Commerce Accountancy

Management and Organizational Behavior

2,437 Questions

Management and organizational behavior explore how individuals and groups interact within an organization. This hub covers motivation theories, leadership styles, and delegation. These topics are essential for commerce students and competitive exam aspirants.

Work motivation theoriesLeadership stylesDelegation of authorityOrganizational structure typesPerformance appraisal aimsGroup dynamics and social loafing

Management and Organizational Behavior Questions

Multiple choice

Under expectancy theory, motivation increases when

  1. valance increases

  2. valance decreases

  3. either (1) or (2)

  4. there is no effect on valance

  5. both (1) and (2)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In Expectancy Theory, valence refers to the value or attractiveness a person places on the reward or outcome. Higher valence means the reward is more desirable, which increases motivation to achieve it.

Multiple choice

_______ induces an individual to perform.

  1. Leadership style

  2. Motivation

  3. Morale

  4. Direction
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Motivation is the psychological process that induces an individual to perform action or achieve goals. It's the internal drive that stimulates people to act and helps convert ability into performance. Leadership style influences HOW people are led, morale reflects their attitude, but motivation is what actually induces performance.

Multiple choice

The system of authority created in an organisation is called

  1. unity of command

  2. chain of command

  3. organisational command

  4. both (1) and (2)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Chain of command is the formal system of authority that establishes the line of authority from top to bottom in an organization. It specifies who reports to whom and ensures clear communication and accountability. Unity of command (option A) is a related principle stating that each employee should report to only one supervisor, but it's not the system itself.

Multiple choice

______ refers to the line of demarcation between various managerial positions in an organisation.

  1. Hierarchy

  2. Authority

  3. Power

  4. Command
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Hierarchy refers to the vertical arrangement of managerial positions in an organization, creating clear lines of authority and reporting relationships. It establishes the levels of management and demarcates who has authority over whom. Authority (B) is the power to give orders, Power (C) is the ability to influence, and Command (D) is the act of directing - hierarchy is the structural arrangement that contains these.

Multiple choice

One of the most widely known approaches of defining leadership styles is the _____ developed by Robert Blake and Jane Mouton.

  1. managerial grid

  2. autocratic leadership style

  3. benevolent autocratic style

  4. both (1) and (2)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Blake and Mouton developed the Managerial Grid, which plots leadership styles on two axes: concern for people and concern for production. The grid identifies five leadership styles including impoverished, country club, authority-compliance, middle-of-the-road, and team management. Autocratic (B) and benevolent autocratic (C) are specific styles, not the overall framework.

Multiple choice

In Vroom's theory, motivation results from

  1. valance + expectancy

  2. valance / expectancy

  3. valance x expectancy

  4. valance - expectancy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Vroom's Expectancy Theory uses multiplication (valence x expectancy) because if either valence (value of outcome) or expectancy (belief that effort leads to performance) is zero, motivation becomes zero. Addition, subtraction, or division don't capture this relationship.

Multiple choice

Which of the following is a satisfier?

  1. Salary

  2. Relation with supervisor

  3. Working condition

  4. Advancement
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Herzberg's Two-Factor Theory identifies 'satisfiers' (motivators) like advancement, achievement, recognition, and growth. Salary, supervisor relations, and working conditions are 'hygiene factors' - their absence causes dissatisfaction but their presence doesn't strongly motivate.

Multiple choice

According to Herzberg, motivators are

  1. dissatisfiers

  2. satisfiers

  3. hygiene factors

  4. both (2) and (3)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Herzberg called motivators 'satisfiers' because they create job satisfaction when present. They're different from hygiene factors (dissatisfiers) which prevent dissatisfaction but don't motivate when present.

Multiple choice

A management style that exists when the to management grants subordinate managers a significant degree of autonomy and independence in operating and making decisions for their organisational units, is called

  1. centralisation

  2. delegation

  3. decentralisation

  4. span of control
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Decentralization involves top management granting significant autonomy and decision-making authority to subordinate managers for their units. Delegation is assigning specific tasks, centralization concentrates authority, and span of control refers to how many subordinates report to a manager.

Multiple choice

Directions: Read the passage and complete the sentence.

Externals perceive themselves

Directions: In this Section you have six short passages. After each passage you will find several questions based on the passage. First, read Passage- I, and answer the questions based on it then go on the other passages.
PASSAGE-III

Some people believe that they are masters of their own fate. Other people see themselves as pawans of a fate, believing that what happens to them in their lives is due to luck or chance. The first type, those who believe that they control their destinies, have been labeled internals, whereas the latter, who see their lives as being controlled by outside forces, have been called externals. Internals search more actively for information before making a decision, are more motivated to achieve, and make a greater attempt to control their environment. Externals, however, are more compliant and willing to follow directions. Therefore, internals do will on sophisticated tasks-which include most managerial and professional jobs-that require complex information processing and learning. In addition, internals are more suited to jobs that require initiative and independence of action, almost all successful salespeople, for instance are internals. In contrast, externals should do well on jobs that are well structured and routine and in which success depends heavily on complying with the directions of others.

  1. as having little control over organizational outcome

  2. as critical to the success of the organizational

  3. as those who can influence sales volumes

  4. as those who search frantically for more information

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The passage states that externals 'see their lives as being controlled by outside forces' and 'are more compliant and willing to follow directions.' Option A correctly reflects this perception - they see themselves as having little control over organizational outcomes because they believe external forces control results. Options B, C, and D describe internals or other traits not attributed to externals.

Multiple choice

Direction for question: The following question has a paragraph from which the last sentence has been deleted. From the given options, choose the one that completes the paragraph in the most appropriate way.

Most firms consider expert individuals to be too elitist, temperamental, egocentric, and difficult to work with. Force such people to collaborate on a high - stakes project and they just might come to fisticuffs. Even the very notion of managing such a group seems unimaginable. So most organizations fall into default mode, setting up project teams of people who get along nicely _________________.

  1. The result, however, is disastrous.

  2. The result is mediocrity.

  3. The result is creation of experts who then become elitists.

  4. Naturally, they drive innovations.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The right answer is (2). 

When the organizations compromised by setting up project teams not of the best brains but of people who get along nicely, the result has to be mediocrity.  No other answer logically fits in.

Multiple choice

Mooney and Reiley have called the principle of hierarchy as:

  1. channel system

  2. superior-subordinate relationship

  3. equivalence of responsibility

  4. scalar process
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mooney and Reiley described the principle of hierarchy as the scalar process, which refers to a graded series of steps in a chain of command. This process ensures a continuous flow of authority from the top to the bottom of the organization. It is a fundamental concept in classical management theory.

Multiple choice

Authority is most closely related to:

  1. size of organization

  2. human personality

  3. incentives and rewards

  4. control and supervision
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Authority is the formal right to give orders and the power to exact obedience, which is fundamentally linked to control and supervision. Without authority, a supervisor cannot effectively oversee the work of subordinates or ensure organizational standards are met. While incentives and personality matter, the structural essence of authority is control.

Multiple choice

To Chester Barnard, the following statement can be attributed:

  1. formal organization is less important than informal organization

  2. both formal and informal organizations are important

  3. formal organization remains more important than informal organization

  4. formal organizations play a key role in administrative effectiveness
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Chester Barnard emphasized that both formal and informal organizations are essential and coexist within any enterprise. He argued that informal organizations (social groups) facilitate communication and cohesion, which supports the formal structure's goals. Therefore, neither can be viewed in isolation for effective administration.