BUSINESS STUDIES GR 11 – CORE CONTENT: TERM 2

CREATIVE THINKING AND PROBLEM SOLVING; STRESS, CRISIS & CHANGE MANAGEMENT

1. Description of the term ‘creativity”

· Creativity refers to the ability of a person to think original, varied and innovative.

· Creative thinking focuses on exploring ideas, generating possibilities and looking for many possible answers

2. Application of creative thinking to address business problems

· In a business various problems constantly crop up and need to be dealt with.

· Creative thinking and problem solving are essential techniques that can be used to manage situation.

· Businesses must also adapt to market changes quickly and creatively.

3. Problem-solving skills

· Start by identifying and defining the problem.

· Get every one's views on all the needs that the solution must satisfy.

· In a group, brainstorm as many solutions as possible.

· Select the best possible solution

· Consider a combination of solutions, should that choice be the best solution

· Finally, design your strategy.

4. Routine versus creative thinking

· Routine thinking is a left brain function. Focus on analytical thought, logic, reasoning, number and written skills.

· Creative thinking is a right brain function. Focus on creativity, imagination, insight, holistic thought, art and music awareness.

5. Mental blocks to creativity and idea generation

· Being taught that there is always only one correct answer and they don't want to be wrong.

· Afraid of looking foolish or being criticised.

· Cannot escape routine thinking.

· Do not think that they are creative.

· Not knowing how to release their creative thinking abilities.

· Being logical and practical inhibits innovation.

· Having pre-conceived ideas about what is right.

6. Working with others to solve problems and generate ideas

· Difficult to be creative and innovative on your own.

· It helps if you are able to bounce ideas off others and get their opinion on a matter.

· Hearing other people expressing ideas often triggers more ideas in your own mind

· Working in groups, is a good way to generate ideas.

· With a group of people, the total experience and knowledge increases.

· This allows the group to view problems from a different perspective.

7. Importance of Creative thinking skills

· Essential for the success in the business.

· Creative skills should be developed and practiced.

· Opportunities must be created for thinking activities, games and techniques.

· Creativity skills flourish in an environment that promotes creativity

· Employees need to feel free to: Question, Challenge, Try fresh approaches and

give original innovative suggestions without being criticised or judged.

8. Conventional versus non-conventional solutions

Conventional solutions

· Getting solutions that are based on and that conforms to, what is generally done or believed.

Non-conventional solutions

· Getting solutions that are not based on and do not conform to, what is generally done or believed.

9. Problem-solving techniques

Problem solving techniques have been discussed in detail in Grade 10. Two of these techniques will be explained below.

1. The Delphi technique

•Is used to solve new and complex problems

•Uses an expert panel who never meets face-to-face.

•This encourages creative problem solving without the disadvantage of group meetings.

Method:

•Panel of anonymous experts are invited;

•Questionnaire is distributed;

•Anonymous responses are summarized;

•feedback report is sent to the panellist with a second set of questions;

•Panellist read feedback report;

•Panellist may decide to change their original decision

•Second questionnaire completed;

•Final summary and feedback report is compiled

•Idea is to reach consensus through this method consensus;

•Best solution will be found

2. Force-field analysis

•Designed by K Lewin in 1951.

•Used for decision making.

•Particularly when implementing change management.

•Structured way of looking at the pros (advantages) and cons (disadvantages)

as a plan for change.

Method

•Write the plan or proposal for change in the middle of a sheet of paper

•List all the forces resisting change in the column on the left

•List all the forces in support of change on the right

•Assign a score for each force from 1 for weak to 5 for strong

•Add the total score for both the resisting and support of change

•Weigh up the positive and the negatives

•Analyse the restraining forces and the best way to address them

•Analyse the supporting forces and the best way to address them

•Identify priorities and produce an action plan

10. Assessing creative solutions to solve business problems

· It is important that solutions are carefully evaluated and assessed.

· Solutions must be effective.

· Solutions must work in the real environment in which the business operates.

· Factors must be considered when evaluating a solution:

· is the solution successful?

· is the solution cost effective?

· is the solution clear?

· is the solution original?

10. Description of the term “Stress”

· Stress is the body's way of responding to change that requires a physical, mental or emotional adjustment or response

11. Way of managing stress

· Regular exercise and sufficient sleep

· Plan ahead

· Do not procrastinate

· Prioritise what must be done first each day

· Accept that change is inevitable

12. The importance of stress management in pressurised work environments

· Constant stress can cause many problems for a business since it becomes an unhealthy environment.

· Too much stress becomes a barrier to success.

· Too much stress lowers the performance of workers.

· Too much stress causes workers to become ill and stay absent from work.

· Severely stressed worker will be very unproductive.

· A good manager will recognise the existence of stress within the workplace.

· He will take steps to decrease stress through good relationships.

13. Description of the term crisis

· Crisis is defined as a time of great difficulty or danger.

14. Steps for designing and implementing a crisis management plan

· Define the possible crisis

· Investigate all possible effects

· Organise a team to design a workable detailed plan

· Clearly communicate the plan to all

· Test and practice the plan

15. Dealing with business related crises

· Tight deadlines

· Do not panic

· Prioritise by making sure that you identify what is really important

· Break the whole task down into smaller deadlines

· If the deadline is impossible to meet, negotiate a later deadline

· Loss of property

· Secure computers with cables

· Back-up data on computers daily

· Provide employees with access codes to the premise

· Provide employees with a secure place to put their valuables

· Encourage employees to take responsibility for the safety of their own valuables

· Take disciplinary action against employees guilty of theft at work

· Illness of employees

· Ensure that an absence from work policy is in place

· Record sick leave days taking by employees

· Disciplinary procedure in place for workers taking leave without permission

· Look for trends like employees taking off on Mondays & Fridays

· Address these trends immediately with the relevant employees

16. Description of change management

· Change management is the application of a structured process and set of tools for leading the people side of change to achieve a desired outcome.

Change management emphasizes the “people side” of change and targets leadership

within all levels of an organization including executives, senior leaders, middle managers

and line supervisors. When change management is done well, people feel engaged in the

change process and work collectively towards a common objective, realizing benefits and

delivering results.

17. Theories of change management.

· Two theories of change management

· Kurt Lewin's 3-step change model

· John Cotters' 8 steps of leading change

· Kurt Lewin's 3-step change model

STEP 1

Unfreeze

· Safety, comfort and feelings of control is a familiar environment is what Lewin calls a FROZEN state

· Change is threatening and causes discomfort

· Significant effort is required to unfreeze him/her

· Individual must understand the need for change and feel motivated to change before any change can take place

STEP 2

Change

· In this stage individuals will look for new ways to do things

· Some people will take longer than others to accept change

· Important to help them to see how change will benefit them personally

· Time and communication are essential

STEP 3

Refreeze

· In this stage the organisation will return to a sense of stability

· This is necessary to create acceptance and confidence before more changes are made

· John Kotter's 8-steps of leading change

Designed for managing stress in a typical hierarchical organisation.

This is where management decides on change and then communicates it to employees.

The following are the steps to follow:

•Establish a sense of urgency.

•Create guiding coalition.

•Develop a vision and strategy.

•Communicate the vision.

•Empower broad-based action.

•Generate short-term wins.

•Consolidate gains.

•Anchor in the culture

TRANSFORMING A BUSINESS PLAN INTO AN ACTION PLAN

1. Identify the stages in developing an action plan.

Developing the Action Plan can be divided into five different stages.

Stage 1:Summary of your vision, mission, goals and objectives.

Stage 2:Work Breakdown Structure [WBS]

Stage 3:Action Step Chart

Stage 4:Timelines indicating key targets and deadlines

Stage 5:Gantt chart

2. Explain how a Work Breakdown Structure (WBS) is constructed.

•First step in dividing the Business Plan into smaller project stages.

•Identifies what will be done.

•Structure of the WBS is divided into levels.

•Each level, giving more detail.

•This allows the work to be divided into manageable tasks.

•The elements should be logically connected and all the main details should be included.

3. List the Steps required to construct a work breakdown structure

•Identify one key task.

•Subdivided the task into secondary tasks

•Breakdown each secondary task into more detail.

•Check for logic, sequence and detail.

4. Construct a Work Breakdown Structure [WBS].

To illustrate how a schedule is constructed from a WBS, we consider a simple job of maintaining the yard around a home. The WBS is shown in Figure 1.

Level 1

Level 2

Level 3

· Level 3 consist of the Work Packages.

TRANSFORMING A BUSINESS PLAN INTO AN ACTION

1. Develop an Action Step Chart.

· Provides more detail on the work package level of the WBS.

· The Action Step Chart outlines:

- What? …. Clear and simple description of the task to be completed

- By who? …. Identifies the person responsible for getting the task done

- By when? … Provides an estimate date / time when the task will be done

- Expected outcomes? … Stipulates the intended outcome of the task

Example of an Action Step Chart

Sub

task

Work package

What

By whom

By When

Expected outcome

1.1.1

1.1.2

1.1.3

1.1.4

2. Convert a work breakdown structure WBS into an Action Step Chart.

· Let's look at the Action Step Chart of the Yard Project for the sub-task “Clean up”.

Clean Up

Work package

What

By whom

By When

Expected outcome

Pick up trash

Collect all the trash on the ground

John & Peter

On arrival at the site

No trash on the ground that must be cleaned

Bag grass

Collect all the loose grass on the ground

John

After the grass has been cut

All loose grass on the ground must be in bags

Bag hedge clippings

Put all the hedge clippings in bags

Peter

After the hedge has been cut

All hedge clippings on the ground must be in bags

Transport to dump yard

Transport the bags of grass and bags of hedge clipping to the dump

Grant

After both the loose grass and hedge clippings has been placed in bags

To ensure that all the grass and hedge clippings are removed from the ground and transported to the dump

3. Construct a timeline.

Have a title and labels and use a series of dates / time on a linear scale to indicate the date / time of completion for each of the tasks.

•The dates are projected dates rather than the actual ones.

•Does not indicate the duration of a project.

•It shows a passage of time.

•Usually divided into equal spaces that represents weeks or months

•Entries must be accurate and the information well organised

•Should be visually appealing, clean and neat

Example: Retailer Sustainability Timeline

Yard Project – Time line

· Develop a timeline for the Yard Project based on the sub task and work packages

10

20

30

40

50

60

70

80

90

100

4. Design a Gantt Chart.

· Definition

A Gantt chart is a visual representation of a project schedule. A type of bar chart, a Gantt charts show the start and finish dates of the different required elements of a project.

· Information from the time line and Action Step Chart is used to develop the Gantt chart.

· Structured in such a way that it clearly shows the activities against dates.

· Gant Chart has two axes.

· Vertical axes indicate the project stage.

· Horizontal shows the time.

· A start date and end date are indicated for each task.

· This shows the duration of the tasks and the duration of the overall project.

Example of a Gantt Chart

Develop a Gantt Chart for the Yard Project using the data / information on the Time line and the complete Action Step Chart

Work package

Start

Time

End

Time

MINUTES

10

20

30

40

50

60

70

80

90

100

110

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140

150

START A BSUINESS VENTURE BASED ON AN ACTION PLAN

1. Aspects that an entrepreneur should focus on when initiating a business.

There are three aspects that an entrepreneur should focus on, namely:

•Strategy

•Operations

•Productivity

Strategy

· An Action Plan outlines the vision, goals and an Action Plan.

· These must be used to develop the system and processes for the business to achieve its outcomes.

· A monitoring and evaluating system needs to be established.

· This system must provide constant feedback on weaknesses and successes.

Operations

· The Business Plan and Action Plan identified the operation plan.

· Operations need to be implemented, staff employed and trained.

· Resources must be acquired and managed.

· Constant monitoring and evaluation ensure that resources are used effectively.

Productivity

· The Action Plan includes budgets and financial planning.

· To ensure productivity in a business, cost need to be decreased and output increased.

· Continuous monitoring and evaluation need to be done to ensure maximum productivity.

· Improvements need to be implemented constantly to improve profits.

2. Factors that must be considered when setting up a business.

· Size of the business

· The bigger the business the more difficult it is to managed it.

· The success of a business often depends on the management and staff.

· More difficult to manage and control a larger group of employees.

· If there are too many employees, it is difficult to keep control of the quality of each of the employees, work and productivity levels.

· Culture, training and quality of staff

· Essential to establish an organisational culture from the beginning.

· Staff must become familiar with what is acceptable and what is not.

· Staff needs appropriate training to deliver the best quality.

· Risk and change

· Business need to take risks.

· The original Action Plan may need to be changed.

· Introduction of new technology may influence a budget.

· Essential that management and leadership teams are flexible to adapt to changes in the market.

· Customer service is essential

· To make a business successful, customers' needs to be given what they want.

· This may mean changing the market plan.

· A service business requires a personal touch.

· Business needs to form a relationship with its clients.

· Market research

· On-going market research is essential to determine the most profitable market for your products.

· Beneficial to start in a local, familiar market.

· Business cycles

· All businesses experience periods of ups and downs.

· Changes in both the macro and market environment can affect the business.

· Constant adjustments must be made to reduce cost where possible.

· Reducing cost has the effect of increasing the profitability of the business.

3. Start-up capital of a business.

Start-up capital can be divided into equity, debts and grants.

· Equity

· This is money that you already have.

· Could be from money you saved.

· Could be from something that you own.

· Debts

· Money that you borrow from somewhere.

· Must be repaid with interest.

· Different ways to get loans

· Grants

· Made available for small developing businesses.

· Most government grants do not have to be paid back.

· Government would like to see that the business benefit the community and environment.

Source of loans

There are different ways of sourcing loans.

Let's look at four of these sources, namely bank loans, overdrafts, angel funding and venture capital

· Bank Loans

· Money borrowed from a bank.

· Must be repaid with interest.

· Paid back in instalments over a period of time.

· Normally used for long-term financing.

· Overdraft

· Bank allows the client to withdraw more money than the balance in the account of the client.

· Repaid after a set period of time with interest.

· Most popular type of financing for the short-term.

· Angel funding

· Offered by wealthy entrepreneurs in exchange for a share in the business.

· Very popular in the Information Technology industry.

· Carries a high risk for the investor.

· Venture capital

· Financing is given in exchange for a share in the business at its start-up.

· Some venture capitalists also request a position in management or on the board.

4. Other sources of funding

· Many entrepreneurs are not able to get loans or overdrafts from banks.

· Mainly because they don't have credit records or they are unemployed.

· These entrepreneurs often resort to micro-lending.

· Micro-lending allows entrepreneurs who are unemployed, with no work experience or collateral to acquire funding.

· Micro lenders are businesses that offer small loans to people at high interest rates.

· The interest rates are high, because the risk for the micro-lender is very high.

· There is no guarantee that the borrower will be able to pay back the loan.

PROFESSIONALISM & ETHICS

1. Definition of Professionalism

•Refers to the competent and skilful behaviour expected of a professional person.

•Involves taking pride in your actions.

•Never compromising standards.

•It is an attitude towards what you do and towards people around you.

2. Definition of Ethics

· Refers to the moral principle that governs the behaviour of a person or group.

· Defines how individuals, professionals and businesses choose to interact with one another.

3. Differentiate between professionalism and ethics.

Professionalism

Ethics

1.

About the knowledge and skills of the profession and using them for the good of the client and society.

About the standards of conduct that are acceptable to society.

2.

Applying a code of conduct set by a business or a profession.

Forms part of a code of conduct.

3.

Focusses on upholding the reputation of the profession or business

Focusses on developing a moral compass that can be used in decision making.

4. Deep theory of professionalism.

· Developed by Daniel R. Coquillette.

· Study based on the behaviour of lawyers.

· He looks at what motivates professional people to obey rules and to act as they do.

· He identified three types of motivation, namely:

· Goal-based motivation

· Where individuals or groups identify goals for themselves.

· They then base their behaviour and ethics on accomplishing these goals.

· They only do something if it will promote their own goal.

· Rights-based motivation

· Ethics and behaviour is motivated by promoting the rights of people.

· Basic innate and natural rights of people are identified and protected.

· Example, the right to freedom and the right to life.

· Duty-based motivation

· Ethics and behaviour is motivated by doing what is right and what will create a better

life for all.

· Coquilette is of the opinion that a professional should be guided by a duty–based

motivation where you feel that as a professional, you should take the ethical high road

and do what you know to be morally right.

5. Principles of Professionalism

· Competency

Employees should apply their knowledge and skills in the interest of society and the

environment.

· Integrity

Employees should work with integrity, honesty and according to the law and generally

accepted norms of professional conduct.

· Respect

Employees should respect the dignity and rights of others and the image of profession or

business.

· Development

Employees must continuously improve their own skills and facilitate the improvement of the

skills of their sub-ordinates.

· Objectivity

Employees should remain objective and act in a way that is fair and just to all without any

bias or favour.

· Confidentiality

Employees should not divulge any details of the business or clients to others or use

confidential information for their own benefit.

6. Principles of Ethics

· Be objective and impartial

· Transparency and full disclosure

· Confidentiality

· Due care

· Avoiding conflict of interest

· Being committed and responsible

· Social responsibility

· Looking after the environment

· Abiding by international law

7. Theory of Ethics

· Utilitarian approach

· Focusses on decisions that promote the most good or generate the greatest value for society.

· Harming as few as possible

· Rights approach

· Focusses on individual rights where people are to be treated with respect and dignity.

· No person will be ill-treated.

· Business will not impose its mission or products on people.

· Justice approach

· Focusses on treating all humans equally.

· Regardless of their race, class, sex, religion or culture.

· Respects people's rights to be treated fairly.

· Common good approach

· Focusses on ensuring that the business values and ethical principles are in line with the society in which the business operates.

· Recognises that ethics and values vary from area to area and from country to country.

· Virtue approach

· Focusses on ethical principles that should be upheld in society.

8. Differences between good and bad decisions

· Good decisions

· If a decision is made with thought, sufficient information and by following ethical principles, it will more often than not be the right decision.

· Often best to follow your instinct once you have all the facts.

· Bad decisions

· Often the result of making on the spur of the moment decisions, without getting all the facts or checking that the facts are complete and correct.

· Opinions of other stakeholders are not taken into account.

· Consequences and ethics are not considered.

9. Applying the principles and skills of professional, responsible, ethical and effective

business practice

· It is expected of business to adhere to the following principles:

· Produce quality products at reasonable prices.

· Offer good service.

· Have reasonable working conditions.

· Reasonable remuneration of their staff.

· Not to harm the environment.

· Be socially responsible.

· To ensure that they are adhering to the above principles, business should have the following:

· A code of conduct.

· A code of ethics.

· Policies in line with the code of conduct and code of ethics.

· Good communication and training.

· Good management.

· Continuous training is essential for employees to maintain professional skills and competency.

· Policies should support the principles outlined in the codes.

· Management must embody the principles in all its actions, decisions and treatment of staff and customers.

· Effective communication is essential.

· Training courses in ethics and decision-making should be held regularly.

10. Different perspectives on Ethics

· Ethics are not universal.

· Ethics differ according to culture, religion, socialisation and education.

· There is no absolute right or absolute wrong when it comes to ethics.

· Each society needs to decide on its own what is acceptable.

· Business is entitled to decide the kind of behaviour that it demands from its employees.

· This is where a code of ethics is useful.

11. Ethical business ventures.

· Many businesses are striving to be more ethical and to be seen to be more ethical.

· Many businesses have joined Business Unity South Africa (BUSA) and Ethics Institute of South Africa.

· Businesses are also trying to improve their corporate governance.

· To comply with the King Code of Governance for South Africa.

· Corporate governance is the framework of rules and practices by which a Board of Directors ensure accountability, fairness, transparency in all company relationships.

· The King Code III emphasises the cultivation and promotion of an ethical corporate cultures.

· The King Code III advises that:

· Ethical conduct should be encouraged throughout the company.

· All areas of the company should display integrity.

· All the company's relationships should be ethical.

· Ethical standards should govern all areas of the company's business.

PRESENTATION OF BUSINESS INFORMATION

1. Difference between verbal- and non-verbal presentations

Verbal Format

Non Verbal Format

· Refers to oral communication by the presenter.

· Most jobs require an employee to make verbal presentations to: managements; customers; co-workers

· Business presentations are often required in a written format.

· This format is called a non-verbal format.

· Examples: Report on a department's performance; analysis of a project & financial statements.

2. Presentation and validation of business information.

· It is essential for business related information to be presented and validated effectively.

· The information can be presented verbally or non-verbally.

· Effective validation can be done through the proper use of graphs, tables, diagrams, illustrations and other appropriate visual aids.

3. Design and lay-out of a business presentation

· Business presentations are an important part of many jobs.

· Presentation can be a written report or a verbal presentation.

· An accurate, concise, error free, professional presentation is very important

4. Steps in designing a presentation

•Ensure that you know what the audience need to gain from the presentation.

•Consider who you audience are and what they already know.

•Write the report with current, relevant and accurate information

•Use clear, simple language.

•Keep sentences short with good grammar.

•Include tables, graphs, and diagrams as illustrations to enhance your presentation.

•Proofread the report or verbal presentation to ensure it is error-free.

•Get an objective, informed person to proofread or listen to your presentation.

5. Successful verbal (oral) presentation

•Powerful verbal messages are short and simple.

•Start strong.

•Make the purpose of your presentation clear.

•Make your presentation come alive with imagery, anecdotes and examples.

•Have a strong meaningful ending that people will remember.

•Speak with energy and enthusiasm.

•Practice again and again and again.

6. Steps in report writing.

· Plan carefully

· Take into account the purpose of the report and who will be reading it.

· Ensure that it is accurate, concise, clear and to the point.

· Use graphs, table, diagrams and illustrations to help convey the information.

· Get some one that is reliable to proofread the report.

· Ensure that the report looks professional.

7. Preparing and using visual aids

· Tables, graphs, diagrams and illustrations are invaluable visual summaries if used effectively.

· When using graphs or tables, never use more than three in a row.

· People will lose track of the main point you are trying to make.

· Keep the tables, graphs, diagrams and illustrations simple and meaningful.

· Use colour to highlight different graphs and headings. Use the appropriate type of graph or table.

Tables, graphs, diagrams and illustrations

Line graph

Used to show a progression over time.

Bar graph

Used to compare different things over a long period of time

Pie Chart

Used to show the parts of a whole.

Tables

Used to compare or contrast different things or ideas.

1.

Organisational chart

Used to show structure.

Diagrams

Used to give a visual illustration of information.

8. Setting out transparencies / slides.

· Use key words on the slides, not full sentences.

· Slides should only be used to enhance what you are saying.

· Slides must never be the focus.

· The focus should be on what you are saying

· Slides must aid you to get the message across.

· Slides must have a lot of white space that is there should not be too much writing.

· Presenter must look at the audience when talking and not at the slides.

9. Preparation of hand-outs.

· A hand-out is a summary of the most important parts of the presentation.

· Presentation notes as hand-outs contain too much detail.

· Copies of slides as hand-outs contain too little detail.

· Hand-out must be used to include details that could not be provided during the presentation.

Example: more detailed graphs or financial statements.

10. Designing an effective poster.

· Posters are generally used to advertise something, emphasise something or act as a reminder of something.

· Requirements for an effective poster:

· Must be bold, creative and eye catching.

· Be quick and easy to read.

· Use a few words and a big font.

· Have all the essential details clearly summarised.

· Get the intended message across strongly.

11. Designing flyers.

· Flyers can come in different formats depending on its purpose and the budget.

· Certain points to remember when preparing a flyer:

· Decide on a central message of the flyer.

· Make the central message bold, clear and eye-catching

· Do not us too many words.

· Use large font to print the important details.

· Be creative and use interesting images

· Lay-out of the flyer must be attractive and appealing.

· Include details like:

- what you advertising

- who you are

- where to find you

- how to contact you

- date of an event, if applicable

.

· Proofread your design before it goes to print.

12. Dealing with questions.

· Read through your presentation and make a list of as many possible questions you can think of.

· Limit question time so that it does not make you go over your time limit.

· Remain calm and open.

· Listen carefully to each question.

· Be sure you know what you are being asked.

· Pause and consider your answer before launching into a response.

· Answer clearly and calmly and keep your responses brief.

· If you do not know an answer, admit it. Promise to respond with an answer in due time.

· Do not argue or become aggressive when questions are posed to discredit you.

· If someone rectifies a wrong answer you provided, be gracious in your response and do not become defensive.

13. Dealing with feedback

· Feedback provides you with information about how you came across, what you did well and where you could improve.

· Verbal feedback from the audience immediately after the presentation is difficult.

· Provide participants with feedback forms to fill out for analysis later.

· Determine from the responses the success of the presentation and make changes, if necessary.

· Do not become defensive when confronted with negative feedback.

· Analysis the negative feedback, see if there is any truth in it and do something to rectify it.

· Look for ways to improve and grow from the experience

Gr 11 Term 2 – Core Content