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Organizational Climate for Innovation and Creativity

Authors:
  • Shiv Nadar University Chennai
  • ssn school of management

Abstract and Figures

The organizational climate indicates the behavior of employees in an organization based on the accepted values, beliefs and assumptions. An organization’s innovativeness mainly comes from its employees. Hence for achieving creative results, the appointment of creative people along is not sufficient; organizations should create an environment that fosters and brings out innovations and to be innovative, an organization should be structured in a way that facilitates rather than inhibits innovative practices. Based on the Literature Review, the objective of the study is to understand the impact of the following factors which has an influence on fostering a innovative climate: Characteristics of work; Support of Management and Co-workers; Emotional Safety; Resource availability/accessibility; Diversity of the work force; Dynamism and Risk-taking propensity; Systems, Procedures and Processes in the Organization. The study also focuses on the impact of demographic characteristics of employees on their perception towards innovative climate. The study had been conducted in a Leather Research Institute located at Chennai, India. It is a research organization focussed on achieving excellence in research and innovation for the leather industry through R & D efforts. The findings indicate that there is innovative climate in the organization and the organization can further nurture the climate to become highly innovative. Work characteristics and diversity are found to be the significant contributors to innovative climate. The findings also suggest that there is significant association between the organizational innovative climate and the demographic variables likequalification and designation.
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BVIMSR's
JOURNAL OF MANAGEMENT RESEARCH
ISSN: 0976 - 4739
Impact factor- SJIF (2014)= 3.438 I2OR-PIF(2017)=4.847
VOLUME -10 NUMBER - 2 October, 2018
Bharati Vidyapeeth’s Institute of Management Studies & Research
Sector 8, CBD-Belapur, Navi Mumbai-400614
022-27572433/ 27562582, email: editor_bjmr@bvimsr.com
www.bvimsr.com
In This Issue:
Leadership Style, Employee Empowerment and Organizational Performance in Nigerian Banking
Industry Dr. Olubayo Thomas Olajide and Olajide Idown Okunbanjo
Workplace Diversity and Its Impact on Performance of Employees Dr. R Sundari
A Study on Comparative Analysis of Change and Development of Personality Traits of Law and
Engineering Students Dr. Vaneeta Agrawal and Arshita Agrawal
Organizational Climate for Innovation and Creativity Dr. T. Thiruvenkadam and Dr.K. Sampath Kumar
Measuring and Validating the Scale of Entrepreneurial Orientation: A Confirmatory Factor Analysis
Subhasis Das and Mahendra Kumar Sahu
E-Tailing Post Demonetization: An Empirical Study using Theory of Planned Behavior (TPB)
Ruchi V Dixit, Dr. Gyan Prakash and Deepti Verma
A Study on Human Resource Practices on Employee Work Engagement in Hospitality Industry
Bhavna Raina and Dr. Anjali Kalse
Understanding Personal Branding Perception through Intentions
Rutu Gujarathi and Dr. Shubhada Kulkarni
Service Quality: A Case of Private Non- Life Insurance Services Ms. Pragati Tomar and Dr. Monica Sainty
Impact of Occupational Stress on Personal Life: A Study on Private Sector Life Insurance Companies in
Telangana State Mr. S. Venkata Siva Kumar, Dr. A.V.V.Siva Prasad and Dr.P.Vijaya Kumar
BVIMSR’s Journal of Management Research
CONTENTS
Title and Author Page
Leadership Style, Employee Empowerment and Organizational Performance in
Nigerian Banking Industry
Dr. Olubayo Thomas Olajide and Olajide Idown Okunbanjo
135
Workplace Diversity and Its Impact on Performance of Employees Dr. R Sundari
A Study on Comparative Analysis of Change and Development of Personality Traits
of Law and Engineering Students Dr. Vaneeta Agrawal and Arshita Agrawal .
Organizational Climate for Innovation and Creativity
Dr. T. Thiruvenkadam and Dr.K. S ampath Kumar
Measuring and Validating the Scale of Entrepreneurial Orientation: A Confirmatory
Factor Analysis Subhasis Das and Mahendra Kumar Sahu
E-Tailing Post Demonetization: An Empirical Study using Theory of Planned
Behavior (TPB) Ruchi V Dixit, Dr. Gyan Prakash and Deepti Verma
A Study on Human Resource Practices on Employee Work Engagement in
Hospitality Industry Bhavna Raina and Dr. Anjali Kalse
Understanding Personal Branding Perception through Intentions
Rutu Gujarathi and Dr. Shubhada Kulkarni
Service Quality: A Case of Private Non- Life Insurance Services
Ms. Pragati Tomar and Dr. Monica Sainty
Impact of Occupational Stress on Personal Life: A Study on Private Sector Life
Insurance Companies in Telangana State
Mr. S. Venkata Siva Kum ar, Dr. A.V.V.Siva Prasad and Dr.P.Vijaya Kumar
145
157
165
174
180
194
207
218
225
Vol. 10 Issue - 2 : October : 2018
Introduction: innovation. Innovativeness is the cultureof accepting
new ideas and conversion of such ideas into innovations.
The organizational climate indicates the behavior of Thus innovative climate is the observable symptom of a
employees in an organization based on the accepted pro-innovative culture and has an affirmative impact on
values, beliefs and assumptions. Creativity is developing innovation. An organization’s innovativeness mainly
new and useful ideas. Creativity is the fruit of the comes from its employees. Hence,employing people
culmination of the expertise of individuals, their abilities with creativity alone is not sufficient; organizations
to think creatively and the motivation to achieve should create an environment that fosters and brings out
creativity. The interaction between individuals innovations and to be innovative, an organization should
expertise, creative-thinking abilities and motivation are be structured in a way that facilitates rather than inhibits
the factors that make creativity occur. Coming out with a innovative practices.
new product, improving upon an existing product or
process or business system is innovation. Creative idea is
the first step for innovations, which leads to the Review of Literature
achievement of new programs, tangible products and Many studies have been undertaken on creativity,
intangible services successfully i.e., all innovations innovation, organizational culture and climate. The
begin with ideas which are creative. Innovative climate author selected few studies which are very much relevant
refers to the organizational climate that fosters
ORGANIZATIONAL CLIMATE FOR INNOVATION AND CREATIVITY
Dr. T. Thiruvenkadam,
Associate Professor,
SSN School of Management,SSN College of Engineering,
Kalavakkam, OMR, Chennai – 603 110.
E-Mail: thiruvenkadamt@ssn.edu.in, thirumba@yahoo.com
Dr. K. Sampath Kumar
Professor,
SSN School of Management,SSN College of Engineering,
Kalavakkam, OMR, Chennai – 603 110.
E-Mail: sampathkumark@ssn.edu.in
Abstract: The organizational climate indicates the behavior of employees in an organization based on the accepted values,
beliefs and assumptions. An organization’s innovativeness mainly comes from its employees. Hence for achieving creative
results, the appointment of creative people along is not sufficient; organizations should create an environment that fosters
and brings out innovations and to be innovative, an organization should be structured in a way that facilitates rather than
inhibits innovative practices. Based on the Literature Review, the objective of the study is to understand the impact of the
following factors which has an influence on fostering a innovative climate: Characteristics of work; Support of
Management and Co-workers; Emotional Safety; Resource availability/accessibility; Diversity of the work force;
Dynamism and Risk-taking propensity; Systems, Procedures and Processes in the Organization. The study also focuses on
the impact of demographic characteristics of employees on their perception towards innovative climate. The study had
been conducted in a Leather Research Institute located at Chennai, India. It is a research organization focussed on
achieving excellence in research and innovation for the leather industry through R & D efforts. The findings indicate that
there is innovative climate in the organization and the organization can further nurture the climate to become highly
innovative. Work characteristics and diversity are found to be the significant contributors to innovative climate. The
findings also suggest that there is significant association between the organizational innovative climate and the
demographic variables likequalification and designation.
Key words: Climate, innovation, creativity, innovative culture
BVIMSR’s Journal of Management Research 165 Vol. 10 Issue - 2 : October : 2018
to the topic of study. Greenberg & Baron (2003) provide, measure the same. Not only its application, but also its
in the context of business environment, the basic details validation in organizational settings is also described.
about people employed in an organization and their Isaken&Ekvall (2010) emphasize that part of managing
behavior. According to the author, the steps in the for innovation is creating a conducive climate that helps
creative process are: (i) Prepare to be creative, (ii) Allow people to share their ideas and further convert them into
ideas to incubate, (iii) Document insight and (iv) Verify innovations. The article also suggests measures to
ideas. The major components of creativity include skills overcome unproductive tensions and conflicts in
in the job domain, creative thinking skills and self organizations which hinder innovative climate. Axelsson
motivation. The motivation needed to innovate, the and Sardari (2011) developed a model, called the
various resources required for innovation and the skills Category-Element-Attribute Model comprising three
and capabilities to manage innovation are the key basic layers, for developing an innovative climate in
requirements for innovation. According to Henry (2002), organizations.
the essentials of a creative/innovative organization
include - an open climate, increasing participation of all Objectives and Scope of the Study
staff, flexible organizational structure (flatter,
decentralized), freedom to employees, integrated Based on the above Literature Review, the aim of the
procedures (multidisciplinary teams), ensuring spirit of study is to formulate anddetermine the extent to which
collaboration, attending to social needs of the group and the following factors influence the innovative climate:
protecting the team from unnecessary obstacles. Characteristics of work; Support of management and Co-
According to Tushman& O’Reilly (1997), the hallmark worker; Emotional Safety; Resource availability /
of innovation is its unpredictability, appetite for taking accessibility; Diversity; Risk taking capabilities and
risk and non-conventional solutions and other such Dynamism; Systems and Processes followed in the
factors that are found to be difficult to manage by formal Organization. The study also focuses on the impact of
control systems. The main ingredients that stimulate demographic characteristics of employees on their
creativity and innovation are support for risk-taking, perception towards innovative climate. The study had
freedom to fail, liberal rewards, dedicated involvement, been conducted in a Leather Research Institute located in
tolerance to dissent, attentive listening, being positive Chennai. It is an organization which is involved in
role models and resources. Organizational vision, research and development and with a complete focus on
strategy and objectives are the foundation for managing achieving excellence in research and innovation in the
innovation and change. Oke, et.al.(2012) study in depth leather industry.The scope of this study was restricted to
the inter play of the strategies for executing innovation the employees working as Scientists (Group IV) and
and the adoption of suitable human resources policies people working as Technical officers and Technical
aimed at fostering innovation and its impact on Assistants (Group III) employees of the organization.
innovation, performance and Growth in revenue, which This is because of their higher level of participation in all
leads to a competitive advantage to be sustained over a of the institute’s innovation pursuits as part of various
long period of time. Isaken&Isaken (2010) in their R&D activities compared to other employees.
technical report provide insights into how an innovative
climate relates to empowerment for bottom level Research Methodology
decision-making. Sinha (2008) describes organizational
climate as how all or majority of the employees in an The research design followed for the study is Descriptive
organization perceive. It refers to the impact created by in nature. The total number of employees, at the Leather
the organization on the feelings and emotions of its Research Institute, Chennaiis 370 (Group IV: Scientists-
members. It is descriptive in nature. For e.g., 115, Group III: Technical Officers and Technical
organizational structure, lines of authority, roles and Assistants- 68, Group II: Technicians- 50, Group I:
positions contribute to culture whereas organizational Support Staff- 30). The research frame contains the
members’ perception of these elements turn them into employees in Group III and IV and hence, the population
aspects of climate. Ekvall, G. (1996) in his article is 183. Out of this population, the sample chosen for the
highlights the need to measure the organizational study is 127. The sampling was carried out in two stages.
structure and innovative climate and an instrument to
BVIMSR’s Journal of Management Research
Organizational Climate for Innovation and Creativity
166 Vol. 10 Issue - 2 : October : 2018
BVIMSR’s Journal of Management Research 167
In the first stage Purposive Sampling was used to pick the Diversity; Risk taking capabilities and Dynamism;
Group IV and Group III employees for the study since Systems and Processes followed in the Organization.
they are most involved in innovation pursuits in the
organization. In the second stage of sampling, the Demographic Profile of Respondents:
researchers had adopted convenience sampling technique
to choose the samples from among the two groups. Among the 127respondentssurveyed
The data collection tool used here is a questionnaire. A 5- ü12.6% belonged to below 35 age group, 33.1%
point Likert scale was employed. The questionnaire belonged to 36-45 age group, 33.9% belonged to
was structured based on the eight dimensions measuring 46-55 age group and 20.5% belonged to above 55
the innovative climate in an organization. The items category.
measuring each dimension were framed based on the ü78% are male and 22% are female
attributes pertaining to that dimension which were ü22% of them have professional degrees, 28.3%
extracted from secondary sources. The questionnaire was have non-professional degrees and 49.6% have
divided into eight sections based on eight dimensions and doctoral degrees
consisted of 53 items totally. The researcher used the
following tests for analyzing the data: Percentage ü69.3% belonged to Group IV (Scientists) and
Analysis, Correlation, Friedman test, Chi-square test, 30.7% belong to Group III (Technical Officers and
One Sample KS test for Normality and Cronbach's Alpha Technical Assistants)
test for testing the reliability of the questionnaire. ü27.6% have 10 years of experience, 30.7% have 10-
Responses from a sample of 30 respondents underwent 20 years of experience and 41.7% have above 20
the Pilot study to check the Reliability of the Scale. The years of experience.
Cronbach’s Alpha value which is an indicator of
Reliability of the scale was determined using Statistical
Package for Social Sciences (SPSS) software. Results and Discussion:
One-Sample Kolmogorov-Smirnov Test
Innovative Climate Attributes Scale AIM: To test if the data pertaining to different
dimensions of innovative climate follow normal
The research had adopted the Creative Climate distribution.
Questionnaire (CCQ) developed byEkvall’s (1996). This
scale is a most widely used tool for measuring innovative Ho: The data follows normal distribution
climate. There are eight attributes such as: Characteristics H1: The data does not follow normal distribution
of work; Support of management and Co-worker;
Emotional Safety; Resource availability/accessibility;
Table 1 One sample Kolmogorov-Smirnov Test for normality of data
WC
MS
CWS
ES
R D DR OP
N
127
127
127
127
127 127 127 127
Normal
Parameters
(a,b)
Mean
32.97
28.43
14.91
26.91
21.65 11.70 27.98 31.90
Std.
Deviation
4.222
5.862
3.041
4.578
3.892 2.001 5.411 6.487
Most
Extreme
Differences
Absolute .091
.080
.123
.099
.087 .149 .082 .113
Positive
.055
.048
.123
.091
.069
.149
.079 .098
Negative
-.091 -.080 -.121 -.099 -.087 -.111 -.082 -.113
Kolmogorov-Smirnov
Z
1.030
.898
1.389 1.113 .979 1.682 .923 1.269
Asymp. Sig. (2-tailed) .239 .395 .042 .168 .293 .007 .362 .080
Organizational Climate for Innovation and Creativity
Vol. 10 Issue - 2 : October : 2018
BVIMSR’s Journal of Management Research 168
WC-Work Characteristics; MS-Management Support;
CWS-Co-Worker Support; ES-Emotional Safety; R- Table 2 shows that the significance level (0.000) is
Resources; D-Diversity; DR-Dynamism & Risk Taking; lesser than 0.05. Hence the null hypothesis is rejected and
OP-Organizational Systems & Processes. the alternate hypothesis is accepted at 95% confidence
The table 1 shows that the significance level is greater level. This indicates that there is a significant difference
than 0.05 for the factors work characteristics, in mean ranks of different factors contributing to
management support, emotional safety, resources, innovative climate. From table 3 it is inferred that the
dynamism and organizational systems and processes. So work characteristics contribute much to the innovative
it is inferred that the data pertaining to these dimensions climate in the organization.
follow normal distribution. Also the significance level is
lesser than 0.05 for the factors – co-worker support and Table No. 4Overall Innovative Climate Scores of
diversity. Hence it is inferred that the data pertaining to Respondents
these two dimensions follow non-normal distribution.
Friedman Test
AIM: To test the significant difference between mean
ranks of different factors contributing to innovative
climate.
Ho:There is no significant difference in mean ranks of
different factors contributing to innovative climate.
H1: There is a significant difference in mean ranks of
different factors contributing to innovative climate.
Table 2 Friedman Test- Significance Overall Innovative Climate Score
213-265:Highly Innovative
160-212: Innovative
107-159: Moderately Innovative
53-106: Stagnated
Source: Primary Data
Source: Primary Data From Table 4, it is inferred that 10.2% of the respondents
Table 3 Friedman Test- Ranks perceive the organization as moderately innovative, 66%
Mean Rank of the respondents perceive the organization as
Work Characteristics 6.46 innovative, 23.6% of respondents perceive as highly
innovative and none of them perceive the organization as
Management Support 3.54 stagnated. Hence we infer that the organizational climate
Co-Worker Support 4.74 is innovative.
Emotional Safety 5.26 Designation and Innovative climate
Resources 3.84 AIM: To test if there is a significant association between
Diversity 5.41 designation and innovative climate.
Dynamism and Risk Taking 3.20 Ho: There is no significant association between
designation and innovative climate.
Organizational Systems and Processes 3.56 H1: There is a significant association between
Source: Primary Data designation and innovative climate
N 127
Chi-Square 205.440
df 7
Asymp. Sig. .000
Innovative Climate
Frequency
Percent
Stagnated 0 0
Moderately Innovative 13 10.2
Innovative 84
66.1
Highly Innovative 30
23.6
Total 127
100.0
Organizational Climate for Innovation and Creativity
Vol. 10 Issue - 2 : October : 2018
BVIMSR’s Journal of Management Research
INFERENCE: Age group and Innovative Climate
Table 6 shows that the significance level (0.008) is lesser AIM: To test if there is a significant association between
than 0.05. Hence the null hypothesis is rejected and the age group of respondents and innovative climate.
alternate hypothesis is accepted at 95% confidence level. Ho: There is no significant association between age
Therefore there is asignificant association between group and innovative climate.
designation and their perception towards innovative H1: There is a significant association between age group
climate. and innovative climate.
169
Table 5 Crosstab- Designation and Level of Innovative Climate
Table No. 6Chi-square Test for association between Designation and Innovative Climate
Table 7Crosstab- Age group andLevel of Innovative Climate
Organizational Climate for Innovation and Creativity
Vol. 10 Issue - 2 : October : 2018
BVIMSR’s Journal of Management Research 170
Table 8 Chi-square Test for association between Age group and Innovative Climate
INFERENCE: Gender and Innovative Climate
Table 8 shows that the significance level (0.358) is AIM: To test if there is a significant association between
greater than 0.05. Hence the null hypothesis is accepted gender and innovative climate
and the alternate hypothesis is rejected at 95% Ho: There is no significant association between gender
confidence level. Therefore there is no significant and innovative climate.
association between age group and their perception H1: There is a significant association between gender
towards innovative climate and innovative climate.
Table 9Crosstab- Gender andLevel of Innovative Climate
Table 10 Chi-square Test for association between Gender and Innovative Climate
INFERENCE: Experience and Innovative Climate
Table 10 shows that the significance level (0.070) is AIM: To test if there is a significant association between
greater than 0.05. Hence the null hypothesis is accepted experience and innovative climate.
and the alternate hypothesis is rejected at 95% Ho: There is no significant association between
confidence level. Therefore there is no significant experience and innovative climate.
association between gender and perception towards H1: There is a significant association between
innovative climate experience and innovative climate.
Organizational Climate for Innovation and Creativity
Vol. 10 Issue - 2 : October : 2018
BVIMSR’s Journal of Management Research 171
Table 11Crosstab- Experience (in years) andLevel of Innovative Climate
Table 12 Chi-square Test for association between Experience and Innovative Climate
INFERENCE: Educational Qualification and Innovative Climate
Table 12 shows that the significance level (0.303) is AIM: To test if there is a significant association between
greater than 0.05. Hence the null hypothesis is accepted educational qualification and innovative climate
and the alternate hypothesis is rejected at 95% Ho: There is no significant association educational
confidence level. Therefore there is no significant qualification and innovative climate.
association between experience and perception towards H1: There is a significant association between
innovative climate educational qualification and innovative climate.
Organizational Climate for Innovation and Creativity
Vol. 10 Issue - 2 : October : 2018
BVIMSR’s Journal of Management Research 172
Table 14 Chi-square Test for association between Educational Qualification and Innovative Climate
INFERENCE: confidence level. Therefore there is a significant
association between the educational qualification and
Table 14 shows that the significance level (0.033) is perception towards innovative climate.
lesser than 0.05. Hence the null hypothesis is rejected
and the alternate hypothesis is accepted at 95%
Table No. 15 Correlation between the innovative climate and all the eight dimensions of innovative climate
From Table 15 it is inferred that there is a strong positive Findings and Conclusion
correlation between the innovative climate and all the The findings indicate that there is a strong positive
eight dimensions of innovative climate- work correlation between innovative climate and all the eight
characteristics (0.690), management support (0.887), co- dimensions used in the instrument to measure innovative
worker support(0.800), emotional safety(0.834), climate. Work characteristics and diversity are found to
resources (0.788), diversity(0.726), dynamism and risk- be the most significant contributors to the innovative
taking(0.827) and organizational systems and processes climate. Friedman Test- Ranks validate the above results.
(0.893). Thus the increase in degree of each of these According to Friedman Test-Ranks, the dimensions of
dimensions can enhance the innovative climate of the work characteristics, diversity and emotional safety
organization to highly innovative climate.
Organizational Climate for Innovation and Creativity
Vol. 10 Issue - 2 : October : 2018
BVIMSR’s Journal of Management Research 173
occupy the first three ranks and hence these are the first human side of work. Retrieved from
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Vol. 10 Issue - 2 : October : 2018
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... In addition, in his research, it was also revealed that individual creativity mediates the relationship between organizational climate and individual innovative behaviour. While according to Thiagarajan &;Kumar, (2018) The innovative climate in an organization can maintain and increase the level of innovation. H1 : The organizational climate of the school has a positive effect on teacher creativity. ...
... In addition, in his research, it was also revealed that individual creativity mediates the relationship between organizational climate and individual innovative behaviour. While according to Thiagarajan &;Kumar, (2018) The innovative climate in an organization can maintain and increase the level of innovation. H1 : The organizational climate of the school has a positive effect on teacher creativity. ...
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