Deck 18: Organizational Change and Stress Management

Question 1

Define change agent and describe where change is most likely to come from. Compare who is most likely to be an agent of change and who is most likely to resist change. Explain your answer.

Answer 1

Change agents are the people in an organization who are responsible for presenting and managing change activities. They see a future for the organization that others have not identified, and they are able to motivate, invent, and implement this vision. Change agents can be managers or nonmanagers, current or new employees, or outside consultants. Because change invariably threatens the status quo, it inherently implies political activity. Politics suggests the impetus for change is more likely to come from outside change agents, employees new to the organization (who have less invested in the status quo), or managers slightly removed from the main power structure.
Managers who have spent their entire careers with a single organization and achieved a senior position in the hierarchy are often major impediments to change. It is a very real threat to their status and position and, therefore, they are the most likely to resist organizational change. When forced to introduce change, longtime power holders tend to implement incremental changes. Radical change is too threatening.

Question 2

Tescra Education is an educational publishing company that provides textbooks in the area of higher education. The company has been in business for almost 20 years now and has earned substantial profits during this period. Which of the following trends, if true, would drive the company to change its business strategy?

A) a rise in the cost of electronic products such as iPads and e-book readers and subscription charges for educational apps
B) an upward trend in students' preference for face-to-face interaction with instructors using traditional classroom learning techniques
C) a need for learning environments where students feel safe to apply the knowledge they've acquired in the classroom to real-life situations
D) a decrease in the number of people going back to school to upgrade their skills, due to an economic boom
E) an increase in the number of laws and regulations related to intellectual property

Answer 2

C
Explanation: If students feel the need for learning environments where they feel safe to apply the knowledge they've acquired in the classroom to real-life situations, then online learning methods would be best suited to meet this need. This would require the company to change its business strategy from providing textbooks to focusing on online learning. A rise in the cost of technological tools and a preference for face-to-face interaction with instructors using traditional classroom learning techniques would increase the requirement for textbooks and would not have an impact on the company's business strategy. A decrease in the number of people going back to school to upgrade their skills would imply that there are a fewer number of students and hence the company would not need to change its strategy. Intellectual property laws apply to both online and traditional publishing and would not drive a company to change its business strategy.

Question 3

It is easiest for management to deal with resistance when it is ________.

A) concealed
B) deferred
C) passive
D) implicit
E) overt

Answer 3

E
Explanation: Resistance doesn't necessarily surface in standardized ways. It can be overt, implicit, immediate, or deferred. It's easiest for management to deal with overt and immediate resistance, such as complaints, a work slowdown, or a strike threat. The greater challenge is managing resistance that is implicit or deferred.

Question 4

An example of change in the nature of the workforce is an increase in ________.

A) college attendance
B) mergers and consolidations
C) capital investment
D) divorce rates
E) the multicultural environment

Question 5

Fony Corp., headquartered in China, is a leading manufacturer of electronic devices and solutions intended for professional markets. The company is considering upgrading the technology currently being used at Fony's manufacturing facility, located in Guangdong, that specializes in producing lithium-ion batteries, which are used to power laptops, cameras, cell phones, and other similar gadgets. The new technology is expected to increase efficiency levels and will also allow for greater adherence to quality standards.
Which of the following, if true, would most weaken the argument that Fony Corp. should upgrade its technology?

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

Question 6

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

Question 7

Management of a company threatens to close a manufacturing plant in the company whose employees are resisting an across-the-board pay cut. But this threat is actually untrue. In this case, which of the following tactics of overcoming resistance to change is being used by the management?

A) procedural fairness
B) negotiation
C) conciliation
D) manipulation
E) arbitration

Question 8

An example of change in competition is ________.

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

Question 9

Which of the following resistances to change is overt and immediate?

A) loss of loyalty
B) increased absenteeism
C) loss of motivation
D) increased error
E) complaint

Question 10

Organizations have built-in mechanisms-like their selection processes and formalized regulations-to produce stability. When an organization is confronted with change, these mechanisms act as a counterbalance to sustain stability. Which of the following organizational sources of resistance to change is represented by these mechanisms?

A) group inertia
B) selective information processing
C) employee-orientation
D) structural inertia
E) product-orientation

Question 11

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

A) accidental
B) secondary
C) planned
D) cognitive
E) integrated

Question 12

Fony Corp., headquartered in China, is a leading manufacturer of electronic devices and solutions intended for professional markets. The company is considering upgrading the technology currently being used at Fony's manufacturing facility, located in Guangdong, that specializes in producing lithium-ion batteries, which are used to power laptops, cameras, cell phones, and other similar gadgets. The new technology is expected to increase efficiency levels and will also allow for greater adherence to quality standards.
Which of the following, if true, would most strengthen the argument that Fony Corp. should upgrade its technology?

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

Question 13

________ are persons who act as catalysts and assume the responsibility for managing refinement activities.

A) Early adopters
B) Free riders
C) Laggards
D) Change agents
E) Whistle-blowers

Question 14

Organizations are increasingly adjusting their processes and positioning their products as environment friendly and sustainable in order to increase their appeal to consumers. This is a response to changes in ________.

A) demographic trends
B) social trends
C) cultural trends
D) legal requirements
E) nature of the workforce

Question 15

Which of the following is an example of an individual source of resistance to change?

A) limited focus of change
B) product orientation
C) fear of the unknown
D) structural inertia
E) employee orientation

Question 16

Which of the following reactions from employees is preferable as a response to change?

A) silence
B) apathy
C) resignation
D) open discussion
E) increase in the use of sick time

Question 17

A(n) ________ resistance to change clouds the link between the change and the reaction to it and may surface weeks, months, or even years later.

A) overt
B) immediate
C) active
D) explicit
E) deferred

Question 18

What are the various forces that make it necessary for organizations to change?

Question 19

Which of the following resistances to change is implicit?

A) strike
B) absenteeism
C) resignation
D) complaint
E) work slowdown

Question 20

Who are change agents?

Question 21

Your company, Johnson Farm Products, has decided to expand its traditional business serving farm owners in order to include home gardeners in its customer base. This change is not met with enthusiasm by the sales personnel who have had good long-term relationships with area farmers. You know that the change will be difficult to implement if you cannot overcome the resistance of the sales personnel and obtain their cooperation.
You have decided to involve the sales personnel in planning for the change and in stocking appropriate new items to sell to gardeners. The method for overcoming resistance that you have chosen is ________.

A) education and communication
B) participation
C) negotiation
D) manipulation
E) coercion

Question 22

Procedural fairness while implementing changes is especially important when ________.

A) the organization is facing intense competition
B) the employees have participated in the decision-making process
C) the employees perceive the outcome as negative
D) the environment in which the business operates is dynamic
E) the employees are resisting the change due to group inertia

Question 23

Which of the following is an example of an organizational source of resistance to change?

A) limited focus of change
B) security
C) fear of the unknown
D) selective information processing
E) habit

Question 24

Selective information processing is a major source of resistance to change. It indicates that ________.

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

Question 25

Using covert influence to overcome resistance to change is called ________.

A) negotiation
B) conciliation
C) education
D) coercion
E) manipulation

Question 26

Which tactic to overcome resistance to change is a relatively inexpensive way to gain the support of adversaries, but may backfire if the targets become aware of the tactic?

A) negotiation
B) conciliation
C) manipulation
D) coercion
E) arbitration

Question 27

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

A) implementing changes fairly
B) education and communication
C) participation
D) manipulation and cooptation
E) coercion

Question 28

Change is not as inevitable for companies as it is for individuals.

Question 29

Strum Services provides content management services to major educational publishers. Due to low morale, the level of employee output has been below par, which has caused a backlog in work.
Which of the following, if true, would weaken the argument to use coercive techniques in this situation?

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

Question 30

Which of the following tactics for overcoming resistance to change is most likely to be beneficial when employees' fear and anxiety are high?

A) manipulation
B) building support and commitment
C) participation
D) implementing changes fairly
E) coercion

Question 31

After restructuring, your division has had trouble filling the open positions with appropriate candidates. The selection processes used by human resources have not yet adjusted to the new criteria required for the restructured job positions. This problem is an example of which kind of resistance to change?

A) structural inertia
B) limited focus of change
C) group inertia
D) threat to expertise
E) threat to established power relationships

Question 32

Which individual is least likely to accept and adapt easily to change?

A) An employee who is emotionally stable.
B) An employee who has high core self-evaluations.
C) An employee who is willing to take risks.
D) An employee who prefers predictability.
E) An employee who is flexible in her behavior.

Question 33

People are more willing to accept changes if they trust the managers implementing them and see them as legitimate.

Question 34

If individuals resisting change are included in making change decisions in an attempt to gain their support, this approach is called ________.

A) cooptation
B) exploitation
C) arbitration
D) coercion
E) conciliation

Question 35

Your company, Johnson Farm Products, has decided to expand its traditional business serving farm owners in order to include home gardeners in its customer base. This change is not met with enthusiasm by the sales personnel who have had good long-term relationships with area farmers. You know that the change will be difficult to implement if you cannot overcome the resistance of the sales personnel and obtain their cooperation.
You have threatened to eliminate positions and even to close down the company if your sales personnel don't change their attitudes. The method for overcoming resistance that you have chosen is ________.

A) education and communication
B) participation
C) negotiation
D) coercion
E) cooptation

Question 36

Strum Services provides content management services to major educational publishers. Due to low morale, the level of employee output has been below par, which has caused a backlog in work.
Which of the following, if true, would strengthen the argument to use coercive techniques in this situation?

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

Question 37

The application of direct threats or force upon resisters is called ________.

A) negotiation
B) cooptation
C) manipulation
D) coercion
E) arbitration

Question 38

Your company, Johnson Farm Products, has decided to expand its traditional business serving farm owners in order to include home gardeners in its customer base. This change is not met with enthusiasm by the sales personnel who have had good long-term relationships with area farmers. You know that the change will be difficult to implement if you cannot overcome the resistance of the sales personnel and obtain their cooperation.
You have brought in the local extension agent to explain demographics and the changing nature of the area in which you live. The method for overcoming resistance that you have chosen is ________.

A) communication
B) participation
C) negotiation
D) manipulation and cooptation
E) coercion

Question 39

Who is likely to act as an impediment to change in an organization?

A) A new employee
B) A participation manager who is slightly removed from the power structure.
C) A senior manager who has been with the organization for a long time.
D) A junior manager.
E) A manipulation mid-level manager who has been on the job for just over a year.

Question 40

"Buying off" the leaders of a resistance group by giving them a key role and seeking their advice not to find a better solution but to get their endorsement is an example of ________.

A) coercion
B) cooptation
C) procedural fairness
D) distributive bargaining
E) operant conditioning

Question 41

________ is a change process based on systematic collection of data and selection of a change action based on what the analyzed data indicate.

A) Organizational development
B) Action research
C) Planned change
D) Process consultation
E) Organizational restructuring

Question 42

Who built on Lewin's three-step model to create a more detailed eight-step plan for implementing change?

A) John Kotter
B) David McClelland
C) Douglas Surber
D) Lawrence Summers
E) Henry Mintzberg

Question 43

________ is a collection of change methods that seek to improve organizational effectiveness and employee well-being.

A) Organizational development
B) Organizational polarization
C) Operant conditioning
D) Organizational restructuring
E) Action research

Question 44

Which of the following is the first step in Kotter's eight-step plan for implementing change?

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

Question 45

Which of the following is the last step in Kotter's eight-step plan for implementing change?

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

Question 46

Which of the following steps in Kotter's eight-step plan for implementing change represents the movement stage in Lewin's three-step model?

A) Establish a sense of urgency by creating a compelling reason for why change is needed.
B) Plan for, create, and reward short-term "wins" that propel the organization toward the new vision.
C) Form a coalition with enough power to lead the change.
D) Create a new vision to direct the change and strategies for achieving the vision.
E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

Question 47

Which of the following steps in Kotter's eight-step plan for implementing change represents the refreezing stage in Lewin's three-step model?

A) Plan for, create, and reward short-term "wins" that move the organization toward the new vision.
B) Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.
C) Create a new vision to direct the change and strategies for achieving the vision.
D) Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.
E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

Question 48

What are the various individual sources of resistance to change?

Question 49

Resistance to change can be positive if it leads to open discussion and debate.

Question 50

The step in the action research process where information is gathered about problems, concerns, and needed changes is known as the ________ stage.

A) feedback
B) evaluation
C) diagnosis
D) action
E) prognosis

Question 51

Describe the organizational factors that create stress and discuss how they compare to the factors of resistance to change. How are they similar and different? Are the methods for managing change useful for managing stress caused by organizational factors?

Question 52

Describe the various ways of overcoming resistance to change.

Question 53

What are the various organizational sources of resistance to change?

Question 54

Cooptation combines manipulation and participation.

Question 55

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

Question 56

Who developed a three-step model for change that included unfreezing, movement, and refreezing?

A) John Kotter
B) David McClelland
C) Douglas Surber
D) Lawrence Summers
E) Kurt Lewin

Question 57

________ is one way to achieve unfreezing of an organization's status quo.

A) Increasing the driving forces directing behavior away from the status quo
B) Incorporating a structural inertia in the structure of the organization
C) Increasing employee investment in the status quo
D) Decreasing management's investment in change
E) Increasing the rigidity of the organizational hierarchy

Question 58

Which of the following is one of the three steps in the Lewin's three-step change model?

A) analysis
B) movement
C) evaluation
D) dreaming
E) designing

Question 59

Which of the following is NOT an OD technique or intervention for bringing about change?

A) sensitivity training
B) restraining forces
C) survey feedback
D) process consultation
E) team building

Question 60

John Kotter built on Lewin's three-step model to create a more detailed approach for implementing change. Which of the following steps in Kotter's eight-step plan for implementing change represents the unfreezing stage in Lewin's three-step model?

A) Plan for, create, and reward short-term "wins" that move the organization toward the new vision.
B) Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.
C) Create a new vision to direct the change and strategies for achieving the vision.
D) Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.
E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

Question 61

What is organizational development? What are the various values on which the organizational development techniques are based?

Question 62

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

Question 63

List the eight steps in Kotter's eight-step plan for implementing change.

Question 64

During the dreaming step of appreciative inquiry, participants ________.

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

Question 65

What are the various organizational development techniques?

Question 66

Rather than looking for problems, ________ seeks to identify the unique qualities and special strengths of an organization, which can then be built upon to improve performance.

A) appreciative inquiry
B) action research
C) team building
D) process consultation
E) social reinforcement

Question 67

During the design step of appreciative inquiry, participants ________.

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

Question 68

Sensitivity training emphasizes changing behavior through structured group interaction.

Question 69

Which of the following steps of the appreciative inquiry attempts to identify what people think are the organization's strengths?

A) dreaming
B) destiny
C) collaboration
D) inferring
E) discovery

Question 70

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

A) Action research
B) Planned modification
C) Process consultation
D) Sensitivity training
E) Psychoanalysis

Question 71

Intergroup development seeks to change groups' attitudes, stereotypes, and perceptions that groups have of each other.

Question 72

Which of the following is a step in the appreciative inquiry process?

A) analysis
B) dreaming
C) inferring
D) classifying
E) collaboration

Question 73

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

Question 74

Which of the following is an organizational development technique that involves an outsider assisting a manager to identify what to improve and how?

A) action research
B) intergroup development
C) appreciative inquiry
D) process consultation
E) social reinforcement

Question 75

Appreciative inquiry involves identifying and fixing problems.

Question 76

Appreciative inquiry (AI) is an organizational development technique. Which of the following statements is true regarding appreciative inquiry?

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

Question 77

Which of the following types of changes involves a new idea being applied to initiating or improving a product, process, or service?

A) continuous improvement
B) appreciative inquiry
C) innovation
D) process reengineering
E) organizational streaming

Question 78

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

Question 79

Describe Lewin's three-step model used for managing change.

Question 80

Describe the process of appreciative inquiry (AI).