Deck 11: Innovation and Change

Question 1

A(n) ____ provides a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics.

A) switching structure
B) idea incubator
C) idea champion
D) technical core

Answer 1

B

Question 2

Today it should be recognized that:

A) stability is the environmental norm.
B) organizational change should occur incrementally.
C) "if it ain't broke, don't fix it" is a rule of management.
D) change is dramatic and constant.

Answer 2

D

Question 3

Corporate entrepreneurship:

A) attempts to release the creative energy of all employees.
B) usually results in fewer, though higher quality, innovations.
C) will replace creative departments and new venture teams.
D) results in idea champions who are the supervisors of production.

Answer 3

A

Question 4

Coming up with a new way of doing things is the ____ step of the change process.

A) need
B) idea
C) adoption
D) resources

Question 5

The adoption of an idea or behavior that is new to the organization's industry, market, or general environment is referred to as:

A) the ambidextrous approach.
B) the dual-core approach.
C) strategy and structure change.
D) organizational innovation.

Question 6

A(n) ____ provides financial resources for employees to develop new ideas, products, or businesses.

A) angel account
B) new-venture fund
C) project fund
D) enterprise fund

Question 7

A(n) ____ is a separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business.

A) idea champion
B) idea incubator
C) new-venture fund
D) skunkworks

Question 8

The type of change which will have direct impact on the administrative domain in an organization is called ____ change.

A) technology
B) product and service
C) strategy and structure
D) people

Question 9

ABC Credit Union began offering a "Sweep Account," in which funds over $500 in a checking account would be "swept" into a money-market, interest-bearing, account until the checking account reached $100, at which point, funds from the money market account would be "swept" back into the checking account. This is an example of a ____ change.

A) product or service
B) technological
C) strategy and structure
D) people

Question 10

Which of the following types of change refers to changes in the values, attitudes, expectations, beliefs, abilities, and behavior of employees?

A) Organizational change
B) Incremental change
C) Culture change
D) Structural change

Question 11

The four strategic types of change highlighted in our text include all of the following categories except:

A) technology.
B) products and services.
C) strategy and structure.
D) life cycle maturation.

Question 12

Which of the following is not given as an essential element for successful change?

A) Adoption
B) Need
C) Resources
D) Competition

Question 13

____ means an organization creates an organic structure when such a structure is needed for the initiation of new ideas.

A) Culture change
B) Dual-core approach
C) Ambidextrous approach
D) Switching structures

Question 14

The four strategic types of change highlighted in our text include which of the following categories?

A) Changing domain
B) Installation of teams
C) Culture
D) Development of interorganizational relationships

Question 15

The flexibility of a(n) ____ organization is attributed to people's freedom to be creative and introduce new ideas.

A) mechanistic
B) bureaucratic
C) organic
D) resource

Question 16

The ambidextrous approach refers to:

A) using different structures and management processes for creation and for implementation.
B) introducing parts of a new procedure while maintaining parts of the old procedure.
C) not letting the "left hand" (one department) know what the "right hand" (another department) is doing.
D) using highly skilled employees to implement a change.

Question 17

A venture team:

A) may increase commitment, but stifles creativity.
B) is often given a separate location and facilities.
C) is like a large company within a small company.
D) is most often found in a mechanistic organization.

Question 18

____ occurs when decision makers choose to go ahead with a proposed idea.

A) Need
B) Adoption
C) Implementation
D) Resource

Question 19

____ occurs when organization members actually use a new idea, technique, or behavior.

A) Implementation
B) Evaluation
C) Formulation
D) Coordination

Question 20

____ are changes in an organization's production process that enable distinctive competence.

A) Technology changes
B) Structural changes
C) Incremental changes
D) Environmental changes

Question 21

CDs all but wiped out the phonograph indusry, and now Apple's iPod and streaming music from companies such as Europe's Spotify are threatening the same fate for CDs. Netflix's approach to delivering movies through the mail and via streaming was a change for Blockbuster, which ultimately filed for bankruptcy. These are all examples of _____ change.

A) disruptive
B) continuous
C) episodic
D) annual

Question 22

Delivering products and services faster than competitors, giving companies a competitive edge is referred to as:

A) competitive advantage.
B) horizontal coordinations.
C) time-based competition.
D) boundary spanning.

Question 23

Mike Hall, CEO of Borrego Solar Systems, holds internal "innovation challenge' contests on the company intranet to get his shy, introverted engineers to speak up with their ideas for improving the business. Employees vote on their favorites and the winner takes home a cash prize. Borrego Solar Systems utilizes which of the following approaches?

A) Top-down
B) Bottom-up
C) Flat
D) Horizontal

Question 24

Which of the following is not a force for culture change?

A) The learning organization
B) Diversity
C) Large group intervention
D) Reengineering and horizontal organizing

Question 25

When it comes to new product success rate, only ____ percent of all projects originally undertaken achieved economic success.

A) 60
B) 30
C) 14
D) 3

Question 26

The point of the ____ is that many organizations must adopt frequent administrative changes and need to be structured differently from organizations that rely on frequent technical and product changes for competitive advantages.

A) horizontal coordination model
B) switching structure
C) ambidextrous approach
D) dual-core approach

Question 27

Which of the following is not an environmental demand for change as described by the text?

A) Continuous
B) Episodic
C) Periodic
D) Disruptive

Question 28

Organizational development often entails large group intervention that involves:

A) radical or transformational change in organizations.
B) electronic data interchange for the organization as a whole.
C) teaching hourly and salaried workers how to participate in strategic planning.
D) attempts to bring new emphasis to total quality management.

Question 29

In a survey conducted by IBM and Industry Week magazine, _____ percent of respondents identified collaborating with customers and suppliers as having the most significant impact on product development time-to-market.

A) 20
B) 40
C) 60
D) 80

Question 30

_____ is the generation of novel ideas that may meet perceived needs or respond to opportunities.

A) Brainstorming
B) Skunkworks
C) Change
D) Creativity

Question 31

Organizational barriers to change include all of the following except:

A) uncertainty avoidance.
B) fear of loss.
C) coordination for change implementation.
D) excessive focus on costs.

Question 32

____ means extending the search for and commercialization of new products beyond the boundaries of the organization and even beyond the boundaries of the industry.

A) Open innovation
B) Organizational innovation
C) Large group intervention
D) Technology tracking

Question 33

In the horizontal coordination model, the ____ component means that each department involved with new products has excellent linkage with relevant sectors in the external environment.

A) specialization
B) boundary spanning
C) horizontal coordination
D) coordination

Question 34

When an organization development consultant brings together a group to discuss and solve problems such as conflicts, goals, decision making, or communication, the intervention technique is called:

A) survey-feedback.
B) team building.
C) culture management.
D) technical training.

Question 35

Key components of organization design contributing to successful new product innovation are:

A) specialization, boundary spanning, and horizontal coordination.
B) formalization, hierarchy, and organic structure.
C) specialization, formalization, and standardization.
D) dual-core processes, top management support, and incremental change.

Question 36

It has been found that new products will be more successful if:

A) a company pays more attention to production than to marketing so quality can improve.
B) outside technology is used.
C) most work is done by subcontractors.
D) those without much authority or seniority become product champions.

Question 37

____ focuses on the human and social aspects of the organization as a way to improve the organization's ability to adapt and solve problems.

A) Organizational innovation
B) Organizational change
C) Change process
D) Organization development

Question 38

All of the following were concluded in the study called Project SAPPHO except:

A) successful innovating companies made more effective use of outside technology and outside advice, even though they did more work in-house.
B) successful innovating companies had a much better understanding of customer needs and paid much more attention to marketing.
C) employees had little say in the way production processes were developed and in decision making.
D) top management support in the successful innovating companies was from people who were more senior and had greater authority.

Question 39

Technical innovation is facilitated by a(n) ____ process and a(n) ____ structure, while administrative change best occurs as a result of a(n) ____ process and a(n) ____ structure.

A) top-down; organic; bottom-up; mechanistic
B) bottom-up; organic; top-down;mechanistic
C) strategic; mechanistic; tactical; organic
D) ambidextrous; product; OD intervention; functional

Question 40

Organizations can be conceptualized as having two cores: a(n) ____ and a ____.

A) management core; flexible core
B) technical core; management core
C) adaptable core; technical core
D) innovative core; management core

Question 41

Organic organizations encourage a bottom-up innovation process.

Question 42

The horizontal coordination model is used primarily for innovations in the administrative core.

Question 43

Structure and system changes are usually bottom-up, mandated by lower management, whereas product and technology changes may often come from the top down.

Question 44

Only 14 percent of all new products actually undertaken eventually earn an economic success.

Question 45

Many new product development teams today are global teams because organizations have to develop products that will meet diverse needs of consumers all over the world.

Question 46

A new venture fund provides financial resources for employees to develop new ideas, products, or businesses.

Question 47

Organizational innovation is the generation of novel ideas that may meet perceived needs or respond to opportunities.

Question 48

Horizontal coordinations means that each department involved with new products has excellent linkage with relevant sectors in the external environment.

Question 49

Idea champions provide the time and energy to make things happen and fight to overcome natural resistance to change and convince others of the merit of a new idea.

Question 50

Implementation of change is often the easiest part of the change process.

Question 51

Which of the following is not a barrier to change?

A) Excessive focus on costs
B) Failure to perceive benefits
C) Certainty avoidance
D) Fear of loss

Question 52

Product and service changes pertain to the administrative domain in an organization.

Question 53

The four types of change are independent of each other, or, in other words, a change in one has no effect on another.

Question 54

Ideas are generally not seriously considered unless there is a perceived need for change.

Question 55

Clothing retailer Zara gets new styles into stores twice a week. Russell Stover got a line of low-carb candies, called Net Carb, on store shelves within three months after perfecting the recipe, rather than the typical twelve months. These are examples of _____ competition.

A) convenience-based
B) cost-based
C) location-based
D) time-based

Question 56

A switching structure is one that switches back and forth as needed between product and matrix in form.

Question 57

Changing technology means to change the organization's production process rather than the product itself.

Question 58

Organizational innovation means extending the search for and commercialization of new products beyond the boundaries of the organization and even beyond the boundaries of the industry.

Question 59

Venture teams are large groups of employees dedicated to coming up with new ideas for improved organizational structure.

Question 60

The need element in the change process always precedes the idea element.

Question 61

Explain why a change in technology, structures and systems, products and services, or people will affect the others elements. Provide an example of the change in one of these elements and how it will affect the other elements.

Question 62

O.D. uses knowledge and techniques from the behavioral sciences.

Question 63

Give two examples of organizations that have switched structures to maintain an ambidextrous approach.

Question 64

Apple was named by BusinessWeek as the number one most innovative company in the world.

Question 65

The ambidextrous approach brings together participants from all parts of the organization in an off-site setting to discuss problems or opportunities and plan for change.

Question 66

Describe the operations of venture teams or action teams. Why are they particularly important to large organizations? Give an example.

Question 67

For most companies, stability, rather than change, is the norm today.

Question 68

Leaders who have taken their companies through major successful transformations often have one thing in common: they focus on formulating and articulating a compelling vision and strategy that will guide the change process.

Question 69

Exploration means encouraging creativity and developing new ideas, whereas exploitation means implementing those ideas to produce routine products.

Question 70

At one point in the research of new product development, a question to be answered was, "Why are some products more successful than others?" What answers have been found to this question?

Question 71

Idea champions can also be referred to as advocates, intrapreneurs, or change agents.

Question 72

In the dual-core approach, change is facilitated in the management core by a mechanistic structure and in the technical core by an organic structure.

Question 73

What is a venture team?

Question 74

Culture change is particularly easy because people change their attitudes and beliefs easily.

Question 75

The most important aspect for creating an innovative company is requiring people to come up with new ideas.

Question 76

Explain the horizontal coordination model as it relates to new product development.

Question 77

Employee inputs may be sought, but top managers have the responsibility to direct the change.

Question 78

Compare and contrast the dual core approach and the ambidextrous approach.

Question 79

Corporate downsizing is an example of top-down structure change.

Question 80

List and discuss each of the elements for successful change. Diagram the sequence of the elements.