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10 Chapter Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager Test Item Table by Major Question and Level of Learning Level of Learning Major Question Level 1: Knowledge (Knows Basic Terms & Facts) 1,4,6,8,9,10,11,12,20, 61,62,63,78 Level 2: Comprehension (Understands Concepts & Principles) 2,3,5,7,13,14,15,16,17,18,19, 21,22,23, 66,67,68,69,73,77, 123,124,125 24,25,26,30, 92, 126,128 Level 3: Application (Applies Principles) 64,65,70,71,72,74,75,76, 79,80,81,82 10.1 Since change is always with us, what should I understand about it? 10.2 What are the uses of OD, and how effective is it? 27,28,29,31,32,33,34, 83,84,85,87 86,88,89,90,91, 127 10.3 What do I need to know to encourage innovation? 39,41,42,45,49, 98,99,101,102,107 35,36,43,44,46,47,48, 93,94,95,96,97,103,105, 130,131 37,38,40, 100,104,106, 129 10.4 How are employees threatened by change, and how can I help them adjust? 50,51,52,53,54,55, 108,112,115,117,121 56,57,58,59,60, 109,110,113,118,119,120, 122 111,114,116, 132,133 Note: Bold numbers indicate short essay questions; italicized numbers indicate T/F questions. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 37 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager True/False Questions 1. An effective way to deal with change is to allow room for failure. Register to View AnswerPage: 311 LO: 1 Difficulty: Easy 2. AACSB: 3 BT: Knowledge People are generally comfortable and embrace change, even change in apparently major matters. Register to View AnswerPage: 312 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: People are generally uncomfortable about change, even change in apparently minor matters. If small changes can cause uneasiness, large changes can cause considerable stress. 3. People are generally uncomfortable about change, even change in apparently minor matters. Register to View AnswerPage: 312 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: People are generally uncomfortable about change, even change in apparently minor matters. If small changes can cause uneasiness, large changes can cause considerable stress. 4. The marketplace is becoming more homogeneous and moving toward more similar products. Register to View AnswerPage: 312 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge 5. Kodak is an example of the trend emerging that knowledge, not information, is becoming the new competitive advantage. Register to View AnswerPage: 313 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Kodak found its sales hit $14 billion in 1999 and dropped to $13.3 billion in 2003 because it did not transition quickly enough into the digital imaging business. 6. Speed is emerging as the ultimate competitive weapon for companies because there are more competitors offering targeted products. Register to View AnswerPage: 313 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge 7. When successful companies are confronted with a giant technological leap that transforms their markets, all choices are bad ones. Register to View AnswerPage: 313 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Some traditional companies may not survive radically innovative change. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 38 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 8. Offshore suppliers in countries such as China and India are changing the way American companies work. Register to View AnswerPage: 313 LO: 1 Difficulty: Easy 9. Information is becoming the new competitive advantage. Register to View AnswerPage: 314 LO: 1 Difficulty: Easy 10. The two types of change are proactive and responsive. Register to View AnswerPage: 314 LO: 1 Difficulty: Easy 11. Reactive change is planned change. Register to View AnswerPage: 314 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge AACSB: 3 BT: Knowledge AACSB: 3 BT: Knowledge AACSB: 3 BT: Knowledge 12. Proactive change involves making carefully thought-out changes in anticipation of problems that might never occur. Register to View AnswerPage: 315 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge 13. Coleman Natural Foods is ahead of the curve with natural beef. This is an example of reactive change. Register to View AnswerPage: 315 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Proactive change or planned change involves making carefully though-out changes (raising organic cattle) in anticipation of possible or expected problems or opportunities (the current organic trend). 14. The need for change can come from inside or outside the organization. Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: The forces for change occur both outside and inside the organization and are shown in figure 10.1. 15. Demographic characteristics are one type of external force for change in the organization. Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: The four external forces include demographic characteristics, market changes, technological advancements, and social and political pressures. 16. Managers behavior is one type of external force for change in the organization. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 39 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: The four external forces include demographic characteristics, market changes, technological advancements, and social and political pressures. Managers behavior is an inside force. 17. Constant labor-management conflict is an example of an internal force for organizational change. Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Internal forces affecting organizations may be subtle, or more dramatic, such as constant labor-management conflict. 18. Job dissatisfaction can be expressed through high absenteeism and turnover. Register to View AnswerPage: 317 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Job dissatisfactionas expressed through high absenteeism and turnover can be a major signal of the need for change. 19. Excessive conflict between managers and employees may be an indicator that change is needed. Register to View AnswerPage: 317 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Excessive conflict between managers and employees may be another indicator that change is needed. Perhaps there is a personality conflict. 20. The four areas in which change is most apt to be needed are people, technology, structure, and strategy. Register to View AnswerPage: 317 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge 21. Even in a two person organization, people changes may be required. Register to View AnswerPage: 317 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: The changes may take the following forms: perceptions, attitudes, performance, and skills. 22. When we use the word technology, we mean exclusively computer technology. Register to View AnswerPage: 317 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Technology is not just computer technology; it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 40 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 23. The recent trend is toward a taller organizational structure. Register to View AnswerPage: 318 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: When one organization acquires another, the structure often changes. The recent trend is toward flattening the hierarchy, eliminating several middle layers of management. 24. OD focuses specifically on the people aspects of change. Register to View AnswerPage: 319 LO: 2 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: OD focuses specifically on people in the change process. Organization development (OD) is a set of techniques for implementing planned change to make people and organizations more effective. 25. When they call upon OD, managers and consultants are focusing on short-term, temporary changes. Register to View AnswerPage: 319 LO: 2 Difficulty: Difficult AACSB: 3 BT: Application Rationale: OD is used to address things such as managing conflict, revitalizing organizations, and adapting to mergers. These require permanent change. 26. OD concentrates on processes such as communication and conflict management. Register to View AnswerPage: 319 LO: 2 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: OD is used to address things such as managing conflict, revitalizing organizations through opening communication, and adapting to mergers. 27. The three steps of the OD process are diagnosis, intervention, and support. Register to View AnswerPage: 319 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge 28. Process consultation, the first step of the OD process, focuses on the use of the employee survey to ascertain perceptions and attitudes. Register to View AnswerPage: 320 LO: 2 Difficulty: Easy 29. The second step in the OD process is diagnosis. Register to View AnswerPage: 320 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge AACSB: 3 BT: Knowledge 30. Patagonia is an organization that has practiced organization development. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 41 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager Register to View AnswerPage: 320 LO: 2 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: As customers have become more eco-aware, the company has been getting more questions about how green the origins and handling of its products are. The approach Patagonia took resembles the steps in organizational development. 31. Intervention is the attempt to correct the diagnosed problems using OD. Register to View AnswerPage: 320 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge 32. The evaluation stage of the OD process asks What shall we do about the problem? Register to View AnswerPage: 320 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge 33. Multiple interventions usually show that OD was not successful. Register to View AnswerPage: 321 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge 34. An OD intervention that worked in the U.S. will certainly work around the world. Register to View AnswerPage: 321 LO: 2 Difficulty: Easy AACSB: 5 BT: Knowledge 35. American companies currently put forth ads touting the spirit of innovation, but a study revealed that U.S. executives thought their own companies gave innovation short shrift. Register to View AnswerPage: 322 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: A survey of 4,559 corporate managers in 36 industries found that U.S. executives thought their own companies gave innovation or creativity short shrift only 4% felt their organizations could be respected for their leadership in this area. 36. The spirit of innovation is essential to keeping an organization vital in maintaining a competitive advantage. Register to View AnswerPage: 322 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Innovation is essential to keeping an organization vital. Otherwise, the innovation will come from your competitors, forcing you to scramble to catch upif you can. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 42 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 37. ABC Company reintroduces a sales contest just like one that happened two years ago. This is an example of an innovative change. Register to View AnswerPage: 323 LO: 3 Difficulty: Hard AACSB: 3 BT: Application Rationale: A process innovation is a change in the way a product or service is conceived, manufactured, or disseminated. A sales contest like the one that happened two years ago is not a change or innovation of any type. 38. California Critters manufactures dog treats and had used ingredients that were processed but the animals liked. With the new organic trend, California Critters now uses only organic ingredients in its products. The treats still are selling well. This is an example of an incremental product innovation. Register to View AnswerPage: 323 LO: 3 Difficulty: Hard AACSB: 3 BT: Application Rationale: A product innovation is a change in the appearance or the performance of a product (from processed ingredients to organic ingredients) or a service or the creation of a new one. The treats represent an incremental innovation since the original treats were modified. 39. Radical innovation is the creation of products, services, or technologies that replace existing ones. Register to View AnswerPage: 323 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge 40. Jobs and Wozniack introduced the Apple Computer in the early 1980s. At that time the Apple Computer was a radical innovation. Register to View AnswerPage: 323 LO: 3 Difficulty: Hard AACSB: 3 BT: Application Rationale: A radical innovation is the creation of products, services, or technologies that replace existing ones. In the case of the computer, information is captured electronically rather than on paper. 41. A product innovation is a change in the way a product or service is conceived, manufactured, or disseminated. Register to View AnswerPage: 323 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge 42. The creation of products, services, or technologies that replace existing ones is called incremental innovation. Register to View AnswerPage: 323 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 43 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 43. Entrepreneurs tend to be tolerant of ambiguity. Register to View AnswerPage: 324 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Entrepreneurs are willing to jump into things when its hard to even imagine what the possible outcomes will be, going ahead in the absence of information, very much capitalor even a very novel idea. 44. Innovation has only two characteristicsinteresting and uncertain. Register to View AnswerPage: 324-325 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Rosabeth Moss Kanter suggests that innovation has four characteristics: (1) innovating is an uncertain business; (2) people closest to the innovation know the most about it, at least initially; (3) innovation may be controversial; and (4) innovation can be complex because it may cross organizational boundaries. 45. Three ways to encourage innovation are by providing the organizational culture, the resources, and the proper equipment. Register to View AnswerPage: 325 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge 46. Organizations experience innovation as a matter of course; its part of everyday business. Register to View AnswerPage: 325 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Innovation doesnt happen as a matter of course. Organizations have to develop ways to make it happenover and over. 47. One way to achieve success at innovation is by celebrating failure. Register to View AnswerPage: 326 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: 3MMs culture of innovation is built on celebrating failure. 48. To prevail as a manager, you need to know how to make innovation happen within an organization. Register to View AnswerPage: 327 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: If youre going to not just survive but prevail as a manager, you need to know how to make innovation happen within an organization. 49. One step for fostering innovation includes gaining allies by communicating your vision. Register to View AnswerPage: 327 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 44 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 50. The least threatening kind of change is adaptive. Register to View AnswerPage: 328 LO: 4 Difficulty: Easy 51. The most threatening kind of change is radically innovative. Register to View AnswerPage: 329 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge AACSB: 3 BT: Knowledge 52. Radically innovative changes are generally simple and inexpensive. Register to View AnswerPage: 328 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge 53. Adaptive change involves introducing a practice that is new to an industry. Register to View AnswerPage: 328 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge 54. Innovative change is the introduction of a practice that is new to the organization. Register to View AnswerPage: 328 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge 55. One of the reasons employees resist change is lack of tact or poor timing in the introduction. Register to View AnswerPage: 329-330 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge 56. In the refreezing stage of change of Lewins change model, employees need to be given new information, perspectives and models for behavior. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: In the changing stage, employees need to be given the tools for change: new information, new perspectives, and new models of behavior. 57. According to Lewin, for unfreezing to take place, people need to become dissatisfied with the old way of doing things. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: In the unfreezing stage, managers try to instill in employees the motivation to change, encouraging them to let go of attitudes and behaviors that are resistant to innovation. For this unfreezing to take place, employees need to become dissatisfied with the old way of doing things. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 45 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 58. Benchmarking is a technique that can be used in the refreezing stage. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Benchmarking is used in the changing stage and is a process by which a company compares its performance with that of high-performing organizations. 59. During refreezing, managers should model the change themselves, as well as coach employees and reinforce the desired behaviors. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Managers can assist the refreezing by encouraging employees to exhibit the new change and then, through additional coaching and modeling, by reinforcing the employees in the desired change. 60. The value of Kotters steps for organizational change is that they provide specific recommendations about behaviors that managers need to exhibit to successfully lead organizational change. Register to View AnswerPage: 331 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: John Kotter believes that to be successful, organizational change needs to follow eight steps to avoid the eight common errors senior management usually commits. The value of Kotters steps is that they provide specific recommendations about behaviors that managers need to exhibit to successfully lead organizational change. Multiple Choice Questions 61. Which of the following is an effective way to deal with change and innovation? A) insist on success B) further increase work rules and hierarchy C) copy others successes D) have the courage to follow your ideas E) jump right into it Register to View AnswerPage: 311 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 46 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 62. Which of the following is a supertrend shaping the future of business? A) declining population in developing countries B) some traditional companies may not survive radically innovative change C) digital long distance networks D) the capturing of general consumer information E) the rise of business-to-business technology Register to View AnswerPage: 313 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge 63. A change in response to problems or opportunities is called a(n) A) reactive change. B) incremental change. C) proactive change. D) radical change. E) process change. Register to View AnswerPage: 314 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge 64. Which of the following is an example of a proactive change? A) Marys staff is unhappy about the way they have been treated and quits without notice. B) Mary explores improvements in working conditions with her staff and begins to implement them prior to any real discontent on the part of the staff. C) Mary is constantly putting out fires. D) Mary never seems to have enough time to get the information and resources she needs to take care of the problem at hand. E) All of the above are examples of proactive change. Register to View AnswerPage: 315 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: When managers talk about putting out fires, they are talking about reactive change. Making changes in response to problems or opportunities as they arise. There is usually less time to get all the information and resources you need to adequately manage the change. Proactive change or planned change involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities as is the case with Marys exploration of improvements in working conditions. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 47 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 65. Wal-Mart's use of RFID (a type of technology that allows it to improve inventory turnover) is an example of: a _________ change. A) reactive B) incremental C) proactive D) responsive E) radical Register to View AnswerPage: 315 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: When managers talk about putting out fires, they are talking about reactive change. Making changes in response to problems or opportunities as they arise. There is usually less time to get all the information and resources you need to adequately manage the change. Proactive change or planned change involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities as is the case with Wal-Marts use of RFID. 66. Which of the following is an example of a force for change originating outside the organization? A) conflict management B) technological advancements C) structural reorganization D) employee problems E) absenteeism & turnover Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Forces for change that originate outside the organization include demographic characteristics, market changes, technological advancements, and social & political pressures. 67. Changing drinking habits have led to an increase in wine sales and a decrease in whiskey sales. This is an example of a(n) _______ change. A) market B) social & political C) demographic D) technological E) economic Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Forces for change that originate outside the organization include demographic characteristics, market changes, technological advancements, and social & political pressures. Changing drinking habits is an example of social changes. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 48 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 68. More companies are forging strategic alliances with other firms. This is an example of a(n) ________ change. A) market B) social C) cemographic D) political E) economic Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: The global economy is forcing companies to change the way they do business, with U.S. companies forging new partnerships and alliances with employees, suppliers, and competitors. This is an example of market changes. 69. Inside forces for change include which of the following? A) immigration B) skill level of available employees C) mergers and acquisitions D) absenteeism E) office automation Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Inside forces for change include employee problems such as absenteeism, as well as managers behavior. 70. Cape Cod Potato Chips, a small business in Massachusetts, finds that 60% of the qualified candidates for open jobs are women This is the first time that women have comprised over half of the qualified candidate pool. This is an example of a(n) _________ change. A) market B) demographic C) social D) political E) economic Register to View AnswerPage: 316 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Demographic characteristics include gender. The change Cape Cod faces is thus a demographic change. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 49 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 71. Tony, the owner of Ciro di Pasta restaurant on Cape Cod is open during the high season from May until October. He has always hired college students on summer vacation. In recent years, the number of workers who quit mid-summer has risen significantly. When he asks, they say they are quitting because they have enough money or want the time off. This is most likely an example of a(n) ________ change. A) market B) social or political C) economic D) technological E) random Register to View AnswerPage: 316 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Social changes would include the change in values of preferring time off to increased cash. 72. Recently many older workers who had planned to retire soon decided to keep working longer. This is an example of a _________ change. A) social or political B) random C) demographic D) economic E) structural Register to View AnswerPage: 316 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Social changes would include the change in values of wishing to continue working rather than retire. 73. Which of the following would be an indicator for an organization that change might be needed? A) excessive conflict between managers and employees B) job dissatisfaction C) high absenteeism D) unmet needs E) All of the above are indicators that change might be needed in the organization. Register to View AnswerPage: 316 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Inside forces that indicate the need for change in the organization include employee problems such as unmet needs, job dissatisfaction, and absenteeism & turnover. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 50 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 74. The Human Resource Department at ABC Company has just calculated the absenteeism rate for 2009, and it is 25% higher than it was in 2007 and 2008. ABC should A) wait until the end of 2009 and see what the rate is. B) investigate whether employees have become dissatisfied with their jobs. C) begin a major job redesign effort. D) reduce employees' work hours. E) institute strict disciplinary procedures for employees who are absent. Register to View AnswerPage: 317 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Absenteeism is likely to be resulting from drops in job satisfaction, and management needs to know if and why employees are feeling less satisfied in order to correct the problem effectively. 75. Employees at ABC Manufacturing belong to the Widget Makers Union. The union has struck or come close to striking several times over the past 25 years. Labor negotiations have historically been very tense. ABC most likely needs to focus on changing A) forces originating outside the organization. B) the number of mergers & acquisitions that occur. C) forces originating inside the organization. D) manufacturing. E) supply chain management. Register to View AnswerPage: 316 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Internal forces affecting organizations may be subtle, such as low job satisfaction, or more dramatic, such as constant labor-management conflict. 76. XYZ Insurance Company is about to install a new computer system that will change the way claims adjusters settle claims. Adjusters will be able to do the adjustment and issue the check right at the scene of the accident! XYZ most likely needs to focus on changing employee A) performance. B) skills. C) attitudes. D) management. E) perceptions. Register to View AnswerPage: 317 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Altering or improving skill levels is often an ongoing challenge, particularly when new forms of technology such as the claim settlement system can change XYZs way of doing business. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 51 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 77. Employees might feel they are being underpaid for what they do. This is an example of A) an attitude. B) greed. C) a perception. D) a stance. E) a fact. Register to View AnswerPage: 317 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Employees might feel they are underpaid for what they do. Managers might be able to show that pay and benefits are comparable or superior to those offered by competitors in order to change the employees perception. 78. Which of the following is an area in which change is often needed? A) technology B) strategy C) people D) structure E) All of the above are areas in which change is often needed. Register to View AnswerPage: 317 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge 79. Happy Housekeepers is considering implementing a system that will pay the cleaning workers on the basis of how quickly they can complete jobs, coupled with random inspections to insure quality. Some managers believe that this will reduce labor costs. Happy Housekeepers is focusing on changing employee A) performance. B) skills. C) attitudes. D) management. E) structure. Register to View AnswerPage: 317 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Its often a major challenge to find incentives to improve peoples performance. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The Companies 52 Chapter McGraw-Hill 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 80. The Convenient Pharmacy chain has received numerous complaints from home delivery customers in the Friendly Hills area that their prescriptions often arrive late. Almost all of the drivers say that they often get lost trying to find houses in this neighborhood, even when directions have previously been obtained from the customers. (Convenient Pharmacy does not give its drivers GPS technology.) Frequently, drivers have to take time to call the customer again for even more detailed directions. Convenient Pharmacy probably needs to change its A) structure. B) people. C) technology. D) culture. E) strategy. Register to View AnswerPage: 318 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: The company's technology appears to be limiting its ability to service its customers effectively. 81. Your Local Department (YLD) store is in the process of cross-training all of its employees to be able to assist customers, do inventory audits, and assess demand for new clothing fashions. The company is changing A) people. B) structure. C) skills. D) technology. E) attitudes. Register to View AnswerPage: 318 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: Assisting customers, doing inventory audits, and assessing demand are all skills that employees are learning at YLD. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 53 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 82. The Lemon Car Company recently instituted cross-functional teams to develop new products. People on the teams may be located in different parts of the country. It is expensive and timeconsuming for people to travel from their different locations to headquarters to meet. The company would benefit most from a change in _________ involving A) technology; teams meeting virtually through electronic media. B) structure; disbanding the teams and relying on individuals to develop new products. C) culture; sending team members to conflict management courses. D) people; hiring new people in the organization at the headquarters location. E) strategy; dropping the strategy of developing new products. Register to View AnswerPage: 318 LO: 1 Difficulty: Hard AACSB: 3 BT: Application Rationale: The company has already made a structural change which now needs to be supported by a technological change. 83. The set of techniques used for implementing planned change to make people and organizations more effective is called A) organizational transformation. B) organization development. C) TQM. D) revitalization. E) incremental innovation. Register to View AnswerPage: 319 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge 84. A(n) __________ is a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways. A) catalytic consultant B) change agent C) behavioral consultant D) transformative consultant E) behavioral agent Register to View AnswerPage: 319 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 54 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 85. Which of the following is a primary objective of OD? A) managing conflict B) revitalizing an organization C) adapting to a merger D) adapting to an acquisition E) All of the above are primary objectives of OD. Register to View AnswerPage: 319 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge 86. In which of the following situations would the use of OD techniques be the most helpful? A) helping employees from two similar organizations work better together in a strategic alliance B) increasing efficiency among employees in a firm C) assisting employees in dealing with stressful situations D) facilitating discussion of ethical issues in preparing a code of ethics for a company E) working with the CEO to determine how to increase profitability Register to View AnswerPage: 319 LO: 2 Difficulty: Hard AACSB: 3 BT: Application Rationale: OD techniques can be the most helpful in dealing with employee stress that comes from changing behaviors or from adapting to mergers. 87. The question What is the problem? would most likely be asked during the __________ stage of OD. A) unfreezing B) diagnosis C) adaptation D) process E) intervention Register to View AnswerPage: 320 LO: 2 Difficulty: Easy AACSB: 3 BT: Knowledge 88. Fred, an OD consultant, is designing a survey of employee attitudes to be given to workers at the Lemon Automobile Company. Fred is in the _________ stage of OD. A) intervention B) diagnosis C) evaluation D) process consultation E) technostructural Register to View AnswerPage: 320 LO: 2 Difficulty: Hard AACSB: 3 BT: Application Rationale: Fred is collecting information to diagnose problems. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 55 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 89. Maria, an OD consultant, has summarized the results of a survey of employee attitudes, and is leading a meeting with a group of employees and managers to tell them what was said and engage them in problem solving. Maria is in the ________ stage of OD. A) intervention B) diagnosis C) evaluation D) technostructural E) adaptation Register to View AnswerPage: 320 LO: 2 Difficulty: Hard AACSB: 3 BT: Application Rationale: Maria is using diagnostic information to create change in the intervention stage of the OD process. 90. A year after changes were made in the employee incentive plan, Scott is comparing absenteeism and turnover data from the last three years to the current year. Scott is in the _________ stage of OD. A) intervention B) diagnosis C) evaluation D) technostructural E) adaptation Register to View AnswerPage: 320 LO: 2 Difficulty: Hard AACSB: 3 BT: Application Rationale: An OD problem needs objective evaluation to see if it has done any good. Scott used employment information to determine if the changes made were helpful. 91. Rosa has been asked to observe a task force during its initial meetings and to give them feedback and suggestions about how to improve the way they function. Rosa is involved in A) survey feedback. B) diagnosis. C) intergroup development. D) technostructural activities. E) evaluation. Register to View AnswerPage: 320 LO: 2 Difficulty: Hard AACSB: 3 BT: Application Rationale: Rosa is doing process observation to diagnose what change program will be needed. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 56 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 92. Which of the following circumstances is likely to increase the success of OD? A) a single large intervention B) support of top managers C) unrealistic and very high expectations in place D) goals geared to the short term rather than the long term E) applying every OD intervention in the same way across the world Register to View AnswerPage: 321 LO: 2 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Research has found that OD is most apt to be successful under the following circumstances: (1) multiple interventions, (2) top management support, (3) goals geared to both short- and long-term results, and (4) considering cross-cultural differences. 93. Which of the following is a characteristic of innovation? A) It is uncertain. B) It may be complex. C) It may be controversial. D) People closest to it know the most about it. E) All of the above statements are characteristics of innovation. Register to View AnswerPage: 322 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Four characteristics of innovation are that it is uncertain, people closest to it know the most about it, it may be controversial, and it may be complex. 94. A survey of 4,559 corporate managers in 36 industries found that U.S. executives thought their own companies gave innovation short shriftonly ______ percent felt their organizations could be respected for their leadership in this area. A) 4 B) 10 C) 15 D) 25 E) 30 Register to View AnswerPage: 322 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: This survey found that only 4% of executives felt their organizations could be respective for their leadership in innovation. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 57 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 95. Cynthia Barton Rabe, a former innovation strategist for Intel, suggests that too much knowledge and _______ can actually kill innovation. A) determination B) tolerance for ambiguity C) experience D) technical ability E) creativity Register to View AnswerPage: 322 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Cynthia Barton Rabe, a former innovation strategist for Intel, suggests that too much knowledge and experience can actually kill innovation. 96. A technological innovation is generally a(n) __________ innovation. A) product B) process C) adaptive D) reactive E) proactive Register to View AnswerPage: 323 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: As a manager, you may need to improve your organizations product or service itself; this is generally a technological innovation. 97. A managerial innovation is generally a(n) __________ innovation. A) product B) process C) adaptive D) reactive E) proactive Register to View AnswerPage: 323 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: You may need to improve the process by which the product or service is created, manufactured, or distributed; this is generally a managerial innovation. 98. A(n) __________ innovation is a change in the appearance or the performance of a product or a service or the creation of a new one. A) product B) process C) adaptive D) reactive E) proactive Register to View AnswerPage: 323 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge 58 Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 99. A(n) __________ innovation is a change in the way a product or service is conceived, manufactured, or disseminated. A) product B) process C) adaptive D) reactive E) proactive Register to View AnswerPage: 323 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge 100. Wendy's created display screens at its drive-thru windows that show customers their orders and prices. This is an example of a(n) _________ innovation. A) product B) process C) adaptive D) reactive E) proactive Register to View AnswerPage: 323 LO: 3 Difficulty: Hard AACSB: 3 BT: Application Rationale: A process innovation is a change in the way a product or service is conceived, manufactured, or disseminated. Wendys changed the way orders were placed for its productsa process innovation. 101. The creation of products, services, or technologies that modify those that already exist is called __________ innovation. A) product B) process C) incremental D) radical E) reactive Register to View AnswerPage: 323 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge 102. The creation of products, services, or technologies that replace those that already exist is called __________ innovation. A) product B) process C) incremental D) radical E) reactive Register to View AnswerPage: 323 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 59 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 103. According to experts, innovation has which of the following characteristics? A) Innovating is an uncertain process. B) Innovation is knowledge-intensive. C) Innovation may be controversial. D) Innovation can be complex. E) All of the above are characteristics of innovation. Register to View AnswerPage: 324-5 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: According to Harvard management scholar Rosabeth Moss Kanter, innovation has four characteristics: (1) innovating is an uncertain business, (2) people closest to the innovation know most about itinnovation is knowledge-intensive, (3) innovation may be controversial, and (4) innovation can be complex. 104. Esteban, President of Acme Beverage Company, has just reviewed the dismal results of the company's new product, a chocolate cola beverage. Edith was the major force behind the idea and its market trial. It appears that Edith did the normal level and type of research on the product's acceptance by consumers prior to its introduction. Esteban should A) fire Edith as an example to others. B) demote Edith. C) send Edith to a marketing class. D) reward Edith. E) ignore the product failure. Register to View AnswerPage: 326 LO: 3 Difficulty: Hard AACSB: 3 BT: Application Rationale: Managers should reward experimentation, and support a culture that celebrates failure. 105. Organizations can help to make innovation happen by A) creating a culture that celebrates failure. B) supporting innovation with resources. C) rewarding successful innovations. D) rewarding R & D people in a similar way to salespeople. E) all of the above. Register to View AnswerPage: 325-6 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Organizations have to develop ways to make innovation happen including providing the right culture, the appropriate resources, and the correct reward system. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 60 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 106. Championing an innovation may require you to draw on your finest ___________ skills in order to be successful. A) organizational B) communication C) production D) financial E) pricing Register to View AnswerPage: 327 LO: 3 Difficulty: Hard AACSB: 3 BT: Application Rationale: Three steps to making innovation happen within an organization (that is championing innovation) include (1) recognize problems and opportunities and devise solutions, (2) gain allies by communicating your vision, and (3) overcome employee resistance. 107. Which of the following sequences best describes how a manager can foster innovation in an organization? A) recognize problems, gain allies, reward employees B) recognize problems, overcome resistance, empower employees C) overcome resistance, empower employees, provide incentives D) recognize problems, empower employees, devise solutions E) reorganize, change culture, devise solutions Register to View AnswerPage: 327 LO: 3 Difficulty: Easy AACSB: 3 BT: Knowledge 108. The reintroduction of a familiar practice within the same organization is called a(n) A) adaptive change. B) reactive change. C) innovative change. D) radically innovative change. E) proactive change. Register to View AnswerPage: 328 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge 109. Employees are likely to see an adaptive change as A) highly threatening. B) moderately threatening. C) somewhat threatening. D) least threatening. E) totally unacceptable. Register to View AnswerPage: 328 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Because adaptive change is familiar, it is the least threatening to employees and thus will create the least resistance. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 61 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 110. At the Big Apple Department Store, employees generally know that during annual inventory, they are required to work overnight shifts. This is an example of a(n) __________ change. A) adaptive B) reactive C) innovative D) proactive E) radically innovative Register to View AnswerPage: 328 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Because this change is familiar, it is the least threatening to employees and thus will create the least resistance. 111. Fernando, a manager in a retail store, is changing the work schedule of his long-term employees for the holiday season. He is using the same basic schedule as he did last year. Fernando should expect that his employees will be A) terribly upset and quit. B) terribly upset but not quit. C) moderately upset and quit. D) moderately upset but not quit. E) hardly upset, or not upset at all. Register to View AnswerPage: 328 LO: 4 Difficulty: Hard AACSB: 3 BT: Application Rationale: Because this change is familiar, it is the least threatening to employees and thus will create the least resistance. 112. A change that represents the introduction of a new practice to an organization that is not new to the industry is called a(n) A) adaptive change. B) reactive change. C) proactive change. D) innovative change. E) radically innovative change. Register to View AnswerPage: 328 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 62 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 113. An innovative change involves _________ complexity, cost, and uncertainty. A) no B) minimum C) moderate D) high E) extreme Register to View AnswerPage: 328 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Innovative change is the introduction of a practice that is new to the organization. This form of change involves moderate complexity, cost, and uncertainty. It is therefore apt to trigger some fear and resistance among employees. 114. Your Friendly Insurance Company has decided that its claims adjusters must be available to meet with claimants in the evenings and on weekends, a practice that some other insurance carriers have recently adopted. This is an example of a(n) ____________ change. A) radically innovative B) innovative C) adaptive D) proactive E) reactive Register to View AnswerPage: 328 LO: 4 Difficulty: Hard AACSB: 3 BT: Application Rationale: Innovative change is the introduction of a practice that is new to the organization. This form of change involves moderate complexity, cost, and uncertainty. It is therefore apt to trigger some fear and resistance among employees. 115. Introducing a practice that is new to the industry is called a(n) __________ change. A) radically innovative B) innovative C) adaptive D) reactive E) incremental Register to View AnswerPage: 329 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 63 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 116. The Jersey Office Supplies Company has decided to hire enough drivers to deliver products to their customers within one-half hour of when they are ordered. They believe that this practice will give them a significant advantage over the competition, which has not adopted such a practice. Jersey is introducing a(n) _________ change A) reactive B) proactive C) adaptive D) innovative E) radically innovative Register to View AnswerPage: 329 LO: 4 Difficulty: Hard AACSB: 3 BT: Application Rationale: Radically innovative change involves introducing a practice (half-hour delivery time) that is new to the industry. 117. Radically innovative change involves ________ change in complexity, cost, and uncertainty. A) no B) somewhat low C) minimum D) moderate E) extreme Register to View AnswerPage: 329 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge 118. Lewin's Change Model consists of A) three stages: unfreezing, changing, and refreezing B) three types: adaptive, innovative, and radically innovative C) eight steps for leading organizational change D) three steps: diagnosis, intervention, and evaluation E) ten characteristics for change. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Lewin developed a model with three stagesunfreezing, changing, and refreezingto explain how to initiate, manage, and stabilize planned change. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 64 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 119. During Lewins refreezing stage, managers should A) make employees dissatisfied with the present way of doing things. B) give employees the tools for change. C) provide benchmarking results. D) reduce the barriers to change. E) reinforce the desired change in the employees. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Managers can assist in refreezing by encouraging employees to exhibit the new change and then, through additional coaching and modeling, by reinforcing the employees in the desired change. 120. During Lewins changing stage, managers should A) give employees the tools for change. B) reinforce the desired change. C) give people new models of behavior. D) reduce the barriers to change. E) make employees dissatisfied with the present situation. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: In the changing stage, employees need to be given the tools for change: new information, new perspectives, and new models of behavior. 121. The process by which a company compares its performance with that of high-performing organizations is called A) TQM. B) MBO. C) benchmarking. D) continuous improvement. E) radical innovation. Register to View AnswerPage: 330 LO: 4 Difficulty: Easy AACSB: 3 BT: Knowledge 122. Kotters Change Model consists of A) three stages: unfreezing, changing, and refreezing B) three types: adaptive, innovative, and radically innovative C) eight steps for leading organizational change D) three steps: diagnosis, intervention, and evaluation E) ten characteristics for change. Register to View AnswerPage: 330 LO: 4 Difficulty: Moderate AACSB: 3 BT: Comprehension Rationale: Kotter believes that to be successful, organizational change needs to follow eight steps to avoid the eight common errors senior management usually commits. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 65 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager Essay Questions 123. What I try to do is go out and grab lightning every day. Thats the way Terry Fadem of DuPont describes the companys never-ending search for tomorrows breakthroughs. A leaders job is less about getting through the current storm and more about enabling people to navigate the ongoing series of storms, says a Mellon Bank executive. Explain five ways to deal with change and innovation that these two people might generally use. Page: 311 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Answer: Some ways to deal with change and innovation include (1) allow room for failure, (2) give one consistent explanation for the change, (3) look for opportunities in unconventional ways, (4) have the courage to follow your ideas, (5) allow grieving over the loss of the old ways, then move on. The student may also mention additional methods that are mentioned throughout Chapter 10. 124. Describe the two types of change. Contrast how managers act in each type. Which type of change is better (best)? Page: 314-315 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Answer: The two types of change are proactive and reactive. In proactive change, managers anticipate and plan for change, based on anticipating possible or expected problems or opportunities. In reactive change, managers make changes in response to problems or opportunities as they arise. Proactive change is better, as usually reactive change takes longer, and serious mistakes can be made. 125. Discuss the four areas in which change in organizations is most often needed. Choose an organization, real or hypothetical, and give examples of each. Page: 317-318 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension Answer: The four areas are: People (perceptions, attitudes, performance, skills) Technology (any process used in changing materials into a finished product) Structure Strategy Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 66 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 126. Describe what OD is and what it can be used for. Page: 319 LO: 2 Difficulty: Moderate AACSB: 3 BT: Comprehension Answer: OD is a set of techniques for implementing planned change to make people and organizations more effective. It aims for fundamental change that is process-oriented and is based in humanistic values. OD can be used to address a variety of problems in organizations, including managing conflict, revitalizing an organization, and adapting to mergers. 127. Explain how the OD process works. Suppose you were a student member of your college's or university's committee that was attempting to study why an excessive number of students drop out of your college. Give examples of activities your task force might take in each stage of its OD process. Page: 320 LO: 2 Difficulty: Hard AACSB: 3 BT: Application Answer: The three steps in the OD process are diagnosis, intervention, and evaluation. Examples of diagnostic actions might be generating a survey of students or interviewing students who dropped out. Examples of interventions might be changes to the advising process or changing the first-year student orientation. Examples of evaluation would be comparing dropouts from before and after the intervention. 128. Under what circumstances is OD most likely to be successful? Page: 321 LO: 2 Difficulty: Moderate AACSB: 3 BT: Comprehension Answer: Multiple interventions: Combined interventions such as goal setting, feedback, training, etc. have been found to work better than single interventions. Management support: OD is more likely to succeed when top managers give the OD program their support and are truly committed to the change process and the desired goals of the change program. Also, the expectations for change were not unrealistic. Goals geared to both short- and long-term results: Change programs are more successful when they are oriented toward achieving both short-term and long-term results. Managers should not engage in organizational change for the sake of change. Change efforts should produce positive results. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 67 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager OD is affected by culture: OD effectiveness is affected by cross-cultural considerations. Thus, an OD intervention that worked in one country should not be blindly applied to a similar situation in another country. 129. Describe the types of innovation. Give an example of each. Page: 323 LO: 3 Difficulty: Hard AACSB: 3 BT: Application Register to View Answerproduct innovation is a change in the appearance or the performance of a product or a service or the creation of a new one. A process innovation is a change in the way a product or service is conceived, manufactured, or disseminated. Incremental innovations are the creation of products, services, or technologies that modify existing ones. Radical innovations are the creation of products, services, or technologies that replace existing ones. The student should provide an example for each of the types of innovation listed above. 130. What are the characteristics of innovation, according to Rosabeth Kanter? What implications should managers draw from these characteristics? Page: 324-325 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Answer: The characteristics are: Innovation is uncertain. Managers should be tolerant of ambiguity. The people closest to the innovation know the most about it, at least initially. Managers should realize that outsiders, perhaps including themselves, may find the innovation difficult to understand and appreciate. Innovation may be controversial. Resources (time, attention, money) used for any one innovation potentially take away from others uses of those resources. Thus, managers should realize that a competition for resources may result. Innovation can be complex because it may cross organizational boundaries. This occurs when an innovation involves more than one organizational department or business unit. A manager needs to manage these relationships to make the innovation a success. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 68 Chapter 10 Organizational Change & Innovation: Life-Long Challenges for the Exceptional Manager 131. What should organizations do to provide support for innovations? Page: 325-326 LO: 3 Difficulty: Moderate AACSB: 3 BT: Comprehension Answer: Innovation doesnt happen as a matter of course. Organizations have to develop ways to make it happenover and over. Three ways to do so are by providing (1) the right organizational culture, (2) the appropriate resources, and (3) the correct reward system. 132. Describe Lewin's Change Model. Suppose your college or university wanted to make a major change in some important aspect of student life at your school. How should the college or university use Lewin's model to guide their actions? Page: 330 LO: 4 Difficulty: Hard AACSB: 3 BT: Application Answer: The student should list the following stages of change and then give an example of how his or her university would implement each of these change stages. Lewin's Change Model describes three stages of managing change efforts: Unfreezing creating the motivation to change; Changing learning new ways of doing things; Refreezing making the new ways normal. 133. Describe Kotter's steps for leading organizational change. Suppose your university wanted to make a major change in some important aspect of the administrators' behavior at your school (for example, making staff in the registrar's office more responsive). How should the university use Kotter's model to guide their actions? Page: 330-331 LO: 4 Difficulty: Hard AACSB: 3 BT: Application Answer: The student should list the following stages of change and then give an example of how his or her university would implement each of these change stages. Kotter's eight steps are: Establish a sense of urgency Create the guiding coalition Develop a vision and strategy Communicate the change vision Empower broad-based action Generate short-term wins Consolidate gains and product more change Anchor new approaches in the culture. Kinicki/Williams, Management: A Practical Introduction, 4e Copyright 2009, The McGraw-Hill Companies 69 ... View Full Document

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