Deck 10: Organizational Change and Innovation: Lifelong Challenges

Question 1

An example of innovative change is a department store deciding to adopt a new practice used by competitors by staying open 24 hours a day and requiring employees to work flexible schedules, a change that employees are likely to see as moderately threatening.

Answer 1

True
Explanation: Innovative change is the introduction of a practice that is new to the organization. This form of change involves moderate complexity, cost, and uncertainty. It is therefore apt to trigger some fear and resistance among employees.

Question 2

Which of the following is an inside force for change?

A) domestic competition
B) recession
C) advancements in automation
D) immigration
E) low productivity and turnover

Answer 2

E

Question 3

Walmart's implementation of RFID, a type of technology that allows it to improve inventory tracking, is an example of a(n) ________ change because Walmart already had a very effective technology tracking system in place before it implemented RFID.

A) reactive
B) incremental
C) cultural
D) responsive
E) proactive

Answer 3

E
Explanation: Proactive change or planned change involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities, as in Walmart' use of RFID. Walmart's existing inventory tracking system was already effective; by improving the system, Walmart engaged in proactive change.

Question 4

During annual inventory week, a department store may ask its employees to work 12 hours a day instead of the usual 8. During tax-preparation time, the store's accounting department may work similar hours. Although accounting employees are in a different department from stockroom and sales employees, it's reasonable to expect that the accounting employees wouldn't be terribly upset by the temporary change in hours because they've seen it in effect elsewhere in the store. This is an example of innovative change.

Question 5

Adaptive change is the least threatening type of change and is therefore least likely to create resistance.

Question 6

Reactive change involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities.

Question 7

Procter & Gamble modified a liquid detergent to make it available as a concentrated powder in a pouch. P&G's new product is an example of an improvement innovation.

Question 8

B corporations are ones whose stocks are NOT listed on NASDAQ or as part of the Dow Jones Industrial Average.

Question 9

________ change is made in response to arising problems or opportunities. BP's response to an explosion on a drilling platform in the Gulf of Mexico is an example of this kind of change.

A) Radical
B) Incremental
C) Proactive
D) Reactive
E) Process

Question 10

Walt Disney Company's investment of $1 billion into a wearable technology that it hopes will revolutionize the way visitors spend money at Walt Disney World, featuring a website ("My Disney Experience") and data-collecting wristbands ("MagicBands") that interact with scanners throughout the 40-square-mile theme park, is an example of proactive change.

Question 11

Crowdsourcing is an example of innovation.

Question 12

Which of the following is an example of a proactive change?

A) Mirabel's staff is unhappy about the long hours they have been working and several of them quit before she knows there is a problem.
B) Mirabel's group sends a product that is nearing its launch date back to the drawing board based on a competitor's superior new offering.
C) Mirabel cannot get permission to hire another person until her group misses several deadlines.
D) Mirabel is constantly "putting out fires," responding to daily crises in her group.
E) Mirabel explores improvements in bonus structures with her staff and begins to implement them despite the fact that her employees are generally content.

Question 13

The invention of a machine to make plastic corks for wine bottles has severely affected companies that produce traditional cork. The invention of the machine for making plastic corks is an example of a(n) ________ advancement.

A) market
B) social and political
C) technological
D) demographical
E) economic

Question 14

Which of the following is an example of a force for change originating outside the organization?

A) productivity issues
B) conflict management
C) structural reorganization
D) social and political pressures
E) absenteeism

Question 15

The increasing diversity of the American workforce, and the fact that people aged 18-34 are more likely to be living with their parents than with a spouse or partner, are both examples of a(n) ________ force for change.

A) market
B) demographic
C) social and political
D) political
E) economic

Question 16

Corporate restructurings threaten to eliminate jobs and generally trigger strong resistance.

Question 17

Which of the following is NOT an inside force that indicates organizational change might be needed?

A) high turnover
B) excessive conflict between managers and employees
C) increased competition
D) high levels of stress among employees
E) job dissatisfaction

Question 18

In the Internet Age, retailers like Amazon and Apple are not constrained by physical shelf space and can offer consumers a much wider variety of products; yet small sales, one or two rather than millions of items at a time, can produce big profits. This development is an example of

A) the marketplace becoming more segmented and moving toward more niche products.
B) declining population in developed countries.
C) China becoming the second-largest economic power.
D) the rise of business-to-business technology.
E) instant-gratification shopping.

Question 19

The marketplace is becoming less homogeneous and moving toward more niche products.

Question 20

Which of the following is NOT a supertrend shaping the future of business?

A) more niche products
B) information becoming a competitive advantage
C) traditional companies struggling with radically innovative change
D) offshore suppliers affecting U.S. business
E) faster speed-to-market

Question 21

A(n) ________ change involves introducing a practice that is new to the industry, such as using drones (rather than delivery trucks) to deliver products to customers.

A) revolutionary
B) adaptive
C) radically innovative
D) reactive
E) innovative

Question 22

Employees are likely to see an adaptive change as

A) highly threatening.
B) moderately threatening.
C) least threatening.
D) significantly complex, costly, and uncertain.
E) totally unacceptable.

Question 23

Studies exploring nurses' perceptions about using PDAs in their daily patient practice found initial resistance, with some nurses concerned about the cost and short technological life cycle of these devices. As part of the ________ stage of change, the nurses' managers try to instill in them the motivation to change, encouraging them to let go of attitudes and behaviors that are resistant to innovation.

A) unfreezing
B) freezing
C) change
D) refreezing
E) thawing

Question 24

Merchants Credit Union has decided that tellers must rotate through a new weekend shift on Saturday afternoons because several of its financial competitors have recently begun to offer additional hours to customers. Merchants Credit Union is implementing a(n) ________ change.

A) radically innovative
B) reactive
C) adaptive
D) proactive
E) innovative

Question 25

Lewin's change model consists of

A) three stages: unfreezing, changing, and refreezing.
B) three forces: employee characteristics, change agent characteristics, and change agent-employee relationships.
C) four steps: recognize problems, gain allies, overcome resistance, and execute.
D) three types: adaptive, innovative, and radically innovative.
E) three steps: diagnosis, intervention, and evaluation.

Question 26

As owner and senior accountant at a tax preparation firm, Ben is changing the work schedule of all employees, including managers and accountants, for the months of March and April, the company's busiest time. He is requiring everyone to work on weekends, just as he has during the tax-preparation season for the last ten years. How does Ben predict the employees will react?

A) They will be terribly upset and will quit.
B) They will be moderately upset but not be willing to quit.
C) They will be moderately upset and complain.
D) They will hardly be upset or not be upset at all.
E) They will be terribly upset but not quit.

Question 27

The human resource manager at Creative Minds Inc. has just calculated that the employee absenteeism rate for 2017 is 18 percent higher than it was in 2016, and the turnover rate increased 20 percent over the same time period. Which of the following is NOT an option she should consider for improving the situation?

A) Wait until 2018 and see what the turnover rate is at the end of that year.
B) Deal with employees' possible work overloads.
C) Identify causes of job dissatisfaction.
D) Address and adjust job design.
E) Identify possible employee role conflicts.

Question 28

Which of the following is NOT a leading reason that employees resist change?

A) individual predisposition toward change
B) lack of personal ethics
C) fear of failure
D) climate of mistrust
E) non-reinforcing reward systems

Question 29

Which of the following is NOT a factor that affects the level of resistance to change?

A) the gender of the change agent
B) employee characteristics and perceptions of change
C) the change agent's leadership style
D) change agent-employee relationship
E) the change agent's ability to empathize with the employee's perspective

Question 30

An innovative change involves ________ complexity, cost, and uncertainty.

A) no
B) minimum
C) hidden
D) moderate
E) extreme

Question 31

South Beach Insurance is about to begin using a program that will change the way its adjusters settle insurance claims. Adjusters will be able to complete an adjustment and issue a check right at the scene of the accident. Although employees are uncertain that the new system will work, other insurance agencies have been successful with this approach. At South Beach Insurance, the new program represents ________ change.

A) motivated
B) innovative
C) adaptive
D) radically innovative
E) refusal to

Question 32

Firms such as Patagonia and Seventh Generation actively collect information about customer preferences and try to address them in their new products. Patagonia and Seventh Generation are actively trying to adapt to

A) shareholder, customer, and market changes.
B) social and political pressures.
C) human resource concerns.
D) managers' behavior.
E) technological advancements.

Question 33

At Toys and Games, employees know that during the December shopping season they are often required to work different schedules, weekends, and overtime. The December work schedules at Toys and Games is an example of a(n) ________ change because workers have experienced it in the past. (They experience it every December.)

A) reactive
B) adaptive
C) innovative
D) incremental
E) radically innovative

Question 34

Fresh and Clean, Inc. is considering implementing a system that will pay its cleaning workers based on the number of completed residential jobs, coupled with satisfactory ratings on random inspections to ensure quality. This system is new to the organization, and it is an example of ________ change.

A) adaptive
B) innovative
C) familiar
D) radically innovative
E) highly complex

Question 35

________ change introduces a new practice to an organization but one that is not new to the industry.

A) Proactive
B) Adaptive
C) Innovative
D) Reactive
E) Radically innovative

Question 36

Lexie, a new manager, must enforce sales report deadlines, but her team is struggling. She creates a new system to streamline the process and helps everyone understand why the deadlines are important. On which of the following internal forces is Lexie trying to have an impact?

A) demographic characteristics
B) shareholder, customer, and market changes
C) manager's behavior
D) human resource concerns
E) social and political pressures

Question 37

Deliver Fast's customer complaints have increased because its drivers often get lost when attempting deliveries, which means that the deliveries arrived late. The drivers have resisted using GPS systems, claiming they know their territories. But managers are now encouraging them to look for the best solution to the increased level of customer complaints. Deliver Fast is in the ________ stage of Lewin's change model.

A) changing
B) unfreezing
C) evaluation
D) learning
E) refreezing

Question 38

The two cofounders of Impact Technology, a data-storage firm in Research Triangle Park, North Carolina, were feuding with each other because one founder couldn't stick to his decisions, which drove the other founder crazy. Who should work with the warring executives in separate sessions to solve the problem?

A) organizational behavior specialist
B) family doctor
C) informational technologist
D) acquisition consultant
E) labor relations specialist

Question 39

________ is an emotional/behavioral response to real or imagined threats to an established work routine.

A) Change agency
B) Benchmarking
C) OD intervention
D) Radical innovation
E) Resistance to change

Question 40

Beam Satellite Network has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require the company to have several technicians on call. Beam hopes this practice will give it an advantage over the competition, none of which have adopted such a practice. Beam Satellite Network is introducing a(n) ________ change.

A) reactive
B) innovative
C) radically innovative
D) adaptive
E) active

Question 41

When it comes to learning from failure in the innovation process, Pixar President Ed Catmull said,

A) "Work within a competent team so that blame is spread around among strong players."
B) "Look for innovation in small increments, so that failure risks are small."
C) "Mistakes are inevitable consequence of doing something new and should be seen as valuable."
D) "Develop a tolerance for ambiguity so that failure does not personally upset you."
E) "Avoid it by almost any means necessary because it will irreparably harm your reputation."

Question 42

As an OD consultant, Mika is designing a survey of employee attitudes to be given to workers at Hope Urgent Care, a provider of emergency-care services in a low-income neighborhood. In collecting this information, Mika is conducting the ________ stage of OD.

A) unfreezing
B) intervention
C) evaluation
D) diagnosis
E) refreezing

Question 43

Lamar, an OD consultant, is working with members of a cross-functional team to build cohesiveness and practice skills so the team can function better. He has observed them working together to solve problems and he has shared the latest customer survey results with them. Lamar is conducting the ________ stage of the OD process.

A) feedback
B) diagnosis
C) evaluation
D) changing
E) treatment, or intervention

Question 44

Which example best describes the benefits of OD?

A) OD increases efficiency among employees in a firm.
B) OD helps employees from two similar organizations work better together in a strategic alliance.
C) OD is used with employees dealing with stress that comes from revitalizing an organization or adapting to a merger.
D) OD aids in facilitating discussions of ethical issues in preparing a company's code of ethics.
E) OD works with the CEO to determine how to increase profitability.

Question 45

A year after she assisted Interior Heating and Lighting in making changes to an employee incentive plan, Coral, an OD consultant, is visiting the company to determine if the changes were helpful. Coral will compare sales and turnover data from the last three years to the current year. Coral is in the ________ stage of the OD process.

A) refreezing
B) intervention
C) diagnosis
D) evaluation
E) adaptation

Question 46

Which of the following is NOT one of the primary uses of OD?

A) adapting to a merger
B) improving recruitment
C) managing conflict
D) revitalizing an organization
E) adapting to an acquisition

Question 47

A managerial innovation that improves the efficiency of a company's cross-functional teams would be considered a ________ innovation.

A) product
B) process
C) core
D) transformational
E) practical

Question 48

A technological innovation that improves the performance and speed of a computer's operating system would be considered a(n) ________ innovation.

A) adaptive
B) transformational
C) personnel
D) product
E) process

Question 49

"What shall we do about the problem?" is the question that would most likely be asked during the ________ stage of OD.

A) changing
B) diagnosis
C) feedback
D) treatment or intervention
E) evaluation

Question 50

The business management department at a local university began posting all assignments and other class materials to a learning management course website instead of creating a packet or printed materials for students to purchase each term. The business management department is implementing a ________ innovation.

A) process
B) product
C) policy
D) breakthrough
E) reactive

Question 51

During Lewin's changing stage, managers should

A) reduce the barriers to change.
B) make employees dissatisfied with the present situation.
C) reinforce the desired change.
D) give employees new information, perspectives, and models for behavior.
E) encourage employees to exhibit the new change.

Question 52

________ is the set of techniques used for implementing planned change to make people and organizations more effective.

A) Corporate transformation
B) Organizational development
C) Revitalization
D) Continuous improvement
E) Incremental innovation

Question 53

After Dottie's Gifts and Cards surveyed its customers, it discovered that its customers preferred the company's competition more than 75 percent of the time. The most frequently cited reason was customer service. During which stage of Lewin's change model should Dottie provide her employees with this information about the problems with customer service?

A) stabilizing
B) continuous improvement
C) unfreezing
D) changing
E) refreezing

Question 54

Which of the following jobs are LEAST likely to be taken over by automation?

A) knowledge work jobs
B) bookkeeping jobs
C) clerical jobs
D) assembly-line jobs
E) jobs that require unskilled labor

Question 55

Salon Products recently introduced a new all-natural shampoo. Logan, director of new product development, has just reviewed the dismal results. As it appears that his team adequately researched the product's acceptance by consumers prior to its introduction, he is confused by the outcome. But to keep his team open to innovation, Logan should

A) step down as director.
B) fire and replace the team lead as an example to others.
C) foster an innovative culture and climate that permits experimentation, risk taking, and failure.
D) ignore the product failure.
E) demote the team leader.

Question 56

A(n) ________ innovation is a change in the way a product or service is conceived, manufactured, or disseminated.

A) procedural
B) process
C) product
D) transformational
E) adaptive

Question 57

During Lewin's refreezing stage, managers should

A) make employees dissatisfied with the present way of doing things.
B) give employees the tools for change.
C) provide benchmarking results.
D) encourage and reinforce the desired change in the employees.
E) reduce the barriers to change.

Question 58

Which of the following circumstances is less unlikely to increase the success of OD?

A) consideration of cross-cultural differences
B) single intervention
C) management support
D) goals geared to short-term results
E) goals geared to long-term results

Question 59

A ________ often puts organizational development into practice.

A) transformative consultant
B) catalytic consultant
C) counselor
D) change agent
E) training specialist

Question 60

Which of the following is NOT a way to encourage and foster innovation?

A) being responsive to change
B) motivating individuals
C) emphasizing processes and tools
D) testing prototypes
E) collaborating with customers

Question 61

At what point during the innovation system process would management invest resources in innovation and generate employee commitment to innovation?

A) as part of the creation of the innovation strategy
B) as part of the commitment for senior leaders
C) as part of fostering an innovative culture and climate
D) as part of identifying appropriate resources
E) as part of developing necessary human capital

Question 62

________ refers to customers becoming segmented into smaller and more specialized groups responding to more narrowly targeted commercial messages.

A) Crowdsourcing
B) Disruptive innovation
C) Force-field analysis
D) Demassification
E) Change agent

Question 63

Fran's Crazy Salts has just been bought by Allspice. Employees are unsure of what that will mean for their jobs, as Allspice already has a competent workforce. As a result, many employees have started to call out sick and have begun to look for other jobs. Fran's Crazy Salts should use a change agent to address

A) managing conflict.
B) revitalizing the organization.
C) adapting to mergers.
D) collecting feedback.
E) evaluating the intervention.

Question 64

Diego has been hired as a consultant to review a company's contracting and purchasing procedures. He began by reviewing recent contracts that were awarded and ones that the company lost. He also interviewed employees in both units to ascertain if there were any concerns regarding process, work flows, communication, and expectations. Diego learned that the company had a reward system in place for the number of contracts awarded and bonuses for higher amount contracts. Diego recommended a new system that rewarded contracts that benefitted the company's mission, regardless of financial amount. How was Diego applying the systems model of change?

A) as a method to identify positive and negative forces
B) as a comparison tool for feedback
C) as an aid during the strategic planning process
D) as a diagnostic framework
E) as a lever for change

Question 65

A press conference was held and a new commissioner was announced by the governor. The acting commissioner was not aware of the change and was not able to make an announcement to staff prior to the press conference. The rumor mill started as soon as the press conference ended that the agency was being dismantled and all the employees would be laid off. Was this a reasonable response to the change?

A) Yes, because there was a climate of mistrust.
B) Yes, because there was surprise and fear of the unknown.
C) No, because there was a fear of failure.
D) No, because, there was a history of disruption of group relationships.
E) Yes, because there was a lack of a reward system.

Question 66

Which of the following is an effective way to deal with change and innovation?

A) Insist on success and punish failure.
B) Offer different explanations for the change to different work groups.
C) Hold closely to established methods of getting the job done.
D) Innovate by varying existing products that are already on the market.
E) Have flexibility and adaptability.

Question 67

In organizational development, what type of interventions is NOT recommended for use?

A) multiple interventions
B) single interventions
C) combined interventions
D) cross-cultural interventions
E) goal-setting interventions

Question 68

Social media (LinkedIn, Facebook) can make the search for new employees more efficient. The rise of social media is an example of a(n) ________ advancement or force.

A) technological
B) social or political
C) market
D) inside
E) demographic

Question 69

How are offshore suppliers changing the way U.S. companies work?

A) Other countries can market the products and build a consumer base faster than in the United States.
B) Other countries can produce products with less governmental oversight, so it is cheaper.
C) Other countries have employees willing to work twice as hard for half the pay.
D) Import tariffs are still cheaper than a U.S. payroll.
E) Education in foreign companies exceeds that of the United States, so product development is further ahead.

Question 70

How do you know if a company fosters an innovative culture and climate?

A) It has a set of dependent processes and structures for how the company designs solutions.
B) It allows for experimentation, failure, and risk taking.
C) It focuses only on producing the products that have made it successful.
D) It seeks feedback from a small think tank of individuals who have a pulse on consumers.
E) It uses change agents to broker disagreements between management and innovators.

Question 71

Despite the increase of automation, which jobs are on the rise?

A) knowledge work jobs
B) bookkeeping jobs
C) clerical jobs
D) assembly-line jobs
E) jobs that require unskilled labor

Question 72

Krystal works in the cosmetic industry. She is tasked with creating new perfumes, colognes, and lipstick colors annually. Her daughter has asked her to come to her school and present at career day, as she thinks what her mom does is cool and fun. How will Krystal describe what her mom does?

A) Krystal will say she is an organizational developer.
B) Krystal will say she is a treatment developer.
C) Krystal will say she is a product innovator.
D) Krystal will say she is a process innovator.
E) Krystal will say she is an improvement innovator.

Question 73

Suppose a soft-drink company, Soda Pops, is conducting a force-field analysis to determine which forces could facilitate a proposed change (the introduction of a new black cherry soda) and which forces could act against it. Which of the following would Soda Pops consider a counterthruster?

A) Market research indicates that noncaffeinated, dark (black cherry) sodas are increasing in popularity.
B) Soda Pops' Facebook pages have more than 4.5 million likes.
C) Soda Pops has never been able to gain any significant market share outside of the Northwest.
D) In unbiased surveys, college students often say that Soda Pops manufactures their favorite soft drinks.
E) Soda Pops is a favorite among the Baby Boomer generation.

Question 74

Keurig created a new category of coffee/tea preparation by offering one-cup-at-a-time pod-style brewing with its "K-cups." Keurig's product is an example of a(n) ________ innovation.

A) technology
B) product
C) process
D) improvement
E) new-direction

Question 75

Which of the following factors increases an organization's ability to innovate?

A) employees who build relationships with their peers
B) employees who blame others for failure
C) employees with a strong desire to acquire personal wealth
D) employees who possess intrinsic motivation
E) employees with a high tolerance for ambiguity

Question 76

Which of the following statements is true about the effectiveness of OD?

A) Managers should engage in organizational change for the sake of change to keep ideas fresh.
B) Change programs are more successful when they are oriented toward achieving quick short-term results only.
C) Change efforts should produce positive results, using multiple interventions, supported by management.
D) Single interventions are more focused and produce better results.
E) OD is more likely to succeed when top managers get out of the way and let middle-level managers lead the process.

Question 77

According to the systems model of change, which of the following is NOT an input?

A) the organization's mission statement
B) the organization's vision statement
C) the organization's products or services
D) the organization's strategic plan
E) an analysis of the organization's readiness for change

Question 78

What does a manager who is desiring change NOT have control over?

A) people
B) job design
C) change agents
D) communication and leadership
E) policies and procedures

Question 79

Which of the following is NOT a component of an innovation system?

A) leadership
B) human capital
C) policies, practices, and procedures
D) structure and processes
E) philanthropic strategies

Question 80

________ is the process by which a company determines if the intervention made a positive or negative difference.

A) Reference innovation
B) Evaluation
C) Feedback
D) Diagnosis
E) Radical innovation