Fundamentals of Organizational Behaviour Questions with Answers – 2023 Spring, (BBA/BI/TT/BCIS/BHCM)

Fundamentals of Organizational Behaviour Questions with Answers

Section “A”

Very Short Answer Questions

1. Distinguish between open vs. closed systems.
Answers: The difference between open and closed systems are:
An open system lets things like matter, energy, or information flow in and out from its surroundings while a closed system doesn’t allow matter to move in or out, but it can still exchange energy
For example, living organisms and businesses are open systems while examples of closed systems are a sealed jar or a thermos.

2. Differentiate between Leaders and Managers.
Answer: Leaders inspire and motivate people, often driving change, while managers focus on organizing and controlling day-to-day operations.
Leaders influence through vision, while managers use authority to implement tasks and meet goals

3. What do you mean by availability Bias?
Answer: Availability bias is when people make decisions based on the information that is easiest to remember or comes to mind quickly, rather than considering all the facts or evidence. It happens because recent or memorable events are given more importance.

4. Outline any 4 advantages of bureaucratic structure.
Answer: The advantages of the bureaucratic structure are:
Clear roles and responsibilities.
Standardized rules and procedures.
Systematic work processes.
Predictable and stable organization.

5. What do you mean by the learning organizations?
Answer: A learning organization is a company that encourages its employees to keep learning, growing, and sharing knowledge to improve and adapt over time. This helps the organization stay flexible, creative, and successful in a changing environment.

6. Define the concept of filtering in communication.
Answer: Filtering in communication is the process of modifying or withholding information before it is shared, often to make it more acceptable or to avoid conflict. It can happen when a message is altered by the sender or receiver based on personal biases, emotions, or interests.

7. Distinguish between functional vs. dysfunctional conflict.
Answers: The differences between functional and dysfunctional conflict are:
Functional conflict improves performance and promotes collaboration, while dysfunctional conflict creates stress and harms relationships.
Functional conflict can strengthen teamwork and collaboration while dysfunctional conflict can weaken teamwork and collaboration.

8. Explain the term worker obsolescence.
Answer: Worker obsolescence refers to a situation where an employee’s skills or knowledge become outdated or no longer useful due to changes in technology, methods, or industry practices.

9. Differentiate between intrinsic vs. extrinsic motivation.
Answer: The differences between intrinsic and extrinsic motivation are:
Intrinsic motivation is driven by internal factors like personal interest or enjoyment while extrinsic motivation is driven by external rewards like money, recognition, or prizes.
In intrinsic motivation, the motivation comes from within the individual while the motivation comes from outside the individual in extrinsic motivation.

10. Describe the term Narcissism.
Answer: Narcissism is a personality trait where a person has an overly high opinion of themselves, wants constant attention and praise, and doesn’t show much care for others’ feelings. They often focus more on their own needs and desires than on those of others.

Section “B”

Descriptive Answer Questions

1. Define organizational behavior. Why the study of organizational behavior is essential for all managers? Explain.
2. Define perception. Why do people perceive things differently? Explain the factors that influence our perception.
3. Why some teams are more effective than others? What are the major components for building an effective team? Explain.
4. How does a leader influence the behaviors of followers toward goal achievement? Explain with reference to the path-goal theory of leadership.
5. What are the major factors that cause organizational stress? Discuss how this organizational stress can be managed.
6. How your communication travelled with your intendent audiences? Explain with considering the major components in communication process.
7. Why changes to be needed in organization? Describe Lewin’s three step model of social change in brief.

Section “C”

Case Analysis

Wal-Mart Stores

One of the most successful department stores in America is known as Wal-Mart store and is named after its founder Sam Wlton. Because of the phenomenal success of these stores, Sam Walton became the richest man in America. Also because of his leadership, the stores have enjoyed continuous growth and expansion, so that by mid 1980s, the chain had over 700 stores and increasing at the rate of an additional 100 stores per year. Its sales increased annually by over 35% per year and the profits have soared close to 40% per year every year since 1975.

Sam Walton, until he died in 1992, took personal interest in his employees. His managerial philosophy was to get the right people at the right places and then give them the freedom to be innovative to accomplish their tasks. He called the employees as associates and treated them as associates. As per company policy, all associates are eligible for profit-sharing plans, which motivate the employees further. The managers of the stores are required and encouraged to meet with their employees in a social setting to discuss their concerns as well as issues of organizational interest, and this makes the employees feel that their input is taken seriously by the management.

Sam Walton himself led a simple life. He did not exhibit any aura about himself, giving employees a feeling that he was one of them. He and his executives regularly traveled in company-owned planes to visit Wal-Mart stores situated at various sites across the country. He met with sales clerks, store clerks, stockboys and sales managers to find out what items were popular. He knew most of them by their first names and addressed them so. He initiated “employee of the month” in all categories and created honor roles for more successful stores. This created inner competition requiring extra efforts to improve the sales and services. This policy gained high respect for him as the leader.

The administration of the organization is very cost-conscious. It only spends about 2% of sales for general administrative expenses. It shops for suppliers at bargain prices all around the world and has built giant warehouses around the country in such a manner so that most stores are within six hours of driving distance from a warehouse. This helps in a better delivery system and reduced inventories at retail stores. Each store prepares monthly financial reports which can be studied line by line to look for ways to reduce costs further. These cost savings are passed on to the customers and this in turn generates customer loyalty. Wal-Mart slogan of “quality you need, prices you want” has become a generic organizational statement. Wal-Mart with more than 2000 stores at present is faced with tough competition from a similar chain of discount stores known as K-Mart. However, Sam Walton did not worry about the competition because he felt that his people-oriented philosophy of operations and cost-cutting efforts without diluting the quality of the merchandise would always meet the competition head-on.

1. How would you describe Sam Walton as an effective leader? What leadership theory is consistent with his leadership style?
2. What factors, other than the leadership style contributed towards the survival and the growth of the organization? Support your reasons.