Evaluation of Organisational Creativity.

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Evaluation of Organisational Creativity.

Module: Creative thinking for the Event Professional

Tutors: Dave Ward

     Julia Tum

Submission Date: 12th Jan 2004.

Student Id No. C3065005


Executive Summary

The events industry has been rapidly been expanding and changing over the last number of years. This has lead to increased amounts of competition. Organisations need to find ways of obtaining a competitive advantage, and recent research has indicated that being more creative can give this edge.

The purpose of this report was to design a survey instrument which would evaluate the level of creativity within the Events Unit of Belfast City Council. A literature review was carried out and indicated five main areas where creativity can be encouraged or hindered. These were the organisations climate and culture, the leadership style that is used, the resources and skills which are available and the structure and systems of the organisation. Using the findings in these areas a questionnaire was developed as an instrument to assess the level of creativity within Belfast City Council. The instrument found that the council had a moderate level of creativity. It was found that their climate and culture supported creativity but the other aspects fell short and needed to be addressed in the future if the creativity level was to increase.  


Acknowledgements

I wish to thank Gillian Neill and the rest of the staff from the Events Unit of the Development Department of Belfast City Council. Their response to the questionnaire was greatly appreciated. 


Contents Page

INTRODUCTION                                                                            5

1. LITERATURE REVIEW        

1.1 Creativity and Business        

1.2 Definitions        

1.3 Value of creativity        

1.4 A strategic view of creativity        

1.5 Key factors affecting organisational creativity.        

1.5.1 Organisational Climate        

1.5.2 Organisational Culture        

1.5.3 Leadership style        

1.5.4 Resources and skills        

1.5.5 Structure and systems        

1.6 Summary Literature.        

2. DEVELOPMENT OF A SURVEY INSTRUMENT TO MEASURE ORGANISATIONAL CREATIVITY.        

3. EVALUATION OF CREATIVITY WITHIN BELFAST CITY COUNCIL EVENTS UNIT.        

CONCLUSIONS        

CRITIQUE OF SURVEY INSTRUMENT        

REFERENCES        

APPENDIX A                                                                         III

 Case Study        

APPENDIX B                                                                        VII

Example questionnaire                                                         


Introduction

In recent years the event industry has been constantly expanding and changing. More companies are starting up and local authorities are bringing more of their cities events in house. This has lead to increased competition between companies who are all looking to secure the same contracts. Furthermore clients are becoming more demanding and expecting more services to be provided, along with bigger and better than ever events. This is forcing companies to expand their portfolios, increase their skill sets and increase their ability to deliver events with greater impact.

One of the ways which has been indicated in recent years of achieving a superior position within the events industry is to improve the creativity of the organisation.

The aim of this report is to examine the current literature on the subject of organisational creativity in order to establish what elements an organisation needs to be creative and innovative and to keep ahead of the competition.

A survey instrument will then be devised based on the literature, to measure the level of creativity of a selected events based company. The objective will be to highlight the areas where the selected organisation needs to improve to increase their competitive edge.


1. Literature Review

1.1 Creativity and Business

The modern business world is constantly subject to rapid changes. Factors such as changes in market trends, globalisation amongst companies, as well as clients who are more globally mature and demanding, the introduction of new technology and the need to reduce to costs has lead to companies being faced with larger amounts of competition than they had in the past.

It is therefore important for organisations to stay ahead of their competitors and recent research has indicted that the creativity and innovation of an organisation can give them that competitive edge they require. By being creative and offering consumers a more innovative service or product, the company or organisation will be able to differentiate themselves from others who offer similar services. Cook (1998) found that creative organisations “harness the ability to think and act in different ways that make sense to their current and future customers”.  

Higgins (1996, cited in McFadzean, 1998) found that “many corporate CEOs, consultants and academics proclaim that innovation is the key to achieving competitive strategic advantage now and in the future”

1.2 Definitions

Creativity can manifest itself on many different levels including the personal along with the organisational. Individuals can be creative on their own with the organisation enhancing or encouraging it. (Petrowski, 2000). But what exactly is creativity?

Kao (1985 cited in Jones and Goss-Turner 2000) described it as the “Process of human activity leading to result which is novel useful and understandable.”

Gurteen (1998) found creativity to be “about divergent thinking and coming up with new ideas”

Creativity is on occasion confused with innovation but literature clearly identifies a difference between the two  

Innovation is defined as “The implementation process by which creative inspirations lead to practical results”. (Anderson and King, 2001).

Gurteen (1998) described it as the “taking of new or existing ideas and turning them into action”.

Overall both creativity and innovation are concerned with developing new solutions to problems which an organisation is faced with.

1.3 Value of creativity

“Creativity is no longer a nice to have quality within a few cranky individuals – it is mentioned in the contexts of business survival and the need to stay ahead of the game within leading organisations. It is particularly mentioned as a source of competitive strength within organisations that face discontinuous or chaotic environments or where there is little or nothing to differentiate the product or service from competitors”. (Cook, 1998). There are many other reasons why organisations should be creative apart from the competitive advantage it can give them improved solutions to problems along with continuous improvement for the whole organisation and it will encourage profitable innovations. It can also rekindle employee motivation and lead to improved team performances.

1.4 A strategic view of creativity

Organisational creativity can be seen as a process where creativity is the input to the processes that lead to innovation, competitiveness and returns on investment. (Cook, 1998)

Figure 1. An input-output view of the creative organisation.  (Cook, 1998)

             

    Creativity                                                           Innovation        

The thinking of novel                                            The successful exploitation of

and appropriate ideas                                                creative ideas

In “Corporate strategies of the top 100 UK companies of the future”, the Corporate Research Foundation lists six key drivers of future success as:

  • Structural flexibility
  • Innovative power
  • International orientation
  • Human resources
  • Growth markets
  • Quality of management

Creativity has been found to at the heart of structural flexibility and innovative power and can be seen in many of the leading organisations such as Hewlett Packard and Psion. (Cook, 1998).

1.5 Key factors affecting organisational creativity.

Research has indicated that there are five main areas were the factors affecting creativity lie. (Andriopoulos, 2001)

The literature surrounding what makes an organisation creative will be reviewed under the following sections:

  1. Organisational Climate
  2. Organisational Culture
  3. Leadership style
  4. Resources and skills
  5. Structures and Systems

1.5.1 Organisational Climate

Organisational climate is regarded as ‘”an attribute of the organisation, a conglomerate of attitudes, feelings and behaviours which characterises life in the organisation, and exists independently of the perceptions and understandings of the members of the organisation” (Ekvall, 1996 cited in King and Anderson 2001).

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“The climate of an organisation is inferred by its members through the organisations practices, procedures and reward systems deployed and indicative of the way the business runs itself on a daily and routine basis.” (Ahmed, 1998)

Literature has indicated that there are many different factors which need to be present in the climate of an organisation if creativity and innovation are going to be encouraged or enhanced.

Research carried out by Feurer et al (1996 cited in Andriopoulos 2001) within Hewlett Packard suggested that “creativity is best achieved in open climates where there is interaction with small barriers, a large ...

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