A Traditional Controlling Management Structure Leads To A Lack Of Innovation

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Traditional organization having centralized decision making processes and control oriented philosophy is likely to have minimum flexibility to adapt the changing environmental conditions and is less supportive for bringing innovation. The command and control management is less likely to foster the innovation culture.

Main Body:

Being innovative is the requirement of the current volatile environment and organizations need to stimulate innovation in its processes, products and management philosophy. It has been highlighted by the researchers that structure of an organization is an important factor in deciding about the pattern of creativity within the organization (Agbor, 2008). Traditional organizations with the bureaucratic structure of management have hindrance for newness and they do not encourage new ideas. Traditional leadership is more significantly engaged in maintaining the control which reduces communication between the employees from different levels of organizational hierarchy, which has been considered as an essential ingredient for initiation of innovation (Anderson, Poto?nik and Zhou, 2014).

Along with this, it has been provided by the researchers that shared and collaborative management philosophy plays significant role in opening the door of creativity and innovation within the organization (?erne, Jakli? and Škerlavaj, 2013). The traditional organizations having strict control over the employees contribute to hinder the level of interaction among the employees and reduce the likeliness of sharing ideas among the employees which can lower the level of innovation within such organizations. Similarly, in traditional organizations, resources are controlled by the upper management and employees are not given empowerment, which can impede innovation and can lower the effectiveness of organization for outperforming the competitors (Capaldo, 2007). Therefore, the traditional organizations and managers are less supportive towards innovation.

Moreover, it has been highlighted by the prior researchers that innovation is fostered in the organization having an open system in which there exists greater tolerance for the risk associated with implementation of innovation (Basile and Faraci, 2015). The organizations in which strict control is maintained by the management there exists lower tolerance for the risk of newness and novelty is not supported by the management with positivity, therefore, the innovation is delayed in such organizational setting. Likewise, in order to transform the organization, contribution from diverse set of individuals in needed, which have diverse levels of skills and knowledge (Cosh and Hughes, 2012). In traditional organizations, having command and control structure, all of the decisions are being taken by the higher management and there is little flexibility of considering other’s opinions which can boost up innovation (Hervás-Oliver and Peris-Ortiz, 2014). The lack of contribution of individuals from all levels, limits the creativity and obstruct the organization for leading towards the path of innovation.

Conclusion:

To conclude, control structure within traditional organizations are less supportive towards creativity and contribute to impede innovation. In order to innovate, organizations need to have organic structure and empowered management philosophy.

References:

Agbor, E., 2008. Creativity and innovation: The leadership dynamics. Journal of Strategic Leadership, 1(1), pp.39-45.

Anderson, N., Poto?nik, K. and Zhou, J., 2014. Innovation and creativity in organizations a state-of-the-science review, prospective commentary, and guiding framework. Journal of Management, 40(5), pp.1297-1333.

Basile, A. and Faraci, R., 2015. Aligning management model and business model in the management innovation perspective: The role of managerial dynamic capabilities in the organizational change. Journal of Organizational Change Management, 28(1), pp.43-58.

Capaldo, A., 2007. Network structure and innovation: The leveraging of a dual network as a distinctive relational capability. Strategic Management Journal, 28(6), pp.585-608.

?erne, M., Jakli?, M. and Škerlavaj, M., 2013. Authentic leadership, creativity, and innovation: A multilevel perspective. Leadership, 9(1), pp.63-85.

Cosh, A., Fu, X. and Hughes, A., 2012. Organisation structure and innovation performance in different environments. Small Business Economics, 39(2), pp.301-317.

Hervás-Oliver, J.L. and Peris-Ortiz, M., 2014. Management Innovation. Antecedents, Complementarities and Performance Consequences. Cham: Springer.