Exam 2: Chapters 6-10

Product innovation is...

....a change in the appearance or the performance of a product or service itself; generally a technological innovation.

Process innovation is...

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

An example of a company fostering innovation by turning a problem into a solution is...

...a company that takes prospective buyers to tour foreclosed homes.

The proper first step after deciding how to handle a problem or opportunity is...

...develop and communicate your vision.

Proactive Change means...

...planned change, involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities.

Demassification means...

...segmenting customers groups into smaller and more specialized groups

Execution is...

...the process, using questioning, analysis, and follow-through to achieve the results promised and ensure accountability.

What are the 2 key aspects of execution?

1. Discussing hows and whats 2. Using questioning analysis

What are two practices managers can utilize in order to implement "refreezing" the 3rd stage of Lewin's change model?

1. Encourage employees to exhibit the new change 2. Reinforce the employees in the desired change

(John) Kotter's 8 Steps for leading organizational change in the correct order. First 4 are most important.

1. Establish a sense of urgency. 2. Create the guiding coalition. 3. Develop a vision and strategy. 4. Communicate the change vision. 5. Empower broad-based action 6. Generate short-term wins. 7. Consolidate gains and produce more change. 8. Anchor new approaches in the culture.

What are two key aspects of turning a problem into an opportunity?

1. Finding better ways as a response. 2. Looking for solutions as a response. Recognize problems and opportunities & devise solutions. (recognize a "better way")

OD can be used for 3 things; (address what 3 matters)

1. Managing Conflict 2. Revitalizing Organizations 3. Adapting Mergers

(3) ways OD can be effective* (there are exceptions)

1. Multiple Interventions 2. Management Support 3. Goals geared to both short & long term results (4) NOT CROSS CULTURE APPLICATION: OD is affected by culture - OD intervention that worked in one country should NOT be blindly applied to a similar situation in another country.

What are the stages of Lewin's Change Model in the correct order?

1. Unfreezing - create the motivation to change. 2. Changing - new information, models, & procedures. 3. Refreezing - support & reinforce the change

OD process in the correct steps (4) Hint: DIEF

1.Diagnosis - what is the problem? 2. Intervention - what shall we do about it? 3. Evaluation - how well has the intervention worked? 4. Feedback - How can the diagnosis be further refined?

The kind of change that has already been implemented and experienced within the same organization is called _____ change.

Adaptive change - is reintroduction of a familiar practice (already been experienced within the same organization)

The process of studying large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information is known as ____.

Big Data analytics

What are some factors that contribute to resistance to change?

Change Agent & Employee Characteristics

Tonya sees her company eliminating jobs in order to reduce costs, but the CEO was recently given a bonus of several million dollars. The likely cause of her resistance to the current organizational change is ______.

Climate of mistrust - trust involves reciprocal faith in others' intentions and behavior.

A key aspect of the marketplace becoming more segmented and moving toward more niche products?

Companies are not restrained by shelf space because of the power of Internet marketing.

The ____________ is a law that requires an extension of health insurance benefits after termination. Hint: COBRA

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Factors such as the increasing number of women in the workforce and the growing number of older workers exemplify which force for change outside the organization?

Demographic characteristics

______ occurs when people are hired or promoted, or denied hiring or promotion, for reasons not relevant to the job.

Discrimination

At Hudson Ford Co., employees are rewarded for contributing to innovative change with financial bonuses. Which step of fostering innovation does this represent?

Empower employees to achieve progress.

Which piece of legislation first established the U.S. federal minimum wage?

Fair Labor Standards Act of 1938

True or False: Reactive changed is planned.

False - reactive change is the opposite of proactive change or planned change.

__________ is a performance review system in which all employees within a business unit are ranked against one another.

Forced ranking

Job dissatisfaction, high absenteeism, and reduced productivity are examples of which force change inside the organization?

Human resources concerns

Change that involves moderate complexity, cost and uncertainty and is likely to trigger some fear and resistance among employees is know as ______ change.

Innovative change - is the introduction of a practice that is new to the organization.

________ entails job posting, placing information about job vacancies and qualifications in places where employees can see them such as on bulletin boards or the company's intranet.

Internal recruiting

Demand for organic foods has increased dramatically as Americans become aware of the pesticides and other harmful chemicals in food. This exemplifies which force for change outside the organization?

Market changes

2 myths about innovation

Myths: 1. innovation can be systematized 2. innovation happens in a "eureka" moment

Change involving a practice that is new to the industry is referred to as ______ ______ change.

Radically innovative change - involves introducing a practice that is new to the industry.

Carson feels like is always "putting fires out at work" and doesn't get an opportunity to figure out where the problem might arise before they occur. Carson is dealing with _____ change.

Reactive change - making changes in response to problems or opportunities as they arise.

________ is an emotional/behavioral response to real or imagined threats to an established work routine.

Resistance to change

__________ is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished a product.

Technology (is not just a computer)

___________ refers to educating technical and operational employees in how to better do their current job.

Training

True or False: The pressure exerted by internal forces for change may be subtle or very dramatic.

True: subtle or very dramatic change

Xenod Capital just enlisted the help of amber, a consultant with a background in behavioral science. She is going to help them apply new methods to dealing with old problems. Amber is known as a(n) ______.

as an: change agent - a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways.

Performance appraisal consists of __________.

assessing performance and providing feedback

Which of the following is not one of the five steps in the training process?

attendance

The rights inherent in a managerial position to make decisions, give orders, and utilize resources are known as ____.

authority

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes, is known as _____.

bounded rationality

Tom's company is very successful, even though they expect most new ideas to fail. This is likely due to an organizational culture that _____.

celebrates failure as vital toward fostering innovation.

Division of labor is also known as ____.

chain of command

Often OD is put into practice by a person known as a _____ ______

change agent

Organizational development is often put into practice by a __________.

change agent

In the _____ stage of Lewin's Change Model, employees are introduced to new information, new perspectives and new models of behavior.

changing stage (stage 2)

Strategy formulation is the process of _____.

choosing among different strategies and altering them to best fit the organization

The growth, stability, and defensive strategies are ____.

common grand strategies

When people seek information to support their point of view and discount data that do not, this is ______ bias.

confirmation

A(n) _________ innovation involves optimizing of products or services for existing customers.

core (innovation)

Important decisions are made by middle-level and supervisory-level managers with ____.

decentralized authority

A choice made from among available alternatives is a ____.

decision

The prospect theory suggests that ____.

decision makers find the notion of an actual loss more painful than giving up the possibility of a gain

A computer-based information system that provides a flexible tool for analysis and helps managers focus on the future is known as a(n) _____.

decision support system

The combination of how an individual perceives and responds to information reflects his or her ____.

decision-making style

Over the course of 40 years, Sal grew his company to six package shipping stores. With his retirement approaching and the increased competition, he decided to reduce the number of locations to two. Sal's reduction of effort represents a _____.

defensive strategy

Organizational ______ is a set of techniques for implementing planned change to make people and organizations more effective.

development (OD)

The introduction of the DVD-by-mail business model by Netflix changed the video rental business and caused the demise of Blockbuster Video. This is an example of ______.

disruptive innovation - a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing establishing competitors.

Kotter proposed which of the following for organization change?

eight steps for leading organizational change

In order, the steps of the strategic-management process are _____.

establish the mission and vision; assess the current reality; formulate the grand strategy; implement the strategy; maintain strategic control

What reflects the third step in the organizational development process?

evaluation (3rd step)

Espoused values are _____.

explicitly stated values and norms preferred by an organization

A defensive strategy is also known as a(n) _____.

growth strategy

With a hollow structure, the organization ____.

has a central core of key functions and outsources others to vendors who are less expensive or faster

The tendency of people to view events as being more predictable than they really are known as _____.

hindsight bias

A(n) ___________ is a report listing your organization's employees by name, education, training, languages, and other important information.

human resource inventory

The creation of products, services, or technologies that modify those that already exist is called ______ innovation.

incremental

Organizations encourage _____ by providing three things: the right organizational culture, the appropriate resources, and the correct reward system.

innovation

The clan culture has a(n) _____.

internal focus and values flexibility

The second step in the organizational development (OD) process, _______ is the attempt to correct the diagnosed problems.

intervention - or "treatment" is the attempt to correct the diagnosed problems.

______ is creating or making up something new, whereas _______ is the act of developing new and imaginative ideas into reality.

invention; creativity

What is considered to be the newest source of competitive advantage for companies competing in the global economy?

knowledge, not information, is becoming the new competitive advantage.

A 2013 survey found that among managers, the use of _____ is popular.

mission and vision statements

Who are our customers? What are our major products or services? In what geographic areas do we compete? These are all questions that are answered in a good _____.

mission statement

Strategic control includes ____.

monitoring the execution of strategy and making adjustments, if necessary

Voluntary collectives with the purpose of advancing their members' interests are known as ___.

mutual-benefit organizations

Organizations that are formed to offer services to clients and not make a profit are ____, and those organizations that are formed to make money, or profits, by offering products or services are _____.

nonprofit organizations; for-profit organizations

Manner of dress, awards, myths and stories told about the company, and rituals and ceremonies are ____.

observable artifacts of organizational culture

The two co-founders of Network Appliance, California, were feuding with each other because one founder couldn't stick to his decisions, which drove the other founder crazy. A(n) ____________ began working with the warring executives in separate sessions to solve the problem.

organizational behavior specialist

Which of the following is not one of Scott Berkun's seeds of innovation for organizations?

philanthropy

A data-mining technique used to predict future behavior and anticipate the consequences of change is known as ___.

predictive modeling

A(n) ______ innovation is a change in the way a product or service is conceived, manufactured, or disseminated.

process

With defensive avoidance, a manager can't find a good solution and follows by ____.

procrastinating, passing the buck, or denying the risk of any negative consequences

Changing the appearance or the performance of a product or a service, or the creation of a new one is called _____ innovation.

product

A change that is made in response to arising problems or opportunities is called __________.

reactive change

During which stage of Lewin's change model are new employee attitudes and behaviors integrated into their normal way of doing things?

refreezing (stage 3)

An emotional/behavioral response to real or imagined threats to an established work routine is known as _____.

resistance to change

Contingency planning is also known as _____.

scenario planning and scenario analysis

Scott Berkun, author of The Myths of Innovation, identified several starting points for organization innovation, referred to as ______.

seeds of innovation

As more and more companies become proficient at bringing products and services to market, _____ is emerging as a powerful competitive weapon.

speed

In the BCG matrix, companies that have high growth and high market share, and are definite keepers are ____.

stars

Organizational design is concerned with an organization developing ____.

the most favorable methods of accomplishing both the diversity and synergy plans

Lewin's change model consists of __________.

three stages: unfreezing, changing, and refreezing

Breakthrough products or services that do not currently exist and that are aimed at creating brand new markets and customers are known as ______ innovations.

transformational (innovations)

"What shall we do about the problem?" is the question that would most likely be asked during the ______ stage of OD.

treatment or intervention

In the _____ stage of Lewin's Change Model, managers try to instill in employees the motivation to change, encouraging them to let go of attitudes and behaviors that are resistant to motivation.

unfreezing stage (stage 1)

The ___________________ is the part of the labor-management agreement that states that employees who receive union benefits must join the union, or at least pay dues to it.

union security clause