Change Management Exam Question No: 1 (Marks: 1) - Please choose one Which of the following is a process of setting objectives, or goals, and formulating policies, strategies, and procedures to meet them? Planning Organizing Leading Controlling Question No: 2 ( Marks: 1 ) - Please choose one Which of these best describes restraining forces? Unfreezing Negotiation Refreezing Resistance to change Question No: 3 ( Marks: 1 ) - Please choose one Which of the following statement describes logical incrementalism in terms of strategy development? The deliberate development of strategy by experimentation and learning from partial commitments The utilization by top managers of a mixture of formal and informal social and political processes Systematized, step-by-step, chronological procedures to develop or coordinate an organization s strategy Experimentation with side bet ventures and allowing developments to emerge from subsystems Question No: 4 ( Marks: 1 ) - Please choose one Which of the following statements best describe first order change? It is linear and continuous It is discontinuous and radical It threatens the status quo It is multidimensional and multilevel Question No: 5 ( Marks: 1 ) - Please choose one Which of the following is an organizational culture in which teams are formed to solve particular problems? Power culture Role culture Task culture Person culture Question No: 6 ( Marks: 1 ) - Please choose one What is the second stage of Miller & Freisen Model ? Birth Growth Revival Maturity Question No: 7 ( Marks: 1 ) - Please choose one According to Levinthal, when an organization changes some of its core attributes to fit environmental contingency is referred to: Learning Adaptation Selection Retention Question No: 8 ( Marks: 1 ) - Please choose one Sunk cost is a source of which of the following? Structural inertia Natural selection Adaptation Variation Question No: 9 ( Marks: 1 ) - Please choose one Which of the following is an organization that minimizes risk while maximizing the opportunity for profit? Defender Analyzer Prospector Reactor Question No: 10 ( Marks: 1 ) - Please choose one Which of the following is known as an unstable organization? Defender Analyzer Prospector Reactor Question No: 11 ( Marks: 1 ) - Please choose one Identify the state in which a firm reacts to environmental changes and complies with environmental mandates. Stable Unstable Neutral Constant Question No: 12 ( Marks: 1 ) - Please choose one Identify the correct sequence of the key activities in the strategic management process. Analysis, formulation and evaluation Analysis, implementation and evaluation Formulation, implementation and evaluation Formulation, evaluation and implementation Question No: 13 ( Marks: 1 ) - Please choose one Which of the following causes of change is likely to be most easily accepted? A decline in stakeholder demands A decline in performance A change in the business environment A change in management Question No: 14 ( Marks: 1 ) - Please choose one What do we mean by the term 'strategic change'? An important organizational change A proactive management of change to achieve strategic objectives A change that is designed in an orderly and timely fashion in anticipation of future events A change that inevitably results in organizations as they evolve in a changing environment Question No: 15 ( Marks: 1 ) - Please choose one Why is it important to understand the organizational context while thinking about the management of strategic change? Because there is no one right formula for managing strategic change Because it is important to analyze the organizational environment to develop strategies because understanding the timescale of change is important Because it is important to understand the managerial and personal capabilities to manage change Question No: 16 (Marks: 1) - Please choose one Why changes in organizational symbols and routines may be important in managing strategic change? Because symbols and routines can signal strategic change in everyday terms Because symbols and routines can be identified in a cultural web analysis Because symbols and routines are easy to change Because changes in routines and symbols are less time consuming Question No: 17 ( Marks: 1 ) - Please choose one Although strategic change is taken as a long term issue, it may be useful to achieve 'short-term wins'. What does it mean? Completing some tasks quickly to demonstrate success and build confidence in a change programme The organization must complete its change programme quickly The organization must win in the short-term to be successful in the longterm Short-term wins benefit stockholders, customers and suppliers Question No: 18 ( Marks: 1 ) - Please choose one Identify an element of outer context of strategic change? Life cycle of the company Level of perceived trust in the board Commercial requirement of the company Ownership structure of the company Question No: 19 ( Marks: 1 ) - Please choose one Which of the following dimensions of strategic change is related to why of change according to Pettigrew? Content Context Procedure Process Question No: 20 ( Marks: 1 ) - Please choose one Which of the following best describes strategic organizational change? It is flexible strategic planning process It is static strategic planning process It makes planning difficult It is a mechanistic approach Ref: The Strategic Organizational Change (SOC) will be referred to as a flexible strategic planning process as opposed to a static form of strategic planning. Question No: 21 ( Marks: 1 ) - Please choose one Change can be originated from within an organization. Which of the following refers to this statement? New corporate leadership Political conditions of a country Global technological advancement New government policy Question No: 22 (Marks: 1) - Please choose one In the words of technology, software refers to which of the following? Machinery Equipments Knowledge None of the given options Question No: 23 ( Marks: 1 ) - Please choose one Which of the following strategies is concerned with how a firm will compete in a particular business? Corporate strategy Business strategy Functional strategy Process strategy Question No: 24 ( Marks: 1 ) - Please choose one Identify a systematic variable which hampers execution of strategic change? Too many hierarchical levels Overly narrow span of control Responsibility without authority Oppressive control systems Question No: 25 ( Marks: 1 ) - Please choose one Identify a systematic variable which hampers execution of strategic change? Overly rigid formal planning system Too many hierarchical levels Overly narrow span of control Responsibility without authority Question No: 26 ( Marks: 1 ) - Please choose one Identify a structural variable which hampers execution of strategic change? Top down management system Overly rigid formal planning system Inflexible budgeting system Oppressive control system Question No: 27 ( Marks: 1 ) - Please choose one Which of the following is a disadvantage of narrow span of control? Close control Close supervision Superiors tend to get too involved in subordinates work Fast communication between subordinates and superiors Question No: 28 ( Marks: 1 ) - Please choose one The creation of narrow and stable domain refers to: Defender s entrepreneurial problem Prospector s entrepreneurial problem Analyzer s entrepreneurial problem Reactor s entrepreneurial problem Question No: 29 ( Marks: 1 ) - Please choose one Identify the term which refers to the particular areas of transformation under examination? Content Context Procedure Process Question No: 30 (Marks: 1 ) - Please choose one In order to become not only a functional specialist but also a generalist (cross-functionalist), managers must learn: Managerial skills Statistical skills Multi-disciplinary skills Supervisory skills Question No: 31 ( Marks: 1 ) - Please choose one Which of the following focuses on the planned and controlled change of organizations in the desired directions? Organizational Development Model Kurt Lewin Model Unilateral Approach Revenue Centric Approach Question No: 32 ( Marks: 1 ) - Please choose one Which of the following is Not included in Bullock and Batten four-phase model of planned change? Exploration Planning Action Organizing Question No: 33 ( Marks: 1 ) - Please choose one How many categories of change are introduced by Leavitt? One Two Three Four Question No: 34 ( Marks: 1 ) - Please choose one According to Lawrence, which of the following approach is unilateral? Social Technical Procedural Structural Question No: 35 ( Marks: 1 ) - Please choose one Identify the feature of incremental change. It is based on periodic learning It is relevant at upper level of organization It is long-term based It is continuous Question No: 36 ( Marks: 1 ) - Please choose one Complacency concept refers to: Interpretation of things on self reference basis Favoritism or protection of individuals Short term view of individuals Satisfying behavior of individuals Question No: 37 ( Marks: 1 ) - Please choose one Identify the leading proponents of 'Organizational ecology model'. Hannan and Freeman Weber and Taylor Schein and Quinn Mintzberg and Fayol Question No: 38 ( Marks: 1 ) - Please choose one Which of the following is NOT a characteristic of the period of direction phase? Incentives, budgets and work standards are adopted Accounting systems for inventory and purchase are introduced Communication is frequent and informal within organization Communication becomes more formal and impersonal Question No: 39 ( Marks: 1 ) - Please choose one Application of standard operating procedures refers to: Rule following Problem solving Decision making Learning process Question No: 40 ( Marks: 1 ) - Please choose one Which one of the following strategies refers to slow, gradual and incremental type of change in terms of strategic management? Internal development External development Revolutionary development Radical development The internal development strategy, in its traits is slow, gradual, equity based where one’s own organ culture is considered very sacred as against the external development strategy which exhibits the characteristics of being fast, structural and high growth oriented. Internal refers to slow, gradualism or incrementalist or evolutionary view and the other refer to revolutionary types of change. Question No: 41 ( Marks: 1 ) - Please choose one Which of the following acts as change agent according to MOUND model of change management? Upper level manager Middle level manager Lower level manager First line manager Question No: 42 ( Marks: 1 ) - Please choose one Which of the following can be changed with the help of organization s reward system according to "Kerr and Slocum"? Organizational culture Organizational management Organizational structure Organizational hierarchy Question No: 43 ( Marks: 3 ) What is an Analyzer ? Question No: 44 ( Marks: 3 ) Distinguish between incremental and discontinuous innovations. It should have a clear rationale and should be done in conjunction with other parallel changes such as process change and cultural Question No: 45 ( Marks: 3 ) Briefly discuss the importance of shared values in organizational change. change. Sometimes restructuring takes place due to some other events such as a new boss arriving, a process or product failure, an Question No: 46 ( Marks: 5 ) argument, Explain the term sticking to one s knitting . a dissatisfied client or an underperforming person or department. In these cases it is sometimes difficult for Question No: 47 ( Marks: 5 ) employees to prepare themselves for a Discuss the situations in which participative change approach is more effective? situation when changes in structure seem to be a knee-jerk reaction, which lacks direction, appears cosmetic and fail to lead any real Question No: 48 ( Marks: 10 ) improvement. Discuss the organizational and managerial means used by the defender to The solve adaptive problems? restructuring process can create considerable turbulence within organization, its managers and its staff. Changes that are Question No: 49 ( Marks: 10 ) introduced in an organizational restructuring The degree to which management sets goals and strategies to change theaffects the socio-psychological well-being of organization is contingent upon the success of organization s historical organization members given the potential for goal setting process in implementing changes. Discuss what factors uncertainty that may accompany such influence goal setting process in an organization. changes. There is a need to better understand Question 10 Marks the consequences of organizational restructuring and consider some of its potential side effects on the work environment. Employees in a post“Restructuring as a theme for change can be considered a bit strange because it restructuring context are understandably may not be meaningful as a key strategic objective”. Comment on this statement. wary about the future direction of the organization and their roles within it. There are some risks attached to the restructuring Solution: process. Whenever any organization moves from one structure to another, it experiences different kinds of risks (like failure risk). In order to minimize risks, management should The purpose of restructuring is to align the organization to better achieve itsconsider restructuring as a last option rather strategy. Restructuring should only take place as a result of a change in strategy.than a first option. However if restructuring becomes the solution to variety of organizational issues, management needs torepresent abrupt shifts in the organization’s describe rationale behind it, how it links to the strategy, how it will work instructure, culture, and processes. If successful, the shifts enable the organization practice, how it differs from what went before, how it is better than what went to experience another long period of smooth before and what will be its benefits. functioning until the next disruption signals the need for drastic change. Question 10 Marks These studies of organization evolution and revolution point to the benefit of implementing transformational change as rapidly as possible. The faster the Transformational change involves reshaping the organization’s culture and designorganization can respond to disruptions, the elements. How can studies of evolution and revolution help in implementingquicker it can attain the benefit of operating transformational change? in a new way. Rapid change enables the organization to reach a period of smooth growth and functioning sooner, thus providing it with a competitive advantage Solution: over those firms that change more slowly. Transformational changes can be characterized as systematic and revolutionary because the entire nature of the organization is altered fundamentally. Typically driven by senior executives, change may occur rapidly so that it does not get mired in politics, individual resistance, and other forms of organizational inertia. This is particularly pertinent to changing the different features of the organization, such as structure, information systems, human resources practices, and work design. These features tend to reinforce one another, thus making it difficult to change them in a piecemeal manner. They need to be changed together and in a coordinated fashion so that they can mutually support each other and the new cultural values and assumptions. Transformational change, however, is distinguished from other types of strategic change by its attention to the people side of the organization. For a change to be labeled transformational, a majority of individuals in an organization must change their behavior. Long-term studies of organizational evolution underscore the revolutionary nature of the transformational change. They suggest that organizations typically move through relatively long periods of smooth growth and operations. These periods of convergence or evolution are characterized by incremental changes. At times, however, most organizations experience severe external or internal disruptions that render existing organizational arrangements ineffective. Successful firms respond to these threats to survival by transforming themselves to fit the new conditions. These periods of total system and quantum changes Mark True or False. 6) A change agent is the facilitator of the change. 5 Marks 7) Periods of substantial turmoil in organization life are known as evolutionary phase. 8) Organizational ecology theories are based on Darwinian 5 Marks evolutionary models. 9) Selection refers to organizational efforts to respond to changing environmental circumstances. 10) According to Hannan & Freeman “most organizations have structural inertia that hinders adaptation when the environment changes”. Make an appropriate choice 1) Which of the following theories of change posit that individuals and organizations exist in a pluralistic world filled with conflicting interests, ideas, and values? A. Life cycle B. Teleological C. Dialectical D. Evolutionary 2) Which of the following is a dimension of organization structure? A. Departmentalization B. Span of control C. Hierarchy layer D. All of the given options 3) Which of the following is Not included in McKinsey 7 S framework? A. Strategy B. Structure C. System D. Safety 4) Which of the following areas is Not one of the four key areas that strategic change seeks to influence? A. People B. Technology C. Formal organization structures D. Informal organization structures 5) In psychology the observation that people often do (or believe) things because many other people do (or believe) the same is called _____________. A. Band wagon effect B. Benchmarking C. Fashion D. Trend Mark True or False. 5 Marks 6) According to “Dialectical theory” human actions are purposive. 7) “Decision making” is a part of planning activity. 5 Marks 8) In an organization, employees are the recipient of change plan. 9) “ISO certification” is a part of teleological approach to change management. 10) Dialectical process is identified as Thesis, Antithesis and Synthesis. Make an appropriate choice 1) In circumstances of incremental change, strategic change is likely to be more successful if: A. It is imposed B. It is owned by the senior manager C. It is internalized and owned by those who will implement it D. It is facilitated by management consultants 2) 'Logical incrementalism' can be described as: A. Careful design and planning B. Emergent C. Cautious resource allocation D. Top management rational analysis 3) Organizations that are good at developing relevant capabilities to respond to a changing context are known as: A. Knowing organizations B. Stretch organizations C. Learning organizations D. None of the given options 4) Which of the following contexts would most suit a transformational leader? A. An organization that is in trouble B. An organization that is performing well C. An organization in a stable environment D. An organization in a mature industry 5) Theorists have identified two main styles of leadership. These are transformational leadership and: A. Transgression leadership B. Transactional leadership C. Transparent leadership D. Transcendental leadership