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An important component of dealing with change is to allow grieving over the loss of old ways
People are generally comfortable with and embrace change, even change in apparently major matters
According to Jim Collins, researcher of enduring great companies, hubris and denial are among the stages of institutional decline.
The marketplace is becoming more homogeneous and moving toward more similar products.
Demassification refers to a trend of customer groups being segmented into smaller, specialized groups responding to narrowly targeted messages.
One of the strengths of Virgin Group Ltd. is its ability to enter new businesses quickly.
Successful large companies are more able than other firms to survive and prosper in an environment of radically innovative change.
China and India are changing the way American companies work, in part, through substantial labor savings
Information is rapidly becoming the new competitive advantage.
The two types of change are practical and theoretical.
Reactive change is carefully thought out.
Proactive change involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities.
BP handled the 2010 oil spill crisis in the Gulf of Mexico in a proactive manner.
Hasbro's move to create a version of its Monopoly game for iPad for technology-obsessed children is an example of proactive change
Coleman Natural Foods began selling natural beef back when most shoppers were unaware of the term. This is an example of proactive change.
The need for change comes solely from outside the organization.
Employee problems are one type of outside force for change in the organization.
Managers' behavior is one type of inside force for change in the organization.
Secondhand shops suffering from a recession-induced decline in thrift store donations is an example of an outside force for organizational change.
While customers may act as a force for change, shareholders support stability.
Job dissatisfaction within an organization can be an indicator that change is needed.
Putting an end to servant leadership is a change that is likely to improve manager-employee relationships.
The four areas in which change is most apt to be needed are people, technology, structure, and strategy.
People changes in an organization are not required until that organization reaches about 20 people in size, when the level of specialization reaches a critical point.
In the context of change, technology refers to computer technology used to gain a competitive advantage.
The recent structural trend is toward a taller organizational hierarchy.
Sabotage can be a form of resistance to change in the workplace.
Mistrust between change agents and employees can cause failure of well-conceived changes
Innovative change is the least threatening type of change and is therefore least likely to create resistance.
Adaptive change involves introducing a practice that is new to an industry.
Innovative change is the introduction of a practice that is new to the organization.
The most complex, costly, and uncertain kind of change is known as radically innovative change.
Changes in power structures that occur with administrative and technological changes are generally embraced by employees because of the new opportunities they present.
One of the reasons employees resist change is fear of the unknown.
According to Lewin, for unfreezing to take place, people need to become dissatisfied with the old way of doing things.
In the refreezing stage of change of Lewin's change model, employees need to be given new information, perspectives, and models for behavior.
Benchmarking is a technique that can be used in the refreezing stage of Lewin's change model.
During the refreezing stage of Lewin's change model, managers should model the change themselves, as well as coach employees and reinforce the desired behaviors.
Kotter's change step of anchoring new approaches in the culture corresponds to refreezing in Lewin's model.
Kotter's research reveals that management of organizational change is more essential than leadership throughout it.
OD focuses specifically on the technology aspects of change
A change agent is a behavioral sciences consultant who helps organizations deal with old problems in new ways.
One of the primary situations in which OD is used is when adapting to mergers.
Even when it comes to technology-induced change, OD can be helped by opening communication and dealing with stress.
The three steps of the OD process are diagnosis, experimentation, and adaptation.
False OD managers and consultants follow a medical-like model
The first step of the OD process is evaluation, which uses employee surveys, interviews, and observation to ascertain attitudes and problem areas.
In the OD process, feedback is used to refine the diagnosis.
Intervention is the treatment phase of OD in which problems are corrected.
Hard data about absenteeism, turnover, and profitability are used in the intervention stage of the OD process.
Patagonia was satisfied with its OD intervention to become greener.
In OD, combined interventions have been found to work better than single interventions
An OD intervention that worked in the United States is likely to work equally well around the world because the practices are very fundamental to human nature.
Innovation differs from creativity or invention in that it requires useful application.
Innovation most often happens in a "eureka" moment of epiphany.
Having employees that experiment may limit an organization's ability to learn from failure.
The self-serving bias can lessen an employee's ability to learn from failure.
According to Scott Berkun, the search for wealth is one of six seeds of innovation.
A product innovation is a change in the way a product or service is conceived, manufactured, or disseminated.
Radical innovation is the creation of products, services, or technologies that replace existing ones.
In 1961, Procter & Gamble introduced the first affordable, readily-available disposable diaper called Pampers. At that time, Pampers were an example of a radical innovation.
Conventional electric vehicle batteries use a liquid electrolyte but an Orlando start-up is developing a solid-state lithium-ion battery with improved stability and lifetime. This is an example of incremental innovation.
Chicago Cutlery reinstituted a sales contest with the same rules as the one that it used five years ago. This is an example of a process innovation.
Entrepreneurs tend to be tolerant of ambiguity.
Most organizations experience innovation as a matter of course; it happens naturally as part of everyday business.
The three most important ways to encourage innovation are by providing the right organizational culture, a team-based structure, and creative talent.
An organizational culture that celebrates failure helps foster innovation
Innovation can be fostered by withholding raises or promotions from those whose attempts to innovate are not successful.
One step for fostering innovation is gaining allies by communicating your vision.
The most effective way to handle rewards for innovation is to provide them at the end of a successful project.
Which of the following is an effective way to deal with change and innovation?
Have the courage to follow your ideas.
According to Jim Collins, undisciplined pursuit of more and grasping for salvation are stages of organizational
Which of the following is not a supertrend shaping the future of business?
Information becoming a competitive advantage.
A change that is made in response to arising problems or opportunities is called
reactive change.
Which of the following is an example of a proactive change?
Ciara explores improvements in bonus structures with her staff and begins to implement them despite the fact that her employees are generally content.
Walmart's implementation of RFID, a type of technology that allows it to improve inventory tracking, is an example of a(n) ______ change.
Which of the following is an example of a force for change originating outside the organization?
Social pressures
The increasing diversity of the American workforce is an example of a(n) ______ force for change.
The invention of a machine to make plastic corks for wine bottles has severely affected companies that produce traditional cork. This is an example of a(n) ______ force for change.
Arizona Pottery is having a difficult time finding inexpensive labor, which it attributes to an unfriendly climate toward Hispanics since passage of tough illegal immigration legislation in that state. This is an example of a(n) ______ force for change.
social or political
Inside forces for change include which of the following?
Low productivity
During the recession and its accompanying high levels of unemployment, Giordano Construction has had its choice of employees to support its growth. This is an example of a(n) ______ force for change.
Recently many older workers who had planned to retire soon decided to keep working longer. This is an example of a(n) ______ force for change.
social or political
Which of the following is not an inside force that indicates organizational change might be needed?
Increased competition
Nonmanagerial employees at Kennedy Steel belong to a union. The union has come close to striking several times over the years, and labor negotiations have recently been very tense. Kennedy likely needs to focus on changing
forces originating inside the organization.
The Human Resources manager at the Apex Golf and Tennis Club has just calculated the employee absenteeism rate for 2012, and it is 25% higher than it was in 2010 and 2011. He should
address job design and ways to deal with work overload.
Which of the following is not an area in which change is often needed?
Employees might feel they are being underpaid for what they do, even if pay and benefits are superior to the competition. Here, managers must change
Maid to Clean is considering implementing a system that will pay its cleaning workers based on the number of completed residential jobs, coupled with satisfactory ratings on random inspections to ensure quality. Managers believe that this will reduce labor costs. Maid to Clean is focusing on changing employee
Saitou Insurance is about to install a new computer system that will change the way claims adjusters settle claims. Adjusters will be able to do the adjustment and issue the check right at the scene of the accident. Saitou most likely needs to focus on changing employee
Mattress Emporium has had several incidents lately in which its drivers became lost when attempting deliveries. The drivers have no GPS or other access to computerized information and rely on the customers themselves for directions. Mattress Emporium probably needs to change its
Managers at Lucky Peach magazine are in the process of cross training entry-level employees to be able to take phone orders or answer customer questions, and to process orders in overflow situations. The company is changing its
Frisco Recreational Vehicles recently instituted cross-functional teams to develop new products. Team members are spread across the country, so it is expensive and time consuming for people to travel to headquarters to meet. The company would benefit most from a change in ______ involving
technology; teams meeting "virtually" through electronic media.
The record industry has been forced into a ______ change because of the prevalence and ease of illegally downloading music.
________ is an emotional/behavioral response to real or imagined threats to an established work routine.
Resistance to change
Which of the following is not an interacting factor that affects the level of resistance to change?
Longevity of the change agent.
The reintroduction of a familiar practice within the same organization is called a(n)
adaptive change.
Employees are likely to see an adaptive change as
least threatening.
At Hartford Toy Depot, employees know that during the month of December they are generally required to work different schedules, often with some overtime, to support the holiday shopping season. This is an example of a(n) ______ change.
Peter, the owner and lead accountant at a tax preparation firm, is changing the work schedule of his long-term employees for the months of March and April, the company's busiest time. He is requiring work on weekends for everyone, using the same basic schedule as last year. Peter should expect that his employees will be
hardly upset or not upset at all.
A change that represents the introduction of a new practice to an organization but that is not new to the industry is called a(n)
innovative change.
An innovative change involves ______ complexity, cost, and uncertainty.
Great Plains Credit Union has decided that tellers must rotate through a new weekend shift on Saturday afternoons since several of its competitors in the area have recently begun to offer these hours to customers. This is a(n) ______ change.
Introducing a practice that is new to the industry is called a(n) ______ change.
radically innovative
Evanston Cable Television has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require them to have several technicians on call. Evanston hopes this practice will give them an advantage over the competition, none of whom have adopted such a practice. It is introducing a(n) ______ change.
radically innovative
Which of the following is not a leading reason that employees resist change?
Lack of personal ethics
Lewin's change model consists of
three stages: unfreezing, changing, and refreezing.
During Lewin's changing stage, managers should
give employees new models for behavior.
During Lewin's refreezing stage, managers should
reinforce the desired change in the employees.
The process by which a company compares its performance with that of high-performing organizations is called
Creighton Bicycles and Repair conducted a survey and discovered that among customers who had tried both bike shops, its successful cross-town competition was preferred about 80% of the time. The most frequently cited reason was customer service. This information would be most helpful to introduce to employees during which stage of Lewin's change model?
Kotter proposed which of the following for organization change?
Eight steps for leading organizational change.
The set of techniques used for implementing planned change to make people and organizations more effective is called
organizational development.
Organizational development is often put into practice by a
change agent.
Which of the following is not one of the primary uses of OD?
Improving recruitment
In which of the following situations would OD techniques be the most helpful?
Assisting employees in dealing with stressful situations.
Caleb, an OD consultant, is designing a survey of employee attitudes to be given to workers at Tandem Investments. Caleb is conducting the ______ stage of OD.
The question "What shall we do about the problem?" would most likely be asked during the ______ stage of OD.
Tirzah, an OD consultant, is working with members of with a cross-functional team to help them build cohesiveness and practice skills to function better as a team. Tirzah is conducting the ______ stage of OD.
Marc, an OD consultant, is visiting Cassidy Engineering a year after he assisted them in making changes to their employee incentive plan. Now he is comparing sales and turnover data from the last three years to the current year. Marc is in the ______ stage of OD.
Which of the following circumstances is likely to increase the success of OD?
Support of top managers.
When it comes to failure in the innovation process, Procter & Gamble CEO A. G. Lafley suggests that the key is to
fail early, fail cheaply, and don't make the same mistake twice.
Which of the following is the factor that most reduces an organization's ability to learn from failure?
Employees that blame others for failure.
Which of the following is not one of Scott Berkun's seeds of innovation for organizations?
A technological innovation that improves the speed of a computer's microprocessor would be considered a(n) ______ innovation.
A(n) ______ innovation is a change in the way a product or service is conceived, manufactured, or disseminated.
A managerial innovation that improves the efficiency of a company's cross-functional teams would be considered a(n) ______ innovation.
The management department at a local university began posting all assignments and other class materials to a course management website instead of creating a packet for students to purchase each term. This is a(n) ______ innovation.
The creation of products, services, or technologies that modify those that already exist is called ______ innovation.
Researchers working on hydrogen fuel cells hope that this could be a(n) ______ innovation, leading to a clean, renewable energy source, and reducing dependence on depleting fossil fuels with their adverse impact on the global environment.
Hollywood Hair recently introduced a new acai berry moisture shampoo. Wenling, director of new product development, has just reviewed the dismal results. It appears that her team did adequate research on the product's acceptance by consumers prior to its introduction and is confused by the outcome. Wenling should
reward her team for their effort.
Which of the following is not a way to encourage innovation?
Withholding raises and promotions when innovation attempts don't work out.
Once you have been able to gain allies and overcome employee resistance, excellent ______ will be a key to fostering innovation.
Which of the following sequences best describes how a manager can foster innovation in an organization?
Recognize problems, gain allies, overcome resistance, execute well