Chapter 11-Summary Review Questions 1. The interdependent nature of these three activities is self evident.

Consider an organization with a great mission and a superb organizational structure, but a culture that implicitly encourages shirking and unethical behavior. Or one with a sound directions and strong culture, but counterproductive teams and a zero sum reward system that lead to the dysfunctional situation in which one partys gain is viewed as another partys loss and collaboration and sharing are severly hampered. Clearly, such combinations would be ineffective. Often, failure of todays organizations can be attributed to a lack of equal consideration of these three activities. 2. Emotional Intelligence-An individuals capacity for recognizing his or her own emotions and those of others, including the five components of self awareness, self regulation, motivation, empathy, and social skills Key elements-Self awareness, self regulation, motivation, empathy, and social skills. Findings indicate that EI is a better predictor of life success, including occupational attainments, than IQ. Socially skilled people tend to have a wide circle of acquaintances as well as a knack for finding common ground and building rapport. Social skill can be viewed as the culmination of the other dimensions of EI. Drawbacks could be too much of a good thing. Overconfidence, judgmental, overly critical are examples of drawbacks. 3. Effective organizations must also redistribute information, knowledge and rewards. A company might give frontline employees the power to act as customer advocates, doing whatever is necessary to satisfy customer. The company needs to disseminate information by sharing customer expectations and feedback as well as financial information. 4. Each of the items should be viewed as necessary, but not sufficient. A company could look into deviating away from some of the terms to create a global environment for their corporation and their employees. 5. Research has found somewhat inconsistent results concerning the overall relationship between ethical performance and measures of financial performance. However, positive relationships have generally been found between ethical performance and strong organizational culture, increased employee efforts, lower turnover, higher organizational commitment, and enhanced social responsibility. 6. Financial loss from suppliers, customers, and governmental agencies.

7. Compliance based ethics programs are programs for building ethical organizations that have the goal of preventing, detecting, and punishing legal violations while Integrity based ethics programs are programs for building ethical organizations that combine a concern for law with an emphasis on managerial responsibility for ethical behavior including (1) enabling ethical conduct; (2) examining the organizations and members core guiding values, thoughts, and actions; and (3) defining the responsibilities and aspirations that constitute an organizations ethical compass. 8. Corporate credos and codes of conduct are mechanisms that provide statements of norms and beliefs as well as guidelines for decision making. They provide employees with a clear understanding of the organizations policies and ethical position. Such guidelines also provide the basis for employees to refuse to commit unethical acts and help to make them aware of issues before they are faced with the situation. Chapter 12-Summary Review Questions 1. A way to view the impact of an innovation is in terms of its degree of innovativeness, which falls somewhere on a continuum that extends from incremental to radical. Some innovations are highly radical (an innovation that fundamentally changes existing practices); others are only slightly incremental (an innovation that enhances existing practices or makes small improvements in products and processes. 2. The uncertainty about outcomes is one factor. Another factor is that the innovation process involves so many choices. These choices present five dilemmas that companies must wrestle with when pursuing innovation: Seeds vs. Weeds, Experience vs. Initiative, Internal vs. External Staffing, Building capabilities vs. Collaborating, and Incremental vs. Preemptive Launch. Each company needs to create a list of four questions: How much will the innovation initiative cost? How likely is it to actually beomce commercially viable? How much value will it add; that is, what will it be worth if it works? What will be learned if it does not pan out? 3. Focused is which CE activities are isolated from a firms existing operations and worked on by independent work units. Dispersed is which all parts of the organization and every organization member are engaged in intrapreneurial activities. 4. Business incubators are designed to hatch new businesses. They are a type of corporate NVG with a somewhat more specialized purpose to support and nurture fledgling entrepreneurial ventures until they can thrive on their own as standing alone businesses.

5. Product champions are those individuals working within a corporation who bring entrepreneurial ideas forward, identify what kind of market exists for the product or service, find resources to support the venture, and promote the venture concept to upper management. No matter how an entrepreneurial idea comes to light, however, a new venture concept must pass through two critical stages or it may never get off the ground: Project definition and Project Impetus. 6. Proactiveness refers to a firms efforts to seize new opportunities. Competitive aggressiveness refers to a firms efforts to outperform its industry rivals. 7. Companies that choose to grow through internal corporate venturing must remember that entrepreneurship always involves embracing what is new and uncertain.