Chapter 10 Flashcards
trends in organizational change
- segmentation and niche products (organizations now catering to narrow segments of customers; means they must offer wide variety to specific groups of ppl)
- targeted products within shorter time to market (companies trying to beat competitors by being first to market)
- radical innovation is hurting traditional companies (established companies cannot take advantage of disruptive innovation)
- the effect of China and India (have workforce that will work for lower wages than US labor and is just as effective)
- knowledge as a competitive advantage (data workers more important as computers and information tech gradually replacing skilled workers)
_____ change refers to making changes in response to problems or opportunities as they arise
ex: BP oil spill
reactive
_____ change refers to carefully thought-out changes made in anticipation of possible or expected problems or opportunities
ex: Disney’s MagicBands
proactive
forces for change coming from OUTSIDE the organization
- demographic changes
- changes in the market (competition, mergers, and acquisitions)
- technological advancements (automation)
- shareholder and customer demands
- social and political pressures
forces for change coming from INSIDE the organization
- problems with employees
2. behavior of managers
______ 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
adaptive
______ 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
innovative
______ 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
radically innovative
_____ change is the least costly, complex, and uncertain type of change; it generally results in the least employee resistance
adaptive
_____ change is the most costly, complex, and uncertain type of change; generally receives the most resistance from employees
radically innovative
Lewin’s Change Model
change occurs in 3 ways:
- unfreezing
- changing
- refreezing
during the _____ stage, managers stir up a motivation to change by encouraging workers to give up the old ways of doing things
unfreezing
during the _____ stage, managers give employees the tools they need to change, including benchmarking, mentors, experts, and training
changing
during the _____ stage, the changed attitudes and behavior are integrated into employees’ normal ways of doing things
refreezing
a process by which a company compares its performance to that of high-performing organizations
benchmarking
Kotter’s 8 Steps for Leading Organizational Change
- create a sense of urgency
- create a guiding coalition
- develop a vision and strategy
- communicate the change vision
- empower broad-based action
- generate short-term wins
- consolidate gains and produce more change
- anchor new approaches in the culture
which steps in Kotter’s model correspond with Lewin’s unfreezing stage?
steps 1-4
- create a sense of urgency
- create a guiding coalition
- develop a vision and strategy
- communicate the change vision
which steps in Kotter’s model correspond with Lewin’s changing stage?
steps 5-7
- empower broad-based action
- generate short-term wins
- consolidate gains and produce more change
which step in Kotter’s model correspond with Lewin’s refreezing stage?
step 8
8. anchor new approaches in the culture
According to Kotter’s research…
successful organizational change is fundamentally due to leadership, not management
***managers should focus on leading rather than managing change
_____ 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)
invention; innovation
_____ is the process of developing something new or unique
creativity
the most innovative firms…
are not afraid of failure
***key is to “fail early, fail cheaply, and don’t make the same mistake twice”
two myths about innovation
- innovation happens in a “eureka!” moment (most is due to hard work and dedication)
- innovation can be systematized (too many challenges and success is unpredictable)
_____ innovation is a change in the appearance or performance of a product or service or the creation of a new one
product
_____ innovation is a change in the way a product or service is conceived, manufactured, or disseminated
process
_____ innovation is the modification of a product, service, or technology that is intended for existing customers
ex: liquid detergent –> tide pods
core
_____ 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
transformational
3 ways organizations can encourage innovation
- create a culture that celebrates failure
- assign the right people and devote the right amount of time, energy, and focus to innovation
- reward top-performing innovators
Jim Collins’ 5 Stages of Institutional Decline
- hubris born of success (success causes employees/managers to become arrogant)
- undisciplined pursuit of more ( bc of arrogance, companies believe they can do anything successfully)
- denial of risk and peril (managers discount early warning signs and focus on positive rather than harsh reality)
- grasping for salvation (company’s performance suffers significantly; managers desperately look for bold strategies/comebacks)
- capitulation to irrelevance or death (managers realize they have lost, either have to sell or go bankrupt)
______ is an emotional and behavioral response to real or imagined threats to an an established work routine
resistance to change
_____ consist of his/her perceptions to change, individual differences, and actions and inactions
employee characteristics
_____ individual who is catalyst for helping organizations change
change-agent
resistance is reduced when change agents and employees have a trusting relationship
importance of change-agent employee relationship
10 reasons employees resist change
- predisposition towards change
- fear of the unknown
- climate of mistrust
- fear of failure
- loss of job security or status
- peer pressure
- disruption of group relationships and cultural traditions
- personality conflicts
- poor timing or lack of tact
- non-reinforcing reward systems
