This is a one of the word work choices that I use weekly in my Reader's Workshop Daily 5. Using their Word Work Journals, students date their page, and number their paper... then list the actual word as number 1 on their list.
Next students cut apart the letter tiles and manipulate the letters to create new words. Each time the children make a new word, they add it to their list in their journal.
This type of activity gives the teacher a wealth of information about how students process words. For example:
*use of silent "e"
I absolutely LOVE this activity...the students enjoy it too...ESPECIALLY those kiddos that are kinesthetic and work well with their hands!