Stimulating Innovation Creativity The ability to combine ideas

Stimulating Innovation • Creativity – The ability to combine ideas in a unique way or to make an unusual association • Innovation – Turning the outcomes of the creative process into useful products, services, or work methods Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 12

Exhibit 16. 5 Systems View of Innovation Inputs Transformation Outputs Creative individuals, groups, organizations Creative environment, process, situation Innovative product(s), work methods Source: Adapted from R. W. Woodman, J. E. Sawyer, and R. W. Griffin, “Toward a Theory of Organizational Creativity, ” Academy of Management Review, April 1993, p. 309. Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 13

Structural Variables Exhibit 16. 6 Innovation Variables • Organic Structures • Abundant Resources • High Interunit Communication • Minimal Time Pressure • Work and Nonwork Support STIMULATE INNOVATION Human Resource Variables • High Commitment to Training and Development • High Job Security • Creative People Cultural Variables • • Acceptance of Ambiguity Tolerance of the Impractical Low External Controls Tolerance of Risks Tolerance of Conflict Focus on Ends Open-System Focus Positive Feedback Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 14

Creating the “Right” Environment for Innovation • Structural Variables – – Adopt an organic structure Make available plentiful resources Engage in frequent interunit communication Minimize extreme time pressures on creative activities – Provide explicit support for creativity Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15

Creating the “Right” Environment for Innovation • Cultural Variables – – – – Accept ambiguity Tolerate the impractical Have low external controls Tolerate risk taking Tolerate conflict Focus on ends rather than means Develop an open-system focus Provide positive feedback Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 16

Creating the “Right” Environment for Innovation • Human Resource Variables – Actively promote training and development to keep employees’ skills current – Offer high job security to encourage risk taking – Encourage individuals to be “champions” of change Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 17