Deck 16: Managing Organizational Change: Strategic Planning and Organizational Development

Question 1

Gates, Inc., a producer of automated gates for companies and is now competing against an Australian firm offering similar quality at a better price with better service. Gates quickly adds more service technicians and drops prices 5%. This is an example of ________ forcing unplanned change.

A) advances in technology
B) shifting employee demographics
C) government regulation
D) global economic competition

Answer 1

D

Question 2

An organization that experiences continuous but incremental change is experiencing:

A) second-order change.
B) first-order change.
C) normal organizational growth.
D) learning.

Answer 2

B

Question 3

Some of the most common forms of unplanned change stem from ________.

A) the introduction of new technology.
B) responses to new government regulation.
C) more economic competition.
D) adjustments to the size and structure of the organization.

Answer 3

B

Question 4

When a manager introduces the idea that change is necessary by suggesting that an impending crisis is likely, he/she is using an approach called:

A) unfreezing.
B) doomsday management.
C) first-order change.
D) second-order change.

Question 5

If an organization felt the key to efficiency was to reduce the number of departments and increase spans of control, the organization would be targeting:

A) organizational structure.
B) people.
C) technology.
D) products or services.

Question 6

Today's business analysts claim that the business environment is experiencing:

A) organizational fragmentation, breaking large companies into small entities.
B) another industrial revolution.
C) cultural transformation.
D) first-order change.

Question 7

When a company alters reporting relationships and the division of labor among departments it is changing:

A) organizational structure.
B) an organization's technology.
C) the company's product line.
D) transformation processes.

Question 8

________ is the process of formulating, implementing, and evaluating decisions that enable an organization to achieve its objectives.

A) Strategic planning
B) Doomsday management
C) Top-down management
D) Competitive global expansion

Question 9

An organization is restructuring its sales division because it has consistently not met its goals. This is an example of unplanned change due to:

A) economic competition.
B) government regulation.
C) performance gaps.
D) changes in administrative services.

Question 10

The concepts of unfreezing, changing, and refreezing are part of:

A) changes in organizational structure.
B) changes in technology.
C) changes in management.
D) changes in people.

Question 11

Strategic planning is based on three key assumptions including:

A) firms often do not have sufficient internal human resources to adequately do strategic planning.
B) that it is a deliberate process of conscious decision-making.
C) that it is best done to build on success rather than correct problems.
D) technology is the key to the future for any business.

Question 12

An organization that is experiencing planned or unplanned transformations in its structure, technology, and/or people is experiencing:

A) organizational change.
B) organizational cultural change.
C) the development of a competitive strategy.
D) first-order change.

Question 13

Catacombs, Inc. is seeing radical change at different levels of the organization and in its business functions. Catacombs, Inc. is experiencing:

A) second-order change.
B) first-order change.
C) unplanned change.
D) learning.

Question 14

The targets for organizational change include all of the following except ________.

A) people
B) technology
C) marketplace competition
D) organizational structure

Question 15

The Internet is in a constant state of change. The availability of a free open-source suite of applications software from Google, Sun Microsystems, and more has pushed Microsoft to introduce its free Microsoft Web Apps. This is an example of ________ driving unplanned change in Microsoft's operations.

A) advances in technology
B) shifting employee demographics
C) government regulations
D) global economic competition

Question 16

Jennifer thinks that her company needs to rethink how they market their product because they are not selling as projected. This represents the basic assumption of strategic planning that:

A) existing objectives require new strategic plans to continue.
B) it is an intuitive decision-making process.
C) it is best done to build on success rather than correct problems.
D) it occurs when current objectives are no longer being met.

Question 17

A firm wants to improve productivity and efficiency of work tasks. They should target changing:

A) the organization's structure.
B) their people.
C) the technology used.
D) their management structure.

Question 18

Which of the following is an example of changing organizational technology?

A) Training people to accept new ways of operating
B) Centralizing decision-making
C) Substituting e-mail for paper memos
D) Reducing layers in the organizational hierarchy

Question 19

Only ________ percent of new ventures last as long as 50 years.

A) 2
B) 5
C) 12
D) 20

Question 20

The process of recognizing that the current state of affairs is undesirable and is in need of change is referred to as:

A) defining the problem.
B) planning the problem.
C) unfreezing.
D) realization.

Question 21

Joe is thinking through the company's market and its financial standing. Joe is in the ________ stage of strategic planning.

A) defining goals
B) defining the scope of the product/service
C) assessing internal resources
D) analyzing internal arrangements

Question 22

When people resist change because of their bonds with co-workers, you are facing resistance based on:

A) threats to social relationships.
B) economic insecurity.
C) habit.
D) demographic background.

Question 23

In strategic planning, when the planners are considering their finances, physical assets, human assets etc., they are at the ________ step in the planning process.

A) assessing external resources
B) analyzing internal arrangements
C) assessing internal resources
D) defining goals

Question 24

John is working at overcoming some resistance to organizational change. He has talked the CEO into telling the managers that this is an important change and he's supporting it. John has used which technique for overcoming resistance?

A) Rewarding constructive behavior
B) Educating the workforce
C) Involving employees in the change effort
D) Gaining leadership support

Question 25

The practice of eliminating parts of organizations that focus on noncore sectors of the business and hiring outside forms to perform these functions instead is called:

A) work restructuring.
B) rightsizing.
C) reducing.
D) outsourcing.

Question 26

Gary and Betty are studying their competition and considering their competitive advantages. According to the strategic planning process, they are ________.

A) communicating their strategy
B) defining corporate goals
C) developing a competitive strategy
D) assessing the external environment

Question 27

The strategic planning process ends with:

A) evaluation.
B) communication.
C) implementation.
D) integration.

Question 28

In strategic planning, if a company decides to withdraw from some markets in order to put more resources into other markets it is choosing a(n) ________ strategy.

A) market concentration
B) market-share increasing
C) profit
D) exit

Question 29

When strategic planners consider a company's funds, physical assets, and human resources, they are ________.

A) assessing internal resources
B) analyzing internal arrangements
C) developing a competitive strategy
D) defining the scope of our products and services

Question 30

Once a strategy has been developed in strategic planning it must be:

A) implemented.
B) communicated.
C) evaluated.
D) integrated.

Question 31

Which of the following is an organizational barrier to change?

A) Economic insecurity
B) Work group inertia
C) Second-order resistance
D) Fear of the unknown

Question 32

Attempting to derive more profits from existing business is a:

A) market concentration strategy.
B) market-share increasing strategy.
C) profit strategy.
D) turnaround strategy.

Question 33

A firm in the strategic planning process is answering the question, "What business are we operating in?" This represents the ________ step in strategic planning.

A) defining goals
B) defining the scope of the product/service
C) assessing internal resources
D) developing a competitive strategy

Question 34

Teddy, Inc., a teddy bear manufacturer, is conducting strategic planning because of declining sales. They are thinking about adding new products and/or radically restructuring the business to deal with the decline. This is an example of a:

A) market concentration strategy.
B) market-share increasing strategy.
C) profit strategy.
D) turnaround strategy.

Question 35

The U.S. differs from other countries in terms of strategic values. In Japan, for example:

A) radical change is encouraged, not resisted.
B) stockholders have priority when considering the impact of change.
C) while done, competition is rarely talked about or expressed in strategic plans.
D) women hold more positions of authority, especially at the level of CEO.

Question 36

Employees resist change when they derive a sense of security from doing things the same way, knowing who their co-workers are, and who their bosses are. This resistance is from:

A) threats to social relationships.
B) locus of control.
C) the fear of the unknown.
D) economic insecurity.

Question 37

Strategic planners must answer the question of "How can we make our products superior to our competitors?" when they are ________.

A) implementing strategy
B) assessing the external environment
C) assessing competitive advantage
D) communicating the strategy to stockholders

Question 38

In situations where information is lacking or inaccurate, ________ can overcome resistance to change.

A) imposing the required changes
B) negotiating an agreement about other aspects of work
C) involving employees in the process of making change
D) educating employees and communicating with them

Question 39

Strategic planning begins with:

A) defining the scope of the products or services offered.
B) identifying key markets.
C) defining goals.
D) conducting consumer target market research.

Question 40

The desire to continue to perform jobs in a specific way that comes from the jobs themselves and from social pressure surrounding the jobs is:

A) work group inertia.
B) threats to social relationships.
C) habit.
D) structural inertia.

Question 41

In situations in which employees are concerned about losses resulting from change, the resistance would best be overcome by:

A) educating employees and communicating with them.
B) involving employees in the process of making the change.
C) negotiating an agreement about other aspects of work.
D) imposing the required changes.

Question 42

One way to facilitate change and reduce employee resistance is to:

A) bring in outside management to implement the change.
B) coerce or force employee compliance with the change.
C) punish any resistance to the change.
D) reward constructive behaviors.

Question 43

An organizational development technique by which managers and their subordinates work together to set and meet organizational goals is called:

A) team building.
B) quality of work life.
C) management by objectives.
D) grid training.

Question 44

An OD intervention that focuses attention away from an organization's shortcomings and toward its capabilities and potential is called:

A) competitive intelligence.
B) appreciate inquiry.
C) Action Lab.
D) Management by Objectives.

Question 45

People who participate in making decisions tend to be:

A) more resistant to change.
B) more committed to the decision.
C) much quicker to make the decision than an individual.
D) less committed to the decision.

Question 46

Organizations like Royal Dutch Shell and the U.S. Army have gone through major change efforts and learned several things that helped facilitate their changes, including:

A) keep the change effort at top management level to avoid employee resistance.
B) calm people by explaining the status quo is okay, we're just making incremental improvements.
C) create an urgency for the change by setting challenging goals or straightforward communication.
D) explaining how the executives are also suffering and feel the pain of the employees.

Question 47

The stage of appreciative inquiry that includes having a dialogue in which participants discuss their ideas about "what should be" is called:

A) discussing.
B) designing.
C) dreaming.
D) debating.

Question 48

An organization that focuses on doing whatever it takes to adapt to changing conditions by acquiring, cultivating, and applying knowledge, the organization is:

A) involved in second-order change.
B) involved in first-order change.
C) caught in unplanned change.
D) a learning organization.

Question 49

The four steps involved in the process of appreciative inquiry are:

A) defining, discussing, developing, and deploring.
B) defining, deducing, deploring, and delivering.
C) discovering, dreaming, designing, and delivering.
D) discovering, debating, deciding, and delegating.

Question 50

Imagine a group of volunteers who meet regularly to solve problems related to the quality of people's work and the conditions under which people perform their jobs. Such a group would be referred to as a:

A) team-building group.
B) sensitivity training group.
C) work team.
D) quality circle.

Question 51

The benefits of a QWL program, include:

A) improved job satisfaction.
B) increased organizational commitment.
C) reduced turnover.
D) All of the above.

Question 52

Which of the following approaches to organizational development focuses on improving organizational functioning by humanizing the workplace?

A) Team building
B) Quality of work life
C) Management by objectives
D) Grid training

Question 53

The MBO process begins with:

A) subordinates and supervisors meeting to discuss goals.
B) problem recognition and diagnosis.
C) data gathering.
D) evaluation.

Question 54

The organizational development technique that helps employees understand the organization's current strengths and weaknesses is:

A) team building.
B) quality of work life programs.
C) survey feedback.
D) management by objectives.

Question 55

An MBO program:

A) is a quick way to help an organization improve employee job satisfaction.
B) requires anywhere from three-to-five years to make it work.
C) offers primary benefits to employees and secondary benefits to the organization.
D) requires extensive top-management involvement, but little involvement of lower-level managers and employees.

Question 56

When Royal Dutch Shell brought its managers together to discuss the problem of encroaching competition in order to plan a response, Shell was ________ in order to bring about organizational change.

A) fully incorporating employees in change efforts
B) developing a cognitive oriented organization
C) creating a sense of urgency and importance
D) generating discomfort with the status quo

Question 57

A CEO wants an effective, quick, flexible, cost-effective way to affect organizational development. The best choice would be:

A) team building.
B) quality of work life programs.
C) management by objectives.
D) survey feedback.

Question 58

The use of "after action reviews" by the Army is a technique for:

A) fully incorporating employees in change efforts.
B) developing a cognitive oriented organization.
C) creating a sense of urgency and importance.
D) generating discomfort with the status quo.

Question 59

For a company to become a learning organization, management needs to ________.

A) establish a commitment to change
B) hire additional supervisors
C) upgrade computer technology
D) hire well-educated staff members

Question 60

________ is a set of social science techniques designed to plan and implement change in work settings for the purpose of enhancing both personal and organizational effectiveness.

A) Organizational change
B) Organizational development
C) A quality of work life program
D) First-order change

Question 61

When a company changes reporting relationships and reshapes work units, it is making structural changes.

Question 62

OD interventions tend to be more effective:

A) when used without interference from other techniques.
B) without the support of top management.
C) with blue-collar workers than with white collar workers.
D) with managers rather than the front-line workforce.

Question 63

Table 16.1
Todd's restaurant is changing from a fast food menu and walk-through service to simple, quickly prepared meals eaten in the restaurant or along the sidewalk. This change was brought on by the losses he is experiencing due to decreased demand for fast food. In order to make the changes as effective as possible and to avoid having to react in the future, Todd is talking to his employees about their ideas on the changes and what the future might hold. He wants employees to try some new things, tell him what's working and what's not working, and help the company grow.
Refer to Table 16.1. What technique did Todd use to overcome resistance to change?

A) launching a "trial balloon"
B) negotiating with those who are resistant to change
C) involving employees in the change effort
D) gaining leadership support

Question 64

Table 16.2
Loading Dock One, an international products retailer, is going through organizational change. The entrance of several low cost retailers into their market of quality international gifts is forcing them to seek greater efficiencies so they can lower costs and prices. Unfortunately, their employees are resisting the changes. They understand competition is increasing, but they fear the changes will eliminate jobs or diminish the variety of their work. Not only are the employees resisting, but it seems that the way LDO has hired, trained, and rewarded employees also hinders the changes they want to make. Some managers also are resisting the change because they can see their staffs being reduced or their entire work units eliminated.
Refer to Table 16.2. Loading Dock One (LDO) is facing change due to:

A) government regulation.
B) a performance gap.
C) global economic competition.
D) the introduction of new technology.

Question 65

Global competition and technology are two forces driving unplanned change in organizations.

Question 66

Table 16.1
Todd's restaurant is changing from a fast food menu and walk-through service to simple, quickly prepared meals eaten in the restaurant or along the sidewalk. This change was brought on by the losses he is experiencing due to decreased demand for fast food. In order to make the changes as effective as possible and to avoid having to react in the future, Todd is talking to his employees about their ideas on the changes and what the future might hold. He wants employees to try some new things, tell him what's working and what's not working, and help the company grow.
Refer to Table 16.1. The change effort Todd is taking was stimulated by:

A) government regulations.
B) shifting employee demographics.
C) not being able to meet current objectives.
D) advances in technology.

Question 67

Table 16.3
As an organizational development consultant, you are discussing the various OD techniques the CEO could choose from in bringing about change in her company. You suggest that she begin the process with a quick, inexpensive data gathering from the employees. She likes the idea, especially since the technique you recommend allows them to also receive information. Once you have the data, you suggest she go for a program that helps her managers work together more effectively. You suggest that small groups of managers meet on a regular basis to identify and discuss problems in the workplace. The CEO says this all sounds good, but wants to know how to improve organizational and individual goal setting and accomplishment. She wants a way to plan and implement strategic change for the organization, not get lost in a number of individual programs. You conclude the meeting by talking about employee job satisfaction and asking what her thoughts are on it. She says that it is relatively high, and while important, it can wait to be addressed until these other issues are dealt with.
Refer to Table 16.3. The CEO's concerns about an overall program would be best met by:

A) team building.
B) quality of work life initiatives.
C) survey feedback.
D) management by objectives.

Question 68

Table 16.3
As an organizational development consultant, you are discussing the various OD techniques the CEO could choose from in bringing about change in her company. You suggest that she begin the process with a quick, inexpensive data gathering from the employees. She likes the idea, especially since the technique you recommend allows them to also receive information. Once you have the data, you suggest she go for a program that helps her managers work together more effectively. You suggest that small groups of managers meet on a regular basis to identify and discuss problems in the workplace. The CEO says this all sounds good, but wants to know how to improve organizational and individual goal setting and accomplishment. She wants a way to plan and implement strategic change for the organization, not get lost in a number of individual programs. You conclude the meeting by talking about employee job satisfaction and asking what her thoughts are on it. She says that it is relatively high, and while important, it can wait to be addressed until these other issues are dealt with.
Refer to Table 16.3. The type of OD intervention the CEO did not want to consider at this point was:

A) team building.
B) quality of work life.
C) survey feedback.
D) management by objectives.

Question 69

The ethical use of organizational development techniques requires:

A) the concealment of OD motives from those involved.
B) a strong ethical culture and oversight by ethical professionals.
C) oversight by union officials.
D) quality circles and coffee-klatch time.

Question 70

Table 16.2
Loading Dock One, an international products retailer, is going through organizational change. The entrance of several low cost retailers into their market of quality international gifts is forcing them to seek greater efficiencies so they can lower costs and prices. Unfortunately, their employees are resisting the changes. They understand competition is increasing, but they fear the changes will eliminate jobs or diminish the variety of their work. Not only are the employees resisting, but it seems that the way LDO has hired, trained, and rewarded employees also hinders the changes they want to make. Some managers also are resisting the change because they can see their staffs being reduced or their entire work units eliminated.
Refer to Table 16.2. The managers' issues are examples of:

A) the individual barrier, fear of the unknown.
B) the organizational barrier, threats to existing balance of power.
C) the individual barrier, habit.
D) the organizational barrier, structural inertia.

Question 71

Table 16.1
Todd's restaurant is changing from a fast food menu and walk-through service to simple, quickly prepared meals eaten in the restaurant or along the sidewalk. This change was brought on by the losses he is experiencing due to decreased demand for fast food. In order to make the changes as effective as possible and to avoid having to react in the future, Todd is talking to his employees about their ideas on the changes and what the future might hold. He wants employees to try some new things, tell him what's working and what's not working, and help the company grow.
Refer to Table 16.1. In terms of a learning organization, Todd's talking to his employees is:

A) establishing a commitment to change.
B) developing an open organizational culture.
C) adopting an informal organizational structure.
D) rewarding constructive behavior.

Question 72

Table 16.2
Loading Dock One, an international products retailer, is going through organizational change. The entrance of several low cost retailers into their market of quality international gifts is forcing them to seek greater efficiencies so they can lower costs and prices. Unfortunately, their employees are resisting the changes. They understand competition is increasing, but they fear the changes will eliminate jobs or diminish the variety of their work. Not only are the employees resisting, but it seems that the way LDO has hired, trained, and rewarded employees also hinders the changes they want to make. Some managers also are resisting the change because they can see their staffs being reduced or their entire work units eliminated.
Refer to Table 16.2. The initial organizational barrier to change seems to be:

A) work group inertia.
B) shifts in the balance of power.
C) economic insecurity.
D) structural inertia.

Question 73

Table 16.1
Todd's restaurant is changing from a fast food menu and walk-through service to simple, quickly prepared meals eaten in the restaurant or along the sidewalk. This change was brought on by the losses he is experiencing due to decreased demand for fast food. In order to make the changes as effective as possible and to avoid having to react in the future, Todd is talking to his employees about their ideas on the changes and what the future might hold. He wants employees to try some new things, tell him what's working and what's not working, and help the company grow.
Refer to Table 16.1. Todd's restaurant is experiencing:

A) first-order change.
B) second-order change.
C) planned change.
D) administrative change.

Question 74

An ethical issue in organizational development is that ________.

A) OD promotes automation, which leads to reduced employment opportunities.
B) appreciative inquiry leads to learning-centric organizations.
C) many OD practices violate equal opportunity legislation.
D) changing workers in ways they may not want is manipulative and inappropriate.

Question 75

While employee demographics and performance gaps in organizations often prompt unplanned change, government regulation only affects strategic planned change in organizations.

Question 76

Table 16.3
As an organizational development consultant, you are discussing the various OD techniques the CEO could choose from in bringing about change in her company. You suggest that she begin the process with a quick, inexpensive data gathering from the employees. She likes the idea, especially since the technique you recommend allows them to also receive information. Once you have the data, you suggest she go for a program that helps her managers work together more effectively. You suggest that small groups of managers meet on a regular basis to identify and discuss problems in the workplace. The CEO says this all sounds good, but wants to know how to improve organizational and individual goal setting and accomplishment. She wants a way to plan and implement strategic change for the organization, not get lost in a number of individual programs. You conclude the meeting by talking about employee job satisfaction and asking what her thoughts are on it. She says that it is relatively high, and while important, it can wait to be addressed until these other issues are dealt with.
Refer to Table 16.3. Your initial recommendation is for:

A) team building.
B) sensitivity training.
C) survey feedback.
D) management by objectives.

Question 77

First-order change in an organization is significant change at many different levels in the way a firm operates.

Question 78

Table 16.2
Loading Dock One, an international products retailer, is going through organizational change. The entrance of several low cost retailers into their market of quality international gifts is forcing them to seek greater efficiencies so they can lower costs and prices. Unfortunately, their employees are resisting the changes. They understand competition is increasing, but they fear the changes will eliminate jobs or diminish the variety of their work. Not only are the employees resisting, but it seems that the way LDO has hired, trained, and rewarded employees also hinders the changes they want to make. Some managers also are resisting the change because they can see their staffs being reduced or their entire work units eliminated.
Refer to Table 16.2. It seems that the primary fear the employees have is:

A) economic insecurity.
B) structural inertia.
C) force of habit.
D) threats to social relationships.

Question 79

The controversy over the ethicality of OD comes out of the tendency for OD techniques to:

A) not provide clear answers as to the best way to do something.
B) equalize power within organizations.
C) impose the values of the organization on the individual.
D) be less meaningful for workers than for managers.

Question 80

Table 16.2
Loading Dock One, an international products retailer, is going through organizational change. The entrance of several low cost retailers into their market of quality international gifts is forcing them to seek greater efficiencies so they can lower costs and prices. Unfortunately, their employees are resisting the changes. They understand competition is increasing, but they fear the changes will eliminate jobs or diminish the variety of their work. Not only are the employees resisting, but it seems that the way LDO has hired, trained, and rewarded employees also hinders the changes they want to make. Some managers also are resisting the change because they can see their staffs being reduced or their entire work units eliminated.
Refer to Table 16.2. Based on what they want, their best target for change would be:

A) their organizational structure.
B) technology.
C) their people.
D) administrative systems.