Creativity and Innovation

¶ … Innovation Structural contingency theory depends on the development and implementation of creativity and innovation. Based on systems design, structural contingency theory takes into account the nature of the organizational environment and other external issues that impinge upon organizational development. "Contingency theory is guided by the general orienting hypothesis that organizations whose internal features best match the demands of their environments will achieve the best adaptation," ("Contingency Theory," n.d.). The more complex and differentiated the institution, the more external demand issues become salient.

Organizational creativity remains "a relatively unexplored area in organizational change and innovation," Woodman, Sawyer & Griffin, 1993, p. 293). However, creativity and innovation are both important aspects of the structural contingency approach to organizational development. Organizational creativity refers to "the creation of a valuable, useful new product, service, idea, procedure, or process by individuals working together in a complex social system," (Woodman, Sawyer & Griffin, 1993, p. 293). The organization itself is a complex social system; so are individual departments and sub-units within the organization.

The structural issues that are in place determine the effectiveness of organizational change and development. Creativity is at the core of the decision-making process. Individual-level creativity impacts the nature of organizational change and development because of the decisions made by managers. Individuals who have input and status in the organization will impart creative decisions, which in turn impact the structure of the organization. Effective change is a creative process: involving visionary leadership and an assessment of external variables.

The external variables that impact decisions can be interpreted in a number of different ways, which is why a diverse workforce can foster organizational creativity. Internal organizational constraints can affect external environments, too. Although the reverse equation is the focus of structural contingency theory, the impact of internal organizational constraints on external environments must also be taken into consideration. Internal organizational constraints range from regulations that guide behavior to organizational culture issues. When the organization has a strong bearing on its environment, the impact becomes measurable.

The ways that internal organizational constraints can affect external environments depend on the nature of the organization. Yet even organizations that are small, new, and fledgling can have major impacts on external environments. The constraints on the organization that impact the environment include human resources issues, formal regulations, and time constraints. External environmental variables, such as supply-chain management or foreign currency exchange, can be impacted by individual organizational performance.

Creativity and innovation are important aspects of the structural contingency theory approach because no organization can thrive without focusing on innovative techniques. New product development, managerial issues, and internal.