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Refer to the scenario below to answer the following questions.

New Ideas Inc. $($Scenario$)$

Though New Ideas Inc. has been in business profitably for $30$ years, the company and its employees have seemingly been in a constant state of change. Paul Gill has been president of New Ideas for the last $15$ years. During this time, he has had to change the strategic focus of the company three times. The employees have become vocal recently about the decrease in their bonus cheques and are waiting to share in the increased profits. It seems as though his competition is always introducing new products into the market, and the niches Gill thought New Ideas held leadership in are always changing. Recently the government has been active in passing new legislation to increase the control of the product packaging and product contents. The technology used to manufacture the products is constantly improving with the use of robotics to make the process more efficient.

The employees' complaints about their reduced bonus cheques are an example of a$($n$)\_\_\_\_\_\_\_\_$ force for change.

Question $1$Answer

a$.$

external

b$.$

labour market

c$.$

cultural

d$.$

internal

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The Management Seminar $($Scenario$)$

Mandy recently returned from her two$-$day managerial seminar, How to Totally Change Your Management and Leadership Style in Two Days. Even though she felt the seminar was worthless $($as she had predicted$),$ it did give her a chance to think about how to change the culture of her organization. She had been brought in by the new CEO as a change agent, and her position had the authority to make an impact. She felt that the recent hostile takeover by their parent company had shocked everyone, especially given that the entire organization consisted of only $150$ people and had been in business for only five years. She felt this might be the time to attempt cultural change while everyone was still thinking in terms of change. As she tossed her leadership seminar manual into the wastebasket, she considered what might be her first step and how well the cultural change would work.

Which of the following are favourable conditions that might help facilitate cultural change at Mandy's company?

Question $2$Answer

a$.$

The organization is young and the culture is strong.

b$.$

The organization is young and small.

c$.$

The organization is old and small.

d$.$

The organization is old and the culture is weak.

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Innovation for organizations is about developing new products and services as customer needs change.

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False

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In the "white$-$water rapids" metaphor of change, managers should expect change at any time, and it may last for unspecified lengths of time.

Question $4$Select one:

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False

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Fred Fryer's Donuts $($Scenario$)$

Since the integration of two new stores, Fred Fryer's Donuts, Inc. has recognized that there is a need for reengineering the entire organization. The main need is to install new state$-$of$-$the$-$art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained to operate the new computer programmed equipment. Some of the older employees are worried that learning the computerized system may be too difficult. Fred is setting up the main store as a training store. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before employees return to their jobs. The organization is also replacing the old employee reporting system. Ordering of materials will now be done by an intranet. Fred has promised that no one will lose his or her job because of the organizational changes. He estimates that when the employees get to the computer programming training, as many as $10$ percent of the current employees will resign or retire. He also thinks that opening a new store will absorb the excess employees.

The $10$ percent of the employees that are expected to leave during the computerized equipment training, will leave because they $\_\_\_\_\_\_\_\_.$

Question $5$Answer

a$.$

fear that they are unable to learn the new methods

b$.$

they were going to leave anyway soon

c$.$

cannot pass the final test of how to operate the equipment

d$.$

are not entrepreneurial enough to survive in the new environment