Culture, Creativity, Innovation Ch 14 Part 2: April 24

Creativity Production of novel, useful ideas –Can be trained; can use group methods –Delphi technique 3 components of creativity 1.Must have basic relevant skills in area 2.Creativity skills needed Individual Diffs in this – related to? Age effects? Tenure effects?

(cont.) 3.Intrinsic motivation – Amabile (’96), people will be most creative when motivated by interest, sat, & challenge of the work itself, not by external pressures. –Note importance of social environment/culture –May also be linked to positive affect – –Multiplicative relationship betw 3 components (creativity = 0 if any one is 0)

Amabile’s research Importance of social environment on creativity – –3 features appear to be critical: –1) Competition – different effects depending on locus of the competition How so? –2) Time pressure – paradox but overall a slight neg effect (cont…)

(cont.) –How does legitimacy of the time pressure affect creativity? 3. Rewards – complex effects. –What does she mean by the ‘threshold effect’ with resources?

Innovation Process of developing & implementing new ideas –Could include products or processes Orgs have to innovate to survive, but innovation may be resisted & become political

(cont.) Implement creative ideas within org –Org must have culture that values innovation –Must have resources (financial, people) –Management linked w/innovation How so? Examples?

Most Innovative Orgs (based on patents) See Table – General Electric = 50,837 patents 2 – IBM = 32,498 patents 3 – Westinghouse Electric = 28,005 4 – AT&T = 23,948 5 – General Motors = 23, Du Pont 7 – Hitachi 8 – Eastman Kodak 9 – Canon 10 – U.S. Navy = 17,805

Innovation Case studies of innovative orgs reveal presence of 1 or more ‘idea champions’ –Who are these? Howell & Higgens (90) study comparing champions v non-champions who worked on same project: –Differences in the groups? –What may lead you to be a ‘champion’?

Innovation Communication – w/external environment –“Gatekeepers” - what do they do? Internal v external communication –How does culture play a role in this?

5-stage model Innovation process can include: 1.Set the agenda (mission statement as guide) 2.Set the stage – w/goal setting 3.Produce ideas 4.Test & implement ideas – resources impt. 5.Outcome assessment -

Best Practices in Innovation Set challenging goals –Application of goal-setting theory Introducing diversity/new ideas –Outsiders v insiders Create opportunities for talented ees –Allow ees to move around internally w/o having to give up job title (GE) Reward innovation – w/share of profits (GE)