Academic-Capital

Encouraging employees to be agents in change is difficult due to the lack of theoretical frameworks associated with the new innovative paradigm. To ask an employee who has not contributed before to become a contributing member of organizational development is difficult until they are able to formalize such concepts into a process and then create an internalized routine of the new expectation. Developing employee innovation requires the understanding of bounded rationality and the need to create a methodology that fosters a participative process. Employees follow a particular pattern and routine throughout their working day (Nelson and Winter, 1982). Even though these routines make for orderly workdays, ease of management, and stability of the organization they do not necessarily improve upon the organizations output. To encourage employees to act purposively, beyond daily routine, requires the ability of employees to deliberatively plan and make decisions (Kirzner, 1997).  

Are satisfied employees more innovative? Research helps to show how fostering the right organization culture leads to both satisfaction and innovation. Such concepts are embedded in social dynamics of a company and create subtle expectations on employees. Those organizations that foster positive interaction and recognition also set the right tone within their populations to overcome market challenges. Organizational culture can be envisioned as the totality of beliefs, values, knowledge, ideas, and habits that defines the very nature of an organization. Such culture impacts how employees make meaning of their environment and their chosen methods of needs attainment (Olivier, 2008). Through culture an organization can define how it is going to view, understand, approach, and overcome organizational challenges through innovative behavior. When culture has encouraged beneficial premises that are focused on innovation and problem solving the entire organization can achieve rewards rein