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COPYRIGHT PAGE
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of this work may be used, modified, or reproduced in any form or by any means except as
expressly permitted under the License Agreement.
2. In decentralized companies, decisions are made and problems are solved at lower
levels by employees who are closer to the problem in question.
True (Easy; Comprehension)
6. Formalized structures are those in which there are few written rules and
regulations.
False: Formalized structures are those in which there are many written rules
and regulations. (Medium; Comprehension)
9. When a company has a diverse product line, each product will have unique
demands, deeming divisional structures more useful.
True (Medium; Knowledge)
Multiple Choice
1. A disadvantage of formalization in organization structure is:
a. Decision making is at a faster pace
b. Formalized structure is associated with increased motivation and job
satisfaction
c. Strategic decision making occurs often
d. Reduced innovativeness occurs because employees are used to behaving
in a certain manner
(d: Medium; Comprehension)
Fill-in
1. __________________ refers to how work is coordinated between individuals and
teams within the organization.
(Organizational structure: Easy; Knowledge)
7. Structures control employee behavior using written rules, so that employees have
little _____________ to decide on a case-by-case basis.
(autonomy: Medium; Comprehension)
17. ____________ structures are flexible and decentralized, with low levels of
formalization.
(Organic: Easy; Knowledge)
Short Answer
1. What are the four aspects of organizational structure that have been frequently
studied in the literature and are mentioned in your text?
Centralization, formalization, hierarchical levels and departmentalization.
(Easy; Knowledge)
Multiple Choice
1. Despite potential benefits, the disadvantages of a matrix structure include which
of the following?
a. Power struggles or turf wars among managers are lessened, taking away
an important source of new ideas and innovation.
b. Managers will spend less effort coordinating their work, believing that
someone else can pick-up the slack.
c. Role ambiguity or role conflict is very low
d. There is potential for interpersonal conflict with team members as well as
with leaders
(d: Medium; Knowledge)
Fill-in
1. Organizations with a design that combines a traditional structure and a product
structure are called ________________ organizations.
(matrix: Medium; Knowledge)
Short Answer
1. Who did Starbucks form a successful partnership with and why?
Starbucks formed a successful partnership with PepsiCo to market its
Frappuccino cold drinks. (Easy; Knowledge)
Section 3
True/False
1. The act of including employees in the change process can drastically reduce
opposition to new methods.
True (Easy; Knowledge)
2. In some organizations, the act of including employees in the change process is not
possible, and instead organizations can recruit a small number of opinion leaders
to promote the benefits of coming changes.
True (Medium; Knowledge)
3. Change management is an important leadership skill that spans the entire range of
P-O-L-C functions.
True (Easy; Comprehension)
4. The U.S. Department of Labor and the Organization for Economic Co-operation
and Development have reported that the average age of the U.S. workforce will
decrease as the baby boom generation nears retirement age.
False: The U.S. Department of Labor and the Organization for Economic
Co-operation and Development have reported that the average age of the
U.S. workforce will increase as the baby boom generation nears retirement
age. (Easy; Knowledge)
Multiple Choice
1. Organizational change can take the form of which of the following?
a. Structure, strategy, policies, or culture
b. Change should be planned on quarterly basis and measured for progress
c. Fundamentally, organizational change is a process that involved effective
products or services
d. Change should moderate so as to not disrupt corporate cultural norms..
(a: Medium; Comprehension)
Fill-in
1. Organizational change is often a response to changes in the ________________.
(environment: Medium; Knowledge)
7. ________________ are defenders of the new way and actually encourage others
around them to give support to the change effort.
(Enthusiastic support: Medium; Knowledge)
Short Answer
1. What does it mean for companies that the workforce is getting older?
Organizations may realize that as the workforce gets older, the types of
benefits workers prefer may change. Work arrangements such as flexible
work hours and job sharing may become more popular as employees remain
in the workforce even after retirement. (Medium; Comprehension)
2. How did companies in the music industry respond when peer-to-peer file sharing
threatened their business?
Their first response was to sue the users of file sharing software. They also
investigated ways to make it impossible to copy a CD or DVD. (Easy;
Knowledge)
Section 4
True/False
1. According to Lewin, executing change without prior preparation is likely to lead
to failure.
True (Medium; Knowledge)
2. In order to convince people that change is needed, the change leader must
convince every person individually.
False: In order to convince people that change is needed, the change leader
does not have to convince every person individually. (Medium;
Comprehension)
4. Breaking up the proposed change into phases may be a bad idea because it creates
the wrong targets.
False: Breaking up the proposed change into phases may be a good idea
because it creates smaller targets. (Medium; Comprehension)
5. When the new behaviors employees are expected to demonstrate are made part of
an organization’s reward, those behaviors are more likely to be taken seriously
and repeated.
True (Medium; Knowledge)
Multiple Choice
1. A number of things organizations can do prior to change to prepare employees
include which of the following?
a. Provide employees with HR support in the event they choose to leave the
organization.
b. Allow employees to participate
c. Effectively communicate the pros and cons of the expected change.
d. Unfreeze
(b: Medium; Comprehension)
4. In order to make change permanent, the organization may benefit from sharing
the results of the change effort with:
a. Employees
b. Managers
c. Customers
d. Board members
(a: Medium; Comprehension)
Fill-in
1. One of the most useful frameworks in the area of change is the three-stage mode
of planned changed developed by psychologist _______________.
(Kurt Lewin: Medium; Knowledge)
Short Answer
1. Describe Kurt Lewin’s model of change.
This model assumes that change will encounter resistance. Lewin’s process
of change emphasizes the importance of preparation or unfreezing before
change, and reinforcement of change afterwards, or refreezing. (Easy;
Knowledge)
3. How did Lou Gerstner, the former CEO of IBM, execute a successful
transformation of the company in the early 1990s?
Gerstner achieved cooperation by keeping the crisis front and center. He did
not want to lose the sense of urgency. (Medium; Comprehension)
Section 5
True/False
1. You may think that your idea is great, but listening to those who resist may not
give you valuable ideas about your idea.
False: You may think that your idea is great, but listening to those who resist
may give you valuable ideas about your idea. (Medium; Knowledge)
2. If you are trying to dramatically change the way things are done, you will find
resistance is lowest.
False: If you are trying to dramatically change the way things are done,
you will find that resistance is greater. (Medium; Knowledge)
*****
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