How can a manager develop an innovative culture?

What will be an ideal response?

A manager needs to ensure that the interaction of the four sources of culture—the characteristics of the people, organizational ethics, the distribution of property rights, and organizational structure—encourage innovation. The top-management team should state that innovation is a terminal value, and they should develop rules and norms that lead to creative behavior. The company can hire creative people who are willing to take risks, and the company can use socialization tactics that lead to an individualized role orientation to instill terminal values of innovation in newcomers. Managers can distribute property rights based on performance; if employees are innovative, they receive bonuses. Finally, the company should design an organic structure and decentralize decision-making.