UNIVERSITY OF BEDFORDSHIRE
CORPORATE INNOVATION & ENTREPRENEURSHIP BSS057-6
Assessment 2
Assignment Tittle: Consultancy Report on Organisational Strategy
Assignment Format: Report
Unit Co-ordinator: Dr Selwyn Seymour
Student Name: Anthony Blake
Student ID: 1943950
Word Count: 3600
Due Date: September 18th 10:00 am UK
Executive Summary
Creativity and innovation are two essential ingredients for the maintenance and sustainment of
an organizations competitive advantage. However, blocks to organizational creativity are
common and several theories exist as to the causes of these blocks as well as the strategies to
remove them.
This report will provide a review of existing literature with respect to creativity and innovation.
This review of existing literature provides context for the identification of organizational
blocks to creative thinking at Asia Pacific International Limited. The Situational Outlook
Questionnaire was used to evaluate the organization along nine dimensions.
A summary of the findings reveals that the APIL has a strong organization culture that supports
creativity and innovation despite the existence of blocks within a few dimensions. To enhance
creativity and innovation within the organization APIL should reorganize its line and staff
functions within the organizational structure, redesign its reward and recognition system,
diversify its training options, be more efficient a succession planning and provide staff training
to assist in removal of existing blocks to creative thinking.
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Table of Figures
Figure 1: A diagrammatic definition of innovation by Baregheh et al., 2009 ........................... 5
Figure 2: Organizational Climate and Culture (Smith, 2015).................................................... 6
Figure 3:Creative Organizational Climate Categories (Axelsson and Sardari, 2011) ............... 7
Figure 4:Three-dimensional matrix organizational structure of APIL .................................... 20
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Contents
1
Introduction ........................................................................................................................ 4
1.1
Aim and Objectives ..................................................................................................... 4
1.2
Background of APIL ................................................................................................... 4
2
Analysis.............................................................................................................................. 5
2.1
Innovation.................................................................................................................... 5
2.2
Creativity ..................................................................................................................... 5
2.3
Creative Organizational Climate ................................................................................. 6
2.3.1
Challenge and Involvement ................................................................................. 8
2.3.2
Freedom ............................................................................................................... 8
2.3.3
Trust/Openness .................................................................................................... 9
2.3.4
Idea Time ........................................................................................................... 10
2.3.5
Playfulness and Humor ...................................................................................... 10
2.3.6
Conflict .............................................................................................................. 10
2.3.7
Idea Support ....................................................................................................... 10
2.3.8
Debate ................................................................................................................ 11
2.3.9
Risk Taking ........................................................................................................ 11
2.3.10 Summary of Findings ......................................................................................... 11
3
Conclusion ....................................................................................................................... 13
4
Recommendations ............................................................................................................ 14
5
References ........................................................................................................................ 15
6
Bibliography .................................................................................................................... 17
7
Appendix .......................................................................................................................... 20
A.
Three-dimensional matrix organizational structure of APIL .................................... 20
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1 Introduction
Creativity and innovation are two essential ingredients for the maintenance and sustainment of
an organizations competitive advantage (Politis, 2005). Creativity involves the generation of
original ideas using imagination and is an essential step for innovation (Amabile et al.,1996).
1.1 Aim and Objectives
This research paper aims to assess the organizational blocks/support to creativity and
innovation while focusing on the current environment within the Asia Pacific International
Company Limited (APIL). In so doing, the research will lead to the development of
recommendations to enhance corporate innovation and entrepreneurship within the company
leading to a sustained competitive advantage for APIL.
1.2 Background of APIL
Asia Pacific International Limited is an internationally known supply chain management
company that specialises in agricultural products and food ingredients. APIL has a direct
presence in 58 countries and operates an integrated supply chain (Appasaheb Naikal and
Shalini Chandra, 2013). APIL is structured to be a transitional organization with a 3dimensional matrix structure through which their strategy is executed.
APIL has a strong organisational culture and prides itself in creating a work environment that
fosters teamwork and collaboration. APIL also rewards teamwork with a structured
compensation plan that rewards employees based on profits earned from specific products or
countries (Appasaheb et al, 2013).
Appasaheb et al (2013) conducted a critical analysis of APIL’s organizational culture and
identified several weaknesses which included:
▪
The three-dimensional matrix organizational structure resulting in one person reporting
to three people;
▪
The company reward system which focused on short term profit rather than long term
sustainability;
▪
An extremely informal culture which is often abused by employees;
▪
The overemphasis on internal training as opposed to external training;
▪
A lack of succession planning (Appasaheb et al, 2013).
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These weaknesses will be further examined in the analysis section to identify their contribution
to retarding organizational creativity and innovation.
2 Analysis
This section reviews extant literature with respect to organizational barriers for creativity and
innovation and corporate entrepreneurship in addition to providing a contextual link for the
case study.
2.1 Innovation
Descriptions of innovation have been advanced by several contributing researchers. Baregheh,
Rowley, and Sambrook (2009) provides one of the best definitions of innovation and has
highlighted six key areas that make up the innovation process. These areas include stages,
social, means, nature, type, and aim (Baregheh et al., 2009). Figure 1 illustrates the stages and
sub-areas. KB (2012) defined innovation as “A new idea, method, or device. The act of creating
a new product or process, which includes invention and the work required to bring an idea or
concept to final form.” Similarly, other researchers have included new product creation,
stakeholder benefit, and process improvement in their definitions (West and Anderson, 1996;
Trott, 2017; Skillicorn, 2016). Therefore, Baregheh et al.’s processes definition provides an
appropriate framework within which all areas of creativity can be defined.
Figure 1: A diagrammatic definition of innovation by Baregheh et al., 2009
2.2 Creativity
A deeper understanding of innovation is gained by situating creativity as a predecessor to
innovation (Glassman and Opengart, 2016). Several authors have contributed to modern
definitions of creativity. Amabile (1996) defined it as the production of a new and fitting
response, product, or solution to an open-ended task. Likewise, Woodman, Sawyer, and
Griffin, (1993) and Shalley and Gilson (2004) define organizational creativity as individuals
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working together to create a new, valuable product, service, idea, procedure, or process which
can benefit and organization. Many researchers have built and refined on earlier definitions
(Glassman and Opengart, 2016). For example, Anderson, Potocnik, & Zhou (2014) suggested
an integrated definition that perceives creativity and innovation as two stages of the product or
process improvement with creativity occurring at the individual, work team or organizational
level. Thus, creativity is most frequently described as the production of new and useful ideas
(Amabile, 1988).
2.3 Creative Organizational Climate
According to Isaksen et al. (2001) life in an organization can be understood as repeated patterns
of behaviour and attitudes which when aggregated are called the organizational climate.
Similarly, Watkin and Hubbard (2003) proposed a definition of climate as the employee
perception of the environment in respect of work execution. These definitions are further
supported by Schneider (1987) who also presented climate as the mechanism used by members
of an organization to understand what is key for organizational effectiveness.
Figure 2: Organizational Climate and Culture (Smith, 2015)
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Organizational culture and climate are often confused (Smith, 2015). Beliefs, values, traditions,
customs, and history are all components of organizational culture that reflect the deep-rooted
foundations of the organization, as depicted in figure 2. Culture is akin to organizational values,
while climate is an indicator of actual employee experience (Smith, 2015).
Work
Characterstics
Systems and
Processes
Management
Support
Creative
Diversity
Organizationa
l Climate
Dynamism/
Risk Taking
Co-worker
Support
Safety
Resources
Figure 3:Creative Organizational Climate Categories (Axelsson and Sardari, 2011)
Several authors including Gray (2005) Roffe (1999) and Cummings (1965) have sought to
categorise the dimensions of a creative organizational climate. Axelsson and Sardari (2011)
proposed an eight-category model for assessing organizational climate, that is primarily an
amalgamation of Ekvall’s (1996) and Amabile et al.’s (1996) creative climate dimensions.
Figure 3 illustrates the eight organizational creative climate categories. Axelsson and Sardari’s
(2011) found that Ekvall’s (1996) and Amabile et al.’s (1996) frameworks were too broad and
that by amalgamation of the frameworks many of their individual shortcomings could be
overcome.
Another widely accepted method of accessing organizations is the Situational Outlook
Questionnaire (SOQ) (Isaksen et al., 2001). The SOQ evolved from the Creative Climate
Questionnaire (CCQ) originally developed by Göran Ekvall and today consist of nine
dimensions which are listed below:
▪
Challenge and Involvement
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▪
Freedom
▪
Trust/Openness
▪
Idea Time
▪
Playfulness and Humour
▪
Conflict
▪
Idea Support
▪
Debate
▪
Risk Taking
These dimensions will be elaborated on below and used to evaluate the organizational climate
with respect to creativity and innovation at APIL.
2.3.1
Challenge and Involvement
Challenge and Involvement capture the extent to which employees are involved in company
operations, goal setting and vision (Isaksen, 2013). High levels of challenge and involvement
lead to highly motivated and committed staff as well as high levels of participation and joy
(Isaksen et al., 2001). Conversely, low levels of challenge and involvement lead to staff
disengagement, alienation and apathy (Isaksen et al., 2001).
Appasaheb et al, (2013), in their evaluation of APIL found that organizational values were well
promulgated throughout the company. Additionally, the management strived to create a strong
sprit of on inclusiveness by maintaining a small company feel. The CEO emphasise the
company’s core values especially with new employees in order to adapt them to the existing
organizational culture (Appasaheb et al, 2013). APIL however needs to be careful not to cause
a disconnect between employee’s personal goals and objectives and those articulated by the
company (Isaken, 2007). The company has failed to implement succession planning among the
management team (Appasaheb et al, 2013) and as such persons may not be confident of
opportunities for advancement within the organization.
2.3.2
Freedom
Isaksen et al. (2001) defined Freedom as independent behavior employed by persons within
an organization is characterized as freedom. Organizations with a high degree of freedom give
persons autonomy and tool them with the resources to execute their work while providing
opportunities for individuals to take the initiative to obtain and share information about their
work (Isaksen et al., 2001). Alternatively, Isaksen et al. also note that in organizations without
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high degrees of freedom there is little room for redefining of task as persons work within strict
guidelines.
The evaluation of APIL examined ownership and commitment and found that the company
allows for a high degree of accountability and initiative among employees. Continuous updates
are given to employees about the company’s performance and employees are encourages to
take a measure of control. This leads to a feeling of empowerment and develops an ownership
culture where employees share in the failures and successes of the organization. Employees are
motivated, and there is a high degree of job involvement and commitment (Appasaheb et al,
2013).
APIL has a very informal organizational culture that aids freedom. However, this informal
culture is often abused as persons take advantage of the relaxed atmosphere and operate outside
their remit (Appasaheb et al, 2013).
2.3.3
Trust/Openness
Relationships with emotional safety exist where there is a high degree of trust resulting in open
and frankness among individuals. Mutual respect among individuals at all levels allows for
credit to be given where it is due and further fosters an environment where persons depend on
each other for personal and professional support. The absence of trust leads to persons being
suspicious of each other, and thus communication is reduced as persons guard their ideas and
plans (Isaksen et al., 2001).
Appasaheb et al. (2013) in examining APIL’s infrastructure, found that a robust information
and communication system exists. Information hoarding is prevented by providing a gateway
for accessing the organizational knowledge base. Organizational culture is thus enhanced by
changing employee habits in terms of communication and collaboration.
APIL has also identified five key objectives to aid in the creation of long-term stakeholder
value. Knowledge sharing is nurtured through the rewards system and incentive scheme which
aim to:
• maximize resource productivity
• encourage strategic initiatives
• foster team play
• reward exceptional performances
• attract and retaining talent (Appasaheb et al, 2013).
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While the reward scheme seeks to advance organizational culture, the study found that these
measures were not tied to any of the company’s long-term strategic objectives and as such
could negatively affect organizational strategy.
2.3.4
Idea Time
Idea Time has been defined as the time persons can and will use for particularizing new ideas.
Opportunities exist within the organization to utilize time for the development of new ideas
and flexi time allows for the utilization and exploration of new ideas. The reverse exists where
every minute is accounted for and there is little time for development of new ideas (Isaksen et
al., 2001).
2.3.5
Playfulness and Humor
This dimension is characterized by a relaxed but professional atmosphere. Work can be fun
with a lighthearted atmosphere. Conversely, an atmosphere in which joking and laughter are
perceived to be intolerable retards organizational climate (Isaksen et al., 2001). As discusses
in the Freedom dimension, APIL has a highly informal culture. This culture facilitates a relaxed
environment where playfulness and humor are encouraged.
2.3.6
Conflict
Conflict is reflected by the existence of emotional pressures within the organization. High
levels of conflict can lead to interpersonal warfare, power, and territory struggles. On the
contrary, when people behave in a more mature manner, people accept and deal with diversity
(Isaksen et al., 2001).
APIL is a transnational organization that has operations in several countries. It utilizes a threedimensional matrix organizational structure (illustrated in Appendix A) to execute its strategy.
The three-dimensional structure often results in one person reporting to the three people. This
results in a diffusion of accountability and is a recipe for conflict (Appasaheb et al, 2013).
Additionally, based on the transnational nature of the company, many employees come from
different cultural backgrounds. If this is not managed, it can lead to conflict.
2.3.7
Idea Support
Idea Support is defined as the way new ideas are treated by management, peers, and
subordinates. In a supportive climate, initiatives are encouraged, and there is a positive
atmosphere when considering new ideas (Isaksen et al., 2001).
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APIL has identified teamwork as one of its core values. They have strived to create a culture
where employees work collaboratively and understand that actions are completed better when
done supportively (Appasaheb et al, 2013).
2.3.8
Debate
In organizations where debating is encouraged, many voices can be heard, and persons are keen
to put forward their point of view. The wisdom of different experiences and knowledge add
value. When debate does not exist in an organization, creative culture is inhibited (Isaksen et
al., 2001).
While no direct evidence is available from the Appasaheb et al (2013). We can make the
assumption that based on the informal culture within the organization, debate is encouraged.
Similar to the categories above that are supported by the informal culture APIL must be careful
that it is not taken advantage of.
2.3.9
Risk-Taking
Risk-taking involves open-mindedness towards uncertainty and ambiguity in the organization.
Where risk-taking is encouraged, new initiatives can be taken without the outcome being
known. Employees are encouraged to take a chance on their ideas. Risk avoidance within
organizations encourages employees to play safe and resist the propensity to generate new ideas
for fear of failure (Isaksen et al., 2001).
APIL’s core values include Entrepreneurial, which is synonymous with risk-taking. Risktaking is encouraged as the APIL has defined an entrepreneur as a person who has “possession
over a company, enterprise, or venture, and assumes significant accountability for the inherent
risks and the outcome” (Appasaheb et al, 2013). Appasaheb further stated that taking this level
of ownership will lead to improved business performance.
2.3.10 Summary of Findings
The SOQ dimensional analysis of APIL has been summarised and ranked in table 1 below.
Each dimension was given a score of which is weighted high, medium, or low. Two of the
dimensions rated as low based on the evidence presented above and the likelihood that barriers
to organizational creativity are more likely to occur in these areas than others. The areas rated
as low are idea time and conflict.
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Seven areas rated as either medium (4) or high (3). This indicates that the organization has a
strong organizational culture that supports creativity and innovation despite the existence of
blocks within a few dimensions. The recommendations section will expand on ways to reduce
or remove these blocks.
SOQ Dimensions
Low
Medium
§ Challenge and Involvement
1
§ Freedom
1
§ Trust/Openness
§ Idea Time
1
1
§ Playfulness and Humour
§ Conflict
1
1
§ Idea Support
1
§ Debate
1
§ Risk Taking
Total
High
1
2
4
3
Table 1: SOQ Dimension Summary
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3 Conclusion
Creativity and innovation are two essential ingredients for the maintenance and sustainment of
an organization's competitive advantage. However, blocks to organizational creativity are
common, and several theories exist as to the causes of these blocks as well as the strategies to
remove them.
The report provides a review of existing literature with respect to creativity and innovation.
This review of existing literature provides context for the identification of organizational
blocks to creative thinking at Asia Pacific International Limited. The Situational Outlook
Questionnaire was used to evaluate the organization along the recommended dimensions of
challenge and involvement, freedom, trust/openness, idea time, playfulness and humor,
conflict, idea support, debate, and risk-taking.
A summary of the findings reveals that the APIL has a strong organizational culture that
supports creativity and innovation despite the existence of blocks within a few dimensions.
Conflict and Idea Time are the areas of greatest concern and must receive specific attention by
implementing mitigation strategies. To enhance creativity and innovation within the
organization, a list of recommendations has been provided in the next section.
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4 Recommendations
▪
APIL must reorganize its line and staff functions within the Organizational Structure.
The current structure causes ambiguity. Employees must report to one line manager but
can be assigned to other units when forming a project team to execute specific business
projects. This aids in reducing conflict.
▪
APIL must redesign its reward and recognition system. Bonuses must be better aligned
to strategic company deliverables and objectives. This will give the employees a better
understanding of the company’s strategic intent.
▪
APIL must diversify its training options. Its internal training program is commendable;
however, staff must be exposed to industry best practice and given certification that
will not be available within the organization. This is mutually beneficial to both
company and employee.
▪
Succession planning allows the company to identify and prepare its future leaders. The
company must implement programs to identify talent and experience within the
company in order to build resilience within the organization.
▪
A training plan to identify and remove blocks to creativity within the organization is
needed. An environment that is receptive to increased creativity will ultimately redound
to the benefit of the organization and employees.
▪
Given the current global nature of APIL’s business, respect for diversity is key at
avoiding conflict. APIL needs to develop specific strategies to encourage resect for
diversity. One suggestion may be exchange programs where management and staff
from one country of operation are rotated to other international locations for short
periods.
`
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5 References
Amabile, T.M. (1996) 'Creativity and innovation in organizations'.
Amabile, T.M. (1988) 'A model of creativity and innovation in organizations', Research in
organizational behavior, 10(1), pp. 123-167.
Amabile, T.M., Conti, R., Coon, H., Lazenby, J. and Herron, M. (1996) 'Assessing the work
environment for creativity', Academy of management journal, 39(5), pp. 1154-1184.
Anderson, N., Potočnik, K. and Zhou, J. (2014) 'Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework', Journal of
management, 40(5), pp. 1297-1333.
Appasaheb Naikal and Shalini Chandra (2013) 'Organisational Culture: A Case
Study', International Journal of Knowledge Management and Practices, 1(2), pp. 17.
Baregheh, A., Rowley, J. and Sambrook, S. (2009) 'Towards a multidisciplinary definition of
innovation', Management decision.
Cummings, L. (1965) 'Organizational climates for creativity', Academy of Management
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Ekvall, G. (1996) 'Organizational climate for creativity and innovation', European journal of
work and organizational psychology, 5(1), pp. 105-123.
Gilson, L.L. and Shalley, C.E. (2004) 'A little creativity goes a long way: An examination of
teams’ engagement in creative processes', Journal of management, 30(4), pp. 453-470.
Glassman, A.M. and Opengart, R. (2016) 'Teaching innovation and creativity: Turning theory
into practice', Journal of International Business Education, 11, pp. 113.
Gray, R. (2007) A climate of success. Routledge.
Isaksen, S.G., Lauer, K.J., Ekvall, G. and Britz, A. (2001) 'Perceptions of the best and worst
climates for creativity: Preliminary validation evidence for the situational outlook
questionnaire', Creativity research journal, 13(2), pp. 171-184.
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Isaksen, S.G., Lauer, K.J., Ekvall, G. and Britz, A. (2001) 'Perceptions of the best and worst
climates for creativity: Preliminary validation evidence for the situational outlook
questionnaire', Creativity research journal, 13(2), pp. 171-184.
KB, K. (2012) 'The PDMA handbook of new product development. Hoboken'.
Politis, J.D. (2005) 'Dispersed leadership predictor of the work environment for creativity and
productivity', European Journal of Innovation Management.
Roffe, I. (1999) 'Innovation and creativity in organisations: a review of the implications for
training and development', Journal of European industrial training.
Schneider, B. (1987) 'The people make the place', Personnel Psychology, 40(3), pp. 437-453.
Skillicorn, N. (2016) 'What is innovation? 15 experts share their innovation definition', Idea to
value, 18.
Smith, A. (2015) Sample SOQ Org Report.
Trott, P. (2017) 'Innovation Management and New Product Development 6th ed'.
Watkin, C. and Hubbard, B. (2003) 'Leadership motivation and the drivers of share price: The
business case for measuring organisational climate', Leadership & Organization Development
Journal.
West, M.A. and Anderson, N.R. (1996) 'Innovation in top management teams.', Journal of
Applied psychology, 81(6), pp. 680.
Woodman, R.W., Sawyer, J.E. and Griffin, R.W. (1993) 'Toward a theory of organizational
creativity', Academy of management review, 18(2), pp. 293-321
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6 Bibliography
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Woodman, R.W., Sawyer, J.E. and Griffin, R.W. (1993) 'Toward a theory of organizational
creativity', Academy of management review, 18(2), pp. 293-321.
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7 Appendix
A. Three-dimensional matrix organizational structure of APIL
Figure 4:Three-dimensional matrix organizational structure of APIL
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