Final answer:
The state in which people must accept that their past ways of doing things are obsolete is described as the 'unfreezing' state. This is the first stage in the change management process where individuals and organizations acknowledge the need for change.
Option 'B' is the correct.
Step-by-step explanation:
The concept that is being described in the question relates to a change management process. This process is often conceptualized in three stages: unfreezing, change, and refreezing.
In the unfreezing stage, people within an organization acknowledge that their current way of doing things is outdated and prepare for change.
This involves letting go of old systems and beliefs, and is often the most psychologically challenging part of the process as it requires individuals to step out of their comfort zones and detach from procedures and ideas they were used to.
Following the unfreezing stage, the actual change occurs where new methods are implemented. Finally, the refreezing stage solidifies these changes into the new norm. In contrast, freezing (or refreezing) is where new behaviors are crystallized, and the system stabilizes. Span of management and span of control refer to management theories regarding the number of subordinates that a manager or executive oversees, and are not directly related to accepting obsolete methodologies.
Therefore, the correct answer to the question 'In which state must people accept that their past ways of doing things are obsolete?' is A. Unfreezing. This is the phase where realization and openness to change occur before new practices are adopted and solidified within the organization.