Managing Change and Innovation: True/False Questions

Chapter 11
Managing Change and Innovation

True/False Questions
1.
Organizational change refers to the adoption of a new idea or behavior by an organization.

Answer: True
2.
Level: 2
Page: 393
Type: F
Level: 1
Page: 393
Type: F
Level: 2
Page: 394
Type: F
Level: 1
Page: 394
Type: F
A performance gap is a disparity between the performance of the company when

compared with a competitor.
Answer: False
8.
Type: F
New department technologies, demands by labor unions, and production inefficiencies are
all examples of some external forces.
Answer: False
7.
Page: 393
After the need for change has been perceived, the next part of the change process is
implementing change.
Answer: False
6.
Level: 1
Forces for organizational change exist both in the external environment and within the
organization.
Answer: True
5.
Type: F
Given that external problems are beyond the control of management, when organizations
are caught flat-footed, failing to anticipate or respond to new needs, no one can be
blamed.
Answer: False
4.
Page: 392
Redesign and renewal of the total organization is addressed by operational change.

Answer: False
3.
Level: 1
Level: 3
Page: 395
Type: F
The disparity between existing and desired performance levels is the performance gap.
Answer: True
Level: 1
Page: 395
Type: F
Chapter Eleven * Managing Change and Innovation

Test Bank * Page 54
9.
The process of learning about current developments inside and outside the organization
that can be used to meet a perceived need for change is called search.
Answer: True
10.
Type: F
Level: 1
Page: 397
Type: F
Level: 3
Page: 397
Type: F
Level: 2
Page: 398
Type: F
Level: 1
Page: 398
Type: F
Level: 1
Page: 398
Type: F
A unit that is separate from the mainstream of the organization and is responsible for
developing and initiating innovations is called a new-venture team.
Answer: True
18.
Page: 396
The person, who, in a creativity contest, is able to develop the greatest number of new and
novel concepts, is called an idea champion.
Answer: False
17.
Level: 1
A person who sees the need for and champions productive change within the organization
is called an idea champion.
Answer: True
16.
Type: F
Idea champions feel very passionate and committed to a new product or idea despite
rejection to others.
Answer: True
15.
Page: 396
The acceptance of mistakes, the freedom to discuss ideas, and the assignment of
nonspecialists to problems are characteristics of creative organizations or departments.
Answer: True
14.
Level: 2
Centralization and short time horizon are primarily used by creative organizations.
Answer: False
13.
Type: F
Creativity is the generation of novel ideas that may meet perceived needs or respond to
opportunities for the organization.
Answer: True
12.
Page: 395
Originality, authoritarianism, and disciplined exploration are among the characteristics of

the creative individuals.
Answer: False
11.
Level: 1
Level: 1
Page: 399
Type: F
Skunklabor is a separate small, informal, highly autonomous, and often selective group
that focuses on breakthrough ideas for the business.
Test Bank * Page 55
Answer: False
19.
Type: F
Level: 2
Page: 403
Type: F
Level: 2
Page: 403
Type: A
Level: 2
Page: 404
Type: F
Level: 3
Page: 405
Type: F
Level: 1
Page: 405
Type: F
When a change involves multiple departments, top management support is especially

important.
Answer: True
27.
Page: 401
Two possible tactics for overcoming resistance to change are coercion and negotiation.
Answer: True
26.
Level: 1
When users have power to resist, coercion tactic should be used for overcoming resistance
to change.
Answer: False
25.
Type: F
The communication and education approach for overcoming resistance to change should
be used when the change is technical and the users need accurate information and analysis
to understand change.
Answer: True
24.
Page: 399
Large cost savings from reduced inventories and labor savings by needing fewer workers
to handle inventory can be driving forces associated with the implementation of just-intime inventory control systems.
Answer: True
23.
Level: 2
Change, according to Kurt Lewin, was a result of the competition between forced and
unforced fields.
Answer: False
22.
Type: F
The lack of information about past events refers to uncertainty.

Answer: False
21.
Page: 399
One value of the idea incubator is that an employee with a good idea has somewhere to go
with it, rather than having to shop the idea all over the company and hope someone pays
attention.
Answer: True
20.
Level: 2
Level: 2
Page: 405
Type: F
A technological change is related to the organizations production process.

Answer: True
Level: 1
Page: 407
Type: F

Test Bank * Page 56
28.
The types of organizational change are strategy, technology, structure, government, and
culture/people.
Answer: False
29.
Type: F
Level: 1
Page: 410
Type: F
Level: 2
Page: 410
Type: F
Level: 2
Page: 412
Type: F
Level: 1
Page: 413
Type: F
Level: 1
Page: 413
Type: F
The idea in the large group intervention is to get a sample of people who may have an
interest in the organization, gather perspectives from the selected parts of the system, and
allow the sample to create a collective future.
Answer: False
37.
Page: 409
Organizational development involves the application of behavioral science techniques to

improve an organization's effectiveness and success.
Answer: True
36.
Level: 1
Mergers/acquisitions, organizational decline, and conflict management are the three types
of current problems that organizational development managers face.
Answer: True
35.
Type: F
Conflict/people change refers to a change in employees values, norms, attitudes, beliefs,

and behavior.
Answer: False
34.
Page: 408
Technology change involves the hierarchy of authority, goals, administrative procedures,

and managerial systems.
Answer: False
33.
Level: 1
A price-based competition means delivering products and services faster than competitors.
Answer: False
32.
Type: F
An approach to product change that emphasizes shared development of innovations

among several departments is referred to as the horizontal linkage model.
Answer: True
31.
Page: 407
When ideas are initiated at lower organizational levels and channeled upward for approval,
it is called the top-down approach.
Answer: False
30.
Level: 1
Level: 3
Page: 413
Type: F
The three distinct steps for achieving behavioral and attitudinal change with organizational
development are planning, changing and stabilizing.
Test Bank * Page 57
Answer: False
38.
Level: 3
Page: 414-415 Type: F
In the unfreezing step, participants must be made aware of problems and be willing to
change.
Answer: True
Level: 1
Page: 416
Type: F
Multiple Choice Questions

1.
An example of organizational change is

a.
b.
c.
d.
e.
the switch to a new production method.

the decision to offer a new product line.
the introductions of a new pay for performance system.
all of the above.
a and b only.
Answer: d
2.
Type: F
change.
development.
structure.
intervention.
responsibility.
Answer: a
Level: 2
Page: 392
Type: F
______ change is based on organizational efforts to improve basic work and

organizational processes in different areas of the business.
a.
b.
c.
d.
e.
Transformational
Unplanned
Government-forced
Incremental
SWOT
Answer: d
4.
Page: 392
The adoption of a new idea or behavior by an organization is known as organizational

a.
b.
c.
d.
e.
3.
Level: 2
Level: 1
Page: 393
Type: F
______ changes involve redesign and renewal of the total organization.

a.
b.
c.
Transformational
Unplanned
Government-forced
Test Bank * Page 58
d.
e.
Operational
Competitive
Answer: a
5.
Level: 1
Internal and external forces for change exist

Organization managers monitor forces and become aware of need for change
Initiation of change
Modification of change to accommodate culture/people
Implement change
Answer: d
Level: 2
Type: F
Organizational plans
Global competition
Company problems
Organizational needs
Employees
Answer: b
Level: 2
Page: 394
Type: F
Favorite Films was recently forced to change its compensation packages due to demands
made by its labor unions. This is an example of
a.
b.
c.
d.
e.
change due to environmental forces.

an environmental opportunity.
change due to internal forces.
an illegal tactic by labor unions.
competitive force.
Answer: c
8.
Page: 393
Environmental forces for change include which of these?

a.
b.
c.
d.
e.
7.
Type: F
Which of the following is not a part of change sequence?

a.
b.
c.
d.
e.
6.
Page: 393
Level: 2
Page: 394
Type: A
If top managers select a goal of rapid company growth, __________actions will have to
be changed to meet that growth.
a.
b.
c.
d.
e.
environmental
internal
external
competitive
facilitative
Answer: b
Level: 2
Page: 394
Type: F

Test Bank * Page 59
9.
At which stage of the change process do managers evaluate problems and opportunities?
a.
b.
c.
d.
e.
Monitor forces for change

Need for change
Initiate change
Implement change
Internal forces
Answer: b
10.
A critical incident
A performance gap
An environmental factor
A behavioral occurrence
An OT analysis
Answer: b
Page: 395
Type: F
Environmental opportunity
Performance gap
Behavioral occurrence
Critical incident
Organizational structural imbalance
Answer: b
Level: 1
Page: 395
Type: F
Heather is seeing, on a regular basis, a difference between current and expected

performance levels. She should begin
a.
b.
c.
d.
e.
to gather more data.

to implement change.
to perceive a need for change.
to change the reward system.
all of the above.
Answer: c
13.
Level: 1
Which of these indicate a disparity between existing and desired performance levels?
a.
b.
c.
d.
e.
12.
Page: 394 Type: F
Which of the following creates a sense of urgency so that others in the organization will
recognize and understand the need for change?
a.
b.
c.
d.
e.
11.
Level: 2
Level: 3
Page: 395
Type: A
Recently, a high level manager at Medal Molding noted a rise in customer satisfaction
complaints. This rise is inconsistent with Medals goals in this area. This manager has
identified
a.
a performance gap.
Test Bank * Page 60
b.
c.
d.
e.
a critical incident.
a behavioral occurrence.
an environmental opportunity.
a SWOT analysis.
Answer: a
14.
Level: 2
Page: 395
Type: F
The process of learning about current developments that can be used to meet a perceived
need for change is referred to as
a.
b.
c.
d.
e.
creativity.
search.
strategic analysis.
SWOT analysis.
an idea champion.
Answer: b
Level: 1
Page: 395
Type: F
Search, creativity, and new-venture teams are all associated with which of the following
steps of the change process?
a.
b.
c.
d.
e.
Initiating change
Recognizing the need for change
Implementing change
Need for change
Analyzing feedback
Answer: a
17.
Type: A
implement change.
monitor the environment.
initiate change.
monitor the internal organization.
wait for conditions to change.
Answer: c
16.
Page: 395
The step after the need for change has been recognized is to
a.
b.
c.
d.
e.
15.
Level: 2
Level: 2
Page: 395-97
Type: F
The generation of novel ideas that may meet perceived needs or respond to opportunities
for the organization is called
a.
b.
c.
d.
e.
a search initiative.
creativity.
an ideal champion.
a great idea.
strategic analysis.
Test Bank * Page 61
Answer: b
18.
Page: 396
Type: F
Problem solving
Organizational development
Creativity
Brainstorming
Perceived solution
Answer: c
Level: 1
Page: 396
Type: F
All of the following are characteristics of creative organizations EXCEPT

a.
b.
c.
d.
e.
use of teams.
risk taking norms.
centralization.
long term horizon.
loose controls.
Answer: c
Level: 2
Page: 396
Type: F
Which of the following is NOT a characteristic of a creative individual?

a.
b.
c.
d.
e.
Conceptual theory
Undisciplined exploration
Persistence and focused approach
Authorization and dependent
All of the above are characteristic of a creative individual
Answer: d
22.
Level: 2
______ is the generation of novel solutions to perceived problems.

a.
b.
c.
d.
e.
21.
Type: F
originality
playfulness
curiosity
rationality
open-mindedness
Answer: d
20.
Page: 396
All of the following are characteristics of creative individuals EXCEPT

a.
b.
c.
d.
e.
19.
Level: 1
Level: 2
Page: 397
Type: F
Ashli, a new employee of yours, strikes you as curious, open-minded, and receptive to
new ideas. Keep your eye on Ashli, for she may very well be
a.
an outstanding performer.
Test Bank * Page 62
b.
c.
d.
e.
an individual with a high need for achievement.

a satisfied employee.
a creative individual.
None of the above.
Answer: d
23.
Level: 2
Page: 397
Type: F
______ is a person who sees the need for and fights for productive change in an
organization
a.
b.
c.
d.
e.
A creative individual
A catalyst
An idea champion
A sponsor
A critic
Answer: c
Level: 1
Page: 398
Type: F
Robert has tremendous technical skills and frequently comes up with valuable ideas.
However, he has little idea how to promote it within the organization. Robert is a good
example of
a.
b.
c.
d.
e.
an inventor.
an idea champion.
a sponsor.
a critic.
an in-transition employee.
Answer: a
26.
Type: A
are characterized by an unusually high number of routine jobs.

are loosely structured.
have little ambiguity.
have too many layers of management.
use a centralized decision making approach.
Answer: b
25.
Page: 397
Creative organizations
a.
b.
c.
d.
e.
24.
Level: 2
Level: 2
Page: 398
Type: A
Samantha has average technical skills but her real strengths lay in visualizing the benefits
of other's ideas and in finding financial and political support for these ideas. Samantha is
an excellent example of
a.
b.
c.
a critic.
a sponsor.
an idea champion.
Test Bank * Page 63
d.
e.
an inventor.
a bureaucrat.
Answer: c
27.
Level: 2
Type: A
Stephanie, as a vice-president of marketing, is far removed from the research and

development department. However, she keeps a close eye on what is happening in R & D
and tries to support good ideas whenever she can by removing unnecessary organizational
obstacles. Stephanie is a good example of
a.
b.
c.
d.
e.
an inventor.
a sponsor.
a critic.
an idea champion.
none of the above.
Answer: b
28.
Page: 398
Level: 2
Page: 398
Type: A
The role of the ______ is to prevent people in other roles from adopting a bad idea.
a.
b.
c.
d.
e.
critic
inventor
sponsor
ombudsman
obstructionist
Answer: a
29.
Level: 2
Page: 398
Type: F
is(are) important role(s) to be played during the process of organizational

change.
a.
b.
c.
d.
e.
The idea champion

The critic
The sponsor
Inventor
All of the above
Answer: e
30.
Level: 2
Page: 398
Type: F
Which of the following describes a person who is passionately committed to a new

product of idea despite rejection by others?
a.
b.
c.
d.
e.
An idea champion
A sponsor
A new-venture team
A skunkwork
An investor
Test Bank * Page 64
Answer: a
31.
Level: 2
Page: 399
Type: F
Which variation of new venture teams is described as a small separate, informal, highly
autonomous, and often selective group that focuses on breakthrough ideas for the
business?
a.
b.
c.
d.
e.
An idea champion
A sponsor
A new-venture team
A skunkwork
An inventor
Answer: d
Level: 2
Page: 399
Type: F
A fund providing resources from which individuals and groups draw to develop new ideas,
products, or businesses is referred to as a(n)
a.
b.
c.
d.
e.
personal fund.
development fund.
new-venture fund.
change fund.
mutual fund.
Answer: c
34.
Type: F
new product group

matrix group
new-venture team
vertical group
change team
Answer: c
33.
Page: 398
The ______ is a unit separate from the rest of the organization responsible for the
development of a major innovation.
a.
b.
c.
d.
e.
32.
Level: 1
Level: 1
Page: 399
Type: F
The biggest barrier to organizational change is usually

a.
b.
c.
d.
e.
disagreements about the benefits.

uncertainty about the future.
a lack of understanding and trust.
fear of personal loss.
too much trust.
Answer: d
Level: 2
Page: 401
Type: F

Test Bank * Page 65
35.
Beths Bracelets has proposed some major structural changes within their organization.
Some of the employees fear that they will lose power with the changes. They begin
voicing resistance to the changes. What barrier to change are they exhibiting?
a.
b.
c.
d.
e.
Disagreements about the benefits

Self interests
A lack of understanding and trust
Uncertainty
Goals and rewards
Answer: b
36.
Type: A

Self interests
A lack of trust
Goals and assessments
Competitors
Answer: c
Level: 2
Page: 401
Type: A
Adams Ants, Inc. has decided to restructure the entire organization. You hold a meeting
with your employees to notify them of the change. You do not give them any detailed
information. Which of the barriers to change would you expect your employees to
exhibit?
a.
b.
c.
d.
e.

Uncertainty about the future
A lack of trust
Fear of organizational loss
All of the above.
Answer: b
38.
Page: 401
After every quarterly board meeting, Trudys Trinkets, Inc. announces big changes. They
usually do not follow through on these changes. What is causing this lack of enthusiasm?
a.
b.
c.
d.
e.
37.
Level: 2
Level: 2
Page: 401
Type: A
You are the production manager for Charlies Construction, Inc. You decide to change the
production procedure to increase efficiency. One of your long-time foremen is resisting
the change, insisting that the idea won't work. He is exhibiting what obstacle to change?
a.
b.
c.
d.
e.
Different assessment and goals

Uncertainty about the future
A lack of trust
All of the above
b and c only
Answer: a
Level: 2
Page: 401
Type: A

Test Bank * Page 66
39.
What is force field analysis?

a.
b.
c.
d.
e.
The analysis of the forces that drive customers to a certain organization

The analysis of the forces that drive the organization of a company
The process of determining which forces drive and which resist a proposed change
The process by which an organization forces changes to occur
None of the above
Answer: c
40.
Level: 2
Page: 403
Type: A
The development of highly specialized computers to verify daily inventory checks at WalMart, would be an example of which type of change?
a.
b.
c.
d.
e.
Communication
Coercive
Traditional
Cultural
New product
Answer: a
Level: 2
Page: 404
Type: F
Communication and education tactic to change implementation should be used when

a.
b.
c.
d.
e.
initiators clearly have power.

group has power over implementation.
change is technical.
users need to feel involved.
group will lose out in change.
Answer: c
43.
Type: F
force field analysis.

barrier analysis.
negotiation.
assessment of goals.
all of the above.
Answer: a
42.
Page: 403
Garrett International is anticipating changes in their production procedures. You have

been assigned to identify potential barriers to the change and suggest solutions to these
barriers. You are using
a.
b.
c.
d.
e.
41.
Level: 2
Level: 2
Page: 404
Type: F
The ______ approach to change implementation should be used when users have power to
resist
Test Bank * Page 67
a.
b.
c.
d.
e.
education
participation
coercion
top management support
domination
Answer: b
44.
Level: 2
Communication and education

Top management support
Participation
Coercion
Negotiation
Answer: a
Level: 2
Type: A
Negotiation
Participation
Coercion
Education
Answer: a
Level: 2
Page: 405
Type: F
Which approach to change implementation should be used when a crisis exists?

a.
b.
c.
d.
e.
Education
Participation
Coercion
None of the above
Answer: c
47.
Page: 404
Which approach should a group use to resist change if the group has power over
implementation and if the group will lose out in the change?
a.
b.
c.
d.
e.
46.
Type: F
E-Z, Inc. is changing from a manual ordering system to a computer-based ordering

system. As part of the implementation procedures, the company invests in detailed,
comprehensive training classes. What approach to change implementation is E-Z using?
a.
b.
c.
d.
e.
45.
Page: 404
Level: 2
Page: 405
Type: F
Which of these uses formal bargaining to win acceptance and approval of a desired
change?
a.
b.
c.
Education
Participation
Coercion
Test Bank * Page 68
d.
e.
Negotiation
Answer: d
48.
Level: 1
Swing Set Sams, Inc. is making some changes to the work schedules of its employees.
Some of the employees are not happy with the changes. As their manager, George tells
them that they can accept it or leave. What approach to change implementation is George
using?
a.
b.
c.
d.
e.
Negotiation
Participation
Coercion
Education
Answer: d
49.
Level: 2
Page: 405
Type: A
Before implementing new changes in work schedules, Car Decals works with the union to
ensure a smooth transition. What approach to change is this company using?
a.
b.
c.
d.
e.
Negotiation
Participation
Coercion
Education
Answer: a
50.
Level: 2
Page: 405
Type: A
symbolizes to all employees that the change is important for the organization.
a.
b.
c.
d.
e.
Education
Coercion
Participation
Negotiation
Answer: e
51.
Page: 405 Type: F
A
a.
b.
c.
d.
e.
Level: 1
Page: 405
Type: F
change is related to the organization production process.

new product
technological
structural
culture/people
competitive
Test Bank * Page 69
Answer: b
52.
Level: 2
New product
Technological
Structural
Culture/people
Product/structure
Answer: b
Level: 2
Competitive
Coercive
Technological
Cultural
New product
Answer: e
Level: 1
Type: F
Bottom-up approach
Top-down approach
Horizontal-linkage approach
Diagonal approach
None of the above
Answer: a
Level: 1
Page: 408
Type: F
Which change requires many departments such as manufacturing, marketing, and research
to work together for successful change?
a.
b.
c.
d.
e.
New product
Technological
Structural
Culture/people
Government
Answer: a
56.
Page: 408
means that ideas are initiated at lower organizational levels and channeled upward
for approval.
a.
b.
c.
d.
e.
55.
Page: 407-408 Type: F
Which type of change refers to an organizations product or service output?

a.
b.
c.
d.
e.
54.
Type: F
_______ changes are encouraged by a flexible, decentralized structure.

a.
b.
c.
d.
e.
53.
Page: 407
Level: 2
Page: 408
Type: F
The top down process for change does not generally work for changes in technology
because
Test Bank * Page 70
a.
b.
c.
d.
e.
people need to team up for these changes.

top managers lack the expertise in technological changes.
employee dissatisfaction is a force for change.
technological changes are designed to make the product more efficient.
none of the above.
Answer: b
57.
Level: 2
Page: 408
Type: A
Which of the following statements is not true about successful development of a new
product?
a.
b.
c.
d.
e.
The marketing department has a good understanding of what the customer wants.
The technological development of the product must be completed before other
departments can commence work.
Members from key departments cooperate in the development of the product.
The horizontal linkage model is frequently followed.
All of the above are true.
Answer: b
Level: 2
Page: 409
Type: F
Shared development of innovations among several departments is emphasized by the

______ approach to product change.
a.
b.
c.
d.
e.
vertical
horizontal linkage model
top down
bottom-up
diagonal
Answer: b
60.
Type: F
bottom-up change.
top-down change.
horizontal linkage model.
diagonal change.
none of the above.
Answer: a
59.
Page: 408
A worker at a Harley-Davidson assembly plant had an idea that would cut assembly time
in half. She created a prototype model to show to her supervisor. This is an example of
a.
b.
c.
d.
e.
58.
Level: 2
Level: 1
Page: 409
Type: F
New product changes require coordination that occurs with the

a.
b.
c.
top-down approach
bottom-up approach
horizontal linkage model
Test Bank * Page 71
d.
e.
time-based approach
vertical approach
Answer: c
61.
Level: 2
Service competition
Time-based competition
Parallel competition
All of the above
None of the above
Answer: b
Level: 1
Type: F
product
culture/people
technological
structural
none of the above
Answer: d
Level: 1
Page: 410
Type: F
______ changes may involve hierarchy, goals, and procedures.

a.
b.
c.
d.
e.
New product
Technological
Structural
Culture/people
Customer
Answer: c
64.
Page: 410
Almost any change in how the organization is managed falls under the category of
______ change.
a.
b.
c.
d.
e.
63.
Type: F
What is the term that is associated with a strategy of competition based on the ability to
deliver products and services faster than the competitors?
a.
b.
c.
d.
e.
62.
Page: 409
Level: 2
Page: 410
Type: F
______ are the champions of structural change.

a.
b.
c.
d.
e.
Middle and top managers

Top and lower-level managers
Middle and lower-level managers
Lower-level managers and operatives
Operatives and customers
Answer: a
Level: 2
Page: 411
Type: F

Test Bank * Page 72
65.
A company has decided to change their management structure and remove a layer of
management. What approach to change would be most successful?
a.
b.
c.
d.
e.
Bottom-up change
Top-down change
Horizontal linkage model
Diagonal communication change
Time-based
Answer: b
66.
Type: A
Conflict management
Organizational revitalization
Organizational development
Organizational linkage
Horizontal linkage
Answer: c
Level: 2
Page: 413
Type: F
Organizational development can help managers address problems such as

merger/acquisitions, conflict management, and
.
a.
b.
c.
d.
e.
cultural changes
force field analysis
organizational productivity
organizational decline/revitalization
none of the above
Answer: d
68.
Page: 411
is defined by the text as the application of behavioral science knowledge to

improve an organization's health and effectiveness through its ability to cope with
environmental changes, improve internal relationships, and increase problem-solving
capabilities.
a.
b.
c.
d.
e.
67.
Level: 2
Level: 2
Page: 413
Type: F
Which of the following is NOT a type of current problem that organizational development
can help address?
a.
b.
c.
d.
e.
Mergers
Acquisitions
Diversification
Organizational decline
Conflict management
Answer: c
Level: 2
Page: 413
Type: F

Test Bank * Page 73
69.
There are many organizational development activities, which are effective in solving many
different problems.
enhances the cohesiveness and success of organizational
groups.
a.
b.
c.
d.
e.
Team building
Survey feedback
Intergroup activities
Process-Consultation activities
Symbolic management
Answer: a
70.
Level: 2
Team building activities

Survey feedback activities
Intergroup activities
Process-consolidation activities
Symbiotic leadership activities
Answer: b
Level: 1
Page: 414
Type: F
A step in the diagnosis stage of organizational development in which participants are made
aware of problems is referred to as
a.
b.
c.
d.
e.
change agent.
changing.
refreezing.
unfreezing.
exercising.
Answer: d
72.
Type: F
______ is a type of OD intervention in which questionnaires on organizational climate and

other factors are distributed among employees and the results reported back to them by a
change agent.
a.
b.
c.
d.
e.
71.
Page: 414
Level: 1
Page: 416
Type: F
Organizational development specialists identify three distinct steps for achieving

behavioral and attitudinal changes. These are
a.
b.
c.
d.
e.
freezing, changing, and intervention.

unfreezing, change agent, and freezing.
unfreezing, intervention, and refreezing.
intervention, refreezing, and change agent.
none of the above.
Answer: c
Level: 2
Page: 416
Type: F

Test Bank * Page 74
Scenario Questions
ScenarioKandi Apple
The continuing development and improvement of computer information systems has made a
powerful impression on Kandi Apple, CEO of Merry-Go-Rounds (MGR). The current computer
system at MGR is seven years old, and while still highly useful and reliable, Kandi is wondering if
a new system would be more efficient and more useful. Kandi recognized that some of her
managers would prefer to keep the old system, while others have been requesting that the
company update its information capability.
1.
Kandi recognized that creativity is an essential ingredient in developing solutions to

organizational problems. Which of the following is NOT a characteristic of a creative
manager?
a.
b.
c.
d.
e.
Conceptual fluency and open mindedness

Originality
Focused approach
Commitment
All of the above are characteristics.
Answer: e
2.
Kandi also recognizes that there are four roles in organizational change. Which of the
following is NOT one of those roles?
a.
b.
c.
d.
e.
Inventor
Champion
Sponsor
Investor
All of the above are included.
Answer: d
3.
Type: A
Type: A
In planning how to implement the new system, Kandi can anticipate some resistance to the
new system. This resistance can come from all of the following, EXCEPT
a.
b.
c.
d.
e.
self interest of the resisting employees.

lack of understanding of the new system.
uncertainty, or a lack of information.
different departments pursuing different goals.
All of the above can create resistance.
Answer: e
Type: A
Test Bank * Page 75
4.
To overcome the resistance to the new system, Kandi can use any of the following
techniques, EXCEPT
a.
b.
c.
d.
e.
education and communication.

participation in designing the system.
negotiation.
coercion.
All of the above can be used.
Answer: e
Type: A
Short-Answer Questions
1.
is defined as the adoption of a new idea or behavior by an organization.

Answer: Organizational change
2.
__________ involves redesigning and renewing the entire organization.

Answer: Incremental change
3.
Page: 395
is the generation of novel ideas that may meet perceived needs or respond
to opportunities for the organization.
Answer: Creativity
7.
Page: 395
is the process of learning about current developments inside or outside the

organization that can be used to meet the perceived need for change.
Answer: Search
6.
Page: 394
A disparity between existing and desired performance levels is known as a(n) _______.
Answer: performance gap
5.
Page: 393
__________ originate in all environmental sectors, including customers, competitors,

technology, economic forces, and the international arena.
Answer: Environmental factors
4.
Page: 392
Page: 396
A(n) _______ is a person who sees the need for and champions productive change within
the organization.
Test Bank * Page 76
Answer: idea champion

8.
The _______ role in organizational change involves providing a "reality test."

Answer: critic
9.
Page: 398
A(n) __________ is a separate small, informal, highly autonomous, and often secretive
group that focuses on breakthrough ideas for the business.
Answer: skunkwork
10.
Page: 399
A
is a unit separate from the rest of the organization and is responsible for
developing and initiating a major innovation.
Answer: new-venture team
11.
Page: 398
Page: 399
List the four reasons why employees tend to resist change.

Answer:
Self-interest, lack of understanding and trust, uncertainty, and different assessments and
goals.
Pages: 401
12.
List the five specific tactics that can be used to overcome employee resistance to change.
Answer:
Communication and education, participation, negotiation, coercion, and top management
support.
Pages: 405
13.
_______ change is related to the organization's production process, i.e., how the
organization does its work.
Answer: Technology
14.
Page: 407
List the three characteristics usually shared by companies that successfully develop new
products.
Answer:
The characteristics include (1) people in marketing have a good understanding of
customer needs; (2) technical specialists are aware of recent technological developments
and make effective use of new technology; and (3) members from key departments
cooperate in the development of the new product.
Pages: 409
Test Bank * Page 77
15.
An approach to product change that emphasizes shared development of innovations

among several departments is called
.
Answer: horizontal linkage model
16.
A strategy based on the ability to deliver products and services faster than competitors is
called
.
Answer: fast-cycle teams
17.
Page: 410
A
change refers to a change in employees' values, norms, attitudes, beliefs,
and behavior.
Answer: culture/people
19.
Page: 414
An approach that brings together participants from all parts of the organization (and may
include key outside stakeholders as well) to discuss problems or opportunities and plan for
major change is called
.
Answer: large-group intervention
23.
Page: 414
A type of OD intervention in which questionnaires on organizational climate and other

factors are distributed among employees and the results reported back to them by a
change agent is called
.
Answer: survey feedback
22.
Page: 413
A type of OD intervention that enhances the cohesiveness of departments by helping

members learn to function as a team is called
.
Answer: team building
21.
Page: 412
The application of behavioral science knowledge to improve an organization's health and

effectiveness is known as _______.
Answer: organizational development
20.
Page: 410
A change in the administrative procedures of the organization is an example of a(n)

_______ change.
Answer: structural
18.
Page: 409
Page: 415
The second stage, __________, occurs when individuals experiment with new behavior
and learn new skills to be used in the workplace.
Answer: changing
Page: 416
Test Bank * Page 78
24.
An OD specialist who contracts with an organization to facilitate change is called a(n)

__________.
Answer: change agent
25.
Page: 416
List the three distinct steps for achieving behavioral and attitudinal change.
Answer: Unfreezing, changing, and refreezing.
26.
A step in the diagnosis stage of organizational development in which participants are made
aware of problems in order to increase their willingness to change their behavior is called
.
Answer: unfreezing
27.
Pages: 416
Page: 416
A step in the reinforcement stage of organizational development in which individuals

acquire a desired new skill or attitude and are rewarded for it by the organization is
referred to as
.
Answer: refreezing
Page: 417
Essay Questions
1.
Describe the four characteristics of creative people and organizations.

ANSWER:
The four characteristics are conceptual fluency/open mindedness, originality, less
authority/independent, playful and curious, and persistent and committed.
Level: 1
2.
Page: 397
Name and briefly describe the four roles in organizational change.

ANSWER:
The first role is the inventor, who develops and understands the technical aspects of the
idea, but does not know how to win support for the idea or how to make a business of it.
The second role is the champion, who believes in the idea, sees the benefits, confronts
costs, and obtains financial and political support for the idea. The third role is the sponsor,
a higher level manager who removes organizational barriers and protects the idea within
the organization. The fourth role is the critic, who provides a reality test, looks for
shortcomings and defines hard-nosed criteria that the idea must pass.
Test Bank * Page 79
Level: 2
3.
Pages: 398
Explain the concept of force field analysis.

ANSWER:
Force field analysis was first proposed by Kurt Lewin. He argued that change was the
result of the competition between driving and restraining forces. Driving forces are the
forces behind the change and are supportive of it. Restraining forces resist the proposed
change, counterbalancing the driving forces. To successfully implement change,
management should analyze these two sets of forces and their relative strengths.
Management can facilitate successful implementation by reducing the strength of the
restraining forces or by eliminating them.
Level: 3
4.
Pages: 403
Describe the tactics for overcoming resistance to change.

ANSWER:
The four tactics for overcoming resistance to change are: (1) communications/education
which is used when change is technical, (2) participation, which is used when the users
need to feel involved, (3) negotiation, which is used when the group has power over
implementation, (4) coercion, which is utilized when a crises exists, and finally (5) top
management support, which is use when change involves multiple departments of
reallocation of resources.
Level: 2
5.
Page: 404-405
What is organizational change and what are the four major types of change?
ANSWER:
Organizational change is the adoption of a new idea or behavior by an organization. The
four major types of change are in (1) technology, (2) new products, (3) structure, and (4)
culture and people.
Level: 2
6.
Pages: 407
Explain the horizontal linkage model.

ANSWER:
The horizontal linkage model is defined as an approach to product change that emphasizes
shared development of innovations among several departments. People from various
departments, as well as suppliers and customers, meet frequently in teams and/or task
forces to share ideas and solve problems together.
Test Bank * Page 80
Level: 2
Page: 409-410

Test Bank * Page 81

Managing Change and Innovation: True/False Questions

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Chapter 11

Managing Change and Innovation

Organizational change refers to the adoption of a new idea or behavior by an organization.

A performance gap is a disparity between the performance of the company when

Redesign and renewal of the total organization is addressed by operational change.

Chapter Eleven * Managing Change and Innovation

Originality, authoritarianism, and disciplined exploration are among the characteristics of

When a change involves multiple departments, top management support is especially

The lack of information about past events refers to uncertainty.

A technological change is related to the organizations production process.

Chapter Eleven * Managing Change and Innovation

Organizational development involves the application of behavioral science techniques to

Conflict/people change refers to a change in employees values, norms, attitudes, beliefs,

Technology change involves the hierarchy of authority, goals, administrative procedures,

An approach to product change that emphasizes shared development of innovations

Page: 414-415 Type: F

Multiple Choice Questions

An example of organizational change is

the switch to a new production method.

______ change is based on organizational efforts to improve basic work and

The adoption of a new idea or behavior by an organization is known as organizational

______ changes involve redesign and renewal of the total organization.

Internal and external forces for change exist

change due to environmental forces.

Environmental forces for change include which of these?

Which of the following is not a part of change sequence?

Chapter Eleven * Managing Change and Innovation

Monitor forces for change

Heather is seeing, on a regular basis, a difference between current and expected

to gather more data.

Page: 394 Type: F

All of the following are characteristics of creative organizations EXCEPT

Which of the following is NOT a characteristic of a creative individual?

______ is the generation of novel solutions to perceived problems.

All of the following are characteristics of creative individuals EXCEPT

an individual with a high need for achievement.

are characterized by an unusually high number of routine jobs.

Stephanie, as a vice-president of marketing, is far removed from the research and

is(are) important role(s) to be played during the process of organizational

The idea champion

Which of the following describes a person who is passionately committed to a new

new product group

The biggest barrier to organizational change is usually

disagreements about the benefits.

Chapter Eleven * Managing Change and Innovation

Disagreements about the benefits

Disagreements about the benefits

Disagreements about the benefits

Different assessment and goals

Chapter Eleven * Managing Change and Innovation

What is force field analysis?

The analysis of the forces that drive customers to a certain organization

Communication and education tactic to change implementation should be used when

initiators clearly have power.

force field analysis.

Garrett International is anticipating changes in their production procedures. You have

Communication and education

Which approach to change implementation should be used when a crisis exists?

E-Z, Inc. is changing from a manual ordering system to a computer-based ordering

Page: 405 Type: F

change is related to the organization production process.

Page: 407-408 Type: F

Which type of change refers to an organizations product or service output?