The differences between cultural background has a considerable effect on how the manager should plan to run the company. Culture can be defined as the way people think, feel, and act, "the collective programming of the mind distinguishing the members of one group or category of people from another". The "category" can refer to nations, regions within or across nations, ethnicities, religions, occupations, organizations, or the genders (Hofstede, 2005). Culture is not just what people believe but also what they are taught and passed down from generations to generations. It contains the dominant intangible force on the communication behavior (Ryan, 2008).
By developing a strategic plan that incorporates the mission statement, organizations are more likely to be successful and stay focused on what is important (Harrison and Enz,2005). A mission statement for organizations persuades managers to consider the nature and scope of the business. Some of the operating issues issue in organizations today include diversity. More and more companies are including it due to globalization of the economy and the increased diversity of the workforce. According to (Johnston and Clark, 2008) a service concept is not the same as mission statement, the service deals with existing operation while the vision is where the organization wants to be in the future.
The results concluded that every leader is relatively affective but it can be expected that practical and unity leaders could do even better than uncaring leaders. Leadership can make contribution of employee’s behavior towards innovation and it has a significant impact on it. DeJong and Hartog (2007) explored the fact that leaders’ behavior could strongly affect employees’ innovation behavior. They stated that managers’ can motivate employees to think differently, make innovations, generate new ideas, by their day to day activities and behaviors toward employees’ and encourage them to apply those ideas
Leadership Theories. Trait theories presume that most of the bodily, social and personal characteristics which require for the management are inherent (Yasin, 2011, p.32). The Great man theorieshave a huge similarity which anticipate that the capacity for management is innate, that super leaders are born now, not made. Those theories regularly constitute leaders as courageous, organized and destined to rise to management when wanted (Bolden, Marturano, & Dennison,2003).As per Kirkpatick& Locke (1991),though the traits are essential aspect to be a successful leader, aperson does not become a leader by high caliber of the possession of some combination of traits, confirmingto facilitate, no traits were universally associated with effective leadership but many other factors do manipulate. By having the same opinion,Amanchukwu, Stanley &Ololube (2015) stated that as in the behavioural theories, great leaders are made, not born.
It is the way in which a company organizes its assets and personnel’s talents. A perfect combination of these two elements enables a firm to come up with innovative products. Fourthly, processes are the work methods used by an organization to carry out their operations. Product performance are features that differentiate a company’s products from its competitors. Product system are the complementary products offered with a specific good.
Globalization has broken down the geographic boundaries between countries in nowadays. It has enhanced the chance for multinational enterprises (MNEs) to expand their business network all over the world (Ismail, 2010). However, cultural differences are critical for MNEs to face out. Culture is a pattern of beliefs, expectations and values shared by the members (Wong, 2014). It is closely relates to employees’ behavior and impacts on the process of HR cycle.
According to Kanter (as cited in McLean, 2005) organizations with a high innovation orientation need to have integrative structures, emphasis on diversity, multiple external and internal structural linkages, interesting territories, pride and faith in employee’s talent, collaboration, and teamwork. Whereas, according to Kanter, emphasis on control of actions, decisions, information, hierarchy, and lack of support from the top impede innovation. Angle (as cited in McLean, 2005) found intrinsic motivation as an important precursor to innovation than extrinsic motivation. Angle also discussed the importance of the flow of information in the context of innovation in organizations. Telsuk, Farr and Klein (as cited in McLean, 2005) argued that Goal emphasis, mean emphasis, reward orientation, task support and socio-emotional support is the necessary requirement to foster creativity in
It encourage and motivate employees to enhance their skill and knowledge. Also, the theory has advanced from the components of leadership, for example, qualities, situational and value-based authority (Varol, A., & Varol, S, 2012.p.2). Transformational leader take closer look at the work of their follower and rectify their mistake with their support. Unlike transactional leader who punish their employee for mistake. Transformational leadership not only take care of individual growth but it also concern with the development of group work.
It transcends the personal attributes of the leaders and is very much about the quality of relationship between the two parties that are involved in the exchange. This per se should encourage the leader to increase interactions that strengthen organisational collaborative efforts (Hackman & Wageman, 2004). Consequently, the ideal method to explain this subject matter is to conceptualise leadership as a process that focuses on the interactions between leaders and followers (George B. Graen & Uhl-Bien, 1995; Yukl & Mahsud, 2010) and to use the dyadic relationship of a leader-member exchange as the unique fundamental premise and unit of analysis of LMX (Graen & Cashman, 1975). LMX theory proposes that exchanges (e.g. social and work interactions) may happen between managers and their employees.
Humans by nature prefer validation of their views and opinions. However, in order to truly reap the benefits of workplace diversity, it is important to shake things up a bit. This creates an environment where truly meaningful innovation can take root. • Cultivate an Organizational Culture that is Genuinely Open to New Ideas: Even the most diverse team will not be able to inject innovation and creativity in an organisation if they sense that new ideas are not welcome. Companies with hierarchical culture take time to get to the point where subordinates feel comfortable exercising their creative problem-solving skills.