Chapter 11-Change and Innovation: True/False

Chapter 11—Change and Innovation
TRUE/FALSE
1. Organizational change refers to the adoption of a new idea or behavior by an organization.
ANS: T PTS: 1 DIF: 1
NAT: AACSB Analytic | Strategy TYP: F
2. A technological change is related to the organization's production process.
3. Technology change involves the hierarchy of authority, goals, administrative procedures, and
managerial systems.
ANS: F PTS: 1 DIF: 2
4. A product change is a change in the organization's product or service outputs.
5. Creativity is the generation of novel ideas that may meet perceived needs or respond to opportunities
for the organization.
6. The innovation strategy for changing products and technologies that involves designing the
organization to encourage creativity and the initiation of new ideas is known as exploration.
organization to encourage creativity and the initiation of new ideas is known as cooperation.
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Chapter 11: Change and Innovation
8. The innovation strategy for changing products and technologies that involves creating conditions and
systems to facilitate internal and external coordination and knowledge sharing is known as
cooperation.
systems to facilitate internal and external coordination and knowledge sharing is known as exploration.
10. The innovation strategy for changing products and technologies that involves managers putting in
place processes and structures to ensure that new ideas are carried forward for acceptance and
implementation is known as entrepreneurship.
11. Originality, authoritarianism, and disciplined exploration are among the characteristics of the creative
individuals.
12. Centralization and short time horizon are primarily used by creative organizations.
13. The acceptance of mistakes, the freedom to discuss ideas, and the assignment of nonspecialists to
problems are characteristics of creative organizations or departments.
14. One value of the idea incubator is that an employee with a good idea has somewhere to go with it,
rather than having to shop the idea all over the company and hope someone pays attention.
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15. Traditional organizations have an internal culture of playfulness, freedom, challenge, and grass-roots
participation.
16. An idea incubator is in-house program that provides a safe harbor where ideas from employees
throughout the organization can be developed without interference from company bureaucracy or
politics.
17. An approach to innovation that emphasizes shared development of innovations among several
departments is referred to as the horizontal linkage model.
18. A fast-cycle team is a multifunctional, and sometimes multinational, team that works under stringent
timelines and is provided with high levels of resources and empowerment to accomplish an accelerated
product development project.
19. An open team is a multifunctional, and sometimes multinational, team that works under stringent
timelines and is provided with high levels of resources and empowerment to accomplish an accelerated
product development project.
20. Open innovation means extending the search for and commercializing new ideas beyond the
boundaries of the organization and the industry.
21. Idea champions feel very passionate and committed to a new product or idea despite rejection to
others.
22. A person who sees the need for and champions productive change within the organization is called an
idea champion.
23. The person, who, in a creativity contest, is able to develop the greatest number of new and novel
concepts, is called an idea champion.
24. Skunkworks are a separate small, informal, highly autonomous, and often secretive group that focuses
on breakthrough ideas for the business.
NAT: AACSB Analytic | Group Dynamics TYP: F
25. A unit that is separate from the mainstream of the organization and is responsible for developing and
initiating innovations is called a new-venture team.
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26. Skunklabor is a separate small, informal, highly autonomous, and often selective group that focuses on
breakthrough ideas for the business.
27. A new-venture fund provides resources from which individuals and groups can draw to develop new
ideas, products, or businesses.
28. People change refers to a change in the attitudes and behaviors of a few employees in the organization.
29. Culture change refers to a change in the attitudes and behaviors of a few employees in the
organization.
30. Culture change refers to a major shift in the norms, values, attitudes, and mindset of the entire
organization.
31. Training is one of the most frequently used approaches to changing people's mindsets.
32. Organizational development involves the application of behavioral science techniques to improve an
organization's effectiveness and success.
33. Mergers/acquisitions, organizational decline, and conflict management are the three types of current
problems that organizational development managers face.
34. Three of the most popular and effective OD activities are team building, survey feedback, and large-
group interventions.
35. Two of the most popular and effective OD activities are small-group disbanding and large-group
interventions.
36. The idea in the large group intervention is to get a sample of people who may have an interest in the
organization, gather perspectives from the selected parts of the system, and allow the sample to create
a collective future.
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37. The traditional organization development model focuses on the entire system and learning takes place
throughout the whole organization.
38. Refreezing is the reinforcement stage of organization development in which individuals acquire a
desired new skill or attitude and are rewarded for it by the organization.
39. A change agent is an OD specialist who contracts with an organization to facilitate change.
40. The three distinct steps for achieving behavioral and attitudinal change with organizational
development are planning, changing and stabilizing.
41. In the unfreezing step, participants must be made aware of problems and be willing to change.
42. Forces for organizational change exist both in the external environment and within the organization.
43. After the need for change has been perceived, the next part of the change process is implementing
change.
44. A performance gap is a disparity between the performance of the company when compared with a
competitor.
45. The disparity between existing and desired performance levels is the need for change.
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46. Reasons employees resist change include self-interest, lack of understanding and trust, uncertainty, and
different assessments and goals.
47. The lack of information about past events refers to uncertainty.
48. Change, according to Kurt Lewin, was a result of the competition between forced and unforced fields.
49. Large cost savings from reduced inventories and labor savings by needing fewer workers to handle
inventory can be driving forces associated with the implementation of just-in-time inventory control
systems.
50. The communication and education approach for overcoming resistance to change should be used when
the change is technical and the users need accurate information and analysis to understand change.
51. When users have power to resist, coercion tactic should be used for overcoming resistance to change.
52. Two possible tactics for overcoming resistance to change are coercion and negotiation.
53. When a change involves multiple departments, top management support is especially important.
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54. If organizations don’t successfully change and innovate, they die.

NAT: AACSB Analytic | Creation of Value TYP: F
55. Productive innovation refers to innovations in products, services, or processes that radically change an
industry’s rules of the game for producers and consumers.
56. An ambidextrous approach means incorporating structures and processes that are appropriate for both
the creative impulse and for the systematic implementation of innovations.
57. Experimentation refers to the generation of novel ideas that might meet perceived needs or respond to
opportunities for the organization.
58. Research shows that managers in creative companies avoid risk and experimentation.
59. The company that placed first on the 2010 Fast Company List was Facebook.
60. The horizontal linkage model is increasingly important in high pressure business environments that
require rapidly developing and commercializing products and services.
61. Exploration is the aspect of product and technology innovation that involves creating mechanisms to
make sure new ideas are carried forward, accepted, and implemented.
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62. Within the role of inventor, an individual believes in an idea and visualizes its benefits.
NAT: AACSB Analytic | Individual Dynamics TYP: F
63. Two specific tools that can smooth the change process include organizational development and
programs for training and development.
64. Survey feedback enhances the cohesiveness and success of organizational groups and teams.

65. The large-group intervention model typically results in incremental change within an organization.
66. During the changing stage of organizational development, individuals experiment with new behavior
and learn new skills to be used in the workplace.
67. Managers and employees that are most involved in an innovation or potential change are often those
that seem to prefer the status quo.
68. Lack of understanding or trust are common reasons for resistance to change.
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MULTIPLE CHOICE
1. The adoption of a new idea or behavior by an organization is known as organizational
a. change.
b. development.
c. structure.
d. intervention.
e. responsibility.
ANS: A PTS: 1 DIF: 2
2. An example of organizational change is
a. the switch to a new production method.
b. the decision to offer a new product line.
c. the introductions of a new pay for performance system.
d. all of these
e. the switch to a new production method or the decision to offer a new product line.
ANS: D PTS: 1 DIF: 2
3. Successful change requires that organizations be capable of both creating and implementing ideas,
which means the organization must learn to be
a. cordial.
b. rightsized.
c. ambidextrous.
d. compliant.
e. intra-focused.
ANS: C PTS: 1 DIF: 2
4. The generation of novel ideas that may meet perceived needs or respond to opportunities for the
organization is called
a. a search initiative.
b. creativity.
c. an ideal champion.
d. a great idea.
e. strategic analysis.
ANS: B PTS: 1 DIF: 1
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5. Which of the following refers to the generation of novel solutions to perceived problems?
a. Problem solving
b. Organizational development
c. Creativity
d. Brainstorming
e. Perceived solution
organization to encourage creativity and the initiation of new ideas is known as
a. exploration
b. cooperation
c. entrepreneurship
d. idea incubator
e. horizontal linkage
a. exploration
b. cooperation
c. entrepreneurship
d. idea incubator
implementation is known as
a. exploration
b. cooperation
c. entrepreneurship
d. idea incubator
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9. ____ change is a change in the organization's product or service outputs.

a. Technology
b. Product
c. Entrepreneurship
d. Creative
e. Incremental
10. Which of the following is a change in the organization's production process -- how the organization
does its work?
a. Technology
b. Product
c. Entrepreneurship
d. Creativity
e. Incremental
11. A ____ change is related to the organization production process.
a. new product
b. technological
c. structural
d. culture/people
e. competitive
12. All of the following are characteristics of creative individuals EXCEPT
a. originality
b. playfulness
c. curiosity
d. rationality
e. open-mindedness
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13. All of the following are characteristics of creative organizations EXCEPT

a. use of teams.
b. risk taking norms.
c. centralization.
d. long term horizon.
e. loose controls.
14. Which of the following is NOT a characteristic of a creative individual?
a. Conceptual theory
b. Undisciplined exploration
c. Persistence and focused approach
d. Authorization and dependent
e. all of these are characteristic of a creative individual
15. Jackie, a new employee of yours, strikes you as curious, open-minded, and receptive to new ideas.
Keep your eye on Jackie, for she may very well be
a. an outstanding performer.
b. an individual with a high need for achievement.
c. a satisfied employee.
d. a creative individual.
e. none of these.
NAT: AACSB Analytic | Strategy TYP: A
16. Creative organizations
a. are characterized by an unusually high number of routine jobs.
b. are loosely structured.
c. have little ambiguity.
d. have too many layers of management.
e. use a centralized decision making approach.
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17. All of the following are critical innovation strategies for changing products and technologies EXCEPT
a. exploration
b. cooperation
c. entrepreneurship
d. risk propensity
e. all of these are critical innovation strategies
18. Which of the following provides a safe harbor where ideas from employees throughout the company
can be developed without interference from company bureaucracy or politics?
a. An idea champion
b. A sponsor
c. A new-venture team
d. An idea incubator
e. An inventor
19. According to BusinessWeek, in 2010, ____ was ranked as the World's Most Innovative Company.
a. Apple
b. Nintendo
c. Nokia
d. Sony
e. Procter & Gamble
20. Innovation requires the coordination that occurs with the ____.
a. top-down approach
b. bottom-up approach
c. horizontal linkage model
d. time-based approach
e. vertical approach
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21. Shared development of innovations among several departments is emphasized by the ____ approach
to innovation
a. vertical
b. horizontal linkage model
c. top down
d. bottom-up
e. diagonal
22. According to BusinessWeek and Boston Consulting Group, 72% of top executives reported that ____
is a top priority.
a. planning
b. competition
c. organization
d. cooperation
e. innovation
ANS: E PTS: 1 DIF: 2
23. A(n) ____ team is a multifunctional, and sometimes multinational, team that works under stringent
timelines and is provided with high levels of resources and empowerment to accomplish an
accelerated product development project.
a. fast-cycle
b. sponsor
c. new-venture
d. skunkwork
e. invested
24. Which of the following means extending the search for and commercializing new ideas beyond the
boundaries of the organization and even beyond the boundaries of the industry?
a. An idea champion
b. Open innovation
d. An idea incubator
e. An inventor
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25. Today's most successful companies are including ____ directly in the product and service
development process.
a. employees
b. internal buyers
c. competitors
d. customers
e. all of these
26. Which of the following is a person who sees the need for and fights for productive change in an
organization?
a. A creative individual
b. A catalyst
c. An idea champion
d. A sponsor
e. A critic
27. John has tremendous technical skills and frequently comes up with valuable ideas. However, he has
little idea how to promote it within the organization. John is a good example of
a. an inventor.
b. an idea champion.
c. a sponsor.
d. a critic.
e. an in-transition employee.
28. Which of the following describes a person who is passionately committed to a new product of idea
despite rejection by others?
a. An idea champion
b. A sponsor
d. A skunkwork
e. An investor
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29. Ashley has average technical skills but her real strengths lay in visualizing the benefits of other's ideas
and in finding financial and political support for these ideas. Ashley is an excellent example of
a. a critic.
b. a sponsor.
c. an idea champion.
d. an inventor.
e. a bureaucrat.
30. Vivian, as a vice-president of marketing, is far removed from the research and development
department. However, she keeps a close eye on what is happening in R & D and tries to support good
ideas whenever she can by removing unnecessary organizational obstacles. Vivian is a good example
of
a. an inventor.
b. a sponsor.
c. a critic.
d. an idea champion.
e. none of these.
31. The role of the ____ is to prevent people in other roles from adopting a bad idea.
a. critic
b. inventor
c. sponsor
d. ombudsman
e. obstructionist
32. Which of the following is(are) important role(s) to be played during the process of organizational
change?
a. The idea champion
b. The critic
c. The sponsor
d. Inventor
e. all of these
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33. The ____ is a unit separate from the rest of the organization responsible for the development of a
major innovation.
a. new product group
b. matrix group
c. new-venture team
d. vertical group
e. change team
34. Which variation of new venture teams is described as a small separate, informal, highly autonomous,
and often selective group that focuses on breakthrough ideas for the business?
a. An idea champion
b. A sponsor
d. A skunkwork
e. An inventor
35. A fund providing resources from which individuals and groups draw to develop new ideas, products,
or businesses is referred to as a
a. personal fund.
b. development fund.
c. new-venture fund.
d. change fund.
e. mutual fund.
36. ____ refers to a change in the attitudes and behaviors of a few employees in the organization.
a. Organization change
b. Organization development
c. People change
d. Culture change
e. Artifact change
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37. Which of the following refers to a major shift in the norms, values, attitudes, and mindset of the
entire organization?
c. People change
d. Culture change
e. Artifact change
38. Jurgen is one of several middle managers sent to a training course on leadership skills. Through this
effort, the organization is attempting:
c. People change
d. Culture change
e. Artifact change
39. Which of the following is defined by the text as the application of behavioral science knowledge to
improve an organization's health and effectiveness through its ability to cope with environmental
changes, improve internal relationships, and increase problem-solving capabilities?
a. Conflict management
b. Organizational revitalization
c. Organizational development
d. Organizational linkage
e. Horizontal linkage
40. Organizational development can help managers address problems such as merger/acquisitions,
conflict management, and ____.
a. cultural changes
b. force field analysis
c. organizational productivity
d. organizational decline/revitalization
e. none of these
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41. ____ is NOT a type of current problem that organizational development can help address.
a. Mergers
b. Acquisitions
c. Diversification
d. Organizational decline
e. Conflict management
42. There are many organizational development activities, which are effective in solving many different
problems. ____ enhances the cohesiveness and success of organizational groups.
a. Team building
b. Survey feedback
c. Intergroup activities
d. Process-Consultation activities
e. Symbolic management
43. Which of the following is an OD intervention technique in which questionnaires on organizational
climate and other factors are distributed among employees and the results reported back to them by
a change agent?
a. Team building activities
b. Survey feedback activities
c. Intergroup activities
d. Process-consolidation activities
e. Symbiotic leadership activities
44. ____ is an approach that brings together participants from all parts of the organization to discuss
problems or opportunities and plan for major change.
a. virtual-group intervention
b. Traditional organization development
c. Multi-unit intervention
d. Strategic planning committee
e. Large-group intervention
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45. Which of the following is the intervention stage of organization development in which individuals
experiment with new workplace behavior?
a. Refreezing
b. Restating
c. Unfreezing
d. Changing
e. Jumping
46. Which of the following is the reinforcement stage of organization development in which individuals
acquire a desired new skill or attitude and are rewarded for it by the organization?
a. Refreezing
b. Restating
c. Unfreezing
d. Changing
e. Jumping
47. A step in the diagnosis stage of organizational development in which participants are made aware of
problems is referred to as
a. change agent.
b. changing.
c. refreezing.
d. unfreezing.
e. exercising.
48. Organizational development specialists identify three distinct steps for achieving behavioral and
attitudinal changes. These are
a. freezing, changing, and intervention.
b. unfreezing, change agent, and freezing.
c. unfreezing, changing, and refreezing.
d. intervention, refreezing, and change agent.
e. none of these.
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49. At which stage of the change process do managers evaluate problems and opportunities?
a. Monitor forces for change
b. Need for change
c. Initiate change
d. Implement change
e. Internal forces
50. ____ indicates a disparity between existing and desired performance levels.
a. Environmental opportunity
b. Need for change
c. Behavioral occurrence
d. Critical incident
e. Organizational structural imbalance
51. Kyle is seeing, on a regular basis, a difference between current and expected performance levels. She
should begin
a. to gather more data.
b. to implement change.
c. to perceive a need for change.
d. to change the reward system.
e. all of these.
52. Recently, a high level manager at Trophy Trinkets noted a rise in customer satisfaction complaints.
This rise is inconsistent with Trophy's goals in this area. This manager has identified
a. a need for change.
b. a critical incident.
c. a behavioral occurrence.
d. an environmental opportunity.
e. a SWOT analysis.
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53. Cyrus's Resort has proposed some major structural changes within their organization. Some of the
employees fear that they will lose power with the changes. They begin voicing resistance to the
changes. What barrier to change are they exhibiting?
a. Disagreements about the benefits
b. Self interests
c. A lack of understanding and trust
d. Uncertainty
e. Goals and rewards
54. After every quarterly board meeting, Bernice's Bracelets, Inc. announces big changes. They usually do
not follow through on these changes. What is causing this lack of enthusiasm?
b. Self interests
c. A lack of trust
d. Goals and assessments
e. Competitors
55. According to MANAGER'S SHOPTALK in Chapter 11, the eight-step plan for implementing change in
an organization includes all of the following EXCEPT:
a. establish a sense of urgency
b. form a powerful coalition of managers
c. communicate the vision
d. empower others to act on the vision
e. all of these are steps in the plan
56. You are the production manager for Connor's Construction, Inc. You decide to change the production
procedure to increase efficiency. One of your long-time foremen is resisting the change, insisting that
the idea won't work. He is exhibiting what obstacle to change?
a. Different assessment and goals
b. Uncertainty about the future
c. A lack of trust
d. All of these
e. Uncertainty about the future and a lack of trust only
57. Beth's Barnyard, Inc. has decided to restructure the entire organization. You hold a meeting with your
employees to notify them of the change. You do not give them any detailed information. Which of
the barriers to change would you expect your employees to exhibit?
b. Uncertainty about the future
c. A lack of trust
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d. Fear of organizational loss

e. All of these
58. What is force field analysis?
a. The analysis of the forces that drive customers to a certain organization
b. The analysis of the forces that drive the organization of a company
c. The process of determining which forces drive and which resist a proposed change
d. The process by which an organization forces changes to occur
e. none of these
59. Harvest International is anticipating changes in their production procedures. You have been assigned
to identify potential barriers to the change and suggest solutions to these barriers. You are using
a. force field analysis.
b. barrier analysis.
c. negotiation.
d. assessment of goals.
e. all of these.
60. ____ schedule materials to arrive at a company just as they are needed on the production line.
a. Mass customization system
b. LIFO system
c. First-in-First-out system
d. Just-in-time inventory system
e. Last-in-First-out
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61. When trying to overcome the resistance for change, which approach is best suited when change is
technical?
a. Coercion
b. Top management support
c. Negotiation
d. Participation
e. Communication
62. Communication and education tactic to change implementation should be used when
a. initiators clearly have power.
b. group has power over implementation.
c. change is technical.
d. users need to feel involved.
e. group will lose out in change.
63. TooEasy, Inc. is changing from a manual ordering system to a computer-based ordering system. As
part of the implementation procedures, the company invests in detailed, comprehensive training
classes. What approach to change implementation is TooEasy using?
a. Communication and education
c. Participation
d. Coercion
e. Negotiation
64. Which approach should a group use to resist change if the group has power over implementation and
if the group will lose out in the change?
a. Negotiation
c. Participation
d. Coercion
e. Education
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65. Which approach to change implementation should be used when a crisis exists?
a. Education
b. Participation
c. Coercion
d. Top management support
e. None of these
66. The ____ approach to change implementation should be used when users have power to resist.
a. education
b. participation
c. coercion
d. top management support
e. domination
67. ____ uses formal bargaining to win acceptance and approval of a desired change.
a. Education
b. Participation
c. Coercion
d. Negotiation
e. Top management support
68. Sandbox Sally's, Inc. is making some changes to the work schedules of its employees. Some of the
employees are not happy with the changes. As their manager, Harry tells them that they can accept it
or leave. What approach to change implementation is Harry using?
a. Negotiation
c. Participation
d. Coercion
e. Education
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69. Before implementing new changes in work schedules, Trudy's Trinkets works with the union to
ensure a smooth transition. What approach to change is this company using?
a. Negotiation
c. Participation
d. Coercion
e. Education
70. Which of the following symbolizes to all employees that the change is important for the
organization?
a. Education
b. Coercion
c. Participation
d. Negotiation
e. Top management support
71. Of the companies on Fortune magazine’s first list of America’s 500 largest corporations published in
1955, how many survived the next half century?
a. 11
b. 71
c. 231
d. 391
e. 471
NAT: AACSB Analytic | Environmental Influence TYP: F
72. _________ refers to innovations in products, services, or processes that radically change an
industry’s rules of the game for producers and consumers.
a. Restructuring innovation
b. Trickle up innovation
c. Productive innovation
d. Disruptive innovation
e. Reverse innovation
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73. For the compact disc industry, the advent of MP3 technology can best be described as what type of
innovation?
a. Disruptive innovation
b. Service innovation
c. Productive innovation
d. Restructuring innovation
e. Reverse innovation
NAT: AACSB Analytic | Creation of Value TYP: A
74. Sandra works for a bank that is renowned for being the first commercial bank in the United States to
introduce online banking. This can best be described as what type of innovation?
a. Package innovation
b. Product innovation
c. Service innovation
d. Supply chain innovation
e. Human resource innovation
75. Artful Innovations Inc. operates with open channels of communication and an established suggestion
system that encourages brainstorming and freewheeling discussions. Artful Innovations can best be
described as what type of organization?
a. Experimental organization
b. Cooperative organization
c. Entrepreneurial organization
d. Disruptive organization
e. Creative organization
76. The horizontal linkage model is best applied in what type of business environment?
a. Low pressure environment
b. Stable environment
c. Environment that requires speed
d. Customer service environment
e. Manufacturing environment
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77. At LifeCycle Products, a team of individuals from all areas of the company is currently working under
a very strict deadline to develop the company’s newest product. Luckily, the team is provided with a
high level of resources and empowerment from management. This team can best be described as
a(n):
a. Cross-funtional team
b. Fast-cycle team
c. Brainstorming team
d. Skunkwork team
e. New-venture team
78. Cooltown University recently invited members of its social network group to enter a contest on U-
Tube to design the best video promoting the university. This is an example of what innovative
approach?
a. Social group innovation
b. Network innovation
c. Techsourcing
d. Crowdsourcing
e. Insourcing
NAT: AACSB Analytic | Information Technologies TYP: A
79. “The Brain” is a permanent secret group within one of the nation’s largest auto manufacturers.
Members of this elite group focus intently on developing new and innovative automobile
technologies. “The Brain” can best be described as what type of group or team?
a. Cross-functional team
b. Fast-cycle team
c. Brainstorming team
d. Skunkwork
e. New-venture team
80. Left-Right Industries employs a diverse set of individuals with strong personalities. Unfortunately,
this means that there is a great deal of interpersonal disagreement among employees. What
organizational tool would work best in this circumstance to manage conflict?
a. Organizational development
b. Skunkwork
c. Telecommuting
d. Downsizing
e. Small-group innovation
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81. High-Low Productions recently appointed 75 employees and external stakeholders to a temporary
group that would discuss problems and opportunities, and would gather perspectives on changes
that need to take place within the company. High-Low Productions is utilizing which organizational
change tool?
a. Organizational development
b. Skunkwork
c. Telecommuting
d. Focus group
e. Large-group intervention
NAT: AACSB Analytic | Group Dynamics TYP: A
82. Which of the following is a characteristic of the large-group intervention model?
a. Results in incremental change
b. Learning for the small group
c. Addresses the entire system
d. Gradual time frame
e. Limited distribution
83. The final step to be managed in the change process is:
a. Freezing
b. Implementation
c. Intervention
d. Planning change
e. Envisioning change
84. _________ is the lack of information about future events.
a. Uncertainty
b. Risk
c. Worry
d. Stress
e. Change resistance
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85. Inventory managers at SYX Enterprises utilize an inventory control system where materials are
scheduled to arrive just as they are needed on the production line. This is referred to as:
a. Restructuring
b. Force-field control
c. Total quality management
d. Just-in-time inventory control
e. Skunkwork inventory control
NAT: AACSB Analytic | Operations Management TYP: A
CASE
Scenario - Jaimie Hall
The continuing development and improvement of computer information systems has made a powerful
impression on Jaimie Hall, CEO of See-Saw City (SSC). The current computer system at SSC is seven
years old, and while still highly useful and reliable, Jaimie is wondering if a new system would be
more efficient and more useful. Jaimie recognized that some of her managers would prefer to keep the
old system, while others have been requesting that the company update its information capability.
1. Jaimie recognized that creativity is an essential ingredient in developing solutions to organizational
problems. Which of the following is NOT a characteristic of a creative manager?
a. Conceptual fluency and open mindedness
b. Originality
c. Focused approach
d. Commitment
e. all of these are characteristics.
ANS: e
PTS: 1 DIF: 2
NAT: AACSB Analytic | Individual Dynamics KEY: Scenario Questions
TYP: A
11-30
2. Jaimie also recognizes that there are four roles in organizational change. Which of the following is
NOT one of those roles?
a. Inventor
b. Champion
c. Sponsor
d. Investor
e. All of these are included.
ANS: d
PTS: 1 DIF: 2 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A
3. In planning how to implement the new system, Jaimie can anticipate some resistance to the new
system. This resistance can come from all of the following, EXCEPT
a. self interest of the resisting employees.
b. lack of understanding of the new system.
c. uncertainty, or a lack of information.
d. different departments pursuing different goals.
e. all of these can create resistance.
ANS: e
PTS: 1 DIF: 2 NAT: AACSB Analytic |Strategy
4. To overcome the resistance to the new system, Jaimie can use any of the following techniques,
EXCEPT
a. education and communication.
b. participation in designing the system.
c. negotiation.
d. coercion.
e. all of these can be used.
ANS: e
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COMPLETION
1. ____________________ is defined as the adoption of a new idea or behavior by an organization.
ANS: Organizational change
TYP: F
2. A(n) ____________________ is a change in the organization's product or service outputs.
ANS: product change
TYP: F
organization to encourage creativity and the initiation of new ideas is known as
____________________.
ANS: exploration
TYP: F
implementation is known as ____________________.
ANS: entrepreneurship
TYP: F
____________________.
ANS: cooperation
TYP: F
11-32
6. ____________________ is the generation of novel ideas that may meet perceived needs or respond to
opportunities for the organization.
ANS: Creativity
TYP: F
7. ____________________ change is related to the organization's production process, i.e., how the
organization does its work.
ANS: Technology
TYP: F
8. A(n) ____________________ is an in-house program that provides a safe harbor where ideas from
employees throughout the organization can be developed without interference from company
bureaucracy or politics.
ANS: idea incubator
TYP: F
9. The ____________________ model is an approach to product change that emphasizes shared
development of innovations among several departments.
ANS: horizontal linkage
TYP: F
10. A strategy based on the ability to deliver products and services faster than competitors is called
____________________.
ANS: fast-cycle teams
TYP: F
11-33
11. ____________________ means extending the search for and commercializing new ideas beyond the
boundaries of the organization and even beyond the boundaries of the industry.
ANS: Open innovation
TYP: F
12. ____________________ extends the search for and commercialization of new ideas beyond the
boundaries of the organization.
ANS: Open innovation
TYP: F
13. A(n) ____________________ is a person who sees the need for and champions productive change
within the organization.
ANS: idea champion
TYP: F
14. The ____________________ role in organizational change involves providing a "reality test."
ANS: critic
TYP: F
15. A(n) ____________________ is a separate small, informal, highly autonomous, and often secretive
group that focuses on breakthrough ideas for the business.
ANS: skunkwork
TYP: F
16. A(n) ____________________ is a unit separate from the rest of the organization and is responsible for
developing and initiating a major innovation.
ANS: new-venture team
TYP: F
17. ____________________ change is a change in the attitudes and behaviors of a few employees in the
organization.
ANS: People
TYP: F
18. ____________________ change is a major shift in the norms, values, attitudes, and mindset of the
entire organization.
ANS: Culture
TYP: F
19. The application of behavioral science knowledge to improve an organization's health and effectiveness
is known as ____________________.
ANS: organizational development
TYP: F
11-34
20. A type of OD intervention that enhances the cohesiveness of departments by helping members learn to
function as a team is called ____________________.
ANS: team building
TYP: F
21. A type of OD intervention in which questionnaires on organizational climate and other factors are
distributed among employees and the results reported back to them by a change agent is called
____________________.
ANS: survey feedback
TYP: F
11-35
22. An approach that brings together participants from all parts of the organization (and may include key
outside stakeholders as well) to discuss problems or opportunities and plan for major change is called
____________________.
ANS: large-group intervention
TYP: F
23. The second stage in Lewin's change model, ____________________, occurs when individuals
experiment with new behavior and learn new skills to be used in the workplace.
ANS: changing
TYP: F
24. An OD specialist who contracts with an organization to facilitate change is called a(n)
____________________.
ANS: change agent
TYP: F
25. A step in the diagnosis stage of organizational development in which participants are made aware of
problems in order to increase their willingness to change their behavior is called
____________________.
ANS: unfreezing
TYP: F
26. A step in the reinforcement stage of organizational development in which individuals acquire a desired
new skill or attitude and are rewarded for it by the organization is referred to as
____________________.
ANS: refreezing
TYP: F
11-36
27. A disparity between existing and desired performance levels is known as a(n)
____________________.
ANS: need for change
TYP: F
28. ____________________ symbolizes to all employees that the change is important for the organization.
ANS: Top management support
TYP: F
SHORT ANSWER
1. List the three distinct steps for achieving behavioral and attitudinal change.
ANS:
Unfreezing, changing, and refreezing.
TYP: F
2. List the four reasons why employees tend to resist change.
ANS:
Self-interest, lack of understanding and trust, uncertainty, and different assessments and goals.
TYP: F
3. List the five specific tactics that can be used to overcome employee resistance to change.
ANS:
Communication and education, participation, negotiation, coercion, and top management support.
TYP: F
11-37
ESSAY
1. What is organizational change and what are two major areas of change in organizations?
ANS:
Organizational change is the adoption of a new idea or behavior by an organization. Two key aspects
of change in organizations are introducing new products and technologies, and changing people and
culture.
TYP: F
2. Describe the three innovative strategies for new products and technologies.
ANS:
Exploration is the stage where ideas for new products and technologies are born. Managers design the
organization for exploration by establishing conditions that encourage creativity and allow new ideas
to spring forth.
The second stage is cooperation. At this stage, manager need to provide mechanisms for both internal
and external coordination.
The third stage is entrepreneurship which creates mechanisms to make sure new ideas are carried
forward, accepted, and implemented.
TYP: F
3. Describe the five characteristics of creative people and organizations.
ANS:
The five characteristics are conceptual fluency/open mindedness, originality, less
authority/independent, playful and curious, and persistent and committed.
TYP: F
11-38
4. Explain the horizontal linkage model.

ANS:
The horizontal linkage model is defined as an approach to product change that emphasizes shared
development of innovations among several departments. People from various departments, as well as
suppliers and customers, meet frequently in teams and/or task forces to share ideas and solve problems
together.
TYP: F
5. Name and briefly describe the four roles in championing an idea for organizational change.
ANS:
The first role is the inventor, who develops and understands the technical aspects of the idea, but does
not know how to win support for the idea or how to make a business of it. The second role is the
champion, who believes in the idea, sees the benefits, confronts costs, and obtains financial and
political support for the idea. The third role is the sponsor, a higher level manager who removes
organizational barriers and protects the idea within the organization. The fourth role is the critic, who
provides a reality test, looks for shortcomings and defines hard-nosed criteria that the idea must pass.
TYP: F
6. Describe the three distinct stages for achieving behavioral and attitudinal change in an organization.
ANS:
1. Unfreezing is the stage of organization development in which participants are made aware
of problems in order to increase their willingness to change their behavior. This stage is
often associated with diagnosis, which uses a change agent, an OD specialist who contracts
with an organization to facilitate change.
2. Changing is the intervention stage of organization development in which individuals
experiment with new workplace behavior.
3. Refreezing is the reinforcement stage of organization development in which individuals
acquire a desired new skill or attitude and are rewarded for it by the organization.
TYP: F
11-39
7. Explain the concept of force field analysis.

ANS:
Force field analysis was first proposed by Kurt Lewin. He argued that change was the result of the
competition between driving and restraining forces. Driving forces are the forces behind the change
and are supportive of it. Restraining forces resist the proposed change, counterbalancing the driving
forces. To successfully implement change, management should analyze these two sets of forces and
their relative strengths. Management can facilitate successful implementation by reducing the strength
of the restraining forces or by eliminating them.
TYP: F
8. Describe the tactics for overcoming resistance to change.
ANS:
The four tactics for overcoming resistance to change are: (1) communications/education which is used
when change is technical, (2) participation, which is used when the users need to feel involved, (3)
negotiation, which is used when the group has power over implementation, (4) coercion, which is
utilized when a crises exists, and finally (5) top management support, which is use when change
involves multiple departments of reallocation of resources.
TYP: F
11-40

Chapter 11-Change and Innovation: True/False

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Chapter 11-Change and Innovation: True/False

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Chapter 11—Change and Innovation

ANS: T PTS: 1 DIF: 1

54. If organizations don’t successfully change and innovate, they die.

ANS: F PTS: 1 DIF: 2

9. ____ change is a change in the organization's product or service outputs.

13. All of the following are characteristics of creative organizations EXCEPT

d. Fear of organizational loss

4. Explain the horizontal linkage model.

7. Explain the concept of force field analysis.

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