MGMT CH 10

In which of the following situations would OD techniques be the most helpful?

Assisting employees in dealing with stressful situations.

Which of the following is an example of a proactive change?

Ciara explores improvements in bonus structures with her staff and begins to implement them despite the fact that her employees are generally content.

Kotter proposed which of the following for organization change?

Eight steps for leading organizational change.

Which of the following is the factor that most reduces an organization's ability to learn from failure?

Employees that blame others for failure.

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

False

Adaptive change involves introducing a practice that is new to an industry.

False

An OD intervention that worked in the United States is likely to work equally well around the world because the practices are very fundamental to human nature.

False

BP handled the 2010 oil spill crisis in the Gulf of Mexico in a proactive manner.

False

Benchmarking is a technique that can be used in the refreezing stage of Lewin's change model.

False

Changes in power structures that occur with administrative and technological changes are generally embraced by employees because of the new opportunities they present.

False

Chicago Cutlery reinstituted a sales contest with the same rules as the one that it used five years ago. This is an example of a process innovation.

False

Employee problems are one type of outside force for change in the organization.

False

Hard data about absenteeism, turnover, and profitability are used in the intervention stage of the OD process.

False

Having employees that experiment may limit an organization's ability to learn from failure.

False

In the context of change, technology refers to computer technology used to gain a competitive advantage.

False

In the refreezing stage of change of Lewin's change model, employees need to be given new information, perspectives, and models for behavior.

False

Information is rapidly becoming the new competitive advantage.

False

Innovation can be fostered by withholding raises or promotions from those whose attempts to innovate are not successful.

False

Innovation most often happens in a "eureka" moment of epiphany.

False

Innovative change is the least threatening type of change and is therefore least likely to create resistance.

False

Kotter's research reveals that management of organizational change is more essential than leadership throughout it.

False

Most organizations experience innovation as a matter of course; it happens naturally as part of everyday business.

False

OD focuses specifically on the technology aspects of change

False

Patagonia was satisfied with its OD intervention to become greener.

False

People are generally comfortable with and embrace change, even change in apparently major matters

False

People changes in an organization are not required until that organization reaches about 20 people in size, when the level of specialization reaches a critical point.

False

Putting an end to servant leadership is a change that is likely to improve manager-employee relationships.

False

Reactive change is carefully thought out.

False

Successful large companies are more able than other firms to survive and prosper in an environment of radically innovative change.

False

The first step of the OD process is evaluation, which uses employee surveys, interviews, and observation to ascertain attitudes and problem areas.

False

The marketplace is becoming more homogeneous and moving toward more similar products.

False

The most effective way to handle rewards for innovation is to provide them at the end of a successful project.

False

The need for change comes solely from outside the organization.

False

The recent structural trend is toward a taller organizational hierarchy.

False

The three most important ways to encourage innovation are by providing the right organizational culture, a team-based structure, and creative talent.

False

The two types of change are practical and theoretical.

False

While customers may act as a force for change, shareholders support stability.

False

The three steps of the OD process are diagnosis, experimentation, and adaptation.

False OD managers and consultants follow a medical-like model

Which of the following is an effective way to deal with change and innovation?

Have the courage to follow your ideas.

Which of the following is not one of the primary uses of OD?

Improving recruitment

Which of the following is not an inside force that indicates organizational change might be needed?

Increased competition

Which of the following is not an area in which change is often needed?

Information

Which of the following is not a supertrend shaping the future of business?

Information becoming a competitive advantage.

Which of the following is not a leading reason that employees resist change?

Lack of personal ethics

Which of the following is not an interacting factor that affects the level of resistance to change?

Longevity of the change agent.

Inside forces for change include which of the following?

Low productivity

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

Philanthropy

Which of the following sequences best describes how a manager can foster innovation in an organization?

Recognize problems, gain allies, overcome resistance, execute well

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

Resistance to change

Which of the following is an example of a force for change originating outside the organization?

Social pressures

Which of the following circumstances is likely to increase the success of OD?

Support of top managers.

A change agent is a behavioral sciences consultant who helps organizations deal with old problems in new ways.

True

According to Jim Collins, researcher of enduring great companies, hubris and denial are among the stages of institutional decline.

True

According to Lewin, for unfreezing to take place, people need to become dissatisfied with the old way of doing things.

True

According to Scott Berkun, the search for wealth is one of six seeds of innovation.

True

An important component of dealing with change is to allow grieving over the loss of old ways

True

An organizational culture that celebrates failure helps foster innovation

True

China and India are changing the way American companies work, in part, through substantial labor savings

True

Coleman Natural Foods began selling natural beef back when most shoppers were unaware of the term. This is an example of proactive change.

True

Conventional electric vehicle batteries use a liquid electrolyte but an Orlando start-up is developing a solid-state lithium-ion battery with improved stability and lifetime. This is an example of incremental innovation.

True

Demassification refers to a trend of customer groups being segmented into smaller, specialized groups responding to narrowly targeted messages.

True

During the refreezing stage of Lewin's change model, managers should model the change themselves, as well as coach employees and reinforce the desired behaviors.

True

Entrepreneurs tend to be tolerant of ambiguity.

True

Even when it comes to technology-induced change, OD can be helped by opening communication and dealing with stress.

True

Hasbro's move to create a version of its Monopoly game for iPad for technology-obsessed children is an example of proactive change

True

In 1961, Procter & Gamble introduced the first affordable, readily-available disposable diaper called Pampers. At that time, Pampers were an example of a radical innovation.

True

In OD, combined interventions have been found to work better than single interventions

True

In the OD process, feedback is used to refine the diagnosis.

True

Innovation differs from creativity or invention in that it requires useful application.

True

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

True

Intervention is the treatment phase of OD in which problems are corrected.

True

Job dissatisfaction within an organization can be an indicator that change is needed.

True

Kotter's change step of anchoring new approaches in the culture corresponds to refreezing in Lewin's model.

True

Managers' behavior is one type of inside force for change in the organization.

True

Mistrust between change agents and employees can cause failure of well-conceived changes

True

One of the primary situations in which OD is used is when adapting to mergers.

True

One of the reasons employees resist change is fear of the unknown.

True

One of the strengths of Virgin Group Ltd. is its ability to enter new businesses quickly.

True

One step for fostering innovation is gaining allies by communicating your vision.

True

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

True

Radical innovation is the creation of products, services, or technologies that replace existing ones.

True

Sabotage can be a form of resistance to change in the workplace.

True

Secondhand shops suffering from a recession-induced decline in thrift store donations is an example of an outside force for organizational change.

True

The four areas in which change is most apt to be needed are people, technology, structure, and strategy.

True

The most complex, costly, and uncertain kind of change is known as radically innovative change.

True

The self-serving bias can lessen an employee's ability to learn from failure.

True

Creighton Bicycles and Repair conducted a survey and discovered that among customers who had tried both bike shops, its successful cross-town competition was preferred about 80% of the time. The most frequently cited reason was customer service. This information would be most helpful to introduce to employees during which stage of Lewin's change model?

Unfreezing

Which of the following is not a way to encourage innovation?

Withholding raises and promotions when innovation attempts don't work out.

At Hartford Toy Depot, employees know that during the month of December they are generally required to work different schedules, often with some overtime, to support the holiday shopping season. This is an example of a(n) ______ change.

adaptive

The reintroduction of a familiar practice within the same organization is called a(n)

adaptive change.

The Human Resources manager at the Apex Golf and Tennis Club has just calculated the employee absenteeism rate for 2012, and it is 25% higher than it was in 2010 and 2011. He should

address job design and ways to deal with work overload.

The process by which a company compares its performance with that of high-performing organizations is called

benchmarking.

Organizational development is often put into practice by a

change agent.

According to Jim Collins, undisciplined pursuit of more and grasping for salvation are stages of organizational

decline.

The increasing diversity of the American workforce is an example of a(n) ______ force for change.

demographic

Caleb, an OD consultant, is designing a survey of employee attitudes to be given to workers at Tandem Investments. Caleb is conducting the ______ stage of OD.

diagnosis

Marc, an OD consultant, is visiting Cassidy Engineering a year after he assisted them in making changes to their employee incentive plan. Now he is comparing sales and turnover data from the last three years to the current year. Marc is in the ______ stage of OD.

evaluation

Once you have been able to gain allies and overcome employee resistance, excellent ______ will be a key to fostering innovation.

execution

When it comes to failure in the innovation process, Procter & Gamble CEO A. G. Lafley suggests that the key is to

fail early, fail cheaply, and don't make the same mistake twice.

Nonmanagerial employees at Kennedy Steel belong to a union. The union has come close to striking several times over the years, and labor negotiations have recently been very tense. Kennedy likely needs to focus on changing

forces originating inside the organization.

During Lewin's changing stage, managers should

give employees new models for behavior.

Peter, the owner and lead accountant at a tax preparation firm, is changing the work schedule of his long-term employees for the months of March and April, the company's busiest time. He is requiring work on weekends for everyone, using the same basic schedule as last year. Peter should expect that his employees will be

hardly upset or not upset at all.

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

incremental

Great Plains Credit Union has decided that tellers must rotate through a new weekend shift on Saturday afternoons since several of its competitors in the area have recently begun to offer these hours to customers. This is a(n) ______ change.

innovative

A change that represents the introduction of a new practice to an organization but that is not new to the industry is called a(n)

innovative change.

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

intervention

Tirzah, an OD consultant, is working with members of with a cross-functional team to help them build cohesiveness and practice skills to function better as a team. Tirzah is conducting the ______ stage of OD.

intervention

Employees are likely to see an adaptive change as

least threatening.

During the recession and its accompanying high levels of unemployment, Giordano Construction has had its choice of employees to support its growth. This is an example of a(n) ______ force for change.

market

An innovative change involves ______ complexity, cost, and uncertainty.

moderate

The set of techniques used for implementing planned change to make people and organizations more effective is called

organizational development.

Employees might feel they are being underpaid for what they do, even if pay and benefits are superior to the competition. Here, managers must change

perceptions.

Maid to Clean is considering implementing a system that will pay its cleaning workers based on the number of completed residential jobs, coupled with satisfactory ratings on random inspections to ensure quality. Managers believe that this will reduce labor costs. Maid to Clean is focusing on changing employee

performance.

Walmart's implementation of RFID, a type of technology that allows it to improve inventory tracking, is an example of a(n) ______ change.

proactive

A managerial innovation that improves the efficiency of a company's cross-functional teams would be considered a(n) ______ innovation.

process

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

process

The management department at a local university began posting all assignments and other class materials to a course management website instead of creating a packet for students to purchase each term. This is a(n) ______ innovation.

process

A technological innovation that improves the speed of a computer's microprocessor would be considered a(n) ______ innovation.

product

Researchers working on hydrogen fuel cells hope that this could be a(n) ______ innovation, leading to a clean, renewable energy source, and reducing dependence on depleting fossil fuels with their adverse impact on the global environment.

radical

Evanston Cable Television has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require them to have several technicians on call. Evanston hopes this practice will give them an advantage over the competition, none of whom have adopted such a practice. It is introducing a(n) ______ change.

radically innovative

Introducing a practice that is new to the industry is called a(n) ______ change.

radically innovative

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

reactive change.

During Lewin's refreezing stage, managers should

reinforce the desired change in the employees.

Hollywood Hair recently introduced a new acai berry moisture shampoo. Wenling, director of new product development, has just reviewed the dismal results. It appears that her team did adequate research on the product's acceptance by consumers prior to its introduction and is confused by the outcome. Wenling should

reward her team for their effort.

Managers at Lucky Peach magazine are in the process of cross training entry-level employees to be able to take phone orders or answer customer questions, and to process orders in overflow situations. The company is changing its

skills.

Saitou Insurance 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. Saitou most likely needs to focus on changing employee

skills.

Arizona Pottery is having a difficult time finding inexpensive labor, which it attributes to an unfriendly climate toward Hispanics since passage of tough illegal immigration legislation in that state. This is an example of a(n) ______ force for change.

social or political

Recently many older workers who had planned to retire soon decided to keep working longer. This is an example of a(n) ______ force for change.

social or political

The record industry has been forced into a ______ change because of the prevalence and ease of illegally downloading music.

strategy

The invention of a machine to make plastic corks for wine bottles has severely affected companies that produce traditional cork. This is an example of a(n) ______ force for change.

technological

Mattress Emporium has had several incidents lately in which its drivers became lost when attempting deliveries. The drivers have no GPS or other access to computerized information and rely on the customers themselves for directions. Mattress Emporium probably needs to change its

technology.

Frisco Recreational Vehicles recently instituted cross-functional teams to develop new products. Team members are spread across the country, so it is expensive and time consuming for people to travel to headquarters to meet. The company would benefit most from a change in ______ involving

technology; teams meeting "virtually" through electronic media.

Lewin's change model consists of

three stages: unfreezing, changing, and refreezing.