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Argues that with increasing global competition it has become of utmost importance for organizations to address business issues creatively. Creativity is best defined as the degree to which an employee demonstrates new ideas or applications for activities and solutions at work. Risk taking is an integral part of the creative process. There are obstacles to the full development of the creative potential of both organizations and individuals. These obstacles can be overcome with various exercises suggested by psychologists. New developments in developing creativity that have become popular in recent years include: the brain skill management programme; use of Fisher association lists; game‐playing in small groups; and establishing a reward‐for‐creativity programme in organizations. It is equally important to implement the proposed solution to determine its effectiveness for solving organizational problems.

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