Creativity and Innovation in Workplace: Impact on Performance

This report investigates the impact of creativity and innovation in the workplace on organizational performance. It analyzes the concept of creativity and innovation, its implementation, relevant business models and theories, reasons for employee reluctance, and steps to encourage participation. The report also studies the importance of creativity and innovation and its effect on firm productivity. It uses literature review and analysis, drawing from books, journals, and articles, to justify its points and provides a conclusion, acknowledges research limitations, suggests improvement areas, and highlights key learnings. The study emphasizes the positive impact of creativity and innovation on employee motivation, engagement, and overall organizational success, leading to increased sales, revenue, and product portfolio growth.

Section A

Table of Contents
INTRODUCTION...........................................................................................................................1
Research aim...............................................................................................................................1
Research objectives.....................................................................................................................1
Research purpose........................................................................................................................1
Justification.................................................................................................................................1
Literature review and analysis.........................................................................................................2
Concept of creativity & innovation and its implementation in the workplace...........................2
Business models & theories of creativity and innovation along with its execution process.......2
Reason of not adopting creativity & innovation by the employees in the workplace.................3
Steps to encourage the employees to participate in creativity & innovation in the workplace...3
Importance of creativity & innovation in the workplace & its effect on firm's productivity......4
CONCLUSION................................................................................................................................4
Research limitation......................................................................................................................4
Improvement areas......................................................................................................................4
Learnings.....................................................................................................................................4
References:.......................................................................................................................................6

INTRODUCTION
Research aim
To investigate about the creativity and innovation in the workplace and its impact on
organizational performance.
Research objectives
 To analyse the concept of creativity and innovation and its implementation in the
workplace
 To examine business models and theories of creativity and innovation along with its
execution process
 To determine reason of not adopting creativity and innovation by the employees in the
workplace
 To assess the steps to encourage the employees to participate in creativity and innovation
in the workplace
 To study the importance of creativity and innovation in the workplace and its effect on
organizational productivity
Research purpose
Purpose of the research is based on the discussion based on the literature review and
analysis along with the conclusion part. Creativity and innovation is a research topic chosen on
which the whole discussion is based on such as literature review covers the concept of creativity
& innovation and its implementation in the workplace, business models & theories of creativity
and innovation along with its execution process, reason of not adopting creativity & innovation
by the employees in the workplace, steps to encourage the employees to participate in creativity
& innovation in the workplace and importance of creativity & innovation in the workplace & its
effect on firm's productivity.
Justification
The entire report justifies the creativity and innovation with the help of using various
models and theories of relevant and reliable authors so that it can be well proof evidenced
content which formulates the report. The whole report is developed from different sources from
recent years book, journals and articles which has a proper justification of the research.
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Literature review and analysis
Concept of creativity & innovation and its implementation in the workplace
Creativity can be defined as the formation of something which has a positive value or
worth either it can be in the form of intangible or physical object as well. It is basically the use of
own imagination and ideas in order to create something new and attractive. Innovation can be
defined as the implementation of something unique in a practical form with the help of new ideas
and mind thoughts which basically results in the new products or services and even the
improvement areas in management process or operations as well. Therefore, the basic difference
between the creativity and innovation is such that creativity is to think out of the box in order to
conceive the new ideas whereas innovation is bringing up change for enhancement to give the
value to the creative ideas. It is implemented in the workplace by following some steps such as
gathering the new material and working on those resources while planning along with the
execution of it so that the idea can be shaped and developed based on the feedback and
evaluation done with the creativity and innovation (Nakano and Wechsler, 2018).
Business models & theories of creativity and innovation along with its execution process
Theory of creativity has basically four elements which is required to follow if
organization is executing the creativity in the workplace such as generation of new ideas is the
first element which means until and unless something new ideas doesn't get developed in mind
then creativity can be impossible to execute. The recombination of known into something new is
second element which means that the already existing resources are majorly used for the
creativity so that maximum utilization of resources can be made. Providing valuable solutions to
problems is third element which means that critical thinking and problem solving is the basic
nature of creativity which is needed to be developed. Motivation and emotion is fourth element
which means that without motivation and emotions, creativity cannot be generated as it includes
the willingness to work for the organization. Innovation execution process includes various steps
such as first is the investigation of what is to be innovated as per the change requirement in the
workplace so that accordingly the market research can be conducted. Second is ideate and
evaluate which means that the formulation of ideas are done along with the evaluation of it in the
form of feasibility study. Third is design, build and experiment which means that after the
feasibility study, it is the time to design the idea so that it can be build and experimented in an
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accurate manner. Fourth is test launch in which the testing is done first before the final launch of
the idea. Fifth is full launch which means the presenting of idea and and its execution in front of
the stakeholders of the workplace. Sixth is the feedback system in which the final evaluation is
done which analyses the improvement areas for future considerations and the return of
investment made as well (Reiter-Palmon, Mitchell and Royston, 2019).
Reason of not adopting creativity & innovation by the employees in the workplace
There are several reasons that why employees generally not participate in creativity and
innovation in the workplace such as fear is one of the reason which means that the employees
generally fear about the ideas because of some doubts that the seniors will not accept their mind
set and disrespect the same. Poor leadership and commitment to innovation is an another reason
which means that until and unless the leadership style adopted is not strategic then the innovation
from the side of employees can also be not possible because employees wants the support of
leaders and appreciation of their ideas. Pressure to produce immediate results is also one of the
reason which means that the if company creates urgency in the completion of the task then
employees can never think of doing something creative and innovative due to the urgent
deadlines (Dawson and Andriopoulos, 2021).
Steps to encourage the employees to participate in creativity & innovation in the workplace
There are various measures to encourage the employees so that they can initiate and
participate in creativity and innovation in the workplace are such that by rewarding the
innovative habits which means that it helps in giving the motivation to the employees to work
more for the organization in an innovative manner if rewarding system is applied. Offering
something different which means that apart from rewards there are other things as well which
can encourage employees for innovation such appreciation and recognition. Maintaining work
and life balance helps the employees in having their mind in a stable manner through which the
person can think in an analytical manner for better creativity. Formulate and develop the
collaborative work environment which means that socialization is important and that is why the
company must introduce the brainstorming session for discussions in order to generate ideas in
their employees mind along with the execution confidence in them (Lee, Legood, Hughes and
Knight, 2020).
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Importance of creativity & innovation in the workplace & its effect on firm's productivity
There are several benefits if implementing and executing the creativity and innovation in
the workplace which highly impacts the organizational productivity in a positive manner such as
it helps in reducing the paid input from creative and innovative third parties which saves extra
cost. It supports in the increment of the employees trust if the innovative idea by the employees
is successfully implemented. It assist in the increment of employee motivation because of the
rewards and recognition in return of their hard and smart work. It also increases the employee
engagement and reduce the stress in workplace. It improves the employee collaboration and
teamwork and also enhances the employee self development. Moreover, it also promotes the
work life balance and organizational culture as well. All such things ultimately improves the
company's productivity with sales and revenue generations along with the growth and expansion
of the product portfolio of the firm (Colakoglu, Erhardt, Pougnet-Rozan and Martin-Rios, 2019).
CONCLUSION
Research limitation
Limitation of the research conducted on the creativity and innovation are such that the
resources and the data collection methods used while gathering the information are in limited
number of the research topic and that is why there can be the less relevancy and reliability on
specifically the theories and models of creativity and innovation. Secondary sources are mostly
used for quick results and primary sources are used in the need where evidence and justification
is highly required.
Improvement areas
Such limitations can be improved by having the data collection sources by a well known
authors and of the recent years so that they can be relevant and reliable. Proper research
undertakes primary sources more than the secondary sources in order to get the direct
information about the research topic so that is why these areas are required to get improved.
Learnings
I have learnt a lot of things while conducting the whole project report on research such as
the research skills and communication skills along with the problem solving skills and
presentation skills which is followed by the transferable skills and observational skills. All these
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abilities are needed to be improved so that the further research conducted canm be more better
with good methodologies.
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References:
Books and Journals
Colakoglu, S.S., Erhardt, N., Pougnet-Rozan, S. and Martin-Rios, C., 2019. Reviewing creativity
and innovation research through the strategic HRM lens. In Research in personnel and
human resources management. Emerald Publishing Limited.
Dawson, P. and Andriopoulos, C., 2021. Managing change, creativity and innovation. Sage.
Lee, A., Legood, A., Hughes, D. and Knight, C., 2020. Leadership, creativity and innovation: a
meta-analytic review. European Journal of Work and Organizational Psychology. 29(1).
pp.1-35.
Nakano, T.D.C. and Wechsler, S.M., 2018. Creativity and innovation: Skills for the 21st
Century. Estudos de Psicologia (Campinas), 35, pp.237-246.
Reiter-Palmon, R., Mitchell, K.S. and Royston, R., 2019. Improving creativity in organizational
settings: Applying research on creativity to organizations.
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