TEST BANK
Chapter 1 – Organizational Change
MULTIPLE CHOICE
1. Nokia’s loss of market share of U.S. cell phone business as a result of:
a. lack of technological skills
b. too much focus on the growing emerging markets
c. conscious strategic decisions made by the company
d. all of the above
e. none of the above
2. Strategic renewal refers to:
a. a change in an organization’s strategy involving some combination of new
products/services, new markets, and a new business model
b. changing senior management
c. renewing the existing strategy through reorganization
d. all of the above
e. none of the above
3. Discontinuous change is:
a. large-scale, short-term reorientation of most or all of the central aspects of
organizational life customers have to be involved.
b. large-scale, long-term reorientation of most or all of the central aspects of
organizational life customers have to be involved.
c. change that occurs over-time, effecting isolated parts of an organization
d. all of the above
e. none of the above
4. ____________ directly targets patterns of employee actions and interactions in
order to achieve and sustain outstanding performance.
a. turnaround change
b. radical change
c. characteristic change
d. transformational change
e. productivity change
5. Behavior change requires:
a. changing what employees do and how they do it.
b. changing employee relationship with others.
c. sustainable changes.
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d. adaptive changes.
e. all of the above
6. ____________ refers to the setting and circumstances in which employees work.
a. Organizational context
b. Organizational dynamics
c. Behavioral dynamics
d. Organizational performance
e. Behavioral performance
7. When people participate in the process of defining a problem and its solution,
they will be:
a. more likely to hesitate on changing their behavior.
b. more likely to change their behaviors in accordance with that solution.
c. more likely to resist the change.
d. more likely to be productive.
8. Transformational change seeks to ____________ employees to change their
behaviors.
a. encourage
b. motivate
c. stimulate
d. force
e. coerce
9. Employees often resist change because:
a. they are often old and old people don’t like change.
b. they are low-level employees not capable of understanding change.
c. it is natural to resist change.
d. they were not involved in the process.
e. all of the above
10. Managers can learn from employee resistance by:
a. finding creative ways to squelch the resistance.
b. giving the employees voice.
c. figuring out who they should fire.
d. learning how to automate as many production processes as possible.
11. Employee resistance to change is caused by:
a. lack of participation in the process.
b. lack of communication about the goals and process.
c. imposing change.
d. mishandling of the process by management.
e. all of the above
12. Which of the following is NOT one of the faces of change:
a. transformation
b. transition
c. turnaround
d. tools and techniques
13. Engaging executives in turnaround refers to:
a. hiring all new employees.
b. changing the technology throughout the organization.
c. stabilizing the company’s financial position.
d. revamping the organization’s strategy.
e. none of the above
14. Effective strategic renewal efforts combine aspects of ____________,
____________ change, and ____________ change.
a. employee; production; finance
b. turnaround; tools and techniques; transformational behavioral
c. management; employee; customer
d. customer; environment; participation
e. none of the above
15. Changing techniques and tools refers to changes in:
a. organizational processes and technologies.
b. machines and equipment only.
c. employee capabilities.
d. outsourcing.
e. none of the above
16. A trigger event refers to:
a. a shift in the environment that precipitates a need for altered strategies and new
patterns of employee behavior.
b. large-scale, long-term reorientation of most or all of the central aspects of
organizational life.
c. small, incremental improvements typically in organizational processes and
technologies.
d. changes in only the external environment.
e. changes in only the internal environment.
17. Which of the following is a good example of a trigger event?
a. globalization
b. shifts in labor market
c. deregulations
d. mergers and acquisitions
e. all of the above
18. Which of the following is NOT a reason to go global?
a. outsource some activities previously done in the home country
b. seek raw materials
c. seek strategic alliances
d. expand into new markets
e. simplify operations
19. The differences in culture, language, and the political-economic‐legal infrastructure
of countries is referred to as:
a. psychic distance
b. power distance
c. globalization gap
d. diversity span
e. none of the above
20. Going global always means:
a. increased profits
b. new synergies
c. loss of jobs in the home country
d. organizational change
e. all of the above
21. Trigger events are internal changes to an organization which require a change in the
behavioral patterns of employees.
22. Successful global organizations move financial resources, technology, people, best
practices, and knowledge in a seamless flow as required by a highly fluid international
competitive environment.
23. The introduction of a new product with advanced technology is a good example of a
trigger event.
24. Older workers are more likely to resist change than younger workers.
25. There comes a point in the change process where employee resistance will
naturally lessen, therefore there is no reason to address and overcome their resistance.
26. Because motivation does not differ much from person to person, the manager’s
challenge is apply a motivational tactic uniformly across all employees.
27. Psychic distance refers to the differences between national cultures in their beliefs
about the nature of the soul.
28. World-wide recession is a good example of an internal event that may trigger a
change within the organization.
29. Organizational space refers to the setting and circumstances in which employees
work.
30. MySpace’s most recent approach to change can be characterized as
transformation.
31. To create the proper organizational context for change, employers must quickly and
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harshly punish mistakes made by employees.
32. When an organization imposes change on their employees, resistance is lessened
because employees understand that change is inevitable.
33. Borders lagged behind Amazon because they failed to introduce an eReader like
Kindle.
34. Behavior comes from the individual, not from the organizational context.
35. Employee resistance to change can be positive or negative.
36. Organizational capabilities refer to the collective talents and skills of a firm’s CEO
and their senior management to implement strategic renewal.
37. For change to be effective, leaders must align internal processes, structures and
systems with new strategies.
38. Effective strategic renewal efforts combine aspects of turnaround, tools and
techniques, but NOT transformational behavioral change
39. If change interventions are to achieve significant and sustainable impact on
performance, they must assure that current employee behaviors which were successful
in the past are not altered.
40. Considered design takes into account ecological impact at the beginning of a new
product design process rather than as an afterthought.
51. Explain how and why Google provides an organizational context that
stimulates innovation.
52. What are some of the possible employee responses to change? What is the
role of management in dealing with employee resistance?
10-12)
53. Explain why employee motivation matters.
54. What is the role of participation in motivating behavioral change?
55. What is meant by the three faces of change and how are they related?
56. Why do employees resist change?
57. Discuss the continuum of individual responses to change.
58. Explain how managers create resistance during implementation.
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Scenario-Based Questions
You are the manager of a college IT department, in charge of providing student, staff
and faculty support in all IT areas, including computer labs, email, smart classrooms,
and specialized needs. The college just announced a 40% cut in the budget for next
year and has asked you to implement staff and equipment reductions. You and your
staff take pride in the level of customer service and communication you have been able
to establish.
59. As the manager, the first thing you will work on is:
a. the swift and efficient implementation of the budget cuts.
b. maintaining the equipment quality you have worked on so hard.
c. a staff meeting to discuss the best way to proceed.
d. your letter of resignation.
e. a letter of protest, signed by staff, faculty and students.
60. The employees in your department have become very upset at the prospect of
massive layoffs. Your strategy for dealing with the discontent is:
a. offer incentives to any volunteers ready to leave the college.
b. squelch all informal discussion at the water cooler.
c. carefully note the most vocal dissenters and put them on the layoff list.
d. interview, discuss and learn as much as you can about the concerns.