Management, 11ce

Chapter 6: Innovation and Adaptability

Management Canadian
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Chapter 6 Innovation and Adaptability

Question ID: 6-1

Question Type: TF
Question: It is sufficient for organizations to be flexible in order to be successful.
A) True
B) False
Answer: FALSE
Diff: 1 Page Ref: 137
Skill: Recall
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

Question ID: 6-2

Question Type: TF
Question: Successful organizations need to be more than just flexible in order to compete
in today’s business world.
A) True
B) False
Answer: TRUE

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Diff: 1 Page Ref: 137

Skill: Applied
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

Question ID: 6-3

Question Type: TF
Question: For business success, today’s organization need to be proactive which means
they are able to adapt to the circumstances as required.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 138
Skill: Applied
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

Question ID: 6-4

Question Type: TF
Question: Innovation for organizations is about developing new products and services as
customer needs change.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 138
Skill: Recall
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

Question ID: 6-5

Question Type: TF
Question: Innovations is about creating economic and social prosperity.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 138
Skill: Recall
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

Question ID: 6-6

Question Type: TF
Question: Managing change is an integral part of every manager's job.
A) True
B) False
Answer: TRUE

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Diff: 1 Page Ref: 139

Skill: Recall
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-7

Question Type: TF
Question: Technology and competition are internal forces for change.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 139
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-8

Question Type: TF
Question: One of the biggest challenges facing both large and small companies today is
the fluctuating labour market and finding suitable employees.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 139
Skill: Applied

Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-9

Question Type: TF
Question: Culture of innovation is important for companies in the face of rapid
technological changes.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 139
Skill: Recall
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-10

Question Type: TF
Question: The marketplace is an external force for change.
A) True
B) False

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Answer: True
Diff: 1 Page Ref: 139
Skill: Recall
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-11

Question Type: TF
Question: A change in demand for health care employees is an example of an economic
change.
A) True
B) False
Answer: FALSE
Diff: 3 Page Ref: 140
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-12

Question Type: TF
Question: The "calm waters" metaphor envisions a trip over unfamiliar waters with a
crew who has never before worked together.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-13

Question Type: TF
Question: The "white water rapids" metaphor described the situation that managers faced
up until the late 1980s.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 142
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-14

Question Type: TF
Question: The prevailing model for handling change in "white waters" is best illustrated
in Kurt Lewin's three-step description of the change process.
A) True
B) False

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Answer: FALSE
Diff: 3 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-15

Question Type: TF
Question: Lewin's three-step process treats change simply as a break in the organization's
equilibrium state.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-16

Question Type: TF
Question: In the "white-water rapids" metaphor of change, managers should expect
change at any time, and it may last for unspecified lengths of time.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 142
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-17

Question Type: TF
Question: Change agents can be either managers or nonmanagers.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 314360
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-18

Question Type: TF
Question: Managers exclusively play the role of change agents.
A) True
B) False
Answer: FALSE
Diff: 1 Page Ref: 143
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-19

Question Type: TF
Question: Computerization is a technological change that replaces people with machines.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 144
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-20

Question Type: TF
Question: Changing structure includes any change in structural variables such as
reporting relationships, coordination mechanisms, employee empowerment, or job
redesign.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 144
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-21

Question Type: TF
Question: The term organizational development focuses on techniques to change people
and the nature and quality of interpersonal work relationships.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-22

Question Type: TF
Question: Change threatens the investment managers have already made in the status quo
in the workplace.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-23

Question Type: TF
Question: One reason people resist change is that it substitutes ambiguity for uncertainty.
A) True
B) False
Answer: FALSE
Diff: 3 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-24

Question Type: TF
Question: Sensitivity training is a method of changing behaviour through unstructured
group interaction.
A) True
B) False
Answer: TRUE
Diff: 3 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-25

Question Type: TF
Question: Sensitivity training refers to activities that help team members learn how each
member thinks and works.
A) True
B) False
Answer: FALSE
Diff: 1 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-26

Question Type: TF
Question: One reason people resist change is the belief that the change is incompatible
with the goals and interests of the organization.
A) True
B) False
Answer: TRUE
Diff: 3 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-27

Question Type: MC
Question: One reason people resist change in an organization is that their future has been
set and cannot be changed.
A) True
B) False
Answer: FALSE
Diff: 1 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-28

Question Type: TF
Question: Top managers can distance themselves from operational change efforts as these
are the responsibility of the line managers.
A) True
B) False
Answer: FALSE
Diff: 3 Page Ref: 146
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-29

Question Type: TF
Question: Employees need not be given the reasons for organizations changes made by
top managers.
A) True
B) False
Answer: FALSE
Diff: 3 Page Ref: 147
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-30

Question Type: TF
Question: Creativity is the process of taking an idea and turning it into a useful product,
service, or method of operation.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 148
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-31

Question Type: TF
Question: Culture of adaptability proactively identifies new problems, and challenges and
develops novel solutions.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 148
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-32

Question Type: TF
Question: Organic structures positively influence innovation.
A) True
B) False
Answer: True
Diff: 2 Page Ref: 150
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-33

Question Type: TF
Question: Having creative employees and groups is enough to help the organization
become more innovative and adaptive.
A) True
B) False
Answer: FALSE
Diff: 3 Page Ref: 149
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-34

Question Type: TF
Question: The right organizational environment is crucial for innovation and adaptability
to prosper.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 150
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-35

Question Type: TF
Question: Frequent interunit communication helps to facilitate innovation.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 150
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-36

Question Type: TF
Question: Having creative people is enough to get innovative products and work methods
in an organization.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 151
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-37

Question Type: TF
Question: An organizational culture that fosters innovation accepts ambiguity and has a
low tolerance for risk.
A) True
B) False
Answer: FALSE
Diff: 3 Page Ref: 151
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-38

Question Type: TF
Question: New idea champions are extremely self-confident, persistent, energetic, and
have a tendency to take risks.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 152
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-39

Question Type: TF
Question: Adaptive organizations need clear and efficient structures in place to meet the
changing environmental challenges.
A) True
B) False
Answer: FALSE
Diff: 3 Page Ref: 152
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-40

Question Type: TF
Question: Minimal structural and physical barriers allow employees to share information
and foster adaptability.
A) True
B) False
Answer: TRUE
Diff: 3 Page Ref: 152
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-41

Question Type: TF
Question: Cultural change is easier when the organizational culture is strong.
A) True
B) False
Answer: FALSE
Diff: 1 Page Ref: 154
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-42

Question Type: TF
Question: The existence of a dramatic organizational crisis can facilitate cultural change.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 154
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-43

Question Type: TF
Question: A leadership change can facilitate cultural change.
A) True
B) False
Answer: TRUE
Diff: 1 Page Ref: 154
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-44

Question Type: TF
Question: In order to make change happen successfully, managers need to understand
their own role in the process.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 154
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-45

Question Type: TF
Question: Adaptive organizations recognize that change is perpetual.
A) True
B) False
Answer: TRUE
Diff: 2 Page Ref: 155
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-46

Question Type: TF
Question: Adaptive organizations should discourage employees who are viewed as
mavericks since their ideas are outside the mainstream.
A) True
B) False
Answer: FALSE
Diff: 2 Page Ref: 155
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-47

Question Type: MC
Question: Successful organizations are not only efficient and effective, they also must be
__________.
A) global
B) conventional
C) adaptable
D) logical
E) visible
Answer: C
Diff: 2 Page Ref: 137
Skill: Recall
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-48

Question Type: MC
Question: In organizational success, flexible means ____________, whereas adaptable
means ____________.
A) being proactive; being innovative
B) reacting to events; being proactive
C) being proactive; reacting to events
D) being change capable; being innovative
E) being innovative; being change capable
Answer: B
Diff: 3 Page Ref: 138
Skill: Recall
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

Question ID: 6-49

Question Type: MC
Question: For successful organizations, innovation is about ____________.
A) developing new products and services
B) changing and upgrading technology
C) hiring creative employees
D) creating economic and social prosperity
E) developing efficiency in operations
Answer: D
Diff: 3 Page Ref: 138
Skill: Recall
Learning Objective: 6-1 Understand the importance of building an innovative and
adaptable organization.

Question ID: 6-50

Question Type: MC
Question: Internal forces that create the need for organizational change include _______.
A) necessary upgrades to technology
B) changes in the kinds of employees needed
C) organizational strategy adjustments
D) HR practices in response to new employment law
E) new customer contact procedures
Answer: C
Diff: 3 Page Ref: 140
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-51

Question Type: MC
Question: Organizational __________ involves any alteration in structure, technology, or
people.
A) innovation
B) change
C) creativity
D) technology
E) reengineering
Answer: B
Diff: 1 Page Ref: 143
Skill: Recall
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-52

Question Type: MC
Question: The Canadian Securities Administrators rules of 2004 is an example of which
external force for change?
A) marketplace
B) government laws and regulations
C) economic changes
D) workforce
E) technology
Answer: B
Diff: 2 Page Ref: 139
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-53

Question Type: MC
Question: Changing recruitment strategies to attract and retain health care specialists due
to increased needs for those workers is an example of what kind of external force for
change?
A) marketplace
B) human resources strategy
C) labour markets
D) organizational development
E) strategy redefinition
Answer: C
Diff: 2 Page Ref: 139
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-54

Question Type: MC
Question: Which of the following is an internal force for change for an organization?
A) new competition
B) governmental laws and regulations
C) technology upgrades
D) labour markets
E) strategy modification
Answer: E
Diff: 2 Page Ref: 140
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-55

Question Type: MC
Question: The __________ metaphor compares an organization to a group of complete
strangers aboard a raft travelling at night toward an uncertain destination.
A) uncertain waters
B) white-water rapids
C) calm waters
D) red sky
E) blue sky
Answer: B
Diff: 2 Page Ref: 142
Skill: Applied
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-56

Question Type: MC
Question: Until the late 1980s, the __________ metaphor described the situation faced by
most managers.
A) uncertain waters
B) white-water rapids
C) calm waters
D) red sky
E) blue sky
Answer: C
Diff: 2 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-57

Question Type: MC
Question: In the ________ metaphor, change is normal and expected and managing it is a
continual process.
A) calm waters
B) white-water rapids
C) blue sky
D) design thinking
E) TQM
Answer: B
Diff: 1 Page Ref: 142
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-58

Question Type: MC
Question: One of the primary views of the change process is ________, while the other
view is ________.
A) problematic; encouraged
B) occasional; continuous
C) costly; conservative
D) optimistic; pessimistic
E) unplanned; planned
Answer: B
Diff: 3 Page Ref: 141
Skill: Applied
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-59

Question Type: MC
Question: The __________ metaphor is best illustrated by Kurt Lewin's model of the
change process.
A) uncertain waters
B) white-water rapids
C) calm waters
D) storm warning
E) blue horizon
Answer: C
Diff: 2 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-60

Question Type: MC
Question: The __________ metaphor is most consistent with uncertain and dynamic
environments that are increasingly dominated by information, ideas, and knowledge.
A) new frontier
B) white-water rapids
C) calm waters
D) storm warning
E) blue horizon
Answer: B
Diff: 2 Page Ref: 142
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-61

Question Type: MC
Question: According to Kurt Lewin, increasing the driving forces, which directs
behaviour away from the status quo, is a means of doing which of the following?
A) unfreezing
B) changing
C) melting
D) refreezing
E) restraining forces
Answer: A
Diff: 2 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-62

Question Type: MC
Question: 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
E) sustaining the status quo
Answer: D
Diff: 2 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-63

Question Type: MC
Question: According to Lewin, the objective of refreezing is to __________.
A) direct behaviour away from the status quo
B) hinder movement away from existing equilibrium
C) eliminate the need for future change
D) stabilize the new situation
E) establish the existing equilibrium
Answer: D
Diff: 2 Page Ref: 142
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-64

Question Type: MC
Question: Question: University student who has just graduated and is now facing the
process of finding a job and moving into the business world is in what step of the change
process?
A) Unfreezing the status quo
B) Changing into a new state
C) Refreezing the status quo
D) Changing into new habits
E) Freezing the equilibrium
Answer: A
Diff: 2 Page Ref: 141
Skill: Applied
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-65

Question Type: MC
Question: Driving forces are forces that drive change and direct behaviour ________.
A) away from the status quo
B) toward increased resistance
C) away from the old jobs to new jobs
D) toward chaos
E) toward the existing equilibrium state
Answer: A
Diff: 1 Page Ref: 141
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-66

Question Type: MC
Question: In organizations, people who act as catalysts and assume the responsibility for
managing the change process are called __________ agents.
A) creativity
B) change
C) innovation
D) technocratic
E) catalytic
Answer: B
Diff: 1 Page Ref: 143
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-67

Question Type: MC
Question: In spurring organizational change, outside consultants are usually more
__________ whereas internal managers tend to be more __________.
A) drastic; cautious
B) highly paid; risky
C) resistant; bold
D) cautious; friendly
E) interested; scared
Answer: A
Diff: 3 Page Ref: 143
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-68

Question Type: MC
Question: Which of the following is part of the change category of technology?
A) job redesign
B) equipment and tools
C) policies and procedures
D) work specialization
E) coordinating mechanisms
Answer: B
Diff: 1 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-69

Question Type: MC
Question: According to our textbook, managers' options for change fall into which three
categories?
A) environment, technology, and mission
B) structure, technology, and people
C) rules, procedures, and management
D) competitors, environment, and processes
E) structure, technology, and products
Answer: B
Diff: 3 Page Ref: 143
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-70

Question Type: MC
Question: Changes in work specialization, chain of command, span of control, job design,
or degree of centralization fall under which category of options that a manager can
change?
A) structure
B) technology
C) people
D) strategy
E) process
Answer: A
Diff: 1 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-71

Question Type: MC
Question: Initiating change involves identifying which organizational areas might need to
be changed and ________.
A) discussing changes with the board of directors
B) hiring a consultant to confirm that the change is needed
C) forming a committee to determine that the need for change is real
D) putting the change process in motion
E) preparing people for change
Answer: D
Diff: 2 Page Ref: 143
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-72

Question Type: MC
Question: Apex Corporation has reorganized its marketing division, and the reporting
structure has completely changed. This is an example of a change in __________.
A) structure
B) technology
C) people
D) culture
E) process
Answer: A
Diff: 2 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-73

Question Type: MC
Question: Changes in work processes, methods, and equipment used fall under which
category of options that a manager can change?
A) structure
B) process
C) people
D) strategy
E) technology
Answer: E
Diff: 2 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-74

Question Type: MC
Question: A company that decides to decentralize its sales procedures is managing what
change category?
A) structure
B) culture
C) people
D) technology
E) processes
Answer: A
Diff: 1 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-75

Question Type: MC
Question: Organizational development techniques seek to bring about change in which of
the basic change categories?
A) structure
B) technology
C) people
D) mission
E) process
Answer: C
Diff: 2 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-76

Question Type: MC
Question: Techniques to change people and the quality of interpersonal work
relationships are termed ________.
A) operations development
B) organizational development
C) communications training
D) human resources management
E) strategy innovation
Answer: B
Diff: 2 Page Ref: 145
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-77

Question Type: MC
Question: If ABC Foods hired a consultant to decrease group friction and enhance
cooperative work relationships, this would be an example of managing what change
category?
A) technology
B) people
C) process
D) structure
E) strategy
Answer: B
Diff: 2 Page Ref: 145
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-78

Question Type: MC
Question: The term __________ focuses on techniques or programs to change people and
the nature of interpersonal work relationships.
A) decentralization
B) organizational development
C) job redesign
D) operations improvement
E) strategy formulation
Answer: B
Diff: 2 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-79

Question Type: MC
Question: Which organizational development (OD) technique is a technique for assessing
attitudes and perceptions, identifying discrepancies in these, and resolving the differences
by using survey information in feedback groups?
A) team building
B) intergroup development
C) survey feedback
D) sensitivity training
E) process consultation
Answer: C
Diff: 2 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-80

Question Type: MC
Question: What OD 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
E) process consultation
Answer: B
Diff: 2 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-81

Question Type: MC
Question: Before using the same OD techniques to implement behavioral changes across
different countries, managers need to be sure that they've taken into account
___________.
A) interpersonal relationships
B) organizational differences
C) employee attitudes
D) societal differences
E) cultural characteristics
Answer: E
Diff: 2 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-82

Question Type: MC
Question: Which OD technique is used when an outside consultant helps managers to
understand how interpersonal processes are affecting the organization?
A) intergroup development
B) survey feedback
C) process consultation
D) team building
E) sensitivity training
Answer: C
Diff: 2 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-83

Question Type: MC
Question: Which OD technique is designed to change behaviour through unstructured
group interaction?
A) intergroup development
B) personality assessment
C) process consultation
D) team building
E) sensitivity training
Answer: E
Diff: 3 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-84

Question Type: MC
Question: People resist change because change replaces the known with _______.
A) innovation and creativity
B) process redesign
C) strategy reformulation
D) ambiguity and uncertainty
E) certainty and predictability
Answer: D
Diff: 2 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-85

Question Type: MC
Question: Change threatens the investment that people have already made in ________.
A) job training
B) the status quo
C) new technology
D) new job procedures
E) the strategic plan
Answer: B
Diff: 1 Page Ref: 146
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-86

Question Type: MC
Question: Resistance to change is likely to be lower if managers ____________.
A) lay off people who resist change
B) offer bonuses for working harder
C) offer training if needed
D) change work procedures often
E) install technology to improve working conditions
Answer: C
Diff: 3 Page Ref: 147
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-87

Question Type: MC
Question: Employees are more willing to accept change if management __________.
A) offers bonuses for working harder
B) install technology to improve working conditions
C) proceeds at a manageable pace to implement change
D) keeps top management apart from the change process
E) has a firm change management plan before communicating to employees
Answer: C
Diff: 3 Page Ref: 147
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-88

Question Type: MC
Question: 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 which disrupt the process.
C) They should give individual employees a role in the change process.
D) They should adapt the changes made by their competitors.
E) They should ensure that established work processes are not disturbed.
Answer: C
Diff: 3 Page Ref: 147
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-89

Question Type: MC
Question: __________ refers to the ability to combine ideas in a unique way or to make
unusual associations between ideas.
A) Innovation
B) Imagination
C) Creativity
D) Abstract thinking
E) Inspiration
Answer: C
Diff: 2 Page Ref: 148
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-90

Question Type: MC
Question: __________ is the process of taking a creative idea and turning it into a useful
product, service, or method of operation.
A) Innovation
B) Imagination
C) Creativity
D) Conversion
E) Inspiration
Answer: A
Diff: 2 Page Ref: 148
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-91

Question Type: MC
Question: Adaptability requires forward-thinking leadership within organizations
whereby they proactively _____________________.
A) create new strategies
B) identify disruptive innovations
C) hire creative employees
D) apply design thinking techniques to problems
E) instigate major changes in technology
Answer: B
Diff: 3 Page Ref: 148
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-92

Question Type: MC
Question: The chairman of the Tata Group of India decided that in order for his business
to survive in the global economy he had to make innovation built into the DNA of his
company. One unique way innovation is encouraged at Tata is to_________________.
A) Provide all employees with cross cultural training
B) Upgrade all technology to global standards
C) Implement an internal innovation competition
D) Implement team based operational structure
E) Bring in an external innovation expert
Answer: C
Diff: 3 Page Ref: 149
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-93

Question Type: MC
Question: Organizations can become more innovative and adaptive by using ________.
A) The systems approach
B) Lewin’s three-step change process
C) Focusing on changing people
D) Survey methods to get employee feedback
E) TQM approach
Answer: A
Diff: 3 Page Ref: 149
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-94

Question Type: MC
Question: Which of the following is an example of a structural variable that can foster
innovation?
A) mechanistic structure
B) organic structure
C) adequate resources
D) closed-system focus
E) high external controls
Answer: B
Diff: 2 Page Ref: 150
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-95

Question Type: MC
Question: Which of the following is a cultural value that supports innovation?
A) tolerance of the impractical
B) low tolerance of risk
C) high external controls
D) focus on means, not ends
E) closed-system focus
Answer: A
Diff: 2 Page Ref: 150
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-96

Question Type: MC
Question: Which of the following human resource variables is supportive of
organizational innovation?
A) tolerance of conflict
B) selection of Type A employees
C) high job security
D) unionization
E) closed-system focus
Answer: C
Diff: 2 Page Ref: 150
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-97

Question Type: MC
Question: Which of the following cultural variable is characteristic of innovative
organizations?
A) high external controls
B) low tolerance of risk
C) focus on means rather than ends
D) mechanistic structure
E) open-system focus
Answer: E
Diff: 2 Page Ref: 150
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-98

Question Type: MC
Question: An innovative culture is likely to have __________.
A) high external controls
B) low tolerance for risk
C) closed-system focus
D) high tolerance of conflict
E) negative feedback
Answer: D
Diff: 2 Page Ref: 151
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-99

Question Type: MC
Question: __________ actively and enthusiastically support new ideas, build support,
overcome resistance, and ensure that innovations are implemented.
A) White knights
B) Whistle-blowers
C) Dream weavers
D) Corporate gladiators
E) Idea champions
Answer: E
Diff: 1 Page Ref: 152
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-100

Question Type: MC
Question: British retailer Tesco is an adaptive organization that has developed the
capacity to ____________.
A) expand globally in a short time
B) implement new technology systems in all operations
C) bring in new products and service on continuous basis
D) grow with standardized procedures in operations
E) implement continuous change
Answer: E
Diff: 3 Page Ref: 152
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-101

Question Type: MC
Question: An adaptive organization requires _________________.
A) minimal structural barriers
B) long term strategic plans
C) fewer employees
D) invisible external controls
E) strong structure
Answer: A
Diff: 2 Page Ref: 152
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-102

Question Type: MC
Question: In an adaptive organization, employees _______________.
A) create rules regarding their own work
B) are offered flexible benefits
C) continually acquire and share new knowledge
D) continually participate in cultural activities
E) are hired and fired according to management changes
Answer: C
Diff: 3 Page Ref: 152
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-103

Question Type: MC
Question: Design thinking can provide a process for ________.
A) brainstorming new work processes
B) coming up with things that don't exist
C) experimenting with customers
D) connecting idea champions in the design department with marketing experts
E) applying OD to acceptance of ambiguity
Answer: B
Diff: 2 Page Ref: 152
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-104

Question Type: MC
Question: Which of the following represents the relationship between organizational
culture and change?
A) Culture and change are naturally compatible.
B) Culture tends to be very resistant to change.
C) Culture can change in months but not weeks.
D) Culture can never be purposely changed.
E) Culture is impossible to change.
Answer: B
Diff: 2 Page Ref: 153
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-105

Question Type: MC
Question: Cultural change is most likely to take place when most or all of the following
conditions exist: dramatic crisis occurs, leadership changes hands, _________.
A) the organization is young and the culture is strong
B) the organization is young and small, and the culture is weak
C) the organization is old and the culture is weak
D) the organization is small and the culture is strong
E) the organization is old and large, and the culture is strong
Answer: B
Diff: 1 Page Ref: 153
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-106

Question Type: MC
Question: Which of the following is a mistake that managers make when leading change?
A) creating a vision
B) forming a guiding coalition
C) communicating a sense of urgency
D) quitting before the change is finished
E) making changes part of the organizational culture
Answer: D
Diff: 2 Page Ref: 155
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-107

Question Type: MC
Question: An adaptive organization ________.
A) links the present and the future
B) builds on tried and true strategies
C) encourages customer interaction
D) follows its competitor's footsteps
E) encourages leadership change
Answer: A
Diff: 2 Page Ref: 155
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-108

Question Type: MC
Question: Which of the following is a characteristic of adaptive organizations?
A) focus on the planned strategy
B) ensure homogeneous teams
C) make learning a way of life
D) focus on the present
E) delegate change initiatives to lower levels
Answer: C
Diff: 2 Page Ref: 155
Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Refer to the scenario below to answer the following questions.

Lightspeed.com (Scenario)

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

Question ID: 6-109

Question Type: MC
Question: If Edwin decided to remove a layer of managers and increase the span of
control, he would be making a change in which of the following categories?
A) technology
B) people
C) process
D) structure
E) strategy
Answer: D
Diff: 2 Page Ref: 143
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-110

Question Type: MC
Question: If Edwin decided to introduce new methods and work processes, he would be
making a change in which of the following categories?
A) technology
B) people
C) strategy
D) culture
E) structure
Answer: A
Diff: 3 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-111

Question Type: MC
Question: If Edwin decided to replace some employee work time with a new telephone
menu system, this would be an example of __________.
A) job rotation
B) work specialization
C) formalization
D) decentralization
E) automation
Answer: E
Diff: 1 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-112

Question Type: MC
Question: If Edwin wanted to change people and the quality of interpersonal work
relationships, he could do so by implementing __________ programs.
A) job redesign
B) organizational design
C) organizational development
D) interpersonal development
E) process redesign
Answer: C
Diff: 2 Page Ref: 145
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-113

Question Type: MC
Question: Edwin decided that his employees could benefit from __________, an OD
technique designed to change behaviour through unstructured group interaction.
A) survey feedback
B) process consultation
C) team building
D) intergroup development
E) sensitivity training
Answer: E
Diff: 3 Page Ref: 145
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Refer to the scenario below to answer the following questions.

The Management Seminar (Scenario)

Mandy recently returned from her two-day managerial seminar, How to Totally Change
Your Management and Leadership Style in Two Days. Even though she felt the seminar
was worthless (as she had predicted), it did give her a chance to think about how to
change the culture of her organization. She had been brought in by the new CEO as a
change agent, and her position had the authority to make an impact. She felt that the
recent hostile takeover by their parent company had shocked everyone, especially given
that the entire organization consisted of only 150 people and had been in business for
only five years. She felt this might be the time to attempt cultural change while everyone
was still thinking in terms of change. As she tossed her leadership seminar manual into
the wastebasket, she considered what might be her first step and how well the cultural
change would work.

Question ID: 6-114

Question Type: MC
Question: Which of the following is a favourable condition that might help Mandy to
implement cultural change?
A) her new leadership skills acquired at the seminar
B) the recent purchase of her company
C) previous stable leadership
D) her managerial level
E) the strong culture at her company
Answer: B
Diff: 3 Page Ref: 153
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-115

Question Type: MC
Question: Which of the following statements is true concerning the leadership of Mandy's
company and its effect on cultural change?
A) New top leadership can be an advantage.
B) New top leadership is rarely an advantage.
C) It is important for the cultural change to begin with employees first.
D) Leadership issues have little impact on cultural change.
E) Old leaders tend to be better candidates for managing cultural change than new
leaders.
Answer: A
Diff: 3 Page Ref: 153
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-116

Question Type: MC
Question: Which of the following are favourable conditions that might help facilitate
cultural change at Mandy's company?
A) The organization is old and the culture is weak.
B) The organization is young and small.
C) The organization is large and the culture is strong.
D) The organization is old and small.
E) The organization is young and the culture is strong.
Answer: B
Diff: 3 Page Ref: 153
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-117

Question Type: MC
Question: Which of the following might be a favourable condition that can help facilitate
cultural change at Mandy's company?
A) The culture is weak.
B) The organization is old.
C) Technology is stable.
D) The organization is large.
E) A crisis has not occurred.
Answer: A
Diff: 2 Page Ref: 153
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Refer to the scenario below to answer the following questions.

New Ideas Inc. (Scenario)

Though New Ideas Inc. has been in business for 30 years, the company and its employees
have seemingly been in a constant state of change. Paul Gill has been president of New
Ideas for the last 15 years. During this time, he has had to change the strategic focus of
the company three times. The employees have become vocal recently about the decrease
in their bonus cheques and are wanting to increased profits. It seems as though his
competition is always introducing new products into the market, and the niches Gill
thought New Ideas held leadership in are always changing. Recently the government has
been active in passing new legislation to increase the control of the product packaging
and product contents. The technology used to manufacture the products is constantly
improving with the use of robotics to make the process more efficient.

Question ID: 6-118

Question Type: MC
Question: The change in strategic focus of the company is a(n) __________ force for
change.
A) external
B) internal
C) marketplace
D) economic force of change
E) technological
Answer: B
Diff: 1 Page Ref: 140
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-119

Question Type: MC
Question: The robotics change in the manufacturing process to make it more efficient is
the result a competitor lowering their price. Therefore it is a(n) __________ force for
change.
A) external
B) internal
C) regulatory
D) economic
E) technological
Answer: A
Diff: 1 Page Ref: 140
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Copyright © 2016 Pearson Canada Inc. 6-38

 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-120

Question Type: MC
Question: The employees' complaints about their reduced bonus cheques are an example
of a(n) __________ force for change.
A) external
B) labour market
C) internal
D) social
E) cultural
Answer: C
Diff: 1 Page Ref: 140
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-121

Question Type: MC
Question: New Ideas is a company that focuses on new ideas, uses technology that
changes frequently, and has strong competition in a dynamic market. This is consistent
with the __________ metaphor of the change process.
A) calm waters
B) blue horizon
C) situational strategy
D) white-water rapids
E) systems thinking
Answer: D
Diff: 1 Page Ref: 142
Skill: Applied
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-122

Question Type: MC
Question: Before Gill took over as president, the previous 15 years had been a period of
stability and steady predictable growth for New Ideas. This period was consistent with
the __________ metaphor of the change process.
A) calm waters
B) blue horizon
C) situational strategy
D) white-water rapids
E) systems thinking
Answer: A
Diff: 1 Page Ref: 141
Skill: Applied
Learning Objective: 6-3 Compare and contrast views of the change process.

Copyright © 2016 Pearson Canada Inc. 6-39

 Management, 11ce
Chapter 6: Innovation and Adaptability

Refer to the scenario below to answer the following questions.

Innovation Variables at Lightspeed (Scenario)

Edwin Lee leads a cross-functional product development team at Lightspeed.com, a

software company with employees in 10 countries around the world) The members of
Edwin's team are hard-working and highly creative, but he wonders if there are ways to
stimulate more innovation from the team. As the company has grown, so too has the
bureaucracy. Numerous rules and policies have been introduced, and decision making has
become highly centralized. This has resulted in resource limitations and tight project
deadlines. Fortunately, with the use of web cams and other Internet technology, Edwin is
able to hold frequent meetings with his global cross-functional team. And despite some
structural limitations, the company's culture does seem to foster creative solutions.
Diverse opinions are encouraged, and even the most unrealistic, ''off-the-wall'' solutions
are accepted without criticism. Mistakes are treated as learning opportunities—a good
thing, since there have definitely been some mistakes!

Question ID: 6-123

Question Type: MC
Question: Which of the following structural suggestions would most likely improve
innovation at Lightspeed?
A) limit resources
B) increase time pressures
C) reduce interunit communication
D) become more organic
E) increase external controls
Answer: D
Diff: 2 Page Ref: 150
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-124

Question Type: MC
Question: Which structural variable that can foster innovation is present already at
Lightspeed?
A) organic structures
B) abundant resources
C) minimal time pressure
D) low external controls
E) high interunit communication
Answer: E
Diff: 2 Page Ref: 150
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Copyright © 2016 Pearson Canada Inc. 6-40

 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-125

Question Type: MC
Question: Which cultural variable relates to the acceptance of "off-the wall" solutions at
Lightspeed?
A) acceptance of ambiguity
B) tolerance of the impractical
C) tolerance of risk
D) tolerance of conflict
E) open system focus
Answer: B
Diff: 2 Page Ref: 151
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-126

Question Type: MC
Question: Which cultural variable relates to the acceptance of diverse opinions at
Lightspeed?
A) acceptance of ambiguity
B) tolerance of the impractical
C) tolerance of risk
D) tolerance of conflict
E) open system focus
Answer: D
Diff: 2 Page Ref: 151
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-127

Question Type: MC
Question: Which cultural variable relates to the acceptance of mistakes at Lightspeed?
A) acceptance of ambiguity
B) tolerance of the impractical
C) tolerance of risk
D) tolerance of conflict
E) open system focus
Answer: C
Diff: 2 Page Ref: 151
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Copyright © 2016 Pearson Canada Inc. 6-41

 Management, 11ce
Chapter 6: Innovation and Adaptability

Refer to the scenario below to answer the following questions.

The Practice (Scenario)

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

Question ID: 6-128

Question Type: MC
Question: If Kelly decided to enhance productivity by giving greater authority to other
technicians and increasing formalization, she would be addressing which category of
change?
A) structure
B) technology
C) people
D) process
E) culture
Answer: A
Diff: 2 Page Ref: 144
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-129

Question Type: MC
Question: Kelly's office has two doctors with very different work habits. Each has their
own team of technicians who are used to the doctor's preferences and are comfortable
with their routines; they basically do the same thing every day. When Kelly suggested
that they train all of the technicians to work with both doctors, the result was significant
resistance. The technicians were concerned that they would no longer be able to perform
their usual daily tasks. The primary source of their resistance was __________.
A) increased ambiguity
B) forced change of habit
C) concern over personal loss
D) the belief that Kelly's changes would harm the organization
E) loss of status and authority
Answer: B
Diff: 2 Page Ref: 146
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-130

Question Type: MC
Question: A technician named Shelly was particularly concerned about the changes. She
had spent a number of years befriending a particular doctor and had earned special
privileges, such as taking extended lunches with her husband, because of it. Shelly's
resistance to change came from her __________.
A) belief that uncertainty would increase
B) fear that she would be forced out of her habit
C) concern over personal loss
D) belief that Kelly's changes would harm the organization
E) concern about increased ambiguity
Answer: C
Diff: 2 Page Ref: 146
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-131

Question Type: MC
Question: A technician named Nelly was very concerned that some of the changes
proposed by Kelly would lead to increased filing errors that would ultimately affect
patient care. Nelly's resistance to change came from her __________.
A) belief that uncertainty would increase
B) fear that she would be forced out of her habit
C) concern over personal loss
D) belief that Kelly's changes would harm the organization
E) concern about increased ambiguity
Answer: D
Diff: 2 Page Ref: 146
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-132

Question Type: MC
Question: In an effort to change the attitudes, perceptions, and stereotypes that each
group of technicians holds about each other, Kelly decides to use the popular OD
technique of __________.
A) process consultation
B) survey feedback
C) team building
D) sensitivity training
E) intergroup development
Answer: E
Diff: 3 Page Ref: 145
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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Chapter 6: Innovation and Adaptability

Refer to the scenario below to answer the following questions.

Fred Fryer's Donuts (Scenario)

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

Question ID: 6-133

Question Type: MC
Question: The installation of the new equipment at is an example of ________.
A) people change
B) management change
C) technological change
D) structural change
E) strategy change
Answer: C
Diff: 2 Page Ref: 144
Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-134

Question Type: MC
Question: Which of the following courses of actions is best for Fred and the team leaders
to practice if they need to overcome employee resistance?
A) ignore the employees who resist the change
B) present minimal facts to the employees
C) terminate employees who resist the change
D) educate employees and communicate with them
E) promise bonuses upon completion of the changes
Answer: D
Diff: 2 Page Ref: 147

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Chapter 6: Innovation and Adaptability

Skill: Applied
Learning Objective: 6-2 Describe the forces that create the need for change, innovation,
and adaptability.

Question ID: 6-135

Question Type: MC
Question: Which situational factor seems to be prompting the cultural changes at Fred
Fryer’s Donuts?
A) The business is young and small.
B) There is a leadership change.
C) A crisis has occurred.
D) The culture is weak.
E) The company is mechanistic.
Answer: D
Diff: 3 Page Ref: 154
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-136

Question Type: MC
Question: The 10 percent of the employees that are expected to leave during the
computerized equipment training, will leave because they ______________.
A) are too old to learn the new technologies
B) cannot pass the final test of how to operate the equipment
C) fear that they are unable to learn the new methods
D) they were going to leave anyway soon
E) are not entrepreneurial enough to survive in the new environment
Answer: C
Diff: 2 Page Ref: 146
Skill: Applied
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-137

Question Type: ES
Question: In a short essay, describe, compare, and contrast the "calm waters" and "white-
water rapids" views of organizational change.
Answer:
1. Up until the late 1980s, the calm waters metaphor was fairly description of the
situation that managers faced. It's 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
that drive change and direct behaviour away from the status quo, decreasing the

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Chapter 6: Innovation and Adaptability

restraining forces, which are forces that resist change and push behaviour toward the
status quo, or combining the two approaches.
2. The white-water rapids metaphor is consistent with the discussion of uncertain and
dynamic environments. It's also consistent with the dynamics of a world that's
increasingly dominated by information, ideas, and knowledge. The stability and
predictability of the calm waters metaphor do not exist. Disruptions in the status quo are
not occasional and temporary, and they are not followed by a return to calm waters.
Many managers never get out of the rapids. They face constant change, bordering on
chaos. These managers must play a game that they've never played before, and the game
is governed by rules that are created as the game progresses.
Diff: 2 Page Ref: 141-142
Skill: Recall
Learning Objective: 6-3 Compare and contrast views of the change process.

Question ID: 6-138

Question Type: ES
Question: In a short essay, describe and discuss the four main reasons that people resist
change. Include examples of each reason to support your answer.
Answer:
An individual is likely to resist change for four 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 ambiguity and 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 changes or behave poorly if required to use them. The
second cause of resistance is habit. Human beings are creatures of habit. We rely on
programmed responses and routines, and resist changes to them. The third cause of
resistance is the fear of losing something already possessed. The more that people have
invested in the current system, the more they resist change. This helps explain 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. An employee who believes that a new job
procedure proposed by a change agent will reduce product quality or productivity can be
expected to resist the change. If the employee expresses his or her resistance positively,
this type of resistance can be beneficial to the organization.
Diff: 2 Page Ref: 146
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

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 Management, 11ce
Chapter 6: Innovation and Adaptability

Question ID: 6-139

Question Type: ES
Question: In a short essay, describe in detail what is meant by creativity and innovation.
Next, discuss the three sets of variables that have been found to stimulate innovation.
Answer:
1. Creativity refers to the ability to combine ideas in a unique way or to make unusual
associations between ideas. An organization that stimulates creativity develops unique
ways to work or novel solutions to problems. Innovation is the process of taking a
creative idea and turning it into a useful product, service, or method of operation. Thus,
the innovative organization is characterized by its ability to channel creativity into useful
outcomes. When managers talk about changing an organization to make it more creative,
they usually mean they want to stimulate and nurture innovation.
2. The three sets of variables that have been found to stimulate innovation are the
organization's structure, culture, and human resource practices. Structural variables:
Research into the effect of structural variables on innovation shows three things. First,
organic structures positively influence innovation. Second, the easy availability of
plentiful resources provides a key building block for innovation. Finally, frequent
interunit communication helps break down barriers to innovation. Cultural variables:
Innovative organizations tend to have similar cultures. They encourage experimentation,
reward both successes and failures, and celebrate mistakes. Human resource variables:
Within the human resource category, innovative organizations actively promote the
training and development of their members so that their knowledge remains current, offer
their employees high job security to reduce the fear of getting fired for making mistakes,
and encourage individuals to become ''champions'' of change.
Diff: 3 Page Ref: 148-152
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-140

Question Type: ES
Question: Define Organizational Development (OD) and how it is used to change people
in the change process. In addition, describe briefly 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.

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Chapter 6: Innovation and Adaptability

Diff: 2 Page Ref: 145-146

Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-141

Question Type: ES
Question: Describe the methods that help employees accept change and relate these to the
mistakes managers make when leading change.
Answer:
Helping employees accept change during the change process uses different methods in
the unfreezing, changing and refreezing stages.
In the unfreezing stage it is important to give reasons for the change, be empathetic of
people’s fears, and communicate clearly what is going to be done.
In the changing state the following strategies must be in place: explain the benefits of the
changes, identify a change champion, get input from employees, pay attention to the
timing, maintain job security, provide training in both accepting the change and in new
procedures and proceed at a manageable pace.
In the refreezing stage it is important to show top management’s support, make small
successes public, make corrections when necessary, and help employees deal with stress.
Some of the mistakes managers make when leading change are: not communicating a
sense of urgency for the need to change, not creating a clear vision, not empowering
others to act on the vision, not creating short-term, achievable goals, quitting before
change is finished and not making the changes part of the organizations culture.
Diff: 3 Page Ref: 147, 155
Skill: Applied
Learning Objective: 6-4 Classify types of organizational change.

Question ID: 6-142

Question Type: ES
Question: 103) In a short essay, explain the conditions that facilitate cultural change.
Answer: The conditions that facilitate cultural change are:
a. Occurrence of a dramatic crisis - An unexpected financial setback, the loss of a major
customer, or a dramatic technological innovation by a competitor can weaken the status
quo and make people start thinking about the relevance of the current culture.
b. Change in leadership - New top leadership can provide an alternative set of key values
and may be perceived as more capable of responding to the crisis than the old leaders
were.
c. Young and small organization - The younger the organization, the less entrenched is its
culture. It is easier for managers to communicate new values in a small organization than
in a large one.
d. Weak culture - Weak cultures are more receptive to change than are strong ones.
Page Ref: 197
Learning Outcome: Explain the influences of organizational culture; Describe the change
process and strategies for making changes in an organization

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Chapter 6: Innovation and Adaptability

Diff: 2 Page Ref: 153-154

Skill: Recall
Learning Objective: 6-5 Describe techniques for stimulating innovation and adaptability.

Question ID: 6-143

Question Type: ES
Question: In a short essay, describe the 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.
Diff: 2 Page Ref: 155
Skill: Recall
Learning Objective: 6-4 Classify types of organizational change.

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