Question 1

Companies that take advantage of unethical labor practices or non "green" practices in other countries are likely to face which of the following problems?
A) dissatisfaction among workers
B) government regulation
C) decreases in consumer purchases
D) fewer opportunities for growth
E) failure to implement technological advances

Accepted Answer

Consumers are increasingly aware and concerned about ethical and environmental issues, leading to potential decreases in purchases from companies involved in unethical or non-sustainable practices.

Question 2

Organizations hire lobbyists in an attempt to gain control over which of the following forces for change?
A) technological advances
B) societal values
C) demographics
D) international interdependence
E) political dynamics

Accepted Answer

Organizations hire lobbyists to gain control over political dynamics, as these lobbyists work to influence policymakers and legislation in favor of the organization's interests. The other forces for change (technological advances, societal values, demographics, and international interdependence) are more difficult for organizations to control through lobbying efforts.

Question 3

The CEO and senior managers recognize that the organization is in danger of losing its competitive advantage and that change is necessary. They should begin the process by:
A) checking with subordinates to determine whether change is feasible.
B) removing individuals who are likely to cause disruption to the change process.
C) providing a meaningful reason for associates and managers to attempt change.
D) training managers in new processes and procedures that will be required as part of the change.
E) identifying key managers and associates who must be convinced of the need for change.

Accepted Answer

Providing a meaningful reason for associates and managers to attempt change is essential to gain their buy-in and commitment to the change process. Without a clear understanding of why change is necessary and what benefits it will bring, employees are less likely to support it. Checking with subordinates, removing individuals who may cause disruption, and training managers in new processes are important steps in the change process but should come after providing a meaningful reason for change. Identifying key managers and associates who need to be convinced of the need for change is also important but should not be the first step.

Question 4

Which of the following is not a source of external pressure for change?
A) life-force changes
B) changes in societal values
C) growing international interdependency
D) shifting political dynamics
E) government regulation

Accepted Answer

Life-force changes are not a source of external pressure for change as they refer to internal biological changes within an organism, rather than external factors influencing an organization. The other options listed (B, C, D, and E) are all external factors that can exert pressure on an organization to change.

Question 5

Changes in regulations potentially affect:
A) economic activity
B) investment decisions
C) willingness of foreign firms to enter a market
D) organizational strategies and change
E) all of the above

Accepted Answer

Regulations can affect economic activity by either stimulating or hindering it through various policies. Investment decisions are also likely to be influenced by regulations since they can encourage or discourage investment in a particular sector. Foreign firms would be more willing to enter a market if regulations were favorable, and changing regulations would also require organizations to change their strategies to comply with the new rules. Therefore, all of the options are potentially affected by changes in regulations.

Question 6

The manager of a manufacturing division wants associates to increase their aspirations. The manager is most likely to accomplish his objective by sharing which of the following types of information?
A) examples of past aspirations that were higher than current aspirations
B) an unfavorable performance comparison with a similar division
C) records of past performance at lower levels than current performance
D) examples of past aspirations that were lower than current aspirations
E) a favorable performance comparison with a similar division

Accepted Answer

The answer of The manager of a manufacturing division wants...

Question 7

Increased international interdependence creates pressures for change among organizations that:
A) utilize resources from other countries.
B) establish units in other countries.
C) sell products and services to other countries
D) compete with international organizations
E) all of the above

Accepted Answer

Increased international interdependence affects all aspects of organizations including resource utilization, unit establishment, product and service sales, and competition. Therefore, all of the above options are correct.

Question 8

College students Jeff and Bill have an idea for a service business. They develop their idea, determine start-up costs, and approach their parents for a small loan. Their business is in which life-cycle stage?
A) entrepreneurial
B) collectivity
C) formalization and control
D) elaboration
E) none of the above

Accepted Answer

Jeff and Bill are still in the early stages of developing their business idea, determining start-up costs, and seeking funding from family members. This indicates that they are in the entrepreneurial phase of the business life-cycle, where the focus is on developing and testing new ideas, and securing the resources needed to get started.

Question 9

Which of the following forces most strongly affects government regulations for businesses and industries?
A) changes in foreign trade
B) economic recessions
C) changes in demographics
D) changes in societal values
E) political power

Accepted Answer

The answer of Which of the following forces most strongly...

Question 10

All of the following play a role in the development of aspirations, EXCEPT:
A) past aspirations
B) stickiness
C) past performance
D) acquisitions
E) comparisons with others

Accepted Answer

The other four options (past aspirations, stickiness, past performance, and comparisons with others) are all factors that can contribute to the development of aspirations. Acquisitions, on the other hand, are not typically considered a factor in this process.

Question 11

Government deregulation of an industry is most likely to result in which of the following?
A) lower costs for the industry
B) a more competitive business environment
C) changes in societal values
D) higher prices for consumers
E) lower profits for companies

Accepted Answer

Deregulation typically reduces barriers to entry, leading to increased competition within the industry.

Question 12

During the collectivity stage, Jeff, Bill, and their associates work long hours for low pay, and the business continues to grow. Their continued success will force them to enter the next life-cycle stage in which they must:
A) create a stronger family feeling among associates.
B) improve efficiency in operations.
C) streamline the management hierarchy.
D) utilize informal decision-making processes.
E) reward creativity and innovation.

Accepted Answer

As the business continues to grow, the owners will need to focus on improving efficiency in operations to maintain profitability and sustainability. Streamlining the management hierarchy may also be necessary, but improving efficiency is the most important step for continued success. Creating a stronger family feeling, utilizing informal decision-making processes, and rewarding creativity and innovation may all be important factors, but they are not the most crucial steps for the next life-cycle stage.

Question 13

Which of the following is not a source of internal pressure for change?
A) life-force changes
B) changes in top management
C) changes in demographics
D) aspiration-performance discrepancies

Accepted Answer

Changes in demographics are typically considered an external pressure for change, as they are often influenced by factors outside the organization such as population shifts or economic trends. The other options (life-force changes, changes in top management, and aspiration-performance discrepancies) are all examples of internal pressures for change, which arise from within the organization itself.

Question 14

A manufacturing division sets a goal of assembling 500 units per day. The division is unable to meet its goal and looks for ways to improve its process. The pressure for change is from:
A) technological advances.
B) life-cycle forces.
C) aspiration-performance discrepancies.
D) changes in external forces.
E) none of the above.

Accepted Answer

Aspiration-performance discrepancies refer to the difference between a company's desired levels of performance and its actual performance. In this case, the manufacturing division set a goal of 500 units per day, but is unable to meet that goal. Therefore, there is a discrepancy between their aspiration (500 units per day) and their actual performance. This pressure for change is internal to the company and is driven by the desire to close this performance gap.

Question 15

In the past fifty years, major organizations have implemented which of the following internal changes to deal with changes in demographics?
A) higher salaries
B) diversity management programs
C) quality improvement
D) homogeneous work teams
E) continuous learning

Accepted Answer

Organizations have implemented diversity management programs to address changes in demographics, promoting inclusivity and leveraging diverse perspectives.

Question 16

Based on Lewin's model, organizational leaders can increase managers and associates' level of motivation for change by:
A) inducing feelings of guilt or anxiety related to not changing.
B) promising rewards for attempts to change.
C) administering mild punishments for refusal to change.
D) providing a step-by-step process for implementing change.
E) calling upon managers and associate's loyalty to the organization.

Accepted Answer

Lewin's model suggests that creating a sense of urgency or discomfort, such as feelings of guilt or anxiety, can unfreeze the current state and motivate individuals to embrace change.

Question 17

Jeff and Bill's business is well received. However, they must quickly make a major change or the business will fail. Which of the following needs will force their business into the next life-cycle stage?
A) fresh ideas for services
B) a more systematic structure
C) additional people to provide services
D) better ways to motivate associates
E) a more efficient use of resources

Accepted Answer

The answer of Jeff and Bill's business is well received....

Question 18

Finally, Jeff and Bill's business seems well established and fairly stable. They have a well-organized management system and profits are steady. At this point in its life cycle, the business is likely to face many challenges, both internal and external. To best meet these challenges, the business should:
A) increase the levels of organizational hierarchy.
B) place more emphasis on entrepreneurial activities and less emphasis on human capital development.
C) increase centralization and standardization to improve profits.
D) balance organizational efficiency with empowerment of managers and associates.
E) increase the use of informal coordination and decision-making procedures.

Accepted Answer

At this stage, it is important for the business to balance organizational efficiency with empowerment of managers and associates. This means maintaining a well-organized management system but also allowing for flexibility and creativity among employees to adapt to changing external factors. Increasing centralization and standardization may limit this flexibility, while informal coordination may not provide enough structure for a stable and established business. Finding the right balance is key to meeting the challenges of this stage in the life cycle.

Question 19

Which of the following external pressures creates the need for the most rapid organizational change?
A) technological advances
B) changes in societal values
C) changes in demographics
D) shifting political dynamics
E) growing international interdependence

Accepted Answer

Technological advances are rapidly changing and creating new opportunities and threats for businesses. Therefore, organizations need to change quickly to keep up with the technological advancements and stay competitive in the market. Failure to do so can lead to becoming outdated, losing market share, and ultimately failing.

Question 20

Growing international interdependence and a desire for a long-term competitive advantage puts pressure on companies to:
A) be concerned about the well being of other countries.
B) take advantage of cheap labor in other countries.
C) acquire the natural resources of other countries.
D) decrease sales in the United States.
E) increase government regulation of international business.

Accepted Answer

Growing international interdependence means that the success or failure of one country's economy can have a ripple effect on others. Therefore, companies need to be concerned about the well-being of other countries and work towards mutually beneficial relationships. This involves recognizing the social and economic needs of people in other countries and being respectful of their culture, traditions, and values. By doing this, companies can build long-term relationships that provide a competitive advantage. Taking advantage of cheap labor or acquiring natural resources may have short-term benefits, but it is not a sustainable strategy in the long-term. Increasing government regulation is also not necessarily the best solution, as it can create barriers to entry and limit opportunities for growth.

Quiz 14: Organizational Change and Development

Companies that take advantage of unethical labor practices or non "green" practices in other countries are likely to face which of the following problems?

Organizations hire lobbyists in an attempt to gain control over which of the following forces for change?

The CEO and senior managers recognize that the organization is in danger of losing its competitive advantage and that change is necessary. They should begin the process by:

Which of the following is not a source of external pressure for change?

Changes in regulations potentially affect:

The manager of a manufacturing division wants associates to increase their aspirations. The manager is most likely to accomplish his objective by sharing which of the following types of information?

Increased international interdependence creates pressures for change among organizations that:

College students Jeff and Bill have an idea for a service business. They develop their idea, determine start-up costs, and approach their parents for a small loan. Their business is in which life-cycle stage?

Which of the following forces most strongly affects government regulations for businesses and industries?

All of the following play a role in the development of aspirations, EXCEPT:

Government deregulation of an industry is most likely to result in which of the following?

During the collectivity stage, Jeff, Bill, and their associates work long hours for low pay, and the business continues to grow. Their continued success will force them to enter the next life-cycle stage in which they must:

Which of the following is not a source of internal pressure for change?

A manufacturing division sets a goal of assembling 500 units per day. The division is unable to meet its goal and looks for ways to improve its process. The pressure for change is from:

In the past fifty years, major organizations have implemented which of the following internal changes to deal with changes in demographics?

Based on Lewin's model, organizational leaders can increase managers and associates' level of motivation for change by:

Jeff and Bill's business is well received. However, they must quickly make a major change or the business will fail. Which of the following needs will force their business into the next life-cycle stage?

Which of the following external pressures creates the need for the most rapid organizational change?

Growing international interdependence and a desire for a long-term competitive advantage puts pressure on companies to: