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1. Chapter 7: Managing Change and Innovation
1.

2. Organizational change can be any alteration in an organization's people, structure, or technology.
True
False
Page Ref: 218
Objective: 7.1
2.
Change is something that managers strive to eliminate completely.
Answer:
True
False
Page Ref: 218
Objective: 7.1
3.
An example of a change in structure is an organization becoming more decentralized.
True
False
Page Ref: 218
Objective: 7.1
4.
An example of changes in people would involve a manager widening her span of control.
Answer:
True
False
Page Ref: 219
Objective: 7.1
5.
A company changing the way it names computer files would not be an example of a technology change because no new
technological equipment was used.
Answer:
True

3. False
Page Ref: 218
Objective: 7.1
6.
Continuous improvement changes are not considered changes in technology because they are changes that are planned
and expected.
Answer:
True
False
Page Ref: 218
Objective: 7.1
7.
An aggressive new competitor in the marketplace is an external force that creates a need for organizational change that
companies today frequently face.
True
False
Page Ref: 219
Objective: 7.1
8.
New online advertising technology is an external force that creates a need for organizational change when it causes a
company to change its advertising strategy.
Answer:
True
False
Page Ref: 219
Objective: 7.1
9.
Labor markets are an internal force that creates a need for organizational change.
Answer:
True

4. False
Page Ref: 219
Objective: 7.1
10.
The decision of an organization to bring in new equipment from the outside is an example of an external force that creates
a need for organizational change.
Answer:
True
False
Page Ref: 220
Objective: 7.1
11.
In an organization, only a manager can be a change agent.
Answer:
True
False
Page Ref: 220
Objective: 7.1
12.
Consultants are less likely to be change agents than internal managers.
Answer:
True
False
Page Ref: 220
Objective: 7.1
13.
The "calm waters" metaphor imagines the organization as a large ship crossing a calm sea.
True
False

5. D
i age Ref: 221-222
P
Objective: 7.1
14.
Kurt Lewin sees the first step in change as the freezing of the status quo.
Answer:
True
False
Page Ref: 222
Objective: 7.1
15.
In Lewin's view, the only way to effect change is to increase the driving forces that direct change away from the status
quo.
Answer:
True
False
Page Ref: 222
Objective: 7.1
16.
The main idea of the "white-water rapids" metaphor is that change is always destructive.
Answer:
True
False
Page Ref: 223
Objective: 7.1
17.
In the "white-water rapids" metaphor of change, managers should expect change at any time, and it may last for
unspecified lengths of time.
True
False
Page Ref: 223
Objective: 7.1

6. 18.
The number of managers who face "white water rapids" metaphor conditions is getting smaller.
Answer:
True
False
Page Ref: 223
Objective: 7.1
19.
Organization development (OD) consists of efforts to help organization members deal with unplanned changes.
Answer:
True
False
Page Ref: 223
Objective: 7.1
20.
One important reason why organization development efforts are needed is that even planned change can be very
upsetting to members of an organization.
True
False
Page Ref: 224
Objective: 7.1
21.
One reason people resist change is that it substitutes ambiguity for uncertainty.
Answer:
True
False
Page Ref: 225
Objective: 7.2
22.

7. Change threatens the investment you've already made in the status quo.
True
False
Page Ref: 225
Objective: 7.2
23.
Negotiation twists and distorts facts to reduce resistance to change.
Answer:
True
False
Page Ref: 227-228
Objective: 7.2
24.
Education is a good way to overcome resistance to change due to misinformation.
True
False
Page Ref: 226
Objective: 7.2
25.
A manager who "cherry picks" facts to make change seem less disruptive is using the technique of coercion.
Answer:
True
False
Page Ref: 226
Objective: 7.2
26.
A manager who mentions that supervisors might lose their jobs if they don't go along with a change is using the
technique of coercion.

8. True
False
Page Ref: 226
Objective: 7.2
27.
A major disadvantage of coercion is that it is may be illegal.
True
False
Page Ref: 226
Objective: 7.2
28.
Stress can arise from an opportunity.
True
False
Page Ref: 227
Objective: 7.3
29.
Stress is not a physiological phenomenon.
Answer:
True
False
Page Ref: 227
Objective: 7.3
30.
Stress isn't always bad for an individual.
True
False
Page Ref: 227
Objective: 7.3

9. 31.
Autonomy on the job tends to increase stress.
Answer:
True
False
Page Ref: 228
Objective: 7.3
32.
An employee who feels pressure to keep pace with work quotas is experiencing task demand stress.
True
False
Page Ref: 228
Objective: 7.3
33.
An employee who feels unsettled because he is not sure what his responsibilities are is experiencing role overload stress.
Answer:
True
False
Page Ref: 228
Objective: 7.3
34.
Role conflict is created when an employee does not feel confident that she can achieve her goals.
True
False
Page Ref: 208
Objective: 7.3
35.
Type A personality people find it easy to relax.

10. Answer:
True
False
Page Ref: 228-229
Objective: 7.3
36.
Managers should aspire to eliminate all stress from the work environment.
Answer:
True
False
Page Ref: 229
Objective: 7.3
37.
An effective way to reduce workplace stress is to make sure that employees are appropriately matched to their jobs.
True
False
Page Ref: 229
Objective: 7.3
38.
Creativity is the ability to make unusual and meaningful associations between ideas.
True
False
Page Ref: 230
Objective: 7.4
39.
Inspiration marks the first step in the creative process.
Answer:
True

11. False
Page Ref: 230
Objective: 7.4
40.
Organic organizations tend to inhibit innovation.
Answer:
True
False
Page Ref: 231
Objective: 7.4
41.
Time deadlines tend to increase innovation.
Answer:
True
False
Page Ref: 232
Objective: 7.4
42.
Idea champions tend to be risk takers.
True
False
Page Ref: 233
Objective: 7.4
43.
Change can't be eliminated, so managers must learn to ________ successfully.
A)
ignore it
avoid it
manage it
B)
C)
D)

12. work around it
C
Page Ref: 218
Objective: 7.1
44.
Which of the following is an example of a structural organizational change?
A)
changing employee attitudes
B)
changing managerial span of control
C)
changing work practices
D)
purchasing new work equipment
B
Page Ref: 218
Objective: 7.1
45.
Which of the following is an example of a technology change within an organization?
A)
workers wanting flexible hours
B)
workers using new software
C)
workers wanting to telecommute
D)
forming teams to complete tasks
B
Page Ref: 218
Objective: 7.1
46.
Which of the following is an organizational "people change"?
A)
job redesign
B)
authority relationships between people
C)
work methods that people use
D)
attitudes that people have

13. A
D
Page Ref: 218
Objective: 7.1
47.
Which of the following is an organizational structure change?
A)
a new way to package chocolate cake
B)
changing who reports to whom
C)
resentment of bosses by employees
D)
the building of a new workshop
B
Page Ref: 218
Objective: 7.1
48.
Which of the following is an organizational technology change?
A)
purchase of a new backhoe
B)
widening of span of control
C)
employees expecting a raise
D)
employees accepting a new schedule
A
Page Ref: 218
Objective: 7.1
49.
The Americans with Disabilities Act is an example of which of the following forms of environmental change?
A)
internal
B)
labor markets
C)
government laws and regulations
D)
technology

14. C
Page Ref: 219
Objective: 7.1
50.
Falling interest rates are an example of what kind of external force that causes a company to need to make an
organizational change?
A)
marketplace competition forces
B)
labor market forces
C)
government laws and regulations
D)
economic forces
D
Page Ref: 219
Objective: 7.1
51.
Which of the following is an internal force that can cause a company to make an organizational change?
A)
a new rival company
B)
a new ad campaign
C)
new pollution laws
D)
new safety requirements
B
Page Ref: 219
Objective: 7.1
52.
Which of the following is an external force that would cause a company to make an organizational change?
A)
the naming of a new CEO
B)
a widening span of control for managers
C)
an organization-wide restructuring
D)
a booming economy

15. D
Page Ref: 219
Objective: 7.1
53.
To compete with rival company X, company Y changes its management structure. This is an example of ________.
A)
an external change causing another external change
B)
an internal change causing another internal change
C)
an external change causing an internal change
D)
an internal change causing an external change
C
Page Ref: 219-220
Objective: 7.1
54.
After a thorough company-wide self-examination, company Y decides to set up work teams. This is an example of
________.
A)
an internal change causing an external change
B)
an external change causing another external change
C)
an internal change causing another internal change
D)
an external change causing an internal change
C
Page Ref: 219-220
Objective: 7.1
55.
A company's workers asking to be able to celebrate Mexican holidays is an example of ________ force for change.
A)
an internal workforce composition
B)
an external an employee attitude
C)
an internal strategy
D)
an external workforce composition

16. A
Page Ref: 220
Objective: 7.1
56.
Labor strikes are an example of what change factor that may encourage a change in management thinking and practices?
A)
workforce composition
B)
employee attitude
C)
strategy
D)
equipment
B
Page Ref: 220
Objective: 7.1
57.
In organizations, people who act as catalysts and assume the responsibility for managing the change process are called
________.
A)
change managers
B)
nonmanagerial employees
C)
change agents
D)
managers
C
Page Ref: 220
Objective: 7.1
58.
Outside consultants generally try to initiate ________ changes than internal managers.
A)
more cautious
B)
less drastic
C)
fewer
D)
more drastic

17. D
Page Ref: 220
Objective: 7.1
59.
The "calm waters" metaphor envisions an organization as ________.
A)
a large ship on a calm sea
B)
a small raft on a calm sea
C)
a large ship on a roiling sea
D)
a small raft on a roiling sea
A
Page Ref: 221
Objective: 7.1
60.
The "white-water rapids" metaphor envisions an organization as ________.
A)
a small raft on a raging river
B)
a small raft on a calm river
C)
a large ship on a calm sea
D)
a large ship on a roiling sea
A
Page Ref: 222
Objective: 7.1
61.
The "white-water rapids" metaphor sees change as ________.
A)
the natural state of things
B)
something that must be eliminated
C)
an unpleasant interruption of the normal calm
D)
an occasional occurrence
A
Page Ref: 222

18. Objective: 7.1
62.
Kurt Lewin's "calm waters" metaphor sees change as ________.
A)
unfortunate
B)
the natural state of things
C)
an unusual event
D)
avoidable
C
Page Ref: 221-222
Objective: 7.1
63.
The first step in Lewin's three-step description of the change process involves ________.
A)
freezing the new state
B)
changing to a new state
C)
changing to a new status quo
D)
unfreezing the status quo
D
Page Ref: 222
Objective: 7.1
64.
The final step in Lewin's three-step description of the change process is ________.
A)
changing to a new state
B)
freezing the new state
C)
unfreezing the status quo
D)
unfreezing the new state
B
Page Ref: 222
Objective: 7.1

19. 65.
According to Lewin, which of the following is a force that might overcome inertia and unfreeze the status quo?
A)
increase driving forces
B)
decrease restraining forces
C)
increase restraining forces
D)
decrease driving forces
A
Page Ref: 222
Objective: 7.1
66.
According to Lewin, which of the following is the objective of refreezing?
A)
to promote movement away from existing equilibrium
B)
to direct behavior away from the status quo
C)
to eliminate the need for future change
D)
to stabilize the new situation
D
Page Ref: 224
Objective: 7.1
67.
According to Lewin, which of the following is the best way to unfreeze the status quo?
A)
increase restraining forces
B)
decrease driving forces
C)
decrease restraining forces and increase driving forces
D)
increase restraining forces and increase driving forces
C
Page Ref: 222
Objective: 7.1

20. 68.
The goal in Lewin's "calm waters" metaphor is ________.
A)
to establish a new equilibrium state
B)
to change the current equilibrium state
C)
to eliminate the equilibrium state
D)
to reach a state of constant change
A
Page Ref: 222
Objective: 7.1
69.
Lewin's "calm waters" metaphor today is increasingly thought to be ________.
A)
a blueprint for the future
B)
obsolete
C)
illogical
D)
an apt description of the current situation
B
Page Ref: 222
Objective: 7.1
70.
Which phenomenon in today's business climate has made the "white-water rapids" metaphor popular?
A)
organizations that resist change
B)
constant and chaotic change
C)
reduced competition
D)
corporations that are too powerful
B
Page Ref: 222
Objective: 7.1

21. 71.
Writing laws to reward industries to reduce carbon emissions in an effort to combat global climate change can be best
described as an example of which of the following?
A)
refreezing the status quo
B)
freezing a change into place
C)
implementing change
D)
unfreezing the status quo
D
Page Ref: 222
Objective: 7.1
72.
Kurt Lewin originated some of his most important group dynamics ideas by studying which of the following?
A)
force fields in physics
B)
how football has blocking and driving forces
C)
family food habits during World War II
D)
family vacations during World War I
C
Page Ref: 223
Objective: 7.1
73.
Lewin's force field analysis identified ________ forces that compete when people try to achieve a goal.
A)
driving and blocking
B)
enormous
C)
magnetic
D)
physical push-and-pull
A
Page Ref: 224
Objective: 7.1

22. 74.
In terms of change, Lewin's force field analysis might see ________ as a driving force.
A)
inertia
B)
fear of change
C)
difficulty of change
D)
reward from change
D
Page Ref: 223
Objective: 7.1
75.
Lewin's force field analysis might view a company ________ as a blocking force for change.
A)
decreasing centralization
B)
rewarding innovation and creativity
C)
becoming more mechanistic
D)
becoming more organic
C
Page Ref: 223
Objective: 7.1
76.
Today's economic climate can be compared to a college class that ________.
A)
may last 20 minutes or 3 hours
B)
focuses on several topics during the semester
C)
focuses on only one topic all semester
D)
lasts exactly 1 hour
A
Page Ref: 223
Objective: 7.1

23. 77.
Organization development (OD) helps employees ________.
A)
avoid unpleasant change
B)
avoid all types of change
C)
deal with planned change
D)
deal with unplanned change
C
Page Ref: 223
Objective: 7.1
78.
Organization development can be viewed as an attempt to change an organization's ________.
A)
culture
structure
status
B)
C)
D)
financial goals
A
Page Ref: 224
Objective: 7.1
79.
The most popular OD efforts involve cooperation and these kinds of activities.
A)
group assessment
B)
group interactions
C)
individual assessment
D)
individual interactions
B
Page Ref: 224
Objective: 7.1

24. 80.
Which of the following is NOT a common method of organization development (OD)?
A)
positive feedback
B)
process consultation
C)
teambuilding
D)
survey feedback
A
Page Ref: 224
Objective: 7.1
81.
In process consultation, ________ observe and analyze an organization to find ways to improve interpersonal processes.
A)
top-level managers
B)
company efficiency specialists
C)
outside consultants
D)
ordinary employees
C
Page Ref: 224
Objective: 7.1
82.
The primary goal of the OD method called teambuilding is to ________.
A)
increase trust and openness
B)
play games such as volleyball to build morale
C)
increase efficiency
D)
identify troublemakers
A
Page Ref: 224
Objective: 7.1

25. 83.
Intergroup development is an OD method that focuses on ________.
A)
increasing trust between work groups
B)
increasing competition within a single work group
C)
increasing trust within a single work group
D)
increasing competition between work groups
A
Page Ref: 225
Objective: 7.1
84.
Which of the following is a term borrowed from the physical sciences that accurately describes people's resistance to
change?
A)
uncertainty
inertia
energy
B)
C)
D)
momentum
B
Page Ref: 225
Objective: 7.2
85.
Uncertainty causes people to resist change because it ________.
A)
replaces the known with the unknown
B)
decreases performance expectations on people
C)
replaces the unknown with the known
D)
increases performance expectations on an employee
A
Page Ref: 225
Objective: 7.2

26. 86.
Which of the following is NOT a common reason that people resist change?
A)
habit
B)
concern over personal loss
C)
uncertainty
D)
overconfidence
D
Page Ref: 225
Objective: 7.2
87.
Older workers tend to resist change more than younger workers because they ________.
A)
have less invested in the current system
B)
have more invested in the current system
C)
have less to lose
D)
have confidence in themselves
B
Page Ref: 225
Objective: 7.2
88.
Workers seem to reject a simple new manufacturing method that has been shown to increase company sales because they
say, "that is not the way we do things around here." These workers are most likely to be resisting change due to which of
the following?
A)
uncertainty
B)
conflicts with company goals
C)
habit
D)
fear of the unknown
C
Page Ref: 225
Objective: 7.2

27. 89.
Which kind of resistance to change is most likely to be beneficial to a company?
A)
uncertainty
B)
fear of losing status or possessions
C)
habit
D)
conflict with company goals
D
Page Ref: 225-226
Objective: 7.2
90.
Employees at a company protest a change that allows an automatic answering system to answer phone inquiries,
claiming that the company is becoming "depersonalized." They are most likely resisting change due to ________.
A)
habit
uncertainty
B)
C)
fear of losing status
D)
conflicts with company goals
D
Page Ref: 226
Objective: 7.2
91.
Workers in a company are complaining about a new employee evaluation system. Which kind of resistance to change are
they demonstrating?
A)
resistance to protect company goals
B)
resistance to protect market share
C)
resistance because of uncertainty
D)
resistance out of habit
C
Page Ref: 225-226
Objective: 7.2

28. 92.
Managers typically implement programs to reduce resistance to change when employees ________ in some way.
A)
become dysfunctional
B)
are challenged
C)
become uncomfortable
D)
become self-satisfied
A
Page Ref: 226
Objective: 7.2
93.
A technique that helps employees deal with change that appeals to their sense of logic is ________.
A)
education and communication
B)
manipulation
C)
co-optation
D)
coercion or threats to employees
A
Page Ref: 226
Objective: 7.2
94.
A technique that helps employees deal with change that includes them in the decision-making process is ________.
A)
education and communication
B)
participation
C)
negotiation
D)
coercion
B
Page Ref: 226
Objective: 7.2

29. 95.
If several efforts between a manager and an employee for reducing resistance to change fail to allay employee fears, a
manager might take himself out of the process and try this.
A)
negotiation between parties
B)
manipulation
C)
facilitation and support
D)
participation
C
Page Ref: 226
Objective: 7.2
96.
When an entire workforce threatens to go on strike to protest a work change, managers might try this method of reducing
resistance to change.
A)
facilitation and support
B)
negotiation
C)
education and communication
D)
participation
B
Page Ref: 226
Objective: 7.2
97.
When managers threaten to fire workers unless they agree to go along with new company policies, they are using which
of the following?
A)
education and communication
B)
coercion
C)
negotiation
D)
manipulation
B
Page Ref: 226

30. Objective: 7.2
98.
Which method of reducing resistance to change is mostly likely to backfire on the manager who uses it?
A)
education and communication
B)
manipulation
C)
participation
D)
negotiation
B
Page Ref: 226
Objective: 7.2
99.
When a manager attempts to buy off a key leader who opposes change by offering her a promotion, he is using which of
the following methods of reducing resistance to change?
A)
manipulation
B)
coercion
C)
negotiation
D)
co-optation
D
Page Ref: 226
Objective: 7.2
100.
Stress in the workplace is an adverse reaction that people have in response to ________.
A)
demands, constraints, and opportunities
B)
having too much confidence in oneself
C)
too much ambition
D)
lack of ambition
A
Page Ref: 227

31. Objective: 7.3
101.
An actor on stage getting "up" for a performance is an example of which of the following?
A)
a positive aspect of stress
B)
a condition not related to stress
C)
both a positive and a negative aspect of stress
D)
a negative aspect of stress
A
Page Ref: 227
Objective: 7.3
102.
Stress is most frequently associated with ________ only.
A)
demands and opportunities
B)
demands and constraints
C)
opportunities and constraints
D)
demands and pressures
B
Page Ref: 227
Objective: 7.3
103.
Which statement is correct?
A)
Stress can be bad or good.
B)
Stress is always bad.
C)
Stress can never be good.
D)
Stress is always good.
A
Page Ref: 227
Objective: 7.3

32. 104.
A constraint causes stress because it ________.
A)
prevents you from defining your goal
B)
prevents you from achieving your goal
C)
helps you define your goal
D)
helps you achieve your goal
B
Page Ref: 227
Objective: 7.3
105.
Potential stress can become actual stress when the outcome of an event is uncertain and ________.
A)
in doubt
B)
hard for the individual to understand
C)
not important to the individual
D)
important to the individual
D
Page Ref: 227
Objective: 7.3
106.
Potential stress can become actual stress when the outcome of an event is both ________ and important to the individual.
A)
meaningful
certain
uncertain
B)
C)
D)
significant
C
Page Ref: 227
Objective: 7.3

33. 107.
Stress has ________ symptoms.
A)
only psychological
B)
only psychological and behavioral
C)
psychological, behavioral, and physical
D)
only physical
C
Page Ref: 227
Objective: 7.3
108.
Adverse psychological effects of stress include ________.
A)
rapid speech
B)
absenteeism
C)
boredom
D)
elevated heart rates
C
Page Ref: 227
Objective: 7.3
109.
Behavioral effects of stress include ________.
A)
procrastination
B)
metabolism changes
C)
absenteeism
D)
job dissatisfaction
C
Page Ref: 227
Objective: 7.3

34. 110.
An employee's blood pressure rises, indicating a(n) ________ symptom of stress.
A)
psychological
B)
physical
C)
emotional
D)
behavioral
B
Page Ref: 227
Objective: 7.3
111.
Stress symptoms can be grouped under any of the following three general categories EXCEPT ________.
A)
physical
behavioral
cultural
B)
C)
D)
psychological
C
Page Ref: 227
Objective: 7.3
112.
A stressor is defined as ________.
A)
an attitude that causes stress
B)
a personal or job-related factor that causes stress
C)
an emotion that causes stress
D)
a person who causes stress
B
Page Ref: 228
Objective: 7.3

35. 113.
A baseball player in a slump who feels stress from trying to raise his batting average is experiencing ________ stress.
A)
role conflict
B)
task demand
C)
interpersonal
D)
role demand
B
Page Ref: 228
Objective: 7.3
114.
A light-hitting baseball player who is suddenly asked to play be a power hitter and hit homeruns would be likely to
experience ________ stress.
A)
role ambiguity
B)
role demand
C)
role overload
D)
role conflict
D
Page Ref: 228
Objective: 7.3
115.
A head football coach who tries to coach every phase of the team—offense, defense, and special teams—rather than
delegate authority is likely to suffer from ________.
A)
interpersonal demand
B)
task demand
C)
role overload
D)
role conflict
C
Page Ref: 228
Objective: 7.3

36. 116.
Which of the following might reduce a sense of task demand stress for a worker?
A)
autonomy in the workplace
B)
close monitoring by her supervisor
C)
overcrowded conditions
D)
uncomfortably high temperatures in the workplace
A
Page Ref: 228
Objective: 7.3
117.
Which of the following might be a source of stress for an employee who is very happy with her job with respect to the
tasks she performs, what is expected from her, and how she is supervised?
A)
task demands
B)
interpersonal demands
C)
organizational leadership
D)
role overload
B
Page Ref: 228
Objective: 7.3
118.
Anika loves being a professional dancer, but she feels stress from the tension-packed, high-pressure, fear-filled
atmosphere of her group. She is likely to be experiencing stress from ________.
A)
role overload
B)
too much autonomy
C)
organizational leadership
D)
role ambiguity
C
Page Ref: 228
Objective: 7.3

37. 119.
George constantly strives to excel. He must always get the highest grade in the class and has a sense of urgency about him
at all times. George probably has which of the following?
A)
neither Type A nor Type B personalty
B)
both Type A and Type B personality
C)
Type A personality
D)
Type B personality
C
Page Ref: 228-229
Objective: 7.3
120.
Kara is a very relaxed, easygoing person who appears to have all the time in the world. She is never too busy to stop and
chat for a moment. Kara has which of the following?
A)
neither Type A nor Type B personality
B)
Type A personality
C)
Type B personality
D)
both Type A and Type B personality
C
Page Ref: 229
Objective: 7.3
121.
A key to dealing with stress is to recognize that all stress ________.
A)
can be eliminated from an employee's life
B)
cannot be eliminated from an employee's life
C)
leads to dysfunctional work behavior
D)
originates on the job
B
Page Ref: 229
Objective: 7.3

38. 122.
To reduce stress managers need to make sure that employees ________.
A)
have jobs that match their abilities
B)
maximize their productivity
C)
don't work too few hours
D)
don't work too many hours
A
Page Ref: 229
Objective: 7.3
123.
Job redesigns are good ways to reduce stress that employees feel from ________.
A)
boredom only
B)
work overload only
C)
boredom overload
D)
work overload or boredom
D
Page Ref: 229
Objective: 7.3
124.
Stress from an employee's personal life can best be helped by this.
A)
job redesign
MBO
B)
C)
performance planning programs
D)
employee assistance programs
D
Page Ref: 229
Objective: 7.3

39. 125.
Studies show that ________ personalities show negative effects from stress.
A)
Type B
B)
neither Type A nor Type B
C)
Type A
D)
both Type A and Type B
D
Page Ref: 229
Objective: 7.3
126.
Studies show that employee assistance programs (EAPs) are ________.
A)
much too expensive, but sometimes useful
B)
a waste of time and energy
C)
not cost effective
D)
cost effective and very useful
D
Page Ref: 230
Objective: 7.3
127.
________ refers to the ability to combine ideas in a unique way or to make unusual associations between ideas.
A)
Open-minded thinking
B)
Creativity
C)
Imagination
D)
Innovation
B
Page Ref: 230
Objective: 7.4

40. 128.
________ is the process of taking a creative idea and turning it into something useful.
A)
Creativity
Innovation
Imagination
B)
C)
D)
Inspiration
B
Page Ref: 230
Objective: 7.4
129.
Some people believe that creativity is ________, while others think that creativity ________.
A)
a genuine quality; does not really exist
B)
quickly and easily learned; slowly learned
C)
inborn; can be learned
D)
learned; forgotten after childhood
C
Page Ref: 231
Objective: 7.4
130.
The first step in creativity involves ________.
A)
making something useful
B)
consolidation
C)
putting ideas together
D)
seeing things from a unique perspective
D
Page Ref: 231
Objective: 7.4

41. 131.
Which of the following steps in the creativity process may take years before the idea finally "gels" and the next step
occurs?
A)
innovation
inspiration
perception
B)
C)
D)
incubation
D
Page Ref: 231
Objective: 7.4
132.
The moment when all prior efforts in the innovative process successfully come together is known as ________.
A)
innovation
incubation
perception
B)
C)
D)
inspiration
D
Page Ref: 231
Objective: 7.4
133.
Using the systems model, managers can promote innovation by having the right ________.
A)
mechanistic management structure
B)
people and inputs
C)
outputs and resources
D)
people and environment
D
Page Ref: 231
Objective: 7.4

42. 134.
________ variables are thought to promote innovation.
A)
Cultural, ambiguous, and tolerant
B)
Structural, ambiguous, and tolerant
C)
Structural, human resource, and cultural
D)
Organic, cultural, and tolerant
C
Page Ref: 232
Objective: 7.4
135.
An innovative organization needs to tolerate ________ because creative ideas sometimes seem foolish at first.
A)
ambiguity
conflict
inefficiency
B)
C)
D)
the impractical
D
Page Ref: 232
Objective: 7.4
136.
An innovative organization needs to tolerate risk because employees ________ the creative process.
A)
being in physical danger is not part of
B)
making mistakes is not part of
C)
making mistakes is part of
D)
being in physical danger is part of
C
Page Ref: 232
Objective: 7.4

43. 137.
Managers who want creative and innovative employees should ________.
A)
stress that there is only one path to a goal
B)
not place much emphasis on goals
C)
focus on means rather than ends
D)
focus on ends rather than means
D
Page Ref: 233
Objective: 7.4
138.
________ actively support innovation and every step of the process that leads to innovative ideas.
A)
All managers
B)
Champion managers
C)
Idea managers
D)
Idea champions
D
Page Ref: 233
Objective: 7.4
139.
All of the following are common personality characteristics of idea champions EXCEPT ________.
A)
energy
B)
risk aversion
C)
extremely high self-confidence
D)
persistence
B
Page Ref: 236
Objective: 7.4

44. 140.
In a short essay, identify and discuss two external forces that bring about the need for change.
The external forces that create the need for change include the marketplace, which can affect companies by requiring
them to constantly adapt to changing conditions as new products and rivals appear on the scene. For example, a new rival
in the marketplace that features lower prices may cause a company to change its production processes. Or a new product
that comes on the market may cause one of a company's key products to become obsolete. The company may then choose
to innovate and develop new products to compete with the new product.
Page Ref: 219
Objective: 7.1
141.
In a short essay, identify and discuss two additional external forces that bring about the need for change.
Fluctuation in labor markets can often force managers to make changes. Organizations that need special kinds of
employees must change their human resource management activities to attract and retain skilled employees in the areas
of greatest need. For example, if the market suddenly experiences a shortage of highly skilled technical workers, a
company may need to change its hiring or compensation practices to make sure it can secure the employees it needs.
Page Ref: 219
Objective: 7.1
142.
In a short essay, identify and discuss how internal forces can bring about the need for an organization to change.
Internal forces originating from the internal operations of an organization or from the impact of external changes can
create the need for change in an organization.
An example of a internal change bringing about the need for other changes occurs when a company decides to
restructure. For example, a company may decide that it needs to move from a centralized structure to a decentralized
structure that features work teams. Forming these teams and making them operational and productive would bring about
enormous changes in the way a company does business.
Page Ref: 220-221
Objective: 7.1
143.
In a short essay, describe the "calm waters" view of organizational change.
Up until the late 1980s, the "calm waters" metaphor was a fairly accurate description of the situation that most managers
faced. It's best illustrated by Lewin's three-step description of the change process. According to Lewin, successful change
can be planned and requires first to unfreeze the status quo, then to change to a new state, and finally to refreeze to make
the change permanent.
Page Ref: 222-224
Objective: 7.1
144.

45. In a short essay, describe the "white-water rapids" view of organizational change.
The "white-water rapids" metaphor assumes that the stable-state equilibrium that serves as the status quo in the "calm
waters" metaphor simply does not exist. There are no "calm waters" in this view, only tumultuous rapids of various
magnitudes and durations. Disruptions are the norm, and they are never followed by a permanent return to calm waters
or predictable stability. 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.
Page Ref: 222-224
Objective: 7.1
145.
In a short essay, discuss why people resist change due to uncertainty. Include an example to support your answer.
Resisting change due to uncertainty is based on people's fear of the unknown. In most cases, change replaces the certainty
of what is known with the uncertainty of what is not known. People find dealing with unknowns unsettling. They like to
stick with what is familiar and comfortable.
Page Ref: 225-227
Objective: 7.2
146.
In a short essay, discuss why people resist change due to the fear of losing possessions. Include an example to support
your answer.
People resist change out of fear of losing items that they already possess after having made considerable investment in the
status quo.
For example, suppose a scientific research company decides to reward employees strictly on new discoveries that they
make or contribute to. Young, ambitious workers who haven't accomplished much yet might think this is a great idea.
Older workers who in a sense are resting on accomplishments and status established in the past, however, might see the
new system as a threat: they are giving up their old standing and forced to earn their new standing. Understandably,
these older workers might feel threatened and would resist such a change.
Page Ref: 225-227
Objective: 7.2
147.
In a short essay, discuss why people resist change when they think it is incompatible with organizational goals. Include
an example to support your answer.
People sometimes resist change when they think it is incompatible with the goals and interests of their organization. For
example, an employee at a company might resist the company's decision to stop giving out free turkeys at Thanksgiving.
Page Ref: 225-227
Objective: 7.2
148.
In a short essay, explain the three types of organizational change.

46. Organizational changes are typically classified in one of three categories: changes in the people, structure, or the
technology of an organization.
Changing structure includes any change in how a company is organized. For example, any changes that involve altering
such things as work specialization, departmentalization, chain of command, span of control, centralization and
decentralization, and formalization would be changes of structure.
Changing technology encompasses modifications in the way work is performed or the methods and equipment that are
used. For example, when an organization obtains new equipment or modifies its production line procedure it is changing
the company's technology.
Page Ref: 218
Objective: 7.1
149.
In a short essay, explain organization development (OD).
Organization development (OD) is the effort to assist members of an organization as they deal with a planned change.
The focus of OD is to constructively change the attitudes and values of organization members so they can accept and
embrace planned changes, becoming more effective in achieving the new goals of the organization.
Page Ref: 224-225
Objective: 7.1
150.
In a short essay, list and explain four common organization development (OD) techniques.
Team building  activities that help team members learn how each member thinks and works, with the focus of
increasing members' trust and openness towards each other.
Intergroup development  changing the attitudes, stereotypes, and perceptions that work groups have about each other.
Process consultation  an outside consultant helps the manager understand how processes are affecting the way work is
being done.
Page Ref: 224-225
Objective: 7.1
151.
In a short essay, explain what stress is and how it arises.
Stress is the reaction people have to pressure placed on them from demands, constraints, or opportunities. Stress is not
always bad. Although it is often discussed in a negative context, stress does have a positive value, particularly when it
offers a potential gain or opportunity. However, stress is more often associated with constraints and demands than
positive opportunities. A constraint prevents you from doing what you desire; a demand refers to the loss of something
desired.
When you have your annual performance review at work, you feel stress because you confront opportunity, constraints,
and demands. A good performance review may lead to opportunity—a promotion, greater responsibilities, and a higher
salary. A poor review may keep you from getting the promotion or even being demoted in some way.
Page Ref: 227-229
Objective: 7.3

47. 152.
In a short essay, discuss some causes of stress and describe some typical symptoms of stress in the workplace.
Stress can be caused by personal factors and by job-related factors. Clearly, change of any kindpersonal or jobrelatedhas the potential to cause stress as it can involve demands, constraints, or opportunities. Because organizational
changes are frequently created in a climate of uncertainty and around issues that are important to employees, it's not
surprising that organizational change is a common stressor.
Stress is exhibited in a number of ways. Stress symptoms can be grouped under three general categories: physical,
psychological, and behavioral. All of these can significantly affect an employee's work.
Page Ref: 227-229
Objective: 7.3
153.
In a short essay, discuss ways that managers can help to reduce job-related stress for their employees.
Managerial options to deal with job-related stress begin with job suitability for employees. Managers need to make sure
that an employee's abilities match his or her job requirements. When employees are in over their heads, their stress levels
typically will be high. A realistic job preview and good communication can minimize stress. A performance planning
program such as MBO can clarify job responsibilities, provide clear performance goals, and reduce unsettling feelings of
ambiguity that employees have through feedback.
Page Ref: 229
Objective: 7.3
154.
In a short essay, discuss ways that managers can help to reduce stress for their employees that originates outside of the
workplace.
Stress from an employee's personal life raises two problems. First, stress from an employee's personal life can be difficult
for the manager to control directly, since the manager has no access to the employee's home life and no way to change the
conditions that the employee experiences.
Second, there are ethical issues to consider when dealing with an employee's personal life. Specifically, does the manager
have the right to intrudeeven in seemingly innocuous waysin an employee's personal life?
If a manager believes that she is not overstepping ethical boundaries and the employee is receptive, there are a two major
approaches the manager can consider: employee assistance programs and wellness programs.
Employee assistance programs can provide counseling, advice and other forms of assistance for employees for troubles
that include alcoholism, finances, and legal issues.
Page Ref: 229-230
Objective: 7.3
155.
In a short essay, define and discuss creativity and innovation in the workplace.

48. Creativity refers to the ability to combine ideas and make unusual and meaningful associations between those ideas. An
organization that stimulates creativity develops unique ways to work or novel solutions to problems.
Page Ref: 230-231
Objective: 7.4
156.
In a short essay, discuss the three sets of variables that have been found to stimulate innovation.
The three sets of variables that have been found to stimulate innovation are an organization's structure, culture, and
human resource practices.
Structural variables: Research into the effect of structural variables on innovation shows that organic structures positively
influence innovation. Also, the easy availability of plentiful resources provides a key building block for innovation. Third,
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, have few rules, tolerate risks, conflict, and impracticalities, provide lots of positive feedback, and
tend to focus on ends rather than means.
Page Ref: 231-232
Objective: 7.4