Building a climate for innovation through transformationa­l leadership and organizational culture. Research has called for organizations to be more flexible, adaptive, entrepreneurial­, and innovative in meeting the changing demands of todays environment. Appropriate leadership to effect such change is required; however, there has been little empirical analysis of the theoretical relationships among the key components that make up such change strategy, including transformationa­l leadership, organizational culture,…
INDIAN INSTITUTE OF MANAGEMENT ROHTAK HRM-1 ORGANIZATIONAL BEHAVIOUR I ORGANIZATIONAL CYNICISM ABSTRACT: According to Oxford Dictionary, cynicism is defined as, “an inclination to believe that people are motivated purely by self-interest; scepticism”. This behaviour exhibited in an organizational context is termed as organizational cynicism. Organizational cynicism is also defined as a negative attitude toward one’s employing organization, comprising three dimensions: 1. A belief that the organization lacks integrity.…
How the organizational structure affects innovation in firms?
Innovation makes development and improvement, which is the key to continued success. Organizing is arranging and structuring work to accomplish an organization’s goals. Organization is important for a corporate so as to operate efficiently, but people usually just learn it in theory.
Thus, knowing how to apply organizational structure to innovation in practice is necessary. Besides, although there are many organizational case studies about some situations where innovation may occur, most of these studies are just focusing on the small-scale organizations like particular farms and schools (Sapolsky, 2016).
This article aims at discussing how the organizational structure influence the innovation in terms of firms. This paper will discuss from the perspective of six elements of organizational structure to analyze the effects of each element on innovation and combining them with firm’s operation.
Organizational structure is the formal arrangement of jobs within an organization. There are six key elements of it, work specialization, departmentalization, chain of command, span of control, centralization and formalization. The definition of innovation differs, but it is certain that it is related to new things. What companies come to mind when thinking of successful innovators? Maybe it’s Apple with its iPad, iPhone, iPod, and vast array of computers.
Maybe it’s Google with its continually evolving web platform. Innovation could be stimulated by the application of six elements of organizational structure.
Then let’s talk about the fist element of organizational structure, work specialization. Work specialization is the degree to which tasks in the organization are divided into separate jobs with each step completed by a different person. At this point, innovation could be divided into two parts, administrative and technical innovations.
Specialization have positive effect on both kinds of innovation. Damanpour (1991) used meta-analytic reviews statistic method to analyze the relationship between specialization and two kinds of innovation. Specialization will make workers focus more on one direction and explore more deeply in this direction because their job’s scope is narrower.
They just need to think about their parts, which gives them more energy and time to innovate. Furthermore, specialization will have significant effect on newcomers in technical innovation. Von Krogh, Spaeth and Lakhani (2003, p.1230) state that “specialization in the project incurs benefit for newcomer” by interviewing different groups of wo.....[read full text]
In order to set up chain of command, span of control is an important aspect to be considered. Span of control is the number of employees who can be effectively and efficiently supervised by a manager. The wider span of control, the more innovative ideas. The increase in span of control may result in the managerial and technical innovation (Williamson, 1967).
If the span of control is wider, the control of individual is less because one manager need to take control of more people. It may facilitate the flexibility and sharing of ideas without too much control. Moreover, the width of span is affected by skills and abilities of manager, employee characteristics and many other factors.
Organization can take advantages of them to stimulate innovation. For example, some employees may be more creative and the manager of them is more likely to listen to others and accept new things. In this situation, they could work together very well and the efficiency of i.....
Positive does not mean the degree of positive aspects should be very high. It may lead to opposite result when overusing it. Similarly, negative does not mean the degree of negative aspects should be very low. The firms should apply these six elements properly according to the size of firms, the nature of firms and any other external factors.
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Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of management journal, 34(3), 555-590.
Von Krogh, G., Spaeth, S. and Lakhani, K.R., 2003. Community, joining, and specialization in open source software innovation: a case study. Research Policy, 32(7), pp.1217-1241.
Vermeulen, P., 2004. Managing product innovation in financial services firms. European Management Journal, 22(1), .....