The school of behaviorist psychology believes that bureaucracy, especially the one which exists in government organizations, is basically methodical and organized which leads to efficient implementation of schemes and policies but is bereft of new ideas and technology. This has led to a general notion that large government organizations have little place for innovation. Bureaucracy has been extremely reluctant to introduce new reforms and ideas in its functioning even at the cost of obvious consequences such as inefficiency and dogmatism. Policy makers with progressive ideas face a herculean challenge to introduce some reforms in the bureaucratic functioning cause too many interests become vested in their continued existence. However, with the advent of new technologies and a newer social order, it is being increasingly felt that changes, even in small proportion, are absolutely necessary for their sheer existence and functioning. By definition, innovation implies the capacity to change or adapt. Innovation in an organization refers to the genesis, recognition and application of new ideas, processes, products or services. An organization which adapts itself to new changes may not be innovative (as it may not give birth to new ideas) but an innovative organization is definitely adaptive (as it can implement new ideas).