John Kotter Built on Lewin's Three-Step Model to Create a More

question 69

Multiple Choice

John Kotter built on Lewin's three-step model to create a more detailed approach for implementing change. Which of the following steps in Kotter's eight-step plan for implementing change represents the unfreezing stage in Lewin's three-step model?

• A) Plan for, create, and reward short-term "wins" that move the organization toward the new vision.
• B) Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.
• C) Create a new vision to direct the change and strategies for achieving the vision.
• D) Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.
• E) Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

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Definitions:

Unsecured Creditors

Individuals or institutions that lend money without obtaining specific assets as collateral, ranking behind secured creditors in the event of bankruptcy.

Financial Leverage

Rephrased: Utilizing debt to finance additional assets, with the aim of increasing returns to equity holders, while also increasing financial risk.

Interest Tax Shield

The decrease in what one owes in income taxes by removing the cost of debt interest from the taxable income figure.

Capital Structure Puzzle

The term refers to the challenge and debate over the optimal composition of a company's debt and equity financing to maximize its value.