Question 1

The first step in the compression approach to innovation is _____.

Accepted Answer

Planning is the first step in the compression approach to innovation. This involves identifying and setting the objectives, establishing a project team, and allocating resources.

Question 2

Which of the following statements is true about the compression approach to managing innovation?

Accepted Answer

The compression approach to managing innovation is typically used during periods of incremental change, focusing on making small improvements to existing technologies or processes rather than developing entirely new ones.

Question 3

The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____.

Accepted Answer

The answer of The three steps in the basic process...

Question 4

Which of the following is one of the sources of resistance to change?

Accepted Answer

The answer of Which of the following is one of...

Question 5

In the context of managing change, _____ forces support the status quo.

Accepted Answer

Resistance forces are the ones that resist change and support the status quo. Dialectical forces represent opposing viewpoints and can be a driving force for change. Generational, experiential, and autonomous forces are not directly related to supporting or resisting change.

Question 6

At which stage of organizational decline does the decline become irreversible?

Accepted Answer

The dissolution stage is the point at which decline becomes irreversible because the organization is no longer able to sustain itself and its operations come to an end. In the Crisis stage, it is still possible for the organization to recover, while in other stages, such as Faulty action stage, Inaction stage, or Blinded stage, there is still room for corrective action to be taken.

Question 7

Which of the following is a characteristic of the inaction stage of organizational decline?

Accepted Answer

During the inaction stage of organizational decline, managers wrongly assume that they can easily correct the problems, so they don't feel the situation is urgent. This leads to a delay in taking corrective actions which can worsen the situation. Option A describes the crisis stage, option C describes the blinded stage, option D describes the frustration stage, and option E describes the dissolution stage.

Question 8

When companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival, it results in _____.

Accepted Answer

When companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival, it results in organizational decline. This can happen due to factors such as increased competition, changes in technology, or shifts in consumer preferences, among others. Failure to address these challenges can lead to a decline in business performance and eventually to the company's demise.

Question 9

Touchstone Hardware was a popular company that specialized in making floppy disks. At the start of the 21st century, when people began switching to CDs and DVDs to store their information, it was brought to the notice of senior managers that the company needed to switch its focus to the new storage devices. However, managers did not feel it was important to switch. They dismissed CDs and DVDs as just a passing phase. At this point, which stage of organizational decline is the company in?

Accepted Answer

The company is in the blinded stage of organizational decline. The senior managers are dismissing the new technology and refusing to adapt to the changes in the market.

Question 10

Which of the following statements about resistance to change is true?

Accepted Answer

Resistance to change is often caused by misunderstanding and distrust, as employees may not understand the reasons for the change or distrust the motives behind it. Involving employees in planning and implementation, educating them about the need for change, and providing significant managerial support can help reduce resistance to change. Resistance to change is not minimal in conditions of certainty, as even in predictable situations there may still be resistance to changes that disrupt established routines or ways of doing things.

Question 11

In the _____ stage of organizational decline, a new CEO may be brought in to oversee the closing of stores, offices, and manufacturing facilities, the final layoff of managers and employees, and the sale of assets.

Accepted Answer

The stage of organizational decline where a new CEO might oversee the final stages of liquidation and dissolution is the dissolution stage. In this stage, the organization has typically exhausted all other options and is unable to continue operating, leading to the selling of assets and termination of operations.

Question 12

According to social psychologist Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time.

Accepted Answer

The answer of According to social psychologist Kurt Lewin, _____...

Question 13

In the _____ stage of organizational decline, cutbacks and layoffs will have reduced the level of talent among employees.

Accepted Answer

The crisis stage of organizational decline is characterized by significant financial losses and reduced resources, which leads to cutbacks, layoffs, and a decrease in the level of talent among employees. This stage often precedes the dissolution or bankruptcy of the organization.

Question 14

It is appropriate to use a(n) _____ approach to manage innovation in more certain environments, in which the goals are lower costs and incremental improvements in the performance and function of an existing technological design.

Accepted Answer

The compression approach to innovation management is appropriate for more certain environments where the goal is incremental improvements in existing technology. This approach focuses on reducing the time and cost of innovation by streamlining the development process and optimizing existing designs. This is often used in industries such as manufacturing or software development where incremental improvements can lead to significant cost savings and increased efficiency.

Question 15

In the _____ stage of organizational decline, managers typically assume that if they just run a tighter ship, company performance will return to previous levels.

Accepted Answer

In the "faulty action" stage of organizational decline, managers often believe that by implementing tighter controls or cost-cutting measures, they can reverse the decline and restore the organization to its former performance levels. This stage is characterized by reactive and often ineffective attempts to stop the decline without addressing the underlying issues.

Question 16

Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin?

Accepted Answer

The answer of Which of the following is one of...

Question 17

Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in _____.

Accepted Answer

Generational change refers to creating newer versions of software that are backward compatible with older ones, allowing users to upgrade their software without losing their data or having to switch to a different program. This is a common practice among software manufacturers, particularly in industries like accounting where users often rely on their software for important tasks like tax preparation.

Question 18

Which of the following is an aspect of the compression approach to innovation?

Accepted Answer

Supplier involvement is an aspect of the compression approach to innovation, which focuses on streamlining processes and reducing time to market by involving suppliers early in the development process.

Question 19

When Red Arc Enterprises, a shipping company was merged with a larger shipping company, there was a strong resistance to change among the employees of Red Arc. When the CEO of Red Arc came to know of this, he met everyone and explained why the change was necessary and how it could serve to benefit all of them. Kurt Lewin would say that the company is in the _____ stage of managing organizational change.

Accepted Answer

The answer of When Red Arc Enterprises, a shipping company...

Question 20

When incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version, _____ is said to have occurred.

Accepted Answer

The answer of When incremental improvements are made to a...

Quiz 7: Innovation and Change