Deck 15: Organizational Change and Development

Question 1

Altering the composition of an existing job is an organizational change made at the intermediate level.

Answer 1

False

Question 2

The fact that making changes is a costly process puts a premium on not making changes if the costs outweigh the potential benefits.

Answer 2

False

Question 3

A leading coalition is a group that support the change but do not have much influence on others.

Answer 3

False

Question 4

Managers usually choose slow rates of change for determining who can keep up to the organization's goals and who cannot.

Question 5

Change is typically stimulated when something is anticipated to change or actually changes in the environment.

Question 6

Inertia,mistrust,and lack of information can cause problems during the movement stage of the change process.

Question 7

When the economy weakens,most companies consider adding new services or products.

Question 8

A major driver of organizational change is the external environment in which the organization exists.

Question 9

Many nonbusiness organizations,especially governmental agencies,contract or expand in relation to economic conditions because external forces directly impact their budgets.

Question 10

Changes in a firm's processes and procedures often come about because of earlier changes in the organization's strategy or structure.

Question 11

Force field analysis suggests that increasing the driving forces of change is the best way to bring about organizational change.

Question 12

Managing the change process in an organization is easy as the need for change is usually obvious.

Question 13

The actions of direct competitors can trigger changes inside a given organization,even when that organization would prefer not to make any changes.

Question 14

The causes of organizational change originate exclusively from internal forces.

Question 15

One of the biggest determinants of resistance during the unfreezing stage of the change process is the level of uncertainty associated with the change.

Question 16

Once managers are successful in getting others to see the need for change,they do not encounter further resistance in the moving stage of the change process.

Question 17

Changing the structural makeup of organizations is sometimes one of the least valuable tools managers have to create other desired changes.

Question 18

Most businesses and many other organizations are likely to be insensitive to moves made by their direct competitors,especially those in response to changes in the market or customers' preferences.

Question 19

It is crucial to make an accurate assessment of the strength of the forces behind the need for change.

Question 20

Changing societal attitudes toward certain products or services is a change that is quick to develop and easy to detect.

Question 21

A company is suffering sales setbacks because a competitor has launched an identical product in the market.The company decides to improve its product design by adding additional features that would differentiate its offerings from those of the competitors.In this example,the focus of change is ________.

A) systems
B) technology
C) staff
D) structure

Question 22

The organizational development approach to change has a strong behavioral and people orientation.

Question 23

Which of the following forces for change was illustrated when workers at the Port of Los Angeles opposed the introduction of new cargo-handling technologies?

A) managerial decisions
B) global business influences
C) technological breakthroughs
D) employee preferences and pressures

Question 24

Due to the rise in the rates of obesity and lifestyle diseases like diabetes and hypertension,many people have begun opting for healthier diets.This has taken a toll on the fast food and beverage industry.This is an example of which of the following external forces of change?

A) change in technological developments
B) change in economic conditions
C) change in societal attitudes
D) change in legal and political issues

Question 25

For more than 200 years,Encyclopedia Britannica was believed to be the most authoritative encyclopedia in the world.However,sales began to plummet when Microsoft started bundling Encarta with its software products.Britannica offered digital versions of its encyclopedia,but priced them high to encourage consumers to purchase its nicely bound volumes.The plan failed.Sales have continued to spiral downward after Wikipedia,a free online encyclopedia,gained popularity.Which of the following statements sums up this scenario most clearly?

A) Technology has positively influenced the publishing industry.
B) Products with strong brand-name recognition can withstand external threats.
C) Information posted on the Internet is more reliable than hardcopy information.
D) Managers being slow to respond to technological changes can result in loss of business.

Question 26

Generally,when a company institutes a change to counter that of a rival company,it is making a change in its ________.

A) structure
B) staffing
C) strategy
D) systems

Question 27

Within the context of organizational change,which of the following practices focus on shared values and culture?

A) replacing batching with continuous-flow manufacturing
B) encouraging cooperation through a cross-training program
C) changing from a niche market to a general market approach
D) instituting participatory decision making throughout the organization

Question 28

The fundamental assumption about organizations in the organizational development (OD)approach is that they are systems composed of interdependent parts.

Question 29

According to the 2005 "Consumer Choice" report sponsored by Autobytel.com,consumers' preference for smaller SUVs with decent gas mileage had increased.Which of the following forces for change probably caused this increase?

A) economic conditions
B) competitors' actions
C) technology developments
D) legal developments

Question 30

________ are mostly charged with determining an organization's strategy.

A) Top level managers
B) Lower level managers
C) Shareholders
D) Human resource personnel

Question 31

Which of the following changes is common at the intermediate level of an organization?

A) dividing departments
B) consolidating major divisions
C) forming new project groups
D) altering job compositions

Question 32

Apart from managers,which of the following groups are often an excellent source of innovative suggestions for change?

A) shareholders
B) retailers
C) lower level employees
D) suppliers

Question 33

Which of the following best defines "transformational changes"?

A) changes in shared values and strategy
B) long-term changes in technology and staff
C) dynamic changes in systems and structure
D) particularly complex and comprehensive changes

Question 34

In early 2007,Cadbury Schweppes announced its intention to separate its U.S.beverage division from its core confectionery business.In this case,Cadbury Schweppes was focusing on ________.

A) changing its staff
B) changing its culture
C) changing its structure
D) changing its systems

Question 35

After winning a huge contract to build an expressway,AZ Builders Corp.has decided to create a cross-functional team that will be made up of experts from different fields,including civil engineers,architects,and accountants.The company's board of directors also decides to institute a one-month training program for this group in order to help them shape the goals and plans to implement this project.In this example,the focus of change is ________.

A) systems
B) technology
C) staff
D) structure

Question 36

IBF Industries,Inc.is a leading manufacturer and marketer of skin care and solar filters in the United States.The company is a market leader in the U.S.,and the demand for its products has been static over the last five quarters.In order to achieve better growth,the management is now planning to develop its business by entering the Canadian market.Which of the following information,if true,would most support the management's decision to develop the market?

A) The Canadian online census conducted in the year 2011 showed that the number of people in Canada over age 60 would increase by over 30 percent in five years.
B) The unemployment rate and unemployment benefit claims in Canada are reported to be higher than last year.
C) The per capita income and the average purchasing power of the people in Canada have increased by two percent in last six months.
D) The assent prices in Canada, such as homes and financial assets, have been decreasing for the last ten months.

Question 37

Managers must evaluate the change outcomes to know whether additional changes are needed and to understand if the particular approaches implemented should be used again in similar circumstances.

Question 38

Which of the following is an internal force of change for a company?

A) economic conditions
B) technological developments
C) demographic shifts
D) managerial decisions

Question 39

As a demographic pattern,the aging of populations in the United States and Japan exemplifies a(n)________.

A) volatile external force of change
B) slow-moving external force of change
C) transitional external force of change
D) inconsequential external force of change

Question 40

Which of the following,if true,would be most likely to make a company implement an immediate organizational change?

A) change in the economic conditions of the country
B) change introduced by a direct competitor that affects profits
C) change in high-ranking managers in the organization
D) change in societal attitudes toward products

Question 41

AOL's shift in strategy from generating revenues via consumer subscriptions to generating revenue via advertising on its website is an example of ________ of the need for change.

A) proactive recognition
B) reactive recognition
C) cybernetic recognition
D) retroactive recognition

Question 42

The line managers at Harmony Corp.believe that the introduction of the customer care hotline facility has been a huge mistake.They are overwhelmed by the number of complaints that come in each day,most of which are due to faulty usage and not faulty products.The top executives at Harmony believe that the hotline will prove its worth over time.What inference can be drawn from this scenario?

A) The dissatisfaction is due to pull of past competencies.
B) The dissatisfaction is due to nonimmediate results.
C) The dissatisfaction is due to lack of capabilities.
D) The dissatisfaction is due to lack of information.

Question 43

A sales manager announces that all weekly sales reports must be submitted via e-mail,rather than hardcopy.However,some of the veteran staff members are still putting their reports in the manager's office mailbox.Which of the following would be the least effective way of winning over those who are resistant to this change?

A) providing all required hardware, software, and training
B) explaining how electronic submissions save time, paperwork, and money
C) praising staff when they successfully submit their reports electronically
D) stressing that younger staff members have no problem e-mailing their reports

Question 44

In order to recover its market share,the management in Xenon Inc.decide to launch a low cost line of its existing products.Which of the following arguments would most likely convince the reluctant employees of the feasibility of this strategy?

A) Cheaper raw materials would make for a cheaper product.
B) Competitors were offering goods at low prices.
C) Company is currently making a product that has low demand.
D) New technology would help mass production and price reduction.

Question 45

Research has shown that the ________ is one of the biggest determinants of resistance during the movement stage of the change process.

A) pull of past competencies
B) unreliability of workplace technology
C) level of uncertainty associated with the change
D) inability of management to articulate the need for change

Question 46

A furniture manufacturer instituted a new strategy of producing custom-designed kitchen fittings rather than predesigned fittings.Although the amount of fittings produced by the company fell as the new plan was implemented,management was quick to point out that the custom fittings sold faster (and at a higher profit margin)than the predesigned fittings.What strategy is management using to overcome the pull of past patterns and build momentum in moving toward new patterns?

A) benchmarking
B) celebrating early wins
C) unfreezing
D) behavioral process orientation

Question 47

The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in the last 6 months.The manager believes this precipitous decline may be due to the extensive marketing campaign a competitor is running to promote its "good-to-go" breakfast menu.Which of the following steps would be most likely to regain the lost customers?

A) retrain the members of the breakfast crew
B) introduce exotic items on the breakfast menu
C) match the competitors ad campaign but with lower prices
D) survey staff and customers on what changes need to be implemented

Question 48

According to the force field analysis,equilibrium occurs when ________ of change are balanced with ________ of change resulting in a relatively steady state.

A) external forces; internal forces
B) driving forces; restraining forces
C) maintenance forces; corrective forces
D) demographic forces; societal forces

Question 49

Senior executives at NEC were unwilling to listen to younger scientists who said that LCD technology would appeal to customers who wanted computer monitors with high resolution and a smaller desktop footprint.According to Lewin's theory of change,this scenario depicts problems at the ________ of the change process.

A) unfreezing stage
B) movement stage
C) refreezing stage
D) engagement stage

Question 50

Within the context of organizational change,the most lasting people-change approach usually involves ________.

A) adjusting people's attitudes and expectations
B) adding, subtracting, or interchanging people
C) enhancing people's knowledge, skills, and abilities
D) changing how staff members relate to one another

Question 51

Which of the following is the most effective way to bring about a change?

A) increasing the driving forces
B) adding more force for change
C) reducing the resistance forces
D) providing more information

Question 52

Which of the following techniques will be the least likely to overcome employee resistance during the moving stage of the change process?

A) educating them about the nature of the desired change
B) communicating how the change will affect them in a positive way
C) announcing that the change has been mandated by top management
D) making sure that they have the required knowledge, skills, and abilities

Question 53

Google's purchase of YouTube exemplifies its ________ of the need to enhance its mission of organizing the world's information and making it universally useful and accessible.

A) proactive recognition
B) reactive recognition
C) cybernetic recognition
D) retroactive recognition

Question 54

Within the context of force field analysis,________ is a driving force of change.

A) new technology
B) norms that punish risk taking
C) costs of updating old equipment
D) employee groups opposed to change

Question 55

Which of the following is true of Lewin's concept of refreezing as the third phase of the change process?

A) The new state should not allow reversal.
B) The new state should be static.
C) The new state should not be monitored.
D) The new state should not be adjusted.

Question 56

Which of the following is the most people-oriented change focus used within an organization?

A) adding, subtracting, or interchanging people
B) attempting to change how staff members relate to each other
C) getting the manager to provide new information
D) directly enhancing knowledge, skills and abilities

Question 57

Which of the following is important for a manager to do in the refreezing phase of organizational change in addition to providing positive reinforcement to the employees?

A) provide feedback
B) build momentum
C) supply resources
D) explain desired goals

Question 58

As a reason for resistance to change,the term inertia means ________.

A) lacking adequate information about the need for change
B) being comfortable with the present way of doing things
C) mistrusting those who are communicating the need for change
D) refusing to believe that change is necessary or helpful

Question 59

Which of the following statements is true about the movement phase of the change process?

A) The greater the magnitude of change, the greater is the level of uncertainty.
B) The lesser the uncertainty regarding a change, the greater the resistance to it.
C) The greater the magnitude of the change, the lesser the level of resistance to it.
D) The higher the level of resistance to a change, the lesser planning is required for its success.

Question 60

When a manager is planning for change,to which of the following questions would the issues of participation and incentives pertain most closely?

A) How soon is change needed?
B) What support will be critical for success?
C) How should the change be communicated?
D) How can support for the change be developed?

Question 61

When used as an OD intervention technique,________ improve understanding of and relationships with others in the organization.

A) structural activities
B) diagnostic activities
C) process consultation activities
D) individual enhancement activities

Question 62

The essence of an organizational development (OD)approach to change is ________.

A) having information technology play a central role in the change effort
B) redesigning a firm's processes to achieve dramatic improvements
C) its emphasis on planned efforts focusing on people and their interrelationships in organizations
D) its skill at creating, acquiring, and transferring knowledge, and modifying its behavior to accommodate changes.

Question 63

Which of the following is true of the first step in evaluating change outcomes?

A) Every type of data that can be collected should be collected.
B) The benefits of the data should be weighed against the costs.
C) Analysis of change effects based on insignificant data is often informative.
D) Data should be collected at irregular intervals.

Question 64

A T-group is related to which of the following approaches to planned change?

A) process redesign
B) organizational learning
C) reengineering
D) organizational development

Question 65

The problem with instituting changes too frequently is that ________.

A) employees may not get time to completely adjust to any one of them
B) they can be difficult to coordinate across multiple levels in the organization
C) they are not always in sync with the real problems faced by the organization
D) benefits of the changes are not likely to outweigh the costs

Question 66

Within the context of organizational change,________ emphasizes the flexibility and capability for continual change.

A) force field analysis
B) process consultation
C) organizational renewal
D) behavioral process orientation

Question 67

Which of the following is an example of a technostructural activity?

A) agenda setting
B) sensitivity training
C) questionnaire development
D) job enrichment

Question 68

Which of the following is an example of a diagnostic activity?

A) agenda setting
B) sensitivity training
C) formulation of questionnaires
D) job enrichment

Question 69

Which of the following is an example of a teambuilding activity?

A) agenda setting
B) diagnostic meetings
C) coaching and counseling
D) behavior modeling

Question 70

A farming goods supply company observes that recent low rainfall over much of the area that it services has resulted in a significant drop in sales.Management decides to change the thrust of their strategy from sales of tractors,harvesters and other such equipment to piping,pumps,sprinklers,and irrigation supplies.Which of the following statements would most accurately direct the rate and need for this change?

A) Once the rate of change has been set, it cannot be altered.
B) Too rapid a rate of change does not give people time to adapt to the change.
C) Too slow a rate of change might cause the conditions that created the need for it to shift significantly.
D) A slow rate of change can be frustrating for those people who want to see some concrete results for their efforts.

Question 71

Which of the following is a drawback of making very small changes in an organization?

A) They do not justify the costs.
B) They can be difficult to coordinate.
C) They can result in high resistance.
D) They can create major uncertainty.

Question 72

A(n)________ is a set of structured activities or action steps designed to improve an organization.

A) focus group
B) change agent
C) intervention
D) force field analysis

Question 73

As a key distinguishing feature of the OD approach to organizational change,________ focuses on new relationships.

A) benchmarking
B) organizational renewal
C) behavioral process orientation
D) individual enhancement activity

Question 74

Which of the following is not a part of the evaluation process of change outcomes?

A) data collection
B) comparison of collected data against goals
C) communicating results to those affected by it
D) altering the approaches to the change

Question 75

Since the time of the original formulation of the three-stage change process many years ago,the goal of refreezing has been broadened into the objective of ________.

A) organizational renewal
B) organizational learning
C) reengineering
D) organizational development

Question 76

Which of the following is an example of process consultation?

A) responsibility charting
B) diagnostic meetings
C) coaching and counseling
D) behavior modeling

Question 77

Which of the following is a valid reason why a manager may deliberately introduce a fast rate of change?

A) to outweigh the costs of the change by its benefits
B) to determine who can keep up and who cannot
C) to minimize the opposition against the change
D) to institute multiple changes one after another

Question 78

The organizational development approach has its roots in ________.

A) behavioral science research
B) information technology
C) problem-solving methods
D) knowledge transfer methods

Question 79

According to the matrix of agreeability and influence,the members of a leading coalition for change will be a part of the ________ agreeable and ________ influence group.

A) high; low
B) low; high
C) high; high
D) low; low

Question 80

Which of the following is an assumption of the organizational development approach to planned change?

A) Many companies have structures involving more people than necessary.
B) People's emotions are as important as their thoughts.
C) Systematically collected data is better than any assumption.
D) Many companies have business processes that are inefficient.