Creativity, Creative Decision Making, and Innovation in Organizations

Models will often improve our decisions, but a decision maker also needs creativity, the ability to produce novel and useful ideas. Novel ideas are different from what’s been done before but which are appropriate for the problem.

Creativity allows the decision maker to fully appraise and understand problems, including seeing problems others can’t see. Although all aspects of OB are complex, that is especially true for creativity. To simplify, Exhibit 6-4 provides a three-stage model of creativity in organizations. The core of the model is creative behavior, which has both causes (predictors of creative behavior) and effects (outcomes of creative behavior).

An illustration depicts a three-stage model of creativity in organizations.

Exhibit 6-4

Three-Stage Model of Creativity in Organizations

Creative Behavior

Creative behavior occurs in four steps, each of which leads to the next:63

  1. Problem formulation. Any act of creativity begins with a problem that the behavior is designed to solve. Thus, problem formulation is the stage of creative behavior in which we identify a problem or opportunity that requires a solution that is as yet unknown.

  2. Information gathering. Given a problem, the solution is rarely directly at hand. We need time to learn more and to process that learning. Thus, information gathering is the stage of creative behavior when knowledge is sought and possible solutions to a problem incubate in an individual’s mind. Information gathering leads us to identifying innovation opportunities.64

  3. Idea generation. Idea generation is the process of creative behavior in which we develop possible solutions to a problem from relevant information and knowledge. Sometimes we do this alone, when tricks like taking a walk65 and doodling66 can jump-start the process. Increasingly, though, idea generation is collaborative.

  4. Idea evaluation. Finally, it’s time to choose from the ideas we have generated. Thus, idea evaluation is the process of creative behavior in which we evaluate potential solutions problems to identify the best one.

Causes of Creative Behavior

Having defined creative behavior, the main stage in the three-stage model, we now look back to the causes of creativity: creative potential and creative environment.

Creative Potential

Is there such a thing as a creative personality? Indeed. While creative genius is rare—whether in science (Stephen Hawking), the performing arts (Martha Graham), or business (Steve Jobs)—most people have some of the characteristics shared by exceptionally creative people. The more of these characteristics we have, the higher our creative potential. Innovation is one of the top organizational goals for leaders, with the facets of:

  1. Intelligence and Creativity Intelligence is related to creativity. Smart people are more creative because they are better at solving complex problems. However, they may also be more creative because they have greater “working memory,” that is, they can recall more information related to the task at hand.67 Along the same lines, recent research in the Netherlands indicates that an individual’s high need for cognition (desire to learn) is correlated with greater creativity.68

  2. Personality and Creativity The Big Five personality trait of openness to experience (see Chapter 5) correlates with creativity, probably because open individuals are less conformist in behavior and more divergent in thinking.69 Other traits of creative people include proactive personality, self-confidence, risk taking, tolerance for ambiguity, and perseverance.70 Hope, self-efficacy (belief in your capabilities), and positive affect also predict an individual’s creativity.71 Furthermore, research in China suggests that people with high core self-evaluations are better able than others to maintain creativity in negative situations.72 Perhaps counterintuitively, some research supports the “mad genius” theory that some people with mental illness are wildly creative partially due to their psychopathology; history certainly provides examples, such as Vincent van Gogh, John Forbes Nash, and others. However, the converse isn’t true—people who are creative may have less psychopathology as a group than the general population.73

  3. Expertise and Creativity Expertise is the foundation for all creative work and thus is the single most important predictor of creative potential. For example, film writer, producer, and director Quentin Tarantino spent his youth working in a video rental store, where he built up an encyclopedic knowledge of movies. The expertise of others is important, too. People with larger social networks have greater exposure to diverse ideas and informal access to the expertise and resources of others.74

  4. Ethics and Creativity Although creativity is linked to many desirable individual characteristics, it is not correlated with ethicality. People who cheat may actually be more creative than those who behave ethically, according to recent research. It may be that dishonesty and creativity can both stem from a rule-breaking desire.75

Creative Environment

Most of us have creative potential we can learn to apply, but as important as creative potential is, by itself it is not enough. We need to be in an environment where creative potential can be realized. Of the many environmental factors, perhaps most important is motivation. If you aren’t motivated to be creative, it is unlikely you will be. Intrinsic motivation, or the desire to work on something because it’s interesting, exciting, satisfying, and challenging (discussed in more detail in Chapter 7), correlates fairly strongly with creative outcomes.76 However, it is also valuable to work in an environment that rewards and recognizes creative work. A study of health care teams found that team creativity translated into innovation only when the climate actively supported innovation.77 The organization should foster the free flow of ideas, including providing fair and constructive judgment. Freedom from excessive rules also encourages creativity; employees should have the freedom to decide what work is to be done and how to do it. One study in China revealed that both structural empowerment (in which the structure of the work unit allows sufficient employee freedom) and psychological empowerment (which lets the individual feel personally enabled to decide) were related to employee creativity.78 However, research in Slovenia found that creating a competitive climate where achievement at any cost is valued will stymie creativity.79

Teams matter to creativity too. As we will learn in Chapter 10, more work today is being done in teams, and many people believe diversity will increase team creativity. Past research has suggested that diverse teams are not more creative. More recently, however, one study of Dutch teams revealed that when team members were explicitly asked to understand and consider the point of view of the other team members (an exercise called perspective taking), diverse teams were more creative than those with less diversity.80 Leadership might make the difference. One study of 68 Chinese teams reported that diversity was positively related to team creativity only when the team’s leader was inspirational and instilled members with confidence.81

Creative Outcomes (Innovation)

The final stage in our model of creativity is the outcome. We can define creative outcomes as ideas or solutions judged to be novel and useful by relevant stakeholders. Novelty itself does not generate a creative outcome if it isn’t useful. Thus, “off-the-wall” solutions are creative only if they help solve the problem. The usefulness of the solution might be self-evident (the iPad), or it might be considered successful by only the stakeholders initially.82

An organization may harvest many creative ideas from its employees and call itself innovative. However, as one expert stated, “Ideas are useless unless used.” Soft skills help translate ideas into results. One researcher found that in a large agribusiness company, creative ideas were most likely to be implemented when an individual was motivated to translate the idea into practice—and had strong networking ability.83 These studies highlight an important fact: creative ideas do not implement themselves; translating them into creative outcomes is a social process that requires utilizing other concepts addressed in this text, including power and politics, leadership, and motivation.

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