,WGU C721 Change Management Study Guide | Exam
Questions & Correct Answers | 2026/2027 Edition (PDF)
**1. What constitutes an internal change?**
A) Changes in industry regulations
B) Economic market shifts
C) Changes to an organization's operating system
D) Technological advances outside the organization
**Correct Answer:** C) Changes to an organization's operating system
**Rationale:** Internal changes originate within the organization, such as updates to processes,
systems, or structures. External changes arise from outside factors like regulations or market conditions.
**2. Which type of change occurs due to new government policies or regulations affecting the
organization?**
A) Internal change
B) Incremental change
C) External change
D) Transformational change
**Correct Answer:** C) External change
**Rationale:** External changes originate outside the organization, such as legal, regulatory, or market
influences, and require the organization to adapt accordingly.
**3. What is the primary difference between Management and Leadership in the context of change?**
A) Management focuses on vision; Leadership focuses on planning
B) Management works with people to achieve goals; Leadership integrates with management for high
performance
,C) Management avoids risk; Leadership embraces it exclusively
D) Management is only for top-level executives
**Correct Answer:** B) Management works with people to achieve goals; Leadership integrates with
management for high performance
**Rationale:** Management works with people to achieve organizational goals, while leadership
integrates with management to drive high performance, especially during change.
**4. What is the definition of Change Management?**
A) The process of maintaining the status quo
B) The practice of changing people and organizations for positive growth
C) Approaches used by specialists to assist leaders in moving organizations from a present to a future
state
D) The financial analysis of change initiatives
**Correct Answer:** C) Approaches used by specialists to assist leaders in moving organizations from a
present to a future state
**Rationale:** Change Management encompasses approaches used by business content and behavioral
process specialists that assist leaders in moving organizations from a present state to a future state.
**5. Which approach to change focuses on lasting effects through changes in cultural norms and
attitudes?**
A) Short-Term Approach
B) Analytical Approach
C) Long-Term Approach
D) Top-down Approach
**Correct Answer:** C) Long-Term Approach
, **Rationale:** The Long-Term Approach to change focuses on creating lasting effects through changes
in cultural norms and attitudes, rather than quick fixes.
**6. According to systems theory, how are organizations viewed?**
A) As isolated entities
B) As a total system of interdependent subsystems
C) As a collection of individual employees
D) As a linear process
**Correct Answer:** B) As a total system of interdependent subsystems
**Rationale:** Systems theory views organizations as a total system of interdependent subsystems,
where individual components include people, technology, work, and culture.
**7. According to contingency theory, what happens when organizational dimensions (strategy,
structure, people) are out of sync?**
A) Performance improves
B) Issues emerge
C) The organization becomes more agile
D) Leadership becomes easier
**Correct Answer:** B) Issues emerge
**Rationale:** Contingency theory suggests that when organizational dimensions such as strategy,
structure, and people are misaligned, performance issues emerge.
**8. Which of the following is an example of a "hard dimension" of change?**
A) Motivating people
B) Developing people
C) Organizational structures
Questions & Correct Answers | 2026/2027 Edition (PDF)
**1. What constitutes an internal change?**
A) Changes in industry regulations
B) Economic market shifts
C) Changes to an organization's operating system
D) Technological advances outside the organization
**Correct Answer:** C) Changes to an organization's operating system
**Rationale:** Internal changes originate within the organization, such as updates to processes,
systems, or structures. External changes arise from outside factors like regulations or market conditions.
**2. Which type of change occurs due to new government policies or regulations affecting the
organization?**
A) Internal change
B) Incremental change
C) External change
D) Transformational change
**Correct Answer:** C) External change
**Rationale:** External changes originate outside the organization, such as legal, regulatory, or market
influences, and require the organization to adapt accordingly.
**3. What is the primary difference between Management and Leadership in the context of change?**
A) Management focuses on vision; Leadership focuses on planning
B) Management works with people to achieve goals; Leadership integrates with management for high
performance
,C) Management avoids risk; Leadership embraces it exclusively
D) Management is only for top-level executives
**Correct Answer:** B) Management works with people to achieve goals; Leadership integrates with
management for high performance
**Rationale:** Management works with people to achieve organizational goals, while leadership
integrates with management to drive high performance, especially during change.
**4. What is the definition of Change Management?**
A) The process of maintaining the status quo
B) The practice of changing people and organizations for positive growth
C) Approaches used by specialists to assist leaders in moving organizations from a present to a future
state
D) The financial analysis of change initiatives
**Correct Answer:** C) Approaches used by specialists to assist leaders in moving organizations from a
present to a future state
**Rationale:** Change Management encompasses approaches used by business content and behavioral
process specialists that assist leaders in moving organizations from a present state to a future state.
**5. Which approach to change focuses on lasting effects through changes in cultural norms and
attitudes?**
A) Short-Term Approach
B) Analytical Approach
C) Long-Term Approach
D) Top-down Approach
**Correct Answer:** C) Long-Term Approach
, **Rationale:** The Long-Term Approach to change focuses on creating lasting effects through changes
in cultural norms and attitudes, rather than quick fixes.
**6. According to systems theory, how are organizations viewed?**
A) As isolated entities
B) As a total system of interdependent subsystems
C) As a collection of individual employees
D) As a linear process
**Correct Answer:** B) As a total system of interdependent subsystems
**Rationale:** Systems theory views organizations as a total system of interdependent subsystems,
where individual components include people, technology, work, and culture.
**7. According to contingency theory, what happens when organizational dimensions (strategy,
structure, people) are out of sync?**
A) Performance improves
B) Issues emerge
C) The organization becomes more agile
D) Leadership becomes easier
**Correct Answer:** B) Issues emerge
**Rationale:** Contingency theory suggests that when organizational dimensions such as strategy,
structure, and people are misaligned, performance issues emerge.
**8. Which of the following is an example of a "hard dimension" of change?**
A) Motivating people
B) Developing people
C) Organizational structures
