BUAD 309 Chapter 18 | Questions and Answers (Complete Solutions)

BUAD 309 Chapter 18 | Questions and Answers (Complete Solutions) An example of change in the nature of the workforce is an increase in ________. A) college attendance B) mergers and consolidations C) capital investment ...

BUAD 309 Chapter 18 | Questions and Answers (Complete Solutions) An example of change in the nature of the workforce is an increase in ________. A) college attendance B) mergers and consolidations C) capital investment D) divorce rates E) cultural diversity Almost every organization must adjust to a multicultural environment, demographic changes, immigration, and outsourcing. This represents the changing nature of the workforce Organizations are increasingly adjusting their processes and positioning their products as environment friendly and sustainable in order to increase their appeal to consumers. This is a response to changes in ________. A) demographic trends B) social trends C) cultural trends D) legal requirements E) nature of the workforce Social trends don't remain static. Consumers now meet and share information in chat rooms and blogs. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends. Consumers, employees, and organizational leaders are more sensitive to environmental concerns. "Green" practices are quickly becoming expected rather than optional. Tescra Education is an educational publishing company that provides textbooks in the area of higher education. The company has been in business for almost 20 years now and has earned substantial profits during this period. Which of the following trends, if true, would drive the company to change its business strategy? A) a rise in the cost of electronic products such as iPads and e-book readers, and subscriptions charges for educational apps B) an upward trend in students' preference for face-to-face interaction with instructors using traditional classroom learning techniques C) a need for learning environments where students feel safe to apply the knowledge they've acquired in the classroom to real-life situations D) a decrease in the number of people going back to school to upgrade their skills, due to an economic boom E) an increase in the number of laws and regulations related to intellectual property If students feel the need for learning environments where they feel safe to apply the knowledge they've acquired in the classroom to real-life situations, then online learning methods would be best suited to meet this need. This would require the company to change its business strategy from providing textbooks to focusing on online learning. A rise in the cost of technological tools and a preference for face-to-face interaction with instructors using traditional classroom learning techniques would increase the requirement for textbooks and would not have an impact on the company's business strategy. A decrease in the number of people going back to school to upgrade their skills would imply that there are a fewer number of students and hence the company would not need to change its strategy. Intellectual property laws apply to both online and traditional publishing and would not drive a company to change its business strategy. Fony Corp., headquartered in China, is a leading manufacturer of electronic devices and solutions intended for professional markets. The company is considering upgrading the technology currently being used at Fony's manufacturing facility located in Guangdong that specializes in producing lithium-ion batteries, which are used to power laptops, cameras, cell phones, and other similar gadgets. The new technology is expected to increase efficiency levels and will also allow for greater adherence to quality standards. Which of the following, if true, would most strengthen the argument that Fony Corp. should upgrade its technology? A) The market for consumer electronics such as laptops, cameras, cell phones, and other similar gadgets is in the late maturity stage. B) Fony will be able to recover the cost of the new technology within eight years. C) Fony's main client account is at risk after the client had to recall nearly 2 million notebooks owing to defective batteries. D) The existing technology is currently functioning at the optimal level and the cost of maintenance is minimal. E) Fony last upgraded its technology six years ago and it has an adequate budget to fund the acquisition If Fony's future as a supplier to a primary client is under threat due to its production of defective batteries, then this would most strengthen the argument to upgrade its technology. Given the new technology will ensure better quality, this option would be the most compelling argument. If the market for consumer electronics is in the late maturity stage then this would weaken the argument. The fact that Fony will be able to recover the cost of the new technology within eight years neither strengthens nor weakens the argument. If the existing technology is functioning at the optimal level and the cost of maintenance is minimal, then this weakens the argument. The argument is not strengthened by the fact that Fony last upgraded its technology six years ago and has an adequate budget to fund the acquisition. Which of the following, if true, would most weaken the argument that Fony Corp. should upgrade its technology? A) Employees fear that the new technology will render them obsolete. B) The company will be able to recover the cost of the technology within four years of implementation. C) The new technology is expected to reduce the company's overall cost of production. D) The company's main client is threatening legal action after it had to recall nearly 2 million notebooks owing to defective batteries. E) The technology which the company is considering adopting was recently developed and the company will be first to implement it in a real business context. If the technology which the company plans to adopt was newly developed and the company will be first to use it in a real business context, then this is a potential risk for the company, should the implementation fail. Hence, this most weakens the argument that Fony should upgrade its technology. The company should not avoid upgrading its technology just because of employees' unfounded fears that they might be rendered obsolete due to the new technology. That Fony will be able to recover the cost of the new technology within four years slightly strengthens the argument. If the technology is expected to reduce the cost of production then this would strengthen the argument to upgrade the technology, as would the threat of legal action by a client. An example of change in competition is ________. A) U.S. manufactured Toyota vehicles B) collapse of Enron Corporation C) Iraq-U.S. war D) increased interest in urban living E) a decrease in interest rates Competitors are as likely to come from across the ocean as from across town. Successful organizations will be fast on their feet, capable of developing new products rapidly and getting them to market quickly. They'll be flexible and will require an equally flexible and responsive workforce. A paper sales company designs and offers a new method of purchasing and shipping commercial quantities of paper through their Web site. Earlier, the company used to do its business through its sales representative. This is an example of a(n) ________ change. A) accidental B) secondary C) planned D) cognitive E) integrated The change mentioned in the case is an example of a planned change, or activities that are intentional and goal oriented, compared to accidental change which refers to activities that just happen. ________ are persons who act as catalysts and assume the responsibility for managing refinement activities. A) Early adopter B) Free riders C) Laggards D) Change agents E) Whistle-blowers Change agents are responsible for managing change activities in an organization. They see a future for the organization that others have not identified, and they are able to motivate, invent, and implement this vision. Change agents can be managers or nonmanagers, current or new employees, or outside consultants. Which of the following reactions from employees is preferable as a response to change? A) silence B) apathy C) resignation D) open discussion E) increase in the use of sick time Employees who have negative feelings about a change cope by not thinking about it, increasing their use of sick time, and quitting. All these reactions can sap the organization of vital energy when it is most needed. Resistance to change can be positive if it leads to open discussion and debate. These responses are usually preferable to apathy or silence and can indicate that members of the organization are engaged in the process, providing change agents an opportunity to explain the change effort. It is easiest for management to deal with resistance when it is ________. A) concealed B) deferred C) passive D) implicit E) overt Resistance doesn't necessarily surface in standardized ways. It can be overt, implicit, immediate, or deferred. It's easiest for management to deal with overt and immediate resistance, such as complaints, a work slowdown, or a strike threat. The greater challenge is managing resistance that is implicit or deferred. A(n) ________ resistance to change clouds the link between the change and the reaction to it and may surface weeks, months, or even years later. A) overt B) immediate C) active D) explicit E) deferred A deferred resistance to change clouds the link between the change and the reaction to it and may surface weeks, months, or even years later. Which of the following resistances to change is overt and immediate? A) loss of loyalty B) increased absenteeism C) loss of motivation D) increased error E) complaint Complaint is an overt and immediate response to change Which of the following resistances to change is implicit? A) strike B) increased error C) resignation D) complaint E) work slowdown Resistance to change that is implicit or deferred is difficult to manage. Examples of such responses are loss of loyalty or motivation and increased errors or absenteeism. Organizations have built-in mechanisms—like their selection processes and formalized regulations—to produce stability. When an organization is confronted with change, these mechanisms act as a counterbalance to sustain stability. Which of the following organizational sources of resistance to change is represented by these mechanisms? A) group inertia B) selective information processing C) employee-orientation D) structural inertia E) product- orientation Organizations have built-in mechanisms—like their selection processes and formalized regulations—to produce stability. When an organization is confronted with change, these mechanisms act as a counterbalance to sustain stability. These mechanisms represent structural inertia. Which of the following is an example of an individual source of resistance to change? A) limited focus of change B) product orientation C) fear of the unknown D) structural inertia E) employee orientation Individual sources of resistance to change are habit, security, economic factors, fear of the unknown, and selective information processing. As a result of changing technology and unstable environment, your company is planning to undertake restructuring of the business. The employees in your company are worried about this upcoming change and many of them are anxious due to a fear that they will lose their jobs as a result of this change. But that is not the case. The company only wants to restructure its business units and it is not planning to cut down on jobs. In such a situation, which of the following techniques is most likely to be used by your company to deal with the employees' resistance to change? A) implementing changes fairly B) education and communication C) participation D) manipulation and cooptation E) coercion Communicating the logic of a change can reduce employee resistance on two levels. First, it fights the effects of misinformation and poor communication: if employees receive the full facts and clear up misunderstandings, resistance should subside. Second, communication can help "sell" the need for change by packaging it properly. Which of the following is an example of an organizational source of resistance to change? A) limited focus of change B) security C) fear of the unknown D) selective information processing E) habit Organizational sources of resistance to change include structural inertia, limited focus of change, group inertia, threat to expertise, threat to established power relationships, and threat to established resource allocations. Limited focus of change is a major force for resistance to change that originates from an organizational source. It indicates that ________. A) groups in the organization that control sizable resources often resist change B) changes in organizational patterns may threaten the expertise of specialized groups so these groups tend to resist change C) organizations have structural inertia that acts as a counterbalance to sustain stability D) organizations consist of a number of interdependent subsystems and one can't be changed without affecting the others E) even if individuals want to change their behavior, group norms may act as a constraint Organizations are made up of a number of interdependent subsystems. One can't be changed without affecting the others. So limited changes in subsystems tend to be nullified by the larger system. This force of resistance to change is known as limited focus of change. Selective information processing is a major force for resistance to change. It indicates that ________. A) changes in organizational patterns may threaten the expertise of specialized groups so these groups tend to resist change B) individuals hear what they want to hear and they ignore information that challenges the world they've created C) limited changes in subsystems tend to be nullified by the larger system D) groups in the organization that control sizable resources often resist change E) even if individuals want to change their behavior, group norms may act as a constraint Individuals are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear and they ignore information that challenges the world they've created. After restructuring, your division has had trouble filling the open positions with appropriate candidates. The selection processes used by human resources have not yet adjusted to the new criteria required for the restructured job positions. This problem is an example of which kind of resistance to change? A) structural inertia B) limited focus of change C) group inertia D) threat to expertise E) threat to established power relationships This is an example of structural inertia. Organizations have built-in mechanisms, such as their selection processes and formalized regulations, to produce stability. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability. Which tactic for overcoming resistance to change basically assumes that the source of resistance lies in misinformation? A) implementing changes fairly B) participation C) education and communication D) coercion E) cooptation and manipulation Communicating the logic of a change can reduce employee resistance on two levels. First, it fights the effects of misinformation and poor communication: if employees receive the full facts and clear up misunderstandings, resistance should subside. Second, communication can help "sell" the need for change by packaging it properly. Which of the following tactics for overcoming resistance to change is most likely to be beneficial when employees' fear and anxiety are high? A) manipulation B) building support and commitment C) participation D) implementing changes fairly E) coercion When employees' fear and anxiety are high, counseling and therapy, new-skills training, or a short paid leave of absence may facilitate adjustment. These are the various ways of building support and commitment. Procedural fairness while implementing changes is especially important when ________. A) the organization is facing intense competition B) the employees have participated in the decision-making process C) the employees perceive the outcome as negative D) the environment in which the business operates is dynamic E) the employees are resisting the change due to group inertia One way organizations can minimize negative impact is to make sure change is implemented fairly. Procedural fairness is especially important when employees perceive an outcome as negative, so it's crucial that employees see the reason for the change and perceive its implementation as consistent and fair. Using covert influence to overcome resistance to change is called ________. A) negotiation B) conciliation C) education D) coercion E) manipulation Manipulation refers to covert influence attempts. Twisting facts to make them more attractive, withholding information, and creating false rumors to get employees to accept change are all examples of manipulation. Management of a company threatens to close a manufacturing plant in the company whose employees are resisting an across-the-board pay cut. But this threat is actually untrue. In this case, which of the following tactics of overcoming resistance to change is being used by the management? A) procedural fairness B) negotiation C) conciliation D) manipulation E) arbitration Manipulation refers to covert influence attempts. Twisting facts to make them more attractive, withholding information, and creating false rumors to get employees to accept change are all examples of manipulation. If individuals resisting change are included in making change decisions in an attempt to gain their support, this approach is called ________. A) cooptation B) exploitation C) arbitration D) coercion E) conciliation Cooptation combines manipulation and participation. It seeks to "buy off" the leaders of a resistance group by giving them a key role, seeking their advice not to find a better solution but to get their endorsement. Which tactic to overcome resistance to change is a relatively inexpensive way to gain the support of adversaries, but may backfire if the targets become aware of the tactic? A) negotiation B) conciliation C) manipulation D) coercion E) arbitration Both manipulation and cooptation are relatively inexpensive ways to gain the support of adversaries, but they can backfire if the targets become aware they are being tricked or used. Once that's discovered, the change agent's credibility may drop to zero. "Buying off" the leaders of a resistance group by giving them a key role and seeking their advice not to find a better solution but to get their endorsement is an example of ________. A) coercion B) cooptation C) procedural fairness D) distributive bargaining E) operant conditioning Cooptation combines manipulation and participation. "Buying off" the leaders of a resistance group by giving them a key role and seeking their advice not to find a better solution but to get their endorsement is an example of cooptation. The application of direct threats or force upon resisters is called ________. A) negotiation B) cooptation C) manipulation D) coercion E) arbitration Coercion is the application of direct threats or force on the resisters. If management really is determined to close a manufacturing plant whose employees don't acquiesce to a pay cut, the company is using coercion. Your company, Johnson Farm Products, has decided to expand its traditional business serving farm owners in order to include home gardeners in its customer base. This change is not met with enthusiasm by the sales personnel who have had good long-term relationships with area farmers. You know that the change will be difficult to implement if you cannot overcome the resistance of the sales personnel and obtain their cooperation. You have brought in the local extension agent to explain demographics and the changing nature of the area in which you live. The method for overcoming resistance that you have chosen is ________. A) education and communication B) participation C) negotiation D) manipulation and cooptation E) coercion