M Has Been Appointed as an External Change Agent to Lead

question 7

Multiple Choice

M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent. Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

• A) The change process should be less costly if an external change agent is appointed.
• B) The bank can exploit the specialist expertise of the external change agent.
• C) As a dedicated resource, the external change agent can give more time to the change process.
• D) The external change agent will be more objective in decision-making than an internal change agent.
• E) The external change agent will have better relationships with the bank employees than an internal change agent.
• F) The speed of delivery of the change process will be quicker when using an external change agent.

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Definitions:

Allowance Account

An account used in accrual accounting to estimate future adjustments, such as doubtful accounts or returns, affecting the value of asset accounts.

Percentage of Sales

A financial ratio illustrating how a particular figure on the financial statements reflects a certain percentage of the total sales.

Percentage of Receivables

A method used to estimate the amount of bad debt expense by calculating a fixed percentage of accounts receivable to be uncollectible.

Uncollectible Accounts

Accounts receivable that a company has determined are unlikely to be collected and written off as an expense.