Management, 11e (Robbins/Coulter)

Chapter 6 Managing Change and Innovation

1) The "calm waters" metaphor of change is consistent with Lewin's concept of unfreezing,
changing, and refreezing.
Answer: TRUE
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

2) In the "white-water rapids" metaphor of change, change is seen as an occasional disruption in

the normal flow of events.
Answer: FALSE
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

3) Organizational change can be any alteration of people, structure, or technology.

Answer: TRUE
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

4) Managers exclusively play the role of change agents.

Answer: FALSE
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

5) Changing structure includes any change in structural variables such as reporting relationships,
coordination mechanisms, employee empowerment, or job redesign.
Answer: TRUE
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

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6) Sensitivity training refers to activities that help team members learn how each member thinks
and works.
Answer: FALSE
Page Ref: 157
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

7) One reason people resist change in an organization is that their future has been set and cannot
be changed.
Answer: FALSE
Page Ref: 158
Topic: Managing Resistance to Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

8) People may resist change based on habit.

Answer: TRUE
Page Ref: 158
Topic: Managing Resistance to Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

9) Negotiation refers to covert attempts to influence others about a change by distorting the facts
to make the change appear more attractive.
Answer: FALSE
Page Ref: 159
Topic: Managing Resistance to Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

10) Coercion involves exchanging something of value for an arrangement to lessen the resistance
to the change effort.
Answer: FALSE
Page Ref: 159
Topic: Managing Resistance to Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

2
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11) Manipulation involves the use of direct threats against the resisters.
Answer: FALSE
Page Ref: 159
Topic: Managing Resistance to Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

12) A disadvantage of coercion is that it is illegal and undermines the change agent's credibility.
Answer: TRUE
Page Ref: 159
Topic: Managing Resistance to Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

13) Cultural change is likely to take place when a dramatic crisis occurs.
Answer: TRUE
Page Ref: 160
Topic: Managing Resistance to Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

14) A leadership change can facilitate cultural change.

Answer: TRUE
Page Ref: 160
Topic: Managing Resistance to Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

15) Cultural change is easier when the organizational culture is strong.

Answer: FALSE
Page Ref: 160
Topic: Managing Resistance to Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

16) Stress is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities.
Answer: TRUE
Page Ref: 161
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual
3
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17) Stress can be caused by personal factors and by job-related factors.
Answer: TRUE
Page Ref: 161
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

18) Stress symptoms can be categorized as physical, psychological, and behavioral.

Answer: TRUE
Page Ref: 162
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

19) A realistic job preview during the selection process minimizes stress by reducing ambiguity
over job expectations.
Answer: TRUE
Page Ref: 163
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

20) Creativity refers to the ability to combine ideas in a unique way or to make unusual
associations between ideas.
Answer: TRUE
Page Ref: 166
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

21) The Sarbanes-Oxley Act is an example of which of the following forces of change?
A) need changes
B) technological changes
C) external changes
D) economic changes
Answer: C
Page Ref: 153
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Easy
Classification: Conceptual

4
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22) Falling interest rates are an example of what external force?
A) change in composition of workforce
B) change in employee attitudes
C) technological change
D) economic change
Answer: D
Page Ref: 153
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

23) Which of the following is NOT an internal force of change?

A) technology
B) strategy
C) workforce
D) employee attitudes
Answer: A
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

24) Which of the following is NOT an external force of change?

A) changing consumer needs
B) new governmental laws
C) economic changes
D) changes in workforce composition
Answer: D
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

5
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25) Increasing the numbers of employed women and minorities forces managers to pay attention
to what change factor?
A) strategy
B) workforce
C) equipment
D) technology
Answer: B
Page Ref: 153
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

26) Labor strikes are an example of which of the following internal change factors?
A) workforce composition
B) equipment
C) employee attitudes
D) strategy
Answer: C
Page Ref: 153
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

27) The two metaphors commonly used to describe the two views of the change process are
________.
A) running water and troubled water
B) calm waters and white-water rapids
C) marine water and freshwater
D) muckwater and mudwater
Answer: B
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

6
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28) In the ________ metaphor, change is normal and expected and managing it is a continual
process.
A) calm waters
B) white-water rapids
C) marine-waters
D) freshwater
Answer: B
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

29) Lewin's theory is consistent with the ________ theory of organizational change.
A) white-water rapids
B) muckwater
C) mudwater
D) calm waters
Answer: D
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

30) According to Kurt Lewin, which of the following is a stage in the change process?
A) restraining
B) driving
C) processing
D) unfreezing
Answer: D
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

31) According to Kurt Lewin, increasing the driving forces is a means of ________.
A) unfreezing
B) changing
C) restraining
D) refreezing
Answer: A
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual
7
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32) The unfreezing step of the change process can be thought of as ________.
A) changing to a new state
B) sustaining a change over time
C) changing the organizational structure
D) preparing for the needed change
Answer: D
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

33) According to Lewin, which of the following is the objective of refreezing?

A) directing behavior away from the status quo
B) hindering the existing equilibrium
C) eliminating the need for future change
D) stabilizing the new situation
Answer: D
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

34) Organizational change is any alteration of ________.

A) people, structure, or technology
B) structure, management, or goals
C) technology, goals, or management
D) rules, procedures, or management
Answer: A
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

35) In organizations, people who act as catalysts and assume the responsibility for managing the
change process are called ________.
A) change masters
B) change agents
C) change champions
D) change generators
Answer: B
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual
8
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36) Outside consultants are more likely to initiate ________ organizational changes than
insiders.
A) drastic
B) mild
C) contented
D) trivial
Answer: A
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

37) Structural changes include ________.

A) combining departmental responsibilities
B) changing work processes
C) changing attitudes
D) changing behavior
Answer: A
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

38) Changes in work processes, methods, and equipment are a part of ________ changes.
A) technological
B) people
C) financial
D) structural
Answer: A
Page Ref: 155
Topic: Types of Organizational Change
AACSB: Technology
Objective: 2
Difficulty: Easy
Classification: Conceptual

9
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39) A company that decides to decentralize its sales procedures is managing ________ changes.
A) technological
B) people
C) financial
D) structural
Answer: D
Page Ref: 155
Topic: Types of Organizational Change
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

40) Which type of change might include a shift from a functional to a product structure?
A) a structural design change
B) a structural component change
C) a technological change
D) a people change
Answer: A
Page Ref: 155
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

41) Competitive factors or new innovations within an industry often require managers to
introduce ________.
A) new equipment, tools, or operating methods
B) new equipments, tools, or people
C) new equipment, operating methods, or structure
D) new equipment, people, or structure
Answer: D
Page Ref: 156
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

10
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42) When supermarkets and other retailers use scanners that provide instant inventory
information, they are adopting ________ changes.
A) technological
B) people
C) financial
D) structural
Answer: A
Page Ref: 156
Topic: Types of Organizational Change
AACSB: Technology
Objective: 2
Difficulty: Easy
Classification: Conceptual

43) ________ is the term used to describe change methods that focus on people and the nature
and quality of interpersonal work relationships.
A) Commercial development
B) Organizational development
C) Facilities development
D) Comprehensive development
Answer: B
Page Ref: 156
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

44) If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work
relationships, this would be an example of managing ________ changes.
A) technological
B) people
C) financial
D) structural
Answer: B
Page Ref: 156
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

11
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45) ________ is a method of changing behavior through unstructured group interaction.
A) Team building
B) Intergroup development
C) Survey feedback
D) Sensitivity training
Answer: D
Page Ref: 157
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

46) What organizational development technique involves changing the attitudes, stereotypes, and
perceptions that work groups have about each other?
A) team building
B) intergroup development
C) survey feedback
D) sensitivity training
Answer: B
Page Ref: 157
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

47) An individual is likely to resist change because of the feeling ________.

A) of achievement
B) of uncertainty
C) of personal gain
D) that the change is in the organization's best interest
Answer: B
Page Ref: 158
Topic: Types of Organizational Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

12
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48) Which of the following techniques for reducing resistance to change assumes that much of
the resistance lies in misinformation?
A) negotiation
B) education and communication
C) participation
D) facilitation and support
Answer: B
Page Ref: 158
Topic: Types of Organizational Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

49) ________ involves bringing individuals directly affected by the proposed change into the
decision-making process.
A) Participation
B) Facilitation and support
C) Negotiation
D) Manipulation and co-optation
Answer: A
Page Ref: 159
Topic: Types of Organizational Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

50) Which of the following techniques for reducing resistance to change includes employee
counseling, therapy, new skills training, or a short paid leave of absence.
A) negotiation
B) facilitation and support
C) manipulation and co-optation
D) coercion
Answer: B
Page Ref: 159
Topic: Types of Organizational Change
Objective: 3
Difficulty: Easy
Classification: Conceptual

13
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
51) ________ involves exchanging something of value for an agreement to lessen the resistance
to the change effort.
A) Negotiation
B) Manipulation and co-optation
C) Coercion
D) Education and communication
Answer: A
Page Ref: 159
Objective: 3
Difficulty: Easy
Classification: Conceptual

52) ________ involves distorting facts to make the change appear more attractive.
A) Coercion
B) Education and communication
C) Participation
D) Manipulation and co-optation
Answer: D
Page Ref: 159
Objective: 3
Difficulty: Easy
Classification: Conceptual

53) Which of the following is a favorable condition that will facilitate a cultural change?
A) the organization has a huge workforce
B) the organization has a long existence
C) a dramatic crisis occurs
D) a stable leadership exists
Answer: C
Page Ref: 160
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

54) Cultural change is most likely to take place when ________.

A) the organization is old
B) the organization is large
C) the culture is strong
D) there is a leadership change
Answer: D
Page Ref: 160
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

14
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55) Which of the following is a strategy for managing cultural change?
A) Support employees who remain devoted to the old values.
B) Redesign socialization processes to align with the new values.
C) Keep the reward system the same.
D) Replace written norms with unwritten norms.
Answer: B
Page Ref: 160
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

56) ________ is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities.
A) Stereotyping
B) Stress
C) Innovation
D) Creativity
Answer: B
Page Ref: 161
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

57) A ________ prevents an individual from doing what he desires.

A) constraint
B) demand
C) lien
D) necessity
Answer: A
Page Ref: 161
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

15
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58) For ________, there must be uncertainty over the outcome, and the outcome must be
important.
A) uncertainty to become stress
B) habit to become stress
C) potential stress to become actual stress
D) personal loss to become stress
Answer: C
Page Ref: 161
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

59) ________ are factors related to an employee's job and include the design of a person's job,
working conditions, and the physical work layout.
A) Task demands
B) Role demands
C) Interpersonal demands
D) Role ambiguity
Answer: A
Page Ref: 162
Objective: 4
Difficulty: Easy
Classification: Conceptual

60) ________ creates expectations that may be hard to reconcile or satisfy.

A) Task ambiguity
B) Role conflict
C) Role overload
D) Task demand
Answer: B
Page Ref: 162
Objective: 4
Difficulty: Easy
Classification: Conceptual

61) A ________ personality is characterized by chronic feelings of a sense of time urgency, an

excessive competitive drive, and difficulty accepting and enjoying leisure time.
A) Type X
B) Type Y
C) Type A
D) Type B
Answer: C
Page Ref: 162
Objective: 4
Difficulty: Easy
Classification: Conceptual

16
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62) Stress symptoms are grouped under the categories of ________.
A) physical, economic, and legal
B) physical, psychological, and behavioral
C) physical, psychological, and cultural
D) physical, political, and social
Answer: B
Page Ref: 162
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

63) Which of the following is a physical symptom of stress?

A) changes in metabolism
B) changes in productivity
C) job-related dissatisfaction
D) job turnover
Answer: A
Page Ref: 163
Objective: 4
Difficulty: Easy
Classification: Conceptual

64) Which of the following is an example of a psychological symptom of stress?

A) changes in metabolism
B) increased heart and breathing rate
C) irritability
D) changes in productivity
Answer: C
Page Ref: 163
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

65) Changes in eating habits are a ________ symptom of stress.

A) physical
B) psychological
C) behavioral
D) financial
Answer: C
Page Ref: 163
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

17
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
66) Which of the following is true regarding reduction of employee stress?
A) In order to reduce stress, managers should make sure that the employee's abilities match the
job requirements.
B) A realistic job preview during the selection process maximizes stress by reducing ambiguity
over job expectations.
C) Improved organizational communications maximizes ambiguity-induced stress.
D) Job redesigns that increase opportunities for employees to participate in decisions and to gain
social support increase stress.
Answer: A
Page Ref: 163
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

67) Managers offer ________ to employees who want to talk to someone about their problems.
A) wellness programs
B) time management programs
C) employee counseling
D) performance planning programs
Answer: C
Page Ref: 163
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

68) A ________ helps employees whose personal lives suffer from a lack of planning to sort out
their priorities.
A) time management program
B) wellness program
C) life insurance program
D) health and wellness program
Answer: A
Page Ref: 163
Objective: 4
Difficulty: Easy
Classification: Conceptual

18
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
69) How can managers increase the likelihood of making change happen successfully?
A) They should realize that they are just change agents not change leaders.
B) They should discourage entrepreneurial mindsets.
C) They should give individual employees a role in the change process.
D) They should adapt the changes made by their competitors.
Answer: C
Page Ref: 164
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

70) Which of the following is a characteristic of a change-capable organization?

A) separates the present and the future
B) makes controlling a way of life
C) discourages mavericks
D) shelters breakthroughs
Answer: D
Page Ref: 165
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

71) A change capable organization ________.

A) links the present and the future
B) discourages diverse teams
C) discourages mavericks
D) follows its competitor's footsteps
Answer: A
Page Ref: 165
Objective: 4
Difficulty: Easy
Classification: Conceptual

72) ________ refers to the ability to combine ideas in a unique way or to make unusual
associations between ideas.
A) Innovation
B) Alteration
C) Creativity
D) Diversity
Answer: C
Page Ref: 166
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

19
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
73) ________ is the process of taking a creative idea and turning it into a useful product or work
method.
A) Innovation
B) Inspiration
C) Creativity
D) Ingenuity
Answer: A
Page Ref: 166
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

74) Which of the following is an example of a variable that fosters innovation?

A) low job security
B) organic structure
C) scarce resources
D) maximum time pressure
Answer: B
Page Ref: 167
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

75) Which of the following is a cultural variable that supports innovation?

A) work and nonwork support
B) minimal time pressure
C) acceptance of ambiguity
D) high job security
Answer: C
Page Ref: 167
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

76) An innovative culture is likely to have ________.

A) high external controls
B) low tolerance of risks
C) closed-system focus
D) tolerance of conflict
Answer: D
Page Ref: 167
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual
20
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77) Which of the following human resource variables is supportive of organizational innovation?
A) low commitment to training
B) less creative people
C) high job security
D) abundant resources
Answer: C
Page Ref: 167
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

78) ________ actively and enthusiastically support new ideas, build support, overcome
resistance, and ensure that innovations are implemented.
A) Idea champions
B) Idea developers
C) Idea generators
D) Idea screeners
Answer: A
Page Ref: 169
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

79) Most idea champions ________.

A) have extremely high self-confidence
B) are lethargic
C) avoid risks
D) are relenting
Answer: A
Page Ref: 169
Topic: Stimulating Innovation
Objective: 5
Difficulty: Easy
Classification: Conceptual

21
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New Ideas (Scenario)

Although New Ideas, Inc., has been in business for 30 years, the company and its employees
seemingly have been in a constant state of change. Louis Snyder has been President of New
Ideas, Inc. for the last 15 years. During these 15 years, he has had to change the strategic focus of
the company three times. The employees have started becoming vocal about the decrease in their
bonus checks and their desire for increased profits. It seems as though his competition is always
introducing new products into the market and his company's niche products have to be constantly
changed in order to keep up with the competition. Moreover, the government has been active in
passing new legislation to increase the control of the product packaging and product contents.
The technology used to manufacture the products has also been continually changed to make the
process more efficient.

80) The technology change in the manufacturing process of New Ideas, Inc.'s products to make
the process more efficient is the result of a competitor lowering its price. Therefore, it was a(n)
________.
A) external force of change
B) internal force of change
C) marketplace force of change
D) economic force of change
Answer: A
Page Ref: 153
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

81) Mr. Snyder has had to change the strategic focus of the company three times. The change in
strategic focus of the New Ideas, Inc., is a(n) ________.
A) external force of change
B) internal force of change
C) marketplace force of change
D) economic force of change
Answer: B
Page Ref: 153
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

22
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
82) When the employees express their concern about their bonus checks, which of the following
types of forces of change is constraining Mr. Snyder?
A) external force of change
B) labor market force of change
C) internal force of change
D) social force of change
Answer: C
Page Ref: 153
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

83) New Ideas, Inc., focuses on new ideas, uses technology that changes frequently, and has
strong competition in the market. This situation describes what metaphor of change?
A) a calm water metaphor
B) a black-water rapid metaphor
C) a rapid water metaphor
D) a white-water rapids metaphor
Answer: D
Page Ref: 154
Topic: The Change Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

23
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Fred Fryer's Donuts (Scenario)

Since the integration of two new stores in Littleville, U.S., Fred Fryer's Donuts, Inc., has
recognized that there is a need for reengineering the entire organization. The main need is to
install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of
all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained
to operate the new computer programmed equipment. Fred is setting up the main store as a
training store. Employees from the other stores will train at the main store for five days while
their respective store's equipment is being converted. The regular employees from the main store
have the responsibility of instructing the classes or overseeing the installation of the new
equipment and testing its operation before that store's employees return from training. The
organization is also replacing the old employee reporting system. Ordering of materials will now
be done by an intranet. Fred has promised that no one will lose his or her job because of the
organizational changes. He estimates that when the employees get to the computer programming
training, as many as 10 percent of the current employees will resign or retire. He also thinks that
opening a new store in Nowhere, will absorb the excess employees.

84) The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of
________.
A) people change
B) management change
C) technological change
D) structural change
Answer: C
Page Ref: 156
Topic: Types of Organizational Change
Objective: 2
Difficulty: Moderate
Classification: Conceptual

85) Which of the following courses of actions is best for Fred and the team leaders to practice if
they need to overcome employee resistance?
A) threaten the employees who resist the change
B) present distorted facts to the employees
C) terminate employees who resist the change
D) educate employees and communicate with them
Answer: D
Page Ref: 158-159
Topic: Managing Resistance to Change
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The Government Job (Scenario)

Colin was getting accustomed to his surroundings in a state government job. His efforts at
getting people to accept change had met with little resistance due to his and the new director's
efforts as well as the hard work of his subordinates. But now the hard part really startedactually
managing the change. What techniques could he and his agency'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 agency: the structure, the technology, and the people.

86) If the new agency 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) selection process
C) degree of centralization
D) structural components
Answer: D
Page Ref: 155
Topic: Types of Organizational Change
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

87) If the agency director decided to shift away from a functional to a product structure, this
would be considered changing the ________.
A) structural design
B) selection process
C) degree of centralization
D) structural components
Answer: A
Page Ref: 156
Topic: Types of Organizational Change
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

25
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88) Colin decided his people will benefit from ________, a method of changing behavior
through unstructured group interaction.
A) survey feedback
B) sensitivity training
C) team building
D) intergroup development
Answer: B
Page Ref: 157
Topic: Types of Organizational Change
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

The Practice (Scenario)

Kelly Rae works for an ophthalmologist's office where she has been employed as a technician for
approximately one year. Kelly has been promoted to the position of clinic coordinator where she
is responsible for ensuring operational efficiency and effectiveness by managing and training
other technicians, overseeing the doctor's schedules, and coordinating activities between the
scheduling desk, the technicians, the insurance office, and the optical shop. Upon her promotion
she was given a mandate by the doctors to "clean house" in an effort to make fundamental
changes to enhance productivity.

89) If Kelly were to consider enhancing productivity by giving greater authority to other
technicians and increasing formalization, she would be considering ________ changes.
A) structural
B) technological
C) people
D) automatic
Answer: A
Page Ref: 155
Topic: Types of Organizational Change
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

26
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
90) The two doctors at the practice have very different work habits. Each has his own team of
technicians who are used to the doctors' preferences and are comfortable with their routines; they
basically do the same thing every day. When Kelly suggested that they train all of the technicians
to work with both doctors, this led to significant resistance from all of the parties involved. The
technicians were concerned that they would no longer be able to perform their usual daily tasks.
Their resistance came from their ________.
A) belief that ambiguity would increase
B) fear that they would be forced out of their habits
C) concern over personal loss
D) belief that Kelly's changes would harm the organization
Answer: B
Page Ref: 158
Topic: Managing Resistance to Change
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application

91) Shelly, a technician, was particularly concerned about the changes. She had spent a number
of years ingratiating herself with one of the doctors and, because of it, she had earned special
privileges, such as taking extended lunches with her husband. Shelly's resistance to change came
from her ________.
A) belief that uncertainty would increase
B) fear that she would be forced out of her habit
C) concern over personal loss
D) belief that Kelly's changes would harm the organization
Answer: C
Page Ref: 158
Topic: Managing Resistance to Change
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application

27
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Lightspeed.com (Scenario)

Edwin Edwards is a team leader for Lightspeed.com, an e-business that has employees in every
global time zone. Some of the factors that the team has to contend with are deadlines, strong
work ethic, the creativity-innovation chain, high-speed turnaround, and professionalism. As team
leader, Edwin sees team members via video conference only a few times per year. A frustration
that he is encountering is that he works with all of these people and does not have control over
their "actual" work or the few organizational rules, regulations, and policies. Yet, due to the
position he is in, he feels he gets all of their complaints. The team does not deal well when a
member offers an "off-the-wall" solution to a team problem; team members seem to have more
trouble with this than any other team-conflict issue. What he likes most about leading the team is
that they seem to prefer getting their objective accomplished instead of wasting time trying to
decide who should be doing what.

92) When Edwin feels frustrated that he does not have control over team members' "actual" work
or the organizational rules, regulations, and policies, he is contending with ________.
A) external control
B) diversity of opinions
C) abundant resources
D) unclear goals
Answer: A
Page Ref: 168
Topic: Stimulating Innovation
AACSB: Analytic Skills
Objective: 5
Difficulty: Moderate
Classification: Application

93) When a member offers an "off-the-wall" solution to a team problem, Edwin has to contend
with what cultural variable?
A) tolerance of conflict
B) tolerance of risk
C) tolerance of the impractical
D) focus on ends
Answer: C
Page Ref: 168
Topic: Stimulating Innovation
AACSB: Analytic Skills
Objective: 5
Difficulty: Moderate
Classification: Application

28
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
94) The part Edwin likes the most is that the team seems to prefer getting their objective
accomplished instead of wasting time, which indicates that the team is ________.
A) tolerant of conflict
B) an open-system focus team
C) able to deal with high risk
D) focused on ends rather than means
Answer: D
Page Ref: 168
Topic: Stimulating Innovation
AACSB: Analytic Skills
Objective: 5
Difficulty: Moderate
Classification: Application

95) Identify some of the external and internal forces of change.

Answer: Some of the external forces of change are:
a. Changing consumer needs and wants
b. New governmental laws
c. Changing technology
d. Economic changes
Some of the internal forces of change are:
a. New organizational strategy
b. Change in composition of workforce
c. New equipment
d. Changing employee attitudes
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Moderate
Classification: Conceptual

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
96) Describe the "calm waters" view of organizational change.
Answer: The calm waters view of organizational change envisions the organization as a large
ship crossing a calm sea. The ship's captain and crew know exactly where they are going because
they have made the trip many times before. Change comes in the form of an occasional storm, a
brief distraction in an otherwise calm and predictable trip. In the calm waters metaphor, change
is seen as an occasional disruption in the normal flow of events.
It is best illustrated by Kurt Lewin's 3-step description of the change process.
According to Lewin, successful change can be planned and requires unfreezing the status quo,
changing to a new state, and refreezing to make the change permanent. The status quo can be
considered an equilibrium state. To move from this equilibrium, unfreezing is necessary.
Unfreezing can be thought of as preparing for the needed change. It can be achieved by
increasing the driving forces, which are forces pushing for change; by decreasing the restraining
forces, which are forces that resist change and push behavior toward the status quo; or by
combining the two approaches.
Once unfreezing is done, the change itself can be implemented. However, merely introducing
change does not ensure that it will take hold. The new situation needs to be refrozen so that it can
be sustained over time. Unless this last step is done, there is a strong chance that employees
will revert back to the old ways of doing things. The objective of refreezing, then, is to stabilize
the new situation by reinforcing the new behaviors.
Lewin's 3-step process treats change as a move away from the organization's current equilibrium
state. It is a calm waters scenario where an occasional disruption means changing to deal with
the disruption. Once the disruption has been dealt with, however, things can continue on under
the new changed situation.
Page Ref: 153
Topic: The Change Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

30
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97) Explain organizational change and briefly discuss the three types of change.
Answer: Most managers, at one point or another, will have to make changes in some aspects of
their workplace. These changes are classified as organizational change, which is any alteration of
people, structure, or technology. Organizational changes often need someone to act as a catalyst
and assume the responsibility for managing the change processthat is, a change agent. Change
agents can be a manager within the organization, but could also be a nonmanager such as a
specialist from the HR department or even an outside consultant. For major changes, an
organization often hires outside consultants to provide advice and assistance.
Managers face three main types of change: structure, technology, and people.
Changing structure includes any change in structural variables such as reporting relationships,
coordination mechanisms, employee empowerment, or job redesign. Changes in the external
environment or in organizational strategies often lead to changes in the organizational structure.
Because an organization's structure is defined by how work gets done and who does it, managers
can alter one or both of these structural components. For instance, departmental responsibilities
could be combined, organizational levels eliminated, or the number of persons a manager
supervises could be increased. More rules and procedures could be implemented to increase
standardization. Or employees could be empowered to make decisions so decision making could
be faster. Another option would be to make major changes in the actual structural design. For
instance product divisions can be dropped, merged, or expanded. Structural design changes also
might include, for instance, a shift from a functional to a product structure or the creation of a
project structure design.
Today, technological changes usually involve the introduction of new equipment, tools, or
methods; automation; or computerization. Competitive factors or new innovations within an
industry often require managers to introduce new equipment, tools, or operating methods.
Automation is a technological change that replaces certain tasks done by people with tasks done
by machines.
Changing people involves changing attitudes, expectations, perceptions, and behaviors.
Organizational development is the term used to describe change methods that focus on people
and the nature and quality of interpersonal work relationships.
Page Ref: 156
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

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98) Define Organizational Development (OD). List and explain the five most popular OD
techniques.
Answer: Organizational Development (OD) is the term used to describe change methods that
focus on people and the nature and quality of interpersonal work relationships.
The five most popular OD techniques are:
a. Sensitivity trainingIt is a method of changing behavior through unstructured group
interaction.
b. Team buildingThese refer to activities that help team members learn how each member
thinks and works.
c. Intergroup developmentThis involves changing the attitudes, stereotypes, and perceptions
that work groups have about each other.
d. Process consultationHere, an outside consultant helps the manager understand how
interpersonal processes are affecting the way work is being done.
e. Survey feedbackIt is a technique for assessing attitudes and perceptions, identifying
discrepancies in these, and resolving the differences by using survey information in feedback
groups.
Page Ref: 156-157
Topic: Types of Organizational Change
Objective: 2
Difficulty: Easy
Classification: Conceptual

32
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99) Why do people resist change?
Answer: An individual is likely to resist change for the following reasons: uncertainty, habit,
concern over personal loss, and the belief that the change is not in the organization's best interest.
Change replaces the known with uncertainty. For example, when quality control methods based
on sophisticated statistical models are introduced into manufacturing plants, many quality control
inspectors have to learn the new methods. Some inspectors may fear that they will be unable to
do so and may, therefore, develop a negative attitude toward the change or behave poorly if
required to use them.
Another cause of resistance is that people do things out of habit. Every day, when going to work,
people probably go the same way, whether walking, driving, or using mass transit. Usually, they
find a single approach and use it regularly. People do not want to have to consider the full range
of options for the hundreds of decisions they make every day. To cope with this complexity, they
rely on habits or programmed responses. But when confronted with change, their tendency to
respond in their accustomed ways becomes a source of resistance.
The third cause of resistance is the fear of losing something already possessed. Change threatens
the investment people have already made in the status quo. The more that people have invested
in the current system, the more they resist change. They fear the loss of status, money, authority,
friendships, personal convenience, or other economic benefits that they value. This is why older
workers tend to resist change more than younger workers. Older employees have generally
invested more in the current system and thus have more to lose by changing.
A final cause of resistance is a person's belief that the change is incompatible with the goals and
interests of the organization. For instance, an employee who believes that a proposed new job
procedure will reduce product quality or productivity can be expected to resist the change. If the
employee expresses his or her resistance positively, this actually can be beneficial to the
organization.
Page Ref: 158
Topic: Managing Resistance to Change
Objective: 3
Difficulty: Moderate
Classification: Conceptual

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100) List and explain the techniques for reducing resistance to change.
Answer: The various techniques for reducing resistance to change are:
a. Education and communication - This helps reduce resistance to change by helping employees
see the logic of the change effort. This technique assumes that much of the resistance lies in
misinformation or poor communication.
b. Participation - This involves bringing those individuals directly affected by the proposed
change into the decision-making process. Their participation allows these individuals to express
their feelings, increase the quality of the process, and increase employee commitment to the final
decision.
c. Facilitation and support - This involves helping employees deal with the fear and anxiety
associated with the change effort. This help includes employee counseling, therapy, new skills
training, or a short paid leave of absence.
d. Negotiation - This involves exchanging something of value for an agreement to lessen the
resistance to the change effort. This resistance technique is quite useful when the resistance
comes from a powerful source.
e. Manipulation and co-optation - This refers to covert attempts to influence others about the
change. It involves distorting facts to make the change appear more attractive.
f. Coercion - This involves the use of direct threats or force against the resisters.
Page Ref: 159
Objective: 3
Difficulty: Moderate
Classification: Conceptual

101) What are the conditions that facilitate cultural change?

Answer: The conditions that facilitate cultural change are:
a. Occurrence of a dramatic crisis - An unexpected financial setback, the loss of a major
customer, or a dramatic technological innovation by a competitor can weaken the status quo and
make people start thinking about the relevance of the current culture.
b. Change in leadership - New top leadership can provide an alternative set of key values and
may be perceived as more capable of responding to the crisis than the old leaders were.
c. Young and small organization - The younger the organization, the less entrenched is its culture.
It is easier for managers to communicate new values in a small organization than in a large one.
d. Weak culture - Weak cultures are more receptive to change than are strong ones.
Page Ref: 160
Objective: 4
Difficulty: Easy
Classification: Conceptual

34
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102) Write a short essay on stress.
Answer: Stress is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities. Stress is not always bad. Although it is
often discussed in a negative context, stress does have a positive value, particularly when it
offers a potential gain. However, stress is more often associated with constraints and demands. A
constraint prevents an individual from doing what he desires. Demands refer to the loss of
something desired. When an employee has his annual performance review at work, he feels
stress because he confronts opportunity, constraints, and demands. A good performance review
leads to a promotion, greater responsibilities, and a higher salary. But a poor review keeps him
from getting the promotion. An extremely poor review might lead to him being fired.
Just because the conditions are right for stress to surface, however, does not always mean it will.
Two conditions are necessary for potential stress to become actual stress. First, there must be
uncertainty over the outcome, and second, the outcome must be important.
Page Ref: 161
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Moderate
Classification: Conceptual

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103) What are stressors? Discuss the five major categories of organizational stressors.
Answer: Stress is caused by personal factors and by job-related factors called stressors. Change
of any kind-personal or job-related-has the potential to cause stress because it involves demands,
constraints, or opportunities.
The five major categories of organizational stressors are: task demands, role demands,
interpersonal demands, organization structure, and organizational leadership.
Task demands are factors related to an employee's job. They include the design of a person's job
(autonomy, task variety, degree of automation), working conditions, and the physical work
layout. Work quotas can put pressure on employees when their outcomes are perceived as
excessive. The more the interdependence between an employee's tasks and the tasks of others,
the greater is the potential for stress. Autonomy, on the other hand, tends to lessen stress. Jobs in
which temperatures, noise, or other working conditions are dangerous or undesirable can
increase anxiety. So, too, can working in an overcrowded room or in a visible location where
interruptions are constant.
Role demands relate to pressures placed on an employee as a function of the particular role he
plays in the organization. Role conflicts create expectations that may be hard to reconcile or
satisfy. Role overload is experienced when the employee is expected to do more than time
permits. Role ambiguity is created when role expectations are not clearly understood and the
employee is not sure what he has to do.
Interpersonal demands are pressures created by other employees. Lack of social support from
colleagues and poor interpersonal relationships can cause considerable stress, especially among
employees with a high social need.
Organization structure can increase stress. Excessive rules and an employee's lack of opportunity
to participate in decisions that affect him or her are examples of structural variables that might be
potential sources of stress.
Organizational leadership represents the supervisory style of the organization's managers. Some
managers create a culture characterized by tension, fear, and anxiety. They establish unrealistic
pressures to perform in the short run, impose excessively tight controls, and routinely fire
employees who do not measure up. This style of leadership filters down through the organization
and affects all employees.
Page Ref: 162
Topic: Contemporary Issues in Managing Change
Objective: 4
Difficulty: Easy
Classification: Conceptual

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104) List a few cultural characteristics that an innovative organization possesses.
Answer: An innovative organization has the following cultural characteristics:
a. Accept ambiguity - Too much emphasis on objectivity and specificity constrains creativity.
b. Tolerate the impractical - Individuals who offer impractical, even foolish, answers to what-if
questions are not stifled. What at first seems impractical might lead to innovative solutions.
c. Keep external controls minimal - Rules, regulations, policies, and similar organizational
controls are kept to a minimum.
d. Tolerate risk - Employees are encouraged to experiment without fear of consequences should
they fail. Mistakes are treated as learning opportunities. Employees do not fear to put forth new
ideas.
e. Tolerate conflict - Diversity of opinions is encouraged. Harmony and agreement between
individuals or units are not assumed to be evidence of high performance.
f. Focus on ends rather than means - Goals are made clear, and individuals are encouraged to
consider alternative routes toward meeting the goals. Focusing on ends suggests that several right
answers might be possible for any given problem.
g. Use an open-system focus - Managers closely monitor the environment and respond to
changes as they occur.
h. Provide positive feedback - Managers provide positive feedback, encouragement, and support
so employees feel that their creative ideas receive attention.
i. Exhibit empowering leadership - A leader of an innovative organization lets his subordinates
know that the work they do is significant. He provides organizational members the opportunity to
participate in decision making. He shows them that he is confident that they can achieve high
performance levels and outcomes. This has a positive influence on creativity.
Page Ref: 168-169
Objective: 5
Difficulty: Moderate
Classification: Conceptual

37
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