Theory vs. Creativity in Design Leaders have a task of moving the organization forward in a fashion that is supported by all stakeholders. After allocating resources to bolster organizational success, leaders must primarily assess and accept the risks related innovation. Innovation includes accepting new management theories to replace the outdated philosophies widely incorporated into an organization's procedures and policies over time (American Evaluation Association, 2004). This study aims to identify, discuss, and recommend strategies to create tension between existing management theories and management's ability to create new business paradigms. The study will also identify and discuss stakeholder attitudes towards innovation, ethics, and inclusion as primary drivers of a successful organization. While focusing on innovation and ethics, the study will suggest ways in which organizational leadership can prepare a company for the future and current environmental changes.

How leaders integrate innovative principles while adhering to industry and market mandates

Integrity and honesty: Organizations must always reconsider the use of theories to keep up with the realities of the business environment. The management must be prepared for change and handle changes appropriately in the rapidly evolving world. Some of the relevant theories include situational, relationship, participative and transactional. Organizations have varied goals relating to the return of investment in innovation. For a company to thrive in any field, the organizational structure must be organic and not mechanistic. Philosophers in theory vs. design include Peter Drucker, Frank and Lillian Gilbreth and Frederick Taylor. According to Taylor, organizations can scientifically analyze employees' tasks in order to discover appropriate procedures for adoption (O'Reilly & Pfeffer, 2010). Frank and Lillian Gilbreth humanistic approach to management issues employed the principles of management. Drucker offers smart solutions and argues that people must rethink theories and stay abreast with the realities of the environment. Organizational leaders are required to integrate transactional and transformative leadership styles. Integrating the best components of transformational and transactional leadership styles is recommendable.

When they invest in innovations, organizations have the goal of generating a satisfactory return on investment. This varies from one organization to another. However, they apply to all organizations in all sectors. For a company to thrive in an industry, the organic structure must encourage the interaction required. Management theories and philosophers like Taylor's scientific management Scott and Davis illustrate that with the industrial revolution reaching the maturation stage, engineers must promote the rationalization of practice via standardization of screws, and fittings and subsequently the human element in production (Weiss & Legrand, 2011). Taylor and his subjects insist that it is possible for an organization to conduct a scientific analysis of tasks done by individual employees. He cites that this will reveal the procedures that can reduce the maximum output under the minimum input of resources and energies. Efforts can be focused on analyzing individual tasks. However, attempts to rationalize labor at the individual worker level may create changes in the overall work arrangement.

Lillian and Frank Gilbreth's engineering theory contributed to the development of motion study, work simplification, and fatigue study. Their humanistic approach to management issues employed the principles of psychology and experimental findings to enhance industrial procedures. Their accomplishment in improving employee productivity while minimizing fatigue led to higher profits. Their great contribution to the industrial era was the reduction of fatigue and wasted motion in the office and factory (International Association of Drilling Contractors, 2012). While Frank admired Taylor for his management theories, his wife Lillian did not like Taylor because she believed that solutions to management issues must use psychological principles and be considerate of humans. The application of motion study techniques to the injured experts became a concern in making the disabled human component most efficient.

The past motion study technique used physically healthy employees and led to a reduction in the number of essential motions for bricklayers, hence increased productivity. Previously, its application had effectively reduced employee fatigue. Frank and Lillian contend that motion study was not limited and incorporated workers into the workplace. Lillian's humanistic approach to the management issue and accomplishments included reducing fatigue and increasing productivity for employees (Sarlak, 2010). Peter Drucker's organizational theory offers smart solutions to issues confronting various organizations, which are easy to implement. The theorist is extremely popular for being an expert in management in creating sound organizational decisions. Drucker thought that companies have crises because things are not done necessarily wrong but in a fruitless manner.

Systematic inquiry: From his perspective, management must ask and solicit questions seriously to be successful. Handling an organization...

For organizations to thrive and prosper, a change leader must be capable of listing opportunities and the organization's performance. Employees should be treated with respect and leaders must show interest in employees' personal achievement. Drucker has coined the term knowledge employee, as they are talented individuals and innovators of new business concepts. He argues that knowledge is the main source of wealth. Enterprises must rethink philosophies and deal with the realities of the environment. This requires them to be flexible and be willing to change for the better. Behaviors and practices that previously worked may not work later: enterprises are required to monitor the realities of the environment (Burton, 2008). Further, Drucker opines that theories only last for a while. His organizational theory can be used to solve a range of organizational problems. Management must handle change and being effective depends on the leaders of an organization.
Respect for all people: The current business world is rapidly changing. It is necessary for organizations to be ready for change and be cognizant of internal and external people. As an expert in management, Drucker argues that assumptions tend to shape an organization's behavior. These assumptions are about behavior, customers, values, competitors, and markets. The organization must know its business theory, create a preventative care, and rethink about its theories. This suggests that top management is responsible for planning, directing, strategizing, valuing, and setting principles, the organizational structure, and its relationship with people (Malone, Laubacher & Scott, 2013). At the organizational level, the most important task for the leaders is balancing the conflicting demands of doing business, people's needs and the need for long-term and short-term results.

Transactional management theories referred to as transactional theories focus on the role of the organization, supervision, and group performance. These theories determine leadership on a reward and punishment system. Businesses tend to use managerial theories. If workers are successful, each of them must be rewarded. However, if workers do not achieve what is expected of them, they must be punished or reprimanded. Situational theorists recommend that leaders must choose the best course of action on situational variable basis. Good decisions are made when different leadership styles are adopted. Participative leadership theorists propose that the notion of leadership styles is one, which considers the input of others. These leaders encourage contributions and participation from members and assist team members feel more committed and relevant to the decision making process. The leader has the autonomy to encourage input from others. Relationship theorists are also referred to as transformational theorists. They concentrate on the connections between followers and leaders. Leaders in this category have a tendency of motivating and inspiring members by helping them realize the importance of the highest good of the job. These leaders want employees to fulfill their potential and have high moral and ethical standards.

How an organization can operate and thrive in a paradigm that does not match the current model

In the context of approaches to creative tensions between existing management theories and the ability to design new business models, this section recommends that leaders must combine transactional and transformational leadership styles. Leadership styles are either transformational or transactional. Transactional leadership style is applicable in established enterprises and emphasizes on short-term goals, the need to solve issues as they arise, and the formal structures and maintaining the status quo. These leaders are viewed as conservative bureaucrats who must abide by the organization's rules. Transformational leadership concentrates on long-term objectives, encourages trust among employees, supports empowerment, and concentrates on continually changing services, processes, products and the innovation process. These leaders continuously challenge established authority, questions rules, and controls, motivate members via personal loyalty, and seize every opportunity. An effective leader must combine the best components of transformational and transactional leadership styles by building systems and structure to reinforce his charismatic abilities.

Competence: Managing the innovation process demands components of transformational and transactional leadership styles at different stages of the life of a service or product. The basic requirement is the transformation and charismatic leader to create the environment and desire for innovation. However, transactional leadership is essential to handle operational issues within the innovation process. This argument shifts to how leaders integrate innovative principles while adhering to the mandates of the industry and market. The prime goal required by enterprises as a return on investment for innovation varies from one organization to another (DiMaggio, 2011). The goals include the creation of new markets, improved quality, expanding product range, improving production processes, reducing labor costs, reducing materials, reducing energy consumption,…