Change And The Management Of Change

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Questions and Answers
  • 1. 

    Drivers for change come from both the internal and _______________ environment.

    • A.

      External

    • B.

      Foreign

    • C.

      International

    • D.

      Local

    • E.

      National

    Correct Answer
    A. External
    Explanation
    The question asks for the drivers for change, which can come from both the internal and external environment. The word "external" is the correct answer as it refers to factors outside of the organization that can influence change, such as economic conditions, technological advancements, competition, and government regulations.

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  • 2. 

    Effective managers understand that change in the strategic environment is a ______________ process.

    • A.

      Slow

    • B.

      Fast

    • C.

      Continuous

    • D.

      Time consuming

    • E.

      Boring

    Correct Answer
    C. Continuous
    Explanation
    Effective managers understand that change in the strategic environment is a continuous process. This means that change is ongoing and never-ending, requiring managers to constantly adapt and adjust their strategies. It also implies that change is not sudden or abrupt, but rather occurs gradually over time. Understanding this concept allows managers to proactively anticipate and respond to changes in the business environment, ensuring the organization remains competitive and successful.

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  • 3. 

    Which of the following is not an external driver of change?

    • A.

      Globalization and economic trends

    • B.

      Demographic changes

    • C.

      Social and cultural changes

    • D.

      Competition

    • E.

      A change in the senior management of the company.

    Correct Answer
    E. A change in the senior management of the company.
    Explanation
    A change in the senior management of a company is not considered an external driver of change because it is an internal factor that is within the control of the organization. External drivers of change refer to factors that are beyond the control of the organization, such as globalization and economic trends, demographic changes, social and cultural changes, and competition. These external drivers can have a significant impact on the organization and may require the company to adapt and change its strategies accordingly. However, a change in senior management is a decision made by the company itself and is not influenced by external factors.

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  • 4. 

    Globalization means that companies can benefit from:

    • A.

      Richer consumers

    • B.

      Less political risk

    • C.

      Economies of scale

    • D.

      Diseconomies of scale

    • E.

      Options a, b and c.

    Correct Answer
    C. Economies of scale
    Explanation
    Globalization allows companies to benefit from economies of scale. This means that as companies expand their operations globally, they can produce and sell larger quantities of goods or services, leading to lower production costs per unit. This can result in increased profitability and competitiveness. Additionally, economies of scale enable companies to invest in advanced technology and infrastructure, access a larger pool of skilled labor, and negotiate better deals with suppliers. Overall, economies of scale are a significant advantage for companies in a globalized market.

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  • 5. 

    Which of the following is an example of an emerging economy?

    • A.

      Australia

    • B.

      Greece

    • C.

      Singapore

    • D.

      India

    • E.

      Options c & d.

    Correct Answer
    D. India
    Explanation
    India is an example of an emerging economy because it is currently experiencing rapid economic growth and development. It has a large and growing middle class, a young and dynamic workforce, and is attracting significant foreign investment. India has also implemented economic reforms and policies to promote entrepreneurship and innovation, further contributing to its emergence as a global economic power.

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  • 6. 

    MNCS are faced with a wider range of __________ issues including differences in the skills,attitudes and needs of their workforces worldwide.

    • A.

      HR

    • B.

      PR

    • C.

      Marketing

    • D.

      Operational

    • E.

      Financial

    Correct Answer
    A. HR
    Explanation
    Multinational corporations (MNCs) operate in multiple countries and therefore face various challenges related to managing their workforce globally. HR (Human Resources) is responsible for dealing with issues such as differences in skills, attitudes, and needs of employees across different countries. This includes recruiting and training employees with diverse backgrounds, ensuring compliance with local labor laws, and implementing policies that promote cultural diversity and inclusion. HR plays a crucial role in addressing these challenges and ensuring that the workforce is effectively managed in a global context.

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  • 7. 

    The challenge of expansion has intensified as more business functions are _____________ often overseas.

    • A.

      Sold

    • B.

      Delivered

    • C.

      Outsourced

    • D.

      Taken

    • E.

      Destroyed

    Correct Answer
    C. Outsourced
    Explanation
    The correct answer is "outsourced". The sentence suggests that as more business functions are being done overseas, the challenge of expansion has become more intense. This implies that the company is outsourcing its business functions to other countries, which is a common practice to reduce costs and increase efficiency.

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  • 8. 

    The introduction of new technologies has allowed increasing _________________ and downsizing with power shifting from the centre to the local or regional office.

    • A.

      Profits

    • B.

      Market share

    • C.

      Turnover

    • D.

      Costs

    • E.

      Decentralization

    Correct Answer
    E. Decentralization
    Explanation
    The introduction of new technologies has facilitated decentralization, enabling power to shift from the central office to local or regional offices. This means that decision-making and control are dispersed across different levels of the organization, allowing for greater autonomy and flexibility. Decentralization can lead to more efficient operations, improved responsiveness to local needs, and increased employee motivation and engagement.

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  • 9. 

    Most developed countries are facing an ____________ population which may cause skillshortages.

    • A.

      Ageing

    • B.

      Increasing

    Correct Answer
    A. Ageing
    Explanation
    The correct answer is "ageing". Most developed countries are facing an ageing population, meaning that the proportion of elderly people is increasing compared to younger generations. This demographic shift can lead to skill shortages as the older population retires and there are not enough younger workers to fill the gaps.

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  • 10. 

    What changes affect consumption patterns and purchase behaviour?

    • A.

      Cultural

    • B.

      Social

    • C.

      Demographic

    • D.

      Weather

    • E.

      Political

    Correct Answer
    C. Demographic
    Explanation
    Demographic changes refer to shifts in the characteristics of a population, such as age, gender, income, and education level. These changes can have a significant impact on consumption patterns and purchase behavior. For example, an aging population may lead to increased demand for healthcare products and services, while a growing middle class may result in higher spending on luxury goods. Demographic changes can also influence preferences and attitudes towards certain products or brands. Therefore, it is reasonable to conclude that demographic changes affect consumption patterns and purchase behavior.

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  • 11. 

    Changes in the ___________ cycle will have significant effects on business activity.

    • A.

      Environmental

    • B.

      Economic

    • C.

      Consumer

    • D.

      Political

    • E.

      Demographic

    Correct Answer
    B. Economic
    Explanation
    Changes in the economic cycle, which refers to the fluctuations in economic activity such as periods of growth and recession, will have significant effects on business activity. Economic changes, such as changes in interest rates, inflation, unemployment rates, and consumer spending, can greatly impact businesses. For example, during a recession, businesses may experience decreased demand for their products or services, leading to lower sales and potential layoffs. Conversely, during a period of economic growth, businesses may see increased demand and expansion opportunities. Therefore, changes in the economic cycle have a direct influence on business activity.

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  • 12. 

    Which of the following is not an internal factor driving change?

    • A.

      Changes in human resources and skill levels

    • B.

      New management approaches

    • C.

      New product development

    • D.

      Changes in employee expectations

    • E.

      Changes in local government elections

    Correct Answer
    E. Changes in local government elections
    Explanation
    Changes in local government elections are not an internal factor driving change because they are external to the organization. Internal factors refer to aspects within the organization that can influence change, such as changes in human resources and skill levels, new management approaches, new product development, and changes in employee expectations. Local government elections are outside the control and influence of the organization, making them an external factor.

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  • 13. 

    The main reason(s) why workers might move between jobs more quickly could include:

    • A.

      Few organizationas reward loyalty.

    • B.

      To take advantage of better pay and conditions elsewhere

    • C.

      To escape workplace discrimination

    • D.

      Options a & b.

    Correct Answer
    D. Options a & b.
    Explanation
    Workers might move between jobs more quickly due to a lack of loyalty rewards from organizations and the desire to take advantage of better pay and conditions elsewhere. Loyalty is not always valued by organizations, leading workers to seek better opportunities elsewhere. Additionally, better pay and conditions in other workplaces can be a strong incentive for workers to switch jobs. Therefore, the main reasons for workers moving between jobs more quickly could be options a and b.

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  • 14. 

    In economic boom periods, the bargaining position of skilled employees is:

    • A.

      Stronger

    • B.

      Weaker

    • C.

      Unchanged

    Correct Answer
    A. Stronger
    Explanation
    During economic boom periods, the demand for skilled employees tends to increase as businesses expand and invest in growth. This creates a shortage of skilled workers, giving them more leverage in negotiations with employers. With a limited supply of skilled labor, employees can demand higher wages, better benefits, and improved working conditions. Therefore, the bargaining position of skilled employees becomes stronger during economic boom periods.

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  • 15. 

    Why might workers resist change?

    • A.

      Change could involve higher workloads

    • B.

      Change could involve relocation

    • C.

      Change could involve the breaking up of working groups

    • D.

      Change could involve redundancy

    • E.

      All of the above.

    Correct Answer
    E. All of the above.
    Explanation
    Workers might resist change because it could involve higher workloads, which can lead to increased stress and burnout. Additionally, change that involves relocation can disrupt an individual's personal life and cause them to feel unsettled. The breaking up of working groups can result in the loss of established relationships and support networks, leading to feelings of isolation. Lastly, change that involves redundancy can create job insecurity and fear of unemployment. Therefore, all of these reasons can contribute to workers resisting change.

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  • 16. 

    Who developed the force field change model?

    • A.

      Kurt Luis

    • B.

      Kurt Lewin

    • C.

      Kent Lewin

    Correct Answer
    B. Kurt Lewin
    Explanation
    Kurt Lewin developed the force field change model.

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  • 17. 

    The  principle of force field analysis is that at any given time a problem situation may exist, because _______________ forces are keeping it that way

    • A.

      Supporting

    • B.

      Complementary

    • C.

      Counterbalancing

    Correct Answer
    C. Counterbalancing
    Explanation
    The principle of force field analysis suggests that a problem situation may persist because counterbalancing forces are keeping it that way. These counterbalancing forces work against any efforts to change or resolve the problem, creating a balance that maintains the status quo. By identifying and understanding these counterbalancing forces, one can develop strategies to overcome them and create positive change.

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  • 18. 

    Kurt Lewin identified two different forces.  They are:

    • A.

      Driving forces for change and restraining forces for change

    • B.

      Driving forces for stability and restraining forces for change

    • C.

      Driving forces for change and restraining forces for the status quo

    Correct Answer
    A. Driving forces for change and restraining forces for change
    Explanation
    Kurt Lewin identified two different forces in the context of change: driving forces for change and restraining forces for change. Driving forces are factors that push for change and encourage movement towards a new state or goal. On the other hand, restraining forces are factors that hinder or resist change, maintaining the status quo. These two forces interact and determine the overall outcome of change efforts.

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  • 19. 

    Which of the following is an example of a driving force for change?

    • A.

      Cash flow crisis

    • B.

      Apathy

    • C.

      Poor motivation

    Correct Answer
    A. Cash flow crisis
    Explanation
    A cash flow crisis can be seen as a driving force for change because it creates a sense of urgency and necessitates immediate action. When a company is facing a cash flow crisis, it is forced to evaluate its financial situation, identify the root causes of the crisis, and make necessary adjustments to improve its cash flow. This may involve implementing cost-cutting measures, seeking additional funding, or restructuring the business. Ultimately, the cash flow crisis serves as a catalyst for change and prompts the organization to take proactive steps to address its financial challenges.

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  • 20. 

    According to Kurt Lewin, forces refers to the broad range of ___________ and externalinfluences at a particular time.

    • A.

      Local

    • B.

      Internal

    • C.

      Foreign

    Correct Answer
    B. Internal
    Explanation
    According to Kurt Lewin, forces refer to the broad range of internal and external influences at a particular time. This means that the forces can come from within an individual or organization, such as beliefs, values, and attitudes, as well as from external factors like societal norms, economic conditions, and political influences. These forces shape behavior and decision-making processes, and understanding them is crucial for understanding and managing change effectively.

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  • 21. 

    When is equilibrium achieved according to force field analysis?

    • A.

      When the sum of the driving forces equals the sum of the restraining forces.

    • B.

      When the driving forces are greater than the restraining forces.

    • C.

      When the restraining forces are greater than the driving forces.

    Correct Answer
    A. When the sum of the driving forces equals the sum of the restraining forces.
    Explanation
    Equilibrium is achieved according to force field analysis when the sum of the driving forces equals the sum of the restraining forces. This means that there is a balance between the forces that push for change (driving forces) and the forces that resist change (restraining forces). When these two forces are equal, there is no net force acting on the system, resulting in a state of equilibrium. This concept is commonly used in organizational change management to understand and analyze the factors that influence change within a system.

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  • 22. 

    Force field analysis is specialized method of weighing:

    • A.

      Up the best answer

    • B.

      Up the opinion of workers and managers

    • C.

      Pros and cons

    Correct Answer
    C. Pros and cons
    Explanation
    Force field analysis is a specialized method of weighing the pros and cons. It involves examining the forces that drive a particular situation or decision, both positive and negative. By identifying and evaluating these forces, individuals or teams can gain a better understanding of the potential benefits and drawbacks of a course of action. This analysis helps in making informed decisions by considering all the factors that may impact the outcome.

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  • 23. 

    What does a line represent in force field analysis?

    • A.

      The opinion of each worker

    • B.

      The opinion of each manager

    • C.

      Each change force

    Correct Answer
    C. Each change force
    Explanation
    A line in force field analysis represents each change force. Force field analysis is a technique used to analyze the forces that support or oppose a proposed change. The line is drawn to represent the various factors or forces that contribute to the change, both driving forces that push for the change and restraining forces that resist the change. By visually representing these forces, it helps in understanding the dynamics of change and identifying strategies to overcome resistance and facilitate successful implementation.

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  • 24. 

    The longer the line in force field analysis, the more ________________ the force is.

    • A.

      Indepth

    • B.

      Important

    • C.

      Critical

    Correct Answer
    B. Important
    Explanation
    The longer the line in force field analysis, the more important the force is. This means that the force has a significant impact and plays a crucial role in determining the outcome or success of a situation. The length of the line represents the strength or magnitude of the force, and the longer it is, the more significant and influential it becomes. Therefore, the correct answer is "important".

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  • 25. 

    One purpose of force field analysis is to:

    • A.

      Investigate the balance of power invovled in an issue

    • B.

      Identify the key individuals affected by the change.

    • C.

      Identify supporters and opponents of change.

    • D.

      All of the above.

    Correct Answer
    D. All of the above.
    Explanation
    Force field analysis is a technique used to analyze the forces that are driving and restraining change in a particular situation. By conducting this analysis, one can investigate the balance of power involved in an issue, identify the key individuals who will be affected by the change, and also identify the supporters and opponents of the change. Therefore, the correct answer is "all of the above" as force field analysis serves all these purposes.

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  • 26. 

    _______________ leadership that attempts to force through change may lower motivation in the future.

    • A.

      Democratic

    • B.

      Autocratic

    • C.

      Benevolent

    Correct Answer
    B. Autocratic
    Explanation
    Autocratic leadership refers to a style where the leader has complete control over decision-making and does not involve others in the process. This type of leadership often relies on force and coercion to implement changes. While it may be effective in the short term, it can have negative consequences in the long run. By not considering the opinions and input of others, autocratic leadership can lead to demotivation and decreased morale among team members. This is because individuals may feel undervalued and disengaged, resulting in lower motivation levels in the future.

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  • 27. 

    _____________ research is important in identifying changing trends.

    • A.

      Technology

    • B.

      Market

    • C.

      Social

    Correct Answer
    B. Market
    Explanation
    Market research is important in identifying changing trends because it helps businesses understand the preferences, needs, and behaviors of their target market. By conducting market research, businesses can gather data on consumer trends, competitor strategies, and market dynamics. This information allows them to make informed decisions, adapt their products or services to meet changing demands, and stay ahead of the competition. Additionally, market research helps businesses identify emerging trends, consumer preferences, and shifts in market demand, enabling them to capitalize on new opportunities and stay relevant in a rapidly evolving market.

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  • 28. 

    An increasing focus on ____________ may improve competitive advantage

    • A.

      Quality

    • B.

      Safety

    • C.

      Staff vacations

    Correct Answer
    A. Quality
    Explanation
    An increasing focus on quality may improve competitive advantage because it ensures that the products or services offered by a company meet or exceed customer expectations. By consistently delivering high-quality products, a company can differentiate itself from competitors and build a strong reputation for reliability and customer satisfaction. This can lead to increased customer loyalty, repeat business, and positive word-of-mouth recommendations, ultimately giving the company a competitive edge in the market.

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  • 29. 

    In recent time product life cycles are starting to become: ____________.

    • A.

      Shorter

    • B.

      Longer

    • C.

      More advanced

    • D.

      Outdated

    Correct Answer
    A. Shorter
    Explanation
    The correct answer is "shorter" because the sentence suggests that product life cycles are starting to become something, and out of the given options, "shorter" is the only one that can complete the sentence in a logical manner. It implies that products are now being replaced or updated more frequently, leading to shorter life cycles.

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  • 30. 

    Change that is __________________ is desired by management

    • A.

      Unanticipated

    • B.

      Abrupt

    • C.

      Slow

    • D.

      Anticipated

    Correct Answer
    D. Anticipated
    Explanation
    The word "anticipated" means something that is expected or foreseen. In this context, if a change is anticipated, it means that the management has already planned or predicted it. This suggests that the management desires a change that they are aware of and have prepared for, rather than a change that is sudden or unexpected (abrupt) or happening at a slow pace. Therefore, "anticipated" is the desired change by the management.

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  • 31. 

    Planning in a broad sense is better than a __________________ plan

    • A.

      Long term

    • B.

      Short term

    • C.

      Meticulous

    Correct Answer
    C. Meticulous
    Explanation
    In the context of planning, being meticulous refers to paying careful attention to detail and being thorough in the process. This is considered better than a long-term or short-term plan because a meticulous plan takes into account all the necessary factors, considers potential obstacles, and allows for more effective decision-making. It ensures that all aspects of the plan are well thought out and executed, ultimately leading to better results and success.

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  • 32. 

    Giving more power to managers at the________________ level may assist with the change process.

    • A.

      Top

    • B.

      Local

    • C.

      National

    • D.

      International

    Correct Answer
    B. Local
    Explanation
    Giving more power to managers at the local level may assist with the change process because they are closer to the day-to-day operations and have a better understanding of the specific challenges and dynamics within their local context. Local managers can effectively implement and monitor the changes, tailor them to the specific needs of their teams or departments, and address any resistance or obstacles that may arise. This localized approach allows for a more targeted and responsive change management strategy, leading to a higher likelihood of successful implementation and adoption of the desired changes.

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  • 33. 

    Change must be realistic, achieveable and ________________

    • A.

      Popular

    • B.

      Measurable

    • C.

      Supported by all employees

    • D.

      Supported by managers

    • E.

      All of the above.

    Correct Answer
    B. Measurable
    Explanation
    The correct answer is "measurable" because in order for a change to be effective, it must be possible to track and evaluate its progress. Measurable goals and objectives provide a clear way to determine whether the desired outcomes have been achieved. Without the ability to measure the change, it would be difficult to assess its success or make any necessary adjustments.

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  • 34. 

    The first step in John Kotters eight step model is:

    • A.

      Increase urgency

    • B.

      Build the guiding team

    • C.

      Get the vision right

    • D.

      Don't let up

    Correct Answer
    A. Increase urgency
    Explanation
    The first step in John Kotter's eight-step model is to increase urgency. This step is crucial because it helps create a sense of urgency and motivation within the organization. By highlighting the need for change and the potential consequences of not taking action, leaders can mobilize employees and stakeholders to support the change initiative. Increasing urgency sets the stage for the rest of the model, as it helps overcome complacency and resistance to change, making it easier to build a guiding team, establish a clear vision, and sustain momentum throughout the change process.

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  • 35. 

    The last step in John Kotters change model is:

    • A.

      Communicate for buy-in

    • B.

      Make change stick

    • C.

      Empower action

    Correct Answer
    B. Make change stick
    Explanation
    The last step in John Kotter's change model is to "make change stick." This refers to the importance of ensuring that the changes implemented as part of the change initiative are sustained over time. It involves embedding the new behaviors, processes, or systems into the organizational culture and ensuring that they become the new norm. This step focuses on reinforcing the change, monitoring progress, and making adjustments as necessary to ensure long-term success and sustainability of the change effort.

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