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C M S College of Engineering, Namakkal – 637 003
Department of Management Studies
BA9265 Organizational Theory, Design and Development
Unit – I
1. Define organization.
A consciously coordinated social unit composed of two or more people that
functions on a relatively continuous basis to achieve a common goal or set of
goals. Organization is a tool used by people to coordinate their actions to obtain
something they desire or value
2. What are the features of an organization?
The main characteristics or Features of organization are as follows: Outlining the
Objectives, Identifying and Enumerating the Activities, Assigning the Duties, Defining
and Granting the Authority, Creating Authority Relationship, Organizations provide
goods and services, Organizations employ people, Organizations bring together people
and resources to produce products and services, Basically, organizations exist to create
3. List out the need for existence of an organization.
5 major reasons why organizations exist:
 To increase specialization and the division of labor
o Division of labor allows specialization
o Specialization allows individuals to become experts at their job
 To use large-scale technology
o Economies of scale: cost savings that result when goods and services are
produced in large volume
o Economies of scope: cost savings that result when an organization is able
to use underutilized resources more effectively because they can be
shared across several different products or tasks
 To manage the external environment
o External environment consists of the political, social, economic, and
technological factors that affect organizations
o Organizations regularly exchange products and services for needed
o Organizations need to manage their external environment
 To exert power and control
o Organizations structure their members to efficiently produce products and
 To economize on transaction costs
o Transaction costs: the costs associated with negotiating, monitoring, and
governing exchanges between people who must cooperate
4. Bring out the meaning of organizational effectiveness.
OE is the degree to which operative goals have been attained while the concept
of efficiency represents the cost/benefit rate incurred in the pursuit of these goals
5. What is the importance of measuring organizational effectiveness?
 To Maximize value creation = organizational effectiveness
 To find the multiple ways to create value and perform well
 Managers must be careful to develop goals that measure effectiveness on all 3
o Control: external resource approach
o Innovation: internal system approach
o Efficiency: technical approach
6. What is internal systems approach?
The Internal Systems Approach is used to evaluate the organization’s ability to
be innovative and to function in a quick and responsive manner. Goals to set to
measure effectiveness are: cut decision making time, increase rate of product
innovation, increase coordination and motivation of employees, reduce conflict,
and reduce time to market.
7. What is entrepreneurship?
Entrepreneurship is the process by which people recognize opportunities to
satisfy needs and then gather and use resources to meet those needs.
8. What is meant by economies of scale and economies of scope?
Economies of scale refer to the phenomenon where the average costs per unit of
output decrease with the increase in the scale or magnitude of the output being
produced by a firm. Economies of scope is the cost savings that results when an
organization is able to use underutilized resources more effectively because they
can be shared across different products or tasks.
9. Define organization theory.
Organizational theory is the study of how organizations function and how they
affect and are affected by the environment in which they operate
10. What is organizational structure?
Organizational structure is the formal system of task and authority relationships
that control how people to coordinate their actions and use resources to achieve
organizational goals
11. What do you mean by managing diversity?
The management and leadership of a workforce with the goal of encouraging productive
and mutually beneficial interactions among the employees of an organization. Managing
diversity aims at providing employees with backgrounds, needs, and skill sets that may
vary widely with the opportunity to engage with the company and their co-workers in a
manner that produces an optimal work environment and the best possible business
results for the company.
12. What is organizational ethics?
Ethics is moral principles and beliefs about what is right or wrong. Organizational
ethics is the ethics of an organization, and it is how an organization responds to
an internal or external stimulus. Organization ethics includes various guidelines
and principles which decide the way individuals should behave at the workplace.
It also refers to the code of conduct of the individuals working in a particular
13. What is organizational design?
Organizational design is the process by which managers select and manage
aspects of structure and culture so that an organization can control the activities
necessary to achieve its goals
14. What is meant by technical approach?
The Technical Approach is used to evaluate the organization’s ability to convert
skills and resources into goods and services effectively. Goals to set to measure
effectiveness are: increase product quality, reduce number of defect, reduce
production costs, improve customer service, and reduce delivery time to
15. Write a note on external resources approach.
The External Resource Approach is used to evaluate the organization’s ability to
secure, manage and control scarce and valued skills and resources. Goals to set
to measure effectiveness are: lower costs of inputs, obtain high quality inputs,
increase market share, gain support of stake holders.
16. What is organizational environment?
Environment is the set of forces and conditions that operate beyond an
organization’s boundaries but affect its ability to acquire and use resources to
create value

Unit – II
1. What are the components/dimensions of organizational design?
1) Structural Dimensions – describe the internal characteristics of an organization
(Formalization, Specialization, Hierarchy of Authority, Centralization,
Professionalism, Personnel Ratios)
2) Contextual Dimensions – everything that shapes the structure of the
organization (Size, Organizational Technology, Environment, Goals & Strategy,
2. State the importance of organizational design.
The aim of organizational design is to optimize the arrangement for conducting
the affairs of a business entity, Clarify the overall purpose of the
organization – the strategic thrusts that govern what is done and how it
functions, Define, as precisely as possible, the key activities required
to achieve that purpose, Group these activities logically together, to avoid
unnecessary over lap or duplication, Provide for integration of activities and the
achievement of cooperative effort and team work, in pursuit of a common
purpose, Clarify individual roles, accountabilities and authorities, Design jobs
to make the best use of the skills and capacities of the job holders and to
provide them with high levels of motivation, Plan and implement organizational
development activities to ensure that the various process within the organization
operate in a manner that contributes to organizational effectiveness.
3. List the determinants/elements/principles of organizational design.
Organizational Design is a process that involves decisions about the following six
key elements: Work Specialization, Departmentalization, Chain of command,
Span of Control, Centralization and Decentralization, Formalization.
4. Differentiate the concept of organic and mechanic structures.
Mechanistic structures: designed to induce people to behave in predictable,
accountable ways. It is characterized by simple structure, low differentiation, low
integration, centralized decision making and standardization.
Organic structures: structures that promote flexibility, so people initiate change
and can adapt quickly to changing conditions. It is characterized by complex
structure, high differentiation, high integration, decentralized decision making and
mutual adjustment.
5. Differentiate between centralization and decentralization.
Centralized organization: the authority to make important decisions is retained by
top level managers. Top managers are able to coordinate activities to keep the
organization focused on its goals
Decentralized organization: the authority to make important decisions is
delegated to managers at all levels in the hierarchy. It promotes flexibility and
6. What is standardization and mutual adjustment?
Standardization refers to conformity to specific models or examples that are
considered proper in a given situation
Mutual adjustment: the process through which people use their judgment rather
than standardized rules to address problems, guide decision making, and
promote coordination
7. Define socialization.
Socialization is the process by which organizational members learn the norms of
an organization and internalize these unwritten rules of conduct
8. What is differentiation? List its types.
Differentiation is the process by which an organization allocates people and
resources to organizational tasks and establishes the task and authority
relationships that allow the organization to achieve its goals.
o Vertical differentiation: the way an organization designs its hierarchy of
authority and creates reporting relationships to link organizational roles
and subunits
o Horizontal differentiation: the way an organization groups organizational
tasks into roles and roles into subunits (functions and divisions)
9. What is integration?
Integration is the process of coordinating various tasks, functions, and divisions
so that they work together and not at cross-purposes
10. Mention a few integrating mechanisms?
o Hierarchy of authority: dictates “who reports to whom”
o Direct contact: managers meet face to face to coordinate activities
o Liaison roles: a specific manager is given responsibility for coordinating with
managers from other subunits on behalf of their subunits
o Task force: managers meet in temporary committees to coordinate cross-
functional activities
o Teams: a permanent task force used to deal with ongoing strategic or
administrative issues
o Integrating role: a new, full-time role established to improve communications
between divisions
o Integrating department: a new department intended to coordinate the
activities of functions or divisions
11. Define formalization.
Formalization refers to the use of rules and procedures to standardize
operations. "The formalized organizational structure consists of a hierarchical,
top down reporting and decision-making structure. It is recognized by the
existence of explicit, codified standards and regulations". A formalized structure
includes multiple layers of supervision, operational supervisors, top level
directors or department heads and middle managers.
12. What is bureaucracy?
Bureaucracy: a form of organizational structure in which people can be held
accountable for their actions because they are required to act in accordance with
rules and standard operating procedures

Unit – III
1. What do you mean by organizational culture?
the set of shared values and norms that controls organizational members’
interactions with each other and with people outside the organization
2. State the ways to sustain the culture of an organization.
The following approaches are useful Selection Identify and hire individuals
who will fit in with the culture. Actions of Top Management Senior executives
establish and communicate the norms of the organization. Socialization
Organizations need to teach the culture to new employees.
3. What are the components of organizational culture?
The six elements which combine to make an organizational culture which can lead to
better business performance are:
Vision - what the purpose of an organization is
Values - the behaviours and mindsets that aim to support the vision
Practices - how the values of an organization are translated into how it acts
People - those who build and sustain the culture (with a strong link made to recruitment
as a source of cultural strength)
Narrative - the story of the business; the heritage; the legends. A good example of this
would be the HP Garage which is a core part of HP's organizational culture (the "HP
Place - which significantly affect the values and behaviours of people in the organisation
(a great example is the Googleplex)
4. State the types of organizational culture.
Dominant Culture - Expresses the core values that are shared by a majority of
the organization’s members.
Subcultures - Minicultures within an organization, typically defined by department
designations and geographical separation.
Strong – exists when most employees believe in and accept the dominant values
of the organization.
Weak – dominant values are short lived and held mainly by upper management
Adaptive cultures – employees focus on the needs of customer and various
stakeholders and keep pace with change
5. State the relevance of culture and strategy.
A stable culture, one that will systematically support strategy implementation, is one that
fosters a culture of partnership, unity, teamwork and cooperation among employees.
This type of corporate culture will enhance commitment among employees and focus on
productivity within the organization rather than resistance to rules and regulations or
external factors that prohibit success.
Flexible, strong and unified cultures will approach strategy implementation and affect
implementation in a positive manner by aligning goals. Goals can come into alignment
when the organizational culture works to focus on productivity and getting the
organization’s primary mission accomplished.
When culture aligns with strategy implementation, an organization is able to more
efficiently operate in the global marketplace. Culture allows organizational
leaders to work both individually and as teams to develop strategic initiatives
within the organization. These may include building new partnerships and re-
establishing old ones to continue delivering the best possible products and
services to a global market
6. What is meant by role orientation and state its types.
Role orientation is the characteristic way in which newcomers respond to a
o Institutionalized role orientation: results when individuals are taught to
respond to a new context in the same way that existing organizational
members respond to it
o Individualized role orientations: results when individuals are allowed
and encouraged to be creative and to experiment with changing norms
and values

7. Explain the concept of strong and weak culture.

A strong culture exists when employees respond to stimulus because of their
alignment to organizational values. Strong cultures help firms operate like well-
oiled machines cruising along with outstanding execution. Minor tweaking of
existing procedures enhances performance. In thriving, profitable companies,
employees embody the values, visions and strategic priorities of their company.
A weak culture exists when there is little alignment with organizational values and
control must be exercised through extensive policies, procedures and
bureaucracy. Signs of a weak culture include lack of trust, focus on problems,
staff losing confidence in their leaders and systems, and people spending more
time focusing on problems rather than opportunities.
8. Mention few socialization tactics.
o Collective tactics: provide newcomers with common learning
experiences designed to produce a standardized response to a
o Individual tactics: each newcomer’s learning experiences are unique,
and newcomers can learn new, appropriate responses for each
o Formal tactics: segregate newcomers from existing organizational
members during the learning process
o Informal tactics: newcomers learn on the job, as members of a team
o Sequential tactics: provide newcomers with explicit information about
the sequence in which they will perform new activities or occupy new
roles as they advance in an organization
o Random tactics: training is based on the interests and needs of
individual newcomers because there is no set sequence to the
newcomers’ progress in the organization
o Fixed tactics: give newcomers precise knowledge of the timetable
associated with completing each stage in the learning process
o Variable tactics: provide no information about when newcomers will
reach a certain stage in the learning process
o Serial tactics: employed, existing organizational members act as role
models and mentors for newcomers
o Disjunctive processes: require newcomers to figure out and develop
their own way of behaving
o Divestiture: newcomers receive negative social support and existing
organizational members withhold support until newcomers learn the
ropes and conform to established norms
o Investiture: newcomers immediately receive positive social support
from other organizational members and are encouraged to be

9. State the impact of multinational’s culture on Indian organizations.

10. Write notes on values and norms.

 Values: general criteria, standards, or guiding principles that people use to
determine which types of behaviors, events, situations, and outcomes are
desirable or undesirable
o Terminal value: a desired end state or outcome that people seek to
o Instrumental value: a desired mode of behavior
 Norms: standards or styles of behavior that are considered acceptable or typical
for a group of people
Unit – IV
1. What are the individuals’ and group reactions to an organizational change?
Probable individual responses: Works harder than before, Avoids doing new
things, Argues with the boss, Leaves the organization, Goes on strike, Feels
Probable group responses: Willing acceptance, Resistance, Forces acceptance,
2. Define change process.
Organizational change is the process by which organizations move from their
present state to some desired future state to increase their effectiveness
3. According to Kurt Levin, what are the forces for change?
Driving forces: Driving forces are forces that push in a direction that causes
change to occur. Driving forces facilitate change because they push the person
in the desired direction. They cause a shift in the equilibrium towards change.
Restraining forces: Restraining forces are forces that counter driving forces.
Restraining forces hinder change because they push the person in the opposite
direction. Restraining forces cause a shift in the equilibrium which opposes
Equilibrium: Equilibrium is a state of being where driving forces equal restraining
forces and no change occurs. Equilibrium can be raised or lowered by changes
that occur between the driving and restraining forces.
4. Differences between evolutionary and revolutionary change.
Evolutionary change: change that is gradual, incremental, and narrowly focused
Revolutionary change: change that is sudden, drastic, and broadly focused
5. Mention any four reasons for resistance to change.
The Factors in resistance to change are as follows:
Individual level resistance: cognitive biases, uncertainty and insecurity, selective
perception and retention, habit.
Functional level resistance: differences in sub unit orientation, power and conflict
Group level resistance: norms, cohesiveness, groupthink
Organizational level resistance: Structure, culture and strategy
6. What is strategic change?
Strategic change is defined as “changes in the content of a firm's strategy as
defined by its scope, resource deployments, competitive advantages, and
synergy“. In simple form strategic change is a way of changing the objectives and
vision of the company in order to obtain greater success.
7. Define OD.
Organizational development (OD) is a series of techniques and methods that
managers can use in their action research program to increase the adaptability of
their organization
8. According to Kurt Levin, what are the three steps in the process of change?
Unfreeze: This first stage of change involves preparing the organization to accept that
change is necessary, which involves break down the existing status quo before you can
build up a new way of operating.
Change: After the uncertainty created in the unfreeze stage, the change stage is where
people begin to resolve their uncertainty and look for new ways to do things. People
start to believe and act in ways that support the new direction.
Refreeze: When the changes are taking shape and people have embraced the new
ways of working, the organization is ready to refreeze. The outward signs of the
refreeze are a stable organization chart, consistent job descriptions, and so on. The
refreeze stage also needs to help people and the organization internalize or
institutionalize the changes.
9. List out any four OD interventions.
Process OD interventions: Sensitivity training, Team building, Survey feedback,
Behaviour modification, Grid organization development, Career planning, Job
expectation technique, Organizational renewal process.
Structural OD interventions: Job redesign, Work schedule options, Process
consultation, Management by objectives, Collateral organization, Decision
10. Mention the various types of change.
o Anticipatory changes: planned changes based on expected situations.
o Reactive changes: changes made in response to unexpected
o Incremental changes: subsystem adjustments required to keep the
organization on course.
o Strategic changes: altering the overall shape or direction of the
o Evolutionary change: change that is gradual, incremental, and narrowly
o Revolutionary change: change that is sudden, drastic, and broadly
11. Mention the objectives of OD.
o Goal is to improve organizational effectiveness and to help people in
organizations reach their potential and realize their goals and
o Can be used to unfreeze, change, and refreeze attitudes and
12. What are the forces for change?
13. Explain the role of HR professionals in strategic change management.
 Technical Specialist: Technical specialists apply intensive knowledge of
specific technical areas to address and resolve immediate needs of business.
 Advisor: As technical consultants, advisors develop innovative HR solutions to
address customer issues and achieve specific business goals (with an eye on
those of tomorrow).
 Strategic Partner: Strategic business partners identify broad HR issues ahead
of business leaders; they are high-level consultants who develop strategies to
address long-term business needs.
 Leader: The leadership/management role can be — and often is — incorporated
into any of the above roles or stand alone, depending on where in the
organization it is found.
14. Mention the targets for change.
o Targets of change include improving effectiveness at four different levels
o Human resources: Investment in training and development, Socializing
employees into the organizational culture, Changing organizational norms
and values to motivate a multicultural and diverse workforce, Promotion
and reward systems, Changing the composition of the top- management
o Functional resources: Transferring resources to the functions where the
most value can be created in response to environmental change, An
organization can improve the value that its functions create by changing
its structure, culture, and technology
o Technological capabilities: Efforts intended to give an organization the
capacity to change itself in order to exploit market opportunities, Adoption
and use of new technologies, Development of new products/ technologies
and the changing of existing ones, Technological capabilities are a core
o Organizational capabilities: Changing organizational design, Culture and
structure, Changing strategy, Changes that permeate entire organization

Unit – V
1. List out the models of transformation.
 Population ecology model of organizational birth: a theory that seeks to explain
the factors that affect the rate at which new organizations are born (and die) in a
population of existing organizations
 Institutional theory of organizational growth: a theory that studies how
organizations can increase their ability to grow and survive in a competitive
environment by becoming legitimate in the eyes of their stakeholders
Greiner’s Model of Organizational Growth: 5 sequential growth stages (Phase 1: Growth
through Creativity, Phase 2: Growth through Direction, Phase 3: Growth through
Delegation, Phase 4: Growth through Coordination and Monitoring, Phase 5: Growth
through Collaboration)
 Weitzel and Jonsson’s Model of Organizational Decline: 5 stages of decline
(Stage 1: Blinded, Stage 2: Inaction, Stage 3: Faulty action, Stage 4: Crisis,
Stage 5: Dissolution)
2. Write the concept of entrepreneurship.
Entrepreneurship is the capacity and willingness to develop, organize and manage a
business venture along with any of its risks in order to make a profit. The most obvious
example of entrepreneurship is the starting of new businesses. Entrepreneurship is the
process of discovering new ways of combining resources.
3. What is organizational life cycle and list out the stages?
 Organizational life cycle: a predictable sequence of stages of growth and change
 The four principal stages of the organizational life cycle
 Organizational birth: the founding of an organization
 Organizational growth: the life-cycle stage in which organizations develop value-
creation skills and competences that allow them to acquire additional resources
 Organizational decline: the life-cycle stage that an organization enters when it
fails to anticipate, recognize, avoid, neutralize, or adapt to external or internal
pressures that threaten its long-term survival
 Organizational death:
4. What do you mean by transformation?
In an organizational context, transformation is a process of profound and radical change
that orients an organization in a new direction and takes it to an entirely different level of
effectiveness. Unlike 'turnaround' (which implies incremental progress on the same
plane) transformation implies a basic change of character and little or no resemblance
with the past configuration or structure.
5. What is decision making?
 Organizational decision making is the process of responding to a problem by
searching for and selecting a solution or course of action that will create value for
organizational stakeholders
6. List out the assumptions of rational model.
 Underlying assumptions
 Decision makers have all the information they need
 Decision makers can make the best decision
 Decision makers agree about what needs to be done
7. Define Carnegic model.
 Introduces a new set of more realistic assumptions about the decision-making
 Satisficing: limited information searches to identify problems and
alternative solutions
 Bounded rationality: a limited capacity to process information
 Organizational coalitions: solution chosen is a result of compromise,
bargaining, and accommodation between coalitions
8. Define Garbage Car model.
 The garbage can model: a view of decision making that takes the unstructured
process to the extreme
 Decision makers are as likely to start decision making from the solution
side as the problem side
 Create decision-making opportunities that they can solve with ready-made
solutions based on their competencies and skills
 Different coalitions may champion different alternatives
 Decision making becomes a “garbage can” in which problems, solutions,
and people all mix and contend for organizational action
 Selection of an alternative depends on which person’s or group’s definition
of the current situation holds sway
9. Compare and contrast R-strategy and K-strategy?
R Strategy is defined as the first company or companies to enter a new market or
introduce a new product. Advantages include having the first pick of resources,
early brand recognition and early feedback on products or services that can only
be obtained through customers using the product or service in daily life.
Organizations are also usually able to grow more rapidly than others that enter
the marketplace later on because there are so few competitors and usually many
potential customers.
The R Strategy also allows companies to learn through experience earlier on
than future competitors. So they are able to adapt services or modify a product
based on changes in needs that they experience in the marketplace to better suit
customer needs. Negative aspects are risk in introducing a new product or
service in to a market that has not yet been attempted.
K Strategy type companies usually work within a different market and wait till
success and the correct way of doing things is confirmed by those following the R
Strategy. They then use the capital and experience from other pursuits to enter
and attempt to dominate over companies using the R Strategy. Benefits consist
of lower risk, because companies do not enter the marketplace till they are sure it
is profitable and they know how to go about it. Also When Products or services
are created it can be less expensive because they can base plans off of what
already exists in the marketplace. Negative aspects are losing the customer base
acquired early on; also companies entering the marketplace later on have
allowed other companies to have a head start.
10. What is innovation?
 Innovation is a process by which new goods and services or new production and
operating systems are developed
11. Explain isomorphism and give its types.
 Organizational isomorphism is the similarity among organizations in a population
 Coercive isomorphism: Isomorphism is said to be coercive when an organization
adopts certain kinds of values and norms because it is pressured to by other
organizations or by society in general. Coercive isomorphism also results when
organizations are forced to adopt nondiscriminatory equitable hiring practices
because they are mandated by law.
 Mimetic isomorphism: Isomorphism is mimetic when organizations intentionally
imitate and copy one another to increase their legitimacy. It needs to search for a
structure, strategy ,culture, and technology that will increase its chance of
survival if a new organization is especially likely to imitate the structure and
processes of successful organizations when the environment is highly uncertain.
 Normative isomorphism: Isomorphism is normative when organizations come to
resemble each other over time because they indirectly adopt the norms and
values of other organizations in the environment.
12. What are the types of innovation?
 Quantum technological change: a rare, fundamental shift in technology that
revolutionizes products or the way they are produced
 Quantum innovation: new products or operating systems that incorporate
quantum technological improvement
 These can cause major changes in the environment
 Incremental technological change: technological change that represents a
continual refinement of some base technology
 Incremental innovations: products or operating systems that incorporate
refinements of some base technology
13. What is brainstorming?
Brainstorming is the process for generating creative ideas and solutions through
intensive and freewheeling group discussion. Every participant is encouraged to think
aloud and suggest as many ideas as possible, no matter seemingly how outlandish or
bizarre. Analysis, discussion, or criticism of the aired ideas is allowed only when the
brainstorming session is over and evaluation session begins.
14. List out the strategies for organizational learning.
 Strategies for organizational learning
 Cause managers to continuously unlearn old ideas and confront errors in
their beliefs and perceptions
 Listening to dissenters
 Converting events into learning opportunities
 Experimenting
15. What is meant by knowledge management?
 Knowledge management is a type of IT-enabled organizational relationship that
has important implications for both organizational learning and decision making
 Involves sharing and integrating of expertise within and between functions
and divisions through real-time, interconnected IT
16. What is meant by learning organization?
 Learning organization is an organization that purposefully designs and constructs
its structure, culture, and strategy so as to enhance and maximize the potential
for organizational learning to take place
17. What is organizational learning?
 Organizational learning is the process through which managers seek to improve
organization members’ desire and ability to understand and manage the
organization and its environment
18. Explain the stages in Greiner’s Model of Organizational Growth.
Stage 1: Growth through Creativity-In this stage entrepreneur develops the skills and
abilities to create and introduce new products for new market niches. (Crisis of
Stage 2: Growth through Direction-The new top management team takes responsibility
for directing the company's strategy.
(Crisis of Autonomy)
Stage 3: Growth through Delegation-Organizations must delegate authority to lower-
level managers in all functions and divisions and link their increased control over
organizational activity to a reward structure that recognizes their contributions.
(Crisis of Control)
Stage 4: Growth through Coordination-An organization must find the right balance
between centralized control from the top of the organization and decentralized control at
the functional or divisional level.
(Crisis of Red Tape)
Stage 5: Growth through Collaboration-This is a way to solve the crisis of red tape and
push the organization up the growth curve.
19. List out the components of creativity.
There are three components of creativity: Expertise, creative thinking skills, and
motivation. The most creative people are also innovators. They spend countless
hours learning, honing their skills, and thus, acquiring expertise. They also
possess creative thinking skills. Having domain expertise is not enough. Thinking
creatively may involve applying ideas from other disciplines, connecting disparate
notions, and observing the physical world for ideas. However, the most important
element is the motivation to innovate. The motivation can come from outside
(corporate incentives, good grades) or from within oneself (passion, purpose, or
20. Differentiate between creativity and innovation.
The main difference between creativity and innovation is the focus. Creativity is
about unleashing the potential of the mind to conceive new ideas. Those concepts
could manifest themselves in any number of ways, but most often, they become
something we can see, hear, smell, touch, or taste. However, creative ideas can
also be thought experiments within one person’s mind.
Creativity is subjective, making it hard to measure, as our creative friends assert.
Innovation, on the other hand, is completely measurable. Innovation is about
introducing change into relatively stable systems. It’s also concerned with the work
required to make an idea viable. By identifying an unrecognized and unmet need, an
organization can use innovation to apply its creative resources to design an
appropriate solution and reap a return on its investment.
21. What is creativity?
 Creativity means the ability to develop a new object or a new idea. Creativity is
regarded as a vital tool in the invention and discovery of new ideas as well as
objects. According to Torrance, Creative thinking is the process of sensing
difficulties, problems, gaps in information, missing elements, making guesses
and hypotheses about the solution of these deficiencies; evaluating and testing
these hypotheses; possibly revising and restating them; and finally
communicating the result.
22. Write short notes on the benefits of creativity?
To individuals:
Help you make the best use of your talents, aptitudes and abilities
Enhance the enjoyment of your job
Cause you to have more self-confidence
Ultimately increase your income
Cause you to become more self-motivated
Give you a greater sense of control and mastery over your job
To the Organization:
organizational adaptability
highly engaged, motivated, diverse and creative talent delivers competitive
diversity of ideas, capabilities and perspectives
attract, retain, and cultivate the brightest talent in their industry