Chapter 11 - prep for Exam 3

Why do employees resist change?

Self-interest -- BIGGEST Resistance Lack of understanding and trust Uncertainty Different assessments and goals

Steps in the Organizational Development Process

Unfreeze (change agent), change, refreeze (change agent)

In the context of change implementation tactics, the participation approach is used when:

User has the power to resist. Participation involves users and potential resisters in designing the change. This approach is time consuming, but it pays off because users understand and become committed to the change.

Communication and education should be used to implement change when:

When a change is technical

In the context of organizational change, which of the following statements is true of disruptive innovations?

Companies that initiate a disruptive innovation typically win big; companies affected by a disruptive technology may be put out of business.

reverse innovation

Creation of innovative, low-cost products for emerging markets

Exploration

Creativity - idea incubators Bottom-up approach- internal contests (gives low level employees ability to participate)

Conflict does not occur within a healthy organization. T/F

False Organization development efforts can help resolve interpersonal conflicts, as well as conflicts that are related to growing diversity and the global nature of today's organizations.

The innovation by acquisition strategy recognizes that the cutting edge of innovation often happens in well-established and traditional companies rather than in young, small, entrepreneurial companies. T/F

False cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms. An approach to innovation in recent years has been to buy start-up companies in order to obtain the innovative products and services, and often the talent behind them as well.

Innovation Roles

Idea champions - supportive, high up New venture team - new idea - cross functional teams to leverage skill set skunkworks - new idea team new venture fund - fund providing resources

OD Approaches to Culture Change

Incremental - managers prefer, traditional model Rapid Approach - Quick change needed, and intervention model

Coordination

Internal - requires expertise from several depts (enough finances? tech?) External - Open innovation, Crowdsourcing, Innovation by acquisition

2 areas to focus on when expecting change

People - Train & develop managers, they train subs Culture - OD based on behavioral practices/sciences

innovation

The adoption of a new idea or behavior by an organization

Product change

a change in the organization's product or service outputs

Technology Change

a change in the organization's production process

In the context of the three stages of organization development (OD) for achieving behavioral and attitudinal change, which of the following occurs during the refreezing stage? a. The impact of new behaviors of individuals is evaluated and reinforced. b. Individuals experiment with new behavior to be used in the workplace. c. The change agent implements a specific plan for training managers and employees. d. Managers create the motivation for people to change their attitudes and behaviors.

a. The impact of new behaviors of individuals is evaluated and reinforced. OD experts acknowledge that changes in corporate culture and human behavior are tough to accomplish and require major effort.

In the context of organizational change, which of the following statements is true of the horizontal linkage model? a. It is not applicable in high-pressure business environments that require rapidly developing and commercializing products and services. b. People from all departments meet frequently in teams and task forces to share ideas and solve problems. c. Teams create and develop standardized products without inputs from customers and then market these products to them. d. It requires teams at the same level of a value chain to work one after the other, forming a linear chain.

b. People from all departments meet frequently in teams and task forces to share ideas and solve problems. OPEN, HONEST inside company. Look external for partnership/build competencies. Many co's today using internal and external mix. research, manufacturing, and sales and marketing departments within an organization simultaneously contribute to new products and technologies

Until recently, The Wisdom Den, a national chain of libraries, hired employees to manually manage annual subscriptions and keep a track of the books issued to customers. However, it has now replaced the old method and upgraded to a database software which is fairly simple to use. Although the implementation of the computerized system is certain to make the librarians' job easier, the change has resulted in a lot of resistance from them. Which of the following options is most likely to be the reason behind the resistance and conflict? a. Dissimilar assessments b. Uncertainty c. Different goals d. Self-interest

b. Uncertainty is a fear of the unknown. Employees do not know how a change will affect them and worry about whether they will be able to meet the demands of a new procedure or technology.

Plymouth Machinery and Tools, a hardware company, has installed a new product management software in their factory locations. The intent is to streamline the supply and distribution processes for increased efficiency and lower costs. It is meant to be used by inventory managers who work the shop floor and assembly line. However, the managers need more information to understand the change. Which of the following change implementation tactics is best suited to be used in this scenario? a. Coercion and extortion b. Communication and education c. Negotiation d. Appeasement

b. communication and education is best suited in the given scenario due to the technical nature of the product management software. Communication and education are used when solid information about the change is needed by users and others who may resist implementation.

The team in charge of innovation in a gaming software company holds a brainstorming session. The team uses Edward de Bono's Six Thinking Hats technique to promote broader thinking. Zachary, a team member, dons a figurative red hat and acts accordingly during the session. Which of the following is a correct description of Zachary's behavior? a. He provides new possibilities, alternatives, and unique solutions for better problem solving. b. He is pessimistic and points out the flaws and false assumptions in the ideas given by others. c. He gives emotional responses based on feelings, intuitions, instincts, and hunches. d. He is neutral and concerned with just the objective facts, figures, and information pertaining to the problem at hand.

c. He gives emotional responses based on feelings, intuitions, instincts, and hunches. fire/warmth: feelings, emotions, intuitions, hunches

In the context of the three stages of organization development (OD) for achieving behavioral and attitudinal change, which of the following statements is true of the unfreezing stage? a. It is the intervention stage, during which a change agent implements a specific plan for training managers and employees. b. It occurs when individuals experiment with new behavior and learn new skills for use in the workplace. c. It is often associated with diagnosis, which uses an outside expert called a change agent. d. It occurs when individuals acquire new attitudes or values and are rewarded by the organization.

c. The unfreezing stage of OD is often associated with diagnosis, which uses an outside expert called a change agent. The change agent is an OD specialist who performs a systematic diagnosis of the organization and identifies work-related problems.

Which of the following statements is true of managers of creative organizations? a. They use a top-down approach and encourage the flow of ideas from top executives to lower levels. b. They embrace success and discourage risk, experimentation, and failure. c. They involve employees in a specific type of projects so that people get used to the rhythm of routine jobs. d. They drive out the fear of making mistakes that can inhibit creative thinking.

d. they drive out the fear of making mistakes that can inhibit creative thinking. Managers in creative companies involve employees in a varied range of projects, so that people are not stuck in the rhythm of routine jobs, and they embrace risk and experimentation.

Flare, an electronics company, created a low-cost, handheld washer that could run on solar-powered battery. The product was also portable and could clean clothes with minimal water usage. This product was initially not seen as a threat by washing machine manufacturers, but it slowly attracted their customers and gained a dominant share in the market. As a result, the traditional washing machine manufacturing companies underwent huge losses and most of them went out of business. In this scenario, the handheld washer is an example of _____.

disruptive innovation

3 innovation strategies

exploration, cooperation, innovation roles

In the context of change implementation tactics, the participation approach:

helps managers understand the differences in perceptions of change among employees. Participation involves users and potential resisters in designing the change.

The horizontal linkage model is best applied to a(n):

high-pressure environment that requires speed.

In the context of change implementation tactics, the coercion approach is used:

in crisis situations when a rapid response is necessary. In most cases, this approach should not be used because employees feel like victims, are angry at change managers, and may even sabotage the changes. However, coercion may be necessary in crisis situations when a rapid response is urgent.

ambidextrous approach

incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations Flexibility and Freedom to innovate

In the context of change implementation tactics, a _______________is a disparity between existing and desired performance levels.

need for change To effectively lead change, managers help people feel the need for change rather than just giving them facts/figures.

In the context of change implementation tactics, _________ uses formal bargaining to win acceptance and approval of a desired change.

negotiation

open innovation

opening up the search for new ideas beyond the organization's boundaries and allowing innovations to easily transfer inward and outward

Organization development can help managers address problems such as merger/acquisitions, conflict management, and:

organizational decline/revitalization

disruptive innovations

starts small and ends up completely replacing existing product or service technology Compete better domestically and internationally

Organizational Development Activities

team building, survey feedback, large group intervention