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Management Concepts & Organisational Behaviour - Creativity And Innovation

Fostering Entrepreneurial spirit - Creativity And Innovation

   Posted On :  19.05.2018 11:33 pm

Fostering entrepreneurial spirit in organizations is no easy task. For that, organizations must be managed differently so that they become fertile grounds for new product ideas.

Fostering Entrepreneurial spirit
 
Fostering entrepreneurial spirit in organizations is no easy task. For that, organizations must be managed differently so that they become fertile grounds for new product ideas. Creation of such a congenial climate depends on the ability of the top management to redefine the following organizational parameters.
 

Structure

 
If necessary, modifications have to be effected in the structure of the organization so as to minimize the rigidities and complexities. All the bureaucratic tendencies have to be avoided. Structures with too many levels reduce the organization’s ability for timely response. Hence the trend now is towards simple and flat structures.
 
Following are some of the structural modifications which gained wider acceptance in the recent times to foster entrepreneurship in the existing business.
 
--   wider span of control with fewer levels. This facilitates faster decision making because new ideas and proposals need not be scrutinized or pass through too many levels;
 
--   Creation of autonomous units to try new product ideas. This is often described as creating ‘companies within companies’;
 
--   Job descriptions are made less detailed unlike in the traditional structures;

--   Controls are loose rather than tight; for, too many controls stifle entrepreneurial spirit of the people.

 

Strategy

 
In a dynamic environment, companies that lack foresight are easily prone to become former leaders for the simple reason that they fail to adopt to retain their leadership. Business history is fully replete with such leader-to-loser stories. It has also been amply proved in several studies that the leading cause for the company’s failure is the top management’s obsession with current operations giving credence to the philosophy that ‘existing products drive out new products rather than the other way round’. The direction of the strategy in which the organizational resources are deployed should centre on innovation. The choice of the right strategy dictates the fortunes of the company.

 

Tags : Management Concepts & Organisational Behaviour - Creativity And Innovation
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