Deck 11: Managing Change and Innovation

Question 1

 If organizations don't change and innovate successfully, they die.

Answer 1

True

Question 2

 Productive innovation refers to innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers.

Answer 2

False

Question 3

 An idea incubator is a mechanism that provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics.

Answer 3

True

Question 4

 Three critical innovation strategies for changing products and technologies are exploration, discovery, and innovation.

Question 5

 Organizational change refers to the adoption of a new idea or behavior by an organization.

Question 6

 A new-venture team is a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation.

Question 7

 Innovative companies use a top-down approach.

Question 8

 The horizontal linkage model is increasingly important in a high-pressure business environment that requires rapidly developing and commercializing products and services.

Question 9

 Managers in creative companies avoid risk and experimentation.

Question 10

 The acceptance of mistakes, the freedom to discuss ideas, and the assignment of nonspecialists to problems are characteristics of creative organizations.

Question 11

 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.

Question 12

 A person who sees the need for and champions productive change within the organization is called an idea champion.

Question 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.

Question 14

 Confrontation, authoritarianism, and disciplined exploration are characteristics of the creative individual.

Question 15

 Innovation by acquisition means buying start-up companies to get innovative products and services, and usually the talent that created them.

Question 16

 Exploration is the aspect of product and technology innovation that involves creating situational mechanisms to make sure new ideas are carried forward, accepted, and implemented.

Question 17

 A product change is a change in the organization's product or service outputs.

Question 18

 A skunkworks is a large, formal team, designed for leading organizations through major change.

Question 19

 Creativity refers to the generation of novel ideas that might meet perceived needs or respond to opportunities for the organization.

Question 20

 An ambidextrous approach means incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations.

Question 21

 New-venture teams typically are small, loosely structured, and flexible.

Question 22

 Three of the most popular and effective organization development activities are team-building activities, survey-feedback activities, and large-group interventions.

Question 23

 The traditional organization development model focuses on the entire system, and learning occurs across all parts of the organization, rather than by individuals, small groups, or business units alone.

Question 24

 In the first stage of organization development, unfreezing, people throughout the organization are made aware of problems and the need for change.

Question 25

 Mergers/acquisitions, organizational decline, and conflict management are the three types of current problems that organization development can help managers address.

Question 26

 Refreezing is the reinforcement stage of organization development in which individuals acquire new attitudes or values and are rewarded for them by the organization.

Question 27

 Changing is the "intervention" stage of organization development.

Question 28

 Survey feedback enhances the cohesiveness and success of organizational groups and teams.

Question 29

 Organization development is a planned, systematic process of change that helps to strengthen the organization's capacity for adaptation and renewal.

Question 30

 Two specific tools that can smooth the culture change process include organization development and training and development programs.

Question 31

 A skunkworks is a separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for a business.

Question 32

 Culture change is a major shift in the norms, values, and mind-set of the entire organization.

Question 33

 Organization development focuses on the human and social aspects of the organization.

Question 34

 Centralization and short time horizon are characteristics of a creative organization.

Question 35

 The fear of the unknown is perhaps the biggest obstacle to organizational change.

Question 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 through sustained, guided dialogue.

Question 37

 Training is one of the most frequently used approaches to changing people's mind-sets.

Question 38

 The three distinct stages for achieving behavioral and attitudinal change with organization development are planning, changing, and stabilizing.

Question 39

 Culture change pertains to the organization as a whole.

Question 40

 People change starts with training everyone in the organization.

Question 41

 Restraining forces are the problems or opportunities that provide motivation for change within the organization.

Question 42

 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.

Question 43

 A need for change is a disparity between existing and desired performance levels.

Question 44

 When a change involves multiple departments, top management support is especially important.

Question 45

 A crisis or strong need for change elevates resistance.

Question 46

 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.

Question 47

 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) innovation roles.
E) horizontal linkage.

Question 48

 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) organizational change.
D) innovation.
E) strategic analysis.

Question 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.

Question 50

 Two possible tactics for overcoming resistance to change are coercion and negotiation.

Question 51

 Change, according to Kurt Lewin, is a result of the competition between forced and unforced fields.

Question 52

 A __________ change is a change in the organization's product or service outputs.

A) technology
B) product
C) entrepreneurship
D) creative
E) incremental

Question 53

 Reasons that employees resist change include self-interest, lack of understanding and trust, uncertainty, and different assessments and goals.

Question 54

 The introduction of efficiency-boosting winglets on aircraft at Southwest Airlines, and the adoption of automatic mail-sorting machines by the U.S. Postal Service are examples of:

A) reverse innovation.
B) process change.
C) technology change.
D) product change.
E) disruptive innovation.

Question 55

 A(n) __________ change is a change in how an organization does its work.

A) technology
B) product
C) entrepreneurship
D) creativity
E) incremental

Question 56

 For the video rental industry, the advent of video on demand and online streaming can best be described as what type of innovation?

A) Disruptive 
B) Service 
C) Productive 
D) Restructuring 
E) Reverse 

Question 57

 __________ innovation refers to innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers.

A) Restructuring 
B) Trickle-up 
C) Productive 
D) Disruptive 
E) Reverse 

Question 58

 Coercion is a more formal means of achieving cooperation.

Question 59

 Lack of understanding or trust are common reasons for resistance to change.

Question 60

 An example of an organizational change would be:

A) the switch to a new production method.
B) the decision to offer a new product line.
C) the introduction of a new pay-for-performance system.
D) the decision to sell completely online and to close retail stores.
E) all of these.

Question 61

 Companies that successfully innovate usually have all of the following characteristics except:

A) people in research and marketing actively work with customers to understand their needs and develop solutions.
B) technical specialists are aware of recent developments and make effective use of new technology.
C) a shared new product process that is advocated and supported by top management cuts across organizational functions and units.
D) members from key departments work separately in the development of the new product or service.
E) each project is guided by a core cross-functional team from beginning to end.

Question 62

 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) __________ organization.

A) experimental 
B) cooperative 
C) entrepreneurial 
D) disruptive 
E) creative 

Question 63

 Using a(n) __________ means that several departments, such as marketing, research, and manufacturing, work closely together to develop new products.

A) vertical structure
B) horizontal linkage model
C) top-down approach
D) bottom-up approach
E) ambidextrous approach

Question 64

 A(n) __________ is a person who sees the need for and champions productive change within the organization.

A) creative individual
B) catalyst
C) idea champion
D) sponsor
E) idea incubator

Question 65

 According to Fast Company, in 2016, __________ was ranked as the World's Most Innovative Company.

A) BuzzFeed
B) Facebook
C) Apple
D) Amazon
E) Taco Bell

Question 66

 Which of the following means extending the search for and commercialization of new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry, sharing knowledge and resources with other organizations and individuals outside the firm?

A) Knowledge sharing
B) Open innovation
C) Internal coordination
D) Crowdsourcing
E) Reverse innovation

Question 67

 Which of the following is not a characteristic of a creative individual?

A) Conceptual fluency
B) Undisciplined exploration
C) Persistence 
D) Dependent
E) Focused approach

Question 68

 Cooltown University recently invited members of its social network group to enter a contest on YouTube 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

Question 69

 When managers give employees a degree of autonomy and reward learning and risk-taking, they are assuming:

A) an innovation role.
B) a disruptor role.
C) a cooperation role.
D) leadership of a new-venture team.
E) ownership of a new-venture fund.

Question 70

 All of the following are characteristics of creative individuals except:

A) originality.
B) playfulness.
C) curiosity.
D) rationality.
E) open-mindedness.

Question 71

 Which of the following describes a person who is passionately committed to a new idea or product, despite rejection by others?

A) An idea champion
B) A sponsor
C) A new-venture team
D) A skunkworks
E) An investor

Question 72

 Which of the following are the three critical innovation strategies for changing products and technologies?

A) Exploration, cooperation, and innovation roles
B) Cooperation, innovation roles, and analysis
C) Exploration, cooperation, and discovery
D) Exploration, creativity, and implementation
E) Cooperation, collaboration, and innovation roles

Question 73

 Which of the following is not an innovation role?

A) Idea champion
B) New-venture team
C) New-venture fund
D) Skunkworks
E) Idea incubator

Question 74

 Jackie, a new employee of yours, strikes you as curious, open-minded, and self-confident. Keep your eye on Jackie, for she may very well be a(n):

A) disciplinarian.
B) authoritarian manager.
C) Type A personality.
D) creative individual.
E) idea champion.

Question 75

 Innovative companies use a(n) __________, which means encouraging the flow of ideas from lower levels and making sure they get heard and acted upon by top executives.

A) top-down approach
B) bottom-up approach
C) horizontal linkage model
D) time-based approach
E) ambidextrous approach

Question 76

 The horizontal linkage model is best applied to a(n):

A) low-pressure environment.
B) stable environment.
C) high-pressure environment that requires speed.
D) simple environment.
E) heavily regulated environment.

Question 77

 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

Question 78

 Creative organizations:

A) are characterized by an unusually high number of routine jobs.
B) are loosely structured.
C) have little ambiguity.
D) have a short time horizon.
E) use a centralized decision-making approach.

Question 79

 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) innovation roles.
E) discovery.

Question 80

 Companies that practice reverse innovation:

A) innovate in affluent countries and transfer products to emerging markets.
B) create innovative, low-cost products for emerging markets and then quickly and inexpensively repackage them for resale in developed countries.
C) create products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers.
D) create products or services that initially sell well but have declining sales after a short period of time.
E) often struggle with changing successfully.