Deck 15: Innovating and Changing

Question 1

Total organization change involves introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.

Answer 1

True

Question 2

Reactive change means anticipating and preparing for an uncertain future.

Answer 2

False

Question 3

In today's increasingly competitive business environment, correctly _____ the organization's technology needs can fundamentally improve the organization's effectiveness.

A) estimating
B) assessing
C) guessing
D) weighing
E) outsourcing

Answer 3

B

Question 4

_____ emphasizes identifying and monitoring the sources of new technologies for an industry by involving in activities like reading cutting-edge research journals and attending conferences and seminars.

A) Social audit
B) Gap analysis
C) Environmental scanning
D) Internal analysis
E) Open-book management

Question 5

_____ have proved effective but offer a strategic advantage because not everyone uses them.

A) Base technologies
B) Emerging technologies
C) Key technologies
D) Elevated technologies
E) Pacing technologies

Question 6

Development projects are focused on creating a new product or process.

Question 7

Which of the following technologies are still under development and thus do not require managers to invest in them?

A) base technologies
B) emerging technologies
C) key technologies
D) large batch technologies
E) pacing technologies

Question 8

Even though _____ have yet to prove their full value, managers should invest in them because they have the potential to alter the rules of competition by providing a significant advantage.

A) base technologies
B) emerging technologies
C) key technologies
D) large batch technologies
E) pacing technologies

Question 9

Early adopters of new technologies tend to be more profitable than firms that are late in adopting the new technologies.

Question 10

Without a demand for technology, there is no reason for technological innovation to occur.

Question 11

Becoming world-class means merely striving to improve.

Question 12

_____ is the tendency of managers to miss the significance of disruptive changes because they are more focused on investing in and making incremental improvements to their core profitable businesses.

A) The black swan effect
B) A fundamental attribution error
C) Survivor's syndrome
D) The glass ceiling effect
E) Innovator's dilemma

Question 13

Technology trading is becoming increasingly common because of the high cost of developing advanced technologies independently.

Question 14

Bureaucracy facilitates innovation within organizations.

Question 15

_____ refers to a process by which a product, service, or business model takes root initially in simple applications at the bottom of a market and then moves "up market," eventually displacing established competitors.

A) Reverse mentoring
B) Concentric diversification
C) Strategic liquidation
D) Disruptive innovation
E) Crowdsourcing

Question 16

Organizations must consider the feasibility of technological innovations because technical obstacles represent barriers to progress.

Question 17

The anti-lock braking system is a desired feature that can provide automobiles a significant competitive edge. However, it is not used uniformly by every automobile company. Thus, this technology is best grouped under ______ technologies.

A) base
B) key
C) emerging
D) large batch
E) active

Question 18

Benchmarking and scanning are sufficient to stay ahead of the innovation curve.

Question 19

______ technology is commonplace in the industry and provides little competitive advantage.

A) Base
B) Emerging
C) Key
D) Large batch
E) Pacing

Question 20

Flexible manufacturing practices such as just-in-time, mass customization, and simultaneous engineering are examples of

A) product differentiation.
B) process innovations.
C) technology audit.
D) large batch technologies.
E) product innovations.

Question 21

_____ compares an organization's practices and technologies with those of other companies.

A) Benchmarking
B) Auditing
C) Differentiation
D) Environmental scanning
E) Capitalization

Question 22

Which of the following is the first consideration in developing a strategy around technological innovation?

A) organizational suitability
B) market potential
C) social feasibility
D) ethnographical viability
E) political support

Question 23

Executives in _____ firms give priority to developing and exploiting technological expertise, and decision makers have bold, intuitive visions of the future.

A) defender
B) prospector
C) analyzer
D) follower
E) reactor

Question 24

_____ adopt an early-follower strategy to grab a dominant position more from their strengths in marketing and manufacturing than from technological innovation.

A) Entrepreneurial firms
B) First mover firms
C) Prospector firms
D) Analyzer firms
E) Defender firms

Question 25

If a firm can "pull off" a technological innovation, executives must consider

A) the economic feasibility of new technologies.
B) the long-term commitment of substantial resources.
C) whether there is a good financial incentive for doing so.
D) if they can recoup the costs of their investments in technological innovations
E) the lack of staff time to work on the technology.

Question 26

_____ is best described as the advantage that comes from offering a unique good or service for which customers are willing to pay a premium price.

A) Equilibrium
B) Standardization
C) Differentiation
D) Liquidity
E) Capitalization

Question 27

In assessing market receptiveness, executives should typically determine whether the new technology

A) is capable of drawing political support.
B) has an immediate and valuable application in the short run.
C) can alter the rules of competition in the industry.
D) can be patented.
E) will violate the company's vision.

Question 28

_____ that are not technology oriented must develop new capabilities to survive.

A) Firms
B) Employees
C) Managers
D) Consumers
E) Stakeholders

Question 29

Executives in defender firms are most likely to

A) be concerned about the opportunity costs of not taking an action.
B) support an outward-looking and opportunistic culture.
C) base strategic decisions on careful analysis and experience in the industry setting.
D) adopt a first-mover strategy to grab a dominant position in the industry.
E) be more innovative than their counterparts in prospector firms.

Question 30

_____ typically have technology champions who articulate competitively aggressive, first-mover technological strategies.

A) Prospector firms
B) Follower firms
C) Defender firms
D) Reactor firms
E) Analyzer firms

Question 31

Which of the following is a disadvantage of acquiring new technology through internal development?

A) It makes a firm dependent on other firms.
B) The developed technology will not provide a competitive advantage.
C) The developed technology will not be exclusive to the firm.
D) It can result in high coordination costs.
E) It requires additional staff and funding for long periods.

Question 32

In organizations without the skills needed to implement an innovation, even

A) certain technologies may have tremendous market applicability.
B) promising technological advances may prove disastrous.
C) internal capabilities to execute their technology strategies must be developed.
D) base strategies on core capabilities applies to technology.
E) efficiency becomes effective.

Question 33

Which of the following is a defining characteristic of prospector firms?

A) Such firms adopt strategies that focus on deepening their capabilities through technologies that extend rather than replace their current ones.
B) They tend to adopt an early-follower strategy to grab a dominant position more from their strengths in marketing and manufacturing than from technological innovation.
C) Executives in such firms tend to be more concerned about the opportunity costs of not taking action than they are about the potential to fail.
D) Such firms are risk averse and tend to operate in environments that are stable and predictable.
E) They are less innovative than defender firms because they tend to let others demonstrate solid demand in new arenas before responding.

Question 34

Even though the research and development team of Orbiton Computer Inc. came up with promising technological innovations, the innovations could not be commercialized because the employees on the floor lacked the skills to implement or execute them. Thus, Orbiton Computer's failure can be attributed to the lack of

A) organizational suitability.
B) technological feasibility.
C) market responsiveness.
D) internal capabilities.
E) economic viability.

Question 35

_____ focuses on what can be done and what is being developed.

A) Benchmarking
B) Auditing
C) Differentiation
D) Environmental scanning
E) Capitalization

Question 36

Ivan, a scientist, invented a method of using solar energy to power electrical devices. However, the cost of using the method on a large scale was prohibitive. Hence, his invention was not adopted by his target customers. The lack of _____ was the reason for the failure of his invention.

A) organizational suitability
B) technological feasibility
C) economic viability
D) social adaptability
E) political suitability

Question 37

_____ can help organizations recoup the costs of their investments in technological innovations.

A) Copyrights only
B) Patents only
C) Patents and copyrights
D) Neither patents nor copyrights
E) Sales of copyrights

Question 38

An independent research laboratory entered into an agreement with a multinational agricultural company to develop a new variety of hybrid seeds for cold climates. In return, the agricultural company would fund the research. This method of acquiring new technology is known as

A) state funding.
B) internal development.
C) technology trading.
D) licensing.
E) contracted development.

Question 39

Neil, an entrepreneur and inventor, developed new software to help retail stores manage their supply chain effectively. He was able to successfully sell his software to the retail industry. However, certain unscrupulous organizations began producing cheaper versions of the software. This lowered the popularity of the original version. Which of the following factors is affected by the knock-offs?

A) organizational suitability
B) technological feasibility
C) economic viability
D) capability development
E) social adaptability

Question 40

An entrepreneur wanted to sell washing machines with dryers in a tropical country. To his disappointment, he found that nobody wanted to buy these machines. He realized that the dry climate of the country contributed to his failure. People usually hung their washed clothes out in the sun to dry. The lack of _____ was responsible for the failure of his product.

A) market receptiveness
B) technological feasibility
C) organizational suitability
D) economic viability
E) capability development

Question 41

In an effort to decrease the amount of industrial waste generated during production, Cynthia wanted her company to use a new machine designed by one of the employees. She felt that the new machine could also bring down the company's costs. She tried to convince her supervisor and higher authorities to provide the resources needed to build and install the machine on a large scale. Cynthia's role is that of an)

A) category captain.
B) technical innovator.
C) executive champion.
D) product champion.
E) gatekeeper.

Question 42

Which of the following is a function of a technical innovator?

A) supports an innovation by sponsoring financial and managerial resources
B) promotes a new technology throughout the organization
C) develops a new technology
D) secures acceptance for a new idea within the organization
E) imparts training for specific interpersonal skills

Question 43

A start-up and an established company have entered into a business agreement. In this arrangement, the established company will provide capital and other resources and the start-up will contribute its technological expertise. This method of acquiring new technology is known as

A) offshoring.
B) research partnership.
C) benchmarking.
D) technology trading.
E) internal development.

Question 44

_____ is an arrangement for jointly pursuing specific new technology development.

A) Offshoring
B) Research partnership
C) Acquisition of a technology owner
D) Internal development
E) Corporate espionage

Question 45

Which of the following is a responsibility of the chief information officer?

A) gaining unauthorized access to proprietary information of competitors
B) finding new ways to produce old products
C) ensuring that employees have no access to information from outside the organization
D) identifying ways that technology can support the company's strategy
E) limiting information exchanged through the company grapevine

Question 46

When an organization asks itself about whether to acquire new technology from an outside source or develop it internally, it is known as

A) technology trading.
B) make-or-buy decision.
C) benchmarking.
D) positioning.
E) differentiation.

Question 47

Which of the following is an advantage of technology trading?

A) It helps a firm speed up its learning curve.
B) It enables a firm to gain control and ownership over desired technology.
C) It enables a firm to adopt the trial-and-error approach to using technologies.
D) It helps a firm gain easy access to new technology as all industries willingly share information.
E) It helps a firm gain competitive advantage in its industry.

Question 48

Which of the following is an advantage of purchasing technology already available in products or processes?

A) It is simple to implement and cost-effective.
B) The technology is proprietary and provides competitive advantage.
C) It speeds up the purchasing firm's learning curve.
D) It helps improve the purchasing firm's internal development capabilities.
E) The purchasing firm gains control and ownership over the desired technology.

Question 49

Which of the following is a disadvantage of purchasing technology that already is available in products or processes?

A) It is the most time-consuming way to acquire new technology.
B) It is the least cost-effective way to acquire new technology.
C) The purchase requires more staff than internal development.
D) The coordination and monitoring costs will be high.
E) The technology itself will not offer a competitive advantage.

Question 50

Which of the following is a function of a product champion?

A) has the status, authority, and resources to sponsor an innovation
B) is responsible for promoting a new technology throughout the organization
C) is responsible for developing a new technology
D) is responsible for coordinating the technological efforts of various business units
E) has the technical skills needed to install and operate the technology

Question 51

Rosa has developed and patented a new process for recycling plastic. A number of companies have expressed an interest in buying her company in order to gain access to the technology. If she sells her company, the buyer will be obtaining the new technology through

A) acquisition of the technology owner.
B) research partnerships and joint ventures.
C) technology trading.
D) contracted development.
E) internal development.

Question 52

Which of the following is a disadvantage of acquiring a new technology by purchasing the company that owns the technology?

A) Developing technology becomes time consuming.
B) The process requires more staff than internal development.
C) It makes the purchasing firm highly dependent on its internal development capabilities.
D) The purchasing company will not own or control the unique technology.
E) Acquiring the company can be expensive.

Question 53

Which of the following is an advantage of internal development as a means of acquiring new technology?

A) It is simple to implement and cost-effective.
B) The costs associated with new technology development can be shared by two or more firms.
C) It permits firms to access unique technology for a minimal fee.
D) The technology is proprietary and it provides a competitive edge.
E) It does not require firms to maintain a large staff.

Question 54

Which of the following is a disadvantage of licensing as a means of acquiring new technology?

A) It involves high monitoring costs.
B) The firm does not control or own the unique technology.
C) It is less economical than internal development.
D) It is the most time-consuming way to develop new technology.
E) The firm will need to acquire internal development capabilities.

Question 55

Keeping the technology proprietary is accomplished through

A) joint venture.
B) contracted development.
C) technology trading.
D) internal development.
E) licensing.

Question 56

Which of the following is a reason for a firm to choose technology trading to acquire new technology?

A) for proprietary ownership
B) for cost effectiveness
C) to be the sole user of a technology
D) to gain competitive advantage
E) to be the first mover in the industry

Question 57

When deciding on technology, the simplest, easiest, and most effective way to acquire it is to

A) develop it internally.
B) purchase it.
C) license it from others.
D) form a joint venture.
E) acquire the owner of the technology.

Question 58

______ are companies that excel at solving problems, seeking and finding new approaches, and sharing new knowledge with all members of an organization.

A) Defender firms
B) Learning organizations
C) Analyzer firms
D) Closed-book organizations
E) Bureaucratic firms

Question 59

Which of the following describes an executive champion?

A) a person who possesses the status, authority, and resources to support an innovation or change
B) a person who has the technical skills needed to install and operate the technology
C) a person who develops a new technology from scratch
D) a person who coordinates the technological efforts of various business units
E) a person who is primarily responsible for securing employee acceptance and support for new ideas

Question 60

Which of the following is a disadvantage of joint ventures as a means to acquire new technology?

A) It is the most expensive and time-consuming way to develop new technology.
B) It makes a firm solely dependent on its internal development capabilities.
C) Coordination costs can be high and organizational cultures can clash, limiting the outcomes.
D) Purchase of a company can be expensive.
E) It fails to establish a new company.

Question 61

__________ is the motivation of people to change, strengthening the new behaviors that support the change.

A) Moving
B) Unfreezing
C) Freezing
D) Refreezing
E) Enforcing

Question 62

The _____ refers to the belief that things must be either A or B and cannot be both.

A) glass ceiling effect
B) survivor's syndrome
C) black swan effect
D) "genius of the and"
E) "tyranny of the or"

Question 63

Which of the following practices will lead to sustained, superior performance in organizations?

A) limiting the exchange of information within the organization
B) fine-tuning strategies continually based on marketplace changes
C) pursuing strategies that focus on competitors
D) limiting the decision-making authority to the top management
E) believing that only one goal can be attained at a time

Question 64

_____ is best described as a systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organization effectiveness.

A) Organization development
B) Management myopia
C) Development project
D) Groupthink
E) Micromanagement

Question 65

A _______ is a focused organizational effort to create a new product or process via technological advances.

A) development project
B) sociotechnical system
C) quality circle
D) turnkey project
E) contracted development

Question 66

Which of the following forms of organization development interventions involves improving conflict resolution, team building, communication, and leadership?

A) marketing intervention
B) strategic intervention
C) sociotechnical intervention
D) human process intervention
E) technostructural intervention

Question 67

Vanessa, a secretary at a law firm, had a comfortable job with fixed working hours. Suddenly, her boss informed her that starting next week, she would be required to work extra hours. He said that the firm had received many new clients and so the workload had increased. However, he reassured her that she would be paid more for the extra work. Taken aback by the unanticipated change, Vanessa refused to comply with her boss's wishes. Which of the following is a reason why she resisted the change? rev: 02_10_2016_QC_CS-41447

A) Vanessa had formed a different assessment of the proposed change.
B) The change was unexpected and took Vanessa by surprise.
C) Vanessa did not understand why the change was being implemented.
D) The timing of the change was wrong from the company's perspective.
E) Vanessa felt that the change was not in her best interest.

Question 68

The _____ refers to the ability to achieve multiple objectives at the same time.

A) "tyranny of the or"
B) "genius of the and"
C) glass ceiling effect
D) black swan effect
E) survivor's syndrome

Question 69

Arthur, a senior manager at a telecommunication company, observed that the quality of customer service did not meet the standards. Employees were not skilled enough to solve the problems of clients. Arthur felt that training would help employees deliver better service. Based on this scenario, Arthur has identified an)

A) ethical lapse.
B) performance gap.
C) social difference.
D) self-actualization need.
E) technology shift.

Question 70

Which of the following is an essential characteristic of great companies, according to Collins and Porras?

A) They have a core focus on beating the competition.
B) They have core values.
C) They know what their core values are.
D) They live by their core values.
E) They know what their core values mean.

Question 71

Which of the following is true of a world-class organization?

A) It merely strives for improvement.
B) It applies the best and latest knowledge and ideas.
C) It primarily focuses on producing goods at the lowest cost possible.
D) It focuses on competition instead of profits.
E) It exemplifies a bureaucratic organizational structure.

Question 72

In return for cooperating with the management in the implementation of a major organizational change, Bluepool Textiles provided an annual bonus to all its employees. Which of the following methods for managing resistance to change does this scenario exemplify?

A) education and communication
B) facilitation and support
C) incentives and rewards
D) manipulation and cooptation
E) explicit and implicit coercion

Question 73

_____ refer to special temporary project structures established by a company that are isolated from the rest of the organization and allowed to operate under different rules.

A) Skunkworks
B) Quality circles
C) Development projects
D) Research partnerships
E) Joint ventures

Question 74

Which of the following is a logical extension of the sociotechnical philosophy of work design?

A) organizational bureaucracy
B) lean and flat organization
C) mechanistic structure
D) micromanagement
E) closed-book management

Question 75

Which of the following types of organization development interventions involves attracting good people, setting goals, and appraising and rewarding performance?

A) strategic intervention
B) technostructural intervention
C) marketing intervention
D) tactical intervention
E) human resources management intervention

Question 76

The _____ refers to the belief that only one goal can be attained at a time.

A) "tyranny of the or"
B) "genius of the and"
C) "purpose of the because"
D) "desire of the want"
E) "reason for the why"

Question 77

Which of the following types of organization development interventions relates to enhancing organization structure and design, employee involvement, and work design?

A) technostructural intervention
B) strategic intervention
C) tactical intervention
D) human process intervention
E) human resources management intervention

Question 78

Which of the following is an essential characteristic of enduringly great companies?

A) They are solely driven by incremental improvements.
B) They focus on beating the competition.
C) They oppose experimentation.
D) They undergo continuous change.
E) They are risk averse.

Question 79

Increasing _____ involves improving an organization's ability to respond to customers, stockholders, governments, employees, and other stakeholders, which results in better-quality products, higher financial returns, and high quality of work life.

A) micromanagement
B) management myopia
C) groupthink
D) organizational effectiveness
E) organizational bureaucracy

Question 80

Which of the following is true of development projects?

A) The teams involved in development projects are isolated from suppliers and customers.
B) They are given a lot of time and other resources to develop a product.
C) They work against the philosophy of continuous improvement.
D) The members of a development project pursue different and conflicting goals.
E) They feature a cross-functional team that works together on an overall concept.