Answer to Question 1
Answer: B
Answer to Question 2
Answer: An innovative organization has the following cultural characteristics:
a. Accept ambiguity - Too much emphasis on objectivity and specificity constrains creativity.
b. Tolerate the impractical - Individuals who offer impractical, even foolish, answers to what-if questions are not stifled. What at first seems impractical might lead to innovative solutions.
c. Keep external controls minimal - Rules, regulations, policies, and similar organizational
controls are kept to a minimum.
d. Tolerate risk - Employees are encouraged to experiment without fear of consequences should they fail. Mistakes are treated as learning opportunities. Employees do not fear to put forth new ideas.
e. Tolerate conflict - Diversity of opinions is encouraged. Harmony and agreement between individuals or units are not assumed to be evidence of high performance.
f. Focus on ends rather than means - Goals are made clear, and individuals are encouraged to consider alternative routes toward meeting the goals. Focusing on ends suggests that several right answers might be possible for any given problem.
g. Use an open-system focus - Managers closely monitor the environment and respond to changes as they occur.
h. Provide positive feedback - Managers provide positive feedback, encouragement, and support so employees feel that their creative ideas receive attention.
i. Exhibit empowering leadership - A leader of an innovative organization lets his subordinates know that the work they do is significant. He provides organizational members the opportunity to participate in decision making. He shows them that he is confident that they can achieve high performance levels and outcomes. This has a positive influence on creativity.