SHR044-6, Semester 1: Mobilizing Creativity and Innovation Report

This report examines the critical role of creativity and innovation in organizational success, particularly within the context of Alizz Islamic Bank in Oman. It begins by defining creativity and innovation, differentiating between the two concepts, and exploring various theoretical models that influence these processes at individual, team, and organizational levels. The report delves into social and organizational barriers that can stifle creativity, such as risk aversion and conservative leadership, and the importance of a supportive climate. It analyzes creative leadership and the influence of Human Resource Management (HRM) practices on fostering or hindering innovation. The analysis uses third-party sources to support the theoretical concepts. The report concludes by summarizing key findings and offering recommendations, including the adoption of design thinking principles, to cultivate a more innovative culture within Alizz Islamic Bank. The report aims to provide practical strategies for enhancing creativity and ensuring long-term organizational sustainability.

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Mobilizing Creativity and Innovation

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Table of Contents
Introduction......................................................................................................................................4
Analysis...........................................................................................................................................4
Creativity and Innovation Concepts............................................................................................4
Social and organizational barriers to organizational creativity and innovation..........................5
Climate Forecasting and Innovation............................................................................................5
Creative Leadership.....................................................................................................................6
Role of HRM in promoting or inhibit creativity and innovation.................................................6
Conclusion.......................................................................................................................................7
Recommendation.............................................................................................................................7
Reference List..................................................................................................................................9

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Executive Summary
In the modern era of globalization, for sustaining and competing in the long run, a business
organization should be creative and aim at fostering the culture of creativity and innovation by
tapping various competencies. In the business of volatility and risk, and uncertainty, creativity
and innovation play a crucial function towards the creation of a competitive advantage and
sustainability for organizations in the long run. According to many researchers, a very important
contribution towards the effectiveness of an organization in its long-term survival is made by
creativity and innovation, because the enable them and remaining competitive in a dynamic
environment and achieving a competitive advantage. Hence, it is a strategic choice for every
organization to encourage and foster innovation and creativity within its environment in order to
be successful. The following report focusses on the literature associated with such context and
aims at analyzing the condition of Alizz Islamic Bank in Oman, thereby providing them with
recommendation to improve the same.

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Introduction
Creativity and innovation are vital for the successful performance of any organization
(Anderson, Potočnik and Zhou, 2014). Creativity and innovation in an organization have become
necessary for organizational success, performance and survival in the long run. The concepts of
creativity and innovation are complex and are to be carried out with efficient leadership in order
to maximize the improved ways of working throughout the lifetime of an organization. The aim
of the project is to develop a sustainable organizational culture in Alizz Islamic Bank in Oman
that will promote creativity and innovation across the group and organizational levels (Alizz
Islamic Bank, 2018). The research will emphasize on the necessity of organizational creativity
and innovation and the possible social and organizational barriers which the bank is currently
facing. The report will cover the theories and the creativity and innovation climate in an
organization. Most of the organizations have barriers to creativity and innovation which might
emerge from organizational structure or perceptions of organizational leaderships. This report
will acknowledge the issues faced by Alizz Islamic Bank along with the provision with
recommendations to the same.
Analysis
Creativity and Innovation Concepts
Creativity and innovation are the drivers of an efficient and successful organizational growth and
development. In recent times, organizations are facing immense pressure to innovate and be
creative to achieve competitive advantage in the cut-throat competitive market. Creativity and
innovation may often sound synonymous to each other. However, both are two different
concepts with different definitions. Creativity is the ability to produce new and original ideas
which leads to innovation in the subsequent stages. Whereas innovation refers to creation of new
ideas and effectively implement it. Creativity and innovation can occur at different levels of an
organization starting from an individual to team and to the organization.
There are six theoretical models on creativity and innovation that are affected by various
components that contribute to creativity and innovation. The Componential theory of
Organizational creativity and innovation focuses on the factors that impact individuals and team
activities (Amabile, 2011). The Interactionist Perspective of Organizational Creativity stresses

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upon creativity at each level of organization (Glover, Ronning and Reynolds, 2013). The Model
of Individual Creative Action states where employees can either chose being creative or follow
their daily routine (Richter, Hirst, Van Knippenberg and Baer, 2012). Another theory on
differences in culture and creativity which takes the multi-level approach of a team as well as the
organization. The Four factor theory of Team Climate for Innovation is widely used for team
innovation research. The Ambidexterity Theory focuses on successful management of creation of
new products or ideas and implementation of those ideas. These six frameworks use the
determinants of innovation and creativity differently and propose suggestions in developing the
culture of the organization.
Social and organizational barriers to organizational creativity and innovation
Organizational always try to minimize the risk either by figuring out the solution to the problem
or completely avoiding the risks. Although various strategies are used for risk avoidance but they
often kill the creativity. Companies become risk averse and hence creativity cannot be suggested
to figure out the solution to the barriers. Financial institutions like the Alizz Islamic Bank in
Oman should learn to introduce new ideas without fearing the risks. Conservative Leadership not
only becomes a barrier for the organizational productivity but also leads to failure in creation of
new ideas. The Alizz Islamic Bank should also analyze the risks and assess the impact of those
risks. Inadequate funding can often lead to suppressing of organizational creativity and
innovation. Employees can also face the issue of giving their best at work by their different
thinking. This situation kills the creativity in the employee.
Climate Forecasting and Innovation
The different aspects of the psychological atmosphere within the surrounding environment of an
environment and an organizational team. Often, certain expectations are conveyed by the climate
regarding the acceptance of various attitudes and behavior. Several attempts have been made for
conceptualizing the idea of a creating a creative climate that is climate for the facilitation of
creative outcomes. During the past years, several components of creating a climate of creativity
have been proposed. Instances are psychological safety, individual freedom, positive and
relationship support within members in the team and guidance provided by managers, clarity of
mission, resources availability, creative encouragement, and joy (Denti, 2011). There are several
components of creating a creative climate that are considered to be crucial in the prediction of

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innovative and creative outcomes. In order to identify such components, studies on meta-
analytics on the factors influencing innovation and creativity should be scrutinized (Hunter,
Bedell and Mumford, 2007). These meta-analytic studies is able to detect effects various settings
because the overall results are combined from a huge amount of studies. These components are
challenges, intellectual debate, top management support, positive superior-subordinate relations,
flexibility and risk taking and positive exchange interpersonal skills.
Creative Leadership
Creative leadership is defined as an act or a philosophy which helps in developing and realizing
certain innovative ideas by the means of shared ambition of improvement of the world through
formation of enterprises. Creative leadership is employed by forging and environment which
promotes and encourages mission-driven entrepreneurship and innovative thinking (Day, 2014).
The need for creative leadership cannot be pin down to competitive advantage since it has
different layers. The best kind of creativity is derived out of a person's desire of contributing to
other's lives either by showing people that something which is considered in possible can be
possible or by introducing something new which can improve the quality of the lives of the
people. When the perceptions of people are changed regarding what can be achieved
accomplished, contributions are also made to their humanity in the best possible ways as they
receive hope for the future (Hennessey and Watson, 2016).
Role of HRM in promoting or inhibit creativity and innovation
There are various ways by whose means human resource can help in can promote and inhibit
creativity and innovation at workplace. Firstly, people should be rewarded for innovation by the
means of engaging them into more work or via autonomy. The motivation to creative minds is
not always done with money, because for them the real reward is more work. The creative minds
should be allowed space and flexibility for creation. A structured or formalized review process of
idea innovation should be put in place. Adequate internal training should be provided for
creativity and innovation practices. The levels of innovation and creativity vary from person to
person. The employees should be provided with tools, time, settings and training for addressing
specific business challenges in innovative ways. A HRM can develop a formal program for
finding and promoting innovative/creative products or ideas (Cameron and Quinn, 2011). A
potential area of improvement can be the financial rewards provided by organizations for

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innovation. Innovation should be tied with individual bonuses or salary increase. The HRM
ensures that innovation is included in the leadership development plans of an organization as a
major competency.
Conclusion
The aim of the report was to develop a sustainable organizational culture of Alizz Islamic Bank
in Oman to promote creativity and innovation at all levels of the organization. The above
literature helps to understand the concepts with regards to organizational creativity and
innovation developed by different scholars are crucial to organizational sustainability in the
market for long-run. This can be only achieved by the organization by developing a structure and
culture of creativity and innovation. The Alizza Islamic bank can develop by use of effective
channels of communication and increased level of patience which is absolutely necessary for its
survival. The collection of creative minds should be acknowledged otherwise it will be difficult
to keep them motivated and engaged in their work. This might need the bank to enhance
leadership qualities of its managers and maintain harmony within the groups or teams. The bank
should have brainstorming sessions and implementation of reward system is also advisable.
Creativity and innovation are always a positive of any organization which determines its success
and prosperity in the coming years. The objective of the report will be achieved by creating
strategies and contingency plans for the bank. It is always important for financial institutions to
consider the potential risks which is determined on the basis of the organizational structure and
its assets. A list of priority resources is to be created at the time of financial distress. Delegating
the responsibility, and having alternative sources of credit is also necessary. Backing up of data
and reviewing the changes will help transform over time.
Recommendation
It often happens that, the human factor is not taken into consideration by most banks and
financial institution while the development of the products and services. However, these days
financial institutions are rapidly taking into account the human factor by the usage of proven
strategies of business management so fostering a greater level of innovation and creativity within
the organizations. This is known as design thinking. It is one of the best methods of bringing
about creativity and innovation within the organizational structure of financial institutions. It is

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about the application of principles of design to the way people interact with the external world.
It's a repetitive procedure where problems are redefined in an attempt of identification of
alternative solutions. The Alizz Islamic Bank can adopt this method to bring creativity in its
systems. It revolves around deep interest in the development of an understanding of the target
consumers for whom the products and services are designed. It helps in organization in
observing in developing empathy with the customers. This is the opposite of how banks actually
work and design their products and services. The financial institutions focus on developing
products for meeting their own operational efficiencies and internal processes, instead of
focusing on the experience of the consumers. The problems of the customers are often not
addressed and solved by the traditional methods used by banks. In theory, design thinking helps
in solving such problems of the customers. Hence, design thinking should be used by an Alizz
Islamic Bank for establishing and developing creativity and innovation within the organization
climate.

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Reference List
Alizz Islamic Bank, 2018. Overview. [pdf] Available at: <> [Accessed 20 December 2018]
Amabile, T., 2011. Componential theory of creativity. 2nd ed. Boston, Massachusetts: Harvard
Business School.
Cameron, K.S. and Quinn, R.E., 2011. Diagnosing and changing organizational culture: Based
on the competing values framework. 4th ed. New Jersey, United States of America: John Wiley &
Sons.
Day, D.V. ed., 2014. The Oxford handbook of leadership and organizations. 3rd ed. Oxford,
United Kingdom: Oxford Library of Psychology.
Denti, L., 2011. Leadership and Innovation: How and when do Leaders Influence Innovation in
R & D Teams (Doctoral dissertation, Department of Psychology, University of Gothenburg).
Glover, J.A., Ronning, R.R. and Reynolds, C.R. eds., 2013. Handbook of creativity. Berlin,
Germany: Springer Science & Business Media.
Hennessey, B.A. and Watson, M.W., 2016. The defragmentation of creativity: Future directions
with an emphasis on educational applications. In Multidisciplinary contributions to the science
of creative thinking (pp. 21-31). Springer, Singapore.
Hunter, S.T., Bedell, K.E. and Mumford, M.D., 2007. Climate for creativity: A quantitative
review. Creativity research journal, 19(1), pp.69-90.
Richter, A.W., Hirst, G., Van Knippenberg, D. and Baer, M., 2012. Creative self-efficacy and
individual creativity in team contexts: Cross-level interactions with team informational
resources. Journal of Applied Psychology, 97(6), p.1282.