Organizational creativity and innovation refer to developing new ideas in the organization. This report is mainly focused on the knowledge and understanding of organizational creativity and innovation. It shows how innovation and creativity can change the overall prospects of the organization. Also, the challenges that can hinder the organizational creativity and the opportunities that can develop the organization in a creative way. The main objective of manager of an organization should be to grab the opportunities they get from the employees and from the organizational environment that can affect the creativity and innovation. Also, to take remedies against the challenges that they may face forming the employees and the market. To develop a creativity and innovation in the organization three models have been developed in the report to have a clear understanding on how to be creative in the firm and what factors can affect the creativity and innovation in the organization. Creativity and innovation are important for every organization to develop new ideas for the betterment of the firm. If the company could be able to generate enough creative ideas to develop a product than its competitors then they could lead the market and capture a large number of customers. Because customers mostly rely on the innovation.
Creativity is the creation of new ideas in creating something valuable. And innovation is the process of converting the ideas or invention into tangible goods or services which can create a value. Creativity and innovation are the way of creating new goods or services from the new ideas and plan that can be provided by an individual or a group of people. Creativity and innovations are related but they are not synonyms. Creativity is the mental thinking or the ability to think differently by an individual and innovation is the way of converting these ideas into the action
To convert any ideas into a productive value creation, we have to focus on the levels of creativity
1. Discovery: Discovery is the lower level of creativity. This refers to the creativity that was already in the world and you just found it. In business, suppose the way of recording data from excel to tally is the lower level of creativity. Because we can use excel for the recording but by using tally we can do our work fast.
2. Invention: Invention refers to the higher level of creativity. In a business, the creation of new products in the new market area that was never been invented or used by any customer or the producer is known as innovation. Because they didn't think that the invented product can be used as a marketable product.
3. Creation: As the highest level of creativity, creation refers to the invention of something that was never seen thought by any persons. In business, creating new sources or new methods of production is considered as creation.
Every business needs creativity and innovation to develop their product and create a new market area to survive in the business. Without innovation, no business can survive in the market. Let us recall what was the mistake of Nokia, and what took down the business. Nokia was the largest mobile company in the world having a record share of 48.7% in 2007
There are some challenges that the company faces in the way of organizational creativity and innovation
· Lack of empowerment: The employees of the organization are not effectively empowered to be innovative in the organization. The company uses the traditional method of providing orders to the subordinates which hinder the creativity inside the employee.
Lack of Motivation: An employee should have enough motivation and recognition otherwise they won't be able to generate enough life-changing ideas for the company.
Innovation as one centralized functional group: In many companies, only a group of superiors take the role of creating new ideas in the organizations. They take actions and provide orders to the subordinates.
· Lack of Collaboration: Collaboration among the employees of an organization is one most important factor in promoting creativity. But many organizations are not focusing on the collaboration between the employees of a firm, which hinders the innovation and creativity in the organization.
· Lack of Diversity: Diversity in ideas and employee treatment lead to the innovating ideas, but organizations lacking the diversity may hinder the organizational creativity.
There are some opportunities a business might get to promote creativity and innovation in the organization. These are:
· Be Easygoing: Organizations must focus on the flexible and relaxed work environment to increase team’s productivity.
· Hire for culture: New hiring is a source of having a creative employee other than the current employee of the organization.
· Encourage Diversity: Employees can feel the encouragement in being creative and innovative in the organization when they are encouraged to be diversified.
·Communication among the departments: In today’s business organizations, all the departments are interrelated with each other. This increases the bond among the employees and feels motivated to be creative and innovative.
The main focus of this theory refers to that the work environment of an organization influences the creativity by mechanisms that contribute to creativity which signify a basic foundation for organizational innovation
This refers to the expertise of an employee in the relevant areas. An employee may have the ability to generate new ideas and innovation for the organization if the person has enough knowledge about that areas. Suppose, when an employee has to provide an innovative idea about how to increase sell from the marketing area then that employee has to gather enough knowledge to provide the company with new and innovative ideas.
· Creative thinking:
When a company focuses on the creativity and innovation for the development of the organization then they must have the process of creative thinking in the organization. As for example, the company must organize regular meetings and necessary arrangements so that each employee can think of themselves as a part of the organization and they feel that their ideas are important for the organization.
· Task Motivation:
The organization should provide the employee with the correct motivation so that they feel enough motivated and have the courage to develop new ideas for the development of the organization. And only praise for the innovation is not enough, the company has to provide the employee that has a monetary value, will actually motivate the employee and will give the other employee to be encouraged to provide more ideas for the organization.
The model was developed by an American educational scientist James Melvin “Mel” Rhodes
· Person: Creativity in an organization mostly related to the person working in the organization. A company mainly run by the people who are working in the organization. So, the main factor which can affect the creativity of the organization would be the person in the company. If the employees of the firm are creative then there are more possibilities of new ideas in the organization. On the other hand, if the employees are not enough creative then its difficult to produce new ideas in the organization.
It is the way of thing of a person in the organization. The process here doesn't mean the methodology of the idea.Rather, when a person is given to solve a problem and how they respond to the problem and the way they solve the problem is known as the process. Every person has a different way of thinking, so if the company has employees with the ability to solve a problem in a different way that can be productive for the further arising problem then it will be beneficial for the organization.
· Product: Product is the result of a creative process. When a company produces a product, it is considered to be the outcome of an organizational creative thinking. When the employees are more creative then the product will be more innovative.
· Press: Press refers to the environment or the climate of an organization where the company is being operated. Environment plays a vital role in being innovative in the organization. The environment of the workplace should be working friendly so that the employees feel confident and innovative.
This model was developed by Later Woodman, Sawyer and Griffin in the year 1993. This model indicates that how the individual characteristics, group characteristics and organizational characteristics along with the creative behavior and creative situation affect the organizational creativity
Here, all the relevant components are interrelated with each other. When conducting the employees of the organization involved in the creativity and innovation process, their attributes, way of thinking will affect the creative ideas. The individual’s ideas are being brainstormed in the group discussion regarding the company’s attributes like what the company’s main focus is about, what will be the main objective in the meeting and what the company wants as new ideas for the future development. According to the model, the employees have to maintain a creative behavior in every creative situation. In the meetings, they cannot have unproductive arguments that can hinder the main objective of the creative discussion.
In the era of 21st century, customers are the core of every business. Every company has to focus on satisfying the customers needs to survive in the market. From the past experience, without creativity and innovation in product and firm, a lot of big company fail to survive in the market like Nokia.
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