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Management, 14e (Robbins/Coulter)
Chapter 7 Managing Change and Innovation
1) Organizational change can best be defined as ________.
A) rethinking the organization's target markets
B) innovation that affects employees and customers
C) a "cleaning house" of the top executives
D) any alteration of people, structure, or technology.
2) Alison has an idea for improving the efficiency of her work area. When she approached her
supervisor, she was asked to shepherd the idea through the approval, implementation, and
evaluations processes. Alison has become a ________.
A) supervisor
B) change agent
C) group leader
D) job coach
3) In organizations, people who act as catalysts and assume the responsibility for managing the
change process are called ________.
A) change masters
B) change agents
C) change champions
D) change generators
4) Outside consultants are more likely to initiate ________ organizational changes than insiders
are.
A) drastic
B) mild
C) acceptable
D) trivial
5) Organizations need change because ________.
A) the future is unpredictable
B) the environment is stable
C) external and internal factors create the forces for change
D) employees get bored with the status quo
6) The Sarbanes-Oxley Act is an example of which of the following forces of change?
A) internal change
B) technological change
C) external change
D) organizational strategy change
7) The technology change in the manufacturing process of New Ideas, Inc.'s products to make
the process more efficient is the result of a competitor lowering its price. Therefore, it was a(n)
________.
A) external force of change
B) internal force of change
C) marketplace force of change
D) economic force of change
8) First he was all about innovation. Next it was efficiency. Now Snyder's strategy is customer
responsiveness. These changes in strategy are indicative of ________.
A) external force of change
B) internal force of change
C) marketplace force of change
D) economic force of change
9) When the employees express their concern about their bonus checks, which of the following
types of forces of change is in play?
A) external force of change
B) labor market force of change
C) internal force of change
D) social force of change
10) Which one of the following is an example of changing consumer preferences?
A) Cell phone cameras have improved with each version of the phone.
B) Employers with at least 50 employees must offer health care plans.
C) A recession has caused an increase in unemployment.
D) The colors in home fashions change every year.
11) Which one of the following represents a change in technology?
A) Most business communication involves email.
B) Electricity is produced by generating plants that burn coal.
C) Bold, bright colors in clothing and wall paint have largely replaced neutrals.
D) The participation rate of the U.S. labor force is at its lowest point in the last 40 years.
12) Sales are down; unemployment is up. Evergreen Park Homes can no longer support its
current level of production. Evergreen is facing a change in ________.
A) government regulations
B) technology
C) consumer preferences
D) the economy
13) Falling interest rates are an example of what external force?
A) change in composition of workforce
B) change in employee attitudes
C) technological change
D) economic change
14) Bullseye, a large discount retailer, discovered it could not compete with the world's largest
retailer and has repositioned itself as a more upscale discount department store. This move
represents a change in ________.
A) consumer preferences
B) organizational strategy
C) technology
D) the economy
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Copyright © 2018 Pearson Education, Inc.
15) During his first year of employment, Arnold saw mostly white male faces in his plant. Now
he sees women and men of all ages and ethnicities. Communication has become challenging.
Arnold has noticed a change in the ________.
A) lifestyle choices
B) workforce composition
C) employment laws
D) employee attitudes
Answer: B
Diff: 2
AACSB: Analytical thinking; Application of knowledge
Learning Obj: LO 7.1: Describe making the case for change
Classification: Application
16) Increasing the numbers of employed women and minorities forces managers to pay attention
to what change factor?
A) organizational strategy
B) changes in the composition of the workforce
C) new equipment
D) changing technology
Answer: B
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 7.1: Describe making the case for change
Classification: Application
17) Which one of the following represents a change in technology?
A) Hand-held calculators replaced pencil and paper in the workplace.
B) Brenda exchanged her broken iPhone 4 for an iPhone 5.
C) Wooden desks were replaced by steel ones with composite tops.
D) Brownstone Corp. carpeted the tile floors in its office areas.
Answer: A
Diff: 3
AACSB: Analytical thinking; Application of knowledge
Learning Obj: LO 7.1: Describe making the case for change
Classification: Application
18) Labor strikes are an example of which of the following internal change factors?
A) workforce composition
B) new equipment
C) employee attitudes
D) organizational strategy
Answer: C
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 7.1: Describe making the case for change
Classification: Application
6
Copyright © 2018 Pearson Education, Inc.
19) Outside consultants tend to recommend more cautious changes because they may fear
lawsuits if the recommendations turn out badly.
Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 7.1: Describe making the case for change
Classification: Concept
20) Government regulations are considered an internal factor for change because they force the
business to change how it functions.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 7.1: Describe making the case for change
Classification: Concept
21) Cost-cutting measures tend to exacerbate the conditions that led to the need for cutting costs.
Answer: TRUE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 7.1: Describe making the case for change
Classification: Concept
22) Employees who prefer stability are less likely to try new technology.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 7.1: Describe making the case for change
Classification: Concept
23) Discuss the four external factors that prompt change in an organization, giving an example of
each factor. Explain how the factor affects the organization
24) Discuss the four internal factors that cause change in an organization, giving an example of
each factor.
25) Fuel prices keep spiraling upward so recreational vehicle manufacturers are being pressured
to produce lighter units that can be pulled by smaller trucks. This situation is representative of
________.
A) a driving force
B) a social force
C) a restraining force
D) an economic force
26) The two metaphors commonly used to describe the two views of the change process are
________.
A) smooth water and troubled water
B) calm waters and white-water rapids
C) shallow water and falling water
D) burning bridge and water over the dam
27) In the ________ metaphor, change is normal and expected and managing it is a continual
process.
A) calm waters
B) white-water rapids
C) smooth water
D) water over the dam
28) Business had been humming along just fine until the Great Recession hit. Benton Industries
adjusted by laying off employees until the recession ended then hired them back. Then it was
back to business as usual. This is an example of ________.
A) the shallow water metaphor
B) the calm waters metaphor
C) the white-water rapids metaphor
D) the falling water metaphor
29) Lewin's three-step process is consistent with the ________ theory of organizational change.
A) white-water rapids
B) shallow waters
C) smooth waters
D) calm waters
30) According to Kurt Lewin, which of the following is a stage in the change process?
A) restraining
B) driving
C) processing
D) unfreezing
31) According to Kurt Lewin, increasing the driving forces is a means of ________.
A) unfreezing
B) changing
C) restraining
D) refreezing
32) The unfreezing step of the change process can be thought of as ________.
A) changing to a new state
B) sustaining a change over time
C) changing the organizational structure
D) preparing for the needed change
33) According to Lewin, which of the following is the objective of refreezing?
A) directing behavior away from the change
B) hindering the existing equilibrium
C) eliminating the need for future change
D) stabilizing the new situation
34) "If it's not one thing, it's another. We just get used to doing things one way and suddenly
that's not good enough anymore. It's a new machine here, a new manager there, changing
customer demands-it never ends!" This is an example of ________.
A) the water over the dam metaphor
B) the calm waters metaphor
C) the white-water rapids metaphor
D) the falling water metaphor
35) New Ideas, Inc., focuses on new ideas, uses technology that changes frequently, and has
strong competition in the market. This situation describes what metaphor of change?
A) a shallow water metaphor
B) a falling water rapid metaphor
C) a rapid water metaphor
D) a white-water rapids metaphor
36) When the Pinto cars made by Ford were increasingly involved in fatal rear-crash accidents,
Ford officials made a decision to discontinue that model. Their decision was a(n) ________
change.
A) inactive
B) proactive
C) reactive
D) retroactive
37) Bob is the noon manager at a fast-food hamburger restaurant. As soon as he saw the bus pull
into the parking lot, he ordered the cooks to put down as many patties as the grill would hold and
shifted his people around so every cash register was open. Bob's response was ________.
A) inactive
B) proactive
C) deactive
D) retroactive
38) The "white-water rapids" metaphor of change is consistent with Lewin's concept of
unfreezing, changing, and refreezing.
39) In the "white-water rapids" metaphor of change, change is seen as an occasional disruption in
the normal flow of events.
40) Identify some of the external and internal forces of change.
41) Describe and explain the "calm waters" view of organizational change.
42) Organizational change is any alteration of ________.
A) people, structure, or technology
B) structure, management, or goals
C) technology, goals, or management
D) rules, procedures, or management
43) During the great recession, average household discretionary income declined. Families
sought less expensive alternatives for luxury items. Producers adjusted by offering lighter-
weight, lower-cost items. These producers changed their ________.
A) strategies
B) structures
C) people
D) technology
44) Colin believes his organization could be more profitable if it could respond to customers
more quickly so he has decided to remove some management layers and increase the remaining
managers' span of control. These would be considered changes in ________.
A) structural design
B) structural process
C) degree of centralization
D) structural components
45) Structural component changes include ________.
A) combining departmental responsibilities
B) changing work processes
C) changing attitudes
D) changing behavior
46) If Kelly were to consider enhancing productivity by giving greater authority to her
subordinates and increasing formalization, she would be considering ________ changes.
A) structural
B) technological
C) people
D) strategy
47) A company that decides to decentralize its sales procedures is managing ________ changes.
A) technological
B) people
C) strategy
D) structural
48) After Body-Met acquired Uni-Dyne, the company reorganized around geographic divisions
instead of function. This action represents changes in ________
A) strategy
B) structural components
C) structural design
D) people
49) Which type of change might include a shift from a functional to a product structure?
A) a structural design change
B) a structural component change
C) a technological change
D) a people change
50) After several expansions and acquisitions that resulted in duplicate positions of several
administrative functions, U.S. Big Corp. decided to reorganize itself around customers rather
than around functions. This would amount to a change in ________.
A) structural design
B) selection process
C) degree of centralization
D) structural components
51) Changes in work processes, methods, and equipment are a part of ________ changes.
A) technological
B) structural component
C) financial
D) structural design
52) Technological changes usually involve the introduction of ________.
A) new equipment, tools, or operating methods
B) new equipment, tools or people
C) new equipment, operating methods, or structure
D) new equipment, people, or structure
53) The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of
________.
A) people change
B) management change
C) technological change
D) structural change
54) When supermarkets and other retailers use scanners that provide instant inventory
information, they are adopting ________ changes.
A) technological
B) people
C) efficiency
D) structural
55) ________ is the term used to describe change methods that focus on people and the nature
and quality of interpersonal work relationships.
A) Commercial development
B) Organizational development
C) Career development
D) Comprehensive development
56) If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work
relationships, this would be an example of managing ________ changes.
A) technological
B) people
C) financial
D) structural
57) ________ is a method of changing behavior through unstructured group interaction.
A) Team building
B) Intergroup development
C) Survey feedback
D) Sensitivity training
58) An increase in the diversity of his department has led to conflict and animosity. To reduce
this and allow his team to become more productive, Lemuel has asked the Human Resources
department to provide ________ for his people.
A) survey feedback
B) sensitivity training
C) team building
D) intergroup development
59) What organizational development technique involves changing the attitudes, stereotypes, and
perceptions that work groups have about each other?
A) team building
B) intergroup development
C) survey feedback
D) sensitivity training
60) Organizational change can be any alteration of strategy, people, structure, or technology.
61) Managers exclusively play the role of change agents.
62) Changing structure includes any change in structural variables such as reporting
relationships, coordination mechanisms, employee empowerment, or job redesign.
63) Sensitivity training refers to activities that help team members learn how each member thinks
and works.
64) Explain organizational change and briefly discuss the four types of change.
65) Define Organizational Development (OD). List and explain the five most popular OD
techniques.
66) An individual is likely to resist change because of the feeling ________.
A) of achievement
B) of uncertainty
C) of personal gain
D) that the change is in the organization's best interest
67) When Joshua proposed cross-training his employees so absences and vacations would not
pose such a problem in productivity, his employees objected. Their resistance came from their
________.
A) belief that ambiguity would increase
B) fear that they would be forced out of their habits
C) concern over personal loss of income
D) belief that Joshua's changes would harm the organization
