Chapter 1
Organization
Development and
Reinventing the
Organization
TEST QUESTIONS
True/False Questions
1. The increasing rate of change in a company’s external environment is one reason for
the utilization of organization development.
2. Organizations are considered static systems.
3. Since planned change can not take into consideration unfolding and unknown events,
OD is change based upon current conditions so that an organization can react to the
latest market conditions.
4. The objective of OD techniques is to focus on a small segment of an organization so
that it will not impact the rest of the system.
5. Both planned changes and the systems approach are used in organization
development.
6. Characteristics of OD include a collaborative approach to change and an emphasis on
performance.
7. A humanistic concern for personal growth is a characteristic of organization
development.
8. Once a successful organization such as Google has defined a business model, the
reason and importance of developing plans for change diminish.
9. OD practitioner Warren Bennis suggests that the three underlying factors in the
emergence of OD are the need for new forms, an increase in social awareness, and a
focus on cultural change.
10. Successful firms in the 21st century will share common traits, including being faster,
more customer oriented, and larger.
11. In attempting to manage today’s organizations, many executives find that their past
failures to give enough attention to the changing environment are now creating
12. Environmental analysis was an early OD approach to change.
13. A country such as China likely will not have OD programs, as OD is primarily
limited to developed countries with democratic governments.
14. OD specialists may be either internal or external OD practitioners.
15. OD specialists who are internal practitioners typically come from areas of the
organization such as finance and manufacturing.
16. The OD practitioner is always a member of the organization so that the issue of trust
is satisfied.
17. Some OD practitioners consist of organization members, such as managers, who
apply OD to their work.
18. Organization culture refers to the general characteristics of an organization such as
the size of the organization, where it is physically located, and the layout of the
buildings.
19. Norms are the rules and regulations of an organization regarding the conduct of
employees.
20. Peripheral norms are those norms that are essential to an organization’s objectives.
21. Pivotal norms are not critical to the success of an organization and they allow the
members the freedom to express their individualism.
22. Socialization is the process that adapts employees to the organization’s culture.
23. It is important for new employees to read carefully the organization’s employee
handbook and policy manual so that they may learn the peripheral norms of the
organization.
24. An employee who utilizes creative individualism accepts peripheral norms and
questions the peripheral norms.
25. A pivotal norm in the sales department could be a peripheral norm in the finance
department, even within the same organization.
26. A good psychological contract will focus on cultural values and avoid addressing job
expectations.
27. A psychological contract is a written agreement, typically part of the employment
contract, documenting the expectations of both the individual and the organization.
28. Research into the effectiveness of psychological contracts has shown that the
obligations of the employee are the most critical determinants of organizational
commitment.
29. A primary difference between OD and other behavioral science techniques is an
emphasis on viewing the organization as a total system.
30. The action research model does not call for feeding back information to the
organization in order to prevent confusing the members.
31. OD is considered a political and power type of intervention within an organization.
Multiple-Choice Questions
32. Which of the following is (are) one of the major sets of forces in organization
environment over the years?
a. customers
b. competitors
c. government
d. unions
e. all of the above
33. The reason OD has emerged is because the external environment for most
organizations is becoming more _____.
a. simple and predictable
b. complex and dynamic
c. bureaucratic and rigid
d. subject to manipulation by the firm
e. static and predictable
34. In organization development, a practitioner must consider not only the external
environment of the organization, but also _____.
a. customers
b. suppliers of production inputs
c. the needs of society
d. the needs of employees
e. answers c and d
35. OD is oriented to improving organizational _____.
a. growth
b. effectiveness
c. profitability
d. goals
e. none of the above
36. The field of OD is the discipline that _____.
a. is rich in abstract theory
b. is almost entirely intuitive
c. is almost a pure science
d. applies behavioral science to management problems
e. all of the above
37. Which of the following statements relative to OD and the management of change are
true? a. Theory has little application in the real world of business.
b. Theory is, by definition, very abstract and quite difficult to understand.
c. The value of OD is that it provides a systematic approach for the
management of change.
d. It is better to apply no theory at all than to apply a theory that has not
been proven successful.
e. Management and theories tend to be mutually exclusive.
38. Integrating organizational goals and individuals’ motivation for goal attainment is
called _____.
a. organization development
b. organization integration
c. organization planning
d. organization control
e. none of the above
39. Which of the following is included as one of the important ideas in the definition of
OD? a. planning
b. providing direction and leadership from top levels of the organization
c. attaining organizational effectiveness
d. organization wide
e. all of the above
40. The discipline that studies planned changes or the relationship between organizations
and their environment is called _____.
a. management science
b. management development
c. psychology
d. organizational development
e. none of the above
41. OD is essential because it is a _____.
a. source of careers
b. means to preserve knowledge
c. means to accomplish change
d. vital part of small groups
e. way employees get to know one another
42. Which of the following is included in the definition of OD?
a. OD applies to the organization system.
b. OD is based on behavioral science knowledge.
c. OD is concerned with planned change.
d. OD encompasses strategy, culture, and process changes.
e. all of the above
43. Which of the following is NOT a reason for the use of OD?
a. OD is a practical way for robots to weld auto body parts.
b. OD can improve productivity.
c. OD in some cases will improve employee involvement.
d. OD can assist in improving organizational effectiveness.
e. OD can change the direction of the organization.
44. The OD program strives for _____.
a. a planned strategy of product enhancement
b. controlling behavior in the organization
c. the organization’s systems
d. changing organization behavior toward more effective performance
e. none of the above
45. Which of the following is NOT one of the characteristics of OD?
a. collaborative approach
b. decision making
c. systems approach
d. planned change
e. none of the above
46. Which of the following is NOT a characteristic of OD theory?
a. classical organizational theory
b. change that is planned
c. involvement and collaboration
d. scientific approaches combined with practical experience
e. systems approach
47. Which one of the following is NOT a vital function of OD?
a. accomplish things collaboratively
b. improve performance
c. provide a systems approach
d. provide people with career opportunities
e. provide improved effectiveness for the organization
48. Which of the following is a characteristic of OD?
a. depends upon power and political strategies
b. imposed by management
c. uses a micro approach to change
d. seeks improved happiness of employees
e. relies on humanistic values about people
49. Organizational development characteristics include all of the following concepts
EXCEPT _____.
a. predicting individual behavior
b. use of the scientific method
c. a concern for personal growth
d. performance improvement
e. discovering relationships among elements of the organization and
excellence
50. What factors did Warren Bennis, a leading pioneer of OD, believe led to the
emergence of OD?
a. increased social awareness
b. focus on cultural change within the organization
c. the need for new organizational forms
d. a desire to implement an interdisciplinary approach to management
e. all of the above
51. Warren Bennis suggests three factors underlie the emergence of OD, including the
_____. a. need for organizational decision making, policy making, and training
b. need for new forms, focus on cultural change, and increase in social
awareness
c. need for management development
d. need for new goals, new values, and new ideas
e. answers a and d
52. Change is often difficult to implement within an organization because _____.
a. change may be perceived as conflicting with the organization’s mission
b. change may threaten the organization’s culture and norms
c. all organizations operate in an environment
d. answers a and b
e. none of the above
53. Which of the following statements with respect to the early practice of OD is correct?
a. The practice of management dates back about 100 years.
b. The scientific study of OD as a field of inquiry dates back about 50 to 60
years.
c. By 1950, most organizations were using OD.
d. Survival was not an issue in most organizations before 1950.
e. Early managers were not concerned with managerial efficiency and
effectiveness.
54. Which of the following is NOT one of the early approaches to OD?
a. laboratory training
b. economic and environmental analysis
c. survey feedback
d. applied behavioral science interventions
e. survey research
55. Organization development has emerged from _____.
a. applied behavioral science
b. laboratory training
c. survey feedback
d. all of the above
e. none of the above
56. When Rensis Likert and Floyd Mann used survey research and feedback at Detroit
Edison in the 1950s, they were applying the _____ model developed earlier by Kurt
Lewin. a. action research
b. systems theory
c. organization culture
d. socialization
e. culture-normative index
57. Which of the following terms does not describe an OD practitioner?
a. change agent
b. union organizer or advocate
c. consultant
d. OD specialist
e. manager
58. OD specialists _____.
a. are members of the organization
b. come from outside the organization
c. may be part of the human resource department
d. are team leaders and managers who apply OD to their work
e. all of the above
59. The set of values that helps members of an organization know what the organization
stands for and how it does business defines the organization _____.
a. design
b. culture
c. structure
d. responsibility
e. normalization
60. Organization culture refers to a system of shared meanings, which include _____.
a. value system
b. language
c. interactions
d. all of the above
e. answers a and c
61. In the socialization process, new employees usually enter the organization with some
anxiety over expectations. Which stage of socialization follows an employee’s
expectations upon first entering an organization?
a. adjustment to cultural norms
b. encounters organization’s culture
c. rebellion
d. results
e. none of the above
62. For a new employee, the socialization process evolves through four stages. Which
one of the following is not one of those stages?
a. entering an organization with initial expectations
b. encountering the organization’s culture
c. being promoted to a higher position
d. adjusting to the culture and norms
e. receiving feedback.
63. An important aspect of socialization when joining an organization is _____.
a. the technical aspects of the job
b. making sure to greet people you don’t know
c. filing out forms correctly
d. adjusting to the culture
e. all of the above
64. The ideal behavior for a healthy and effective organization would be to encourage
employees to _____, which can be termed creative individualism.
a. reject both peripheral and pivotal norms of the organization
b. accept pivotal norms and question peripheral norms
c. accept peripheral norms and reject pivotal norms
d. accept both peripheral and pivotal norms
e. question pivotal norms and reject peripheral norms
65. Which of the following is an example of a psychological contract?
a. application form
b. legal contract
c. job description
d. purchase order
e. unwritten agreement
66. What is NOT a characteristic of the psychological contract?
a. It is open-ended.
b. It describes expectations.
c. Salary is written in the contract.
d. Periodic renegotiation is necessary.
e. It is unwritten.
67. The action research model contains the following element(s):
a. collecting information about the organization
b. withholding feedback to prevent confusion
c. developing action programs
d. all of the above
e. answers a and c
Essay Questions
68. Define OD and differentiate OD from other change programs.
OD is a process designed to increase organization effectiveness by integrating the
desires of the individual for growth and development with organization goals. OD
differs from other change programs because of the use of: (1) a planned strategy to
achieve organizational change; (2) a practitioner, either internal or external; (3) an
emphasis on collaboration in change; and (4) a belief in humanistic values about
people and organizations.
69. What are the characteristics of OD?
Each answer should contain the following six items or ideas:
a. Planned change
b. Collaborative approach
c. Performance orientation
d. Humanistic orientation
e. Systems approach
f. Scientific method
70. OD practitioners come from primarily what two areas. Explain.
The first area is the OD specialists who are professionals that have specialized and
trained in organization development and related areas, such as organization behavior
and applied social sciences. If they come from outside the organization, they are
external practitioners and if they come from within the organization, they are internal
practitioners. The second area is the people within an organization who are in
management or leadership positions and they apply OD to their work. Examples of
the positions of these people are team leaders and managers of all levels.
71. Define and discuss importance of organization culture.
Each answer should contain the following items:
a. Culture is the shared language, dress, patterns, etc., of an organization.
b. Pivotal norms are essential to the corporate objectives.
c. Peripheral norms are supportive, but nonessential items to an organization’s
objectives.
d. Socialization is the process of an individual adjusting to an organization’s culture
and norms. There are three different responses to this process: rebellion, creative
individualism, and conformity.
e. Psychological contract is an unwritten agreement of the expectations between an
individual and an organization.
72. List and describe the three basic socialization responses and tell under what
conditions each may be appropriate.
Rebellion occurs when the person rejects both pivotal and peripheral norms and
values of the organization. It is an appropriate response when the individual is
diametrically opposed to the organization. Conformity occurs when the person
accepts both the peripheral and pivotal norms and values within the organization.
This may be appropriate when acceptance within the organization is valued highly or
when it is difficult to ascertain what the pivotal norms are and what the peripheral
norms are. Creative individualism occurs when the person accepts the pivotal values
and norms and rejects some or all of the others. In an ideal situation, this is the
preferred response, and it facilitates healthy and effective organizations while
encouraging individuals to question or examine the norms.