Busi. Mgmt. Chapter 6
True
Approximately half of new businesses survive less than five years
Skunkworks
. A __________ project is one typically developed by a small and loosely structured group of people who research and develop a project primarily for the sake of radical innovation.
True
Forces for change include the environment, technology cycles, and next generation.
False
In terms of innovation, the United States ranks in the top 5 countries
intensity, source, focus
Resistance to change varies in its ______, ______, and ______.
True
The facts about an impending change are often circulated through the grapevine.
Strategy, structure, technology, and people
What are the types of change that can occur in an organization?
Unfreezing
. Eric is a manager at a local café. Eric frequently receives complaints about his staff and the overall customer satisfaction is low. Eric recognizes the need for change, but fears that his staff will be hesitant to embrace a change in the culture they have created. At what stage in Lewin's change model is Eric's cafe in?
Intapreneur
. Josh works for H4, a company that encourages employees to create new products. Josh was just assigned to a project where he will create a product their company currently does not sell. If his project gets picked, he will become the manager of the product's line. If Josh gets the product, he will be a(n) __________.
entrepreneurial orientation
. Large businesses that innovate and change have an _____________.
By developing a positive trust climate for change
. Mary is a new supervisor working with a preexisting staff that has resisted many of the new policies she has put into place. She realizes that she may have overstepped boundaries with the staff and has made efforts to make sure the staff knows she has their best interests in mind. She has encouraged staff members to suggest their own ideas and emphasizes that their input is important in making decisions. How is Mary overcoming resistance with her staff?
an organizational development intervention that uses a questionnaire to gather data to use as the basis for change
. Survey feedback is ___________.
False
. We are more commonly concerned about the interests of the organization than about our best interests when it comes to change.
Incremental change is continual improvement that takes place within the existing technology cycle. Discontinuous change is a significant breakthrough in technology that leads to design competition and a new technology cycle. The difference between the two forms of change is that incremental changes occur within the current technology cycle whereas discontinuous change starts a new technology cycle. An example of incremental change can be when software companies provide updates and enhancements to a current computer operating system. An example of discontinuous change is when there is a breakthrough in technology such as the advent of the high-definition television
. What are the two forms of change and how do they differ from each other? Give an example of each.
Social
. __________ entrepreneurs start new businesses with the goal of changing the world while making a profit.
Innovation
. ___________ is the implementation of a new idea.
Self-interest
A new policy at work requires Jason to stay later on Wednesdays to attend mandatory project meetings. Wednesdays are usually when Jason takes his daughter to soccer practice. Jason would rather have the project meetings earlier in the morning on Wednesdays or stay later on Thursdays so he can still make time for his daughter. What is Jason's reason for resisting change?
Resistance
A new policy at work requires Jaxon to wear slacks every day of the week. Previously, he enjoyed wearing khakis or golf shorts to work on occasion. Since he works at a call center, he is never face-to-face with customers and does not like or understand this new policy. He does not understand the need for this new policy and is considering asking his management for explanation. He hopes he can still find a way to wear whatever pants or shorts he wants. We would consider Jaxon to be in which stage of the change process?
True
A new venture is a new business or a new line of business.
Small business
A(n) __________ is a business that is independently owned and operated, with a small number of employees and a relatively low volume of sales.
Exploration
The team at TeleCorp was very impressed by their competitor's most recent release. They found it intriguing and are worried about some of their current customers switching services since they do not have a comparable product. They have begun doing their own research in this new field and thinking about how to create their own offering. What stage of the change process are they in?
False
The three major sources of resistance to change are beliefs, values, and work environment
True
There are four types of change
100
According to the Department of Labor, a small business employs fewer than __________ workers
500
According to the Department of Labor, a small to mediumsize enterprise is one that employs fewer than __________ workers.
Innovators
According to the technology adoption curve, the first group to adopt a new technology is referred to as __________.
Laggards
According to the technology adoption curve, the last group to adopt a new technology is referred to as __________.
Values
Which of the major sources of resistance to change deals with what is important to us and pertains to right and wrong to help establish priorities?
Fear of loss
Amanda has worked for Parks City Library for over ten years and has grown to love her job and her coworkers. Recently, there has been talk among the library workers that half of the existing workers will be transferred to the new library on the other side of town. Amanda is worried that Macy, her fellow worker of five years, will be one of the staff members moving to the new library. She hopes that both she and Macy will stay at the same library. What is Amanda's reason for resisting change?
The environment
Amazon developed and released the Kindle TV Set-Top Box to compete with both the Apple TV and Microsoft's Xbox One. Which force for change is being demonstrated?
500
Both the Small Business Administration and the Department of Labor define a business as large if it has __________ or more employees.
By creating a win-win situation
David is discussing changes to the smoking policy at work. Though the company as a whole wants to execute a work environment that is smoke-free, over half of David's employees prefer to smoke during their lunch breaks in the break room. After many complaints about the new policy, David tries to appease these workers that want to smoke by redirecting them to smoke outside the building in designated smoking zones. How is David overcoming resistance with his staff?
Refreezing
Diego is a manager at a local retro game shop. He has recently had to overhaul the firm's process of acquiring certain merchandise. In order to accomplish this new process, the entire staff had to be retrained. Although the change was initially met with some resistance, it is now becoming the standard within the company. At what stage in Lewin's change model is Diego's game shop in?
Team building
___________ is the most widely used organizational development intervention technique today.
Answers to this question will vary but should include elements of the following: Denial: When changes are difficult to understand or accept, the employee may deny that the change will affect him or perhaps deny the fact that he is being let go. The employee in this situation may feel that a mistake has been made. Resistance: Once over the shock, he may resist the change. The employee, who is obviously upset, may speak to his direct supervisor or HR manager, pleading the case of why his position should not be eliminated. Exploration: Exploration occurs when you begin to understand how this change will affect you and begin to try to adapt. Realizing that the position will indeed be eliminated, the employee begins to come to terms with the change and begins to weigh his options for the future. Commitment: After some exploration, the employee identifies his level of determination to make change a success. The employee at this point realizes that he now needs to line up a new job and begins to submit applications and resumes and to schedule interviews with new would-be employers.
Due to unfortunate economic conditions, you find out that your position is being eliminated. Please discuss the four stages of the change process in relation to your current situation.
the experimental approach
During discontinuous change, one should manage innovation using ____________.
Commitment
___________________ is necessary in order to implement change.
suggests a change for "Find Your Car" to make
Marla works for Direct Consulting, a consulting firm that specializes in direct feedback. She has been hired by "Find Your Car" to find out why their customer base is shrinking. In order to utilize direct feedback organizational development intervention, Marla __________.
By clearly state why the change is needed and how it will affect employees
Mary is a new supervisor working with a preexisting staff that has resisted many of the new policies she has put into place. Mary explains to the staff that the new policies are more effective than the old ones because they save time and energy and allow the staff more time to spend serving customers. How is Mary overcoming resistance with her staff?
When managers organize and delegate tasks, they often require employees to make some changes in their regular routine. When managers hire, orient, train, and evaluate performance, change is required. Leadership calls for influencing employees, often to change in some way, and control may require the use of new methods or techniques
How do the four management functions relate to change?
Denial
Mitchel has worked for Smith's Construction Company for eight years and loves his job. Recently, a new manager was hired for his region and rumor has it that the new manager wants to bring in all his own staff and plans on laying off most of the existing workers. Many of Mitchel's friends have begun looking for new jobs, but Mitchel believes that there is no way he will be one of the ones to be let go. He is currently experiencing which stage of the change process?
True
More males start businesses than females.
an organizational development intervention that diagrams the current level of performance, the forces hindering change, and the forces driving toward change
Forcefield analysis is ____________.
True
Franchisees are not considered by some to be real entrepreneurs or intrapreneurs
Next generation
In 2006, Microsoft released the Xbox 360, which was capable of playing older Xbox games. This is an example of __________.
Discontinuous
In 2007, Apple Inc. released the iPhone, which was a breakthrough in the cell phone market. Today, competitors such as Samsung, Motorola, and HTC each have smartphones on the market that closely resemble the iPhone in both form and functionality. What form of change did the first iPhone demonstrate?
True
In the comprehensive model, controlling the change involves following up to ensure that the change is implemented and maintained
False
Incremental change occurs when there is a significant breakthrough in technology that leads to design competition and a new technology cycle.
Specialist division of labor
Innovative structures commonly share all of the following characteristics, except __________.
corporate entrepreneurs
Intrapreneurs are also called __________.
Forcefield analysis
Jen is a member of a team within her company that needs to solve the problem of why their customer base is decreasing. The team is small, with only seven members, including her. After Jen's boss gives the team their assignment, they begin to determine why their customer base is shrinking. They decide to make a diagram. Jen's group is using which organizational development intervention?
Strategy
John is an owner of a franchise that produces custom signs and banners. Prior to the recession, the majority of John's business came in the form of walk-in and repeat customers. After the recession, the amount of traffic to his shop dwindled and his business was suffering. John decided to hire an outside salesperson to actively find new business rather than wait for new business to come to him. What type of change did John implement?
Moving
Kenzie is a manager at a golf course. She frequently receives complaints about the condition of the greens and realizes the procedure for maintaining the greens is no longer adequate. She is currently retraining the maintenance staff to correct the problem. At what stage in Lewin's change model is Kenzie's golf course in?
Freezing
Lewin's change model includes all of the following steps, except __________.
False
Lewin's change model presents a change-stability paradox, going from refreezing to unfreezing.
Encouragement of risk taking: Getting employees to voice creative ideas helps lead to innovation. Innovative cultures encourage and reward employees for taking risks without fear of punishment if they fail. Flexibility: Employees are more innovative when they are empowered to do things their own way. They have a sense of ownership and control over their ideas and work, and they can make changes to their work without having to get permission, as they are not micromanaged. Open systems: With an open system, you seek innovation from within and outside the firm. Many companies today are turning to their customers, suppliers, and others in their supply chain for innovation.
List and describe the common characteristics of innovative cultures.
Uncertainty: Employees react defensively and rationalize that change is not really needed because they fear the unknown outcome and potential failure. Learning anxiety: Employees resist change because they are scared that they may not be successful in learning something new and may look bad in front of their peers. Self-interest: Employees feel that they are personally threatened by the change and are more concerned with their best interests rather than those of the organization. Fear of loss: Employees fear some sort of economic loss or loss of social relationships due to the change. Fear of loss of control: Employees fear loss of power, status, security, or control due to the change.
List and describe the five reasons employees resist change
By creating urgency
Lucy has asked her staff to think of an idea for the company to have the competitive advantage in social media. Despite staff complaints, Lucy feels the need to take action and has encouraged staff members to make social media a high priority in development before another company takes the advantage. How is Mary overcoming resistance with her staff?
True
New machines and equipment, information processing, and automation are examples of changes based on technology
lack of job opportunities
One of the factors that contributes to a higher degree of entrepreneurship in emerging economies is __________.
Technology cycles
Online streaming and downloading of music have replaced the compact disc. Which of the following is this an example of?
Commitment
Orchid Incorporated recently recognized that some changes needed to be implemented. Due to this realization, an entirely new training program has been developed and is ready for implementation. Continuing down the current path could be dangerous for the future of the company, but this drastic change will not be easy. The staff has had some trouble adjusting, but most agree that this is now the way things are. The stage of change being undergone here is ________________.
Failing to take risks
Research in Motion (RIM) dominated the cell phone market for several years with their popular BlackBerry smartphone. Complacent, RIM did not feel the need to adapt to a changing cell phone market with the introduction of the Apple iPhone. Google later entered the cell phone market with their line of Android smartphones. Today, both Apple and Google dominate the market with 94% of the market share while RIM holds only 2.3%. What caused RIM to lose their dominance of the cell phone market?
Learning anxiety
Sally was recently assigned to an important advertising campaign for WonderCorp's new project. She is usually the leader of cash operations and has not done any major advertising since she graduated three years ago. Sally is scared she might ruin the advertisement and create a bad name for the company. What is Sally's reason for resisting change?
unfreezing
The step in the comprehensive model that includes identifying possible resistance to the change and planning how to overcome it correlates to which step in Lewin's change model?
Moving
The step in the comprehensive model that includes planning and implementing the change interventions correlates to which step in Lewin's change model?
human resources management department; change agent
The _______________ is often responsible for organizational development throughout an organization while the ___________ is responsible for implementing an organizational change effort
. compression approach
The strategy of the ______________ is to continue to improve the existing technology as rapidly as possible while still allowing the use of the old technology.
True
The survival rate for businesses founded by Asians in the United States is significantly higher than that of other groups.
True
The comprehensive change model is a five-step process that is more detailed than Lewin's change model.
False
The comprehensive change model is an organizational development intervention.
recognize the need for change
The first step in the comprehensive model for change is to __________.
denial, resistance, exploration, and commitment
The four stages people tend to go through when facing change are ____________.
an ongoing process
The four-stage change process is ______________.
experimental approach
The goal of the _______________ is to make significant improvements in performance and to establish a new dominant design.
compression approach
The goal of the _____________________ is to lower costs and incrementally improve performance and functions of the existing dominant design.
control the change
The last step in the comprehensive change model is to __________.
unfreezing
The step in Lewin's change model that includes reducing the forces maintaining the status quo is __________.
Moving
The step in Lewin's change model that includes the change process in which employees learn new, desirable behaviors, skills, values, and attitudes is __________.
Refreezing
The step in the comprehensive model that includes following up to ensure that the change is implemented and maintained correlates to which step in Lewin's change model?
Product and process
Two important types of innovation are _______________.
Work environment
What is a major focus of resistance to change?
Organizational development
What is the commonly used method of managing planned change?
. Write a business plan
What is the first step to take after selecting a new business venture?
False
When faced with change, people always go through the four stages of the change process in a linear fashion
Risk
When implementing innovative changes, one faces ______.
False
When surveyed, most entrepreneurs reported that they started businesses that offered products or services that already existed and that were on par with existing offerings
False
When tasks change, people's compensation and job titles must change.
Attitudes
Which is not a major source of resistance to change?
Training and development
Which of the following forms of organizational development intervention is focused only on the individual
Survey feedback
Which of the following forms of organizational development intervention is the oldest and most popular technique at the department, division, and organizational levels?
Develop a united goal
Which of the following is not a way of overcoming change?
Self
Which of the following major focuses of resistance to change asks the question, "What will I gain or lose?"
Which of the following organizations is known to have a strong innovative culture?
Uncertainty
You are upset that the company is implementing a new policy for swapping scheduled shifts. The new policy requires employees to send a 48-hour notice when swapping scheduled shifts and waiting for supervisor approval before an actual swap can occur. You feel that the current policy in which employees can swap shifts at any time without supervisor approval is sufficient and that a change is not necessary. You don't see how the new policy can be implemented without becoming an inconvenience to both employees and supervisors, causing inefficiency in scheduling. What it at the core of your resistance to change?
First-Mover
__________ advantage exists when an entrepreneur is able to offer a product or service with unique customer value before competitors do so.
Small businesses
___________ fuel the economy, since they create as much as 80% of new jobs.
Discontinuous change
___________ is a significant breakthrough in technology that leads to design competition and a new technology cycle.
Incremental change
___________ is continual improvement that takes place within the existing technology cycle
Organizational change
___________ is the alteration of existing work routines and strategies that affect the whole organization.
