Deck 7: Managing Change and Innovation

Question 1

A manager who comes to work every morning expecting that today will definitely bring new challenges from competitors, the workforce, etc., views organisational change in what way?

A)continuous
B)occasional
C)pessimistic
D)pragmatic
E)reactive

Answer 1

A

Question 2

According to the textbook, managers in such businesses as wireless telecommunications, computer software, pharmaceuticals and women's high-fashion clothing have long confronted the ________.

A)white-water rapids metaphor
B)cultural metaphor
C)contemporary metaphor
D)continuous metaphor
E)calm waters metaphor

Answer 2

A

Question 3

In the 'white-water rapids' metaphor of change, managers should expect change at any time and it may last for unspecified lengths of time.

Answer 3

True

Question 4

The manager's options for change essentially fall into three categories: structure, technology and product.

Question 5

According to Kurt Lewin, which of the following is NOT a stage in the change process?

A)refreezing
B)restraining
C)changing
D)unfreezing
E)both C and D

Question 6

Techniques to change people and the quality of interpersonal work relationships are termed 'organisational development'.

Question 7

Which of the following is the objective of refreezing, according to Lewin?

A)stabilises the new situation
B)hinders movement away from existing equilibrium
C)directs behaviour away from the status quo
D)eliminates the need for future change
E)changes to a new environment

Question 8

Probably the most visible technology changes in recent years have come through managers' efforts to expand corporate financing.

Question 9

In a short essay, describe, compare and contrast the 'calm waters' and 'white-water rapids' views of organisational change.

Question 10

The 'calm waters' approach to change would be consistent with Lewin's concept of unfreezing, changing and refreezing.

Question 11

According to the textbook, the ________ is consistent with uncertain and dynamic environments.

A)cultural metaphor
B)calm waters metaphor
C)white-water rapids metaphor
D)contemporary metaphor
E)continuous metaphor

Question 12

Which of the following terms best describes the two primary views of the change process?

A)optimistic and pessimistic
B)reactive and proactive
C)occasional and continuous
D)problematic and encouraged
E)costly and conservative

Question 13

Who theorised the change process involving unfreezing, changing and refreezing?

A)Drucker
B)Lewin
C)Robbins
D)Lawler
E)Mayo

Question 14

Lewin's theory is consistent with which view of organisational change?

A)contemporary
B)change in the 1990s
C)continuous
D)'calm waters'
E)Mayo's

Question 15

According to Kurt Lewin, increasing the driving forces, which direct behaviour away from the status quo, is a means of doing which of the following?

A)changing
B)refreezing
C)melting
D)unfreezing
E)restraining forces

Question 16

In organisations, people who act as catalysts and assume responsibility for managing the change process are called ________.

A)operations managers
B)change masters
C)change agents
D)transformational leaders
E)charismatic leaders

Question 17

Scenario-based questions: Changing the Way
Due to his spouse's accepting a promotion, Colin had recently left his private sector job in Adelaide and accepted a new position in public service in Victoria.The change had been quite a shock at first.The organisational cultures were quite different, and each environment offered a different set of challenges.One new challenge Colin accepted was implementing changes into a state government system.Historically, this environment had not seen a lot of changes and now, with the changes in Canberra and the privatisation of many government services, change was necessary.Plus, his department director was also new and had announced that the department would be developing a new strategic plan.Colin had been through many changes recently and would be involved in more in the near future.
Refer to Changing the Way (Scenario).The past environment of state government, with very little change where the status quo is considered the equilibrium state, would be consistent with ALL BUT which of the following terms?

A)Lewin
B)refreezing
C)unfreezing
D)calm waters
E)white-water rapids

Question 18

'Computerisation' is a technological change that replaces people with machines.

Question 19

In an organisation, who is usually the change agent?

A)any manager or non-manager
B)CEO
C)union leaders
D)executive vice president
E)any competitor

Question 20

Organisational change can be alteration in people, structure or technology.

Question 21

________ is a method of changing behaviour through unstructured group interaction.

A)Organisational development
B)Team building
C)Survey feedback
D)Process consultation
E)Sensitivity training

Question 22

Scenario-based questions: Making Change Happen
Colin was getting accustomed to his surroundings in state government.His efforts at getting people to accept change had met with a little resistance due to his and his new director's efforts and the hard work of his subordinates.But now the hard part had really started - actually managing the change.What techniques could he and his department's new director employ to most effectively implement changes that would result in increased productivity in his department? He considered changing three aspects of his department: the structure, technology and people.
Refer to Making Change Happen (Scenario).If the new department's director decided to remove layers in the agency and increase the span of managerial control, this would be considered changing the ________.

A)structural design
B)degree of centralisation
C)selection process
D)technological design
E)structural components

Question 23

If an organisation increases the span of control, what factor is being focused on in an organisational change?

A)strategy
B)people
C)technology
D)human resources
E)structure

Question 24

________ is a technological change that replaces people with machines.

A)Downsizing
B)Organisational development
C)Operations
D)Automation
E)Robotics

Question 25

A company that decides to decentralise its sales procedures is managing what change category?

A)structure
B)technology
C)equipment
D)people
E)competitors

Question 26

As ________, managers should be motivated to initiate change because they are committed to improving their organisation's effectiveness.

A)process consultants
B)manipulators
C)efficiency experts
D)change agents
E)reengineering specialists

Question 27

When grocery stores installed scanners to read the product price, this was an example of managing what change category?

A)laws and regulations
B)technology
C)people
D)structure
E)competitors

Question 28

In a short essay, list and discuss the three categories in which the options for management to implement change fall.

Question 29

Scenario-based questions: Changing the Way
Due to his spouse's accepting a promotion, Colin had recently left his private sector job in Adelaide and accepted a new position in public service in Victoria.The change had been quite a shock at first.The organisational cultures were quite different, and each environment offered a different set of challenges.One new challenge Colin accepted was implementing changes into a state government system.Historically, this environment had not seen a lot of changes and now, with the changes in Canberra and the privatisation of many government services, change was necessary.Plus, his department director was also new and had announced that the department would be developing a new strategic plan.Colin had been through many changes recently and would be involved in more in the near future.
Refer to Changing the Way (Scenario).If Colin accepts the responsibility and acts as a catalyst for change, he could be referred to as a(n)________.

A)change agent
B)enforcer of change
C)change manager
D)change master
E)director of change

Question 30

Techniques to change people and the quality of interpersonal work relationships are termed ________.

A)robotics
B)downsizing
C)operations
D)organisational development
E)automation

Question 31

Most early studies in management, such as Taylor and the Gilbreths, dealt with efforts aimed at ________.

A)structural design change
B)functional design change
C)cross team changing
D)structural component change
E)technological change

Question 32

Scenario-based questions: Making Change Happen
Colin was getting accustomed to his surroundings in state government.His efforts at getting people to accept change had met with a little resistance due to his and his new director's efforts and the hard work of his subordinates.But now the hard part had really started - actually managing the change.What techniques could he and his department's new director employ to most effectively implement changes that would result in increased productivity in his department? He considered changing three aspects of his department: the structure, technology and people.
Refer to Making Change Happen (Scenario).Finally, Colin decided his people could benefit from ________, a method of changing behaviour through unstructured group interaction.

A)survey feedback
B)team building
C)intergroup development
D)sensitivity training
E)process consultation

Question 33

Scenario-based questions: Making Change Happen
Colin was getting accustomed to his surroundings in state government.His efforts at getting people to accept change had met with a little resistance due to his and his new director's efforts and the hard work of his subordinates.But now the hard part had really started - actually managing the change.What techniques could he and his department's new director employ to most effectively implement changes that would result in increased productivity in his department? He considered changing three aspects of his department: the structure, technology and people.
Refer to Making Change Happen (Scenario).If the department's director decided to shift away from a functional to a product design, this would be considered changing the ________.

A)structural components
B)selection process
C)technological design
D)degree of centralisation
E)structural design

Question 34

In promoting organisational change, outside consultants are usually more ________, whereas internal managers may be more ________.

A)cautious; friendly
B)highly paid; risky
C)drastic; thoughtful
D)resistant; bold
E)interested; scared

Question 35

According to the textbook, 'changing structure' includes alteration in any of the following EXCEPT ________.

A)job redesign
B)coordination mechanisms
C)authority relations
D)technology
E)degree of centralisation

Question 36

Probably the most visible technological changes in recent years have come through managers' efforts to expand ________.

A)employee retention
B)computerisation
C)organisational culture
D)corporate financing
E)robotics

Question 37

Managers' options for change essentially fall into which three categories?

A)structure, technology and people
B)environment, technology and mission
C)environment, attitudes and processes
D)mission, structure and people
E)mission, environment and process

Question 38

According to the textbook, competitive factors or new innovations within an industry often require managers to introduce all of the following EXCEPT ________.

A)new employees
B)new equipment
C)new operating methods
D)new tools
E)both B and D

Question 39

If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work relationships, this would be an example of managing what change category?

A)laws and regulations
B)technology
C)structure
D)competitors
E)people

Question 40

Scenario-based questions: Making Change Happen
Colin was getting accustomed to his surroundings in state government.His efforts at getting people to accept change had met with a little resistance due to his and his new director's efforts and the hard work of his subordinates.But now the hard part had really started - actually managing the change.What techniques could he and his department's new director employ to most effectively implement changes that would result in increased productivity in his department? He considered changing three aspects of his department: the structure, technology and people.
Refer to Making Change Happen (Scenario).Colin decided to replace some employee work time with a telephone menu system.This would be considered changing the ________.

A)organisational structure
B)people
C)technology
D)attitudes
E)organisational development

Question 41

'Co-optation' refers to covert attempts to influence.

Question 42

'Buying off' the leader of a resistance group in order to get his/her endorsement is an example of what kind of tactic for reducing change resistance?

A)negotiation
B)co-optation
C)facilitation and support
D)coercion
E)education and commitment

Question 43

Which of the following reactions to change is a threat to the investment you have already made in the status quo?

A)change is not good for the organisation
B)freezing
C)refreezing
D)concern over personal loss
E)uncertainty

Question 44

Which of the reasons for resistance to change may be beneficial to the organisation?

A)uncertainty
B)change is not good for the organisation
C)refreezing
D)freezing
E)concern over personal loss

Question 45

'Manipulation' is using direct threats.

Question 46

All of the following are mentioned in the textbook as actions that managers can use to deal with resistance to change EXCEPT ________.

A)facilitation and support
B)diversification
C)negotiation
D)education and communication
E)participation

Question 47

A bank offering personal and financial counselling to employees prior to an upcoming downsizing is an example of what kind of tactic for reducing change resistance?

A)manipulation and co-optation
B)negotiation
C)facilitation and support
D)education and communication
E)coercion

Question 48

According to the textbook, an individual is likely to resist change because of all of the following reasons EXCEPT ________.

A)increased productivity
B)concern over personal loss
C)uncertainty
D)belief that the change is not in the organisation's best interest
E)Both A and C

Question 49

'Negotiation' refers to covert attempts to influence, twisting and distorting facts or withholding information.

Question 50

'Co-optation' is a form of both manipulation and participation.

Question 51

Qantas including employees on the committee to decide what colour the new uniform colours should be is an example of what tactic for reducing change resistance?

A)facilitation and support
B)manipulation and co-optation
C)participation
D)education and communication
E)coercion

Question 52

One reason people resist change is that it substitutes ambiguity for uncertainty.

Question 53

Change threatens the investment you have already made in the status quo.

Question 54

A state government purposely misrepresenting public employee wages to the citizens in order to apply downward wage pressure in the collective bargaining process would be an example of what kind of tactic for reducing change resistance?

A)manipulation
B)negotiation
C)education and communication
D)coercion
E)co-optation

Question 55

Management offering the union guaranteed wage hikes and a no-layoff promise in exchange for help in implementing a new production process would be an example of what kind of tactic for reducing change resistance?

A)facilitation and support
B)participation
C)coercion
D)manipulation and co-optation
E)negotiation

Question 56

________ is using direct threats or force on those who resist change.

A)Negotiation
B)Coercion
C)Co-optation
D)Manipulation
E)Education and communication

Question 57

Which of the following techniques for reducing resistance to change is based on the belief that, if employees receive the full facts and clarifications, they will no longer be resistant?

A)participation
B)manipulation and co-optation
C)negotiation
D)facilitation and support
E)education and communication

Question 58

A major disadvantage of coercion is that it is frequently illegal.

Question 59

________ refers to covert attempts to influence, twisting and distorting facts or withholding information.

A)Co-optation
B)Manipulation
C)Education and communication
D)Negotiation
E)Coercion

Question 60

Never negotiate with employees as a means of overcoming resistance to change.

Question 61

Stress is an adverse reaction people have to excessive pressure placed on them for extraordinary demands, constraints or opportunities.

Question 62

In terms of organisational factors, any attempt to lower stress levels has to begin with employee selection.

Question 63

Which of the following represents the relationship between organisational culture and change?

A)Culture and change are naturally compatible.
B)Culture can never be purposely changed.
C)Culture can change in months but not weeks.
D)Culture tends to be very resistant to change.
E)There is no relationship between culture and change.

Question 64

________ is an adverse reaction people have to excessive pressure placed on them by extraordinary demands, constraints or opportunities.

A)Stereotyping
B)A halo effect
C)Stress
D)Creativity
E)Inertia

Question 65

Organisational cultures tend to resist change.

Question 66

The existence of a dramatic crisis can facilitate cultural change.

Question 67

Scenario-based questions: eVolve - Reorganisation
eVolve is a mid-size company designing and developing e-commerce websites for retailers.It has been operating for the last 15 years with many of its original staff.It has had all the traditional departments: sales, accounting, web designers and HR.The company has been very successful, recruiting dozens of new customers each month.Since their clients have been very happy with their work, eVolve has had many new clients referred by word-of-mouth, and now they have a much greater demand for their services.The CEO has consulted the department heads and they have decided that the best thing to do is to restructure the company into a team-based structure, where cross-functional teams work together on different projects.The decision has been made public and employees have begun to respond.While some employees are very supportive of the idea, some fear that it would lead to greater confusion and inefficiencies, which will result in poorer performance.Others are concerned about the possibility of losing their positions.Management has considered these thoughts, but is still determined to move ahead with the change.
Refer to eVolve - Reorganisation (Scenario).If management makes training for new roles available to employees, they would be using ________ as a way to address resistance to change.

A)facilitation and support
B)selection of people who accept change
C)coercion
D)education and communication
E)negotiation

Question 68

In a short essay, list and describe five actions that managers can take to reduce resistance to change.

Question 69

A leadership change can facilitate cultural change.

Question 70

Which of the following is NOT a favourable situational condition that may facilitate change in organisational culture?

A)leadership changes hands
B)a dramatic crisis occurs
C)the culture is weak
D)the organisation is young and small
E)stock price sharply falls

Question 71

Which of the following is true concerning stress?

A)It is a static condition.
B)Stress is often associated with constraints and demands.
C)Stress has nothing to do with opportunity.
D)Stress limits performance.
E)Stress is a negative reaction to an outside force.

Question 72

Scenario-based questions: eVolve - Reorganisation
eVolve is a mid-size company designing and developing e-commerce websites for retailers.It has been operating for the last 15 years with many of its original staff.It has had all the traditional departments: sales, accounting, web designers and HR.The company has been very successful, recruiting dozens of new customers each month.Since their clients have been very happy with their work, eVolve has had many new clients referred by word-of-mouth, and now they have a much greater demand for their services.The CEO has consulted the department heads and they have decided that the best thing to do is to restructure the company into a team-based structure, where cross-functional teams work together on different projects.The decision has been made public and employees have begun to respond.While some employees are very supportive of the idea, some fear that it would lead to greater confusion and inefficiencies, which will result in poorer performance.Others are concerned about the possibility of losing their positions.Management has considered these thoughts, but is still determined to move ahead with the change.
Refer to eVolve - Reorganisation (Scenario).If management makes it clear that employees who do not cooperate with change efforts will lose their jobs, they would be using ________ as a way to address resistance to change.

A)facilitation and support
B)selection of people who accept change
C)coercion
D)education and communication
E)negotiation

Question 73

Scenario-based questions: eVolve - Reorganisation
eVolve is a mid-size company designing and developing e-commerce websites for retailers.It has been operating for the last 15 years with many of its original staff.It has had all the traditional departments: sales, accounting, web designers and HR.The company has been very successful, recruiting dozens of new customers each month.Since their clients have been very happy with their work, eVolve has had many new clients referred by word-of-mouth, and now they have a much greater demand for their services.The CEO has consulted the department heads and they have decided that the best thing to do is to restructure the company into a team-based structure, where cross-functional teams work together on different projects.The decision has been made public and employees have begun to respond.While some employees are very supportive of the idea, some fear that it would lead to greater confusion and inefficiencies, which will result in poorer performance.Others are concerned about the possibility of losing their positions.Management has considered these thoughts, but is still determined to move ahead with the change.
Refer to eVolve - Reorganisation (Scenario).If management starts to make offers to resistant employees in exchange for their cooperation, they would be using ________ as a way to address resistance to change.

A)facilitation and support
B)selection of people who accept change
C)coercion
D)education and communication
E)negotiation

Question 74

In a short essay, list and discuss three of the reasons that describe why people resist change.Include an example of each reason to support your answer.

Question 75

Cultural change is easier when the organisational culture is strong.

Question 76

The first step in accomplishing organisational cultural change is to initiate a reorganisation.

Question 77

What is a strategy for managing cultural change?

A)Support employees who remain devoted to the old values.
B)Redesign socialisation processes to align with the new values.
C)Keep the reward system the same.
D)Keep everybody in their same job positions.
E)Terminate top managers who are positive role models.

Question 78

A manager who threatens to ruin an employee's name in the company if he/she does not cooperate with an impending organisational change is using what kind of tactic for reducing change resistance?

A)education and communication
B)manipulation and co-optation
C)negotiation
D)facilitation and support
E)coercion

Question 79

Scenario-based questions: eVolve - Reorganisation
eVolve is a mid-size company designing and developing e-commerce websites for retailers.It has been operating for the last 15 years with many of its original staff.It has had all the traditional departments: sales, accounting, web designers and HR.The company has been very successful, recruiting dozens of new customers each month.Since their clients have been very happy with their work, eVolve has had many new clients referred by word-of-mouth, and now they have a much greater demand for their services.The CEO has consulted the department heads and they have decided that the best thing to do is to restructure the company into a team-based structure, where cross-functional teams work together on different projects.The decision has been made public and employees have begun to respond.While some employees are very supportive of the idea, some fear that it would lead to greater confusion and inefficiencies, which will result in poorer performance.Others are concerned about the possibility of losing their positions.Management has considered these thoughts, but is still determined to move ahead with the change.
Refer to eVolve - Reorganisation (Scenario).If management starts a series of seminars that show research on cross-functional teams and how successful they have been in the website design business, they would be using ________ as a way to address resistance to change.

A)facilitation and support
B)selection of people who accept change
C)coercion
D)education and communication
E)negotiation

Question 80

Which of the following is the last step in accomplishing organisational cultural change?

A)Initiate a reorganisation.
B)Make it clear that change is necessary to organisational survival.
C)Appoint new leadership with a new vision.
D)Introduce new stories and rituals to convey new vision.
E)Change the selection, socialisation and reward system to support new values.