A.2 Investigate the impact of innovation on organisational development and performance

  
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Unit 4: Creativity, Innovation and Entrepreneurship 

BTEC Level 7
Level: 7

Unit introduction
This unit enables learners to explore the characteristics associated with creativity and innovation in organisations. Learners will explore the traits of successful entrepreneurs and how these can be applied by strategic leaders.

At the heart of this approach to strategic leadership is the need to look for creative solutions to the challenges faced by an organisation and to understand how innovation can be promoted and supported in all aspects of an organisation’s activities. This requires an organisational culture in which people are not afraid to take calculated risks to improve the effectiveness of systems and processes and develop new ways of doing things.

Implementing changes to an organisation’s culture brings its own challenges. Learners will explore how to identify key goals and priorities to help persuade and communicate innovative ideas to stakeholders and to identify and address barriers to innovation.

Learning outcomes and assessment criteria
To pass this unit, the learner needs to meet all the learning outcomes for the unit. The assessment criteria determine the standard required to achieve the unit.

Learning outcomes                                                                                               Assessment criteria

A

Understand the contribution of creative and innovative management to organisational development and performance

A.1

Systematically analyse the factors that influence innovation within organisations

A.2

Investigate the impact of innovation on organisational development and performance

A.3

Assess the factors that limit innovation in an organisation

B

Understand how entrepreneurial skills can enhance innovation  within organisations

B.1

Critically analyse the qualities of entrepreneurship applied to strategic management

B.2

Evaluate the influence of different leadership and management styles on the approach to innovation in an organisational setting

B.3

Critically evaluate the influence of intrapreneurship in an organisational context

C

Understand the techniques used to generate support and commitment to innovation within an organisation

C.1

Evaluate the approaches used to promote innovation in organisational processes

C.2

Comprehensively analyse techniques used to create creative solutions to strategic challenges

C.3

Evaluate the impact of an entrepreneurial approach to workforce organisation and development

D

Apply an entrepreneurial approach in a strategic leadership role within a given organisational context

D.1

Prepare a strategy for promoting innovation in an organisational context

D.2

Assess the impact of innovation in an organisation

Suggested assessment approach
This section
must be read in conjunction with Section 6: Assessment.
This unit is assessed internally by the centre and externally verified by Pearson. The table below shows the suggested approach to assessments.
When preparing the assessment for this unit, the learner should be given an Assignment brief designed by the tutor. This brief should be set in a specific organisational context, it should draw on learning from the unit, and be designed in a way that enables learners to meet all the assessment criteria.

Learning outcome                                                                                     Suggested assessment approach

A. Understand the contribution of creative and innovative management to organisational development and performance

There are a number of approaches that can be taken to cover the learning outcomes in this unit.

It is possible to assess all the learning outcomes in this unit within one assignment. Alternatively, different assignments can be used to cover individual learning outcomes, although care must be taken to ensure learners understand that innovation is a process and is therefore likely to draw on aspects from more than one learning outcome. It is therefore suggested that, if the learning outcomes are not assessed within one assignment, then an individual assignment should cover more than one learning outcome

Learners must be given the opportunity to link theory to practice, for example by examining the relevance of Drucker’s innovation model in an organisational context, and show the application of techniques used in the innovation process, for example SWOT and PESTLE analysis.

Assignments can be based on tutor-devised case study scenarios, research studies involving specific organisations or a learner’s own organisation. If case study scenarios are used care must be taken to ensure that learners have the opportunity to provide appropriate and sufficient evidence to meet all the assessment criteria. In the case of research studies, these can either be based on an organisation chosen by the tutor or self-selected by the learner.

If either case studies or research studies are used, learners must be given the opportunity to analyse how creative and innovative management impacts on the prevailing organisational culture and how this culture promotes creativity within the workforce. Not all innovations are successful and case studies and research studies can be based on a comparative analysis of both successful and unsuccessful innovations with learners required to identify the critical factors that impacted on the final outcome.

In those instances where the learner is required to consider their own organisation, there are two possible approaches that can be taken. Firstly, the learner could investigate how a specific innovation was introduced into the organisation and analyse the way in which the innovation was supported, the challenges that needed to be addressed to implement the innovation and an evaluation of the impact of the innovation on organisational performance. The second approach is based on an ‘active research’ approach involving the identification and diagnosis of a problem or a weakness in an organisational process and then proposing creative solutions to address the problem or weakness. The advantage of this approach is that learners would need to assess their own creative and entrepreneurial skills and to work with managers  and team leaders to successfully implement the innovation process.

Whichever approach is taken, learners must be aware that innovation is not solely concerned with new product development or the utilisation of technology. Creativity and innovation can also be applied to organisational processes with the aim to promote efficiencies and reduce costs. Hence, in this unit, organisational functions such as procurement, recruitment, communication systems and organisational structure can all form the basis of an assignment programme.

Learner presentations could be used to present a strategy for promoting innovation in an organisation highlighting the strategic objectives, the main issues to be addressed, recommendations, the lessons learned and the implications for strategic leaders and managers drawn from a detailed risk analysis.

B. Understand how entrepreneurial skills can enhance innovation within organisations

C. Understand the techniques used to generate support and commitment to innovation within an organisation

D. Apply an entrepreneurial approach in a strategic leadership role within a given organisational context


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