Table 16.2 Loading Dock One, an International Products Retailer, Is Going Through

question 100

Multiple Choice

Table 16.2
Loading Dock One, an international products retailer, is going through organizational change. The entrance of several low cost retailers into their market of quality international gifts is forcing them to seek greater efficiencies so they can lower costs and prices. Unfortunately, their employees are resisting the changes. They understand competition is increasing, but they fear the changes will eliminate jobs or diminish the variety of their work. Not only are the employees resisting, but it seems that the way LDO has hired, trained, and rewarded employees also hinders the changes they want to make. Some managers also are resisting the change because they can see their staffs being reduced or their entire work units eliminated.
-Refer to Table 16.2. The managers' issues are examples of:

• A) the individual barrier, fear of the unknown.
• B) the organizational barrier, threats to existing balance of power.
• C) the individual barrier, habit.
• D) the organizational barrier, structural inertia.

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Definitions:

Cumulative

Describes an amount that has accumulated over time, often referring to the total up to a particular point.

Capital Stock

The total amount of a company's shares authorized and issued to shareholders, representing the primary source of equity financing.

Common Stock

Equity ownership in a corporation, representing a claim on a portion of the profits and assets, with voting rights in corporate decisions.

Treasury Stock

Shares that were once a part of outstanding stock but were bought back by the issuing company, reducing the amount of outstanding stock on the open market.