Deck 7: Organization Change and Innovation

Question 1

A company has built a new manufacturing plant to increase production. This scenario illustrates which step in the Lewin model of organization change?

A) Unfreezing
B) Entropy
C) Reengineering
D) Implementation
E) Refreezing

Answer 1

D
This scenario illustrates the second step of the Lewin model of organization change, which is the implementation of the change itself.

Question 2

Reactive changes:

A) are made in anticipation of future events.
B) are generally more effective than planned changes.
C) have more potential for poorly conceived and executed change.
D) involve fewer risks than planned changes.
E) are preferred to planned changes by most successful organizations.

Answer 2

C
Reactive change is a piecemeal response to circumstances as they develop. Because reactive change may be hurried, the potential for poorly conceived and executed change is increased. Planned change is almost always preferable to reactive change.

Question 3

Modifying the benefits system on a yearly basis to maintain employee satisfaction is most likely to be a _____ change.

A) reactive
B) planned
C) contingency
D) legal
E) general environmental

Answer 3

B
Planned change is designed and implemented in an orderly and timely fashion in anticipation of future events.

Question 4

_____ is an example of an external force that affects an organization.

A) Employee motivation
B) Production costs
C) New government regulations
D) Surplus capital
E) High employee turnover

Question 5

The first step of the change process involves:

A) recognizing the need for change.
B) implementing the change.
C) selecting a change technique.
D) choosing a change leader.
E) overcoming resistance to change.

Question 6

Consumer tastes and preferences are _____ forces that influence an organization's product line.

A) technical
B) internal
C) managerial
D) external
E) political

Question 7

Unions negotiating for higher wages is an example of a(n) _____ force for change.

A) internal
B) technical
C) external
D) managerial
E) legal

Question 8

Which stage of the Lewin model of organization change involves managers letting people who will be affected by an impending change know the reasons for the change?

A) Implementing
B) Recognizing
C) Refreezing
D) Transforming
E) Unfreezing

Question 9

ProDairy Inc. reduced the prices of its products to combat competitors that were selling dairy products at lower prices. This scenario illustrates a force for change present in the _____ of an organization.

A) task environment
B) supply chain
C) internal environment
D) legal-political environment
E) demographic environment

Question 10

_____ is a piecemeal response to circumstances as they develop.

A) Planned change
B) Programmed change
C) Premeditated change
D) Natural change
E) Reactive change

Question 11

_____ is the last step in the change process.

A) Diagnosis of relevant variables
B) Actual implementation
C) Evaluation and follow-up
D) Recognition of the need for change
E) Establishment of goals for the change

Question 12

Beta LLC has decided to change its hiring criteria so that more people with technical expertise can join the company. Which step of the change process is illustrated in the scenario?

A) Establishment of goals for the change
B) Recognition of the need for change
C) Selection of appropriate change technique
D) Diagnosis of the relevant variables
E) Evaluation and follow-up

Question 13

According to the Lewin model of organization change process, refreezing involves _____.

A) recognizing why the change is necessary
B) informing people about the change
C) the implementation of the change
D) reinforcing the change so that it becomes a part of the system
E) repeating the organization change process at frequent intervals

Question 14

Substantive modification to some part of an organization is known as _____.

A) organization synergy
B) organization maturity
C) organization implementation
D) organization change
E) organization entropy

Question 15

A company has set an objective to increase its product sales by 50 percent in the next two years. Identify the step of the organization change process of the company.

A) Recognition of the need for change
B) Establishment of goals for the change
C) Selection of appropriate change technique
D) Planning for implementation of the change
E) Evaluation and follow-up

Question 16

Which of the following forces for change is present in the task environment of an organization?

A) Prices at which suppliers sell raw materials
B) The number of employees in the organization
C) Political changes in the country in which the organization operates
D) Overhead production costs of the organization
E) Availability of resources in the organization

Question 17

An example of a force for change in the task environment of an organization is _____.

A) pricing strategies of competitors
B) employee turnover rates
C) capital availability
D) employee motivation
E) production costs

Question 18

Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how _____ forces affect organizations.

A) technical
B) external
C) managerial
D) legal
E) internal

Question 19

The top executives at Delta Inc. have decided to reorganize the corporation from product divisions into geographic sectors. This is a(n) _____ force for change.

A) internal
B) technical
C) political
D) external
E) environmental

Question 20

_____ is change that is designed and implemented in an orderly and timely fashion in anticipation of future events.

A) Planned change
B) Reactive change
C) Involuntary change
D) Organic change
E) Crisis change

Question 21

In most change situations, there are factors that make the change process more difficult and others that seem to ease the process. The process by which a manager identifies these factors and then tries to tip the balance so that the factors facilitating the change outweigh those hindering the change is called _____.

A) facilitation
B) implementation
C) force-field analysis
D) participative development
E) education

Question 22

Jenny runs a small boutique in New Orleans and has five employees working under her. Lately, she has noticed that her boutique has not been delivering customer orders on time, and she has realized that it is because of the rise in the number of customers and insufficient manpower. She has decided to employ another five employees. Which step of the change process is illustrated in the scenario?

A) Implementing the change
B) Diagnosis of relevant variables
C) Selection of an appropriate change technique
D) Planning for implementation of change
E) Evaluation and follow-up

Question 23

Which of the following is an example of a goal for change for an organization?

A) Reacting to a forecast indicating new market potential
B) Recognizing that poor employee morale was caused by dangerous working conditions
C) Deciding to decrease employee turnover rates by 90 percent
D) Introducing a new reward system for employees
E) Arranging for training on interpersonal skills for managers

Question 24

Martin is trying to adopt more automated equipment in his soda bottling facility, and workers are resisting the change. When Martin decides to hold a meeting to explain to workers how the change will be beneficial to them, he is using _____ as a means of overcoming resistance to change.

A) entropy
B) micromanagement
C) deskilling
D) education
E) specialization

Question 25

Managers can overcome resistance to change by:

A) not letting employees know about the change.
B) letting employees know about the change only after it has been successfully implemented.
C) limiting the involvement of employees in the change process.
D) minimizing communication during the change process.
E) announcing the change much in advance.

Question 26

Wendy is reluctant to accept a new job offer because she's worried about her ability to meet new job demands. The most likely reason for such employee resistance to change is _____.

A) threatened self-interests
B) facilitation
C) uncertainty
D) participation
E) feelings of loss

Question 27

In general, the biggest cause of worker resistance to change is _____.

A) satisfaction
B) uncertainty
C) regret
D) feelings of loss
E) different perceptions

Question 28

Which of the following exemplifies the first step in the comprehensive organization change model?

A) Setting standards for a new absenteeism control procedure
B) Noticing that the pension fund has less cash than needed to provide the guaranteed employee benefits
C) Determining the probable causes of a recently detected drop in the level of employee job satisfaction
D) Investigating different techniques for enhancing employee job satisfaction
E) Planning meetings to help employees understand the procedures in the company's new quality program

Question 29

Which of the following is an effective way of overcoming resistance to change?

A) Using micromanagement techniques
B) Using facilitation techniques
C) Using deskilling techniques
D) Limiting employee involvement in the change process
E) Minimizing communication

Question 30

The top management at Omega Inc. recently initiated an employee motivation drive to improve employee morale and in turn decrease turnover rates. It has now commissioned a statistics firm to check the effect of its initiative on the employees' morale. Which step of the comprehensive approach to change is illustrated in the scenario?

A) Evaluation and follow-up
B) Selection of appropriate change technique
C) Planning for implementation of change
D) Diagnosis of relevant variables
E) Actual implementation

Question 31

Which of the following is an effective way of overcoming resistance to change?

A) Allowing employees to participate in the change process
B) Fostering an environment of uncertainty in the organization
C) Announcing the change only after it has been implemented
D) Minimizing communication among employees
E) Avoiding force-field analysis

Question 32

A force-field analysis identifies:

A) management potential in existing employees.
B) synergy in an organization.
C) the need for structural change in an organization.
D) factors that facilitate and hinder organization change.
E) the appropriate span of management for an organization.

Question 33

When Beta Inc. acquired Redd Communications, there was a huge uproar by the staff of Redd Communications as there were rumors of staff reductions and operations closures. _____ was the cause for this reaction by the Redd Communications staff.

A) Synergy
B) Process gain
C) Uncertainty
D) Process loss
E) Facilitation

Question 34

The top management at Phoenix Inc. planned to shift their corporate office to a bigger and better facility about four streets away from the current location. The top managers knew that their decision would meet with considerable employee resistance, so they informed all the employees well in advance of the advantages of moving to the new office. This minimized the employees' resistance. Which of the following techniques of overcoming resistance is illustrated in the scenario?

A) Risk propensity
B) Education
C) Specialization
D) Micromanagement
E) Deskilling

Question 35

According to the results of a classic study, employee participation:

A) reduces the need for communication.
B) encourages employees to resist change.
C) increases productivity and satisfaction.
D) increases turnover rates.
E) creates a centralized structure.

Question 36

Which of the following is a cause for the resistance to change that a worker might feel because the worker disagrees with the management that the change will be best for the organization in the long-run?

A) Threatened self-interests
B) Risk propensity
C) Participation
D) Different perceptions
E) Feelings of loss

Question 37

To overcome resistance to change, the top management of a company discusses with its employees the new employee policies and procedures that it proposes to bring in and also seeks their involvement in the change process. This scenario illustrates the _____ technique that helps reduce resistance to change.

A) participation
B) synergy
C) deskilling
D) greenwashing
E) risk propensity

Question 38

When the top management at Venus Corp. sought to change the organization design, form more work teams, and decrease the managers' span of management, it met with great resistance from the managers. This was because the managers feared that their power within the company would decrease. The managers' reaction to change was brought about by _____.

A) facilitation
B) participation
C) threatened self-interests
D) low self-confidence
E) unfamiliarity with company procedures

Question 39

Ron, a manager at a hardware components manufacturing unit, has recently learned from a subordinate's report that the production rates in his firm have gone down immensely because of poor employee morale. Ron has realized that he needs to implement a change in the organization that will motivate employees. Which of the following steps in the comprehensive approach to change is illustrated in the scenario?

A) Recognizing the need for change
B) Understanding how to implement the change
C) Setting goals for the change
D) Selecting a change technique
E) Implementing the change

Question 40

Gamma Corp. is planning to bring in new internal standards for all the products it manufactures. The new standards will ensure better quality and will also help the company gain a competitive advantage. However, the factors that stand in the way of the change are increased workload on employees and the need for skill development among employees. To minimize these factors that hinder the change, Gamma has decided to motivate its employees through a reward system. Which of the following concepts is illustrated in the scenario?

A) Force-field analysis
B) Participation
C) Job deskilling
D) Specialization
E) Micromanagement

Question 41

The radical redesign of all aspects of an organization in order to achieve major gains in cost reduction, service delivery, or reduction in order-processing time is known as _____.

A) entropy
B) process change
C) innovation
D) reengineering
E) system change

Question 42

Blue Bells Inc. is a software services firm. Lately, the company's HR department noticed that its employees' performance levels have plummeted, and a survey conducted by the firm indicated that this was due to low employee satisfaction levels. This prompted the HR department to introduce a new incentive system in the company. This is an example of change in the area of _____.

A) people
B) task environment
C) technology and operations
D) general environment
E) regulatory systems

Question 43

Which of the following represents organization change in the area of change in technology and operations?

A) Changing line and staff relationships
B) Upgrading the management information system
C) Training people to give them new skills and abilities
D) Redesigning jobs
E) Changing the authority distribution in a company

Question 44

The normal process within an organization that leads to a system decline is known as _____.

A) reengineering
B) synergy
C) process gain
D) innovation
E) entropy

Question 45

Attempting to change the attitudes and values of a company's workforce indicates a change in the area of _____.

A) people
B) work processes
C) organizational control systems
D) organization structure
E) task environment

Question 46

Richard Inc. has been receiving complaints from its customers about the inefficiency of its customer service professionals. The company has now decided to change the recruitment criteria for this role. The new criteria place more emphasis on technical expertise. Richard Inc. is attempting to make a change in the area of _____.

A) information technology
B) work sequences
C) operations
D) enterprise resource planning
E) organization structure and design

Question 47

_____ is a common platform for changing business processes.

A) Enterprise resource planning
B) Entropy
C) Reverse engineering
D) Contingency planning
E) Synergy

Question 48

A change in an organization's culture is an example of change in the area of _____.

A) organization structure
B) organizational operations
C) work processes
D) information technology
E) organizational control systems

Question 49

A company has recently undergone a transformation from using a highly centralized approach to a much more decentralized approach for managing its operations. This change represents a change in the area of _____.

A) technology
B) work sequences
C) work processes
D) organization structure
E) enterprise resource planning

Question 50

When a company changes its work processes, the change is in the area of _____.

A) people
B) technology and operations
C) job design
D) facilitation
E) task environment

Question 51

Alpha Corp. has divided its business into a number of sub units. This organization change is an example of change in the area of _____.

A) people
B) operations
C) structure and design
D) social responsibility
E) organization mission

Question 52

Watches.com, an online watch store, recently adopted a new enterprise resource planning (ERP) system to help keep track of the company's inventory and to deliver customers' orders on time. The company's adoption of the new ERP system reflects a change in the area of _____.

A) organization culture
B) job design
C) technology and operations
D) people
E) departmentalization

Question 53

Image LLC, an advertising company, has recently received several long-term projects from leading companies. Image has decided to switch from functional departmentalization to cross-functional work teams to be able to perform better. This is an example of change in the area of _____.

A) technology and operations
B) social structure
C) people
D) organization structure and design
E) task environment

Question 54

Robin Plastics Inc. recently set up a new strategic business unit. The company made changes in the area of _____.

A) technology and operations
B) social structure
C) people
D) task environment
E) organization structure and design

Question 55

When organizational change involves planned alteration of work sequence or work activities, the change primarily occurs in the area of _____.

A) people
B) technology and operations
C) social responsibility
D) strategy
E) organizational structure and design

Question 56

Alba Inc. replaced old equipment with new and advanced production equipment in all its plants. This is an example of a change in the area of _____.

A) job design
B) people
C) organization culture
D) line-staff structure
E) technology and operations

Question 57

A company has introduced new rules and regulations and appraisal criteria to promote discipline and commitment among employees. This organization change is in the area of _____.

A) work process
B) enterprise resource management
C) technology
D) operations
E) people

Question 58

Which of the following is an example of an organization's change in technology and operations?

A) Enhanced job design
B) Introduction of departmentalization
C) Adoption of new information systems
D) Introduction of a new compensation program
E) Introduction of new employment policies

Question 59

_____ is the conversion process used by an organization to transform inputs into outputs.

A) Reengineering
B) Divestment
C) Technology
D) Entropy
E) Process gain

Question 60

When a firm decides to decrease the number of first-line managers it has, and thus increase the span of management of first-line managers, it is making a change in the area of _____.

A) organization structure and design
B) social structure
C) task environment
D) people
E) technology and operations

Question 61

The reengineering process can be made effective by:

A) adopting a hands-off leadership style.
B) extensively using micromanagement leadership techniques.
C) adopting a strong but not autocratic leadership style.
D) eliminating any sense of urgency in the organization.
E) limiting employee participation in the process.

Question 62

In the reengineering process, the first step involves:

A) setting goals and developing a strategy.
B) emphasizing top management's commitment to reengineering.
C) implementing the chosen strategy across the organization.
D) optimizing top-down and bottom-up perspectives.
E) creating a sense of urgency among managers.

Question 63

Which of the following can help make the reengineering process more effective?

A) Limiting communication
B) Creating a sense of urgency in the organization
C) Adopting a highly centralized organizational structure
D) Refraining from making extensive changes
E) Limiting employee involvement in the process

Question 64

_____ is an organization development (OD) technique that helps employees formulate their personal goals and evaluate strategies for integrating their goals with the goals of the organization.

A) Process consultation
B) Third-party peacemaking
C) Team building
D) Life and career planning
E) Counseling

Question 65

Which of the following is true of business process changes?

A) Business process change should not be carried out during a phase of entropy.
B) Business process change requires a careful blend of top-down and bottom-up involvement.
C) Centralization must be adopted by the top management for the business process change to be successful.
D) Employee participation should be minimal during a business process change.
E) Successful business process change is not accompanied by a sense of urgency.

Question 66

Libra Technologies Inc. frequently asks its employees to measure such things as supervisor effectiveness. The company circulates various questionnaires among all its employees to get their insights. Which organization development is illustrated in the scenario?

A) Third-party peacemaking
B) Survey feedback
C) Team building
D) Process consultation
E) Force-field analysis

Question 67

During which phase of the organizational innovation process do most organizations have access to an innovation and apply it in the same way?

A) Innovation development
B) Innovation maturity
C) Innovation launch
D) Innovation growth
E) Innovation application

Question 68

_____ are aimed at analyzing the current condition of an organization; this approach involves using questionnaires, opinion surveys, interviews, archival data, and meetings to assess the various characteristics of the organization.

A) Life and career planning activities
B) Technostructural activities
C) Third-party peacemaking activities
D) Diagnostic activities
E) Process consultation activities

Question 69

Leading Edge Software Inc. has introduced a new activity called "Group Farming" in which the company's executive groups participate in farming activities for three hours every month. This activity has been designed by the company to emphasize the importance of interdependence and coordination among its employees. Which of the following organization development techniques is the company using?

A) Third-party peacemaking
B) Process consultation
C) Team building
D) Survey feedback
E) Coaching and counseling

Question 70

In the context of organization development techniques, coaching and counseling:

A) focus on how an individual is performing today.
B) provide nonevaluative feedback to individuals.
C) provide assistance to individuals with achieving non-work-related objectives.
D) are designed for managers and not executive employees.
E) focus exclusively on increasing productivity.

Question 71

The first stage of the organizational innovation process is _____ of creative ideas.

A) growth
B) maturity
C) launch
D) development
E) application

Question 72

_____ are new products, services, or technologies developed by an organization that completely replace the existing products, services, or technologies in an industry.

A) Process innovations
B) Incremental innovations
C) Radical innovations
D) Mechanical innovations
E) Managerial innovations

Question 73

_____ are changes in the way products or services are manufactured, created, or distributed.

A) Process innovations
B) Operational innovations
C) Radical innovations
D) Mechanical innovations
E) Managerial innovations

Question 74

_____ is the stage of the innovation process at which an organization introduces new products or services to the marketplace.

A) Innovation development
B) Application launch
C) Innovation application
D) Application growth
E) Innovation maturity

Question 75

Which of the following is one of the assumptions on which the theory and practice of organization development (OD) are based?

A) Employees tend to perform well when micromanagement techniques are used.
B) The total organization and the way it is designed influence the way individuals behave within the organization.
C) All employees have a strong need to control and influence their colleagues and the organization's work processes.
D) Employees naturally dislike their work and lack ambition.
E) A successful corporate leader is one who adopts an autocratic style of leadership to control his subordinates.

Question 76

_____ is the managed effort of an organization to develop new products or services or new uses for existing products or services

A) Divestiture
B) Innovation
C) Reverse engineering
D) Job deskilling
E) Contingency management

Question 77

Which of the following can help make the business change process more effective?

A) Limiting employee involvement in the process
B) Refraining from creating a sense of urgency in the organization
C) Starting the process with a new, clean slate
D) Limiting communication channels
E) Refraining from changing company strategies

Question 78

Which of the following is a possible diagnostic activity in organization development?

A) Enterprise resource planning
B) Attitude surveys
C) Force-field analysis
D) Job shadowing
E) Reverse engineering

Question 79

A(n) _____ is a change in the appearance or performance of a product or service or of the physical processes through which a product or service is manufactured.

A) technical innovation
B) incremental innovation
C) radical innovation
D) mechanical innovation
E) managerial innovation

Question 80

Zen Electricals Inc. has internal experts who help executives learn about how others see them and improve their performance in the future. The company is using the organization development technique called _____.

A) technostructural activities
B) process consultation
C) team building
D) coaching and counseling
E) third-party peacemaking