53. ARI is a leading provider of sales and profit-building technology services for equipment dealers. When
Unverferth Manufacturing, a supplier of agricultural equipment wanted to change the way it supplied
information to its dealers by implementing a Web site, it contacted ARI. ARI presented the
manufacturer with a solution that allowed it to replace its paper catalogs with catalogs on CDs as well
as to create a Web site. Unverferth was able to eliminate costly paper catalogs and gain the ability to
provide up-to-the-minute information to its dealers. This incremental change that was aided by
supplier involvement was an example of the ____ approach to innovation.
a.
generational
b.
experiential
c.
milestones
d.
compression
e.
supply-side
54. It is appropriate to use a(n) ____ approach to manage innovation in more certain environments during
periods of incremental change, in which the goals are lower costs and incremental improvements in the
performance and function of the existing technological design.
a.
experiential
b.
compression
c.
prototypical
d.
milestones
e.
reinforcement
55. The goals of the compression approach to innovation are:
a.
speed, lower costs, and incremental change of dominant design
b.
the development of milestones and the comparison of actual milestones with forecasts
c.
the establishment of a dominant design and speed
d.
absolute-time management and the creation of a dominant design
e.
a matrix innovation process and a sustainable competitive advantage
56. The first step in the compression approach to innovation is:
a.
overlapping of the individual steps
b.
planning
c.
supplier involvement
d.
granting autonomy
e.
creating multifunctional teams
57. ____ are an important part of both the compression approach and the experiential approach to
innovation.
a.
Multifunctional teams
b.
Design iterations
c.
Milestones
d.
Synergistic processes
e.
Overlapping steps
58. When incremental improvements are made to a dominant technological design such that the improved
version of the technology is fully backward compatible with the older version, ____ is said to have
occurred.
a.
a milestone
b.
intuitive change
c.
generational change
d.
coercive change
e.
discontinuous innovation
59. Backward compatibility is an important consideration for software users who are using an accounting
program to facilitate their tax preparation and who want to use a newer version that has greater
capacity. Therefore, many software manufacturers engage in:
a.
coercive change
b.
dominant design manipulation
c.
generational change
d.
intuitive change
e.
incremental modification
60. Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA)
software to speed up the design cycle for its 12-row subsoiler. Which aspect of the compression
approach to innovation would the use of this software assist?
a.
planning
b.
supplier involvement
c.
shortening the time of individual steps
d.
multifunctional teams
e.
functional isolation
61. _____ occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal or
external organizational pressures that threaten their survival.
a.
Cultural demise
b.
Organizational decline
c.
Cyclical decline
d.
Organizational termination
e.
Functional termination
62. David Waters intended Honolulu-based Centaur Zone Cafe to be the prototype of an international
franchise of coffeehouses. He opened his first coffeehouse right next to Hawaii Pacific University in
October. After a slow beginning, college students found the coffeehouse, and Waters made enough to
pay the coffeehouse’s bills, but then came summer and his customers went home. But by the time
students returned, Hawaii’s poor economy was entering its seventh year of decline and the coffeehouse
was running at a net loss. Waters failed to see that a year-round business could not depend on college
students nor did he take into account the Hawaiian economy. He was in which stage of organizational
decline?
a.
blinded
b.
inaction
c.
crisis
d.
divestment
e.
dissolution
63. The first stage of organizational decline is:
a.
crisis
b.
inaction
c.
blinded
d.
faulty action
e.
dissolution
64. Thomas Cook is the operator of travel tours. Its main business is in Germany. When the German
government shortened the length of time school children were on vacation in the summer, the
profitability of the company declined. Its management failed to respond to the fact that German
parents would have fewer days to travel than before. Its recognition of this threat without taking any
action to alleviate it would have happened during the __________ stage of organizational decline.
a.
blinded
b.
inaction
c.
crisis
d.
divestment
e.
dissolution
65. David Waters intended Honolulu-based Centaur Zone Cafe to be the prototype of an international
franchise of coffeehouses. He opened his first coffeehouse right next to Hawaii Pacific University in
October. He tried several strategies to make the coffeehouse profitable, but none worked. Eleven
months later Waters entered the _____ of organizational decline and closed the coffeehouse forever.
He had underestimated the consequences of Hawaii’s worst–in-the-nation business and tax climate as
well as trying to depend on college students as his primary customers.
a.
blinded
b.
inaction
c.
crisis
d.
divestment
e.
dissolution
66. Thomas Cook is the operator of travel tours. Its main business is in Germany. When the German
government shortened the length of time school children were on vacation in the summer, the
profitability of the company declined. Its management eventually responded to the decline in German
customers by cutting the number of tours it offered to all its customers, closing some German offices,
and taking other cost-cutting measures. This action did not help the agency’s economic plight and
would have occurred in the __________ stage of organizational decline.
a.
blinded
b.
forfeited
c.
faulty action
d.
dissolution
e.
inaction
67. ICI is a British-based plastics manufacturer. Escalating raw material costs, a cyclical market, and a
labor-intensive manufacturing process caused the company to sell its petrochemical division in order
to become more profitable. This activity would have occurred in the __________ stage of
organizational decline.
a.
blinded
b.
forfeited
c.
faulty action
d.
dissolution
e.
crisis
68. The last stage of organizational decline is:
a.
dissolution
b.
inaction
c.
blinded
d.
faulty action
e.
divestment
69. Thomas Cook is the operator of travel tours. Its main business is in Germany. When the German
government shortened the length of time school children were on vacation in the summer, the
profitability of the company declined. Its management failed to recognize how this threat would
affect its German tourists during the __________ stage of organizational decline.
a.
entry
b.
crisis
c.
blinded
d.
inaction
e.
faulty action
70. From the late 1990s until 2004, Hot Topic was one of the fastest-growing and best-performing
clothing chains. Hot Topic’s problem was that while it offered shoppers a unique concept when it was
first launched, over time its merchandise became too narrowly focused on a niche market of fickle
teens. As colorful and preppy clothing returned to popularity, Hot Topic’s merchandise, which was
inspired by Goth and alternative music, did not change. Hot Topic stores are at risk of:
a.
design intervention
b.
design complacency
c.
process duplication
d.
process reengineering
e.
organizational decline
71. In the __________ stage of organizational decline, typically the only way to avoid bankruptcy or
dissolution is for the company to completely reorganize the way it does business.
a.
blinded
b.
crisis
c.
faulty action
d.
inaction
e.
divestment
72. Which of the following stages of organizational decline is typically NOT reversible?
a.
dissolution
b.
faulty action
c.
crisis
d.
panic
e.
divestment
73. Which of the following is one of the sources of resistance to change?
a.
self-interest
b.
multifunctional teams
c.
a dynamic organizational culture
d.
discontinuous innovation
e.
sustainable status quo
74. ____ forces support the status quo.
a.
Dialectical
b.
Generational
c.
Resistance
d.
Experiential
e.
Autonomous
75. According to social psychologist Kurt Lewin, ____ lead to differences in the form, quality, or
condition of an organization over time, while ____ support the status quo, that is, the existing state of
conditions in organizations.
a.
compressed changes; generational changes
b.
generational forces; resistance forces
c.
generational changes; inertial changes
d.
change forces; inertial forces
e.
change forces; resistance forces
76. Which of the following approaches will speed up change, but in the process may also fragment it?
a.
General Electric workout
b.
transition management team
c.
organizational development
d.
activity-oriented change
e.
Lewin’s change synthesis
77. Which of the following statements about resistance to change is true?
a.
Resistance to change will not occur when those affected by the change participate in its
planning and implementation.
b.
Resistance to change will not occur when employees are educated about the need for
change.
c.
Resistance to change will not occur when change efforts receive significant managerial
support.
d.
Resistance to change disappears when the organization operates in conditions of certainty.
e.
Resistance to change will always occur; it is inevitable.
78. Which of the following is one of the three steps in the basic process of managing organizational
change outlined by Kurt Lewin?
a.
unfreezing
b.
organizational dialogue
c.
change definition
d.
incremental change
e.
change mentoring
79. The three steps in the basic process of managing organizational change outlined by Kurt Lewin are:
a.
unfreezing, change intervention, and refreezing
b.
organizational change, departmental change, and individual change
c.
change definition, change motivation, and change
d.
synthesizing, motivating, and rewarding
e.
change definition, change mobilization, and change acceptance
80. The management of a large urban-based hospital wanted to increase its profits. The consulting firm
developed a plan to enhance the hospital’s profitability. In step one of this plan, clinical documentation
specialists hired by the hospital and trained by the consultants reviewed patients’ charts and posted
queries in the charts for the physicians to answer about treatment and tests conducted but physicians
refused to answer the questions because they didn’t want to lose their freedom to determine the best
treatments for their patients. Which of the following actions should be taken to overcome this
resistance to change?
a.
include the physicians in the planning and implementing decision making
b.
show the physicians how much the hospital administration supports these changes
c.
use formal power and authority to force the physicians to comply
d.
educate the physicians about why the change is needed and communicate change-related
information to them
e.
create self-mentoring units among teams of physicians
81. Which of the following is NOT one of the basic methods for managing resistance to change?
a.
education and communication
b.
participation
c.
change simulation
d.
managerial support
e.
coercion
82. When resistance to change is based on insufficient, incorrect, or misleading information, managers
should use ____ as an approach to manage resistance.
a.
education and communication
b.
participation
c.
negotiation
d.
coercion
e.
change manipulation
83. In a speech to members of the American Dental Association, William Bridges, an internationally
recognized authority on managing change in the workplace, said, “The first stage in the change process
is Endings. It is the letting go of the past and realizing that you must create endings in order to move to
new beginnings. The second stage is called the Neutral Zone. This is the place or experience you enter
when you are unsure of the future and of letting go of the past. It is an experience of limbo and
uncertainty, but with new excitement about what lies ahead. The third stage is New Beginnings. Here
you begin embracing the differences and positive aspects of change. You begin anew.” According to
Lewin, when Bridges talks about Endings he is referring to _____, and when he talks about New
Beginnings, he is referring to _____.
a.
individual change; organizational change
b.
unfreezing; change intervention
c.
refreezing; unfreezing
d.
change definition; change mobilization
e.
unfreezing; refreezing
84. The management of a large urban-based hospital wanted to increase its profits. The consulting firm
developed a plan to enhance the hospital’s profitability. In step one of this plan, clinical documentation
specialists hired by the hospital and trained by the consultants reviewed patients’ charts and posted
queries in the charts for the physicians to answer about treatment and tests conducted, but physicians
refused to answer the questions because they didn’t want to lose their freedom to determine the best
treatments for their patients. The source of this resistance to change is:
a.
self-interest
b.
multifunctional teams
c.
a dynamic organizational culture
d.
discontinuous innovation
e.
a non-sustainable status quo
85. The management of a large urban-based hospital wanted to increase its profits. The consulting firm
developed a plan to enhance the hospital’s profitability. In step one of this plan, clinical documentation
specialists hired by the hospital and trained by the consultants reviewed patients’ charts and posted
queries in the charts for the physicians to answer about treatment and tests conducted, but physicians
refused to answer the questions because they didn’t want to lose their freedom to determine the best
treatments for their patients. _____ is needed to get the physicians to believe that change is needed.
a.
Unfreezing
b.
An organizational dialogue
c.
A change definition
d.
Incremental change
e.
Change mentoring
86. Downsizing has thinned the ranks of hospital personnel. In one hospital, management was bewildered
by the high staff turnover rate, while in patient care areas each nurse had to do the work of two nurses.
Hospital employees were adamantly resisting any more change. What method could hospital
administrators use to manage this resistance?
a.
educate employees about the need for change
b.
let the employees participate in implementing the change process
c.
provide significant managerial support
d.
let employees discuss and agree on who will do what after change occurs
e.
any or all of these
87. In order to demonstrate top management’s support in overcoming resistance to change, top managers
must not only talk about the importance of change, but also:
a.
provide any necessary training
b.
provide resources as that are needed
c.
allow employees autonomy to make the change happen
d.
make necessary changes with the company’s suppliers
e.
do all of these except make necessary changes with the company’s suppliers (item d)
88. Which of the following methods for managing resistance to change should only be used as a last resort
or under crisis conditions?
a.
mentoring
b.
arbitration
c.
negotiation
d.
coercion
e.
reinforcement modification
89. According to John Kotter’s analysis of the errors managers make when leading change, the first and
potentially most serious of these errors is:
a.
not establishing a great enough sense of urgency
b.
declaring victory too soon
c.
not anchoring changes in the corporation’s culture
d.
not removing obstacles to the new vision
e.
a poorly designed organizational mission
90. When a merger of South Carolina-based Springs Industries with the Brazilian textile producer
Coteminas was announced, the CEO of Springs was quoted as saying, “It is unclear what effect this
move will have on our employees though no immediate layoffs are planned. There may be some in the
future.” To better manage the ____ stage of organizational change, the CEO would need to use
empathy and communicate specific details of the merger.
a.
change intervention
b.
the change prototype
c.
unfreezing
d.
refreezing
e.
change mobilization
91. Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. When
Valerio joined it, the company was in the basement due to poor underwriting decisions and multiple
claims from natural disasters. His vision for CIGNA was to become a top-quartile, specialist property
and casualty company. It was a radical proposition. During the organizational change, having this
vision was especially important during the ____ stage.
a.
change intervention
b.
the change prototype
c.
unfreezing
d.
refreezing
e.
change mobilization
92. Which of the following is one of the groups that John Kotter recommends be included in a core change
coalition to guide and support organizational change?
a.
board members
b.
customers
c.
union leaders
d.
employees and managers
e.
all of these
93. According to John Kotter’s analysis of the errors managers make when leading change, managers tend
to make the largest number of errors during the ____ stage of organizational change.
a.
unfreezing
b.
change
c.
refreezing
d.
initiative
e.
dissolution
94. According to John Kotter, which of the following actions will adversely influence refreezing efforts?
a.
the absence of a vision
b.
not removing obstacles to the company’s new vision
c.
not creating a powerful enough guiding coalition
d.
declaring victory too soon
e.
all of these
95. Which of the following statements describes an advantage of the results-driven change approach?
a.
It supplants the sole emphasis on activity with a focus on quickly measuring and
improving results.
b.
Managers actually test to see if changes make a difference.
c.
Quick, visible improvements motivate employees to continue to make additional changes.
d.
Managers introduce changes in policies, procedures, rules, and regulations only when they
will improve measured performance.
e.
All of these were cited as advantages of the results-driven change approach.
96. An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the
company to change its staid, risk-averse culture. Nestlé leaders relied on the Net to help them overhaul
much of what the company does—from buying raw materials to processing purchase orders to
marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to “Make
e-business the way we do business.” Nestlé USA used ____ change to reinvent the company.
a.
activity-oriented
b.
results-driven
c.
generational
d.
vision-driven
e.
resources-driven
97. ____ change focuses primarily on changing company procedures, management philosophy, or
employee behavior.
a.
Resources-oriented
b.
Activity-oriented
c.
Vision-driven
d.
Discontinuous
e.
Results-driven
98. The General Electric workout is a special kind of:
a.
activity-oriented change
b.
results-driven change
c.
generational change
d.
vision-driven change
e.
resources-driven change
99. A transition management team:
a.
contains eight to twelve members
b.
provides ways to coordinate change throughout an organization
c.
is not an extra layer of management within the changing organization
d.
is not a steering committee
e.
is accurately described by all of these
100. A(n) ____ is the individual who is formally in charge of guiding a change effort.
a.
change ombudsman
b.
staff moderator
c.
change mentor
d.
change agent
e.
intrapreneur
101. Organizational development:
a.
takes a long-range approach to change
b.
creates change by educating workers and managers to change ideas, beliefs, and behaviors
so that problems can be solved in new ways
c.
assumes that top management support is necessary for change
d.
emphasizes employee participation in all stages of the change
e.
is accurately described by all of these
102. Organizational development:
a.
requires a steering committee
b.
takes a short-term approach to change
c.
is a philosophy and collection of planned change interventions
d.
assumes that top management support is not necessary for change
e.
is accurately described by all of these
103. Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. When
Valerio joined it, the company was in the basement due to poor underwriting decisions and multiple
claims from natural disasters. His vision for CIGNA was to become a top-quartile, specialist property
and casualty company. It was a radical proposition. Valerio was a(n):
a.
change ombudsman
b.
staff moderator
c.
change mentor
d.
change agent
e.
intrapreneur
104. One of the primary responsibilities of transition management teams is to:
a.
create and monitor change budgets
b.
modify the organizational structure
c.
provide another level of managerial hierarchy
d.
create entrepreneurial synergy
e.
anticipate, identify, and address people problems
105. There are eight general steps for organizational development intervention. The first step is:
a.
pioneering
b.
inception
c.
introduction
d.
entry
e.
startup
106. Which of the following approaches is aimed at changing large systems, small groups, or individuals?
a.
General Electric workout
b.
the functional approach to change
c.
organizational development
d.
results-driven change
e.
Lewin’s change synthesis
107. Which of the following techniques is used in large-system intervention?
a.
survey feedback
b.
training
c.
team building
d.
counseling/coaching
e.
unit goal setting
108. An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the
company to change its staid, risk-averse culture. Nestlé leaders relied on the Net to help them overhaul
much of what the company does—from buying raw materials to processing purchase orders to
marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to “Make
e-business the way we do business” In terms of organizational development, the process described
here is primarily a(n) ____ intervention.
a.
unit
b.
large system
c.
unit-focused
d.
results-focused
e.
cultural
Levi Strauss
Emily Morgan is a 30-year veteran at Levi Strauss & Company. She joined the company as a secretary
in the advertising department and slowly began rising through the ranks. The more she saw how the
company worked, the more dissatisfied she became. According to Morgan, the company was
“dysfunctional” and “internally competitive, one division against another.” This is why in 1982 when
talk of reinventing the company spread through headquarters and senior management began looking
for volunteers, Morgan became a part of the change initiative. She led the team that designed the
Develop Sources process, a system for working with suppliers. In 1995, Morgan became vice president
for fulfillment, Asia. Her job was to convince Levi’s Asia suppliers to adopt more efficient production
and distribution techniques. The Asian suppliers were afraid of change. Once Morgan and her staff
showed suppliers how use of the Develop Sources program would benefit them, Morgan’s job to
transform Levi’s Asian operations became easier.