Final answer:
True, an innovative organization is characterized by flexibility and empowered employees, avoiding rigid work rules. This echoes the principles of Theory Y and transformational leadership, promoting creativity, adaptability, and employee empowerment in contrast to bureaucratic rigidity.
Step-by-step explanation:
An innovative organization is indeed characterized by flexibility, empowered employees, and the absence of rigid work rules. The modern workplace landscape requires organizations to be flexible in order to adapt to rapid changes caused by various factors. As such, empowered employees with the ability to set their own hours through telecommuting and less rigid structures are beneficial. Theory Y, which assumes workers seek to be productive and can find creative solutions, supports such an innovative environment, as opposed to Theory X, which sees employees as inherently lazy and in need of control. This aligns with a transformational leadership style where leaders inspire and intellectually stimulate their employees to be creative and proactive, rather than the transactional style which focuses on supervision and rewards/punishments system.
An innovative organization contrasts with a traditional bureaucratic system, which may discourage new ideas due to a lack of flexibility and has a large bureaucracy that can hinder the ability to react and adapt quickly to new challenges. Today's workplaces increasingly rely on work teams and collaboration to bring together diverse skills and expertise, a characteristic fundamental to an innovative organization striving for workplace effectiveness and success.