Fundamentals of Management, 7e (Robbins/DeCenzo/Coulter) Chapter Managing Change and Innovation 1) Organizational change can be any alteration in an organization's people, structure, or technology Answer: TRUE Explanation: Organizational change is defined as change in structure, technology, or the people in an organization Diff: Page Ref: 192 Objective: 7.1 2) Change is something that managers strive to eliminate completely Answer: FALSE Explanation: Managers recognize that change is inevitable and cannot be eliminated Rather than try to get rid of change, managers seek to manage change Diff: Page Ref: 192 Objective: 7.1 3) An example of a change in structure is an organization becoming more decentralized Answer: TRUE Explanation: Examples of structural changes include changes in authority, how the organization is coordinated, how jobs are designed, or span of control Diff: Page Ref: 192 Objective: 7.1 4) An example of changes in people would involve a manager widening her span of control Answer: FALSE Explanation: An organizational change in people involves an organization's people changing their attitudes and behaviors Changing a span of control is a structural change in the way a manager relates to subordinates, not a people change Therefore, the statement is false Diff: Page Ref: 193 Objective: 7.1 5) A company changing the way it names computer files would not be an example of a technology change because no new technological equipment was used Answer: FALSE Explanation: A technology change includes changes in equipment or in the way equipment is used Therefore, the new filing procedure would qualify as a technology change, making the statement false Diff: Page Ref: 192 AACSB: Technology Objective: 7.1 Copyright © 2011 Pearson Education, Inc 6) Continuous improvement changes are not considered changes in technology because they are changes that are planned and expected Answer: FALSE Explanation: Whether or not changes are planned and expected does not disqualify them as technological changes Therefore the statement must be false Diff: Page Ref: 192 AACSB: Technology Objective: 7.1 7) An aggressive new competitor in the marketplace is an external force that creates a need for organizational change that companies today frequently face Answer: TRUE Explanation: Competition is an example of external force that creates a need for organizational change Diff: Page Ref: 193 Objective: 7.1 8) New online advertising technology is an external force that creates a need for organizational change when it causes a company to change its advertising strategy Answer: FALSE Explanation: Though the change in ad strategy was an internal change, the force for that change was external, the new computer technology Diff: Page Ref: 193 AACSB: Technology Objective: 7.1 9) Labor markets are an internal force that creates a need for organizational change Answer: FALSE Explanation: When labor markets change, organizations must change with them, so labor markets are an external, not an internal force for change For example, an influx of highly skilled immigrant labor can cause a company to revise its ambitions Diff: Page Ref: 193 Objective: 7.1 10) The decision of an organization to bring in new equipment from the outside is an example of an external force that creates a need for organizational change Answer: FALSE Explanation: The decision to purchase the equipment comes from inside the company Therefore the decision is an internal not an external force that creates a need for organizational change so the statement is false Diff: Page Ref: 194 Objective: 7.1 Copyright © 2011 Pearson Education, Inc 11) In an organization, only a manager can be a change agent Answer: FALSE Explanation: A change agent is someone who effects change While managers are typically the change agents in an organization, any employee can cause organizational change to occur For example, an office-cleaning crew can cause organizational change by changing the way employees need to lock their office doors Diff: Page Ref: 194 Objective: 7.1 12) Consultants are less likely to be change agents than internal managers Answer: FALSE Explanation: Consultants are more likely to be change agents because they are less burdened by the consequences and repercussions of their actions than internal managers Internal managers are more cautious and reluctant to call for change because they have to live with the changes they suggest Diff: Page Ref: 194 Objective: 7.1 13) The "calm waters" metaphor imagines the organization as a large ship crossing a calm sea Answer: TRUE Explanation: The "calm waters" metaphor envisions the organization to be very large and fairly imperturbable, like a large ship The "waves" of the "sea" may affect the ship, but they don't threaten its stability Diff: Page Ref: 195-196 Objective: 7.1 14) Kurt Lewin sees the first step in change as the freezing of the status quo Answer: FALSE Explanation: Lewin sees the first step of change as an unfreezing, not a freezing, of the status quo Diff: Page Ref: 196 Objective: 7.1 15) In Lewin's view, the only way to effect change is to increase the driving forces that direct change away from the status quo Answer: FALSE Explanation: Decreasing the restraining forces that prevent movement away from the equilibrium can also cause change, according to Lewin A third way to effect change is to combine a driving force increase and a restraining force decrease Diff: Page Ref: 196 Objective: 7.1 16) The main idea of the "white-water rapids" metaphor is that change is always destructive Answer: FALSE Explanation: The main idea of the "white water rapids" metaphor is that change is constant, unpredictable, often drastic, but not necessarily destructive, so the statement is false Diff: Page Ref: 197 Objective: 7.1 Copyright © 2011 Pearson Education, Inc 17) In the "white-water rapids" metaphor of change, managers should expect change at any time, and it may last for unspecified lengths of time Answer: TRUE Explanation: The "white water rapids" metaphor sees change as constant, yet at the same time, very erratic and unpredictable Diff: Page Ref: 197 Objective: 7.1 18) The number of managers who face "white water rapids" metaphor conditions is getting smaller Answer: FALSE Explanation: In today's world, "white water" situations are on the increase rather than the decrease, so more, not fewer managers are facing conditions of never-ending disruption Diff: Page Ref: 197 Objective: 7.1 19) Organization development (OD) consists of efforts to help organization members deal with unplanned changes Answer: FALSE Explanation: The statement is false because OD focuses on dealing with planned not unplanned changes Diff: Page Ref: 197 Objective: 7.1 20) One important reason why organization development efforts are needed is that even planned change can be very upsetting to members of an organization Answer: TRUE Explanation: Change is stressful; OD aims to minimize the amount of stress that change causes Diff: Page Ref: 198 Objective: 7.1 21) One reason people resist change is that it substitutes ambiguity for uncertainty Answer: FALSE Explanation: Ambiguity and uncertainty are fairly synonymous so the statement is false People resist change because it tends to replace what is known with uncertainty Diff: Page Ref: 199 Objective: 7.2 22) Change threatens the investment you've already made in the status quo Answer: TRUE Explanation: People who have made a large investment in the status quo, the way things are, are threatened by change that can disrupt that status quo Diff: Page Ref: 199 Objective: 7.2 Copyright © 2011 Pearson Education, Inc 23) Negotiation twists and distorts facts to reduce resistance to change Answer: FALSE Explanation: Manipulation and co-option are the change resistance techniques that twist and distort facts Negotiation relies on trading items of value to placate people who resist change Diff: Page Ref: 201-202 Objective: 7.2 24) Education is a good way to overcome resistance to change due to misinformation Answer: TRUE Explanation: When misinformation or poor communication cause employees to resist change, the situation can often be cleared up by merely educating the employees with regard to the facts Diff: Page Ref: 200 Objective: 7.2 25) A manager who "cherry picks" facts to make change seem less disruptive is using the technique of coercion Answer: FALSE Explanation: Cherry picking facts would be categorized as manipulation, not coercion, so the statement is false Diff: Page Ref: 200 Objective: 7.2 26) A manager who mentions that supervisors might lose their jobs if they don't go along with a change is using the technique of coercion Answer: TRUE Explanation: Coercion involves making direct or indirect threats, so suggesting that people could lose their jobs qualifies as coercion Diff: Page Ref: 200 Objective: 7.2 27) A major disadvantage of coercion is that it is may be illegal Answer: TRUE Explanation: Coercion involves threats and threats can be illegal, especially if they suggest violence Diff: Page Ref: 200 Objective: 7.2 28) Stress can arise from an opportunity Answer: TRUE Explanation: Demands, constraints, and opportunities all can cause people to feel stress Opportunities are stressful because people get anxious when they know a lot is "on the line." Diff: Page Ref: 201 Objective: 7.3 Copyright © 2011 Pearson Education, Inc 29) Stress is not a physiological phenomenon Answer: FALSE Explanation: In fact, stress affects heart rate, blood pressure, hormone levels, and many other physiological states, so the statement is false Diff: Page Ref: 201 Objective: 7.3 30) Stress isn't always bad for an individual Answer: TRUE Explanation: Stress summons up reserves of energy and focus that people can't normally draw on Athletes, for example, rely on stress to get them "up" for the big game Diff: Page Ref: 201 Objective: 7.3 31) Autonomy on the job tends to increase stress Answer: FALSE Explanation: A major cause of stress is lack of control over a situation Autonomy tends to increase a person's sense of control, so autonomy tends to decrease, rather than increase, the amount of stress people typically feel Diff: Page Ref: 202 Objective: 7.3 32) An employee who feels pressure to keep pace with work quotas is experiencing task demand stress Answer: TRUE Explanation: Task demand stress makes employees feel pressure from the demands of the job itself Diff: Page Ref: 202 Objective: 7.3 33) An employee who feels unsettled because he is not sure what his responsibilities are is experiencing role overload stress Answer: FALSE Explanation: Role overload is the condition of having too many different tasks to Role ambiguity is what is described here—not being sure of what one's role is So the statement is false Diff: Page Ref: 202 Objective: 7.3 34) Role conflict is created when an employee does not feel confident that she can achieve her goals Answer: TRUE Explanation: Lacking confidence that one can fulfill expectation is called role conflict There is a conflict between what you are expected to and what you think you can actually Diff: Page Ref: 202 Objective: 7.3 Copyright © 2011 Pearson Education, Inc 35) Type A personality people find it easy to relax Answer: FALSE Explanation: Type A personalities find it hard, not easy to relax They have a constant sense of urgency and tend to always be "pushing" rather than relaxing Diff: Page Ref: 202-203 Objective: 7.3 36) Managers should aspire to eliminate all stress from the work environment Answer: FALSE Explanation: There is no way that a manager can completely eliminate stress from a work environment Demands of the job invariably are associated with various stresses Rather than eliminate stress, managers should seek to manage stress and prevent it from being destructive Diff: Page Ref: 203 Objective: 7.3 37) An effective way to reduce workplace stress is to make sure that employees are appropriately matched to their jobs Answer: TRUE Explanation: Employees who are not well matched to their job can feel either bored or inadequate and "over their heads." Both of these situations are likely to result in poor performance To avoid this kind of stress, managers should make sure that people are well matched to their jobs Diff: Page Ref: 203 Objective: 7.3 38) Creativity is the ability to make unusual and meaningful associations between ideas Answer: TRUE Explanation: Creativity is largely about linking ideas Creative ideas are ideas that fit together in an unexpected way Diff: Page Ref: 204 Objective: 7.4 39) Inspiration marks the first step in the creative process Answer: FALSE Explanation: Inspiration is the third of four steps in the creative process First comes perception, then incubation, followed by inspiration and innovation Diff: Page Ref: 204 Objective: 7.4 40) Organic organizations tend to inhibit innovation Answer: FALSE Explanation: Organic organizations that are informal, decentralized, and unspecialized tend to foster, rather than inhibit, innovation Diff: Page Ref: 205 Objective: 7.4 Copyright © 2011 Pearson Education, Inc 41) Time deadlines tend to increase innovation Answer: FALSE Explanation: Studies have shown that time deadlines tend to decrease innovation Innovation needs to be on its own timetable; trying to force innovation often results in failure Diff: Page Ref: 206 Objective: 7.4 42) Idea champions tend to be risk takers Answer: TRUE Explanation: Traits associated with idea champions include high levels of self-confidence, energy, persistence, and the ability to take risks Diff: Page Ref: 207 Objective: 7.4 43) Change can't be eliminated, so managers must learn to successfully A) avoid it B) ignore it C) work around it D) manage it Answer: D Explanation: D) Since change can't be eliminated, managers must learn to manage it successfully, making that the correct response Avoiding change is impossible, making that choice an incorrect response Ignoring change or trying to work around it would not prevent managers from being affected by change, so those options are incorrect Diff: Page Ref: 192 Objective: 7.1 44) Which of the following is an example of a structural organizational change? A) changing employee attitudes B) changing work practices C) purchasing new work equipment D) changing managerial span of control Answer: D Explanation: D) Changing work practices or obtaining new equipment are examples of changing technology, so those two choices are not correct Changing attitudes is an example of a "people change," so changing employee attitudes is not correct Structural changes involve changing relationships between people within the organization Since span of control changes interpersonal relationships, it qualifies as a structural change so changing managerial span of control is the correct response Diff: Page Ref: 192 Objective: 7.1 Copyright © 2011 Pearson Education, Inc 45) Which of the following is an example of a technology change within an organization? A) forming teams to complete tasks B) workers using new software C) workers wanting to telecommute D) workers wanting flexible hours Answer: B Explanation: B) A technology change requires the organization to change the way work is done Using new software is a change in the method of getting work done, so that choice qualifies as a technology change and is the correct answer Forming teams changes organizational structure, so it is a structural change, not a technology change Workers wanting to telecommute or have more flexible hours are both attitude changes, so they qualify as "people changes," not technology changes Diff: Page Ref: 192 AACSB: Technology Objective: 7.1 46) Which of the following is an organizational "people change"? A) work methods that people use B) authority relationships between people C) attitudes that people have D) job redesign Answer: C Explanation: C) Though work methods, authority relationships, and job redesign all involve people, an organizational change is a "people change" only when it involves changes in attitudes, behavior, expectations, or perceptions of people This makes those three choices incorrect responses and "attitudes that people have" the correct response, because it is the only response that refers to attitudes Diff: Page Ref: 192 AACSB: Analytic Skills Objective: 7.1 47) Which of the following is an organizational structure change? A) the building of a new workshop B) resentment of bosses by employees C) a new way to package chocolate cake D) changing who reports to whom Answer: D Explanation: D) A structure change must alter the relationships between people in an organization Changing who reports to whom alters an authority relationship, so it is a structure change, making it the correct response A new workshop or way to make cake are work method or technology changes, not structure changes, so they are incorrect choices Resentment is an employee attitude change, so it qualifies as a people change, not a structure change Diff: Page Ref: 192 AACSB: Analytic Skills Objective: 7.1 Copyright © 2011 Pearson Education, Inc 48) Which of the following is an organizational technology change? A) purchase of a new backhoe B) employees expecting a raise C) employees accepting a new schedule D) widening of span of control Answer: A Explanation: A) A technology change requires a change in how work is done or what it is done with New equipment qualifies as a technology change, so a new backhoe is the correct response Employees expecting a raise or accepting a new schedule involve attitudes so they are examples of people changes, not technology changes, making both choices incorrect Finally, a span of control change is a structural, not a technology change, so widening of span of control is incorrect Diff: Page Ref: 192 AACSB: Technology Objective: 7.1 49) The Americans with Disabilities Act is an example of which of the following forms of environmental change? A) internal B) technology C) government laws and regulations D) labor markets Answer: C Explanation: C) Since it was issued from the outside by government, the Disabilities Act is clearly an external, not an internal force of change, making "internal" incorrect The act was not initiated by technology or labor markets, so those choices can be eliminated The act was initiated by the government, making "government laws and regulations" the correct response Diff: Page Ref: 193 AACSB: Diversity Objective: 7.1 50) Falling interest rates are an example of what kind of external force that causes a company to need to make an organizational change? A) marketplace competition forces B) government laws and regulations C) labor market forces D) economic forces Answer: D Explanation: D) Falling interest rates not originate in the marketplace, the government, or the labor force, so these choices are incorrect Interest rate drops are caused by changing economic conditions, so "economic forces" is the correct answer here Diff: Page Ref: 193 Objective: 7.1 10 Copyright © 2011 Pearson Education, Inc 115) A head football coach who tries to coach every phase of the team—offense, defense, and special teams—rather than delegate authority is likely to suffer from A) task demand B) interpersonal demand C) role conflict D) role overload Answer: D Explanation: D) The stress from trying to perform too many jobs might cause the coach to suffer from role overload, making that the correct response Task demand would require that the coach be forced to try to meet some difficult goal Interpersonal demand would be created by conflicts with other coaches or players on the team Role conflict would come from trying to meet difficult or unrealistic expectations Diff: Page Ref: 202 AACSB: Analytic Skills Objective: 7.3 116) Which of the following might reduce a sense of task demand stress for a worker? A) overcrowded conditions B) uncomfortably high temperatures in the workplace C) autonomy in the workplace D) close monitoring by her supervisor Answer: C Explanation: C) Evidence shows that the pressure of meeting a difficult goal, task demand, can be reduced by giving the worker autonomy to the job in her own way on her own terms This makes autonomy the correct response All three other choices overcrowded conditions, high temperatures, and close monitoringwould tend to exacerbate the situation and increase rather than decrease task demand stress Diff: Page Ref: 202 AACSB: Analytic Skills Objective: 7.3 117) Which of the following might be a source of stress for an employee who is very happy with her job with respect to the tasks she performs, what is expected from her, and how she is supervised? A) task demands B) role overload C) interpersonal demands D) organizational leadership Answer: C Explanation: C) Since the employee is happy with her work, it is unlikely that task demands or role overload could be causing stress, so those choices are incorrect choices She is also happy with how she is supervised, so organizational leadership is not likely to be a source of stress What could be causing the employee problems are interpersonal demands—conflicts she has with fellow workersmaking that the correct response Diff: Page Ref: 202 AACSB: Communication Objective: 7.3 33 Copyright © 2011 Pearson Education, Inc 118) Anika loves being a professional dancer, but she feels stress from the tension-packed, highpressure, fear-filled atmosphere of her group She is likely to be experiencing stress from A) too much autonomy B) organizational leadership C) role overload D) role ambiguity Answer: B Explanation: B) When the workplace atmosphere has too much pressure, organizational leadership is usually at fault, making that the correct response Role overload or role ambiguity could create stress, but they would not create an atmosphere of tension and fear so they are incorrect responses Too much autonomy can be problematic, but it would also not create a fearful atmosphere, so too much autonomy is incorrect Diff: Page Ref: 202 AACSB: Analytic Skills Objective: 7.3 119) George constantly strives to excel He must always get the highest grade in the class and has a sense of urgency about him at all times George probably has which of the following? A) Type A personality B) Type B personality C) both Type A and Type B personality D) neither Type A nor Type B personalty Answer: A Explanation: A) George is an impatient, driven, and competitive person so he fits the Type A personality profile, making that the correct response Type B personality is incorrect because Type B people have traits that are essentially the opposite of George's traits: laid-back, calm, and relaxed Both Type A and Type B personality is wrong because a single person cannot show both personality traits at once Diff: Page Ref: 202-203 Objective: 7.3 120) Kara is a very relaxed, easygoing person who appears to have all the time in the world She is never too busy to stop and chat for a moment Kara has which of the following? A) Type A personality B) Type B personality C) both Type A and Type B personality D) neither Type A nor Type B personality Answer: B Explanation: B) Kara is a laid-back, relaxed person so she fits the Type B personality profile, making that the correct response Type A personality is incorrect because Type A people have traits that are essentially the opposite of Kara's traits: nervous, driven, and impatient The choice indicating both Type A and Type B personality is wrong because a single person cannot show both personality traits at once Diff: Page Ref: 203 Objective: 7.3 34 Copyright © 2011 Pearson Education, Inc 121) A key to dealing with stress is to recognize that all stress A) leads to dysfunctional work behavior B) can be eliminated from an employee's life C) cannot be eliminated from an employee's life D) originates on the job Answer: C Explanation: C) Managers should keep in mind that only some sources of stress that affect employees' lives originate on the job, so there is little they can to remedy nonwork-related stress This eliminates "originating on the job" as a correct answer Furthermore, managers should keep in mind that all manifestations of stress are not necessarily dysfunctional and even if they were, it would be impossible to eliminate stress from an employee's (or anyone else's) life, so managers should focus on ways to minimize and cope with stress This makes the choice indicating that stress cannot be eliminated the correct response Diff: Page Ref: 203 Objective: 7.3 122) To reduce stress managers need to make sure that employees A) have jobs that match their abilities B) maximize their productivity C) don't work too many hours D) don't work too few hours Answer: A Explanation: A) Different employees get stressed by different situations One employee might enjoy the pressure of a work quota, for example, while it might cause another employee to become anxious and stressed Therefore, there is no set remedy for reducing stress, such as maximizing or minimizing productivity, or working too many hours or too few hours The best policy a manager can take is to try to match the employee's ability to withstand stress to the job that he or she has This makes having jobs that match their abilities the correct response Diff: Page Ref: 203 Objective: 7.3 123) Job redesigns are good ways to reduce stress that employees feel from A) work overload or boredom B) work overload only C) boredom only D) boredom overload Answer: A Explanation: A) When an employee feels stress from too much or too little work to do, the situation can often be fixed by engaging in job redesign, adjusting the workload to provide more or less challenge to suit the individual This makes the choice indicating work overload or boredom the correct response and eliminates all other choices Diff: Page Ref: 203 Objective: 7.3 35 Copyright © 2011 Pearson Education, Inc 124) Stress from an employee's personal life can best be helped by this A) job redesign B) MBO C) employee assistance programs D) performance planning programs Answer: C Explanation: C) An MBO is an example of a performance planning program and both of these options are incorrect because they address performance problems that employees might have, not personal problems Job redesign also addresses work issues, rather than personal problems, so it is incorrect An employee assistance program is set up to aid employees in areas such as personal finance, legal issues, or health, which would help employees with their personal lives, making employee assistance programs the correct response Diff: Page Ref: 203 Objective: 7.3 125) Studies show that personalities show negative effects from stress A) Type A B) Type B C) neither Type A nor Type B D) both Type A and Type B Answer: D Explanation: D) Surprisingly, both Type A and Type B personalities seem to suffer from adverse effects from stress, making that the correct response and eliminating the other responses The main difference between the two types seems to be that Type A individuals seem to display the symptoms of stress while Type B people keep their symptoms to themselves Diff: Page Ref: 203 Objective: 7.3 126) Studies show that employee assistance programs (EAPs) are A) a waste of time and energy B) much too expensive, but sometimes useful C) cost effective and very useful D) not cost effective Answer: C Explanation: C) The three incorrect choices all indicate to one degree or another that EAPs are either not effective at all, or not cost effective In fact, studies have shown that EAPs are highly cost effective, offering savings from up to $16 for every dollar spent on a program This makes cost effective and very useful the correct response and eliminates all other responses Diff: Page Ref: 204 AACSB: Technology Objective: 7.3 36 Copyright © 2011 Pearson Education, Inc 127) refers to the ability to combine ideas in a unique way or to make unusual associations between ideas A) Innovation B) Imagination C) Creativity D) Open-minded thinking Answer: C Explanation: C) Creativity is the ability to put together ideas in novel and meaningful ways, making that the correct response A good imagination and an open mind are requirements for creativity but not identify creativity itself, eliminating these choices as correct responses Innovation, the ability to channel creativity into a useful outcome, is the result of creativity, not creativity itself, so innovation is an incorrect response Diff: Page Ref: 204 Objective: 7.4 128) is the process of taking a creative idea and turning it into something useful A) Innovation B) Imagination C) Creativity D) Inspiration Answer: A Explanation: A) It takes imagination, creativity, and often inspiration to end up with an innovation, which is a useful outcome of some type that results from putting ideas together in a unique and novel way This makes innovation the correct response and eliminates all other responses as correct answers Diff: Page Ref: 204 Objective: 7.4 129) Some people believe that creativity is , while others think that creativity A) quickly and easily learned; slowly learned B) a genuine quality; does not really exist C) inborn; can be learned D) learned; forgotten after childhood Answer: C Explanation: C) The great dichotomy when it comes to creativity is whether it is inborn only or can be learned through training, making "inborn; can be learned" the correct response No credible sources think that creativity does not really exist, is quickly and easily learned, or forgotten after childhood, making these choices incorrect responses Diff: Page Ref: 205 Objective: 7.4 37 Copyright © 2011 Pearson Education, Inc 130) The first step in creativity involves A) making something useful B) seeing things from a unique perspective C) putting ideas together D) consolidation Answer: B Explanation: B) The first step in the creative process is simply about perception, how a person sees things, and what he or she notices This makes "seeing things" the correct response Putting ideas together, consolidating ideas, or actually coming up with a product comes later in the creative process, so all of these choices can be eliminated as correct responses Diff: Page Ref: 205 Objective: 7.4 131) Which of the following steps in the creativity process may take years before the idea finally "gels" and the next step occurs? A) perception B) incubation C) inspiration D) innovation Answer: B Explanation: B) The step in the creative process that involves letting ideas percolate subconsciously in one's mind for a period of time is called incubation Note that incubation can take a very short or very long period of time Perception involves active observing, not allowing ideas to percolate, so it is incorrect Inspiration actually resolves the incubation period and so it comes after incubation Innovation comes at the end of the creative process, much later than incubation, so it is incorrect Diff: Page Ref: 205 Objective: 7.4 132) The moment when all prior efforts in the innovative process successfully come together is known as A) perception B) incubation C) inspiration D) innovation Answer: C Explanation: C) Amazingly, the process of having ideas come together and gel almost always occurs over an extremely short period of time, in most cases it occurs instantaneously This instantaneous recognition of a synthesis of ideas into a new idea is called inspiration, making inspiration the correct response Note that perception and incubation come earlier in the creative process so they are incorrect, while innovation comes after inspiration, so innovation is also incorrect Diff: Page Ref: 205 Objective: 7.4 38 Copyright © 2011 Pearson Education, Inc 133) Using the systems model, managers can promote innovation by having the right A) people and inputs B) people and environment C) outputs and resources D) mechanistic management structure Answer: B Explanation: B) To promote innovation, managers need the right people and the right environment, making that the correct response Outputs are the innovation that managers are looking for, not the way to promote innovation, so that choice is incorrect People and inputs is incorrect because people and inputs are somewhat the same thing, leaving out environment as a prerequisite to innovation A mechanistic management structure is incorrect because evidence shows that a mechanistic structure is the wrong structure for promoting innovation Diff: Page Ref: 205 Objective: 7.4 134) variables are thought to promote innovation A) Structural, human resource, and cultural B) Organic, cultural, and tolerant C) Structural, ambiguous, and tolerant D) Cultural, ambiguous, and tolerant Answer: A Explanation: A) The sets of variables that increase innovation are structural, cultural, and human resource variables, making that the correct response Structural variables include such things as an organic structure with abundant resources Cultural variables include an organization's acceptance of ambiguity and risk Human resource variables include an organization having high job security and creative personnel Each of the incorrect choices fails to include all three sets of variables Diff: Page Ref: 206 Objective: 7.4 135) An innovative organization needs to tolerate because creative ideas sometimes seem foolish at first A) ambiguity B) the impractical C) conflict D) inefficiency Answer: B Explanation: B) Creative people often go through a number of wild or outlandish ideas before they hit on an idea that works For this reason, an innovative organization should have high tolerance for the impractical, making that the correct response Tolerating ambiguity, conflict, or inefficiency may produce creative conditions, but none of these choices involve the ability of an organization to accept seemingly foolish ideas, so they are incorrect Diff: Page Ref: 206 Objective: 7.4 39 Copyright © 2011 Pearson Education, Inc 136) An innovative organization needs to tolerate risk because employees the creative process A) being in physical danger is part of B) being in physical danger is not part of C) making mistakes is not part of D) making mistakes is part of Answer: D Explanation: D) Creativity does not involve physical danger or risk, so both of those choices can be ruled out as correct responses Repeated failure and mistakes are all expected as part of the creative process, so the choice regarding making mistakes being part of the process is the correct response Diff: Page Ref: 206 Objective: 7.4 137) Managers who want creative and innovative employees should A) not place much emphasis on goals B) focus on means rather than ends C) focus on ends rather than means D) stress that there is only one path to a goal Answer: C Explanation: C) Managers who want to promote innovation should focus on ends rather than means In other words, they should place emphasis on goals, not the path that employees take to reach those goals The creative approach is not always a straightforward path, so managers should give employees leeway, keeping track only of destinations and not of means of arriving at those destinations All of these factors together make focus on ends rather than means the correct response and rule out the other responses Diff: Page Ref: 207 Objective: 7.4 138) actively support innovation and every step of the process that leads to innovative ideas A) Idea champions B) Idea managers C) All managers D) Champion managers Answer: A Explanation: A) Managers who promote innovation are termed idea champions, making that the correct response Idea managers and champion managers are not recognized terms for managers who promote innovation "All managers" is incorrect because all managers are clearly not innovative Many managers are in fact indifferent to innovation or even hostile to it Diff: Page Ref: 207 Objective: 7.4 40 Copyright © 2011 Pearson Education, Inc 139) All of the following are common personality characteristics of idea champions EXCEPT A) extremely high self-confidence B) persistence C) energy D) risk aversion Answer: D Explanation: D) Idea champions seem to share a number of characteristics that include high selfconfidence, persistence, and high energy, making those choices incorrect Rather than riskaverse, idea champions tend to be risk takers, meaning that risk aversion is the correct response for this question Diff: Page Ref: 210 Objective: 7.4 140) In a short essay, identify and discuss two external forces that bring about the need for change Answer: The external forces that create the need for change include the marketplace, which can affect companies by requiring them to constantly adapt to changing conditions as new products and rivals appear on the scene For example, a new rival in the marketplace that features lower prices may cause a company to change its production processes Or a new product that comes on the market may cause one of a company's key products to become obsolete The company may then choose to innovate and develop new products to compete with the new product Governmental laws and regulations are a frequent impetus for change Companies must adopt new policies and procedures to deal with laws that are involved in such concerns as pollution, safety, diversity, and compensation For example, a new safety law may dramatically alter the design and production of a new bicycle helmet that a company makes Diff: Page Ref: 193 AACSB: Analytic Skills Objective: 7.1 141) In a short essay, identify and discuss two additional external forces that bring about the need for change Answer: Fluctuation in labor markets can often force managers to make changes Organizations that need special kinds of employees must change their human resource management activities to attract and retain skilled employees in the areas of greatest need For example, if the market suddenly experiences a shortage of highly skilled technical workers, a company may need to change its hiring or compensation practices to make sure it can secure the employees it needs Technological forces can also cause companies to make enormous changes For example, a small publishing company may now find it possible to its own production in-house rather than farm it out to vendors This would require the hiring and training of new staff, the purchase of new facilities, and it would also require managers to learn new skills and techniques Diff: Page Ref: 193 AACSB: Analytic Skills Objective: 7.1 41 Copyright © 2011 Pearson Education, Inc 142) In a short essay, identify and discuss how internal forces can bring about the need for an organization to change Answer: Internal forces originating from the internal operations of an organization or from the impact of external changes can create the need for change in an organization An example of a internal change bringing about the need for other changes occurs when a company decides to restructure For example, a company may decide that it needs to move from a centralized structure to a decentralized structure that features work teams Forming these teams and making them operational and productive would bring about enormous changes in the way a company does business Most internal forces were originally initiated by external forces For example, the company that chooses to decentralize and form work teams most likely made the decision to restructure in this particular way based on some external force For example, losing market share (an external force) might have caused the company to decide to be more innovative This decision to be more innovative in turn brought about the plan to decentralize and form work teams Diff: Page Ref: 194-195 AACSB: Analytic Skills Objective: 7.1 143) In a short essay, describe the "calm waters" view of organizational change Answer: Up until the late 1980s, the "calm waters" metaphor was a fairly accurate description of the situation that most managers faced It's best illustrated by Lewin's three-step description of the change process According to Lewin, successful change can be planned and requires first to unfreeze the status quo, then to change to a new state, and finally to refreeze to make the change permanent In this view any current status quo can be considered a stable equilibrium state To move from this equilibrium, unfreezing is necessary Unfreezing can be thought of as preparing for the needed change Unfreezing can be achieved by increasing driving forces, which are forces that drive change and direct behavior away from the status quo, or by decreasing restraining forces, which are forces that resist change and push behavior toward the status quo, or combining the two approaches Diff: Page Ref: 196-198 AACSB: Analytic Skills Objective: 7.1 144) In a short essay, describe the "white-water rapids" view of organizational change Answer: The "white-water rapids" metaphor assumes that the stable-state equilibrium that serves as the status quo in the "calm waters" metaphor simply does not exist There are no "calm waters" in this view, only tumultuous rapids of various magnitudes and durations Disruptions are the norm, and they are never followed by a permanent return to calm waters or predictable stability Many managers never get out of the rapids They face constant change, bordering on chaos These managers must play a game that they've never played before, and the game is governed by rules that are created as the game progresses Diff: Page Ref: 196-198 AACSB: Analytic Skills Objective: 7.1 42 Copyright © 2011 Pearson Education, Inc 145) In a short essay, discuss why people resist change due to uncertainty Include an example to support your answer Answer: Resisting change due to uncertainty is based on people's fear of the unknown In most cases, change replaces the certainty of what is known with the uncertainty of what is not known People find dealing with unknowns unsettling They like to stick with what is familiar and comfortable For example, when a company instructs its employees to use a new software program the employees are likely to resist the change because they are uncomfortable with learning something new They might resist learning the new program even if it can be shown to be an improvement over the old program They are comfortable with what they have, they suspect (perhaps erroneously) that the new program might not have the same old features that they like and are used to, and so they resist the change Diff: Page Ref: 199-201 AACSB: Analytic Skills Objective: 7.2 146) In a short essay, discuss why people resist change due to the fear of losing possessions Include an example to support your answer Answer: People resist change out of fear of losing items that they already possess after having made considerable investment in the status quo For example, suppose a scientific research company decides to reward employees strictly on new discoveries that they make or contribute to Young, ambitious workers who haven't accomplished much yet might think this is a great idea Older workers who in a sense are resting on accomplishments and status established in the past, however, might see the new system as a threat: they are giving up their old standing and forced to earn their new standing Understandably, these older workers might feel threatened and would resist such a change The preceding helps explain why older workers tend to resist change more than younger workers Older employees have generally invested more in the current system and thus have more to lose by changing Diff: Page Ref: 199-201 AACSB: Analytic Skills Objective: 7.2 147) In a short essay, discuss why people resist change when they think it is incompatible with organizational goals Include an example to support your answer Answer: People sometimes resist change when they think it is incompatible with the goals and interests of their organization For example, an employee at a company might resist the company's decision to stop giving out free turkeys at Thanksgiving The individual might have gained nothing from the turkey program, but she genuinely believes that though the program was costly to run and generated almost no new customers directly, indirectly it generated a lot of good will and in the long run increased employee morale, product loyalty, and ultimately profits Diff: Page Ref: 199-201 AACSB: Analytic Skills Objective: 7.2 43 Copyright © 2011 Pearson Education, Inc 148) In a short essay, explain the three types of organizational change Answer: Organizational changes are typically classified in one of three categories: changes in the people, structure, or the technology of an organization Changing structure includes any change in how a company is organized For example, any changes that involve altering such things as work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization would be changes of structure Changing technology encompasses modifications in the way work is performed or the methods and equipment that are used For example, when an organization obtains new equipment or modifies its production line procedure it is changing the company's technology Organizational change in people refers to changes in attitudes, behaviors, expectations, or perceptions that employees have For example, when employees become committed to a more open, organic, collaborative kind of work culture, an organizational change in people has occurred Diff: Page Ref: 192 AACSB: Technology Objective: 7.1 149) In a short essay, explain organization development (OD) Answer: Organization development (OD) is the effort to assist members of an organization as they deal with a planned change The focus of OD is to constructively change the attitudes and values of organization members so they can accept and embrace planned changes, becoming more effective in achieving the new goals of the organization Diff: Page Ref: 198-199 AACSB: Analytic Skills Objective: 7.1 150) In a short essay, list and explain four common organization development (OD) techniques Answer: Team building activities that help team members learn how each member thinks and works, with the focus of increasing members' trust and openness towards each other Intergroup development changing the attitudes, stereotypes, and perceptions that work groups have about each other Process consultation an outside consultant helps the manager understand how processes are affecting the way work is being done Survey feedbacka technique for assessing attitudes and perceptions, and then clarifying problems employees are encountering Diff: Page Ref: 198-199 AACSB: Analytic Skills Objective: 7.1 44 Copyright © 2011 Pearson Education, Inc 151) In a short essay, explain what stress is and how it arises Answer: Stress is the reaction people have to pressure placed on them from demands, constraints, or opportunities Stress is not always bad Although it is often discussed in a negative context, stress does have a positive value, particularly when it offers a potential gain or opportunity However, stress is more often associated with constraints and demands than positive opportunities A constraint prevents you from doing what you desire; a demand refers to the loss of something desired When you have your annual performance review at work, you feel stress because you confront opportunity, constraints, and demands A good performance review may lead to opportunity—a promotion, greater responsibilities, and a higher salary A poor review may keep you from getting the promotion or even being demoted in some way Just because the conditions are right for stress to surface, however, doesn't always mean it will Two conditions are necessary for potential stress to become actual stress First, there must be uncertainty over the outcome, and second, the outcome must be important to the individual Diff: Page Ref: 201-203 AACSB: Analytic Skills Objective: 7.3 152) In a short essay, discuss some causes of stress and describe some typical symptoms of stress in the workplace Answer: Stress can be caused by personal factors and by job-related factors Clearly, change of any kindpersonal or job-relatedhas the potential to cause stress as it can involve demands, constraints, or opportunities Because organizational changes are frequently created in a climate of uncertainty and around issues that are important to employees, it's not surprising that organizational change is a common stressor Stress is exhibited in a number of ways Stress symptoms can be grouped under three general categories: physical, psychological, and behavioral All of these can significantly affect an employee's work Physical signs of stress include such symptoms as a rise in blood pressure, heart rate, or changes in metabolism Behavioral stress symptoms in the workplace include productivity changes, absenteeism, and substance abuse Psychological symptoms include tension, anxiety, boredom, and procrastination Diff: Page Ref: 201-203 AACSB: Analytic Skills Objective: 7.3 45 Copyright © 2011 Pearson Education, Inc 153) In a short essay, discuss ways that managers can help to reduce job-related stress for their employees Answer: Managerial options to deal with job-related stress begin with job suitability for employees Managers need to make sure that an employee's abilities match his or her job requirements When employees are in over their heads, their stress levels typically will be high A realistic job preview and good communication can minimize stress A performance planning program such as MBO can clarify job responsibilities, provide clear performance goals, and reduce unsettling feelings of ambiguity that employees have through feedback Job redesign is also a way to reduce stress If stress can be traced to boredom or to work overload, jobs should be redesigned to increase challenge or to reduce the workload Redesigns that increase opportunities for employees to participate in decisions and to gain social support have also been found to lessen stress Diff: Page Ref: 203 AACSB: Analytic Skills Objective: 7.3 154) In a short essay, discuss ways that managers can help to reduce stress for their employees that originates outside of the workplace Answer: Stress from an employee's personal life raises two problems First, stress from an employee's personal life can be difficult for the manager to control directly, since the manager has no access to the employee's home life and no way to change the conditions that the employee experiences Second, there are ethical issues to consider when dealing with an employee's personal life Specifically, does the manager have the right to intrudeeven in seemingly innocuous waysin an employee's personal life? If a manager believes that she is not overstepping ethical boundaries and the employee is receptive, there are a two major approaches the manager can consider: employee assistance programs and wellness programs Employee assistance programs can provide counseling, advice and other forms of assistance for employees for troubles that include alcoholism, finances, and legal issues Employee wellness programs can help employees with such things as weight control, smoking, physical fitness, nutrition, and violence issues Diff: Page Ref: 203-204 AACSB: Analytic Skills Objective: 7.3 46 Copyright © 2011 Pearson Education, Inc 155) In a short essay, define and discuss creativity and innovation in the workplace Answer: Creativity refers to the ability to combine ideas and make unusual and meaningful associations between those ideas An organization that stimulates creativity develops unique ways to work or novel solutions to problems Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation An innovative organization is characterized by its ability to channel creativity into useful outcomes When managers talk about changing an organization to make it more creative, they usually mean they want to stimulate and nurture innovation Diff: Page Ref: 204-205 AACSB: Analytic Skills Objective: 7.4 156) In a short essay, discuss the three sets of variables that have been found to stimulate innovation Answer: The three sets of variables that have been found to stimulate innovation are an organization's structure, culture, and human resource practices Structural variables: Research into the effect of structural variables on innovation shows that organic structures positively influence innovation Also, the easy availability of plentiful resources provides a key building block for innovation Third, frequent interunit communication helps break down barriers to innovation Cultural variables: Innovative organizations tend to have similar cultures They encourage experimentation, reward both successes and failures, have few rules, tolerate risks, conflict, and impracticalities, provide lots of positive feedback, and tend to focus on ends rather than means Human resource variables: Within the human resource category, innovative organizations actively promote the training and development of their members so that their knowledge remains current, offer their employees high job security to reduce the fear of getting fired for making mistakes, and encourage individuals to become "champions" of change Diff: Page Ref: 205-206 AACSB: Analytic Skills Objective: 7.4 47 Copyright © 2011 Pearson Education, Inc ... schedule involve attitudes so they are examples of people changes, not technology changes, making both choices incorrect Finally, a span of control change is a structural, not a technology change,... 48) Which of the following is an organizational technology change? A) purchase of a new backhoe B) employees expecting a raise C) employees accepting a new schedule D) widening of span of control... B) A technology change requires the organization to change the way work is done Using new software is a change in the method of getting work done, so that choice qualifies as a technology change