GU C721 Task 1 – Change Management
Comprehensive Exam 2026
Complete Study Guide with Questions,
ANSWERs, and Detailed Rationales
SECTION 1: SYSTEMS CONTINGENCY MODEL
Question 1
What is the primary focus of the Systems Contingency Model in organizational change?
A. Implementing a one-size-fits-all approach to all organizations
B. Adapting organizational structure to fit specific environmental contexts
C. Maintaining strict hierarchical control regardless of circumstances
D. Focusing solely on internal processes without considering external factors
Correct ANSWER: B
Rationale:
Option A: Incorrect. The Systems Contingency Model explicitly rejects one-size-fits-all approaches,
emphasizing that organizational structure must be tailored to fit the context and environment rather
than following a universal approach.
Option B: Correct. The Systems Contingency Model emphasizes that organizational structure must be
tailored to fit the context and environment, recognizing that there is no single best way to organize and
that effectiveness depends on matching organizational design to environmental demands.
Option C: Incorrect. While hierarchies may be appropriate in some contexts, the Systems Contingency
Model does not advocate for strict hierarchical control regardless of circumstances; instead, it promotes
flexibility based on situational needs.
Option D: Incorrect. The Systems Contingency Model specifically emphasizes the importance of
considering both internal and external environmental factors, not just internal processes in isolation.
Question 2
,Which of the following best describes the three phases of the Systems Contingency Model?
A. Planning, Implementation, Evaluation
B. Input, Transformation, Output
C. Analysis, Design, Development
D. Assessment, Intervention, Follow-up
Correct ANSWER: B
Rationale:
Option A: Incorrect. While planning, implementation, and evaluation are important management
functions, they are not the specific three phases of the Systems Contingency Model.
Option B: Correct. The Systems Contingency Model includes three phases: input, transformation, and
output. These phases represent how organizations take in resources from the environment, transform
them through internal processes, and produce outputs back to the environment.
Option C: Incorrect. Analysis, design, and development are phases commonly associated with
instructional design or project management, not the Systems Contingency Model.
Option D: Incorrect. Assessment, intervention, and follow-up are typical phases in consulting or
therapeutic processes, not the specific framework of the Systems Contingency Model.
Question 3
According to the Systems Contingency Model, why is there no single "right or wrong" approach to
organizational structure?
A. Because all organizations have identical goals and environments
B. Because decisions should be based on the company's specific internal and external situation
C. Because organizational structure does not impact performance
D. Because managers should randomly select structures to test effectiveness
Correct ANSWER: B
Rationale:
Option A: Incorrect. Organizations do not have identical goals and environments; they vary significantly
in size, industry, market conditions, and objectives, which is precisely why contingency approaches are
necessary.
Option B: Correct. In the Systems Contingency Model, there is no right or wrong; rather, organizational
decisions are made based on the company's specific situation, considering both external environmental
factors and internal organizational characteristics.
,Option C: Incorrect. Organizational structure significantly impacts performance, efficiency, and
effectiveness; the contingency model recognizes this but argues that the optimal structure varies by
context.
Option D: Incorrect. Random selection of structures is not a sound management practice; the
contingency approach advocates for deliberate, situation-based decision-making.
Question 4
A company experiencing rapid growth and international expansion finds that its existing top-down
management strategy is no longer effective. According to the Systems Contingency Model, what should
the company do?
A. Continue with the current structure since it worked in the past
B. Implement a more rigid hierarchical structure to maintain control
C. Adapt its organizational structure to fit the new environmental complexities
D. Reduce international operations to match the existing structure
Correct ANSWER: C
Rationale:
Option A: Incorrect. The Systems Contingency Model emphasizes that what worked in the past may not
be suitable for current conditions; organizations must adapt to environmental changes rather than
clinging to outdated structures.
Option B: Incorrect. Implementing a more rigid structure would likely exacerbate problems in a complex,
rapidly changing environment; flexibility and adaptation are needed instead.
Option C: Correct. The Systems Contingency Model highlights the need for change in the face of
complexities and uncertainties; the company should adapt its organizational structure to fit the new
environmental context created by rapid growth and international expansion.
Option D: Incorrect. Rather than limiting operations to fit an outdated structure, the organization should
evolve its structure to support its strategic goals and environmental demands.
Question 5
Which factor would NOT be considered an environmental contingency that affects organizational
structure according to the Systems Contingency Model?
A. Market dynamics and competition
B. Technological changes
C. Employee personal preferences for office decor
D. Regulatory and legal requirements
Correct ANSWER: C
, Rationale:
Option A: Incorrect. Market dynamics and competition are critical environmental contingencies that
significantly influence organizational structure and strategy.
Option B: Incorrect. Technological changes are major environmental contingencies that require
organizations to adapt their structures, processes, and capabilities.
Option C: Correct. While employee satisfaction is important, individual preferences for office decor are
not considered environmental contingencies in the Systems Contingency Model; environmental
contingencies refer to external factors like market conditions, technology, competition, and regulations
that impact organizational effectiveness.
Option D: Incorrect. Regulatory and legal requirements are significant environmental contingencies that
organizations must consider when designing their structures and processes.
Question 6
What is the relationship between organizational openness and the Systems Contingency Model?
A. Organizations are closed systems that operate independently from their environment
B. Organizations are open systems that constantly interact with and adapt to their environment
C. Organizations should minimize interaction with external stakeholders
D. Environmental factors have no impact on organizational effectiveness
Correct ANSWER: B
Rationale:
Option A: Incorrect. The Systems Contingency Model views organizations as open systems, not closed
systems; they continuously exchange resources, information, and influence with their environment.
Option B: Correct. Contingency theory states that organizations are open systems that constantly
interact with their environment and adapt to different environmental pressures; this interaction is
fundamental to the Systems Contingency Model.
Option C: Incorrect. Minimizing interaction with external stakeholders would contradict the open
systems perspective; organizations must actively engage with their environment to survive and thrive.
Option D: Incorrect. Environmental factors are central to the Systems Contingency Model; they
significantly impact organizational effectiveness and determine the appropriate structural design.
Question 7
A manufacturing company depends on antiquated procedures and computer systems, which limits its
effectiveness and competitive edge. Using the Systems Contingency Model, what is the recommended
approach?
A. Maintain current systems to ensure stability
Comprehensive Exam 2026
Complete Study Guide with Questions,
ANSWERs, and Detailed Rationales
SECTION 1: SYSTEMS CONTINGENCY MODEL
Question 1
What is the primary focus of the Systems Contingency Model in organizational change?
A. Implementing a one-size-fits-all approach to all organizations
B. Adapting organizational structure to fit specific environmental contexts
C. Maintaining strict hierarchical control regardless of circumstances
D. Focusing solely on internal processes without considering external factors
Correct ANSWER: B
Rationale:
Option A: Incorrect. The Systems Contingency Model explicitly rejects one-size-fits-all approaches,
emphasizing that organizational structure must be tailored to fit the context and environment rather
than following a universal approach.
Option B: Correct. The Systems Contingency Model emphasizes that organizational structure must be
tailored to fit the context and environment, recognizing that there is no single best way to organize and
that effectiveness depends on matching organizational design to environmental demands.
Option C: Incorrect. While hierarchies may be appropriate in some contexts, the Systems Contingency
Model does not advocate for strict hierarchical control regardless of circumstances; instead, it promotes
flexibility based on situational needs.
Option D: Incorrect. The Systems Contingency Model specifically emphasizes the importance of
considering both internal and external environmental factors, not just internal processes in isolation.
Question 2
,Which of the following best describes the three phases of the Systems Contingency Model?
A. Planning, Implementation, Evaluation
B. Input, Transformation, Output
C. Analysis, Design, Development
D. Assessment, Intervention, Follow-up
Correct ANSWER: B
Rationale:
Option A: Incorrect. While planning, implementation, and evaluation are important management
functions, they are not the specific three phases of the Systems Contingency Model.
Option B: Correct. The Systems Contingency Model includes three phases: input, transformation, and
output. These phases represent how organizations take in resources from the environment, transform
them through internal processes, and produce outputs back to the environment.
Option C: Incorrect. Analysis, design, and development are phases commonly associated with
instructional design or project management, not the Systems Contingency Model.
Option D: Incorrect. Assessment, intervention, and follow-up are typical phases in consulting or
therapeutic processes, not the specific framework of the Systems Contingency Model.
Question 3
According to the Systems Contingency Model, why is there no single "right or wrong" approach to
organizational structure?
A. Because all organizations have identical goals and environments
B. Because decisions should be based on the company's specific internal and external situation
C. Because organizational structure does not impact performance
D. Because managers should randomly select structures to test effectiveness
Correct ANSWER: B
Rationale:
Option A: Incorrect. Organizations do not have identical goals and environments; they vary significantly
in size, industry, market conditions, and objectives, which is precisely why contingency approaches are
necessary.
Option B: Correct. In the Systems Contingency Model, there is no right or wrong; rather, organizational
decisions are made based on the company's specific situation, considering both external environmental
factors and internal organizational characteristics.
,Option C: Incorrect. Organizational structure significantly impacts performance, efficiency, and
effectiveness; the contingency model recognizes this but argues that the optimal structure varies by
context.
Option D: Incorrect. Random selection of structures is not a sound management practice; the
contingency approach advocates for deliberate, situation-based decision-making.
Question 4
A company experiencing rapid growth and international expansion finds that its existing top-down
management strategy is no longer effective. According to the Systems Contingency Model, what should
the company do?
A. Continue with the current structure since it worked in the past
B. Implement a more rigid hierarchical structure to maintain control
C. Adapt its organizational structure to fit the new environmental complexities
D. Reduce international operations to match the existing structure
Correct ANSWER: C
Rationale:
Option A: Incorrect. The Systems Contingency Model emphasizes that what worked in the past may not
be suitable for current conditions; organizations must adapt to environmental changes rather than
clinging to outdated structures.
Option B: Incorrect. Implementing a more rigid structure would likely exacerbate problems in a complex,
rapidly changing environment; flexibility and adaptation are needed instead.
Option C: Correct. The Systems Contingency Model highlights the need for change in the face of
complexities and uncertainties; the company should adapt its organizational structure to fit the new
environmental context created by rapid growth and international expansion.
Option D: Incorrect. Rather than limiting operations to fit an outdated structure, the organization should
evolve its structure to support its strategic goals and environmental demands.
Question 5
Which factor would NOT be considered an environmental contingency that affects organizational
structure according to the Systems Contingency Model?
A. Market dynamics and competition
B. Technological changes
C. Employee personal preferences for office decor
D. Regulatory and legal requirements
Correct ANSWER: C
, Rationale:
Option A: Incorrect. Market dynamics and competition are critical environmental contingencies that
significantly influence organizational structure and strategy.
Option B: Incorrect. Technological changes are major environmental contingencies that require
organizations to adapt their structures, processes, and capabilities.
Option C: Correct. While employee satisfaction is important, individual preferences for office decor are
not considered environmental contingencies in the Systems Contingency Model; environmental
contingencies refer to external factors like market conditions, technology, competition, and regulations
that impact organizational effectiveness.
Option D: Incorrect. Regulatory and legal requirements are significant environmental contingencies that
organizations must consider when designing their structures and processes.
Question 6
What is the relationship between organizational openness and the Systems Contingency Model?
A. Organizations are closed systems that operate independently from their environment
B. Organizations are open systems that constantly interact with and adapt to their environment
C. Organizations should minimize interaction with external stakeholders
D. Environmental factors have no impact on organizational effectiveness
Correct ANSWER: B
Rationale:
Option A: Incorrect. The Systems Contingency Model views organizations as open systems, not closed
systems; they continuously exchange resources, information, and influence with their environment.
Option B: Correct. Contingency theory states that organizations are open systems that constantly
interact with their environment and adapt to different environmental pressures; this interaction is
fundamental to the Systems Contingency Model.
Option C: Incorrect. Minimizing interaction with external stakeholders would contradict the open
systems perspective; organizations must actively engage with their environment to survive and thrive.
Option D: Incorrect. Environmental factors are central to the Systems Contingency Model; they
significantly impact organizational effectiveness and determine the appropriate structural design.
Question 7
A manufacturing company depends on antiquated procedures and computer systems, which limits its
effectiveness and competitive edge. Using the Systems Contingency Model, what is the recommended
approach?
A. Maintain current systems to ensure stability
