Chapter 8—Change and Innovation
TRUE/FALSE
1. Organizational change refers to the adoption of a new idea or behavior by an organization.
2. A technological change is related to the organization’s production process.
3. Technology change involves the hierarchy of authority, goals, administrative procedures, and
managerial systems.
4. A product change is a change in the organization’s product or service outputs.
5. Creativity is the generation of novel ideas that may meet perceived needs or respond to opportunities
for the organization.
6. 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 exploration.
7. 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.
8. 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
cooperation.
9. 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.
10. 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 entrepreneurship.
11. Originality, authoritarianism, and disciplined exploration are among the characteristics of the creative
individuals.
12. Centralization and short time horizon are primarily used by creative organizations.
13. The acceptance of mistakes, the freedom to discuss ideas, and the assignment of nonspecialists to
problems are characteristics of creative organizations or departments.
14. One value of the idea incubator is that an employee with a good idea has somewhere to go with it,
rather than having to shop the idea all over the company and hope someone pays attention.
15. Traditional organizations have an internal culture of playfulness, freedom, challenge, and grass-roots
participation.
16. 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.
17. An approach to innovation that emphasizes shared development of innovations among several
departments is referred to as the horizontal linkage model.
18. A fast-cycle team is a multifunctional, and sometimes multinational, team that works under stringent
timelines and is provided with high levels of resources and empowerment to accomplish an accelerated
product development project.
19. An open team is a multifunctional, and sometimes multinational, team that works under stringent
timelines and is provided with high levels of resources and empowerment to accomplish an accelerated
product development project.
20. Open innovation means extending the search for and commercializing new ideas beyond the
boundaries of the organization and the industry.
21. Idea champions feel very passionate and committed to a new product or idea despite rejection to
others.
22. A person who sees the need for and champions productive change within the organization is called an
idea champion.
23. The person, who, in a creativity contest, is able to develop the greatest number of new and novel
concepts, is called an idea champion.
24. Skunkworks are a separate small, informal, highly autonomous, and often secretive group that focuses
on breakthrough ideas for the business.
25. 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.
26. Skunklabor is a separate small, informal, highly autonomous, and often selective group that focuses on
breakthrough ideas for the business.
27. A new-venture fund provides resources from which individuals and groups can draw to develop new
ideas, products, or businesses.
28. People change refers to a change in the attitudes and behaviors of a few employees in the organization.
29. Culture change refers to a change in the attitudes and behaviors of a few employees in the
organization.
30. Culture change refers to a major shift in the norms, values, attitudes, and mindset of the entire
organization.
31. Training is one of the most frequently used approaches to changing people’s mindsets.
32. Organizational development involves the application of behavioral science techniques to improve an
organization’s effectiveness and success.
33. Mergers/acquisitions, organizational decline, and conflict management are the three types of current
problems that organizational development managers face.
34. Three of the most popular and effective OD activities are team building, survey feedback, and
large-group interventions.
35. Two of the most popular and effective OD activities are small-group disbanding and large-group
interventions.
36. 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.
37. The traditional organization development model focuses on the entire system and learning takes place
throughout the whole organization.
38. 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.
39. A change agent is an OD specialist who contracts with an organization to facilitate change.
40. The three distinct steps for achieving behavioral and attitudinal change with organizational
development are planning, changing and stabilizing.
41. In the unfreezing step, participants must be made aware of problems and be willing to change.
42. After the need for change has been perceived, the next part of the change process is implementing
change.
43. A need for change is a disparity between the performance of the company when compared with a
competitor.
44. The disparity between existing and desired performance levels is the need for change.
45. Reasons employees resist change include self-interest, lack of understanding and trust, uncertainty, and
different assessments and goals.
46. The lack of information about past events refers to uncertainty.
47. Change, according to Kurt Lewin, was a result of the competition between forced and unforced fields.
48. 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.
49. 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.
50. When users have power to resist, coercion tactic should be used for overcoming resistance to change.
51. Two possible tactics for overcoming resistance to change are coercion and negotiation.
52. When a change involves multiple departments, top management support is especially important.
53. If organizations don’t successfully change and innovate, they die.
54. Productive innovation refers to innovations in products, services, or processes that radically change an
industry’s rules of the game for producers and consumers.
55. An ambidextrous approach means incorporating structures and processes that are appropriate for both
the creative impulse and for the systematic implementation of innovations.
56. Experimentation refers to the generation of novel ideas that might meet perceived needs or respond to
opportunities for the organization.
57. Research shows that managers in creative companies avoid risk and experimentation.
58. The company that placed first on the 2010 Fast Company List was Facebook.
59. The horizontal linkage model is increasingly important in high pressure business environments that
require rapidly developing and commercializing products and services.
60. Exploration is the aspect of product and technology innovation that involves creating mechanisms to
make sure new ideas are carried forward, accepted, and implemented.
61. Within the role of inventor, an individual believes in an idea and visualizes its benefits.
62. Two specific tools that can smooth the change process include organizational development and
programs for training and development.
63. Survey feedback enhances the cohesiveness and success of organizational groups and teams.
64. The large-group intervention model typically results in incremental change within an organization.
65. During the changing stage of organizational development, individuals experiment with new behavior
and learn new skills to be used in the workplace.
66. Managers and employees that are most involved in an innovation or potential change are often those
that seem to prefer the status quo.
67. Lack of understanding or trust are common reasons for resistance to 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. 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.
3. 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.
4. 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
5. 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
6. 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
7. 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.
entrepreneurship
d.
idea incubator
e.
horizontal linkage
8. ____ change is a change in the organization‘s product or service outputs.
a.
Technology
b.
Product
c.
Entrepreneurship
d.
Creative
e.
Incremental
9. Which of the following is a change in the organization’s production process — how the organization
does its work?
a.
Technology
b.
Product
c.
Entrepreneurship
d.
Creativity
e.
Incremental
10. A ____ change is related to the organization production process.
a.
new product
b.
technological
c.
structural
d.
cultural/people
e.
competitive
11. All of the following are characteristics of creative individuals EXCEPT
a.
originality
b.
playfulness
c.
curiosity
d.
rationality
e.
open-mindedness
12. 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.
13. Which of the following is NOT a characteristic of a creative individual?
a.
Conceptual theory
b.
Undisciplined exploration
c.
Persistence and focused approach
d.
Authorization and dependent
e.
all of these are characteristics of a creative individual
14. Jackie, a new employee of yours, strikes you as curious, open-minded, and receptive to new ideas.
Keep your eye on Jackie, for she may very well be
a.
an outstanding performer.
b.
an individual with a high need for achievement.
c.
a satisfied employee.
d.
a creative individual.
e.
none of these.
15. 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.
16. All of the following are critical innovation strategies for changing products and technologies EXCEPT
a.
exploration
b.
cooperation
c.
entrepreneurship
d.
risk propensity
e.
all of these are critical innovation strategies
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. According to BusinessWeek, in 2010, ____ was ranked as the World’s Most Innovative Company.
a.
Apple
b.
Nintendo
c.
Nokia
d.
Sony
e.
Procter & Gamble
19. 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
20. 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
21. According to BusinessWeek and Boston Consulting Group, 72% of top executives reported that ____
is a top priority.
a.
planning
b.
competition
c.
organization
d.
cooperation
e.
innovation
22. A(n) ____ team is a multifunctional, and sometimes multinational, team that works under stringent
timelines and is provided with high levels of resources and empowerment to accomplish an accelerated
product development project.
a.
fast-cycle
b.
sponsor
c.
new-venture
d.
skunkwork
e.
invested
23. 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
24. Today’s most successful companies are including ____ directly in the product and service development
process.
a.
employees
b.
internal buyers
c.
competitors
d.
customers
e.
all of these
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. John has tremendous technical skills and frequently comes up with valuable ideas. However, he has
little idea how to promote it within the organization. John is a good example of
a.
an inventor.
b.
an idea champion.
c.
a sponsor.
d.
a critic.
e.
an in-transition employee.
27. Which of the following describes a person who is passionately committed to a new product or idea
despite rejection by others?
a.
An idea champion
b.
A sponsor
c.
A new-venture team
d.
A skunkwork
e.
An investor
28. 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.
a critic.
b.
a sponsor.
c.
an idea champion.
d.
an inventor.
e.
a bureaucrat.
29. Vivian, as a vice-president of marketing, 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.
an inventor.
b.
a sponsor.
c.
a critic.
d.
an idea champion.
e.
none of these.
30. 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
31. 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
32. 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
33. 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
34. 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.
35. ____ 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
36. 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
37. 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
38. 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
39. 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
40. ____ 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
41. 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
42. 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
43. ____ 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
44. Which of the following is the intervention stage of organization development in which individuals
experiment with new workplace behavior?
a.
Refreezing
b.
Restating
c.
Unfreezing
d.
Changing
e.
Jumping