C721 Change Management Exam
Questions and Answers
2026/2027 | Complete Study
Guide
Course
C721 Change Management
1.
A regional retailer has seen declining sales for three consecutive years. Leadership proposes
replacing its outdated inventory system, redesigning store operations, and retraining employees.
Which feature most clearly makes this an organizational change initiative rather than routine
management?
A. Employees will continue performing many of the same daily tasks
B. The organization is deliberately moving from its current state toward a substantially different
future state
C. Managers will continue monitoring employee performance
D. The company will continue serving the same customers
Answer: B. The organization is deliberately moving from its current state toward a
substantially different future state
,Rationale: Change management concerns the transition from an existing state to a desired future
state. The existence of routine management activities does not eliminate the broader
organizational transformation.
2.
A manufacturing company changes its workflow after a new government regulation requires
additional product traceability. Which source of change is this?
A. Internal
B. External
C. Personal
D. Developmental
Answer: B. External
Rationale: Government regulations originate outside the organization and create an external
force for change. Internal change originates within the organization, such as a leadership decision
to restructure departments.
3.
A CEO announces a transformation strategy but employees remain confused about what the
organization is trying to accomplish. The CEO has communicated the need for change but has
not articulated a compelling future state. Which leadership task is missing?
A. Establishing a shared vision
B. Controlling payroll
,C. Auditing inventory
D. Eliminating all resistance immediately
Answer: A. Establishing a shared vision
Rationale: A compelling vision gives employees a clear picture of the desired future and helps
connect individual efforts to the organizational purpose.
4.
A company faces rapidly changing customer expectations. The operations manager focuses on
schedules, resources, and process controls, while the executive team focuses on motivating
employees around a new direction. Which distinction is being illustrated?
A. Management primarily provides administrative coordination, while leadership emphasizes
direction and mobilization
B. Management and leadership are identical functions
C. Leadership is limited to financial decisions
D. Management has no role during change
Answer: A. Management primarily provides administrative coordination, while leadership
emphasizes direction and mobilization
Rationale: Effective change normally requires both management and leadership. Management
helps organize and control implementation, while leadership creates direction, motivation, and
commitment.
5.
, A hospital wants employees to understand why a proposed electronic-records transformation
cannot be postponed. Which action most closely reflects Kotter's first step?
A. Create short-term wins
B. Build a guiding coalition
C. Create a sense of urgency
D. Institutionalize new approaches
Answer: C. Create a sense of urgency
Rationale: Kotter's eight-step framework begins with establishing a sense of urgency around the
need for change. The purpose is to make the status quo less acceptable and motivate movement
toward change. Current C721 materials identify Kotter's model and its first-step emphasis on
urgency.
6.
A change leader has convinced employees that a new strategy is necessary. The next challenge is
ensuring influential managers from different functions actively support implementation. Which
Kotter concept best fits?
A. Form a guiding coalition
B. Refreeze behavior
C. Conduct an external audit
D. Eliminate organizational culture
Answer: A. Form a guiding coalition
Questions and Answers
2026/2027 | Complete Study
Guide
Course
C721 Change Management
1.
A regional retailer has seen declining sales for three consecutive years. Leadership proposes
replacing its outdated inventory system, redesigning store operations, and retraining employees.
Which feature most clearly makes this an organizational change initiative rather than routine
management?
A. Employees will continue performing many of the same daily tasks
B. The organization is deliberately moving from its current state toward a substantially different
future state
C. Managers will continue monitoring employee performance
D. The company will continue serving the same customers
Answer: B. The organization is deliberately moving from its current state toward a
substantially different future state
,Rationale: Change management concerns the transition from an existing state to a desired future
state. The existence of routine management activities does not eliminate the broader
organizational transformation.
2.
A manufacturing company changes its workflow after a new government regulation requires
additional product traceability. Which source of change is this?
A. Internal
B. External
C. Personal
D. Developmental
Answer: B. External
Rationale: Government regulations originate outside the organization and create an external
force for change. Internal change originates within the organization, such as a leadership decision
to restructure departments.
3.
A CEO announces a transformation strategy but employees remain confused about what the
organization is trying to accomplish. The CEO has communicated the need for change but has
not articulated a compelling future state. Which leadership task is missing?
A. Establishing a shared vision
B. Controlling payroll
,C. Auditing inventory
D. Eliminating all resistance immediately
Answer: A. Establishing a shared vision
Rationale: A compelling vision gives employees a clear picture of the desired future and helps
connect individual efforts to the organizational purpose.
4.
A company faces rapidly changing customer expectations. The operations manager focuses on
schedules, resources, and process controls, while the executive team focuses on motivating
employees around a new direction. Which distinction is being illustrated?
A. Management primarily provides administrative coordination, while leadership emphasizes
direction and mobilization
B. Management and leadership are identical functions
C. Leadership is limited to financial decisions
D. Management has no role during change
Answer: A. Management primarily provides administrative coordination, while leadership
emphasizes direction and mobilization
Rationale: Effective change normally requires both management and leadership. Management
helps organize and control implementation, while leadership creates direction, motivation, and
commitment.
5.
, A hospital wants employees to understand why a proposed electronic-records transformation
cannot be postponed. Which action most closely reflects Kotter's first step?
A. Create short-term wins
B. Build a guiding coalition
C. Create a sense of urgency
D. Institutionalize new approaches
Answer: C. Create a sense of urgency
Rationale: Kotter's eight-step framework begins with establishing a sense of urgency around the
need for change. The purpose is to make the status quo less acceptable and motivate movement
toward change. Current C721 materials identify Kotter's model and its first-step emphasis on
urgency.
6.
A change leader has convinced employees that a new strategy is necessary. The next challenge is
ensuring influential managers from different functions actively support implementation. Which
Kotter concept best fits?
A. Form a guiding coalition
B. Refreeze behavior
C. Conduct an external audit
D. Eliminate organizational culture
Answer: A. Form a guiding coalition
