BUAD 304 | BUAD304 Final Exam: Organizational
Behavior and Leadership Updated and Latest
Questions and Correct Answers with Rationale -
University of Southern California
1. A project manager notices that a highly skilled developer has stopped participating in team
meetings and is producing lower quality code since a new bonus structure was introduced
that rewards individual speed over team collaboration. Which motivation theory best
explains this shift in behavior?
A. Herzberg’s Two-Factor Theory
B. Maslow’s Hierarchy of Needs
C. Equity Theory
D. Expectancy Theory
Correct Answer: D
Explanation: Expectancy theory explains how individuals make choices based on the
perceived relationship between effort, performance, and outcomes. In this case, the
developer likely perceives that high-quality, collaborative effort no longer leads to the
desired reward of the bonus. The change in the reward structure altered the
‘instrumentality’ and ‘valence’ of their specific actions. This leads to a rational decision to
reduce effort in areas that are no longer incentivized. Understanding these links helps
managers align organizational goals with individual motivations.
2. During a high-stakes board meeting, a CEO pushes for an aggressive acquisition despite
several warning signs from the financial team. The team members, fearing they will be seen
as ‘not team players,’ remain silent and eventually vote in favor of the deal. This is a classic
example of:
A. Social Loafing
B. Groupthink
C. Cognitive Dissonance
D. The Halo Effect
Correct Answer: B
Explanation: Groupthink occurs when the desire for harmony or conformity in a group
results in an irrational or dysfunctional decision-making outcome. Team members
suppress dissenting viewpoints to maintain group cohesion or avoid conflict with a
powerful leader. This scenario demonstrates the pressure to conform and the self-
censorship characteristic of high-pressure environments. By failing to critically evaluate
,the acquisition, the board risks significant organizational failure. Effective leaders must
encourage ‘devil’s advocacy’ to prevent this dangerous psychological phenomenon.
3. A marketing firm is shifting from a hierarchical structure to a matrix structure to improve
cross-functional collaboration. Many senior managers are resisting this change because they
feel it dilutes their authority. According to Lewin’s Three-Step Model, what should the
leadership do first?
A. Implement the new reporting lines immediately
B. Refreeze the culture by rewarding those who comply
C. Unfreeze the current state by communicating the need for change
D. Focus only on training new employees in the matrix model
Correct Answer: C
Explanation: Lewin’s model suggests that the first step in any change process is
‘Unfreezing’ the current status quo. This involves preparing the organization to accept that
change is necessary by breaking down existing mindsets. Leaders must address the
resistance of senior managers by clearly explaining the limitations of the current hierarchy.
Without this initial stage, the change will likely be met with active or passive sabotage.
Once the need is understood, the organization can move toward the desired new state.
4. An employee consistently arrives late to work. Their manager assumes the lateness is due
to the employee’s lack of discipline, ignoring the fact that the city’s main transit line has been
undergoing major repairs for a month. This is an example of:
A. Self-Serving Bias
B. Stereotyping
C. Contrast Effect
D. Fundamental Attribution Error
Correct Answer: D
Explanation: The Fundamental Attribution Error is the tendency to underestimate
external situational factors and overestimate internal personal factors when judging
others’ behavior. In this scenario, the manager blames the employee’s personality rather
than the legitimate transit issues. This cognitive bias can lead to unfair performance
evaluations and strained workplace relationships. Leaders must practice empathy and
gather all facts before making judgments about employee performance. Recognizing
environmental constraints is essential for fair and effective management.
5. A leader focuses on clarifying roles, setting goals, and providing rewards based on
performance. They primarily use their legitimate and reward power to influence followers.
This leadership style is best described as:
A. Transformational Leadership
, B. Servant Leadership
C. Authentic Leadership
D. Transactional Leadership
Correct Answer: D
Explanation: Transactional leadership is characterized by a focus on supervision,
organization, and group performance. These leaders use rewards and punishments to
motivate followers, treating the relationship as an exchange or transaction. While effective
for maintaining routine and achieving short-term goals, it lacks the inspirational
component of transformational leadership. This style relies heavily on the leader’s formal
authority within the organizational hierarchy. It is most suitable for stable environments
where clear objectives and standardized processes are paramount.
6. According to the Job Characteristics Model (JCM), which core job dimension relates to the
degree to which a job requires completion of a whole and identifiable piece of work?
A. Skill Variety
B. Task Significance
C. Task Identity
D. Autonomy
Correct Answer: C
Explanation: Task identity refers to the extent to which a job involves doing a complete
piece of work from beginning to end. When employees can see a visible outcome of their
efforts, they tend to feel more meaningfulness in their work. This is distinct from task
significance, which focuses on the impact of the work on others. High task identity prevents
the feeling of being just a ‘cog in the machine.’ Designing jobs with high task identity is a
key strategy for increasing internal employee motivation.
7. A team has been working together for three months. They have moved past initial
introductions and have finally established clear norms and expectations for how they will
work together. According to Tuckman’s Stages of Group Development, they are in the:
A. Storming stage
B. Norming stage
C. Performing stage
D. Adjourning stage
Correct Answer: B
Explanation: The Norming stage is characterized by increased group cohesion and the
development of shared standards and behavior. During this phase, members resolve their
Behavior and Leadership Updated and Latest
Questions and Correct Answers with Rationale -
University of Southern California
1. A project manager notices that a highly skilled developer has stopped participating in team
meetings and is producing lower quality code since a new bonus structure was introduced
that rewards individual speed over team collaboration. Which motivation theory best
explains this shift in behavior?
A. Herzberg’s Two-Factor Theory
B. Maslow’s Hierarchy of Needs
C. Equity Theory
D. Expectancy Theory
Correct Answer: D
Explanation: Expectancy theory explains how individuals make choices based on the
perceived relationship between effort, performance, and outcomes. In this case, the
developer likely perceives that high-quality, collaborative effort no longer leads to the
desired reward of the bonus. The change in the reward structure altered the
‘instrumentality’ and ‘valence’ of their specific actions. This leads to a rational decision to
reduce effort in areas that are no longer incentivized. Understanding these links helps
managers align organizational goals with individual motivations.
2. During a high-stakes board meeting, a CEO pushes for an aggressive acquisition despite
several warning signs from the financial team. The team members, fearing they will be seen
as ‘not team players,’ remain silent and eventually vote in favor of the deal. This is a classic
example of:
A. Social Loafing
B. Groupthink
C. Cognitive Dissonance
D. The Halo Effect
Correct Answer: B
Explanation: Groupthink occurs when the desire for harmony or conformity in a group
results in an irrational or dysfunctional decision-making outcome. Team members
suppress dissenting viewpoints to maintain group cohesion or avoid conflict with a
powerful leader. This scenario demonstrates the pressure to conform and the self-
censorship characteristic of high-pressure environments. By failing to critically evaluate
,the acquisition, the board risks significant organizational failure. Effective leaders must
encourage ‘devil’s advocacy’ to prevent this dangerous psychological phenomenon.
3. A marketing firm is shifting from a hierarchical structure to a matrix structure to improve
cross-functional collaboration. Many senior managers are resisting this change because they
feel it dilutes their authority. According to Lewin’s Three-Step Model, what should the
leadership do first?
A. Implement the new reporting lines immediately
B. Refreeze the culture by rewarding those who comply
C. Unfreeze the current state by communicating the need for change
D. Focus only on training new employees in the matrix model
Correct Answer: C
Explanation: Lewin’s model suggests that the first step in any change process is
‘Unfreezing’ the current status quo. This involves preparing the organization to accept that
change is necessary by breaking down existing mindsets. Leaders must address the
resistance of senior managers by clearly explaining the limitations of the current hierarchy.
Without this initial stage, the change will likely be met with active or passive sabotage.
Once the need is understood, the organization can move toward the desired new state.
4. An employee consistently arrives late to work. Their manager assumes the lateness is due
to the employee’s lack of discipline, ignoring the fact that the city’s main transit line has been
undergoing major repairs for a month. This is an example of:
A. Self-Serving Bias
B. Stereotyping
C. Contrast Effect
D. Fundamental Attribution Error
Correct Answer: D
Explanation: The Fundamental Attribution Error is the tendency to underestimate
external situational factors and overestimate internal personal factors when judging
others’ behavior. In this scenario, the manager blames the employee’s personality rather
than the legitimate transit issues. This cognitive bias can lead to unfair performance
evaluations and strained workplace relationships. Leaders must practice empathy and
gather all facts before making judgments about employee performance. Recognizing
environmental constraints is essential for fair and effective management.
5. A leader focuses on clarifying roles, setting goals, and providing rewards based on
performance. They primarily use their legitimate and reward power to influence followers.
This leadership style is best described as:
A. Transformational Leadership
, B. Servant Leadership
C. Authentic Leadership
D. Transactional Leadership
Correct Answer: D
Explanation: Transactional leadership is characterized by a focus on supervision,
organization, and group performance. These leaders use rewards and punishments to
motivate followers, treating the relationship as an exchange or transaction. While effective
for maintaining routine and achieving short-term goals, it lacks the inspirational
component of transformational leadership. This style relies heavily on the leader’s formal
authority within the organizational hierarchy. It is most suitable for stable environments
where clear objectives and standardized processes are paramount.
6. According to the Job Characteristics Model (JCM), which core job dimension relates to the
degree to which a job requires completion of a whole and identifiable piece of work?
A. Skill Variety
B. Task Significance
C. Task Identity
D. Autonomy
Correct Answer: C
Explanation: Task identity refers to the extent to which a job involves doing a complete
piece of work from beginning to end. When employees can see a visible outcome of their
efforts, they tend to feel more meaningfulness in their work. This is distinct from task
significance, which focuses on the impact of the work on others. High task identity prevents
the feeling of being just a ‘cog in the machine.’ Designing jobs with high task identity is a
key strategy for increasing internal employee motivation.
7. A team has been working together for three months. They have moved past initial
introductions and have finally established clear norms and expectations for how they will
work together. According to Tuckman’s Stages of Group Development, they are in the:
A. Storming stage
B. Norming stage
C. Performing stage
D. Adjourning stage
Correct Answer: B
Explanation: The Norming stage is characterized by increased group cohesion and the
development of shared standards and behavior. During this phase, members resolve their
