chapter 7

49. Companies need to excel at managing in order to successfully manage innovation streams. a. the sources of innovation b. innovation during synergistic change c. reciprocity d. environmental design issues e. behavioral formality

a

An innovation stream moves from one technology cycle to another through the process of . a. technological substitution b. dominant design c. incremental environmental change d. organizational synergy e. transition management

a

In terms of innovation streams, what ____ occurred when customers purchased flat-screen computer monitors to replace the older, bulkier monitors. a. technological substitution b. technological expansion c. reengineering d. demarketing e. the pioneering era

a

Kodak is a company associated with photography and has decided to become a market leader in digital imaging. Kodak can encourage the development of a culture where workers perceive that new ideas are welcomed by offering challenging work and supervisory encouragement. In other words, the company can create a(n) . a. creative work environment b. open system c. adaptive culture d. culture of change e. tall structure to encourage horizontal communications

a

The auto industry has been perfecting the internal combustion engine (ICE) for some 120 years. The Partnership for a New Generation of Vehicles (PNGV), a cooperative program between the Big Three and the U.S. government to replace ICEs with electric engines, has been operating since 1993. The internal combustion engine (ICE) is an example of . a. a dominant design b. design dichotomy c. a synergistic design d. a differential design e. a dichotomous product

a

The goals of the compression approach to innovation are . a. speed, lower costs, and incremental change of dominant design b. the development of milestones and the comparison of actual milestones with forecasts c. the establishment of a dominant design and speed d. absolute-time management and the creation of a dominant design e. a matrix innovation process and a sustainable competitive advantage

a

The_____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that compressing the time it takes to complete those steps can speed up innovation. a. compression b. milestones c. dialectical d. generational e. prototypical

a

Discontinuous change in an innovation stream is characterized by . a. synergy b. technological substitution c. incremental change d. empathetic design e. innovative reciprocity

b

In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance . a. during the growth stage of the cycle b. at the midpoint of the cycle c. only at the end of the cycle d. throughout the cycle e. only at the beginning of the cycle

b

It is appropriate to use a(n) approach to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design. a. experiential b. compression c. prototypical d. milestones e. reinforcement

b

Organizational __ is the successful implementation of creative ideas in organizations. a. change b. innovation c. creativity d. development e. deployment

b

The purchase of new technologies to replace older ones is an example of . a. adaptive change b. design replacement c. technological substitution d. dominant design e. innovative exchange

c

Which of the following is NOT one of the basic methods for managing resistance to change? a. education and communication b. participation c. change simulation d. negotiation e. coercion

c

ackward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in . a. coercive change b. dominant design manipulation c. generational change d. intuitive change e. incremental modification

c

forces support the status quo. a. Dialectical b. Generational c. Resistance d. Experiential e. Autonomous

c

. Hewlett-Packard is currently exploring new products and markets through the development of digital imaging products in its plants in India, South Africa, and the United States. To jump-start this innovative process, Hewlett- Packard can across all of its plants around the world. a. manage flow through the use of Gantt charts b. concentrate on dominant design and ignore incremental design c. engage in creative reciprocity d. establish creative work environments e. do none of these

d

In order from beginning to end, the phases of a technology cycle within an innovation stream consist of . a. incremental change, discontinuous change, dominant design, and technological discontinuity b. discontinuous change, incremental change, technological discontinuity, and dominant design c. dominant design, discontinuous change, era of incremental change, and technological discontinuity d. technological discontinuity, discontinuous change, dominant design, and incremental change e. technological discontinuity, incremental change, discontinuous change, and technological continuity

d

In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance , a. early in the cycle b. throughout the cycle c. at the end of the cycle d. at both the beginning and end of the cycle e. in the maturity stage of the cycle

d

Titleist has been manufacturing golf balls for several years, but each year it comes out with new golf ball designs. Titleist's development of the new Pro VI golf ball with a solid core designed to benefit players with high swing speeds is one example of how the manufacturer survives through . a. technological discontinuity b. discontinuous change c. dominant design d. incremental change e. technological continuity

d

Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____. a. change ombudsman b. staff moderator c. change mentor d. change agent e. intrapreneur

d

Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions? a. mentoring b. arbitration c. negotiation d. coercion e. reinforcement modification

d

is the knowledge, tools, and techniques used to transform inputs into outputs. a. Resource manipulation b. Procedural innovation c. A transformation system d. Technology e. Creativity

d

Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company's film business. Therefore, the company has decided to become a market leader in digital imaging. As Kodak tried to compete in this new innovation stream, it entered . a. technological adaptation b. the era of dominant design c. the technological growth stage d. change substitution e. discontinuous change

e

Organizational development . a. takes a long-range approach to change b. creates change by educating workers and managers to change ideas, beliefs, and behaviors so that problems can be solved in new ways c. assumes that top management support is necessary for change d. emphasizes employee participation in all stages of the change e. is accurately described by all of these

e

The use of milestones in the experiential approach to innovation . a. provides structure to the general chaos that follows technological discontinuities b. shortens the innovation process c. builds momentum by giving people a sense of accomplishment d. lets an organization know when to take corrective action e. does all of these

e

When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which stage of the technology cycle did it enter? a. technological adaptation b. the era of dominant design c. the technological growth stage d. change substitution e. discontinuous change

e

Which of the following is NOT a part of the experiential approach to innovation? a. hands-on experience to reduce uncertainty b. testing c. multifunctional teams d. design iterations e. initiative conversations

e

Which of the following is a component of a creative work environment that encourages creativity? a. the development of challenging work b. organizational encouragement c. the granting of autonomy d. the removal of organizational impediments e. all of these

e

Which of the following is an organizational impediment to creativity in a work environment? a. internal conflict b. rigid management structures c. bias toward the status quo (i.e., a conservative environment) d. power struggles e. all of these

e

Which of the following statements about resistance to change is true? a. Resistance to change will not occur when those affected by the change participate in its planning and implementation. b. Resistance to change will not occur when employees are educated about the need for change. c. Resistance to change will not occur when change efforts receive significant managerial support. d. Resistance to change disappears when the organization operates in conditions of certainty. e. Resistance to change will always occur; it is inevitable.

e

Which of the following statements describes an advantage of the results-driven change approach to managing change? a. It supplants the sole emphasis on activity with a focus on quickly measuring and improving results. b. Managers actually test to see if changes make a difference. c. Quick, visible improvements motivate employees to continue to make additional changes. d. Managers introduce changes in policies, procedures, rules, and regulations only when they will improve measured performance. e. All of these were cited as advantages of the results-driven change approach.

e

is the phase of a technology cycle characterized by technological substitution and design competition. a. Technological adaptation b. The era of dominant design c. The technological growth stage d. Change substitution e. Discontinuous change

e

Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin? a. unfreezing b. organizational dialogue c. change definition d. incremental change e. change mentoring

a

are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. a. Creative work environments b. Innovative societies c. Homogeneous work environments d. Participative work teams e. Empathetic work stations

a

. The approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding. a. compression b. experiential c. technological substitution d. generational change e. technological disruption

b

Organizational development . a. requires a steering committee b. takes a short-term approach to change c. is a philosophy and collection of planned change interventions d. assumes that top management support is not necessary for change e. is accurately described by all of these

c

Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply? a. planning b. supplier involvement c. shortening the time of individual steps d. multifunctional teams e. functional isolation

c

The three steps in the basic process of managing organizational change outlined by Kurt Lewin are . a. unfreezing, change intervention, and refreezing b. organizational change, departmental change, and individual change c. change definition, change motivation, and change d. synthesizing, motivating, and rewarding e. change definition, change mobilization, and change acceptance

a

An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the company to change its staid, risk-averse culture; from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." Nestlé USA used change to reinvent the company. a. activity-oriented b. results-driven c. generational d. vision-driven e. resources-driven

b

The General Electric workout is a special kind of . a. activity-oriented change b. results-driven change c. generational change d. vision-driven change e. resources-driven change

b

According to John Kotter, which of the following actions will adversely influence refreezing efforts? a. the absence of a vision b. not removing obstacles to the company's new vision c. not creating a powerful enough guiding coalition d. declaring victory too soon e. all of these

d

During the____ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design. a. technological discontinuity b. discontinuous change c. dominant design d. incremental change e. technological continuity

d

In the typical S-curve pattern of innovation, increased effort (i.e., money, research, and development) brings only small improvements in technological performance when performance limits of the technology are reached . a. during the introductory stage of the cycle b. at the breakeven point of the cycle c. during the maturity stage of the innovation cycle d. throughout the cycle e. at the end of the cycle

e

Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. During the organizational change, having this vision was especially important during the stage. a. change intervention b. the change prototype c. unfreezing d. refreezing e. change mobilization

a

The first step in the compression approach to innovation is . a. overlapping of the individual steps b. planning c. supplier involvement d. granting autonomy e. creating multifunctional teams

b

A technology______ 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. a. process b. pattern c. cycle d. hierarchy e. continuum

c

The use of milestones in the experiential approach to innovation . a. serves to eliminate manufacturing bottlenecks b. shortens the innovation process c. creates incrementally sustainable advantages d. virtually eliminates problems associated with the control function of management e. does all of these

b

Patterns of innovation over time that can create sustainable competitive advantage are called . a. innovation maps b. organization development c. results-driven change d. innovation streams e. cyclical inventions

d

There are eight general steps for organizational development intervention. The first step is . a. pioneering b. inception c. introduction d. entry e. startup

d

What is the first step for managing innovation during discontinuous change? a. design iteration b. budgeting c. the establishment of a dominant design d. supplier involvement e. process duplication

a

When resistance to change is based on insufficient, incorrect, or misleading information, managers should use as an approach to manage resistance. a. education and communication b. participation c. negotiation d. coercion e. change manipulation

a

Which of the following is one of the sources of resistance to change? a. self-interest b. multifunctional teams c. a dynamic organizational culture d. discontinuous innovation e. sustainable status quo

a

An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the company to change its staid, risk-averse culture; from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." In terms of organizational development, the process described here is primarily a(n) intervention. a. unit b. large system c. unit-focused d. results-focused e. cultural

b

Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of . a. corporate synergy b. organizational innovation c. assembly networking d. organizational networking e. reverse engineering

b

Kodak is a company associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was a(n) . a. technological subtraction b. technological discontinuity c. process obsolescence d. process addition e. example of design advantage

b

Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row strip-till subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three-dozen product prototypes. Unverferth used the approach to innovation. a. compression b. experiential c. technological substitution d. generational change e. technological disruption

b

When Gregg Steiner became the vice president for Cleveland-based Pinxav, he knew the diaper-rash product manufacturer's sales were declining. At a trade show Steiner was pitching the product to some new mothers who had never heard of it. The mothers weren't convinced that they should part with their money for a new-to-them product. The inspired Steiner said, "If you're not happy with the product, I will not only give you your money back, I'll buy you our competitors' product. I'll buy you whatever other brand you want." Suddenly the women were interested, and they all plunked down their money. None of the women ever took Steiner up on his offer. So Steiner decided to make it part of his business practice. This new guarantee was an example of . a. corporate synergy b. organizational innovation c. assembly networking d. organizational networking e. reverse engineering

b

Which of the following is NOT one of the components of creative work environments? a. challenging work b. group compensation c. freedom d. supervisory encouragement e. organizational encouragement

b

Covisint is an e-commerce venture involving many car manufacturers that allows carmakers access to online auctions for buying component parts and materials. Because the idea of such a Web site was a new concept, the prototype site was built and tested, then revised and rebuilt for further testing before the Web site was ever offered to customers. The management concept of was used to develop Covisint. a. serve development b. process duplication c. design iteration d. design compliance e. process reengineering

c

Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company. Therefore, the company has decided to become a market leader in digital imaging while still providing customer support for people still using film cameras. The existence of both technologies is an example of . a. design substitution b. modular management c. design competition d. hierarchical management e. a creative flow

c

The development of the DVD player was a source of _____ had once been. a. a sustainable competitive advantage b. creativity reengineering c. technological discontinuity d. planned shrinkage e. technological replacement to companies in the movie industry just as VHS tapes

c

The purpose of multifunctional teams is to . a. allow organizations to concentrate on their internal environments and ignore the external environments until they have completed the brainstorming process b. were primarily used by dot-coms and are no longer popular c. speed innovation through early identification of new ideas or problems that would typically not have been generated until much later d. do not typically use milestones because of group cohesiveness e. replace organizational structures on a typical organizational chart

c

Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three dozen product prototypes. Unverferth used to produce the best possible tiller before introducing it to the market. a. service development b. process duplication c. design iteration d. design compliance e. process reengineering

c

When a merger of South Carolina-based Springs Industries with the Brazilian textile producer Coteminas was announced, the CEO of Springs was quoted as saying, "It is unclear what effect this move will have on our employees though no immediate layoffs are planned. There may be some in the future." In this stage of the organizational change, the CEO should use empathy and communicate specific details of the merger. a. change intervention b. the change prototype c. unfreezing d. refreezing e. change mobilization

c

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, is said to have occurred. a. a milestone b. intuitive change c. generational change d. coercive change e. discontinuous innovation

c

When significant improvements in performance can ONLY be gained through radical new designs or new performance-enhancing materials, it is likely that a company is __ in the S-curve pattern of innovation. a. at its breakeven point b. at the problem identification stage of the innovation cycle c. at the end of the innovation cycle d. at either the beginning or end of the innovation cycle e. at the end of its maturity stage

c

Which of the following approaches is aimed at changing large systems, small groups, or individuals? a. General Electric workout b. the functional approach to change c. organizational development d. results-driven change e. Lewin's change synthesis

c

A technology cycle occurs whenever there are major advances or changes in the in a field or discipline. a. human, technical, and conceptual skills needed b. structure or personnel requirements c. internal resource environment d. knowledge, tools, and techniques e. way information is integrated

d

A(n) is the individual who is formally in charge of guiding a change effort. a. change ombudsman b. staff moderator c. change mentor d. change agent e. intrapreneur

d

ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing, a supplier of agricultural equipment, wanted to change the way it supplied information it contacted ARI. ARI presented the manufacturer with a solution that allowed it to replace its paper catalogs with online catalogs. As a result, Unverferth was able to eliminate costly paper catalogs and gain the ability to provide up-to- the-minute information to its dealers. This incremental change that was aided by supplier involvement was an example of the approach to innovation. a. generational b. experiential c. milestones d. compression e. supply-side

d

Nearly all technology cycles follow the typical pattern of innovation. a. W-curve b. U-curve c. bell-shaped d. S-curve e. V-shaped

d

According to social psychologist Kurt Lewin, lead to differences in the form, quality, or condition of an organization over time, while support the status quo, or the existing state of conditions in an organization. a. compressed changes; generational changes b. generational forces; resistance forces c. generational changes; inertial changes d. change forces; inertial forces e. change forces; resistance forces

e

Downsizing has thinned the ranks of hospital personnel. Hospital employees were adamantly resisting any more change. What method could hospital administrators use to manage this resistance? a. educate employees about the need for change b. let the employees participate in implementing the change process c. provide significant managerial support d. let employees discuss and agree on who will do what after change occurs e. any or all of these

e