idea generation final assignment

C. V. Sarath

Nitten Nair

Peters Anyanmu

TO REDUCE THE LEVEL OF UNEMPLOYMENT IN MALTA

INTRODUCTION

Unemployment is a very serious problem in the world as each government

strives hard to reduce the level of unemployment in its country through

various measures like labor polices and the encouragement of foreign

investor. This is as a result of the fact that unemployment leads to economic

hardship in a country which in turn reduces the standard of living in that

country.

According to international labor organization definition, unemployment

occurs when people are without jobs and they have actively looked for work

within the past four weeks.

Until date, there has remained a serious theoretical debate as to regarding the

cause of unemployment in the world. One of such radical schools of thought

which have contributed to the cause of unemployment, is the Marxist school

of thought, propounded by the great economist Karl Marx, who blamed

unemployment on capitalism, the struggle between the proletariat and the

bourgeoisie and therefore advocated for a socialist economy as the way out.

The economic crisis that faced the world in the past few years has lead to the

an increase in the level of unemployment in most countries of the worlds

including Malta, which recently joined the EU and happens to be one of the

smallest countries in terms of size and population in the EU.

Irrespective of its size and population, the level of unemployment in the

country cannot be said to be the lowest in Europe and this happens to be of a

great concern. According to the Time of Malta of 1st February 2011,Malta is

ranked 14th in EU jobless list released in Brussels, with seven percent (7 per

cent), against other European countries like Denmark who is ranked lowest

with (3.2 per cent), the Netherland (3.6 per cent), Estonia (4.3 per cent),

followed by others.

This position occupied by Malta, is something of concern which is why we

are focusing on how to come up with measures to tackle the problem of

unemployment in the country and to close the gap between other European

countries like Denmark. This brings us to the problem of our thinking which

is how to further reduce the level of unemployment in Malta.

THE PROCESS

FRAME WORK

Stage 1 - Mess Finding:

The position occupied by Malta in the EU jobless list according to the Times

of Malta of 1st February 2011, is a thing of serious concern irrespective of

the fact that Malta improved over the last few months. Occupying the

position of 14th in EU jobless list still remains a serious issue when looked at

in comparison to the small population of the country.

While other countries like Denmark are ranked lowest in the list, this has

resulted to a serious concern which has prompted the need to come up with a

plan of action in other to tackle this problem and improve our position not

only in EU, but also in the world at large.

In other to direct all attention towards the aim of our thinking, and to channel

resource both human and material towards its actualization, one of the DATT

thinking tools AGO, was applied in this stage in other to make the objective

know to every body involved, which is the reduction of unemployment rate in

Malta and to strive towards becoming among the third less unemployed

countries in EU by the next five years. This will lead to improvement in the

standard of living of the people, per capita income and also in the reduction

of the crime rate, homeless ratio and government expenditure for the support

of the same class of society.

Stage 2 - Data finding:

At this stage of the thinking process, we are going to do a divergent thinking

to enable use gather all the necessary information related to the problem at

hand and in other to make sure nothing is left out and list out all the facts

related to the situation at hand. The CAF tools will be used to consider all the

factors that play a role in causing unemployment in Malta.

One of such causes of unemployment in Malta

could be attributed to the fact that Malta is a

small island which major source of internal

revenue is tourism which is seasonal. This is a

major player in the cause of unemployment in the

country as most people are out of job when the season is over, as most hotels

and bars who are the main employer of labor tend to close down due to lack

of patronage as a result of the bad weather(winter). This has significantly

contributed to the cause of unemployment in the country as most people

become jobless this period as a result of the drop in the demand for labor

force.

Also, the European labor law which allows any member of any European

country to work in another European country has also contributed to the level

of unemployment in Malta as most people from other European countries

come to Malta to seek for job opportunity, there by taking the place of

citizens. This free labor policy introduced by EU has greatly contributed to

unemployment in the country to the extent that some international companies

located in the country mostly bring their staffs from their home country to

come and work in the country in other to reduce cost of recruiting and

training, this is possible, due to the flexible labor law in the European Union.

The favorable climatic condition of the island has also contributed to the in

flock of migrant due to its warm weather most people tend to relocate to the

island in other to enjoy a better climate, by so doing they seek for

employment thereby increasing the labor market and making it more

competitive. As employers of labor try as much as possible to minimize cost

by hiring those workers that already have experience in the field in other to

avoid extra cost in training. This situation tends to put those citizens who

dose not have the qualification needed due to lack of education or training in

the list of the unemployed thereby increasing the level of unemployment in

the country. So the good climatic condition of the island could be seen as a

blessing in some ways and also a player in the unemployment rate due to the

relocation of more people to the island.

The lack of foreign investors has also contributed to unemployment. Statistics

shows that ninety percent of companies in Malta are made up of SME (small

medium enterprises); these organizations are one of the smallest employers of

labor due to its smallness in size. The lack of foreign investors has greatly

contributed to lack of jobs in the country as the SME; s which makes up the

larger company could only employ few workers.

Finally, the geographical location of Malta also has role to play in causing

unemployment in the country. This is so because the lack of free movement

within and out side the country due to it location in the middle of the sea,

makes it difficult for the free movement of goods and service within other

neighboring countries, as the means of transportation is more expensive

compared to when using other means like road. All this factors as listed has

being seen to be the major player in the cause of unemployment in the

country and any solution to the problem would have to approach this

problems.

Stage 3 -Problem finding:

At this stage we decided to use the PEST analysis as this will give us a

complete understanding of the present situation that has enveloped the

country. The PEST analysis on the other hand will give a broad perspective

with regards to the socio-political aspects that govern the current prevalent

situation.

As this stage concerns with only the problems, we will be looking only at the

negative implications of all the factors that make up the PEST.

ECONOMIC

Lack of incentives for setting up manufacturing industries.

High tax rates for entrepreneurs

High fines for offenders

Lack of incentives for capital investment

Susceptible inflation rates

Change in exchange rate after change of currency

Fluctuating levels of consumer confidence

High variation in disposable income

Spending priorities of the government

Absence of self sufficiency

High costs of labour

POLITICAL

The government not encouraging Foreign Direct Investment.

Government spending is not directed towards increasing employment

opportunities

Competition regulations are non existent

International Trade Regulations

No law on citizen employment regulations(certain percentage of

employees must be from the local work force) for foreign companies

Environmental regulations prevent setting up of companies near

heritage spots

Government has displayed a relaxed attitude towards the manufacturing

industries.

Lack of stricter measures to prevent the entry of illegal immigrants

SOCIAL

Income distribution is highly uneven resulting in fewer entrepreneurial

ventures

Youngsters preferring to leave the country resulting in lack of young

inexperienced labour force to meet demands of a new project.

Ease of movement within the EU prompting immigrants to enter and

saturate the workforce

Increasing number of single households and single parents

Lack of a big/joint family concept

General attitude towards work and leisure

Too many graduates in the arts resulting in over demand for related jobs

Lack of highly technically qualified professionals hindering new

projects

Lack of initiative among the locals

TECHNOLOGICAL

Lack of facilities for new research leading to new technologies

Isolation from mainland Europe

Less frequency of transport to communicate with the rest of the world

Rate of technological obsolesce is low

Slow rate to accept and adopt newer technologies

High cost of electricity, power and fuel

High cost of raw materials

From this list of various problems, we now select and sort out the most

important ones to proceed towards the next stage of the framework. The most

important among the above mentioned would be:

The government not encouraging Foreign Direct Investment






Stage 4 -Idea finding:

Now that we have all the major problems listed out, its time to do some

divergent thinking and come up with solutions for the immediate problem

and in turn find a solution to the final question at hand.

For this idea generation stage, we felt that the CONCEPT FAN would be a

very useful tool as it will lead us to think in many different directions without

losing sight of the actual problem. The concept fan is based on the principle

of a broad question to which a few focal points are assigned and ideas are

generated based on the focal points.

This method is particularly useful when we need to look at various

perspectives to a single problem. Here, we now use the shortlisted problems

faced by Malta based on the PEST analysis to come up with solutions. The

broad question will be the individual problems and the fixed points and ideas

will be generated based on that.

BROAD QUESTION I



Open up markets to foreign investors

Tax rebates for investors in select industries

Incentives and friendly regulations

Government protection and security for investors

Establishment of free zones

Businesses started in parts of Malta, Gozo and Comino could have exclusive rights

Any person of any nationality can start a business without having to be in partnership with a Maltese or EU citizen

Relaxed government regulations in select areas of the country

Lower the market entry barriers

Relax the trade license requirements

Relax the procurement and production laws

Promote free trade even more

BROAD QUESTION II



Alternative sources of energyLong coastline can be used for the generation of hydel power

projects

Wind energy can be harvested due to strong winds

Nuclear energy plants and research facilities can be set up

Reduce exporting of fuel

More available and structured public transportation

More focus on available natural resources

Promote eco friendly products

BROAD QUESTION III



More professionally oriented courses

Technical based subjects to be emphasized on in school

Higher government incentives for students in professional courses

Encourage vocational courses and polytechnic fields of study

Campus placement

Tie ups between the university and major international companies for recruitment

Compulsory international internship for all courses

Job fairs and Job expos on campus

Career/course guidance

Aptitude tests in schools

Common entrance exams for entry into university

Encourage students to participate in programs like ERASMUS etc

BROAD QUESTION IV



Increase exposure through televisionIntroduce new international channels through

cable pkg

Easier availability of satellite television

Introduction of a European career channel

Increase global awarenessInternational newspapers should be made

available locally

Encourage debates and discussions of international incidents more common in schools

and colleges

Encourage public forums and student bodies to be more active

Increase awarenessSimultaneous launch of product with the rest of

Europe

Encourage starting of production units in the country

Educate the public about new products and services

BROAD QUESTION V



Role of the University

Provide stipends for research conducted

Encourage a research friendly environment

Provide state of the art modern research labs

Role of government

Government initiated studies into marine wildlife

Government grants for research in technology

Government sponsored research and development zone

Outside factorsEncourage companies to base their research centers

in Malta

Invite academics and researchers to set up study here

Stronger Intellectual Property rules and easier patent options

BROAD QUESTION VI



Active Coast Guard

Encourage youngsters to join the Coast guard/ Navy

Increase the workforce presently employed

More co operation between the various departments

Stricter punishments

Instant deportation

Imprisonment for employers who employ without valid work permits

No tolerance policy against offenders

Amnesty

Have amnesty portals twice a year for the illegal aliens to leave without punishment

Discourage asylum

Introduce NGO’s like Amnesty International to have an active presence in the country

It is now time to introduce convergent thinking once again to find out which

of the ideas generated can actually be put to use to help solve the question of

unemployment in Malta. The following are the ideas that are most suited to

solving the problem.

The possible solutions:


Relax the procurement and production laws

Businesses started in parts of Malta, Gozo and Comino could have

exclusive rights

Long coastline can be used for the generation of hydel power projects

Nuclear energy plants and research facilities can be set up


Tie ups between the university and major international companies for

recruitment

Simultaneous launch of product with the rest of Europe




Government sponsored research and development zone





Have amnesty portals twice a year for the illegal aliens to leave without

punishment

Stage 5 -Solution finding:

With the present list of possible solutions, it is now time to shortlist and come

up with definite solutions for the same.

For this process we have decided to use a WEIGHTED GRID ANALYSIS to

analyze and come to a conclusion about the same.

The factors on which the weight is assigned are:

Ease of implementation

Time to achieve results

Financial implications

The probability of achieving results

Also, the weights are assigned in the following pattern:

3 = most conducive

2 = conducive

1 = less conducive

0 = least conducive

FACTORS/SOLUTIONS EASE OF TIME FINANCI RESULT TOTAL

IMPLEMEN

TATION

FOR

RESULTS

AL

IMPLICA

TIONS

PROBABI

LITY

Tax rebates for investors in

select industries2 2 1 3 8

Relax the procurement and

production laws 2 1 1 3 7

Businesses started in parts of

Malta, Gozo and Comino could

have exclusive rights3 3 2 3 11

Long coastline can be used for

the generation of hydel power

projects1 2 2 3 8

Nuclear energy plants and

research facilities can be set up 0 1 0 3 4

Encourage vocational courses

and polytechnic fields of study 3 2 2 2 9

Tie ups between the university

and major international

companies for recruitment2 2 3 3 10

Simultaneous launch of product

with the rest of Europe 1 2 3 2 8

Encourage starting of 2 2 3 2 9

production units in the country

Provide stipends for research

conducted 3 2 3 2 10

Government grants for

research in technology 3 1 2 2 8

Government sponsored

research and development zone 3 1 1 2 7

Invite academics and

researchers to set up study here 2 2 3 1 8

Stronger Intellectual Property

rules and easier patent options 2 1 3 2 8

Encourage youngsters to join

the Coast guard/ Navy 2 2 3 1 8

Imprisonment for employers

who employ without valid work

permits3 3 3 3 12

Have amnesty portals twice a

year for the illegal aliens to

leave without punishment2 2 3 3 10

Based on the Weighted grid analysis, it is clear that the best solutions to

tackle our problem are as follows:


Businesses started in parts of Malta, Gozo and Comino could have

exclusive rights

Long coastline can be used for the generation of hydel power projects


Tie ups between the university and major international companies for

recruitment

Simultaneous launch of product with the rest of Europe








Have amnesty portals twice a year for the illegal aliens to leave without

punishment

Stage 6 -Acceptance finding:

For the 6th and final stage of the framework, to gain acceptance of the

framework, we have decided to use a short sequence of the 6 thinking hats.

This is mainly to get a general feeling and acceptance about the solutions that

have emerged and its probability of success.

The sequence results are as follows:

YELLOW HAT

Practical and feasible ideas

Not too investment heavy in total

Results can almost be guaranteed

Implementation will not be a problem

Will not result in any communal or social disturbance

Environmentally not harmful

Steady change can be observed

RED HAT

Feel that the proposed ideas are very good

BLUE HAT

The findings will be put into practice at the earliest

CONCLUSION & REFLECTIONS

From the above process that was applied for creating solutions for reducing

the level of unemployment in Malta, we have concluded with many feasible

options that can be looked upon for resolving the issue.

To increase the employment ratio the government has to take a stance and

come with investments and boost federal infrastructure spending. Cut taxes

for investors from small to big companies. Encourage industries to set-up the

production units, this will help in the generation of more employment and

boosting more exports – giving more economic stability. Government grants

for research and expanding exponentially in the quality, quantity of

technological advancements. Expansion of costal navy and army will also

increase the growth.

The CPS method used as the framework for the process, helped for creation

of more no of ideas and views in every stage which later converged into more

specific solutions for the problem. We used some of the DATT tools like

CAF in the Data Finding for taking into the consideration all the factors that

will give more input for gathering information.

In Problem Finding, we decided to use the PEST tool as it helps us in seeing

the important criteria’s that are involved with the issue of unemployment

from the political, social, economical and technological point of view.

In Idea Finding, we used the Concept fan as we took each broad concept that

was based on the PEST analysis. This helped into diverging into fixed points

which generated more ideas, revolving upon one single issue.

When we converged towards the idea finding end, we got many solutions

which can be implemented. In Solution Finding, we took The Weighted Grid

Analysis to evaluate each and every idea. The factors - Ease of

implementation, time to achieve results, financial implications and

probability of achieving results which helped into finding solutions specific

and feasible.

In Acceptance finding, we used a short sequence of Six Thinking Hats to

discuss the general feeling and solutions for the solutions that we have

reached to. And we have concluded that the whole framework worked very

well in reaching solutions to decrease unemployment level in the Malta.

idea generation final assignment

Documents

level of unemployment

problem of unemployment

cause of unemployment

causes of unemployment

european country

times of malta

time of malta

reduction of unemployment