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MCQs on Organizational change – Leading and managing change

In order to respond effectively to opportunities and threats, the organisation may need to make changes to its current products, markets or processes.

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MCQs on Organizational change

In order to respond effectively to opportunities and threats, the organisation may need to make changes to its current products, markets or processes. Here on MCQs.CLUB we have written easy and understandable Multiple-Choice Questions (MCQs) on organizational change that fully cover Practice Test Questions on What is organizational change? Definition and examples, meaning, types, levels, organizational change management, organizational change management and implementing change in an organization with change management strategies, process of organisational change, these also cover MCQs on change management culture. These mcq on organizational change with answers is a complete guide to organizational change and are also useful for business management exams, competitive exams and business management exams.

In order to respond effectively to opportunities and threats, the organisation may need to make changes to its current products, markets or processes. The environment can act as a trigger for change in organisations.

1. True
2. False

The exact triggers for change will depend on the context of an organisation and its industry. Identify from the following that could act as change triggers:

1. Arrival of new entrants into the market, or mergers/acquisitions between existing competitors in the industry.
2. Changes in level or intensity of competition (prompting a need to gain or protect market share).
3. New laws or regulations affecting an industry; or changes in government legislation more generally.
4. All of the above

One useful way of prioritising change triggers – and strategic uncertainties more generally – is in relation to their impact and immediacy. The impact (importance) of a strategic uncertainty is related to:

1. The extent to which it involves trends or events that will impact the organization
2. The importance to the organisation of the business units or products affected by the uncertainty/trigger
3. The number of business units or products potentially affected by the uncertainty; i.e. the scale of the impact on the organization
4. All of the above

Which of the following is correct?

1. Once it has identified the opportunities and threats present in its environment, an organisation has to decide how to respond to them, and which of them need to be given the highest priority.
2. The organisation’s response to opportunities and threats could then act as trigger for organisational change.
3. Both A&B
4. None

It is very hard to ignore the impact of change on contemporary businesses. Implementing and managing change is often an integral part of strategy implementation.

1. True
2. False

Change management can be defined as ‘the continuous process of aligning an organisation with its marketplace and doing it more responsively and effectively than competitors’.

1. True
2. False

For an organisation to respond to the need for change, it needs a way of planning for, and implementing changes. Organisations may need to make strategic changes for lots of different reasons. For example:

1. Dealing with changes in the global economy and global markets
2. Allowing an organisation to grow, either organically or through mergers or acquisition
3. Restructuring or reorganising the business
4. Implementing new technologies and business processes
5. All of the above

Change processes usually begin with a change ‘trigger’ which can either be external to the organisation or can be internal.

1. True
2. False

External Triggers for organization change include:

1. Changes in the economic cycle (for example, an economic downturn)
2. New laws or regulations affecting the industry
3. Stiffer competition from rivals or from new entrants
4. All of the above

Internal Triggers for organization change include:

1. A new organisation structure which prompts changes to job responsibilities
2. Implementation of new technologies or working practices
3. Relocation of the business to different city or country
4. All of the above

Which of the following is correct?

1. Internally generated change is likely to be managed more proactively, creatively and effectively than externally generated change.
2. For internal change the organisation can control the nature and timing of the change in a way it cannot do when it has to react to external triggers.
3. Both A&B
4. None

Which of the following is correct?

1. A consequence of the delegation and discretion allowed to local managers is that senior management at the top of the firm begin to feel a loss of control – a crisis of control.
2. A successful escape from the crisis of red tape results in a growth of ‘interpersonal collaboration’.
3. Both A&B
4. None

Changes may be required to help an organisation overcome a decline in performance. There are a number of factors which may contribute to organisational decline such as:

1. High cost structures, leading to a decline in competitiveness compared with rivals.
2. Overtrading, leading to excess pressure on the organisation’s cash flow.
3. Too much diversification, causing a business to move away from, and neglect, its core business.
4. All of the above

Change can occur at the different levels within an organization such as:

1. Individuals (involves changing their skills, values, attitudes and behaviours)
2. Structures and systems (involve changing the formal and informal organisational structures in place)
3. Organisational climate (involves changing the way people relate to each other in an organisation)
4. All of the above

Successful change management requires more than simply recognising a change trigger and acting on it. Successful exploitation of a change situation requires:

1. Knowledge of the circumstances surrounding a situation
2. Understanding of the interactions in that situation
3. Awareness of the potential impact of the variables associated with the situation
4. All of the above

A framework for change might be:

- Recognition – Identify the problem that needs to be rectified
- Diagnosis – Break down the problem into component parts
- Solution – Analyse possible alternatives, select preferred solution and apply preferred solution

1. The above formula is correct
2. The above formula is incorrect

According to Lewin steps in organisational change are:

1. unfreeze
2. change (or move)
3. freeze or refreeze
4. All of the above

Which of the following is correct for “Unfreeze” stage of change?

1. The unfreeze stage involves making people within an organisation ready to change, making them aware of the need (trigger) for change, and creating a readiness to change among the workforce.
2. A key part of this stage is weakening the restraining forces that are resisting change, and strengthening the driving forces that are promoting change.
3. Both A&B
4. None

Approaches to the unfreeze stage include:

1. Physically removing individuals from their accustomed routines, sources of information and social relationships.
2. Consulting team members about proposed changes.
3. Confronting team members’ perceptions and emotions about change. Failure to recognise and deal with emotions only leads to later problems.
4. All of the above

Which of the following is correct for “Change (or ‘move’)” stage of change?

1. The change (or ‘move’) stage involves learning new concepts and new meanings for existing concepts.
2. It is important that an organisation encourages the participation and involvement of its staff in this phase so that they do not feel alienated by the change process.
3. The change (or ‘move’) stage involves learning new concepts and new meanings for existing concepts. This is the transition stage, by which an organisation moves from its current state to its future state.
4. All of the above

Change (or ‘move’) stage is facilitated by:

1. Identification – encouraging individuals to identify with role models from whom they can learn new behaviour patterns.
2. Internalisation – placing individuals in a situation in which new behaviours are required for success, so that they have to develop coping behaviours.
3. Both A&B
4. None

The refreeze stage involves internalising new concepts and meanings. It focuses on stabilising (refreezing) the new state of affairs, by setting policies to embed new behaviours, and establishing new standards.

1. The above statement is correct
2. The above statement is incorrect

Bullock and Batten’s ‘steps’ to changing an organization include:

1. Exploration – Verifying the need for change, and acquiring any resources for the change to go ahead
2. Planning – The planning step involves key decision makers and technical experts. A diagnosis of the current position is completed, and actions are arranged into a change plan.
3. Action – Actions are completed according to the plan, with feedback mechanisms which allow some replanning if activities go off track or get behind schedule.
4. Integration – The integration phase starts once the action stage has been completed. Integration involves aligning the changes which have been made with other areas of an organisation and formalising the changes.
5. All of the above

Which of the following is correct for Beer and Nohria – Theory E?

1. Theory E starts from the premise that the purpose of change is to increase economic value, often expressed as shareholder value.
2. Theory E changes are planned and programmatic, and usually involve the use of economic incentives, drastic layoffs, downsizing and restructuring.
3. Both A&B
4. None

Which of the following is correct for Beer and Nohria – Theory O?

1. Theory O is concerned with developing an organisation’s human capability to implement strategy, and to develop corporate culture through organisational learning.
2. Change is emergent rather than planned and programmatic, with an emphasis on feedback and reflection.
3. Both A&B
4. None

Force field analysis assists change management by examining and evaluating – in a summary form – the forces ‘for’ and ‘against’ the change.

1. True
2. False

The practical route to applying the force field analysis idea to:

1. Define the problem in terms of the current situation and the desired future state.
2. List the forces supporting and opposing the desired change and assess both the strength and the importance of each one.
3. Draw the force field diagram.
4. Decide how to strengthen or weaken the more important forces as appropriate and agree with those concerned.
5. Identify the resources needed.
6. Make an action plan including event timing, milestones and responsibilities.

1. (I) (II) (V) and (VI) only
2. (I) (III) (IV) and (VI) only
3. All of the above
4. None

Drawbacks to force field analysis are:

1. It depicts change as being ‘insider’ driven – the presumption is that some people in the business are committed to change and others are not.
2. It presumes that all change is desirable.
3. Force field analysis, depicts all the driving forces as operating in the same direction, and all the resisting forces as running in the opposite direction.
4. All of the above

Force field analysis has introduced the idea of resistance to change, and identified that organisations need to overcome this resistance in order for change to be implemented successfully. The main sources of individual resistance are:

1. Fear of the unknown
2. Dislike of uncertainty
3. Potential loss of power and rewards
4. Potential lack of or loss of skills
5. All of the above

When management is faced with resistance to change, what choices do they have to deal with that resistance?

1. Overcoming resistance through strengthening the driving forces for change, for example increasing management pressure, enhancing fears of dismissal and so forth.
2. Reducing resistance by weakening the forces that currently hold down output, for example through job redesign.
3. Both A&B
4. None

Why do people or groups of people fear change?

1. They do not trust the people leading the change, and/or their motives for change
2. It can result in organisational redesign – changes of jobs, and possibly even job losses
3. They do not understand the nature of the change and/or the reasons for it
4. All of the above

The forces acting on every individual undergoing change are:

1. Learning anxiety – The anxiety associated with learning something new. Will I be able to deal with the new situation? Will I fail? Will gaps in my knowledge or skills be exposed?
2. Survival anxiety – This concerns the pressure to change. What if I don’t change? Will I be left behind?
3. Both A&B
4. None

Schein’s principles to enable change to work include:

1. Survival anxiety must be greater than learning anxiety
2. Learning anxiety needs to be reduced, rather than survival anxiety being increased
3. Both A&B
4. None

Kotter & Schlesinger’s approaches for dealing with resistance to change are:

1. Education and communication
2. Participation and involvement
3. Facilitation and support
4. Negotiation and agreement
5. Manipulation and co-optation
6. Coercion, implicit and explicit

1. (I) (III) and (V) only
2. (II) (IV) and (V) only
3. All of the above
4. None

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MCQs on Organizational change – Leading and managing change

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MCQs on Organizational change