Chapter 06: Managing Change, Innovation, and Entrepreneurship
Test Bank
MULTIPLE CHOICE
1. What are the types of change 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
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. 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.
Innovation
7. Research in Motion (RIM) dominated the cell phone market for several years with their popular
BlackBerry smartphone. Complacent, RIM did not feel the need to adapt to a changing cell
phone market with the introduction of the Apple iPhone. Google later entered the cell phone
market with their line of Android smartphones. Today, both Apple and Google dominate the
market with 94% of the market share while RIM holds only 2.3%. What caused RIM to lose
their dominance of the cell phone market?
a.
Technology adoption curve
b.
Technology cycles
c.
Failing to take risks
d.
Lack of customers
8. ___________ is continual improvement that takes place within the existing technology cycle.
a.
Strategic change
b.
Discontinuous change
c.
Technological change
d.
Incremental change
9. In 2006, Microsoft released the Xbox 360, which was capable of playing older Xbox games.
This is an example of __________.
a.
technology cycle
b.
next generation
c.
failing to take risk
d.
technology adoption curve
10. Two important types of innovation are _______________.
a.
technology and process
b.
product and people
c.
product and process
d.
process and people
11. ___________ is the implementation of a new idea.
a.
Concentration
b.
Creativity
c.
Entrepreneurship
d.
Innovation
12. When implementing innovative changes, one faces ______.
a.
adversity
b.
pushback
c.
risk
d.
objections
13. Amazon developed and released the Kindle TV Set-Top Box to compete with both the Apple
TV and Microsoft’s Xbox One. Which force for change is being demonstrated?
a.
Technology cycles
b.
The environment
c.
Next generation
d.
Strategy
14. According to the technology adoption curve, the first group to adopt a new technology is
referred to as __________.
a.
early adopters
b.
innovators
c.
fast movers
d.
first buyers
15. According to the technology adoption curve, the last group to adopt a new technology is
referred to as __________.
a.
late majority
b.
last movers
c.
delayers
d.
laggards
16. 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
17. 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
18. 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
19. 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
20. During discontinuous change, one should manage innovation using ____________.
a.
the generational change approach
b.
the experimental approach
c.
the compression approach
d.
the trial approach
21. 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
22. 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
23. 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
24. The four-stage change process is ______________.
a.
an ongoing process
b.
a linear process
c.
a singular cycle process
d.
a forward motion process
25. 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
26. 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 and does not like or understand this new policy. He does not
understand the need for this new policy 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
27. 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
28. ___________________ is necessary in order to implement change.
a.
Exploration
b.
Commitment
c.
Resistance
d.
Denial
29. Orchid Incorporated recently recognized that some changes needed to be implemented. Due to
this realization, 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 this is now the way things are. The stage of change being undergone here is
________________.
a.
experimentation
b.
exploration
c.
acceptance
d.
commitment
30. 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?
a.
Uncertainty
b.
Learning anxiety
c.
Self-interest
d.
Fear of loss
31. 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.
32. Which is not a major source of resistance to change?
a.
Facts
b.
Beliefs
c.
Values
d.
Attitudes
33. 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
34. What is a major focus of resistance to change?
a.
Work environment
b.
Intensity
c.
Beliefs
d.
Employees
35. 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 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
d.
Uncertainty
36. 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
37. 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
38. 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 boundaries with the
staff and has made efforts to make sure the staff knows she has their best interests in mind. She
has encouraged staff members to suggest their own ideas and emphasizes that their input is
important in making decisions. 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
39. David is discussing changes to the smoking policy at work. Though the company as a whole
wants to execute 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 these workers that want to smoke by redirecting them to smoke
outside the building in designated smoking zones. 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
40. Which of the major sources of resistance to change deals with what is important to us and
pertains to right and wrong to help establish priorities?
a.
Facts
b.
Beliefs
c.
Values
d.
Attitudes
41. 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
42. Resistance to change varies in its ______, ______, and ______.
a.
intensity, attitude, facts
b.
intensity, source, focus
c.
urgency, source, commitment
d.
focus, urgency, facts
43. Lucy has asked her staff to think of an idea for the company to have the 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
44. 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
45. What is the commonly used method of managing planned change?
a.
Organizational consideration
b.
Creating urgency
c.
Organizational development
d.
Discontinuous change
46. Lewin’s change model includes all of the following steps, except __________.
a.
Freezing
b.
Unfreezing
c.
Refreezing
d.
Moving
47. 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?
a.
Freezing
b.
Unfreezing
c.
Refreezing
d.
Moving
48. 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 a 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
49. 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
50. The first step in the comprehensive model for change is to __________.
a.
recognize the need for change
b.
plan the change interventions
c.
identify possible resistance to the change
d.
control the change
51. The last step in the comprehensive change model is to __________.
a.
implement the change interventions
b.
plan the change interventions
c.
identify possible resistance to the change
d.
control the change
52. 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
53. The step in the comprehensive model that includes identifying possible resistance to the change
and planning how to overcome it correlates to which step in Lewin’s change model?
a.
Freezing
b.
Unfreezing
c.
Refreezing
d.
Moving
54. The step in the comprehensive model that includes planning and implementing the change
interventions correlates to which step in Lewin’s change model?
a.
Freezing
b.
Unfreezing
c.
Refreezing
d.
Moving
55. The step in the comprehensive model that includes following up to ensure that the change is
implemented and maintained correlates to which step in Lewin’s change model?