Management Chapter 8 Workplace Essentials Creativity Innovation And

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McKee Chapter 8:

WORKPLACE ESSENTIALS: CREATIVITY,

INNOVATION, AND A SPIRIT OF

ENTREPRENEURSHIP

CHAPTER OBJECTIVES

8.1 Explain why creativity, innovation, and entrepreneurship are critical to business.

8.2 Define creativity.

8.3 Learn how to encourage creativity at work.

8.4 Define innovation and describe its importance.

CHAPTER SUMMARY

Chapter 8 will look at how employees, managers and leaders can create environments

that support creativity and innovation. We will first look at how success in a

hypercompetitive environment depends on creativity and innovation in the organization.

Next, the chapter will explore creativity – what it is, how it works, and why it is

important. Concepts such as convergent and divergent thinking and right and left brain

thinking will be explained. Following that, we will explore the neuroscience of thinking

and feeling and its ties to creativity. In addition, Dietrich’s four domains of creativity will

be explained.

Next, the chapter illuminates the many aspects of starting and thriving as a small

business, such as how to write a business plan, typical funding resources, the life-cycle of

a start-up, and how to avoid the pitfalls of starting a business. Additionally,

intrepreneurship, or the innovation and creative spirit of entrepreneurship exhibited

within an organization is explored. Lastly, HR’s role in encouraging creativity,

innovation, and entrepreneurship and ways we can be more creative, innovative, and

entrepreneurial completes the chapter.

CHAPTER OUTLINE

Teaching Objective: To help students understand why creativity, innovation and

entrepreneurship are critical not only to the survival of any business in the hyper-

competitive environment of today, but to the US business environment in general.

I. Why Are Creativity, Innovation, and Entrepreneurship at the Heart of Business?

A. Hypercompetition- a state of constant and escalating competition

1. The new rules for success in business include learning how to excel in

II. What Is Creativity?

1. Creativity – the process of imagining and developing something new

2. There are many factors that affect creativity:

a. Knowledge

b. Age

A. Convergent and Divergent Thinking

1. Convergent thinking – an analytical thought process that follows the

B. The Left Versus Right Brain Myth

1. Left brained and right brained people=Myth

C. The neuroscience of creativity – thinking and feeling

1. Two streams of neurological activity seem to be related to creativity

(Dietrich).

III. How Can We Encourage Creativity at Work?

A. Develop a culture where creativity is valued

1. Challenge the status quo

2. Encourage challenging debate

IV. What Is Innovation and Why Is It Important?

1. Innovation – is the process of implementing new ideas

B. Most Innovative Companies and Products

1. Companies finding new and better ways to position themselves and their

products in the marketplace

V. How Can We Foster Innovative in People and Companies

A. Structures that promote innovation

1. Skunk works – A term used in business to describe a group within an

VI. What is Entrepreneurship?

1. Entrepreneurship – the process of identifying an opportunity, developing

resources, and assuming the risks associated with starting a new business

A. The importance of small Business in our Economies

1. 99.7 percent of companies that employ people are small businesses

B. Profile of an Entrepreneur

1. Embrace risk

2. Take initiatives

C. Social entrepreneurship – the activity of identifying opportunities to help

society in some way, with financial gain taking a secondary position if it factors

in at all

VII. What is Intrepreneurship?

1. intrepreneurship – creative and innovative talent and the spirit of

A. Building Support for Ideas

1. Always look for new ideas

VIII. How Does a New Business Get Started?

1. A few things you can do to overcome obstacles:

a. Knowing the right questions to ask

A. Questions to Ask When Starting a Business

1. How much will it really cost?

2. What taxes will I pay?

A. Writing a Business plan – a formal document that states the nature of a business

and its goals and outlines how the business will succeed.

B. Where does the money come from?

1. Investor – someone who provides money as a loan and is, in return, paid back

with interest

C. Life cycle of a start-up – As an entrepreneurial venture matures, it goes through

four stages:

1. start-up – transform a dream into reality; successful leaders in this stag

develop their systems of operation and successfully manage the inevitable

D. How to Avoid Common Pitfalls and Succeed as an Entrepreneur

1. Good leadership and management

2. Develop your employees

3. Remember your business plan and understand your finances

IX. What is HR’s Role in Supporting Creativity, Innovation and Entrepreneurship?

A. Protecting Your Creative Ideas

1. Intellectual property – the ownership of a creative thought or idea and legal

3. Copyright – The exclusive rights granted to the creator of an original work,

B. Don’t Let Bureaucracy Get in the Way of Creativity

1. Reduce roadblocks for innovation

X. What Can We All Do to be More Creative, Innovative and Entrepreneurial

A. Becoming more creative

1. Try to be surprised by something everyday

DISCUSSION QUESTIONS

Discussion Questions for Objective 8.1:

1. Have you ever been in a situation where a manager, teacher, or another authority figure

was controlling your actions too much? What did that do to your desire to be creative and

to help that person achieve his or her goals?

Suggested Answer:

Student responses will vary. When restricted by any authority figure in any situation,

2. Have you ever dreamed of owning your own business? Which aspects of this idea are

attractive to you? Which are daunting or frightening, and which don’t you understand

very well yet?

Suggested Answer:

Student responses will vary. Typically, those who dream about owning their own

Discussion Questions for Objective 8.2:

1. Review the factors affecting creativity in Exhibit 8.2. For each of these factors, identify

a situation in which the factor helped you to be creative. Which factor do you find has the

greatest influence on your creativity? In which of these factors do you feel you excel

when it comes to creativity?

Suggested Answer:

Student responses will vary. Knowledge – you may be very knowledgeable in math. By

combining that knowledge with an online math tutoring blog, you may create a new

business venture. Age – You may decide that while you are in college, you may invest

time and energy into the online math tutoring blog. Positive outlook – while you are

2. Do you consider yourself a predominantly convergent or divergent thinker? Explain

and give examples.

Suggested Answer:

Discussion Questions for Objective 8.3:

1. Consultants and HR professionals use a wide variety of role-plays, games, and other

experiential exercises to foster creativity in training sessions. One such exercise involves

presenting a mundane object to participants, who must generate a list of all possible uses

for this object. With two or three of your friends or classmates, see how many uses you

can think of for a nail, leaf, penny, and spoon.

Suggested Answer:

2. Why would you want to avoid working on a problem with people who have solved

Suggested Answer:

Student responses will vary. It is entirely possible that instead of looking for a creative or

Discussion Questions for Objective 8.4:

1. Do you think innovation in business is done primarily for market competitiveness and

profit? Why else might a business engage in innovation?

Suggested Answer:

Student responses will vary. Certainly, many companies drive innovation in an attempt to

be more competitive, increase market share, and increase profits. However, some

2. Is innovation always good? When and where has innovation had a negative impact?

What are some of the ethical dilemmas associated with innovation in the music and

communication industries?

Suggested Answer:

Student responses will vary. Innovation isn’t always good. In the pursuit of new and

innovative ways to make a product or service better, many companies have encountered

Discussion Questions for Objective 8.5:

1. In this chapter you have learned that innovation is not just about new products or

services. Innovation is also about how businesses and organizations are structured and

managed. Brainstorm a list of ways a small business, such as a coffee shop, local

restaurant, or auto repair garage might, change the way it does business to more

effectively meet the needs of its clientele.

Suggested Answer:

Student responses will vary. An auto mechanic may innovate to meet the demands of a

2. Brainstorm a list of innovations that would help you be more efficient or have more

fun in your daily life. Which of your ideas could become a product or service?

Suggested Answer:

Student responses will vary. In regards to fun, you can take a new way home from school

Discussion Questions for Objective 8.6:

1. Would you like to own your own business one day? Why? What specifically attracts

you to the idea of becoming an entrepreneur?

Suggested Answer:

Student responses will vary. Typically, those who dream about owning their own

2. Think about a social issue that is important to you. Brainstorm a few ideas for social

entrepreneurship. Pick one of your ideas and explore in some detail what it would take to

launch your social entrepreneurship venture.

Suggested Answer:

Student responses will vary. You can take the environment for instance. One could start a

Discussion Questions for Objective 8.7:

1. Think of yourself as an intrepreneur in your school. What opportunities for innovation

can you see? List five areas where you could apply your creativity and innovation to

make changes that would support students, faculty, staff, or the community. What support

and resources would you need to start this new venture? Who would you need to include

in the stakeholder group to take this forward?

Suggested Answer:

Student responses will vary. Opportunities for innovation could be in the area of teaching

2. What obstacles might you run into if you attempted to act as an intrepreneur in your

school? List as many of these obstacles as you can think of from the example in question

1. What are some comprehensive ways of overcoming these obstacles?

How would you deal with them individually?

Suggested Answer:

Student responses will vary. You may not share your ideas with enough people as

frequently as you should. You can get others involved by holding regular brainstorming

Discussion Questions for Objective 8.8:

1. Review the questions in this section that you should ask yourself before starting a

business. Brainstorm five more questions that relate specifically to your knowledge and

expertise, personality, and desired lifestyle.

Suggested Answer:

2. Do you know someone who has started a business? If it is successful, what factors do

you think contributed to its success? If it is failing or has failed, what caused its demise?

Suggested Answer:

Discussion Questions for Objective 8.9:

1. What is your opinion about companies and individuals who violate copyright laws?

Justify your for, against, or situational opinion.

Suggested Answer:

Student responses will vary. Typically, students would either tend toward “for” or

“situational.” Since so much music and video and film are being downloaded, for

2. Have you worked or been a student in a highly bureaucratic organization? How did the

many rules and regulations impact you? In your opinion, how do layers of bureaucracy

emerge in businesses?

Suggested Answer:

Student responses will vary. Typically, rules and regulations inhibit and discourage

Discussion Questions for Objective 8.10:

1. Have you ever met people who follow the rules no matter what? How do these people

impact your and other people’s abilities to be creative?

Suggested Answer:

Student responses will vary. Just as bureaucracies inhibit and discourage innovation and

2. Use the process of mind mapping to create a plan for your next paper. You may

consider your study methods, environment, motivation, preparedness, etc., when

developing branches for your mind map. Make this map as detailed as possible and

include positive imagery, color, and line thickness to differentiate importance at each

level. Give a brief description of this map after its completion.

Suggested Answer:

END OF CHAPTER ACTIVITIES: EXPERIENCING LEADERSHIP

Leading in a Global World: Microloans to Help Developing Nations

Part One: Understanding Microfinance

In 2006, Muhammad Yunus was awarded the Nobel Peace Prize for his innovation in the

microloan arena by creating a new category of banking known as microcredit for the

poor. Microcredit involves granting small loans to people who would not qualify for

conventional bank loans. Microcredit enables even very poor people to become

Part Two: Being a Social Entrepreneur

Imagine you live in a poor, rural village in India. Clean water and sanitation are

problematic. Most of the huts in the village are in disrepair. Farming is the primary