Question 1

Cadrent Company is a very successful insurance company. Its CEO is excited about the company's prospects and directs the technology team to begin creating a new technology platform that Cadrent will market as a new product line. The CEO begins diverting funds and resources away from insurance operations and into the new platform. Which stage of organizational decline does this best represent?

Accepted Answer

The scenario describes the "undisciplined pursuit of more," where the CEO, excited by the company's success, begins to divert resources to expand into new areas without maintaining discipline, potentially stretching the company too thin and risking its core operations.

Question 2

Watertek Industries has been losing money at a rapidly increasing rate over the past few years. Although the company has avoided acquisitions in the past, a member of the senior leadership team is pushing for an expensive acquisition of one of Watertek's competitors. She feels like the purchase will lead to a quick return to profitability for the company. Which stage of organizational decline does this situation best represent?

Accepted Answer

The situation described fits the "grasping for salvation" stage of organizational decline, where companies often resort to desperate measures, such as risky acquisitions, in hopes of a quick turnaround.

Question 3

Zander Company is holding its annual company meeting. During the question-and-answer session, one of the employees asks the CEO about the poor financial figures that were reported for the year. The CEO has seen some negative indicators within the company but explains that the numbers are very misleading. He states that early projections on their new product line are favorable and should make the next year a profitable one. Which stage of organizational decline does this best represent?

Accepted Answer

The CEO's response indicates a denial of the current financial issues by focusing on future projections, which aligns with the "denial of risk and peril" stage of organizational decline. This stage is characterized by ignoring warning signs and maintaining an overly optimistic outlook despite evidence of problems.

Question 4

What would be the most likely outcome if a company continued to ignore the warning signs of organizational decline through the first four stages?

Accepted Answer

Ignoring the warning signs of organizational decline typically leads to severe financial distress, which can culminate in the need to file for bankruptcy as the company becomes unable to meet its financial obligations.

Question 5

Toshsung manufactures high-end technology products to consumers. Leadership has noticed the company is losing a lot of business due to an influx of more economical options from its competitors. As a result, Toshsung is exploring the addition of a budget-friendly product line. Which form of organizational change does this best represent?

Accepted Answer

This represents a change in strategy, as Toshsung is adjusting its approach to the market by introducing a budget-friendly product line to compete with more economical options from competitors.

Question 6

Shinetime Manufacturing has spent the year eliminating numerous mid-level managers, supervisors, and team leads. The company has most likely committed to which form of organizational change?

Accepted Answer

Shinetime Manufacturing's actions of eliminating numerous mid-level managers, supervisors, and team leads indicate a change in the organizational structure. This type of change involves modifying the hierarchy, roles, responsibilities, and the way the organization operates internally.

Question 7

DOA Pharmaceuticals is moving from an assembly line production system to one that utilizes separate processing rooms. This will enable the company to save money on production compared to its competitors. Which form of organizational change does this best represent?

Accepted Answer

This represents a change in technology, as DOA Pharmaceuticals is changing its production system to a different method (from assembly line to separate processing rooms), which involves altering the tools, processes, or methods by which the company produces its goods.

Question 8

Sales have been lagging at Dust-up Cleaning Supply Company over the past year. Management wants to drive an increase in performance during the next fiscal year by adjusting the company's organizational structure. Which action would best help them achieve their goal?

Accepted Answer

E) Eliminating middle layers of management and using electronically linked work teams can improve communication and decision-making processes, leading to increased efficiency and productivity, which can help drive sales performance.

Question 9

The management at Craftmine Company wants to analyze the company to make positive improvements each year. They should start by

Accepted Answer

Conducting a review to analyze problems is the first step in making positive improvements.

Question 10

Five Second Rule Catering is changing the company's assembly process. It will require its production team to make significant changes to their process. How can the company best overcome any resistance from the team?

Accepted Answer

Creating weekly recognition parties to celebrate success can effectively overcome resistance by acknowledging employees' efforts and achievements, thereby motivating them and fostering a positive attitude towards the change.

Question 11

Car-Car Travel Company has noticed a problem with its accounts payable system and created a list of potential solutions. The company's next course of action would be to

Accepted Answer

Ensuring buy-in from senior leadership is crucial for implementing any solution effectively, as it provides the necessary support and resources for the changes to be successful.

Question 12

Teamsport Company realizes it has a problem with its inventory management system and is causing significant production delays. Senior leadership organizes a team to analyze and solve the problem. Which example represents the best course of action for the team?

Accepted Answer

Brainstorming potential solutions is the best course of action as it directly addresses the problem by generating ideas to solve the inventory management issue.

Question 13

Madhen Industries is planning to make significant changes to its shipping and receiving department. Once leadership has approved the change, how should the shipping and receiving supervisors proceed?

Accepted Answer

Implementing significant changes often leads to resistance from employees who may be comfortable with the current processes or fearful of the unknown. Preparing to overcome potential resistance involves understanding employee concerns, communicating effectively about the changes, and providing support throughout the transition. This is a critical step in change management to ensure the changes are successfully adopted.

Question 14

Brakefast Company believes in working while saving the environment. The company asks its employees to sign documents digitally rather than using hard copies. Brakefast is socializing its culture by using

Accepted Answer

Brakefast Company is using symbols, in this case, the practice of digital signatures over paper, to socialize its culture of environmental conservation. Symbols can include any physical object, act, or event that conveys the values and norms of an organization.

Question 15

Cardinal Motors spends one week every year giving back to the community through a variety of employee-run volunteering events. This best represents the ________ aspect of culture socialization.

Accepted Answer

The answer of Cardinal Motors spends one week every year...

Question 16

Covington Industries has asked you to enhance the company's new employee orientation program. How could you best accomplish this using the concept of stories?

Accepted Answer

Stories about past successes, like how the first leader brought an important product to market, can inspire and engage new employees by illustrating the company's values and achievements.

Question 17

Collective commitment is best defined as the

Accepted Answer

Collective commitment refers to the pride and shared dedication employees feel towards being part of a company, aligning with its goals and values.

Question 18

Chi has successfully completed some mandatory training required by her employer. She knows she will be recognized and rewarded in the same manner as her coworkers who have gone through the same training. This can be classified under which effect of an organization's culture?

Accepted Answer

The answer of Chi has successfully completed some mandatory training...

Question 19

Napier Company provides technology solutions to small, independently owned businesses in the Midwest. By sharing this mission with its employees, Napier can positively impact which aspect of its culture?

Accepted Answer

Sharing the company's mission helps employees understand the organization's goals, aligning their efforts and fostering a shared sense of purpose.

Question 20

How would an organization go about enhancing its culture from the perspective of social-system stability?

Accepted Answer

The answer of How would an organization go about enhancing...

Quiz 11: Human Resource Management and Labor Relations