Business Studies Grade 12 Creative Thinking and Problem Solving PDF

Business Studies Grade 12 Creative thinking and problem solving Notes Define/Elaborate on the meaning of problem-solving and decision making. Decision making:  It is often done by one person/a member of senior management who mak...

Business Studies Grade 12 Creative thinking and problem solving Notes Define/Elaborate on the meaning of problem-solving and decision making. Decision making:  It is often done by one person/a member of senior management who makes it authoritarian.  Various alternatives are considered before deciding on the best one.  It is part of the problem solving cycle as decisions need to be taken in each step. Problem solving:  Problems can be solved by a group/ team or an individual team member.  Alternative solutions are generated/ identified and critically evaluated.  Process of analysing a situation to identify strategies to bring about change. Explain/Differentiate/Distinguish between problem-solving and decision making. DECISION MAKING PROBLEM SOLVING -It is often done by one person/a member of -Problems can be solved by a group/ senior management who makes it team or an individual team member. authoritarian. -Various alternatives are considered before -Alternative solutions are generated/ deciding on the best one. identified and critically evaluated. -It is part of the problem solving cycle as -Process of analysing a situation to decisions need to be taken in each step. identify strategies to bring about change. Identify/Name/Outline/Explain/Discuss the problem solving steps. Identify the problem  Identify the exact problem  Acknowledge that there is a problem Define the problem  The nature of the problem must be precise.  Define the possible causes of the problem  Gather as much information as possible to establish the cause of the problem. Identify alternative solutions  Identify all different possible solutions  Decide on the cause Evaluate alternative solutions  Use critical evaluation and analytical skills to evaluate each solution.  Consider the advantages and disadvantages of each alternative solution. Choose the best solution  Set criteria for the best solution, in terms of aspects such as time/cost/risk involved  Identify which solution will be used  The best solution should match the size and the resources of the business.  If the solution is not appropriate, the business should go back to defining the problem. Formulate/Develop an action plan/strategy  Arrange the necessary resources and delegate tasks.  Establish a time line for implementation and set deadlines Implement the action plan  Carry out the planned actions/solution.  Communicate delegated tasks/deadlines to employees. Evaluate the solution/action plan  Assess whether the problem has been solved partially or entirely  Monitor/test the solution/action plan/strategy continuously.  If problems emerge, they must recognise and re-formulate the problem for improved solutions in the future. Identify/Name the following problem solving techniques from given scenarios/statements: Delphi technique; Force field analysis; Brainstorming; Nominal group technique Explain/Advise businesses on how they can apply the above-stated problem- solving techniques to solve complex business problems. Application of the Delphi technique  Businesses must invite a panel of experts to research the complaints from customers.  Experts do not have to be in one place and will be contacted individually.  Design a questionnaire consisting of questions on how to improve the quality of their products and distribute it to the panel members/experts.  Request the panel to individually respond to the questionnaire/suggest improvements to the products and return it to the business  Summarise the responses from the experts in a feedback report.  Send the feedback report and a second set of questions/questionnaire based on the feedback report to the panel members.  Request panel members to provide further input/ideas on how to improve the quality of products after they have studied the results/documentation.  Distribute a third questionnaire based on previous feedback from the second round.  Prepare a final summary/feedback report with all the methods to improve the quality of the business’s products  The business should choose the best solution/proposal after reaching consensus. Application of Force-Field Analysis technique  Describe the current situation/problem and the desired situation.  List all driving/pros and restraining/cons forces that will support and resist change.  Allocate a score to each force using a numerical scale, where 1 is weak and 5 is strong.  Weigh up the positives and negatives then decide if the project is viable.  Choose the force with the highest score as the solution.  If the project is viable, find ways to increase the forces for change.  Identify priorities and develop an action plan. Application of brainstorming technique  State/Define the business problem clearly, so that all participants/stake-holders understand the problem.  Members state possible causes of the business problems.  Set a time limit for each brainstorming session.  Record/Write ideas down, where all participants can see it./Ideas may also be shared online during an E-brainstorming session.  Use each suggestion, to inspire new thoughts/ideas.  Do not judge/criticise/discuss the ideas, so that many ideas could be generated as quickly as possible.  All members of the group randomly make suggestions.  The group rates ideas according to its usefulness/success/difficulty/cost to implement.  The group evaluates all ideas, and combines similar ones/draw up a refined list.  Discuss a plan of action on how to implement the best ideas. Application of Nominal-group technique  Encourage group to clearly define the problem/to improve the quality of their products due to various complaints so that all the small groups can work on the same problem.  The business must divide the employees into smaller groups.  Request each employee to silently brainstorm /generate many ideas on his/her own, on how the quality of their paint can be improved and to write it down.  Each employee in the small group has the opportunity to give one of his/her idea/solution with a short explanation.  Appoint one employee to write the ideas/solutions on a large sheet of paper/ capture solutions electronically on computer for all to see.  Allow each employee to give a second solution until all possible solutions have been recorded.  Encourage employees to ask clarity seeking questions.  Discourage criticism of ideas/solutions as this may prevent others from giving their solutions.  The business must eliminate ideas that are duplicated/ similar.  Each employee must read through all the suggestions and anonymously rate them giving the highest points for the best solution.√  Collect the ratings and calculate total points.  Small groups must present one solution to the large group that was deemed best according to the scores/votes in their small groups. Discuss/Evaluate/Analyse the impact (positives/advantages and/or negatives/ disadvantages) of the above-stated problem-solving techniques Impact of Delphi technique Positives/Advantages  Businesses may use a group of experts without bringing them together.  The experts will give the business clear ideas/solutions on how to improve on productivity/ profitability.  Information received from experts can be used to solve complex business problems.  Experts may give honest/credible opinions as they do not have a direct/personal interest in the business.  Conflict may be avoided especially if all employees are knowledgeable and well qualified.  Dominating employees may not take over the process as they do not form part of the problem solving process.  It reduces noise levels in an office environment since there is no group discussion. AND/OR Negatives/Disadvantages  It is an expensive technique to use due to high administrative costs.  May be time consuming/complicated to analyse data received from experts.  Not all experts are willing/interested to give feedback/complete questionnaires.  Some experts might not have an in-depth knowledge of certain topics.  Experts' suggestions may not be considered by some employees so consensus may not be reached.  Impact of the Force-Field Analysis Positives/Advantages  It provides a visual summary of all the various factors supporting and opposing a particular idea  Employees feel included and understood.  Employees develop and grow with the business.  Informed decisions can be made as forces for and against are critically evaluated.  Enables businesses to strengthen the driving forces and weaken the restraining forces.  Businesses are able to have an idea of the timeline required and the requirements of additional resources. AND /OR Negatives/Disadvantages  It is time consuming since the business must stabilise before more changes can be made.  Requires the participation of all business units  The analysis developed is entirely dependent upon the skill level and knowledge of the group working on the analysis. The impact of brainstorming Positives/Advantages  Better solutions are developed through collective contributions.  Combinations of ideas/improvements can be chosen after all the ideas have been written down.  Employees are motivated as they are allowed to contribute to problem solving.  Stimulates creative thinking in the workplace.  People get ideas from others and build on them. AND/OR Negatives/Disadvantages  Brainstorming is time consuming as all stakeholders/employees may generate too many ideas which can delay decision making.  Some team members may dominate discussion.  Fear of criticism may prevent full participation in brainstorming sessions.  It may lead to 'group think'/some individuals may not give their opinions.  Discussion may result in conflict due to differences in opinion The impact of the Nominal group technique Positives/Advantages  It provides time to think about the question in silence before responding  Each team member/director has a chance to participate without interference from other team members.  Voting on the ideas is anonymous and may be more reliable/honest.  Everyone in the group is given an opportunity to contribute to the discussion, while avoiding the likelihood of one person dominating the group process.  Enables the group to generate and clarifies a large amount of ideas quickly, and democratically prioritises them.  It encourages participants to confront issues through constructive problem solving  Strong technique for preventing conformity to group pressure. AND/OR Negatives/Disadvantages  It minimises discussion, and thus does not allow the full development of ideas.  Ideas/Inputs made by members may not converge and cannot lead to the same solution(s).  Suggestions may not be as creative as when a group throws ideas around.  It is time consuming, as each member must make a presentation.  It is hard to implement it effectively with large groups unless very carefully planned beforehand  Requires extended advance preparation, which means that it cannot be a spontaneous technique  Good ideas can be voted out because its potential cannot be developed further  Small groups limit participation and are pre-selected.  CREATIVE THINKING Define/Elaborate on the meaning of creative thinking.  A way of looking at problems from a fresh perspective that leads to unusual solutions/ Thinking original/ Lateral thinking (outside of the box) Explain the benefits/advantages of creative thinking in the workplace.  Better/Unique/Unconventional ideas/solutions are generated.  May give the business a competitive advantage if unusual/unique solutions/ ideas/strategies are implemented.  Complex business problems may be solved.  Productivity increases as management/employees may quickly generate multiple ideas which utilises time and money more effectively.  Managers/Employees have more confidence as they can live up to their full potential.  Managers will be better leaders as they will be able to handle/manage change(s) positively and creatively.  Managers/Employees can develop a completely new outlook, which may be applied to any task(s) they may do.  Leads to more positive attitudes as managers/employees feel that they have contributed towards problem solving.  Improves motivation amongst staff members.  Managers/Employees have a feeling of great accomplishment and they will not resist/obstruct the process once they solved a problem/contributed towards the success of the business.  Management/employees may keep up with fast changing technology.  Stimulates initiative from employees/managers, as they are continuously pushed out of their comfort zone.  Creativity may lead to new inventions which improves the general standard of living. Explain/Recommend ways businesses can create an environment that promotes creative thinking in the workplace.  Emphasise the importance of creative thinking to ensure that all staff know that management want to hear their ideas.  Encourage staff to come up with new ideas/opinions/solutions.  Make time for brainstorming sessions to generate new ideas, e.g. regular workshops/ generate more ideas/build on one another's ideas.  Place suggestion boxes around the workplace and keep communication channels open for new ideas.  Train staff in innovative techniques/creative problem solving skills/mind-mapping/ lateral thinking.  Encourage job swops within the organisation/studying how other businesses are doing things.  Encourage alternative ways of working/doing things. Respond enthusiastically to all ideas and never let anyone feel less important