MGMT ch 12

According to the comprehensive approach to change, which of the following is the first step in the change process? a. Diagnosis of the root cause of change b. Planning for implementation of change c. Selection of an appropriate change technique d. Recognition of the need for change

d. Recognition of the need for change

Timeless Ventures, a renowned watch store, decides to sell electronic goods, clothes, and footwear in addition to selling watches. According to the areas of organization change, which of the following processes will Timeless Ventures have to implement to carry out this major transition? a. Business process change b. Enterprise resource change c. Organization development d. Organization divestment

a. Business process change

Which of the following is true of organization development? a. It uses behavioral science knowledge. b. It is limited to the sales department of organizations. c. It is intended to increase organizational efficiency. d. It uses enterprise resource planning.

a. It uses behavioral science knowledge Organization development (OD) is a planned effort that is organization-wide and managed from the top, intended to increase organizational effectiveness and health through planned interventions in the organization's process, using behavioral science knowledge. The theory and practice of OD are based on several very important assumptions. See 12-3: Areas of Organization Change.

_____ is any substantive modification to some part of the organization. a. Organization change b. Organization structuring c. Organization investment d. Organization planning

a. Organization change

Which of the following is true of process innovations? a. They are changes in the way products or services are manufactured, created, or distributed. b. They affect the broader context of development and do not directly affect manufacturing. c. They refer to changes in the physical characteristics of existing products or services. d. They are less important than product innovations when innovation enters the phase of growth.

a. They are changes in the way products or services are manufactured, created, or distributed.

Workers at an automobile factory demand higher pay and better benefits. This leads to a subsequent change in pay policies. This is an example of organization change due to a(n) _____. a. internal force b. planned force c. normative force d. external force

a. internal force This is an example of organization change due to an internal force. A variety of forces inside an organization may cause change. If top management revises the organization's strategy, organization change is likely to result. See 12-1: The Nature of Organization Change.

A(n) _____ is the person who actually conceives of and develops a new idea, product, or service by means of the creative process. a. inventor b. product champion c. sponsor d. product regulator

a. inventor An inventor is the person who actually conceives of and develops a new idea, product, or service by means of the creative process. An inventor may lack the expertise or motivation to oversee the transformation of the product or service from an idea into a marketable entity due to which a product champion helps overcome organizational resistance and convinces others to take the innovation seriously. See 12-4: Organizational Innovation.

A change in the distribution of authority is an example of a change in: a. organizational structure and design. b. technology and operations. c. people and attitudes. d. business process and finance.

a. organizational structure and design.

_____ are changes in the physical characteristics or performance of existing commodities or services or the creation of brand-new commodities or services. a. Process innovations b. Product innovations c. Procedural innovations d. Managerial innovations

b. Product innovations Product innovations are changes in the physical characteristics or performance of existing products or services or the creation of brand-new products or services. At first, during development, application, and launch, the physical attributes and capabilities of an innovation most affect organizational performance. See 12-4: Organizational Innovation.

_____ is the radical redesign of all aspects of a business to achieve major gains in cost, service, or time. a. Innovating b. Reengineering c. Synchronizing d. Integrating

b. Reengineering

Marina, the store manager of a store that sells women's shoes, decides to change the focus of the store to women's handbags. Following the Lewin model, which of the following should be Marina's first step? a. She should decide upon an appropriate strategy to change the focus of the store. b. She should explain to her subordinates the necessity to make the change. c. She should identify the need to change the focus of the store. d. She should reinforce and support the change.

b. She should explain to her subordinates the necessity to make the change

Which of the following is an external force that drives an organization toward change? a. Workers' attitudes toward the organization b. Technological innovations in the market c. A demand by a firm's employees for higher compensation d. Human resource policies of the organization

b. Technological innovations in the market

Rebecca decides to introduce a new discount strategy to the customers of her restaurant. Before deciding upon the strategy, she holds a meeting with her employees so that they can express their opinions and suggestions. In this scenario, Rebecca attempts to overcome her employees' resistance to change by _____. a. force-field analysis b. encouraging participation c. presenting self-interests d. the comprehensive approach model

b. encouraging participation In this scenario, Rebecca attempts to overcome her employees' resistance to change by encouraging participation. Participation is often the most effective technique for overcoming resistance to change. Employees who participate in planning and implementing a change are better able to understand the reasons for the change. See 12-2: Managing Change in Organizations.

The final step in the Lewin model is: a. unfreezing. b. refreezing. c. implementation. d. planning.

b. refreezing.

Revival Anew, a home furnishing company, decides to upgrade its wood processing machinery. This is an example of a change in the area of _____. a. people and attitudes b. technology and operations c. performance and expectations d. organizational structure and design

b. technology and operations This is an example of a change in the area of technology and operations. Technology is the conversion process used by an organization to transform inputs into outputs. An important form of technological change involves equipment. To keep pace with competitors, firms periodically find that replacing existing machinery and equipment with newer models is necessary. See 12-3: Areas of Organization Change.

_____ is the stage in which an organization takes a developed idea and uses it in the design, manufacturing, or delivery of new products, services, or processes. a. Application growth b. Application launch c. Innovation application d. Innovation maturity

c. Innovation application

Which of the following is true of force-field analysis? a. It encourages ethical compliance in an organization. b. It is used in the process of job designing. c. It helps in overcoming resistance to change. d. It is involved in the prediction of market trends.

c. It helps in overcoming resistance to change Force-field analysis can help overcome resistance to change. To facilitate the change, managers start by listing each set of forces and then trying to tip the balance so that the forces facilitating the change outweigh those hindering the change. See 12-2: Managing Change in Organizations.

_____ is a piecemeal response to circumstances as they develop. a. External change b. Internal change c. Reactive change d. Planned change

c. Reactive change Reactive change is a piecemeal response to circumstances as they develop. Because reactive change may be hurried, the potential for poorly conceived and executed change is increased. See 12-1: The Nature of Organization Change.

Diagnostic activities, third-party peacemaking, and process consultation are activities associated with: a. reengineering. b. business process change. c. organization development. d. force-field analysis.

c. organization development. Just as a physician examines patients to diagnose their current condition, an organization development (OD) diagnosis analyzes the current condition of an organization. Another approach to OD is through third-party peacemaking, which is most often used when substantial conflict exists within the organization. See 12-3: Areas of Organization Change.

Reek Row, a local café, decreases the prices of its coffees. It does this in an attempt to encourage customers to choose its café over its competitor, a neighboring coffee shop that sells coffee at lower prices. This is an example of organization change due to a(n) _____. a. normative force b. internal force c. planned force d. external force

d. external force

A year ago, Connect Inc., a telecom company, launched a cellular phone with a feature of video calling. Being the first of its kind, the product acquired sky-high profits in no time. However, in the past few months, many companies launched similar products with the same feature of video calling. Connect Inc. is now in the _____ phase of organizational innovation. a. innovation launch b. innovation growth c. innovation decline d. innovation maturity

d. innovation maturity Connect Inc. is now in the innovation maturity phase of organizational innovation. After a period of growing demand, an innovative product or service often enters a period of maturity. Innovation maturity is the stage at which most organizations in an industry have access to an innovation and are applying it in approximately the same way. See 12-4: Organizational Innovation.

Colin's Crib, a local pizza shop, sells pizza to customers who visit the store. Recently, it introduces home delivery for its customers. This is an example of a _____. a. product innovation b. technical innovation c. radical innovation d. process innovation

d. process innovation

According to the Lewin model, refreezing refers to: a. recognizing the need for change. b. leading individuals to recognize why a change is necessary. c. implementing the changes to be made. d. reinforcing a change so that it becomes a part of the system.

d. reinforcing a change so that it becomes a part of the system. The final step in the Lewin model is refreezing that involves reinforcing and supporting the change so that it becomes a part of the system. Lewin's model unfortunately lacks operational specificity. See 12-2: Managing Change in Organizations.

An example of an internal force that drives an organization toward change is: a. a change in prices of competitors' products. b. a rise in consumer demand for a company's services. c. suppliers offering new product lines. d. workers' demand for a change in working hours.

d. workers' demand for a change in working hours An example of an internal force that drives an organization toward change is workers' demand for a change in working hours. A variety of forces inside the organization may cause change. If top management revises the organization's strategy, organization change is likely to result. See 12-1: The Nature of Organization Change.