Discuss how you would advance the development of an organizational learning and a creative climate culture for the organization
Innovation in Organizational System
A look at innovation in organizational system of P&N Bank in Australia. It has its headquarters in Perth and has had success due to innovation. There are various systems that actually determine organizational success, innovation, effectiveness and critical success factors. They are both qualitative and quantitative (Amabile & Pratt, 2016). The qualitative success of an organization and standards that affect the qualitative organizational success are subjective they include
Standards that are usually qualitative
- Qualified personnel- one of the most significant contributions to the success of a company is its personnel. A qualified personnel is required for both growth and development of an organization. It is also used in innovation and planning of the company’s strategy.
- Team players- team players is what promotes the companies functionalities. Every department has some synergy with the other through team work. Team work makes innovation easier and efficiency is gained in the process.
- Appropriate dress- makes someone look attractive. Scantily dressed people may cause a distraction in an organization.
- Satisfaction- innovation in the company causes satisfaction and increases the ability for the company to progress in all spheres.
- Expectations- this is a qualitative factor that enables the organization to set targets and standards in innovation and planning. It also helps in business strategy.
These are factors that can be quantified.
- Physical or productivity- the number of customers in the organization will increase after innovation in operational systems. Also the production and services of the company will also increase due to productivity.
- Budget or monetary- ROI- return on investment is usually higher when a company starts to innovate. The Break-even point (BEP) is also achieved higher if the company is highly involved in innovation due to operational efficiency. Labor costs will drop or decrease as innovation causes more productivity and reduced the people being hired. Revenues and profits will increase while the material cost will reduce(Anderson & Zhou, 2014).
- Appropriate assessment tools associated benchmarks to analyze performance of all critical process within the supply chain of one organization subsystem
- Marketing- in P&N Bank ,in marketing department, the company must up its game to stay ahead of the competition. Innovation in marketing strategies is the best way to stay ahead and improve innovation and continuous organization improvements.
- HR- while hiring, selection should be meritocracy based. A good HR department recognizes talent and give it a chance to develop and make the organization better.
- Finance- in the field of finance, innovation and continuous improvement is needed. It is very easy to give random numbers in finance and accounting but the good thing is that it the finance department should be managed by a professional finance person(Baumgartner, 2014).
- Operations- P&N Bank has an effective operations department leads to increased production for the company. Operation systems should be streamlined such that it requires less of human handling and more of system operated conditions.
- Procurement- this is a department that is crucial in a company. Supply chain operations of a company is under the procurement department for P&N Bank. It should be such that all the procurement operations are all streamlined within the innovated system.
- Determine the changing macro market environment that affect innovation
The study of innovations in the personnel management system of the organization, the development of solutions aimed at increasing the effectiveness of the implementation of new aspects of the activities of employees in the organization, are of great scientific and practical interest and are extremely relevant. The goal - based on the research of theoretical aspects of introducing innovations in personnel activities, lay the foundation for developing recommendations for improving the personnel management system of P&N Bank, for organizing the innovation activity of its personnel. The object of research is the personnel management system of the organization. The subject of the research are innovations in the personnel management system of the organization. In carrying out the research, the following methods were used: traditional literature analysis, structural-functional analysis, theoretical modeling, and methods of scientific classification, systematization, logical and comparative analysis (Bieraugel, 2015). The theoretical significance of the research is that the conclusions of the work contribute to the development of the theoretical and methodological framework for introducing innovations in the personnel management system, in such areas of science development as economics and sociology of labor, innovative management.
Innovations in the personnel management system can be implemented in two forms - with the gradual improvement of certain aspects of the work of personnel and in the form of a radical, spasmodic improvement of the entire personnel management system as a whole.
The urgency of the problem of improving the personnel management system is not disputed either by science or practice, since the final results of the corporation's activities depend on the clear development of an effective system of personnel management.
- Technological or e-business opportunity and cost associated benefits
Innovations and technology increases the opportunity for e-business in P&N Bank. Step-by-step innovations can be implemented within the corporate system of working with innovations. Radical innovations should be implemented on the basis of a process approach using methods such as benchmarking, process reengineering, process cost analysis, and the creation of new processes. Innovation has proved to be a cost lowering initiative. The best way to reduce cost of a company is to improve its systems through innovation. It is necessary that e-business should be improved through the e-learning websites of an organization (Boer & Gertsen, 2017).
- Based on particular environmental factors outline the need for implementation of an innovation system within the organization
Based on environmental factors, there are many different points of view regarding the objective prerequisites of the processes under consideration. In particular, it is supposed to start from two hypotheses. According to the first, the innovation process is based on a technological push, and in terms of the second - the pressure of market demand for P&N Bank.
Introducing Innovation in Personnel Management
The hypothesis of a technological impulse is based on the idea of ??an autonomous development of science, which does not attach importance to the feedback between the economic environment and the direction of technological progress. Close to this hypothesis is the hypothesis of the economic effect, which combines the inventive activity and the frequency of subsequent innovations. Indeed, the development of scientific thought is relatively independent of practice and is expressed in the form of a change in scientific paradigms (Chenhall & Moers, 2015). A retrospective analysis of the development of science allows us to state that four scientific revolutions have taken place in the world, and four technical structures have consistently changed in the technical basis of the industrialized countries. Each scientific revolution is characterized by a pronounced tendency to increase the number of discoveries in comparison with the previous one. New scientific discoveries are made in the process of cognition of the surrounding world, that is, the establishment of previously unknown objectively existing laws, properties, phenomena of material, social and spiritual reality, which bring about fundamental changes in the level of cognition for P&N Bank. In the course of applied research, discoveries are embodied in the means of solving practical problems, including inventions. As an initial moment of innovation, the invention is due to the origin of various factors: economic, political, social, technical, scientific, psychological, etc.
Organizational culture is particularly fundamental in development of the organizational learning and creative ability. The wealth and depth of the knowledge accumulated in innovations significantly influence the possibilities of their realization. In business practice, the gradual accumulation of experience and knowledge helps to understand the depth of the problem, to assess its complexity, to concentrate resources in bottlenecks, which predetermines the significance of the second hypothesis - the hypothesis of market demand (demand factor) for the implementation of innovation activity. Priority here is the existence of certain needs of economic agents associated with the trends of economic development of the national and world economy.
There is a close relationship between the economic situation, the number and scale of the practical tasks facing the society, the urgency of their solution. The formation of a public need for innovative activity is mediated by the economic law of value, you-needing economic agents to compare the amount of resources used or the cumulative costs of innovation with the results of their development in material production. Another criterion for the implementation of innovation is the social effect that can be obtained in each particular economic system. The correlation of results and costs that predetermines the implementation of innovation activity can develop in the following situations:
- Discuss how you would advance the development of an organizational learning and a creative culture for the organization
For creativity of P&N Bank organizational culture, there must be a demand and supply chain in the market. Demand and supply are equal: the source of profit is the reduction of production costs, and innovation is not used by the enterprise to maximize profits. Demand exceeds supply, which leads to the involvement of reserves and innovations in production, the growth of additional costs, which are covered by income from the increase in production and sales.
Relationship between Economic Conditions and Innovation
Demand below the proposal: prices and funds for innovative activities are reduced, obsolete (inefficient) factors of production are withdrawn from circulation through their conservation (utilization). The achieved level of profit is retained only by reducing costs. Consequently, innovations are actively involved in production only when the increase in demand requires a sharp increase in output, that is, economic conditions are the priority for the implementation of innovation activity (Drucker, 2014). . A retrospective analysis confirms that the economic effect is most often derived by an economic entity, not necessarily creating innovation, but applying it. Not only technology, but science itself is highly dependent on practice.
This hypothesis links the growth of the innovative capabilities of the economy with the requirements of the market, with the emergence of new industries and the reconstruction of old ones. Technologists believes that there are four sources of ideas on which innovation is based: market needs, science capabilities, company needs and policies, imitation of existing companies.
The hypothesis of market demand does not fully explain the fluctuations in inventive activity, the uncertainty of the results of innovative work. At one time wrote about the need to combine the proposal (the availability of appropriate scientific and technical discoveries and inventions) with the possibility of its practical application (Goffin & Mitchell, 2016). .
This introduces new requirements to the mechanism of organization and regulation of the innovation process in the enterprise and influences changes in strategic priorities in the structure and content of the innovation development process itself. In this regard, the management of P&N Bank innovative development, which is possible due to the well-established mechanism of organization and regulation of the innovation process, acquires particular relevance for the effective operation of the enterprise.
- Risk analysis and cost benefit analysis for organizational process and recommendations
The risk brought in by the organization should be reduced by innovation in systems. Risk management strategies and techniques applied by the company should apply to manage risks.
Transfer of risk- should be done in order to protect the company systems from potential frauds and sabotage (Hajir & Masa’deh, 2015).
The output of the risk response planning is the Risk Register (updates) for P&N Bank.
The methods for responding to risks developed and approved during the planning of the response are included in the Risk Register.
Project management plan (updates). The project management plan is updated by adding risk response operations to the overall project change management process.
Contractual agreements concerning risks. Contractual agreements are drawn up in order to legally determine the responsibility of each party in case of occurrence of each individual risk. These can be contracts of insurance or provision of services (Svahn & Lindgren, 2017).
Risk monitoring and management is the process of tracking identified risks, monitoring residual risks, identifying new risks, implementing risk response plans and assessing their effectiveness throughout the life cycle of the project.
Risk monitoring is the last step in the risk management process. It is important for the effective implementation of the actions planned in the previous stages. Monitoring is an observational activity envisaged by the previously prepared risk management plan. Monitoring ensures the timely implementation of preventive measures and mitigation plans and is performed using indicators - triggers (also known as "risk signs", "risk symptoms"), indicating the possibility that the events of the risk occurred or will occur in the near future (Fitzgerald & Stol, 2017).. The risk symptoms are determined at the stage of risk identification and are recorded in the Project Management Plan in the section "Risk Management Plan in P&N Bank.
- Flow chard diagram on innovation
Importance of Rewards for Entrepreneurial Behavior
At present, the need to create a modern innovative mechanism that allows rationally organize innovative activities in the enterprise and improve the efficiency of its operation is due to the following factors:
- Development of initial implementation plan for innovation in organizations systems.
Firstly, the growing importance of innovation both for improving the efficiency of industrial enterprises and for the development of the country's economy as a whole;
Second, the need for significant changes in the organization and regulation of financial and economic activities of enterprises, due to the urgency of the transition to an innovative direction of development in P&N Bank;
Third, the new requirements for the organization and regulation of innovation processes in an industrial enterprise, the most important of which are the interrelationship and development of different spheres of innovation through the creation of an integrated management system (Hon & Lui, 2016).
- k) Key areas of risk in implementation of your innovation
Increasing the effectiveness of the research-development-production-consumption cycle, which includes such components as the organization of innovation, the development and implementation of innovations, financing and stimulating innovation, technological transfer, intellectual property, the economic component, contributes to the growth of innovation potential, economic conditions for promoting an innovative product, effective implementation of innovative needs industrial enterprise.
This mechanism allows you to take into account all possible set of constituent elements, but allows the possibility of the appearance of new components within the named components. The components are activated when it will be necessary to develop and implement the innovation or to ensure the effective implementation of innovative processes (Nicholls, 2018).
Investigating the conditions for the formation of the innovative mechanism of the enterprise, it should be borne in mind that in each group of factors, the same parameters, depending on their values, can have both positive and negative effects. Therefore, it becomes necessary to systematize factors and establish their significance(Palacios-Marqués, & Soto-Acosta, 2015). At the same time, it is necessary to note a number of general constraints for the development of rationalization and inventive activities, which directly affects the increase in the value of the enterprise. These include:
- l) Implementation of innovation failures
Low financial incentives for innovators to develop high-performance ideas, since the remuneration for an invention or rationalization proposal is practically independent of the magnitude of the economic effect of implementing the invention in production;
Resistance of middle and lower managers to the introduction of innovations, since the introduction of an innovation proposal involves a certain risk and a change in technology, usually requires financial investments and assumes the responsibility of individuals for performance.
- m) Memo to stakeholders
For P&N Bank It is necessary to determine the parameters for assessing the innovative potential of industrial enterprises, taking into account the economic, scientific, technical, social and environmental aspects in making effective management decisions in the innovation field and providing a system of indicators, combined into four interrelated blocks, assessing the following components: the organization of innovation, development and implementation innovation, financing and stimulation of the innovation process, technological transfer, intellectual property (Peurach, 2016).. The innovative policy of the enterprise involves the formation of a portfolio of innovative projects and the selection of the most effective option from a variety of alternatives. Therefore, the implementation of innovation policy.
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