Read the passage carefully and answer the question that follows. According to…
2020
Read the passage carefully and answer the question that follows.
According to Richard Beckhard, a transformation represents a vital organizational change. Transformation is characterized by certain features that clearly differentiate it from other types of change. First, it involves substantial and discontinuous change in the shape, structure and nature of the organization, rather than incremental adjustments and fine-tuning of the current situation. One example of a discontinuous change would be a firm changing from a product orientation to a market orientation. Another example would be the merger of two organizations. In both instances, the shape of the organization can be expected to change radically. An organization transforming from a production orientation to a customer orientation will need to decentralize drastically and delegate authority. In a merger, entirely new roles and working relationships will be created.
A second characteristic of transformation is that the need for change is caused by forces external to the organization rather than forces inside the organization. A typical example would be an organization changing from a functional to a divisional structure in response to market forces or industry pressures in the form of competitor actions or regulatory changes. Currently, globalization is one of the most powerful external forces for organizational transformation.
A third distinguishing feature of transformation is that the change is deep and pervasive, rather than shallow and contained. The change affects all parts of the organization and involves many levels. Decentralization, downsizing and the geographic relocation of functions and activities exemplify changes that transform structural relationships deeply and pervasively.
Finally, transformation requires significantly different, and even entirely new, sets of actions by the members of the organization, rather than more or less of existing behavior patterns. Examples include changes to the norms and core values of an organization brought about through acquisition, deregulation and privatization, or through drastic strategic repositioning such as shifting from a production-efficiency focus to a customer-service strategy.
Question: What are the main levels of organizational transformation?
A. Downsizing
B. Geographical relocation
C. Contained changes
D. Power to external forces
Choose the correct answer from the options given below:
- A.
A and B only
- B.
B and C only
- C.
C and D only
- D.
A and D only
Show answer & explanation
Correct answer: A
The correct answer is option 1: A and B only.
The passage states that organizational transformation is deep and pervasive and that it affects many levels. It then gives the examples of decentralization, downsizing, and the geographic relocation of functions and activities as changes that transform structural relationships deeply and pervasively.
Therefore, among the listed statements, A (Downsizing) and B (Geographical relocation) are correct. C (Contained changes) is incorrect because transformation is described as deep and pervasive, not shallow or contained. D is incorrect because external forces create pressure for change; they are not described as a level of transformation.