Creativity can be defined simply as the process of developing novel ideas that can be put into action.

Creativity is an essential part of problem solving and decision making. To be creative is to see new relationships and produce imaginative solutions. A new perspective on creativity helps illustrate the point that it is not a rarified talent of the privileged few.

Creativity and Innovation

When we emphasise on the application of the creative ideas, creativity is closely linked to innovation. To be innovative, a person must produce a new product, service, process, or procedure.

Creativity + Value = Innovation

Promoting creativity in organisations

Highly creative people are an asset to any organisation. One perspective on the conditions necessary for creativity is to recognize that certain managerial and organizational practices foster creativity. The most important characteristic of the creative organization is an atmosphere that encourages creative expression. A manager who encourages imaginative and original thinking, and does not punish people for making honest mistakes, is likely to receive creative ideas from group members.

1. Challenge
Giving employees the right type and amount of challenge is part of providing a creative atmosphere. Employees should be neither bored with the simplicity of the task, nor overwhelmed by its difficulty.

2. Freedom
To be creative, employees should have the freedom to choose how to accomplish a goal, but not which goal to accomplish. For example, creativity would be encouraged if a manager said to a group member, I would like to improve our Internet service, and you figure out how. A creative result would be less likely if the manager said, I would like you to improve our service, and you decide which service to improve and how to do it.

3. Resources
Managers need to allot time and money carefully to enhance creativity. Tight deadlines can get the creative juices flowing, but people still need enough time to let creative ideas swirl around in their heads for a while. Employees also need large enough budgets to purchase the equipment and information necessary to get the job done. At one company, top management asked employees to be more creative and at the same time canceled subscriptions to trade magazines and limited book purchases. The result was that many readily accessible sources of good ideas dried up.

4. Supervisory Encouragement
For people to sustain creative effort, they need to feel that their work matters to the employer. Just as the elementary school teacher says to the 8year old, I love your drawing. Keep up the good work, the manager might say, I love your idea for reducing shipping costs. Keep up the good work.

5. Organizational Support
The organization as well as the manager must support creativity. Support can take such forms as giving recognition and financial rewards for successful new ideas. 3M has long been recognized as an organization that supports creativity. One of the leading companywide programs lets workers invest 15 percent of their time on their own projects. One of the most successful projects to come from the program is Post-it Notes, a top-selling product in the United States.

6. Encouraging Risk Taking

Employees are sometimes hesitant to make creative suggestions for fear of being zapped if their new idea fails when implemented. In contrast, if risk taking is encouraged by informing employees that it is okay to fail, more people will be willing to take chances. Neville Isdell, president of Coca-Cola Co.s Greater Europe Group illustrates this point as follows: We celebrated the 10th anniversary of the launch of the New Coke.We celebrated the failure because it led to fundamental learning and showed that its okay to fail.

Though

 A truck approached a low overpass on the highway. It was just about the same height as the arch, and managed to get itself in, but not out. Halfway through, the truck became wedged in. It could not move forward or back out without severely damaging its roof. No one could figure a way to get it out, until a small girl suggested a solution. What was it?

Stages of the organisational innovation process

Innovation doesnt happen all at once. It occurs gradually through a series of five stages
Setting the agenda Setting the stage Producing the ideas Testing and implementing the ideas Assessing the outcome

Most innovative companies in the world- 2009

Rank 1 2 Company Apple Google HQ US US Known for its most innovative Product (46%) Customer Satisfaction (27%)

3
4 5

Toyota
Microsoft Nintendo

Japan
US Japan

Process (36%)
Process (26%) Product (48%)

6
7 8 9 10 13 15

IBM
Hewlett Packard Research in motion Nokia Wal-Mart Tata Reliance

US
US Canada Finland US India India

Process (31%)
Process (39%) Product (53%) Product (38%) Process (49%) Product (44%) Business model (35%)

Creativity in various fields of management

Finance
Creativity in finance doesnt involve employing creative practices to manipulate the accounts at the end of the financial year for better results. Neither does it involve increasing the font size in the financial statement,

Marketing
Marketing is an area where one cannot survive without being creative. History stands testimony to the fact that organisations that have not been and those that have ceased to be creative have been wiped out from the face of this earth.

Organistional Behaviour and Leadership

Today the asset base of an organization increasingly resides in the talent and creativity of its employees.- C.K.PRAHALAD Creation of extraordinary value. Create a culture of change

 Creativity in diff fields Marketing- Merc ad, Pantene and Dove, Finance- Dhir OperationsOrganisational Behaviour and LeadershipApple or leader

References
Essentials of Management, 8th edition, Andrew J Dubrin, Southwestern educational publishing ISBN: 9780324353891. Organisational Behaviour, 7th edition, Steven B Robbins, Prentice hall International, ISBN 0-13-170901-1.

Questions??