Chapter 11—Managing Change and Innovation
TRUE/FALSE
1. Organizational change refers to the adoption of a new idea or behavior by an organization.
2. Productive innovation refers to innovations in products, services, or processes that radically change an
industry’s rules of the game for producers and consumers.
3. If organizations don’t successfully change and innovate, they die.
4. An ambidextrous approach means incorporating structures and processes that are appropriate for both
the creative impulse and for the systematic implementation of innovations.
5. Technology change involves the hierarchy of authority, goals, administrative procedures, and
managerial systems.
6. A product change is a change in the organization’s product or service outputs.
7. Exploration is the aspect of product and technology innovation that involves creating mechanisms to
make sure new ideas are carried forward, accepted, and implemented.
8. Creativity is the generation of novel ideas that may meet perceived needs or respond to opportunities
for the organization.
9. Confrontation, authoritarianism, and disciplined exploration are characteristics of the creative
individuals.
10. Research shows that managers in creative companies avoid risk and experimentation.
11. The acceptance of mistakes, the freedom to discuss ideas, and the assignment of nonspecialists to
problems are characteristics of creative organizations or departments.
12. An idea incubator is in-house program that provides a safe harbor where ideas from employees
throughout the organization can be developed without interference from company bureaucracy or
politics.
13. The innovation strategy for changing products and technologies that involves designing the
organization to encourage creativity and the initiation of new ideas is known as cooperation.
14. The innovation strategy for changing products and technologies that involves creating conditions and
systems to facilitate internal and external coordination and knowledge sharing is known as exploration.
15. The horizontal linkage model is increasingly important in high pressure business environments that
require rapidly developing and commercializing products and services.
16. An approach to innovation that emphasizes shared development of innovations among several
departments is referred to as the horizontal linkage model.
17. A person who sees the need for and champions productive change within the organization is called an
idea champion.
18. Centralization and short time horizon are primarily used by creative organizations.
19. Skunkworks are a separate small, informal, highly autonomous, and often secretive group that focuses
on breakthrough ideas for the business.
20. A unit that is separate from the mainstream of the organization and is responsible for developing and
initiating innovations is called a new-venture team.
21. People change starts with training everyone in the organization.
22. Culture change pertains to the whole organization.
23. Culture change refers to a major shift in the norms, values, attitudes, and mindset of the entire
organization.
24. Two specific tools that can smooth the change process include organizational development and
programs for training and development.
25. Training is one of the most frequently used approaches to changing people’s mindsets.
26. Organizational development involves the application of behavioral science techniques to improve an
organization’s effectiveness and success.
27. Mergers/acquisitions, organizational decline, and conflict management are the three types of current
problems that organizational development managers face.
28. Three of the most popular and effective OD activities are team building, survey feedback, and
large-group interventions.
29. The idea in the large group intervention is to get a sample of people who may have an interest in the
organization, gather perspectives from the selected parts of the system, and allow the sample to create
a collective future.
30. Survey feedback enhances the cohesiveness and success of organizational groups and teams.
31. Refreezing is the reinforcement stage of organization development in which individuals acquire a
desired new skill or attitude and are rewarded for it by the organization.
32. The three distinct steps for achieving behavioral and attitudinal change with organizational
development are planning, changing,and stabilizing.
33. A change agent is an OD specialist who contracts with an organization to facilitate change.
34. In the unfreezing step, participants must be made aware of problems and be willing to change.
35. After the need for change has been perceived, the next part of the change process is implementing
change.
36. Managers and employees that are most involved in an innovation or potential change are often those
that seem to prefer the status quo.
37. Reasons employees resist change include self-interest, lack of understanding and trust, uncertainty, and
different assessments and goals.
38. Lack of understanding or trust are the most common reasons for resistance to change.
39. Change, according to Kurt Lewin, is a result of the competition between forced and unforced fields.
40. Large cost savings from reduced inventories and labor savings by needing fewer workers to handle
inventory can be driving forces associated with the implementation of just–in-time inventory control
systems.
41. The communication and education approach for overcoming resistance to change should be used when
the change is technical and the users need accurate information and analysis to understand change.
42. Two possible tactics for overcoming resistance to change are coercion and negotiation.
43. When a change involves multiple departments, top management support is especially important.
44. The disparity between existing and desired performance levels is the need for change.
MULTIPLE CHOICE
1. The adoption of a new idea or behavior by an organization is known as organizational _____.
a.
change.
b.
development.
c.
structure.
d.
intervention.
e.
responsibility.
2. An example of an organizational would be:
a.
the switch to a new production method.
b.
the decision to offer a new product line.
c.
the introductions of a new pay for performance system.
d.
all of these.
e.
the switch to a new production method or the decision to offer a new product line.
3. For the compact disc industry, the advent of MP3 technology can best be described as what type of
innovation?
a.
Disruptive innovation
b.
Service innovation
c.
Productive innovation
d.
Restructuring innovation
e.
Reverse innovation
4. _____ refers to innovations in products, services, or processes that radically change an industry’s
rules of the game for producers and consumers.
a.
Restructuring innovation
b.
Trickle up innovation
c.
Productive innovation
d.
Disruptive innovation
e.
Reverse innovation
5. Successful change requires that organizations be capable of both creating and implementing ideas,
which means the organization must learn to be _____.
a.
cordial
b.
rightsized
c.
ambidextrous
d.
compliant
e.
intra-focused
6. The generation of novel ideas that may meet perceived needs or respond to opportunities for the
organization is called _____.
a.
a search initiative
b.
creativity
c.
an ideal champion
d.
a great idea
e.
strategic analysis
7. Which of the following refers to the generation of novel solutions to perceived problems?
a.
Problem solving
b.
Organizational development
c.
Creativity
d.
Brainstorming
e.
Perceived solution
8. The innovation strategy for changing products and technologies that involves designing the
organization to encourage creativity and the initiation of new ideas is known as _____.
a.
exploration
b.
cooperation
c.
entrepreneurship
d.
idea incubator
e.
horizontal linkage
9. _____ change is a change in the organization’s product or service outputs.
a.
Technology
b.
Product
c.
Entrepreneurship
d.
Creative
e.
Incremental
10. Which of the following is a change in the manner in which an organization does its work?
a.
Technology
b.
Product
c.
Entrepreneurship
d.
Creativity
e.
Incremental
11. A _____ change is related to the organization production process.
a.
new product
b.
technological
c.
structural
d.
culture/people
e.
competitive
12. All of the following are critical innovation strategies for changing products and technologies EXCEPT
_____.
a.
exploration
b.
cooperation
c.
innovation roles
d.
risk propensity
e.
all of these are critical innovation strategies
13. All of the following are characteristics of creative individuals EXCEPT _____.
a.
originality
b.
playfulness
c.
curiosity
d.
dependence
e.
open-mindedness
14. Artful Innovations Inc. operates with open channels of communication and an established suggestion
system that encourages brainstorming and freewheeling discussions. Artful Innovations can best be
described as a(n)_____ type of organization.
a.
experimental organization
b.
cooperative organization
c.
entrepreneurial organization
d.
disruptive organization
e.
creative organization
15. Which of the following is NOT a characteristic of a creative individual?
a.
Conceptual fluency
b.
Undisciplined exploration
c.
Persistence and focused approach
d.
Authorization and dependent
e.
All of these are characteristic of a creative individual
16. Creative organizations:
a.
are characterized by an unusually high number of routine jobs.
b.
are loosely structured.
c.
have little ambiguity.
d.
have too many layers of management.
e.
use a centralized decision making approach.
17. Which of the following provides a safe harbor where ideas from employees throughout the company
can be developed without interference from company bureaucracy or politics?
a.
An idea champion
b.
A sponsor
c.
A new-venture team
d.
An idea incubator
e.
An inventor
18. The innovation strategy for changing products and technologies that involves creating conditions and
systems to facilitate internal and external coordination and knowledge sharing is known as _____.
a.
exploration
b.
cooperation
c.
entrepreneurship
d.
idea incubator
e.
horizontal linkage
19. Shared development of innovations among several departments is emphasized by the _____ approach
to innovation
a.
vertical
b.
horizontal linkage model
c.
top down
d.
bottom-up
e.
diagonal
20. The horizontal linkage model is best applied to a:
a.
low pressure environment.
b.
stable environment.
c.
environment that requires speed.
d.
customer service environment.
e.
manufacturing environment.
21. Innovation requires the coordination that occurs with the _____ .
a.
top-down approach
b.
bottom-up approach
c.
horizontal linkage model
d.
time-based approach
e.
vertical approach
22. Which of the following means extending the search for and commercializing new ideas beyond the
boundaries of the organization and even beyond the boundaries of the industry?
a.
An idea champion
b.
Open innovation
c.
A new-venture team
d.
An idea incubator
e.
An inventor
23. Cooltown University recently invited members of its social network group to enter a contest on
YouTune to design the best video promoting the university. This is an example of what innovative
approach?
a.
Social group innovation
b.
Network innovation
c.
Techsourcing
d.
Crowdsourcing
e.
Insourcing
24. The innovation strategy for changing products and technologies that involves managers putting in
place processes and structures to ensure that new ideas are carried forward for acceptance and
implementation is known as _____.
a.
exploration
b.
cooperation
c.
innovation roles
d.
idea incubator
e.
horizontal linkage
25. Which of the following is a person who sees the need for and fights for productive change in an
organization?
a.
A creative individual
b.
A catalyst
c.
An idea champion
d.
A sponsor
e.
A critic
26. Which of the following describes a person who is passionately committed to a new product of idea
despite rejection by others?
a.
An idea champion
b.
A sponsor
c.
A new-venture team
d.
A skunkwork
e.
An investor
27. Ashley has average technical skills but her real strengths lay in visualizing the benefits of other’s ideas
and in finding financial and political support for these ideas. Ashley is an excellent example of a(n)
_____.
a.
critic.
b.
sponsor.
c.
idea champion.
d.
inventor.
e.
bureaucrat.
28. Which of the following is(are) important role(s) to be played during the process of organizational
change?
a.
The idea champion
b.
The critic
c.
The sponsor
d.
Inventor
e.
All of these
29. All of the following are characteristics of creative organizations EXCEPT_____.
a.
use of teams
b.
risk taking norms
c.
centralization
d.
long term horizon.
e.
loose controls
30. John has tremendous technical skills and frequently comes up with valuable ideas. However, he has
clueless about how to promote it within the organization. John is a good example of a(n)_____ .
a.
inventor.
b.
idea champion.
c.
sponsor.
d.
critic.
e.
an in-transition employee.
31. “The Brain” is a permanent secret group within one of the nation’s largest auto manufacturers.
Members of this elite group focus intently on developing new and innovative automobile technologies.
“The Brain” can best be described as what type of group or team?
a.
Cross-functional team
b.
Fast-cycle team
c.
Brainstorming team
d.
Skunkwork
e.
New-venture team
32. Vivian is a vice-president of marketing, which is far removed from the research and development
department. However, she keeps a close eye on what is happening in R & D and tries to support good
ideas whenever she can by removing unnecessary organizational obstacles. Vivian is a good example
of a(n)_____.
a.
inventor
b.
sponsor
c.
critic
d.
idea champion
e.
none of these
33. The role of the _____ is to prevent people in other roles from adopting a bad idea.
a.
critic
b.
inventor
c.
sponsor
d.
ombudsman
e.
obstructionist
34. The _____ is a unit separate from the rest of the organization responsible for the development of a
major innovation.
a.
new product group
b.
matrix group
c.
new-venture team
d.
vertical group
e.
change team
35. Which variation of new venture teams is described as a small separate, informal, highly autonomous,
and often selective group that focuses on breakthrough ideas for the business?
a.
An idea champion
b.
A sponsor
c.
A new-venture team
d.
A skunkwork
e.
An inventor
36. A fund providing resources from which individuals and groups draw to develop new ideas, products,
or businesses is referred to as a _____.
a.
personal fund
b.
development fund
c.
new-venture fund
d.
change fund
e.
mutual fund
37. _____ refers to a change in the attitudes and behaviors of a few employees in the organization.
a.
Organization change
b.
Organization development
c.
People change
d.
Culture change
e.
Artifact change
38. Which of the following refers to a major shift in the norms, values, attitudes, and mindset of the entire
organization?
a.
Organization change
b.
Organization development
c.
People change
d.
Culture change
e.
Artifact change
39. Jurgen is one of several middle managers sent to a training course on leadership skills. Through this
effort, the organization is attempting:
a.
organization change
b.
organization development
c.
people change
d.
culture change
e.
artifact change
40. Which of the following is defined by the text as the application of behavioral science knowledge to
improve an organization’s health and effectiveness through its ability to cope with environmental
changes, improve internal relationships, and increase problem-solving capabilities?
a.
Conflict management
b.
Organizational revitalization
c.
Organizational development
d.
Organizational linkage
e.
Horizontal linkage
41. Organizational development can help managers address problems such as merger/acquisitions, conflict
management, and _____ .
a.
cultural changes
b.
force field analysis
c.
organizational productivity
d.
organizational decline/revitalization
e.
none of these
42. _____ is NOT a type of current problem that organizational development can help address.
a.
Mergers
b.
Acquisitions
c.
Diversification
d.
Organizational decline
e.
Conflict management
43. Left-Right Industries employs a diverse set of individuals with strong personalities. Unfortunately,
this means that there is a great deal of interpersonal disagreement among employees. What
organizational tool would work best in this circumstance to manage conflict?
a.
Organizational development
b.
Skunkwork
c.
Telecommuting
d.
Downsizing
e.
Small-group innovation
44. High-Low Productions recently appointed 75 employees and external stakeholders to a temporary
group that would discuss problems and opportunities, and would gather perspectives on changes that
need to take place within the company. High-Low Productions is utilizing which organizational
change tool?
a.
Organizational development
b.
Skunkwork
c.
Telecommuting
d.
Focus group
e.
Large-group intervention
45. There are many organizational development activities, which are effective in solving many different
problems. _____ enhances the cohesiveness and success of organizational groups.
a.
Team building
b.
Survey feedback
c.
Intergroup activities
d.
Process-Consultation activities
e.
Symbolic management
46. Which of the following is a characteristic of the large-group intervention model?
a.
Results in incremental change
b.
Learning for the small group
c.
Addresses the entire system
d.
Gradual time frame
e.
Limited distribution
47. Which of the following is an OD intervention technique in which questionnaires on organizational
climate and other factors are distributed among employees and the results reported back to them by a
change agent?
a.
Team building activities
b.
Survey feedback activities
c.
Intergroup activities
d.
Process-consolidation activities
e.
Symbiotic leadership activities
48. _____ is an approach that brings together participants from all parts of the organization to discuss
problems or opportunities and plan for major change.
a.
Virtual-group intervention
b.
Traditional organization development
c.
Multi-unit intervention
d.
Strategic planning committee
e.
Large-group intervention