Chapter 13 – Managing Change and InnovationTrue/False QuestionsWHAT IS CHANGE?1. Change is an organizational reality.True (easy)2. Organizational change can be alteration in people, structure, or technology.True (moderate)FORCES FOR CHANGE3. The marketplace is an external force of change.True (moderate)4. The change in demand for health care technicians is an example of an economic change.False (difficult)5. Economic changes are an internal force of change.False (moderate)6. Any manager can be a change agent.True (moderate)TWO VIEWS OF THE CHANGE PROCESS7. The "calm waters" approach to change would be consistent with Lewin's concept of unfreezing, changing,and refreezing.True (difficult)8. In the "white-water rapids" metaphor of change, managers should expect change at any time, and it may lastfor unspecified lengths of time.True (moderate)MANAGING CHANGE9. Change threatens the investment you've already made in the status quo.True (easy)10. One reason people resist change is that is substitutes ambiguity for uncertainty.False (difficult)11. The manager's options for change essentially fall into three categories: structure, technology, and product.False (difficult)12. Computerization is a technological change that replaces people with machines.False (moderate)13. Probably the most visible technology changes in recent years have come through managers’ efforts toexpand corporate financing.False (moderate)14. Sensitivity training is a method of changing behavior through unstructured group interaction.True (easy)15. Organizational cultures tend to resist change.True (moderate)16. Techniques to change people and the quality of interpersonal work relationships are termed organizationaldevelopment.True (moderate)17. Cultural change is easier when the organizational culture is strong.False (easy)18. The first step in accomplishing organizational cultural change is to initiate a reorganization.False (moderate)CONTEMPORARY ISSUES IN MANAGING CHANGE19. Cooptation refers to covert attempts to influence.False (moderate)20. Manipulation is using direct threats.False (moderate)21. A major disadvantage of coercion is that it is frequently illegal.True (moderate)22. Negotiation refers to covert attempts to influence, twisting and distorting facts or withholding information.False (moderate)23. In cooptation, an organization seeks to "buy off" the leaders of a resistance group by giving them a key rolein the change decision.True (moderate)24. Never negotiate with employees as a means of overcoming resistance to change.False (moderate)25. The first step in changing organizational culture is to conduct a cultural analysis.True (easy)26. In process reengineering, a company drastically changes its structure, technology, and people by startingfrom scratch in reexamining the way the organization's work is done.True (moderate)27. Stress is a dynamic condition a person faces when confronted with an opportunity, constraint, or demandrelated to what he or she desires and for which the outcome is perceived to be both uncertain and important.True (moderate)28. In terms of organizational factors, any attempt to lower stress levels has to begin with employee selection.True (moderate)MANAGING WORKFORCE DIVERSITY29. The Paradox of Diversity is described as situations in which limitations are placed upon diverse individualsby strong organizational cultures.True (moderate)STIMULATING INNOVATION30. Creativity is the process of taking an idea and turning it into a useful product, service, or method ofoperation.False (difficult)Multiple ChoiceA MANAGER’S DILEMMA31. According to the company profile in “A Manager’s Dilemma,” whic h of the following branded productsdoes Panamerican Beverages, Inc sell in Latin America?a.Pepsib.Coca-Cola (moderate)c.Ocean Sprayd.Gatoradee.Evian32. According to the company profile in “A Manager’s Dilemma,” Francisco Sanchez-Loaeza, Panamco’sChairman a nd CEO, attributes all of the following organizational factors as important to the company’s success EXCEPT:a.centralized management philosophy (moderate)b.logistical expertisec.innovative merchandising strategiesd.excellent financial stewardshipe.decentralized management philosophyWHAT IS CHANGE?33. Being a manager, with no environmental uncertainty or threat of competitors' new products, would besimple without any ______________.a. government regulations.b. unions.c. diversity.d. cultural differences.e. change. (moderate)FORCES FOR CHANGE34. Which of the following is not an external force of change?a. marketplaceb. government laws and regulationsc. technologyd. economic changese. work force (moderate)35. The Americans With Disabilities Act is an example of which of the following forms of environmentalchange?a. internalb. technologyc. government laws and regulations (moderate)d. labor marketse. economic36. Changing human resource activities to attract and retain health care specialists due to increased needs forthose workers is an example of what kind of environmental change factor?a. marketplaceb. technologyc. labor markets (difficult)d. economice. government laws and regulations37. Falling interest rates would most stimulate what change factor for a manager?a. marketplaceb. government laws and regulationsc. labor marketsd. economic (easy)e. technology38. Which of the following is not an internal force of change?a. technology (moderate)b. strategyc. work forced. employee attitudese. equipment39. What change factor did Harley-Davidson motorcycles react to in its turnaround of production qualitycontrol and modernization?a. technologyb. externalc. work forced. equipmente. strategy (difficult)40. Increasing the numbers of employed women and minorities forces managers to pay attention to whatchange factor?a. strategyb. work force (moderate)c. equipmentd. technologye. employee attitudes41. Labor strikes are an example of what change factor that may encourage a change in management thinkingand practices?a. work forceb. equipmentc. employee attitudes (easy)d. strategye. government laws and regulations42. In organizations, people who act as catalysts and assume responsibility for managing the change process,are called ______________.a. change masters.b. change agents. (moderate)c. operations managers.d. charismatic leaders.e. transformational leaders.43. In an organization, who is usually the change agent?a. CEOb. executive vice-presidentc. any manager or nonmanager (difficult)d. any competitore. union leaders44. In spurring organizational change, outside consultants are usually more ______________, while internalmanagers may be more ______________.a. drastic; thoughtful (moderate)b. highly paid; riskyc. resistant; boldd. cautious; friendlye. interested; scaredTWO VIEWS OF THE CHANGE PROCESS45. Lewin's theory is consistent with which view of organizational change?a. continuousb. contemporaryc. Mayo'sd. "calm waters" (moderate)e. change in the 1990s46. Who theorized the change process involving unfreezing, changing, and refreezing?a. Druckerb. Robbinsc. Lewin (easy)d. Mayoe. Lawler47. According to Kurt Lewin, which of the following is not a stage in the change process?a.unfreezingb.changingc.refreezingd.restraining (moderate)48. According to Kurt Lewin, increasing the driving forces, which direct behavior away from the status quo, isa means of doing which of the following?a. unfreezing (moderate)b. changingc. restraining forcesd. refreezinge. melting49. Which of the following terms best describes the two primary views of the change process?a. problematic, encouragedb. occasional, continuous (difficult)c. costly, conservatived. optimistic, pessimistice. reactive, proactive50. Which of the following is the objective of refreezing, according to Lewin?a. directs behavior away from the status quob. hinders movement away from existing equilibriumc. changes to a new environmentd. eliminates the need for future changee. stabilize the new situation (moderate)51. According to the text, the ______________ is consistent with uncertain and dynamic environments.a.calm-waters metaphorb.white-water rapids metaphor (moderate)c.contemporary metaphord.continuous metaphore.cultural metaphor52. A manager who comes to work every morning expecting that today will definitely bring new challengesfrom competitors, the work force, etc., views organizational change in what way?a. pragmaticb. continuous (moderate)c. pessimisticd. reactivee. occasional53. According to the text, managers in such businesses as wireless telecommunications, computer software,and women’s high-fashion clothing have long confronted the ______________.a.calm-waters metaphorb.white-water rapids metaphor (moderate)c.contemporary metaphord.continuous metaphore.cultural metaphorMANAGING CHANGE54. As ______________, managers should be motivated to initiate change because they are committed toimproving their organization's effectiveness.a. change agents (difficult)b. efficiency expertsc. manipulatorsd. process consultantse. reengineering specialists.55. Managers' options for change essentially fall into what three categories?a. environment, technology, and missionb. structure, technology, and people (difficult)c. mission, structure, and peopled. mission, environment, and processe. environment, attitudes, and processes56. Ac cording to the text, “changing structure” includes alteration in any of the following EXCEPT:a.authority relations.b.coordination mechanisms.c.degree of centralization.d.job redesign.e.technology (moderate)57. Which of the following is not a part of organizational structure?a. work specializationb. departmentalizationc. chain of commandd. formalizatione. work processes (difficult)58. If an organization increases the span of control, what factor is being focused on in an organizational change?a. structure (difficult)b. peoplec. technologyd. strategye. human resources59. A company that decides to decentralize its sales procedures is managing what change category?a. technologyb. peoplec. equipmentd. competitorse. structure (moderate)60. According to the text, competitive factors or new innovations within an industry often require managers tointroduce all of the following EXCEPT:a.new equipment.b.new tools.c.new operating methods.d.new employees (moderate)61. ______________ is a technological change that replaces people with machines.a. Operationsb. Organizational developmentc. Automation (moderate)d. Roboticse. Downsizing62. Probably the most visible technological changes in recent years have come through manager s’ efforts toexpand _____________.a.corporate financing.anizational culture.puterization.d.employee retention.63. When grocery stores installed scanners to read the product price, this was an example of managing whatchange category?a. technology (moderate)b. peoplec. competitorsd. structuree. laws and regulations64. If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work relationships,this would be an example of managing what change category?a. technologyb. people (difficult)c. competitorsd. structuree. laws and regulations65. Techniques to change people and the quality of interpersonal work relationships are termed______________.a. operations.b. organizational development. (moderate)c. downsizing.d. robotics.e. automation.66. ______________ is a method of changing behavior through unstructured group interaction.a. Survey feedbackb. Organizational developmentc. Sensitivity training (moderate)d. Process consultatione. Team building67. According to the text, an individual is likely to resist change because of all of the following reasonsEXCEPT:a.uncertainty.b.increased productivity. (easy)c.concern over personal loss.d.belief that the change is not in the organizati on’s best interest.68. Which of the following reactions to change is a threat to the investment you have already made in the statusquo?a. uncertaintyb. freezingc. change is not good for the organizationd. concern over personal loss (moderate)e. refreezing69. Which of the reasons for resistance to change may be beneficial to the organization?a. uncertaintyb. freezingc. change is not good for the organization (difficult)d. refreezinge. concern over personal loss70. All of the following are mentioned in the text as actions that managers can use to deal with resistance tochange EXCEPT:cation and communication.b.diversification (moderate)c.participation.d.facilitation and support.e.negotiation.71. Which of the following techniques for reducing resistance to change is based on the belief that, ifemployees receive the full facts and clarifications, they will no longer be resistant?a. education and communication (easy)b. participationc. facilitation and supportd. negotiatione. manipulation and cooptation72. If K-mart has employees serving on the committee to decide what color the new uniform colors should be,this is an example of what tactic for reducing change resistance?a. education and communicationb. manipulation and cooptationc. participation (easy)d. facilitation and supporte. coercion73. If a bank offers personal and financial counseling to employees prior to an upcoming downsizing, this is anexample of what kind of tactic for reducing change resistance?a. education and communicationb. coercionc. manipulation and cooptationd. negotiatione. facilitation and support (moderate)74. If management offers the union guaranteed wage hikes and a no-layoff promise in exchange for help inimplementing a new production process, this would be an example of what kind of tactic for reducing change resistance?a. participationb. facilitation and supportc. coerciond. negotiation (difficult)e. manipulation and cooptation75. If a state legislator purposely misrepresents public employee wages to the citizens in order to applydownward wage pressure in the collective bargaining process, this would be an example of what kind of tactic for reducing change resistance?a. negotiationb. coercionc. cooptationd. education and communicatione. manipulation (difficult)76. ______________ refers to covert attempts to influence, twisting and distorting facts or withholdinginformation.a. Negotiationb. Coercionc. Cooptationd. Education and communicatione. Manipulation (moderate)77. "Buying off" the leader of a resistance group in order to get his/her endorsement is an example of what kindof tactic for reducing change resistance?a. negotiationb. coercionc. education and commitmentd. cooptation (moderate)e. facilitation and support78. ______________ is using direct threats or force on those who resist change.a. Negotiationb. Coercion (moderate)c. Cooptationd. Education and communicatione. Manipulation79. A manager who threatens to ruin an employee's name in the company if he/she does not cooperate with animpending organizational change is using what kind of tactic for reducing change resistance?a. negotiationb. coercion (moderate)c. manipulation and cooptationd. education and communicatione. facilitation and supportMANAGING YOUR CAREER80. According to the boxed feature, “Managing Your Career,” all of the following are examples of means inwhich individuals can reinvent themselves EXCEPT:a.take advantage of continuing education or graduate courses at local colleges.b.sign up for workshops and seminars that can help enhance personal skills.c.depend on the organization to provide career development and training opportunities.(moderate)d.voice concerns in a constructive manner.81. Which of the following represents the relationship between organizational culture and change?a. Culture and change are naturally compatible.b. Culture tends to be very resistant to change. (moderate)c. Culture can change in months but not weeks.d. Culture can never be purposely changed.e. There is no relationship between culture and change.82. Which of the following is not a favorable situational condition that may facilitate change in organizationalculture?a. A dramatic crisis occurs.b. The culture is weak.c. Stock price sharply falls. (moderate)d. The organization is young and small.e. Leadership changes hands.83. Which of the following is the first step in accomplishing organizational cultural change?a. Appoint new leadership with a new vision.b. Initiate a reorganization.c. Conduct a cultural analysis. (moderate)d. Change the selection and socialization process.e. Introduce new stories and rituals to convey the new mission.84. Which of the following is the last step in accomplishing organizational cultural change?a. Make it clear that change is necessary to organizational survival.b. Introduce new stories and rituals to convey new vision.c. Appoint new leadership with a new vision.d. Change the selection, socialization, and reward system to support new values. (difficult)e. Initiate a reorganization.85. All of the following describe Continuous Quality Improvement EXCEPT:a. continuous, incremental change.b. fixing and improving.c. redesigning. (moderate)d. mostly "as is."e. works from bottom up in organization.86. Which of the following statements reflects the relationship between Continuous Quality Improvement (CQI)and reengineering?a. They are basically the same.b. CQI begins with reengineering.c. They are radically different. (difficult)d. Reengineering begins with TQM.e. Both require decentralized participative decision-making.87. In _____________, a company drastically changes its structure, technology, and people by starting fromscratch in reexamining the way the organization's work is done.a.process reengineeringb.Continuous Quality Improvement (moderate)c.team buildingd.structural realignment88. All of the following describe process reengineering EXCEPT:a. radical change.b. redesigning or starting over.c. mostly "what can be."d. fixing and improving. (moderate)e. initiated by top management.89. ______________ is a dynamic condition a person faces when confronted with an opportunity, constraint, ordemand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.a.Stereotypingb.Stress (moderate)c. A halo effectd.Creativity90. Which of the following is true concerning stress?a. It is a static condition.b. Stress is a negative reaction to an outside force.c. Stress is often associated with constraints and demands. (moderate)d. Stress limits performance.e. Stress has nothing to do with opportunity.91. Which of the following must be present for potential stress to become actual stress?a. uncertainty, importance (moderate)b. risk, valuationc. age, uncertaintyd. certainty, riske. pain, desire92. According to the text, stress symptoms can be grouped under any of the following three general categoriesEXCEPT:a.physiological.b.cultural (moderate)c.psychological.d.behavioral.93. Which of the following general categories of stress symptoms is least relevant to managers?a.physiological. (moderate)b.culturalc.psychological.d.behavioral.94. In terms of organizational factors, any attempt to lower stress levels has to begin with ______________.a. employee work loads.b. the reward system.c. the organizational leader.d. the organizational culture.e. employee selection. (difficult)95. Which of the following is the primary condition to reducing organizational stress?a. good job/person match (moderate)b. merit pay systemc. decentralizationd. caring and understanding managemente. fewer government laws and regulations96. Which of the following is true concerning stress that arises from an employee's personal life?a. A manager should offer advice.b. A manager who understands his/her subordinates can help control employee personal stressors.c. Management involvement may raise ethical concerns. (moderate)d. A caring manager can be the most effective counselor.e. There is nothing the organization should or can do to help relieve personal stressors. STIMULATING INNOVATION97. ______________ refers to the ability to combine ideas in a unique way or to make unusual associationsbetween ideas.a. Innovationb. Imaginationc. Creativity (moderate)d. Interpretive thinkinge. CQI98. ______________ is the process of taking a creative idea and turning it into a useful product, service, ormethod of operation.a. Innovation (moderate)b. Imaginationc. Creativityd. Interpretive thinkinge. CQIMANAGING IN AN E-BUSINESS WORLD99. According to the boxed feature, “Managing in an E-Business World,” which of the following best describesthe metaphor of the E-business world?a.calm-watersb.white-water rapids (moderate)c.contemporaryd.continuouse.cultural100. According to the boxed feature, “Managing in an E-Business World,” Tivoli Systems is a division of which of the following companies?a.General Motorsb.Microsoftc.IBM (moderate)d.Hewlett Packarde.Gateway101. Which of the following is an example of a variable that can foster innovation?a. mechanistic structureb. organic structure (difficult)c. few organizational resourcesd. low ambiguity acceptancee. low job security102. Which of the following is not a cultural value that supports innovation?a. acceptance of ambiguityb. tolerance for the impracticalc. high external controls (moderate)d. focus on ends, not meanse. open-system focus103. Which of the following human resource variables is supportive of organizational innovation?a. low commitment to trainingb. selection of Type A employeesc. high job security (moderate)d. unionizatione. long job tenure104. ______________ actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented.a.Idea champions (moderate)b.Whistle blowersc.Idea generatorsd.Idea screeners105. According to the text, all of the following are common personality characteristics of idea champions EXCEPT:a.extremely high-self-confidenceb.persistencec.energyd.risk averse (moderate)ScenariosFORCES FOR CHANGEChanging The Way (Scenario)Due to his spouse's accepting a promotion, Colin had recently left his private sector job in Kansas and accepted a new position in public service with the state of Ohio. The change had been quite a shock at first. The organizational cultures were quite different and each environment offered a different set of challenges. One new challenge Colin accepted was implementing changes into a state government system. Historically, this environment had not seen a lot of changes, and now, with the changes in Washington and the move toward privatization, change was necessary. Plus, his agency director was also new and had announced that the agency would be developing a new strategic plan. Together, Colin had been through many changes recently, and would be involved in more in the near future.106. The changes the state government was facing due to pressures put on by Washington could be referred to as a(n) ______________ force of change.a. drivingb. external (moderate)c. technologicald. internale. marketplace107. The changes Colin's agency was facing due to the new strategic plan anticipated from the new director could be referred to as a(n) ______________ force of change.a. drivingb. externalc. technologicald. internal (moderate)e. marketplace108. If Colin accepts the responsibility and acts as a catalyst for change, he could be referred to as a(n)a. change master.b. director of change.c. change agent. (each)d. change manager.e. enforcer of change.TWO VIEWS OF THE CHANGE PROCESS109. The past environment of state government, with very little change, where the status quo is considered the equilibrium state, would be consistent with all but which of the following terms?a. calm watersb. unfreezingc. refreezingd. white-water rapids (easy)e. LewinMANAGING CHANGEMaking Change Happen (Scenario)Colin was getting accustomed to his surroundings in state government. His efforts at getting people to accept change had met with a little resistance due to his and his new director's efforts and the hard work of his subordinates. But now the hard part really started, actually managing the change. What techniques could he and his agency's new director employ to most effectively implement changes that would result in increased productivity in his department? He considered changing three aspects of his agency: the structure, technology, and people.110. If the new agency director decided to remove layers in the agency and increase the span of managerial control, this would be considered changing thea. structural design.b. selection process.c. degree of centralization.d. structural components. (moderate)e. technological design.111. If the agency director decided to shift away from a functional to a product design, this would be considered changing thea. structural design. (challenging)b. selection process.c. degree of centralization.d. structural components.e. technological design.112. If Colin decided to replace some employee work time with a telephone menu system, this would be considered changing thea. organizational structure.b. technology. (moderate)c. people.d. organizational development.e. attitudes.113. Finally, Colin decided his people could benefit from ___________, a method of changing behavior through unstructured group interaction.a. survey feedbackb. sensitivity training (difficult)c. team buildingd. intergroup developmente. process consultationCONTEMPORARY ISSUES IN MANAGING CHANGEChanging Culture (Scenario)Mandy recently returned from her two-day managerial seminar, How to Totally Change Your Management and Leadership Style in Two Days. Even though she felt the seminar was worthless (as she had predicted), it did give her a chance to think about how to change the culture of her organization. She had been brought in by the new CEO as a change agent, and her position had the authority to have impact. She felt that the recent hostile takeover by their parent company had shocked everyone, especially given that the entire organization consisted of only 150 people and had been in business for only five years. She felt this might be the time to attempt the cultural change while everyone was still thinking in terms of change. As she tossed her leadership seminar manual into the wastebasket, she considered what might be her first step and how well the cultural change would work.114. Of the following, which is an advantage that Mandy has to implement cultural change?a. her new leadership skillsb. the recent purchase of her company (difficult)c. previous stable leadershipd. her managerial levele. her change agent power115. Which of the following statements is true concerning the leadership of Mandy's company and its effect on cultural change?a. New top leadership can be an advantage. (moderate)b. New top leadership is rarely an advantage.c. It is important for the cultural change to begin with employees first.d. Leadership issues have little impact on cultural change.e. Retaining the old leadership would have been preferable for cultural change.116. Which of the following statements about her company is most advantageous to Mandy as she attempts to change the cultural leadership?a. Change would be easiest with a company that is older and has a small number of employees.b. Change would be easiest in an older company with many employees.c. Small companies that are new are easiest in which to implement change. (difficult)d. Small companies that are old are easiest in which to implement change.e. In terms of cultural change, company size and age rarely matter.117. Of the following, which statement about her company's previous culture would be most advantageous to her accomplishing a change?a. A previously strong culture is receptive to change.b. A previously nonexistent culture is receptive to change.c. A moderately strong culture is receptive to change.d. A weak culture is more receptive to change. (difficult)e. An organization with multiple cultures is receptive to change.。
