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Creativity plays an important role in economic competitiveness of advanced economies



Creativity plays an important role in economic competitiveness of advanced economies

Creativity and innovation in Organizations

Creativity and innovations are important factors for organization and its leaders. The reason behind their importance is that organizations are able to get competitive edge from being creative and innovative. Another reason is the competitive marketplace demands and values to customers, which shows the high quality, low cost, fastest cycle time and overall customer satisfaction. According to various studies it is predicted that only those organizations can achieve success globally who apply creativity and innovation to decrease their costs and increase their operating efficiencies. In today's world all business thrives on creativity and innovation because of uncertainty in the climate, continuous changes in the environment and volatility (Manz, et al 1991).

Creativity and Top down Management

The successful business model does not focus on hierarchal authoritative methods as it was done in industrial age. Now business models focus on the interdependence through innovation, integration and collaboration. Hierarchal authoritative organizations are top down configurations and have centralized decision making process and dissemination of ideas. According to some researchers the top down management perpetuates culture which is inward looking. This hold backs the abilities of the organization to realize the external influences (Manz, et al 1991).

It is preferred that the companies must analyze their external environment and observe the market trends so they can apply competitive formulas. More over the hierarchal structures only allow following the ideas of other in this way they waste their valuable intellectual resources. The top down structure of the organization hold backs the creativity of their employees by not letting them participates in the activities and discussions (Manz, et al 1991).

In bottom up management, organizations have horizontal structures and decentralized decision making process. This structure focuses on the employee empowerment with the help of shared decisions and collaboration. The bottom up management encourages employees in participation and provide learning environment to their employees. In such environment employees are able to contribute and participate in the creative process which benefits the organization as creativity and innovation are the most critical factors in the development of the organizations. Bottom up management system encourage organizations to develop and get success because it fuel up the innovation and creativity in the employees of the organization (Moore 2007).

According to some researches it is found that world is moving towards the bottom up economy. In bottom up economy the customers want more options and they are less loyal. This is one of the most important trends of the external environment. This is also one of the main reasons that organizations should not only see the external environment but also explore the new opportunities. Here, the new opportunities are only related with the innovation to get the highest shares in the market and get competitive advantage (Moore 2007).

To develop creative and innovative environment in the organization, it is the responsibility of the leaders to look for the ...