Scenario C

question 8

Multiple Choice

Scenario C. Use the information given below to answer the questions that follow. A large bureaucratic organization is about to undertake a massive change in the way they do business. These changes will include redesigning processes, reward systems, and managerial selection and training. It is believed that these changes will ultimately create a more efficient, effective, and profitable company. The organizational culture is also expected to eventually shift. The senior leaders in the organization have studied the general model for managing resistance to change and believe that they are prepared for the situation.
-Which of the following is a direct way to help employees recognize that their old ways are obsolete?

• A) Tell them that they will be fired if they do not switch to the new ways
• B) Discuss the negative consequences by comparing the organization's performance to that of its competitors
• C) Discuss the positive consequences for them personally if they adopt the changes
• D) Show them the new way to perform their job
• E) Explain the new resources that will available after the change is implemented

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Definitions:

Loan

A sum of money borrowed that is expected to be paid back with interest.

Economic Profit

The financial gain achieved by a firm or individual after deducting both explicit (direct) and implicit (indirect, such as opportunity costs) costs from total revenues.

Investment

Committing funds to assets with the goal of earning returns over time.

Interest Rate

The percentage charged on the total amount borrowed or earned on investments, representing the cost of borrowing or the gain on saved or invested money.