Management Change and Innovation Chapter 7

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Questions and Answers

What role does an idea champion play in the innovation process?

They actively resist change to maintain stability.

They focus solely on developing new technology.

They support new ideas and help implement innovations. (correct)

They monitor competitors for disruptive changes.

Which of the following best describes disruptive innovation?

It significantly alters the industry’s competitive landscape. (correct)

It focuses solely on efficiency improvements.

It is limited to technological advancements only.

It involves gradual improvements to existing products.

What is sustaining innovation primarily concerned with?

Incremental improvements to existing products. (correct)

Radical changes that redefine market standards.

Creating disruptive technologies that challenge competitors.

Introducing entirely new services to the market.

Which of the following pairs is a correct example of a disruptor and the established business it affected?

IBM PC – typewriters Signup and view all the answers

What defines the primary difference between disruptive and sustaining innovations?

Disruptive innovations create new markets, while sustaining innovations enhance existing ones. Signup and view all the answers

What is a primary reason people resist change in organizations?

Fear of loss Signup and view all the answers

Which technique for reducing resistance to change involves direct involvement in decision making?

Participation Signup and view all the answers

Which of the following best describes innovation?

Turning creative ideas into practical applications Signup and view all the answers

What structural variable supports an environment that stimulates innovation?

Abundant resources Signup and view all the answers

What cultural variable is crucial for an organization to foster innovation?

Acceptance of ambiguity Signup and view all the answers

Which of the following is NOT a technique to reduce resistance to change?

Delegation Signup and view all the answers

What characteristic is associated with organic structures in organizations?

Flexibility and adaptability Signup and view all the answers

Which of the following best captures the difference between creativity and innovation?

Creativity is about unique ideas; innovation is about their implementation. Signup and view all the answers

What is the role of a change agent within an organization?

To act as a catalyst and manage the change process Signup and view all the answers

Which of the following is NOT listed as an external force for change?

Employee attitudes Signup and view all the answers

In which scenario is the 'Calm Waters' metaphor applicable?

Making changes permanent after implementing them Signup and view all the answers

What is one of the main areas of change that managers focus on?

Modifying equipment and processes Signup and view all the answers

Which metaphor suggests that organizations need to continually adapt?

White-Water Rapids Metaphor Signup and view all the answers

Failure to change strategy when needed could result in what consequence?

Undermining a company’s success Signup and view all the answers

Which of the following describes an internal force for change?

New organizational strategy Signup and view all the answers

What does the process of 'refreezing' involve in the Calm Waters metaphor?

Reinforcing the change to make it permanent Signup and view all the answers

What distinguishes a disruptive innovation from a sustaining innovation?

Disruptive innovations fundamentally change an industry. Signup and view all the answers

Which of the following is NOT an example of a disruptive innovator?

Nike athletic shoes updating design. Signup and view all the answers

Which of the following is a role of an idea champion in the innovation process?

To ensure that innovations are successfully implemented. Signup and view all the answers

What is a characteristic of sustaining innovation?

It focuses on incremental product improvements. Signup and view all the answers

In which example does disruptive innovation lead to a significant shift in consumer behavior?

eTrade replacing traditional stockbrokers. Signup and view all the answers

What is the primary role of a change agent in an organization?

To manage the change process and act as a catalyst Signup and view all the answers

Which of the following is considered an external force for change?

New governmental laws Signup and view all the answers

In the White-Water Rapids metaphor, what is emphasized regarding change?

The importance of adapting continuously Signup and view all the answers

Which area of change focuses specifically on modifying individual or group beliefs and behaviors?

People Signup and view all the answers

What could result from a failure to adapt organizational strategy in response to competition?

Undermined company success Signup and view all the answers

Which of the following factors is NOT identified as an internal force for change?

Economic downturn Signup and view all the answers

What is the first step in the Calm Waters metaphor for managing change?

Unfreezing the status quo Signup and view all the answers

Why is adapting structural components of an organization important?

To address changes in the organizational environment Signup and view all the answers

What is the primary focus of organizational development methods?

Enhancing interpersonal work relationships Signup and view all the answers

Which of the following is considered a technique for reducing resistance to change?

Education and communication Signup and view all the answers

Which characteristic is NOT typically associated with cultures that stimulate innovation?

High external controls Signup and view all the answers

What best describes the difference between creativity and innovation?

Innovation is implementing creative ideas into useful applications. Signup and view all the answers

What is a common reason people resist change in an organization?

Belief that change may not align with organizational goals Signup and view all the answers

Which structural variable could hinder an environment that stimulates innovation?

Poor resource allocation Signup and view all the answers

What common misconception might lead to misunderstanding the role of participation in reducing resistance to change?

Participation fosters a sense of ownership in change. Signup and view all the answers

Which of the following best represents a misconception about manipulation in the context of reducing resistance to change?

Manipulation encourages honest communication. Signup and view all the answers

Study Notes

Chapter 7: Managing Change and Disruptive Innovation

Organizational change is any alteration of people, structure, strategy, or technology within an organization.
A change agent is someone who catalyzes and manages the change process.
External forces for change include consumer needs and wants, new governmental laws, technology, and the economy.
Internal forces for change include new organizational strategy, workforce composition, new equipment, and employee attitudes.
Calm waters metaphor: change is like a tranquil lake, where change is gradual.
Unfreezing, the first step of change, involves preparing to alter existing patterns.
Changing is the period of transition to a new state.
Refreezing is the final step, creating stability in the new state.
White-water rapids metaphor: rapid, unpredictable change requiring continuous adaptation.

Areas of Change

Managers focus on four main areas of change: strategy, structure, technology, and people.
Strategy: altering the approach to success. Circumstances, competition, and a need for change in strategy can necessitate shifts. Failure to adjust can weaken a company.
Structure: Modifications to an organization's internal design or components.
Technology: Altering processes or equipment through new tools, methods, automation, or computerization.
People: Modifying individual or group beliefs and behaviors, including attitudes and expectations through organizational development.

Why People Resist Change

Resistance stems from uncertainty, habit, fear of loss, and a perception that change opposes organizational goals.

Techniques for Reducing Resistance to Change

Education and communication: Helps employees understand the change's logic.
Participation: Involving affected individuals in decision making.
Facilitation and support: Offering counseling or training to ease anxieties.
Negotiation: Trading something of value for agreement to the change.
Manipulation: Potentially distorting facts to promote the change more attractively.
Coercion: Using direct threats or force against resisters.

Creativity vs. Innovation

Creativity: Combining ideas uniquely.
Innovation: Bringing creative ideas to practical application (products or processes).

Stimulating and Nurturing Innovation

An environment fostering innovation depends on organizational structure, culture, and human resource practices.

Structural Variables

Organic structures: Flexible structures supporting innovation.
Abundant resources: Access to necessary resources.
High interunit communication: Open communication channels.
Minimal time pressure: Avoidance of rushed decisions.
Work and nonwork support: Encouraging innovation beyond work.

Cultural Variables

Acceptance of ambiguity: Comfortable with uncertainty.
Tolerance of the impractical: Encouraging unconventional ideas.
Low external controls: Minimized external restrictions to experimentation.
Tolerance of risks: Accepting the probability of failure.
Tolerance of conflict: Embracing constructive differences.
Focus on ends: Aligning effort with organizational objectives.
Open-system focus: Adapting to external environment changes.
Positive feedback: Supportive responses.

Human Resource Variables

Idea champions: Individuals actively supporting and implementing new ideas.
Job security: Feeling secure in job to encourage risk-taking.

Disruptive Innovation Definition

Disruptive innovation: Innovations dramatically altering industry rules.
Sustaining innovation: Small improvements to existing products/processes.

Exhibit 7.9 Examples of Past Disruptive Innovators

A table displaying various examples of businesses that demonstrated innovative and disruptive practices in different industries.

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Description

This quiz covers Chapter 7 on managing change and disruptive innovation. Learn about the roles of change agents, the forces driving change, and the steps involved in the change process. Test your understanding of key concepts like unfreezing, changing, and refreezing.