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    Chapter 13 Managing Change and Innovation

    TRUE/FALSE QUESTIONS

    FORCES FOR CHANE

    1. Change is an organizational reality.!Tr"e# ea$%# p& 3'()

    2. The marketplace is an external force of change.(Tr"e# *oderate# p& 3'()

    3. The change in demand for health care technicians is an example of an economic change.!Fa+$e# di,,i-"+t# p& 3'()

    4. Labor markets are an internal force for change.

    !Fa+$e# *oderate# p& 3'()

    T.O IE.S OF THE CHANE 0ROCESS

    . The !calm "aters# metaphor of change is consistent "ith Le"in$s concept of %nfreezing& changing&and refreezing.

    !Tr"e# di,,i-"+t# p& 3')

    '. n the !"hite)"ater rapids# metaphor of change& managers sho%ld expect change at any time& and itmay last for %nspecified lengths of time.

    !Tr"e# *oderate# p& 3')

    MANAIN ORANI2ATIONAL CHANE

    *. +rganizational change can be any alterations in people& str%ct%re& or technology.!Tr"e# *oderate# p& 3()

    ,. -ny manager can be a change agent.!Tr"e# *oderate# p& 3(1)

    . Comp%terization is a technological change that replaces people "ith machines.!Fa+$e# *oderate# p& 3(4# AACS56 Te-hno+og%)

    1/. 0robably the most isible technology changes in recent years hae come thro%gh managers$ effortsto expand corporate financing.

    !Fa+$e# *oderate# p& 3(3# AACS56 Te-hno+og%)

    11. ensitiity training is a method of changing behaior thro%gh %nstr%ct%red gro%p interaction.!Tr"e# ea$%# p& 3(3)

    12. Change threatens the inestment yo%$e already made in the stat%s %o.

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    !Tr"e# ea$%# p& 3(7)

    13. +ne reason people resist change is that it s%bstit%tes ambig%ity for %ncertainty.!Fa+$e# di,,i-"+t# p& 3(7)

    14. egotiation refers to coert attempts to infl%ence& t"isting and distorting facts& or "ithholdinginformation.!Fa+$e# *oderate# p& 3(')

    1. eer negotiate "ith employees as a means of oercoming resistance to change.!Fa+$e# *oderate# p& 3(')

    1'. Cooptation refers to coert attempts to infl%ence.!Fa+$e# *oderate# p& 3(')

    1*. 5anip%lation is the %se of direct threats.

    !Fa+$e# *oderate# p& 3(')

    1,. - ma6or disadantage of coercion is that it is may be illegal.!Tr"e# *oderate# p& 3(')

    CONTEM0ORAR8 ISSUES IN MANAIN CHANE

    1. C%lt%ral change is easier "hen the organizational c%lt%re is strong.!Fa+$e# ea$%# p& 3(()

    2/. - leadership change can facilitate c%lt%ral change.!Tr"e# *oderate# p& 3(9)

    21. The n%mber of employees experiencing 6ob stress in the 7nited tates ranges any"here from 4/ to,/ percent.

    !Tr"e# di,,i-"+t# p& 3()

    22. tress is the physical and psychological tension an indiid%al feels "hen he or she is facing orexperiencing extraordinary demands& constraints& or opport%nities for "hich the o%tcome isperceied to be both %ncertain and important.

    !Tr"e# *oderate# p& 3(:)

    23. n terms of organizational factors& any attempt to lo"er stress leels has to begin "ith employeeselection.

    !Tr"e# *oderate# p& 39)

    '

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    STIMULATIN INNOATION

    24. 8aing creatie people is not eno%gh to get innoatie prod%cts and "ork methods.!Tr"e# *oderate# p& 397)

    2. The three sets of ariables that hae been fo%nd to stim%late innoation are the organization$smanagement& c%lt%re& and technology.!Fa+$e# *oderate# p& 397)

    2'. t%dies hae sho"n that "hen an organization$s str%ct%re proided explicit s%pport for creatiityfrom "ork and non"ork so%rces& an employee$s creatie performance "as enhanced.

    !Tr"e# *oderate# p& 39')

    2*. nnoatie organizations tend to hae dissimilar c%lt%res.!Fa+$e# *oderate# p& 39')

    2,. ndiid%als "ho offer impractical ans"ers to "hat)if %estions are not stifled in an innoatieorganization.

    !Tr"e# *oderate# p& 39')

    2. n an innoatie organization& foc%sing on means to ends s%ggests that there might be seeral rightans"ers to any gien problems.

    !Fa+$e# *oderate# p& 39')

    3/. dea champions are good at gaining the commitment of others to s%pport their mission.!Tr"e# ea$%# p& 39()

    MULTI0LE;CHOICE QUESTIONS

    9or each of the follo"ing choose the ans"er that most completelyans"ers the %estion.

    FORCES FOR CHANE

    31. :eing a manager& "ith no enironmental %ncertainty or threat of competitors$ ne" prod%cts& "o%ldbe relatiely simple "itho%t ;;;;;;;;;;;;;;.a. goernment reg%lationsb. diersityc. c%lt%ral differencesd. organizational change

    !d# *oderate# p& 3'()

    32. 5anaging change is an integral part of ;;;;;;;;;;;;;;.a. top management$s 6obb. middle)leel management$s 6obc. the first)line manager$s 6obd. eery manager$s 6ob

    !d# *oderate# p& 3'()

    *

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    33. The arbanes)+xley -ct of 2//2 is an example of "hich of the follo"ing forms of enironmentalchangehich of the follo"ing is not an external force of changehen grocery stores installed scanners to read the prod%ct price& this "as an example of managing"hat change categoryhich of the follo"ing h%man reso%rce ariables is s%pportie of organizational innoationhistleblo"ersc. dea generatorsd. dea screeners

    !a# *oderate# p& 39()

    1/4. -ll of the follo"ing are common personality characteristics of idea champions except;;;;;;;;;;;;;;.a. extremely high self)confidenceb. persistencec. energyd. risk aersion

    !d# *oderate# p& 39()

    SCENARIOS AN> QUESTIONS

    9or each of the follo"ing& choose the ans"er that most completelyans"ers the %estion.

    FORCES FOR CHANE

    e" deas (cenario

    -ltho%gh e" deas& nc.& has been in b%siness for 3/ years& the company and its employees seeminglyhae been in a constant state of change. Lo%is nyder has been 0resident of e" deas& nc. for the last1 years. B%ring this time& he has had to change the strategic foc%s of the company three times. Theemployees hae become ocal recently abo%t the decrease in their bon%s checks and their desire forincreased profits. t seems as tho%gh his competition is al"ays introd%cing ne" prod%cts into the market&and e" deas& nc.$s niche prod%cts are constantly changing. 5oreoer& the goernment has been actiein passing ne" legislation to increase the control of the prod%ct packaging and prod%ct contents. Thetechnology %sed to man%fact%re the prod%cts has contin%ally changed to make the process moreefficient.

    11/

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    1/. The technology change in the man%fact%ring process of e" deas& nc.$s prod%cts to make theprocess more efficient is the res%lt of a competitor lo"ering its price. Therefore& it "as a(n;;;;;;;;;;;;;;;;.

    a. external force of changeb. internal force of change

    c. marketplace force of changed. economic force of change!a# *oderate# p& 3'(# AACS56 Te-hno+og%)

    1/'. 5r. nyder has had to change the strategic foc%s of the company three times. The change instrategic foc%s of the e" deas& nc.& is a(n ;;;;;;;;;;;;;;.

    a. external force of changeb. internal force of changec. marketplace force of changed. economic force of change

    !

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    MANAIN ORANI2ATIONAL CHANE

    9red 9ryer$s Bon%ts (cenario

    ince the integration of t"o ne" stores in Littleille& 7..& 9red 9ryer$s Bon%ts& nc.& has recognized that

    there is a need for reengineering the entire organization. The main need is to install ne" state)of)the)artkitchen e%ipment in the seen remaining stores& and then dispose of all old e%ipment to a salagedealer at three)fo%rths of the book al%e& or a loss of G2&/// per store. This means that employees "illhae to be trained to operate the ne" comp%ter programmed e%ipment. 9red is setting %p the main storeas a training store. Dmployees from the other stores "ill train at the main store for the days that theirrespectie store$s e%ipment is being conerted. The reg%lar employees from the main store hae theresponsibility of instr%cting the classes or oerseeing the installation of the ne" e%ipment and testingits operation before that store$s employees ret%rn from training. The organization is also implementingteams to replace the old employee reporting system. +rdering of materials "ill no" be done by anintranet among the stores and the corporate p%rchasing f%nction. 9red has promised that no one "ill losehis or her 6ob beca%se of the reengineering organizational changes. 8e estimates that "hen theemployees get to the comp%ter programming training& as many as 1/ percent of the c%rrent employees"ill resign or retire. The planned opening of a ne" store in o"here "ill absorb any !excess#employees d%e to the efficiency of the ne" e%ipment.

    1/. Bo the employees of 9red 9ryer$s Bon%ts& nc.& hae reason to be concerned abo%t thereengineering or to resist the changes that 9red has anno%ncedhattechni%es co%ld he and his agency$s ne" director employ to most effectiely implement changes that"o%ld res%lt in increased prod%ctiity in his department< 8e considered changing three aspects of hisagencyJ the str%ct%re& the technology& and the people.

    113. f the ne" agency director decided to remoe layers in the agency and increase the span ofmanagerial control& this "o%ld be considered changing the ;;;;;;;;;;;;;;;;.a. str%ct%ral designb. selection processc. degree of centralizationd. str%ct%ral components

    !d# *oderate# p& 3(4)

    114. f the agency director decided to shift a"ay from a f%nctional to a prod%ct design& this "o%ld beconsidered changing the ;;;;;;;;;;;;;;;.a. str%ct%ral designb. selection processc. degree of centralizationd. str%ct%ral components

    !a# di,,i-"+t# p& 3(4)

    11. f Colin decided to replace some employee "ork time "ith a telephone men% system& this "o%ldbe considered changing the ;;;;;;;;;;;;;;;.

    a. organizational str%ct%reb. technologyc. peopled. organizational deelopment

    !

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    11'. 9inally& Colin decided his people co%ld benefit from ;;;;;;;;;;;& a method of changingbehaior thro%gh %nstr%ct%red gro%p interaction.

    a. s%rey feedbackb. sensitiity trainingc. team b%ilding

    d. intergro%p deelopment!

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    CONTEM0ORAR8 ISSUES IN MANAIN CHANE

    The 5anagement eminar (cenario

    5andy recently ret%rned from her t"o)day managerial seminar& How to Totally Change Your

    Management and Leadership Style in Two Days. he felt the seminar "as "orthless (as she hadpredicted& b%t it did gie her a chance to think abo%t ho" to change the c%lt%re of her organization. hehad been bro%ght in by the ne" CD+ as a change agent& and she has the a%thority to make an impact.he felt that the recent hostile takeoer by their parent company had shocked eeryone& especially gienthat the entire organization consisted of only 1/ people and had been in b%siness for only years. hefelt that this might be the time to attempt c%lt%ral change "hile eeryone "as still thinking in terms ofchange. -s she tossed her leadership seminar man%al into the "astebasket& she considered "hat her firststep might be and ho" "ell the c%lt%ral change "o%ld "ork.

    12/. +f the follo"ing& "hich is an adantage that 5andy has to implement c%lt%ral changehen yo% take a test at school or hae yo%rann%al performance reie" at "ork& yo% feel stress beca%se yo% confront opport%nity& constraints& anddemands. - good performance reie" may lead to a promotion& greater responsibilities& and a highersalary. :%t a poor reie" may keep yo% from getting the promotion. -n extremely poor reie" mightlead to yo%r being fired. F%st beca%se the conditions are right for stress to s%rface& ho"eer& doesn$tal"ays mean it "ill. T"o conditions are necessary for potential stress to become act%al stress. 9irst&there m%st be %ncertainty oer the o%tcome& and second& the o%tcome m%st be important. tress can beca%sed by personal factors and by 6ob)related factors. Clearly& change of any kindIpersonal or 6ob)relatedIhas the potential to ca%se stress as it can inole demands& constraints& or opport%nities.:eca%se organizational changes are fre%ently created in a climate of %ncertainty and aro%nd iss%es thatare important to employees& it$s not s%rprising that change is a ma6or stressor. tress is sho"n in an%mber of "ays. 9or instance& an employee "ho is experiencing high stress may become depressed&accident prone& or arg%mentatie? may hae diffic%lty making ro%tine decisions? may be easilydistracted? and so on. tress symptoms can be gro%ped %nder three general categoriesJ physical&psychological& and behaioral. -ll of these can significantly affect an employee$s "ork.!*oderate# p& 3(:)

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    13. n a short essay& disc%ss three "ays that managers can help to red%ce stress for their employees.

    An$?er

    Things that managers can do in terms of 6ob)related factors begin "ith employee selection. 5anagersneed to make s%re that an employee$s abilities match the 6ob re%irements. >hen employees are in oer

    their heads& their stress leels typically "ill be high. - realistic 6ob preie" d%ring the selection processcan minimize stress by red%cing ambig%ity oer 6ob expectations. mproed organizationalcomm%nications "ill keep ambig%ity)ind%ced stress to a minim%m. imilarly& a performance planningprogram s%ch as 5:+ "ill clarify 6ob responsibilities& proide clear performance goals& and red%ceambig%ity thro%gh feedback. Fob redesign is also a "ay to red%ce stress. f stress can be traced toboredom or to "ork oerload& 6obs sho%ld be redesigned to increase challenge or to red%ce the "orkload.Eedesigns that increase opport%nities for employees to participate in decisions and to gain social s%pporthae also been fo%nd to lessen stress. tress from an employee$s personal life raises t"o problems. 9irst&it$s diffic%lt for the manager to control directly. econd& there are ethical considerations. pecifically&does the manager hae the right to intr%deIeen in the most s%btle "aysIin an employee$s personallife< f a manager beliees it$s ethical and the employee is receptie& there are a fe" approaches the

    manager can consider. Dmployee co%nseling can proide stress relief. Dmployees often "ant to talk tosomeone abo%t their problems& and the organizationIthro%gh its managers& in)ho%se h%man reso%rceco%nselors& or free or lo")cost o%tside professional helpIcan meet that need. - time managementprogram can help employees "hose personal lies s%ffer from a lack of planning to sort o%t theirpriorities. till another approach is organizationally sponsored "ellness programs.!*oderate# pp& 39;391)

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    STIMULATIN INNOATION

    14/. n a short essay& define creatiity and innoation. ext& disc%ss the three sets of ariables thathae been fo%nd to stim%late innoation.

    An$?erCreatiity refers to the ability to combine ideas in a %ni%e "ay or to make %n%s%al associationsbet"een ideas. -n organization that stim%lates creatiity deelops %ni%e "ays to "ork or noelsol%tions to problems. nnoation is the process of taking a creatie idea and t%rning it into a %sef%lprod%ct& serice& or method of operation. Th%s& the innoatie organization is characterized by its abilityto channel creatiity into %sef%l o%tcomes. >hen managers talk abo%t changing an organization to makeit more creatie& they %s%ally mean they "ant to stim%late and n%rt%re innoation. The three sets ofariables that hae been fo%nd to stim%late innoation are the organization$s str%ct%re& c%lt%re& andh%man reso%rce practices. tr%ct%ral ariablesJ Eesearch into the effect of str%ct%ral ariables oninnoation sho"s fie things. 9irst& organic str%ct%res positiely infl%ence innoation. econd& the easyaailability of plentif%l reso%rces proides a key b%ilding block for innoation. Third& fre%ent inter%nitcomm%nication helps break do"n barriers to innoation. 9o%rth& innoatie organizations try tominimize extreme time press%res on creatie actiities despite the demands of "hite)"ater)rapids)typeenironments. 9inally& st%dies hae sho"n that "hen an organization$s str%ct%re proided explicits%pport for creatiity from "ork and non"ork so%rces& an employee$s creatie performance "asenhanced. C%lt%ral ariablesJ nnoatie organizations tend to hae similar c%lt%res. They enco%rageexperimentation& re"ard both s%ccesses and fail%res& and celebrate mistakes. 8%man reso%rce ariablesJ>ithin the h%man reso%rce category& innoatie organizations actiely promote the training anddeelopment of their members so that their kno"ledge remains c%rrent& offer their employees high 6obsec%rity to red%ce the fear of getting fired for making mistakes& and enco%rage indiid%als to become!champions# of change.!di,,i-"+t# pp& 397;39()