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Questions and Answers

What is organization change defined as?

  • A minor adjustment in employee roles
  • An increase in production efficiency
  • Any substantive modification to some part of the organization (correct)
  • A shift in company culture
  • Which of the following describes external forces for change?

  • Adjustments made to enhance employee satisfaction
  • Efforts to develop new workplace policies
  • Changes mandated by government regulations (correct)
  • Internal restructuring to improve efficiency
  • What typically causes internal forces for change within an organization?

  • Customer feedback
  • Responses to external pressures (correct)
  • Market competition
  • Technological advancements
  • Which statement best describes planned change?

    <p>A structured approach to implement changes in strategy (A)</p> Signup and view all the answers

    The process of managing resistance to change involves which of the following?

    <p>Providing support and communication (C)</p> Signup and view all the answers

    What is a primary goal of organization development?

    <p>To enhance organizational effectiveness (B)</p> Signup and view all the answers

    What can promote innovation within an organization?

    <p>Encouraging risk-taking and creativity (D)</p> Signup and view all the answers

    Failure to innovate is typically associated with which of the following?

    <p>Overconfidence in existing products (C)</p> Signup and view all the answers

    What is a common reason for resistance to change in organizations?

    <p>Uncertainty about the extent and effects of change (D)</p> Signup and view all the answers

    Which action can help overcome resistance to change?

    <p>Encouraging active participation in the change process (B)</p> Signup and view all the answers

    What is one of the barriers to change that might affect employees?

    <p>Feelings of loss in disrupted social networks (C)</p> Signup and view all the answers

    What technique can be used to identify and minimize barriers to change?

    <p>Force-field analysis (A)</p> Signup and view all the answers

    Which of the following typically threatens self-interests during a change process?

    <p>Potential job reassignments or layoffs (A)</p> Signup and view all the answers

    What perception commonly leads to negative feelings about change?

    <p>Change may disrupt established workflows (C)</p> Signup and view all the answers

    How can management effectively communicate about the change process?

    <p>Clearly outlining the benefits and expected outcomes (A)</p> Signup and view all the answers

    What role does education play in the change process?

    <p>To guide employees through the transition effectively (B)</p> Signup and view all the answers

    What is the purpose of Enterprise Resource Planning (ERP)?

    <p>To create a platform for integrating and synchronizing activities in an enterprise (A)</p> Signup and view all the answers

    What is the primary intent of organizational development activities focused on planning and goal setting?

    <p>To help individuals and groups integrate into the overall planning process (B)</p> Signup and view all the answers

    What does business process change, or reengineering, involve?

    <p>Radical redesign of all aspects of a business (C)</p> Signup and view all the answers

    Which type of innovation is characterized by fundamentally shifting competition in an industry?

    <p>Radical innovation (D)</p> Signup and view all the answers

    What is a consequence of the entropy process in organizations?

    <p>Decline due to maintenance of the status quo (D)</p> Signup and view all the answers

    Organization Development (OD) aims to increase what aspect of an organization?

    <p>Organizational effectiveness and health (C)</p> Signup and view all the answers

    Which of the following best describes incremental innovation?

    <p>It modifies existing products or services without significantly affecting competition. (D)</p> Signup and view all the answers

    What differentiates technical innovation from managerial innovation?

    <p>Technical innovation alters the performance or appearance of a product. (B)</p> Signup and view all the answers

    Which of the following is NOT an area of organization change?

    <p>Changing marketing strategies exclusively (D)</p> Signup and view all the answers

    In terms of organizational development, what is a common approach organizations may take?

    <p>Employing multiple types of interventions simultaneously (B)</p> Signup and view all the answers

    What does the planned effort in Organization Development typically draw from?

    <p>Behavioral science knowledge (B)</p> Signup and view all the answers

    What can result from a lack of business process change in an organization?

    <p>The organization consuming its own resources (C)</p> Signup and view all the answers

    Which statement best describes a managed effort in innovation?

    <p>It includes the development of new uses for existing products. (A)</p> Signup and view all the answers

    Which of the following indicates a pragmatic approach to organizational development?

    <p>Improving planning and goal setting among managers (B)</p> Signup and view all the answers

    How is Organization Development typically managed within an organization?

    <p>Managed from the top and organization-wide (A)</p> Signup and view all the answers

    What is typically NOT a focus of managerial innovation?

    <p>Directly modifying physical products (C)</p> Signup and view all the answers

    What distinguishes planned change from reactive change?

    <p>Planned change is implemented in anticipation of future events, whereas reactive change is a response to immediate circumstances. (C)</p> Signup and view all the answers

    Which of the following is NOT an example of planned change?

    <p>Shutting down operations due to unforeseen circumstances. (A)</p> Signup and view all the answers

    What is meant by the 'unfreezing' stage in Lewin's change model?

    <p>Showing individuals why a change is necessary. (C)</p> Signup and view all the answers

    Which factor is considered an internal force for change?

    <p>Worker's attitudes. (B)</p> Signup and view all the answers

    What is a potential consequence of reactive change?

    <p>It may overlook long-term implications. (A)</p> Signup and view all the answers

    What assumption about employees is crucial in organization development?

    <p>Employees desire to grow and develop (C)</p> Signup and view all the answers

    What demonstrates the process of 'refreezing' in Lewin's change model?

    <p>Making the temporary changes permanent and integral. (C)</p> Signup and view all the answers

    Which technique is primarily used to enhance the effectiveness and satisfaction of groups?

    <p>Team building (B)</p> Signup and view all the answers

    What is the main purpose of survey feedback in organizational development?

    <p>To identify employee feelings and suggest changes (B)</p> Signup and view all the answers

    Why might worker's attitudes change as an internal force for change?

    <p>They prefer remote work permanently. (B)</p> Signup and view all the answers

    Which of the following techniques is NOT associated with improving relationships between groups?

    <p>Life and career planning (D)</p> Signup and view all the answers

    Which situation best exemplifies reactive change?

    <p>Restructuring an organization after a decline in sales. (A)</p> Signup and view all the answers

    Which organization development technique helps individuals formulate and integrate their personal goals?

    <p>Life and career planning (D)</p> Signup and view all the answers

    What role does coaching and counseling play in organization development?

    <p>To improve personal views and performance of managers (D)</p> Signup and view all the answers

    Which of the following is a technique used when significant conflict exists within an organization?

    <p>Third-party peacemaking (C)</p> Signup and view all the answers

    Which technique emphasizes a pragmatic approach focusing on individual planning and goal setting?

    <p>Planning and goal setting (B)</p> Signup and view all the answers

    Flashcards

    Organization Change

    Any substantial modification made to a part of an organization, such as work schedules, machinery, or employees.

    External Forces

    Pressures that come from an organization's general environment (e.g., economic trends, technology) or its task environment (e.g., competitors, customers) and force it to adapt its competitive strategies.

    Internal Forces

    Pressures originating within the organization that cause changes to its structure or strategy. They can be responses to external forces.

    What are some examples of external forces?

    Examples of external forces include: economic downturns, technological advancements, changing customer demands, government regulations, increased competition, and social trends.

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    What are some examples of internal forces?

    Examples of internal forces include: changes in leadership, employee turnover, new products or services, internal conflicts, technological advancements within the organization, and company culture.

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    Planned Change

    Change that is intentional and designed to improve organizational performance.

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    Reactive Change

    Change that is implemented in response to a problem or threat, often in a hurried manner.

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    How is planned change different from reactive change?

    Planned change is intentional and designed to improve performance, while reactive change is a response to a problem or threat. Planned change is proactive and deliberate, while reactive change is often hurried and unplanned.

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    Lewin Model - Unfreezing

    The first step in the Lewin Model of change. It involves helping individuals understand why change is necessary.

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    Lewin Model - Implementing Change

    The second step in the Lewin Model of change. It involves actually putting the change into action.

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    Lewin Model - Refreezing

    The final step in the Lewin Model of change. It involves reinforcing and supporting the change so it becomes permanent.

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    Internal Forces for Change

    Pressures that originate within an organization that drive change, like employee attitudes or leadership decisions.

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    External Forces for Change

    Pressures that come from outside an organization that drive change, like competition or economic trends.

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    Worker Attitudes as an Internal Force

    Changes in employee beliefs and feelings toward their jobs can influence organizational change.

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    Resistance to Change

    People often resist change due to factors like uncertainty, threats to their interests, differing perceptions of change's effects, and the disruption of familiar routines and relationships.

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    Uncertainty About Change

    One common reason for resisting change is the lack of information or clarity about the nature, extent, and potential outcomes of the change.

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    Threatened Self-Interests

    Individuals may resist change if they perceive it as a threat to their power, status, or personal gains.

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    Different Perceptions of Change

    Resistance can stem from differing views on the benefits, risks, and impact of change, leading to conflicts and disagreements.

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    Loss in Social Networks

    Change can disrupt existing social connections, friendships, and familiar ways of working, causing emotional discomfort and reluctance.

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    Overcoming Resistance: Participation

    Engaging people in the change process, by allowing them to contribute ideas and voice concerns, can reduce resistance and build support.

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    Overcoming Resistance: Education & Communication

    Providing clear and consistent information about the change, its rationale, and its implementation helps alleviate anxieties and build understanding.

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    Force-Field Analysis

    A tool used to identify and analyze the forces that drive and resist change, helping to focus efforts on removing barriers and strengthening driving forces.

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    Enterprise Resource Planning (ERP)

    A comprehensive information system that integrates and synchronizes numerous business activities across an organization, providing a unified platform for managing data and processes.

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    Business Process Change (Reengineering)

    A radical overhaul of an organization's processes designed to significantly improve cost, service quality, or efficiency.

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    Entropy in Business

    The natural tendency for organizations to decline over time due to stagnation and lack of adaptation to changing conditions.

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    What is the goal of reengineering?

    The goal of reengineering is to achieve major improvements in cost, service, or time by completely redesigning business processes from the ground up.

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    Organization Development (OD)

    A planned, organization-wide effort aimed at increasing organizational effectiveness and health through planned interventions and the use of behavioral science knowledge.

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    What's the purpose of OD?

    The primary goal of OD is to enhance organizational performance and well-being by improving communication, collaboration, conflict resolution, and overall effectiveness.

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    What are the key elements of OD?

    OD often utilizes behavioral science techniques, involves planned interventions, and focuses on improving communication, collaboration, and problem-solving skills within the organization.

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    How does OD relate to change?

    Organization development (OD) is a process that facilitates positive change within an organization by addressing issues such as communication, teamwork, motivation, and conflict resolution.

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    OD Assumptions

    Beliefs about employees in organization development (OD) that guide its approach. These assumptions include employees' desire for growth, need for acceptance, and mutual influence between them and the organization.

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    Team Building Techniques in OD

    Strategies in OD that aim to improve group effectiveness and satisfaction. These include activities designed to enhance communication, cooperation, and problem-solving within teams.

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    Survey Feedback in OD

    A technique where employee surveys are analyzed to identify employee feelings and suggest constructive changes. It helps managers understand morale and make informed decisions.

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    OD Education Techniques

    Training programs in OD that cover both technical and soft skills. These can include classroom instruction, workshops, and simulations aimed at improving employee performance.

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    Intergroup Activities in OD

    OD approaches that focus on enhancing relationships between different groups within an organization. These techniques aim to reduce conflict and promote collaboration.

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    Third-Party Peacemaking in OD

    A technique used in OD to resolve significant conflicts between groups. External mediators facilitate discussions and agreements to achieve resolution.

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    Process Consultation in OD

    Supporting managers to understand and improve organizational processes such as communication, decision-making, leadership, and conflict resolution.

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    Life and Career Planning in OD

    Supporting employees in setting and integrating their personal goals with their career aspirations within the organization.

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    Organization Development

    The systematic process of planned change in an organization to improve its effectiveness, efficiency, and employee well-being.

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    Goal Setting Interventions

    Activities in OD programs that focus on helping managers improve their planning and goal setting processes.

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    Innovation

    A managed effort by an organization to develop new products, services, or applications for existing products and services.

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    Radical Innovation

    A completely new product, service, or technology that replaces existing ones, significantly changing competition in the industry.

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    Incremental Innovation

    A modification of an existing product, service, or technology that doesn't significantly alter competition.

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    Technical Innovation

    Changes to the appearance, performance, or manufacturing process of a product or service.

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    Managerial Innovation

    Changes in the management processes within an organization.

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    What's the difference between radical and incremental innovation?

    Radical innovation completely replaces existing products or technologies, disrupting the industry. Incremental innovation involves minor improvements that don't significantly alter competition.

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    Study Notes

    Fundamentals of Management - Chapter 7: Organization Change and Innovation

    • This chapter covers organization change and innovation.
    • A significant amount of change occurred during the COVID-19 pandemic.
      • Businesses, schools, and universities all adapted to changes in the way they did business.
    • Learning objectives include:
      • Describing organization change, including the forces for planned and reactive change.
      • Discussing the change steps and managing resistance.
      • Describing the major areas of organization change.
      • Discussing the innovation process, forms of innovation, and promoting innovation.
    • 7-1a Forces for Change:
      • Organization Change: Any significant modification to an organization (e.g., schedules, machinery, employees).
      • External Forces: Factors from the environment (e.g., competitors, regulations) that force change.
      • Internal Forces: Factors within the organization that lead to change (e.g., conflict, poor performance). Internal forces can be responses to external pressures.
    • 7-1b Planned Versus Reactive Change:
      • Planned Change: Deliberately designed and implemented in an ordered and timely manner to deal with future events. Examples include increased production for holiday seasons.
      • Reactive Change: A piecemeal response to events as they occur. Often unplanned, potentially executed poorly. Examples include a shut down during a crisis like a pandemic.
    • Knowledge Check 1: Internal force for change is workers' attitudes. External forces are currency exchange rates, competition, and technology.
    • 7-2a Steps in the Change Process (Lewin Model):
      • Unfreezing: Explaining to people why change is necessary.
      • Implementing Change: Putting the change into action.
      • Refreezing: Supporting the change so it's an integral part of the system.
    • 7-2b Understanding Resistance to Change:
      • People resist change due to factors like uncertainty about change effects, self-interest, power dynamics, different perceptions, disruption of social networks, security concerns.
    • Knowledge Check 2: The most practical kind of organizational development for organizations is designed around improving goal-setting; personal growth and organizational growth are also components. Different strategies can be combined.
    • 7-3 Areas of Organization Change:
      • Changing organization structure and design.
      • Changing technology and operations.
        • Changing people, attitudes, and behaviors.
        • Enterprise resource planning (ERP) and enterprise information system (EIS) are information systems designed to synch the many activities within a large organization.
    • 7-3b Changing Technology and Operations (Reengineering):
      • Business Process Change (Reengineering): Radical redesign of all aspects of the organization to achieve major gains in cost, service, or time.
      • The need for this is prompted by entropy, or the decline of a system often due to maintaining status quo and not keeping up with the surrounding environment.
    • 7-3e Organization Development (OD):
      • A planned effort to enhance organizational effectiveness and health.
      • OD uses behavioral science knowledge and includes activities such as diagnostic activities, team building, survey feedback, education, intergroup activities, third-party peacemaking, process consultation, and life and career planning.
    • 7-4 The Innovation Process: Steps involved in developing new products, services, or uses.
      • Development: Evaluating, modifying, and improving a new idea.
      • Application: Applying the idea into a product, service, or process.
      • Launch: Introduction of the new product or service into the market.
      • Maturity: Most competing organizations have access to the developed idea.
      • Decline: Demand for the innovation decreases and substitutes appear.
      • Growth: The demand for the new product or service increases.
    • 7-4b Forms of Innovation:
      • Radical Innovation: A new product, service, or technology that completely replaces an existing one.
        • Incremental Innovation: A change that modifies the original.
        • Technical Innovation: Changes in the product or service itself (e.g., design, quality, or features.
      • Managerial Innovation: Change in how the business runs or is managed.
      • Product Innovation: Changes in the physical product or service.
        • Process Innovation: Changes in how a product or service is manufactured, created, or distributed.
    • 7-4c The Failure to Innovate: Reasons why innovations sometimes (or often) fail include a lack of resources, failure to recognize opportunities, and resistance to change from stakeholders.
    • 7-4d Promoting Innovation in Organizations:
      • Reward system: Encourage behaviors like risk-taking that are beneficial and avoid those that may be inefficient.
      • Organization culture: Strong culture supports innovation.
      • Intrapreneurs: Employees of existing organizations who take on the role of an entrepreneur within the framework of a large organization.

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