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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</p> Signup and view all the answers

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

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

    What is a primary goal of organization development?

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

    What can promote innovation within an organization?

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

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

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

    Which action can help overcome resistance to change?

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

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

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

    What perception commonly leads to negative feelings about change?

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

    How can management effectively communicate about the change process?

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

    What role does education play in the change process?

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

    What does business process change, or reengineering, involve?

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

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

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

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

    <p>Organizational effectiveness and health</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.</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.</p> Signup and view all the answers

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

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

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

    <p>Behavioral science knowledge</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</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.</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</p> Signup and view all the answers

    How is Organization Development typically managed within an organization?

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

    What is typically NOT a focus of managerial innovation?

    <p>Directly modifying physical products</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.</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.</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.</p> Signup and view all the answers

    Which factor is considered an internal force for change?

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

    What is a potential consequence of reactive change?

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

    What assumption about employees is crucial in organization development?

    <p>Employees desire to grow and develop</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.</p> Signup and view all the answers

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

    <p>Team building</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</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.</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</p> Signup and view all the answers

    Which situation best exemplifies reactive change?

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

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

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

    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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