Introduction
In this paper, the steps and ways of creating an innovative and creative climate will be discussed. It will discuss that how a business provides its employees with the opportunity of doing any creative work. It also explains the importance of innovative climate for business and the relationship of innovativeness to the productivity of the firms
Creative and Innovative Environment
Creativity is adding new ideas or any new method to anything. It means finding new and different ways of doing a thing. Creativity can be either in the workplace or any other field. In old times, people only use creative ideas in art and drawing and architecture related to this. The organizations focus on creating an innovative and creative environment in which employees bring out different and creative ideas which lead to the success of the organization (Johnston & Bate, 2013).
Source: (Herbig, 1994)
Creativity and Innovation in the Workplace
Creativity and innovation have now become a very important part of any organization. These days’ organizations focus a lot towards increasing creativity and motivation of employees. They prefer the workforce that is more creative and innovative. Business organizations prefer to take young employees as they are more creative. These energetic people can add a lot to the business through their new innovative ideas (McAdam, McConvery & Armstrong, 2004).
Creating an Innovative Workplace
Creativity can be achieved by providing the employees with chances to think in a freeway. To create and innovative and creative environment, the following steps should be followed
Providing a Simulative Environment
Creativity can be achieved by providing employees with such a workplace where they have the opportunities of reading articles, journals, where different activities are perfumed which add to the creativity of employees. The organization should provide the employees with an inspiring and motivation environment (Avermaete et al, 2003).
Corporate Missions and Challenges
The organization should give the employees such challenges which lead the employees towards implying their creativity and using their minds in that perspective. When the employees are directed towards achieving those challenges, then it will bring out their skills and will benefit the organization (Chesbrough, 2010).
Culture Effectiveness
The organizational culture also plays a very important role in determining the working practices of employees. If the employees feel free in the culture of the organization, then the employees will use their creative ideas and with also feel free to apply them. (Chesbrough, 2010).
Leadership Style
Leadership style is also effective in the thinking and working habits of the employees. If the leader of the organization give the employees pace of thinking and doing what they want to be then able to get new ideas from their creative employees. (Levinson, 2007).
Resources and Skills
The organizations should not only focus on hiring creative and innovative employees, but it should also focus on proving the employees with opportunities to do their work at their best. It should give the employees proper worships. If there is proper flow of creative ideas given by the employees so that its movement to the leader will lead to the betterment of the organization (Chesbrough, 2010).
Structure and System
The structure and system of the organization should also be in such a manner that it will compensate the employees for the work they are doing in the organization so that they become more motivated in doing their work. If the employees are giving bonuses and different presents in their extra creative and innovative world, then they will work with more motivation for the organization (Gumusluoglu & Ilsey, 2009).
Relationship among Employees
The relationship among employees is as important for promoting creativity and motivation in any organization. The collective efforts of the employees are always efficient as compared to the individual efforts because more minds have more ideas and more uniqueness. It will increase the creativity of the organization and will also increase the ability of employees to be innovative (Andriopoulos, 2001).
Theories of Creativity
Psychoanalytical theory of Creativity
According to this theory people become creative as a result of change in the situations or circumstances around them. This theory tells us that when people face different kinds of difficult situations around them then it forces them to think in a creative and innovative way. So if a firm wants to make its employees creative it should present different kinds of challenging situations before them which will force them to use their minds in creative way. (Stephen, 2013)
Theory of Mental Illness:
According to some theorists creativity is the result of mental illness. They say that creativity and innovation comes if person is facing and disease like schizophrenia and other diseases which results in mood swings. However, this theory is not beneficial from business perspective because organizations cannot take the employees having mental disorders because besides creativity many other things are also needed. (Stephen, 2013)
Diffusion Theory
The diffusion theory says that there must be such a system of adoption in and organization that any kind of change or introduction of a new product can be communicated to everyone in the organization. The factors that affect the adoption must be focused upon for progress (Behavioral Change Model, 2016)
Comparing and Contrasting Theories:
When these theories are compared it shows that the above two theories are almost of the same concept but first discusses the circumstances and second one the mental affect. First one can be implemented in organizations but second one cannot be because it has negative impacts. The third one is different from both of the above because it deals with adoption of the change in organizations.
Creativity at Different Business Levels
Creativity varies for different business levels. At small levels, the techniques that are used for creativity are different from that at the large or medium level.
Source: (Balanced innovation for US manufacturers)
For Small Business
At the start of the business, the organization do not have enough funds to provide the employees it such opportunities of a creative environment and good compensation. In that case, the organization should focus on maintaining good relationships with its employees for creativity.
For Medium Businesses
For medium firms, creativity can be achieved by improving the productivity techniques. At this level of business, creativity can be attained by improving the technology that the firm is using for making its products and by adding new and innovative things in its products (Chesbrough, 2010).
For Larger Firms
Creativity at large business levels is not difficult to attain because the larger companies have the resources that can provide them with creative ad motivating employees. If they do not have motivating employees, then they have such resources that they can give their employees different workshops that can make their employees think in a creative and innovative manner (Kivimaki et al, 2000).
Importance of Creativity and Innovation
Creativity has a major importance in business. In our business environment, we sometimes face problems that cannot be solved by thinking in a conventional manner so we have to force our minds than to thinks in a creative manner so that we can find solutions to the problems that we are facing.
Source: (Ifo,2008)
Increasing Productivity of Organization
Creativity is important for increasing the productivity of any organization. Thinking in a creative manner brings out many new ideas and new methods of doing business which laeds to the production of new products in the organization. This change or betterment in the productivity method will improve the profitability of the organization (Caldwell & O’Reilly, 2003).
The example of an increase in productivity because of creativity can be taken from general life that Dairy Milk has added much creativity to its products by introducing different products in the market which has led to the increase in the productivity of dairy (Chesbrough, 2010).
Source: (Booz and company)
Problem Solving
Creativity also helps in solving different problems at the organizational level. Sometimes there are the problems in the organization that is different from routine problems. It will then need that employees should think in such a way that will help to solve this problem as soon as possible which can happen through creative and innovative thinking.
Consider the example of an organization facing a problem in advertising. It has to attract the customers in different manners as compared to their competitors. It will be only possible if the department of advertisement thinks in a creative way and make such creative and innovative ads that will attract the employees towards their product (Chesbrough, 2010).
Make the Products Memorable
Creativity is also important in such aspect that it makes the product alive in the minds of people. The product that is brought into existence after so much creativity and innovation will attract the customers more as compared to the product that is prepared simply, and it does not have any innovative or creative thinking.
We can quote the examples from our lives that if our teachers are giving us any lecture and it is difficult for us to grab that thing and if our teachers provide us with a video clip or ant example from our routine life that it will remain in our minds for a very long time.
Employee Betterment
Creativity leads to the betterment in the thinking ways of the employees. When employees live continuously in such a creative and innovative environment, their thinking capabilities are improved and the employee workforce will be improved and will provide the organization with long-term benefits. Nestle and Coke continuously focus on making its products more and more creative, so this had made their workforce creative and provide them with benefits (Flynn & Chatman, 2001).
Source: ( Garry Hamell,2009)
Conclusion
The above report shows that creativity and innovation are an important part of any organization and will increase the profit margin of the business. The changing work environment of the business organizations due to contemporary trends of globalization enforces the need for innovation and creativity in the business operations at all levels of the company.
References
Andriopoulos, C., 2001. Determinants of organisational creativity: a literature review. Management decision, 39(10), pp.834-841.
Avermaete, T., Viaene, J., Morgan, E.J. and Crawford, N., 2003. Determinants of innovation in small food firms. European Journal of Innovation Management, 6(1), pp.8-17.
Behavioral Change Model, (2016). Diffusion of Innovation Theory, 2016. Retrieved from http://sphweb.bumc.bu.edu/otlt/MPH-Modules/SB/SB721-Models/SB721-Models4.html
Caldwell, D.F. and O'Reilly, C.A., 2003. The determinants of team-based innovation in organizations the role of social influence. Small group research,34(4), pp.497-517.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range planning, 43(2), pp.354-363.
Flynn, F.J. and Chatman, J.A., 2001. Strong cultures and innovation: Oxymoron or opportunity. International handbook of organizational culture and climate, pp.263-87.
Gumusluoglu, L. and Ilsev, A., 2009. Transformational leadership, creativity, and organizational innovation. Journal of business research, 62(4), pp.461-473.
Herbig, P. A. (1994). The innovation matrix: Culture and structure prerequisites to innovation. Praeger Pub Text.
IFO, (2016). Importance of technical skills and creativity for the innovation ability of a firm,2016.Retrievedfrom: https://www.google.com.pk/search?q=creativity+innovation+important+business&biw=1366&bih=643&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiFqM3w7L_LAhWCnRoKHUceDDkQ_AUIBigB#tbm=isch&q=creativity+innovation+important+business+graphs+and+charts&imgrc=WszUGvDYME9PQM%3A
Johnston, R.E. and Bate, J.D., 2013. The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.
Kivimäki, M., Länsisalmi, H., Elovainio, M., Heikkilä, A., Lindström, K., Harisalo, R., Sipilä, K. and Puolimatka, L., 2000. Communication as a determinant of organizational innovation. R&D Management, 30(1), pp.33-42.
Levinson, J.C., 2007. Guerrilla Marketing: Easy and Inexpensive Strategies for Making Big Profits from Your SmallBusiness. Houghton Mifflin Harcourt.
McAdam, R., McConvery, T. and Armstrong, G., 2004. Barriers to innovation within small firms in a peripheral location. International Journal of Entrepreneurial Behavior & Research, 10(3), pp.206-221.