Chapter 5 Socially-Conscious Management

Social obligation is the obligation of a business to meet its _; economic and legal responsibilities If your university was paying minimum wage when
necessary and applying the minimum legal standards to its employees work environment, it would be said to have fulfilled its _; social obligation In the
United States a company that meets, but does not exceed, federal pollution control standards and does not discriminate in hiring, promotion, and pay is
generally meeting its _; social obligation Under the concept of _; the organization does what is required by the _; social obligation; law _ view of social
responsibility holds that management's only social responsibility is to maximize profits. ;classical The most outspoken advocate of the classical view of
social responsibility is economist and Nobel laureate _;Milton Friedman Under the classical view, aiding the few through philanthropy _;increases costs for
consumers The __view is that management's social responsibility goes beyond making profits to include protecting and improving society's welfare.
;socioeconomic If your university provides job-share programs, builds a day-care facility, and only uses recycled paper, it could be said to be _; socially
responsive When PETA supporters picketed Avon products because of its use of animals in the testing of its cosmetics, Avon changed its practices and
stopped testing on animals. In this situation, Avon exercised _; social responsiveness A U.S. business that provides on-site childcare facilities for
employees as part of a negotiation with its union is _; being socially responsive
When a firm advertises that it only uses recycled paper products, it is _; being socially responsive Years ago McDonald's switched from Styrofoam boxes
for its large sandwiches to corrugated boxes made partially from recycled materials because of concerns that Styrofoam took too long to decompose in
landfills. In this situation, McDonald's was _; socially responsive _ is defined as a business firm's intention, beyond its legal and economic obligations, to
do the right things and act in ways that are good for society. ;Social responsibility The aspect that differentiates social responsibility from other similar
concepts is that it adds a(n) _;ethical imperative
Which one of the following examples reflects a socially responsible action by an organization? ;Apple has eliminated lead-lined glass monitors from its
product line and pioneered reduced sized packaging that leverages recyclable materials. According to the _ argument on social responsibility, businesses
should be socially responsible because responsible actions are the right thing to do. ;ethical obligation Following Hurricane Katrina in 2005, WalMart
sent semis loaded with items such as bottled water, diapers, and other daily necessities to the New Orleans area. We can say that WalMart exercised _;
social responsibility The belief that business involvement can help solve difficult social problems is the __ argument of social responsibility. ;better
environment Which one of the following arguments on social responsibility states that businesses should address social problems before they become
serious and costly to correct? ;superiority of prevention over cures Which one of the following arguments on social responsibility states that a business is
socially responsible only when it pursues its economic interests? ;violation of profit maximization Which one of the following arguments on social
responsibility states that pursuing social goals hurts a business's economic productivity? ;dilution of purpose Which one of the following arguments on
social responsibility states that there is no direct line of responsibility for social actions? ;lack of accountability The process of applying social and
environmental criteria to an investment decision is known as _; social screening Appleton would like to build a coal-burning electric generating
facility located in a remote area because the cost involved is moderate. Appleton is following which of the social responsibility views? ;classical view
Baskins wants to build a nuclear plant because this will not add to his city's already serious pollution problem, while taking care of its electricity
requirements. Baskins is following which of the social responsibility views? ;socioeconomic view Carson wants to build an electricity generating plant
that uses combustible fuels collected from the city's garbage, and located near the downtown government area so that the steam could be used for heating
the government buildings after it has passed through the generating turbines. Carson is being mostly _; socially responsive According to the classical
view of social responsibility, management's only social responsibility is to maximize profits. T The most outspoken advocate of the classical view of
organizational social responsibility is Alan Greenspan. F According to the socioeconomic view, managers' social responsibilities go beyond making
profits to include protecting and improving society's welfare.
T When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, it is said to be socially responsive. F
One argument against businesses championing social responsibility issues is that businesses already have too much power. T Possession of resources is an
argument in favor of social responsibility. T Studies have confirmed that businesses that engage in social involvement enjoy higher profits than those which
do not. F Compare and contrast the ideas of social obligation, social responsiveness, and social responsibility. answer: Social obligation occurs when a firm
engages in social actions because of its obligation to meet its economic and legal responsibilities. The organization does only what it is obligated to do and
nothing more. This idea reflects the classical view of social responsibility that says that management's only social responsibility is to maximize profits. In
contrast to social obligation, however, both social responsiveness and social responsibility reflect the socioeconomic view. According to this view a
manager's social responsibilities go beyond making profits to include protecting and improving society's welfare. This view is based on the belief that
corporations are not independent entities responsible only to stockholders, but have an obligation to the larger society. Social responsiveness occurs when a
company engages in social actions in response to some popular social need. Managers are guided by social norms and values and make practical,
market-oriented decisions about their actions. A socially responsible organization views things differently. It goes beyond what it is obligated to do or
chooses to do because of some popular social need and does what it can to help improve society because it is the right thing to do. Social responsibility is
defined as a business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. A socially
responsible organization does what is right because it feels it has an ethical responsibility to do so. List and discuss three arguments in favor of business
social responsibility and five arguments against it. answer: Arguments in favor of business social responsibility include:
a. Public expectations - Public opinion now supports businesses pursuing economic and social goals. b. Long-run profits - Socially responsible
companies tend to have more secure long-run profits. c. Ethical obligation -Businesses should be socially responsible because responsible actions are the
right thing to do. d. Public image - Businesses can create a favorable public image by pursuing social goals. e. Better environment - Business
involvement can help solve difficult social problems. f. Discouragement of further governmental regulation - By becoming socially responsible,
businesses can expect less government regulation. g. Balance of responsibility and power - Businesses have a lot of power and an equally large amount
of responsibility is needed to balance against that power. h. Stockholder interests - Social responsibility will improve a business's stock price in the long
run.
i. Possession of resources - Businesses have the resources to support public and charitable projects that need assistance. j. Superiority of prevention
over cures - Businesses should address social problems before they become serious and costly to correct. Arguments against business social
responsibility include:
a. Violation of profit maximization - Business is being socially responsible only when it pursues its economic interests. b. Dilution of purpose - Pursuing
social goals dilutes business's primary purpose of achieving economic productivity. c. Costs - Many social responsibility actions do not cover their costs
and someone must pay those costs. d. Too much power - Businesses have a lot of power already and if they pursue social goals they will have even more
power. e. Lack of skills - Business leaders lack the necessary skills to address social issues. f. Lack of accountability - There are no direct lines of
accountability for social actions. 37) Managers who consider the impact of their organization on the natural environment are said to be practicing _; green
management In which of the following approaches of going green does the organization exhibit the least environmental sensitivity? ;legal (light green)
approach Under what approach do organizations exhibit little environmental sensitivity, and simply obey laws, rules and regulations? ;legal approach In
the _approach of going green, organizations respond to the environmental preferences of customers. ;market In the _ approach of going green, an
organization works to meet the environmental demands of its employees, suppliers, or community. ;stakeholder EPA regulations permit the release of 150
micrograms of particulate matter per cubic meter of air every 24 hours from paint shops. Utilimotors, a utility truck maker, monitors its emissions so it
releases between 140 and 150 micrograms. Which approach of green management does Utilimotors use? ;legal approach What approach deals with an
organization changing its interaction with the environment because of the preferences of its customers? ;market approach Under what approach does the
organization work to meet the environmental demands of multiple groups of people including employees, suppliers, or the community? ;stakeholder
approach Which of the following ISO standards is related to quality management? ;ISO 9000 Which of the following approaches of going green reflects
the highest degree of environmental sensitivity and is also a good illustration of the social responsibility of the organization? ;activist approach Which of
the following ISO standards is related to environmental management? ;ISO 14000
Under what approach is the organization driven to look for ways to respect and preserve the earth and its natural resources? ;activist approach Miller's
Multivitamins uses only organically grown fruits and vegetables in its vitamins. It purifies any water used in its processes before releasing it back into the
environment and exceeds the EPA requirements for cleaning particulates from the air it uses. Which approach to green management does Miller's
Multivitamins use? ;activist

50) Many companies around the globe voluntarily report their efforts in promoting environmental sustainability using the guidelines developed by
the _; Global Reporting Initiative Which of the following ISO standards is related to quality management? ;ISO 9000 Which of the following
ISO standards is related to environmental management?; ISO 14000 One way to evaluate a company's green actions is to use the _ list of the most
sustainable corporations in the world. ; Global 100 To be named on the Global 100 list, which is announced each year at the World Economic
Forum, a company _; has to display a superior ability to effectively manage environmental and social factors The legal approach to going green is
also known as the dark green approach. F An organization is said to adopt the market approach to going green when it responds to the
environmental demands made by its stakeholders. F In the activist approach to going green, an organization looks for ways to protect its sources of
supply. F Explain the four approaches that organizations can take with respect to environmental issues and going green. answer: a. Legal approach -
This approach is also known as the light green approach. Under this approach, organizations simply do what is required legally. They exhibit little
environmental sensitivity. They obey laws, rules, and regulations without legal challenge. This approach illustrates social obligation. b. Market
approach - As an organization becomes more sensitive to environmental issues, it may adopt this approach. Here, organizations respond to the
environmental preferences of their customers. Whatever customers demand in terms of environmentally-friendly products is what the organization
provides. This approach illustrates social responsiveness. c. Stakeholder approach - Here, the organization works to meet the environmental demands
of multiple stakeholders such as employees, suppliers, or community. This approach also illustrates social responsiveness. d. Activist approach - If
an organization pursues this approach, it looks for ways to protect the earth's natural resources. It is also known as the dark green approach. This
approach reflects the highest degree of environmental sensitivity and illustrates social responsibility. ___ defined as the basic convictions about
right and wrong decisions and behavior. A) Beliefs are ;Values are At the _level of moral development, a person's choice between right or wrong is
based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors.
;preconventional In which one of the stages of moral development do individuals stick to rules to avoid physical punishment and follow rules only when
doing so is in their immediate interest?;preconventional stage Norman is a stickler for following the rules because he is sure he will be caught and punished
if he doesn't. What is Norman's level of moral development? ;preconventional At the _ level of moral development, ethical decisions rely on maintaining
expected standards and living up to the expectations of others. ;conventional In which one of the following stages of moral development do individuals
live up to what is expected by people close to them and maintain order by fulfilling obligations to which they have agreed? ;conventional stage __ represent
basic convictions about what is right and wrong. ;Values The phrase "My word is my bond" is likely to be spoken by someone at the _stage of moral
development. ;conventional At the __ level of moral development, individuals define moral values apart from the authority of the groups to which they
belong or society in general. ;principled Pharmacists who decline to dispense drugs that cause abortions are functioning at the _ stage of moral
development. ;principled
In which of the following stages of moral development do individuals value rights of others and uphold absolute values and rights regardless of the
majority's opinion? ;principled stage John is offered an attractive incentive to steal sensitive information about his company's wealthy investment
customers. Which one of the following statements best reflects John's thoughts if he is at the preconventional level of moral development? ;I am liable to be
criminally prosecuted for my involvement in stealing the information. John is offered an attractive incentive to steal sensitive information about his company's
wealthy investment customers. Which of the following statements best reflects John's thoughts if he is at the principled level of moral development? ;By
stealing from another person, I will be in violation of the moral standards I've come to expect of myself. ___ measures the strength of a person's convictions.
;Ego strength Upper management is pushing hard to increase earnings per share. If Moe yields to this pressure despite misgivings about the use of a
non-certified material in the production of climbing equipment, he will be demonstrating ;weak ego strength Despite reassurances from R&D's internal
testing lab, Stephen believes the new material for climbing ropes should not be used in their manufacture until it has been certified by an independent lab. It
would appear that Stephen has _; high ego strength ___ is the degree to which people believe they control their own fate. ;Locus of control ;What can be
said about a manager who believes that she can work hard and will meet the productivity goals of her organization despite unfavorable conditions? ;She has
an internal locus of control.

"It's not my fault!" is a cry often heard from someone with _;an external locus of control Which one of the following organizations is best suited to
promote ethical behavior in its employees? ;An organization that has formal rules and regulations in place. Which one of the following is true
concerning the impact of organizational culture on ethical behavior? ;An organization with strong culture can encourage either ethical or unethical
behavior. A student who never considers breaking into an instructor's office to steal an accounting exam didn't think twice about asking a friend who
took the same course from the same instructor last semester what questions were on the exam. What does this example illustrate? ;This example
illustrates the concept of issue intensity. A cartoon showing black smoke from a smokestack and the caption "We're okay as long as the wind keeps
blowing" illustrates which factor of issue intensity? ;proximity to victims The Foreign Corrupt Practices Act makes it illegal for U.S. firms to _;
knowingly corrupt a foreign official __ is a document created by the United Nations outlining principles for doing business globally in the areas of
human rights, labor, the environment, and anticorruption. A) The Global Reporting Initiative ;The Global Compact Freedom of association and the
effective recognition of the right to collective bargaining are the Global Compact principles in the area of _;labor standards The idea that businesses
should eliminate discrimination with respect to employment and occupation is a Global Compact principle in the area of _; labor standards The
centerpiece of the _ efforts is the Anti-Bribery Convention that was the first global instrument to combat corruption in cross-border business deals. ;
Organization for Economic
In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to
which they belong or of society in general. : F At the conventional level of moral development, ethical decisions rely on maintaining expected standards
and living up to the expectations of others. T At the principled level of moral development, an individual values the rights of others and upholds absolute
values and rights regardless of the majority's opinion. T The term "values" refers to basic convictions about what is right and wrong behavior. T People
with an internal locus of control believe that what happens to them is due to luck or chance. F An organization's structural design, its goals, performance
appraisal systems, and reward allocation procedures influence the ethical choices of employees. T When employees are evaluated only on outcomes,
they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results. T The greater the
probability that some action will cause harm, the greater the intensity of the issue. T The Global Contract is a document created by the United Nations
outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. F The Organization for Economic
Co-Operation and Development developed a global trade agreement. F
Identify and describe the three levels and six stages of moral development. Answer: An individual's moral development can be divided into three levels,
each having two stages. At each successive stage, an individual's moral judgment becomes less dependent on outside influences and more internalized.
The three levels of moral development are preconventional, conventional, and principled. At the preconventional level, an individual's choice between
right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors. This level includes
stage 1 where an individual sticks to the rules to avoid punishment and stage 2 where the individual follows the rules only when doing so is in his or her
immediate interest. At the conventional level, ethical decisions rely on maintaining expected standards and living up to the expectations of others. The
third and fourth stages are in the conventional level. In stage 3, an individual tries to live up to what is expected by people close to him or her. In stage 4,
an individual tries maintaining conventional order by fulfilling obligations to which he has agreed. At the principled level, an individual defines moral
values apart from the authority of the groups to which he or she belongs. The 5th and 6th stages are a part of this level. At stage 5, an individual values
the rights of others and upholds absolute values and rights regardless of the majority's opinion. Finally, at stage 6, an individual follows his or her
self-chosen ethical principles even if they violate the law. Outline the two individual characteristics that play a role in determining whether a person
behaves ethically. answer: Values and personality are the two individual characteristics that play a role in determining whether a person behaves ethically.
Each person comes to an organization with a relatively entrenched set of personal values, which represent basic convictions about what is right and
wrong. An individual's values develop from a young age based on what he or she sees and hears from parents, teachers, friends, and others. Thus,
employees in the same organization often possess very different values. Values are broad and cover a wide range of issues. Two personality variables that
influence an individual's actions according to his or her beliefs about what is right or wrong are ego strength and locus of control. Ego strength measures
the strength of a person's convictions. People with high ego strength are likely to resist impulses to act unethically and instead follow their convictions.
Individuals high in ego strength are more likely to do what they think is right and be more consistent in their moral judgments and actions than those
with low ego strength. Locus of control is the degree to which people believe they control their own fate. People with an internal locus of control believe
they control their own destinies. They are more likely to take responsibility for consequences and rely on their own internal standards of right and wrong
to guide their behavior. They are also more likely to be consistent in their moral judgments and actions. People with an external locus believe what
happens to them is due to luck or chance. They are less likely to take personal responsibility for the consequences of their behavior and more likely to
rely on external forces.
Write a short essay on the structural variables that can influence employees' ethical behavior. Answer: An organization's structural design can influence
whether employees behave ethically. Those structures that minimize ambiguity and uncertainty with formal rules and regulations and those that
continuously remind employees of what is ethical are more likely to encourage ethical behavior. Other structural variables that influence ethical choices
include goals, performance appraisal systems, and reward allocation procedures. Although many organizations use goals to guide and motivate employees,
those goals can create some unexpected problems. One study found that people who do not reach set goals are more likely to engage in unethical behavior,
even if they do or do not have economic incentives to do so. An organization's performance appraisal system also can influence ethical behavior. Some
systems focus exclusively on outcomes, while others evaluate means as well as ends. When employees are evaluated only on outcomes, they may be
pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results. Closely related to the
organization's appraisal system is how rewards are allocated. The more that rewards or punishment depend on specific goal outcomes, the more employees
are pressured to do whatever they must to reach those goals, perhaps to the point of compromising their ethical standards. Discuss the importance of an
organization's culture as a factor that determines an employee's ethical behavior. answer: An organization's culture consists of shared organizational values.
These values reflect what the organization stands for and what it believes in as well as create an environment that influences employee behavior ethically or
unethically. When it comes to ethical behavior, a culture most likely to encourage high ethical standards is one that is high in risk tolerance, control, and
conflict tolerance. Employees in such a culture are encouraged to be aggressive and innovative, are aware that unethical practices will be discovered, and
feel free to openly challenge expectations they consider to be unrealistic or personally undesirable. Because shared values can be powerful influences, many
organizations are using values-based management, in which the organization's values guide employees in the way they do their jobs. An organization's
managers play an important role here. They are responsible for creating an environment that encourages employees to embrace the culture and the desired
values as they do their jobs. People look to see what those in authority are doing and use that as a benchmark for acceptable practices and expectations. A
strong culture exerts more influence on employees than a weak one. If a culture is strong and supports high ethical standards, it has a powerful and positive
influence on the decision to act ethically or unethically. What is the UN Global Compact? What are the 10 principles outlined in it? Answer: The UN
Global Compact is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the
environment, and anticorruption. It serves as a guide to being ethical in international business. The 10 principles outlined in it are: Human Rights: Principle
1: Support and respect the protection of international human rights within their sphere of influence. Principle 2: Make sure business corporations are not
complicit in human rights abuses. Labor Standards: Principle 3: Freedom of association and the effective recognition of the right to collective bargaining.
Principle 4: The elimination of all forms of forced and compulsory laboPrinciple 5: The effective abolition of child labor. Principle 6: The elimination of
discrimination in respect to employment and occupation. Environment: Principle 7: Support a precautionary approach to environmental challenges. Principle
8: Undertake initiatives to promote greater environmental responsibility. Principle 9: Encourage the development and diffusion of environmentally friendly
technologies. Anti-Corruption: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. Which of the
following options is most likely to have the greatest impact in encouraging employees to behave ethically? ;Implement a comprehensive ethical program.
How can managers identify the ethically questionable applicants even before they become part of the workforce?
;by including integrity testing in the selection process Your university has tried to promote the establishment of shared values so that all members will
understand its beliefs. The university has established -management.;values-based A _is a formal statement of an organization's primary values and the
ethical rules it expects its employees to follow. ;code of ethics The primary debate about ethics training programs is whether _; ethics can be taught
Marveline Company brought in help from outside to evaluate decisions and management practices in relation to the organization's code of ethics. These
evaluations are called ;independent social The choice of what activities to reward and punish sends a strong signal to the employees regarding their ethical
decisions. T When a firm has a code of ethics in place, the role of managers in enforcing ethical behavior is minimized. F Pressure to perform and meet
goals has little impact on an employee's decision to behave ethically. F It is important that firms be concerned with both the ends and the means used to
achieve them. T In a short essay, discuss some of the ways in which managers can encourage ethical behavior and create a comprehensive ethics program.
answer: Employee selection - The selection process (interviews, tests, and background checks) can be viewed as an opportunity to learn about an individual's
level of moral development, personal values, ego strength, and locus of control. However, a carefully designed selection process is not foolproof and, even
under the best circumstances, individuals with questionable standards of right and wrong may be hired. Such an issue can be overcome if other ethics
controls are in place. Code of ethics and decision rules - A code of ethics is a formal statement of an organization's values and the ethical rules it expects
employees to follow. It is a popular choice for reducing ambiguity about what is and is not ethical. Leadership - Doing business ethically requires a
commitment from top managers. They are the ones who uphold the shared values and set the cultural tone. They are role models in terms of both words and
actions. Top managers also set the tone by their reward and punishment practices. The choices of whom and what are rewarded with pay increases and
promotions send a strong signal to employees. Job goals and performance appraisal - Under the stress of unrealistic goals, otherwise ethical employees may
feel they have no choice but to do whatever is necessary to meet those goals. Also, goal achievement is usually a key issue in performance appraisal. If
performance appraisals focus only on economic goals, ends will begin to justify means. To encourage ethical behavior, both ends and means should be
evaluated. Independent social audits - These evaluate decisions and management practices in terms of the organization's code of ethics. To maintain integrity,
auditors should be responsible to the company's board of directors and present their findings directly to the board. This arrangement gives the auditors clout
and lessens the opportunity for retaliation from those being audited. Employees who raise ethical concerns or issues in an organization are known as __;
whistle-blowers
The _Act offers some legal protection to whistle-blowers. It has a provision wherein any manager who retaliates against an employee for reporting
violations faces a stiff penalty of a 10-year jail sentence. ;Sarbanes-Oxley
A __ is an individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches. ;social
entrepreneur Target's donation of 5% of its annual income to community support is an example of _; corporate philanthropy
If Google asks 25 members of its executive team to spend a full day during their annual team-building retreat building a house in Las Vegas with Habitat
for Humanity, the executives would be engaging in employee _; volunteering efforts Managers may have difficulty in the future in getting employees
to behave ethically because teenagers readily accept unethical behavior. T To encourage employees to report ethical concerns, managers must make sure
the reporting employee knows the outcome of any investigation, including the punishment meted out to the perpetrator. F Employees who raise ethical
concerns or issues to others inside or outside the organization are called social activists. F Under the Sarbanes-Oxley Act, whistle-blowers in the
United States who report suspected corporate violations of laws now have protection from reprisals and retaliation. T Who are whistle-blowers? What
can managers do to protect them? Whistle-blowers are individuals who raise ethical concerns or issues in an organization. These individuals are a key
part of a company's ethics program.
It is important for managers to assure employees who raise ethical concerns that they will face no personal or career risks. In order to facilitate this, managers
can set up toll-free ethics hotlines. Managers also need to create a culture where bad news can be heard and acted on before it is too late. The Sarbanes Oxley
Act offers some legal protection to whistle-blowers. According to one of its provisions, any manager who retaliates against an employee for reporting
violations faces a stiff penalty of a 10-year jail sentence.

Chapter 6 Managing Change

In organizations, people who act as catalysts and assume the responsibility for managing the change process are called _; change agents Outside
consultants are more likely to initiate _ organizational changes than insiders are. ; drastic Organizations need change because _; external and internal
factors create the forces for change The Sarbanes-Oxley Act is an example of which of the following forces of change?; external change The
technology change in the manufacturing process of New Ideas, Inc.'s products to make the process more efficient is the result of a competitor lowering its
price. Therefore, it was a(n) _; external force of change First he was all about innovation. Next it was efficiency. Now Snyder's strategy is customer
responsiveness. These changes in strategy are indicative of _; internal force of change When the employees express their concern about their bonus
checks, which of the following types of forces of change is in play? ;internal force of change Which one of the following is an example of changing
consumer preferences? ;The colors in home fashions change every year. Which one of the following represents a change in technology? ;Most business
communication involves email.
Sales are down; unemployment is up. Evergreen Park Homes can no longer support its current level of production. Evergreen is facing a change in _;
the economy Falling interest rates are an example of what external force? ;economic change Bullseye, a large discount retailer, discovered it could
not compete with the world's largest retailer and has repositioned itself as a more upscale discount department store. This move represents a change in
_; organizational strategy During his first year of employment, Arnold saw mostly white male faces in his plant. Now he sees women and men of all
ages and ethnicities. Communication has become challenging. Arnold has noticed a change in the _;workforce composition Increasing the numbers
of employed women and minorities forces managers to pay attention to what change factor? ;changes in the composition of the workforce Which one
of the following represents a change in technology? ;Hand-held calculators replaced pencil and paper in the workplace. Labor strikes are an example of
which of the following internal change factors? ;employee attitudes Outside consultants tend to recommend more cautious changes because they may
fear lawsuits if the recommendations turn out badly. F Government regulations are considered an internal factor for change because they force the
business to change how it functions. F Cost-cutting measures tend to exacerbate the conditions that led to the need for cutting costs. T Employees
who prefer stability are less likely to try new technology.: T Discuss the four external factors that prompt change in an organization, giving an example
of each factor. Explain how the factor affects the organization answer: a. When consumer preferences change, producers must make changes to their
products and/or services to remain competitive. Different generations expect different features and benefits from products. Producers must adapt or lose
market share. Example: Consumers wanted improvements to the cameras in cell phones. Phones were redesigned to include better cameras b. New and
amended laws and regulations may change how products are made or services provided. EPA regulations require automakers to increase the fuel
economy of vehicles; other rules require that carbon and greenhouse gases generated in the production process be reduced. This might require a
complete change in production methods. Coal-burning electricity generating plants had to install scrubbers to clean carbon from the stacks before the
smoke could be released into the air. c. As technology changes, employees must be retrained to interact with the equipment; some positions may be
eliminated. Production quotas may increase, requiring workers to learn new skills and adjust their work pace. For example, a nail gun allows a roofer to
lay more shingles per day than a hammer. The nail gun thus requires the roofer to work faster but not necessarily harder. d. A booming economy likely
creates more sales, requiring the onboarding of additional employees who may not have the same level of skill as existing workers. While this can be
overall a good situation, it does cause change in the work habits of existing employees. Conversely, a recession may require the employer to reduce its
workforce and employ additional cost-cutting measures. Idling of production machinery could cause many position changes for employees. Discuss
the four internal factors that cause change in an organization, giving an example of each factor. answer: a. When an organization changes its strategy, it
will have to change methods and/or focus. For instance, Target decided it no longer could compete head-to-head with WalMart on pricing so it changed
its strategy to compete on the quality of the products it offered and charged a higher price for those products.
b. As more women entered the workforce, the nature of how people are managed changed from autocratic to team-based. Currently the ethnic and cultural
mix has changed, again prompting changes in employee interaction and diversity initiatives. c. Innovation drives change when it creates new equipment.
When computers first entered the workplace, many employees resisted their introduction because it meant learning a new skill set and possible loss of a
job or job status. d. Many people fear change because the outcome is unknown. Fear creates resistance. Employees who were once cooperative may
become disengaged or even defiant. Attitudes toward the company and management may sour; job satisfaction could plummet. Fuel prices keep
spiraling upward so recreational vehicle manufacturers are being pressured to produce lighter units that can be pulled by smaller trucks. This situation is
 representative of -;a driving force The two metaphors commonly used to describe the two views of the change process are _; calm waters and
white-water rapids In the _metaphor, change is normal and expected and managing it is a continual process. ;white-water rapids Business had been
humming along just fine until the Great Recession hit. Benton Industries adjusted by laying off employees until the recession ended then hired them back.
Then it was back to business as usual. This is an example of -;the calm waters metaphor Lewin's three-step process is consistent with the _theory of
organizational change.;calm waters According to Kurt Lewin, which of the following is a stage in the change process? ;unfreezing According to Kurt
Lewin, increasing the driving forces is a means of _;unfreezing The unfreezing step of the change process can be thought of as __; preparing for the
needed change According to Lewin, which of the following is the objective of refreezing? ;stabilizing the new situation "If it's not one thing, it's
another. We just get used to doing things one way and suddenly that's not good enough anymore. It's a new machine here, a new manager there, changing
customer demands-it never ends!" This is an example of _; the white-water rapids metaphor New Ideas, Inc., focuses on new ideas, uses technology that
changes frequently, and has strong competition in the market. This situation describes what metaphor of change? ;a white-water rapids metaphor When
the Pinto cars made by Ford were increasingly involved in fatal rear-crash accidents, Ford officials made a decision to discontinue that model. Their
decision was a(n) _ change. ;reactive Bob is the noon manager at a fast-food hamburger restaurant. As soon as he saw the bus pull into the parking lot, he
ordered the cooks to put down as many patties as the grill would hold and shifted his people around so every cash register was open. Bob's response was
__;deactive The "white-water rapids" metaphor of change is consistent with Lewin's concept of unfreezing, changing, and refreezing. In the
"white-water rapids" metaphor of change, change is seen as an occasional disruption in the normal flow of events. F Identify some of the external and
internal forces of change. answer: Some of the external forces of change are: a. Changing consumer needs and wants b. New governmental laws c.
Changing technology d. Economic changes Some of the internal forces of change are:
a. New organizational strategy b. Change in composition of workforce c. New equipment d. Changing employee attitudes Describe and explain the "calm
waters" view of organizational change. Answer: The calm waters view of organizational change envisions the organization as a large ship crossing a calm
sea. The ship's captain and crew know exactly where they are going because they have made the trip many times before. Change comes in the form of an
occasional storm, a brief distraction in an otherwise calm and predictable trip. In the calm waters metaphor, change is seen as an occasional disruption in the
normal flow of events. It is best illustrated by Kurt Lewin's three-step description of the change process. According to Lewin, successful change can be
planned and requires unfreezing the status quo, changing to a new state, and refreezing to make the change permanent. The status quo can be considered an
equilibrium state. To move from this equilibrium, unfreezing is necessary. Unfreezing can be thought of as preparing for the needed change. It can be
achieved by increasing the driving forces, which are forces pushing for change; by decreasing the restraining forces, which are forces that resist change and
push behavior toward the status quo; or by combining the two approaches. Once unfreezing is done, the change itself can be implemented. However, merely
introducing change does not ensure that it will take hold. The new situation needs to be refrozen so that it can be sustained over time. Unless this last step is
done, there is a strong chance that employees will revert back to the old ways of doing things. The objective of refreezing, then, is to stabilize the new
situation by reinforcing the new behaviors. Lewin's three-step process treats change as a move away from the organization's current equilibrium state. It is a
calm waters scenario where an occasional disruption means changing to deal with the disruption. Once the disruption has been dealt with, however, things
can continue on under the new changed situation. Organizational change is any alteration of _;people, structure, or technology During the great recession,
average household discretionary income declined. Families sought less expensive alternatives for luxury items. Producers adjusted by offering lighter weight,
lower-cost items. These producers changed their _;strategies Colin believes his organization could be more profitable if it could respond to customers more
quickly so he has decided to remove some management layers and increase the remaining managers' span of control. These would be considered changes in
___; Structural component changes include __;combining departmental responsibilities If Kelly were to consider enhancing productivity by giving greater
authority to her subordinates and increasing formalization, she would be considering __changes.; structural A company that decides to decentralize its sales
procedures is managing ____changes.;structural After Body-Met acquired Uni-Dyne, the company reorganized around geographic divisions instead of
function. This action represents changes in __;) structural design Which type of change might include a shift from a functional to a product structure?;a
structural design change After several expansions and acquisitions that resulted in duplicate positions of several administrative functions, U.S. Big Corp.
decided to reorganize itself around customers rather than around functions. This would amount to a change in __; structural design
Changes in work processes, methods, and equipment are a part of __changes.; technological Technological changes usually involve the introduction of __;
new equipment, tools, or operating methods The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of _; technological change
When supermarkets and other retailers use scanners that provide instant inventory information, they are adopting _ changes. ; technological __ is the term
used to describe change methods that focus on people and the nature and quality of interpersonal work relationships. ;Organizational development If Kraft
Foods hired a consultant to decrease group friction and enhance cooperative work relationships, this would be an example of managing __changes. ;people
__ is a method of changing behavior through unstructured group interaction. ;Sensitivity training An increase in the diversity of his department has led to
conflict and animosity. To reduce this and allow his team to become more productive, Lemuel has asked the Human Resources department to provide _ for
his people. ;sensitivity training What organizational development technique involves changing the attitudes, stereotypes, and perceptions that work
groups have about each other? ;intergroup development Organizational change can be any alteration of strategy, people, structure, or technology. T
Managers exclusively play the role of change agents. F Changing structure includes any change in structural variables such as reporting relationships,
coordination mechanisms, employee empowerment, or job redesign.T Sensitivity training refers to activities that help team members learn how each member
thinks and works.
F Explain organizational change and briefly discuss the four types of change. answer: Most managers, at one point or another, will have to make changes in
some aspects of their workplace. These changes are classified as organizational change, which is any alteration of strategy, people, structure, or technology.
Organizational changes often need someone to act as a catalyst and assume the responsibility for managing the change process-that is, a change agent.
Change agents can be a manager within the organization, but could also be a non-manager such as a specialist from the HR department or even an outside
consultant. For major changes, an organization often hires outside consultants to provide advice and assistance. Managers face four main types of change:
strategy, structure, technology, and people. Changing strategy signifies a change in how managers ensure the success of the company. Changing structure
includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign. Changes in
the external environment or in organizational strategies often lead to changes in the organizational structure. Because an organization's structure is defined by
how work gets done and who does it, managers can alter one or both of these structural components. For instance, departmental responsibilities could be
combined, organizational levels eliminated, or the number of persons a manager supervises could be increased. More rules and procedures could be
implemented to increase standardization. Or employees could be empowered to make decisions so decision making could be faster. Another option would be
to make major changes in the actual structural design. For instance, product divisions can be dropped, merged, or expanded. Structural design changes also
might include, for instance, a shift from a functional to a product structure or the creation of a project structure design. Today, technological changes usually
involve the introduction of new equipment, tools, or methods; automation; or computerization. Competitive factors or new innovations within an industry
often require managers to introduce new equipment, tools, or operating methods. Automation is a technological change that replaces certain tasks done by
people with tasks done by machines. Changing people involves changing attitudes, expectations, perceptions, and behaviors. Organizational development is
the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships.
Define Organizational Development (OD). List and explain the five most popular OD techniques. answer: Organizational Development (OD) is the
term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships. The five most popular OD
techniques are: a. Sensitivity training-It is a method of changing behavior through unstructured group interaction. b. Team building-These refer to
activities that help team members learn how each member thinks and works. c. Intergroup development-This involves changing the attitudes,
stereotypes, and perceptions that work groups have about each other. d. Process consultation-Here, an outside consultant helps the manager understand
how interpersonal processes are affecting the way work is being done. e. Survey feedback-It is a technique for assessing attitudes and perceptions,
identifying discrepancies in these, and resolving the differences by using survey information in feedback groups. An individual is likely to resist
change because of the feeling ___; of uncertainty When Joshua proposed cross-training his employees so absences and vacations would not pose
such a problem in productivity, his employees objected. Their resistance came from their _;fear that they would be forced out of their habits Shelly
was the most senior employee in the department and knew just about everything about everyone else's job. If all employees in the department were
cross-trained, Shelly would no longer have an advantage that brought with it special privileges. Shelly's resistance to change came from her _; concern
over personal loss Back2Work succeeded because it offered personalized assistance to its clients–people who had lost jobs–beginning with having a
live person answer every phone call. When management proposed an automated answering service with a directory tree ("Press 1 for a company
directory", for example), Cathy was concerned the company would lose customers. Cathy's resistance stemmed from her ;belief that the change was
incompatible with the goals and interests of the organization. Which one of the following techniques for reducing resistance to change assumes that
much of the resistance lies in misinformation? ;education and communication Fred's Donuts is installing new equipment in its bakery. Many
employees are fearful they will not be able to operate it. Which one of the following courses of actions is best for Fred to use to overcome this
employee resistance? ;educate employees and communicate with them In addition to face-to-face meetings, employers are encouraged to use _to
communicate information about changes to their workforce. ;social media __ involves bringing individuals directly affected by the proposed change
into the decision-making process. ;Participation Back2Work is considering replacing the receptionist who answers the phone with an automated
answering system. Back2Work should _to reduce resistance to this change.;involve the current receptionist in the decision process
Which one of the following techniques for reducing resistance to change includes employee counseling, therapy, new skills training, or a short paid
leave of absence. ;facilitation and support __ involves exchanging something of value for an agreement to lessen the resistance to the change effort.
;Negotiation __ involves distorting facts to make the change appear more attractive.; Manipulation and co-optation Which of the following is a
favorable condition that will facilitate a cultural change?; A dramatic crisis occurs. One reason people resist change in an organization is that they are
afraid their skill set will be obsolete. T People may resist change based on habit.
T Negotiation involves bringing those affected by change into the decision-making process. F Manipulation involves the use of direct threats against the
resisters. F Coercion involves the use of covert attempts to influence others. F A disadvantage of coercion is that it may be illegal and may undermine the
change agent's credibility.
T Why do people resist change? answer: An individual is likely to resist change for the following reasons: uncertainty, habit, concern over personal loss,
and the belief that the change is not in the organization's best interest. Change replaces the known with uncertainty. For example, when quality control
methods based on sophisticated statistical models are introduced into manufacturing plants, many quality control inspectors have to learn the new methods.
Some inspectors may fear that they will be unable to do so and may, therefore, develop a negative attitude toward the change or behave poorly if required to
use them. Another cause of resistance is that people do things out of habit. Every day, when going to work, people probably go the same way, whether
walking, driving, or using mass transit. Usually, they find a single approach and use it regularly. People do not want to have to consider the full range of
options for the hundreds of decisions they make every day. To cope with this complexity, they rely on habits or programmed responses. But when confronted
with change, their tendency to respond in their accustomed ways becomes a source of resistance. The third cause of resistance is the fear of losing something
already possessed. Change threatens the investment people have already made in the status quo. The more that people have invested in the current system,
the more they resist change. They fear the loss of status, money, authority, friendships, personal convenience, or other economic benefits that they value. This
is 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. A final cause of resistance is a person's belief that the change is incompatible with the goals and interests of the organization. For
instance, an employee who believes that a proposed new job procedure will reduce product quality or productivity can be expected to resist the change. If the
employee expresses his or her resistance positively, this actually can be beneficial to the organization. List and explain the techniques for reducing resistance
to change.
answer: The various techniques for reducing resistance to change are: a. Education and communication-This helps reduce resistance to change by helping
employees see the logic of the change effort. This technique assumes that much of the resistance lies in misinformation or poor communication. b.
Participation-This involves bringing those individuals directly affected by the proposed change into the decision-making process. Their participation allows
these individuals to express their feelings, increase the quality of the process, and increase employee commitment to the final decision. c. Facilitation and
support-This involves helping employees deal with the fear and anxiety associated with the change effort. This help includes employee counseling, therapy,
new skills training, or a short paid leave of absence. d. Negotiation-This involves exchanging something of value for an agreement to lessen the resistance to
the change effort. This resistance technique is quite useful when the resistance comes from a powerful source. e. Manipulation and co-optation-This refers to
covert attempts to influence others about the change. It involves distorting facts to make the change appear more attractive. f. Coercion-This involves the use
of direct threats or force against the resisters A change capable organization __;links the present and the future How can managers increase the likelihood
of making change happen successfully?;They should give individual employees a role in the change process. Which of the following is a characteristic of a
change-capable organization? A) separates the present and the future ;shelters breakthroughs Which one of the following statements is most related to
making successful change happen?; People will support what they help create. Cultural change is most likely to take place when _; there is a leadership
change Which one of the following is a strategy for managing cultural change? ;Redesign socialization processes to align with the new values. __ is the
adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. ;Stress _ prevents an
individual from doing what he desires. ;constraint __ are factors related to an employee's job and include the design of a person's job, working conditions,
and the physical work layout. ;Task demands One way to lessen stress in a job is to __; increase the autonomy in the job __ creates expectations that may
be hard to reconcile or satisfy. ;Role conflict Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected
to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience _; role overload
Darlene is just one of Cameron's "needy" employees who require constant feedback and reassurance. Two other employees bicker constantly. Another one
challenges everything Cameron says or does. Cameron is facing _; interpersonal demands A _personality is characterized by chronic feelings of a sense of
time urgency, an excessive competitive drive, and difficulty accepting and enjoying leisure time. ;Type A Stress symptoms are grouped under the categories
of __; physical, psychological, and behavioral Which of the following is a physical symptom of stress? ;changes in metabolism Which of the following
is an example of a psychological symptom of stress?;procrastination Changes in eating habits are a _symptom of stress.;behavioral Which one of the
following is true regarding reduction of employee stress?; In order to reduce stress, managers should make sure that the employee's abilities match the job
requirements. Managers offer __to employees who want to talk to someone about their problems. ;employee counseling A __ helps employees whose
personal lives suffer from a lack of planning to sort out their priorities. ;time management program Cultural change is easier when the organizational culture
is strong. F Cultural change is likely to take place when a dramatic crisis occurs. T A leadership change can facilitate cultural change. T Stress is the
adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. T Stress can be caused by
personal factors and by job-related factors.T Employers believe the main reason people leave their jobs is stress. F Taking away the employee's
opportunity to participate in decisions that affect him/her is one way to relieve work-related stress. F Type B personalities seldom experience the
symptoms of stress. F Stress symptoms can be categorized as physical, psychological, and psychomotor. F A realistic job preview during the selection
process minimizes stress by reducing task overload. F What are the conditions that facilitate cultural change? answer: The conditions that facilitate cultural
change are: a. Occurrence of a dramatic crisis-An unexpected financial setback, the loss of a major customer, or a dramatic technological innovation by a
competitor can weaken the status quo and make people start thinking about the relevance of the current culture. b. Change in leadership-New top leadership
can provide an alternative set of key values and may be perceived as more capable of responding to the crisis than the old leaders were. c. Young and small
organization-The younger the organization, the less entrenched is its culture. It is easier for managers to communicate new values in a small organization
than in a large one. d. Weak culture-Weak cultures are more receptive to change than are strong ones. Write a short essay on stress, particularly as it
relates to the workplace. answer: Stress is the adverse reaction people have to excessive pressure placed on them from extraordinary 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. However, stress is more often associated with constraints and demands. A constraint prevents an individual from doing what he desires.
Demands refer to the loss of something desired. When an employee has his annual performance review at work, he feels stress because he confronts
opportunity, constraints, and demands. A good performance review leads to a promotion, greater responsibilities, and a higher salary. But a poor review
keeps him from getting the promotion. An extremely poor review might lead to his being fired. Just because the conditions are right for stress to surface,
however, does not 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. What are stressors? Discuss the five major categories of organizational stressors. Answer: Stress is
caused by personal factors and by job-related factors called stressors. Change of any kind-personal or job-related-has the potential to cause stress because it
involves demands, constraints, or opportunities. The five major categories of organizational stressors are: task demands, role demands, interpersonal
demands, organization structure, and organizational leadership. Task demands are factors related to an employee's job. They include the design of a person's
job (autonomy, task variety, degree of automation), working conditions, and the physical work layout. Work quotas can put pressure on employees when
their outcomes are perceived as excessive. The more the interdependence between an employee's tasks and the tasks of others, the greater is the potential for
stress. Autonomy, on the other hand, tends to lessen stress. Jobs in which temperatures, noise, or other working conditions are dangerous or undesirable can
increase anxiety. So, too, can working in an overcrowded room or in a visible location where interruptions are constant. Role demands relate to pressures
placed on an employee as a function of the particular role he plays in the organization. Role conflicts create expectations that may be hard to reconcile or
satisfy. Role overload is experienced when the employee is expected to do more than time permits. Role ambiguity is created when role expectations are not
clearly understood and the employee is not sure what he has to do. Interpersonal demands are pressures created by other employees. Lack of social support
from colleagues and poor interpersonal relationships can cause considerable stress, especially among employees with a high social need. Organization
structure can increase stress. Excessive rules and an employee's lack of opportunity to participate in decisions that affect him or her are examples of
structural variables that might be potential sources of stress. Organizational leadership represents the supervisory style of the organization's managers. Some
managers create a culture characterized by tension, fear, and anxiety. They establish unrealistic pressures to perform in the short run, impose excessively tight
controls, and routinely fire employees who do not measure up. This style of leadership ___ refers to the ability to combine ideas in a unique way or to make
unusual associations between ideas. ;Creativity
_ is the process of taking a creative idea and turning it into a useful product or work method. ;Innovation Which of the following is an example of a
cultural variable that fosters innovation? ;low external controls When a member of her team offers an "off-the-wall" solution to a team problem,
Martina has to contend with what cultural variable? ;tolerance of the impractical Which of the following is a structural variable that supports
innovation? ;work and non-work support An innovative culture is likely to have _; tolerance of conflict Edwin would like to increase the level of
creativity and innovation in his department. One step he could take would be to _; decrease external control Which of the following structural
variables is supportive of organizational innovation? ;high interunit communication Earnest's team works well when given "big picture" goals and
allowed to develop ideas without detailed explanations or guidance. This would indicate Earnest's team is _; accepting of ambiguity __ actively and
enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented. ;Idea champions Most idea
champions _; have extremely high self-confidence Design thinking can provide a process for _; coming up with things that don't exist Creativity
refers to the ability to combine ideas in a unique way or to make unusual associations between ideas. T Design thinking can do for innovation what
TQM did for quality. T List a few cultural characteristics that an innovative organization possesses. Answer: An innovative organization has the
following cultural characteristics: a. Accept ambiguity - Too much emphasis on objectivity and specificity constrains creativity. b. Tolerate the
impractical - Individuals who offer impractical, even foolish, answers to what-if questions are not stifled. What at first seems impractical might lead to
innovative solutions. c. Keep external controls minimal - Rules, regulations, policies, and similar organizational controls are kept to a minimum. d.
Tolerate risk - Employees are encouraged to experiment without fear of consequences should they fail. Mistakes are treated as learning opportunities.
Employees do not fear to put forth new ideas. e. Tolerate conflict - Diversity of opinions is encouraged. Harmony and agreement between individuals
or units are not assumed to be evidence of high performance. f. Focus on ends rather than means - Goals are made clear, and individuals are
encouraged to consider alternative routes toward meeting the goals. Focusing on ends suggests that several right answers might be possible for any
given problem. g. Use an open-system focus - Managers closely monitor the environment and respond to changes as they occur. h. Provide positive
feedback - Managers provide positive feedback, encouragement, and support so employees feel that their creative ideas receive attention. i. Exhibit
empowering leadership - A leader of an innovative organization lets his subordinates know that the work they do is significant. He provides
organizational members the opportunity to participate in decision making. He shows them that he is confident that they can achieve high performance
levels and outcomes. This has a positive influence on creativity. Disruptive innovation describes _;innovations in products, services, or processes
that Which one of the following would be considered a disruptive innovation?; Humans develop the capability of Which one of the following would be
considered a sustaining innovation?; Batteries for electric cars have a range of 500 miles on one charge. The term skunk works refers to_; an
entrepreneurial operation funded by a large organization Disruptive innovations are more likely to come from large companies with extensive
resources.
F Large organizations have distinct cultures that limit their ability to move into new markets. T Explain why large organizations are less likely to create
disruptive innovations. Answer: Large organizations create rules and regulations to standardize operations. They create multiple departments with defined
areas of responsibility. And they create socialization processes–like new-employee orientations and corporate handbooks--that convey to employees "the
way we do things around here." The result is that these successful organizations establish entrenched cultures and values that, on one hand, guide employees;
but, on the other hand, also act as constraints on change. New ideas for products or services that differ significantly from the status quo are a threat to the
established power structure within large companies. Successful organizations focus on what they do best. They repeat what has succeeded in the past and
they put their resources into the ventures that have the highest probability of generating maximum profits. Small markets, which typically describe those
applicable to early disruptive innovations, don't fit with the growth needs of large organizations. Importantly, large organizations have distinct cultures and
values that define their capabilities and limit their ability to move into new products or markets. Disruptive innovations, especially at the beginning, typically
apply to emerging or small markets and project lower profits than a firm's mainline products. And their novelty has little or no appeal to the organization's
most profitable customers.