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Organizational Behavior
Jun 2026 Examination
Q1. BrightSol Logistics is facing high employee turnover and declining morale, which the HR audit attributes to authoritarian leadership and limited emotional intelligence among supervisors. Feedback reveals that staff feel undervalued, stressed, and hesitant to voice concerns. The executive team recognizes the link between leadership style, emotional intelligence, and workplace climate, and wants to redesign its management development program to address these interconnected issues. Using emotional intelligence theory, what solutions should BrightSol Logistics incorporate into its leadership training to improve supervisors’ empathy, social skills, and motivation, and how would this likely impact organizational culture and team performance? (10 Marks)
Ans 1.
Introduction
Emotional intelligence is the capacity to recognize, understand, manage, and effectively use emotions in oneself and in interactions with others. Daniel Goleman’s widely applied model identifies five core components: self-awareness, self-regulation, motivation, empathy, and social skills. At BrightSol Logistics, the HR audit has identified a clear causal chain: authoritarian supervisors with low emotional intelligence are creating a climate of fear and disengagement, which drives stress, silence, and ultimately voluntary resignation. Redesigning the management
Q2 (A). An established financial services company faces high employee turnover and low morale despite offering above-market salaries and comprehensive benefits. Exit interviews reveal pervasive dissatisfaction related to autonomy, lack of recognition, and limited opportunities for challenging work. Senior management debates whether investing more in workplace perks or redesigning jobs with greater intrinsic rewards would better address the issue. They are split between those who believe hygiene factors suffice and those who argue true satisfaction requires addressing higher-level motivators. Evaluate the company’s approach to motivation using Herzberg’s Two-Factor Theory, critiquing the effectiveness of focusing on hygiene factors versus motivators. (5 Marks)
Ans 2(A).
Introduction
Herzberg’s Two-Factor Theory distinguishes between hygiene factors, which prevent dissatisfaction, and motivators, which create genuine satisfaction and engagement. The financial services company’s situation is a textbook case of what happens when organizations mistake the absence of dissatisfaction for the presence of motivation. Above-market salaries and benefits are hygiene factors and
Q2 (B). A multinational corporation is facing significant intergroup conflicts between its regional offices due to competition for shared resources and perceived inequities in management attention. As tensions rise, productivity within multiple departments suffers, and collaboration breaks down. Leadership is debating whether to prioritize negotiation, mediation, or arbitration as a conflict management approach to restore harmony, but opinions are divided on which method aligns best with the company’s culture and long-term strategic objectives. Evaluate the suitability of negotiation and mediation as conflict management techniques for addressing the intergroup conflicts in this context. (5 Marks)
Ans 2(B).
Introduction
Intergroup conflict in a multinational corporation involving resource competition and perceived management inequity is a structural and relational problem that authority alone cannot resolve. The choice between negotiation and mediation as conflict management tools reflects how the organization values autonomy, relationships, and long-term collaboration across its regional offices
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