Management, Hitt, Black, Porter, Test Bank, Vahdi Boydaş, Mensur Boydaş,

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Management, Hitt, Black, Porter, Test Bank, Vahdi Boydaş, Mensur Boydaş,

  1. 1. CHAPTER 15: ORGANIZATIONAL CHANGE AND DEVELOPMENT Multiple Choice Questions 1. Which of the following is NOT an external force for change? a. economic conditions b. technological advances c. legal and political developments d. visions, ideas, and actions of management Answer: d (p. 432, moderate, recall) 2. The winner at the 2008 “Movies for Grownups Awards” was The Savages, a story about a middle-aged brother and sister dealing with their feisty sick father. According to AARP, this awards show provides a venue for the motion picture community to celebrate movies that engage grownup audiences with challenging topics and sterling works by actors, writers, and directors, all over 50 years of age and all at the top of their game. Which of the following forces for change led to the creation of this awards show? a. economic conditions b. technological developments c. legal and political developments d. societal and demographic shifts Answer: d (pp. 432 – 434, moderate, integration) 3. According to the 2005 “Consumer Choice” report sponsored by Autobytel.com, consumers’ preference for smaller SUVs with decent gas mileage had increased. Which of the following forces for change probably caused this increase? a. economic conditions b. competitors’ actions c. technology developments d. legal and political developments Answer: a (pp. 432 – 434, moderate, application) 10 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  2. 2. 4. For more than 200 years, Encyclopedia Britannica was believed to be the most authoritative encyclopedia in the world. However, sales began to plummet when Microsoft started bundling Encarta with its software products. Britannica offered digital versions of its encyclopedia, but priced them high to encourage consumers to purchase its nicely bound volumes. The plan failed. Sales have continued to spiral downward since Wikipedia has been posting its free encyclopedia on the Internet. Which of the following statements sums up this scenario most clearly? a. Technology has influenced the publishing industry. b. Products with strong brand-name recognition can withstand external threats. c. Information posted on the Internet is more reliable than hardcopy information. d. When managers are slow to respond to technological changes, the consequences can be dire. Answer: d (pp. 433 – 434, difficult, application) 5. As a demographic pattern, the aging of populations in the United States and Japan exemplifies a/an _____. a. volatile external force of change b. transitional external force of change c. slow-moving external force of change d. inconsequential external force of change Answer: c (p. 435, moderate, integration) 6. According to your textbook, managers often underutilize their power to make changes due to _____. a. fear of reprisal b. resistance from employees c. risk of failure and consequential loss of power d. freedom from the competitive forces of global business Answer: c (p. 435, difficult, recall) 7. Which of the following forces for change was illustrated when workers at the Port of Los Angeles opposed the introduction of new cargo-handling technologies? a. managerial decisions b. global business influences c. technological breakthroughs d. employee preferences and pressures Answer: d (pp. 435 – 436, easy, integration) 11 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  3. 3. 8. Which of the following best defines “transformational changes”? a. changes in shared values and strategy b. long-term changes in technology and staff c. dynamic changes in systems and structure d. particularly complex and comprehensive changes Answer: d (p. 436, moderate, recall) 9. When managers decide that organizational change is needed, they can focus their change efforts on _____. a. structure b. technology c. shared values and culture d. all of the above Answer: d (p. 436, moderate, recall) 10. Forming new project groups to develop services (such as diversity training for managers and hourly employees) is an example of structural change _____. a. at the macro level b. at the micro level c. at the social level d. at the intermediate level Answer: b (p. 437, moderate, application) 11. In early 2007, Cadbury Schweppes announced its intention to separate its U.S. beverage division from its core confectionary business. In this case, Cadbury Schweppes was focusing on _____. a. changing its staff b. changing its culture c. changing its structure d. changing its systems Answer: c (p. 437, moderate, application) 12. Structural changes at the _____ can include combining or dividing departments or changing locations and reporting relationships within or among business units. a. macro level b. strategic level c. managerial level d. intermediate level Answer: d (p. 437, moderate, integration) 12 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  4. 4. 13. Within the context of organizational change, which of the following exemplifies a focus on shared values and culture? a. replacing batching with continuous-flow manufacturing b. encouraging cooperation through a cross-training program c. changing from a niche market to a general market approach d. instituting participatory decision making throughout the organization Answer: d (p. 437, moderate, integration) 14. In manufacturing and capital-intensive companies, _____ has been the key to keeping ahead of the competition. a. changing strategy b. changing structure c. changing technology d. changing shared values and culture Answer: c (p. 438, moderate, integration) 15. Within the context of organizational change, the most lasting people-change approach usually involves _____. a. adjusting their attitudes and expectations b. adding, subtracting, or interchanging people c. enhancing their knowledge, skills, and abilities d. changing how staff members relate to one another Answer: c (p. 440, moderate, recall) 16. Proactive recognition of the need for change can be expedited in all of the following ways EXCEPT _____. a. using sophisticated information systems b. polling clients, customers, and employees c. spotting trends or anomalies in sales reports d. observing situations until they reach critical mass Answer: d (p. 440, moderate, integration) 17. Google’s purchase of YouTube exemplifies its _____ of the need to enhance its mission of organizing the world’s information and making it universally useful and accessible. a. proactive recognition b. reactive recognition c. cybernetic recognition d. retroactive recognition Answer: a (p. 440, moderate, application) 13 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  5. 5. 18. AOL’s shift in strategy from generating revenues via consumer subscriptions to generating revenue via advertising on its website is an example of _____ of the need for change. a. proactive recognition b. reactive recognition c. cybernetic recognition d. retroactive recognition Answer: b (pp. 440 – 441, moderate, integration) 19. The relative cost of change is greatest when the change is begun _____ and the severity and immediacy of the problem are _____. a. late; high b. early; high c. late; low d. early; low Answer: a (p. 441, moderate, integration) 20. The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in the last 6 months. The manager believes this precipitous decline may be due to the extensive marketing campaign a competitor is running to promote its “good-to-go” breakfast menu. What step should the manager take next? a. retrain the members of the breakfast crew b. start cutting prices on its most popular breakfast items c. make an accurate diagnosis of what is causing the problem d. survey staff and customers on what changes need to be implemented Answer: c (p. 441, difficult, application) 21. Kurt Lewin asserted that _____ is NOT a distinctive phase of the change process. a. unfreezing b. refreezing c. movement d. engagement Answer: d (p. 441, moderate, recall) 22. According to your textbook, the need for change is usually preceded by _____. a. failure b. success c. business as usual d. none of the above Answer: b (p. 442, easy, recall) 14 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  6. 6. 23. As a reason for resistance to change, the term “inertia” refers to _____. a. lacking adequate information about the need for change b. being comfortable with the present way of doing things c. mistrusting those who are communicating the need for change d. all of the above Answer: b (p. 442, moderate, recall) 24. According to Lewin, all of the following EXCEPT _____ are sources of resistance to the movement stage of the change process. a. lack of clarity b. lack of capabilities c. lack of information d. lack of sufficient incentives Answer: c (p. 443, moderate, recall) 25. Research has shown that the _____ is one of the biggest determinants of resistance during the movement stage of the change process. a. pull of past competencies b. unreliability of workplace technology c. level of uncertainty associated with the change d. inability of management to articulate the need for change Answer: c (p. 443, moderate, integration) 26. Senior executives at NEC were unwilling to listen to younger scientists who said that LCD technology would appeal to customers who wanted computer monitors with high resolution and a smaller desktop footprint. According to Lewin’s theory of change, this scenario exemplifies problems at the _____ of the change process. a. unfreezing stage b. movement stage c. refreezing stage d. engagement stage Answer: a (p. 443, difficult, recall) 15 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  7. 7. 27. A sales manager announces that all weekly sales reports must be submitted via email, rather than hardcopy. However, some of the veteran staff members are still putting their reports in the manager’s office mailbox. Which of the following would be the LEAST effective way of winning over those who are resistant to this change? a. providing all required hardware, software, and training b. proving that electronic submissions save time, paperwork, and money c. praising staff when they successfully submit their reports electronically d. stressing that younger staff members have no problem emailing their reports Answer: d (pp. 444 – 446, difficult, integration) 28. Which of the following techniques will be the LEAST likely to overcome employee resistance during the moving stage of the change process? a. educating them about the nature of the desired change b. communicating how the change will affect them in a positive way c. announcing that the change has been mandated by top management d. making sure that they have the required knowledge, skills, and abilities Answer: c (pp. 445 – 446, moderate, integration) 29. A furniture manufacturer instituted a new strategy of producing custom-designed kitchen fittings rather than pre-designed fittings. Although the amount of fittings produced by the company fell as the new plan was implemented, management was quick to point out that the custom fittings sold faster (and at a higher profit margin) than the pre-designed fittings. What strategy is management using to overcome the pull of past patterns and build momentum in moving toward new patterns? a. benchmarking b. celebrating early wins c. organizational development d. behavioral process orientation Answer: b (p. 446, difficult, application) 30. Which of the following would be the LEAST effective method for dealing with a group that has considerable power to resist change? a. facilitation and support b. negotiation and agreement c. explicit and implicit coercion d. participation and involvement Answer: a (p. 447, moderate, integration) 16 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  8. 8. 31. A major disadvantage to using _____ is that it can be both time consuming and awkward if participants design an inappropriate change. a. facilitation and support to overcome resistance to change b. negotiation and agreement to overcome resistance to change c. participation and involvement to overcome resistance to change d. communication and education to overcome resistance to change Answer: c (p. 447, moderate, integration) 32. A major advantage of using _____ is that, once persuaded, people will often help with the implementation of the change. a. facilitation and support to overcome resistance to change b. negotiation and agreement to overcome resistance to change c. participation and involvement to overcome resistance to change d. communication and education to overcome resistance to change Answer: d (p. 447, moderate, integration) 33. _____ are most commonly used to overcome resistance when people are having problems in adjusting to change. a. Facilitation and support b. Negotiation and agreement c. Communication and education d. Participation and involvement Answer: a (p. 447, difficult, recall) 34. According to the theory of force field analysis, equilibrium occurs when _____ are balanced with ____ in a relatively steady state. a. external forces; internal forces b. driving forces; restraining forces c. maintenance forces; corrective forces d. demographic forces; societal forces Answer: b (p. 448, moderate, integration) 35. When a manager is planning for change, to which of the following questions would the issues of participation and incentives pertain most closely? a. How soon is change needed? b. What support will be critical for success? c. How should the change be communicated? d. How can support for the change be developed? Answer: d (p. 448, moderate, recall) 17 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  9. 9. 36. Within the context of force field analysis, _____ is a driving force of change. a. new technology b. norms that punish risk taking c. costs of updating old equipment d. employee groups opposed to change Answer: a (p. 449, easy, integration) 37. According to the matrix of agreeability and influence, the members of a leading coalition for change will be _____ agreeability and _____ influence. a. high; low b. low; high c. high; high d. low; low Answer: c (pp. 449 – 450, moderate, application) 38. The _____ is critical to the successful implementation of the process of change. a. choice of focus b. choice of amount c. choice of frequency d. all of the above Answer: d (pp. 450 – 451, moderate, recall) 39. An agricultural supply company observes that recent low rainfall over much of the area that it services has resulted in a significant drop in sales. Management decides to change the thrust of their strategy from sales of tractors, harvesters and other such equipment to piping, pumps, sprinklers, and irrigation supplies. Why is the rate of change particularly important in this case? a. Once the rate of change has been set, it cannot be altered. b. Too rapid a rate of change does not give people time to adapt to the change. c. If the pace of change is too slow, conditions that created the need for it in the first place might shift significantly. d. A slow rate of change can be frustrating for those people who want to see some solid results for their efforts. Answer: c (p. 452, difficult, application) 18 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  10. 10. 40. Once organizational change has been carried out, managers must evaluate the outcomes by _____. a. collecting objective and subjective data b. comparing outcomes against the standards set before the change c. communicating results to those involved with or effected by the change d. all of the above Answer: d (p. 453, moderate, recall) 41. In the traditional OD approach, _____ are specifically responsible for managing change efforts. a. supervisors b. focus groups c. change agents d. skill training groups Answer: c (p. 454, moderate, recall) 42. The essence of the _____ is its emphasis on planned strategic, long-range efforts focusing on people and their interrelationships in organizations. a. reengineering approach to change b. benchmarking approach to change c. behavioral process orientation to change d. organizational development approach to change Answer: d (p. 454, moderate, recall) 43. All of the following values or assumptions apply to the OD approach to change EXCEPT _____. a. Most people want opportunities for personal growth. b. Rational thoughts are more important than emotions. c. People are the cornerstone of success in any organizational endeavor. d. The open expression of emotions can be critical in facilitating real change. Answer: b (p. 454, moderate, integration) 44. Within the context of organizational change, _____ emphasizes the flexibility and capability for continual change. a. force field analysis b. process consultation c. organizational renewal d. behavioral process orientation Answer: c (p. 455, moderate, recall) 19 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  11. 11. 45. As a key distinguishing feature of the OD approach to organizational change, _____ focuses on new forms of behavior and new relationships. a. benchmarking b. organizational renewal c. behavioral process orientation d. individual enhancement activity Answer: c (p. 455, moderate, recall) 46. When used as an OD intervention technique, _____ improve understanding of and relationships with others in the organization. a. structural activities b. diagnostic activities c. process consultation activities d. individual enhancement activities Answer: d (p. 455, moderate, recall) 47. As an OD intervention, _____ is a structural activity. a. job enrichment b. behavior modeling c. responsibility charting d. coaching and counseling Answer: a (p. 455, difficult, recall) 48. Within the context of OD intervention techniques, diagnostic activities include all of the following EXCEPT _____. a. surveys b. meetings c. role analysis d. questionnaires Answer: c (p. 455, difficult, recall) 49. All of the following EXCEPT _____ facilitate organizational learning. a. the capacity to implement necessary changes b. employees with well-developed core competencies c. an organizational culture that supports continuous improvement d. the pull of existing strategy, structure, and decision-making patterns Answer: d (p. 457, moderate, integration) 20 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  12. 12. 50. _____ involves the identification, analysis, and comparison of the best practices of competitors against an organization’s own practices. a. Benchmarking b. Corporate espionage c. Proactive recognition d. Facilitation and support Answer: a (p. 458, moderate, recall) True/False 51. Internal forces for organizational change include the visions, ideas, and actions of managers; and the suggestions and actions of employees. Answer: True (p. 432, moderate, recall) 52. Non-business organizations are immune to the effects of economic conditions. Answer: False (p. 433, easy, integration) 53. The U.S. Bureau of Census projects that the number of people in the United States over 60 years of age will decline between 2010 and 2020. Answer: False (p. 435, moderate, recall) 54. Changing the shared values and culture of an organization is less costly than changing either its structure or its strategy. Answer: False (p. 439, difficult, recall) 55. Education, training, and personal development activities can improve performance of people and groups, regardless of any other changes a manager might initiate. Answer: True (p. 440, difficult, recall) 56. Managers who practice proactive recognition are able to detect trends before they become obvious warning signals. Answer: True (p. 440, easy, recall) 57. Kurt Lewin stated that the change process consists of three phases: planning and preparation, implementation, and evaluation of outcomes. Answer: False (p. 441, moderate, recall) 21 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  13. 13. 58. Inertia, mistrust, and lack of information can cause problems during the movement stage of the change process. Answer: False (p. 442, difficult, recall) 59. According to your textbook, change typically requires people to go from doing the wrong thing well to doing the right thing poorly. Answer: True (p. 443, moderate, integration) 60. According to Lewin, the “refreezing” stage of the change process leads to an organizational stasis, which will not require monitoring or adjusting. Answer: False (p. 444, difficult, recall) 61. When people engage in change, they need early and consistent reinforcement to overcome the pull of past patterns of behavior and build momentum in moving toward new patterns of behavior. Answer: True (p. 446, moderate, integration) 62. No other approach works as well as facilitation and support when dealing with problems of adapting to change. Answer: True (p. 447, difficult, recall) 63. When dealing with resistance to change, explicit and implicit coercion allows managers to use their position power to order compliance. Answer: True (p. 447, difficult, recall) 64. Force field analysis suggests that increasing the driving forces of change is the best way to bring about organizational change. Answer: False (p. 448, moderate, recall) 65. According to the force field analysis model, norms that punish risk taking are driving forces for innovation. Answer: False (p. 449, easy, application) 66. Driving forces for change include pressures from managers for workers to implement new procedures. Answer: True (p. 449, moderate, recall) 22 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  14. 14. 67. A leading coalition is a group of supporters who are favorably inclined toward change and can influence others toward change. Answer: True (p. 449, easy, recall) 68. Even though the immediate cost-benefit ratios may not be favorable, some managers favor making small, incremental changes because changes postponed until later can be much more expensive. Answer: True (p. 451, moderate, recall) 69. As a rule, the amount of change should fit the severity of the problems. Answer: True (p. 452, moderate, integration) 70. Goals and benchmarks that have been specified in advance of change efforts provide the basis for making meaningful relative comparisons. Answer: True (p. 453, moderate, recall) 71. The essence of an organizational development (OD) approach to change is its emphasis on planned, strategic, long-range implementation of technology. Answer: False (p. 454, moderate, recall) 72. Change agents can be either internal or external to the organization. Answer: True (p. 454, easy, recall) 73. T-groups participate in organizational development sessions away from the workplace. Answer: True (p. 454, easy, recall) 74. A primary assumption underlying the OD approach to change is that people are the cornerstone of success in any organizational endeavor. Answer: True (p. 454, moderate, recall) 75. Within the context of OD interventions, process consultation may include setting agendas, coaching and counseling, and suggesting structural changes. Answer: True (p. 455, difficult, recall) 23 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  15. 15. 76. The idea behind organizational renewal recognizes that in a fast-changing, competitive world, new habits and patterns become outdated quickly. Answer: True (p. 455, moderate, integration) 77. Reengineering is based on the idea that many companies have business processes that are inefficient and structures that involve more people than necessary. Answer: True (p. 456, moderate, recall) 78. During process redesign, an organization becomes skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new insights. Answer: False (p. 456, moderate, recall) 79. As an approach to change, the organizational learning perspective emphasizes paying constant attention to potentially needed changes and embodies the goal of renewal. Answer: True (p. 458, difficult, recall) 80. Learning organizations utilize focus groups to identify, analyze, and compare the best practices of competitors. Answer: False (p. 458, moderate, recall) Short Answer 81. Identify the external forces that can cause organizational change. (p. 432) A whole host of forces outside the organization can bring about changes inside it. Those forces include economic conditions, competitors’ actions, technological developments, political/legal developments, and societal and demographic shifts. 82. What are the two most important internal forces of change? (p. 435) Those forces are managerial decisions and employee preferences and pressures. 83. List the six areas that are usually the focus of organizational change. (p. 436) Organizational change focuses on staff, systems, structure, strategy, shared values and culture, and technology. Any change will almost certainly involve at least one of these areas, and the larger the change, the more likely that several areas will be involved. 24 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  16. 16. 84. Discuss proactive recognition, reactive recognition, and diagnosis within the context of recognizing and assessing the need for change. (pp. 440 – 441) Effective managers recognize the need for change at the earliest possible time. To do this, they must have systems and methods in place to monitor the environment in which they and their units operate. Unfortunately, not all needs for change can be identified in advance. Some events happen so unexpectedly or quickly that managers must react to them in real time, rather than plan for them in advance. Finally, the recognition of the need for change is only a starting point. The next step is to make an accurate diagnosis of what is causing the problem so that the right changes can be made at the right time. 85. According to Lewin, what are the steps in the change process? (p. 441) Over 50 years ago, Lewin argued that change (personal, team, or organizational) goes through three distinct phases: unfreezing, movement, and refreezing. 86. Why might people resist seeing the initial need for change? (p. 442) Several factors can cause people to resist seeing the initial need for change, thus creating problems for the unfreezing state of change. One factor is inertia, or being comfortable with the present way of doing things. Another factor is that those who will be affected by the change may mistrust those who are communicating the need for change. Another factor is the lack of adequate information about the need for change and its effects. 87. What are the specific sources of resistance to the movement stage of the change process? (p. 443) Even if people accept that the “old right thing” is now the “wrong thing,” they may resist moving or changing. One source of resistance is a lack of clarity. If the target of change is not clear to people, they are likely to resist moving toward it. Lack of capabilities can be another source of resistance. If people believe that they do not possess the capabilities needed to implement the change, they may resist movement, even if they see the need for change. A lack of sufficient incentives is also a source of resistance. If those affected by the change believe that the anticipated negative consequences of the change outweigh the positive consequences, resistance to movement is almost guaranteed. 88. What are the steps in the process of managing change? (p. 448) The process of managing change includes planning and preparation, implementation, and evaluation of outcomes. In addition, dealing with resistance to change is associated with planning, preparing, and implementing the process of change. 25 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  17. 17. 89. What issues typically need to be addressed when planning for change? (p. 448) The following issues should be addressed when planning for change: How soon will change be needed? Whose support will be critical for success? How should the change be communicated? How can support for the change be developed? 90. Discuss the role of participation in the planning process. (p. 450) During the planning stage, obtaining the participation of those who are agreeable and/or influential can strengthen their support. Plans can often be improved and commitment gained through such participation. However, participation takes time and effort; and if the ideas of participants diverge widely from the goals of management, then participation can backfire. Moreover, if participants sense that management is “going through the motions” by seeking their input, they will feel manipulated and will withhold their support. 91. How could the use of incentives cause problems when making a change? (p. 450) Providing incentives to those most likely to be affected by the change can help build support for the change. However, providing incentives may give those individuals the feeling that they are being “bought off.” Thus, the use of incentives for change can backfire by increasing skepticism and cynicism regarding the motives of management. 92. What is organizational learning? (p. 457) Organizational learning is an approach to organizational change and renewal. A firm that is good at organizational learning is skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. Several factors have been shown to facilitate organizational learning: employees with well- developed core competencies, an organizational culture that supports continuous improvement, and the capability to implement necessary changes. 93. What activities are needed to implement an ongoing learning process in an organization? (pp. 457 – 458) Managers cannot simply declare that learning should take place. They must use activities, such as the following, to implement an ongoing learning process. First, learning organizations do not rely on assumptions or guesswork to solve problems or make decisions; instead, they gather the data (systematically and continually) needed to solve problems and make decisions. Second, learning organizations experiment with new methods and procedures to expand their knowledge and gain fresh insights. Third, enterprises with strong learning cultures pay particular attention to past failures as well as successes, in order to catalogue “lessons learned.” Fourth, learning organizations scan their environments for information and knowledge from external sources; i.e., customers, competitors, suppliers, and other industries. Fifth, learning organizations disseminate the knowledge they have gained throughout their organizations. This can include distributing 26 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  18. 18. reports, developing demonstration projects, initiating training and education programs, and rotating or transferring those with the knowledge. Note: The remaining questions in this section will be based on the following scenario: “I’ve been here for seventeen years and this is a waste of time!” barked Dan Wilson, the supervisor of the shipping department at A-1 Industries. “I’m just telling you what I was told,” answered Ken Jordan, Dan Wilson’s manager. Several key customers had complained that barcode labels were missing from boxes shipped from A-1. In response to the complaints, company owners now required that all boxes must be placed in a designated area of the warehouse and that all boxes must be audited for proper barcode labels, prior to their shipment. The responsibility for this new quality control procedure was passed down to Dan Wilson. “On top of learning this new computer system, how can they think I have the extra time for this?” Dan groaned. “Now I have to revamp my department and then hire and train a new shipment auditor on top of it all!” Ken Jordan shook his head and walked away. 94. Organizational change efforts focus on six areas. Are any of them present in this scenario? (pp. 436 – 440) Organizational change focuses on six elements: technology, shared values and culture, strategy, systems, structure, and staff. The “system” with which packages are processed prior to shipping has been redesigned. In addition, the firm’s “values” are being changed since employees in the shipping department will increase their awareness of shipping accuracy and customer satisfaction. Dan Wilson refers to a new computer system, so the element of technology is influential here. Finally, the issue of staff is also present, as Dan will have to hire and train a new shipment auditor. 95. Does proactive recognition occur in this scenario? Does reactive recognition occur in this scenario? (p. 440) The new barcode procedures are based on managerial reactions to disgruntled customers. There is no direct reference to being proactive. However, it is likely that management will monitor the outcomes of the new barcode system and make improvements, as needed. Furthermore, the new computer system will allow for a proactive approach in packing, labeling, and tracking shipments. 27 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  19. 19. 96. Why is Dan Wilson resisting this change? (p. 442) Inertia is a primary reason. Dan has been with A-1 for seventeen years. He is probably comfortable with the old shipping procedures. Moreover, he is already being challenged by having to incorporate a new computer system into the day-to-day operations of his department. Dan was not asked for his input; therefore, he may not trust the motives of the owners of the company. In addition, he may feel that he is lacking information, since those who are insisting on the change are not communicating with him directly. He may also be unsure about how the redesigned barcode procedures will affect the future of his department. 97. In this scenario, what stage of the change process is Dan resisting? How might this resistance be reduced? (pp. 444 – 446) Resistance occurs at the unfreezing stage since Dan does not understand why the change is needed in the first place. A key element would be to help Dan see how changes in the larger context of the business require him to change. Clarifying why the old way of doing things may not work going forward is a critical first step in managing change. Based on Dan’s comments about the new barcode system, he will also resist the movement stage. Management should educate Dan on the desired change. Furthermore, they must be sure that he has the information, resources, and skills needed to get the job done. Management also needs to help Dan see that the anticipated benefits of the change will outweigh any negative outcomes. 98. Exhibit 15.6 presents possible methods for dealing with resistance to change. Which of those methods would be effective in this scenario? (p. 447) Participation and involvement could be useful, in that Dan would be more likely to support new procedures, if he were involved in designing them. Communication and education could be used to provide Dan with information concerning the short- and long- term effects of the new barcode system. Once he has been persuaded that the benefits of the new system outweigh any anticipated problems, Dan will be more committed to implementing the proposed changes. Facilitation and support will be most beneficial since the managers at A-1 are dealing with an employee (a critical player in the change process) who is having problems adjusting to the changes in his department. No other approach works as well with problems of adapting to changes. 99. In planning and preparing for the change at this firm, how might the managers have improved the process? (pp. 448 – 450) Timing is an issue in this case. It appears that the new policy was implemented quickly, even though it conflicted with the learning curve associated with the new computerized shipping system. The owners of the company neither attempted to build support for the new procedures nor communicated the benefits to be gained by them. Instead, Dan was simply told what to do. Asking Dan to participate in designing and implementing the new 28 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)
  20. 20. procedures would have strengthened his support for them. Finally, incentives could have been used to gain commitment for the successful implementation of the new procedures. 100. Do you get the impression that A-1 is committed to organizational learning, based on this scenario? (p. 457) Organizational learning is a major approach to organizational change and renewal. A firm that is good at organizational learning is skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. Several factors are conducive to organizational learning: employees with well-developed core competencies, an organizational culture that supports continuous improvement, and the capability to implement necessary changes. Unfortunately, A-1 does not appear to be committed to organizational learning at this time. While the scenario shows that A-1 is modifying its behavior, it does not appear that the firm is creating or acquiring knowledge; instead, the owners of A-1 are reacting to forces for change (customer criticism). It is not clear that Dan Wilson has the core competencies needed to implement the new barcode procedures (let alone other changes), as he appears to be overwhelmed already. Furthermore, it is unlikely that A-1 has been committed to continuous improvement, given that Dan has been with the company for seventeen years and is complaining about learning a new computer system. Finally, A-1 may not have the managerial expertise needed to implement necessary changes; given how new barcode procedures were created and communicated, and how Dan reacted to changes in the day- to-day operations of his department. 29 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)

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