Importance of Creativity and Innovation in Entrepreneurship

Business, innovation and creativity are interlinked terms. Business, any business, cannot exist without creativity. The very notion of starting up your own business, take calculated risks and give your best to succeed, is the definition for entrepreneurial creativity. Innovation is what makes the difference, what gives a company a competitive edge, what turns a small “garage” business to a multinational with offices around the world and with billions of pounds in its corporate accounts. Creativity, realized through innovation is what drives our economy, is what capitalism is built on, is what creates companies like Apple, Microsoft, and Dyson and Goldman-Sacks.

Important Role of Creativity and Innovation in the Entrepreneurial Process

Every sector of business and every sector of life is subject to creativity and innovation.… Read the rest

Crisis in Organizations: Stages and Types

Companies face problems all the time, and solve them one way or another. Sometimes one of these problems is difficult-at least at the time it occurs-and it becomes public interest with the help of the press. This problem is then known as a Crisis, where the company is faced with legal, political, financial and governmental impact on its business. The most serious property of crises is the element of surprise. The worst part in their handling is being unprepared.

Crisis can come from nowhere at any time; natural disasters, human error, and industrial accidents can all cause crisis. Sometimes the cause of a crisis is management itself; managers may insist that they face no crisis, and they fall into the brink of lying and rejection of its existence.… Read the rest

Organisational Values – Definition, Sources, Advantages and Disadvantages

An organisation is an artifact, social entity, has structured activities, nominal boundaries and it is goal directed. Values can be explained in few perspectives according to various sources. In ethics, value represents importance of physical and abstract objects which is ideal accepted by individual or group. It can be also defined as qualities that are considered worthwhile that represent an individual’s highest priorities and deeply held driving forces. Values are often admixture with knowledge, norms and beliefs. Beliefs can be proven right or wrong by one but not values. Beliefs may vary by cohort, time, geographical differences but values are universal, true for anybody at any time, whenever an individual is.… Read the rest

Effect of Motivation on Employee Productivity

Employee motivation has always been a central problem for leaders and managers. Unmotivated employees are likely to spend little or no effort in their jobs, avoid the workplace as much as possible, leave the organization if given the opportunity and produce low quality work. On the other hand, employees who feel motivated to work are likely to be persistent, creative and productive, turning out high quality work that they willingly undertake.

Organizational performance at individual, collegial and organization levels are being jeopardized and subjected to various organizational changes. Specifically, as developed organizations became larger, more multifaceted and more challenging, concerns about organizational performance competencies development and how it could likely to impact culture and direction of the organization have been in the forefronts of business dialogues.… Read the rest

Four Types of Entrepreneurs According to Clarence Danhof

An interesting distinction about types of entrepreneurs is the one proposed by the author Clarence Danhof, which classified entrepreneurs into four groups based on economic development. He based his classification on his study of American agriculture, and he observed that entrepreneurs could be classified depending upon the level of willingness to create innovative ideas; so there can be the following types of entrepreneurs:

  1. Innovative: an aggressive assemblage and synthesis of information and the analysis of results deriving from new combination of factors of production characterize this type of entrepreneurship. These entrepreneurs have the ability to think newer, better and more economical ideas of business organization and management.
Read the rest

Charles Handy’s Model of Organizational Culture

Organizational culture influences the behavior of organisations but as it is intangible it is difficult to define and understand. Organisational culture introduces unspoken rituals and tacit rules and addresses the actions, values, and behaviors, which, in combination, contribute to the overall philosophy and environment of the organisation.  It shapes the way in which employees behave and make decisions and is formed over time as a result of the experiences and values of the organisation and the way in which it reacts to internal and external circumstances.

A key role of organizational culture is to differentiate the organisation from others and provide a sense of identity for its members.… Read the rest