CHAPTER 2 CREATIVE AND CRITICAL THINKING PROBLEM SOLVING

CHAPTER 2 CREATIVE AND CRITICAL THINKING, PROBLEM SOLVING, AND THEIR ROLES IN BUSINESS AND ACCOUNTING 1

Chapter Overview q What factors are causing the business environment and the role of accounting within that environment to change? q What skills can people develop to better prepare themselves for problem solving and decision making in the rapidly changing business environment? 2

Chapter Overview q How can people learn to think creatively and critically? q How can creative and critical thinking help people make better business decisions? q What are the logical stages of problem solving and decision making? 3

The Changing Business Environment Exhibit 2 -1 4

The Successful Businessperson… q Thrives on changes, seeing change as an opportunity rather than an obstacle. q Is prepared for the opportunity to change. q Is both willing and able to change. q Is devoted to lifelong learning, realizing that continuous learning is the only way to keep up with and be prepared for change. 5

21 st Century Accountants Communication Skills Attributes of 21 st Century accountants Intellectual Skills Interpersonal Skills 6

Creative Thinking q Creative thinking is the process of actively generating new ideas to discover solutions to a problem. Inquisitive Mind (questioning attitude) Creative Thinkers Flexibility Fluency (broad array of ideas for solving a problem) (number of ideas generated for a solution) 7

Creative Thinking Strategies Brainstorming. . Piggybacking Drawing generating plenty of “harebrained” as…well … generating new analogies as connecting reasonably possible ideas from other facts, ideas that are or experiences normally considered separate 8

Questions for Creative Thinkers to Ask q What is it about this idea that stimulates my curiosity? q Can I come up with more ideas? q Can I come up with a great variety of ideas? q Do I develop ideas independently and not eliminate them because of social influences? q Do I consider several alternatives before acting? 9

Critical Thinking q Critical thinking is the process that evaluates the ideas generated by creative thinking. Independent (in process of evaluating ideas) Tolerate Ambiguity/Willingly Defer Judgment (to collect information and evaluate solutions) Critical Thinkers Have Grit! Objectivity (being unbiased in the evaluation process; valuing truth) 10

Questions for Critical Thinkers to Ask q If an issue is controversial, do I accept my first reaction or do I debate the issue in my head first? q Do I tend to reject new evidence that contradicts my current opinion on the subject, or do I evaluate the new evidence and then decide whether to accept it or reject it? 11

Questions for Critical Thinkers to Ask q When I am trying to solve a problem, do I usually accept the first solution that “works” or do I generate multiple solutions and then choose the best one? q When others disagree with me, do I usually listen to them with an open mind and critically evaluate their ideas, or do I try or defend my own ideas? 12

Critical Thinking and Logic q Critical thinkers use a variety of skills in the problem-solving process. Among these skills is the ability to use logic. Inductive logic Reasoning that moves from a specific conclusion to a general statement. LOGIC Reasoning that moves from a general statement to a specific conclusion. Deductive logic 13

Stages in Problem Solving and Decision Making Exhibit 2 -5 14

Accounting Information and Decision Making Exhibit 2 -8 15