CREATIVE THINKING & PROBLEM SOLVING CHAPTER 4

PAPER 2

BUSINESS STUDIES

GRADE 12
TERM ONE
REVISED CHAPTER 4
NOTES ON CREATIVE THINKING AND PROBLEM SOLVING

TABLE OF CONTENTS

TOPICS PAGES
Exam guidelines for creative thinking and 2
problem solving
Terms and definitions 2
Differences between problem solving and 3
decision making
Problem solving steps 3
Application of problem solving steps 3-4
Problem solving techniques 4
Application of the problem solving techniques 5-6
Impact of problem solving techniques 6-8
Meaning of creative thinking 8
Advantages/benefits of creative thinking 8-9
Ways in which businesses can create an 9
environment that promotes creative thinking.

This chapter consists of 9 pages

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CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

Refer to page 28 and 29 of the 2020 exam guidelines

PROBLEM-SOLVING
Learners must be able to:
 Define/Elaborate on the meaning of problem-solving and decision making.
 Explain/Differentiate/Distinguish between problem-solving and decision making.
 Identify/Name/Outline/Explain/Discuss the problem solving steps.
 Apply the problem-solving steps from given scenarios/case studies.
 Identify/Name the following problem solving techniques from given scenarios/statements:
o Delphi technique
o Force field analysis
o Brainstorming
o Nominal group technique
 Explain/Advise businesses on how they can apply the above-mentioned problem-solving
techniques to solve complex business problems.
 Discuss/Evaluate/Analyse the impact (positives/advantage and/or negatives
disadvantages) of the above-mentioned problem-solving techniques.

CREATIVE THINKING
 Define/Elaborate on the meaning of creative thinking.
 Explain the benefits/advantages of creative thinking in the workplace.
 Explain/Recommend ways businesses can create an environment that promotes creative
thinking.

Terms and definitions

Term Definition
Creative To be original, inventive or resourceful.
Generate To produce or create.
Creativity/ Ideas featuring new and original methods.
Innovative
Creative thinking The ability to think of original, varied new ideas or new approaches
Decision-making Process of analysing a situation to identify strategies to bring about change.
Problem Experiencing uncertainty or difficulty in achieving what we want to achieve.
Problem-solving Gathering facts that include problem findings and problem shaping.
Problem-solving Various problem solving techniques which businesses used to solve
techniques business related problems.

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1 PROBLEM SOLVING
1.1 Meaning of problem solving
 It is the process of analysing a situation to identify strategies that can be used to
change the situation. Problem solving requires creative thinking.
 Problem solving is a mental process that involves problem finding, which is the ability
to identify the problem.
 It also involves problem shaping, which is the ability to break-down the problem in
such a way that a clear solution can be found.

1.2 Meaning of decision making

 Decision making is a choice made by using one's judgement.
 It is also aimed at finding a solution to a problem by choosing a best solution or
course of action.

1.3 Differences 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/ team
senior management who makes it authoritarian. or an individual team member.
-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 identify
decisions need to be taken in each step. strategies to bring about change.

1.4 Problem solving steps

 Identify the problem.
 Define the problem.
 Identify possible solutions to the problem.
 Select the most appropriate alternative.
 Develop an action plan.
 Implement the suggested solution/action plan.
 Monitor the implementation of the solution/action plan.
 Evaluate the implemented solution.
 Formulate strategy
 Implement strategy
 Evaluate strategy
NOTE: Steps can be in any order

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1.5 Application/Discussion of problem solving steps

Identify the problem
 Acknowledge that there is a problem
 Identify the exact problem
 Break down the problem into smaller parts that are easier solve separately

Define the problem

 Name the problem by stating exactly what the problem is.
 Find different ways of defining the problem.
 Define the possible causes of the problem
 The nature of the problem must be precise.
 Gather as much information as possible to establish the cause of the problem.

Identify alternative solutions

 Identify all different possible solutions
 Use creative thinking strategies to generate a wide range of solutions
 Focus on generating as many ways as possible through using creative thinking.
 Collect as many ideas as possible and find the best idea/decide on one strategy to
follow.

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.

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1.6 Problem solving techniques

 Delphi technique
 Force field analysis
 Brainstorming
 Nominal group technique
NOTE: You only need to focus on the above mentioned problem solving
techniques

1.7 Application of the problem solving techniques

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 improve-
ments 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

 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
 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.

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 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 the product 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.

1.8 Impact of problem solving techniques

Impact of the 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

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Negatives/Disadvantages
 It is an expensive technique to use due to high administrative costs.
 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.
 May be time consuming/complicated to analyse data received from experts.

Impact of the Force-Field Analysis

Positives/Advantages
 Employees feel included and understood.
 Employees develop and grow with the business.
 It provides a visual summary of all the various factors supporting and opposing a
particular idea
 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
 Requires the participation of all business units.
 It is time consuming since the business must stabilise before more changes can be
made.
 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
 People get ideas from others and build on them.
 Stimulates creative thinking in the workplace.
 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.

AND/OR

Negatives/Disadvantages
 Some team members may dominate discussion.
 Discussion may result in conflict due to differences in opinion.
 Fear of criticism may prevent full participation in brainstorming sessions.
 It may lead to 'group think'/some individuals may not give their opinions.
 Brainstorming is time consuming as all stakeholders/employees may generate too
many ideas which can delay decision making.

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The impact of the Nominal group technique

Positives/Advantages
 It provides time to think about the question in silence before responding.
 Voting on the ideas is anonymous and may be more reliable/honest.
 Strong technique for preventing conformity to group pressure.
 Each team member/director has a chance to participate without interference from
other team members.
 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

AND/OR

Negatives/Disadvantages
 Small groups limit participation and are pre-selected.
 It is time consuming, as each member must make a presentation.
 Suggestions may not be as creative as when a group throws ideas around.
 Good ideas can be voted out because its potential cannot be developed further.
 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).
 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.

2 CREATIVE THINKING

2.1 Meaning of creative thinking

 Creative thinking is the ability to think of original and innovative ideas.
 It focuses on exploring ideas/generating possibilities and looking for many
answers.

2.2 Advantages/Benefits of creative thinking in the workplace

 Better/Unique/Unconventional ideas/solutions are generated.
 Complex business problems may be solved.
 Improves motivation amongst staff members.
 Management/employees may keep up with fast changing technology.
 Creativity may lead to new inventions which improves the general standard of living.
 May give the business a competitive advantage if unusual/unique solutions/
ideas/strategies are implemented.

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 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.
 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.
 Stimulates initiative from employees/managers, as they are continuously pushed out
of their comfort zone.

2.3 Ways in which a business can create an environment that

stimulates/promote creative thinking
 Encourage alternative ways of working/doing things.
 Encourage staff to come up with new ideas/opinions/solutions.
 Respond enthusiastically to all ideas and never let anyone feel less important.
 Place suggestion boxes around the workplace and keep communication channels
open for new ideas
 Emphasise the importance of creative thinking to ensure that all staff know that
management want to hear their ideas.
 Make time for brainstorming sessions to generate new ideas, e.g. regular workshops/
generate more ideas/build on one another's 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.