MGT-103 Practice Exam Questions: Organizational Change and External Forces, Exams of Production and Operations Management

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MGT - 103 Practice Exam Guide 2025 - 2026

a | MGT-103 Practice Exam Guide 2025-2026 Substantive modification to some part of an organization is known as____. A) organization synergy B) organization maturity C) organization implementation D) organizations. is an example of an external force that affects an organization.A) Employee motivation B) Production costs C) New government regulations D) Surplus capital E) High employee usnover - SORRECHANSWER- An example of a force for change in the task environment of an organization is___. A) pricing strategies of competitors B) employee turnover ©) capital availability D) employee motivation B) production costs - CORREGTANSWER An example of a force for change in the task environment of an organization is bua ee ee ee ee eee ee ee ee ee eee eee eee Ds ce eee ee ee es a | A) pricing strategies of competitors B) employee turnover rates C) capital availability D) employee motivation B) production cost - SORRECANSNPR Consumer tastes and preferences are forces that influence an organization's product line. A) technical B) internal C) managerial D) external P)pols!- ORRESTANSMRR 1 Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how forces affect organizations, A) technical B) external C) managerial D) legal £)incenl - SORRESANSNPE ProDairy Inc, reduced the prices of its products to combat competitors that were selling dairy products at lower prices, This scenario illustrates a force for change present in the of an organization. A) cask environment B) supply chain C) internal environment bua ee ee ee ee eee ee ee ee ee eee eee eee Ds ce eee ee ee es “1 I I I I I I I I I I I I I I I I I I I I I I I I al Modifving the benefits system on a yearly basis to maintain employee satisfaction is most likely to be a change. A) reactive B) planned C) contingency D) legal E) general environmental - CORRECT ANSWER -B Modifving the benefits system on a yearly basis to maintain employee satisfaction is most likely to be a change. A) reactive B) planned C) contingency D) legal E) general environmental - CORRECT ANSWER-E Reactive changes: A) are made in anticipation of future events. B) are generally more effective than planned changes. C) have more potential for poorly conceived and executed change D) involve fewer risks than planned changes. E) are preferred co planned changes by most successful organizations. - GORRECMANSWERt-C Which stage of the Lewin model of organization change involves managers letting people who will be affected by an impending change know the reasons for the change? A) Implementing r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al B) Recognizing C) Refreezing D) Transforming £) Uncxing- ERRESTANISSVER According to the Lewin model of organization change process, refreezing involves__. A) recognizing why the change is necessary B) informing people about the change C) the implementation of the change D) reinforcing the change so that it becomes a part of the system E) repeating the organization change process at frequent intervals - SORRECIANSWER-D A company has set an objective to increase its product sales by 50 percent in the next two years. Identify the step of the organization change process of the company. A) Recognition of the need for change B) Establishment of goals for the change C) Selection of appropriate change technique D) Planning for implementation of the change E) Evaluation and follow-up - @ORREGHANSWERI-B Beta LLC has decided to change its hiring criteria so that more people with technical expertise can join the company. Which step of the change process is illustrated in the scenario? A) Establishment of goals for the change B) Recognition of the need for change C) Selection of appropriate change technique D) Diagnosis of the relevant variables r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al Ron has realized that he needs to implement a change in the organization that will motivate employees. Which of the following steps in the comprehensive approach to change is illustrated in the scenario? A) Recognizing the need for change B) Understanding how to implement the change C) Setting goals for the change D) Selecting a change technique E) Implementing the change - CORRECT ANSWER. A Which of the following is an example of a goal for change for an organization? A) Reacting toa forecast indicating new market potential B) Recognizing that poor employee morale was caused by dangerous working conditions C) Deciding to decrease employee turnover rates by 90 percent D) Introducing a new reward system for employees CORRECT ANSWER -C E) Arranging for training on interpersonal skills for managers Which of the following exemplifies the first step in che comprehensive organization change model? A) Setting standards for a new absenteeism control procedure B} Noticing that the pension fund has less cash than needed to provide the guaranteed employee benefits C) Determining the probable causes of a recently detected drop in the level of employee job satisfaction D) Investigating different techniques for enhancing employeese a satisfaction E) Planning meetings to help employees understand the procedures in the company's new quality program - CORRECT ANSWER -B Jenny runs a small boutique in New Orleans and has five employees working under her. Lately, she has noticed that her boutique has not been delivering customer orders on time, and she has realized that it is because of the rise in the number of customers and insufficient manpower. She has decided to employ another five employees. Which step of the change process is illustrated in the scenario? r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al A) Implementing the change B) Diagnosis of relevant variables C) Selection of an appropriate change technique D) Planning for implementation of change E) Evaluation and follow-up - @ORREGMANSWERI-C The top management at Omega Inc. recently initiated an employee motivation drive to improve employee morale and in turn decrease turnover rates. Ic has now commissioned a statistics firm to check the effect of its initiative on the employees’ morale. Which step of the comprehensive approach to change is illustrated in the scenario? A) Evaluation and follow-up B) Selection of appropriate change technique C) Planning for implementation of change D) Diagnosis of relevant variables E) Actual implementation In general, the biggest cause of worker resistance to change is___. A) satisfaction B) uncertainty C) regret D) feelings of loss E) different perceptions - CORRECT ANSWER-B When Beta Inc. acquired Redd Communications, there was a huge uproar by the staff of Redd Communications as there were rumors of staff reductions and operations closures. was the cause for this reaction by the Redd Communications staff. A) Synergy r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al C) Announcing the change only after it has been implemented D) Minimizing communication among employees L) Avoiding force-field analysis - CORRECT ANSWER - Which of the following is a cause for the resistance to change that a worker might feel because the worker disagrees with the management that the change will be best for the organization in the long-run? A) Threatened self-interests B) Risk propensity C) Participation D) Different perceptions E) Feelings of loss - CORRECT ANSWER -D Managers can overcome resistance to change by: A) not letting employees know about the change. B} letting employees know about the change only after it has been successfully implemented. C) limiting the involyement of employees in the change process. D) minimizing communication during the change process, TE) announcing the change much in advance Which of the following is an effective way of overcoming resistance to change? A) Using micromanagement techniques B) Using facilitation techniques C) Using deskilling techniques D) Limiting employee involvement in the change process E) Minimizing communication - CORRECT ANSWER + r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al To overcome resistance to change, the top management of a company discusses with its employees the new employee policies and procedures that it proposes to bring in and also seeks their involvement in the change process. This scenario illustrates the ____ technique that helps reduce resistance to change. A) participation B) synergy C) deskilling D) greenwashing Martin is trying to adopt more automated equipment in his soda bottling facility, and workers are resisting the change. When Martin decides to hold a meeting to explain to workers how the change will be beneficial to them, he is using as a means of overcoming resistance to change. A) entropy B) micromanagement C) deskilling D) education The top management at Phoenix Ine. planned to shift their corporate office to a bigger and better facility about four streets away from the current location. The top managers knew that their decision would meet with considerable employee resistance, so they informed all the employees well in advance of the advantages of moving to the new office. This minimized the employees’ resistance. Which of the following techniques of overcoming resistance is illustrated in the scenario? A) Risk propensity B) Education ©) Specialization D) Micromanagement r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al Gamma Corp. is planning to bring in new internal standards for all the products it manufactures. The new standards will ensure better quality and will also help the company gain a competitive advantage. However, the factors that stand in the way of the change are increased workload on employees and the need for skill development among employees. To minimize these factors that hinder the change, Gamma has decided to motivate its employees through a reward system. Which of the following concepts is illustrated in the scenario? A) Force-field analysis B) Participation C) Job deskilling D) Specialization E) Micromanagement - CORRECT ANSWER -A. A change in an organization's culture is an example of change in the area of__. A) organization structure B) organizational operations C) work processes D) information technology E) organizational control systems - CORRECT ANSWER. A Alpha Corp, has divided its business into a number of sub units. This organization change is an example of change in the area of ____. A) people B) operations C) structure and design D) social responsibility E) organization mission - CORRECT ANSWER -C r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al Richard Inc. has been receiving complaints from its customers about the inefficiency of its customer service professionals. The company has now decided to change the recruitment criteria for this role. The new criteria place more emphasis on technical expertise. Richard Inc. is attempting to make a change in the area of. A) information technology B) work sequences C) operations D) enterprise resource planning E) organization structure and design - GORRECTANS WER! A company has recently undergone a transformation from using a highly centralized approach to a much more decentralized approach for managing its operations. This change represents a change in the area of A) technology B) work sequences C) work processes D) organization structure E) enterprise resousce plaating- CORRECT ANSWER D Image LLC, an advertising company, has recently received several long-term projects from leading companies. Image has decided to switch from functional departmentalization to cross-functional work teams to be able to perform better. This is an example of change in the area of ___. A) technology and operations B) social strucrure C) people D) organization structure and design B) sk coviconment- SRRECIANISSVER 1 r I I I I I I I I I I I I I I I I I I I I I I I I L a | B) technology and operations C) job design D) facilitation B) ss coviconment- CORRECTANSTERE 5 Watches.com, an online watch store, recently adopted a new enterprise resource planning (ERP) system to help keep track of the company's inventory and to deliver customers’ orders on time. The company’s adoption of the new ERP system reflects a change in the area of ____. A) organization culture B) job design C) technology and operations D) people E) departmentalization - CORRECT ANSWER. Cc Which of the following is an example of an organization's change in technology and operations? A) Enhanced job design B) Introduction of departmentalization C) Adoption of new information systems D) Introduction of a new compensation program E) Intzoduction of new employment policies - SORREGHANSWER! When organizational change involves planned alteration of work sequence or work activities, the change primarily occurs in the area of A) people B) technology and operations C) social responsibility bua ee ee ee ee eee ee ee ee ee eee eee eee Ds ce eee ee ee es “1 I I I I I I I I I I I I I I I I I I I I I I I I al Ds ce eee ee ee es D) strategy E) organizational structure and design Which of the following represents organization change in the area of change in technology and operations? A) Changing line and staff relationships B) Upgrading the management information system C) Training people to give them new skills and abilities D) Redesigning jobs LE) Changing the authority distribution in a company _____ is the conversion process used by an organization to transform inputs into outputs. A) Reengineering B) Divestment C) Technology D) Entropy 5) Proce gin - SRRESTANSTERE Blue Bells Inc. is a software services firm. Lately, the company’s HR department noticed that its employees’ performance levels have plummeted, and a survey conducted by the firm indicated that this was due to low employee satisfaction levels. This prompted the HR department to introduce a new incentive system in the company. This is an example of change in the area of ____. A) people B) task environment C) technology and operations D) general environment 1) regulatory systems - SORES bua ee ee ee ee eee ee ee ee ee eee eee eee “1 I I I I I I I I I I I I I I I I I I I I I I I I al A) entropy B) process change C) innovation D) reengineering B)aystem change - SORRECTHANSHERE > The normal process within an organization that leads to a system decline is known as A) reengineering B} synergy C) process gain D) innovation ©) onopy - SORRECNANSIPR Which of the following is true of business process changes? A) Business process change should not be carried out during a phase of entropy. B) Business process change requires a careful blend of top-down and bottom-up involvement. C) Centralization must be adopted by the top management for the business process change to be successful. D) Employee participation should be minimal during a business process change. E) Successful business process change is not accompanied by a sense of urgency. - CORRECT ANSWER + In the reengineering process, the first step involves: A) setting goals and developing a strategy. B) emphasizing top management's commitment to reengineering. C) implementing the chosen strategy across the organization. D) optimizing top-down and bottom-up perspectives. r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al E) creating a sense of urgency among managers. - CORRECT ANSWER -A. Which of the following can help make the reengineering process more effective? A) Limiting communication B) Creating a sense of urgency in the organization C) Adopting a highly centralized organizational structure D) Refraining from making extensive changes E) Limiting employee involvement in che process - SORRECINANSWER!-B Which of the following can help make the business change process more effective? A) Limiting employee involvement in the process B) Refraining from creating a sense of urgency in the organization C) Starting the process with a new, clean slate D) Limiting communication channels E) Refraining from changing company strategies - CORRECT ANSWER + The reengineering process can be made effective by: A) adopting a hands-off leadership style. B) extensively using micromanagement leadership techniques. C) adopting a strong but not autocratic leadership style. D) eliminating any sense of urgency in the organization E) limiting employee participation in the process. - CORRECT ANSWER. Which of the following is one of the assumptions on which the theory and practice of organization development (OD) are based? r I I I I I I I I I I I I I I I I I I I I I I I I L