MANA3335 Practice Test Ch. 7

Which type of innovation includes new products and technologies that completely replace existing products and technologies in an industry?

*Radical {Radical innovations are new products, services, or technologies developed by an organization that completely replace the existing products, services, or technologies in an industry}

As a manager, Kaia is working closely with employees to help them become accustomed to the new equipment they are using. She wants them to make these new processes part of the system. Which part of the Lewin model is Kaia using?

*Refreezing {According to the Lewin model of organization change process, the third step is refreezing, which involves reinforcing and supporting the change so that it becomes a part of the system. This is preceded by implementation}

Which of the following is an external force that drives an organization toward change?

*Technological innovations in the market {Human resource policies of the organization are an internal force}

Education and communication is a particularly useful method for overcoming which source of resistance to change?

*Uncertainty {Educating employees about the need for and the expected results of an impending change should reduce their resistance. If open communication is established and maintained during the change process, uncertainty can be minimized}

Using the comprehensive model for change, what should managers consider after they have set goals for change?

*Understanding what brought on the need for change {Managers must set goals for the change. Then managers must diagnose what brought on the need for change. Employee turnover, for example, might be caused by below-market pay, substandard working conditions, inadequate supervision, or employee dissatisfaction with benefits. Thus, although turnover may be the immediate stimulus for change, managers must understand its causes in order to make the right changes}

Which of the following would be an organizational change that would fall into the category of technology and operations?

*Work processes {Change directed at work processes reflects change in the area of technology and operations. Other changes in technology ad operations include information technology, equipment, work sequences, control systems, and enterprise resource planning}

Diagnostic activities, third-party peacemaking, and process consultation are activities associated with _____.

*organization development {Force-field analysis helps to overcome resistance to change}

In response to the Affordable Care Act, Mikel's firm had to make significant changes to the health insurance segment of its employee benefits package. This is an example of a change in the area of _____.

*organization structure and design {A change in any part of an organization's human resource management system, such as its selection criteria, its performance appraisal methods, or its compensation package, is a change in the area of organization structure and design}

Tariq has combined several departments and has made changes to the key leadership reporting relationships at his firm. This is an example of a change in the area of _____.

*organization structure and design {Changes in work processes fall within the area of technology and operations. A change in reporting relationships reflects a change in the area of organization structure and design}

After several employees complained about being underpaid, management was able to collect data from the industry to show that the firm pays a competitive wage and offers excellent benefits. In this scenario, management is trying to change _____.

*perceptions {Culture is not a factor. In this scenario, management is trying to change people's perceptions}

For years, Rabeya's purchasing department has used a cycle counting system to monitor inventory levels. Upper management has decided to convert to an automated perpetual inventory system that will reduce costs and improve accuracy. This type of organization change is known as _____.

*reengineering {This type of organization change is known as reengineering. Reengineering, or major changes in business processes, involve the redesign of internal systems to improve performance}

The final step in the Lewin model of change is _____.

*refreezing {The final step in the Lewin model of change is refreezing. Refreezing involves reinforcing and supporting the change so that it becomes a part of the system}

Sushil has purchased and installed new equipment for two of the production lines in her department. This is an example of a change in the area of _____.

*technology and operations {A change in coordination mechanisms would fall within the area of organization structure and design. A change in work processes or work activities may be necessary if new equipment is introduced or new products are manufactured. This reflects a change in the area of technology and operations}

Chartab Industries recently adopted a new enterprise resource planning (ERP) system to help with financial reporting. The company's adoption of the new ERP system reflects a change in the area of _____.

*technology and operations {Coordinated mechanisms are a subset of the types of changes found in the area of organization structure and design. Many businesses have been working to implement technological and operations change by installing and using complex and integrated software systems, called enterprise resource planning (ERP)}

Which can be a period of high economic performance for an organization?

*Application growth {Innovation application is not a period of high economic performance for an organization. Application growth is a period of high economic performance for an organization because demand for the product or service is often greater than supply}

During his performance review, Eli's manager helped him understand ways to perform better in the future and achieve some of his work-related goals. Which type of OD technique was Eli's manager using?

*Coaching {Educational activities focus on classroom training. Although such activities can be used for technical or skill-related purposes, an OD educational activity typically focuses on "sensitivity skills"—that is, it teaches people to be more considerate and understanding of the people they work with}

Which of the following is typical behavior for an organization when it resists the need for business process change?

*Consuming its own resources {All systems, including organizations, are subject to entropy—a normal process leading to system decline. An organization is behaving most typically when it maintains the status quo, does not change in sync with its environment, and starts consuming its own resources to survive}

Hassam manages a bakery, and most of the bakery's business is foot traffic. When another bakery opened its doors around the corner, Hassam saw his sales decline. He immediately began promoting daily specials to regain some of his clientele. Hassam's new marketing tactics were in response to which forces for change?

*External {In this situation, Hassam's new marketing tactics were in response to external rather than internal forces for change. Competitive conditions that influence a business's circumstances are forces that drive change from outside of the organization}

Based on the forces for change, what is a primary reason for problems that organizations face?

*Failure to anticipate or respond to change properly {It is important to keep in mind that any change in an organization may have effects extending beyond the actual area where the change is implemented}

Which type of innovation refers to a new product, service, or technology that modifies an existing one?

*Incremental {Managerial innovations refer to a change in the management process in an organization. Incremental innovations refer to a new product, service, or technology that modifies an existing one}

Dina Med Group has invented a portable device that will enable patients without access to medical facilities to monitor vital signs for multiple serious health conditions. Manufacturing of the device began last month, and Dina Med Group plans to begin product delivery within the next two weeks. Which stage of the innovation process is Dina Med in?

*Innovation application {The company is in the innovation application stage of the innovation process. The company has progressed from innovation development into production (innovation application) of the new device. It has not yet introduced the device or grown sales in the market}

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 {A technological change would arise from external forces in the organization's general environment. This change is arising from internal forces}

One area of organization change involves human resources. Which of the following is an example of a change in this area?

*A change in the skill level of a firm's workforce {A change in a firm's information technologies is not an example of a change in human resources. A third area of organization change has to do with human resources. For example, an organization might decide to change the skill level of its workforce}

What is the second stage in the organizational innovation process, where the organization uses developed ideas in the design or manufacturing of new products, services, or processes?

*Application {Application is the second stage in the organizational innovation process. Innovation application 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}

At which point in the product innovation process does a firm try to determine if customers will want to buy the innovative product or service?

*Application launch {Innovation development involves the evaluation, modification, and improvement of creative ideas. Application launch is the stage at which an organization introduces new products or services to the marketplace}

L'Meese is in the process of switching all customer orders and billing systems online. This will reduce the time needed to bill, as well as to collect payments from customers. Which type of change program is L'Meese utilizing?

*Business processes {Change in technology and operations involves the transformation of inputs into outputs}

Which of the following is least likely to cause resistance to change?

*Certainty {Different perceptions cause resistance to change. A manager may make a decision and recommend a plan for change on the basis of his or her own assessment of a situation. Others in the organization may resist the change because they do not agree}

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 {People who act in good faith to develop an innovation that simply does not work out should not be punished for failure. If they are, they will probably not be creative in the future. A punitive reward system will discourage people from taking risks and therefore reduce the organization's ability to obtain competitive advantages}

During which stage of the product and process innovation process do physical attributes and capability most affect organizational performance?

*Development {As an innovation enters the phases of growth, maturity, and decline, an organization's ability to develop process innovations, such as fine-tuning manufacturing, increasing product quality, and improving product distribution, becomes important to maintaining economic return}

Ugar manages a bakery and has seen his sales decline. He has many customers come in who are looking for gluten-free products, which he does not have. He would like to find a way to capture this market. Many also come in and want to enjoy their purchase at the store with coffee, which he does not sell. Those customers leave without making any purchases. Which of the following steps in the comprehensive change model would improve Ugar's approach and his likelihood for success?

*Diagnosis of relevant variables {Ugar effectively recognized the need for change when he saw his sales decline. The likelihood of successful change would improve if Ugar would conduct further analysis of how much he could sell if he carried gluten-free products}

The Federal Reserve lowered adjusted interest rates, making it difficult for Chartab to get the loans needed to expand certain operations. Chartab had to adjust its production and sales forecasts accordingly. In this scenario, Chartab is responding to an external force for change in which dimension?

*Economic {In the political arena, new laws may yield new production techniques that the organization needs to explore}

Pallavi is worried about how the new procedures for quality control will affect her job. Because she does not understand these new procedures, she has become very resistant to using them. What might have prevented Pallavi's reaction to this change?

*Education and communication {This scenario describes the value of education and communication in overcoming resistance to change. Educating employees about the need for and the expected results of an impending change should reduce their resistance}

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) {ERP refers to a large-scale information system for integrating and synchronizing the many activities in the extended enterprise. Companywide processes—such as materials management, production planning, order management, and financial reporting—can all be managed via ERP}

Changes in car emissions standards forced automakers to design and build more fuel-efficient vehicles. In this situation, the automakers are responding to which force for change?

*External {The sociocultural dimension, reflecting societal values, determines what kinds of products or services will be accepted in the market}

Martin's purchasing department is converting to an automated perpetual inventory system that will reduce costs and improve accuracy. Martin is aware of his employees' anxiety about the change. During the conversion, he made only the necessary changes, announced those changes well in advance, and allowed time for employees to adjust to new ways of doing things. Which technique did Martin use to overcome resistance to this change?

*Facilitation {Martin's facilitation procedures were used to reduce uncertainty and perceived threats to his employees' self-interests. For instance, making only necessary changes, announcing those changes well in advance, and allowing time for people to adjust to new ways of doing things can help reduce resistance to change}

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 {If organizations are not skilled at recognizing and evaluating opportunities, they may be overly cautious and fail to invest in innovations that later turn out to be successful for other firms}

Which of the following can be used to overcome resistance to organizational change so that employees can understand the facilitation of change will be less detrimental than the consequences of not changing?

*Force-field analysis {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 it}

Which part of the organization is least likely to be affected by change within the organization?

*Globalization {Most organization change fits into the categories of organization structure and design, technology and operations, and people. Globalization is not one of the categories of organization change}

Raul's division is moving to a new facility. Today, all employees were given supplies and told to start packing and labeling their files. Which stage of the Lewin model are they in?

*Implementation {According to the Lewin model of organization change process, the third step is refreezing, which involves reinforcing and supporting the change so that it becomes a part of the system. This scenario illustrates the second step of the Lewin model of organizational change, which is the implementation of the change itself}

What is the second step in the Lewin model of organizational change?

*Implementation {Goal setting is not a step in the model. Implementation is the second step}

At which stage in the organizational innovation process does the organization no longer maintain a competitive advantage because of a decrease in demand?

*Innovation decline {Because an organization does not maintain a competitive advantage from an innovation at maturity, there must be a continued search for competitive advantage, which usually leads new products and services to move from the creative process through innovation maturity, and finally to innovation decline. Innovation decline is the stage during which demand for an innovation decreases and substitute innovations are developed and applied}

EvruTech developed an innovative new way to deliver products to its customers. At this point, most companies in the industry have access to this delivery method and are now using it. EvruTech's innovation has reached which stage?

*Innovation maturity {Application launch is the stage at which an organization introduces new products or services to the marketplace. 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}

Why is the Lewin model of change considered to be less preferred than a comprehensive approach to change?

*It lacks operational specificity {The comprehensive approach to change takes a systems view and delineates series of specific steps that often lead to successful change}

Which of the following is true of an incremental innovation?

*It modifies existing products and processes {Incremental innovations are new products, services, or processes that modify existing ones. Firms that implement incremental innovations alter, but do not fundamentally change, competitive interaction in an industry}

Which of the following is a critical assumption of organizational development?

*It will influence individual and group behavior {Business process change requires a careful blend of top-down and bottom-up involvement. On the one hand, strong leadership is necessary, but too much involvement by top management can make the changes seem autocratic. Employee participation is also important, but too little involvement by leaders can undermine the program's importance and create a sense that top managers do not care}

The management at BigWell Industries understands the need to innovate in order to remain competitive. Unfortunately, BigWell does not have the creative personnel on staff to drive innovations, and it lacks the budget for any new hires this year. BigWell's failure to innovate can be blamed on what?

*Lack of resources {Because firms cannot pursue all innovations, they need to develop the ability to carefully evaluate innovations and to select the ones that hold the greatest potential. BigWell is willing to innovate but does not have the resources to do so}

Blain's Medical Services has had a 20 percent attrition rate in its sales department. Exit interviews reveal that many of the employees are leaving the firm due to a lack of personal and professional growth.Which of the following organization development techniques is the best approach for Blain's Medical Services to address this problem area?

*Life and career planning {Life and career planning are the best approach for Blain's Medical Services to address this problem area. Life and career planning integrates personal goals with organizational goals to align individual growth and development with the needs of the organization}

_____ change refers to any substantive modification to some part of the organization.

*Organization {Reactive change refers to a piecemeal response to circumstances as they develop}

What can an organization use to plan change and intervention in the organization's process, and manage it from the top, using behavioral science knowledge?

*Organization development {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}

Management at Azim's company has rolled out a new quality assurance process. It will be faster than the old process with little impact on actual quality. Azim feels that the new process will negatively impact product quality and will, ultimately, harm sales. Management might have been able to prevent Azim's resistance if Azim had been involved in planning and implementing the changes, rather than just notified of them. Which method of overcoming resistance would that have entailed?

*Participation {Employees who participate in planning and implementing a change are better able to understand the reasons for the change}

When creating organization change that has to do with people, what is a common focus?

*Perceptions and expectations {Change directed at job design reflects change in the area of organization structure and design. Change directed at employee performance reflects change in the area of people}

As the head of IT, Teresita is implementing one new hardware or software change each year. It is her goal to create change that is timely and orderly and that allows her to respond to future events. Which type of change is Teresita working on?

*Planned {Participation is often the most effective technique for overcoming resistance to change}

Which type of change is associated with lower risk?

*Planned {Planned change is designed and implemented in an orderly and timely fashion in anticipation of future events and therefore would be associated with fewer risks than reactive change}

According to Jinhoon's analysis, the market for products made in his plant should grow three to five percent over the next five years. To prepare for this, Jinhoon is making arrangements to expand his manufacturing facility and increase staff to meet the increased demand. Which type of change is Jinhoon implementing?

*Planned {Reactive change is a piecemeal response to circumstances as they develop}

Raphael's home building company wants to build houses on land that is currently zoned for commercial use. When he appealed to the zoning commission, they voted down the zoning change, and they requested plans and other specifications before they would make a decision. In this scenario, Raphael is responding to an external force for change in which dimension?

*Political {In the political arena, new laws may yield new production techniques that the organization needs to explore}

Sabine has developed an improved system for delivering parts to production employees when and where they need them. Which type of innovation did Sabine make?

*Process {Product innovations are changes in the physical characteristics or performance of existing products or services or the creation of brand-new products or services. Process innovations are changes in the way products or services are manufactured, created, or distributed}

Which types of innovations are changes in the way products or services are manufactured, created, or distributed?

*Process {Resource innovations are not considered organizational innovations. Process innovations are changes in the way products or services are manufactured, created, or distributed}

Which type of innovations are changes in the physical characteristics or performance of existing products or services or the creation of brand-new products or services?

*Product {Process innovations are changes in the way products or services are manufactured, created, or distributed}

What are considered to be the two most important types of technical innovations?

*Product and process {Perhaps the two most important types of technical innovations are product innovations and process 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. Process innovations are changes in the way products or services are manufactured, created, or distributed}

Which type of change has a greater potential to be poorly conceived and executed?

*Reactive {Forces for change can be internal or external. Reactive change is a piecemeal response to circumstances as they develop}

One of Bhavik's key suppliers had to close temporarily due to a fire at the plant. Because of this, Bhavik is likely to miss his production schedules, so he immediately looked for other suppliers who could supply the same parts. Which response to change did Bhavik make?

*Reactive {In this situation, Bhavik responded to external rather than internal forces for change}

Which type of change is based on developing circumstances?

*Reactive {Planned change is designed and implemented in an orderly and timely fashion in anticipation of future events}

According to the comprehensive approach to change, which of the following is the first step in the change process?

*Recognition of the need for change {Selection of an appropriate change technique is not the first step in the change process. The need for change must be recognized before selecting a technique can be done}

Which of the following represents a managerial innovation?

*Reengineering {Managerial innovations are changes in the management process by which products and services are conceived, built, and delivered to customers. Managerial innovations do not necessarily affect the physical appearance or performance of products or services directly. In effect, business process change or reengineering represent a managerial innovation}

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 {The technological dimension may yield new production techniques that the organization needs to explore}

Petra is a senior manager, and she is highly supportive of a new product being developed in the organization. Petra has provided a budget for this project, and she uses organizational politics to ensure this project is completed. Petra is playing which intrapreneurial role?

*Sponsor {A sponsor 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}

In order for change to have a realistic opportunity to succeed, what must that change be?

*Systematic and logical {Organization change is a complex phenomenon. Any change must be systematic and logical to have a realistic opportunity to succeed. To carry this off, the manager needs change}

A competitor of Avec's company just lowered its prices, and this is causing some of her long-time customers to reconsider their work relationship with her company. Which external force for change in the environment will Avec have to respond to?

*Task {The technological dimension may yield new production techniques that the organization needs to explore}

Which type of OD technique is intended to promote overall group effectiveness?

*Team building {An OD diagnosis analyzes the current condition of an organization. Team-building activities are intended to enhance the effectiveness and satisfaction of individuals who work in groups or teams and to promote overall group effectiveness}

Why should organizations avoid reactive changes when possible?

*There is an increased likelihood of poorly conceived and executed change {Internal forces for change may be reflections of external forces. Even though the force is rooted in the external environment, the organization must respond directly to the internal pressure it generates}

There has been much discussion about requiring automotive manufacturers 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 {Anke and her firm cannot stop this force for change, but they can prepare for it}

Why would managers want to implement organizational development practices within their organization?

*To eliminate the need for diagnostic activities in problem solving {OD diagnosis analyzes the current condition of an organization. Managers use questionnaires, opinion or attitude surveys, interviews, archival data, and meetings to assess various characteristics of the organization. The results of this diagnosis may generate profiles of the organization's activities, which can then be used to identify problem areas in need of correction. Another critical form of organization change is innovation. Innovation is the managed effort of an organization to develop new products or services or new uses for existing products or services}

Atmir wants to make changes to the health insurance plan his company offers. After researching plans and costs, he set up meetings to explain to leadership why these changes are necessary. Which stage of the Lewin model are they in?

*Unfreezing {According to the Lewin model, the first step in the change process is unfreezing—individuals who will be affected by the impending change must be led to recognize why the change is necessary. Refreezing is the final step in the model}

Which unique skill does a product champion usually possess?

*Where to secure resources for successful development {A product champion is usually a middle manager who learns about the project and becomes committed to it. Product champions are skilled at knowing how the organization works, whose support is needed to push the project forward, and where to go to secure the resources necessary for successful development}

Marah initiated a new quality assurance process. It will be faster than the old process with little impact on actual quality. Ozlem continues to argue against the change process because she feels that the new process will negatively impact product quality and will, ultimately, harm sales. Her resistance is based on _____.

*different perceptions {This is not the reason for resistance to change in this scenario. Ozlem is resisting the change because she does not agree with the management's assessment}

Companywide processes—such as materials management, production planning, order management, and financial reporting—can all be linked through _____.

*enterprise resource planning (ERP) {OD is an approach to the reengineering process. Companywide processes—such as materials management, production planning, order management, and financial reporting—can all be managed through ERP}

Raul and Raj have worked together on a project since the project began, and they have formed a close working relationship. Since the project was so well done, regular project meetings are no longer necessary, and monitoring the project will be given to a junior member of the team. Raul and Raj are resistant to the restructuring. Their resistance is based on _____.

*feelings of loss {This is not the reason for resistance to change in this scenario. Many changes involve altering work arrangements in ways that disrupt existing social networks. Because social relationships are important, most people resist any change that might adversely affect those relationships}

A person who develops new businesses within the context of a large organization is a(n) _____.

*intrapreneur {The inventor is the person who actually conceives of and develops the new idea, product, or service by means of the creative process. Intrapreneurs are similar to entrepreneurs except that they develop a new business in the context of a large organization}

Reactive change _____.

*is a piecemeal response to circumstances {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. Planned change is almost always preferable to reactive change}

An organization is behaving most typically when it does not change in sync with its environment, and it _____.

*maintains the status quo {Approaches to business processes include general steps in changing business processes, or reengineering. The first step is setting goals and developing a strategy for the changes}

The Lewin model of organizational change process includes refreezing, which involves _____.

*supporting the change {Notifying people of the change is part of the unfreezing step. According to the Lewin model of organization change process, the third step is refreezing, which involves reinforcing and supporting the change so that it becomes a part of the system}

Helena has been particularly resistant to the new restructuring where she works. Her department is now slightly smaller than it was before, and she feels that this will give her less influence in the company. Helena's resistance is based on _____.

*threatened self-interest {Many impending changes threaten the self-interests of some managers within the organization. A change might diminish their power or influence within the company, so they fight it}

Employees who think they may not be able to fully understand or follow new procedures may resist change because of _____.

*uncertainty {The biggest cause of employee resistance to change is uncertainty. In the face of impending change, employees may become anxious and nervous}

Amina's department has been having problems with its order fulfillment system. Orders went through three different people on the path from receipt to fulfillment. They found that if one person handled the first two steps, the process had fewer errors. When Amina made this change, she was changing the _____.

*work sequence {By combining two steps, Amina changed the work sequence. A change in work sequence may or may not accompany a change in equipment or a change in work processes. Making a change in work sequence means altering the order or sequence of the workstations involved in a particular manufacturing process}

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 an organization may cause change. As sociocultural values shift, for example, workers' attitudes toward their job may also shift—and workers may demand a change in working hours or working conditions}