Question 1

All managers should actively scan the environment for changes and help to identify external opportunities and threats.

Accepted Answer

Active scanning of the environment is a crucial responsibility of managers in order to identify potential opportunities and threats. By being aware of changes and trends in the external environment, managers can make better decisions and adjust their strategies accordingly. Therefore, it is important for all managers to actively scan the environment.

Question 2

Three of the most important internal pressures for change are changes in 	the CEO or top management, natural life-cycle forces, and aspiration-	evaluation discrepancies.

Accepted Answer

False

Question 3

Planned change that is evolutionary tends to happen in a short period of time.

Accepted Answer

Planned change that is evolutionary tends to happen gradually over a longer period of time. This gradual process allows for adjustments and modifications to be made along the way.

Question 4

Firms are likely to create competitive disadvantages by trying to keep up with technological advances.

Accepted Answer

Firms that do not keep up with technological advances are likely to create competitive disadvantages. Keeping up with technological advances can help firms improve efficiency, reduce costs, and increase competitiveness.

Question 5

Age and income distribution affect the type of products and services demanded in a particular geographic region.

Accepted Answer

Different age groups and income levels have different preferences and buying power, which ultimately affects the demand for certain products and services in a particular area. For example, a region with a high proportion of elderly residents and low-income earners may have higher demand for affordable healthcare services, while a region with a young, affluent population may have higher demand for luxury cars and expensive dining options.

Question 6

Organizations are most likely to be successful in dealing with internal and external pressures by allowing change to happen naturally.

Accepted Answer

While it may be beneficial for organizations to embrace change and be flexible, it is not always possible or advisable to simply allow change to happen naturally. Sometimes proactive measures and strategic planning are necessary to effectively manage internal and external pressures and ensure organizational success.

Question 7

When a company needs to make major changes, it is common to bring in 	new management from outside the corporation, in part because they lack 	commitment to previous strategies.

Accepted Answer

Bringing in new management from outside the corporation can bring fresh perspectives and ideas, and they may not have a strong attachment to previous strategies, making it easier for them to make major changes.

Question 8

When CEOs and other members of the top management team have been in their positions for some time, the organization can experience inertia.

Accepted Answer

When top management team members remain in their positions for an extended period, they may become resistant to change or overly comfortable with the status quo, resulting in organizational inertia.

Question 9

By successfully meeting organization development objectives, an organization improves its ability to recognize the need for change and to implement change more easily.

Accepted Answer

Successfully meeting organization development objectives indicates that the organization has improved its ability to identify and implement necessary changes, making future change efforts smoother and more efficient.

Question 10

Polaroid's managers did not perceive the threat to their existing business
quickly enough to transform the firm.

Accepted Answer

This statement implies that Polaroid did not adapt quickly enough to changing market conditions and technologies, indicating a lack of awareness and response to the threat facing their business.

Question 11

Planned change involves deliberate efforts to move an organization
to a new state.

Accepted Answer

Planned change is a deliberate and intentional effort to move an organization, group, or individual from one state to another. It is typically implemented to improve performance, respond to a new situation or emerging trend, adapt to a changing environment, or achieve a specific goal or objective.

Question 12

Like Starbucks, most successful organizations face only one major change during their lifecycles.

Accepted Answer

The statement is false. Successful organizations typically face multiple changes throughout their lifecycles, such as expansion, mergers/acquisitions, leadership changes, and industry disruptions. Starbucks itself has had various changes throughout its history, including expansion into new markets, changes in leadership, and adapting to shifts in consumer preferences.

Question 13

Kurt Lewin termed the three phases of change: energizing, envisioning, and
enabling.

Accepted Answer

Kurt Lewin termed the three phases of change as unfreezing, changing, and refreezing.

Question 14

Change is typically thought of as a ten stage process.

Accepted Answer

Change is most commonly conceptualized as a three-stage process (unfreezing, change, refreezing) by Kurt Lewin, or through other models like the eight stages of change by John Kotter.

Question 15

Procedural justice issues are less likely to impact the change process if associates and managers are allowed to have input into change-related decisions.

Accepted Answer

When associates and managers are allowed to have input and participate in change-related decision-making, it increases feelings of fairness and transparency in the change process. This can reduce the perceived procedural justice issues that may arise during times of change.

Question 16

Managers or associates who resist change because of self interest believe they will lose something of value from a proposed change.

Accepted Answer

Managers or associates who resist change often do so because they believe the proposed change will negatively impact their own interests or benefits.

Question 17

Selling off poorly performing units and acquiring new businesses is a 	response to an aspiration-performance discrepancy.

Accepted Answer

Selling off poorly performing units and acquiring new businesses is a common strategy used to bridge the gap between a company's aspirations and its actual performance. By shedding underperforming business units and investing in new ventures with greater growth potential, companies can improve their overall performance and better align with their long-term goals. This strategy is often driven by a desire to increase profitability, expand market share, or mitigate risks associated with certain business segments.

Question 18

To effectively manage change, leaders must be able to recognize the need for change and force the change process to happen in spite of resistance from managers and associates.

Accepted Answer

Effective change management involves recognizing the need for change and addressing resistance through communication, collaboration, and support, rather than forcing change.

Question 19

Stickiness refers to the likelihood that associates, units, or organizations will resist changing their aspirations even when faced with evidence that current aspirations are too low or too high.

Accepted Answer

Stickiness refers to the tendency to hold onto current aspirations despite evidence that they may not be optimal.

Question 20

Starbucks' reinvention included innovation of new products and adapting to local community values.

Accepted Answer

Starbucks has focused on innovation and adapting to local community values as part of its reinvention strategy. For example, it has introduced new products such as cold brew coffee and food items, and has incorporated local flavors in its menu offerings in different countries.

Quiz 14: Organizational Change and Development