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Importance of Creativity

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Why is creativity an important aspect of business organization? Explain the major issues facing the manager in encouraging creativity in the organization and supporting creative people in order to improve performance.

Creativity is an important aspect of business organization. This is particularly important as companies are facing continuous changes in the global economy. Change is a continuously phenomenon which happens to the organizations both internally and externally that organizations need to make creative plans and reactions towards predictable or unpredictable challenges.

The organizational environment has been changing rapidly. It is a set of forces and conditions outside the organization’s boundaries that have the …show more content…

He stated that finding innovative solutions requires imagination and creativity, while creativity is a necessary preliminary to innovation. Hence, creativity is important to the performance of organizations. Although creativity generally leads people to think of new products, we should not limit creativity in other areas such as new forms of organization, new markets, new production processes, that is anything new to the present organization structure, culture and functions of the organization. Hence, some types of problems which require creative thinking are listed as follows. But there is limitless application of creative thinking (University of Leicester, 2007, p. 90):

 how to make more effective use of resources including management time,
 how to improve a product’s appeal to customers,
 how to increase staff motivation,
 how to identify new business opportunities,
 how to improve the quality of production output,
 defining the vision/mission/objectives of the organization, and
 looking for a new organization of work flows.

If an organization is able to make effective use of resources which has becoming more scarce and costly, such as the continual rise of oil prices, the organization will be able to create cost advantage over its competitors. Managers at Louis Vuitton, the most profitable luxury brand in the world, have succeeded in

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