Page 276 - Fundamentals of Management Myths Debunked (2017)_Flat

Exhibit 8–5 Innovation variables CHAPTER 8 • Managing Change and Innovation 275

Structural Variables
• Organic structures
• Abundant resources
• High interunit
communication
• Minimal time pressure
• Work and nonwork support
Human Resource Variables
• High commitment to
training and development
• High job security
STIMULATE • Creative people
INNOVATION

Cultural Variables
• Acceptance of ambiguity
• Tolerance of the impractical
• Low external controls
• Tolerance of risks
• Tolerance of conflict
• Focus on ends
• Open-system focus
• Positive feedback

Watch It 2!
If your professor has assigned this, go to the Assignments section of mymanagementlab.com to
complete the video exercise titled CH2MHill: Innovation.

hoW do structural varIablEs aFFEct InnovatIon? Research into the effect of
structural variables on innovation shows five things. 40
1. An organic-type structure positively influences innovation. Because this structure is low
in formalization, centralization, and work specialization, it facilitates the flexibility and
sharing of ideas that are critical to innovation.
2. The availability of plentiful resources provides a key building block for innovation. With
an abundance of resources, managers can afford to purchase innovations, can afford the
cost of instituting innovations, and can absorb failures.
3. Frequent communication between organizational units helps break down barriers
41
to innovation. Cross-functional teams, task forces, and other such organizational
designs facilitate interaction across departmental lines and are widely used in innovative
organizations.
4. Extreme time pressures on creative activities are minimized despite the demands of
white-water-rapids-type environments. Although time pressures may spur people to work
harder and may make them feel more creative, studies show that it actually causes them
to be less creative. 42
5. When an organization’s structure explicitly supports creativity, employees’ creative
performance can be enhanced. Beneficial kinds of support include encouragement, open
communication, readiness to listen, and useful feedback. 43

hoW doEs an organIzatIon’s culturE aFFEct InnovatIon? Innovative
44
organizations tend to have similar cultures. They encourage experimentation; reward both