question

An effective way to deal with change is to allow grieving over the loss of old ways.

answer

true

question

People are generally comfortable with and embrace change, even change in apparently major matters.

answer

false *uncomfortable about change*

question

The marketplace is becoming more homogeneous and moving toward more similar products.

answer

false

question

Demassification refers to a trend of customer groups being segmented into smaller, specialized groups responding to narrowly targeted messages.

answer

true

question

Speed is emerging as a competitive weapon as novel fast-to-market strategies offer an important advantage.

answer

true

question

Successful large companies are more able than other firms to survive and prosper in an environment of radically innovative change.

answer

false

question

China and India are changing the way American companies work, in part, through substantial labor savings.

answer

true

question

Information is rapidly becoming the new competitive advantage.

answer

false *Information is rapidly becoming a profitless commodity, and knowledge is becoming the new competitive advantage*

question

The two types of change are practical and reactive.

answer

false *reactive and proactive.*

question

Reactive change is carefully thought-out.

answer

false *proactive change or planned change*

question

Proactive change involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities.

answer

true

question

BP handled the 2010 oil spill crisis in the Gulf of Mexico in a proactive manner.

answer

false

question

Coleman Natural Foods sold natural beef back when most shoppers were unaware of the term. This is an example of proactive change.

answer

true

question

The need for change comes solely outside from the organization

answer

false *both outside and inside the organization*

question

Employee problems are one type of outside force for change in the organization.

answer

false *The four outside forces include demographic characteristics, market changes, technological advancements, and social and political pressures.*

question

Managers' behavior is one type of inside force for change in the organization.

answer

true

question

Secondhand shops suffering from a recession-induced decline in thrift store donations is an example of an outside force for organizational change.

answer

true

question

Greenwashing is converting production to more environmentally-sensitive outputs in response to external trends in environmentalism.

answer

false *Greenwashing is making unsubstantiated or misleading claims about the environmental benefits of such products, rather than making truly green changes in response to the social changes of the environmental movement.*

question

Job dissatisfaction within an organization can be an indicator that change is need

answer

true

question

Putting an end to servant leadership is a change that is likely to improve manager-employee relationships.

answer

false

question

The four areas in which change is most apt to be needed are people, technology, structure, and strategy.

answer

true

question

People changes in an organization are not required until that organization reaches about 20 people in size, when the level of specialization reaches a critical point.

answer

false *Even in a two person organization, people changes may be required.*

question

In the context of change, technology means computer technology used to gain a competitive advantage.

answer

false *it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product.*

question

The recent structural trend is toward a taller organizational hierarchy.

answer

false *flattening the hierarchy*

question

OD focuses specifically on the technology aspects of change.

answer

false *on people in the change process*

question

A change agent is a behavioral sciences consultant who helps organizations deal with old problems in new ways.

answer

true

question

One of the primary situations in which OD is used is when adapting to mergers.

answer

true

question

OD concentrates on processes such as communication and conflict management.

answer

true

question

The three steps of the OD process are diagnosis, intervention, and adaptation.

answer

false *diagnosis, intervention, and evaluation*

question

The first step of the OD process is evaluation, which uses employee surveys, interviews, and observation to ascertain attitudes and problem areas.

answer

false *diagnosis*

question

In the OD process, feedback is used to refine the diagnosis.

answer

true

question

Intervention is the treatment phase of OD in which problems are corrected.

answer

true

question

Hard data about absenteeism, turnover, and profitability is used in the intervention stage of the OD process.

answer

false *An OD program needs objective evaluation (the last step) to see if it has done any good. Answers may lie in hard data about absenteeism, turnover, grievances, and profitability, which should be compared with earlier statistics.*

question

Patagonia was satisfied with its OD intervention to become greener.

answer

false

question

Combined interventions have been found to work better than single interventions.

answer

true

question

An OD intervention that worked in the U.S. is likely to work equally well around the world because the practices are very fundamental to human nature.

answer

false *OD effectiveness is affected by cross-cultural considerations. Thus, an OD intervention that worked in one country should not be blindly applied to a similar situation in another country.*

question

Innovation differs from creativity or invention in that it requires useful application.

answer

true

question

In a survey of U.S. corporate managers, the majority believe that their organizations could be respected for leadership in the area of innovation and creativity.

answer

false *A survey of 4,559 corporate managers in 36 industries found that U.S. executives thought their own companies gave innovation or creativity short shrift—only 4% felt their organizations could be respected for their leadership in this area.*

question

Too much knowledge and experience can kill innovation.

answer

true

question

Innovation most often happens in a "eureka" moment of epiphany.

answer

false

question

According to Berkun, the search for wealth is one of six seeds of innovation.

answer

true

question

A product innovation is a change in the way a product or service is conceived, manufactured, or disseminated.

answer

false *A process innovation*

question

Radical innovation is the creation of products, services, or technologies that replace existing ones.

answer

true

question

In 1961, Procter ; Gamble introduced the first affordable, readily-available disposable diaper called Pampers. At that time, Pampers were an example of a radical innovation.

answer

true

question

Conventional electric vehicle batteries use a liquid electrolyte but an startup is developing a solid-state lithium-ion battery with improved stability and lifetime. This is an example of incremental innovation

answer

true *An incremental innovation is the creation of products, services, or technologies that modify existing ones. Here, the battery is being modified from liquid electrolyte to solid-state.*

question

Chicago Cutlery reinstituted a sales contest with the same rules as the one that it used five years ago. This is an example of a process innovation.

answer

false *A sales contest like the one that happened five years ago is an adaptive change.*

question

Entrepreneurs tend to be tolerant of ambiguity.

answer

true

question

Most organizations experience innovation as a matter of course; it happens naturally as part of everyday business.

answer

false

question

Three ways to encourage innovation are by providing the right organizational culture, the appropriate resources, and creative talent.

answer

false *Three ways to do so are by providing (1) the right organizational culture, (2) the appropriate resources, and (3) the correct reward system.*

question

An organizational culture that celebrates failure helps foster innovation.

answer

true

question

Innovation can be fostered by withholding raises or promotions from those whose attempts to innovate are not successful.

answer

false

question

One step for fostering innovation is gaining allies by communicating your vision.

answer

true

question

The most effective way to handle rewards for innovation is to provide them at the end of a successful project.

answer

false

question

Sabotage can be a form of resistance to change in the workplace.

answer

true

question

Mistrust between change agents and employees can cause failure of well-conceived changes.

answer

true

question

Innovative change is the least threatening type of change and is therefore least likely to create resistance.

answer

false *adaptive change*

question

Adaptive change involves introducing a practice that is new to an industry.

answer

false *radically innovative change*

question

Innovative change is the introduction of a practice that is new to the organization.

answer

true

question

The most complex, costly and uncertain kind of change is known as radically innovative change.

answer

true

question

Changes in power structures that occur with administrative and technological changes are generally embraced by employees because of the new opportunities they present.

answer

false *Administrative and technological changes that threaten to alter power bases or eliminate jobs—as often happens during corporate restructurings that threaten middle-management jobs—generally trigger strong resistance.*

question

One of the reasons employees resist change is fear of the unknown.

answer

true

question

According to Lewin, for unfreezing to take place, people need to become dissatisfied with the old way of doing things.

answer

true

question

In the refreezing stage of change of Lewin's change model, employees need to be given new information, perspectives and models for behavior.

answer

false *In the changing stage, employees need to be given the tools for change: new information, new perspectives, and new models of behavior.*

question

Benchmarking is a technique that can be used in the refreezing stage of Lewin's change model.

answer

false *One technique used in Stage 1, to help unfreeze organizations, is benchmarking, a process by which a company compares its performance with that of high-performing organizations.*

question

During the refreezing stage of Lewin's change model, managers should model the change themselves, as well as coach employees and reinforce the desired behaviors.

answer

true

question

Kotter's change step of anchoring new approaches in the culture corresponds to refreezing in Lewin's model.

answer

true

question

Kotter's research reveals that management of organizational change is more essential than leadership around it.

answer

false *Kotter's research reveals that successful organizational change is 70%-90% leadership and only 10%-30% management. Senior managers are thus advised to focus on leading rather than on managing change.*

question

Which of the following is an effective way to deal with change and innovation? A. Insist on success B. Increase work rules and hierarchy C. Copy others' successes D. Have the courage to follow your ideas E. Jump right into it

answer

D

question

Which of the following is NOT a supertrend shaping the future of business? A. More niche products B. Traditional companies struggling with radically innovative change C. Information becoming a competitive advantage D. Offshore suppliers affecting U.S. business E. Faster speed-to-market

answer

C

question

A change that is made in response to arising problems or opportunities is called A. reactive change. B. incremental change. C. proactive change. D. radical change. E. process change.

answer

A

question

Which of the following is an example of a proactive change? A. Ciara's staff is unhappy about the long hours they have been working and several of them quit before Mary knows there is a problem. B. Ciara cannot get permission to hire another person until her group misses several deadlines. C. Ciara's group sent a product that was nearing its launch date back to the drawing board based on a competitor's superior new offering. D. Ciara explores improvements in bonus structures with her staff and begins to implement them prior to any serious discontent on the part of the staff. E. Ciara is constantly "putting out fires", responding to daily crises in her group.

answer

D

question

Wal-Mart's implementation of RFID, a type of technology that allows it to improve inventory tracking, is an example of a(n) ______ change. A. reactive B. incremental C. proactive D. responsive E. radical

answer

C

question

Which of the following is an example of a force for change originating outside the organization? A. Productivity issues B. Conflict management C. Structural reorganization D. Absenteeism E. Social pressures

answer

E

question

The invention of a machine to make plastic corks for wine bottles has severely affected companies that produce traditional cork. This is an example of a(n) ______ change. A. market B. social ; political C. demographic D. technological E. economic

answer

D

question

The increasing diversity of the American workforce is an example of a(n) ______ change. A. demographic B. market C. social ; political D. political E. economic

answer

A

question

Inside forces for change include which of the following? A. Domestic competition B. Turnover C. Advancements in automation D. Immigration E. Recession

answer

B

question

Arizona Pottery is having a difficult time finding inexpensive labor, which it attributes to an unfriendly climate toward Hispanics since the passage of tough illegal immigration legislation in that state. This is an example of a(n) ______ change. A. market B. employee C. social and political D. technological E. economic

answer

C

question

With the recession and the accompanying high levels of unemployment, La Russo's Italian Ice has had its choice of employees to support its growth. This is an example of a(n) ______ change. A. market B. social or political C. arbitrary D. technological E. demographic

answer

A

question

Recently many older workers who had planned to retire soon decided to keep working longer. This is an example of a(n) ______ change. A. social or political B. arbitrary C. demographic D. economic E. structural

answer

A

question

Which of the following is NOT an inside force that is an indicator for an organization that change might be needed? A. High turnover B. Excessive conflict between managers and employees C. Job dissatisfaction D. High levels of stress among employees E. Increased competition

answer

E

question

The human resource department at The Book Source has just calculated the absenteeism rate for 2010, and it is 25% higher than it was in 2008 and 2009. Managers should A. wait until the end of 2011 and see what the rate is. B. begin a major job redesign effort. C. reduce employees' work hours. D. investigate whether employees have become dissatisfied with their jobs. E. institute strict disciplinary procedures for employees who are absent.

answer

D

question

Non-managerial employees at Romero Manufacturing belong to a union. The union has come close to striking several times over the years and labor negotiations have recently been very tense. Romero likely needs to focus on changing A. values among potential customers. B. the likelihood that an acquisitions might occur. C. manufacturing processes and procedures. D. population variables. E. forces originating inside the organization.

answer

E

question

Laredo Insurance is about to install a new computer system that will change the way claims adjusters settle claims. Adjusters will be able to do the adjustment and issue the check right at the scene of the accident. Laredo most likely needs to focus on changing employee A. performance. B. skills. C. attitudes. D. management. E. perceptions.

answer

B

question

Employees might feel they are being underpaid for what they do, even if pay and benefits are superior to the competition. Here, managers must change A. the tone of the debate. B. attitudes. C. tendencies toward greed. D. perceptions. E. the facts.

answer

D

question

Which of the following is NOT an area in which change is often needed? A. Strategy B. Information C. People D. Structure E. Technology

answer

B

question

Maid to Clean is considering implementing a system that will pay the cleaning workers based on the number of completed residential jobs, coupled with satisfactory ratings on random inspections to insure quality. Managers believe that this will reduce labor costs. Maid to Clean is focusing on changing employee A. performance. B. skills. C. attitudes. D. management. E. structure.

answer

A

question

Smart Office Furnishings has had several incidents lately in which its drivers became lost when attempting deliveries. The drivers have no GPS or other access to computerized information and rely on the customers themselves for directions. Smart Office Furnishings probably needs to change its A. structure. B. people. C. technology. D. culture. E. strategy.

answer

C

question

Yoga Productions is in the process of cross-training all of its entry-level employees to be able to take phone orders or answer customer questions, and to process orders in overflow situations. The company is changing its A. people. B. skills. C. technology. D. attitudes. E. structure.

answer

B

question

Falcon Touring Bikes recently instituted cross-functional teams to develop new products. Team members are spread across the country. It is expensive and time-consuming for people to travel from their different locations to headquarters to meet. The company would benefit most from a change in ______ involving A. technology; teams meeting "virtually" through electronic media. B. structure; disbanding the teams and relying on individuals to develop products. C. culture; sending team members to conflict management courses. D. people; hiring new people in the organization at the headquarters location. E. strategy; dropping the strategy of developing new products.

answer

A

question

The record industry has been forced into a ______ change because of the prevalence and ease of illegally downloading music. A. technology B. structure C. culture D. people E. strategy

answer

E

question

The set of techniques used for implementing planned change to make people and organizations more effective is called A. corporate transformation. B. TQM. C. revitalization. D. organizational development. E. incremental innovation.

answer

D

question

Organizational development is often put into practice by a A. catalytic consultant. B. change agent. C. behavioral consultant. D. transformative consultant. E. behavioral agent.

answer

B

question

Which of the following is NOT one of the primary uses of OD? A. Improving recruitment B. Adapting to a merger C. Managing conflict D. Revitalizing an organization E. Adapting to an acquisition

answer

A

question

In which of the following situations would OD techniques be the most helpful? A. Increasing efficiency among employees in a firm B. Assisting employees in dealing with stressful situations C. Helping employees from two similar organizations work better together in a strategic alliance D. Facilitating discussion of ethical issues in preparing a company's code of ethics E. Working with the CEO to determine how to increase profitability

answer

B

question

Javier, an OD consultant, is designing a survey of employee attitudes to be given to workers at Radar Security. Javier is conducting the ______ stage of OD. A. unfreezing B. intervention C. diagnosis D. evaluation E. process consultation

answer

C

question

The question "What shall we do about the problem?" would most likely be asked during the ______ stage of OD. A. changing B. diagnosis C. adaptation D. evaluation E. intervention

answer

E

question

Shreya, an OD consultant, is working with the members of a cross-functional team to help them build cohesiveness and practice skills to function better as a team. Shreya is conducting the ______ stage of OD. A. intervention B. diagnosis C. evaluation D. changing E. adaptation

answer

A

question

Ben, an OD consultant, is visiting Rainwater Supplements a year after he assisted them in making changes to their employee incentive plan. Now he is comparing sales and turnover data from the last three years to the current year. Ben is in the ______ stage of OD. A. refreezing B. intervention C. diagnosis D. adaptation E. evaluation

answer

E

question

Which of the following circumstances is likely to increase the success of OD? A. Applying each OD intervention uniformly in international locations B. A single large intervention C. Support of top managers D. Implementing organizational change for its own sake E. Goals focused on the short term rather than the long term

answer

C

question

Cynthia Barton Rabe, a former innovation strategist for Intel, suggests that too much ______ can kill innovation. A. capital and investment B. determination and effort C. tolerance for ambiguity D. knowledge and experience E. creativity and invention

answer

D

question

Which of the following is NOT one of Scott Berkun's seeds of innovation for organizations? A. Hard work in a specific direction B. Curiosity C. Philanthropy D. Hard work with direction change E. Necessity

answer

C

question

A technological innovation is generally a(n) ______ innovation. A. adaptive B. product C. reactive D. process E. industrial

answer

B

question

A managerial innovation is generally a(n) ______ innovation. A. product B. method C. process D. adaptive E. practical

answer

C

question

A(n) ______ innovation is a change in the way a product or service is conceived, manufactured, or disseminated. A. procedural B. radical C. product D. process

answer

D

question

The management department at a local university began posting all assignments and other class materials to a course management website instead of creating a packet for students to purchase each term. This is a(n) ______ innovation. A. practice B. product C. process D. adaptive E. reactive

answer

C

question

The creation of products, services, or technologies that modify those that already exist is called ______ innovation. A. incremental B. product C. process D. radical E. adaptive

answer

A

question

Researchers working on hydrogen fuel cells hope that this could be a(n) ______ innovation, leading to a clean, renewable energy source, and reducing dependence on depleting fossil fuels with their adverse impact on the global environment. A. incremental B. product C. process D. radical

answer

D

question

Rodeo Drive Cosmetics recently introduced a new acai berry lip balm. Nikhil, director of new product development, has just reviewed the dismal results. It appears that Nikhil's team did adequate research on the product's acceptance by consumers prior to its introduction and is equally troubled. Nikhil should A. step down as director. B. fire and replace the team lead as an example to others. C. reward his team for their effort. D. ignore the product failure. E. demote the team leader.

answer

C

question

Which of the following is NOT a way to encourage innovation? A. Creating a culture that celebrates failure. B. Supporting innovation with investments of time and money. C. Rewarding successful innovations. D. Withholding raises and promotions when innovation attempts don't work out. E. Hiring top scientists, despite expense.

answer

D

question

In your efforts to gain allies and overcome employee resistance, excellent ______ will be a key to fostering innovation. A. organization B. communication C. production D. execution E. recognition

answer

D

question

Which of the following sequences best describes how a manager can foster innovation in an organization? A. Recognize problems, gain allies, overcome resistance, execute well B. Recognize problems, overcome resistance, gain allies, stabilize system C. Overcome resistance, empower employees, execute well, provide incentives D. Recognize problems, empower employees, devise solutions, execute well E. Devise solutions, reorganize, change culture, stabilize system

answer

A

question

Which of the following is NOT an interacting factor that affects the level of resistance to change? A. Longevity of the change agent B. Employee perceptions of change C. Individual differences of the change agent D. Change agent-employee relationship E. Change agent actions and inactions

answer

A

question

The reintroduction of a familiar practice within the same organization is called a(n) A. practical change. B. adaptive change. C. reactive change. D. innovative change. E. radically innovative change.

answer

B

question

Employees are likely to see an adaptive change as A. highly threatening. B. moderately threatening. C. somewhat threatening. D. least threatening. E. totally unacceptable.

answer

D

question

At Monarch Toys, employees know that during the month of December they are generally required to work different schedules, often with some overtime, to support the holiday shopping season. This is an example of a(n) ______ change. A. adaptive B. reactive C. innovative D. incremental E. radically innovative

answer

A

question

Micky, a manager in a snowboard store, is changing the work schedule of his long-term employees for the annual fall sale, the shop's busiest time. He is using the same basic schedule as last year. Micky should expect that his employees will be A. terribly upset and quit. B. terribly upset but not quit. C. moderately upset and complain. D. moderately upset but not complain. E. hardly upset, or not upset at all.

answer

E

question

A change that represents the introduction of a new practice to an organization but that is not new to the industry is called a(n) A. mimicry change. B. adaptive change. C. reactive change. D. innovative change. E. radically innovative change.

answer

D

question

An innovative change involves ______ complexity, cost, and uncertainty. A. no B. minimum C. moderate D. high E. extreme

answer

C

question

Prairie Bank has decided that tellers must rotate through a new weekend shift on Saturday afternoons since several of its competitors in the area have recently begun to offer these hours to customers. This is a(n) ______ change. A. radically innovative B. innovative C. adaptive D. proactive E. reactive

answer

B

question

Introducing a practice that is new to the industry is called a(n) ______ change. A. revolutionary B. radically innovative C. adaptive D. reactive E. innovative

answer

B

question

Lake City Documents has decided to hire enough drivers to pick up and deliver documents for their customers within two hours of a service order, hoping this practice will give them a significant advantage over the competition, none of whom have adopted such a practice. Lake City is introducing a(n) ______ change. A. reactive B. innovative C. activist D. adaptive E. radically innovative

answer

E

question

Which of the following is NOT a leading reason that employees resist change? A. Individual predisposition toward change B. Climate of mistrust C. Fear of failure D. Lack of personal ethics E. Protection of others

answer

D

question

Lewin's change model consists of A. three types: adaptive, innovative, and radically innovative B. three forces: employee characteristics, change agent characteristics, and change agent-employee relationships C. four steps: recognize problems, gain allies, overcome resistance, and execute well D. three stages: unfreezing, changing, and refreezing E. three steps: diagnosis, intervention, and evaluation

answer

D

question

During Lewin's changing stage, managers should A. reduce the barriers to change. B. give employees new models for behavior. C. reinforce the desired change. D. make employees dissatisfied with the present situation. E. encourage employees to exhibit the new change.

answer

B

question

During Lewin's refreezing stage, managers should A. make employees dissatisfied with the present way of doing things. B. give employees the tools for change. C. provide benchmarking results. D. reduce the barriers to change. E. reinforce the desired change in the employees.

answer

E

question

The process by which a company compares its performance with that of high-performing organizations is called A. reference innovation. B. competitive change. C. benchmarking. D. continuous improvement. E. radical innovation.

answer

C

question

Kotter proposed which of the following for organizational change? A. A three stage model: unfreezing, changing, and refreezing B. Three types of innovation: adaptive, innovative, and radically innovative C. Eight steps for leading organizational change D. A three step model: diagnosis, intervention, and evaluation E. Ten reasons employees resist change

answer

C

question

Which of the following is NOT an interacting factor that affects the level of resistance to change? A. Longevity of the change agent B. Employee perceptions of change C. Individual differences of the change agent D. Change agent-employee relationship E. Change agent actions and inactions

answer

A

question

The reintroduction of a familiar practice within the same organization is called a(n) A. practical change. B. adaptive change. C. reactive change. D. innovative change. E. radically innovative change.

answer

B

question

Innovation most often happens in a "eureka" moment of epiphany.

answer

false

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