts and formulate a plan for an appeal
- Discuss the matter with the immediate supervisor
- Take up the matter with higher management
- If the internal appeal does not resolve the conflict, then he should notify the company that he intends to continue with an external review of the problem.
When should whistle-blowing be attempted?
1. There must be a clear and great harm that can be avoided
2. The whistleblower must be in a clear position to report on the problem
3. The whistleblower must have a reasonable chance of success in stopping the harmful activity
4. The whistleblower feels that all other lines of action within the context of the organization have been explored and shut off
Select the correct answer using the codes given below:
Answer (Detailed Solution Below)
Which of the following integrations is related to supernational organizational structure?
Answer (Detailed Solution Below)
The correct answer is Economic Integration.
Key Points
Free trade agreements (FTAs): These agreements aim to reduce or eliminate tariffs and non-tariff barriers on trade between participating countries. Examples include the North American Free Trade Agreement (NAFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Customs unions: In a customs union, member countries eliminate trade barriers among themselves and establish a common external tariff on goods imported from non-member countries. The Southern Common Market (Mercosur) is an example of a customs union.
Common markets: A common market goes beyond a customs union by also allowing for the free movement of factors of production, such as capital and labor, in addition to goods and services. The European Economic Community (EEC) and the European Union's Single Market are examples of common markets.
Additional Information
Free Trade Agreement (FTA): An FTA is a form of economic integration that aims to reduce or eliminate trade barriers, such as tariffs and quotas, between participating countries. FTAs promote trade liberalization and provide preferential treatment to member countries, encouraging increased economic cooperation and market access.
Common Market: A common market goes beyond an FTA by not only eliminating trade barriers but also allowing for the free movement of goods, services, capital, and labor among member countries. In addition to facilitating trade, a common market aims to create a level playing field for businesses and promote economic integration by harmonizing regulations and standards.
Economic Union: An economic union represents a higher level of economic integration than a common market. In addition to the free movement of goods, services, capital, and labor, an economic union typically involves deeper coordination of economic policies, including monetary policy, fiscal policy, and regulatory frameworks. It may also include the establishment of a common currency and a central bank.
Which one of the following is NOT the purpose of the organization breakdown structure?
Answer (Detailed Solution Below)
Explanation:
Do not tie the organisation unit to cost control accounts is NOT the purpose of the organization breakdown structure
Additional Information
Work Breakdown Structure (WBS):
- The WBS is described as a hierarchical structure that is designed to logically sub-divide all the work elements of the project into a graphical presentation.
- A full scope of work for the project is placed at the top of the diagram, and then sub-divided smaller elements of work are at each lower level of the breakdown.
- At the lowest level of the WBS, the elements of work are called a work package. A list of project activities is developed from the work packages
Benefits WBS
1. WBS forces the team to create detailed steps
2. WBS lays the groundwork for schedule and budget
3. WBS creates accountability
4. WBS creation breeds commitment
Direction: It consists of two statements, one labelled as ‘Statement (I)’ and the other as ‘Statement (II)’. You are to examine these two statements carefully and select the answer using the codes given below:
Statement (I): Agency loyalty is acting to fulfil one's contractual duties to an employer.
Statement (II): Agency loyalty is entirely a matter of actions, whatever its motives.
Answer (Detailed Solution Below)
Loyalty: It is the faithful adherence to an organization and the employer. Loyalty to an employer can be either of the two types:
Agency-loyalty: It is acting to fulfil one’s contractual duties to an employer. This is entirely a matter of actions, such as doing one’s job and not stealing from one’s employer, irrespective of the motive behind it.
Attitude-loyalty: It has a lot to do with attitudes, emotions, and a sense of personal identity as it does with actions. It can be understood that people who work grudgingly and spitefully are not loyal; in spite of the fact they may adequately perform all their work responsibilities and hence manifest agency-loyalty.
Both the given statements are not inter-related.
Therefore, both Statement (I) and Statement (II) are individually true but Statement (II) is not the correct explanation of Statement (I)
How is the closeness or commonness of attitude, behaviour, trust and performance within the organization designated?
Answer (Detailed Solution Below)
Cohesion:
- It is a measure of the attraction of the group to its members (and the resistance to leaving it).
- Those in highly cohesive teams will be more cooperative and effective in achieving the goals they set for themselves.
- Lack of cohesion within a team working environment is certain to affect team performance due to unnecessary stress and tension among coworkers.
- Therefore, cohesion in the workplace could, in the long run, signify the rise or demise of the success of a company.
Morale: Morale is defined as the total satisfaction derived by an individual from his job, his work group, his superior, the organization he works for, and the environment.
Communication: It is a process of exchanging verbal and non-verbal messages.
Leadership: Organizational leadership requires developing an understanding of your own worldview as well as the worldviews of others.
Organizational Behaviour Question 15:
What is meant by 'Conflict of Interest'?
Answer (Detailed Solution Below)
Conflict of interest:
- It is an opposition between the private interests and the official or professional responsibilities of a person in a position of trust, power, and/or authority.
- Such conflicts may result in a situation in which personal, financial, and/or nonfinancial considerations have the potential to influence or compromise professional judgment in service, research, consultation, instruction, administration, or any other professional activity.
- It is important to note that it is not necessary for such influence or compromise to have occurred before a situation can be identified as a conflict of interest.
- It is sufficient for the situation to appear to provide the potential for professional judgment to be compromised.
