What is Organizational Development (OD)
The area of organizational development (OD) is an HR function that assesses the need for change, designs an intervention or process, helps management introduce the change, and then evaluates the effectiveness of the change. Organizational development typi
What does OD stand for?
Answer: Organizational development
To help adapt to change, many organizations engage in organizational development activities. The area of organizational development (OD) is an HR function that assesses the need for change, designs an intervention or pro
What is the purpose of organizational development?
To help organizations stay the same in the midst of global change
To help organizations adapt to change
To help organizations deal with external forces
To help organizations operate on smaller budgets
Answer: To help organizations adapt to change
Many organizations engage in organizational development activities to help with adapting to change. Nearly every organization, at some point, goes through significant change. To help adapt to change, many orga
True or False: Most organizations do not experience significant change.
Answer: False
Nearly every organization, at some point, goes through significant change. Some of these changes are big (such as a merger, acquisition, or downsizing effort), while some changes are much smaller and less stressful (such as introducing new p
How should an organization go about dealing with changes to best cope with uncertainty when the changes occur?
Fight against the change because it will result uncertainty in the company
Ignore the change and know that it will work itself out if it is the
Answer: Assume the process of change
John Kotter, a Harvard professor and thought leader in change management, challenges managers to assume the daunting process of change so that their organizations are ready for the uncertainty that is sure to occur in
True or False: Organizational development is a great HR function because it is a quick approach to change and easy to implement.
Answer: False
Organizational development typically takes a long-term approach to change. OD uses change to overcome problems and challenges within the firm, as well as to capitalize on strategic opportunities.
Which of the following shows where the organization's identity is found when it's in the recline phase?
In its programs
In its vision
In death
In its structure
Answer: In its programs
-The organization's identity in recline is found in its programs.
-The organization's identity in incline is found in its vision.
-The organization's identity in decline is found in its structure.
When an organization is in the incline phase, what are its resources spent on?
Preservation of the status quo
Implementation of programs
Strategic goals of the organization
Implementation of strategies
Answer: Strategic goals of the organization
When an organization begins its life, it usually has a vision of what it wants to be. The founder is clear and focused on the vision and allocates resources to achieve it. At this point, all its resources (e.g.,
When an organization is in its decline phase, what can the organization do to help get back into the incline phase?
Create a new vision
Focus on programs
Focus on administration and committees
Focus on structure and ignore strategic visioning
Answer: Create a new vision
Often mature, more established organizations tend to focus on structure instead of design and innovation. At this stage, reorganization and political competitiveness often occur as departments vie for resources. Such organizati
Which of the following shows where the organization's identity is found when it is in the decline phase?
In its programs
In its structure
In death
In its vision
Answer: In its structure
-The organization's identity in recline is found in its programs.
-The organization's identity in incline is found in its vision.
-The organization's identity in decline is found in its structure.
Which of the following is not a characteristic of the incline phase of the business life cycle?
Values-based decisions are being made
Resources are allocated more toward programs, products, and services
The business can be described as innovative
The busi
Answer: Resources are allocated more toward programs, products, and services
As the organization becomes more stable, it also becomes more comfortable and secure in what it is doing. Resources are allocated more toward its programs, products, and services
Common reasons for vulnerability include the three C's:
complacency, conservatism, and conceit.
Complacency describes those individuals (either management or line employees) who:
who are satisfied with the status quo. Such individuals do not see a need for change and do not feel that the effort to implement change is worth it. Often, individuals with a complacent attitude will take the approach that barriers to entry, government r
Conservatism describes management and others who:
who safeguard resources for the sake of reserving them. Often, individuals with a conservative attitude are loyal to earlier or "traditional" ways of doing things. These individuals do not want to invest in change and want to marshal all resources for oth
Conceit" refers to management who:
who suffer from hubris, whether that is focused on the organization and/or themselves. Instead of demonstrating an attitude of curiosity and desire to learn more about the organization and industry, these individuals believe that their current approach is
Corporate Culture Inputs include:
feedback from society, managers, laws, stories, heroes, values, and other similar factors.
Corporate Culture Outputs include:
the behavior of the firm, technologies, strategies, image, products, appearance, and services.
When management feels that they are satisfied with the status quo and sees no need for change, which of the three C's "mindset of vulnerability" are they exhibiting?
Complacency
Confidence
Conservatism
Conceit
Answer: Complacency
Complacency describes those individuals (whether management or line employees) who are satisfied with the status quo. Such individuals do not see a need for change and do not feel that the effort to implement change is worth it.
Which of the three C's mindset of vulnerability usually leaves the organization surprised when the market changes and the organization is unprepared to compete in the new environment?
Confidence
Complacency
Conservatism
Conceit
Answer: Conceit
Instead of demonstrating a learning-type attitude towards the organization and industry, the conceited individuals believe that their current approach is the best way of doing things and see no need to change. Such organizations are often
Organizations become vulnerable to competition and market changes due to the three C's - complacency, conservatism, and conceit. Which of the following is an accurate definition of conservatism?
All of these
Suffering from hubris, either focused on the or
Answer: Safeguarding resources for the sake of reserving them
Conservatism describes management and others who safeguard resources for the sake of reserving them. Often, individuals with a conservative attitude are loyal to earlier or "traditional" ways o
Which of the following is an input to the corporate culture?
Strategies
Behavior of the firm
Image
Feedback from society
Answer: Feedback from society
Inputs include feedback from society, managers, laws, stories, heroes, values and other similar factors. Outputs include the behavior of the firm, technologies, strategies, image, products, appearance and services.
True or False: Organizational change only affects structures and processes, not the corporate culture.
Answer: False
Organizational change must include not only changing structures and processes, but changing the corporate culture as well.
Needs analysis helps identify:
possible barriers to change. As management engages in needs analysis, they should ask the question, "From the perspective of our employees, what could keep them from embracing our desired change?" Possible answers may include: 1) Lack of knowledge or skil
OD Intervention Objective methods may include:
analysis of key metrics such as rate of absenteeism, rate of turnover, or productivity.
OD Intervention Subjective methods may include:
surveys or interviews.
True or False: HR professionals typically only have to overcome resistance to change from the line workers or employees at lower levels of the organization.
Answer: False
HR professionals typically have to overcome resistance to change at all levels within the organization. Typically, managers ask, what could keep the employees from embracing our desired change?" Possible answers may include:
1) Lack of knowl
Which of the following statements about attitude surveys is not true?
They are usually poorly done
They can cause employees to believe management cannot be trusted
Professionals recommend them
Attitude surveys can create expectations from employees and ca
Answer: Professionals recommend them
Instead of conducting a formal report about the needs, many organizations simply conduct an attitude surveys. Attitude surveys are usually poorly done and poorly received by employees. They may create expectations from
True or False: As problems arise in the implementation of an OD intervention, it is important for HR professionals to keep to their original plan and not make changes, because that might cause the intervention to fail.
Answer: False
As implementation problems arise, organizations must use their knowledge and ability to adapt and learn to improve the change management process.
Which of the following is a subjective method for implementing the evaluation of an OD intervention?
Productivity
Performance appraisals
Tardiness
Absenteeism
Answer: Performance appraisals
Evaluation of an OD intervention is accomplished through objective or subjective methods. Objective results may include decreased absenteeism and tardiness, increased productivity, or other similar type measures. Subjective
True or False: Designing OD Interventions to include all levels of the organization including individual, department, and organizational levels helps promote attitude, behavior, and value changes.
Answer: True
When an organization decides that it wants to change, the HR professional should design interventions at the individual, department, and organizational levels. Such efforts typically promote attitude, behavior, and value changes. Examples of
Dynamic Change is:
is a constant change (or process) that evolves over time. Furthermore, because growing hair takes time and occurs in a gradual fashion (with small incremental changes), we would refer to the change as an incremental change.
Incremental Changes take:
take place in small steps that occur over time.
What is Quantum Change?
the change would be quite definitive and noticeable. This change would be much more severe and could include something like downsizing an entire plant within the organization. Such changes are nearly irreversible and create immediate change within the fir
Static Changes are:
are definitive and occur almost instantly. Applied to the organization, incremental change would be a relatively small, quick change that would result in small changes throughout the organization. A good example of a static, incremental change would be pe
The following are some common dynamics of change:
People will feel awkward and ill at ease
People will think of what they have to give up
People will feel alone, even if others are going through it also
People can only cope with a finite amount of change at a time
People are at different levels of readin
Which types of changes are nearly irreversible and create immediate change within the firm?
Static, incremental change
Dynamic, quantum change
Dynamic, incremental change
Quantum, static change
Answer: Quantum, static change
A quantum, static change could be severe and could include something like downsizing an entire plant within the organization. Such changes are nearly irreversible and create immediate change within the firm.
Which of the following is not a dynamic of change?
People will feel alone
People are all at the same level of readiness for change
People will think of what they have to give up
People can only handle a finite amount of change at a time
Answer: People are all at the same level of readiness for change
Common dynamics of change:
-People will feel awkward and ill at ease
-People will think of what they have to give up
-People will feel alone, even if others are going through it also
-People
Which of the following is a change that is discontinuous?
Dynamic change
Quantum change
Static change
Incremental change
Answer: Static change
A common way to approach change management is to consider quantum vs. incremental change in either a dynamic (continuous) or static (discontinuous) environment. A good example of a static, incremental change would be periodically cha
Which of the following represents a dynamic, incremental change?
A change that is immediate and sustained
A relatively small, quick change that would result in small alterations in the organization
Changes that occur at periodic stages and allow for conti
Answer: Changes that occur at periodic stages and allow for continuous development within the firm
A dynamic, incremental change could include a change in procedure (or process) within the firm. Such changes would typically occur at periodic (or increment
A long-term merger would be what kind of change?
Dynamic, quantum change
Static, incremental change
Static, quantum change
Dynamic, incremental change
Answer: Dynamic, quantum change
A dynamic, quantum change within the organization would still create a sustained change but would have much more immediate impact on the firm. For example a dynamic, quantum change may include a long-term merger or acquisit
A learning organization is:
a particular type of organization culture, where culture reflects the values, attitudes, and basic operating assumptions that are widely shared among organizational participants. A culture that supports organizational learning is one where members recogni
Organization Culture fulfills four basic functions:
Culture provides members an organizational identity
Culture facilitates collective commitment
Culture promotes system stability
Culture shapes behavior by helping members make sense of their work environment
Which of the following is NOT one of the basic functions of organizational culture?
Culture shapes behavior by helping members make sense of their work environment
Culture promotes system stability
Culture helps each individual have their own diverse iden
Answer: Culture helps each individual have their own diverse identity
In addition to the definition provided above, it is useful to know that organization culture fulfills four basic functions:
Culture provides members an organizational identity
Culture f
Learning organizations are dedicated to all of the following except...
Keeping the knowledge acquired with upper management
Nurturing new and expansive patterns of thinking
Continuous learning
Expanding people's capacity to create the results they desire
Answer: Keeping the knowledge acquired with upper management
Peter Senge, a leading management scholar who served as director of the Center for Organizational Learning at MIT, stated that learning organizations are "organizations where people continually
What is usually the purpose of organization-level change?
Preventing a valuable employee from leaving
Remove obstacles to promotions
Change the organization's culture in some way
Increase the depth of the organization's hierarchy
Answer: Change the organization's culture in some way
Almost all organization-level change efforts are designed to change the culture in some way.
True or False: Learning organizations focus only on management being actively engaged in the learning process.
Answer: False
A culture that supports organizational learning is one where members recognize the importance of learning at all levels, where learning is a continuous process that runs parallel to work, where there is a focus on creativity and innovation,
Strategy refers to:
the way that an organization is going to reach its goals. It describes the process by which an organization decides which products or services to market and sell, which industries to enter, and how the organization is going to reach its desired goals in t
Competitive strategy refers to:
the way that an organization is going to compete.
True or False: When engaging in organizational change, it is important for both HR professionals and management to be aware of the strategic direction of the firm.
Answer: True
As organizations engage in organizational change, it is especially important that both HR professionals and management understand the strategic direction of the firm.
What does competitive strategy refer to?
The way an organization will reach its goals
The way the organization goes about its programs
The way an organization is going to compete
The way the organization sets up its policies
Answer: The way an organization is going to compete
Competitive strategy refers to the way that an organization is going to compete. In other words, strategy describes the process by which an organization decides which products or services to market and s
True or False: When an organization builds its strategy, it does not need to worry about other organizations?
Answer: False
When an organization crafts (or builds) its strategy, it is specifically choosing the actions it will take in the marketplace, including how it is going to compete and outperform other organizations.
Which of the following will not help a company's strategy?
Deciding which products/services will be marketed
Deciding which industries to enter
Deciding not to have specific goals, but only work on image
Deciding how an organization will market products/s
Answer: Deciding not to have specific goals, but only work on image
Strategy refers to the way that an organization is going to reach its goals. It describes the process by which an organization decides on which products or services to market and sell, wh
True or False: It is easy for customers and other outsiders to know an organization's strategy.
Answer: True
Employees, customers, vendors, and other stakeholders can often observe an organization's chosen strategy by evaluating what the firm does in the marketplace and asking a list of questions. A few of these questions are:
-What products and/or
Because strategy is about understanding how the organization is going to compete, it is essential that all organizations build and create a solid foundation. To build this foundation, the firm must continually ask itself three basic questions:
Where are we currently
What are our goals
How will we reach our goals?
Strategic fit refers to:
the degree to which an organization is able to match its internal resources and capabilities with opportunities in the external environment.
External environment" refers to:
conditions, events, entities and factors that are external to, or outside, the firm. While organizations have the ability to respond to the external environment, they have no direct control over it. For example, organizations must be able to quickly respo
Internal Environment consists of:
the conditions, events, entities and factors that occur within (or internally to) the organization. As such, the internal environment includes employees, management, organizational culture and climate, research and development, internal technology and ope
What is the first step to deciding what action to take as an organization?
Implement the organization's strategy
Understand where the organization is currently
Decide what future course of action is needed
Refine the organization's strategy
Answer: Understand where the organization is currently
Before organizations can refine their strategy and decide on any future course of action, the firm must first understand where the organization is at that moment.
Which of the following is not an advantageous result of getting feedback from stakeholders?
Improvement in overall productivity
Higher costs
Better processes
Higher level of customer service
Answer: Higher costs
In deciding where the firm is, it is helpful to get feedback from shareholders, customers, partners, and employees. Frank and honest feedback from stakeholders can help the firm improve processes, improve customer service, lower cost,
True or False: There are many paths and futures for organizations to choose from and which will influence their goals. All of the paths will result in sustainability, profitability, and success.
Answer: False
Understanding the future path of the organization can be one of the most important questions that any organization can examine. When done correctly, deciding the goals and objectives of the organization can bring alignment and purpose to the
What characteristic will not help an organization respond well to the challenges and the constant changes of the external environment?
Being responsive
Being flexible
Being adaptive
Being unchanging
Answer: Being unchanging
Because of the fast-paced global environment of business, even if management does gain company-wide acceptance of goals and invests the necessary resources required to reach those goals, factors in the external environment may sti
Which of the following environments is an organization able to control?
Internal
External
Answer: Internal
The external environment refers to stimuli that are "external" to, or outside, the firm. While organizations have the ability to respond to the external environment, they have no direct control over it. The internal environment refers to
True or False: The desire to change will have a large effect on whether or not change will be effective.
Answer: True
As organizations strive to meet both organizational and market needs, organizations must often go through significant change. These changes allow the firm to make adjustments to better compete in today's global and chaotic environment. Such c
All of the following are advantages that organizations can experience when they go through significant change, except...
Change can allow the firm to find what has prevented it from achieving strategic goals
Change can allow the firm to address specific c
Answer: Change can allow the firm to remain unaffected by the external environment
As organizations strive to meet both organizational and markets needs, organizations are often required to undergo significant change. These changes allow the firm to make
True or False: It is not necessary for management to align change with strategic goals, but they must align with environmental forces.
Answer: False
In implementing change within the organization, it is critical that management align change with the strategic goals and objectives of the firm.
True or False: Strategy encompasses which products to sell and which industries to enter.
Answer: True
Corporate strategy refers to the way that an organization is going to compete. Strategy describes the process by which an organization decides on which products or services to market and sell, which industries to enter, and how the organizati
What does Hr organizational development (OD) not do?
Design an intervention
Take a quick approach to implementing the change
Evaluate the effectiveness of the change
Assess the need for change
Answer: Take a quick approach to implementing the change
Organizational development (OD) is an HR function that assesses the need for change, designs an intervention or process, helps management introduce the change, and then evaluates the effectiveness o
True or False: Organizational development helps organizations survive through changes, but it usually does not help the organization's strategic opportunities.
Answer: False
Organizational development typically takes a long-term approach to change and uses change to overcome problems and challenges within the firm as well as to capitalize on strategic opportunities.
True or False: Evaluating the organization's characteristics and finding which phase of the business life cycle the organization is in may help the organization avoid the recline and decline phases.
Answer: True
There are distinctive characteristics for each phase of the business life cycle that can help managers identify where the organization currently is. Such organizational evaluation can help management avoid the recline and decline phases of mo
In which phase of the business life cycle would an organization be in if they were very top-heavy (in administration)?
Incline
Death
Decline
Recline
Answer: Decline
Often mature, more established organizations tend to focus on structure instead of design and innovation. Such organizations often become top-heavy (in administration) and/or have many committees whose time is taken as committees try to ma
Which of the following is not one of the three C's mindset of vulnerability?
Complacency
Confidence
Conceit
Conservatism
Answer: Confidence
There are a number of reasons why organizations become vulnerable to competition and market changes. Some common include the three C's mindset of vulnerability:
Complacency-Individuals (management or line employees) who are satisfied wi
True or False: When implementing organizational change, it is important to remember that not only do structures and processes need to change, but often the corporate culture as well.
Answer: True
As organizations strive to meet both organizational and market needs, organizations must often go through significant change. These changes allow the firm to make adjustments to better compete in today's global and chaotic environment. Such c
True or False: When designing organizational development interventions, HR professionals should design the interventions mainly at the individual and department levels.
Answer: False
When an organization decides that it wants to change, the HR professional should design interventions at the individual, department, and organizational levels.
Which of the following is a static change in an organization?
Dynamic change
Pivoting the company to focus on a new market
Acquiring another firm
Changing paperwork to a different format
Answer: Changing paperwork to a different format
Applied to the organization, a static, incremental change would be a relatively small, quick change that would result in small changes throughout the organization. A good example of a static, incremental ch
What is the next step in the OD process after the HR professional has gathered and analyzed the data?
Prepare a report about the climate for change
Gather more data
Implement a change process
Evaluate the change process
Answer: Prepare a report about the climate for change
Once the data regarding problems and barriers to change are gathered and analyzed by the HR professional, the HR professional will usually prepare a report (verbal or written) about the climate for cha
All of the following are dynamics of change except...
People are at different levels of readiness
People will continue the changes once the initial pressure is off
People will feel awkward and ill at ease
People will feel alone, even if others are going t
Answer: People will continue the changes once the initial pressure is off
Common dynamics of change include:
1) People will feel awkward and ill at ease
2) People will think of what they have to give up
3) People will feel alone, even if others are going
Which of the following statements is correct?
Dynamic change evolves over time
Incremental changes are definite and occur almost instantly
Static changes are small steps that occur over time
Quantum changes are small and quick
Answer: Dynamic change evolves over time
Dynamic change is a constant change (or process) that evolves over time.
Incremental changes take place in small steps that occur over time.
Static changes are definite and occur almost instantly.
Quantum changes a
Peter Senge stated that learning organizations are all of the following except...
Organizations that focus on new patterns of thinking
Organizations that create the results they truly desire
Organizations that continually expand their capacity
Organizatio
Answer: Organizations that focus on managerial aspiration
Peter Senge, a leading management scholar who served as director of the Center for Organizational Learning at MIT, stated that learning organizations are "organizations where people continually exp
True or False: In order for an organization to truly be a "learning organization," it is necessary that it continually learns, expands, and adapts.
Answer: True
Peter Senge, a leading management scholar who served as director of the Center for Organizational Learning at MIT, stated that learning organizations are "organizations where people continually expand their capacity to create the results they
How an organization is going to reach its goals is considered which of the following?
Strategy
Competitive strategy
Answer: Strategy
Strategy refers to the way that an organization is going to reach its goals. Competitive strategy refers to the way that an organization is going to compete in the marketplace.
True or False: When an organization builds its strategy, it not only decides what actions to take in the marketplace, but also how to outperform other organizations.
Answer: True
When an organization "crafts" or builds its strategy, it is specifically choosing the actions it will take in the marketplace, including how it is going to compete and outperform other organizations.
What does strategic fit mean?
How well the company fits its processes with its goals
How well the company fits its internal capabilities with external opportunities
How well the company fits its goals with its internal resources
How well the company fits
Answer: How well the company fits its internal capabilities with external opportunities
For an organization to compete successfully in the marketplace, the organization must identify its strategic fit. Strategic fit refers to the degree to which an organi
True or False: When building a strong foundation, it is necessary to ask three questions: "Where are we now?", "What are our goals?", and "How will we reach our goals?" at the beginning of the strategic implementation.
Answer: True
Because strategy is about understanding how the organization is going to compete, it is essential that all organizations build and create a solid foundation. To build this foundation, the firm must continually ask itself three basic questions
When management is working to identify and implement the actions the organization will take, which of the following questions are they answering?
What are our goals?
How will we reach our goals?
Were we successful in reaching our goals?
Where are we now?
Answer: How will we reach our goals?
After management has decided where they want to take the organization, management must identify and implement those steps and actions that will help the organization to achieve both its long-term and short-term goals.
Which of the following will not help the organization implement change?
Implementing change without first identifying specific techniques
Using organizational development to implement the change
Aligning change with strategic goals
Aligning change with th
Answer: Implementing change without first identifying specific techniques
As organizations engage in change it is important for HR professionals to engage in organizational development, a systematic process of implementing effective organizational change.
When can organizations be improved?
When the focus is on administration
When the focus is from top to bottom
When the focus is on blaming
When the focus is on learning
Answer: When the focus is on learning
Organizations are improved when learning takes precedence over blaming.
What is Organizational Development (OD)
The area of organizational development (OD) is an HR function that assesses the need for change, designs an intervention or process, helps management introduce the change, and then evaluates the effectiveness of the change. Organizational development typi
What does OD stand for?
Answer: Organizational development
To help adapt to change, many organizations engage in organizational development activities. The area of organizational development (OD) is an HR function that assesses the need for change, designs an intervention or pro
What is the purpose of organizational development?
To help organizations stay the same in the midst of global change
To help organizations adapt to change
To help organizations deal with external forces
To help organizations operate on smaller budgets
Answer: To help organizations adapt to change
Many organizations engage in organizational development activities to help with adapting to change. Nearly every organization, at some point, goes through significant change. To help adapt to change, many orga
True or False: Most organizations do not experience significant change.
Answer: False
Nearly every organization, at some point, goes through significant change. Some of these changes are big (such as a merger, acquisition, or downsizing effort), while some changes are much smaller and less stressful (such as introducing new p
How should an organization go about dealing with changes to best cope with uncertainty when the changes occur?
Fight against the change because it will result uncertainty in the company
Ignore the change and know that it will work itself out if it is the
Answer: Assume the process of change
John Kotter, a Harvard professor and thought leader in change management, challenges managers to assume the daunting process of change so that their organizations are ready for the uncertainty that is sure to occur in
True or False: Organizational development is a great HR function because it is a quick approach to change and easy to implement.
Answer: False
Organizational development typically takes a long-term approach to change. OD uses change to overcome problems and challenges within the firm, as well as to capitalize on strategic opportunities.
Which of the following shows where the organization's identity is found when it's in the recline phase?
In its programs
In its vision
In death
In its structure
Answer: In its programs
-The organization's identity in recline is found in its programs.
-The organization's identity in incline is found in its vision.
-The organization's identity in decline is found in its structure.
When an organization is in the incline phase, what are its resources spent on?
Preservation of the status quo
Implementation of programs
Strategic goals of the organization
Implementation of strategies
Answer: Strategic goals of the organization
When an organization begins its life, it usually has a vision of what it wants to be. The founder is clear and focused on the vision and allocates resources to achieve it. At this point, all its resources (e.g.,
When an organization is in its decline phase, what can the organization do to help get back into the incline phase?
Create a new vision
Focus on programs
Focus on administration and committees
Focus on structure and ignore strategic visioning
Answer: Create a new vision
Often mature, more established organizations tend to focus on structure instead of design and innovation. At this stage, reorganization and political competitiveness often occur as departments vie for resources. Such organizati
Which of the following shows where the organization's identity is found when it is in the decline phase?
In its programs
In its structure
In death
In its vision
Answer: In its structure
-The organization's identity in recline is found in its programs.
-The organization's identity in incline is found in its vision.
-The organization's identity in decline is found in its structure.
Which of the following is not a characteristic of the incline phase of the business life cycle?
Values-based decisions are being made
Resources are allocated more toward programs, products, and services
The business can be described as innovative
The busi
Answer: Resources are allocated more toward programs, products, and services
As the organization becomes more stable, it also becomes more comfortable and secure in what it is doing. Resources are allocated more toward its programs, products, and services
Common reasons for vulnerability include the three C's:
complacency, conservatism, and conceit.
Complacency describes those individuals (either management or line employees) who:
who are satisfied with the status quo. Such individuals do not see a need for change and do not feel that the effort to implement change is worth it. Often, individuals with a complacent attitude will take the approach that barriers to entry, government r
Conservatism describes management and others who:
who safeguard resources for the sake of reserving them. Often, individuals with a conservative attitude are loyal to earlier or "traditional" ways of doing things. These individuals do not want to invest in change and want to marshal all resources for oth
Conceit" refers to management who:
who suffer from hubris, whether that is focused on the organization and/or themselves. Instead of demonstrating an attitude of curiosity and desire to learn more about the organization and industry, these individuals believe that their current approach is
Corporate Culture Inputs include:
feedback from society, managers, laws, stories, heroes, values, and other similar factors.
Corporate Culture Outputs include:
the behavior of the firm, technologies, strategies, image, products, appearance, and services.
When management feels that they are satisfied with the status quo and sees no need for change, which of the three C's "mindset of vulnerability" are they exhibiting?
Complacency
Confidence
Conservatism
Conceit
Answer: Complacency
Complacency describes those individuals (whether management or line employees) who are satisfied with the status quo. Such individuals do not see a need for change and do not feel that the effort to implement change is worth it.
Which of the three C's mindset of vulnerability usually leaves the organization surprised when the market changes and the organization is unprepared to compete in the new environment?
Confidence
Complacency
Conservatism
Conceit
Answer: Conceit
Instead of demonstrating a learning-type attitude towards the organization and industry, the conceited individuals believe that their current approach is the best way of doing things and see no need to change. Such organizations are often
Organizations become vulnerable to competition and market changes due to the three C's - complacency, conservatism, and conceit. Which of the following is an accurate definition of conservatism?
All of these
Suffering from hubris, either focused on the or
Answer: Safeguarding resources for the sake of reserving them
Conservatism describes management and others who safeguard resources for the sake of reserving them. Often, individuals with a conservative attitude are loyal to earlier or "traditional" ways o
Which of the following is an input to the corporate culture?
Strategies
Behavior of the firm
Image
Feedback from society
Answer: Feedback from society
Inputs include feedback from society, managers, laws, stories, heroes, values and other similar factors. Outputs include the behavior of the firm, technologies, strategies, image, products, appearance and services.
True or False: Organizational change only affects structures and processes, not the corporate culture.
Answer: False
Organizational change must include not only changing structures and processes, but changing the corporate culture as well.
Needs analysis helps identify:
possible barriers to change. As management engages in needs analysis, they should ask the question, "From the perspective of our employees, what could keep them from embracing our desired change?" Possible answers may include: 1) Lack of knowledge or skil
OD Intervention Objective methods may include:
analysis of key metrics such as rate of absenteeism, rate of turnover, or productivity.
OD Intervention Subjective methods may include:
surveys or interviews.
True or False: HR professionals typically only have to overcome resistance to change from the line workers or employees at lower levels of the organization.
Answer: False
HR professionals typically have to overcome resistance to change at all levels within the organization. Typically, managers ask, what could keep the employees from embracing our desired change?" Possible answers may include:
1) Lack of knowl
Which of the following statements about attitude surveys is not true?
They are usually poorly done
They can cause employees to believe management cannot be trusted
Professionals recommend them
Attitude surveys can create expectations from employees and ca
Answer: Professionals recommend them
Instead of conducting a formal report about the needs, many organizations simply conduct an attitude surveys. Attitude surveys are usually poorly done and poorly received by employees. They may create expectations from
True or False: As problems arise in the implementation of an OD intervention, it is important for HR professionals to keep to their original plan and not make changes, because that might cause the intervention to fail.
Answer: False
As implementation problems arise, organizations must use their knowledge and ability to adapt and learn to improve the change management process.
Which of the following is a subjective method for implementing the evaluation of an OD intervention?
Productivity
Performance appraisals
Tardiness
Absenteeism
Answer: Performance appraisals
Evaluation of an OD intervention is accomplished through objective or subjective methods. Objective results may include decreased absenteeism and tardiness, increased productivity, or other similar type measures. Subjective
True or False: Designing OD Interventions to include all levels of the organization including individual, department, and organizational levels helps promote attitude, behavior, and value changes.
Answer: True
When an organization decides that it wants to change, the HR professional should design interventions at the individual, department, and organizational levels. Such efforts typically promote attitude, behavior, and value changes. Examples of
Dynamic Change is:
is a constant change (or process) that evolves over time. Furthermore, because growing hair takes time and occurs in a gradual fashion (with small incremental changes), we would refer to the change as an incremental change.
Incremental Changes take:
take place in small steps that occur over time.
What is Quantum Change?
the change would be quite definitive and noticeable. This change would be much more severe and could include something like downsizing an entire plant within the organization. Such changes are nearly irreversible and create immediate change within the fir
Static Changes are:
are definitive and occur almost instantly. Applied to the organization, incremental change would be a relatively small, quick change that would result in small changes throughout the organization. A good example of a static, incremental change would be pe
The following are some common dynamics of change:
People will feel awkward and ill at ease
People will think of what they have to give up
People will feel alone, even if others are going through it also
People can only cope with a finite amount of change at a time
People are at different levels of readin
Which types of changes are nearly irreversible and create immediate change within the firm?
Static, incremental change
Dynamic, quantum change
Dynamic, incremental change
Quantum, static change
Answer: Quantum, static change
A quantum, static change could be severe and could include something like downsizing an entire plant within the organization. Such changes are nearly irreversible and create immediate change within the firm.
Which of the following is not a dynamic of change?
People will feel alone
People are all at the same level of readiness for change
People will think of what they have to give up
People can only handle a finite amount of change at a time
Answer: People are all at the same level of readiness for change
Common dynamics of change:
-People will feel awkward and ill at ease
-People will think of what they have to give up
-People will feel alone, even if others are going through it also
-People
Which of the following is a change that is discontinuous?
Dynamic change
Quantum change
Static change
Incremental change
Answer: Static change
A common way to approach change management is to consider quantum vs. incremental change in either a dynamic (continuous) or static (discontinuous) environment. A good example of a static, incremental change would be periodically cha
Which of the following represents a dynamic, incremental change?
A change that is immediate and sustained
A relatively small, quick change that would result in small alterations in the organization
Changes that occur at periodic stages and allow for conti
Answer: Changes that occur at periodic stages and allow for continuous development within the firm
A dynamic, incremental change could include a change in procedure (or process) within the firm. Such changes would typically occur at periodic (or increment
A long-term merger would be what kind of change?
Dynamic, quantum change
Static, incremental change
Static, quantum change
Dynamic, incremental change
Answer: Dynamic, quantum change
A dynamic, quantum change within the organization would still create a sustained change but would have much more immediate impact on the firm. For example a dynamic, quantum change may include a long-term merger or acquisit
A learning organization is:
a particular type of organization culture, where culture reflects the values, attitudes, and basic operating assumptions that are widely shared among organizational participants. A culture that supports organizational learning is one where members recogni
Organization Culture fulfills four basic functions:
Culture provides members an organizational identity
Culture facilitates collective commitment
Culture promotes system stability
Culture shapes behavior by helping members make sense of their work environment
Which of the following is NOT one of the basic functions of organizational culture?
Culture shapes behavior by helping members make sense of their work environment
Culture promotes system stability
Culture helps each individual have their own diverse iden
Answer: Culture helps each individual have their own diverse identity
In addition to the definition provided above, it is useful to know that organization culture fulfills four basic functions:
Culture provides members an organizational identity
Culture f
Learning organizations are dedicated to all of the following except...
Keeping the knowledge acquired with upper management
Nurturing new and expansive patterns of thinking
Continuous learning
Expanding people's capacity to create the results they desire
Answer: Keeping the knowledge acquired with upper management
Peter Senge, a leading management scholar who served as director of the Center for Organizational Learning at MIT, stated that learning organizations are "organizations where people continually
What is usually the purpose of organization-level change?
Preventing a valuable employee from leaving
Remove obstacles to promotions
Change the organization's culture in some way
Increase the depth of the organization's hierarchy
Answer: Change the organization's culture in some way
Almost all organization-level change efforts are designed to change the culture in some way.
True or False: Learning organizations focus only on management being actively engaged in the learning process.
Answer: False
A culture that supports organizational learning is one where members recognize the importance of learning at all levels, where learning is a continuous process that runs parallel to work, where there is a focus on creativity and innovation,
Strategy refers to:
the way that an organization is going to reach its goals. It describes the process by which an organization decides which products or services to market and sell, which industries to enter, and how the organization is going to reach its desired goals in t
Competitive strategy refers to:
the way that an organization is going to compete.
True or False: When engaging in organizational change, it is important for both HR professionals and management to be aware of the strategic direction of the firm.
Answer: True
As organizations engage in organizational change, it is especially important that both HR professionals and management understand the strategic direction of the firm.
What does competitive strategy refer to?
The way an organization will reach its goals
The way the organization goes about its programs
The way an organization is going to compete
The way the organization sets up its policies
Answer: The way an organization is going to compete
Competitive strategy refers to the way that an organization is going to compete. In other words, strategy describes the process by which an organization decides which products or services to market and s
True or False: When an organization builds its strategy, it does not need to worry about other organizations?
Answer: False
When an organization crafts (or builds) its strategy, it is specifically choosing the actions it will take in the marketplace, including how it is going to compete and outperform other organizations.
Which of the following will not help a company's strategy?
Deciding which products/services will be marketed
Deciding which industries to enter
Deciding not to have specific goals, but only work on image
Deciding how an organization will market products/s
Answer: Deciding not to have specific goals, but only work on image
Strategy refers to the way that an organization is going to reach its goals. It describes the process by which an organization decides on which products or services to market and sell, wh
True or False: It is easy for customers and other outsiders to know an organization's strategy.
Answer: True
Employees, customers, vendors, and other stakeholders can often observe an organization's chosen strategy by evaluating what the firm does in the marketplace and asking a list of questions. A few of these questions are:
-What products and/or
Because strategy is about understanding how the organization is going to compete, it is essential that all organizations build and create a solid foundation. To build this foundation, the firm must continually ask itself three basic questions:
Where are we currently
What are our goals
How will we reach our goals?
Strategic fit refers to:
the degree to which an organization is able to match its internal resources and capabilities with opportunities in the external environment.
External environment" refers to:
conditions, events, entities and factors that are external to, or outside, the firm. While organizations have the ability to respond to the external environment, they have no direct control over it. For example, organizations must be able to quickly respo
Internal Environment consists of:
the conditions, events, entities and factors that occur within (or internally to) the organization. As such, the internal environment includes employees, management, organizational culture and climate, research and development, internal technology and ope
What is the first step to deciding what action to take as an organization?
Implement the organization's strategy
Understand where the organization is currently
Decide what future course of action is needed
Refine the organization's strategy
Answer: Understand where the organization is currently
Before organizations can refine their strategy and decide on any future course of action, the firm must first understand where the organization is at that moment.
Which of the following is not an advantageous result of getting feedback from stakeholders?
Improvement in overall productivity
Higher costs
Better processes
Higher level of customer service
Answer: Higher costs
In deciding where the firm is, it is helpful to get feedback from shareholders, customers, partners, and employees. Frank and honest feedback from stakeholders can help the firm improve processes, improve customer service, lower cost,
True or False: There are many paths and futures for organizations to choose from and which will influence their goals. All of the paths will result in sustainability, profitability, and success.
Answer: False
Understanding the future path of the organization can be one of the most important questions that any organization can examine. When done correctly, deciding the goals and objectives of the organization can bring alignment and purpose to the
What characteristic will not help an organization respond well to the challenges and the constant changes of the external environment?
Being responsive
Being flexible
Being adaptive
Being unchanging
Answer: Being unchanging
Because of the fast-paced global environment of business, even if management does gain company-wide acceptance of goals and invests the necessary resources required to reach those goals, factors in the external environment may sti
Which of the following environments is an organization able to control?
Internal
External
Answer: Internal
The external environment refers to stimuli that are "external" to, or outside, the firm. While organizations have the ability to respond to the external environment, they have no direct control over it. The internal environment refers to
True or False: The desire to change will have a large effect on whether or not change will be effective.
Answer: True
As organizations strive to meet both organizational and market needs, organizations must often go through significant change. These changes allow the firm to make adjustments to better compete in today's global and chaotic environment. Such c
All of the following are advantages that organizations can experience when they go through significant change, except...
Change can allow the firm to find what has prevented it from achieving strategic goals
Change can allow the firm to address specific c
Answer: Change can allow the firm to remain unaffected by the external environment
As organizations strive to meet both organizational and markets needs, organizations are often required to undergo significant change. These changes allow the firm to make
True or False: It is not necessary for management to align change with strategic goals, but they must align with environmental forces.
Answer: False
In implementing change within the organization, it is critical that management align change with the strategic goals and objectives of the firm.
True or False: Strategy encompasses which products to sell and which industries to enter.
Answer: True
Corporate strategy refers to the way that an organization is going to compete. Strategy describes the process by which an organization decides on which products or services to market and sell, which industries to enter, and how the organizati
What does Hr organizational development (OD) not do?
Design an intervention
Take a quick approach to implementing the change
Evaluate the effectiveness of the change
Assess the need for change
Answer: Take a quick approach to implementing the change
Organizational development (OD) is an HR function that assesses the need for change, designs an intervention or process, helps management introduce the change, and then evaluates the effectiveness o
True or False: Organizational development helps organizations survive through changes, but it usually does not help the organization's strategic opportunities.
Answer: False
Organizational development typically takes a long-term approach to change and uses change to overcome problems and challenges within the firm as well as to capitalize on strategic opportunities.
True or False: Evaluating the organization's characteristics and finding which phase of the business life cycle the organization is in may help the organization avoid the recline and decline phases.
Answer: True
There are distinctive characteristics for each phase of the business life cycle that can help managers identify where the organization currently is. Such organizational evaluation can help management avoid the recline and decline phases of mo
In which phase of the business life cycle would an organization be in if they were very top-heavy (in administration)?
Incline
Death
Decline
Recline
Answer: Decline
Often mature, more established organizations tend to focus on structure instead of design and innovation. Such organizations often become top-heavy (in administration) and/or have many committees whose time is taken as committees try to ma
Which of the following is not one of the three C's mindset of vulnerability?
Complacency
Confidence
Conceit
Conservatism
Answer: Confidence
There are a number of reasons why organizations become vulnerable to competition and market changes. Some common include the three C's mindset of vulnerability:
Complacency-Individuals (management or line employees) who are satisfied wi
True or False: When implementing organizational change, it is important to remember that not only do structures and processes need to change, but often the corporate culture as well.
Answer: True
As organizations strive to meet both organizational and market needs, organizations must often go through significant change. These changes allow the firm to make adjustments to better compete in today's global and chaotic environment. Such c
True or False: When designing organizational development interventions, HR professionals should design the interventions mainly at the individual and department levels.
Answer: False
When an organization decides that it wants to change, the HR professional should design interventions at the individual, department, and organizational levels.
Which of the following is a static change in an organization?
Dynamic change
Pivoting the company to focus on a new market
Acquiring another firm
Changing paperwork to a different format
Answer: Changing paperwork to a different format
Applied to the organization, a static, incremental change would be a relatively small, quick change that would result in small changes throughout the organization. A good example of a static, incremental ch
What is the next step in the OD process after the HR professional has gathered and analyzed the data?
Prepare a report about the climate for change
Gather more data
Implement a change process
Evaluate the change process
Answer: Prepare a report about the climate for change
Once the data regarding problems and barriers to change are gathered and analyzed by the HR professional, the HR professional will usually prepare a report (verbal or written) about the climate for cha
All of the following are dynamics of change except...
People are at different levels of readiness
People will continue the changes once the initial pressure is off
People will feel awkward and ill at ease
People will feel alone, even if others are going t
Answer: People will continue the changes once the initial pressure is off
Common dynamics of change include:
1) People will feel awkward and ill at ease
2) People will think of what they have to give up
3) People will feel alone, even if others are going
Which of the following statements is correct?
Dynamic change evolves over time
Incremental changes are definite and occur almost instantly
Static changes are small steps that occur over time
Quantum changes are small and quick
Answer: Dynamic change evolves over time
Dynamic change is a constant change (or process) that evolves over time.
Incremental changes take place in small steps that occur over time.
Static changes are definite and occur almost instantly.
Quantum changes a
Peter Senge stated that learning organizations are all of the following except...
Organizations that focus on new patterns of thinking
Organizations that create the results they truly desire
Organizations that continually expand their capacity
Organizatio
Answer: Organizations that focus on managerial aspiration
Peter Senge, a leading management scholar who served as director of the Center for Organizational Learning at MIT, stated that learning organizations are "organizations where people continually exp
True or False: In order for an organization to truly be a "learning organization," it is necessary that it continually learns, expands, and adapts.
Answer: True
Peter Senge, a leading management scholar who served as director of the Center for Organizational Learning at MIT, stated that learning organizations are "organizations where people continually expand their capacity to create the results they
How an organization is going to reach its goals is considered which of the following?
Strategy
Competitive strategy
Answer: Strategy
Strategy refers to the way that an organization is going to reach its goals. Competitive strategy refers to the way that an organization is going to compete in the marketplace.
True or False: When an organization builds its strategy, it not only decides what actions to take in the marketplace, but also how to outperform other organizations.
Answer: True
When an organization "crafts" or builds its strategy, it is specifically choosing the actions it will take in the marketplace, including how it is going to compete and outperform other organizations.
What does strategic fit mean?
How well the company fits its processes with its goals
How well the company fits its internal capabilities with external opportunities
How well the company fits its goals with its internal resources
How well the company fits
Answer: How well the company fits its internal capabilities with external opportunities
For an organization to compete successfully in the marketplace, the organization must identify its strategic fit. Strategic fit refers to the degree to which an organi
True or False: When building a strong foundation, it is necessary to ask three questions: "Where are we now?", "What are our goals?", and "How will we reach our goals?" at the beginning of the strategic implementation.
Answer: True
Because strategy is about understanding how the organization is going to compete, it is essential that all organizations build and create a solid foundation. To build this foundation, the firm must continually ask itself three basic questions
When management is working to identify and implement the actions the organization will take, which of the following questions are they answering?
What are our goals?
How will we reach our goals?
Were we successful in reaching our goals?
Where are we now?
Answer: How will we reach our goals?
After management has decided where they want to take the organization, management must identify and implement those steps and actions that will help the organization to achieve both its long-term and short-term goals.
Which of the following will not help the organization implement change?
Implementing change without first identifying specific techniques
Using organizational development to implement the change
Aligning change with strategic goals
Aligning change with th
Answer: Implementing change without first identifying specific techniques
As organizations engage in change it is important for HR professionals to engage in organizational development, a systematic process of implementing effective organizational change.
When can organizations be improved?
When the focus is on administration
When the focus is from top to bottom
When the focus is on blaming
When the focus is on learning
Answer: When the focus is on learning
Organizations are improved when learning takes precedence over blaming.