2. Issues in Organizational Design
• Organizational design responds to contrary pulls
like efficiency in competitive world and pushes
organizations into division of labor, specialization
and standardization.
• This in turn introduces coordination and control
mechanisms in an organization creating hierarchy
and providing decision making powers.
• This also creates motivational problems and to
solve them incentives, power sharing, participative
or collective decision making issues have to be
introduced .
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2
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3. Issues in Organizational Design
(Contd--------)
• Due to these issues organizations move between
flexibility and rigidity.
• Creative Organizations have to facilitate creative
ideas , screen and implement the right ones. These
are equivalent to an individuals Divergent and
Convergent thinking process.
• Due to competition, reduced PLC and
unpredictability creative organization design is a
complex exercise .
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3
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4. Approaches to
Design of Creative Organization
As per Gary Steiner
• a creative organization is headed by a creative,
entrepreneurial individual who commands or forces
the rest of the organization to comply with his visions
and ideas .
• Could be a decentralized organization in which
number of of people display creativity.
• As per Cameron Ford the critical elements of design of
the creative organization are its domains
(Markets, Government agencies, Industry associations,
etc ) , the system that interprets these domains, the
system that acquires the needed knowledge and
required skills for creative action.
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4
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5. Policy Frameworks
An organization life is fraught with unpredictable events
and complex issues.
Issues to sort out could be :
• Should the organization diversify , if so into related or
unrelated areas.
• Should the organization compete on the basis of
product quality, features ,price or brand loyalty.
• Should it have a simple or elaborate structure.
• What policies favor organization creativity-
experimental, risk taking, rapid growth or pioneering
that may encourage organization innovations and
creativity.
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5
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6. Organizational Design for Sustained
and Successful Creativity
There are sets of forces that can ready the organization
for launching continuous stream of innovations.
1. Selecting a particular domain.
2. Adopting certain kinds of goals of major
stakeholders (Owners, Vendors, Banks, Customers,
Unions etc)
3. Harboring certain kinds of management visions.
The Organization has to take up certain actions like
scanning environment,, undertaking SWOT
analysis, introducing controls and mechanisms and
motivating staff to spur innovations.
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6
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7. Choice of Sizzling
Operating Domains
Innovative Orientation
of the Organization
Management Grand
Vision for Organization
Use of Mechanism to
Spur Growth
Stakeholders
Demands
Scanning
Environments
Innovative Culture
Motivational System
to facilitate
Innovations
Conflict resolution to
facilitate Innovations
Innovations based
Competitive Strategy
Innovation based
Growth Strategy
Management
Control to facilitate
Innovations
Sustained and
Successful
Creativity
Organizational
Design for
Sustained and
Successful
Creativity
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7
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8. Mechanism for Stimulating
Organizational Creativity
• Organizations need to work on many fronts to
stimulate creativity.
• They need to develop creative and innovative
mindsets at all levels and in all functions.
• They have to push movers and shakers to lead
changes and innovations.
• Have to promote both incremental and
breakthrough innovations on continuous basis
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8
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9. Organizational Creativity -
Value Proposition and Mechanisms Delivering Them
S.No Value Proposition Delivering Mechanisms
1 Creativity movement in the Organization Creative thinking network and
Creative Training
2 Finding Movers and Shakers Multiplication of Change Agents
3 Vision that challenges the Organization to
Innovations
Creative scenario building and
Mind Mapping
4 Breakthrough Product/Process Innovations Intrapreneurship and Parallel
Groups
5 Breakthrough Operations related Innovations Creative Overlooking
6 Continuous small improvements and innovations Kaizen Systems
7 Information on strategic gaps that spurs
innovations
Creative experiments, Creative
Surveys, Creative Benchmarking,
Reverse Benchmarking .
8 High Potential Leads and connections Knowledge discovery.
Stakeholders Councils
9 Space for decision making and initiative taking Exnovation
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9
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10. Mechanisms for Stimulating
Organizational Creativity
1. Creative Overloading : When a system is
overloaded it looks a lot more for innovative ways for
measuring up. Similar to stretch targets.
2. Creative Benchmarking: It aims to look at various
external avenues for creative Bench Marking
3. Parallel Groups : Used to develop radically
alternate creative approaches. It strengthens winning
efforts with the strengths of the losing teams.
4. Knowledge Discovery :it is the process of
searching for links in data available with the
organization to locate previously unknown patterns.
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10
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11. Mechanisms for Stimulating
Organizational Creativity(Contd….)
5.Creative Thinking Network : OZ Creative Thinking
Network started in DuPont’s Industrial Fibers
Division was initiated by employees to expand the
company’s knowledge base of global concepts and
technologies related to creativity and innovations and
promote entrepreneurship, risk taking, quality
leadership that facilitated commercial success.
6.Mind Mapping :It is way of going from big picture to
concrete innovations. It is a display of concepts and
activities that clarifies the connections among them
related to complex issues.
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11
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12. Mechanisms for Stimulating
Organizational Creativity(Contd….)
7. Organizational Experiments: These are creative
efforts when undertaken in diverse areas so that
reliable information is generated for management
interventions in unknown areas.
8. Stakeholders Councils: Encourages voice of
stakeholders other than management to decide on
future directions based on the suggestions .
9. Creative Surveys : Professional organizations
frequently survey their employees to measure the
morale, job satisfaction and also to solicit
infrequently tapped information for innovative
purposes.
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12
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13. Mechanisms for Stimulating
Organizational Creativity(Contd…..)
10. Reverse Brainstorming : In this mechanism the
winning strategy is attacked from competitor’s point of
view. This will make the winning team to look at their
strategy from various angles to unearth deficiencies.
11. Intrapreneurship : It is an encouragement to an
employee by offering the proposed novel idea a nominal
budget and facilities to work on the idea. It tries to marry
the advantages of small dynamic charged up teams with
resources so as not to stifle creativity but increase the
probability of commercial success.
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13
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14. Mechanisms for Stimulating
Organizational Creativity(Contd….)
12. Kaizen : It is Japanese in origin and looks at
continuous improvement in operations- 5S , ‘Q’
circles , Scanlon Plan , TQM etc are some of the tools.
13.Multiplication of Change Agents : Change agents
bring in a culture of innovations in a company and is
a very successful strategy to increase their numbers.
14. Creative Scenario Building : Delphi technique is
used to build different scenarios by experts looking
into the future and the best are analyzed , modified
and finally accepted.
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14
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15. Mechanisms for Stimulating
Organizational Creativity(Contd….)
15. Creative Training : It works to enhance the
capacity for divergent or lateral thinking. Organization
wide results would improve by creative training . Ex:
Brainstorming , Attributes Changing etc.
16. Exnovation : Yesterday’s innovation may be
today’s Albatross . Review of policies, rules and
regulations are required to overhaul old innovations
and replace with new and efficient ones.
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15
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16. Creative Diagnosing
• Creative Diagnosing is essential to unfreeze the
Organization for transformation.
• Diagnosis is creative when it is credible to internal and
external stakeholders and also is done in an innovative
manner . The info thus obtained is innovatively utilized.
• It has following steps:
1. Creative mobilization of external and internal
stakeholders for transformation.
2. Creatively building an internal consensus for
transformation.
3. Creative Mindset Change.
4. Creative Implementation of transformational strategy.
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16
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17. Creative Societies
• To succeed and prosper in creative age the
nations have too make the transition from
industrial to creative societies by investing in
their people , building up their creative capital
and remaining open and tolerant societies.
• The society should harness the talents and
reward the energies of citizens to connect
economic and human development.
• Countries like US , Germany, France , Japan are
examples of creative societies where in
Governments encourage creative environment to
nurture and sustain creative societies.
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17
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18. The requirements / Characteristics of
Creative Society
1.Open Society
2.Achievement
Orientation
3.Autonomy
4.Resources availability
5.Collaboration
6.Self- identity
7.Diversity
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18
8. Recognition
9. Crisis
10.Government Support
11.Innovation oriented
Corporate Society
12. Encourage Knowledge
13. Industry – Institutes
Collaboration
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