Why is it necessary for leaders/ managers to understand innovation in terms of system concepts?Activity 21Why should managers encourage employees to offer ideas, views or suggestions regarding improvements/ changes that they consider would be beneficial to the organisation?2 You are a section (departmental) manager in a large retail store. An employee has come to you to present an idea that they believe will result in improving and streamlining customer service procedures. How will you respond?Activity 31Innovation necessarily involves risk. Explain what this means to you.2Case study The General Confectionery Company’s product development team have designed a new confectionery product. This product is quite different from those generally sold by the General Confectionery Company. They have conducted suitable market research to identify their target market – 5 to 8 year old children. This means that the product needs to appeal to both the children and their parents.The company does not have the capacity to add this product to their product line without removing at least one of their other products. They will need to conduct a product analysis to identify which product/s should be removed from the list.Even though this will be only one of a number of products sold by the company, it is necessary to analyse the risk involved in making the decision to go ahead with the new product. What risks will be faced and how might these risks be controlled?3Explain what a contingency plan is and explain the important aspects of contingency plan development.Activity 41Good leaders lead by example. What does this mean and how can a good leader encourage employees to follow their example?2Leaders should regularly evaluate their own approaches for consistency with the wider organisational context. Do you consider that your performance, in terms of encouraging and promoting innovation and in terms of acting as a role model, fits with the expectations and needs of the organisation for which you work? Explain and justify your answer, giving, where appropriate, work-based examples.3How do good leaders build effective relationships, based on mutual respect and trust, with employees?Activity 51Innovations might fail because they are impractical or because the ideas are just not as good as everyone thought they were. They can also fail because of cultural infrastructure and causes associated with the innovation process itself. Make a list of at least 12 conditions, internal to an organisation that might cause innovation to fail. For each listed characteristic (cause) give a brief description of the effect, and where possible, tie the problem to actual workplace examples.