CREATIVITY AND ENTREPRENEURSHIP: IMPORTANCE OF CREATIVITY IN AN ORGANISATION
Table of Contents
I. Introduction
II. Background of the Company
A. The Firm
B. The Workforce: Background of the Respondents
1. Employee A
2. Employee B
3. Employee C
4. Employee D
III. Refining John Kao’s Creativity Audit Instrument
A. Defining Kao’s Creativity Audit
B. Implementation in the Paper
IV. Interviews with the Respondents
A. Analysis of the Interviews
B. Themes and Sub-themes
V. Analysis of the Organisation
A. The Socio-Environmental Influences
B. Nature of the Groups or Teams in the Organisation
C. Processes of Innovation Present
1. Innovation and the human element
2. Training and Development
D. Management Approaches within the Organisation
E. Analysis of the Managers: What are they doing Right/Wrong?
VI. Analysis of the Findings
VII. Conclusion
VIII. Recommendations
IX. Bibliography
The human mind goes great lengths to generate situations in his/her environment that would make him/her achieve more that he/she could actually dream. Man, in his very nature, does not cease to seek development through a complex amalgamation of credulity and ingenuity. These elements, though inconsistent in its very nature, highlights the common factor that bonds them: human creativity. The concept of creativity is often tied closely with the elements of innovation and technology. With elements such as originality and purpose, creativity addresses the needs of man with reference to their individual development and even societal growth. A clear and present manifestation of this is seen in the evolution of technology in the past decades. The internet and other ICTs have greatly infused themselves to the everyday lives of the common man. With its practical and purposeful nature of these developments, it made lives easier and instituted convenience in our modern processes. One must recognise the situs of these developments is human creativity. Moreover, trends towards the infusion of creativity in the organisation have been observed in recent organisational studies. Often referred to person and processes, creativity has become one of the many elements needed to realise organisational goals of development and growth. It is thus unsurprising that models of creativity in organisation have also materialised, specifically to gauge the capability of the organisation to sustain its growth and establish an edge over the major players in the industry. This study will examine the relationship of creativity and the personnel in a respondent organisation and determine how it contributes to the development and growth of the company.
II. Background of the CompanyIn order to provide a clear picture of the environment to which this study will focus its analysis, a discussion on the background of the respondent company will be provided. Specifically, the discussion will cover an SME called Horizon Limited. The following parts will describe the environment of the firm and the background of the interviewed respondents.
A. The FirmHorizon Limited is a US-based firm that operates in the realm of retail, particularly of computer hardware. This means that they usually serve as distributors to specific stores in the market. They engage primarily in business-to-business transactions which means that they tend to operate as suppliers to the direct sellers of their products. The most common business ally that they have is stall owners and those that own retail spaces in malls and other cyber stores.
The company’s structure, nonetheless, does not rely solely on its sales department. Like any other company of similar nature, Horizon Limited is backed up by a group of individuals that serve as the foundation of the sales operations of the company. This workgroup basically functions as the administrative department of the organisation. It is composed of a seven-person team that deals directly with the accounting, human resource management, and other administrative functions in the organisation. Hence, this study will focus on this workgroup of the Horizon Limited.
B. The Workforce: Background of the RespondentsThe study selected four employees that handle the administrative functions of the company. The rationale for this choice is that they may have a great understanding on the nuances that takes place in the organisation. More specifically, they are also the ones who should be cognisant of the more detailed elements involving the culture of the workforce. They have some idea on how the company deal with elements of creativity such as innovation and development. They have a close grasp on how the company is able to explore, incubate, inspire, and verify the aspects of creativity which the organisation requires to realise its goals.
1. Employee AOne of the respondent employees interviewed in this paper is occupies the position of Chief Administrative Officer. He is the one who oversees the operation of the three other segments of the department. Specifically, he supervises the operations of the accounting and finance segment, the human resource affairs segment, and the information technology (IT) and marketing communications. The individual group leaders of the said segments report to him pertaining to the specific developments in their respective areas. This shows that he is aware of the certain nuances in every sector of the administrative workgroup of Horizon.
2. Employee B
Another respondent, employee B, holds a position as an accountant in the Accounting and Finance segment of the company. She is a part of a three-person team that deals with the finance, accounting, and purchasing and procurement activities of Horizon. She has been employed in the company for over five years.
3. Employee CEmployee C is a part of the Human Resource Affairs segment of the Administrative department of Horizon. She is specifically in charge of the human resource management of the organisation. This means that she deals with the areas of incentives, salaries, wages, as well as the recording of the achievements and infractions of the employees with reference to organisational rules and regulations.
4. Employee DLastly, Employee D works as a technician in the Information Technology and Marketing Communications segment of the company. This means that he works with the intranet of the company as well with the company website. He maintains these applications to facilitate the communication needs of the elements of the organisation, both internal and external.
III. Refining John Kao’s Creativity Audit Instrument
The following discussions will provide a brief description of the theoretical framework employed in this study. Particularly, Kao’s creativity audit will be discussed as well as the specific questions asked to the respondents with reference to the theory.
A. Defining Kao’s Creativity AuditThe attention that creativity is getting nowadays is unprecedented. Kao deems that it as an indispensable business skill. There are several reasons that comes to mind why this is so. To illustrate, the fast-pace, high-velocity economic requirements of today’s business environment requires the entrepreneur to constantly create. For this same reason, the human element of the operations of the organisations requires highly trained, skilled and technical workers as the infusion of knowledge and organisational processes has become commonplace among modern companies. This means that companies nowadays have to establish a creative culture to attract and even retain these valuable personnel in the company’s pool of assets. Lastly, the modern company have to seek a creative culture to boost the possibility of innovation in the organisation. Basically, this shows that the business environment has significantly changed. Before, there was a clear and unequivocal path on which businesses can follow. Nowadays, with the constant shifts in the environment, the path has become unclear and indistinguishable. Hence, businesses of today have to contend with creating their own.
B. Implementation in the Paper
For this paper, a series of questions based on the book of Kao will be used. However, the questions will not be directly asked, only an adaptation of the principles within the series of queries suggested by Kao. These include:
· How does the company define creativity?
· What can you contribute to make yourself and the company creative?
· How do you value creativity?
· How supportive is the organisational environment to the creative initiatives of the company?
IV. Interviews with the Respondents A. Analysis of the InterviewsThe responses of the chosen workgroup reflect the overall environment of Horizon Limited. Though there seem to be various responses to these set of questions, there is a unifying element that sets the level of stability of the company. For instance, when asked about the company’s definition of creativity, the respondents tend to give their own individual definitions. On the part of Employee A, he defines creativity as a method of allowing the individual members of the organisation to be the best that they can be professionally by unrestricting their potentials. This means that, for Employee A at least, the company encourages the creative instincts of its personnel by giving them the freedom to choose how to get things done. On the other hand, Employee B looks at creativity as the individual liberty of the personnel to find the best possible way of accomplishing their respective tasks. This idea is shared by Employee C who added that with the level of liberty provided by the company, creativity and ergo innovation will ensue shortly. In the case of Employee D, he sees creativity as the ability of the person to make the most of the resources available at his disposal.
When asked what they can contribute to themselves and the company to make it creative, Employee A, B, and C claimed that working hard and working smart would allow the creativeness to be instilled both in their personal careers and within the company. Employee D, on the other hand, pointed out the concept of collaboration and teamwork as indispensable elements in establishing a creative environment in Horizon.
Moreover, the respondents also indicated that Horizon values creativity by performing certain activities to improve the individuals that work for them. The implementation of training activities tends to be the common response from the employees. However, they (Employees B, C, and D) pointed out that when managers or their superiors conduct these training activities, they tend to be rather impersonal and treat it in a strict non-casual instruction.
Ultimately, the respondents unanimously claimed that majority of the employees in Horizon Limited are enthusiastic and supportive of the creative initiatives of the management. However, they pointed out that this level of enthusiasm is only limited to the personnel who are either new to the company or those less seasoned in terms of years. They claimed that the older employees exude a feeling of apprehension when it comes to these initiatives.
B. Themes and Sub-themesLooking at the responses of the employees certain attributes of the organisational environment emerge. It manifests the culture of the company, specifically how they deal with the introduction of creative initiatives. It also shows how the management deal with its subordinates with its leadership styles and regard to the element of motivation. It also establishes that the best way that the company could impart a creative culture is by allowing them some liberty and constantly trains them for good measure. Lastly, the management realises the importance of creativity in the workplace as it translates to the higher likelihood of innovation in the organisation.
V. Analysis of the OrganisationThe discussions above have established that creativity in Horizon Limited is one of the priorities of the management. However, there are certain circumstances where the company falls short on its pursuit of innovation as they tend to encounter traditional and recent barriers that affect the facilitation of organisational development. In the same manner, these barriers tend to hamper the company’s capability to maximise the results of the creativity of its persons and processes. The following discussions will pinpoint these barriers and discuss the manner on which Horizon deals with the situation.
A. The Socio-Environmental InfluencesIn addressing the socio-environmental elements that influence the company, the prevailing factor as mentioned in numerous organisational studies is organisational culture. It constitutes both the intangible and concrete standards held within an organisation. To this end, one must recognise that in order to establish the overall culture of the organisation, the social dynamics and inherent behaviours of the workforce as a whole should be determined. Seen as a very decisive element of organisational studies, organisational culture has become the foundation in which models of human resource management. Using these set of standards in the organisation, a company is able to facilitate its functions by infusing it with a systematic means of finding fit strategies for the organisation.
In the work of Markoczy (1994, 5) he points to these interrelationships as the cultural web. It covers all the practical nuances and unwritten rules that inevitably affect the structure of the organisation, particularly on the manner in which the management control its personnel. For such reason, development will inevitably ensue. However, every reasonable and rational organisation should realise that in the pursuit of development, they will then have to deal with the consequences brought about by change. To minimise the adverse effects of change in the organisation, the socio-environmental implications of culture should be taken in hand. Ates (2004, 33) mentioned in his work that determining the minor gradations of culture, the company is able to determine where the development and change should take place, how these changes will be implemented, and how the company can deal with the spill offs of these changes.
B. Nature of the Groups or Teams in the OrganisationIt is expected in any incidence occasioned by change in the company, the primary resistance will be pinpointed from those who have seniority in the organisation. (Chapman, Merritt and Norris, 2000) On the whole, there are some major suggestions of resistance among the workers in the change initiatives of a company. Coping with resistance obligates the firm to perform verbal contacts with the workforce. Buchanan and Huczynski (2004) noted in their study that the organisation has to examine verbal interactions which take account of proposing, building, supporting, disagreeing, giving information, and seeking information. The processes provided by the said authors display nothing less than positive consequences. The problem lies on the fact that not all companies have the luxury or the time to disburse resources to handle resistance. (Bartol, Martin, Tein, and Matthews 2001) This suggests that, in general, companies have to address resistance on its early stages. The company have to deal with these changes the moment it manifests through the workforce. One way of dealing with this is by openly negotiating and talking with the employees. This means that the top management may have to open their communication lines with the workforce wider so as to encourage feedback. This way, a quicker way equalising the processes in the organisation is achieved.
Moreover, this resistance highlighted some advantages for the organisation. This show that the company’s readiness to take on development initiatives is still lacking. (Desplace 2005) This shows the certain amount of change initiative should be induced and how it should be managed. Along these lines, communication between the top management and rank and file has opened up. (Smith 2005) This also emphasises the actual existence of resistance, hence permits the company to ascertain the perceived problems of the employees and find ways to deal with it in an opportune and timely manner. Del Val and Martinez-Fuentez (2003) indicated in their work that mentioned that this interaction coming from the employees’ resistance to change similarly generates the chance for the company to restore the level of motivation of the workforce through employee participation.
C. Processes of Innovation PresentBased on the discussions above, creativity is maximised with the present of a couple of elements: innovation and constant training. The following discussions will examine the relationship of these elements with the circumstances surrounding Horizon Limited.
1. Innovation and the human elementIn dealing with the creativity of the organisation, one must understand that the human element of the company is inescapably omnipresent. Therefore, discussing innovation initiatives will persistently have the matter of the human element attached on it. Studies employed during this research evidently claims that the organisational culture has to bend to the innovation strategies of the company in an attempt to make human resource functions to being more of a strategic tool than an administrative function. (Chow and Liu 2007, 47) Moreover, for the function of innovation and other management plans, an organisation needs to possess a culture that encourages involvement, probing credulous wisdom, innovation, and taking more risks. (p53) Likewise, a culture of familiarity, luxury of communication, and openness to convey of learning and knowledge assimilation should be present to safeguard a knowledge-exhaustive organisation. (p53)
In the work of Foss and Pedersen (2004, 340), they claimed that the knowledge and creativity inflows into a subsidiary of a multinational corporation are directly linked with the richness of transmission outlets, enthusiasm to obtain knowledge, and ability to take in incoming knowledge. This ascertains that the significance of transferring knowledge is affixed with the infrastructure capacity of the company, capacity of the organisation to understand these stated knowledge, and the wits to study these types of transferred information. Foss and Pederson (2004, 343) further talked about that in order to determine positive repercussions on the transfer of knowledge, the organisation has to establish able HR schemes like training, performance evaluation, promotion, compensation and communication. Culture is believed to be a benefit for any organisation, more than ever if it is considered as an established one. However, Cabrera and Bonache (1999, 51) pointed out that a culture could barely be considered an advantage if it is unified with the strategies and overall aims of the organisation. Consequently, an appropriate association involving the organisational culture, mission and vision, and the overall strategies of the organisation should be protected to assure organisational success.
2. Training and DevelopmentThe discussions above show that Horizon employs training and development initiatives to cultivate its stock creativity, both in terms of persons and the processes in the organisation. Organisational development has become an integral initiative for any company if they intent to keep afloat in this immensely cutthroat world of business. (Bailey and Palmer 2005, 11) As a component of organisational development, training consents to the development of the creative side of the people employed in the company. Carrier (1999, 30) mentioned in his article that training was perceived as a human resource application that is not limited to the members of the rank and file of the organisation. They claim that managers, normally among of small and medium sized organisations, responds to the demands of internationalisation and globalisation by engaging in training programmes looking to perk up their managerial proficiencies and be acquainted with the ins and outs of international operations. (p30)
Nevertheless, demands for development tend to commence in a vicious pace. Organisational studies have pointed out training does not necessarily point to the intention of improving the skills of the workforce. (Brown, Durham, Kristoff, Kunder, Olian, and Pierce 1998, 20) The overall expertise of the company’s workforce is actually the ends of training. This means that the development of skills is merely a part of this overall programme of expertise. Hence, there is a higher chance that the organisation will increase not only the skill level and expertise of the workforce, but also the overall competitive advantage of the firm. (Jinabhai 2005, 85) Specifically, to achieve this sought after competitive advantage specific outcomes like “increased productivity, profit, or safety, reduced error, enhanced market share” are expected. (Canon-Bowers and Salas 2001, 471)
D. Management Approaches within the OrganisationSeen in the management of creativity in Horizon Limited is the use of several management approaches. These approaches includes knowledge management and change management. In the dealing with the creativity of the organisation, the management of knowledge has been one of the more debated areas. One must realise that in dealing with the conditions surrounding creativity, the flow of information as well as the manner on how they utilise it will identify the level of effectiveness of its outcomes. Scholarly articles have given various understandings and applications on the theories following the management approach. At first, it is a model that discusses the fundamental hypotheses of information, specifically concerning the flow of data and data sharing. It then developed into a management approach that infuses Information Technology with the basic developments of human resource management together with other purposes of the organisation. The change in the fundamental arrangement and mixture of technology in organisational procedures is anchored on the notion that such a scheme will increase the company’s innate core competencies which in effect amount to the general competence of the organisation.
Seen in the applications made in Horizon Limited, factors like innovation and knowledge work hand in hand to provide for the effective outcomes of knowledge management in the organisation. The article of Hyde and Mitchell (2000, 57) backs this supposition up as they claim that these two elements are actually inseparable when it comes to managing knowledge and creativity in the organisation. The achieving the organisational goal would not be possible with the non-existence of any of these elements. In the theory provided for by knowledge management, the ability of the workforce to access certain data is the primary priority. (Steyn, 2004, 615) For the organisation, the means of the employees to get to this data points to the possibility of development and maximising the level of creativity of persons and processes. Similarly it also leads to the succeeding completion of organisational goals. Traditional knowledge management principles points to these data as tacit and explicit knowledge. (Hyde and Mitchell, 2000, 57)
Tacit knowledge is categorised under conventions based on the standards and mores in the company which basically include the broad culture in the organisation. Explicit knowledge is those written in manuals as codes of conduct that generate the procedures essential to realise the goals and objectives of the company. To a degree, these studies have claimed that the unrepressed communication among these forms of knowledge is an indispensable element in satisfying the operational needs of the company. Ultimately, the organisational have started to associate to organisational development and the transfer of knowledge which knowledge management closely holds as well. Hence, elements like knowledge, organisational learning, and information technology have been deemed as among the key essentials in the knowledge management model.
As an element of the developmental attempts in dealing with creativity and development-triggered change, change management will have to be incorporated to locate the specific fields that need changing and give a set of information that would let the company to administer the effects of change, regardless on whether it is positive or negative. Moreover, it has to be emphasised that change management is wholly founded in the cultural component of the organisation. As Brewer, Juras, and Brownlee (2003, 49) indicates, the presumptions of managing change depend mainly on the stage on which the workers will be disobeying these change plans. For this reason, in order to give confidence to initiatives of change and productively please the needs of the company, attempts to lessen this level of resistance are the most important element. For example, Carroll and Arneson (2003, 35) noted in their study that allowing the workers to participate in the decision making process will empower them in the change process and will considerably lessen the resistance level in the organisation. Furthermore, knowing the apposite method of managing the labour force through management approaches will also add to the success of the change management plans of the company. (Huy 2002) In addition, informing of the actual intention for change in the company processes is similarly imperative. (Lerro and Schiuma 2005, 585) The labour force has to be aware of the courses of action carried out to realise it while the management have to implement transparency.
E. Analysis of the Managers: What are they doing Right/Wrong?Looking at the discussions above, it appears that the managers’ leadership approach is one of the prevailing elements that make the system in Horizon work. Scholarly articles have sustained that the most strategic post in the company is assumed by the management-level employees. This is supported by the claims of Huy (2002) stating that they act as the conduit between the top management and the rank-and-file. Moreover, they are the ones who could assist the company to resolve the precise type culture in attendance in the company. In addition, they are the people obligated to find out which type of leadership style would satisfy the strict requirements of the company and at the same time balance off the existing culture in the organisation. (Laclair and Rao 2002, 17)
On the other hand, it appears that the managers of Horizon Limited consistently take the motivation of the employees for granted. A lot of motivational models are used in the structure of the organisational environment. In addition, most if not all, of these theories have a basic assumption indicating that increase in the motivation level of the workforce will successfully stimulate positive outcomes for the company. (Neff 2002, 385) Elements that lead to motivation of the workforce are seen in the appropriate use of communication systems in the company. (Gueldenzoph and May, 2006, 4) This assertion hence indicates that the presence of such effective systems of communications provide organisations the opportunity to be a step nearer to their organisational objectives.
VI. Analysis of the FindingsIn looking at the discussions above, it appears that the respondents relate creativity to the idea of liberty and leeway in doing their work. This shows that Horizon has established a foundation well enough for the employees to realise that creativity is not merely doing something original, but by using what is already known and make the most out of it allowing the company, and themselves, reap all the rewards. It made them recognise that being creative is merely being open-minded and ready to take on the world head on.
In the same manner, the responses of the employees also shows that they recognise that having a creative organisation does not require a lot or demand a lot from them. Basically, what the employees realise is that all they have to do is to do a good job in finishing their tasks and seek the help of other if they encounter any roadblock. The respondents realise that in order to achieve a creative environment, they need not do special things or be in an extraordinary state of mind. Every waking day is a chance for the common employee to be creative.
Moreover, this study also established that in creating value for creativity, the management has to carry out specific tasks to achieve maximum results. These tasks do not amount to any technical or odd approach of management. The management have to simply communicate to the employees that the organisation value creativity. In the case of Horizon, the imposition of training and development as well as the encouragement of innovative thinking is an implied communication of the value of creativity.
Lastly, having a supportive environment in Horizon is basically an offshoot of the communication of value of creativity towards the employees. This study established that when the employees understood and realise the value of creativity, it is more likely that majority will be supportive as it translates essentially to endeavours of growth and development. However, one must realise that the presence of certain sanctions may also go against the principles of creativity. The moment that the management demands a creative environment and creativity from its employees, they are asking its personnel to deal with unfamiliar elements. Risks are taken and new methods are applied. When sanctions are in effect, these serve as a disincentive for the employees to carry these risk taking attitudes out.
VII. ConclusionThe trend towards creativity merely suggests that the traditional paths on which organisations of the past undertook may not be that effective when taken anew. This is attributable to the fast paced economy and the increased possibility of income provided by technology. In this study, the potential of having a creative culture in an organisation is seen as the key in dealing with this dynamic nature of the market.
As we look in the discussions above, it appears that the same processes are in play when it comes to dealing with the organisation. Motivation should be kept at its height; leadership styles should be fit the needs of the organisation; organisational culture should be taken into consideration; and the relationship between the management and the rank-and-file should be in sync. These elements are discussed in previous studies and scholarly articles on the organisation. However, it must be emphasised that the infusion of a new factor of creativity only encourages today’s organisation to take risks and be comfortable in risk taking initiatives. It is in this context that companies will be able to find innovation a lot quicker and development in a much faster pace.
VIII. RecommendationsThis part of the study shall provide the recommendations. The following recommendations are based on the conclusions and discussions provided above:
- Adopting a playful approach
Basically, having to deal with unfamiliar things and the constant possibility of failure makes the common employee in a creative environment tense up. The best way to deal with this is by loosening up. Basically, this entails having to instil a good-humoured and casual culture within the organisation to lessen the pressure and make the tasks at hand less daunting. In doing so, there is a huge possibility that the employees will respond positively and allow them to deal with unforeseen events in their work more effectively and timely. This way, the losses of the company is, at the very least, minimised.
- Consider the human side of the equation
The only thing lacking in Horizon is its regard to the motivational levels of the employees. There is no easy way of resolving this shortcoming. The company have to review where they need to change in terms of their human resource management, and address it using the time and tested models of motivation and management. They will then have to realise that if they intend to build an organisation that possess a creative culture, then the human element should not be taken lightly as they form a great part of the equation. In doing so, the company is ensured a vibrant future.
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