Modern Management, 13e (Certo/Certo)

Chapter 13 Organizational Change: Stress, Conflict and Virtuality

1) Organizational changes typically affect the established lines of organizational communication.
Answer: TRUE
Page Ref: 287
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 1
Difficulty: Easy
Classification: Conceptual
2) An unstable organization with high capability to adapt is characterized by moderate
probability of success.
Answer: FALSE
Page Ref: 287-288
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 2
Difficulty: Easy
Classification: Conceptual
3) Organizational survival and growth are most probable when both stability and adaptation are
high within the organization.
Answer: TRUE
Page Ref: 288
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 2
Difficulty: Easy
Classification: Conceptual
4) A change agent is an environmental factor that acts as a moderator for organizational changes.
Answer: FALSE
Page Ref: 288-289
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual

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5) Structural change emphasizes increasing organizational effectiveness by changing controls

that influence organization members during the performance of their jobs.
Answer: TRUE
Page Ref: 290
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
6) Structural factors of organizational effectiveness are any types of equipment or processes that
assist organization members in the performance of their jobs.
Answer: FALSE
Page Ref: 289
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
7) Clarifying and defining jobs in an organization is an example of a people change.
Answer: FALSE
Page Ref: 290
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
8) The managerial grid is based on the premise that various managerial styles can be described
by means of managers' concern for cost and concern for technology.
Answer: FALSE
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual

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9) Resistance to change can be lowered by not informing the employees about the change too
early.
Answer: FALSE
Page Ref: 293-294
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 4
Difficulty: Easy
Classification: Conceptual
10) Making changes on a tentative basis increases resistance to organizational change.
Answer: FALSE
Page Ref: 294
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 4
Difficulty: Easy
Classification: Conceptual
11) Changes made in the organization with an aim to improve individual satisfaction are not
justified.
Answer: FALSE
Page Ref: 293-294
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 5
Difficulty: Easy
Classification: Conceptual
12) Stress is the bodily strain that an individual experiences as a result of coping with some
environmental factor.
Answer: TRUE
Page Ref: 295
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual

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13) The highest level of worker performance and productivity is associated with the lowest level
of worker stress.
Answer: FALSE
Page Ref: 296
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Moderate
Classification: Conceptual
14) Stress is seldom significantly reduced until the stressors causing it have been coped with
satisfactorily or withdrawn from the environment.
Answer: TRUE
Page Ref: 297
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual
15) Contrary to popular belief, standardized jobs and procedures actually reduce stress as
compared to jobs that are classified as "interesting" by allowing more room for employee
creativity.
Answer: FALSE
Page Ref: 297
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Moderate
Classification: Conceptual
16) Organizational conflicts can result in positive impact for the organization.
Answer: TRUE
Page Ref: 300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual

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17) Compromise technique is inappropriate when the planned change is relatively minor and the
time to make an organizational change is limited.
Answer: FALSE
Page Ref: 298-299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
18) Avoiding is a conflict management technique whereby managers simply ignore the conflict.
Answer: TRUE
Page Ref: 299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
19) Forcing a solution is an inappropriate approach in an emergency.
Answer: FALSE
Page Ref: 299-300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
20) Unlike most other ways of managing conflicts, resolving is used when managers perceive
that they are in a win-loss conflict with employees.
Answer: FALSE
Page Ref: 300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual

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21) Changing an organization is the process of modifying an existing organization to increase

organizational effectiveness. Which of the following statements is true about such modifications?
A) Such changes must use established lines of organizational communication.
B) The changes occur intermittently and are of a large magnitude.
C) Such modifications can involve any organizational segment.
D) The changes are made independent of the environment.
E) The modifications do not involve changes in organizational authority.
Answer: C
Page Ref: 287
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 1
Difficulty: Easy
Classification: Conceptual
22) Which of the following is the most complete description of organizational effectiveness?
A) the extent to which an organization accomplishes its objectives
B) overall profitability of an organization or an organizational unit
C) ability of an organization to produce maximum output with a given input
D) the extent to which an organization's actions benefit society
E) the extent to which an organization's resources are used cost-effectively
Answer: A
Page Ref: 287
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 1
Difficulty: Easy
Classification: Conceptual
23) Hellriegel and Slocum's model shows the relative importance of ________ to organizational
survival.
A) external and internal environments
B) change and stability
C) innovation and conservativeness
D) trust and vigilance
E) change and risk taking ability
Answer: B
Page Ref: 288
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 2
Difficulty: Easy
Classification: Conceptual

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24) Which of the following is depicted in a model developed by Hellriegel and Slocum?
A) importance of stress and efficiency to organizational survival
B) importance of change and stability to organizational survival
C) importance of finances and production to organizational survival
D) importance of attitudes and behaviors to organizational survival
E) importance of training and motivation to organizational survival
Answer: B
Page Ref: 288
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 2
Difficulty: Easy
Classification: Conceptual
25) Alterx Technologies International Inc., a technology solutions company, provides managed
technology solutions to small and medium sized businesses. The company is planning to bring
about substantial changes in its operations. However, the company understands some degree of
stability is also a prerequisite for long-term organizational success. Which of the following will
provide Alterx the highest probability of growth and survival?
A) high acceptability and accountability
B) high stability and adaptability
C) high credibility and capability
D) high mobility and plausibility
E) high visibility and profitability
Answer: B
Page Ref: 288
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 2
Difficulty: Easy
Classification: Application
26) The probability of organizational survival and growth declines when ________.
A) visibility is low
B) credibility is high
C) accountability is high
D) mobility is low
E) stability is low
Answer: E
Page Ref: 288
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 2
Difficulty: Easy
Classification: Application
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27) Organizational effectiveness depends primarily on activities centering around three classes of
factors. The factors are ________.
A) data orientation, people, and technology
B) people, structure, and visibility
C) people, technology, and structure
D) structure, procedures, and people
E) structure, technology, and money
Answer: C
Page Ref: 289
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Difficult
Classification: Conceptual
28) Value Innovations Inc. engages in selling computers and other electronic components
through telephone and Web orders. The company has decided to change some of its policies.
When recruiting employees, it will now focus primarily on the attitudes of individuals. Here, the
company is concentrating on a(n) ________ factor.
A) structural
B) technological
C) communication
D) people
E) informative
Answer: D
Page Ref: 289
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application
29) Attitudes, leadership skills, and communication skills are ________.
A) structural factors
B) technological factors
C) communication factors
D) people factors
E) informative factors
Answer: D
Page Ref: 289
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
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30) Which of the following is an example of a structural factor that determines organizational
effectiveness?
A) technologies
B) leadership skills
C) employee attitudes
D) work procedures
E) equipments
Answer: D
Page Ref: 289
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
31) Value Innovations Inc. engages in selling computers and other electronic components
through telephone and Web orders. The company decides to change the existing policies and
procedures to fit the communication needs of the organization. This is an example of a(n)
________ change.
A) administrative
B) people
C) managerial
D) structural
E) technological
Answer: D
Page Ref: 290
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application
32) ________ changes emphasize increasing organizational effectiveness by changing controls
that influence organization members during the performance of their jobs.
A) Technological
B) People
C) Structural
D) Managerial
E) Administrative
Answer: C
Page Ref: 290
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
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33) Clarifying and redefining jobs within an organization is an example of a(n) ________
change.
A) technological
B) people
C) structural
D) essential
E) administrative
Answer: C
Page Ref: 290
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
34) The CEO of a company decides to introduce decentralization to help the organization
exercise greater control over its subunits and increase employee motivation. This is an example
of a(n) ________ change.
A) people
B) administrative
C) technological
D) managerial
E) structural
Answer: E
Page Ref: 290
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application
35) A structural change ________.
A) works by changing controls that influence organization members
B) ensures appropriate functioning of technology
C) develops the skills of the people
D) increases the division of labor
E) makes the change appealing to employees
Answer: A
Page Ref: 290
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
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36) Which of the following is a type of organizational change that emphasizes modifying certain
aspects of organization members to increase organizational effectiveness?
A) people change
B) structural change
C) administrative change
D) managerial change
E) behavioral change
Answer: A
Page Ref: 290-291
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
37) Which of the following terms refers to the process of people change?
A) organizational planning
B) organizational communication
C) institutional design
D) resource mobilization
E) organization development
Answer: E
Page Ref: 291
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
38) Grid organization development technique is commonly used for ________.
A) changing people in organizations
B) designing structural changes
C) evaluating structural changes
D) evaluating technical changes
E) changing business processes
Answer: A
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual

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39) The managerial grid proposes that various managerial styles can be described by a manager's
concern for ________.
A) quantity and quality
B) production and people
C) power and acceptance
D) profit maximization and revenue maximization
E) customers and company
Answer: B
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
40) Which of the following styles of management involves exertion of minimum effort to get the
required work done?
A) 9,9
B) 9,1
C) 5,5
D) 1,1
E) 1,9
Answer: D
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
41) What score in the managerial grid is associated with ideal managerial style?
A) 9,9
B) 1,1
C) 9,1
D) 1,9
E) 5,5
Answer: A
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual

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42) What does a managerial grid score of 9,1 indicate?

A) Manager is effective in satisfying relationships and is less concerned about production.
B) Manager is highly concerned about production though he ignores the people aspects of work.
C) The manager maintains a balance between the necessity to perform work and employee
morale.
D) The manager derives superior performance from employees who are highly dedicated.
E) Manager is neither effective in maintaining relations nor in effectively maintaining
production.
Answer: A
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
43) Robert, the operations manager of a manufacturing company, gives adequate attention to the
needs of his employees and maintains a friendly organizational atmosphere. However, he is often
criticized for not meeting the performance goals and poor quality of products. Robert's
managerial style is likely to be associated with what score in the managerial grid?
A) 9,9
B) 1,1
C) 9,1
D) 1,9
E) 5,5
Answer: D
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application

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44) Albert believes adequate organizational performance is possible by balancing the need to get
good quality work done on the one hand and addressing the needs of his employees on the other.
What score in the managerial grid is most closely associated with Albert's managerial style?
A) 1,1
B) 5,5
C) 1,9
D) 9,1
E) 9,9
Answer: B
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 3
Difficulty: Moderate
Classification: Application
45) An organization decides to implement a supply chain management system to increase the
efficiency of its operations. A group of employees resist the implementation. Which of the
following could be the most probable reason for their resistance?
A) The change would increase the productivity as well as responsibility of most members of the
group.
B) The group fears that the implementation would adversely affect their role in the organization.
C) Implementation of a supply chain management system would lead to a change in
organizational hierarchy.
D) Implementation of supply chain management system often leads to blockage of crucial
information.
E) Supply chain management system cannot be used to manage the internal operations of a
company.
Answer: B
Page Ref: 293
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 4
Difficulty: Moderate
Classification: Application

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46) Which of the following is a common reason behind employee resistance to change?
A) Most individuals are open to experience.
B) Individuals fear some type of personal loss.
C) Most changes involve changes in organizational hierarchy.
D) Faith in the status-quo is limited.
E) Most organizations maintain high power distance.
Answer: B
Page Ref: 293
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 4
Difficulty: Easy
Classification: Conceptual
47) When organization members remain oriented more to the past than the future in spite of the
changes already initiated ________.
A) the situation calls for more changes in the organization
B) the existing status quo should be maintained
C) the organization is highly likely to achieve its goals without further changes
D) the members are highly committed toward the long-term goals of the organization
E) the organization has a strong culture
Answer: A
Page Ref: 295
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 5
Difficulty: Easy
Classification: Conceptual
48) The bodily strain that an individual experiences as a result of coping with some
environmental factor is called ________.
A) stress
B) conflict
C) anger
D) aggression
E) denial
Answer: A
Page Ref: 295
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Reflective Thinking Skills
Objective: 6
Difficulty: Easy
Classification: Conceptual

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49) From a worker-performance standpoint, stress is most favorable when ________.

A) stress levels are extremely high
B) stress levels are extremely low
C) related stressors are temporary
D) stress levels are associated with increased aggression
E) stress levels are neither too high nor too low
Answer: E
Page Ref: 296
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual
50) Which of the following is an observable symptom of undesirably high stress levels?
A) low to moderate levels of anxiety
B) higher energy levels
C) reduced work hours
D) working without many breaks
E) increased aggression
Answer: E
Page Ref: 296
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual
51) What type of demand is a stressor that causes people to feel stress?
A) environmental demand
B) psychological condition
C) internal feeling
D) emotional response
E) disturbing reflection
Answer: A
Page Ref: 297
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual

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52) Workplace bullying refers to ________.

A) individuals being isolated or excluded socially and having work efforts devalued
B) keeping employee salaries and benefits much below industry standards
C) promoting organizational conflicts and in-fights to increase performance
D) hiring more employees than what is required to run the business
E) recruiting employees who are incapable or under-qualified to perform certain jobs
Answer: A
Page Ref: 297
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual
53) Which of the following strategies is likely to be most useful in reducing organizational
stress?
A) increasing power distance in the organization
B) promoting employees based on objective criteria such as years of experience
C) modifying the basic values of organizational culture
D) making the organizational environment more informal
E) establishing vertical decision-making procedures
Answer: D
Page Ref: 297
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual
54) Employees often experience considerable stress when they do not know what the next step in
their professional lives might be or when they might take it. Which of the following could be the
best solution to this problem?
A) creating standardized jobs and define procedures
B) designing and operating career counseling programs
C) promoting creativity and innovation at the workplace
D) modifying the basic norms of organizational culture
E) making the organizational climate more formal
Answer: B
Page Ref: 297
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 6
Difficulty: Easy
Classification: Conceptual

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55) ________ is defined as the struggle that results from opposing needs or feelings between two
or more people.
A) Change
B) Apathy
C) Conflict
D) Stress
E) Avoidance
Answer: C
Page Ref: 298
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
56) Which of the following is a conflict resolution strategy where parties to the conflict settle on
a solution that gives both of them part of what they wanted?
A) compromising
B) negotiating
C) avoiding
D) resolving
E) adjudication
Answer: A
Page Ref: 298-299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
57) Which of the following is a key characteristic of the compromising strategy used to resolve
conflicts?
A) a solution acceptable to all parties
B) low involvement of managers and supervisors
C) implementing orientation programs
D) use of legitimate power and authority
E) complex procedures for decision making
Answer: A
Page Ref: 298-299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual

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58) A manager wants to implement some changes in the working hours of employees. Two
groups of workers oppose this decision and have contrasting opinions. The manager feels
arriving at a solution that will be acceptable to both parties is impossible. Which of the following
strategies is best suited to handle this conflict?
A) forcing
B) deflecting
C) avoiding
D) resolving
E) compromising
Answer: E
Page Ref: 298-299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 7
Difficulty: Moderate
Classification: Application
59) Identify a situation where compromising is highly appropriate.
A) The planned change is relatively minor and time is limited.
B) Management feels that all conflict is bad.
C) Employee opinions are vastly diverse and complex.
D) Management has to implement an emergency change.
E) Management wants to arrive at a win-win solution.
Answer: A
Page Ref: 298-299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 7
Difficulty: Easy
Classification: Application
60) ________ is a conflict management technique where managers simply ignore the conflict.
A) Resolving
B) Compromising
C) Cooperating
D) Avoiding
E) Conciliating
Answer: D
Page Ref: 299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
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61) The avoiding technique is generally appropriate when ________.

A) the planned change is extensive and time is limited
B) an emergency change has to be made in the organization
C) a win-win solution is essential to the organization
D) the parties involved in the conflict are powerful
E) the potential conflict will not limit organizational goal attainment
Answer: E
Page Ref: 299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
62) The HR manager of Axon Limited finds that the personnel in the marketing department are a
continual source of conflict because they do not accept and adapt to changes. As a result of this,
the manager ignores their views when he has to make changes. This strategy could be
appropriate when ________.
A) the planned change is relatively critical to the organization
B) the change has strategic impacts on the employees
C) a win-win solution is essential to the organization
D) the HR department is powerful and crucial to the organization
E) the potential conflict will not limit organizational goal attainment
Answer: E
Page Ref: 299
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 7
Difficulty: Moderate
Classification: Application
63) ________ is a technique for managing conflict in which managers use their authority to
resolve conflicts.
A) Resolving
B) Compromising
C) Negotiating
D) Avoiding
E) Forcing
Answer: E
Page Ref: 299-300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
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64) William, the CEO of a leading electronic equipment manufacturer, decides to implement a
new performance appraisal system in the organization. The new system faces stiff resistance
from the employees. William, however, uses his authority to implement the system. Identify the
conflict management system used here.
A) forcing
B) negotiating
C) avoiding
D) resolving
E) adjudication
Answer: A
Page Ref: 299-300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 7
Difficulty: Moderate
Classification: Application
65) Which of the following conflict management techniques is best suited to make an emergency
change in an organization?
A) resolving
B) compromising
C) negotiating
D) avoiding
E) forcing
Answer: E
Page Ref: 299-300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
66) Identify a major advantage of using forcing technique to resolve conflicts.
A) Forcing is a fast method for implementing critical changes.
B) It is considered the best strategy to handle complex conflicts.
C) It can have a win-win orientation if the manager is skillful.
D) Forcing is the best strategy when the planned change is relatively minor.
E) The solution obtained will be acceptable to the majority of employees.
Answer: A
Page Ref: 299-300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
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67) Which of the following techniques of managing conflict involves working out the differences
between managers and employees?
A) resolving
B) averting
C) compromising
D) avoiding
E) forcing
Answer: A
Page Ref: 300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
68) Which of the following conflict resolution techniques assumes that some conflicts are winwin conflicts?
A) avoiding
B) compromising
C) forcing
D) negotiating
E) resolving
Answer: E
Page Ref: 300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
69) Jacob believes most conflicts are win-win conflicts. He always attempts to overcome them
by working out differences with employees. Which of the following conflict management
techniques is preferred by Jacob?
A) resolving
B) compromising
C) cooperating
D) avoiding
E) conciliating
Answer: A
Page Ref: 300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 7
Difficulty: Moderate
Classification: Application
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70) Which of the following is a valid observation about the resolving technique used to manage
conflicts?
A) Managers are not involved in the conflict resolution process.
B) It tends to assume managers and employees are in a win-lose conflict.
C) It is best suited when an immediate change has to be made.
D) Managers pinpoint differences regarding change that exist between themselves and
employees.
E) It is the only method suitable for managing minor conflicts.
Answer: D
Page Ref: 300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
71) Which of the following is characterized by the most extensive degree of virtualization?
A) virtual meeting
B) virtual training
C) virtual team
D) virtual corporation
E) virtual group
Answer: D
Page Ref: 300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
72) Which of the following is characterized by groups of employees formed by managers?
A) virtual meeting
B) virtual training
C) virtual team
D) virtual corporation
E) virtual group
Answer: C
Page Ref: 300-301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual

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73) ________ is a training process that goes beyond the boundaries and structure of traditional
training.
A) Virtual training
B) Virtual teams
C) Virtuality
D) Virtual corporation
E) Virtual organization
Answer: A
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
74) ________ workers have fixed, traditional offices and work schedules but sometimes work at
home.
A) Fully mobile
B) Home-based
C) Tethered in office
D) Occasional telecommuting
E) Hoteling
Answer: D
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
75) Which of the following alternative work arrangements is characterized by the least amount of
mobility?
A) hoteling
B) tethered in the office
C) home based
D) occasional telecommuting
E) working out of a car
Answer: D
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Moderate
Classification: Conceptual

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Copyright 2014 Pearson Education, Inc.

76) Which of the following is an alternative work arrangement where workers come into the
traditional office frequently, but because they are not always physically present, they are not
allocated permanent office space?
A) flextime working
B) hoteling
C) occasional telecommuting
D) tethered in office
E) home based
Answer: B
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
77) Catherine works as a training specialist at a retail organization. She is not always physically
present in the office though she works from other locations using a portable computer. She
usually informs her colleagues in advance when she decides to come in and work from office.
This work arrangement is an example of ________.
A) fully mobile working
B) tethered in office arrangement
C) home-based working
D) hoteling
E) occasional telecommuting
Answer: D
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 8
Difficulty: Moderate
Classification: Application

25
Copyright 2014 Pearson Education, Inc.

78) Which of the following is a trait of "tethered in office" work arrangement?

A) Employees are not allocated permanent office spaces.
B) Employees remain in the office most of the time and work from home occasionally.
C) Employees are allowed to move out of the office for a few days or weeks.
D) Employees are expected to report to the office on a regular basis though they have mobility.
E) Employees report to the office only occasionally though they obey all the organizational
norms.
Answer: D
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
79) Workers who have some mobility but are expected to report to the office on a regular basis
are called ________.
A) fixed workers
B) hoteling workers
C) tethered workers
D) home based
E) mobile workers
Answer: C
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual

26
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80) An organization is conducting a survey and has a team that collects primary data from
consumers by interviewing them and getting them to fill out questionnaires. The team members
report to work regularly, get the day's assignment, and come back to the office in the evenings to
discuss the day's findings and plan for the next day. Which of the following work arrangements
is being used by this organization?
A) flextime working
B) hoteling
C) occasional telecommuting
D) tethered in office
E) fully mobile working
Answer: D
Page Ref: 301
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 8
Difficulty: Moderate
Classification: Application
81) Identify an advantage of establishing virtual offices.
A) They provide better opportunities for employee socialization.
B) They help the organization build the desired corporate culture.
C) Virtual offices enable cost reduction.
D) Virtual offices enhance management control.
E) They help the organization reduce the dependence on technology.
Answer: C
Page Ref: 302
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
82) What is the most commonly cited reason for designing and implementing virtual offices?
A) better customer service
B) more mobile
C) increased productivity
D) less employee drama
E) cost reduction
Answer: E
Page Ref: 302
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
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Copyright 2014 Pearson Education, Inc.

83) NTS Publishing, Inc., together with its subsidiaries, publishes print and electronic products
that provide content and digital solutions to customers worldwide. The company decides to make
use of virtual teams. Which of the following could be a possible advantage of this?
A) Use of virtual teams would help them reduce the costs.
B) This would help the company enhance its corporate culture.
C) Virtual teams would help them enhance management control.
D) The organization can reduce the dependence on technology by doing this.
E) The company can improve its employee socialization process.
Answer: A
Page Ref: 302
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 8
Difficulty: Moderate
Classification: Application
84) Which of the following is a challenge associated with managing virtual offices?
A) Virtual offices make it more difficult to build desired corporate culture.
B) Virtual offices increase the cost of operations.
C) It is suitable only for senior employees.
D) It markedly reduces employee productivity.
E) Employee mobility cannot be achieved effectively by using virtual offices.
Answer: A
Page Ref: 302
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 8
Difficulty: Easy
Classification: Conceptual
85) Briefly explain the dynamics of organizational change and stability.
Answer: In addition to organizational change, some degree of stability is a prerequisite for longterm organizational success. Organizational survival and growth are most probable when both
stability and adaptation are high within the organization. The organization without enough
stability to complement change is at a definite disadvantage. When stability is low, the
probability of organizational survival and growth declines. Change after change without regard
for the essential role of stability typically results in confusion and employee stress.
Page Ref: 287-288
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 2
Difficulty: Easy
Classification: Conceptual

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86) Explain the concept of grid organizational development (grid OD).

Answer: People change (one of the three categories of change) is often referred to as
organization development. Grid organizational development is a commonly used technique based
on a theoretical model called the managerial grid. The managerial grid is based on the concept
that various management styles can be described in terms of concern for people and concern for
production. It is assumed that the 9,9 position on the grid, a high concern for people and a high
concern for production, is the best point to work toward. The purpose of grid OD is to change
organization managers so they will use the 9,9 management style.
Page Ref: 292
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 3
Difficulty: Easy
Classification: Conceptual
87) How do most people react to change and why? What can managers do about this reaction?
Answer: When confronted with organizational change, most individuals resist change. Behind
this resistance often lies the fear of some personal loss, such as the loss of power, prestige, social
and working relationships. To ensure the success of needed changes, managers must be able to
reduce the resistance to change. Avoiding surprises can partially do this. People often need time
to evaluate a proposed change before implementation. Another managerial strategy is to promote
a real understanding of the change to reduce the fear of the change. Provide the employees with
all needed information on the change. Managers should also set the stage for the change.
Managers, including top and middle management, need to convey a positive attitude toward the
change. Whenever possible, make the change a tentative change. Allowing a change to be
processed through a trial period decreases resistance to the change and increases the probability
of acceptance of the change.
Page Ref: 293-294
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 4
Difficulty: Difficult
Classification: Conceptual

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88) Briefly describe the four strategies used to manage conflicts.

Answer: Compromising: One conflict management strategy a manager can use is to
compromise, which means the parties to the conflict settle on a solution that gives both of them
part of what they wanted. Managers who choose to compromise generally feel that a solution
completely acceptable to everyone would be difficult to reach and they would rather not force
someone to accept a completely disagreeable choice.
Avoiding: Some managers adopt the avoiding technique as a means to manage conflict. Avoiding
is a conflict management technique whereby managers simply ignore the conflict. This strategy
makes sense if you assume that all conflict is bad.
Forcing: Rather than avoiding conflict, a manager may want to try a more direct approach to
managing conflict. Forcing is a technique for managing conflict in which managers use authority
to declare that conflict is ended. In essence, managers declare that conflict is ended because they
have the authority to do so.
Resolving: Perhaps the most direct and sometimes the most difficult way to manage
conflict is to work out the difference(s) between managers and employees. This conflict
management strategy is called resolving. The manager initiates this technique by pinpointing
differences related to organizational change that exists between managers and employees.
Resolving assumes that many conflicts are win-win conflicts, in which the resolution can leave
both management and employees achieving desirable outcomes and correspondingly, helping the
organization maximize organizational success.
Page Ref: 298-300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
Objective: 7
Difficulty: Easy
Classification: Conceptual
89) A manufacturing company is at significant competitive disadvantage due to the lack of
necessary automation. The company has not been able to implement the automated system due to
opposition from a group of workers. What strategy can be used here to implement automation?
Answer: Forcing is a technique for managing conflict in which managers use authority to
declare that conflict is ended. Forcing a solution is a relatively fast way to manage a conflict, and
it may be the best approach in an emergency. In this situation forcing could be the best way to
implement the change considering the importance of the situation. Management could also use
avoiding strategy if the opposition is from a weaker group.
Page Ref: 299-300
Learning Outcome: Describe the change process and strategies for making changes in an
organization
AACSB: Analytic Skills
Objective: 7
Difficulty: Moderate
Classification: Application

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Copyright 2014 Pearson Education, Inc.