Deck 8: Fostering Innovation

Question 1

When CEOs were asked to rank their sources for new ideas, their primary sources were employees, then business partners, then other firms.

Answer 1

False

Question 2

During the entrepreneurial stage of the life cycle, the decision making remains the responsibility of the CEO or senior managers.

Answer 2

False

Question 3

There are two general categories of change: reactive change and progressive change.

Answer 3

False

Question 4

The first principle of product development suggests that a mistake managers make in product development is that too many new projects are started at once.

Question 5

Process consultation, team building and techno-structural activities are all major techniques used in the intervention step of organisational development (OD).

Question 6

Structure, technology, human resources and culture are key components of organisations that are usually altered by significant changes and/or innovations.

Question 7

Change and innovation aimed at altering the knowledge, skills, perceptions and behaviours needed to do the job is usually achieved by changing the organisational culture.

Question 8

In distinguishing between change and innovation, it would be correct to say that change:

A) is more specialised than innovation.
B) is the application of a new idea.
C) refers to any alteration of the status quo.
D) always implies some innovation.

Question 9

Kanter has identified a number of distinctive combinations of characteristics of innovation. Which of the following is not one of them?

A) Innovation tends to be knowledge-intensive.
B) Innovation usually involves little uncertainty.
C) Often, innovation is controversial.
D) Innovation frequently crosses boundaries of multiple units within an organisation.

Question 10

Innovation may cross boundaries, therefore, increasing complexity. Sinclair and McCallum (2003) suggest that managers must:

A) delay the planning stage to ensure all information has been gathered.
B) maintain status quo.
C) ensure that resources will not be utilised from other areas.
D) understand the major aspects of change.

Question 11

Many forces lead to internal change and innovations. Which statement below is not one of the identified forces?

A) Ethical difficulties with the employee behaviours.
B) Technological and leadership behaviours.
C) Unexpected or unplanned changes.
D) Change in innovation decisions.

Question 12

There are four major stages of development that organisations face in the life-cycle model. Which of the following is not one of those stages?

A) Reactive
B) Formalisation and control
C) Elaboration of structure
D) Collectivity

Question 13

During the entrepreneurial stage of the life cycle of organisations, the organisation structure is characterised as being:

A) fairly centralised.
B) non-bureaucratic.
C) proactive.
D) self-contained.

Question 14

Of the four stages identified in the life cycle of organisations, the stage which usually exhibits the strongest sense of group identification and mission is:

A) entrepreneurial.
B) collectivity.
C) formalisation and control.
D) elaboration of structure.

Question 15

Renewals, maintenance or decline are all outcomes of which stage?

A) Elaboration of structure stage
B) Overcoming resistance stage
C) Entrepreneurial stage
D) Innovation stage

Question 16

The stage in the life-cycle model of organisational development in which it first becomes apparent that entrepreneurs often do not have the ability to manage bigger firms is the:

A) entrepreneurial stage.
B) collectivity stage.
C) formalisation and control stage.
D) elaboration-of-structure stage.

Question 17

The stage in the life cycle of organisations in which innovation is replaced by a more conservative stance where risk taking and innovation may be discouraged is the:

A) formalisation and control stage.
B) entrepreneurial stage.
C) elaboration-of-structure stage.
D) collectivity stage.

Question 18

Which of the following does not represent characteristics of the formalisation stage?

A) Complacency
B) Efficiency
C) Enhancement
D) Centralisation

Question 19

A number of major dysfunctions can occur in organisations that are not successfully revitalised during the elaboration-of-structure stage of the life cycle model of organisations. Which of the following is not one of these dysfunctions?

A) Uncontrollable growth
B) Turnover
C) Scapegoating
D) Conflict

Question 20

Methods of organisational termination may include the sale or dissolution of an entire organisation as well as:

A) seeking protection from creditors.
B) combining two or more organisations into one.
C) purchasing a part of another organisation.
D) All of the given answers are correct

Question 21

Reactive change may be necessary when:

A) managers cannot anticipate every problem.
B) there is a perceived problem or threat.
C) an opportunity exists.
D) All of the given answers are correct

Question 22

Managers dramatically increase their chances of making serious mistakes (because they continually make changes without proper planning) when they habitually operate in:

A) a reactive mode.
B) an aggressive mode.
C) a decentralised mode.
D) an acquisition mode.

Question 23

Certain steps have been identified in the process whereby managers engage in planned innovation and change. The first of these steps is:

A) diagnosing the situation and generating ideas.
B) planning to overcome resistance.
C) formalisation and control.
D) perceiving an opportunity or a problem.

Question 24

Ettorre states that 'to achieve change and innovation, it is important to develop a picture of the future that is appealing to those who must support the process'. To which step in the eight-step model to achieve change and innovation does this comment refer?

A) Empower others to act out the vision
B) Develop and communicate a vision
C) Gain recognition of an opportunity or a problem
D) None of the given answers is correct

Question 25

Why are powerful sponsors important?

A) To influence others for support
B) To identify potential problems
C) To reduce the likelihood of too many resources hindering progress
D) To develop a picture of the future

Question 26

Drucker cautions that during the first step in the process of implementing planned change and innovation, managers often focus too much on immediate problems and too little on:

A) current emergencies.
B) the proposal presentations.
C) overcoming resistance.
D) opportunities.

Question 27

The final step in the eight-step model for planned innovation and change is:

A) consolidating improvements.
B) planning for and rewarding visible progress.
C) monitoring and institutionalising the changes.
D) presenting the report.

Question 28

Which of the following is not one of the three characteristics of organisational development (OD)?

A) OD is a planned effort
B) OD is managed by individuals and their immediate supervisors
C) OD uses a third party or outside change agents
D) OD focuses on an entire organisation or improving working relationships within it

Question 29

The ____________ step in the organisational development (OD) process involves research:

A) forecasting
B) diagnosis
C) intervention
D) evaluation

Question 30

The major focus of organisational development (OD):

A) should be reasonably narrow, such as focusing on one or two problem departments or major sub-units within the organisation.
B) is environmental scanning, so that the organisation is familiar with just what it is the competition is doing today.
C) should be to increase the long-run effectiveness, although immediate problems may be solved along the way.
D is self-discovery and self-improvement through self-audits-all of which depend upon increased . dedication throughout the organisation.

Question 31

It would be most correct to say that organisational development (OD) relies on the use of:

A) interactions.
B) intermissions.
C) interventions.
D) inventories.

Question 32

Lengnick-Hall (1992) suggests that four factors are required to ensure that innovation has a competitive advantage. Two factors refer to the ability to meet significant customer needs and to:

A) exploit ideas from other businesses.
B) utilise technologies that are readily accessible to the firm and the competitors.
C) utilise a particular industry's timing characteristics.
D) ensure that innovations can be replicated.

Question 33

There are four principles of product development which a manager can use to enhance organisational ability. Which is not one of them?

A) Establish a stage-gate development funnel
B) Establish a process for introducing the new products
C) Establish cross-functional teams
D) Use concurrent engineering

Question 34

The function of the stage-gate development funnel is to:

A) encourage employees to bring forward ideas and narrow the choices down to one new product.
B) encourage employees to bring forward ideas to develop as many choices for new products as possible.
C) encourage barriers into the development process.
D) give employees the impression that their ideas count.

Question 35

It is best if the cross-functional team consists of:

A) 10 to 15 members.
B) at the most, six members.
C) three to six core members who do not change.
D) a group which does not change during the whole project.

Question 36

Traditional product development involves five steps: opportunity identification, concept development, product design, process design and:

A) product production.
B) product procurement.
C) commercial development.
D) commercial production.

Question 37

Many new products fail in the marketplace because:

A) they have not been adequately trialled
B) they were designed with no attention to customer needs
C) there are difficulties with receiving timely supplies
D) they place too much emphasis on common values and norms

Question 38

A number of organisations encourage individuals to take on entrepreneurial roles within the organisation. Such roles are referred to as:

A) Merlins.
B) entrepreneurial.
C) employee generated roles.
D) intrapreneurial.

Question 39

A number of characteristics that can aid an individual in becoming more intrapreneurial have been recognised. Which of the following is not one of them?

A) Intrapreneurs can visualise what they wish to create
B) Intrapreneurs tend to be action-oriented and extremely dedicated
C) Intrapreneurs maintain high internal standards about their work
D) Intrapreneurs work well with others

Question 40

The checklist for choosing intrapreneurial ideas indicates that good intrapreneurial ideas meet three kinds of needs: those of the customer, those of the company and those of:

A) the intrapreneur.
B) the industry.
C) the task environment.
D) the community.

Question 41

A change or an innovation that changes the way work is performed, the group that does it and the relationship between that group and other groups is a change in which key component of the organisation?

A) Structure
B) Technology
C) Human resources
D) Culture

Question 42

High performance is associated with major reorganisations which are both:

A) concerted and dramatic.
B) piecemeal and incremental.
C) well-planned and introduced over an extended period.
D) incorporated primarily into the culture and into human resources components.

Question 43

A quantum change (i.e. an organisational change that is dramatic and concerted) is frequently associated with subsequent:

A) high turnover.
B) disciplinary problems.
C) takeover threats.
D) high performance.

Question 44

The word 'technology' refers to the tools, equipment, _________ that a firm uses to deliver products or services:

A) knowledge and work techniques.
B) human and material resources.
C) external technical supports and management strategies.
D) None of the given answers is correct

Question 45

In order to support changes made in an organisation's structure and/or technology, it is often necessary to also make substantial changes in the:

A) human resources systems.
B) planning systems.
C) matrix systems.
D) communications and education systems.

Question 46

Although minor changes may focus on one particular structural component, major change definitely requires a change in:

A) the technological components.
B) the human resources components.
C) the cultural components.
D) All of the given answers are correct

Question 47

British Airways attributed its success to the cultural change based on their leader's vision or survival threats. The company changed the culture to emphasise:

A) more through planning for their employees.
B) productivity, shareholder demands and initiative.
C) customer focus, productivity and initiative.
D) employee input and strict financial planning.

Question 48

To innovate effectively, individuals must apply different kinds of thinking as new ideas are carried forward. The Discovery phase typically involves creative, expansive, associative and experimental thinking. The Developmental stage is more likely to require__________ thinking.

A) cultural and contextual
B) analytical, discriminating
C) focused and distinctive
D) sequential, time oriented

Question 49

How are changes and innovation different? Explain the major forces for change and innovation in organisations.

Question 50

What the four life-cycle stages in an organisation? Identify characteristics of each stage.

Question 51

What is the eight-step model for change and innovation management?

Question 52

What are the three essential steps in the organisational development (OD) process and why is intervention so important?

Question 53

What factors need to be present to ensure that innovation leads to competitive success?

Question 54

Why do managers need to understand the principles of product development? Enumerate and describe the four basic product development principles.

Question 55

What are the three major intrapreneurial roles associated with innovation and why do intrapreneurs stay in firms rather than start their own business?

Question 56

Why are the four key organisational change components linked in six ways?

Question 57

How do you differentiate between the four key change components?

Question 58

Use the internet or library data bases to find another example of the organisational innovation cycle. In what ways is the model you found similar to, and different from, that in Figure 8.9?