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Questions and Answers

Define organizational change.

The adoption of a new idea or behavior by an organization.

What are two examples of internal forces for change?

  • Production inefficiencies (correct)
  • Competitor actions
  • Customer demands
  • Employee demands (correct)
  • Technological advancements

    • Which of these are examples of external forces for change? (Select all that apply.)

  • Employee morale
  • Economic conditions (correct)
  • Production inefficiencies
  • Technological advancements (correct)
  • Competitor actions (correct)

    • What is one vital area for innovation?

    <p>Introducing new products and technologies.</p> Signup and view all the answers

    Which of these is NOT an innovation strategy?

    <p>Development</p> Signup and view all the answers

    What does exploration involve in terms of organizational design?

    <p>Designing the organization to encourage creativity and the initiation of new ideas.</p> Signup and view all the answers

    What is the primary aim of cooperation in an organization?

    <p>Creating conditions and systems to facilitate internal and external coordination and knowledge sharing.</p> Signup and view all the answers

    What does entrepreneurship entail in terms of management roles?

    <p>Managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation.</p> Signup and view all the answers

    Which of these is NOT an example of an exploration strategy?

    <p>Idea Champions</p> Signup and view all the answers

    Idea Incubators provide a safe space for employees to develop ideas without interference from company bureaucracy.

    <p>True</p> Signup and view all the answers

    Where do ideas for product and technology innovations typically originate?

    <p>Lower levels of the organization</p> Signup and view all the answers

    Open Innovation means limiting the search for new ideas to within the boundaries of the organization.

    <p>False</p> Signup and view all the answers

    What are the three key aspects of product and technology innovation?

    <p>Exploration, cooperation, and entrepreneurship</p> Signup and view all the answers

    What is the role of a champion in the innovation process?

    <p>They believe in the idea, visualize its benefits, confront organization realities, obtain financial and political support, and overcome obstacles.</p> Signup and view all the answers

    What is the role of a sponsor in the innovation process?

    <p>They are high-level managers who remove organizational barriers, approve and protect the idea within the organization.</p> Signup and view all the answers

    What is the role of a critic in the innovation process?

    <p>They provide a reality test, look for shortcomings, and define hard-nosed criteria that the idea must pass.</p> Signup and view all the answers

    What are the characteristics of new venture teams?

    <p>Small, loosely structured, flexible, and provided with space, funding, and freedom.</p> Signup and view all the answers

    What is the essence of skunkworks?

    <p>Highly talented individuals are given the time and freedom to let creativity reign.</p> Signup and view all the answers

    What is the purpose of New Venture Funds?

    <p>They provide resources from which individuals and groups can draw to develop new ideas, products, or businesses.</p> Signup and view all the answers

    What is the key difference between people change and culture change?

    <p>People change focuses on a few individuals, while culture change focuses on the organization as a whole.</p> Signup and view all the answers

    What is the definition of planned change, according to Thomas and Bennis?

    <p>One deliberate design and implements of a structural innovation, a new policy or goal, or a change in operating philosophy, climate, or style.</p> Signup and view all the answers

    Which of these is NOT an example of a technology-related change?

    <p>Implementation of open innovation practices</p> Signup and view all the answers

    Task-related changes primarily focus on improving internal work motivation and high-quality work performance.

    <p>True</p> Signup and view all the answers

    What is the aim of organization development (OD)?

    <p>To improve an organization's health and effectiveness</p> Signup and view all the answers

    Organization development is a reactive process, responding solely to sudden changes or crises.

    <p>False</p> Signup and view all the answers

    What is the primary goal of organization renewal?

    <p>To make it possible for organizations to become or remain viable, adapt to new conditions, solve problems, learn from experiences, and move toward greater organizational maturity.</p> Signup and view all the answers

    Which of these is NOT a step in the typical OD process?

    <p>Performance evaluation</p> Signup and view all the answers

    What is the main purpose of Lewin's Force Field Analysis model?

    <p>To identify the driving forces that support change and the restraining forces that oppose it, helping to analyze the likelihood of successful implementation.</p> Signup and view all the answers

    Resistance to change can only be managed through coercion.

    <p>False</p> Signup and view all the answers

    What are the different ways to overcome resistance to change?

    <p>Education and communication</p> Signup and view all the answers

    What are the classic psychological reactions to change in the order they typically occur?

    <p>Denial, anger, confusion, depression, crisis, acceptance, new confidence.</p> Signup and view all the answers

    Kotter's “Leading Change” book emphasizes the importance of dealing with cultural barriers to change.

    <p>True</p> Signup and view all the answers

    What are some examples of cultural barriers to change?

    <p>Economic well-being</p> Signup and view all the answers

    Organizational barriers primarily stem from a lack of support from top-level management.

    <p>False</p> Signup and view all the answers

    What are some examples of social barriers to change?

    <p>Conformity to norms</p> Signup and view all the answers

    What are some examples of individual barriers to change?

    <p>Homeostasis</p> Signup and view all the answers

    Study Notes

    Managing Change and Innovation

    • Organizational change is adopting new ideas or behaviors within an organization.
    • External forces for change come from the environment, including customers, competitors, technology, economic factors, and international events.
    • Internal forces for change come from internal activities and decisions within the organization.
    • Employee demands, labor union pressures, and production inefficiencies can necessitate organizational change.
    • Increasing competition drives the need for innovation, especially in new products and technologies.
    • This requires substantial organizational changes across all aspects.

    Innovation Strategies

    • Exploration involves designing the organization to encourage creativity and initiating new ideas.
    • This includes elements like creativity, experimentation, and idea incubators.
    • Cooperation involves creating systems for internal and external coordination, promoting knowledge-sharing, and encouraging collaboration with customers, partners, and others.
    • Entrepreneurship creates processes for accepting and implementing new ideas.
    • This includes identifying champions, creating new venture teams, and skunkworks.

    Exploration

    • Exploration is the stage where ideas for new products and technologies are generated.
    • Managers establish conditions fostering creativity and allowing new ideas to emerge.
    • Creativity is the generation of novel ideas.
    • Experimentation includes diverse trials and tests.
    • Idea incubators: safe havens for employee ideas away from company politics and bureaucratic hurdles.

    Cooperation

    • Cooperation provides internal and external coordination mechanisms.
    • Ideas often originate at lower organizational levels and need cross-departmental collaboration.
    • External collaborations with customers, strategic partners, and suppliers are vital.
    • Open innovation extends the search for new ideas beyond organizational boundaries.

    Entrepreneurship

    • Entrepreneurship ensures the implementation of innovations.
    • Managers support entrepreneurial activities, empower employees, and reward risk-taking.
    • Championing an idea includes playing various roles (inventor, champion, sponsor, critic).
    • The inventor understands the technical aspects of the idea.
    • The champion believes in the idea and proactively promotes it.
    • The sponsor supports the idea from a high-level.
    • The critic evaluates feasibility.

    New Venture Teams

    • Teams focused on innovation, separated from the main organization for maximum creativity.
    • Characteristics: compact, flexible, autonomous structures for fast-tracking ideas.

    Skunkworks

    • Informal, highly autonomous, and secretive groups focused on breakthrough ideas.
    • Talented individuals are provided time and freedom to foster creativity.

    New Venture Funds

    • Provide resources for innovative ideas.

    Organization Development

    • Planned, systematic change process enhancing organizational health and effectiveness.
    • Addresses human and social aspects of organizations and their ability to adapt.

    Organization Renewal

    • Initiating, creating, and confronting changes to adapt to changing environments.
    • Aims to maintain viability and organizational maturity.

    Planned Change Process

    • Process with stages including identifying needs, examining elements of change, planning change, assessing change forces, taking action, and ongoing feedback.
    • Iterative model involving initial diagnosis, action steps, and continuous improvements.

    Resistance to Change

    • Employees might resist change due to various factors which must be addressed through communication, education and support.
    • Classic psychological reactions to change can include denial, anger, confusion, depression, and then finally acceptance.
    • Cultural, organizational, and individual barriers to change also exist.

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