Multiple Choice

1. A system of shared beliefs and values that guides organizational behavior is called an
________.
a) organizational policy
b) organizational procedure
c) organizational design
d) organizational culture

Ans: d
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture is the personality of the organization.
AACSB: Analytic

2. Which of the following statements is NOT true about organizational culture?

a) It describes the structure of an organization.
b) It is a system of shared beliefs and values.
c) It represents the personality of an organization.
d) It represents the way of doing things in an organization.

Ans: a
Bloom’s: Comprehension
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture is the personality of the organization.
AACSB: Analytic

3. The __________ of an organization is reflected in how people dress at work, arrange their
offices, and speak to and behave toward one another in the organization.
a) functional culture
b) observable culture
c) underground culture
d) core culture

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The observable culture is what you see and hear as an employee or
customer.
AACSB: Analytic

4. All of the following are true about strong organizational cultures EXCEPT that:
a) they are performance driven.
b) they are restricted to the top management.
c) they provide a clear vision.
d) they discourage dysfunctional work behaviors and encourage positive ones.

Ans: b
Bloom’s: Comprehension
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture shapes behavior and influences performance.
AACSB: Analytic

5. What people see or hear when they walk around in an organization is part of the
organization’s:
a) observable culture.
b) goals.
c) strategy.
d) employee training.

Ans: a
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The observable culture is what you see and hear as an employee or
customer.
AACSB: Analytic

6. The senior managers of West Corp. do not have private offices or parking spaces. This is an
example of the organization’s __________.
a) corporate policy
b) employee training
c) performance appraisal
d) observable culture

Ans: d
Bloom’s: Application
Level: Medium
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The observable culture is what you see and hear as an employee or
customer.
AACSB: Reflective Thinking

7. The process through which new members learn the culture of an organization is called
__________.
a) training
b) coaching
c) socialization
d) employee development

Ans: c
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture shapes behavior and influences performance.
AACSB: Analytic
8. According to the competing values framework, __________ emphasize authority, tradition,
and clear roles.
a) entrepreneurial cultures
b) hierarchical cultures
c) rational cultures
d) team cultures

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Not all organization cultures are alike.
AACSB: Analytic

9. According to the competing values framework, which of the following types of cultures
emphasizes change, growth, creativity, and competition?
a) Entrepreneurial cultures
b) Hierarchical cultures
c) Rational cultures
d) Team cultures

Ans: a
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Not all organization cultures are alike.
AACSB: Analytic

10. According to the competing values framework, __________ emphasize process, efficiency,
and slow change.
a) entrepreneurial cultures
b) hierarchical cultures
c) rational cultures
d) team cultures

Ans: c
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Not all organization cultures are alike.
AACSB: Analytic

11. At Callaway Golf, which of the following would NOT be a part of the observable culture?
a) The way people dress
b) The layout of the offices
c) The absence of executive parking spaces
d) The organizational beliefs

Ans: d
Bloom’s: Application
Level: Medium
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The observable culture is what you see and hear as an employee or
customer.
AACSB: Reflective Thinking

12. Which of the following represents a deeper level of organizational culture that consists of
the beliefs and values shared by organization members?
a) Bureaucratic culture
b) Core culture
c) Organic culture
d) Mechanistic culture

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic

13. The beliefs shared by an organization’s members are called __________.

a) corporate doctrines
b) management directives
c) corporate requests
d) core values

Ans: d
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic

14. Merck’s “Highest level of scientific excellence;” Whole Foods’ “Creating ongoing win-win
partnerships with our suppliers;” and FedEx’s “We are honest, ethical, and do the right thing”
are examples of __________.
a) process innovations
b) value-based management
c) values statements
d) mission statements

Ans: c
Bloom’s: Comprehension
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic
15. Organizations that actively develop, communicate, and enact shared values are practicing
__________.
a) functional management
b) value-based management
c) decentralized bureaucracy
d) bureaucratic control

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Value-based management supports a strong organizational culture.
AACSB: Analytic

16. Which of the following terms refers to the practices that create meaning and shared
community among employees?
a) Functional management
b) Workplace spirituality
c) Employee manipulation
d) Bureaucratic control

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Value-based management supports a strong organizational culture.
AACSB: Analytic

17. The process of taking a new idea and putting it into practice is called __________.
a) production
b) innovation
c) creativity
d) brainstorming
Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic

18. Creating better ways of doing things is called __________.

a) product innovation
b) process innovation
c) creativity
d) invention

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic

19. __________ result in new or improved goods and services.

a) Process innovations
b) Product innovations
c) Technology innovations
d) Business-model innovations

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic
20. At ABC Manufacturing, the process of turning ideas into products and methods that can
increase profits would be called __________.
a) virtual processing
b) organizational development
c) business model innovation
d) transformational change

Ans: c
Bloom’s: Comprehension
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic

21. Netflix turned movie rental into a subscription business; eBay earns revenues by connecting
users of its online marketplace; Google thrives on advertising revenues driven by ever-
expanding Web technologies. These are all examples of __________.
a) process innovations
b) virtual innovations
c) business model innovations
d) green innovations

Ans: c
Bloom’s: Application
Level: Medium
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Reflective Thinking

22. Which of the following types of innovations creates ways to reduce the carbon footprint of
an organization or its products?
a) Reverse innovation
b) Sustainable innovation
c) Commercializing innovation
d) Business model innovation

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Green innovations pursue and support the goals of sustainability.
AACSB: Analytic

23. Hyd Inc., a clinical research company, recently introduced videoconferencing. As a result,
employees are rarely required to commute to office. By doing this, Hyd Inc. has considerably
reduced their carbon emissions. This is an example of __________.
a) invention
b) product innovation
c) reverse innovation
d) green innovation

Ans: d
Bloom’s: Application
Level: Medium
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Green innovations pursue and support the goals of sustainability.
AACSB: Reflective Thinking

24. Gene pursues creative and innovative ways to solve social problems. Hence, we can say that
Gene participates in __________.
a) social responsibility
b) social entrepreneurship
c) green innovation
d) commercializing innovation

Ans: b
Bloom’s: Application
Level: Medium
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Social innovations seek solutions to important societal problems.
AACSB: Reflective Thinking

25. The innovation process begins with __________.

a) commercialization
b) invention
c) application
d) implementation

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Commercializing innovation turns new ideas into salable products.
AACSB: Analytic

26. __________ recognizes the potential for valuable innovations to be launched from lower
organizational levels and diverse locations, including emerging markets.
a) Reverse innovation
b) Forward innovation
c) Commercializing innovation
d) Virtual innovation

Ans: a
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Commercializing innovation turns new ideas into salable products.
AACSB: Analytic
27. Identify a primary characteristic of reverse innovation.
a) It is a type of business innovation driven by a social conscience.
b) It supports sustainability by creating ways to reduce the carbon footprint of an organization
or its products.
c) It creates products or services that become so widely used that they largely replace prior
practices and competitors.
d) It takes products and services developed in emerging markets and finds ways to use them
elsewhere.

Ans: d
Bloom’s: Comprehension
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Commercializing innovation turns new ideas into salable products.
AACSB: Analytic

28. __________ creates products or services that become so widely used that they largely
replace prior practices and competitors.
a) Reverse innovation
b) Basic research
c) Green innovation
d) Disruptive innovation

Ans: d
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Disruptive innovation uses new technology to displace existing practices.
AACSB: Analytic

29. Which of the following is a characteristic of highly innovative organizations?

a) They focus on having a highly bureaucratic organizational structure.
b) They tend to value creativity while moving people to responsible positions.
c) People from similar disciplines use the assembly line model to focus on problems.
d) The strategies of the organization target profitability.

Ans: b
Bloom’s: Comprehension
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Innovative organizations share many common characteristics.
AACSB: Analytic

30. __________ is the enemy of innovation.

a) Creativity
b) Bureaucracy
c) Experimentation
d) Imagination

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Innovative organizations share many common characteristics.
AACSB: Analytic

31. Which of the following terms can be described as the special creative units set free from the
normal organizational structure for the purpose of innovation?
a) Divisions
b) Skunkworks
c) Research labs
d) Business units

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Innovative organizations share many common characteristics.
AACSB: Analytic

32. Michelle is a manager at MDH Corporation. She tries different approaches to alter the
existing pattern of behavior among her employees to adapt to new situations. Michelle would
be considered a(n) _______.
a) opinion leader
b) ethics manager
c) status quo manager
d) change leader

Ans: d
Bloom’s: Application
Level: Medium
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizations and teams need change leaders.
AACSB: Reflective Thinking

33. If ABC, Inc. is focusing on a major and comprehensive redirection of the company, it is called
a(n) ___________ change.
a) innovative
b) planned
c) transformational
d) incremental

Ans: c
Bloom’s: Application
Level: Medium
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizational change can be transformational or incremental.
AACSB: Reflective Thinking
34. A(n) __________ tweaks and nudges people, systems, and practices to better align them
with emerging problems and opportunities.
a) transactional change
b) incremental change
c) improvisational change
d) transformational change

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizational change can be transformational or incremental.
AACSB: Analytic

35. Nicole is a manager at N.E.W. Corporation. In order to improve performance, she bends and
adjusts the existing ways of performance improvement techniques. Nicole is using what type of
change?
a) Transactional change
b) Incremental change
c) Improvisational change
d) Transformational change

Ans: b
Bloom’s: Application
Level: Medium
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizational change can be transformational or incremental.
AACSB: Reflective Thinking

36. A leader must do all of the following in order to lead transformational change EXCEPT:
a) establish a sense of urgency for change.
b) empower others to move change forward.
c) create and communicate a change vision.
d) order and hope that the change is implemented.
Ans: d
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizational change can be transformational or incremental.
AACSB: Analytic

37. Which of the following is true about status quo managers?

a) They encourage innovation.
b) They are not bothered by uncertainty.
c) They prefer change over monotony.
d) They feel threatened by change.

Ans: d
Bloom’s: Comprehension
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizations and teams need change leaders.
AACSB: Analytic

38. The main reason for the failure of major transformational change is:
a) establishing a sense of urgency for change.
b) bad planning.
c) that such efforts are intense and highly stressful.
d) bad implementation.

Ans: d
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizational change can be transformational or incremental.
AACSB: Analytic
39. According to Lewin, the correct order in the steps of change is:
a) freezing, refreezing, and changing.
b) unfreezing, changing, and refreezing.
c) refreezing, changing, and unfreezing.
d) changing, unfreezing, and refreezing.

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.
AACSB: Analytic

40. According to Lewin, which of the following steps prepares a system for change?
a) Refreezing
b) Unfreezing
c) Freezing
d) Thawing

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.
AACSB: Analytic

41. In the __________ phase of planned change, managers help others to develop, experience,
and feel a real need for change.
a) thawing
b) refreezing
c) freezing
d) unfreezing
Ans: d
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.
AACSB: Analytic

42. According to Kurt Lewin, the __________ phase of planned change focuses on stabilizing
the change with rewards, positive reinforcement, and resource support.
a) thawing
b) refreezing
c) freezing
d) unfreezing

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing.
AACSB: Analytic

43. __________ makes continual adjustments as changes are being implemented.

a) Incremental change
b) Transactional change
c) Improvisational change
d) Transformational change

Ans: c
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Times of complexity require improvising in the change process.
AACSB: Analytic
44. A(n) __________ strategy pursues change through formal authority or the use of rewards or
punishments.
a) rational persuasion
b) shared power
c) force-coercion
d) irrational

Ans: c
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

45. A(n) __________ strategy creates change through rational argument and empirical data.
a) rational persuasion
b) shared power
c) force-coercion
d) empirical force

Ans: a
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

46. A(n) __________ strategy pursues change by participation in assessing change needs,
values, and goals.
a) rational persuasion
b) shared power
c) force-coercion
d) empirical force

Ans: b
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

47. Which of the following strategies engages people in a collaborative process of identifying
values, assumptions, and goals from which support for change will naturally emerge?
a) Force-coercion strategy
b) Rational persuasion strategy
c) Shared power strategy
d) Political maneuvering strategy

Ans: c
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

48. The board of directors of Esten Inc. is planning an incremental change within the company.
In order to reduce employee resistance to the change, the management provides
encouragement, training, channels for communicating problems and complaints, and ways of
helping overcome performance pressures. Which of the following approaches has been used by
Esten to deal with the resistance to change?
a) Facilitation and support
b) Participation and involvement
c) Manipulation and cooptation
d) Explicit and implicit coercion

Ans: a
Bloom’s: Application
Level: Medium
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Change leaders identify and deal positively with resistance to change.
AACSB: Reflective Thinking

49. Jake is a change leader who is responsible for bringing about a transformational change in
his organization. He forces resisters to accept change by threatening them with a variety of
undesirable consequences if they do not cooperate. Which of the following approaches is used
by Jake to deal with the resistance to change?
a) Education and communication
b) Participation and involvement
c) Manipulation and cooptation
d) Explicit and implicit coercion

Ans: d
Bloom’s: Application
Level: Medium
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Change leaders identify and deal positively with resistance to change.
AACSB: Reflective Thinking

50. Which of the following is NOT a source of resistance to change?

a) Successful changes in the past
b) Fear of the unknown
c) Loss of control
d) Loss of face

Ans: a
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Change leaders identify and deal positively with resistance to change.
AACSB: Analytic

True/False

51. Research finds that if a company employs the right people, a strong corporate culture will
happen on its own.

Ans: False
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture shapes behavior and influences performance.
AACSB: Analytic

52. Core cultures are found in the underlying values of an organization.

Ans: True
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic

53. One of the challenges for managers is that values statements are easy to develop and write
but hard to live up to.
Ans: True
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic

54. Strong corporate cultures are easy to develop and quick to implement.

Ans: False
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture shapes behavior and influences performance.
AACSB: Analytic

55. Commercializing is the process of taking an idea and putting it into action.

Ans: False
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic

56. Using robots to improve manufacturing efficiency is an example of product innovation.

Ans: False
Bloom’s: Comprehension
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic

57. Creating innovative ways to solve pressing social problems is called social engineering.

Ans: False
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Social innovations seek solutions to important societal problems.
AACSB: Analytic

58. Special creative units set free from the normal organizational structure for the purpose of
innovation are called advanced development teams.

Ans: False
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Innovative organizations share many common characteristics.
AACSB: Analytic

59. In highly innovative organizations, staffing builds talent for innovation.

Ans: True
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Innovative organizations share many common characteristics.
AACSB: Analytic
60. Transformational change is more important to an organization than incremental change.

Ans: False
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizational change can be transformational or incremental.
AACSB: Analytic

61. The success of a rational persuasion strategy depends on having very good facts and
information and being able to communicate them well.

Ans: True
Bloom’s: Comprehension
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

Fill-in

62. __________ can be defined as a system of shared beliefs and values that develop within an
organization and guides the behavior of its members.

Ans: Organizational (or corporate) culture

Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture is the personality of the organization.
AACSB: Analytic
63. __________ is the process through which new members learn the culture of an
organization.

Ans: Socialization
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture shapes behavior and influences performance.
AACSB: Analytic

64. The __________ of an organization is found in the stories, heroes, rituals, and symbols that
are part of daily organizational life.

Ans: observable culture

Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The observable culture is what you see and hear as an employee or
customer.
AACSB: Analytic

65. The underlying values and assumptions that support the observable culture are part of the
__________ culture.

Ans: core
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic
66. __________ involves operating with a commitment to actively help develop, communicate,
and represent the shared values within an organization.

Ans: Value-based management

Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Value-based management supports a strong organizational culture.
AACSB: Analytic

67. Practices that create meaning and shared community among organizational members are
known as __________.

Ans: workplace spirituality

Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Value-based management supports a strong organizational culture.
AACSB: Analytic

68. The process of developing new ideas and putting them into practice is known as
__________.

Ans: innovation
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic

69. __________ is the process of turning new ideas into applications that generate profits.
Ans: Commercializing innovation
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Commercializing innovation turns new ideas into salable products.
AACSB: Analytic

70. __________ are individuals who take initiative to change the existing pattern of behavior of
another person or social system.

Ans: Change leaders

Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizations and teams need change leaders.
AACSB: Analytic

71. Leadership of __________ focuses on building upon existing ways of doing things with the
goal of doing them better in the future.

Ans: incremental change

Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizational change can be transformational or incremental.
AACSB: Analytic

72. In the force-coercion change strategy, the __________ tactic involves working indirectly to
gain special advantage over other people in order to force a change.

Ans: political maneuvering

Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

73. In the __________ strategy, change is pursued through empirical data and rational
judgment.

Ans: rational persuasion

Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

Essay

74. Define organizational culture, observable culture, and core culture.

Ans: Organizational culture is a system of shared beliefs and values that develops within an
organization and guides the behavior of its members. The observable culture is what you would
see in people’s behaviors and hear in their conversations when walking around an organization.
The core culture is found in the underlying values of an organization.
Bloom’s: Comprehension
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture is the personality of the organization.
Section Reference: The observable culture is what you see and hear as an employee or
customer.
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic

75. Define innovation and describe the three types of innovation.

Ans: Innovation is the process of taking a new idea and putting it into practice. The three types
of innovation are process innovation, product innovation, and business model innovation.
Process innovation is improving the way things are done. Product innovation is the
development and introduction of new or improved goods and services. Business model
innovation is finding new ways of making money for a firm.
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic

76. Explain the three phases of planned change developed by Kurt Lewin.

Ans: The three phases of planned change are unfreezing, changing, and refreezing.
Unfreezing is the first step in the process. It prepares an organization for change by convincing
others that there is a need for change.
Changing is the second step in the process. This is the actual implementation of the change.
Refreezing is the final step in the process. The intent of refreezing is to stabilize the change to
make it as long lasting as needed.
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing.
AACSB: Analytic

77. Name and define the three types of change strategies along with their corresponding power
bases.
Ans: The three types of change strategies are force-coercion, rational persuasion, and shared
power.
Force-coercion is a strategy that pursues change through formal authority or the use of rewards
or punishments. It uses the power bases of legitimacy, rewards, and punishments as the
primary inducements to change.
Rational persuasion seeks to bring about change through persuasion backed by special
knowledge, information, facts, and rational argument. It works best when the change agent has
credibility as an expert.
A shared power strategy engages people in a collaborative process of identifying values,
assumptions, and goals from which support for change will naturally emerge. It relies on
empowerment and participation.
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic

78. Do you support the management practice of manipulation and cooptation to deal with the
resistance to change in an organization? Give reasons.

Ans: Student answers will vary.

Bloom’s: Evaluation
Level: Hard
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Change leaders identify and deal positively with resistance to change.
AACSB: Reflective Thinking