Easy2 marksMultiple Choice
Leadership and managementSection ASyllabus DChange Management

ACCA · Question 16 · Leadership and management

Oceanic Freight, a legacy shipping company, is transitioning to automated port logistics. The CEO holds a town hall meeting to share alarming financial data showing that if they do not automate, the company will be bankrupt within two years. According to Lewin's Change Management model, which stage is the CEO initiating?

Answer options:

A.

Unfreezing

B.

Changing (or Moving)

C.

Refreezing

D.

Storming

How to approach this question

Identify the purpose of the CEO's action: creating a sense of urgency and breaking down resistance to the upcoming change. This aligns with the first step of Lewin's model.

Full Answer

A.Unfreezing✓ Correct
Kurt Lewin's model consists of Unfreeze, Change, and Refreeze. 'Unfreezing' involves preparing the organization for change by dismantling the current mindset and creating a compelling need for change, often by sharing harsh realities.

Common mistakes

Selecting 'Changing' because a transition is mentioned. The specific action (the town hall meeting) is preparation, not the change itself.

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