chapter 10

Question 1

what is reactive change

Answer 1

making changes in response to problems or opportunities as they arise

Question 2

Daniel Bernoulli’s Expected Utility Hypothesis:

Answer 2

EU = P x V

Question 3

What is the difference between human capital and social capital?

Answer 3

Human capital = Individual
Social capital = group working together

Question 4

What does “span of control” mean? Give an example.

Answer 4

The number of subordinates that can be managed effectively and efficiently by supervisors or managers in an organization.

An example would be - A manager with five direct reports has a span of control of five.

Question 5

What is the difference between centralization and decentralization of authority?

Answer 5

Centralization concentrates on the authority at the senior level, whereas decentralization concentrates on the level-down authority of functional workers.

• If you have a small company practice centralization, whereas if the company is big practice decentralization.

Question 6

Identify and describe the competing values framework – the four types of
corporate culture and both axes.

Answer 6

1) clan culture
2) adhocracy culture
3) market culture
4) hierarchy culture

Question 7

Describe the steps and process of Lewin’s Change Model.

Answer 7

1) unfreezing
2) moving or changing towards new ways of being
3) then refreezing into a new state altogether

Question 8

What is the difference between reactive change and proactive change?

Answer 8

Proactive change is change that is initiated by an organization because it is desirable to do so

Reactive change is change initiated in an organisation because it is made necessary by outside forces

Question 9

What is the difference between adaptive, innovative, and radically innovative change?

Answer 9

Adaptive change - least threatening

Innovative change - somewhat threatening

Radically change - very threatening

Question 10

What is the difference between product and process innovation?

Answer 10

Product innovation - creation and introduction of a good or service that is new to the market or an improved version of a previous product

Process innovation - implementing a new or improved production or delivery method.

Question 11

what is proactive/planned change ?

Answer 11

involves making carefully thought out changes and anticipation of possible expected problems.

Question 12

steps of the Kotters model

Answer 12

1) establish a sense of urgency
2) create the guiding coalition
3) develop a change vision
4) communicate the vision for buy in
5) empower broad based action
6) generate short term wins
7) never let up
8) cooperate change into the culture