Management: A Focus on Leaders, 2e (McKee)
Chapter 7 Change: A Focus on Adaptability and Resiliency
1) Throughout human history, change has been rapid and constant.
2) Managers can typically expect to stay in their job for about five years.
3) The ability to deal with change is a critical skill in today’s world.
4) The parasympathetic nervous system is activated by negative emotional attractors.
5) Optimists perceive bad situations as welcome challenges and opportunities for learning.
6) Skipping steps is a major cause of problems in the Gestalt cycle.
7) Patagonia is a nonprofit company that promotes environmental stewardship.
8) The long tail refers to a product that appeals to a small proportion of a very large population.
9) African Americans earn 25 percent more than Whites, and 43 percent more than Latinos.
10) The regions of the world where economic growth is highest are the West and the South.
11) Bottom-up changes sometimes originate from managers.
12) Incremental approaches to change include tuning and adaptation.
13) Human beings are hardwired to notice dramatic changes more than gradual changes.
14) The Reagan administration’s erasing of the distinction between commercial and investment
banks ultimately contributed to the economic meltdown of 2008.
15) Subprime lending involves giving mortgages to individuals who wouldn’t normally qualify
for a loan.
16) Lewin’s force field analysis sees permanent change as frozen into place.
17) Vaill’s perspective sees change as the status quo that managers must face.
18) Stage 1 of Kotter’s model requires leaders to create a new strategic vision.
19) According to Shea’s model, a bomb is something that is not important, but you should spend
time with it.
20) When a worker does only what the manager orders, he is engaging in active resistance.
21) Throughout most of human history, change has been ________.
A) sudden and dramatic
B) constant and dramatic
C) gradual and infrequent
D) constant and gradual
22) Managers today typically stay in the same job for about ________ years.
A) two
B) five
C) ten
D) twenty
23) Which of the following describes the most common reaction to change?
A) fear, resentment, and anxiety
B) excitement, exhilaration
C) indifference
D) a mixture of emotions
24) Joan Snyder Kuhl of Forest Laboratories has simple advice for leading organizations through
change. What is it?
A) prioritize people
B) cater to egos
C) express all types of emotion
D) respect organizational boundaries
25) What produces optimal change when leading employees through the Gestalt cycle?
A) being aware of feelings before changing
B) conscious, continuous movement through the cycle
C) seeking employees’ trust up front
D) experimenting and taking risks
26) Patagonia is seen as special because it is a company that can make a good profit and
________.
A) dominate its market
B) appeal to people of all age groups
C) promote sustainable business practices
D) be doubtful about climate change
27) Having a diverse work force usually ________.
A) improves decision making by widening perspective
B) has no effect on decision making
C) improves decision making by narrowing perspective
D) downgrades decision making by widening perspective
28) Diversity can improve business for a company by allowing companies to develop ________.
A) mainstream markets
B) niche markets
C) lost markets
D) broad markets
29) Companies such as KFC acknowledge diversity by ________.
A) selling the same products in different markets around the world
B) selling different products that cater to different markets around the world
C) requiring managers to be multi-ethnic
D) insisting that all managers speak at least two languages
30) In marketing, the “long tail” refers to selling to an extremely ________.
A) small segment of a very large market
B) large segment of a very large market
C) small segment of a very small market
D) large segment of a moderately-sized market
31) Which is the only place in the world where the majority of the population is under 25 years
of age?
A) India and Pakistan
B) Sub-Saharan Africa
C) Brazil
D) China
32) Which group enjoys the highest average earning across occupations working full-time in the
United States?
A) Asian Americans
B) Whites
C) Latinos
D) African Americans
33) Which statement is TRUE about women’s earnings?
A) Women generally earn more money than men.
B) Asian women generally earn more money than Asian men.
C) Women generally earn about the same amount of money as men.
D) Women generally earn less money than men.
34) Women make up what fraction of the total workforce?
A) about half
B) less than half
C) a little more than half
D) about three-fifths
35) Today, the fastest growing economies are in ________.
A) Europe and North America
B) the South and West
C) Africa and South America
D) the South and East
36) After the global slowdown in 2008, growth rates in India and China ________ those in the
United States and Canada.
A) fell behind
B) were equal to
C) stayed slightly ahead of
D) stayed far ahead of
37) Which approach to change is both strategic and reactive?
A) tuning
B) adaptation
C) reorientation
D) re-creation
38) Which of the following is an incremental and anticipatory approach to change?
A) tuning
B) adaptation
C) reorientation
D) re-creation
39) General Electric used an anticipatory approach to gain a major market share in the
production of ________.
A) automobile engines
B) wind turbines
C) nuclear power plants
D) fuel-efficient cars
40) Like frogs, human beings are hardwired to take notice of ________ changes.
A) incremental
B) gradual
C) dramatic
D) extremely slow
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41) The economic crisis that began in 2007 was largely the result of a ________.
A) number of incremental changes
B) few enormous changes
C) single incremental change
D) Democratic administration
42) The Reagan administration in the 1980s contributed to the economic crisis that began in
2007 by ________.
A) initiating subprime mortgages
B) decreasing the net capital rule
C) removing many regulations for banks
D) encouraging China to underwrite U.S. debt
43) The Clinton administration in the 1990s contributed to the economic crisis that began in
2007 by ________.
A) allowing predatory lending
B) allowing commercial banks to function like investment banks
C) expanding the derivatives market
D) using low interest rates to initiate a housing boom in which prices rose far faster than income
44) Which of the following was NOT a feature of subprime lending in the housing market in
2005?
A) People took out loans that they could not afford.
B) Banks discouraged subprime lending.
C) Subprime lending made up 20 percent of the market.
D) Mortgage terms often changed after a couple of years.
45) In force field analysis, the default “normal” state is characterized by ________.
A) driving forces being equal to restraining forces
B) a constant state of change
C) driving forces being greater than restraining forces
D) driving forces being less than restraining forces
46) In force field analysis, “change” is characterized by ________.
A) driving forces being equal to restraining forces
B) driving forces being less than restraining forces
C) driving forces being greater than restraining forces
D) driving and restraining forces being balanced
47) In force field analysis, which of these takes place during the change or unfreezing stage?
A) increase driving forces
B) decrease driving forces
C) increase restraining forces
D) decrease restraining forces
48) In Peter Vaill’s view of change, the default “normal” state is characterized by ________.
A) stability
B) constant, unpredictable change
C) very small predictable changes
D) tranquility
49) In Kotter’s model of change, a leader’s first task is to ________.
A) get the right people involved in making change
B) create a strategic vision
C) convince people that there is an urgent need for change
D) communicate a vision of change to the entire organization
50) Which of the following does NOT explain why pharmaceutical companies are changing their
business model?
A) Blockbuster drugs are lucrative.
B) Blockbuster drugs take a long time to develop.
C) Patents for blockbuster drugs run out after a few years.
D) Blockbuster drugs are socially responsible.
51) Kotter’s Stage 6 builds confidence in change by ________.
A) going for long-term victories
B) carrying out short-term victories
C) using fear to motivate agents of change
D) making sure that all important people understand the change
52) In Shea’s work system model, managers ________ to affect change.
A) pull system levers
B) balance opposing forces
C) empower agents
D) offer nonmaterial rewards
53) Shea thinks that meaningful change occurs only when ________.
A) a single systemic lever is pulled
B) three or fewer systemic levers are in balance
C) four or more systemic levers are pulled
D) all eight systemic levers are in balance
54) According to Shea, spending time on something that is not critical to an organization is
termed a(n) ________.
A) focus
B) bomb
C) waste
D) ignore
55) One of the most important messages for managers from Shea’s model is to ________.
A) listen to complaints
B) know what to ignore
C) know who your friends are
D) know what your job is
56) Emotions can hijack a decision by taking control of the process that would normally be
carried out by the ________.
A) sympathetic nervous system
B) parasympathetic nervous system
C) autonomic nervous system
D) prefrontal lobe