Chapter 8: Managing Change and Innovation Flashcards
the adoption of a new idea or behavior by an organization.
organizational change
innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers.
disruptive innovation
(ex: Netflix turned into an online-streaming service which kicked Blockbuster out of competition)
Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.
reverse innovation
T or F: Change–especially major change such as that associated with disruptive innovation– is not easy.
True
incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations.
ambidextrous approach
(so like managers encourage flexibility and freedom to innovate and PrOPOSE new ideas with creative departments and other mechanisms, but they use a more rigid, centralized, and standardized approach for IMPLEMENTING innovations)
The smartphone, which essentially puts a computer in people’s pockets, is an example of __________ because it has replaced other technologies.
a. A reverse innovation
b. An ambidextrous approach
c. Disruptive innovation
c. Disruptive innovation
a change in the organization’s product or service output.
product change (is a vital area of change that organization’s must embrace)
Product and service innovation is the primary way in which organizations adapt to changes in _______, ______, and _______.
markets, technology, and competition
a change in the organization’s production process- how the organization does its work.
technology change
(Technology changes are designed to make the production of a product or service more efficient.)
What are the 3 critical innovation strategies for changing products and technologies?
- Exploration
- Cooperation
- Innovation Roles
Match each of the following descriptions to which critical innovation strategy for changing products and technologies they describe:
1. involves designing the organization to encourage creativity and the initiation of new ideas → creativity, bottom-up approach, internal contests, idea incubators
2. managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation → idea champions, new venture teams, skunkworks, new venture fund
3. creating conditions and systems to facilitate internal and external coordination and knowledge sharing → horizontal coordination mechanisms, customers, partners, open innovation
- Exploration
- Innovation Roles
- Cooperation
Taco Bell and Mcdonald’s are considering adding kiosks in restaurants for customers to place their orders. This ________ change will hopefully make the ordering process more efficient and increase accuracy.
a. Product change
b. Technology change
b. technology change
_________ is the stage where ideas for new products and technologies are born.
Exploration
refers to the generation of novel ideas that might meet perceived needs or respond to opportunities for the organization.
creativity
Innovative companies use a _______-____ approach to creativity, encouraging the flow of ideas from lower levels and making sure they get heard and acted upon by top executives.
bottom-up
a mechanism that provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics
idea incubator
T or F: Ideas for product and technology innovations typically originate at lower levels of the organization and need to flow horizontally across departments.
True
Successful innovation requires expertise from several departments simultaneously, and failed innovation is often the result of failed _________.
cooperation
What approach/model to successful innovation shows that the research, manufacturing, and sales and marketing departments within an organization simultaneously contribute to new products and technologies?
Horizontal Linkage Model
The Horizontal Linkage Model has to do with (internal/external) coordination.
internal
extending the search for and commercialization of new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry.
open innovation (has to do with external coordination)
(ex: game maker Rovio extended the commercialization of the Angry Birds brand into books, movies, and toys by letting outsiders license the popular gaming app)
refers to using the internet to let hundreds of thousands of people contribute to the innovation process.
crowdsourcing (has to do with external coordination; is a type of open innovation)
recognizes that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms; so, companies buy start-up companies in order to obtain the innovative products and services, and often the talent behind them as well
Innovation by Acquisition Strategy (has to do with external coordination)
(examples: Google bought Android, Facebook bought Instagram, and Amazon bought Twitch Interactive)
a person who sees the need for and champions productive change within the organization.
idea champion (has to do with innovation roles)
Idea champions often persevere through numerous challenges and setbacks, which requires perseverance and passion, sometimes called _____.
grit
a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation.
new-venture team (has to do with innovation roles)
a separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas; highly talented people are given the time and freedom to allow their creativity to reign
skunkworks (has to do with innovation roles)
provides financial resources from which individuals or teams can draw to develop new ideas, products, or businesses. (provide funding to new-venture projects)
new-venture fund (has to do with innovation roles)
T or F: Risk taking is a negative thing.
False; it isn’t ALWAYS a bad thing; it allow innovation to occur.
T or F: All successful changes involve changes in people and culture as well.
True (Changes in people and culture pertain to how employees think—changes in mind-set.)
What kind of change concerns just a few employees, such as sending a handful of middle managers to a training course to improve their leadership skills?
people change
What kind of change pertains to the organization as a whole and is not easy?
culture change
Who do you want to start with when trying to make a cultural change, and why?
Managers, because they have a big influence on employees
What are two specific tools that managers can use to smooth the culture change process?
- Training and Development Programs
- Organization Development (OD)
one of the most frequently used approaches to changing people’s mind-sets
training
Many companies particularly emphasize training and development for _________, with the idea that the behavior and attitudes of them will influence people throughout the organization and lead to culture change.
managers
A planned, systematic process of change that uses behavioral science techniques to improve an organization’s health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities.
organization development (OD)
Organization development focuses on the ________ and ________ aspects of the organization and works to change attitudes and relationships among employees, helping to strengthen the organization’s capacity for adaptation and renewal.
human; social
Organization Development (OD) can help managers address at least 3 types of current problems:
- Mergers and acquisitions (there can be different values/beliefs within the two companies, so OD can help with this)
- Organizational decline/revitalization
- Conflict management
OD consultants use a variety of specialized techniques to help meet their goals. Three of the most popular and effective are the following:
- Team building
- Survey feedback
- Large group intervention approach
Match the following definitions to which OD specialized technique they describe:
1. begins with a questionnaire distributed to employees, the results of which are used to identify and solve problems.
2. brings together participants from all parts of the organization to discuss problems or opportunities and plan for change.
3. enhances the cohesiveness of success of organizational groups and teams.
- Survey feedback
- Large group intervention approach
- Team building
T or F: In relation to survey feedback activities, after the survey is completed, an OD consultant meets with groups of employees to provide feedback about their responses and the problems identified. Employees are engaged in problem solving based on the data.
True
Which of the OD specialized techniques does this most align with:
An OD approach that brings together people from different parts of the organization (and often including outside stakeholders) to discuss problems or opportunities and plan for change.
Large group intervention
T or F: A team building activity might involve 50 to 500 people and last for several days. The idea is to include everyone who has a stake in the change, gather perspectives from all parts of the system, and enable people to create a collective future through sustained, guided dialogue
False; a LARGE GROUP INTERVENTION
If an OD consultant is hired to implement ________, this activity will include meeting with employees from across the organization and often external stakeholders to have a sustained, guided, dialogue.
a. Team building
b. Survey feedback
c. A large-group intervention
c. A large-group intervention
For the following categories, describe how they differ between the Traditional Organization Development Model and the Large Group Intervention Model:
1. Focus for action: (specific problem or group/entire system)
2. Information:
- Source: (organization &
environment/organization)
- Distribution: (widely
shared/limited)
3. Time frame: (gradual/fast)
4. Learning: (individual, small group/ whole organization)
5. Change process: (rapid transformation/incremental change)
Traditional Organization Model:
1. specific problem or group
2. organization; limited
3. gradual
4. individual, small group
5. incremental change
Large Group Intervention Model:
1. entire system
2. organization and environment; widely shared
3. fast
4. whole organization
5. rapid transformation
What are the 3 Organizational Develop Stages/Steps?
- Unfreezing
- Changing
- Refreezing
What stage of the OD process does this describe:
makes people throughout the organization aware of problems and the need for change.
Unfreezing
The unfreezing stage is often associated with ________, which uses an outside expert called a _______ ______.
diagnosis; change agent
an OD specialist who performs a systematic diagnosis of the organization and identifies work-related problems.
change agent
(this person gathers/ analyzes data through personal interviews, questionnaires, and observations of meetings. The diagnosis helps determine the extent of organizational problems and helps unfreeze managers by making them aware of problems in their behavior.)
Which stage of the OD process does this describe:
occurs when individuals experiment with new behavior and learn new skills to be used in the workplace.
This stage is sometimes known as _______.
changing; intervention
In what stage does the change agent implement a specific plan for training managers and employees?
changing
What stage of the OD process does this describe:
occurs when individuals acquire new attitudes or values and are rewarded for them by the organization. (consistently re-enforcing new behaviors)
refreezing
In the refreezing stage of the OD process:
- The impact of new behaviors is ______ and _______.
- The change agent supplies _____ _____ that show _______ changes in performance.
- evaluated; reinforced
- new data; positive
During the ________ stage of change, managers might confront employees with clear evidence that the company’s current performance is not competitive.
a. Changing
b. Unfreezing
c. Refreezing
b. Unfreezing
The final step in the change process is _________.
implementation
T or F: To effectively implement change, it’s important to be aware of the reasons people resist change and to use techniques that can overcome resistance and enlist employee buy-in.
True
What are 4 reasons why people may resist change?
- Self-Interest
- Lack of Understanding and Trust
- Uncertainty
- Different Assessments and Goals
People typically resist a change that they believe conflicts with their _____-______.
The fear of ______ ______ is perhaps the biggest obstacle to organizational change.
- self interests
- personal loss
Employees often distrust the _______ behind a change or do not understand the intended purpose of a change.
intentions
the lack of information about future events and represents a fear of the unknown.
uncertainty
People who will be affected by a change or innovation may _______ the situation differently than managers or promoters of a new idea do.
assess
Strategies for overcoming resistance and implementing change typically involve three approaches:
1. making people aware of the need for change by creating a _____ ___ ______
2. analyzing resistance through the ____-_____ technique
3. using _______ ________ tactics.
- sense of urgency
- force-field technique
- selective implementation
A disparity between actual (existing) and desired performance.
need for change
A technique for determining which forces drive a proposed change (problems and opportunities) and which forces restrain it (barriers to change).
force-field analysis
What are 5 specific implementation tactics companies can use to overcome resistance and more smoothly put changes into action?
Put a star next to the main 3 we went over in class.
- Participation *
- Negotiation *
- Coercion *
- Top management support
- Communication, education
Which implementation tactic does this describe:
- Involves users and potential resistors in designing the change
- is time consuming, but it pays off because users understand and become committed to the change.
participation
Which implementation tactic does this describe:
- Uses formal bargaining to win acceptance and approval of a desired change
- (Also would be an example of collective bargaining agreement with a union)
negotiation
Which implementation tactic does this describe:
- managers use their formal power to force employees to change
- shouldn’t be first choice, but may be necessary in crisis situations when a rapid response is urgent.
coercion
For the following “when to use” statements, match them with which implementation tactic fits best:
1. Change involves multiple departments or reallocation of resources; users doubt legitimacy of change
2. users need to feel involved, design requires information from others, users have power to resist
3. change is technical, users need accurate information and analysis to understand change
4. a crisis exists, initiators clearly have power, other implementation techniques have failed
5. group has power over implementation, group will lose out in the change
- Top Management Support
- Participation
- Communication, Education
- Coercion
- Negotiation
