Managing Change and Disruptive Innovation
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Questions and Answers

What role does an idea champion play in the context of innovation?

  • They actively resist new ideas and implement them for others.
  • They support new ideas and help implement them despite resistance. (correct)
  • They create innovations independently without support.
  • They oversee the financial implications of innovations only.

Which of the following best defines disruptive innovation?

  • Improvements that are widely accepted without resistance.
  • Innovations that involve minor adjustments to services.
  • Incremental changes in established products.
  • Radical changes that redefine the rules of an industry. (correct)

How does sustaining innovation differ from disruptive innovation?

  • Sustaining innovation consists of small, incremental changes. (correct)
  • Sustaining innovation aims to dismantle existing markets.
  • Sustaining innovation involves major breakthroughs.
  • Sustaining innovation focuses on large-scale changes.

Which example represents a disruptive innovation?

<p>Apple iPod replacing portable radios. (B)</p> Signup and view all the answers

Which of the following pairs correctly identifies an established business and its disruptor?

<p>Uber - traditional taxis (D)</p> Signup and view all the answers

What is a key reason people resist change within an organization?

<p>Fear of loss (C)</p> Signup and view all the answers

Which of the following describes creativity?

<p>Combining ideas uniquely (A)</p> Signup and view all the answers

Which technique involves bringing affected individuals into the decision-making process?

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

What type of organizational structure is favorable for nurturing innovation?

<p>Organic structures (D)</p> Signup and view all the answers

Which cultural variable supports a stimulating environment for innovation?

<p>Tolerance of risks (B)</p> Signup and view all the answers

What does negotiation aim to achieve when addressing resistance to change?

<p>Exchanging something of value (A)</p> Signup and view all the answers

Which of these is NOT a technique used to reduce resistance to change?

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

What combines creativity and implementable solutions in an organization?

<p>Innovation (A)</p> Signup and view all the answers

What is organizational change defined as?

<p>Any alteration of people, structure, strategy, or technology in an organization (D)</p> Signup and view all the answers

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

<p>New organizational strategy (A)</p> Signup and view all the answers

What does the calm waters metaphor represent in managing change?

<p>Unfreezing the status quo, changing, and refreezing (A)</p> Signup and view all the answers

Why is modifying strategy important during organizational change?

<p>Failure to change strategy can undermine success (B)</p> Signup and view all the answers

Which area of change involves altering employee attitudes and behaviors?

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

The lack of environmental stability in the white-water rapids metaphor implies what?

<p>Organizations must adapt continually to survive (A)</p> Signup and view all the answers

What might trigger a change in organizational strategy?

<p>Competition's actions (A)</p> Signup and view all the answers

Which of the following best describes a change agent?

<p>A person who acts as a catalyst for managed change (A)</p> Signup and view all the answers

Flashcards

Idea Champion

A person who actively promotes and implements new ideas, overcoming resistance and ensuring their success.

Disruptive Innovation

Innovations that completely transform an industry by challenging existing norms and creating new rules of the game.

Sustaining Innovation

Small, gradual improvements made to existing products or services, focusing on refinements rather than radical changes.

Disruptive Innovations

Products, services, or processes that significantly alter an industry's dynamics, often displacing established players.

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Sustaining Innovations

Innovations that focus on enhancing existing products or services, often by adding features or improving performance.

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Organizational Change

Any alteration of people, structure, strategy, or technology within an organization.

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Change Agent

An individual who initiates and manages the transition of an organization through change.

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External Forces for Change

Factors influencing change from outside the organization, like new laws or customer demands.

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Internal Forces for Change

Factors influencing change from within the organization, like employee attitudes or new equipment.

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Calm Waters Metaphor

A metaphor for change that assumes a stable environment, with the change process involving unfreezing, changing, and refreezing.

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White-Water Rapids Metaphor

A metaphor for change assuming a turbulent environment with constant adaptation and active management.

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Strategy as an Area of Change

The fundamental approach or course of action an organization employs to achieve its goals.

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Structure as an Area of Change

The organizational structure refers to the division of tasks, authority, and communication within a company.

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Creativity

The ability to combine ideas in a unique way or make unusual associations between ideas.

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Innovation

Taking creative ideas and turning them into useful products or work methods.

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Participation in Change Management

The process of bringing individuals directly affected by change into the decision-making process.

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Education and Communication in Change Management

Helps employees see the logic behind a change effort.

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Facilitation and Support in Change Management

Helping employees cope with fear and anxiety associated with a change.

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Negotiation in Change Management

Exchanging something of value for an agreement to lessen resistance to change.

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Manipulation in Change Management

Distorting facts to make the change appear more attractive.

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Coercion in Change Management

Using threats or force to make people comply with a change.

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Study Notes

Managing Change and Disruptive Innovation

  • Organizational change is any alteration of people, structure, strategy, or technology within an organization.
  • Change agent is someone who catalyzes and manages the change process.
  • External forces for change include consumer needs, governmental laws, technology, and economic conditions.
  • Internal forces driving change include new organizational strategies, workforce composition, new equipment, and employee attitudes.
  • Calm waters metaphor views organizational change as a smooth process. Unfreezing the status quo, changing to a new state, and refreezing to make the change permanent are part of this metaphor.
  • White-water rapids metaphor acknowledges environmental instability and necessitates continuous adaption and change management for survival.
  • Areas of change are categorized as strategy, structure, technology, and people.
  • Strategy change, dictated by circumstances or competition, is vital for success.
  • Structural change involves modifying components and design.
  • Technological change entails updating equipment, tools, methods, automation, and computerization.
  • People's role in change is pivotal, and organizational development methods focus on interpersonal relationships.

Resistance to Change

  • Reasons people resist change: uncertainty, habit, fear of loss, and belief that it clashes with organizational goals.

Techniques for Reducing Resistance to Change

  • Education and communication helps understand the logic of the change.
  • Participation enables affected individuals in decision-making.
  • Facilitation and support helps overcome fear and anxiety.
  • Negotiation involves exchanging something of value to lessen resistance.
  • Manipulation involves subtly distorting facts for better acceptance.
  • Coercion employs direct threats or force against resistors.

Creativity vs. Innovation

  • Creativity is the ability to combine ideas uniquely.
  • Innovation is transforming creative ideas into usable products or methods.

Stimulating and Nurturing Innovation

  • A supportive environment factors include organizational structure, culture, and human resource practices.

Structural Variables

  • Supporting innovation requires organic structures, abundant resources, high interunit communication, minimal time pressure, and work/non-work support.

Cultural Variables

  • To foster innovation, the organization should:
    • Accept ambiguity and impracticality.
    • Maintain low external controls.
    • Tolerate conflict and risks.
    • Prioritize end goals.
    • Foster open systems.
    • Offer positive feedback.

Human Resource Variables

  • Idea champions actively support and implement new ideas, overcoming resistance.
  • Job security is a crucial aspect of fostering innovation.

Disruptive Innovation

  • Disruptive innovation refers to substantial changes in products, services, or procedures within an industry.
  • Sustaining innovation represents incremental enhancements to existing products.

Examples of Past Disruptive Innovators (Exhibit 7.9)

  • The exhibit showcases instances where established businesses were surpassed by disruptive competitors. (Specific examples are presented in the OCR data)

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Description

This quiz focuses on the key concepts of organizational change and the roles of change agents. It explores external and internal forces for change, as well as different metaphors for understanding the change process. Test your knowledge on how organizations adapt to new strategies, technologies, and workforce dynamics.

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