Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Chapter 6: Managing Change, Innovation, and
Entrepreneurship
Test Bank
Multiple Choice
1. What are the types of change identified in the text that can occur in an organization?
a. environment, technology cycles, and next generation
b. incremental and discontinuous
c. strategy, structure, technology, and people
d. management, personnel, and policies
2. In 2007, Apple Inc. released the iPhone, which was a breakthrough in the cell phone
market. Today, competitors such as Samsung, Motorola, and HTC each have
smartphones on the market that closely resemble the iPhone in both form and
functionality. What form of change did the first iPhone demonstrate?
a. organizational
b. incremental
c. structural
d. discontinuous
3. ______ is the alteration of existing work routines and strategies that affect the whole
organization.
a. Organizational change
b. Incremental change
c. Structure change
d. Discontinuous change
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4. John is an owner of a franchise that produces custom signs and banners. Prior to the
recession, the majority of John’s business came in the form of walk-in and repeat
customers. After the recession, the amount of traffic to his shop dwindled and his
business was suffering. John decided to hire an outside salesperson to actively find new
business rather than wait for new business to come to him. What type of change did
John implement?
a. strategy
b. structure
c. technology
d. people
5. ______ is a significant breakthrough in technology that leads to design competition
and a new technology cycle.
a. Strategic change
b. Discontinuous change
c. Technological change
d. Incremental change
6. ______ describes what occurs when new technologies cause previously successful
firms to fail.
a. Dynamic disruption
b. Customers’ adoption lag
c. Technology paradox
d. Innovator’s dilemma
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
7. A(n) ______ begins with the birth of a new technology and ends when it is replaced
by a newer, substantially better technology.
a. technology adoption curve
b. technology cycle
c. systems process
d. innovation period
8. Online streaming and downloading of music have replaced the compact disc. Which
of the following is this an example of?
a. the environment
b. technology cycles
c. next generation
d. change in structure
9. ______ is continual improvement that takes place within the existing technology
cycle.
a. Strategic change
b. Discontinuous change
c. Technological change
d. Incremental change
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4
10. In 2006, Microsoft released the Xbox 360, which was capable of playing older Xbox
games. They recently announced that the Xbox One will also be updated to play some
of the original Xbox games. This is an example of ______.
a. technology cycle
b. next generation
c. failing to take risk
d. technology adoption curve
11. Two important types of innovation, according to the text, are ______.
a. technology and process
b. product and people
c. product and process
d. process and people
12. ______ is the implementation of a new idea.
a. Concentration
b. Creativity
c. Entrepreneurship
d. Innovation
13. When implementing innovative changes, one faces ______.
a. adversity
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
b. pushback
c. risk
d. objections
14. Which of the following organizations is known to have a strong innovative culture?
a. Burger King
b. U.S. Postal Service
c. Google
d. Sears
15. Innovative structures commonly share all of the following characteristics, EXCEPT
______.
a. flexibility
b. specialist division of labor
c. limited bureaucracy
d. coordination with cross-functional teams
16. A ______ project is one typically developed by a small and loosely structured group
of people who research and develop a project primarily for the sake of radical
innovation.
a. greenfields
b. brownfields
c. skunkworks
d. changeworks
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
17. The goal of the ______ is to lower costs and incrementally improve performance
and functions of the existing dominant design.
a. enhancement approach
b. compression approach
c. gradual approach
d. developmental approach
18. During discontinuous change, one should manage innovation using the ______.
a. generational change approach
b. experimental approach
c. compression approach
d. trial approach
19. The goal of the ______ is to make significant improvements in performance and to
establish a new dominant design.
a. generational change approach
b. technology cycle
c. experimental approach
d. incremental change approach
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
20. The strategy of the ______ is to continue to improve the existing technology as
rapidly as possible while still allowing the use of the old technology.
a. compression approach
b. generational change approach
c. next-generation approach
d. technology change approach
21. The four stages people tend to go through when facing change are ______.
a. denial, resistance, consideration, and acceptance
b. questioning, fighting, hesitation, and acceptance
c. resistance, questioning, consideration, and commitment
d. denial, resistance, exploration, and commitment
22. The four-stage change process is a(n) ______.
a. ongoing process
b. linear process
c. singular cycle process
d. forward motion process
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
23. Mitchel has worked for Smith’s Construction Company for eight years and loves his
job. Recently, a new manager was hired for his region and rumor has it that the new
manager wants to bring in all his own staff and plans on laying off most of the existing
workers. Many of Mitchel’s friends have begun looking for new jobs, but Mitchel
believes that there is no way he will be one of the ones to be let go. He is currently
experiencing which stage of the change process?
a. resistance
b. denial
c. commitment
d. fighting
24. A new policy at work requires Jaxon to wear slacks every day of the week.
Previously, he enjoyed wearing khakis or golf shorts to work on occasion. Since he
works at a call center, he is never face-to-face with customers. He does not like this
policy or understand the need for it and is considering asking his management for
explanation. He hopes he can still find a way to wear whatever pants or shorts he
wants. We would consider Jaxon to be in which stage of the change process?
a. resistance
b. resentment
c. questioning
d. denial
25. The team at TeleCorp was very impressed by their competitor’s most recent
release. They found it intriguing and are worried about some of their current customers
switching services since they do not have a comparable product. They have begun
doing their own research in this new field and thinking about how to create their own
offering. What stage of the change process are they in?
a. commitment
b. resistance
c. denial
d. exploration
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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26. ______ is necessary in order to implement change.
a. Exploration
b. Commitment
c. Resistance
d. Denial
27. Orchid Incorporated recently recognized that some changes needed to be
implemented. As a result, an entirely new training program has been developed and is
ready for implementation. Continuing down the current path could be dangerous for the
future of the company, but this drastic change will not be easy. The staff has had some
trouble adjusting, but most agree that the industry has changed. The stage of change
being undergone here is ______.
a. experimentation
b. exploration
c. acceptance
d. commitment
28. You are upset that the company is implementing a new policy for swapping
scheduled shifts. The new policy requires employees to send a 48-hour notice when
swapping scheduled shifts and waiting for supervisor approval before an actual swap
can occur. You feel that the current policy in which employees can swap shifts at any
time without supervisor approval is sufficient and that a change is not necessary. You
don’t see how the new policy can be implemented without becoming an inconvenience
to both employees and supervisors, causing inefficiency in scheduling. What it at the
core of your resistance to change?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
a. uncertainty
b. learning anxiety
c. self-interest
d. fear of loss
29. Which of the following is NOT a way of overcoming change?
a. Create a win-win situation.
b. Create urgency.
c. Develop a united goal.
d. Develop a positive trust climate for change.
30. Which is NOT a major source of resistance to change?
a. facts
b. beliefs
c. values
d. attitudes
31. Which of the following correctly describes the order of the three parts of developing
a habit?
a. reward > routine > cue
b. routine > cue > reward
c. cue > routine > reward
d. reward > cue > routine
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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32. Amanda has worked for Parks City Library for over ten years and has grown to love
her job and her coworkers. Recently, there has been talk among the library workers that
half of the existing workers will be transferred to the new library on the other side of
town. Amanda is worried that Macy, her fellow worker of five years, will be one of the
staff members moving to the new library. She hopes that both she and Macy will stay at
the same library. What is Amanda’s reason for resisting change?
a. learning anxiety
b. self-interest
c. fear of loss
d. uncertainty
33. Which of the following is one of three major focuses of resistance to change?
a. work environment
b. intensity
c. beliefs
d. employees
34. Sally was recently assigned to an important advertising campaign for WonderCorp’s
new project. She is usually the leader of cash operations and has not done any major
advertising since she graduated from college three years ago. Sally is scared she might
ruin the advertisement and create a bad name for the company. What is Sally’s reason
for resisting change?
a. learning anxiety
b. self-interest
c. fear of loss
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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d. uncertainty
35. A new policy at work requires Jason to stay later on Wednesdays to attend
mandatory project meetings. Wednesdays are usually when Jason takes his daughter to
soccer practice. Jason would rather have the project meetings earlier in the morning on
Wednesdays or stay later on Thursdays so he can still make time for his daughter. What
is Jason’s reason for resisting change?
a. learning anxiety
b. self-interest
c. fear of loss
d. uncertainty
36. Mary is a new supervisor working with a preexisting staff that has resisted many of
the new policies she has put into place. Mary explains to the staff that the new policies
are more effective than the old ones because they save time and energy and allow the
staff more time to spend serving customers. How is Mary overcoming resistance with
her staff?
a. by creating a win-win situation
b. by creating urgency
c. by clearly state why the change is needed and how it will affect employees
d. by developing a positive trust climate for change
37. Mary is a new supervisor working with a preexisting staff that has resisted many of
the new policies she has put into place. She realizes that she may have overstepped
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
boundaries with the staff and has made efforts to make sure the staff knows she has
their best interests in mind. How is Mary overcoming resistance with her staff?
a. by creating a win-win situation
b. by creating urgency
c. by clearly state why the change is needed and how it will affect employees
d. by developing a positive trust climate for change
38. David is discussing changes to the smoking policy at work. Though the company as
a whole wants a work environment that is smoke-free, over half of David’s employees
prefer to smoke during their lunch breaks in the break room. After many complaints
about the new policy, David tries to appease the workers who want to smoke by
directing them to smoke outside the building in designated smoking zones, thus
minimizing their loss. How is David overcoming resistance with his staff?
a. by creating a win-win situation
b. by creating urgency
c. by clearly state why the change is needed and how it will affect employees
d. by developing a positive trust climate for change
39. Which of the major sources of resistance to change deals with what is important to
us and pertains to our sense of right and wrong to help establish priorities?
a. facts
b. beliefs
c. values
d. attitudes
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
40. Which of the following major focuses of resistance to change asks the question,
“What will I gain or lose?”
a. self
b. others
c. work environment
d. beliefs
41. Resistance to change varies in its ______.
a. intensity, attitude, and facts
b. intensity, source, and focus
c. urgency, source, and commitment
d. focus, urgency, and facts
42. Lucy has asked her staff to think of an ways for the company to gain a competitive
advantage in social media. Despite staff complaints, Lucy feels the need to take action
and has encouraged staff members to make social media a high priority in development
before another company takes the advantage. How is Mary overcoming resistance with
her staff?
a. by creating a win-win situation
b. by creating urgency
c. by clearly state why the change is needed and how it will affect employees
d. by developing a positive trust climate for change
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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43. The ______ is often responsible for organizational development throughout an
organization while the ______ is responsible for implementing an organizational change
effort.
a. change agent; human resources management department
b. human resources management department; change agent
c. change agent; process consultant
d. process consultant; human recourses management department
44. What is the commonly used method of managing planned change?
a. organizational consideration
b. creating urgency
c. organizational development
d. discontinuous change
45. Lewin’s change model includes all of the following steps, EXCEPT ______.
a. freezing
b. unfreezing
c. refreezing
d. moving
46. Diego is a manager at a local retro game shop. He has recently had to overhaul the
firm’s process of acquiring certain merchandise. In order to accomplish this new
process, the entire staff had to be retrained. Although the change was initially met with
some resistance, it is now becoming the standard within the company. At what stage in
Lewin’s change model is Diego’s game shop in?
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Lussier, Management Fundamentals 8e
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a. freezing
b. unfreezing
c. refreezing
d. moving
47. Eric is a manager at a local café. Eric frequently receives complaints about his staff
and the overall customer satisfaction is low. Eric recognizes the need for change, but
fears that his staff will be hesitant to embrace change in the culture they have created.
At what stage in Lewin’s change model is Eric’s cafe in?
a. freezing
b. unfreezing
c. refreezing
d. moving
48. Kenzie is a manager at a golf course. She frequently receives complaints about the
condition of the greens and realizes the procedure for maintaining the greens is no
longer adequate. She is currently retraining the maintenance staff to correct the
problem. At what stage in Lewin’s change model is Kenzie’s golf course in?
a. freezing
b. unfreezing
c. refreezing
d. moving
49. In which OD intervention does a change agent makes a direct recommendation for
change?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
a. direct feedback
b. large-group intervention
c. work design
d. forcefield analysis
50. Which of the following is NOT characteristic of companies with innovative cultures?
a. flexibility
b. encouragement of risk taking
c. open systems
d. a well-established change process
51. The step in Lewin’s change model that includes reducing the forces maintaining the
status quo is ______.
a. freezing
b. unfreezing
c. refreezing
d. moving
52. Identifying possible resistance to the change and planning how to overcome it
occurs during which step in Lewin’s change model?
a. freezing
b. unfreezing
c. refreezing
d. moving
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
53. Planning and implementing the change interventions occurs during which step in
Lewin’s change model?
a. freezing
b. unfreezing
c. refreezing
d. moving
54. Flowing up to ensure that the change is implemented and maintained occurs during
which step in Lewin’s change model?
a. freezing
b. unfreezing
c. refreezing
d. moving
55. The step in Lewin’s change model that includes the change process in which
employees learn new, desirable behaviors, skills, values, and attitudes is ______.
a. freezing
b. unfreezing
c. refreezing
d. moving