MGMT 625 Change Management

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FINAL TERM EXAMINATION 2010

MGMT625- Change Management (Alt. code=HRM625)
QUESTION: Identify the year in which Beckhard & Harris proposed a

model of change management process.
1957
1967
1977
1987
QUESTION: In which of the following year, Kurt Lewin Model was

developed?
1949
1950
1951
1952
QUESTION:When did Baird & Meshoulam describe organization life

cycle model?
1988
1978
1968
1958
QUESTION: According to which of the following author, organizational

development is driven by some generic code or prefigured program within
the developing entity?
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Lewin
Nisbet
Poole
Miller
QUESTION: Change fails not because organizations are rigid and

inflexible but they are impressively imaginative. Who gave this view?
March
Hannan
Freeman
Taylor
QUESTION: Identify a scholar who defined specie as “a form of

organization that exists through generations of individual organizations
which are members of the specie".
A. Weber
B. Hannan
C. McKelvey
D. Taylor
QUESTION: According to which of the following “dialectical theory rests

on the assumption that the organizational entity exist in a pluralistic world of
colliding events, forces, or contradictory values that compete with each other
for domination and control”?
Aristotle
Van de Ven
Marx
Plato
QUESTION: “If we could understand the ways in which individuals were

motivated we could influence them by changing the components of that
motivation process.” Which of the following experts gave above mentioned
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concept?
Edgar Schein
Alvin Toffler
Charles Handy
Peter Senge
QUESTION: Which of the following introduced concept of logical

instrumentalism?
Kurt Lewin
James Brian Quinn
Edgar Schein
Michael Peter Senge
QUESTION: An approach in which an external consultant recommends a

solution to organizational problems according to technical view point, is
known as:
Expert system approach
Devil’s advocate approach
Dialectical inquiry approach
External analysis approach
QUESTION: Which of the following is considered as best decision

making approach?
A. Expert system approach
B. Devil’s advocate approach
C. Dialectical inquiry approach
D. External analysis approach
Question No: 14 ( Marks: 1 ) - Please choose one

Identify an approach in which the role of managers’ behavior is destructive
rather than constructive.
► Expert system approach
► Devil’s advocate approach
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► Dialectical inquiry approach
► External analysis approach
QUESTION: Identify an approach in which second group gives an alternate

plan.

QUESTION: Which of the following is an organizational culture in which

teams are formed to solve particular problems?
Power culture
Role culture
Task culture
Person culture
QUESTION: Which of the following is one of the dimensions of Greiner’s

Model?
Age of organization
Development of organization
flexibility of organization
Adaptability of organization
QUESTION: Identify an approach in which two different groups assigned

to the problem and each group evaluates the other group’s alternatives.
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QUESTION: Organizations reflect type of negotiated order which refers to:
Learning
Conflict
Adaptation
Flexibility
QUESTION: Which of the following is NOT a characteristic of the period

of direction phase?
Communication becomes more formal and impersonal

Incentives, budgets, and work standards are adopted
Accounting systems for inventory and purchasing are introduced
Communication is frequent and informal
QUESTION: When managers make rational choice under certain

conditions of risk and cost-benefit analyses. This process refers to:
Rule following
Problem solving
Decision making
Conflict resolving
QUESTION: According to Greiner, in his five phases of growth model,

what type of crisis follows phase 2 (growth through direction)?
Crisis of control
Crisis of Autonomy
Crisis of leadership
Crisis of growth
QUESTION: Which of the following is based on the assumption that

change proceeds toward a goal or end state?
Life cycle theory

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Teleological theory
Dialectical theory
Evolutionary theory
QUESTION: According to Levinthal, an incremental change in an

organizational routine in response to feedback about outcome refers to:
Learning
Adaptation
Selection
Retention
QUESTION: Joint venture is an example of which of the following?
Internal development
External development
Incremental development
Gradual development
QUESTION: In psychology the observation that people often do (or believe)

things because many other people do (or believe) the same is called
_____________.
A. Band wagon effect

B. Benchmarking
C. Fashion
D. Trend
QUESTION: Which of the following contexts would most suit a

transformational leader?
A. An organization that is in trouble

B. An organization that is performing well
C. An organization in a stable environment
D. An organization in a mature industry
QUESTION: Which of the following is NOT a characteristic of the period of

creativity phase?
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Communication is frequent and informal
Long hours of work are rewarded by modest salaries
Control of activities comes from immediate marketplace feedback
QUESTION:Which of the following refers to birth of an organization

according to Baird & Meshoulam?
Organization initiation
Functional growth
Controlled growth
Strategicinte gration
QUESTION: “Sunk cost” is a source of which of the following?
Structural inertia
Natural selection
Adaptation
Variation
QUESTION:Which of the following is Not an internal source of structural

inertia?
Sunk cost
Communication problem
Organizational politics
Technological advancement
QUESTION: Which of the following is an application of evolutionary

theories?
Introduction of new management system

Strategic Assumptions Analysis
Quality management movement
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QUESTION: Which of the following terms describes "selection of strategies

from among alternative courses of action, both for the enterprise as a whole
and for every department or section"?
Planning
Organizing
Leading
Controlling
QUESTION: Identify the minimum requirement of entities by dialectical

theories to fill the roles of thesis and antithesis
Five
Four
Three
Two
QUESTION: Mergers and acquisitions are examples of which of the

following?
Gradual development
QUESTION: Which of the following theories establishes that “Goal is

considered as a final cause for guiding movement of an entity”?
Life cycle theory

Teleological theory
Dialectical theory
Evolutionary theory
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QUESTION: All of the following are time-consuming methods for dealing
with resistance to change, EXCEPT:
Stress management
Employee involvement
Learning
Coercion
QUESTION: Which of the following is a function of attitude?

Routine
Habit
Behavior
Policy
QUESTION: Identify a theory according to which environment selects and

decides the validity of organization form, process and practices to become
effective and efficient.
Life cycle theory

Teleological theory
Dialectical theory
Evolutionary theory
QUESTION: Which of the following defines a learning that occurs when, in

addition to detection and correction of errors, the organization questions and
modifies its existing norms, procedures, policies and objectives?
Single-loop learning
Double-loop learning
Surface learning
Deep learning
QUESTION: Which of the following terms describes "the tendency of

businesses, technologies, or philosophies to spread throughout the world"?
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Internationalization
Globalization
Localization
Glocalization
QUESTION: According to Beckhard & Harris three stages of change

management process include:
Unfreeze,change and refreeze

Current state, transition state and future state
Pre-contemplation,
contemplation and action
Anticipation, confirmation and culmination
QUESTION: Kurt Lewin's three-step model for successful change in

organizations includes:
Unfreeze,move and freeze

Unfreeze, change and refreeze
Change,refreeze and unfreeze
Refreeze,move and unfreeze
QUESTION: When organizational systems and structures are realigned with

the desired behaviors, this is referred to as:
Refreezing
Unfreezing
Feedback
Resistance
QUESTION: Which of the following is NOT a stage in Kurt Lewin's Model

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for Change?
Unfreeze
Change
Refreeze
Defrost
QUESTION: Which of the following is NOT a weakness of devil’s

advocacy approach?
It gives no solution
It demoralizes managers
It makes managers’ behavior destructive
It focuses on what is going wrong
QUESTION: Which of the following is the third stage of “Miller &

Freisen Model”?
1-Birth
2-Growth
4- Revival
3-Maturity
QUESTION: Which of the following is the fourth stage of “Miller &

Freisen Model”?
Birth
Growth
Revival
Maturity
Strategic change
Process change
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Generative change
Adaptive change
QUESTION: Which of the following is an organizational culture in which

authority concentrates among few individuals?
Power culture
Role culture
Task culture
Person culture
QUESTION: Which of the following terms describes "the process of
planning, coordinating, and implementing changes to the information
processing production, distribution and system facilities"?
Change management
Management
Conflict management
Crisis management
QUESTION: In terms of organizational change, maintenance of the status

quo represents:
Stability
Opposition
Instability
Contradiction
QUESTION: “Model of strategic planning” is a part of which of the

following?
Life cycle theories

Teleological theories
Dialectical theories
Evolutionary theories
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QUESTION: Which of the following theories operate on a multiple entity?
Life cycle and teleological theories

Teleological and dialectical theories
Dialectical and evolutionary theories
Evolutionary and life cycle theories
QUESTION: When the new program gets merged with the existing
processes, it refers to:
Missionary phase
Modification phase
Maturity phase
Declining phase
QUESTION: Merger and acquisition is an example of which of the

following?
Strategic change
Process change
Generative change
Adaptive change
QUESTION: As an entity progresses through a necessary sequence of

stages or phases, which of the following depicts the process of change
in the entity?
Life cycle theory

Teleological theory
Dialectical theory
Evolutionary theory
QUESTION: Which of the following strategies refers to revolutionary

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types of change in terms of strategic management?
Gradual development
QUESTION: Which of these best describes restraining forces?

Unfreezing
Negotiation
Refreezing
Resistance to change
QUESTION: In McKinsey 7-S framework for business success, plans

for the allocation for a firm’s scarce resources over time to achieve
organizational goals refer to:
Strategy
Structure
System
Safety
QUESTION: 1. One of the advantages of a narrow span of control

is that:
a.Employees can take more Holidays

b.A manager can more easily communicate with employees
c. Feed back is no longer required from employees
d. Fewer appraisals need to be written each year.
QUESTION: A tall organization has:

a. A small number of managers with wide span of control
b. A small number of managers with narrow span of control
c. A largenumber of managers with wide span of control
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d. A large number of managers with narrow spans of control
QUESTION: Which of the following would you not expect

to find at an organization that possesses a very strong culture?
a. The company has a profound slogan that is proudly displayed

throughout the organization.
b. The organization provides an extensive training program for newly
hired employees.
c. The organization uses an in-depth selection process for all potential
job candidates.
d. The organization only engages newspaper advertisements to
fill vacant job positions.
QUESTION: Of the forces that shape the ethics of an

organization's managers, which one would be comprised of
government regulations, special interest groups, and global market
forces?
a. Organizational culture
b. Personal ethics
c. External stakeholder’s
d. Organizational systems
5. Organizational restructuring is an example of ________ change.

a. strategic
b. transformational
c. structural
d. incremental
QUESTION: “Changes should not be considered only in terms of the

process but should also be considered from historical, cultural and
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political features.” Above statement is given by:
a) Andrew M Pettigrew
b) Instane Berg
c) Philips Kotler
d) None of the above
QUESTION: -Outer context refers to all the given options except:

a) Economic environment
b) Competitive environment
c) Political environment
d) Corporate environment
QUESTION: The process of change refers to ———,——and ——

from the various interested parties.
a) Thinking, implementing and modifying
b) Action, reaction and interaction
c) Modernization, articulation and appreciation
d) Efforts, emotions and prayers
QUESTION: The process in the organization in turn depends upon

the following except:
a) Change management
b) Pattern through time
c) Formulation /implementation process
d) Political and cultural views of the firms
QUESTION: SOC is the abbreviation of:

a) Strategic and operational client
b) Strategic organizational change
c) Structural and operational control
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d) Sources of change
QUESTION: -This is stated to be the requirement of ISO certification

that that each and every member should know what their mission,
vision, and values are:
a) ISO 9000 series standards

b) ISO 14000 series standards
c) Both (a) and (b)
d) Malcon baldrige Awards
QUESTION: In recruitment the following policy (ies) is:

a) Whether to hire from within
b) Hire from market
c) Both (a) and (b)
d) None of the Above
QUESTION: ———— are objects, events, acts or people which

express more than their intrinsic context.
a) Habits
b) Values
c) Symbols
d) All of the above
QUESTION: Interview procedure that shows a mechanistic and

hierarchical organization is:
a) Formal interview
b) Informal interview
c) Longitudinal interview
d) One that is conducted with great care an didn’t depict
anything
QUESTION: More specific tactics of change which might be

employed to facilitate change process are:
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a) 4
b) 7
c) 3
d) 6
QUESTION: Three crucial determinants to make the change plan and
strategy effective are environmental, structural and —————.
a) Managerial style
b) managerial constraints
c) Management orientation
d) Infrastructure feasibility
QUESTION: Change in environment will be coupled with all except;
a) Change in services
b) Target the customer at some other market place
c) Change in stakeholders
d) Development of a new product.
QUESTION: If organization production strategy is based on quality

production then it should not go for ———— type of strategy.
a) Differentiation Specialty
b) cost leadership
c) cost volume
d) none of the above
QUESTION: prerequisites for organizational change according to

———— are motivating change, managing the transition and shaping
the political dynamics of change:
a) Nalder
b) Robert Waterman
c) Thomas Peters
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d) Bullock and Batten
QUESTION: The organization dealing in many business, estimates

growth potential and losses for its business will go for ———— in
those which are in loss.
a) Market penetration
b) Divestment
c) Restructuring
QUESTION: -———— strategy assists business strategies.

a) Operational
b) Functional
c) Production
d) Process
QUESTION: The four most common leadership styles include all

except:
a) Authoritarian Style
b) Consensus oriented Style
c) Aggressive style
d) Democratic Style
QUESTION: One of the techniques to promote cross-functionalism is

of————.
a) Greater interaction
b) Job specification
c) Job rotation
d) All of the above
QUESTION: Managing —————are critical to successfully

leading organizational change:
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a) Values and cultural artifacts
b) Socio cultural aspects
c) Cultural and demography
d) All the above
QUESTION: Strategic performance is a derivative of the

other ————‘S’s
a) 4
b) 7
c) 3
d) 6
QUESTION: What does QMM stand for?
A. Quality Marketing Management

B. Quality Management Marketing
C. Quality Movement Management
D. Quality Management Movement
QUESTION: Identify a theory according to which environment plays

decisive role in the selection of forms, processes and practices in
organization.
Life cycle theory

Teleological theory
Dialectical theory
Evolutionary theory
QUESTION: What does the acronym TQM stand for?
A. Total Quality Manufacturing

B. Total Quality Measurement
C. Total Quality Management
D. Total Quantitative Method
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QUESTION: In terms of organizational change, “maintenance of the
status quo” represents:
A. Stability
B.Opposition
C.Instability
D.Contradiction
QUESTION: Identify the correct order of dialectical cycle.
A. Thesis-Antithesis-Synthesis
B.Synthesis-Antithesis-Thesis
C.Thesis-Synthesis-Antithesis
D.Antithesis-Synthesis-Thesis
QUESTION: Which of the following theories operate on a multiple

entity?
A. Life cycle and teleological theories

B.Teleological and dialectical theories
C. Dialectical and evolutionary theories
D.Evolutionary and life cycle theories
QUESTION:How many stages of biological evolution are there?
A. Five
B. Four
C. Three
D. Two
QUESTIONS: Which of the following defines “the creation of novel forms of

organizations are often viewed to emerge by blind or random chance”?
A. Variation
B. Selection
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C. Retention
D. Collection
Which of the following strategies refers to slow, gradual or incremental type of

change in terms of strategic management?
A. Internal development
C.Revolutionary development
D. Radical development

A.Internal development
B. External development
C. Revolutionary development
QUESTION: Which of the following is one of the dimensions of Greiner’s

Model?
A. Growth rate of the company

B. Growth rate of the market
C. Growth rate of the economy
D. Growth rate of the industry
QUESTION: Which of the following is a characteristic of the period of

delegation phase?
A. Long hours of work are rewarded by modest salaries

Incentives, budgets, and work standards are adopted
D. Profit centers and bonuses are used to stimulate motivation
QUESTION: According to Greiner, in his five phases of growth model, what

type of crisis follows phase 1 (growth through creativity)?
Crisis of control
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B. Crisis of autonomy
C. Crisis of leadership
D. Crisis of growth
QUESTION: When procedures take precedence over problem solving and

innovation is dampened, which of the following crisis is created?
A. Control crisis
B.Autonomy crisis
C.Leadership crisis
D. Red tape crisis
QUESTION: Identify leading proponents of organization ecology model.
A. Hannan and Freeman

B. Weber and Taylor
C. Schein and Quinn
D. Mintzberg and Fayol
QUESTION: Which of the following is an internal source of structural

inertia?
A. Sunk cost
B. New technology
C. Government regulations
D. Social legitimacy
QUESTION: Organizational birth rates and death rates refer to:

A. Vital rates
B. Growth rates
C.Inflation rates
D.Reduction rates
QUESTION: In circumstances of incremental change, strategic change is

likely to be more successful if:
A. It is imposed
B. It is owned by the senior manager
C. It is internalized and owned by those who will implement it
D. It is facilitated by management consultants
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QUESTION: 'Logical instrumentalism' can be described as:
A.Careful design and planning

B. Emergent
C.Cautious resource allocation
D.Top management rational analysis
QUESTION: Organizations that are good at developing relevant capabilities to

respond to a changing context are known as:
Knowing organizations
Stretch organizations
Learning organizations
None of the given options
QUESTION: Theorists have identified two main styles of leadership. These

are transformational leadership and:
Transgression leadership
B. Transactional leadership
C.Transparent leadership
D. Transcendental leadership
QUESTION: Which of the following theories of change posit that individuals

and organizations exist in a pluralistic world filled with conflicting interests,
ideas, and values?
Life cycle
Teleological
Dialectical
Evolutionary
Which of the following is a dimension of organization structure?

Departmentalization
Span of control
Hierarchy layer
All of the given options
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QUESTION: Which of the following is Not included in McKinsey 7 S
framework?
A.Strategy
B.Structure
C.System
D. Safety
QUESTION: Which of the following areas is Not one of the four key areas
that strategic change seeks to influence?
People
B. Technology
C. Formal organization structures
D. Informal organization structures
QUESTION: According to Pettigrew the important aspects of the outer

context include:
a. The extent of regulation in the industry in which an organization is located
b. The presence of other influential stakeholder’s
c. Both (a) and (b)
d. None of the given options
QUESTION: Which of the following are characteristics of transformational

change?
a. systemic and revolutionary
b. triggered by environmental disruptions
c. driven by all employees
d. Both (a) and (b)
QUESTION: Among the most common and

influential forces of organizational change are the emergence of new
competitors and –––––––––––.
a. Innovations in technology
b. new company leadership
c evolving attitudes towards work
d.All the given options.
QUESTION: Organizational learning interventions emphasize which of the

following?
a. social processes
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b. organizational structure
c. shared knowledge
d . Both (b) and (c)
QUESTION: Motivating change , Managing the transition and Shaping the

political dynamics of change are prerequisites for installing a change in an
organization recommended by ––––––––
a. Alex miller
b.Nadler
c. Simon
d. Snow Charles
CHANGE MANAGEMENT MGMT625

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MIDTERM EXAMINATION
MGMT625- Change Management (Alt. code=HRM625)

“Learning that creates stability and culture is different from the learning that
enables organizations to innovate as they encounter changing conditions in
both their external and internal environment.” Which of the following
experts gave above mentioned concept?
► Schein
► Charles
► Toffler
► Schon

Which of the following is a process of setting objectives, or goals, and
formulating policies, strategies, and procedures to meet them?
► Planning
► Organizing
► Leading
► Controlling

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McDonalds is a U.S. based firm but it also sells its products in Pakistan.
This is an example of which of the following?
► Localization
► Internationalization
► Globalization
► Glocalization

Toyota, a Japanese firm, but is manufacturing cars in Kentucky. This is an
example of which of the following?
► Internationalization
► Globalization
► Localization
► GLocalization

Sony introduces hundreds of new products (including improved products)
every year. This continuous change is the most effective organizational
environment for which of the following?
► Refreezing
► Unfreezing
► Negotiations
► Resistance

Which of the following is NOT a stage in Kurt Lewin's famous three-stage
prescriptive model of change that was developed in the 1950s?
► Refreezing attitudes
► Melting resistance
► Unfreezing current attitudes
► moving to a new level

Which of the following is an organizational culture in which people have
clearly delegated authorities within a highly defined structure?
► Power culture
► Role culture
► Task culture
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► Person culture

Which of the following is an organizational culture in which teams are
formed to solve particular problems?
► Power culture
► Role culture
► Task culture
► Person culture

Which of the following refers to birth of an organization according to Baird
& Meshoulam?
► Organization initiation
► Functional growth
► Controlled growth
► Strategic integration

The belief of an organization that its policies are superior to that of any other
organization. This refers to which of the following?
► Polycentricism
► Geocentricism
► Regiocentricism
► Ethnocentricism

Which of the following theories operate on a single entity?
► Life cycle and teleological theories
► Teleological and dialectical theories
► Dialectical and evolutionary theories
► Evolutionary and life cycle theories

According to which of the following “dialectics means the process of
change, logic and a method”?
► Aristotle
► Hegel
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► Marx
► Plato

In which of the following approach assumptions behind the plan are not
shared with organizational members?
► Expert system approach

► Devil’s advocate approach
► Dialectical inquiry approach
► External analysis approach

Which of the following is NOT a weakness of devil’s advocacy approach?
► It gives no solution
► It demoralizes managers
► It makes managers’ behavior destructive
► It focuses on what is going wrong

Which one of the following theories explains 'Change' as a recurrent,
cumulative, and probabilistic progression of variation, selection, and
retention among entities in a designated population?
► Life cycle theories
► Teleological theories
► Dialectical theories
► Evolutionary theories

Identify an approach in which traits can be acquired within a generation
through learning and imitation.
► Darwinian approach
► Lamarckian approach
► Managerial approach
► Biological approach
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According to Greiner, in his five phases of growth model, what type of crisis
follows phase 4 (growth through coordination)?
► Control crisis
► Autonomy crisis
► Leadership crisis
► Red tape crisis

When there is a lack of confidence and trust between line and staff, which of
the following crisis is created?
► Control crisis
► Autonomy crisis
► Leadership crisis
► Red tape crisis

Which of the following is an internal source of structural inertia?
► Sunk cost
► New technology
► Government regulations
► Social legitimacy

Internal politics for vested interests amongst organizational members refers
to:
Structural ► inertia
Natural ► selection
Adaptation ►
Variation ►

"Cause and effect" refers to:
Concept of ► causality
Concept of ► change
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Concept of ► adaptability
Concept of ► selection

According to Hannan and Freeman, which of the following is Not an
attribute in determining organizational specie?
► Normative order
Formal ► structure
Patterns of ► activity
Environmental ► forces

Identify a phase, which emphasizes on spontaneity in managerial actions
through teams and the skillful confrontation of interpersonal differences.
► Collaboration
Formalization ►
Renewal ►
Delegation ►

Which one of the following strategies refers to revolutionary type of change,
in terms of strategic management?
► Internal development
External ► development
Incremental ► development
Gradual ► development

Mergers and acquisitions are examples of which of the following
developments?
Internal ► development
External ► development
► Incremental development
Gradual ► development
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In terms of strategy development, logical incrementalism refers to:
► The deliberate development of strategy by experimentation and

learning from partial commitments
The ► utilization by top managers of a mixture of formal and

informal social and political processes to draw together an emerging pattern
of strategies from these subsystems
Systematized, ► step-by-step, chronological procedures to develop

or coordinate an organization’s strategy
Experimentation ► with side bet ventures and allowing

developments to emerge from subsystems

Whenever any new program is introduced in an organization in order to
enhance its productivity level, problem of acceptance arises which comes
primarily from three sources: interpersonal, organizational and
environmental. Identify which of the following is its environmental source.
Competitive ► pressure
► Budgetary allocations
Learning new ► terminology
Altering ► superior-subordinate relationships
Question No: 29 ( Marks: 3 )

Briefly describe dialectical approach in context of organization.
Answer : It can be defined in congestion with the definition of the

organization as a system may be called dialectical if it examines a condition
completely and logically from two different points of view. Further this
approach begins by identifying the prevailing or recommended plan and the
data which were used to derive it.
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What do you know about vital rates?
Vital rates means DEATH RATES and founding rates. This is not only true
for the study of large organizations but also of entrepreneurship and small
businesses. Following to be learn:
1. Role of government
2. Role of competition
3. Institutional constraints

“Learning that creates stability and culture is different from the
learning that enables organizations to innovate as they encounter
changing conditions in both their external and internal environment.”
Which of the following experts gave above mentioned concept?
► Schein
► Charles
► Toffler
► Schon

A systematic approach to deal with change, both from the perspective of
an organization and on the individual level is called:
► Change management
► Management
► Conflict management
► Crisis management

In McKinsey 7-S framework for business success, how the employees
think and behave is termed as:
► Staff
► Strategy
► Structure
► Style
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Which of the following is NOT a stage in Kurt Lewin's famous three-
stage prescriptive model of change that was developed in the 1950s?
► Refreezing attitudes
► Melting resistance
► Unfreezing current attitudes
► Moving to a new level

Which of the following statement describes logical instrumentalism in
terms of strategy development?
► The deliberate development of strategy by experimentation and learning
from partial commitments
► The utilization by top managers of a mixture of formal and informal
social and political processes
► Systematized, step-by-step, chronological procedures to develop or
coordinate an organization’s strategy
► Experimentation with side bet ventures and allowing developments to
emerge from subsystems

Transactional leadership has which of the following characteristics?
► Seeks to pick up the mood of the audience
► Takes the view that rewards and punishment motivate staff
► Seeks to involve staff in the decision making process
► Believes success arises from leaders and staff working together

Which of the following is an organizational culture in which people have
clearly delegated authorities within a highly defined structure?
► Power culture
► Role culture
► Task culture
► Person culture

Which of the following is an organizational culture in which all
individuals believe themselves superioR to the organization?
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► Power culture
► Role culture
► Task culture
► Person culture

Which of the following theories follows prescribed modality?
► Dialectical theories
► Life cycle theories
► Teleological theories
► Management theories

Introduction of new training program in an organization in order to
enhance productivity level refers to which of the following?
► Missionary phase
► Modification phase
► Maturity phase
► Declining phase

Which of the following theories establishes that “Goal is considered as a
final cause for guiding movement of an entity”?
► Life cycle theory

► Teleological theory
► Dialectical theory
► Evolutionary theory
Which one of the following theories states that “Every phenomenon
contains a contradiction within it”?

Which of the following occurs in an organization principally through
the competition of scarce resources?
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► Variation
► Selection
► Retention
► Deviation

What does the acronym TQM stand for?
► Total Quality Manufacturing
► Total Quality Measurement
► Total Quality Management
► Total Quantitative Method

Identify a theory according to which environmenT plays decisive role in
the selection of forms, processes and practices in organization.

Which of the following is a major benefit of quality management
movement?
► It is based on discontinuous processes
► It forces organizations to continue the evolution
► It focuses on drastic changes
► It discourages innovation

According to Levinthal, an incremental change in an organizational
routine in response to feedback about outcome refers to:
► Learning
► Adaptation
► Selection
► Retention

Which of the following is an internal source of structural inertia?
► Sunk cost
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► New technology
► Government regulations
► Social legitimacy

Actions which can be seen as spreading from one organization to
another are known as:
Learning ►
Contagion ►
Adaptation ►
Flexibility ►

When the organization has become too large and complex to be
managed through formal programs and rigid systems, which of the
following crisis is created?
Control crisis ►
Autonomy crisis ►
Leadership crisis ►
Red tape crisis

Which of the following is NOT a characteristic of the period of direction
phase?
Incentives, budgets and work standards are ► adopted
Accounting systems for inventory and purchase are ► introduced
Communication is frequent and informal within ► organization
Communication becomes more formal and ► impersonal

"Same organizational practices are not maintained throughout a long
time span". This refers to which of the following dimensions of
Greiner’s model?
Age of organization
Growth rate of ► the industry
Size of the organization ►
Structure of the ► organization
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Application of standard operating procedures refers to:
Rule following ►
Problem ► solving
Decision making ►
Learning ► process

Identify the term which describes “the ways of organizing that are
defined as right and proper by both members and relevant sectors of
the environment”.
Normative Order ►
Formal ► structure
Patterns of activity ►
Span of ► control

Which one of the following strategies refers to slow, gradual and
incremental type of change in terms of strategic management?
Internal ► development
External development ►
Revolutionary ► development
Radical development ►

Kurt Lewin's three-step model for successful change in organizations
includes:
Refreeze, move and ► unfreeze
Unfreeze, move and freeze ►
Unfreeze, change and ► refreeze
Change, refreeze and unfreeze ►
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In terms of strategy development, logical instrumentalism refers to:
The deliberate development of ► strategy by experimentation and
learning from partial commitments
The utilization by top managers of a mixture of formal and ►
informal social and political processes to draw together an emerging pattern
of strategies from these subsystems
Systematized, step-by-step, ► chronological procedures to develop
or coordinate an organization’s strategy
Experimentation with side bet ventures and allowing ►
developments to emerge from subsystems

How did a scholar, Winter, relate quality management movement
(QMM) to evolutionary theory of change?

List down some of the features of 'Coordination phase'.

How can you distinguish between devil’s advocacy and dialectical
inquiry process?

Explain competency multiplier with the help of an example.
********************************************************
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MGMT 625 (Change Management)
1. One of the advantages of a narrow span of control is that:

a. Employees can take more Holidays
b. A manager can more easily communicate with employees
c. Feed back is no longer required from employees
d. Fewer appraisals need to be written each year.
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2. A tall organization has:
a. A small number of managers with wide span of control
b. A small number of managers with narrow span of control
c. A large number of managers with wide span of control
d. A large number of managers with narrow spans of control
3. Which of the following would you not expect to find at an

organization that possesses a very strong culture?
a. The company has a profound slogan that is proudly displayed throughout
the organization.
b. The organization provides an extensive training program for newly hired
employees.
c. The organization uses an in-depth selection process for all potential job
candidates.
d. The organization only engages newspaper advertisements to fill
vacant job positions.
4. Of the forces that shape the ethics of an organization's managers,

which one would be comprised of government regulations, special
interest groups, and global market forces?
a. Organizational culture
b. Personal ethics
c. External stakeholders
d. Organizational systems
5. Organizational restructuring is an example of ________ change.

a. strategic
b. transformational
c. structural
d. incremental
6- “Changes should not be considered only in terms of the process but

should also be considered from historical, cultural and political features.”
Above statement is given by:
a) Andrew M Pettigrew
b) Instane Berg
c) Philips Kotler
d) None of the above
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7-Outer context refers to all the given options except:
a) Economic environment
b) Competitive environment
c) Political environment
d) Corporate environment
8-The process of change refers to ————,————and ———— from

the various interested parties.
a) Thinking, implementing and modifying

b) Action, reaction and interaction
c) Modernization, articulation and appreciation
d) Efforts, emotions and prayers
9-The process in the organization in turn depends upon the following except:
a) Change management
b) Pattern through time
c) Formulation /implementation process
d) Political and cultural views of the firms
10-SOC is the abbreviation of:
a) Strategic and operational client

b) Strategic organizational change
c) Structural and operational control
d) Sources of change
11-This is stated to be the requirement of ISO certification that that each and
every member should know what their mission, vision, and values are:
a) ISO 9000 series standards

b) ISO 14000 series standards
c) Both (a) and (b)
d) Malcon baldrige Awards
12-In recruitment the following policy (ies) is:

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a) Whether to hire from within
b) Hire from market
c) Both (a) and (b)
d) None of the Above
13- ————— are objects, events, acts or people which express more than
their intrinsic context.
a) Habits
b) Values
c) Symbols
d) All of the above
14- Interview procedure that shows a mechanistic and hierarchical

organization is:
a) Formal interview
b) Informal interview
c) Longitudinal interview
d) One that is conducted with great care an didn’t depict anything
15-More specific tactics of change which might be employed to facilitate

change process are:
a) 4
b) 7
c) 3
d) 6
16- Three crucial determinants to make the change plan and strategy
effective are environmental, structural and —————.
a) Managerial style
b) managerial constraints
c) Management orientation
d) Infrastructure feasibility
17-Change in environment will be coupled with all except;

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a) Change in services
b) Target the customer at some other market place
c) Change in stakeholders
d) Development of a new product.
18-If organization production strategy is based on quality production then it

should not go for ———— type of strategy.
a) Differentiation Specialty
b) cost leadership
c) cost volume
19-prerequisities for organizational change according to ———— are

motivating change, managing the transition and shaping the political
dynamics of change:
a) Nalder
b) Robert Waterman
c) Thomas Peters
d) Bullock and Batten
20-The organization dealing in many business, estimates growth potential

and losses for its business will go for ———— in those which are in loss.
a) Market penetration
b) Divestment
c) Restructuring
21-———— strategy assists business strategies.
a) Operational
b) Functional
c) Production
d) Process
22- The four most common leadership styles include all except:
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a) Authoritarian Style
b) Consensus oriented Style
c) Aggressive style
d) Democratic Style
23- One of the techniques to promote cross-functionalism is of————.
a) Greater interaction
b) Job specification
c) Job rotation
d) All of the above
24- Managing —————are critical to successfully leading organizational

change:
a) Values and cultural artifacts

b) Socio cultural aspects
c) Cultural and demography
d) All the above
25- Strategic performance is a derivative of the other ————‘S’s
a) 4
b) 7
c) 3
d) 6
_____________________________________________________________
_
6. What does QMM stand for?

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A. Quality Marketing Management
B. Quality Management Marketing
C. Quality Movement Management
D. Quality Management Movement
26. Identify a theory according to which environment plays decisive role

in the selection of forms, processes and practices in organization.
A. Life cycle theory
B. Teleological theory
C. Dialectical theory
D. Evolutionary theory
27. What does the acronym TQM stand for?

A. Total Quality Manufacturing
B. Total Quality Measurement
C. Total Quality Management
D. Total Quantitative Method
28. In terms of organizational change, “maintenance of the status quo”

represents:
A. Stability
B. Opposition
C. Instability
D. Contradiction
29. Identify the correct order of dialectical cycle.

A. Thesis-Antithesis-Synthesis
B. Synthesis-Antithesis-Thesis
C. Thesis-Synthesis-Antithesis
D. Antithesis-Synthesis-Thesis
30. Which of the following theories operate on a multiple entity?

A. Life cycle and teleological theories
B. Teleological and dialectical theories
C. Dialectical and evolutionary theories
D. Evolutionary and life cycle theories
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31. An approach in which an external consultant recommends a solution
to organizational problems according to technical view point, is
known as:
32. Which of the following is considered as best decision making

approach?
33. How many stages of biological evolution are there?

A. Five
B. Four
C. Three
D. Two
34. Which of the following defines “the creation of novel forms of

organizations are often viewed to emerge by blind or random
chance”?
A. Variation
B. Selection
C. Retention
D. Collection
35. Which of the following strategies refers to slow, gradual or

incremental type of change in terms of strategic management?
36. Joint venture is an example of which of the following?

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37. Which of the following is one of the dimensions of Greiner’s Model?

A. Growth rate of the company
B. Growth rate of the market
C. Growth rate of the economy
D. Growth rate of the industry
38. Which of the following is a characteristic of the period of delegation

phase?
A. Long hours of work are rewarded by modest salaries
B. Incentives, budgets, and work standards are adopted
C. Accounting systems for inventory and purchasing are introduced
D. Profit centers and bonuses are used to stimulate motivation
39. According to Greiner, in his five phases of growth model, what type
of crisis follows phase 1 (growth through creativity)?
A. Crisis of control
B. Crisis of autonomy
C. Crisis of leadership
D. Crisis of growth
40. When procedures take precedence over problem solving and

innovation is dampened, which of the following crisis is created?
A. Control crisis
B. Autonomy crisis
C. Leadership crisis
D. Red tape crisis
41. Identify leading proponents of organization ecology model.

A. Hannan and Freeman
B. Weber and Taylor
C. Schein and Quinn
D. Mintzberg and Fayol
42. Which of the following is an internal source of structural inertia?

A. Sunk cost
B. New technology
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C. Government regulations
D. Social legitimacy
43. Identify a scholar who defined specie as “a form of organization that

exists through generations of individual organizations which are
members of the specie".
A. Weber
B. Hannan
C. McKelvey
D. Taylor
44. Organizational birth rates and death rates refer to:

A. Vital rates
B. Growth rates
C. Inflation rates
D. Reduction rates
45) In circumstances of incremental change, strategic change is likely to be

more
successful if:
A. It is imposed
B. It is owned by the senior manager
C. It is internalized and owned by those who will implement it
D. It is facilitated by management consultants
46) 'Logical instrumentalism' can be described as:

A. Careful design and planning
B. Emergent
C. Cautious resource allocation
D. Top management rational analysis
47) Organizations that are good at developing relevant capabilities to

respond to a
changing context are known as:
A. Knowing organizations
B. Stretch organizations
C. Learning organizations
D. None of the given options
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48) Which of the following contexts would most suit a transformational
leader?
A. An organization that is in trouble
B. An organization that is performing well
C. An organization in a stable environment
D. An organization in a mature industry
49) Theorists have identified two main styles of leadership. These are
transformational leadership and:
A. Transgression leadership
B. Transactional leadership
C. Transparent leadership
D. Transcendental leadership
50) Which of the following theories of change posit that individuals and
organizations
exist in a pluralistic world filled with conflicting interests, ideas, and values?
A. Life cycle
B. Teleological
C. Dialectical
D. Evolutionary
51 Which of the following is a dimension of organization structure?

A. Departmentalization
B. Span of control
C. Hierarchy layer
D. All of the given options
52 Which of the following is Not included in McKinsey 7 S framework?
A. Strategy
B. Structure
C. System
D. Safety
53 Which of the following areas is Not one of the four key areas that
strategic change
seeks to influence?
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A. People
B. Technology
C. Formal organisation structures
D. Informal organisation structures
54) In psychology the observation that people often do (or believe) things
because many
other people do (or believe) the same is called _____________.
A. Band wagon effect
B. Benchmarking
C. Fashion
D. Trend
55. According to Pettigrew the important aspects of the outer context

include:
a. The extent of regulation in the industry in which an organization is located

b. The presence of other influential stakeholders
c. Both (a) and (b)
d. None of the given options
56. Which of the following are characteristics of transformational

change?
a. systemic and revolutionary

b. triggered by environmental disruptions
c. driven by all employees
d. Both (a) and (b)
57. Among the most common and influential forces of organizational

change are the emergence of new competitors and –––––––––––.
a. Innovations in technology
b. new company leadership
c evolving attitudes towards work
d. All the given options.
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58. Organizational learning interventions emphasize which of the
following?
a. social processes
b. organizational structure
c. shared knowledge
d . Both (b) and (c)
59. Motivating change , Managing the transition and Shaping the political
dynamics of change are prerequisites for installing a change in an
organization recommended by ––––––––
a. Alex miller
b.Nadler
c. Simon
d. Snow Charles
_____________________________________________________________
_
Mark True or False. 5 Marks

6) According to “Dialectical theory” human actions are purposive. F
7) “Decision making” is a part of planning activity. T
8) In an organization, employees are the recipient of change plan.T
9) “ISO certification” is a part of teleological approach to change
management.T
10) Dialectical process is identified as Thesis, Antithesis and Synthesis.T
TRUE|FALSE
1. Values-based leadership is primarily focused around shared, strongly
internalized values and beliefs that are advocated and acted upon by the
leader. False
2. The use of expert authority and persuasiveness of data is considered more

effective rather than of positional authority or emotionality of charismatic
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leadership. True
3. There exists no relationship between quantum change, discontinuous

change and radical change. False
4. Managing values and cultural artifacts are critical to successfully leading
organizational change. True
5. Reinforcing new behaviors by linking formal rewards directly to the

desired behaviors is not practiced in OD. False
TRUE / FALSE
1. Mangers can’t focus too much on procedures and due-process of law.

False
2. Many organisations that fail to abandon past practices have to either
wind-up or compromise to lower levels of growth. True
3. learning attributes in stable environment is same as learning
characteristics in dynamic environment. False
4. A single organization can grow indefinitely and still maintain its
original form. False
5. Environment selects and decides the validity of organization form,
process and practices to become effective and efficient. True
TRUE|FALSE
1. Values-based leadership is primarily focused around shared, strongly
internalized values and beliefs that are advocated and acted upon by the
leader. False
2. The use of expert authority and persuasiveness of data is considered more

effective rather than of positional authority or emotionality of charismatic
leadership. True
3. There exists no relationship between quantum change, discontinuous

change and radical change. False
4. Managing values and cultural artifacts are critical to successfully leading
organizational change. True
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5. Reinforcing new behaviors by linking formal rewards directly to the
desired behaviors is not practiced in OD. False

6) According to “Dialectical theory” human actions are purposive.F
7) “Decision making” is a part of planning activity.T
8) In an organization, employees are the recipient of change plan.T
9) “ISO certification” is a part of teleological approach to change
management.T
10) Dialectical process is identified as Thesis, Antithesis and Synthesis.T

6) A change agent is the facilitator of the change.T
7) Periods of substantial turmoil in organization life are known as
evolutionary phase.F
8) Organizational ecology theories are based on Darwinian evolutionary
models.T
9) Selection refers to organizational efforts to respond to changing
environmental
circumstances.F
10) According to Hannan & Freeman “most organizations have structural
inertia that
hinders adaptation when the environment changes”.T
TRUE\ FASLE
1. The outer context can be classified into two variables which are tangibles
and intangibles. F
2. Unrealised goals and poor or lack of communication, commitment from

the top/seniors may impede the change management process.T
3. Organizational transformation is mainly concerned with qualitatively

different ways of perceiving, thinking, and behaving in organizations.T
4. Organizations will only undertake transformational change when business

is slow.F
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5. If customer needs and wants change then this should be imperative for an
organization to change its products and strategies likewise.T
Fill in the Blanks.

6. Large organisations are complex because of Formalizationof process
and reutilization.
7. Retention serves to counteract the self-reinforcing loop between
selection and Variation
8. Asiatic style of management and learning is considered
transformational while that of Western is more Transactional
9. Quality Management focuses more on production process than
outcomes.
10. There are two types of change which are Action level and cognitive.
1. Human actions are purposive; goal is the final cause for guiding
movement of an entity is the statement of… Teleological……theory.
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2. Teleological and dialectical motors incorporate a Constructive mode
of change and development.
3. “Dialectical theory rests on the assumption that the organisational

entity exist in a pluralistic world of colliding events, forces, or
contradictory values that compete with each other for domination and
control” is the statement of Van de Ven scholar.
4. Famous scholar Karl Marx applied the concept dialectical

materialism on history of economics.
5. A system may be said dialectical if it examines a Situation

completely and logically from two different points of view.
6. Source of thesis (plan) and Anti-thesis (counter plan) is not clear in

the dialectical theory.
7. Primarily Dialectical utilised as a decision making and environmental

assessment technique for generating alternative and scenarios.
8. In overall analysis the dialectical design in organisation is introduced

to have better Planning
9. Variation refers to the creations of novel forms of organisations are

often viewed to emerge by blind or random chance.
10. Evolution explains change as a recurrent, cumulative, and

probabilistic progression of variation, selection and retention of
organisation entities.
1. 1 Greiner identified five phases of growth.
2. Leading proponents organization ecology school of thought are Glenn

and Carroll
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3. Hanna and Freeman identified a number of processes that generate
Inertial pressures
both from internal structural arrangements and from environmental
constraints.
4. Miller and Freisen identified external response to environmental

changes as Sluggish adaptation
5. Population ecologists believe that environmental selection Replaces

adaptation as the vehicle of change.
6. The larger an organization, the Greater

the structural inertia and the more control the organization can exercise over
the environment.
7. A communication structure
in organization like barriers misperception amongst various players at
vertical and horizontal levels also facilitates inertial process.
8. Transition is very difficult for those who create and believe on the
Formal
methods of report and answers.
9. Lawrence & Lorsch highlighted Red tape crisis

study as the problem of differentiation and integration.
10. Developmental choice for founder is to choose strong manager and

step aside for perpetual growth or select week manager and Compromise
on growth.
***************************8
Fill in the Blanks.
11. Large organisations are complex because of Formalizationof process
and routinization.
12. Retention serves to counteract the self-reinforcing loop between
selection and Variation.
13. Asiatic style of management and learning is considered
transformational while that of Western is more Transactional.
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14. Quality Management focuses more on production process than
outcomes.
15. There are two types of change which are Action level and cognitive.
TRUE / FALSE
16. Mangers can’t focus too much on procedures and due-process of law.
F
Many organisations that fail to abandon past practices have to either wind-up
or compromise to lower levels of growth.T
17. learning attributes in stable environment is same as learning
characteristics in dynamic environment.F
18. A single organization can grow indefinitely and still maintain its
original form. F
19. Environment selects and decides the validity of organization form,
process and practices to become effective and efficient. T
_____________________________________________________________
_
CHANGE MANAGEMENT
Question: What is the balanced scorecard?

Answer: The balanced scorecard is a strategic planning and management
system that is widely applicable to organizations regardless of size or type of
business. The system, extensively used in business and industry,
government, and nonprofit organizations worldwide, provides a method of
aligning business activities to the vision and strategy of the organization,
improving internal and external communications, and monitoring
organization performance against strategic goals.
Question: What is Kurt Lewin Model?

Answer: Twentieth-century psychologist Kurt Lewin developed an
influential three-stage model of how organizational change occurs. Lewin’s
model was based on his observations of group dynamics and organizational
development. This “unfreezing-change-refreeze” model focuses on how
people can be motivated to accept organizational change and reject and
replace the status quo with a new approach.
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Question: What is Change Management?
Answer: Change management is about the helping people through
change. It is the process, tools and techniques for proactively managing the
people side of change in order to achieve the desired business results.
Question: What is organizational change management?

Answer: Organizational change management is the perspective of
business leadership from the top looking down into the organization. The
focus is around broad change management practices and skills that will help
the organization understand, accept and support the needed business change.
The emphasis is on communication, training and the overall culture or value
system of the organization.
Question: What is individual change management?

Answer: Individual change management is the management of change
from the perspective of the employees. They are the ones who ultimately
must implement the change. The focus for individual change management is
around the tools and techniques to help employees through the transition.
Managers and supervisors must provide the coaching required to help
individuals understand their role and the decisions they make in the change
process.
Question: What is organizational development?

Answer: Organizational development (OD) is the process through which
an organization develops the internal capacity to be the most effective, it can
be in its mission work and to sustain itself over the long term. This
definition highlights the explicit connection between organizational
development work and the achievement of organizational mission. This
connection is the rationale for doing OD work.
Question: What is organizational learning?

Answer: Organizational learning is concerned with the development of
new knowledge or insights that have the potential to influence behavior. It
takes place within the wide institutional context of inter-organizational
relationships and refers broadly to an organization’s acquisition of
understanding, know-how, techniques and practices of any kind and by any
means.
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Question: What is a difference between single loop learning and double
loop learning?
Answer: Single loop or adaptive learning is sequential, incremental and
focused on issues and opportunities that within the scope of the
organization’s activities. Double loop learning occurs when the monitoring
process initiates action to redefine the “governing variables” to meet the new
situation, which may be imposed by external environment.
________________________________________
Question: Who is devil’s advocate?
Answer: Devil advocate is a manager (internal consultant) in an
organization who criticizes the plan of experts (planners) logically and
factually and points out weaknesses for accuracy of plan. In this technique of
devil’s advocacy, manager does not recommend solutions rather just
criticize plan. Managers play destructive role in this technique.
________________________________________
Question: What is mode of change?
Answer: Mode of change is defined as either a prescribed or constructive
mode. 1. Prescribed mode channels the development of entities in a pre-
specified direction. 2. Constructive mode involves novel often discontinuous
and unpredictable departures from past.
_____________________________________________________________
_
CHANGE MANAGEMENT
Question: What is the balanced scorecard?

Answer: The balanced scorecard is a strategic planning and management
system that is widely applicable to organizations regardless of size or type of
business. The system, extensively used in business and industry,
government, and nonprofit organizations worldwide, provides a method of
aligning business activities to the vision and strategy of the organization,
VU RTKz
improving internal and external communications, and monitoring
organization performance against strategic goals.
Question: What is Kurt Lewin Model?

Answer: Twentieth-century psychologist Kurt Lewin developed an
influential three-stage model of how organizational change occurs. Lewin’s
model was based on his observations of group dynamics and organizational
development. This “unfreezing-change-refreeze” model focuses on how
people can be motivated to accept organizational change and reject and
replace the status quo with a new approach.
Question: What is Change Management?

Answer: Change management is about the helping people through
change. It is the process, tools and techniques for proactively managing the
people side of change in order to achieve the desired business results.
Question: What is organizational change management?

Answer: Organizational change management is the perspective of
business leadership from the top looking down into the organization. The
focus is around broad change management practices and skills that will help
the organization understand, accept and support the needed business change.
The emphasis is on communication, training and the overall culture or value
system of the organization.
Question: What is individual change management?

Answer: Individual change management is the management of change
from the perspective of the employees. They are the ones who ultimately
must implement the change. The focus for individual change management is
around the tools and techniques to help employees through the transition.
Managers and supervisors must provide the coaching required to help
individuals understand their role and the decisions they make in the change
process.
Question: What is organizational development?

Answer: Organizational development (OD) is the process through which
an organization develops the internal capacity to be the most effective, it can
be in its mission work and to sustain itself over the long term. This
definition highlights the explicit connection between organizational
VU RTKz
development work and the achievement of organizational mission. This
connection is the rationale for doing OD work.
Question: What is organizational learning?

Answer: Organizational learning is concerned with the development of
new knowledge or insights that have the potential to influence behavior. It
takes place within the wide institutional context of inter-organizational
relationships and refers broadly to an organization’s acquisition of
understanding, know-how, techniques and practices of any kind and by any
means.
Question: What is a difference between single loop learning and double

loop learning?
Answer: Single loop or adaptive learning is sequential, incremental and
focused on issues and opportunities that within the scope of the
organization’s activities. Double loop learning occurs when the monitoring
process initiates action to redefine the “governing variables” to meet the new
situation, which may be imposed by external environment.
________________________________________
Question: Who is devil’s advocate?
Answer: Devil advocate is a manager (internal consultant) in an
organization who criticizes the plan of experts (planners) logically and
factually and points out weaknesses for accuracy of plan. In this technique of
devil’s advocacy, manager does not recommend solutions rather just
criticize plan. Managers play destructive role in this technique.
________________________________________
Question: What is mode of change?
Answer: Mode of change is defined as either a prescribed or constructive
mode. 1. Prescribed mode channels the development of entities in a pre-
specified direction. 2. Constructive mode involves novel often discontinuous
and unpredictable departures from past.
KNOWLEDGE MANAGEMENT
uestion: Why do we need knowledge management?

Answer: Organizations everywhere have realized that their most
valuable asset is the knowledge embedded in staff skills and the knowledge
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and experience they generate from processing loans and conducting studies.
This knowledge has largely remained uncollected, unorganized and mostly
untapped. Moreover, technology is flooding us with more information than
we can handle. KM will help us get better access to knowledge by making it
easier for us to find knowledge when we need it; introducing knowledge-
sharing habits and procedures that will help us tame the information
overload; providing venues that will transfer knowledge from tacit (i.e.,
knowledge that remains in our heads) to implicit (i.e., knowledge that is
captured in a form that can be easily shared); and spurring activities to
enrich, capture, summarize and disseminate knowledge.
________________________________________
Question: What are the benefits of Knowledge Management?
Answer: Perceived Benefits from Knowledge Management Improved
decision making 89% Improved responsiveness to customers 84% Improved
efficiency of people and operations 82% Improved innovation 73%
Improved products/services 73%
Question: What is knowledge?

Answer: Hearing the word "knowledge" many people first think of
expertise which is an important but not the only puzzle stone of what
knowledge is all about. Knowledge forms a framework out of experiences,
expertise (based on skills and abilities), values, rules and context
information for judging and integrating new experiences and information.
Formation and usage of knowledge takes place in the brain and is therefore
bound to individuals. Knowledge is both a process and a stock. Knowledge
is drawn one third out of documents and two-thirds get across by personal
contacts like formal training or informal talks.
Question: What is the difference between data, information and

knowledge?
Answer: Knowledge relies to a certain extend on data, codified tokens
without interpretation of their meaning. They are the raw material for the
creation of information which reaches as a message the receiver for whom
the content causes a change (world picture, self-conception) and helps him
to get a new insight accepted. The usage of knowledge leads to ability of the
person who acts willingly. If one acts correctly in the context one could
speak of competence in this knowledge domain which leads to
competitiveness in the long run.
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Question: Is knowledge an object or a process?
Answer: Knowledge is the result of a learning process. If it can be
codified and stored in a form usable for others, knowledge is an object. If
this knowledge pieces are reused by individuals for their purposes, then it is
built in the individual context of the user. In this case one could speak of
knowledge as a process.
Question: What modes of knowledge are there?

Answer: Knowledge may be available in individual form bound
basically to a person. Knowledge in collective mode may be found in
processes, routines, practices and rules of an organisational unit or working
group. Another knowledge mode essential for knowledge management is
implicit and explicit knowledge. Implicit knowledge is the individual
knowledge base of a person which cannot be easily communicated, whereas
explicit knowledge is methodical, systematical, and is available in
articulated mode. It may be disseminated with aid of information and
communication technology. The root problem of knowledge management is
the transition of implicit knowledge to explicit ones. Only explicit
knowlegde is at call for the organisation usable for all its members.
Knowledge may exist internally or externally at consultants or co-operation
partners of the company.
________________________________________
Question: How far is individual knowledge important to the organisation?
Answer: The whole knowledge of an organisation is based on the
knowledge of its members. If one member leaves the enterprise, then often a
part of the organisational knowledge gets lost as well. With help of
systematised knowledge management this problem might be reduced.
________________________________________
Question: What is an organisational knowledge base?
Answer: An organisational knowledge base is the entirety of all data and
documents in any form, which are stored within the organisation as well as
the business rules, which are reflected in the way the members of the
organisation work together.
________________________________________
Question: What knowledge is of strategical importance?
Answer: The knowledge within the key processes of an organization is
of strategical importance for the enterprise. During further development of
the key processes the key knowledge has to be extended and renewed in
order to gain competitive advantage.
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________________________________________
Question: How to generate new knowledge?
Answer: Individuals are generating new knowledge by gathering
information and combinding it to their personal experience. Thereby they are
able to solve unresolved problems New knowledge in organizations comes
into existence through finding new possibilities to design business processes
more efficiently or product ideas opening new business branches for the
enterprise by targetedly using creativity techniques (e.g. brainstorming,
synectic, mind mapping) or methods and tools for knowledge management
(e.g. dialogue, story telling, micro article).
Question: How to identify/"forget" outdated knowledge?

Answer: Outdated knowledge of the organizational memory can be
easier identified if data and documents are marked with their expiration date
and/or the frequency of their usage. If the expiration date is exceeded, the
data resp. documents might be deleted automatically. If a document is used
very rarely the person responsible for the knowledge domain has to decide
whether or not to delete it and arrange for the deletion. "Outdated" business
processes are not as easy to "unlearn". For this purpose it is necessary
realizing that there is a better procedure and to get the staffer to change the
procedure. This is managed best by letting the employees reorganize it by
themselves and afterwards exercising the new procedure together
COST ACCOUNTING
Question: What is Margin Safety and its ratio?

Answer: The margin of safety is the difference between budgeted sales
volume and break-even sales volume; it indicates the vulnerability of a
business to a fall in demand. It is often expressed as a percentage of
budgeted sales Margin of safety = Budgeted sales – Break-even sales
Margin safety rario = Budgeted sales – Break-even sales / sales x 100
________________________________________
Question: Define sale budget and what is the purpose of sales budget?
Answer: Sales Budget generally forms the fundamental basis on which
all other budgets are built the budget is based on projected sales to be
achieved in a budget period. The Sales Manager is directly responsible for
the preparation and execution of this budget. The main purpose of sale
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budget is to make a forecast about sales and try to achieve spacified level of
budget.
________________________________________
Question: What is controllable and uncontrolable cost?
Answer: We came across the term controllable costs at the beginning of
this study text. Controllable costs are items of expenditure which can be
directly influenced by a given manger within a given time span. As a general
rule, committed fixed costs such as those costs arising form the possession
of plant, equipment and buildings (giving rise to deprecation and rent) are
largely uncontrollable in the short term because they have been committed
by longer-term decisions. Discretionary fixed costs, for example, advertising
and research and development costs can be thought of as being controllable
because they are incurred as a result of decision made by management and
can be raised or lowered at fairly short notice.
________________________________________
Question: What is deprival value?
Answer: The deprival value of an asset represents the amount of money
that a company would have to receive if it were deprived of an asset in order
to be no worse off than it already is.
________________________________________
Question: What is the object or the purpose of budget?
Answer:
Objective of Budget
1. Profit maximization.
2. Maximization of sales.
3. Volume growth.
4. To compete with the competitors.
5. Development of new areas of operation.
6. Quality of service.
7. Work-force efficiency.
Question: What is the purpose of "Production budget"?

Answer: This budget provides an estimate of the total volume of
production distributed product-wise with the scheduling of operations by
days, weeks and months and a forecast of the inventory of finished products.
Generally, the production budget is based on the sales -budget. The
responsibility for the overall production budget lies with Works Manager
and that of departmental production budgets with departmental works
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management Production budget may be expressed in physical or financial
terms or both in relation to production.
________________________________________
Question: Define "FLEXIBLE BUDGET"?
Answer: When a company's activities can be estimated within close
limits, the fixed budget is satisfactory. However, completely predictable
situations exist in only a few cases. If business conditions change radically,
causing actual operations to differ widely from fixed budget plans, this
management tool is not reliable or effective. The fact that costs and expenses
are affected by fluctuations in volume limits the use of the fixed budget and
leads to the use of the flexible budget.
________________________________________
Question: What is the importance of "Relevant Costing" in decesion
making?
Answer: Relevance is one of the key characteristics of good management
accounting information. This means that management accounting
information produced for each manager must relate to the decisions, which
he/she will have to make.
Relevant costs are the costs that meet this requirement of good management
accounting information. The Chartered Institute of Management Accounting
defines relevant costs as:
The costs appropriate to a specific management decision
This definition could be restated as ‘the amount by which costs increase and
benefits decrease as a direct result of a specific management decision’.
Relevant benefits are ‘the amounts by which costs decrease and benefits
increase as a direct result of a specific management decision’.
________________________________________
Question: What is incremental Cost?
Answer: An incremental cost can be defined as a cost which is
specifically incurred by following a course of action and which is avoidable
if such action is not taken. Incremental costs are, by definition, relevant costs
because they are directly affected by the decision (i.e. they will be incurred
if the decision goes ahead and they will not incurred if the decision is
scrapped). For example, if an enterprise is deciding whether or not to accept
a special order for its product, the extra variable costs (i.e. number of units in
special order x variable cost per unit) that would be incurred in filling the
order are an incremental cost because they would not be incurred if the
special order were to be rejected.
________________________________________
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Question: What is budget and what are its various types?
Answer: A budget is a plan expressed in quantitative, usually monetary
terms, covering a specific period of time, usually one year. In other words, a
budget is a systematic plan for the utilization of manpower and material
resources. In a business organization a budget represents an estimate of
future costs and revenues. Budgets may be divided into two basic classes;
Capital Budgets and Operating Budgets, Capital budgets are directed
towards proposed expenditures for new projects and often require special
financing (this topic is discussed in the next Unit). The operating budgets are
directed towards achieving short-term operational goals of the organization,
for instance, production or profit goals in a business firm. Operating budgets
may be sub-divided into various departmental or functional budgets.
Question: What is the difference between over time and flex time?
Answer: Normally an employee is required to work for a set number of
hours every week. There may however be occasions where the employer
will ask the employee to work for longer hours. Overtime is the time worked
over and above the employee's basic working week. Overtime must not be
confused with flex-time. In a flex-time system an employee is allowed to
work extra hours earlier in the week or month, in return for which he will
work fewer hours later on. His overall number of hours worked remains
constant.
________________________________________
Question: What is product cost?
Answer: Product cost is a cost that is incurred in producing goods and
services. This cost becomes part of inventory.
________________________________________
Question: What is Period cost?
Answer: The cost is not related to production and is matched against on
a time period basis. This cost is considered to be expired during the
accounting period and is charged to the profit & loss account.
Question: What is Prime cost, Conversion cost and Total factory cost?
Answer:
Prime Cost: Direct Material + Direct Labor
Conversion Cost: Direct Labor + FOH

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Total Factory Cost: Direct Material + Direct Labor + FOH
Question: What is an inventory?

Answer: It is the cost held in material & supplies, work in process and
finished goods that will provide economic benefits in future, it is also known
as stock.
Question: What is mean by "Applied FOH"?
Answer: Often at the end of the accounting period total FOH cost is not
known in actual because of the specified nature of expenses in the list of
indirect cost. For this reason, the third element of cost “FOH” is included in
the total factory cost based on predetermined FOH cost rate, such cost is
known as Applied FOH Cost.
Question: What is Cost Accounting?
Answer: Procedures used for rationally classifying, recording, and
allocating current or predicted costs that relate to a certain product or
production process.
Question: What is Management Accounting?
Answer: Reporting designed to assist management in dcision-making,
planning, and control. Also known as Managerial Accounting.
What is Period cost?

The cost is not related to production and is matched against on a time period
basis. This cost is considered to be expired during the accounting period and
is charged to the profit & loss account.
Question:
Answer:
Question: What is the difference between over time and flex time?
Answer: Normally an employee is required to work for a set number of
hours every week. There may however be occasions where the employer
will ask the employee to work for longer hours. Overtime is the time worked
over and above the employee's basic working week. Overtime must not be
confused with flex-time. In a flex-time system an employee is allowed to
work extra hours earlier in the week or month, in return for which he will
work fewer hours later on. His overall number of hours worked remains
constant.
________________________________________
Question: What is product cost?
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Answer: Product cost is a cost that is incurred in producing goods and
services. This cost becomes part of inventory.
________________________________________
Question: What is Prime cost, Conversion cost and Total factory cost?
Answer: Prime Cost: Direct Material + Direct Labor
Conversion Cost: Direct Labor + FOH
Total Factory Cost: Direct Material + Direct Labor + FOH
_________________________________________________
_________________________________________________
(Solved by vu students, 2% chances of Error)

__________________________________
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FINAL TERM EXAMINATION 2010

QUESTION: Identify the year in which Beckhard & Harris proposed a

QUESTION: In which of the following year, Kurt Lewin Model was

QUESTION:When did Baird & Meshoulam describe organization life

QUESTION: According to which of the following author, organizational

QUESTION: Change fails not because organizations are rigid and

QUESTION: Identify a scholar who defined specie as “a form of

QUESTION: According to which of the following “dialectical theory rests

QUESTION: “If we could understand the ways in which individuals were

QUESTION: Which of the following introduced concept of logical

QUESTION: An approach in which an external consultant recommends a

QUESTION: Which of the following is considered as best decision

Question No: 14 ( Marks: 1 ) - Please choose one

QUESTION: Identify an approach in which second group gives an alternate

Expert system approach

QUESTION: Which of the following is an organizational culture in which

QUESTION: Which of the following is one of the dimensions of Greiner’s

QUESTION: Identify an approach in which two different groups assigned

QUESTION: Which of the following is NOT a characteristic of the period

Communication becomes more formal and impersonal

QUESTION: When managers make rational choice under certain

QUESTION: According to Greiner, in his five phases of growth model,

QUESTION: Which of the following is based on the assumption that

Life cycle theory

QUESTION: According to Levinthal, an incremental change in an

QUESTION: Joint venture is an example of which of the following?

QUESTION: In psychology the observation that people often do (or believe)

A. Band wagon effect

QUESTION: Which of the following contexts would most suit a

A. An organization that is in trouble

QUESTION: Which of the following is NOT a characteristic of the period of

QUESTION:Which of the following refers to birth of an organization

QUESTION: “Sunk cost” is a source of which of the following?

QUESTION:Which of the following is Not an internal source of structural

QUESTION: Which of the following is an application of evolutionary

Introduction of new management system

QUESTION: Which of the following terms describes "selection of strategies

QUESTION: Identify the minimum requirement of entities by dialectical

QUESTION: Mergers and acquisitions are examples of which of the

QUESTION: Which of the following theories establishes that “Goal is

Life cycle theory

QUESTION: Which of the following is a function of attitude?

QUESTION: Identify a theory according to which environment selects and

Life cycle theory

QUESTION: Which of the following defines a learning that occurs when, in

QUESTION: Which of the following terms describes "the tendency of

QUESTION: According to Beckhard & Harris three stages of change

Unfreeze,change and refreeze

QUESTION: Kurt Lewin's three-step model for successful change in

Unfreeze,move and freeze

QUESTION: When organizational systems and structures are realigned with

QUESTION: Which of the following is NOT a stage in Kurt Lewin's Model

QUESTION: Which of the following is NOT a weakness of devil’s

QUESTION: Which of the following is the third stage of “Miller &

QUESTION: Which of the following is the fourth stage of “Miller &

QUESTION: Joint venture is an example of which of the following?

QUESTION: Which of the following is an organizational culture in which

QUESTION: In terms of organizational change, maintenance of the status

QUESTION: “Model of strategic planning” is a part of which of the

Life cycle theories

Life cycle and teleological theories