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Chapter 1 The Field of Organizational Behavior 1.1 Multiple Choice Questions 1) ________ is defined as ʺthe multidisciplinary field that seeks knowledge of behavior in organizational settings by systematically studying individual, group, and organizational processes.ʺ A) Industrial psychology B) Organizational psychology C) Behavioral science D) Organizational behavior Answer: D Diff: 2 Page Ref: 4 LO: 1 2) Limitations of case studies include: A) It is expensive and time consuming to collect data. B) Empirical techniques may skew results. C) Findings may not be generalizable to other organizations. D) Confidentiality is difficult to maintain. Answer: C Diff: 5 Page Ref: 5 LO: 2 3) In ________, behavior is studied carefully to see how a particular variable that is systematically varied affects other aspects of behavior. A) naturalistic observations B) experimental research C) case studies D) survey research Answer: B Diff: 5 Page Ref: 5 LO: 2 4) Organizational behavior focuses on three interrelated levels of analysis: A) emotions, intentions, and actions. B) planning, executing, and results. C) individuals, groups, and organizations. D) thinking, feeling, and doing. Answer: C Diff: 5 Page Ref: 5 LO: 2 5) OB specialists derive knowledge from a wide variety of social science disciplines. ________ is useful for studying negotiation and decision making. A) Psychology B) Political science C) Economics D) Sociology Answer: C Diff: 2 Page Ref: 7 LO: 2 Full file at https://testbankgo.info/p/

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Page 1: Chapter 1 The Field of Organizational Behavior 1.1 Multiple Choice … ·  · 2017-07-28Chapter 1 The Field of Organizational Behavior 1.1 Multiple Choice Questions 1) _____ is defined

Chapter 1 The Field of Organizational Behavior

1.1 Multiple Choice Questions 1) ________ is defined as ʺthe multidisciplinary field that seeks knowledge of behavior in

organizational settings

by systematically studying individual, group, and organizational processes.ʺ A) Industrial

psychology B) Organizational psychology C) Behavioral science D) Organizational behavior

Answer: D

Diff: 2 Page Ref: 4 LO: 1

2) Limitations of case studies include: A) It is expensive and time consuming to collect data. B)

Empirical techniques may skew results. C) Findings may not be generalizable to other

organizations. D) Confidentiality is difficult to maintain.

Answer: C

Diff: 5 Page Ref: 5 LO: 2

3) In ________, behavior is studied carefully to see how a particular variable that is systematically

varied affects

other aspects of behavior. A) naturalistic observations B) experimental research C) case studies D)

survey research

Answer: B

Diff: 5 Page Ref: 5 LO: 2

4) Organizational behavior focuses on three interrelated levels of analysis: A) emotions, intentions, and

actions. B) planning, executing, and results. C) individuals, groups, and organizations. D)

thinking, feeling, and doing.

Answer: C

Diff: 5 Page Ref: 5 LO: 2

5) OB specialists derive knowledge from a wide variety of social science disciplines. ________ is useful for

studying negotiation and decision making. A) Psychology B) Political science C) Economics D)

Sociology

Answer: C

Diff: 2 Page Ref: 7 LO: 2

Full file at https://testbankgo.info/p/

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6) Which of the following assumes that people are basically lazy, dislike work, need direction, and will only

work

hard when they are pushed into action? A) Scientific management B) Time and motion study C) Theory Y

philosophy D) Theory X orientation

Answer: D

Diff: 5 Page Ref: 8 LO: 3

7) Theory Y assumes that people A) are motivated primarily by financial incentives. B) are basically lazy and

irresponsible. C) have social needs that influence their choices of work and employment. D) have a

psychological need to work and seek responsibility.

Answer: D

Diff: 5 Page Ref: 8 LO: 3

8) Employers need to be concerned about job satisfaction because A) satisfied employees are less likely to quit

than those who are dissatisfied. B) accurate performance appraisal often causes job dissatisfaction. C)

people are more satisfied when they are not required to work too hard. D) a satisfied employee is more

productive than a dissatisfied employee.

Answer: A

Diff: 5 Page Ref: 10 LO: 3

9) Which of the following organizations are, on average, twice as profitable as the Standard & Poorʹs 500

companies? A) A company whose managers accurately appraise the work of their subordinates. B) A

business that developed a system of close supervision to monitor closely the work of its employees. C)

An organization that treats its employees well with respect to pay and benefits, offers opportunities,

provides job security, and shows fairness. D) A family-owned organization that gives priority to hiring and

promoting friends and relatives of the owners. Answer: C

Diff: 9 Page Ref: 10 LO: 3

10) The ________ approach recognizes that behavior in work settings is the complex result of many interacting

forces. A) contingency B) one-best-way C) scientific management D) open-systems

Answer: A

Diff: 6 Page Ref: 10 LO: 3

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11) A(n) ________ is defined as a structured system consisting of groups and individuals working together to

meet

some agreed-upon objectives. A) task force B) team C) open system D) organization

Answer: D

Diff: 2 Page Ref: 11 LO: 4

12) What is an open system? A) A structured social system consisting of groups and individuals working

together to meet some

agreed-upon objective. B) A system of communication that promotes two-way conversation. C) An

interactive dialog incorporating feedback from all stakeholders. D) A self-sustaining system that uses

energy to transform resources from the environment into some form of

output. Answer: D

Diff: 8 Page Ref: 11 LO: 4

13) ________ often occurs when organizations need far fewer people to operate today than in the past. A)

Rightsizing B) Outsourcing C) Automating D) Offshoring

Answer: A

Diff: 5 Page Ref: 14 LO: 4

14) Telecommuting involves A) restricting the personal use of the Internet and e-mail. B) using electronic

equipment to permit conferences to be held at remote locations. C) permitting employees to choose what

hours they will work. D) using communications technology to enable work to be performed from remote

locations.

Answer: D

Diff: 3 Page Ref: 15 LO: 4

15) The underlying principle of scientific management is to A) structure organizations for the efficient

management of people. B) apply statistical analysis to the design of jobs. C) get people to do more work

in less time. D) eliminate the need for first-line supervisors.

Answer: C

Diff: 6 Page Ref: 21 LO: 5

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16) Who published the groundbreaking book Principles of Scientific Management in 1911? A) Elton W. Mayo B)

Frank & Lillian Gilbreth C) Frederick Winslow Taylor D) Max Weber

Answer: C

Diff: 5 Page Ref: 21 LO: 5

17) Frederick Winslow Taylor recommended that A) a bureaucracy be established to provide order in the

workplace. B) employees be carefully selected and trained to perform their jobs. C) a standard hourly

wage be implemented to discourage absenteeism. D) workers be given more autonomy in the operation

of their jobs.

Answer: B

Diff: 9 Page Ref: 21 LO: 5

18) Frederick Winslow recommended that increasing employee wages would A) improve the relationship

between managers and employees. B) make production costs too expensive and products less

competitive. C) raise employee motivation and make them more productive. D) encourage employees to

work fewer hours for the same weekly wage.

Answer: C

Diff: 9 Page Ref: 21 LO: 5

19) Industrial psychologists Frank and Lillian Gilbreth are best known for the development of A) time and

motion study. B) the bureaucratic model. C) assembly lines. D) the human relations movement.

Answer: A

Diff: 5 Page Ref: 21 LO: 5

20) Time and motion studies were designed to A) find the one best way to perform jobs. B) reduce the need for

close supervision of workers. C) set minimum qualifications needed by job holders. D) establish piece-

rate plans.

Answer: A

Diff: 3 Page Ref: 21 LO: 5

21) The human relations movement A) emphasized the importance of employee training and development. B)

encouraged employee participation in organizational decision making. C) rejected the primary economic

orientation of scientific management. D) concentrated on redesigning the workplace to eliminate safety

hazards.

Answer: C

Diff: 5

LO: 5

Page Ref: 22

Managing Behavior in Organizations, 6e (Greenberg) -CVC -8/1/2012 -Page 4

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Full file at https://testbankgo.info/p/

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22) The human relations movement founded by Elton Mayo A) illustrated the importance of stable

families in an industrial society. B) recognized the primary economic orientation of workers. C)

found a consistent relationship between job satisfaction and productivity. D) focused on the

noneconomic, social factors operating in the workplace.

Answer: D

Diff: 5 Page Ref: 22 LO: 5

23) A major finding of the Hawthorne studies is that A) working conditions impact productivity. B)

employees work best without close supervision. C) organizations are social systems. D)

employees are economic creatures.

Answer: C

Diff: 5 Page Ref: 22 LO: 5

24) Classical organizational theory focused on A) establishing the means of controlling worker activities.

B) the efficient structuring of organizations. C) the effective allocation of monetary incentives. D)

effectively organizing the work of individuals.

Answer: B

Diff: 5 Page Ref: 23 LO: 5

25) Weber believed that ________ is the one best way to efficiently organize work in all organizations. A)

bureaucracy B) time and motion management C) scientific management D) Theory Y

Answer: A

Diff: 5 Page Ref: 23 LO: 5

1.2 True/False Questions

1) Organizational behavior applies common sense to the complexities of human behavior

at work. Answer: FALSE

Diff: 2 Page Ref: 4 LO: 2

2) The field of organizational behavior focuses on three interrelated levels of analysis: attitudes,

intentions, and behavior. Answer: FALSE

Diff: 5 Page Ref: 5 LO: 2

3) The micro approach to OB focuses primarily on the behavior of individuals. Answer: TRUE

Diff: 2 Page Ref: 5 LO: 2

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4) Organizational behavior draws from the highly individual-oriented approach of psychology. Answer:

TRUE

Diff: 5 Page Ref: 7 LO: 2

5) The Theory X philosophy of management assumes that people have a psychological need to work and seek

achievement and responsibility. Answer: FALSE

Diff: 5 Page Ref: 8 LO: 3

6) Organizational behavior seeks to make organizations more profitable by addressing the treatment of people

and the way they do their jobs. Answer: TRUE

Diff: 5 Page Ref: 9 LO: 3

7) Organizational behavior researchers seek to find the one best way to motivate people. Answer: FALSE

Diff: 5 Page Ref: 10 LO: 3

8) The contingency approach assumes there is no one best approach to managing people. Answer: TRUE

Diff: 2 Page Ref: 10 LO: 3

9) Research has shown that companies where employees are accurately appraised enjoy lower costs and

higher productivity than those companies where appraisals are handled less accurately. Answer: TRUE

Diff: 9 Page Ref: 10 LO: 3

10) Organizational Behavior cuts across all levels of organizational

functioning. Answer: TRUE

Diff: 6 Page Ref: 10 LO: 3

11) Employees who believe they have been treated unfairly on the job are more likely to steal from their

employers. Answer: TRUE

Diff: 6 Page Ref: 10 LO: 3

12) There is no evidence that companies that offer good employee benefits are more profitable than those that

do not. Answer: FALSE

Diff: 7 Page Ref: 10 LO: 3

13) The human resource department is primarily responsible for organizational

behavior. Answer: FALSE

Diff: 5 Page Ref: 10 LO: 3

Managing Behavior in Organizations, 6e (Greenberg) --CVC --8/1/2012 --Page

6 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Full file at https://testbankgo.info/p/

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14) Outsourcing occurs when an organization focuses on its core competency while eliminating noncore sectors

of the business. Answer: TRUE

Diff: 5 Page Ref: 14 LO: 4

15) A business that closes all of its U.S. facilities and relocates overseas is said to be

offshoring. Answer: FALSE

Diff: 9 Page Ref: 14 LO: 4

16) Telecommuting involves using a computer to work while at home or at any other remote

location. Answer: TRUE

Diff: 2 Page Ref: 15 LO: 4

17) Globalization is the process by which an organization expands its operations

internationally. Answer: FALSE

Diff: 9 Page Ref: 17 LO: 4

18) Repatriation helps people adjust to the culture shock they experience when returning to their native

cultures after spending time away from it. Answer: TRUE

Diff: 6 Page Ref: 17 LO: 4

19) The central focus of scientific management is to improve worker productivity and to get people to do more

work in less time. Answer: TRUE

Diff: 6 Page Ref: 21 LO: 5

20) The human relations movement studied the impact of work on the lives of the

workers. Answer: FALSE

Diff: 9 Page Ref: 22 LO: 5

21) The Hawthorne studies found that worker productivity is increased by improving the workerʹs physical

working conditions. Answer: FALSE

Diff: 6 Page Ref: 22 LO: 5

22) Classical organizational theory focuses on the effective organization of the work of

individuals. Answer: FALSE

Diff: 6 Page Ref: 23 LO: 5

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23) In developing his organizational theory, Henri Fayol stated that there should be a clear

line of command connecting top management to the lowest-level employees.

Answer: TRUE

Diff: 6 Page Ref: 23

LO: 5

24) Division of labor refers to the fact that employees should receive directions from one, and

only one, other person.

Answer: FALSE

Diff: 2 Page Ref: 23

LO: 5

25) The principles of organizational behavior are universal in their application across cultures.

Answer: FALSE

Diff: 8 Page Ref: 25

LO: 6

1.3 Essay Questions 1) What is organizational behavior? How is it multidisciplinary in nature?

Answer: OB is the multidisciplinary field that seeks knowledge of behavior in organizational

settings by systematically studying individual, group, and organizational processes. It is

multidisciplinary in that it draws from such disciplines as psychology, sociology, and

management science.

Diff: 5 Page Ref: -9

LO: 1,2

2) Social scientists argue that OB is more than ʺjust common sense.ʺ What does this mean? Identify

and describe four methods used to conduct research in the behavioral sciences.

Answer: Instead of relying on common sense, OB relies on a base of knowledge developed through

empirical research -that is, research based on systematic observation and measurement. Four

methods are: Case study – A thorough description of a series of events that occurred in a

particular organization. Naturalistic observation – A scientist records various events and

behaviors observed in a work setting. Experimental research – Behavior is carefully studied in

a lab or the field to see how a particular variable that is systematically varied affects other

aspects of behavior. Survey research – Questionnaires are developed and administered to

people to measure how they feel about various aspects of themselves, their jobs, and their

organizations.

Diff: 9 Page Ref: 5

LO: 2

3) What are the assumptions of Theory X and Theory Y orientations? Which orientation better

applies to todayʹs business?

Answer: Theory X holds a very negative view of employees. They are assumed to be lazy, to dislike work,

need direction, and only work hard when pushed into performing. Alternatively, Theory Y

assumes that people have a psychological need to work hard and seek achievement and

responsibility. Organizational behavior adopts the Theory Y perspective, assuming that people

are highly responsive to their work environments. The way employees are treated will

influence the way they work.

Diff: 5 Page Ref: 8-9

LO: 3

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4) Discuss the challenges facing managers today. How can the study of organizational behavior assist in

meeting these challenges?

Answer: Todayʹs managers are facing unrelenting changes in technology, in the nature of the workforce, and the

interconnectedness of world business and cultures. Technological advances have enabled management

to provide alternative work arrangements, including telecommuting, to meet the needs of a more

diverse workforce. Globalization requires managers to study the cross-cultural aspects of behavior. Even

in businesses within the US, managers must face the need to adapt to changes in the workforce.

Managers also are faced with the challenges of addressing unethical behavior in their organizations and

studying the impact of ethics on the bottom line. The multidisciplinary nature of organizational

behavior equips managers for meeting these challenges.

Diff: 6 Page Ref: 10-20, 24-26

LO: 4,6

5) Contrast the scientific management theory with the human relations movement. Answer: Scientific management,

developed by Frederick Winslow Taylor, emphasized the importance of designing jobs as efficiently as possible, so

that people will do more work in less time. Workers were carefully selected and trained. Wages were the primary

motivators. The human relations movement rejected the economic orientation of scientific management and focused

instead on the non-economic, social factors operating in the workplace. Elton W. Mayo studied workers at Western

Electricʹs Hawthorne works outside Chicago.

Diff: 9 Page Ref: 21-23

LO: 5

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Chapter 2 Organizational Justice, Ethics, and Corporate Social Responsibility

2.1 Multiple Choice Questions 1) The study of peopleʹs perception of and reactions to fairness and unfairness in organizations is

known as A) organizational ethics. B) ethical standards. C) corporate responsibility D)

organizational justice.

Answer: D

Diff: 3 Page Ref: 34 LO: 1

2) Distributive justice focuses on peopleʹs beliefs that A) they have been valued by others in an

organization. B) they have received fair amounts of valued work-related outcomes. C) the

organization acts impartially when deciding pay and benefit issues. D) the outcomes they receive

have been determined fairly.

Answer: B

Diff: 5 Page Ref: 34 LO: 1

3) According to ________ justice, people will be dissatisfied with their pay when it falls below expected

standards. A) comparative B) informational C) distributive D) procedural

Answer: C

Diff: 3 Page Ref: 34 LO: 1

4) Not paying people what they deserve or asking them to work ʺoff the clockʺ contributes to feelings

of A) unethical behavior. B) organizational equity. C) informational injustice. D) distributive

injustice.

Answer: D

Diff: 7 Page Ref: 34 LO: 1

5) The fact that people will better accept outcomes when they have had some input into determining them is

known as A) the fair process effect. B) informational justice. C) the participative process. D)

organizational equity.

Answer: A

Diff: 5 Page Ref: 36 LO: 1

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6) ________ justice refers to the process by which outcomes are determined. A) Comparative B) Instrumental

C) Procedural D) Distributive

Answer: C

Diff: 3 Page Ref: 37 LO: 1

7) ________ justice involves peopleʹs perceptions of the fairness of the manner in which they are treated by

other

people such as authority figures. A) Interpersonal B) Distributive C) Procedural D) Informational

Answer: A

Diff: 3 Page Ref: 37 LO: 1

8) Informational justice refers to peopleʹs perceptions of A) the lack of bias involved when an organization

makes decisions. B) the accuracy of the information an organization provides to outside parties. C) the

fairness of the information used as the basis for making decisions. D) the timeliness with which

management distributes information to members of the organization.

Answer: C

Diff: 5 Page Ref: 37 LO: 1

9) According to social scientists, what are the fundamental beliefs regarding what is right or wrong, good or

bad? A) Religious beliefs B) Moral values C) Social responsibilities D) Personal ethics

Answer: B

Diff: 5 Page Ref: 41 LO: 3

10) An employeeʹs fundamental beliefs about what is good or bad are influenced by A) the culture of the

organization. B) the personʹs religious background. C) training in ethical standards. D) observations of

leadersʹ behavior.

Answer: B

Diff: 5 Page Ref: 41 LO: 3

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11) Whereas ________ refers to fundamental beliefs about what is right or wrong, ________ refers to standards

of

conduct. A) attitudes; justice B) world religions; behavioral inclination C) ethical values; morality D) moral

values; ethics

Answer: D

Diff: 9 Page Ref: 41-42 LO: 3

12) Which of the following is the best definition of ethics? A) Standards of conduct that guide peopleʹs

decisions and behavior B) Moral values that determine behavior C) Philosophical principles that are

universal in their applications D) Fundamental beliefs about what is right and what is wrong

Answer: A

Diff: 5 Page Ref: 42 LO: 3

13) The culture of the organization, the behavior of the leaders, and group norms collectively impact an

employeeʹs A) behavior. B) moral values. C) standards of conduct. D) ethics.

Answer: A

Diff: 5 Page Ref: 42 LO: 3

14) Businesses have found that the long-term impact of promoting ethical behavior includes A) increased

operating costs. B) a reputation for pious and self-righteous posturing. C) an inability to attract and

retain ethical employees. D) improved financial performance.

Answer: D

Diff: 6 Page Ref: 43 LO: 3

15) The False Claims Act of 1986 A) provides guidelines for penalizing organizations involved in illegal

activities. B) focuses on the fiduciary responsibilities of boards of directors. C) protects whistleblowers

who report fraudulent behavior against U.S. government agencies. D) penalizes corporate officers who

submit fraudulent accounting data.

Answer: C

Diff: 6 Page Ref: 44 LO: 3

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16) Which of the following prohibits organizations from paying bribes to foreign officials for purposes of

getting

business? A) Sarbanes-Oxley Act B) Foreign Corrupt Practices Act C) False Claims Act D) Davis-Bacon Act

Answer: B

Diff: 6 Page Ref: 44 LO: 3

17) The Federal Sentencing Guidelines for Organizations (1991) guide judges when A) sentencing directors of firms

who file false accounting data. B) imposing fines on organizations whose employees engage in criminal

acts. C) penalizing employees who fail to report illegal activities of executives. D) setting jail terms for

CEOs who engage in unethical conduct.

Answer: B

Diff: 8 Page Ref: 44-45 LO: 3

18) The ________ initiated reforms in the standards by which public companies report financial data. A) Federal

Prosecutions of Business Organizations Act B) Sarbanes-Oxley Act C) Davis-Bacon Act D) False Claims Act

Answer: B

Diff: 6 Page Ref: 44-45 LO: 3

19) The theory of cognitive moral development was developed by A) William Taylor. B) Abraham Maslow. C)

J.M. Kaplan. D) Lawrence Kohlberg.

Answer: D

Diff: 4 Page Ref: 46 LO: 4

20) During the preconventional level of moral reasoning, people interpret what is right A) from the

perspectives of others. B) based on their religious beliefs. C) with reference to the Golden Rule. D) as

whatever avoids punishment.

Answer: D

Diff: 6 Page Ref: 46 LO: 4

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21) People at the ________ level of moral reasoning determine what is right by considering the safety

and welfare

of society as a whole. A) postconventional B) situational C) conventional D) Golden Rule

Answer: C

Diff: 6 Page Ref: 46 LO: 4

22) People who are at the postconventional level of moral reasoning A) are judged to be ethically

superior. B) judge what is right and wrong in terms of their societal obligations. C) do what they

are convinced is truly right, even if others disagree. D) are unable to function in modern business

organizations.

Answer: C

Diff: 7 Page Ref: 47 LO: 4

23) In terms of unethical thinking, the ʺbottom-lineʺ mentality reasons that A) financial success is the

only value to be considered. B) anything is right if the public can be made to see it as right. C)

good ethics is good business. D) what is ethical is dependent upon the consequences of the

actions.

Answer: A

Diff: 7 Page Ref: 47 LO: 4

24) What is the purpose of an ethics audit? A) To clearly articulate the companyʹs ethical expectations to

employees B) To assess the morality of the employeesʹ behavior C) To provide strategies for

ensuring ethical conduct throughout the company D) To describe what the organization stands

for

Answer: B

Diff: 6 Page Ref: 49 LO: 5

25) The concept of corporate responsibility involves A) attempting to meet prevailing legal and ethical

standards. B) embracing values that promote the greater welfare of society at large. C) paying

wages and benefits that exceed the going market rate. D) developing products and services that

improve the lives of citizens.

Answer: B

Diff: 5 Page Ref: 54 LO: 6

2.2 True/False Questions

1) Corporate social responsibility primarily involves meeting the prevailing legal and ethical

standards. Answer: FALSE

Diff: 5 Page Ref: 33 LO: 6

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2) Organizational ethics is defined as the study of peopleʹs perceptions of and reactions to fairness and

unfairness in organizations. Answer: FALSE

Diff: 6 Page Ref: 34 LO: 2

3) Distributive justice is concerned with employees getting their fair share of work-related outcomes. Answer:

TRUE

Diff: 5 Page Ref: 34 LO: 1

4) Employeesʹ perceptions of the fairness of performance appraisal procedures have an impact on distributive

justice. Answer: FALSE

Diff: 5 Page Ref: 35 LO: 1

5) Workers are more likely to follow their employerʹs rules when they have reason to believe that the

organizationʹs procedures are inherently fair. Answer: TRUE

Diff: 5 Page Ref: 35 LO: 1

6) To be fair, the procedures used as the basis for making a decision about one person must be applied equally

to making a decision about others. Answer: TRUE

Diff: 3 Page Ref: 36 LO: 1

7) The fair process effect results, in part, from giving employees a voice in making decisions about matters

that concern them. Answer: TRUE

Diff: 5 Page Ref: 36 LO: 1

8) In terms of interpersonal justice, people are sensitive to how fairly they have been treated by other people

such as authority figures. Answer: TRUE

Diff: 2 Page Ref: 37 LO: 1

9) An employee is less likely to accept a lower-than-expected pay increase if it is preceded by a poor

performance rating. Answer: FALSE

Diff: 9 Page Ref: 37 LO: 1

10) The practice of gathering and processing information in an effort to figure out how fairly we are treated is

called fairness monitoring. Answer: TRUE

Diff: 3 Page Ref: 37 LO: 1

Managing Behavior in Organizations, 6e (Greenberg) --CVC --8/1/2012 --Page

15 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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11) When employees are given full information about an upcoming pay freeze, they are more likely to start

looking for a new job. Answer: FALSE

Diff: 6 Page Ref: 37 LO: 1

12) When managers use bureaucratic controls, employees are likely to monitor by procedural

justice. Answer: TRUE

Diff: 7 Page Ref: 38 LO: 2

13) Scientists have found that there is no biological basis to peoplesʹ reactions to

fairness. Answer: FALSE

Diff: 5 Page Ref: 39 LO: 2

14) Ethics is about standards of conduct, not moral

values. Answer: TRUE

Diff: 3 Page Ref: 42 LO: 3

15) The Foreign Corrupt Practices Act of 1991 prohibits U.S. employers from hiring undocumented

workers. Answer: FALSE

Diff: 6 Page Ref: 44 LO: 3

16) The Sarbanes-Oxley Act was passed in 2002 in response to accounting scandals such as what occurred at

Enron. It initiated reforms in the standards by which public companies report accounting data. Answer:

TRUE

Diff: 6 Page Ref: 44 LO: 3

17) According to Kohlberg, the majority of adults do what is right in order to avoid

punishment. Answer: FALSE

Diff: 6 Page Ref: 46 LO: 4

18) People at the conventional level of moral development determine what is right and wrong in terms of

complex philosophical principles of duty, justice, and rights. Answer: FALSE

Diff: 8 Page Ref: 46 LO: 4

19) The behavior of people at the postconventional level of moral development judge what is right and wrong

in terms of what is good for society as a whole. Answer: FALSE

Diff: 8 Page Ref: 47 LO: 4

20) The ʺMadison Avenueʺ mentality suggests that anything is right if the public can be made to see it as

right. Answer: TRUE

Diff: 5 Page Ref: 47 LO: 4

Managing Behavior in Organizations, 6e (Greenberg) --CVC --8/1/2012 --Page

16 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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Page 17: Chapter 1 The Field of Organizational Behavior 1.1 Multiple Choice … ·  · 2017-07-28Chapter 1 The Field of Organizational Behavior 1.1 Multiple Choice Questions 1) _____ is defined

21) The purpose of a code of ethics is to assess the morality of a companyʹs behavior in order to identify

irregularities. Answer: FALSE

Diff: 3 Page Ref: 49

LO: 4

22) By themselves, codes of ethics have only limited effectiveness in regulating ethical behavior in

organizations. Answer: TRUE

Diff: 6 Page Ref: 50

LO: 4

23) Corporate responsibility is not concerned with legal requirements and respect for individuals. It

concentrates instead on the well-being of the community at large and the environment. Answer:

FALSE

Diff: 7 Page Ref: 54

LO: 6

24) Although ʺdoing well by doing goodʺ is a popular idea, there is no consistent evidence that socially

responsible companies perform better than those that are less socially responsible. Answer: TRUE

Diff: 9 Page Ref: 56

LO: 6

25) The virtuous circle suggests that socially responsible companies perform well financially

because they are supported by customers and investors. As a result, they become wealthier

and even more philanthropic. Answer: TRUE

Diff: 8 Page Ref: 57

LO: 6

2.3 Essay Questions 1) Distinguish among the following: justice, moral values, ethics, and social responsibility as

they apply to managerial decision making.

Answer: Organizational justice is the study of peopleʹs perceptions of fairness in organizations. Managers

need to be concerned with how decisions are made and the manner in which they are

communicated. Moral values refer to peopleʹs fundamental beliefs in what is right and wrong.

Moral values often are based on someoneʹs religious background. It is not the role of

management to teach morality. Ethics refers to standards of conduct that guide peopleʹs

decisions and behavior. Management needs to establish standards of ethical behavior, train the

employees, and monitor compliance. Social responsibility refers to organizational decisions that

exceed ethical, legal, and public expectations. It often involves philanthropic activities to serve

the wider community.

Diff: 9 Page Ref: 33-57

LO: 1,3,6

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Page 18: Chapter 1 The Field of Organizational Behavior 1.1 Multiple Choice … ·  · 2017-07-28Chapter 1 The Field of Organizational Behavior 1.1 Multiple Choice Questions 1) _____ is defined

2) Assume that you are a plant manager of an automobile parts manufacturer, and you have been directed

to lay off 20 employees. With reference to the discussion of organizational justice, how should you

achieve this?

Answer: Organizational justice addresses the perceived fairness of how these decisions are made. As manager, you

need to consider employeesʹ level of satisfaction with the outcome -how they feel about the decisions

concerning who is laid off and who is retained (distributive justice). Employees also are concerned about the

fairness with how the decisions are made -are they random, or based on performance, length of service,

favoritism, or nepotism (procedural justice)? Interpersonal justice refers to how the employees are treated

during the process. People tend to accept adverse decisions if they have positive feelings about their

employers and supervisors. Informational justice refers to the employeesʹ perceptions of the fairness of the

information used as the basis for making the decisions. If, for example, the decisions are based on merit, do

they believe that the appraisal procedure gives a fair measure of performance?

Diff: 7 Page Ref: 39-40

LO: 1

3) Do you believe that good ethics is good business? Explain your answer. Answer: People promoting ethical

behavior in business argue that ethical decision making is good for business. Benefits of being ethical include:

1 Improved financial performance: People prefer to deal with ethical organizations.

2 Reduced operating costs: Efforts to protect the natural environment also help save money.

3 Enhanced corporate reputation: Customers are loyal to businesses perceived as being ethical.

4 Increased ability to attract and retain employees: People like to feel proud of where they work.

Diff: 6 Page Ref: 43-44

LO: 3

4) You have been appointed chair of a task force created to establish an ethics program for your

corporation. What should be included in this program?

Answer: The task force needs to develop a code of ethics describing what the organization stands for and the

general rules of conduct expected of its employees. Training programs should be developed to reinforce

the corporationʹs ethical values. An ethics audit should be conducted to investigate and document

incidents of dubious ethical conduct. The corporation needs to appoint an ethics officer, a high-ranking

organizational official who is expected to ensure ethical conduct throughout the organization. Finally,

the task force should establish a mechanism for communicating ethical standards to all employees.

Diff: 7 Page Ref: 49-50

LO: 4

5) Some have argued that the only responsibility for management is to make as much money as possible

for the shareholders. Others argue that a corporation has an obligation to be socially responsible. How

would you respond?

Answer: Organizations need to obey the law and to act ethically. Corporate social responsibility involves more.

Advocates claim that an organization has an obligation to the community in which it operates -locally,

nationally, and/or globally. This may include such activities as developing environmentally-friendly

products and contributing to philanthropic causes. It has been suggested that socially responsible

companies perform well financially due to the ʺvirtual circle,ʺ whereby they attract customers and

investors.

Diff: 9 Page Ref: 56-57

LO: 6

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