Learning Objectives

LO 9-1 Discuss the critical nature of creativity and innovation in today’s organizations.

Creativity is the generation of meaningful ideas by individuals or teams. Innovation is the creation and development of a new product or service. Organizations need to redefine, reinvent, and repurpose brands and products to keep up with market demand. Creativity and innovation are the lifeblood of success­ful organizations.

LO 9-2 Describe the three-component model of creativity.

The three-component model of creativity proposes that cre­ativity depends on the presence of domain-relevant skills and expertise, creativity-relevant processes, and intrinsic task moti­vation. Domain-relevant skills and expertise provide knowledge about the relevant subject and the skills and talent to provide the most creative and productive responses. Creativity-relevant processes are work methods dependent on certain personality characteristics, methods of thinking, and knowledge of heuris­tics. Personality traits such as self-discipline, perseverance, delayed gratification, and independence appear to be associated with creative minds. Intrinsic task motivation ensures that people who have an innate interest in a chosen task will be more moti­vated in producing creative ideas.

LO 9-3 Identify the three types of support for creativity.

People with creative potential tend to possess the skills and capacity to generate ideas. In contrast, practiced creativity

allows people who perceive the appropriate opportunities to apply these skills in the workplace. Organizations that do not cultivate an environment for creativity are at a disadvantage because they are neglecting potential resources that could help them operate and compete more effectively.

The three types of support for creativity are organizational, super­visory, and work group. Organizations that provide support for creativity, appropriate rewards and feedback, and encourage a collaborative environment tend to possess a more creative cul­ture. Supervisory support for creativity takes place when super­visors have the ability to communicate, set clear goals, and are confident and protective of their teams. Work group support for creativity takes place when the work group members communi­cate well, respect each other, are committed to their work, have diverse backgrounds and perspectives, and are willing to help each other out.

LO 9-4 Outline the steps in the innovation process.

In the first step an idea is born out of recognition of a need for a solution and generated from existing information, experience, and knowledge. The second step is to identify any advantages and disadvantages associated with the innovation, explore costs and value, and set goals and priorities. The final stage is the production and distribution of the innovation. It is in this stage that the idea is brought to life.

LO 9-5 Distinguish among the various types of innovation in organizations.

Product innovation is the development of new or improved goods or services sold to meet customer needs. Process innova­tion is the introduction of new or improved operational and work methods. Organizational structure innovation is the introduction or modification of work assignments, authority relationships, and communication and reward systems.

People innovation includes changes in the beliefs and behaviors of individuals working in an organization. Exploitative innovation focuses on the enhancement and reuse of existing products and processes. Exploratory innovation focuses on risk taking, radi­cal thinking, and experimentation.