Managing Creativity and Change - Coursework Example

? Managing Creativity and Change Introduction Under a hierarchical organization structure, employees’ ranking is in levels. A level is above another one. This means that, for every employee; there are other employees above him or her whom he or she answers directly to and other below him or her that reports directly to him or her. There are tall and flat hierarchical organizational structures and tall hierarchical structures. The flat ones have a few levels while, on the other hand, the tall ones have many levels. The chain of command within the hierarchical organizational structure looks like a pyramid shape. The pyramid scheme structure looks reflects the organization of authority. The hierarchical organization structure is common in both the public and private sectors. In a typical private organization or public institution, departmental heads, as well as, unit managers report directly the general managers or the vice presidents, who in turn report to the president (Marlow, 2011). In small businesses, the layers are lesser than the layers in the large organizations. Although hierarchical organizational structures may be effective as far as managing thousands of employees is concerned, they have numerous weaknesses, which will result in them being less evident in the future. In today’s business world, the level of competition in every industry is growing rapidly. One of the key factors behind the ever-increasing competition is the fact that globalization is ever increasing. In other words, the ever-increasing interconnectedness has substantially contributed to the rapidly increasing competition. Companies are spreading their operations outside the local borders to take advantage of new markets. Another key reason why countries are going global is to take advantage of the hap labor especially in the emerging markets including China, India, and Brazil among other emerging economies. Firms that are taking advantage of the cheap labor in today’s competitive world are enhancing their competitiveness. Production using cheap labor translates into competitive prices for the goods and services. Therefore, for all the global organizations that have shifted some of their operations to some of the cheap labor economies are becoming more competitive. This is because they are able to supply their goods and services at competitive prices in both the local and international markets (Dutz, 2011). The global economy has significantly changed in many ways. Countries are more dependent on each other than ever before. The world has become a global village and an external effect on a single major economy or region has direct, as well as, indirect effect on the global economy. For example, a major economic outcome in the U.S. could positively or, negatively affect the whole world. This is because of the increased interconnectedness and dependence amongst nations. If there were an economic boom within the U.S., other countries including the small ones would benefit from the high demand of goods and services in the world’s largest economy. On the other hand, a recession in the world’s largest economy could adversely affect the rest of the world. For example, following the 2007/2008 global financial crisis, the poor economic state in the U.S. affected the entire global economy (Ofd.ncsu.edu, 2013). The world’s economy is shifting from hierarchical organization structures to flat organization structures. The expectations amongst employees are different under the tall and the flat structures. For example, under the hierarchical structures, employees feel that they have a job security. This is because of the fact that this type of organizational structure is present in large organizations, which have attained a higher level of stability. In these organizations, the level of innovation is lower, compared to organizations that embrace flat structures. This is because of the fact that the senior high-level management keeps a close eye to the employees. In other words, there is more supervision and monitoring of employees by the senior management, which limits their innovativeness. Control and bureaucracy adversely affect innovation. On the other hand, there is minimum supervision under flat organization structures. Therefore, the level of innovation is high because there is an absence of constrained thinking amongst the employees. Employees as well expect a high upward mobility because of the fact that there are only a few managers above them. The level of satisfaction amongst the employees under the flat organization structure is high, compared to that under the hierarchical structures. Self-actualization amongst employees in flat structures is as well a reality (Shyni, 2006). Today’s Global Economy In today’s economy, businesses are investing in strategies that could boost innovation. Global organizations are shifting from complex bureaucratic structures to flexible flat structures. The modern organizations are replacing the traditional management styles i.e. the authoritarian styles with the modern management styles i.e. the democratic style of management. This is part of the organization's efforts to enhance innovation and creativity within the workplaces. The successful global companies as far as shifting from complex structures to flexible structures is concerned are benefiting substantially. Small organizations are proving to be more flexible than their large counterparts are. Therefore, innovation in these flexible organizations is more tangible than innovation in the organizations that are still using the bureaucratic structures (Lane, 2012). Bureaucratic organizational structures adversely affect innovation and, so do they affect organizations’ competitiveness. In today’s business world, organizations are embracing employee participation. This is important as far as promoting innovation is concerned. Employee participation involves the inclusion of employee in the organization’s decision-making process. This is whereby the managers or the employer listens to the voice of every employee. This gives the employees a sense of belonging and boosts their satisfaction. It does not only benefit the employees, but also benefit the employer. This is in the sense that the level of motivation amongst the employees goes up. When the level of motivation amongst the employees goes up, their performance in terms of productivity goes up. The organization benefits from increased productivity, which translate into increased profitability, as well as, competitiveness (The economist, 2008). Change of price driven competition to innovation driven competition Over a long time, global organizations have always preferred price competitiveness to innovation competitiveness. Although the price competitiveness has been effective for some organizations, it has proven not to be sustainable. In other words, price competitiveness is a short-term business strategy as opposed to long-term business strategies i.e. the innovation business strategies. For example, if a company attains cost leadership, it might benefit substantially from it, but not at the long run (Andriopoulos & Dawson, 2009). This is because of the fact that it is easy for the competitors to attain cost leadership as well. Implementation of strategies that would bring innovation within an organization would be, sustainable competitiveness since it is long-term. One of the key strategies that the organizations are implementing to enhance innovation driven competitiveness is by changing their organization’s structures from bureaucratic structures to flat and flexible organization structures. This move has contributed significantly to nurturing creativity, as well as, innovation within the workplace. Under a flat organization structures, employees are part of decision-making. This is as opposed to the bureaucratic structures, whereby only the management participate in the decision making process. Therefore, under the flat organization structures or democratic leadership styles, the organization benefits from the fact that there is a wide range of ideas coming from all the employees since they all participate in decision-making. Inclusion of employees in the decision making process is important as far as promotion of creativity and innovation is concerned. Another key strategy that the global organizations are utilizing to enhance innovation driven competitiveness is embracing of technology. Taking advantage of the ever-changing technology has proven to be effective as far as finding a sustainable competitiveness is concerned. Many organizations have taken advantage of the modern technology to come up with new innovative products. This is a sustainable competitive because of the fact that the company may legally protect is intellectual property rights. This helps in ensuring that the organization benefits substantially from its innovative idea i.e. for a lengthy period as long as its idea has a legal protection (Dutz, 2011). The Nature of Work in Today’s Global World In today’s global world, the nature of work within organizations have changed. Jobs are cognitive as opposed to a traditional workplace, whereby jobs are repetitive. The employers are embracing an environment whereby the employees may not always follow a fixed procedure or guidelines in execution of duties. Autonomy amongst employees promotes innovativeness. Because of the fact that globalization comes with change, it is important for organizations to adopt new ways of doing things. Therefore, within the workplace employees must have autonomy while executing their duties. By the employer giving autonomy to his or her employees, he or she promotes innovation. Globalization comes with new challenges and opportunities. For the organization to benefit from new opportunities, it must give autonomy to employees. For example, globalization has resulted to ever-changing customers’ tastes, preferences, needs, and desires. Autonomy amongst the employees helps in ensuring that the organization would be able to keep pace with the ever-changing customers’’ needs and desires. Today’s customers need new products that could satisfy their needs more effectively than the traditional products. Since most employees deal directly with the customers, they understand them more than the business owners or the management. During recruitment, employers are looking for employees with similar values and vision as the organization. This helps in ensuring that the employees would be committed to excellence in their roles. Employers are as well committed to developing employees to ensure that they offer excellent services to the customers. This is by organizing for regular trainings for the employees. Developing employees through training is in the best interest of both the employer and the employee (Andriopoulos & Dawson, 2009). Employees’ expectation In today’s workplace, employees have high expectations. For example, they are seeking for autonomy. This is because of the belief that autonomy would open a room for them to build their career through gaining more experience. Employees as well expect to work in an environment whereby they would be more mobile than in the traditional working places. Mobility entails a situation whereby employees could easily access promotion opportunities (Shyni, 2006). Employees as well do not have the job security. They are aware that it is hard for them to stick with one organization for their entire life. They are aware that the level of competition within the job market is extremely high and, therefore, failure to perform would result to them losing their jobs. Managerial styles Managerial styles as well have changed. In other words, organizations are moving from the authoritative leadership styles to democratic leadership styles. This comes alongside the shifting from bureaucratic organization structures to flat and flexible organizations structure. Under democratic leadership styles, the managers engage the employees as opposed to issuing of orders. Employees work under minimal supervision and may divert from the routine ways of doing things. Development, cultivation and fostering of particular skills Developing, cultivating and fostering specific skills amongst employees is important in the workplace today. This not only benefits the employees, but also the organization. This occurs under a culture of continuing improvement. This is an environment, whereby the employees are learning, growing, as well as, contributing to the achievement of the organization’s goals. One of the key ways of achieving this objective is by planning for regular trainings for the employees. The organization or management should first identify the skills that they want the employees to possess. After identifying the skills, they should then design some training programs, which would equip the employees with the specifics skills. The training sessions may happen daily, weekly, monthly or annually depending on the needs of both the employer and the employees. Another key ways of achieving the above objective is by regularly assessing the relevant skills (Ingram, 2012). After training the employees, it would be important for the employer or the organization to assess the employees in efforts of evaluating if the trainings are effective. If the training programs are not effective as far as equipping the employees with particular skills is concerned, then the employer should revise the programs. Additionally, the employer should encourage the employees to train and acquire particular skills. For example, the employer may reward those employees that possesses the skills and utilizes them in execution of duties. Equipping employee with relevant skills contributes towards achieving the organization’s objectives, as well as, enhancing its competitiveness (Andriopoulos & Dawson, 2009). Overcoming resistance and Change Change management entails an effective planning and implementation of change. It as well includes involvement of people that the change affects. There are both internal and external drivers of change. Internal drivers of change include administration adjustment and structural redesign among others. External drivers of change include legislation, world events and external market activities. Environmental triggers include economic, political and technological factors. It is always a challenge for organizations to implement change. One of the key reasons behind the challenge is resistance by affected stakeholders i.e. the employees. Employees may resist change because of changes in their duties, psychological threats, economic security reduction, as well as, lowering of status (Tobin, 2000). The change management process entails steps that the management should follow when implementing change. The initial step should be readiness assessment. Amongst the key area of assessment includes the employees and the organization in general. After doing the assessment, the management should identify the challenges that it may face, as well as, opportunities available while implementing change. The second step is to communicate the change to the affected stakeholders including the employees (Andriopoulos & Dawson, 2009). This happens after identifying the challenges that the management would face when implementing change. The management must effectively communicate the benefits of change to the organization and the entire workforce. The management should create awareness amongst the employees about the importance of change. The other step entails management organizing for training for the affected stakeholders. Training is amongst the most effective avenues of facilitating change in an organization. Managers should involve employees in change implementation. It should as well collect feedback from the employees to identify the most effective methods of implementing change. After a successful implementation of change, the entire organization should celebrate and recognize the success (Andriopoulos & Dawson, 2009). Conclusion Over the next a couple of decades, the hierarchical management structures might be less evident. Although the structure is clear in terms of reporting, it has a couple of shortcomings. For example, the structure does not allow employees to collaborate, share information. Employees will always develop into groups that become rebellious and compete for power. This might discourage innovation thus adversely affecting the success of the organization. On the other hand, unlike in the past when compliance mattered more than creativity, organizations are now focusing more on creativity amongst the employees. The fact that organizations now embrace employee participation i.e. in decision-making reflects this argument. Reference List Andriopoulos, C. & Dawson, P., 2009. Managing change, creativity and innovation. 9 ed. london: SAGE. Dutz, M., 2011. Competition and Innovation-Driven Inclusive Growth. Policy Research Working Papers, 3(14), pp. 15-30. Ingram, D., 2012. http://smallbusiness.chron.com/. [Online] Available at: http://smallbusiness.chron.com/advantages-flat-organizational-structure-3797.html Lane, P., 2012. Financial Globalisation and the Crisis. [Online] Available at: http://www.bis.org/events/conf120621/lane.pdf [Accessed 2013]. Marlow, E., 2011. The Breakdown of Hierarchy. 5 ed. Hoboken: Taylor and Francis. Ofd.ncsu.edu, 2013. Leadership Styles. [Online] Available at: http://ofd.ncsu.edu/wp-content/uploads/2013/01/Leadership-Styles-1_11_13.pdf Shyni, K. B. K., 2006. Change management vis-a?-vis human resource managementChange management vis-a?-vis human resource management. New Delhi: Discovery Pub. House,. The Economist, 2008. Time to re-embrace globalisation. [Online] Available at: http://www.economist.com/node/12494671 [Accessed 6 12 2013]. Tobin, R. M., 2000. Overcoming resistance to change. 2 ed. London: Kogan Page. Read More