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Chapter 13 Organizational Change: Stress, Conflict and Virtuality
1) Organizational changes typically affect the established lines of organizational
communication.
Answer: True
Rationale:
When an organization undergoes changes, such as restructuring or introducing new processes,
it can impact the established lines of communication. For example, reporting structures may
change, leading to new reporting relationships and communication channels.
2) An unstable organization with high capability to adapt is characterized by moderate
probability of success.
Answer: False
Rationale:
An unstable organization with high adaptability would likely have a higher probability of
success, as it can respond effectively to changes and challenges in its environment.
3) Organizational survival and growth are most probable when both stability and adaptation
are high within the organization.
Answer: True
Rationale:
Organizational survival and growth often require a balance between stability (to maintain
core functions and structures) and adaptation (to respond to changing external conditions).
High levels of both can enable an organization to thrive in a dynamic environment.
4) A change agent is an environmental factor that acts as a moderator for organizational
changes.
Answer: False
Rationale:
A change agent is typically a person or group within or outside the organization who
facilitates and drives organizational change, rather than an environmental factor.

5) Structural change emphasizes increasing organizational effectiveness by changing controls
that influence organization members during the performance of their jobs.
Answer: True
Rationale:
Structural change involves modifying the organizational framework, including roles,
responsibilities, and reporting relationships, to enhance organizational effectiveness. This can
include changing controls that influence how employees perform their jobs.
6) Structural factors of organizational effectiveness are any types of equipment or processes
that assist organization members in the performance of their jobs.
Answer: False
Rationale:
Structural factors of organizational effectiveness refer to aspects of the organizational
framework, such as its hierarchy, communication channels, and decision-making processes,
rather than specific equipment or processes used by employees.
7) Clarifying and defining jobs in an organization is an example of a people change.
Answer: False
Rationale:
Clarifying and defining jobs is an example of a structural change, as it involves modifying the
organizational framework related to roles and responsibilities, rather than directly impacting
individual employees.
8) The managerial grid is based on the premise that various managerial styles can be
described by means of managers' concern for cost and concern for technology.
Answer: False
Rationale:
The managerial grid, developed by Robert R. Blake and Jane Mouton, describes managerial
styles based on managers' concern for production (task orientation) and concern for people
(relationship orientation), rather than cost or technology.

9) Resistance to change can be lowered by not informing the employees about the change too
early.
Answer: False
Rationale:
Early communication and involvement of employees in the change process can actually help
reduce resistance to change, as it allows them to understand the reasons for the change and
provide input.
10) Making changes on a tentative basis increases resistance to organizational change.
Answer: False
Rationale:
Making changes on a tentative basis can actually reduce resistance to change, as it allows for
gradual implementation and adjustment based on feedback, rather than imposing sudden,
drastic changes.
11) Changes made in the organization with an aim to improve individual satisfaction are not
justified.
Answer: False
Rationale:
Changes aimed at improving individual satisfaction, such as providing better work-life
balance, recognition, and opportunities for personal development, can lead to higher
motivation and productivity among employees, benefiting the organization as a whole.
12) Stress is the bodily strain that an individual experiences as a result of coping with some
environmental factor.
Answer: True
Rationale:
Stress is indeed the body's response to environmental factors that require adaptation or
response. It can manifest as physical, mental, or emotional strain.

13) The highest level of worker performance and productivity is associated with the lowest
level of worker stress.
Answer: False
Rationale:
While some level of stress can be motivating and lead to increased performance, excessive
stress can have a negative impact, reducing productivity and performance.
14) Stress is seldom significantly reduced until the stressors causing it have been coped with
satisfactorily or withdrawn from the environment.
Answer: True
Rationale:
To reduce stress significantly, it is often necessary to address the underlying stressors, either
by coping with them effectively or removing them from the environment.
15) Contrary to popular belief, standardized jobs and procedures actually reduce stress as
compared to jobs that are classified as "interesting" by allowing more room for employee
creativity.
Answer: False
Rationale:
While standardized jobs and procedures may reduce stress in some ways (e.g., by providing
clear guidelines), they can also lead to boredom and lack of motivation, particularly for
employees who value creativity and variety in their work.
16) Organizational conflicts can result in a positive impact for the organization.
Answer: True
Rationale:
Organizational conflicts, when managed effectively, can lead to constructive outcomes such
as improved decision-making, increased creativity, and stronger relationships among team
members.

17) Compromise technique is inappropriate when the planned change is relatively minor and
the time to make an organizational change is limited.
Answer: False
Rationale:
The compromise technique can be appropriate in situations where a quick decision is needed,
even for relatively minor changes. It allows for a resolution that partially satisfies both
parties, which can be beneficial when time is limited.
18) Avoiding is a conflict management technique whereby managers simply ignore the
conflict.
Answer: True
Rationale:
Avoiding is a conflict management technique where the parties involved choose not to
address the conflict. While it may temporarily reduce tension, it does not resolve the
underlying issues.
19) Forcing a solution is an inappropriate approach in an emergency.
Answer: False
Rationale:
In an emergency, forcing a solution may be necessary to quickly resolve the situation and
prevent further harm. However, it should be used judiciously, as it can lead to resentment and
long-term negative consequences if overused.
20) Unlike most other ways of managing conflicts, resolving is used when managers perceive
that they are in a win-loss conflict with employees.
Answer: False
Rationale:
Resolving conflicts typically involves finding a mutually acceptable solution, rather than a
win-loss outcome. It focuses on addressing the underlying issues and finding common
ground, which can lead to a more sustainable resolution.

21) Changing an organization is the process of modifying an existing organization to increase
organizational effectiveness. Which of the following statements is true about such
modifications?
A) Such changes must use established lines of organizational communication.
B) The changes occur intermittently and are of a large magnitude.
C) Such modifications can involve any organizational segment.
D) The changes are made independent of the environment.
E) The modifications do not involve changes in organizational authority.
Answer: C
Rationale:
Organizational changes can involve any segment of the organization, including its structure,
processes, technology, and people. This flexibility allows organizations to address specific
areas that require improvement.
22) Which of the following is the most complete description of organizational effectiveness?
A) the extent to which an organization accomplishes its objectives
B) overall profitability of an organization or an organizational unit
C) ability of an organization to produce maximum output with a given input
D) the extent to which an organization's actions benefit society
E) the extent to which an organization's resources are used cost-effectively
Answer: A
Rationale:
Organizational effectiveness is a broad concept that encompasses the extent to which an
organization achieves its objectives, which includes but is not limited to financial
performance.
23) Hellriegel and Slocum's model shows the relative importance of ________ to
organizational survival.

A) external and internal environments
B) change and stability
C) innovation and conservativeness
D) trust and vigilance
E) change and risk-taking ability
Answer: B
Rationale:
Hellriegel and Slocum's model emphasizes the balance between change and stability as
critical factors for organizational survival. It highlights the need for organizations to adapt to
changing environments while maintaining stability in core functions.
24) Which of the following is depicted in a model developed by Hellriegel and Slocum?
A) importance of stress and efficiency to organizational survival
B) importance of change and stability to organizational survival
C) importance of finances and production to organizational survival
D) importance of attitudes and behaviors to organizational survival
E) importance of training and motivation to organizational survival
Answer: B
Rationale:
Hellriegel and Slocum's model focuses on the importance of balancing change and stability
for organizational survival. It emphasizes that organizations need to adapt to external changes
while maintaining stability in key areas.
25) Alterx Technologies International Inc., a technology solutions company, provides
managed technology solutions to small and medium-sized businesses. The company is
planning to bring about substantial changes in its operations. However, the company
understands some degree of stability is also a prerequisite for long-term organizational
success. Which of the following will provide Alterx the highest probability of growth and
survival?

A) high acceptability and accountability
B) high stability and adaptability
C) high credibility and capability
D) high mobility and plausibility
E) high visibility and profitability
Answer: B
Rationale:
High stability ensures that the organization can maintain its core functions and structures,
while high adaptability allows it to respond effectively to changes and challenges in its
environment, providing the best chance for growth and survival.
26) The probability of organizational survival and growth declines when ________.
A) visibility is low
B) credibility is high
C) accountability is high
D) mobility is low
E) stability is low
Answer: E
Rationale:
Low stability can make it difficult for an organization to maintain its operations and respond
to changes, reducing its probability of survival and growth.
27) Organizational effectiveness depends primarily on activities centering around three
classes of factors. The factors are ________.
A) data orientation, people, and technology
B) people, structure, and visibility
C) people, technology, and structure

D) structure, procedures, and people
E) structure, technology, and money
Answer: C
Rationale:
Organizational effectiveness is primarily influenced by the interactions between people,
technology, and structure within an organization. These factors determine how efficiently and
effectively an organization can achieve its objectives.
28) Value Innovations Inc. engages in selling computers and other electronic components
through telephone and Web orders. The company has decided to change some of its policies.
When recruiting employees, it will now focus primarily on the attitudes of individuals. Here,
the company is concentrating on a(n) ________ factor.
A) structural
B) technological
C) communication
D) people
E) informative
Answer: D
Rationale:
The company's focus on the attitudes of individuals in its recruitment process relates to
people factors, as it pertains to how individuals' attitudes can impact organizational
effectiveness and success.
29) Attitudes, leadership skills, and communication skills are ________.
A) structural factors
B) technological factors
C) communication factors
D) people factors

E) informative factors
Answer: D
Rationale:
Attitudes, leadership skills, and communication skills are all examples of people factors, as
they relate to the characteristics and behaviors of individuals within an organization.
30) Which of the following is an example of a structural factor that determines organizational
effectiveness?
A) technologies
B) leadership skills
C) employee attitudes
D) work procedures
E) equipment
Answer: D
Rationale:
Work procedures are an example of a structural factor that can influence organizational
effectiveness, as they define how tasks are organized and executed within an organization.
31) Value Innovations Inc. engages in selling computers and other electronic components
through telephone and Web orders. The company decides to change the existing policies and
procedures to fit the communication needs of the organization. This is an example of a(n)
________ change.
A) administrative
B) people
C) managerial
D) structural
E) technological
Answer: D

Rationale:
Changing policies and procedures to fit communication needs involves modifying the
organizational structure, which is a structural change aimed at improving organizational
effectiveness.
32) ________ changes emphasize increasing organizational effectiveness by changing
controls that influence organization members during the performance of their jobs.
A) Technological
B) People
C) Structural
D) Managerial
E) Administrative
Answer: C
Rationale:
Structural changes focus on modifying controls, such as policies and procedures, that
influence how organization members perform their jobs, with the goal of enhancing
organizational effectiveness.
33) Clarifying and redefining jobs within an organization is an example of a(n) ________
change.
A) technological
B) people
C) structural
D) essential
E) administrative
Answer: C
Rationale:

Clarifying and redefining jobs involves modifying the organizational structure to improve job
roles and responsibilities, making it a structural change.
34) The CEO of a company decides to introduce decentralization to help the organization
exercise greater control over its subunits and increase employee motivation. This is an
example of a(n) ________ change.
A) people
B) administrative
C) technological
D) managerial
E) structural
Answer: E
Rationale:
Introducing decentralization involves changing the organizational structure to give subunits
more control, which is a structural change.
35) A structural change ________.
A) works by changing controls that influence organization members
B) ensures appropriate functioning of technology
C) develops the skills of the people
D) increases the division of labor
E) makes the change appealing to employees
Answer: A
Rationale:
Structural changes focus on modifying controls that influence organization members, such as
policies and procedures, to improve organizational effectiveness.
36) Which of the following is a type of organizational change that emphasizes modifying
certain aspects of organization members to increase organizational effectiveness?

A) people change
B) structural change
C) administrative change
D) managerial change
E) behavioral change
Answer: A
Rationale:
People change involves modifying aspects of organization members, such as their attitudes
and behaviors, to improve organizational effectiveness.
37) Which of the following terms refers to the process of people change?
A) organizational planning
B) organizational communication
C) institutional design
D) resource mobilization
E) organization development
Answer: E
Rationale:
Organization development refers to the process of people change, focusing on improving
organizational effectiveness through changes in attitudes, behaviors, and processes.
38) Grid organization development technique is commonly used for ________.
A) changing people in organizations
B) designing structural changes
C) evaluating structural changes
D) evaluating technical changes
E) changing business processes

Answer: A
Rationale:
Grid organization development technique is used for changing people in organizations,
focusing on improving their effectiveness and performance.
39) The managerial grid proposes that various managerial styles can be described by a
manager's concern for ________.
A) quantity and quality
B) production and people
C) power and acceptance
D) profit maximization and revenue maximization
E) customers and company
Answer: B
Rationale:
The managerial grid proposes that managerial styles can be described based on a manager's
concern for production (task orientation) and people (relationship orientation).
40) Which of the following styles of management involves exertion of minimum effort to get
the required work done?
A) 9,9
B) 9,1
C) 5,5
D) 1,1
E) 1,9
Answer: D
Rationale:
The 1,1 style of management in the managerial grid involves minimal concern for both
production and people, indicating minimum effort to get work done.

41) What score in the managerial grid is associated with the ideal managerial style?
A) 9,9
B) 1,1
C) 9,1
D) 1,9
E) 5,5
Answer: A
Rationale:
The ideal managerial style, according to the managerial grid, is represented by a score of 9,9,
which indicates a high concern for both production (task orientation) and people (relationship
orientation).
42) What does a managerial grid score of 9,1 indicate?
A) Manager is effective in satisfying relationships and is less concerned about production.
B) Manager is highly concerned about production though he ignores the people aspects of
work.
C) The manager maintains a balance between the necessity to perform work and employee
morale.
D) The manager derives superior performance from employees who are highly dedicated.
E) Manager is neither effective in maintaining relations nor in effectively maintaining
production.
Answer: A
Rationale:
A score of 9,1 indicates that the manager is highly concerned about maintaining effective
relationships with employees but is less concerned about production.
43) Robert, the operations manager of a manufacturing company, gives adequate attention to
the needs of his employees and maintains a friendly organizational atmosphere. However, he

is often criticized for not meeting the performance goals and poor quality of products.
Robert's managerial style is likely to be associated with what score in the managerial grid?
A) 9,9
B) 1,1
C) 9,1
D) 1,9
E) 5,5
Answer: D
Rationale:
Robert's managerial style, focusing more on people than production, aligns with a score of
1,9 on the managerial grid.
44) Albert believes adequate organizational performance is possible by balancing the need to
get good quality work done on the one hand and addressing the needs of his employees on the
other. What score in the managerial grid is most closely associated with Albert's managerial
style?
A) 1,1
B) 5,5
C) 1,9
D) 9,1
E) 9,9
Answer: B
Rationale:
Albert's belief in balancing task orientation and relationship orientation aligns with a score of
5,5 on the managerial grid, which represents a balanced approach to management.
45) An organization decides to implement a supply chain management system to increase the
efficiency of its operations. A group of employees resist the implementation. Which of the
following could be the most probable reason for their resistance?

A) The change would increase the productivity as well as responsibility of most members of
the group.
B) The group fears that the implementation would adversely affect their role in the
organization.
C) Implementation of a supply chain management system would lead to a change in
organizational hierarchy.
D) Implementation of supply chain management system often leads to blockage of crucial
information.
E) Supply chain management system cannot be used to manage the internal operations of a
company.
Answer: B
Rationale:
Resistance to change often stems from fear of the unknown or fear of how the change will
impact one's role within the organization. In this case, employees may resist the
implementation of a new system because they fear it will adversely affect their roles.
46) Which of the following is a common reason behind employee resistance to change?
A) Most individuals are open to experience.
B) Individuals fear some type of personal loss.
C) Most changes involve changes in organizational hierarchy.
D) Faith in the status quo is limited.
E) Most organizations maintain high power distance.
Answer: B
Rationale:
Fear of personal loss, such as loss of job security or status, is a common reason behind
employee resistance to change.
47) When organization members remain oriented more to the past than the future in spite of
the changes already initiated ________.

A) the situation calls for more changes in the organization
B) the existing status quo should be maintained
C) the organization is highly likely to achieve its goals without further changes
D) the members are highly committed toward the long-term goals of the organization
E) the organization has a strong culture
Answer: A
Rationale:
When organization members remain oriented more to the past than the future despite
changes, it suggests that additional changes may be necessary to shift their focus towards the
future and align with organizational goals.
48) The bodily strain that an individual experiences as a result of coping with some
environmental factor is called ________.
A) stress
B) conflict
C) anger
D) aggression
E) denial
Answer: A
Rationale:
Stress is the bodily strain that individuals experience as a result of coping with environmental
factors such as work demands, personal life, or other stressors.
49) From a worker-performance standpoint, stress is most favorable when ________.
A) stress levels are extremely high
B) stress levels are extremely low
C) related stressors are temporary

D) stress levels are associated with increased aggression
E) stress levels are neither too high nor too low
Answer: E
Rationale:
Moderate levels of stress, neither too high nor too low, are considered most favorable for
worker performance. Moderate stress can enhance motivation and performance, while high or
low levels of stress can be detrimental.
50) Which of the following is an observable symptom of undesirably high stress levels?
A) low to moderate levels of anxiety
B) higher energy levels
C) reduced work hours
D) working without many breaks
E) increased aggression
Answer: E
Rationale:
Increased aggression is an observable symptom of undesirably high stress levels. Stress can
manifest in various physical, emotional, and behavioral symptoms, including aggression.
51) What type of demand is a stressor that causes people to feel stress?
A) environmental demand
B) psychological condition
C) internal feeling
D) emotional response
E) disturbing reflection
Answer: A
Rationale:

Environmental demands refer to external factors or stressors in the environment that can
cause stress, such as workload, time pressure, and organizational change.
52) Workplace bullying refers to ________.
A) individuals being isolated or excluded socially and having work efforts devalued
B) keeping employee salaries and benefits much below industry standards
C) promoting organizational conflicts and in-fights to increase performance
D) hiring more employees than what is required to run the business
E) recruiting employees who are incapable or under-qualified to perform certain jobs
Answer: A
Rationale:
Workplace bullying involves actions that isolate or exclude individuals socially, devalue their
work efforts, and create a hostile work environment.
53) Which of the following strategies is likely to be most useful in reducing organizational
stress?
A) increasing power distance in the organization
B) promoting employees based on objective criteria such as years of experience
C) modifying the basic values of organizational culture
D) making the organizational environment more informal
E) establishing vertical decision-making procedures
Answer: D
Rationale:
Making the organizational environment more informal can help reduce stress by fostering
open communication, collaboration, and a supportive atmosphere.
54) Employees often experience considerable stress when they do not know what the next
step in their professional lives might be or when they might take it. Which of the following
could be the best solution to this problem?

A) creating standardized jobs and define procedures
B) designing and operating career counseling programs
C) promoting creativity and innovation at the workplace
D) modifying the basic norms of organizational culture
E) making the organizational climate more formal
Answer: B
Rationale:
Career counseling programs can help employees clarify their career goals, understand their
options, and develop a plan for their professional development, reducing uncertainty and
stress.
55) ________ is defined as the struggle that results from opposing needs or feelings between
two or more people.
A) Change
B) Apathy
C) Conflict
D) Stress
E) Avoidance
Answer: C
Rationale:
Conflict arises from opposing needs, desires, or feelings between individuals or groups and
can occur in various contexts, including work settings.
56) Which of the following is a conflict resolution strategy where parties to the conflict settle
on a solution that gives both of them part of what they wanted?
A) compromising
B) negotiating
C) avoiding

D) resolving
E) adjudication
Answer: A
Rationale:
Compromising involves finding a middle ground where each party gives up something to
reach a solution that partially satisfies both parties.
57) Which of the following is a key characteristic of the compromising strategy used to
resolve conflicts?
A) a solution acceptable to all parties
B) low involvement of managers and supervisors
C) implementing orientation programs
D) use of legitimate power and authority
E) complex procedures for decision making
Answer: A
Rationale:
The key characteristic of compromising is finding a solution that is acceptable to all parties
involved in the conflict, even if it requires some concessions.
58) A manager wants to implement some changes in the working hours of employees. Two
groups of workers oppose this decision and have contrasting opinions. The manager feels
arriving at a solution that will be acceptable to both parties is impossible. Which of the
following strategies is best suited to handle this conflict?
A) forcing
B) deflecting
C) avoiding
D) resolving
E) compromising

Answer: E
Rationale:
Compromising is the best strategy in this situation because it allows both groups to make
concessions and reach a solution that partially satisfies their needs.
59) Identify a situation where compromising is highly appropriate.
A) The planned change is relatively minor and time is limited.
B) Management feels that all conflict is bad.
C) Employee opinions are vastly diverse and complex.
D) Management has to implement an emergency change.
E) Management wants to arrive at a win-win solution.
Answer: A
Rationale:
Compromising is appropriate when the planned change is relatively minor and time is
limited, as it allows for a quick resolution that partially satisfies both parties.
60) ________ is a conflict management technique where managers simply ignore the conflict.
A) Resolving
B) Compromising
C) Cooperating
D) Avoiding
E) Conciliating
Answer: D
Rationale:
Avoiding is a conflict management technique where managers choose not to address the
conflict, which can sometimes be appropriate for minor conflicts or when immediate
resolution is not necessary.

61) The avoiding technique is generally appropriate when ________.
A) the planned change is extensive and time is limited
B) an emergency change has to be made in the organization
C) a win-win solution is essential to the organization
D) the parties involved in the conflict are powerful
E) the potential conflict will not limit organizational goal attainment
Answer: E
Rationale:
Avoiding is appropriate when the potential conflict is not critical to achieving organizational
goals and resolving it immediately is not necessary.
62) The HR manager of Axon Limited finds that the personnel in the marketing department
are a continual source of conflict because they do not accept and adapt to changes. As a result
of this, the manager ignores their views when he has to make changes. This strategy could be
appropriate when ________.
A) the planned change is relatively critical to the organization
B) the change has strategic impacts on the employees
C) a win-win solution is essential to the organization
D) the HR department is powerful and crucial to the organization
E) the potential conflict will not limit organizational goal attainment
Answer: E
Rationale:
Ignoring the views of the marketing department may be appropriate if their resistance to
change does not significantly impact the organization's ability to achieve its goals.
63) ________ is a technique for managing conflict in which managers use their authority to
resolve conflicts.
A) Resolving

B) Compromising
C) Negotiating
D) Avoiding
E) Forcing
Answer: E
Rationale:
Forcing involves using authority or power to resolve conflicts, often by imposing a solution
on the conflicting parties.
64) William, the CEO of a leading electronic equipment manufacturer, decides to implement
a new performance appraisal system in the organization. The new system faces stiff resistance
from the employees. William, however, uses his authority to implement the system. Identify
the conflict management system used here.
A) forcing
B) negotiating
C) avoiding
D) resolving
E) adjudication
Answer: A
Rationale:
William is using his authority to impose the new performance appraisal system despite
employee resistance, which is an example of the forcing technique.
65) Which of the following conflict management techniques is best suited to make an
emergency change in an organization?
A) resolving
B) compromising
C) negotiating

D) avoiding
E) forcing
Answer: E
Rationale:
Forcing is best suited for making an emergency change because it allows for quick resolution
by using authority or power to implement the change.
66) Identify a major advantage of using forcing technique to resolve conflicts.
A) Forcing is a fast method for implementing critical changes.
B) It is considered the best strategy to handle complex conflicts.
C) It can have a win-win orientation if the manager is skillful.
D) Forcing is the best strategy when the planned change is relatively minor.
E) The solution obtained will be acceptable to the majority of employees.
Answer: A
Rationale:
Forcing is advantageous for resolving conflicts quickly, which is useful for implementing
critical changes or addressing urgent issues.
67) Which of the following techniques of managing conflict involves working out the
differences between managers and employees?
A) resolving
B) averting
C) compromising
D) avoiding
E) forcing
Answer: A
Rationale:

Resolving conflict involves working out differences between managers and employees to
reach a mutually acceptable solution.
68) Which of the following conflict resolution techniques assumes that some conflicts are
win-win conflicts?
A) avoiding
B) compromising
C) forcing
D) negotiating
E) resolving
Answer: E
Rationale:
Resolving conflict assumes that some conflicts can be win-win, where both parties benefit
from the resolution.
69) Jacob believes most conflicts are win-win conflicts. He always attempts to overcome
them by working out differences with employees. Which of the following conflict
management techniques is preferred by Jacob?
A) resolving
B) compromising
C) cooperating
D) avoiding
E) conciliating
Answer: A
Rationale:
Jacob prefers the resolving technique, which aims to find solutions that benefit both parties,
making it suitable for win-win conflicts.

70) Which of the following is a valid observation about the resolving technique used to
manage conflicts?
A) Managers are not involved in the conflict resolution process.
B) It tends to assume managers and employees are in a win-lose conflict.
C) It is best suited when an immediate change has to be made.
D) Managers pinpoint differences regarding change that exist between themselves and
employees.
E) It is the only method suitable for managing minor conflicts.
Answer: D
Rationale:
The resolving technique involves managers working with employees to identify and resolve
differences regarding change, aiming for a mutually acceptable solution.
71) Which of the following is characterized by the most extensive degree of virtualization?
A) virtual meeting
B) virtual training
C) virtual team
D) virtual corporation
E) virtual group
Answer: D
Rationale:
A virtual corporation is characterized by the most extensive degree of virtualization as it
represents a fully virtualized organizational structure that operates primarily or entirely
online.
72) Which of the following is characterized by groups of employees formed by managers?
A) virtual meeting
B) virtual training

C) virtual team
D) virtual corporation
E) virtual group
Answer: C
Rationale:
A virtual team is characterized by groups of employees formed by managers to work together
remotely, often using digital communication tools.
73) ________ is a training process that goes beyond the boundaries and structure of
traditional training.
A) Virtual training
B) Virtual teams
C) Virtuality
D) Virtual corporation
E) Virtual organization
Answer: A
Rationale:
Virtual training is a training process that extends beyond the boundaries and structure of
traditional training, often using online platforms and digital tools.
74) ________ workers have fixed, traditional offices and work schedules but sometimes work
at home.
A) Fully mobile
B) Home-based
C) Tethered in office
D) Occasional telecommuting
E) Hoteling

Answer: D
Rationale:
Workers who are occasionally telecommuting have fixed, traditional offices and work
schedules but sometimes work from home.
75) Which of the following alternative work arrangements is characterized by the least
amount of mobility?
A) hoteling
B) tethered in the office
C) home based
D) occasional telecommuting
E) working out of a car
Answer: D
Rationale:
Occasional telecommuting is characterized by the least amount of mobility among the options
listed, as employees only work from home occasionally.
76) Which of the following is an alternative work arrangement where workers come into the
traditional office frequently, but because they are not always physically present, they are not
allocated permanent office space?
A) flextime working
B) hoteling
C) occasional telecommuting
D) tethered in office
E) home based
Answer: B
Rationale:

Hoteling is an alternative work arrangement where workers come into the traditional office
frequently but are not allocated permanent office space.
77) Catherine works as a training specialist at a retail organization. She is not always
physically present in the office though she works from other locations using a portable
computer. She usually informs her colleagues in advance when she decides to come in and
work from the office. This work arrangement is an example of ________.
A) fully mobile working
B) tethered in office arrangement
C) home-based working
D) hoteling
E) occasional telecommuting
Answer: D
Rationale:
Catherine's work arrangement, where she is not always physically present in the office but
uses a portable computer to work from other locations and informs her colleagues when she
decides to come into the office, is an example of hoteling.
78) Which of the following is a trait of "tethered in office" work arrangement?
A) Employees are not allocated permanent office spaces.
B) Employees remain in the office most of the time and work from home occasionally.
C) Employees are allowed to move out of the office for a few days or weeks.
D) Employees are expected to report to the office on a regular basis though they have
mobility.
E) Employees report to the office only occasionally though they obey all the organizational
norms.
Answer: D
Rationale:

Tethered in office workers are expected to report to the office on a regular basis, though they
have mobility.
79) Workers who have some mobility but are expected to report to the office on a regular
basis are called ________.
A) fixed workers
B) hoteling workers
C) tethered workers
D) home based
E) mobile workers
Answer: C
Rationale:
Tethered workers have some mobility but are expected to report to the office on a regular
basis.
80) An organization is conducting a survey and has a team that collects primary data from
consumers by interviewing them and getting them to fill out questionnaires. The team
members report to work regularly, get the day's assignment, and come back to the office in
the evenings to discuss the day's findings and plan for the next day. Which of the following
work arrangements is being used by this organization?
A) flextime working
B) hoteling
C) occasional telecommuting
D) tethered in office
E) fully mobile working
Answer: D
Rationale:

The work arrangement described, where team members report to work regularly, get
assignments, and return to the office in the evenings, is an example of tethered in office
arrangement.
81) Identify an advantage of establishing virtual offices.
A) They provide better opportunities for employee socialization.
B) They help the organization build the desired corporate culture.
C) Virtual offices enable cost reduction.
D) Virtual offices enhance management control.
E) They help the organization reduce the dependence on technology.
Answer: C
Rationale:
Virtual offices enable cost reduction by eliminating the need for physical office space,
utilities, and other associated costs.
82) What is the most commonly cited reason for designing and implementing virtual offices?
A) better customer service
B) more mobile
C) increased productivity
D) less employee drama
E) cost reduction
Answer: E
Rationale:
Cost reduction is often the most commonly cited reason for designing and implementing
virtual offices, as they eliminate the need for physical office space and associated costs.
83) NTS Publishing, Inc., together with its subsidiaries, publishes print and electronic
products that provide content and digital solutions to customers worldwide. The company

decides to make use of virtual teams. Which of the following could be a possible advantage
of this?
A) Use of virtual teams would help them reduce the costs.
B) This would help the company enhance its corporate culture.
C) Virtual teams would help them enhance management control.
D) The organization can reduce the dependence on technology by doing this.
E) The company can improve its employee socialization process.
Answer: A
Rationale:
One possible advantage of using virtual teams is cost reduction, as virtual teams eliminate the
need for physical office space and associated costs.
84) Which of the following is a challenge associated with managing virtual offices?
A) Virtual offices make it more difficult to build desired corporate culture.
B) Virtual offices increase the cost of operations.
C) It is suitable only for senior employees.
D) It markedly reduces employee productivity.
E) Employee mobility cannot be achieved effectively by using virtual offices.
Answer: A
Rationale:
One challenge associated with managing virtual offices is that they can make it more difficult
to build the desired corporate culture, as employees are not physically present in a shared
office space.
85) Briefly explain the dynamics of organizational change and stability.
Answer: In addition to organizational change, some degree of stability is a prerequisite for
long-term organizational success. Organizational survival and growth are most probable
when both stability and adaptation are high within the organization. The organization without

enough stability to complement change is at a definite disadvantage. When stability is low,
the probability of organizational survival and growth declines. Change after change without
regard for the essential role of stability typically results in confusion and employee stress.
86) Explain the concept of grid organizational development (grid OD).
Answer: People change (one of the three categories of change) is often referred to as
organization development. Grid organizational development is a commonly used technique
based on a theoretical model called the managerial grid. The managerial grid is based on the
concept that various management styles can be described in terms of concern for people and
concern for production. It is assumed that the 9,9 position on the grid, a high concern for
people and a high concern for production, is the best point to work toward. The purpose of
grid OD is to change organization managers so they will use the 9,9 management style.
87) How do most people react to change and why? What can managers do about this
reaction?
Answer: When confronted with organizational change, most individuals resist change.
Behind this resistance often lies the fear of some personal loss, such as the loss of power,
prestige, social and working relationships. To ensure the success of needed changes,
managers must be able to reduce the resistance to change. Avoiding surprises can partially do
this. People often need time to evaluate a proposed change before implementation. Another
managerial strategy is to promote a real understanding of the change to reduce the fear of the
change. Provide the employees with all needed information on the change. Managers should
also set the stage for the change. Managers, including top and middle management, need to
convey a positive attitude toward the change. Whenever possible, make the change a tentative
change. Allowing a change to be processed through a trial period decreases resistance to the
change and increases the probability of acceptance of the change.
88) Briefly describe the four strategies used to manage conflicts.
Answer: Compromising: One conflict management strategy a manager can use is to
compromise, which means the parties to the conflict settle on a solution that gives both of
them part of what they wanted. Managers who choose to compromise generally feel that a
solution completely acceptable to everyone would be difficult to reach and they would rather
not force someone to accept a completely disagreeable choice.

Avoiding: Some managers adopt the avoiding technique as a means to manage conflict.
Avoiding is a conflict management technique whereby managers simply ignore the conflict.
This strategy makes sense if you assume that all conflict is bad.
Forcing: Rather than avoiding conflict, a manager may want to try a more direct approach to
managing conflict. Forcing is a technique for managing conflict in which managers use
authority to declare that conflict is ended. In essence, managers declare that conflict is ended
because they have the authority to do so.
Resolving: Perhaps the most direct — and sometimes the most difficult — way to manage
conflict is to work out the difference(s) between managers and employees. This conflict
management strategy is called resolving. The manager initiates this technique by pinpointing
differences related to organizational change that exists between managers and employees.
Resolving assumes that many conflicts are win-win conflicts, in which the resolution can
leave both management and employees achieving desirable outcomes and correspondingly,
helping the organization maximize organizational success.
89) A manufacturing company is at significant competitive disadvantage due to the lack of
necessary automation. The company has not been able to implement the automated system
due to opposition from a group of workers. What strategy can be used here to implement
automation?
Answer: Forcing is a technique for managing conflict in which managers use authority to
declare that conflict is ended. Forcing a solution is a relatively fast way to manage a conflict,
and it may be the best approach in an emergency. In this situation forcing could be the best
way to implement the change considering the importance of the situation. Management could
also use avoiding strategy if the opposition is from a weaker group.

Test Bank for Modern Management: Concepts and Skills
Samuel C. Certo, S. Trevis Certo
9780133059922, 9780133254105, 9780135983546

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