ENTREPRENEURSHIP (MPU 2232)

CHAPTER 2:
CREATIVITY AND MOTIVATION

Nurul Shahirah binti Haji Ishak

Lecturer/Coordinator
(Faculty of Social Science & Foundation)
 Learning Outcomes
At the end of this class, students should be able to:-

• Define creativity.
• Explain the creativity process.
• Discuss the creativity techniques.
• List the characteristics of a creative individual.
• Definition of motivation.
• Explain the advantages of well motivated.
• Discuss the theories of motivation.
• Discuss how firms can enhance job satisfaction and
motivation.
Gnome Bread Fit Buns High Protein:
Packaging Bread
Moustache Paintbrush Packaging
Parmesan
Pencils
Kirei
Towel
 BUTTER!
BETTER!

BUTTER!
BETTER!
 2.0: DEFINITION OF CREATIVITY
• Creativity in Latin word means, creatus, which literally means ‘to have
grown’.

• In context of entrepreneurship;
– The ability of generating novel and useful ideas for business ventures.
– Entrepreneurs must generate valuable ideas for new goods or services
that will appeal to some identifiable market. (Ward, 2004)
– They should have mutual understanding on how to figure out to bring
the project to fruition.
– The ability to come out with new ideas, approaches, or actions and
exploit them to create wealth.
– The ability to rethink an old idea;
(for example; think of a new application for an existing technology, and
present it in a way that is attractive to the market).
 2.1: CREATIVITY PROCESS

Information Gathering

Incubation Phase

Illumination Phase

Verification Phase/Execution Phase

 2.1.1: Information Gathering
• Focus to entrepreneur’s mind on the problems and requires them to
explore the problems dimension.

• Must be ready to gather all the relevant information and look for
rationalization.

• It required to search ideas by reading, discussing with peers in the

same line, participating professional seminars, workshop or
conference to gain relevant input.

• They will have a mutual understanding regarding the problems. It

may develop an output in the form of a new product, service, or
business venture.
 Example 2.1.1:
• En. Najmee, who is keen to starting his own business,

because aware of the difficult faced by people in his

neighborhood to buy nasi lemak from stalls located in the

busy town area. From this problem, En. Najmee identifies

the need to develop a better distribution method for nasi

lemak and begins his search for the information on

distribution and marketing from various sources.

 2.1.2: Incubation Phase
• Involves the visualizing or dreaming process, which entrepreneur
has a period of relaxation to allow the subconscious mind to
generate ideas.

• It usually happen when someone performing leisure activities.

• During the process, the problem is internalized into the

subconscious mind and nothing appear externally.

• The original problem is forgotten or neglected for a while, but

the mind will still be at work, churning out ideas subconsciously.
 Example 2.1.2:

• During the second phase, En. Najmee attends a party at a

pizza restaurant with his friends and temporarily forgets the

problem of nasi lemak distribution.

 2.1.3: Illumination Phase

• Also know as ‘eureka factor’ or ilham in Bahasa Melayu.

• The idea or experience comes into play.

• This is the most exciting phase in the process of creativity.

• It allows an entrepreneurs to begin formulating solutions

since ideas or innovations come unexpectedly at any time.
 Example 2.1.3:

• En. Najmee attends the party at the pizza restaurant with his
friends. As he enjoys himself at the party, an idea strikes
him: he can distribute nasi lemak by home delivery just as
the restaurant delivers pizza to their customers at home.
• This is called, out-of-the-blue illumination or ‘eureka
experience’.
 2.1.4: Verification/ Execution Phase
• It is the final phase also know as an extremely phase.

• An entrepreneur transform the idea into reality or action.

• The process of evaluation and implementation takes place in this stage.

• The idea should be verified, elaborated and applied/implement.

• The final phase requires an individual’s courage, confidence, stubborn

determination, and perseverance.

• Emphasizes more social skills than the technical skills that produced the
innovative idea.

• Test should be conducted in order to prove that the idea has value and is
valid.
 Example 2.1.4:

• As in the case of En. Najmee, the extends the concepts of

nasi lemak delivery by collecting orders from customers. He

will need to form a business plan from the new concept and

learn more about the business, including effective sales

technique and how to overcome the challenges that might

arise in the venture.

 2.3: CREATIVITY TECHNIQUES

• The methods that encourage genuine and divergent

thinking.

• It can be done individually or in groups of two or more

people.

• It help to develop new ideas to solve the problems.

Figure 2.3:
Creativity
Techniques
 2.3.1: Forced Analogy
• Involves making analogies by comparing a problem or a
situation with a completely random object or term.
• Useful in generating new ideas as it comparing one idea
with a problem that has little or nothing in common.
• It also helps in new perspective and other alternatives
findings.
• For example:
– Music and computer, or size of shoes and exam result.
 2.3.2: BRAINSTORMING
• Group members are required to generate and throw any
ideas or thoughts without worrying whether the ideas do
make sense or how they could be fit together to work.
• Purpose:
– To generate many ideas as possible for a solution to a problem. The
more ideas the group explores, the greater their chances of finding
the right solution to the problem.
• During the session:
– No one is allowed to criticize or evaluate the ideas contributed by
group members. This is to ensure everyone in the group participate
and a wide range of ideas is produced from the session.
 2.3.3: DO IT
• It stands for:
– Define problem, Open mind and apply creative techniques, Identify
best solutions, and Transform ideas into action.
• Purpose: To open one’s mind and generate as many ideas as
possible.
• All ideas should be listed regardless of whether they are good
or bad.
• Then, the detailed analysis is carried out to identify the best
ideas or modify them to be transferred into action.
• Finally, implement the solutions which may involve doing
activities such as developing new product or putting into
action a new marketing strategy.
 2.3.4: ISHIKAWA TECHNIQUE
• It can be known as ‘Fishbone’ technique. Also referred to as
Cause-and-Effect Diagram.
• Purpose: A process of identifying possible causes of a
problem.
• Is ideally organized over a number of meetings, enabling the
teams to become deeply immersed in the problem.
• Example of Fishbone techniques:-
Example:
 2.3.5: PDCA Cycle
• It consists of four steps for improvement or for making
changes.
– Plan: Establish the objectives and processes necessary to deliver
result in accordance with customer’s requirements and the
organization’s policies.
– Do: Implement the process.
– Check: Monitor and measure process and products against policies,
objectives, standards, specification, and requirements for the product
and report the results.
– Act: Take action to continually improve process performance.
Continue..

• It is advisable to use the PDCA Cycle when starting new

improvement project, planning data collection, and
analyzing in order to verify and prioritize problems or
root causes.

• If the PDCA has no end, the cycle should be repeated

again for continuous improvement.
 2.3.6: SWOT ANALYSIS
• Purpose: Requires the entrepreneur to write down answer
to the following questions.

• Useful for existing business as well as for a new one.

• Help to direct a firm’s future business by using the firm’s

strength to capitalize on opportunities, while reducing it’s
exposure to threats.
Table 2.3.6:
Type of analysis Source Questions to be answered

Strengths What do you do well?

(A list of entrepreneur’s personal
characteristics which are seen as
Internal advantage in doing business)

Weaknesses What is done badly?

(Things to improve or avoid)
Opportunities What are the interesting trends?
(Government policies, new technology,
changes in the market place, changes in
External social patterns, population profiles, or
lifestyle changes)

Threats What obstacles do you face?

(Competitors, evolving technology, bad
debt, or cash flow problems)
 2.4: WHAT IS MOTIVATION?
• What is it?
– Is a will to work.
– Comes from enjoyment of work itself and/ or from
desire to achieve certain goals e.g. earn more money or
achieve promotion.

• Methods available to motivate employees:

– Financial methods (e.g. salary or bonus)
– Non-financial methods (e.g. passing on responsibility or
praise)
 2.5: ADVANTAGES OF WELL MOTIVATED
WORKFORCE

• Better productivity ( amount produced per employee).

• Better quality.
• Lower level of absenteeism.
• Lower level of staff turnover (number of employees leaving
business).
• Lower training and recruitment costs.
 2.6: IMPORTANCE OF MOTIVATION

• Motivated employees are required

• Helps organization to survive.
• Motivated employees are more productive.
• Help in increasing productivity and better morale.
• Motivation includes issues of emotions, supports and
capability.
2.7 THEORIES OF MOTIVATION
THEORIES OF MOTIVATION
THEORIES OF MOTIVATION
THEORIES OF MOTIVATION
THEORIES OF MOTIVATION
THEORIES OF MOTIVATION
THEORIES OF MOTIVATION
2.8 HOW FIRMS CAN ENHANCE JOB
SATISFACTION AND MOTIVATION?

• Adequate compensation program.

• Job security.
• Flexible work schedule.
• Employee involvement programs.
2.8.1 ADEQUATE COMPENSATION PROGRAM

• MERIT SYSTEM
- A compensation systems that allocates raises according to
performance (merit).

• INCENTIVE PLANS
-Provides employees with various forms of compensation if
they meet specific performance.
 2.8.2 FLEXIBLE WORK SCHEDULE

• FLEXTIME PROGRAMS
- Program that allow for a more flexible work schedule.

• COMPRESSED WORK WEEK

- Compress the work load into fewer days per week.

• JOB SHARING
- Two or more person share a particular work schedule.
2.8.3 EMPLOYEE INVOLVEMENT PROGRAMS

• Job Enlargement
– A program to expand (enlarge) the job assigned to employees.

• Job Rotation
– Allows a set of employees to periodically rotate their job
assignments.

• Empowerment
– Allowing employees the power to make more decisions.

• Participative Management
– Employees are allowed to participate in various decisions made by
their supervisors or others.
Continue..

• MANAGEMENT BY OBJECTIVES(MBO)
– Allows employees to participate in setting their goals and
determining the manner in which they complete their tasks.

• TEAMWORK
– A group of employees with varies job positions have the
responsibility to achieve a specific goals.

• OPEN-BOOK MANAGEMENT
– A form of employee involvement that educates employees on their
contribution to the firms and enables them to periodically assess
their own performance levels.
2.9 MOTIVATION IN PRACTICE