org change ch. 3

type ____ perceptual error occurs when the environment is objectively stable, but managers perceive it as turbulent and take unnecessary actions

1

5 forces for change

1. adaptability 2. cost containment 3. impatient capital markets 4. control 5. competitive advantage

as failures of organizational change appear to be widespread and widely acknowledged, what drives managers to do it? 2 perspectives/answers:

1. economic perspective 2. organizational learning perspective

identify the 6 external environmental pressures that can lead to organizational change.

1. fashion 2. demography 3. mandate 4. reputation 5. hypercompetition 6. geopolitics

5 internal organizational change drivers

1. growth 2. integration and collaboration 3. corporate identity 4. a new CEO 5. power and politics

5 forces for stability

1. institutionalism 2. transaction costs 3. sustained advantage 4. organizational social capital 5. predictability and uncertainty reduction

4 sets of factors that affect whether or not environmental pressures will lead to innovation and change when an org is faced with decline:

1. institutionalized mission 2. power structures 3. resource commitment 4. explanations of the problem

(John kotter) 4 sets of forces translating global trends and developments into org adaptations and changes:

1. new technologies 2. the expansion of international trade 3. mature markets 4. changing world order

David buchanan argues that there are two types of change agendas:

1. progressive (routine) 2. defensive (post-incident)

Edmondson argues that for effective post-incident change, the organization needs a psychologically safe environment in which failures can be discussed openly. this involves 5 steps:

1. shared understanding go finds of failures that can occur in a particular context and why openness is important for learning 2. messengers who report failures should be praised 3. known problems must be acknowledged and mistakes admitted openly and honestly 4. management must invite participation to defuse resistance and defensiveness, seeking ideas and creating ways for staff to analyze failures and explore remedies 5. there must be clarity concerning actions that are blameworthy so boundaries are clear and people are accountable

Julian Birkinshaw suggested that management should follow 4 steps before adopting another management fad:

1. wait 2. identify the essence/underlying logic of the idea 3. look for results 4. experiment/set up trials

type _____ perceptual error occurs when managers threaten the survival of their firms by failing to act bc they perceive environment as stable when its turbulent

2

The view that "the outside world" is a construction based on individual perceptions is referred to as the _____. A. "enacted environment" perspective B. behaviorist perspective C. objective reality perspective D. rehabilitative perspective

A. "enacted environment" perspective

_____ strategies are designed to maintain organizational efficiency by avoiding change, by shielding an organization from external pressures. A. Buffering B. Bridging C. Binding D. Adapting

A. Buffering

_____ pressures include government mandates such as new laws and policies. A. Formal coercive B. Informal coercive C. Hypercompetitive D. Demographic

A. Formal coercive

Which of the following is a force for stability? A. Institutionalism B. Control C. Competitive advantage D. Adaptability

A. Institutionalism

_____ occurs when organizations imitate the structures and practices of others, but not necessarily in the same sector, and usually those that they consider to be legitimate and successful. A. Mimetic isomorphism B. Coercive isomorphism C. Simulated change D. Chronic adhesion

A. Mimetic isomorphism

Which of the following is most likely an advantage that new chief executive officers (CEOs) have over their predecessors? A. They create energy for change within an organization. B. They strictly adhere to past organizational practices. C. They tackle customer problems with credibility because of their associations with previous problems. D. They focus on an organization's "dogs" rather than its unresolved "cash cows."

A. They create energy for change within an organization.

Hypercompetition forces companies to: A. deliver goods and services more quickly and more flexibly. B. take on activities similar to other organizations due to government mandate. C. rectify the poor or negative images of an organization. D. commit to organizational changes such as employee empowerment.

A. deliver goods and services more quickly and more flexibly.

According to the _____ perspective of organizational change, firm survival depends on satisfying shareholders. A. economic B. organizational learning C. political D. control

A. economic

During the 1990s, problems cited against Walt Disney Company's board of directors included all of the following EXCEPT: A. excessive ownership of the company's stock. B. close ties between the chief executive and directors. C. lack of management experience. D. minimal oversight of the company.

A. excessive ownership of the company's stock.

When managers respond to the latest management fad in an attempt to be seen as professional and progressive, the organizational change is a response to _____. A. fashion B. demography C. geopolitics D. hypercompetition

A. fashion

According to David Buchanan, post-incident change contexts _____. A. have defensive agendas B. have progressive agendas C. are exciting for change agents D. are aimed at taking risks

A. have defensive agendas

According to Boyd et al., a(n) _____ occurs when the environment is (objectively) stable, but managers perceive it as turbulent and take (unnecessary) actions. A. type 1 error B. type 2 error C. institutional error D. transactional error

A. type 1 error

According to Boyd et al., _____ occurs when managers threaten the survival of their firms by failing to act because they perceive the environment as stable when it is (objectively) turbulent. A. A type 1 error B. A type 2 error C. A type 3 error D. A type 4 error

B. A type 2 error

_____ strategies are designed to maintain organizational effectiveness by adapting to external changes. A. Buffering B. Bridging C. Shielding D. Shaping

B. Bridging

_____ arise when interdependent organizations persuade each other to behave in particular ways, and to collude with each other in certain actions. A. Formal coercive pressures B. Informal coercive pressures C. Geopolitical pressures D. Demographic pressures

B. Informal coercive pressures

According to Brian Toft and Simon Reynolds, which of the following statements is true of passive learning? A. It refers to implementing changes. B. It refers to identifying lessons. C. It is overlooked in many organizations. D. It is viewed as difficult to achieve in many organizations.

B. It refers to identifying lessons.

During the 1990s, which of the following was cited by BusinessWeek as having one of the worst corporate boards in the United States? A. Home Depot Inc. B. Walt Disney Co. C. Campbell Soup Co. D. General Electric Co.

B. Walt Disney Co.

ChevronTexaco and Coca-Cola were under court orders to improve their record on diversity management. This is an example of change as a response to _____. A. fashion B. external mandate C. geopolitics D. hypercompetition

B. external mandate

According to the _____ perspective of organizational change, organizations and human systems are complex and evolving and cannot be reduced to a single objective of maximizing shareholder value. A. economic B. organizational learning C. political D. control

B. organizational learning

Which of the following is a force for change? A. Institutionalism B. Transaction costs C. Adaptability D. Sustained advantage

C. Adaptability

Which of the following is NOT an advantage that new chief executive officers (CEOs) have over their predecessors? A. They can create energy for change within an organization. B. They can focus on an organization's unresolved "sacred cows." C. They adhere to past organizational practices. D. They handle customer-related problems with credibility as they have no association with previous customer relationship issues.

C. They adhere to past organizational practices.

When change is forced on organizations through formally mandated legislation and regulation, it is known as _____. A. mimetic isomorphism B. dichotic isomorphism C. coercive isomorphism D. flexible isomorphism

C. coercive isomorphism

The U.S. Mint faced a dilemma about whether it should produce coins as a passive organization following the dictates of the Federal Reserve and Congress or act like a market-based organization. This is an example of a(n): A. growth crisis. B. political crisis. C. identity crisis. D. management crisis.

C. identity crisis.

The tussle between Philip Purcell and John Mack for the chief executive's position at Morgan Stanley after the company was bought by Dean Witter and Discover Financial Services Inc. in 1997 is an example of _____. A. geopolitical pressures B. economic pressures C. power and political pressures D. reputational pressures

C. power and political pressures

Which of the following is an example of change as a response to geopolitics? A. Change as a response to the latest management fad B. Change as a response to the preferences of Generation C C. Change as a response to formally mandated legislation and regulation D. Change as a response to global warming

D. Change as a response to global warming

Which of the following is NOT a force for stability? A. Predictability and uncertainty reduction B. Organizational social capital C. Sustained advantage D. Competitive advantage

D. Competitive advantage

Which of the following is NOT one of the global environmental forces for change that was identified by John Kotter? A. New technologies B. The expansion of international trade C. Maturing markets D. The end of the World War I

D. The end of the World War I

Which of the following does NOT exemplify geopolitical pressures that impact organizations? A. The terrorist attacks on New York on September 11, 2001 B. The outbreak of severe acute respiratory syndrome (SARS) C. The political instability in Egypt since 2011 D. The latest management fad, such as big data and data analytics

D. The latest management fad, such as big data and data analytics

Which of the following is NOT a force for change? A. Competitive advantage B. Cost containment C. Impatient capital markets D. Transaction costs

D. Transaction costs

The changes that organizations made after the terrorist attacks on New York on September 11, 2001 and the outbreak of severe acute respiratory syndrome (SARS) were a response to _____. A. fashion B. hypercompetition C. demographics D. geopolitics

D. geopolitics

Internal organizational change drivers include all of the following EXCEPT: A. growth. B. integration and collaboration. C. corporate identity. D. social identity.

D. social identity.

(T/F) A Type 1 error occurs when managers threaten the survival of their firms by failing to act because they perceive their environment as stable when it is turbulent.

FALSE

(T/F) According to Amy Edmondson, for effective post-incident change, those who report failures—the "messengers"—should be penalized, rather than praised.

FALSE

(T/F) After being accused of having one of the worst corporate boards in the United States during the 1990s, the Walt Disney Company remains reluctant to incorporate any form of change into the board structure or practices

FALSE

(T/F) Inside out perspective means assessing how climate change will affect how the organization operates.

FALSE

(T/F) Reputational pressures always develop slowly over time.

FALSE

(T/F)Generally, all managers respond to external pressures for change in the same way

FALSE

(T/F) "Trapped by success" is another reason why organizations can fail to respond to pressures for change

TRUE

(T/F) Adaptability, impatient capital markets, and competitive advantage are all forces for organizational change.

TRUE

(T/F) Formal coercive pressure occurs when organizations are forced to change to meet new requirements relating to, for example, pollution, taxation, or affirmative action.

TRUE

(T/F) John Kotter argued that four sets of forces were translating global trends and developments into organizational adaptations and changes: new technologies, the expansion of international trade, maturing markets, and the end of the "cold war."

TRUE

(T/F) Organizational change can occur as a simple response to the latest management fad or fashion.

TRUE

identify the potential change drivers from within an org. (check all) a. economic and trading conditions b. power and politics c. corporate identity d. cognitive construction

b. power and politics c. corporate identity

the generation born in the period between 1943 to 1960 is _____________

baby boomers

___________ strategies are designed to maintain the effectiveness of an org by adjusting to external changes.

bridging

2 strategies for managing uncertainty

bridging buffering

___________ strategies are designed to retain the efficiency of an org by preventing change and protecting the org from external pressures.

buffering

smoothing the effects of external shocks through forecasting, planning, and stockpiling

buffering

in an organization that is faced with decline, what happens when resources are already committed? a. power is concentrated. b. power is diffused. c. innovation is restrained. d. innovation is encouraged.

c. innovation is restrained.

which of the following is an external pressure for organizational change? a. head office and factory relocation b. low performance and morale c. innovative technologies and materials d. inadequate skills and knowledge base

c. innovative technologies and materials

according to Neo-institutional theorists, ____________ _______________ occurs when change is forced on organizations thru formally mandated legislation and regulation.

coercive isomorphism

where stakeholders have clear expectations of how an org will pursue its goals, the org's capacity to innovate will be _______________

constrained

_______________ is a collective representation of a firm's past actions and results that describes the firm's ability to deliver valued outcomes to multiple stakeholders; an intangible but important corporate asset that is positively correlated with org performance

corporate reputation

____________ change agendas follow extreme events and aim to prevent things from happening - control/minimize risk, unnapealing

defensive

the ______________ perspective of organizational change is aligned with management as control images & assumptions.

economic

the ______________ perspective of organizational change says that managers introduce change to improve org performance in terms of profitability and higher company share prices because firm survival depends on satisfying shareholders.

economic

coercive isomorphism is associated with which of the six environmental pressures for change?

external mandates

mimetic isomorphism is associated with which of the six environmental pressures for change?

fashion

_________________ include government mandates such as new laws and policies that force orgs to change in order to meet new requirements.

formal coercive pressures

the generation born since 1990 is _____________

generation C

the generation born in the period between 1961 to 1981 is _____________

generation X

the generation born since 1981 is _____________

generation Y

terms such as disruptive innovation, high velocity, post bureaucratic, and chaotic describe the _______________ environment, which some commentators associate with a postmodern organizational paradigm.

hyper competitive

_________________ arise when interdependent organizations persuade (perhaps force) each other to behave in particular ways, and to collude with each other in certain actions. not legally required, but resisting these pressures means breaching strong cultural norms. conformity may not be mandatory, but it is expected.

informal coercive pressures

__________ means understanding the impact that the organization has on its environment

inside out

__________-based gaps may suggest new, flexible ways of working, but because current capabilities and practices remain successful, commitment to change may be lacking.

opportunity

________________ theory argues that environmental pressures do lead to change, as managers learn from problems and try to close the gap between performance and aspirations.

organizational learning

the ______________ perspective of organizational change is aligned with management as shaping images & assumptions.

organizational learning

the ______________ perspective of organizational change says that change is related to the need to increase an org's adaptive capacity - because how to increase shareholder value, and the knowledge underpinning that goal, are likely to change over time. change is explained by the desire to build capacity to respond to, and shape, external pressures and demands.

organizational learning

you are facing hyper competition when...

organizations from other sectors start selling products and services that compete with yours.

________ means assessing how climate change will affect how the organization operates

outside in

________________ change agendas are developmental - restructuring, quality, process redesign, innovation, new technology and working practices - aimed at cost reduction, quality, time to market, agility, customer service, growth market share, and profitability, appealing

progressive

__________-based gaps can trigger rigid behavioral responses, restricting information flow, constraining decisions, and emphasizing control over existing resources.

threat

________________ theory argues that pressures inhibit change, as management decisions become constrained when faced with threatening problems.

threat-rigidity theory

(T/F) a consequence of the silver tsunami is that organizations will need to fill gaps caused by boomers' retirement as they take their knowledge and experience with them.

true

(T/F) coercive isomorphism can be either formal or informal pressures.

true

(T/F) relaxed or ill-defined stakeholder expectations can act as a catalyst for innovation by giving the org more flexibility to respond to the problems it faces.

true

(T/F) when power is concentrated in an organization, the capacity for making decisions increases and allocates resources to implement change.

true

(T/F) when power is diffuse in an organization, the capacity for innovation is constrained.

true

the generation born in the period between 1925 to 1942 is _____________

veterans