Chapter 11: Managing Change and Innovation – Flashcards

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Organizational change
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Adoption of a new idea or behavior by an organization
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Why do people resist change?
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-Self-interest -Lack of understanding and trust -Uncertainty -Different assessments and goals
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Biggest obstacle to organizational change
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Fear of personal loss
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Disruptive Innovation
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Innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers
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Reverse Innovation
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Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repacking them for sale in developed countries.
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Ambidextrous Approach
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Incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations
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Product change
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change in the organization's product or service outputs. Primary way organizations adapt to changes in markets, tech, and competition
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Technology changes are designed to...
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make the production of a product or service more efficient
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Three strategies for changing technologies and products
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Exploration: Creativity, new ideas Cooperation Innovative roles: new ideas are carried forward for acceptance and implementation
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Creativity
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Generation of novel ideas that might meet perceived needs or respond to opportunities for the organization
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Research shows that successful innovations are often accompanied by...
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a high rate of failure
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Who are the top three innovative companies?
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Nike, Amazon, and Square
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Bottom-up Approach
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Encouraging the flow of ideas from lower levels and making sure that they get heard and acted upon by top executives
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On average, a U.S. employee's ideas are implemented only once every...
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six years
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Idea Incubator
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Mechanism that provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics
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What does keeping research and manufacturing close together help companies do?
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Be more innovative
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Innovative Company Characteristics
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-People in research/marketing actively work with customers -Tech. specialists are aware of recent developments and make use of new tech -Shared new product development process is advocated/supported by top management and cuts across functions -Each project has a core cross-functional team
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Horizontal Linkage Model (Internal)
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-Research, manuf., sales, and marketing departments simultaneously contribute to new products and technologies -Important in a high-pressure environment
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80% of successful innovators...
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periodically test and validate customer preferences during development of new products and services
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Open innovation (External)
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Extending the search for and commercialization of new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry, sharing knowledge and resources with other organizations and individuals outside the firm
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Crowdsourcing
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Using the internet to allow thousands of people to contribute to the innovation process
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Innovation by acquisition
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-Buy start-up companies to obtain the innovative products and services and talent -Recognizes the cutting edge of innovation in young, small companies
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Idea Champion
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Person who sees the need for and champions productive change within the organization
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Managers can influence entrepreneurship by...
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-Supporting entrepreneurship activities -Giving employees autonomy -Rewarding learning and risk-taking
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New-Venture Team
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Unit separate from the rest of the organization that is responsible for developing and initiating a major innovation. -Small, loosely structured, flexible
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Skunkworks
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-Type of new-venture team -Separate, small, informal, highly autonomous, secret groups -Focuses on breakthrough ideas
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The original skunkworks was created by...
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Lockheed Martin
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New-venture Fund
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Provides resources to develop new ideas, products, or businesses -support from senior managers are important
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People Change
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Concerns just a few employees, such as sending a handful of middle managers to a training course to improve their leadership skills
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Culture Change
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Pertains to the organization as a whole
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Two tools to help culture change
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Training and Development, and organizational development (OD)
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Organizational Development
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Planned, systematic process of change that uses behavioral science knowledge and techniques to improve an organization's health and effectiveness through its ability to adapt to the environment, improve internal relationships, and increase learning and problem-solving capabilities
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Problems that OD helps address
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-Mergers/acquisitions -Organizational decline/revitalization -Conflict management
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OD Activities
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Team-building Survey Feedback Large-group Intervention
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Traditional Organizational Development Model
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-Specific problem or group -Distrib. = limited -time frame is gradual -learning is individual, small groups
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Large-Group Intervention Characteristics
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-Focuses on entire system -Distrib = widely shared -time frame is fast -learning is whole organization
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OD Steps
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1) Unfreezing 2) Changing 3) Refreezing
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Unfreezing
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-Makes people be aware of problems and need for change -Establishes sense of urgency -Uses a diagnosis and change agent
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Change agent
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OD specialist that performs a systematic diagnosis of the organization and identifies work-related problems
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Changing stage of OD
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-Individuals experiment with new behavior and skills (intervention) -Involves emotion and logic
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Refreezing
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-When individuals acquire new attitudes or values and are rewarded by the firm -New behaviors and evaluated and reinforced
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Need for change
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Disparity between existing and desired performance levels
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Force-field Analysis
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-Kurt lewin -Change is result of the competition between driving and restraining forces -Driving: problems/opps that motivate change in firm -Restraining: Barriers to change
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Implementation Tactics
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-Top Management Support -Communication and Education -Participation -Negotiation -Coercion
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Top management support is especially important when...
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A change involves multiple departments or when resources are being reallocated among departments
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Communication, Education
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-Change is technical -Users need accurate info and analysis to understand change
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Participation
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-Need to feel involved -Design requires info from others -Users have power to resist
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Negotiation
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-Group has power over implementation -Group will lose out in the change
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Coercion
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-A crisis exists -Initiators clearly have power -Other implementation techniques have failed -Last resort
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