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Management, 13e (Robbins)

Chapter 7 Managing Change and Innovation

1) The Sarbanes-Oxley Act is an example of which of the following forces of change?


A) internal change
B) technological change
C) external change
D) organizational strategy change
Answer: C
Diff: 3
AACSB: Application of knowledge; Analytical thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

2) 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
Diff: 3
AACSB: Application of knowledge; Analytical thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

3) First he was all about innovation. Next it was efficiency. Now Snyder's strategy is customer
responsiveness. These changes in strategy are indicative of ________.
A) external force of change
B) internal force of change
C) marketplace force of change
D) economic force of change
Answer: B
Diff: 3
AACSB: Application of knowledge; Analytical thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

1
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4) When the employees express their concern about their bonus checks, which of the following
types of forces of change is in play?
A) external force of change
B) labor market force of change
C) internal force of change
D) social force of change
Answer: C
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

5) 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
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

6) 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
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

7) Labor strikes are an example of which of the following internal change factors?
A) workforce composition
B) equipment
C) employee attitudes
D) organizational strategy
Answer: C
Diff: 3
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

2
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8) The two metaphors commonly used to describe the two views of the change process are
________.
A) smooth water and troubled water
B) calm waters and white-water rapids
C) shallow water and falling water
D) burning bridge and water over the dam
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

9) Business had been humming along just fine until the Great Recession hit. Benton Industries
adjusted by laying off employees until the recession ended then hired them back. Then it was
back to business as usual. This is an example of ________.
A) the shallow water metaphor
B) the calm waters metaphor
C) the white-water rapids metaphor
D) the falling water metaphor
Answer: B
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

10) In the ________ metaphor, change is normal and expected and managing it is a continual
process.
A) calm waters
B) white-water rapids
C) smooth water
D) water over the dam
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

11) Lewin's three-step process is consistent with ________ theory of organizational change.
A) white-water rapids
B) shallow waters
C) smooth waters
D) calm waters
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept
3
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12) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

13) According to Kurt Lewin, increasing the driving forces is a means of ________.
A) unfreezing
B) changing
C) restraining
D) refreezing
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

14) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

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


A) directing behavior away from the change
B) hindering the existing equilibrium
C) eliminating the need for future change
D) stabilizing the new situation
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

4
Copyright © 2016 Pearson Education, Inc.
16) Fuel prices keep spiraling upward so recreational vehicle manufacturers are being pressured
to produce lighter units that can be pulled by smaller trucks. This situation is representative of
________.
A) a driving force
B) a social force
C) a restraining force
D) an economic force
Answer: A
Diff: 3
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

17) "If it's not one thing, it's another. We just get used to doing things one way and suddenly
that's not good enough anymore. It's a new machine here, a new manager there, changing
customer demands–it never ends!" This is an example of ________.
A) the water over the dam metaphor
B) the calm waters metaphor
C) the white-water rapids metaphor
D) the falling water metaphor
Answer: C
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

18) 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 shallow water metaphor
B) a falling water rapid metaphor
C) a rapid water metaphor
D) a white-water rapids metaphor
Answer: D
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Application

19) The "white-water rapids" metaphor of change is consistent with Lewin's concept of
unfreezing, changing, and refreezing.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

5
Copyright © 2016 Pearson Education, Inc.
20) In the "white-water rapids" metaphor of change, change is seen as an occasional disruption in
the normal flow of events.
Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

21) 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
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

6
Copyright © 2016 Pearson Education, Inc.
22) Describe and explain 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 three-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 three-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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.1: Compare and contrast views on the change process
Classification: Concept

23) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

7
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24) Colin believes his organization could be more profitable if it could respond to customers
more quickly so he has decided to remove some management layers and increase the remaining
managers' span of control. These would be considered changes in ________.
A) structural design
B) structural process
C) degree of centralization
D) structural components
Answer: D
Diff: 3
AACSB: Application of knowledge
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application

25) 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
Diff: 2
AACSB: Application of knowledge; Analytical thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application

26) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

8
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27) Outside consultants are more likely to initiate ________ organizational changes than
insiders.
A) drastic
B) mild
C) acceptable
D) trivial
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

28) Structural component changes include ________.


A) combining departmental responsibilities
B) changing work processes
C) changing attitudes
D) changing behavior
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

29) If Kelly were to consider enhancing productivity by giving greater authority to her
subordinates and increasing formalization, she would be considering ________ changes.
A) structural
B) technological
C) people
D) automatic
Answer: A
Diff: 3
AACSB: Application of knowledge
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application

30) Changes in work processes, methods, and equipment are a part of ________ changes.
A) technological
B) structural component
C) financial
D) structural design
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

9
Copyright © 2016 Pearson Education, Inc.
31) A company that decides to decentralize its sales procedures is managing ________ changes.
A) technological
B) people
C) financial
D) structural
Answer: D
Diff: 2
AACSB: Application of knowledge; Analytical thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application; Analytical

32) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

33) After several expansions and acquisitions that resulted in duplicate positions of several
administrative functions, U.S. Big Corp. decided to reorganize itself around customers rather
than around functions. This would amount to a change in ________.
A) structural design
B) selection process
C) degree of centralization
D) structural components
Answer: A
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application

34) Competitive factors or new innovations within an industry often require managers to
introduce ________.
A) new equipment, tools, or operating methods
B) new equipment, tools or people
C) new equipment, operating methods, or structure
D) new equipment, people, or structure
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

10
Copyright © 2016 Pearson Education, Inc.
35) When supermarkets and other retailers use scanners that provide instant inventory
information, they are adopting ________ changes.
A) technological
B) people
C) efficiency
D) structural
Answer: A
Diff: 2
AACSB: Application of knowledge; Information Technology
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application

36) ________ 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) Career development
D) Comprehensive development
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

37) 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
Diff: 1
AACSB: Application of knowledge
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application

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


A) Team building
B) Intergroup development
C) Survey feedback
D) Sensitivity training
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

11
Copyright © 2016 Pearson Education, Inc.
39) An increase in the diversity of his department has led to conflict and animosity. To reduce
this and allow his team to become more productive, Lemuel has asked the Human Resources
department to provide ________ for his people.
A) survey feedback
B) sensitivity training
C) team building
D) intergroup development
Answer: B
Diff: 3
AACSB: Application of knowledge; Analytical thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Application

40) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

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


Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

42) Managers exclusively play the role of change agents.


Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

43) Changing structure includes any change in structural variables such as reporting
relationships, coordination mechanisms, employee empowerment, or job redesign.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

12
Copyright © 2016 Pearson Education, Inc.
44) Sensitivity training refers to activities that help team members learn how each member thinks
and works.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

45) 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 non-manager 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

13
Copyright © 2016 Pearson Education, Inc.
46) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.2: Classify types of organizational change
Classification: Concept

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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

48) When Joshua proposed cross-training his employees so absences and vacations would not
pose such a problem in productivity, his employees objected. 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 of income
D) belief that Joshua's changes would harm the organization
Answer: B
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Application

14
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49) Shelly was the most senior employee in the department and knew just about everything about
everyone else's job. If all employees in the department were cross-trained, Shelly would no
longer have an advantage that brought with it special privileges. 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 the changes would harm the organization
Answer: C
Diff: 3
AACSB: Application of knowledge
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Application

50) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

51) Fred's Donuts is installing new equipment in its bakery. Many employees are fearful they
will not be able to operate it. Which of the following courses of actions is best for Fred to use to
overcome this 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
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Application

15
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52) ________ involves bringing individuals directly affected by the proposed change into the
decision-making process.
A) Participation
B) Facilitation and support
C) Delegation
D) Manipulation and co-optation
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

53) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

54) ________ 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) Facilitation and support
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

55) ________ involves distorting facts to make the change appear more attractive.
A) Framing
B) Education and communication
C) Participation
D) Manipulation and co-optation
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

16
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56) One reason people resist change in an organization is that they are afraid their skill set will
be obsolete.
Answer: TRUE
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

57) People may resist change based on habit.


Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

58) Negotiation involves bringing those affected by change into the decision-making process.
Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

59) Manipulation involves the use of direct threats against the resisters.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

60) Coercion involves the use of covert attempts to influence others.


Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

61) A disadvantage of coercion is that it may be illegal and may undermine the change agent's
credibility.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

17
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62) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

18
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63) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.3: Explain how to manage resistance to change
Classification: Concept

64) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

65) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

19
Copyright © 2016 Pearson Education, Inc.
66) 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 same stories and rituals.
D) Allow subcultures to flourish.
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

67) ________ is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities.
A) Euphoria
B) Stress
C) Degeneration
D) Disease
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

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


A) constraint
B) demand
C) lien
D) necessity
Answer: A
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

69) For ________, the outcome must be unknown, and the outcome must be important.
A) uncertainty to become stress
B) habit to become stressful
C) potential stress to become actual stress
D) personal loss to become stress
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

20
Copyright © 2016 Pearson Education, Inc.
70) ________ 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) Psychological demands
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

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


A) Role ambiguity
B) Role conflict
C) Role overload
D) Role demand
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

72) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

73) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

21
Copyright © 2016 Pearson Education, Inc.
74) Which of the following is a physical symptom of stress?
A) changes in metabolism
B) changes in productivity
C) changes in attitude
D) changes in mood
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

75) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

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


A) physical
B) psychological
C) behavioral
D) financial
Answer: C
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

77) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

22
Copyright © 2016 Pearson Education, Inc.
78) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

79) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

80) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

81) A change capable organization ________.


A) links the present and the future
B) seeks incremental changes
C) encourages group-think
D) follows its competitor's footsteps
Answer: A
Diff: 3
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

23
Copyright © 2016 Pearson Education, Inc.
82) 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) encourages group-think
D) shelters breakthroughs
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

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


Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

84) Cultural change is likely to take place when a dramatic crisis occurs.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

85) A leadership change can facilitate cultural change.


Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

86) Stress is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

87) Stress can be caused by personal factors and by job-related factors.


Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

24
Copyright © 2016 Pearson Education, Inc.
88) Stress symptoms can be categorized as physical, psychological, and psychomotor.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

89) A realistic job preview during the selection process minimizes stress by reducing task
overload.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

90) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

25
Copyright © 2016 Pearson Education, Inc.
91) Write a short essay on stress, particularly as it relates to the workplace.
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 his 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

26
Copyright © 2016 Pearson Education, Inc.
92) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.4: Discuss contemporary issues in managing change
Classification: Concept

93) ________ 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) Change
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

27
Copyright © 2016 Pearson Education, Inc.
94) ________ 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

95) Which of the following is an example of a cultural variable that fosters innovation?
A) abundant resources
B) low external controls
C) low specialization
D) high job security
Answer: B
Diff: 3
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

96) When a member of her team offers an "off-the-wall" solution to a team problem, Martina 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
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Application

97) Which of the following is a structural variable that supports innovation?


A) work and non-work support
B) tolerance of conflict
C) focus on ends
D) high job security
Answer: A
Diff: 3
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

28
Copyright © 2016 Pearson Education, Inc.
98) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

99) Edwin would like to increase the level of creativity and innovation in his department. One
step he could take would be to ________.
A) decrease external control
B) decrease diversity of opinions
C) reduce resources
D) resolve conflict
Answer: A
Diff: 2
AACSB: Application of knowledge
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Application

100) Which of the following human resource variables is supportive of organizational


innovation?
A) minimal time pressure
B) less creative people
C) high interunit communication
D) abundant resources
Answer: C
Diff: 3
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

101) Earnest's team works well when given "big picture" goals and allowed to develop ideas
without detailed explanations or guidance. This would indicate Earnest's team is ________.
A) tolerant of conflict
B) an open-system focus team
C) tolerant of risk
D) accepting of ambiguity
Answer: D
Diff: 3
AACSB: Application of knowledge
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Application

29
Copyright © 2016 Pearson Education, Inc.
102) ________ 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
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

103) Most idea champions ________.


A) have extremely high self-confidence
B) are lethargic
C) avoid risks
D) are relenting
Answer: A
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

104) Design thinking can provide a process for ________.


A) brainstorming
B) coming up with things that don't exist
C) experimenting with customers
D) connecting idea champions in the design department with marketing experts
Answer: B
Diff: 3
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

105) Creativity refers to the ability to combine ideas in a unique way or to make unusual
associations between ideas.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

30
Copyright © 2016 Pearson Education, Inc.
106) Design thinking can do for innovation what TQM did for quality.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

107) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj.: LO 7.5: Describe techniques for stimulating innovation
Classification: Concept

31
Copyright © 2016 Pearson Education, Inc.

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