Chapter 10

Question 1

trends in organizational change

Answer 1

1. segmentation and niche products (organizations now catering to narrow segments of customers; means they must offer wide variety to specific groups of ppl)
2. targeted products within shorter time to market (companies trying to beat competitors by being first to market)
3. radical innovation is hurting traditional companies (established companies cannot take advantage of disruptive innovation)
4. the effect of China and India (have workforce that will work for lower wages than US labor and is just as effective)
5. knowledge as a competitive advantage (data workers more important as computers and information tech gradually replacing skilled workers)

Question 2

_____ change refers to making changes in response to problems or opportunities as they arise

ex: BP oil spill

Answer 2

reactive

Question 3

_____ change refers to carefully thought-out changes made in anticipation of possible or expected problems or opportunities

ex: Disney’s MagicBands

Answer 3

proactive

Question 4

forces for change coming from OUTSIDE the organization

Answer 4

1. demographic changes
2. changes in the market (competition, mergers, and acquisitions)
3. technological advancements (automation)
4. shareholder and customer demands
5. social and political pressures

Question 5

forces for change coming from INSIDE the organization

Answer 5

1. problems with employees

2. behavior of managers

Question 6

______ change is the reintroduction of a familiar practice

ex: once a year, a department store might ask employees to work 12 hrs a day instead of 8 during inventory wk

Answer 6

adaptive

Question 7

______ change is the introduction of a practice that is new to the organization

ex: dept. store may ask employees to work flexible schedules so that the store can stay open 24 hrs

Answer 7

innovative

Question 8

______ change is the introduction of a practice that is new to the industry

ex: dept. store might start selling some of its goods on the internet

Answer 8

radically innovative

Question 9

_____ change is the least costly, complex, and uncertain type of change; it generally results in the least employee resistance

Answer 9

adaptive

Question 10

_____ change is the most costly, complex, and uncertain type of change; generally receives the most resistance from employees

Answer 10

radically innovative

Question 11

Lewin’s Change Model

Answer 11

change occurs in 3 ways:

1. unfreezing
2. changing
3. refreezing

Question 12

during the _____ stage, managers stir up a motivation to change by encouraging workers to give up the old ways of doing things

Answer 12

unfreezing

Question 13

during the _____ stage, managers give employees the tools they need to change, including benchmarking, mentors, experts, and training

Answer 13

changing

Question 14

during the _____ stage, the changed attitudes and behavior are integrated into employees’ normal ways of doing things

Answer 14

refreezing

Question 15

a process by which a company compares its performance to that of high-performing organizations

Answer 15

benchmarking

Question 16

Kotter’s 8 Steps for Leading Organizational Change

Answer 16

1. create a sense of urgency
2. create a guiding coalition
3. develop a vision and strategy
4. communicate the change vision
5. empower broad-based action
6. generate short-term wins
7. consolidate gains and produce more change
8. anchor new approaches in the culture

Question 17

which steps in Kotter’s model correspond with Lewin’s unfreezing stage?

Answer 17

steps 1-4

1. create a sense of urgency
2. create a guiding coalition
3. develop a vision and strategy
4. communicate the change vision

Question 18

which steps in Kotter’s model correspond with Lewin’s changing stage?

Answer 18

steps 5-7

5. empower broad-based action
6. generate short-term wins
7. consolidate gains and produce more change

Question 19

which step in Kotter’s model correspond with Lewin’s refreezing stage?

Answer 19

step 8

8. anchor new approaches in the culture

Question 20

According to Kotter’s research…

Answer 20

successful organizational change is fundamentally due to leadership, not management

***managers should focus on leading rather than managing change

Question 21

_____ is simply the process of creating something new, while _____ is the process of coming up with new ideas and turning them into useful applications (usually goods and services)

Answer 21

invention; innovation

Question 22

_____ is the process of developing something new or unique

Answer 22

creativity

Question 23

the most innovative firms…

Answer 23

are not afraid of failure

***key is to “fail early, fail cheaply, and don’t make the same mistake twice”

Question 24

two myths about innovation

Answer 24

1. innovation happens in a “eureka!” moment (most is due to hard work and dedication)
2. innovation can be systematized (too many challenges and success is unpredictable)

Question 25

_____ innovation is a change in the appearance or performance of a product or service or the creation of a new one

Answer 25

product

Question 26

_____ innovation is a change in the way a product or service is conceived, manufactured, or disseminated

Answer 26

process

Question 27

_____ innovation is the modification of a product, service, or technology that is intended for existing customers

ex: liquid detergent –> tide pods

Answer 27

core

Question 28

_____ innovation is the creation of a product, service, or technology that replaces existing ones and is intended to create new markets

ex: K-Cups in coffee industry

Answer 28

transformational

Question 29

3 ways organizations can encourage innovation

Answer 29

1. create a culture that celebrates failure
2. assign the right people and devote the right amount of time, energy, and focus to innovation
3. reward top-performing innovators

Question 30

Jim Collins’ 5 Stages of Institutional Decline

Answer 30

1. hubris born of success (success causes employees/managers to become arrogant)
2. undisciplined pursuit of more ( bc of arrogance, companies believe they can do anything successfully)
3. denial of risk and peril (managers discount early warning signs and focus on positive rather than harsh reality)
4. grasping for salvation (company’s performance suffers significantly; managers desperately look for bold strategies/comebacks)
5. capitulation to irrelevance or death (managers realize they have lost, either have to sell or go bankrupt)

Question 31

______ is an emotional and behavioral response to real or imagined threats to an an established work routine

Answer 31

resistance to change

Question 32

_____ consist of his/her perceptions to change, individual differences, and actions and inactions

Answer 32

employee characteristics

Question 33

_____ individual who is catalyst for helping organizations change

Answer 33

change-agent

Question 34

resistance is reduced when change agents and employees have a trusting relationship

Answer 34

importance of change-agent employee relationship

Question 35

10 reasons employees resist change

Answer 35

1. predisposition towards change
2. fear of the unknown
3. climate of mistrust
4. fear of failure
5. loss of job security or status
6. peer pressure
7. disruption of group relationships and cultural traditions
8. personality conflicts
9. poor timing or lack of tact
10. non-reinforcing reward systems