Research from the MLab at London Business School shows less than a quarter of senior managers believe management innovation is given a high level of attention in their organisations compared with product or service innovation which 65% think is highly valued.
Despite the findings, eight out of 10 managers think management innovation is a driver of long-term success.
Vanessa Robinson, head of operations research and policy at the CIPD, said: "The research shows organisations have not yet fully understood how management innovation can be used to embrace the needs of generation Y employees or the opportunities afforded by Web 2.0.
"Pioneers in management innovation attract and retain top employees and they build a capability for change and adaptation. These attributes have never been more important in today's highly competitive business world."
Julian Birkinshaw, deputy dean of London Business School, added: "The research shows that very few companies have got to grips with the potential [of Web 2.0]. Indeed many companies actually ban their employees from using social networking tools at work. Tomorrow's leading companies will be the ones that actively embrace these exciting new tools today."
Employers that undervalue management innovation will miss out
Organisations are failing to embrace management innovation according to the CIPD.
