MGT 605 EXAM 1 Actual Exam
2026/2027 Complete Questions and
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SECTION 1: INTRODUCTION TO ORGANIZATIONAL BEHAVIOR & DIVERSITY
(10 Questions)
Q1: Which of the following best describes the contingency approach to organizational
behavior?
A. Applying universal management principles that work across all organizations regardless of
context
B. Using systematic research methods to make management decisions based solely on
quantitative data
C. Recognizing that management practices must be adapted to fit the specific situation, context,
and environmental factors
D. Focusing exclusively on individual employee psychology while ignoring organizational
systems
Correct Answer: C
Rationale: The contingency approach, developed by management theorists including Fiedler and
others, posits that there is no single best way to manage; instead, optimal management practices
depend on situational factors such as technology, environment, organizational size, and employee
characteristics. This approach contrasts sharply with Option A, which describes the classical
universalist view (e.g., Fayol's principles). Option B describes evidence-based management,
which complements but differs from contingency thinking. Option D is incorrect because OB
explicitly integrates individual, group, and system-level analysis. The contingency approach
remains foundational in modern OB as organizations navigate diverse contexts from traditional
offices to hybrid remote environments in 2026/2027.
Q2: A multinational corporation implements AI-driven hiring algorithms to reduce unconscious
bias. However, the company discovers the algorithm replicates existing demographic disparities.
This scenario best illustrates which challenge/opportunity in OB?
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A. Improving ethical behavior
B. Managing workforce diversity effectively
C. Responding to globalization
D. Improving customer service
Correct Answer: B
Rationale: This scenario exemplifies the challenge of managing workforce diversity
effectively (Option B). Despite technological interventions, achieving true diversity and
inclusion requires addressing systemic biases embedded in data and algorithms—a critical
2026/2027 concern as AI integration accelerates. The situation involves diversity management
failures, not primarily ethical decision-making frameworks (Option A), though ethics are
implicated. Globalization (Option C) provides context but isn't the core issue. Customer service
(Option D) is irrelevant here. This reflects the "diversity paradox" where well-intentioned
systems perpetuate inequities without proper oversight, highlighting why OB emphasizes both
structural and cultural diversity initiatives.
Q3: According to Hofstede's cultural dimensions theory, a country with high uncertainty
avoidance would most likely exhibit which characteristic?
A. Acceptance of flexible work arrangements and tolerance for ambiguity in job roles
B. Strong preference for clear rules, structured procedures, and resistance to deviant ideas
C. Emphasis on individual achievement over group harmony and collective success
D. Minimal concern for status differences and rejection of formal hierarchical structures
Correct Answer: B
Rationale: Hofstede's uncertainty avoidance dimension measures societal comfort with
ambiguity and unstructured situations. High uncertainty avoidance cultures (e.g., Japan, Greece,
Portugal) prefer clear rules, formal procedures, and structured environments to minimize anxiety
about the unknown—making Option B correct. Option A describes low uncertainty avoidance
cultures (e.g., Singapore, Denmark) that embrace flexibility. Option C describes individualism (a
separate Hofstede dimension), while Option D conflates uncertainty avoidance with power
distance (another distinct dimension about hierarchy acceptance). Understanding these
dimensions is crucial for managing global teams in 2026/2027's distributed work environments.
Q4: In a 2026 tech startup, employees from Generation Z (born 1997-2012) collaborate with
Baby Boomers (born 1946-1964). The Gen Z employees prefer instant feedback via Slack, while
Boomers prefer formal quarterly reviews. This generational difference primarily relates to which
OB concept?
, 3
A. Deep-level diversity
B. Surface-level diversity
C. Organizational culture
D. Evidence-based management
Correct Answer: A
Rationale: This scenario illustrates deep-level diversity (Option A)—differences in values,
communication preferences, and work styles that become apparent only through interaction.
Unlike surface-level diversity (Option B), which involves immediately visible characteristics
(age, race, gender), deep-level diversity encompasses psychological differences in feedback
preferences, technological comfort, and work values shaped by generational experiences. While
organizational culture (Option C) influences these preferences, the core issue is demographic
cohort differences in values and behaviors. Evidence-based management (Option D) refers to
decision-making processes, not generational dynamics. Managing such deep-level differences
requires adaptive leadership approaches sensitive to varying communication needs in
multigenerational 2026/2027 workplaces.
Q5: Which statement best represents evidence-based management (EBM)?
A. Relying on personal managerial experience and intuition accumulated over years of practice
B. Making organizational decisions based on the best available scientific evidence,
organizational facts, and stakeholder concerns
C. Implementing practices that succeeded at competitor organizations without adaptation
D. Prioritizing employee satisfaction surveys as the sole determinant of policy changes
Correct Answer: B
Rationale: Evidence-based management, championed by scholars like Pfeffer and Sutton,
integrates three critical elements: best available scientific evidence from systematic research,
organizational facts/data specific to the context, and practitioner expertise/stakeholder
values—making Option B the comprehensive definition. Option A describes traditional
experience-based management that EBM seeks to complement, not replace. Option C represents
benchmarking without contextual adaptation, contrary to EBM principles. Option D
overemphasizes one data source, violating EBM's multi-source integration. In 2026/2027, EBM
is increasingly vital as organizations navigate complex decisions about remote work policies, AI
implementation, and DEI strategies requiring rigorous evaluation rather than fad adoption.
Q6: The GLOBE (Global Leadership and Organizational Behavior Effectiveness) research
project identified nine cultural dimensions. Which dimension focuses on the degree to which a
society encourages and rewards group members for performance improvement and excellence?