MGT Chapter 11

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

The company's main product is becoming obsolete, and its last two efforts to introduce a new product have failed.

Organizational Development

In the context of organizational change, which of the following statements is true of the horizontal linkage model?

People from all departments meet frequently in teams and task forces to share ideas and solve problems.

Conflict does not occur within a healthy organization.

False

According to this force-field analysis, change occur.

will not

Which of the following behaviors shows true grit?

Staying late to finish a job

The large-group intervention organizational development model leads to

rapid transformation

Organizations often use surveys to determine how their employees feel about proposed changes before they happen. These surveys are distributed in the __________ part of the change process.

unfreezing

A company has strong ___________ if it continuously seeks new ideas from customers and from looks for ways to use new technologies.

external coordination

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

Companies that initiate disruptive innovations typically win big.

Even non-technology companies like GE and Sears are engaged in ___________ by using open source software, releasing the code and allowing anyone to develop applications with. This approach reduces costs and reduces the time it takes to bring a product to market.

open innovation

Sometimes when an organization first starts horizontal coordination efforts to promote innovation, ________________ is needed to help employees communicate with each other and constructively deal with conflict.

team building

Taco Bell and McDonald's are considering adding kiosks in restaurants for customers to place their orders. This ______________ will hopefully make the ordering process more efficient and increase accuracy.

technology change

In the traditional organizational development model, work is done

By individuals and in small groups

The chief advantage of bottom-up approaches and internal innovation contests is that both of these techniques:

Solicit new ideas from existing employees

People who have true grit

don't give up when faced with resistance.

A company has strong __________ if it continuously seeks new ideas from customers and from looks for ways to use new technologies

external coordination

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

in crisis situations when a rapid response is necessary.

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

helps managers understand the differences in perceptions of change among employees.

Groupon may have felt ___________ when it repeatedly missed goals for revenues and profits, negotiated less favorable deals with merchants, and saw a sharp drop in share price.

a need for change

Management in Life You've been meaning to start exercising for a while now, but it's hard to get the change process started. On one hand, you like sitting quietly in front of the TV, but on the other, you'd like to feel better and look better. The following diagram presents your dilemma as a force-field analysis, showing the factors for change on the left and the factors against change on the right. The numbers in parentheses represent the strength of each factor, and you can select "Total" to see a visual representation of the combined effects of change. Which of the following factors would keep a person from changing in this situation?

Fear of looking silly Not having enough time

According to this force-field analysis, change _________ occur.

will not

Management at Work Advertising agencies are having a tough time these days. On one hand, traditional advertising has a glorious past, but on the other, today's advertising agencies need to readjust their structure and strategies for a digital age. The choice between going digital and staying with a more traditional approach is shown in the following diagram as a force-field analysis, with the factors for change on the left and the factors against change on the right. The numbers in parentheses represent the strength of each factor, and you can select "Total" to see a visual representation of the combined effects of change. Which of the following factors would lead an ad agency to change in this situation?

The loss of traditional advertising outlets Customers expecting highly interactive advertising

Which of the following statements is true of managers of creative organizations?

They drive out the fear of making mistakes that can inhibit creative thinking.

To reduce the time repair technicians need to spend traveling from one customer to the next, an appliance repair company could make a _________, becoming more efficient and hopefully more profitable.

Technology change

Seth Goldman makes clear that innovation is essential for a small company to break into the packaged beverage market. In what ways can a company foster innovation? Check all that apply.

*Have employees in marketing communicate customer feedback to employees in research so that people in research work to solve customers' problems. *Establish a cross-functional team with members from research, manufacturing, and marketing departments to guide a new product's development from beginning to end. *Make sure technical employees are aware of the latest technological innovations and engage in cross-functional discussion about how they could be used to achieve competitive advantage.

According to the scenario, which of the following is the primary cause of disruption to Central Times's business environment?

Distribution of content on the Interne

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.

False

Your best friend is coming over to give you an exercise pep talk. According to force-field analysis, what's the best topic for the talk?

How much exercise you can get into very short periods of time.

Drew is Mike's Department Manager. Drew's department is taking on an assignment that requires a high level of creativity. Drew is assessing whether Mike would be a good fit for being the project lead. Which of the following traits best indicate whether Mike would be a good fit to take the lead on this highly creative project?

Mike is inventive and resourceful when faced with a challenge.

The most effective tactic for implementing change in this situation would be:

Negotiation

The most effective tactic for implementing change in this situation would be:

Participation

Last year, the CEO of Aguirre Advertising put $50,000 in the company budget to make sure that the company changes this year. According to force-field analysis, what's the best way to spend that money?

Provide employees with training in digital technologies.

The CEO of AA Ads just came to you and said, "It's time for us to go digital. What should I do first?" According to force-field analysis, you should tell the CEO to:

Restructure the agency

Dan's Driving School has traditionally been open from 3:00 PM until 10:00 PM, the prime hours for teaching high school students to drive. Now, Dan wants to keep the school open from 7:00 AM until 10:00 PM. Dan's driving instructors, many of them school teachers, are angry because the changed hours will interfere with their teaching jobs. Dan's business depends on these teachers because they are the only people patient enough to deal with inexperienced drivers. The most likely cause of resistance to change in this situation is:

Self-interest on the part of the employees

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?

The impact of new behaviors of individuals is evaluated and reinforced.

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?

Uncertainty

Managers conduct ________ when they consider the problems and opportunities that drive change and the factors that restrain change.

a force-field analysis

Managers conduct ___________ when they consider the problems and opportunities that drive change and the factors that restrain change.

a force-field analysis

The following chart gives you an overview of the tactics for overcoming resistance to change. Fill in the missing labels.

a. communication , education users need accurate information and analysis to understand change change is technical b.participation design requires information from others users have power to resist users need to feel involved-negotiation group has power over implementation group will lose out in the change c. coercion initiators clearly have power other implementation techniques have failed a crisis exists d. top management support change involves multiple departments or reallocation of resources users doubt legitimacy of change

An organization invests in ___________ to help certain employees improve a given skill or set of skills.

training

Management in Life Susie's term paper for her marketing class deals with the product development process. Susie has decided to use some of her knowledge from her management class to write the paper, and she's collected a number of examples of different innovation strategies. Which of the following examples involve a cooperation strategy?

Apple solicits iPhone applications from hundreds of different organizations. Some of the more unusual apps include one from a Massachusetts police department that identifies offenders via photos and another from iHandysoft that turns an iPhone into a carpenter's level. Hallmark Cards sponsored a "Your Greeting Card Competition" that encouraged people who don't work for the company to submit their ideas for new greeting cards to Hallmark.

You work for a company whose mobile apps help children with various kinds of learning disabilities complete schoolwork more easily. Your company markets its products primarily to parents, but it is beginning to approach school system administrators and teachers about using the software in the classroom. Currently, the research department determines what kinds of apps to make, the software development department makes the apps, and the marketing department sells the apps. To be competitive, it is necessary to constantly update products to reflect the latest learning science research and users' preferences. Your boss has read about the horizontal linkage model, shown above, and asks you how it might help the company innovate more effectively. If the company implements the horizontal linkage model, which of the following are likely to occur? Check all that apply.

Employees in marketing will pass along feedback to the software development and research departments about how enjoyable kids find the apps. Employees in research will share the latest learning science research with the marketing department so those employees can gauge its importance to customers. Cross-functional teams and/or task forces will be formed and meet regularly to coordinate activities between departments.

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?

He gives emotional responses based on feelings, intuitions, instincts, and hunches.

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

Negotiation

You work for a company whose mobile apps help children with various kinds of learning disabilities complete schoolwork more easily. Your company markets its products primarily to parents, but it is beginning to approach school system administrators and teachers about using the software in the classroom. Currently, the research department determines what kinds of apps to make, the software development department makes the apps, and the marketing department sells the apps. To be competitive, it is necessary to constantly update products to reflect the latest learning science research and users' preferences. Your boss has read about the horizontal linkage model, shown above, and asks you how it might help the company innovate more effectively. Which of the following would likely result from implementing the horizontal linkage model? Check all that apply.

New products will incorporate most or all of the relevant information, such as the latest research on dyslexia, to make them successful in the market. New ideas will be generated by lower-level employees as they interact with people in other departments and people outside the organization. New products will be brought to market more quickly and efficiently, lowering costs and making this company a market leader.

Why was the grit scale used to predict achievement among cadets at West Point and at the final round of the Scripps National Spelling Bee? These are situations that show

how an individual behaves under pressure.

Facebook purchased Oculus VR, a startup that makes the Oculus Rift headset used for virtual reality games, in the hopes of bringing that technology to many other customers. The social media giant was engaged in____________ .

innovation by aquisition

Rachel in manufacturing comes up with an idea for making a product more efficiently, but it requires that the product be designed a little differently. She meets with some engineers at her company to discuss what kind of redesign is possible. This is an example of ________

internal coordination

A company that offers $1,000 for the best idea an employee submits each quarter is running

internal innovation contest

The Google X Lab is a secretive _____________, where employees work on technologies that sound like science fiction.

skunkworks

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

users have the power to resist.

In the context of change implementation tactics, a(n) _________is a disparity between existing and desired performance levels.

Need for change

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?

Communication and education

Dan's subordinates would prefer that he was more creative and innovative when helping them with organizational issues. Which of the following may be an example of Dan displaying his creativity and innovation, as perceived by his subordinates?

Dan brings in an outside consultant to help his team implement a strategy for innovation

Employees in the accounts payable department have difficulty communicating with people who submit and approve invoices.

training

According to this force-field analysis, change occur.

will

Imagine That Toys is relatively new in the toy industry. Founded just two years ago, Imagine That had huge success with its first toy, RoboDog, a robotic dog that could respond to three voice commands. It was unlike anything on the market at the time and flew off the shelves during the holidays. As Vice President and Head of Future Play, you oversee the Research and Development team at Imagine That Toys. You have called a meeting to discuss R&D's latest research findings and proposals for new toys. Natalie Rensing, R&D Associate, reveals two significant trends in the industry that Imagine That Toys could benefit from. The first trend is the popularity of adaptive learning toys. They are becoming very popular in the industry and there are currently only two other toy companies that make adaptive learning toys, but nothing like RoboDog. Natalie suggests that it would be fairly simple to adjust RoboDog to include adaptive learning technology. RoboDog could learn progressively harder tricks once the child has taught the toy an easier trick. The second trend is the popularity of educational toys. Currently one company dominates the market share of educational technology toys with a whopping 70% of the market. However, Natalie feels confident that RoboDog could be the answer to the educational trend as well. Imagine That could adapt RoboDog to ask children about letters or simple words. Parents could attach a USB cable to RoboDog and find out about their child's learning progress on Imagine That's website. Natalie is certain that either toy would be a home run. Is the decision that Imagine That Toys is facing a corporate- or business-level strategy decision?

Business-level strategy

Imagine That's VP of Marketing, Eric Lawson, weighs in on each option. RoboDog with adaptive learning technology could really differentiate Imagine That in the industry. There are no other similar toys on the market that utilize adaptive learning and have proven sales like RoboDog. Eric suggests that Imagine That could charge a premium price for this RoboDog model and demand would still be through the roof. Eric suggests that the educational RoboDog is just as appealing. The popularity of RoboDog last holiday season lends itself to the idea of a cost leadership strategy. Imagine That can take advantage of supply-side economies of scale which allow the company to sell the new RoboDog at a lower cost. Additionally, if Imagine That could sell RoboDog with educational technology at a price lower than the competition, Eric feels confident that Imagine That could gain significant market share. What should Imagine That Toys do?

Engage in a differentiation strategy.

Management at Work Advertising agencies are having a tough time these days. On one hand, traditional advertising has a glorious past, but on the other, today's advertising agencies need to readjust their structure and strategies for a digital age. The choice between going digital and staying with a more traditional approach is shown in the following diagram as a force-field analysis, with the factors for change on the left and the factors against change on the right. The numbers in parentheses represent the strength of each factor, and you can select "Total" to see a visual representation of the combined effects of change. Which of the following factors would keep an ad agency from changing in this situation?

High commissions associated with traditional advertising. Memories of past success.

Management in Life Ivan's term paper for his marketing class deals with the product development process. Ivan has decided to use some of his knowledge from his management class to write the paper, and he's collected a number of examples of different innovation strategies. Which of the following examples involve an innovation roles strategy?

In 1943, a small team of Lockheed Martin engineers designed and built a new fighter jet in only 143 days. One of the rules for the team encouraged them to allow vendors to do basic inspections, thus allowing the team (known as the SKUNK WORKS) to spend more of their time on creating the product. Nissan's CEO, Carlos Ghosn, stubbornly insisted on investing in an all-electric car, even when his 350,000 employees were against it. The result was the Leaf, the first mass-market, zero-emission car.

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?

It is often associated with diagnosis, which uses an outside expert called a change agent.

RAG Janitorial has been in business for 30 years. Recently, the employees at RAG proposed a new team-based structure for the organization. Cleaning crews would be created by region, and each crew would have a floor specialist, an upholstery specialist, a wood specialist, and a general helper. The employees believe that work will be done faster and more efficiently under this structure. Management is opposed because they believe that the new structure will require more employees and raise costs. The most likely cause of resistance to change in this situation is:

Managers and employees having different goals

You have just started a new web-based business, and now you realize that if you want your company to succeed, you will have to create at least 10 new products over the next six months. Which of the following organizational characteristics would not help the company to be more creative? Check all that apply.

Run the company like a tight ship. Create rules about how much creativity is expected and ensure that people follow them. Set up a reward system that encourages success. Pay people only for doing things that make the company more profitable. Hire only recognized experts, and don't hire anyone who is eccentric.

As a new manager, Sasha has been described as creatively innovative. Which of the following behaviors support Sasha as being a creatively innovative manager?

Sasha utilizes resources outside of her department to aid in assisting her department's goals.

To reduce the time repair technicians need to spend traveling from one customer to the next, an appliance repair company could make a __________________ , becoming more efficient and hopefully more profitable.

Technology Change

Imagine That Toys moved forward using a differentiation strategy and created the adaptive learning RoboDog. Sales for RoboDog were high last holiday season and the popularity of adaptive learning toys continues to rise. There is surprisingly little competition from new companies and the two current competitors that make adaptive learning toys have only made small improvements to existing products. Imagine That, focused on the upcoming holiday season, has added RoboCat and RoboDino to its adaptive learning product line. Imagine That has ramped up production to meet anticipated holiday demand. Alex Jorgenson, the purchasing manager, approaches you about a potential problem with a supplier. "I contacted Verotech to purchase additional microchips for our next production batch and they informed me that the price on the microchips increased—by more than double," he tells you. "What should I do? I'm not sure we have enough time to find a new supplier without disrupting production." What do you tell Alex?

Tell Alex to place the order. Imagine That cannot afford to halt production this close to the holiday season. Imagine That can work on finding a new supplier after the holiday rush. In the meantime, Imagine That will maintain its profits by raising the price of RoboDog, RoboCat, and RoboDino and essentially passing the microchip price increase on to the consumer. The price increase will be minimal thanks to Imagine That's large scale production and the consumer won't even notice.

One change that Seth mentions is the PlantBottle. Another is using grape juice instead of sugar to sweeten drinks. What is true about these changes?

The PlantBottle is a potentially disruptive innovation; grape juice-sweetened drinks are a product change

Engaging in innovation requires a looser structure, while implementing new ideas requires a more rigid structure. Organizations can meet both needs by using ____________.

an ambidextrous approach

Managers know the organization is in the ___________ stage of change when the impact of changed behavior on the organization's performance can be documented and employees can be rewarded for the behavior.

refreezing