Understanding Management 10th

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Chapter 08 Managing Change and Innovation

TRUEFALSE

1. Organizational change refers to the adoption of a new idea or behavior by an organization.

(A) True

(B) False

Answer : (A)

2. An ambidextrous approach means incorporating structures and processes that are appropriate for
both the creative impulse and for the systematic implementation of innovations.

(A) True

(B) False

Answer : (A)

3. Confrontation, authoritarianism, and disciplined exploration are characteristics of the creative

individuals.

(A) True

(B) False

Answer : (B)

4. The acceptance of mistakes, the freedom to discuss ideas, and the assignment of nonspecialists to
problems are characteristics of creative organizations or departments.

(A) True

(B) False

Answer : (A)

5. An idea incubator is in-house program that provides a safe harbor where ideas from employees
throughout the organization can be developed without interference from company bureaucracy or
politics.

(A) True

(B) False

Answer : (A)
6. The horizontal linkage model is increasingly important in high pressure business environments
that require rapidly developing and commercializing products and services.

(A) True

(B) False

Answer : (A)

7. A person who sees the need for and champions productive change within the organization is
called an idea champion.

(A) True

(B) False

Answer : (A)

8. People change starts with training everyone in the organization.

(A) True

(B) False

Answer : (B)

9. Training is one of the most frequently used approaches to changing people's mindsets.

(A) True

(B) False

Answer : (A)

10. Organizational development involves the application of behavioral science techniques to improve
an organization's effectiveness and success.

(A) True

(B) False

Answer : (A)

11. Mergers/acquisitions, organizational decline, and conflict management are the three types of
current problems that organizational development managers face.

(A) True

(B) False
Answer : (A)

12. The idea in the large-group intervention is to get a sample of people who may have an interest in
the organization, gather perspectives from the selected parts of the system, and allow the sample to
create a collective future.

(A) True

(B) False

Answer : (B)

13. Survey feedback enhances the cohesiveness and success of organizational groups and teams.

(A) True

(B) False

Answer : (B)

14. A change agent is an OD specialist who contracts with an organization to facilitate change.

(A) True

(B) False

Answer : (A)

15. In the unfreezing step, participants must be made aware of problems and be willing to change.

(A) True

(B) False

Answer : (A)

16. The communication and education approach for overcoming resistance to change should be used
when the change is technical and the users need accurate information and analysis to understand
change.

(A) True

(B) False

Answer : (A)

17. Two possible tactics for overcoming resistance to change are coercion and negotiation.
(A) True

(B) False

Answer : (A)

18. The disparity between existing and desired performance levels is the need for change.

(A) True

(B) False

Answer : (A)

19. Lack of trust is perhaps the biggest obstacle to organizational change.

(A) True

(B) False

Answer : (B)

20. Restraining forces can be thought of as problems or opportunities that provide motivation for
change within the organization.

(A) True

(B) False

Answer : (B)

MULTICHOICE

21. For the compact disc industry, the advent of MP3 technology can best be described as what type
of innovation?

(A) Disruptive innovation

(B) Service innovation

(C) Productive innovation

(D) Restructuring innovation

(E) Reverse innovation

Answer : (A)
22. Successful change requires that organizations be capable of both creating and implementing
ideas, which means the organization must learn to be:

(A) cordial.

(B) rightsized.

(C) ambidextrous.

(D) compliant.

(E) intra-focused.

Answer : (C)

23. Artful Innovations Inc. operates with open channels of communication and an established
suggestion system that encourages brainstorming and freewheeling discussions. Artful Innovations
can best be described as a(n)_____ type of organization.

(A) experimental organization

(B) cooperative organization

(C) entrepreneurial organization

(D) disruptive organization

(E) creative organization

Answer : (E)

24. Creative organizations:

(A) are characterized by an unusually high number of routine jobs.

(B) are loosely structured.

(C) have little ambiguity.

(D) have too many layers of management.

(E) use a centralized decision making approach.

Answer : (B)

25. According to Fast Company, in 2013, _____ was ranked as the World's Most Innovative Company.

(A) Nike

(B) Pinterest

(C) Target
(D) Apple

(E) Procter & Gamble

Answer : (A)

26. Which of the following provides a safe harbor where ideas from employees throughout the
company can be developed without interference from company bureaucracy or politics?

(A) An idea champion

(B) A sponsor

(C) A new-venture team

(D) An idea incubator

(E) An inventor

Answer : (D)

27. The horizontal linkage model is best applied to a(n):

(A) low pressure environment.

(B) stable environment.

(C) environment that requires speed.

(D) customer service environment.

(E) manufacturing environment.

Answer : (C)

28. Ashley has average technical skills but her real strengths lay in visualizing the benefits of other's
ideas and in finding financial and political support for these ideas. Ashley is an excellent example of
a(n):

(A) critic.

(B) sponsor.

(C) idea champion.

(D) inventor.

(E) bureaucrat.

Answer : (C)
29. "The Brain" is a permanent secret group within one of the nation's largest auto manufacturers.
Members of this elite group focus intently on developing new and innovative automobile
technologies. "The Brain" can best be described as what type of group or team?

(A) Cross-functional team

(B) Fast-cycle team

(C) Brainstorming team

(D) Skunkwork

(E) New-venture team

Answer : (D)

30. Jurgen is one of several middle managers sent to a training course on leadership skills. Through
this effort, the organization is attempting:

(A) organization change

(B) organization development

(C) people change

(D) culture change

(E) artifact change

Answer : (C)

31. _____ is NOT a type of current problem that organizational development can help address.

(A) Mergers

(B) Acquisitions

(C) Diversification

(D) Organizational decline

(E) Conflict management

Answer : (C)

32. High-Low Productions recently appointed 75 employees and external stakeholders to a

temporary group that would discuss problems and opportunities, and would gather perspectives on
changes that need to take place within the company. High-Low Productions is utilizing which
organizational change tool?

(A) Organizational development

(B) Skunkwork

(C) Telecommuting

(D) Focus group

(E) Large-group intervention

Answer : (E)

33. Which of the following is a characteristic of the large-group intervention model?

(A) Results in incremental change

(B) Learning for the small group

(C) Addresses the entire system

(D) Gradual time frame

(E) Limited distribution

Answer : (C)

34. Cyrus's Resort has proposed some major structural changes within their organization. Some of
the employees fear that they will lose power with the changes. They begin voicing resistance to the
changes. What barrier to change are they exhibiting?

(A) Disagreements about the benefits

(B) Self-interests

(C) A lack of understanding and trust

(D) Uncertainty

(E) Goals and rewards

Answer : (B)

35. After every quarterly board meeting, Bernice's Bracelets, Inc. announces big changes. They
usually do not follow through on these changes. What is causing this lack of enthusiasm?

(A) Disagreements about the benefits

(B) Self-interests

(C) A lack of trust

(D) Goals and assessments

(E) Competitors
Answer : (C)

36. _____ schedule materials to arrive at a company just as they are needed on the production line.

(A) Mass customization systems

(B) LIFO systems

(C) First-in, first-out systems

(D) Just-in-time inventory systems

(E) Last-in, first-out systems

Answer : (D)

37. When trying to overcome the resistance for change, which approach is best suited when change
is technical?

(A) Coercion

(B) Top management support

(C) Negotiation

(D) Participation

(E) Communication

Answer : (E)

38. Before implementing new changes in work schedules, Trudy's Trinkets works with the union to
ensure a smooth transition. What approach to change is this company using?

(A) Negotiation

(B) Top management support

(C) Participation

(D) Coercion

(E) Education

Answer : (A)

39. Sandbox Sally's, Inc. is making some changes to the work schedules of its employees. Some of
the employees are not happy with the changes. As their manager, Harry tells them that they can
accept it or leave. What approach to change implementation is Harry using?
(A) Negotiation

(B) Top management support

(C) Participation

(D) Coercion

(E) Education

Answer : (D)

40. The _____ approach is the most appropriate when users have the power to resist the proposed
change.

(A) negotiation

(B) top management support

(C) participation

(D) coercion

(E) education

Answer : (C)

SHORTANSWER

41. _____ change is related to the organization's production process, i.e., how the organization does
its work.Answer : Technology

42. The innovation strategy for changing products and technologies that involves creating
conditions and systems to facilitate internal and external coordination and knowledge sharing is
known as _____ .Answer : cooperation

43. _____ is the generation of novel ideas that may meet perceived needs or respond to opportunities
for the organization.Answer : Creativity

44. The innovation strategy for changing products and technologies that involves managers putting
in place processes and structures to ensure that new ideas are carried forward for acceptance and
implementation is known as _____ .Answer : innovation roles

45. _____ means extending the search for and commercializing new ideas beyond the boundaries of
the organization and even beyond the boundaries of the industry.Answer : Open innovation

46. The _____ role in organizational change involves providing a "reality test."Answer : critic

47. A(n) _____ is a separate small, informal, highly autonomous, and often secretive group that
focuses on breakthrough ideas for the business.Answer : skunkwork

48. The application of behavioral science knowledge to improve an organization's health and
effectiveness is known as _____ .Answer : organizational development

49. A type of OD intervention that enhances the cohesiveness of departments by helping members
learn to function as a team is called _____.Answer : team building

50. A type of OD intervention in which questionnaires on organizational climate and other factors
are distributed among employees and the results reported back to them by a change agent is called
_____ .Answer : survey feedback

51. An OD specialist who contracts with an organization to facilitate change is called a(n)
_____.Answer : change agent

52. A disparity between existing and desired performance levels is known as a(n) _____ .Answer :
need for change

53. The second stage in Lewin's change model, _____ , occurs when individuals experiment with new
behavior and learn new skills to be used in the workplace.Answer : changing

54. _____ symbolizes to all employees that the change is important for the organization.Answer :
Top management support

55. _____ is lack of information about future events.Answer : Uncertainty

56. Some companies are practicing _____ innovation by creating innovative, low-cost products for
emerging markets and then quickly and inexpensively repackaging them for sale in developed
countries.Answer : reverse

57. _____ forces are the various barriers to change, such as a lack of resources, resistance from
middle managers, or inadequate employee skills.Answer : Restraining

ESSAY

58. List the four reasons why employees tend to resist change.

Graders Info :

Self-interest, lack of understanding and trust, uncertainty, and different assessments and goals.

59. List the five specific tactics that can be used to overcome employee resistance to change.

Graders Info :

Communication and education, participation, negotiation, coercion, and top management support.
60. What is organizational change and what are two major areas of change in organizations?

Graders Info :

Organizational change is the adoption of a new idea or behavior by an organization. Two key aspects
of change in organizations are introducing new products and technologies, and changing people and
culture.

61. Explain the horizontal linkage model.

Graders Info :

The horizontal linkage model is defined as an approach to product change that emphasizes shared
development of innovations among several departments. People from various departments, as well
as suppliers and customers, meet frequently in teams and/or task forces to share ideas and solve
problems together.

62. Describe the five characteristics of creative people and organizations.

Graders Info :

The five characteristics are conceptual fluency/open mindedness, originality, less

authority/independent, playful and curious, and persistent and committed.

63. Name and briefly describe the four roles in championing an idea for organizational change.

Graders Info :

The first role is the inventor, who develops and understands the technical aspects of the idea, but
does not know how to win support for the idea or how to make a business of it. The second role is
the champion, who believes in the idea, sees the benefits, confronts costs, and obtains financial and
political support for the idea. The third role is the sponsor, a higher level manager who removes
organizational barriers and protects the idea within the organization. The fourth role is the critic,
who provides a reality test, looks for shortcomings and defines hard-nosed criteria that the idea
must pass.

64. Explain the concept of force-field analysis.

Graders Info :

Force-field analysis was first proposed by Kurt Lewin. He argued that change was the result of the
competition between driving and restraining forces. Driving forces are the forces behind the change
and are supportive of it. Restraining forces resist the proposed change, counterbalancing the driving
forces. To successfully implement change, management should analyze these two sets of forces and
their relative strengths. Management can facilitate successful implementation by reducing the
strength of the restraining forces or by eliminating them.

65. Describe the tactics for overcoming resistance to change.

Graders Info :

The four tactics for overcoming resistance to change are: (1) communications/education which is
used when change is technical, (2) participation, which is used when the users need to feel involved,
(3) negotiation, which is used when the group has power over implementation, (4) coercion, which is
utilized when a crises exists, and finally (5) top management support, which is use when change
involves multiple departments of reallocation of resources.