Question 1

During the 1990s, which of the following was cited by BusinessWeek as having one of the worst corporate boards in the United States?

Accepted Answer

BusinessWeek cited Walt Disney Co. as having one of the worst corporate boards in the United States during the 1990s due to a lack of independence and diversity among board members. This led to conflicts of interest and poor decision-making, ultimately resulting in the resignation of CEO Michael Eisner in 2005.

Question 2

_____ strategies are designed to maintain organizational effectiveness by adapting to external changes.

Accepted Answer

Bridging strategies are designed to maintain organizational effectiveness by adapting to external changes, as they involve building relationships and adapting to the external environment.

Question 3

The tussle between Philip Purcell and John Mack for the chief executive's position at Morgan Stanley after the company was bought by Dean Witter and Discover Financial Services Inc. in 1997 is an example of _____.

Accepted Answer

The struggle between Purcell and Mack was a result of power struggles and political pressures within the company. It was a battle for control and dominance over the company, rather than being driven by economic, reputational, or geopolitical pressures.

Question 4

The U.S. Mint faced a dilemma about whether it should produce coins as a passive organization following the dictates of the Federal Reserve and Congress or act like a market-based organization. This is an example of a(n):

Accepted Answer

The U.S. Mint is experiencing an identity crisis because it is struggling to balance its identity as a government-run organization with its desire to act like a market-based organization. The other choices do not accurately reflect the situation the Mint is facing.

Question 5

"Trapped by success" is another reason why organizations can fail to respond to pressures for change.

Accepted Answer

When an organization becomes successful, it may become rigid and resistant to change in order to maintain the status quo that led to its success. This can prevent the organization from adapting to changing market conditions or new technologies, ultimately leading to its failure.

Question 6

Which of the following is NOT a force for stability?

Accepted Answer

Competitive advantage is a force for change, as organizations strive to gain an advantage over their competitors through innovation and new strategies. The other options - predictability and uncertainty reduction, organizational social capital, and sustained advantage - all contribute to stability by promoting consistency, trust, and durability within an organization.

Question 7

Organizational change can occur as a simple response to the latest management fad or fashion.

Accepted Answer

Organizational change can often be driven by external pressures or trends, including popular management methodologies or philosophies, without necessarily being rooted in a critical evaluation of the organization's specific needs or challenges.

Question 8

A Type 1 error occurs when managers threaten the survival of their firms by failing to act because they perceive their environment as stable when it is turbulent.

Accepted Answer

A Type 1 error in hypothesis testing occurs when a true null hypothesis is incorrectly rejected, not when managers misperceive their environment.

Question 9

_____ strategies are designed to maintain organizational efficiency by avoiding change, by shielding an organization from external pressures.

Accepted Answer

Buffering strategies aim to protect an organization from external influences and maintain its stability by keeping change to a minimum. This can be achieved through stockpiling, redundancy, and other tactics that insulate the organization from turbulence, uncertainty, and other disruptions. By contrast, bridging strategies involve building connections with external networks, while binding strategies focus on enforcing stability and conformity within an organization. Adapting strategies, on the other hand, aim to enhance organizational flexibility and responsiveness by encouraging change and innovation.

Question 10

Inside out perspective means assessing how climate change will affect how the organization operates.

Accepted Answer

Inside out perspective refers to assessing the impact an organization has on the environment, not how environmental changes affect the organization.

Question 11

According to Brian Toft and Simon Reynolds, which of the following statements is True of passive learning?

Accepted Answer

The answer of According to Brian Toft and Simon Reynolds,...

Question 12

After being accused of having one of the worst corporate boards in the United States during the 1990s, the Walt Disney Company remains reluctant to incorporate any form of change into the board structure or practices.

Accepted Answer

The statement is outdated and no longer accurate. Disney has since made significant changes to its board structure and practices.

Question 13

Generally, all managers respond to external pressures for change in the same way.

Accepted Answer

Managers may respond differently to external pressures for change, depending on factors such as their leadership style, organizational culture, industry and market conditions, and personal beliefs and values. Some may be more resistant to change, while others may be more adaptive and proactive in addressing external pressures.

Question 14

Reputational pressures always develop slowly over time.

Accepted Answer

Reputational pressures can develop quickly, especially in the age of social media and instant communication, where a single incident can significantly impact an organization's or individual's reputation almost overnight.

Question 15

According to David Buchanan, post-incident change contexts _____.

Accepted Answer

Post-incident change contexts often have defensive agendas as they focus on addressing and mitigating the issues that led to the incident, rather than pursuing new opportunities or taking risks.

Question 16

Formal coercive pressure occurs when organizations are forced to change to meet new requirements relating to, for example, pollution, taxation, or affirmative action.

Accepted Answer

Formal coercive pressure is a real phenomenon where organizations are compelled to change to comply with new regulations or laws, which may include pollution abatement regulations, tax codes, or affirmative action policies.

Question 17

Internal organizational change drivers include all of the following EXCEPT:

Accepted Answer

Social identity is not an internal organizational change driver. Growth, integration and collaboration, and corporate identity are all common drivers of internal organizational change as they all impact the structure, culture, and goals of the organization. Social identity, on the other hand, refers to the way individuals identify with larger social groups and is not a direct factor within an organization's internal operations.

Question 18

Which of the following is most likely an advantage that new chief executive officers (CEOs) have over their predecessors?

Accepted Answer

New CEOs often come in with fresh ideas and a willingness to shake things up. They can create excitement and momentum for change within the organization, which can lead to increased innovation and success.

Question 19

Which of the following is NOT an advantage that new chief executive officers (CEOs) have over their predecessors?

Accepted Answer

The statement "they adhere to past organizational practices" is not an advantage that new CEOs have over their predecessors. In fact, the ability to bring fresh perspectives and new ideas to an organization is one of the key advantages of having a new CEO. Therefore, option C is the correct answer as it is not an advantage.

Question 20

John Kotter argued that four sets of forces were translating global trends and developments into organizational adaptations and changes: new technologies, the expansion of international trade, maturing markets, and the end of the "cold war."

Accepted Answer

This is a true statement. John Kotter identified these four forces as driving organizational change in response to global trends and developments.

Quiz 3: Why Change Contemporary Pressures and Drivers