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Foundations of Organizational Behavior & Individual Behavior
Q1: A new manager at a tech startup notices that employees seem disengaged despite
competitive salaries. She decides to systematically study the patterns of employee
behavior, attitudes, and performance to identify improvement opportunities. This
approach best exemplifies:
A. Intuitive management based on gut feelings
B. The systematic study of organizational behavior
C. Financial analysis of compensation structures
D. Random trial-and-error problem solving
Correct Answer: B
Rationale: The systematic study of organizational behavior involves applying
evidence-based concepts and theories to understand and improve individual, group, and
organizational effectiveness. Option A relies on intuition rather than systematic
analysis. Option C focuses narrowly on pay. Option D lacks the structured, theory-based
approach of OB.
,Q2: A company implements AI-powered resume screening to improve hiring efficiency.
However, the system consistently ranks candidates from certain demographic groups
lower due to training data biases. This 2026 organizational challenge illustrates:
A. The benefits of automation in HR processes
B. AI bias in HR decisions and the need for algorithmic auditing
C. Improved workforce diversity through technology
D. Reduced need for human oversight in hiring
Correct Answer: B
Rationale: AI bias in HR decisions is a critical 2026 OB challenge, as algorithms can
perpetuate historical biases. Organizations must audit AI systems for fairness. Option A
ignores the bias problem. Option C is opposite—bias reduces diversity. Option D is
dangerous—human oversight remains essential.
Q3: An employee believes that working overtime will lead to better performance reviews,
which will result in a promotion that they highly value. According to expectancy theory,
which component is represented by the belief that overtime leads to better reviews?
A. Valence
B. Instrumentality
C. Expectancy
D. Motivation
Correct Answer: C
,Rationale: Expectancy is the belief that effort will result in performance (effort →
performance). Instrumentality (option B) is performance → reward. Valence (option A)
is the value of the reward. Option D is the overall outcome, not a component.
Q4: A job candidate scores high on conscientiousness and emotional stability in a
pre-employment assessment. According to updated 2026 research on the Big Five
model, this candidate is likely to:
A. Struggle with creative problem-solving tasks
B. Demonstrate strong job performance across most occupational categories
C. Prefer working alone without any team interaction
D. Be unsuitable for leadership positions
Correct Answer: B
Rationale: Meta-analyses consistently show conscientiousness and emotional stability
(low neuroticism) are the strongest Big Five predictors of job performance across
diverse occupations. Option A describes low openness. Option C describes low
extraversion. Option D is opposite— these traits predict leadership effectiveness.
Q5: An employee attributes a colleague's missed deadline to laziness (internal
attribution) but attributes their own missed deadline to an unexpected system outage
(external attribution). This illustrates:
A. Fundamental attribution error and self-serving bias
B. Halo effect and contrast effect
C. Selective perception and stereotyping
, D. Projection and rationalization
Correct Answer: A
Rationale: The fundamental attribution error is overestimating internal factors for
others' behavior; self-serving bias is attributing our successes to internal factors and
failures to external factors. Option B describes perceptual errors in evaluation. Option C
involves filtering information. Option D are defense mechanisms, not attribution
concepts.
Q6: A manager evaluates an employee who arrived late to one meeting as "unreliable"
and rates them poorly on all performance dimensions regardless of actual
accomplishments. This perceptual distortion is called:
A. Selective perception
B. Halo effect
C. Contrast effect
D. Stereotyping
Correct Answer: B
Rationale: The halo effect occurs when a single trait (lateness) influences overall
perception, creating a generalized positive or negative impression. Option A involves
filtering based on interests. Option C involves comparing to others. Option D involves
group-based generalizations.
Q7: An employee with high core self-evaluation believes they are capable, worthy, and in
control of their work outcomes. This construct includes all of the following EXCEPT: