Organizational Behavior DEC 2026
Dec 2026 Examination
Q1 At GreenLeaf Logistics, the CEO is concerned that several high-performing employees have recently displayed unpredictable work behavior, ranging from bursts of enthusiasm and collaboration to episodes of withdrawal and missed deadlines. Follow-up conversations suggest that emotional reactions to organizational changes, such as new technology rollouts and process updates, may be a driving force. The management team wants to understand how emotional functions impact employee adaptation and motivation during change initiatives. Based on established models of emotions and their functions in organizational behavior, how should GreenLeaf’s management team apply these concepts to promote adaptive responses and sustained motivation among employees during periods of significant change? (10 Marks)
Ans 1.
Introduction
Employees do not react to changes in a logic-based way. Emotions shape how people respond to changes in processes and systems. When working at GreenLeaf Logistics, some high performers show sudden mood swings. They may be excited for a week and withdrawn the next. It’s a common pattern that indicates emotional reactions, not poor discipline. Management needs to understand why feelings increase in the face of change. There are established models that explain
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Q2 (A) At an international financial services company, the CEO introduces a bonus structure that rewards the top 10% of performers annually. Despite clear criteria and competitive monetary rewards, survey data indicate that employees just below the cut-off feel demotivated and start reducing their discretionary effort. Team leaders report increasing complaints about collaboration and resource sharing as employees compare their input-output ratios. Assess the bonus structure through the lens of Equity Theory and discuss its potential long-term effects on organizational culture and collaboration. (5 Marks)
Ans 2(A).
Introduction
The bonus structure is only rewarded to the top 10% of those who perform. The principle looks fair and clear. In practice, employees just beneath the cutoffs feel like they’ve been cheated. Equity Theory provides the explanation for why the small difference causes a significant drop in performance.
Concept and Application
What Equity Theory Says
Equity Theory is the idea that employees measure their own output ratio against others. Input is
Q2 (B) A multinational organization is facing rising tensions between its marketing and finance departments. The marketing head consistently requests increased funds for new campaigns, while the finance head insists on cost control due to limited budget. Meetings have become unproductive, with both sides defending their perspectives and failing to reach consensus. The CEO wants to foster a collaborative climate and resolve this interdepartmental impasse to ensure both strategic innovation and financial sustainability. Evaluate the effectiveness of different conflict management strategies (competition, compromise, collaboration, avoidance, and accommodation) that the CEO might employ in this scenario. (5 Marks)
Ans 2(B).
Introduction
Marketing demands more funds. Finance needs cost control. Both sides believe that their viewpoint is correct, so the meetings don’t go anywhere. Five strategies for managing conflict can assist the CEO to break the impasse and re-establish an effective working relationship.
Concept and Application
Competition and Its Limits Here
It is a situation where one party wins and the other one loses. It is possible for the CEO to simply