Managing Creative Capital in the Contemporary Organization

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RUNNING HEAD: Managing Creative Capital

Managing Creative Capital in the Contemporary Organization
Nizana Solognier
Saint Leo University
February 2013

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Abstract

The competitive advantage of the successful contemporary organization lies in their ability to build tailor-made capabilities that are part of their inherent identity, making it hard for any one else to duplicate. Therefore it is essential for the organization to determine what the required capabilities are to make a difference in their business environment. This paper illustrates that if a company wants to be better than anyone else at its core business and the value it brings to its customers, they must employ professionals who are more efficient, technically proficient and creative than ever before. Not only is it essential for the organization to find the right creative talent, they should also possess the ability to engage and maintain these “company assets”, or as further referred to in this paper, the creative capital of the organization. It can be concluded that having the financial capital and strong corporate image will take the contemporary organization to a certain level of success, but in order to increase competitive advantage and survive in the dynamic operational environment of the twenty-first century it will take skilled, smart, creative and hardworking employees. The organization has to focus on attracting, engaging and retaining its creative capital. An imperative for the growth of the contemporary organization is the ability to welcome diversity and foster creativity. Managing the contemporary organization is all about putting the right people with the right skills at the right time in the right place (Harvard Business Review OnPoint, 2012).

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Managing Creative Capital in the Contemporary Organization
As humans we are confronted by dramatic changes in our environment, both in our personal lives and in our careers. These changes impact our daily interactions as managers, our strategies as professionals and ultimately our level of success as leaders. The belief of the modern society is that rapid technological advances and the phenomenon of globalization are responsible for a shift from a resource-dependent to a knowledge-based economy (Ivancevich & Konopaske, 2013).

The greatest change in the contemporary organization is not in the technological advances by which we are all mesmerized; it is in the shifts in our norms and values (Florida, 2012). Research has shown that economic growth is occurring in organizations that are more tolerant, diverse and open to creativity. Demographic trends suggest that, over the next decade, retaining top talent is a major competitive imperative for organizations (Keller Johnson, 2012). The successful contemporary organization is working towards a “people climate” to attract diverse human talents which has proven to drive true prosperity. These individuals can be categorized in the creative class, whose economic function is to create new ideas and new creative content. From engineers, to architects, designers and entertainers all come together in a new world where solely knowledge does not suffice to stand out. The creative class has determined where organizations establish themselves, how they recruit personnel and how they plan on keeping their most important asset: the skilled, talented and passionate employee (Florida, 2012).

This paper addresses the rise of the creative class, the impact it has on the prosperity of the contemporary organization and how Human Resources Management as a business function can strategically and effectively manage the organization’s creative capital. Human resources

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professionals, in order to be successful, need to create successful strategies that align an organization’s talent with its human resources practices and competitive requirements. The human...
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