CREATIVITY AND CHANGE



Managing Creativity and Change

Managing Creativity and Change

Introduction

“In the future, hierarchical management structures will be less evident. The management of intellectual capital will require skills that nurture creativity and innovation in workforce rather than compliance as in the past.”

The statement holds true and gives a view into the future management practices of many firms. The hierarchical structure of many organisation is soon about to change in the future if they are to compete in this ever changing global economy. They new structure will be the one which fosters creativity and innovation in an organisation. Managers will no longer be handling workforce and getting them through the compliance procedure; instead they will help their employees develop and nurture skills that will bring about innovation and change in an organisation.

To understand how these new ideas could be established in the organisations of today, we need to shed light on the changes in the global economy, the factors that need to be managed to bring about innovation and creativity, understand change management and its impact on organisational success or failure.

Changes and Shits in Global Economy

The global economy has experience various changes and shits over the decades. Many new trends and shits are seen in the operations of various firms in today's global economy. In the early nineteen century, new methods of transport and forms of energy were being discovered, which first changed the global economy. The second shift was seen during inter war years which lie between the first and second world wars. During this time countries were moving towards independent production and economic independence. After the world wars, the global economy saw mass industrialisation and foreign direct investment into United States, United Kingdom and from other European nations. The changes that followed after the war era saw massive development in technology and science. New method of production and cost effective ways for manufacturing were observed. Trade between nations and rise of new economic markets have changed the global economic market since its early days back in the nineteenth century (Dunning & Lundan, 2008, p. 735).

As the second decade of the 21st century came to an end, the world exited from a financial crisis in 2009 and the new emerging markets are creating numerous opportunities for the world economy. There will be no single country that could dominate the global economy as the distribution of global growth has diffused into new emerging and developing countries.

These developing and emerging countries have a foothold on the global economy of today. New economies have risen to become dominant forces in the international trade, finance and production. This rise of new shit in the pattern of global economy is because of the increase in trade between the developing nations and the developed nations. Today, these emerging markets hold more than 45 percent of the international trade; previously they held around 30 percent back in 1995. Due to their rise in the international forum of trade, most of the developing countries have increased ...