SCHOOL OF BUSINESS

BUSINESS MANAGEMENT

NAME : ARISHAN ARMUGAM

STUDENT ID : 189042367

TITLE : BUSINESS MANAGEMENT

LECTURER : MS DISHANTE SUPRAMANIAM.

 TABLE OF CONTENTS

NO CONTENT PAGE
1.0 Background of the study 1
1.1 Problem Statement 2
1.2 Research Objective 2

1.3 Research Question 2

1.4 Significance of the study 3-4

2.0 Introduction 4-5

2.1 Literature Review

2.1.1 What are the effects of organisational change to 5-8

employee’s creativity?
2.1.2 What are the factors that influence employees 9-12
creativity in the organisation?
3.0 Conclusion 13

4.0 References 14-17

 ‘How companies in different countries increase
creativity of their employees’
CHAPTER 1
1.0 BACKGROUND OF THE STUDY

The growth and sustainability of an organisation today rely on its ability to

innovate. Firms that innovate in order to enhance their processes, distinguish their

products and/or transform their structure have been shown to consistently outperform

their competitors. The creativity of one in an organisation is very vital in order to

perform in new innovations. Creative ideas are at the core of all organisational

creativity, and it is individual workers who, alone or in groups, create, encourage,

debate, change and realise these ideas.

Creativity has been generally recognised as a key component of innovation,

and thus companies are dependent on the creativity and creative contribution of their

employees (Amabile, T.M,2017). In many companies, action is taken to encourage

such creativity and hence innovation, as company owners and managers are looking

for reliable, productive and competitive ways to give their companies a competitive

edge. Different countries have their own styles and methods in increasing their

employees creativity. Today, companies work in a highly competitive, global climate,

making innovation essential.

Creativity is what inspires big ideas, challenges the way workers think, and

opens the door to new market opportunities. "Creativity" and "innovation" are

frequently used interchangeably for this purpose, but they are two distinct terms.

Creativity has been ranked the number one predictor for potential business success —

above management discipline, honesty, and even vision. Employees creativity

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 benefits the organisation in many different ways. In addition to this, imagination will

help them find out the best marketing strategies that will help their company expand.

1.1 PROBLEM STATEMENT

Organizational developments in the sector have illustrated the need for

innovation in the organisation. Although the changes were deemed important, they were not

always a good thing for workers(Partlow,P.J,2016).Organizational changes limited

opportunities for group participation in the company because workers were unaware of whom

to ask for support or focused solely on their own jobs. Organisation changes are not always

easy because as there is a need to hold on to old and healthy habits even though they

weren't working out in the modified situation and these change disrupt the employees

creativity thinking . In this way, imagination pushes individuals to move away from

comfortable and familiar circumstances and to live with confusion.

1.2 RESEARCH OBJECTIVE

I. To identify how does employees creativity benefits the organisation.

II. To identify the initiatives taken by companies to encourage employees to think

and act creatively.

1.3 RESEARCH QUESTION

I. What are the effects of organisational change to employee’s creativity?

II. What are the factors that influence employees creativity in the organisation?

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1.4 SIGNIFICANCE OF THE STUDY

Many companies have found it difficult to effectively incorporate systemic

change. Unsuccessful change programmes have been due to insufficient education and

training, staff apathy, insufficient management support, weak governance, inadequate

organisational culture, inadequate personnel, poor communication, inadequate planning,

inadequate customer attention and lack of a monitoring and evaluation method (George, O.

R,2016).Change-implementation of the program and its effect depend on the willingness of

managers to embrace and adapt the values of the change programme within their

organisations.

A well-designed, wisely adapted and well-implemented change programme

allows managers to produce the desired results. Identifying the factors that contribute

to success or failure change helps change makers to develop successful plans to

increase the chances of achieving the desired outcomes (Yu, M. C,2017). Technology,

global competition, economic conditions, a dynamic market climate and changing

consumer demands force managers to adjust the systems and processes of their

companies to be competitive. Managers routinely apply organisational improvement

initiatives such as restructuring, redesign, downsizing, mergers , acquisitions and total

quality management ( TQM) to minimise operational costs , increase performance and

improve production.

The explanation for the implementation of an organisational change is a

crucial factor in its success. An company does not take the change initiative as a

protection strategy, as it has been pressured to do, or as other organisations are doing

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 it (Ghosh K.,2015). In this situation, their comprehension of the change programme

and their dedication to and participation in the change programme would be poor and

would soon be abandoned. As a result , workers will lose trust and belief in the

programme of transition.

Managers can explain the need to enforce the change programme. They should

clarify the reasons for introducing the change programme and its benefits to workers

and ensure that employees appreciate the urgency of the change programme. The

change initiative will not work unless the company is willing to change (Baer M.,

2016). The company should be inherently stable prior to the initiation of the transition

programme. If an organisation has major obstacles such as an inadequate financial

base, weak leadership, weak employee morale, and severe strains between managers

and staff, implementation of the reform initiative should be postponed until

favourable conditions are in place.

CHAPTER 2

2.0 INTRODUCTION

Faced with the tide of globalisation, one of the biggest problems facing by

organisations is how to achieve an organisational competitive advantage in a rapidly evolving

climate. For any company, an adequate workforce structure in a single approach is used to

maintain successful organisational efficiency. Businesses have long been concerned with

improving employee ingenuity in order to produce better performance. Initially, they focused

on identifying what individual qualities are needed for individuals to be creative, but over

time, they focused more on designing organisational and team frameworks to promote

creative success.

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 The innovation of employee can be most widely referred to as a person who

has innovative ideas for his work & working style, who must be versatile in order to

work in a team rather than independently complete a project (Warren, C.K.C.2018),.

A creative employee is one who has stronger understanding skills and is adaptable if

new technology is implemented in an organisation so that he or she should be able to

use it in no time, both of these qualities suggest that workers are motivated so that

they can complete the job as they feel relaxed with all of these attributes would allow

them to get to know new opportunities, to use innovative technology all over the

world.

Creativity is adapted by the person to create new ideas. Creativity can depend

on the employee or the situation; the employee may choose to be in touch at the

highest or lowest level, even if he or she has tremendous potential (Weer, C.H. 2015).

Employees can use all of their skills, ability experience, in an effort to achieve

creative results.

2.1 LITERATURE REVIEW

2.1.1 What are the effects of organisational change to employee’s creativity?

Creativity is vital to the creativity of every organisation. The word "creativity"

is often described as the generation of ideas, and innovation is the implementation of these

ideas. In order for workers to be innovative, it is important for the company to have a

welcoming process and atmosphere (Boerner, S. 2015).Both researchers and practitioners

have argued that environmental conditions are conducive to innovation. As workers believe

that the environment of work is a high level of challenge, commitment and confidence, they

feel inspired and dedicated to making contributions. In the other hand, when workers feel that

the environment is ambiguous, low tolerance of uncertainty, less flexibility and time to work,

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they hesitate to take chances and therefore become less inspired and dedicated to making

contributions (Shriner, M.2019). If an company undergoes organisational change, such as:

restructuring, downsizing, or merging, it will cause workers to feel nervous, depressed, and

unsure, and will have an effect on the efficiency, happiness, and loyalty of employees to the
How does organisational change effect employee’s creativity?

 Change adoption barriers

 Unrealistic Expectations

 Deficient Leadership

 Poor Management

 Lack of employee involvement and commitment

 Conflicting Goals
organisation. Job satisfaction, job efficiency and organisational engagement are contingent

variables. Perceptions of organisational change are a moderating variable (Unger, D. 2015).

How does this organisational change can effect employee’s creativity? Table below shows

the reasons how it affects.

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 Table 1:The Effect of organisational change to employee’s creativity

1) Change Adoption Barriers

The transition initiative will not work unless the company is willing to

change.The company should be inherently stable prior to the initiation of the

transition programme. If an organisation has major challenges, such as an inadequate

financial base, weak leadership, weak employee morale, and severe strains between

managers and staff, implementation of the reform initiative should be postponed until

favourable circumstances are in place( Jiang, W. and Gu, Q.2015). Implementation of

change initiatives is likely to result in far greater organisational challenges at this

time.

2) Unrealistic Expectations

Organizations should be realistic about what to expect from their programme

of transition. The success of the change programme depends on the proper

implementation of an effective model in a supportive environment (Tang, T.L.P.2019)

. Managers can not expect miracles from their change programmes. It's a method to

solve the problems. In order to solve the problems, an effective change model should

be implemented accordingly. Therefore, achievable goals should be set.

3) Deficient Leadership

Change is more likely to fail if it is driven by poor leadership. Command-and

control-based leadership was the key obstacle to effective adoption of the TQM in

organisations. Leaders have a vital role to play in leading the change programme, creating

and communicating a vision, inspiring staff to engage actively in the change programme,

and resolving opposition and conflict (Vashdi, D.R.,2018). Organizational change

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involves successful leaders who apply various types of leadership in different situations to

encourage, motivate and empower workers to take responsibility for organisational

change, improve their skills and expertise to allow them to carry out their tasks

effectively and efficiently.

4) Poor Management

Managers who have been active in the process of change implementation have

described a lack of managers' ability to handle change and minimise resistance as a major

obstacle to the change programme (Joshi, K.2019). Many of the hurdles that obstruct the

change programme, such as lack of a clear vision, poor preparation, ineffective tactics,

poor organisational culture, poor communication, insufficient resources, and employee

resistance to change, are related to how effectively the change programme is handled.

Inefficient managers generate more tension for workers who apply organisational change.

Top management is responsible for the preparation and management of organisational

change. Bad selection practises, lack of preparation and growth and lack of help from

above may be the reasons for ineffective management(Antonakis, J.2014). Therefore,

experienced and competent managers should be recruited to lead organisational change

programmes. They should be trained adequately in change management theory and

practice to be able to inspire employees to apply the changes and achieve organisational

goals.

5) Lack of employee involvement and commitment

Employees are either the secret to an effective change initiative or threats to its

progress. The lack of engagement and involvement of workers in the formulation and

execution of the change programme is one of the most important barriers of

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 organisational change. The lack of participation of workers results in a lower commitment

to the execution of the change programme and, as a result, the programme would

ultimately fail. Effective programme of change is highly dependent on the degree of

engagement and commitment of employees to the objectives of change (Boyle, B.2016).

Change needs everyone in the company to recognise its role in the process of change and

to make change happen. Otherwise, workers would withdraw from the reform

programme. Managers can build attitudes, competencies and motivations for employees.

6) Conflicting Goals

Factors that influence Employee’s creativity in an organisation

 Encouragement of creativity

 Extrinsic versus intrinsic motivation Deficient Leadership

 Organizational encouragement

 Supervisory encouragement

 Work group supports

Conflict targets are typical in most organisations. Different divisions of a

company may have different goals and objectives that may be in conflict with each other.

These competing demands and priorities have an effect on the day-to-day activities of the

company and can adversely affect organisational change (Jiang, W. 2018). Managers and

staff should recognise and address dispute areas. Conflict resolution requires strong

visionary leadership, clear direction, and successful mutual conversation.

2.1.2 What are the factors that influence employees creativity in the organisation?

Research has shown that creativity is encouraged when a person or team has a sense

of ownership and control over their job and ideas, because it creates freedom. Creativity is

encouraged when people feel that they have the choice of how they want to work towards the

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outcome (Hennessy, B.A., 2016). It has been proven that freedom is necessary in order for

innovation to flourish, but it can be mismanaged by this freedom. The manager changes goals

regularly or if goals are not well defined, there are two common ways in which this can

occur. In exchange, the worker feels lost in the independence he or she has been given.

Table 2: Factors that influence Employee’s creativity in an organisation

1) Encouragement of creativity

Creativity promotion is the broadest component and tends to occur in three

subcategories: organisational motivation, supervisory support and support for the work

group (Amabile T.M., 2017). If used successfully, each of these is a source of motivation,

which is itself present in two forms: extrinsic and intrinsic motivation, where the latter is

more motivated.

2) Extrinsic versus intrinsic motivation Deficient Leadership

The origin of issues in the corporate environment most often is extrinsic

motivation. This form of motivation, often either financial compensation or the risk of

being shot, is outside the individual. People are inherently discouraged from becoming

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imaginative, but it does not help to increase creativity in certain cases. There are, on the

other hand, desires and interests, components of the internal desire of an individual that

are intrinsically driven .When this is the case, as a means of fun, individuals participate in

the n challenges, this is assumed to be the major factor in innovation.Explains that if a

person is motivated by money, it is therefore extrinsic (Schindler P.S., 2015).

Motivation, as it was done before, he or she is likely to solve the problem, choosing the

quickest and most obvious path. It is possible that this strategy will be unimaginative, and

will not produce new ideas. The worker is happy taking his or her time with the project

when it comes to intrinsic motivation, as they enjoy the process, they don't mind. They

can explore various aspects through this technique. This journey is more likely to cause

errors and takes more time. As their findings are exceptional and difficult to imitate by

rivals, the company will be able to thrive on such results and gain a competitive

advantage.

3) Organizational encouragement
This scale relates to the promotion of risk-taking, where all levels of management

value creativity. It has been recognised that useful ideas emerge when someone feels like

the situation welcomes them to do so. Ideas, while harsh criticism undermines one's

motivation, should be equally judged and promoted. Recognition and incentives inspire

innovation, but not if a person only takes part in the activity to earn the award. However,

if this is considered a 'bonus' that affirms good work, it is promising. Collaborative idea

flow is important because as exposure to other equivalent ideas increases, the likelihood

for innovative ideas increases. An significant aspect is growing one's expertise and skills,

and it also makes the job exciting. This process allows fresh ties to be made. It is the

responsibility of the manager to provide staff with training in subjects outside of their

current expertise (Bell, E., 2016). Many individuals have poor memory skills and

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underestimate how easy it is to If the ideas are not registered right away, the ideas may be

lost, which is extremely important for uncommon ideas. It is understood that successful

individuals go to great lengths to catch brief ideas that might lead to something

exceptional. The manager should implement the significance of this and allow them to do

so and provide instruments that help the process of capturing feelings. Many more ideas

appear through the use of this method than otherwise would have been .Skunk Works

(department of design for The engineering facility of the American aircraft and

technology company, Lockheed Martin, allowed this by allowing its employees to write

on the walls. As well as other types of reminders such as labelling pens and pens, many

businesses make it a habit to have screen savers that remind the worker to record ideas

before they disappear.

4) Supervisory encouragement

Studies show that the role of the manager is critical in the areas of analytical

transparency, transparent interactions between managers and subordinates, and

supervisory support for the team's ideas and the decision to pursue them. There is a higher

success rate for proposals and projects that come from the workers themselves. Matching

people with the right tasks is the most productive job a manager can complete. In order to

build a successful match, the manager must have rich and comprehensive employee and

assignment details (Epstein R.,2018) . Good matches are uncommon, as this method takes

time and involves effort.When the manager lets people decide how to accomplish a

project or mission, innovation will emerge and flourish. They do not, however, need to let

the employee choose which project or job. It is also necessary to have clearly established

strategic objectives as they also stimulate the imagination of the worker. In terms of

ingenuity in the field of design, this distinguishing factor is positively affected by a good

leader by the effect of their own innovation trait, which is a source of vital feedback.

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 When the ideals of the leader are creativity, they are motivated and inspired by what the

leader himself thrives (Khaire, M., 2017). His or her followers are familiar with this.

Through this mentality reflected by the chief, they will pass on the principles to the

workers, who embrace them as their own. The leader is a role model who thrives and

whose character serves as a role model.

5) Work group supports

Encouragement within the community is advantageous when the history of team

member diversity, shared passion for the idea, and openness to each other are present.

Diversity can introduce individuals to a wider range of new ideas, as well as a positive

sense of challenge and concentration. More complexity is applied to collective

imagination by fostering conditions of cultural and environmental variation, providing

more possibilities for problem solving and creating new ideas (Catmull, E. 2018).

3.0 CONCLUSION

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 Owing to the complexities of the internal climate and the dynamics of the

external environment , businesses are undergoing almost continuous transition. As a result,

several companies are introducing multiple change programmes to address the needs of

internal and external environments. Given the possible advantages of the organisational

transformation initiatives outlined by gurus and consultants, these advantages are not easy to

accomplish in reality. Despite investing money and time in organisational reform, most of

them have struggled to bring about lasting positive improvements in organisational

efficiency. They failed to achieve the desired and anticipated results (Jin, N.C.,2015).

These are the theoretical contributions of this research to the literature on how

organisational change can effect employee’s creativity in an organisation itself.. From

a functional point of view, the results of this study provide with a functional

understanding of the factors likely to promote or impede the implementation of the

change-program (Dhar, R.L. 2015). A comprehensive understanding of these

variables will improve the likelihood of success in the change programme by

predicting and avoiding these obstacles throughout the implementation of the change

programme.

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