Creative Management and Development


Edited by: Jane Henry

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  • The Open University Business School

    The Open University Business School offers a three-tier ladder of opportunity for managers at different stages of their careers: the Professional Certificate in Management; the Professional Diploma in Management; and the Masters Programme.

    This Reader is a prescribed Course Reader for the Creativity Innovation and Change Module (B822) which is part of the Masters in Business Administration at The Open University Business School.

    Further information on Open University Business School courses and qualifications may be obtained from The Open University Business School, PO Box 197, Walton Hall, Milton Keynes, MK7 6BJ, United Kingdom; tel OU Business School Information Line: +44 (0) 8700 100311.

    Alternatively, much useful course information can be obtained from the Open University Business School's website at


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    About the Authors

    Professor Teresa M Amabile, Harvard Business School, Boston, US

    Professor Chris Argyris, Organizational Behaviour, Harvard University, Cambridge, Massachusetts, US

    Professor Guy Claxton, Graduate School of Education, University of Bristol, Bristol, UK

    Professor Mihaly Csikszentmihalyi, Drucker School of Management, Claremont Graduate University, Claremont, California, US

    Professor Goran Ekvall, FA Institute, Stockholm, Sweden

    Daniel Goleman, Co-chairman of the Consortium for Research on Emotional Intelligence in Organizations, Graduate School of Applied and Professional Psychology, Rutgers University, Piscataway New Jersey, US

    Professor Sarah Hampson, Psychology Department, University of Surrey, UK

    Professor Charles Handy, London Business School, UK

    Jeffrey R Hanson, President, J R Hanson Company, New York, US

    Paul Hawken, Smith and Hawken and Datafusion, US

    Dr Jane Henry, Head of Centre for Human Resources and Change Management, Open University Business School, Milton Keynes, UK

    Professor Michael Kirton, Occupational Research Centre, Hertfordshire, UK

    Professor David Krackhardt, Carnegie Mellon University, US

    Amory Lovins, Research Director, Rocky Mountain Institute, Colorado, US

    L Hunter Lovins, CEO, Rocky Mountain Institute, Colorado, US

    Professor Ikujiro Nonaka, Hitotsubashi University, Japan

    Professor Richard Pascale, Templeton College, Oxford University, UK

    Claudia Sacramento, Work and Organisational Psychology, Aston University, UK

    Ricardo Semler, CEO Semco, Brazil

    Dr Vandana Shiva, Director, Research Foundation for Science, Technology and Ecology, Delhi, India

    Professor John Sparrow, Business School, University of Central England, UK

    Professor Hirotaka Takeuchi, Hitotsubashi University, Japan

    Professor Michael West, Work and Organisational Psychology, Aston University, UK


    Grateful acknowledgement is made to the following sources for permission to reproduce material in this book.

    A Creativity

    1 A Systems Perspective on Creativity

    Edited excerpt from M Csikszentmihalyi, ‘A systems perspective on creativity’ pp. 313–335 in M. Sternberg (Ed.) Handbook of Creativity, 1999. © Cambridge University Press 1999.

    Updated Figure 1.1 © Mihaly Csikszentmihalyi

    2 How to Kill Creativity

    Reprinted by permission of Harvard Business Review. Excerpt from “How to kill creativity” by T Amabile, September 1998. © 1998 by the Harvard Business School Publishing Corporation; all rights reserved.


    3 Flourishing in Teams: Developing Creativity and Innovation

    M. West and C. Sacramento, Commissioned Chapter. Business School, Aston University © The Open University.

    4 Beyond Cleverness: How to be Smart Without Thinking

    G. Claxton, Commissioned Chapter. Graduate School Education, University of Bristol, Bristol. © The Open University.

    5 Organizational Knowledge Creation

    I. Nonaka and H. Takeuchi, pp. 56–94 from Chapter 3 in The Knowledge Creating Company. © 1995 by Oxford University Press, Inc. By permission of Oxford University Press Inc.

    6 Beyond Sense-making: Emotion, Imagery and Creativity

    J. Sparrow, Commissioned Chapter. Business School, University of Central England, Birmingham. © The Open University.


    7 Personality: State of the Art

    S Hampson, ‘Personality: State of the art’. This article originally appeared in The Psychologist 12(6), June 1999. The Psychologist is published by the British Psychological Society: see

    8 Adaptors and Innovators

    Reprinted from Long Range Planning 1984, 17(2), M Kirton, ‘Adaptors and innovators’. pp. 137–43. © 1984, with permission of Elsevier.

    9 What Makes a Leader

    Reprinted by permission of Harvard Business Review. Excerpt from ‘What makes a leader’ by D Goleman, November 1998. © 1998 by the Harvard Business School Publishing Corporation; all rights reserved.


    10 Organizational Conditions and Levels of Creativity

    Edited excerpt from G Ekvall, ‘Conditions and levels of creativity’ from Creativity and Innovation Management 6(4) 1997, pp. 195–205. Reproduced by permission of Blackwell Publishing.

    11 The Citizen Company

    C Handy, ‘The Citizen Company’ from The Hungry Spirit by Charles Handy, published by Hutchinson. Reprinted by permission of The Random House Group Ltd.

    © 1998 by Charles Handy. Used by permission of Broadway Books, a division of Random House, Inc.

    12 Why My Former Employees Still Work For Me

    Reprinted by permission of Harvard Business Review. Excerpt from ‘Why my former employees still work for me’ by R Semler, January 1994. © 1994 by the Harvard Business School Publishing Corporation; all rights reserved.

    13 Creativity, Development and Well-being

    J. Henry, Commissioned Chapter. Open University Business School, Milton Keynes. © The Open University.


    14 Empowerment: The Emperor's New Clothes

    Reprinted by permission of Harvard Business Review. Excerpt from ‘Empowerment: The emperor's new clothers’ by C Argyris, May 1998. © 1998 by the Harvard Business School Publishing Corporation; all rights reserved.

    15 Informal Networks: The Company Behind the Chart

    Reprinted by permission of Harvard Business Review. Excerpt from ‘Informal networks: The company behind the chart’ by D Krackhardt and JR Hanson, 1993.

    © 1993 by the Harvard Business School Publishing Corporation; all rights reserved.


    16 Monocultures of the Mind

    V Shiva, ‘Monocultures of the Mind’ edited excerpt from Chapter 1 of Monocultures of the Mind, London: Zed Books, 1993. Reproduced with permission of the publisher.

    17 A Road Map for Natural Capitalism

    Reprinted by permission of Harvard Business Review. Excerpt from ‘Natural capitalism’ by A Lovins, H Lovins, P Hawken, May 1999. © 1999 by the Harvard Business School Publishing Corporation; all rights reserved.

    18 Surfing the Edge of Chaos

    Richard T Pascale, ‘Surfing the Edge of Chaos’, MIT Sloan Management Review, Spring 1999, 40(3). © 1999 by Massachusetts Institute of Technology. All rights reserved. Distributed by Tribune Media Services.


    The rapid rate of technological development has led to an increase in the pace of change, and globalization and deregulation have led to increased competition. To survive, organizations need to be continuously creative and innovative, especially in high wage economies. This has led to talk of the entrepreneurial society and increased interest in ways of developing and sustaining creativity and innovation at work. We now have a better idea of how creativity emerges in organizations and a more developed idea of the principles that lay behind creative management than when the first edition of this book was published fifteen years ago.

    This edition is divided into six parts – creativity, cognition, style, culture, development and perception. The contributors include many of the most prominent researchers in the fields of creative management and development.

    The first part of the book, on creativity and cognition, charts the shift to a more systemic view of creativity and the greater attention now paid to the role of tacit knowledge. The middle sections, on style and culture, elaborate on the way in which cognitive style and personality type affect how we set about problem-solving, decisionmaking and change, and the different kinds of culture organizations need to encourage creativity. The last part discusses ways of developing in a sustainable manner, that take account of our own and the planet's well-being.

    In terms of creativity (Section A) two key changes in our understanding are the increased emphasis now placed on the role of intrinsic motivation and the importance of the social field or community of practice in which the endeavour arises. Csikszentmihalyi has addressed how creativity emerges from a social field. Amabile has drawn attention to the key role of intrinsic motivation in creative endeavour. West and Sacramento draw together research on the impact of team tasks, group composition, organizational context and team processes on team innovation.

    Our understanding of human cognition (Section B) has been revolutionized in the last twenty years, in particular our understanding about the importance of unconscious information processing and the limitations of rational thought. Claxton summarizes recent findings on the key role of implicit learning, intuition and tacit knowledge in creativity, thinking and know-how. Nonaka and Takeuchi illustrate the important role of tacit knowledge in innovation and knowledge creation and point out the greater extent to which this is recognized in Eastern organizations compared to their Western counterparts. Sparrow discusses the neglected role of emotion and imagery in cognition and their relationship to creativity.

    Another factor that affects both what we attend to and the way we set about tasks is our cognitive preferences and personality type (Section C). Hampson provides a brief overview of some key dimensions on which individuals differ. Kirton expounds upon the implications of a natural preference for adaption as opposed to innovation and the consequence for problem-solving, creativity decision-making and change management style. Goleman argues that emotional intelligence is a key factor in differentiating the good from the bad leader.

    Culture (Section D) can have a major impact on creativity in organizations. Generally an open climate is associated with creative organizations but Ekvall argues that different types of people and tasks need different sorts of climate to bring out the creativity appropriate for the task. Handy argues that the changed business environment necessitates a new relationship between management and workers, one he likens to the idea of citizenship. He advocates more workplace democracy as a means of building trust. Semler describes his experience of transforming a conservative traditional organization into an entrepreneurial self-organizing network of loosely related businesses.

    Development (Section E) is increasingly important as knowledge changes with increasing rapidity and staff become more empowered. Henry discusses the relationship between development, creativity and well-being. Argyris explains the importance of walking the talk in change programmes and illustrates how defensive behaviour can get in the way. Krackhardt and Hanson illustrate the importance of informal networks and the benefits of mapping.

    Finally Perception (Section F) addresses the question of how our assumptions affect the way we choose to develop. Shiva asserts that the reductionist bias in Western thought leads to a neglect of local knowledge in international development and argues that much modern agriculture and forestry is inherently unsustainable. Lovins, Lovins and Hawken argue that a shift in values, towards a more natural form of capitalism that mimics nature, would allow business to operate profitably in more sustainable ways. Pascale shows how the science of complexity offers a new understanding that focuses attention away from trying to control proceedings and towards the facilitation of emergent ideas and relationships.

    Readers of the previous editions will notice some continuity of theme in the sections on creativity, cognition, style and perception. The second edition expanded material on culture, learning and emotion. This edition expands the material on development, complexity and team innovation. 2006

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