Chapter 7
5 stages of organizational decline
1. Blinded 2. Inaction 3. Faulty Action 4. Crisis 5. Dissolution
5 aspects of compression approach
1. planning 2. supplier involvement 3. shortening the time of individual steps 4. overlapping steps 5. multifunctional teams
How to create a results driven change program
1. set measurable, short-term goals to improve performance 2. make sure your action steps are likely to improve measure performance 3. stress the importance of immediate improvements 4. solicit help from consultants and staffers to achieve quick improvements in performance 5. test action steps to see if they actually yield improvements. If they don't, discard them and establish new ones 6. use resources you have or that can be easily acquired. It doesn't take much
Kathym, a company that sells women's handbags, gives all its junior designers the opportunity to come up with their own original designs. The managers believe that providing them with challenging tasks will keep the designers interested and help them innovate. In the context of managing sources of innovation, which of the following concepts does this scenario best illustrate?
A creative work environment
Which of the following is true of the S-curve pattern of innovation of a product?
A flat slope indicates that increased effort brings only small improvements in technological performance.
prototype
A full-scale working model tested for design, function, and reliability.
Entry
A problem is discovered, and the need for change becomes apparent. A search begins for someone to deal with the problem and facilitate change.
Which of the following are forces that produce differences in the form, quality, or condition of an organization over time?
Change forces
Managing change
Change forces v. resistance forces Resistance to change "Kiss of yes"
Curtab, a company that manufactures digital watches, implements marketing strategies to attempt to eliminate analog watches from the market and thereby increase the market share of the company. To counter this, analog watch manufacturers introduce new advertising campaigns. In the context of innovation streams, which of the following concepts does this scenario best illustrate?
Design competition
In an attempt to eliminate spectacles from the market, Lensamt, a company that manufactures and supplies contact lenses, launched an advertising campaign to popularize its products. To counter this and stay in the market, the spectacle manufacturers introduced new offers and discounts on spectacles. In the context of innovation streams, which of the following concepts does this scenario best illustrate?
Design competition
Managing innovation
During discontinuous change, companies must find a way to anticipate and survive technological changes. Companies must also manage incremental change and innovation.
General Steps for Organizational Development Interventions
Entry Startup Assessment and feedback Action planning Intervention Evaluation Adoption Separation
Which of the following is a difference between the inaction stage and the faulty action stage of organizational decline?
In the inaction stage, managers wait to see if organizational performance problems correct themselves, whereas in the faulty action stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits.
Compression Approach
Managing innovation during incremental change
Change forces
Produce differences in the form, quality, or condition of an organization over time
Inaction stage
Recognize the need to change but simply do not have the ability to make changes and hopes the problem goes away
Lack of organizational impediments
Removing internal conflict and power struggles, rigid management structures, and a conservative bias toward the status quo can all discourage creativity.
Which of the following support(s) the status quo, that is, the existing conditions in an organization?
Resistance forces
Seaneng, a company that has been manufacturing printers for computers for the past 20 years, initially specialized in dot matrix printers. However, dot matrix printers were inefficient in color printing. To overcome this disadvantage, it developed and started selling inkjet and laser printers. In the context of innovation streams, which of the following concepts does this scenario best illustrate?
Technological discontinuity
Steps in innovation streams
Technological discontinuity, discontinuous change, dominant design, incremental change
Which of the following is a systematic comparison of different product designs or design iterations?
Testing
Assessment and feedback
The change agent gathers information about the problem and provides feedback about it to decision makers and those affected by it
In the context of organizational decline, which of the following is true of the dissolution stage?
The company is dissolved through bankruptcy proceedings.
Organizational decline
When companies fail to anticipate, recognize, neutralize, or adapt to internal or external pressures
Startup
a change agent enters the picture and works to clarify the problem and gain commitment to a change effort
As touchscreen laptops gained popularity in the country of Desapotam, the import of older models of laptops was stopped. Subsequently, touchscreen laptops became the accepted market standard for laptops in the country. In the context of innovation streams, this scenario best illustrates _____.
a dominant design
When LED televisions started becoming popular in the city of Jazetta, all the electronic stores in the city stopped selling CRT televisions. Following this, LED televisions dominated the market and became the accepted market standard for televisions in the city. In the context of innovation streams, this scenario best illustrates _____.
a dominant design
When smartphones were introduced, most customers stopped using flip phones. Eventually, smartphones almost entirely replaced flip phones and became the accepted market standard for phones. In the context of innovation streams, this scenario best illustrates _____.
a dominant design
dominant design
a new technological design or process that becomes the accepted market standard
Flow
a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to pass quickly
Technological discontinuity
a scientific advance or a unique combination of existing technologies creates a significant breakthrough in performance or function
Participation
affected by change participate in planning and implementing the change process increases buy-in and commitment while giving employees an understanding of the change
experimental approach to innovation
an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding
compression approach
assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation
Technology cycles
begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology
S-curve Pattern of Innovation
characterized by slow initial progress, followed by rapid progress, and then slow progress again - slow progress results when a technology matures and reaches its limits
Communication
communicate change related info to them
During the incremental change stage,
companies innovate by lowering the cost and improving the functioning and performance of the dominant design
design competition
competition between old and new technologies to establish a new technological standard or dominant design
Technological substitution occurs when _____.
customers purchase new products to replace older technologies.
design iterations
cycle of repetition in which a company tests a prototype of a new product or service, improves on the design, and then builds and tests the improved product or service prototype
Refreezing mistakes
declaring victory too soon not anchoring changes in the corporation's culture
Supplier involvement
delegating some of the preplanned steps in the innovation process to outside suppliers reduces the amount of work that internal development teams must do
5 Aspects to managing innovation
design iterations, testing, milestones, multifunctional teams, and powerful leaders
Crises stage
dissolution or bankruptcy will occur unless the company completely reorganizes
Education
educate employees about the need for change
Methods
education, communication, participation, negotiation, top management support, coercion
Negotiation
employees are allowed to negotiate and agree on who will do what after change occurs they are often less resistant
Misunderstanding and distrust
employees may not understand the change or the reason for it
Challenging work creates a psychological experience called
flow
milestones
formal project review points used to assess progress and performance
Unfreezing
getting the people affected by change to believe that change is needed
Freedom
having autonomy over one's day to day work and a sense of ownership and control over one's ideas
Change intervention mistakes
lacking a vision under communicating the vision not removing obstacles to the new vision not systematically planning for and creating short-term wins
Organizational encouragement of creativity occurs when _____.
management encourages risk taking and new ideas
Faulty action stage
management may announce plans to reduce costs, increase efficiency and restore profits
Blinded stage
managers do not recognize the need for change
Unfreezing mistakes
not establishing a great enough sense of urgency not creating a powerful enough coalition
technological substitution
occurs when customers purchase new technologies to replace older technologies
Work group encouragement
occurs when group members have diverse experience, education, and backgrounds and the group fosters mutual openness to ideas; positive, constructive challenge to ideas; and shared commitment to ideas.
Generational change
occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version
Organizational encouragement
occurs when management encourages risk taking and new ideas, supports and fairly evaluates new ideas, rewards and recognizes creativity, and encourages the sharing of new ideas throughout different parts of the company
Supervisory encouragement
occurs when supervisors provide clear goals, encourage open interaction with subordinates, and actively support development teams' work and ideas
Resistance to change
opposition to change resulting from self-interest, misunderstanding and distrust, and a general intolerance for change
Parts of creative work environments
organizational encouragement, supervisory encouragement, work group encouragement, freedom, lack of organizational impediments, and challenging work
Glaler, a large-scale cell phone manufacturer, has a robot in each of its outlets that studies a customer's usage history and suggests a model of Glaler's cell phone that is most likely to suit the customer. This scenario best illustrates _____.
organizational innovation
Adoption
organizational members accept ownership and responsibility for the change, which is then carried out through the entire organization
Innovation streams
patterns of innovation over time that can create sustainable competitive advantage
Self interest
people fear that change will cost or deprive them of something they value
powerful leaders
provide the vision, discipline, and motivation to keep the innovation process focused, on time, and on target able to get resources when needed, high respect, and hold accountable for products
Challenging work
requires effort, demands attention and focus, and is perceived as important to others in the organization
Top Management Support
resistance decreases when efforts receive management support
Overlapping steps
shorten the development process by reducing delays or waiting time between steps
kiss of yes
some of the strongest resisters may support the changes in public, but then ignore them in private
Resistance forces
support the status quo
Refreezing
supporting and reinforcing new changes so that they stick
An innovation stream begins with _____.
technological discontinuity
Discontinuous change
technological substitution and design competition
The products manufactured by Answeronn, a manufacturer of answering machines, initially showed a slow progress rate, but the performance of the products eventually began improving rapidly. However, the progress rate began to drop again. All these changes took place during a three-year period. In the context of technology cycles, this scenario best illustrates _____.
the S-curve pattern of innovation
Intervention
the action plan, or organizational development intervention, is carried out
Evaluation
the change agent helps decision makers assess the effectiveness of the intervention
Separation
the change agent leaves the organization after first ensuring that the change intervention will continue to work
Action planning
the change agent works with decision makers to develop an action plan
Dissolution stage
the company is dissolved through bankruptcy proceedings or by selling assets in order to pay suppliers, banks, and creditors
incremental change
the emergence of a dominant design that marks a shift from design experimentation and competition
Planning
the goal is to compress development time as much as possible so the strategy is to create a series of planned steps to accomplish the goal
What is technology?
the knowledge, tools, and techniques used to transform inputs into outputs
Creativity
the production of novel and useful ideas
Organizational innovation
the successful implementation of creative ideas in organizations
testing
the systematic comparison of different product designs or design iterations
One of the reasons that organizational change efforts fail is that _____.
they are activity oriented rather than results oriented
low tolerance for change
threatened by the uncertainty associated with change and worry that they won't be able to learn the new skills and behaviors needed to successfully negotiate change in their companies
Managing Resistance to Change
unfreezing, change intervention, and refreezing
Planning helps avoid
unnecessary steps and enables developers to sequence steps in the right order to avoid wasting time
Coercion
use of force to get someone to obey this method can create intense negative reactions.
Shortening the time of individual steps
we can use computer-aided design because it allows designers and engineers to make and test design changes using computer models rather than physically testing expensive prototypes
technological lockout
when a new dominant design prevents a company from competitively selling its products or makes it difficult to do so
multifunctional teams
work teams composed of people from different departments
Multifunctional teams
work teams composed of people from different departments that accelerate learning and understanding by mixing and integrating technical, marketing, and manufacturing activities
Creative work environments
work-place cultures in which workers perceive that new ideas are welcomed, valued, and encouraged
Change intervention
workers and managers change their behavior and work practices