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Question 1

a. People in a particular South American country have high power distance and high
collectivism. What does this mean, and what are the implications of this information
when you (a senior executive) visit employees working for your company in that
[15 marks]
b. Negative reinforcement is often confused with punishment. Differentiate negative
reinforcement and punishment and describe the desired outcome of each.
[10 marks]

Question 2

a. A supervisor receives regular information about a sales employee's performance (e.g.

sales volume, incomplete paperwork, etc.) and must complete a performance appraisal
of the person's work. The supervisor has a complete description of the employee's job
but has never worked in the field as a sales representative. Moreover, the supervisor is
relatively new to this job and therefore has little experience observing or appraising the
performance of salespeople.

What attribution error is likely to occur under these conditions and what effect would it
have on the performance appraisal results?
[15 marks]
b. “We would work more effectively in organisational settings if we could avoid the process
of stereotyping.”

Comment on the accuracy of the above statement:

[10 marks]


Question 3

Your organisation wants to improve employee motivation. Employees already have strong P-to-
O expectancies and the outcome valences are quite favourable for strong performance, but they
seem to have a low E-to-P expectancy.

a. Explain the THREE (3) components in the expectancy theory.

[15 marks]
b. Identify any THREE (3) distinct types of strategies that would potentially increase
employee motivation by improving the E-to-P expectancy.
[10 marks]

Question 4

a. Due to a corporate restructuring, three of the six employees who work on your corporate
investment team have been transferred to other teams and replaced with three new
recruits. Although the three new hires are experienced members from other
organisations, they are new to your organisation and your team. Consequently, your
team will pass through most stages of team development again. Briefly describe any
three stages of team development (exclude the adjournment stage) that your team will
probably experience after the new recruits join the team. Your answer should recognise
that only half of your corporate investment team members are new while the others have
been with the team and organisation for more than one year.
[15 marks]
b. What do you understand by the term ‘social loafing’? Social loafing is a common
problem within group members. As a leader, how would you minimise social loafing in
your group? Explain.
[10 marks]


Question 5

You have just been hired as a brand manager of toothpaste for a large consumer products
company. Your job mainly involves encouraging the advertising and production groups to
promote and manufacture the company’s products more effectively. These departments are not
under your direct authority, although company procedures indicate that they must complete
certain tasks requested by brand managers.

Name and describe the FIVE (5) sources of power you can use to ensure that the advertising
and production departments will help you make and sell toothpaste more effectively. Provide
relevant examples to support your answer.
Question 6

a. Until recently, employees at a regional location of a large telephone company were

throwing out nearly two tons of rubbish every day. To reduce the amount of waste at the
12-story building, a special task force was set up consisting of respected employees
representing most areas within the building. The task force reviewed practices in other
organisations and developed action plans to implement the changes. Employees
received weekly information via email about what changes they should expect during the
two months before the program started. Employees attended special sessions that
showed them how to reduce paper waste such as using both sides of paper, using scrap
paper as memo pads, reusing office envelopes and relying more on email and voice mail
rather than written memos. A special telephone hotline was set up so that employees
could get answers to questions about recycling and ease their concerns about the
change. The program also created barriers to wasteful behaviour such as replacing
paper towel dispensers with electric hand dryers in the washrooms, replacing Styrofoam
cups with reusable mugs at each employee's desk, removing wastepaper baskets in
each cubicle and replacing them with tiny reusable bags to carry non-recyclables to
specially marked trash cans located elsewhere in the building. The task force monitored
waste every week and displayed the results on a large graph in the building entrance.

Explain FIVE (5) possible strategies that have been used by this company to minimise
resistance to change.
[15 marks]


b. The president of Advanced Systems Corp. wants the company to have a strong
organisational culture around a specific set of values. As a vice-president, you are
concerned that the president may be trying to strengthen the culture too much thereby
creating a corporate cult.

Describe THREE (3) potential problems with having an organisational culture that is too
[10 marks]