Assessment of managerial innovation in manufacturing company

Abstract

Every company has to develop their managerial capability to maximize performance of every function in order to survive in an environment with drastic changes right now. This research was conducted at two governments owned manufacturing companies to compare the differences in managerial innovation. The method to assess the managerial innovation was based on elements of management function, which are planning, organizing, leading, controlling and coordinating. There were two methods in collecting the data, using questionnaire and doing observation. Questionnaires results were calculated using BPMSG AHP online system, to determine the score. The higher score of managerial innovation, the higher potential of the company to innovate. Managerial innovation score were 42.3% and 48.9%, which showed that none of them were innovative based on the previous research standard, which stated that innovation potential should be more than 50%. The differences between the two were also analysed based on every management function.

Proposed SWOT Strategy with Attention to The Managerial Innovation Level

“…In the next era, the "Virtual Management" approach was introduced. It is about managing people remotely using technology, and companies are advised to define a structure according to this new virtual organizational style [7]. Not only can managers direct and control employees, but also employees known as virtual teams plan, manage, and report problems and are responsible for various tasks that need to be implemented.…”

“…[8], the used the Fuzzy AHP method. It can cover the weaknesses in the AHP Pairwise Comparison method described in the study [7] regarding the problem of subjective criteria [8]. The result of this research is the score of the company's managerial innovation level.…”

“…Research conducted by Ref. [7] regarding managerial innovation in manufacturing companies PT. X and PT.…”