MANA3335 MindTap Learn It: Chapter 07: Organization Change and Innovation

A competitor introduces a much better product, so company managers lower prices below profitability.

*Reactive change {These managers have been taken by surprise and thus react ineffectively to the competitor's innovation}

What is enterprise resource planning (ERP)?

*A large-scale information system for coordinating activities across the enterprise {ERP is a large-scale information system for coordinating activities across the enterprise, as well as with suppliers and customers. It is especially useful for managing processes that cut across product lines, departments, and geographic locations, such as materials management, production planning, order management, and financial reporting}

In which stage of the innovation process does the organization determine whether the innovation can be made into a product or service and delivered to customers?

*Application {The innovation process generally begins with development and proceeds to the application stage, in which the organization tries to incorporate the creative idea in a product, service, or process. If the innovation passes this stage, the next step is to try to launch a product/service that includes the innovation on the market}

Implementation Refreezing Unfreezing

From top to bottom *Step 2 *Step 3 *Step 1 {The Lewin model describes the change process in three steps: 1.In unfreezing, people recognize why the change is needed. 2.The change is implemented. 3.In refreezing, the organization reinforces the change so that it persists.}

Most consumers decide they would rather order a product online than go to a store, so store managers cut costs by buying less inventory.

*Reactive change {These managers have been taken by surprise and thus react ineffectively to the change in consumer behavior}

Reinforcing the change so it persists Making the change Recognizing why change is needed

From top to bottom *Step 3 *Step 2 *Step 1 {The Lewin model describes the change process in three steps: 1.In unfreezing, people recognize why the change is needed. 2.The change is implemented. 3.In refreezing, the organization reinforces the change so that it persists.}

Which of the following techniques sometimes help a manager overcome resistance to organization change? Check all that apply.

*Communicate openly with employees about the reasons for the change and its impacts *Invite employees to participate in planning and implementing the change *Identify the forces acting for and against change and reduce the strength of the opposing forces {Four techniques that can help managers overcome change are: •Encourage employees to participate in planning and implementing the change. •Communicate openly with employees throughout the change. •Change no more than is necessary and give employees time to adapt. •Conduct a force-field analysis by identifying the forces acting for and against change, then reducing the forces against change while boosting the forces for change.}

In the five-step reengineering process, which steps occur before management recreates the organization? Check all that apply.

*Encourage a sense of urgency of members of the organization *Persuade employees of the commitment of top management to reengineering *Develop goals and a strategy for the reengineering effort {The five steps of the reengineering process are as follows: 1.Develop goals and a strategy for the reengineering effort. 2.Emphasize the commitment of top management to reengineering. 3.Create a sense of urgency of members of the organization. 4.Begin redesigning processes as though recreating the organization from scratch. 5.Incorporate top-down and bottom-up perspectives to achieve the right balance of leadership commitment and employee participation. Team-building and technostructural activities are organization development techniques. They may be used to assist with any part of the reengineering process}

According to the seven-step comprehensive model of change, which steps should a manager perform before choosing an appropriate change technique? Check all that apply.

*Establish goals for the change *Recognize the need for change *Diagnose the relevant variables {Choosing an appropriate change technique is the fourth step in the comprehensive model of change. The seven steps are: 1.Recognize the need for change. 2.Establish goals for the change. 3.Diagnose the relevant variables. 4.Select an appropriate change technique. 5.Plan for implementation of the change. 6.Implement the change. 7.Evaluate the change and follow up.}

The US Congress passes and the president signs a law restricting the organization's ability to do business.

*External force {A new federal law is a change in the organization's external environment, so it is an external force for change}

Inflation and unemployment rise sharply.

*External force {Rising inflation and higher unemployment are changes in the organization's external environment, so they are external forces for change}

According to the seven-step comprehensive model of change, which steps should a manager perform after diagnosing the relevant variables? Check all that apply.

*Implement the change *Plan for the implementation of the change *Select an appropriate change technique {Diagnosing the relevant variables is the third step in the comprehensive model of change. The seven steps are: 1.Recognize the need for change. 2.Establish goals for the change. 3.Diagnose the relevant variables. 4.Select an appropriate change technique. 5.Plan for implementation of the change. 6.Implement the change. 7.Evaluate the change and follow up. Unfreezing the organization so that it can change is the first step of the Lewin model of change; it corresponds roughly to steps 1 to 4 of the comprehensive model}

The organization starts to make a different product than it has ever manufactured before.

*Internal force {A change in business strategy is a change in the organization's internal environment, so it is an internal force for change}

Older employees retire, and the younger employees who replace them value different benefits.

*Internal force {A change in workforce values is a change in the organization's internal environment, so it is an internal force for change}

Which of the following conditions tend to promote innovation in organizations? Check all that apply.

*Payment and other recognition for creative ideas *A culture that encourages creativity and risk taking {One factor that tends to promote innovation is a reward system that confers pay raises, bonuses, and other things of value on employees who come up with creative ideas of merit. An organization's culture can also support innovation. Another approach to innovation is intrapreneurship, or the creation of roles in the organization that develop new ideas and bring them to market}

Expectations

*People {One aspect of managing people that is commonly involved in change is expectations. Here is a more complete list: •Abilities and skills •Performance •Perceptions •Expectations •Attitudes •Values}

A key material is suddenly in short supply, but the company's managers have already figured out how to switch over to a different material.

*Planned change {Because the managers already know how to use a different material, they are carrying out planned organization change}

A major earthquake occurs, and the organization's managers carry out predetermined steps to ensure employee and customer safety.

*Planned change {Because the managers can carry out predetermined steps, they are carrying out planned organization change}

Work processes

*Technology and Operations {One aspect of technology and operations that is commonly involved in change is work processes. Here is a more complete list: •Information technology •Equipment •Work processes •Work sequences •Control systems •Enterprise resource planning (ERP)}

Which of the following techniques are NOT likely to help a manager overcome resistance to organization change? Check all that apply.

*Tell employees the minimum necessary information about the change so that they can continue to do their jobs without added stress *Make sure employees know that they should not share their opinions, since senior management has too much to accomplish in this time of transition *Ignore forces acting against change, since once the decision to change has been made, change is inevitable {Four techniques that can help managers overcome change are: •Encourage employees to participate in planning and implementing the change. •Communicate openly with employees throughout the change. •Change no more than is necessary and give employees time to adapt. •Conduct a force-field analysis by identifying the forces acting for and against change, then reducing the forces against change while boosting the forces for change.}

An innovation that completely replaces an existing product or service is ________ innovation, while an innovation that modifies an existing product or service is ____________ innovation.

*a radical *an incremental {Radical innovations completely replace existing products, services, or technologies. Incremental innovations modify existing products, services, or technologies}

When employees will no longer interact with the same coworkers and must stop using a favorite business system, ___________ is common.

*a sense of loss {Losing relationships with coworkers and familiar ways of getting work done often triggers a grieving process, as employees miss aspects of work that they valued}

The radical redesign of all aspects of an organization is known as _________________ .

*business process change {Business process change, also known as reengineering, is the radical redesign of all aspects of an organization. Managers undertake reengineering to achieve large improvements in cost, service, and/or speed}

An organization development practitioner would perform ________ with employees to help them integrate their personal life goals with those of the organization.

*life and career planning {Life and career planning are offered to employees to help them formulate and achieve goals that are both personally meaningful and supportive of the organization's goals}

When organization change will reduce an employee's prestige and influence, the employee is likely to resist change due to __________ .

*threatened self-interest {Organization change can create "winners" and "losers." That is, some employees may gain status, pay, etc. and others may have lower status or even no job at all. It is natural for people who will be harmed by the change to resist it}