Chapter 18

T/F: Organizational development (OD) is a collection of change methods that try to improve organizational effectiveness and employee well-being.

true

T/F: Appreciative inquiry involves identifying and fixing problems.

false

T/F: Appreciative inquiry refers to a change process based on the systematic collection of data and selection of a change action based on what the analyzed data indicates.

false

T/F: Companies with dominant market share are less susceptible to the forces of change than smaller businesses.

false

T/F: Double-loop learning is an error correction process that relies on past routines and present policies.

false

T/F: Experience on the job tends to be positively related to work stress.

false

T/F: Interpersonal demands relate to pressures placed on a person as a function of the particular role he or she plays in an organization.

false

T/F: Learning organizations use single-loop learning.

false

T/F: Politics of change suggests that the impetus for change is more likely to come from inside change agents.

false

T/F: Sensitivity training emphasizes changing behavior through structured group interaction.

false

T/F: Short tenure in management is associated with innovation.

false

T/F: Social trends remain static.

false

T/F: Stressors associated with workload, pressure to complete tasks, and time urgency are examples of hindrance stressors.

false

T/F: Cooptation combines manipulation and participation.

true

T/F: Employees are more accepting of changes when they are committed to the organization as a whole.

true

T/F: Idea champions display characteristics associated with transformational leadership.

true

T/F: In the case of process consultation, the consultants do not solve the organization's problems but rather guide or coach the client to solve his or her own problems after jointly diagnosing what needs improvement.

true

T/F: Innovation is nurtured where there are slack resources.

true

T/F: Intergroup development seeks to change groups' attitudes, stereotypes, and perceptions that groups have of each other.

true

T/F: Jobs that make multiple and conflicting demands increase both stress and dissatisfaction.

true

T/F: Resistance to change can be positive if it leads to open discussion and debate.

true

________ is one way to achieve unfreezing of an organization's status quo. A) Increasing the driving forces directing behavior away from the status quo B) Incorporating a structural inertia in the structure of the organization C) Increasing employee investment in the status quo D) Decreasing management's investment in change E) Increasing the rigidity of the organizational hierarchy

A) Increasing the driving forces directing behavior away from the status quo

Who built on Lewin's three-step model to create a more detailed eight-step plan for implementing change? A) John Kotter B) David McClelland C) Douglas Surber D) Lawrence Summers E) Henry Mintzberg

A) John Kotter

________ is a collection of change methods that seek to improve organizational effectiveness and employee well-being. A) Organizational development B) Organizational polarization C) Operant conditioning D) Organizational restructuring E) Action research

A) Organizational development

Which of the following, if true, would strengthen the argument to use coercive techniques in this situation? A) The company is on a tight deadline to complete a major project for an important client. B) The company is in its lean season and work volumes are low. C) The company can afford to hire temp workers to handle the backlog and complete the work on time. D) The company's workforce is comprised of employees with highly specialized skill sets. E) Employees are demotivated because of the company's stringent work culture.

A) The company is on a tight deadline to complete a major project for an important client.

An example of change in competition is ________. A) U.S. manufactured Toyota vehicles B) collapse of Enron Corporation C) Iraq-U.S. war D) increased interest in urban living E) a decrease in interest rates

A) U.S. manufactured Toyota vehicles

Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful, but rather she sees it as her contribution to maintaining her family's equilibrium and well-being and bettering her children's future. In which country is Risa most likely employed? A) Venezuela B) United States C) Canada D) United Kingdom E) Netherlands

A) Venezuela

Rather than looking for problems, ________ seeks to identify the unique qualities and special strengths of an organization, which can then be built upon to improve performance. A) appreciative inquiry B) action research C) team building D) process consultation E) social reinforcement

A) appreciative inquiry

If individuals resisting change are included in making change decisions in an attempt to gain their support, this approach is called ________. A) cooptation B) exploitation C) arbitration D) coercion E) conciliation

A) cooptation

You have brought in the local extension agent to explain demographics and the changing nature of the area in which you live. The method for overcoming resistance that you have chosen is ________. A) education and communication B) participation C) negotiation D) manipulation and cooptation E) coercion

A) education and communication

Which of the following is an example of an organizational source of resistance to change? A) limited focus of change B) security C) fear of the unknown D) selective information processing E) habit

A) limited focus of change

During the design step of appreciative inquiry, participants ________. A) find a common vision of how the organization will look in the future B) use information from the discovery phase to speculate on possible futures C) identify the organization's strengths D) recount times they felt the organization worked best E) write action plans and develop implementation strategies

A) find a common vision of how the organization will look in the future

Elaine is very good at what she does, but she is constantly stressed by internal deadlines assigned to co-workers, obligatory meetings, and time lost in unrelated idle cubicle chatter. Today, after a meeting with her supervisor, she has been given more responsibility for her work, is able to set her own deadlines, decline attendance to various department meetings, and telecommute two days a week. Elaine's boss is using which of the following organizational strategies to reduce her stress? A) job redesign B) organizational communication C) employee involvement D) organizational development E) process reengineering

A) job redesign

After restructuring, your division has had trouble filling the open positions with appropriate candidates. The selection processes used by human resources have not yet adjusted to the new criteria required for the restructured job positions. This problem is an example of which kind of resistance to change? A) structural inertia B) limited focus of change C) group inertia D) threat to expertise E) threat to established power relationships

A) structural inertia

________ is a change process based on systematic collection of data and selection of a change action based on what the analyzed data indicate. A) Organizational development B) Action research C) Planned change D) Process consultation E) Organizational restructuring

B) Action research

________ involves correcting errors by modifying the organization's objectives, policies, and standard routines. A) Action research B) Double-loop learning C) Process reengineering D) Single-loop learning E) Organizational restructuring

B) Double-loop learning

Which of the following is the first step in Kotter's eight-step plan for implementing change? A) Create a new vision to direct the change and strategies for achieving the vision. B) Establish a sense of urgency by creating a compelling reason for why change is needed. C) Plan for, create, and reward short-term "wins" that move the organization toward the new vision. D) Form a coalition with enough power to lead the change. E) Communicate the vision throughout the organization

B) Establish a sense of urgency by creating a compelling reason for why change is needed.

Which of the following steps in Kotter's eight-step plan for implementing change represents the movement stage in Lewin's three-step model? A) Establish a sense of urgency by creating a compelling reason for why change is needed. B) Plan for, create, and reward short-term "wins" that propel the organization toward the new vision. C) Form a coalition with enough power to lead the change. D) Create a new vision to direct the change and strategies for achieving the vision. E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

B) Plan for, create, and reward short-term "wins" that propel the organization toward the new vision.

________ involves correcting errors using past routines and present policies. A) Process reengineering B) Single-loop learning C) Circular logrolling D) Double-loop learning E) Organizational restructuring

B) Single-loop learning

________ is a dynamic condition in which an individual is confronted with an opportunity, demand, or resource related to what the individual desires and for which the outcome is perceived to be both uncertain and important. A) Change B) Stress C) Innovation D) Stimulation E) Creativity

B) Stress

Which of the following tactics for overcoming resistance to change is most likely to be beneficial when employees' fear and anxiety are high? A) manipulation B) building support and commitment C) participation D) implementing changes fairly E) coercion

B) building support and commitment

"Buying off" the leaders of a resistance group by giving them a key role and seeking their advice not to find a better solution but to get their endorsement is an example of ________. A) coercion B) cooptation C) procedural fairness D) distributive bargaining E) operant conditioning

B) cooptation

Which of the following is a step in the appreciative inquiry process? A) analysis B) dreaming C) inferring D) classifying E) collaboration

B) dreaming

As a result of changing technology and unstable environment, your company is planning to undertake restructuring of the business. The employees in your company are worried about this upcoming change and many of them are anxious due to a fear that they will lose their jobs as a result of this change. But that is not the case. The company only wants to restructure its business units, and it is not planning to cut down on jobs. In such a situation, which of the following techniques is most likely to be used by your company to deal with the employees' resistance to change? A) implementing changes fairly B) education and communication C) participation D) manipulation and cooptation E) coercion

B) education and communication

Political uncertainties, economic uncertainties, and technological change are examples of the ________ factors of potential stress. A) structural B) environmental C) organizational D) personal E) social

B) environmental

Which of the following resistances to change is implicit? A) strike B) increased error C) resignation D) complaint E) work slowdown

B) increased error

Selective information processing is a major source of resistance to change. It indicates that ________. A) changes in organizational patterns may threaten the expertise of specialized groups so these groups tend to resist change B) individuals hear what they want to hear and they ignore information that challenges the world they've created C) limited changes in subsystems tend to be nullified by the larger system D) groups in the organization that control sizable resources often resist change E) even if individuals want to change their behavior, group norms may act as a constraint

B) individuals hear what they want to hear and they ignore information that challenges the world they've created

Which of the following types of jobs is least likely to create stress and reduce satisfaction? A) jobs that make multiple and conflicting demands B) jobs that provide a high level of feedback C) jobs that lack clarity about the employee's duties D) jobs that provide the employees less control over the pace of their work E) jobs that provide a low level of variety

B) jobs that provide a high level of feedback

Which of the following is one of the three steps in the Lewin's three-step change model? A) analysis B) movement C) evaluation D) dreaming E) designing

B) movement

Jerry is feeling very stressed because his boss expects a project to be delivered to the client within a very unreasonable deadline. Jerry has to work nights and weekends to make the deadline. Jerry is feeling stress due to a(n) ________ factor. A) environmental B) organizational C) economic D) structural E) personal

B) organizational

You have decided to involve the sales personnel in planning for the change and in stocking appropriate new items to sell to gardeners. The method for overcoming resistance that you have chosen is ________. A) education and communication B) participation C) negotiation D) manipulation E) coercion

B) participation

Rudolf is dealing with impending layoffs at work. Yesterday, at a pharmacy, he measured his blood pressure and it was high. He also notices that when he thinks about the future, his heart rate accelerates. Rudolf is demonstrating ________ symptoms of stress. A) psychological B) physiological C) behavioral D) personal E) reactive

B) physiological

The deemphasizing of hierarchical authority and control in organizational development is referred to as ________. A) horizontal integration B) power equalization C) trust and support D) respect for people E) vertical blending

B) power equalization

Bart has a new idea for a way to cut costs in his department, but he is not willing to share his idea with his boss because the last department head that tried new cost cutting methods was recently fired because the new methods could not achieve expected results. Based on the example, how can Bart's company improve the culture to create innovation? A) flatten the organizational structure B) reward both successes and failures C) increase the resources in Bart's department D) encourage communication between various departments E) conduct team-building activities

B) reward both successes and failures

During the dreaming step of appreciative inquiry, participants ________. A) identify the organization's strengths B) use information from the discovery phase to speculate on possible futures C) find a common vision of how the organization will look in the future D) write action plans and develop implementation strategies E) recount times they felt the organization worked best

B) use information from the discovery phase to speculate on possible futures

Organizations are increasingly adjusting their processes and positioning their products as environment friendly and sustainable in order to increase their appeal to consumers. This is a response to changes in ________. A) demographic trends B) social trends C) cultural trends D) legal requirements E) nature of the workforce

B) social trends

Idea champions display characteristics associated with ________ leadership. A) narcissistic B) transformational C) autocratic D) transactional E) laissez-faire

B) transformational

John Kotter built on Lewin's three-step model to create a more detailed approach for implementing change. Which of the following steps in Kotter's eight-step plan for implementing change represents the unfreezing stage in Lewin's three-step model? A) Plan for, create, and reward short-term "wins" that move the organization toward the new vision. B) Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. C) Create a new vision to direct the change and strategies for achieving the vision. D) Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

C) Create a new vision to direct the change and strategies for achieving the vision.

Which of the following, if true, would most strengthen the argument that Fony Corp. should upgrade its technology? A) The market for consumer electronics such as laptops, cameras, cell phones, and other similar gadgets is in the late maturity stage. B) Fony will be able to recover the cost of the new technology within eight years. C) Fony's main client account is at risk after the client had to recall nearly 2 million notebooks owing to defective batteries. D) The existing technology is currently functioning at the optimal level and the cost of maintenance is minimal. E) Fony last upgraded its technology six years ago and it has an adequate budget to fund the acquisition.

C) Fony's main client account is at risk after the client had to recall nearly 2 million notebooks owing to defective batteries.

Which of the following statements is not true regarding organizational approaches to managing stress? A) With goal-setting in the organization, individuals perform better when they have specific and challenging goals and receive feedback on their progress toward these goals. B) Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress. C) Managers should consider decreasing employee involvement in decision making because evidence clearly shows that decreases in employee empowerment reduce psychological strain. D) Increasing formal organizational communication with employees reduces uncertainty. E) Some employees need an occasional escape from the pace of their work.

C) Managers should consider decreasing employee involvement in decision making because evidence clearly shows that decreases in employee empowerment reduce psychological strain.

Benny is stressed with the new corporate reorganization. He now reports to a foreign office that has usurped many of his responsibilities, including the contract labor for his projects. Therefore, he's working with new and less qualified contractors with whom he doesn't have a relationship. However, the managers of the other departments find themselves in the same boat, and every day they are able to laugh over lunch about their new managerial impotence. ________ is helping Benny handle his stress. A) Emotional contagion B) Cognitive dissonance C) Social support D) Time management E) Self-efficacy

C) Social support

Tescra Education is an educational publishing company that provides textbooks in the area of higher education. The company has been in business for almost 20 years now and has earned substantial profits during this period. Which of the following trends, if true, would drive the company to change its business strategy? A) a rise in the cost of electronic products such as iPads and e-book readers and subscription charges for educational apps B) an upward trend in students' preference for face-to-face interaction with instructors using traditional classroom learning techniques C) a need for learning environments where students feel safe to apply the knowledge they've acquired in the classroom to real-life situations D) a decrease in the number of people going back to school to upgrade their skills, due to an economic boom E) an increase in the number of laws and regulations related to intellectual property

C) a need for learning environments where students feel safe to apply the knowledge they've acquired in the classroom to real-life situations

Excessive smoking, substance abuse, and sleep disorders are all examples of ________ symptoms of stress. A) personal B) psychological C) behavioral D) physiological E) pathological

C) behavioral

The step in the action research process where information is gathered about problems, concerns, and needed changes is known as the ________ stage. A) feedback B) evaluation C) diagnosis D) action E) prognosis

C) diagnosis

Which tactic for overcoming resistance to change basically assumes that the source of resistance lies in misinformation? A) implementing changes fairly B) participation C) education and communication D) coercion E) cooptation and manipulation

C) education and communication

Which of the following is an example of an individual source of resistance to change? A) limited focus of change B) product orientation C) fear of the unknown D) structural inertia E) employee orientation

C) fear of the unknown

Which of the following types of changes involves a new idea being applied to initiating or improving a product, process, or service? A) continuous improvement B) double-loop learning C) innovation D) process reengineering E) organizational streaming

C) innovation

Which tactic to overcome resistance to change is a relatively inexpensive way to gain the support of adversaries, but may backfire if the targets become aware of the tactic? A) negotiation B) conciliation C) manipulation D) coercion E) arbitration

C) manipulation

A paper sales company designs and offers a new method of purchasing and shipping commercial quantities of paper through its Web site. The company used to do its business through its sales representative. This is an example of a(n) ________ change.

C) planned

One of Carl's department employees was severely injured on the job. Carl has called in psychological counselors to talk to the other employees and scheduled a series of safety trainings for the department to be completed by the end of the week. He has also asked the HR personnel to talk to the department about the disability insurance that the company offers and make sure that his employees know what is available. Carl is using ________ to help cope with the stress caused by his employee's injury. A) demands B) action research C) resources D) innovation E) appreciative inquiry

C) resources

Which of the following actions can extinguish risk taking and innovation? A) long tenure in management B) encouraging experimentation C) rewarding for the absence of failures rather than for the presence of successes D) using organic organizational structures E) using an organizational structure that scores low on vertical differentiation, formalization, and centralization

C) rewarding for the absence of failures rather than for the presence of successes

Procedural fairness while implementing changes is especially important when ________. A) the organization is facing intense competition B) the employees have participated in the decision-making process C) the employees perceive the outcome as negative D) the environment in which the business operates is dynamic E) the employees are resisting the change due to group inertia

C) the employees perceive the outcome as negative

________ are persons who act as catalysts and assume the responsibility for managing refinement activities. A) Early adopters B) Free riders C) Laggards D) Change agents E) Whistle-blowers

D) Change agents

Appreciative inquiry (AI) is an organizational development technique. Which of the following statements is true regarding appreciative inquiry? A) It tries to identify discrepancies among member perceptions and solve these differences. B) It uses high-interaction group activities to increase trust and openness among team members, improve coordinative efforts, and increase team performance. C) It involves an outside consultant who helps the manager to analyze processes within his or her unit and identify what to improve and how. D) It consists of four steps including discovery, dreaming, design, and destiny. E) It seeks to change groups' attitudes, stereotypes, and perceptions about each other.

D) It consists of four steps including discovery, dreaming, design, and destiny.

Which of the following is the last step in Kotter's eight-step plan for implementing change? A) Form a coalition with enough power to lead the change. B) Establish a sense of urgency by creating a compelling reason for why change is needed. C) Communicate the vision throughout the organization. D) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success. E) Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.

D) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

________ is a method of changing behavior through unstructured group interaction. A) Action research B) Planned modification C) Process consultation D) Sensitivity training E) Psychoanalysis

D) Sensitivity training

The application of direct threats or force upon resisters is called ________. A) negotiation B) cooptation C) manipulation D) coercion E) arbitration

D) coercion

You have threatened to eliminate positions and even to close down the company if your sales personnel don't change their attitudes. The method for overcoming resistance that you have chosen is ________. A) education and communication B) participation C) negotiation D) coercion E) cooptation

D) coercion

Brian's team just had a research breakthrough. They'll need several thousands of dollars to complete the project. Brian has called a series of meetings in which he's promoting the significance of the new discovery, explaining the economic benefits that will result from the final project, and answering questions. Brian is a(n) ________ within his company. A) change agent B) arbitrator C) manipulator D) idea champion E) stress creator

D) idea champion

Management of a company threatens to close a manufacturing plant in the company whose employees are resisting an across-the-board pay cut. But this threat is actually untrue. In this case, which of the following tactics of overcoming resistance to change is being used by the management? A) procedural fairness B) negotiation C) conciliation D) manipulation E) arbitration

D) manipulation

Which of the following reactions from employees is preferable as a response to change? A) silence B) apathy C) resignation D) open discussion E) increase in the use of sick time

D) open discussion

Limited focus of change is a major source of resistance to change that originates from an organizational source. It indicates that ________. A) groups in the organization that control sizable resources often resist change B) changes in organizational patterns may threaten the expertise of specialized groups so these groups tend to resist change C) organizations have structural inertia that acts as a counterbalance to sustain stability D) organizations consist of a number of interdependent subsystems and one can't be changed without affecting the others E) even if individuals want to change their behavior, group norms may act as a constraint

D) organizations consist of a number of interdependent subsystems and one can't be changed without affecting the others

Which of the following is an organizational development technique that involves an outsider assisting a manager to identify what to improve and how? A) action research B) intergroup development C) appreciative inquiry D) process consultation E) social reinforcement

D) process consultation

Organizations have built-in mechanisms—like their selection processes and formalized regulations—to produce stability. When an organization is confronted with change, these mechanisms act as a counterbalance to sustain stability. Which of the following organizational sources of resistance to change is represented by these mechanisms? A) group inertia B) selective information processing C) employee-orientation D) structural inertia E) product- orientation

D) structural inertia

Louise is overwhelmed with the new tasks that she has been assigned after the department merger. Each day, she arrives at work and makes a list of the new tasks, writes a number next to each one according to the urgency of completion, and schedules a time to complete each one. Although she's still stressed, Louise is able to get most of the work done and feels better at the end of the day. Louise is using ________ techniques to reduce her stress. A) job enrichment B) goal setting C) relaxation D) time-management E) job enlargement

D) time-management

Which of the following statements is true regarding innovation in organizations? A) Organic structures negatively influence innovation. B) Interunit communication is low in innovative organizations. C) Short tenure in management is associated with innovation. D) Innovation is nurtured when there is an abundance of resources. E) Innovative organizations reward both successes and failures.

E) Innovative organizations reward both successes and failures.

Who developed a three-step model for change that included unfreezing, movement, and refreezing? A) John Kotter B) David McClelland C) Douglas Surber D) Lawrence Summers E) Kurt Lewin

E) Kurt Lewin

Which of the following steps in Kotter's eight-step plan for implementing change represents the refreezing stage in Lewin's three-step model? A) Plan for, create, and reward short-term "wins" that move the organization toward the new vision. B) Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. C) Create a new vision to direct the change and strategies for achieving the vision. D) Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

Which of the following, if true, would weaken the argument to use coercive techniques in this situation? A) The company cannot afford to hire temp workers to handle the backlog and complete the work on time. B) The company has taken several efforts to improve the level of employee morale and motivation. C) The company's current work volumes are quite high. D) The company recently learned that one of its clients utilizes the services of a rival content management firm. E) The company just finished its peak season, during which employees were required to work overtime and on weekends.

E) The company just finished its peak season, during which employees were required to work overtime and on weekends.

Which of the following, if true, would most weaken the argument that Fony Corp. should upgrade its technology? A) Employees fear that the new technology will render them obsolete. B) The company will be able to recover the cost of the technology within four years of implementation. C) The new technology is expected to reduce the company's overall cost of production. D) The company's main client is threatening legal action after it had to recall nearly 2 million notebooks owing to defective batteries. E) The technology which the company is considering adopting was recently developed and has not yet been successfully implemented in a real business context.

E) The technology which the company is considering adopting was recently developed and has not yet been successfully implemented in a real business context.

In order to make their firm a learning organization, managers should ________. A) increase the number of hierarchical levels in the organization B) avoid the use of cross-functional teams C) penalize mistakes D) increase the degree of departmentalization E) redesign the organizational structure

E) redesign the organizational structure

Which of the following resistances to change is overt and immediate? A) loss of loyalty B) increased absenteeism C) loss of motivation D) increased error E) complaint

E) complaint

An example of change in the nature of the workforce is an increase in ________. A) college attendance B) mergers and consolidations C) capital investment D) divorce rates E) cultural diversity

E) cultural diversity

A(n) ________ resistance to change clouds the link between the change and the reaction to it and may surface weeks, months, or even years later. A) overt B) immediate C) active D) explicit E) deferred

E) deferred

Which of the following steps of the appreciative inquiry attempts to identify what people think are the organization's strengths? A) dreaming B) destiny C) collaboration D) inferring E) discovery

E) discovery

Using covert influence to overcome resistance to change is called ________. A) negotiation B) conciliation C) education D) coercion E) manipulation

E) manipulation

It is easiest for management to deal with resistance when it is ________. A) concealed B) deferred C) passive D) implicit E) overt

E) overt

Family issues, economic problems, and personality characteristics are examples of the ________ factor of potential stress. A) social B) environmental C) structural D) psychological E) personal

E) personal

Which of the following stressors is likely to produce less strain than the other stressors? A) confusion over job responsibilities B) office politics C) lack of unity of command D) red tape E) pressure to complete tasks

E) pressure to complete tasks

Organizationally supported programs that focus on the employee's total physical and mental condition, such as helping them quit smoking or control alcohol use, are called ________ programs. A) job redesign B) relaxation C) employee involvement D) organizational development E) wellness

E) wellness