Management- Chapter 12
Which of the following is an example of an organization's change in technology and operations?
adoption of new information systems
Which approach by management is best for an effective reengineering process?
balancing employee participation and leadership involvement
The key difference between managerial and process innovations is that process innovations ____.
directly affect manufacturing
Consumer tastes and preferences are ____ forces that influence an organization's product line.
external
What is a piecemeal response to circumstances as they develop?
reactive change
Ron, a manager at a hardware components manufacturing unit, has recently learned from a subordinate's report that the production rates in his firm have gone down immensely because of poor employee morale. Ron has realized that he needs to make a change in the organization that will motivate employees. Which of the following steps in the comprehensive approach to change is illustrated in the scenario?
recognizing the need for change
The radical redesign of all aspects of an organization in order to achieve major gains in cost reduction, service delivery, or reduction in order-processing time is known as ____.
reengineering
According to the Lewin model of organization change process, refreezing involves ____.
reinforcing the change so that it becomes a part of the system
Which OD approach would be used to address significant conflict that exists within an organization?
third-party peacemaking
When the top management at Venus Corp. sought to change the organization design, form more work teams, and decrease the managers' span of management, it met with great resistance from the managers. This was because the managers feared that their power within the company would decrease. The managers' reaction to change was brought about by ____.
threatened self-interests
Which of the following can help make the reengineering process more effective?
creating a sense of urgency in the organization
Which activities are aimed at analyzing the current condition of an organization through the use of questionnaires, opinion surveys, interviews, archival data, and meetings to assess the various characteristics of the organization?
diagnostic
In most change situations, there are factors that make the change process more difficult and others that seem to ease the process. The process by which a manager identifies these factors and then tries to tip the balance so that the factors facilitating the change outweigh those hindering the change is called ____.
force-field analysis
Which of the following will develop a new business in the context of a large organization?
intrapreneurs
An organization that doesn't have the time, money, or staff to pursue a creative new idea may be unable to innovate for what reason?
lack of resources
Which of the following is an organization development (OD) technique that helps employees formulate their personal goals and evaluate strategies for integrating their goals with the goals of the organization?
life and career planning
An organization is behaving most typically when it does not change in sync with its environment, and it ____.
maintains the status quo
Lately, Dharma noticed that her employees' performance levels have plummeted, and a survey conducted by the firm indicated that this was due to low employee satisfaction levels. This prompted the HR department to introduce a new incentive system in the company. This is an example of change in the area of ____.
people
When creating organization change that has to do with people, what is a common focus?
perceptions and expectations
Which type of change is associated with lower risk?
planned
What are considered to be the two most important types of technical innovations?
product and process
In the reengineering process, the first step involves ____.
setting goals and developing a strategy
Alba Inc. replaced old equipment with new and advanced production equipment in all its plants. This is an example of a change in the area of ____.
technology and operations
Which of the following is true of business process changes?
Business process change requires a careful blend of top-down and bottom-up involvement.
Which unique skill does a product champion usually possess?
knowing where to secure resources for successful development
Ramon wants to establish a culture that rewards innovative ideas. What can he do to encourage innovation in his firm?
Communicate the feeling that failure is acceptable and expected.
A change in reporting relationships within an organization is an example of change in the area of ____.
organization structure
Attempting to change the attitudes and values of a company's workforce indicates a change in the area of ____.
people
Leading Edge Software Inc. has introduced a new activity called "Group Farming" in which the company's executive groups participate in farming activities for three hours every month. This activity has been designed by the company to emphasize the importance of interdependence and coordination among its employees. Which of the following organization development techniques is the company using?
team building
Why would managers want to implement organizational development practices within their organization?
to take advantage of the skills and abilities of employees
An organization might use ____ to generate profiles of its current activities in order to identify areas in need of correction.
diagnostic activities
Inflation, the cost of living, and money supplies are all external forces for change in the ____ dimension.
economic
Which of the following can increase the chance of success when implementing the business change process?
starting the process with a new, clean slate
There has been much discussion about requiring automotive manufactures to increase the fuel efficiency of cars, as well as to increase the size of their electric vehicle fleet. Anke runs an oil drilling equipment firm, and she is following these guidelines with interest. How can Anke use this information when she is not in the automotive industry?
to anticipate external forces for change
Education and communication are particularly useful methods for overcoming which source of resistance to change?
uncertainty
When Beta Inc. acquired Redd Communications, there were rumors of staff reductions and operations closures. What was the cause for this reaction by the Redd Communications staff?
uncertainty
Which stage of the Lewin model of organization change involves managers letting people who will be affected by an impending change know the reasons for the change?
unfreezing
What are the three steps in the Lewin model of change?
unfreezing, implementing, and refreezing
Which of the following is an effective way of overcoming resistance to change?
using facilitation techniques
Why is the Lewin model of change considered to be less preferred than a comprehensive approach to change?
It lacks operational specificity.
Which of the following is true of an incremental innovation?
It modifies existing products and processes.
Managers can overcome resistance to change by ____.
announcing the change far in advance
Which can be a period of high economic performance for an organization?
application growth
In which stage of the innovation process does an organization introduce new products or services to the marketplace?
application launch
Substantive modification to some part of an organization is known as organization ____.
change
Which of the following refers to a large-scale information system for integrating and synchronizing the many activities in the extended enterprise?
enterprise resource planning (ERP)
Six months ago, top management at Omega Inc. initiated a program to improve employee morale and decrease turnover rates. It is now reviewing turnover rates to determine the effect of its initiative on the employees' morale. Which step of the comprehensive approach to change is illustrated in the scenario?
evaluation and follow-up
A force-field analysis identifies ____.
factors that facilitate and hinder organization change
Which of the following is least likely to cause resistance to change?
feelings of certainty
A company has built a new manufacturing plant to increase production. This scenario illustrates which step in the Lewin model of organization change?
implementation
According to the results of a classic study, employee participation ____.
increases productivity and satisfaction
Essentially, reengineering, which involves changes to the broad context of development without necessarily affecting the physical appearance or performance of products or services, is a(n) ____ innovation.
managerial
Diagnostic activities, third-party peacemaking, and process consultation are activities associated with ____.
organization development
A company has recently undergone a transformation from using a highly centralized approach to a much more decentralized approach for managing its operations. This change represents a change in the area of ____.
organization structure
Image LLC, an advertising company, has recently received several long-term projects from leading companies. Image has decided to switch from functional departmentalization to cross-functional work teams to be able to perform better. This is an example of change in the area of ____.
organization structure and design
Richard Inc. has been receiving complaints from its customers about the inefficiency of its customer service professionals. The company has now decided to change the recruitment criteria for this role. The new criteria place more emphasis on technical expertise. Richard Inc. is attempting to make a change in the area of ____.
organization structure and design
To overcome resistance to change, department managers met with team leaders to share information about new employee policies and procedures that it proposes to implement, and to involve them in the change process. This scenario illustrates the ____ technique, which helps reduce resistance to change.
participation
Modifying the benefits system on a yearly basis to maintain employee satisfaction is most likely to be a ____ change.
planned
Which type of change is designed and implemented in an orderly and timely fashion in anticipation of future events?
planned change
Management has selected what they think is the best technique to make a certain change at CommCorp. They are now working out the costs of this change, how it will affect the overall organization, and how best to roll it out to employees. Which step have they reached in the comprehensive approach to change?
planning for implementation
Which of the following forces for change is present in the task environment of an organization?
prices at which suppliers sell raw materials
Janelle runs a small boutique in New Orleans and has five employees working for her. Lately, she has noticed that her boutique has not been delivering customer orders on time, and she has realized that it is because of the increase in the number of customers and insufficient staff. She has decided to employ another five employees. Which step of the change process is illustrated in this scenario?
selection of an appropriate change technique
Beta LLC has decided to change its promotion and pay policies for technical people who do not wish to become managers. This will allow it to better attract and retain these types of employees. According to the comprehensive approach to change, which step of the change process is this company in?
selection of appropriate change technique
Zereth buys leather goods to sell in her shop from a supplier overseas. Recently, it was found that this supplier underpays its workers and has hazardous working conditions. As a result, many customers are refusing to buy this brand. In response, Zereth discontinued that line and replaced it with a local line. Zereth responded to external forces for change in which environment?
sociocultural
A(n) ____ is a top-level manager who approves of and supports a project. This person may fight for the budget needed to develop an idea, overcome arguments against a project, and use organizational politics to ensure the project's survival.
sponsor
Alpha Corp. has divided its business into a number of departments. This organization change is an example of change in the area of ____.
structure and design
In order for change to have a realistic opportunity to succeed, what must that change be?
systematic and logical
Which of the following is one of the assumptions on which the theory and practice of organization development (OD) are based?
The total organization and the way it is designed influence the way individuals behave within the organization.
Why should organizations avoid reactive changes when possible?
There is an increased likelihood of poorly conceived and executed change.
The normal process within an organization that leads to a system decline is known as ____.
entropy
A(n) ____ is a person who actually conceives of and develops the new idea, product, or service by means of the creative process.
inventor
An example of a force for change in the task environment of an organization is ____.
pricing strategies of competitors
When a company changes its work processes, such as changes in the sequence of workstations or assembly line processes, the change is in the area of ____.
technology and operations
Which of the following is an example of a work sequence change in a service organization?
changing the way claims are processed
According to the comprehensive approach to change, what is the second step in the change process?
establishment of goals
Gamma Corp. is planning to bring in new internal standards for all the products it manufactures. The new standards will ensure better quality and will also help the company gain a competitive advantage. However, the factors that stand in the way of the change are increased workload on employees and the need for skill development among employees. To minimize these factors that hinder the change, Gamma has decided to motivate its employees through a reward system. Which of the following concepts is illustrated in the scenario?
force-field analysis
Which type of innovation refers to a new product, service, or technology that modifies an existing one?
incremental
Apoorva believes in a functional organization structure and has begun implementing changes in the organization to match this structure. Which type of change is Apoorva creating?
internal
The top executives at Delta Inc. have decided to reorganize the corporation from product divisions into geographic sectors. This is a(n) ____ force for change.
internal
Changes in the performance of an existing service or the creation of a new one are ____ innovations.
product
Zen Electricals Inc. has internal experts who help executives learn about how others see them and improve their performance in the future. The company is using the organization development technique called ____.
coaching and counseling
Innovation ____ is the stage at which the demand for the innovation decreases and substitute innovations are developed and applied.
decline
Sales are down, and Francis knows he needs to make some changes to reverse the trend and not only bring sales up to the previous level, but actually increase them by 5% over last year. He is now trying to understand whether the downturn was caused by poor customer service, poor quality product, improper pricing, or some other factor. Which step has Francis reached in the comprehensive approach to change?
diagnosing relevant variables
Management has announced new procedures for new project launches. Stella and Dani reviewed the new procedures and compared them with current practices. While they see that the current practices could use some modifications, their assessment shows that the new procedures would be less effective and, in the long run, slow down development time and impact long-term growth. As a result, Stella and Dani are resisting this change. What is the basis of their resistance?
different perceptions
Martin is trying to adopt more automated equipment in his soda bottling facility, and workers are resisting the change. When Martin decides to hold a meeting to explain to workers how the change will be beneficial to them, he is using ____ as a means of overcoming resistance to change.
education
The top management at Phoenix Inc. planned to shift their corporate office to a facility about eight miles away from the current location. The top managers knew that their decision would meet with considerable employee resistance because it would change their commute times, and, in general, be disruptive, at least in the short term. They held a meeting with all the employees well in advance of the scheduled move to share with them the advantages of moving to the new office and the things that management would be doing to help them through the transition. This minimized the employees' resistance. Which of the following techniques of overcoming resistance is illustrated in the scenario?
education
A company has set an objective to increase its product sales by 20 percent in the next two years. According to the comprehensive approach to change, which step of the change process is this company in?
establishment of goals for the change
Based on the comprehensive approach to change, ____ is the last step in the change process.
evaluation and follow-up
Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how ____ forces lead management to make changes.
external
OSHA inspectors ruled that conditions in a production facility were hazardous and ordered the plant shut down until the company made required changes and passed a reinspection. This is an example of a(n) ____ force for change.
external
Based on the forces for change, what is a primary reason for problems that organizations face?
failure to anticipate or respond to change properly
Because Jolanta believes that each item she produces should be custom fit for each customer, she does not allow the online purchasing of her specialty clothing line. However, she now finds her sales are declining, and once-steady customers who asked for online ordering are no longer shopping with her. Which of the following is affecting Jolanta's business?
failure to recognize opportunities
As part of an announced company reorganization, Wendy's department has moved from the third floor to the second floor. Wendy does not see her coworkers on the third floor as often, and she misses their camaraderie. As a result, she has a negative attitude towards the entire reorganization. Wendy is experiencing ____, which is leading to her resistance to change.
feelings of loss
What are new products, services, or technologies developed by an organization that completely replace the existing products, services, or technologies in an industry?
radical innovations
Degan Systems was caught by surprise when new government regulations forced them to stop one of their assembly lines until certain systems were upgraded. As Degan updates the line, it must also find a way to retain both customers and employees during the transition. Degan is experiencing ____ change.
reactive
Libra Technologies Inc. frequently asks its employees to rate organizational practices and supervisor effectiveness. The company sends questionnaires to all its employees to get their insights. Which organization development is illustrated in the scenario?
survey feedback
ProDairy Inc. reduced the prices of its products to combat competitors that were selling dairy products at lower prices. This scenario illustrates a force for change present in the ____ of an organization.
task environment
A(n) ____ innovation is a change in the appearance or performance of a product or service or of the physical processes through which a product or service is manufactured.
technical
Watches.com, an online watch store, recently adopted a new enterprise resource planning (ERP) system to help keep track of the company's inventory and to deliver customers' orders on time. The company's adoption of the new ERP system reflects a change in the area of ____.
technology and operations
When organizational change involves planned alteration of work sequence or work activities, the change primarily occurs in the area of ____.
technology and operations
