Importance of Creativity

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Why is creativity an important aspect of business organization? Explain the major issues facing the manager in encouraging creativity in the organization and supporting creative people in order to improve performance.
Creativity is an important aspect of business organization. This is particularly important as companies are facing continuous changes in the global economy. Change is a continuously phenomenon which happens to the organizations both internally and externally that organizations need to make creative plans and reactions towards predictable or unpredictable challenges.

The organizational environment has been changing rapidly. It is a set of forces and conditions outside the organization’s boundaries that have the potential to affect the way the organizations operates (George and Jones, 2006, p.157). An organization interacts with its immediate task environment and is affected by the general environment. The task environment includes the suppliers, distributors, competitors and customers, while the general environment includes forces that are economic, technological, sociocultural, demographic, political and legal and global. The external environment has been becoming more turbulent as most companies are now competing in the global market where changes are not only common but substantial. Some changes are catastrophic such as economic depression and introduction of new technology. During poor economic times, managers may need to come up with creative strategy to reduce costs such as reducing the number of employees on the one hand, and to increase the motivation of the remaining employees. Managers may also need to identify ways to acquire and utilize resources more efficiently. Technological forces can have profound implications for organizations that it can make established products obsolete. Examples such as typewriters, black-and-white televisions, film cameras. The changes force managers to find new ways to satisfy customer...
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