Darwin’s statement gives an idea that to survive in this world it is important to change. It is very hard for the business organisations to survive in the current world of competition and technology. To survive, the important factor is to change or to innovate. Organisations must be creative to gain the market share or to survive in complex environment. This report tends to explain about innovative culture with reference to an organisation. It explains about the factors which enhances creativity, which further helps in innovation. It shows the properties of creativity and their application upon an organisation.
It is also analysed that whether the organisation is innovative or not. The second part of the report explains about complexity, chaos theory and complex adaptive systems. One of complexity’s concept i. e. complex adaptive systems is explained in detail including its properties. Innovative procedure of organisation is compared with emergent property of complex adaptive systems. The organisation in this report is known as SEMCO. It is a Brazilian manufacturing company owned by Ricardo Semler. Ricardo Semler did some changes in the organisation which helped him to work in the fluctuating economy of Brazil.
Those changes are discussed in the report and are fully analysed. The concept of modernity and post-modern is also discussed and compared with the organisation. The report is concluded in the end. 2. 0 Innovation Innovation consists of generation of new idea and its implementation into a new product, process or service leading to the dynamic growth of the national economy and the increase of employment as well as to a creation of pure profit for the innovative business enterprise (Urabe, Child and Kagono, 1988). There are many definitions to innovation.
The term innovate means to introduce something new or to make changes in anything established. Business is obsessed with innovation. Companies operating in expanding markets are always looking for something that will enable them to continue to grow. Companies operating in volatile or difficult markets believe they have to find new ideas in order to maintain or improve their market share. Good businesses obsess about innovation constantly whereas great businesses obsess about it constantly and do something about it (Jolly, 2003). Innovation has a vital role in development of any organisation.
It helps any business to survive in the new world which is full of technology and creativity. To be an innovative organisation, it is important for the organisation to be creative. Creativity is the main base of the innovation. According to Csikszentmihalyi (1999), psychologists tend to see creativity as a mental process whereas creativity is as much a cultural and social as it is a psychological event. Creativity is thus needed to be understood properly to know about innovation. An Amabile (1998) state that within every individual, creativity is a function of three components: expertise, creative thinking skills and motivation.
Source: www. creativityatwork. com Amabile says that managers need to influence these components to make an organisation creative. According to Amabile, expertise means knowledge, which is technical, procedural or intellectual. Creative-thinking skills determine how flexibly and imaginatively people approach problems. Motivation is also very important and inner or intrinsic motivation is far more effective than external rewards in creativity. There are six general categories of managerial practice that affect creativity. These categories are: – hallenge means right person at right job.
To stimulate creativity there should be a good connection between people and jobs. Managers must have a good knowledge about its employees, they should know which job the employee would take as a challenge and would apply their skills to do it. It includes all the three components of creativity. By getting a good job, an employee would apply his skills and knowledge in creative thinking which would also develop intrinsic motivation. In Semco, the second principle is that the responsibility for any task belongs to the person who claims it (Semler, 1994).
It means that the tasks are chosen by the employees themselves in which they are interested and they consider it as a challenge. This helps them not only to perform better in their job but also to think creatively about new tasks. According to Amabile, granting freedom to the employees to decide the way of doing process is the key to creativity. It means that if employees know clearly about their goals and objectives, they should be allowed to decide any method to achieve the goal. This helps in creativity. Though it has two assumptions, these are as follows: –
In Semco, employees set up their own objectives and move towards them in their own way. Thus, not only they are clear about heir objectives but also are given freedom to adopt any method to achieve those objectives. Resources are very important for any organisation. According to Amabile, there are two resources which affect creativity. These are time and money. Under some circumstances, time pressure can heighten creativity. Employees who work in less time or in pressure can have the increase in intrinsic motivation by increasing the sense of challenge.
Though time pressure can enhance creativity but fake or impossibly tight deadlines can kill creativity. In Semco, Brazilian economy provided the time pressure. To survive in this time pressure management took several steps which lead to their satellite program. The second important resource is money or finance. According to Amabile, there is a ‘threshold of sufficiency’. If this resource is provided above this threshold, it does not boost creativity and below this threshold kill creativity. Employees should be provided with sufficient funds to make them creative.
In Semco, the funds for the project or the task to be accomplished are decided by the teams. Therefore, they are provided with ‘threshold of sufficiency’ which would enhance in creativity. Another important resource is physical space which is misunderstood when comes to creativity (Amabile, 1998). Creative teams need open and comfortable offices. In Semco, there are no proper offices. Employees can even work from home, wherever they feel comfortable. This leads to creativity. Work-group features means the teams working to accomplish a task.
To develop or enhance creativity, it is essential to build the teams with creative ideas. It is somewhat similar to challenge, where there is right man for right job but here it is a right composition of team for a right job. According to Amabile, a manager should select a team of people with various intellectual foundations and approaches to work – that is, different expertise and creative thinking styles – ideas often combine and combust in exciting and useful ways. These factors help in development of the three components of creativity.
Amabile says that diversification is not only the factor but managers should also put some other factors like members must share excitement over team’s goals, they must support each other during difficult periods and setbacks and the information should be shared between the members of the team. The homogeneous teams though can get the solutions quickly and work with high morale, but these teams do a little to enhance creativity (Amabile, 1998). In Semco, the teams are made from the expertise of various departments.
Everyone participates in the discussion on the preparation of team. For example: – while preparing a plan for the plant of a cookie factory, an independent agent tell about the project, then they’ll share information widely, announce a meeting (to which anyone can come and no one is summoned), and chair the discussion (which will cover several unexpected proposal from unanticipated participants like the guy from refrigeration with a special point of view about handling butter and coconut). This can be called as a process which can lead to a creative team.
Supervisory encouragement means encouragement by the managers to the creative efforts by the employees. According to Amabile (1998), the connection to intrinsic motivation here is clear. Certainly, people can find their work interesting or exciting without a cheering section for some period of time. But to sustain such passion, most people need to feel as if their work matters to the organization or to some important group of people. Otherwise, they might as well do their work at home for their own personal gain.
Encouragement leads to development of morale and intrinsic motivation. In many organisations, new ideas are not seen as good or useful but are reacted critically. This type of culture increases extrinsic motivation but effects negatively on intrinsic motivation. Therefore, to enhance creativity, the new ideas of the employees should be considered and must be explored further. Kanter (1991) said “the successful creative leaders not only formulates a vision but has power to advance the idea and maintain the momentum.
” It means that creative leaders need influential power to communicate their vision and the ability to inspire and assist others to carry their dreams on into reality. In Semco, though some new ideas resulted in failure but they were implemented and not only considered thoroughly but were also encouraged. Encouragement from supervisors certainly fosters creativity, but creativity is truly enhanced when entire organisation supports it (Amabile, 1998). Creative organisations have such systems or procedures and culture which help in development of creativity.
Information sharing and collaboration support all three components of creativity. Organisation support is very helpful in various acts such as discussion, taking of risk, exploration of new ideas, working in teams and many others. These all acts help the employees to be creative and work with high morale to achieve the objectives. In Semco, the first principle states that information is the ultimate source of virtually all power (Semler, 1994). There are open meetings in which information is shared between the employees. Nothing is kept secret in the organisation and employees know what are they gaining and what not.