Organizational Structure, Creativity, Innovation

The organizational structure can inhibit or encourage creativity and innovation. However, the problem with organizational structure is that it is the result of many factors, including history, organic growth, strategy, operational design, product diversity, logistics, marketing, customer base, the supplier base, etc. Therefore, what managers need is not recipes for complete structural change, but knowledge about the properties of building structures that can be adapted to the existing structure.

To begin with, it is useful to analyze the preferred structures versus the not so preferred ones. There are many definitions of organizational structure types, but one example is:

a) Mechanistic structures (generally not preferred): includes centralized control and authority, clearly defined tasks, vertical communication links, obedience to supervisors, rigidity and inflexibility.

b) Organizational structures (generally preferred) – decentralization of authority, loosely defined tasks, horizontal communications, greater individual authority, flexible, adaptable.

Experience shows that the above can be misleading. For example, flat organizations are generally preferred and hierarchical ones are not, however even flat organizations are actually hierarchical.

It is important to note that, if we have a mechanistic structure, what factors allow us to move in the right direction without a complete change?

Some answers include:

a) Direct communication links with decision makers.

b) Communication and flow of information between departments.

c) Tangible progression from problem ideas to solution, from product development to commercialization.

d) Creative teams that work outside but are linked to the organization, whose culture, processes, etc. diffuse into the existing structure.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity and Innovation, which can be purchased (along with a Creativity and Innovation Audit, Good Idea Generator software, and Power Point presentation) at http://www.managing-creativity.com

Kal Bishop, MBA

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