ADMN 232 FINAL ACTUAL EXAM QUESTIONS AND ANSWERS

ADMN 232 FINAL ACTUAL EXAM QUESTIONS AND ANSWERS

Organizational Innovation the successful implementation of creative ideas in organizations when entrepreneurial ideas are created inside an existing com- Intrapreneurship pany Creativity the production of novel and useful ideas a difference in the form, quality, or condition of an organization Organizational Change over time begins with the birth of a new technology and ends when that technology reaches its limits and is replaced by a newer substan- Technology Cycle tially better technology. ie. when Henry Ford's Model T replaced horse-drawn carriages or when airplanes replaced trains as a means of crossing Canada a pattern of technological innovation characterized by slow initial S-Curve Pattern of Innovation progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits patterns of innovation over time that can create sustainable com- Innovation Streams petitive advantage a scientific advance or a unique combination of existing technolo- Technological Discontinuity gies creates a significant breakthrough in performance or function (the start of an innovation stream) the phase of a technology cycle characterized by technological Discontinuous Change substitution and design competition (follows technological discon- tinuity) Technological Substitution the purchase of new technologies to replace older ones competition between old and new technologies to establish a new Design Competition technological standard or dominant design a new technological design or process that becomes the accepted Dominant Design market standard (follows discontinuous change) when a new dominant design (ie. a significantly better technology) Technological Lockout prevents a company from competitively selling its products or makes it difficult to do so the phase of a technology cycle in which companies innovate by Incremental Change lowering costs and improving the functioning and performance of the dominant technological design workplace cultures in which workers perceive that new ideas are Creative Work Environments welcomed, valued, and encouraged 1) Challenging work 2) organizational encouragement 3) supervisory encouragement Components of Creative Work Environments 4) work group encouragement 5) freedom

6) lack of organizational impediments requires effort, demands attention & focus, and is perceived as challenging work important to others in the organization a psychological state of effortlessness, in which you become Flow completely absorbed in what you're doing and time seems to pass quickly when management encourages risk taking and new ideas, supports and fairly evaluates new ideas, rewards & recognizes cre- Organizational encouragement ativity, and encourages the sharing of new ideas throughout the company BYOD Bring Your Own Device occurs when supervisors provide clear goals, encourage open Supervisory Encouragement interaction with subordinates, and actively support development teams' work and ideas.

Work group encouragement when group members have diverse experience, educations, and backgrounds and when the group fosters mutual openness to ideas; positive, constructive challenges to ideas; and shared com- mitment to ideas Freedom having autonomy over one's day-to-day work and a sense of ownership and control over one's ideas Remove Impediments internal conflict, power struggles, rigid management structures, and a conservative bias toward the status quo can all discourage creativity.Experiential approach to innovation assumes a highly uncertain environment and uses intuition, flex- ible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding Aspects of experiential approach to innovation 1) Design iterations testing 2) milestones 3) multifunctional teams 4) powerful leaders 5) design iteration a cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype Product prototype a full-scale working model that is being tested for design, function, and reliability Testing a systematic comparison of different product designs or design iterations Advantages of testing

• speeds up and improves the innovation process
• product design strengths & weaknesses become very apparent

uncovers errors early in the design process -

• accelerates learning and understanding by forcing engineers

and product designers to examine hard data about product per- formance Milestones formal project review points used to assess progress and perfor- mance Multifunctional teams work teams composed of people from different departments Powerful leaders are typically more experienced, have high status in the company, and are held directly responsible for the product's success or failure Compression approach to innovation assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation Aspects of the compression approach 1) planning for incremental innovation 2) involving suppliers 3) shortening the time of individual steps using overlapping steps 4) creating multifunctional teams 5) Planning for incremental innovation to squeeze or compress development time as much as possible and the general strategy is to create a series of planned steps to accomplish that goal.Generational Change change based on incremental improvements to a dominant tech- nological design such that the improved technology is fully back- ward compatible with the older technology Involving suppliers delegating some of the preplanned steps in the innovation process to outside suppliers reduces the amount of work that internal development teams must do Using Overlapping steps shortens the development process by reducing delays and waiting times between steps

Organizational decline a large decrease in organizational performance that occurs when companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival Stages of organizational decline 1) Blinded (key managers fail to recognize the internal or external changes that will harm their organization) 2) Inaction (management may recognize the need to change, but still take no action) Faulty action (rather than recognizing the need for fundamental 3) changes, managers assume that if they just run it more strictly, company performance will return to previous levels) 4) crisis (bankruptcy or dissolution is likely to occur unless the company completely reorganizes the way it does business) 5) dissolution (the company is dissolved thru bankruptcy proceed - ings or by selling assets in order to pay suppliers, banks, and creditors) Change forces forces that produce differences in the form, quality, or condition of an organization over time new strategic requirements, which are closely tied to competitor - actions competitor actions - changes in government regulation - new technologies - " The Kiss of Yes" some of the strongest resisters may support the changes in public but then ignore them in private Resistance forces support the existing state of conditions in organizations Resistance to change opposition to change resulting from self-interest, misunderstand- ing and distrust, a low tolerance for change, and time and cost factors Managing organizational change

• Unfreezing (getting the people affected by change to believe that

change is needed)

• change intervention (workers & managers change their behav -

iour & work practices)

• refreezing (supporting & reinforcing the new changes so that

they stick) Managing resistance to change

• education & communication (educate and communicate to em-

ployees about the change) participation (have those affected by the change participate in - planning & implementing)

• negotiation
• top management support (must provide training, resources, and

autonomy needed)

• coercion (formal power & authority )

Common Errors when Leading change Unfreezing Phase

• not establishing a great enough sense of urgency

not creating a powerful enough coalition - Change Phase

• Lacking a vision
• Under-communicating the vision by a factor of ten
• Not removing obstacles to the new vision
• not systematically planning for and creating short-term wins

Refreezing Phase

• declaring victory too soon
• not anchoring changes in the corporation's culture

Core change coalition guides and supports organization change, consists of key em- ployees, managers, board members, customers, and even union leaders