Question

Since the integration of two new stores, Fred Fryer's Donuts, Inc. has recognized that there is a need for reengineering the entire organization. The main need is to install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained to operate the new computer programmed equipment. Some of the older employees are worried that learning the computerized system may be too difficult. Fred is setting up the main store as a training store. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before employees return to their jobs. The organization is also replacing the old employee reporting system. Ordering of materials will now be done by an intranet. Fred has promised that no one will lose his or her job because of the organizational changes. He estimates that when the employees get to the computer programming training, as many as 10 percent of the current employees will resign or retire. He also thinks that opening a new store will absorb the excess employees.

The installation of the new equipment at is an example of ________.
A) process change
B) technological change
C) structural change
D) strategy change

Answer 1

The new kitchen equipment installation at Fred Fryer's Donuts, Inc. represents a technological change, involving the introduction of computer programmed equipment and upgrading of business systems for efficiency and productivity.

Step-by-step explanation:

The installation of the new equipment in Fred Fryer's Donuts, Inc. is an example of technological change. This is because the fundamental aspects of the kitchen operations are being updated with state-of-the-art computer programmed equipment, which will fundamentally alter how tasks are performed within the organization. What makes this a technological change is that the company is utilizing new technologies to increase efficiency, which often involves automation of tasks and could lead to new ways of doing business. The fear expressed by older employees about learning to operate these computerized systems is typical of technological changes, as they may disrupt existing work practices.

Moreover, upgrading the employee reporting system and initiating material ordering through an intranet are also aspects of technological advancements. These changes anticipate a reduction in the workforce, a common effect of such transitions, as Fred predicts a certain percentage of employees will resign or retire. However, the overall aim seems to be an increase in efficiency and productivity, which aligns with introducing new technology into business operations.