Benefits Of Critical Thinking In Decision Making

Automatic and Critical Thinking

Question:

Write an essay on “Critical Thinking and Managerial Decision-Making”.
 

The course was a great learning experience for me. The contents of the course will not only help me in decision-making but would also support me in my day to day life. The capacity to think rationally and clearly with a focused vision makes a huge difference in the results. The skills of critical thinking are not just confined to a particular subject or any one area, but it has a much broader perspective. It can be effectively implemented in several decision-making situations and could result in a better and a much efficient outcome. The approach helps in analysing the situation not on assumptions, but based on the facts, observations and experiences and thus reaching an appropriate conclusion.

Any decision-making process is initiated by two types of thinking. These are automatic and critical thinking. I would admit that before taking the course, I used to take my decisions based on the assumptions in lesser time for which I may have to repent later. But now I strongly analyse the situation based on the critical thinking and subsequently reach any decision. The analysis takes more time, but the final decision is definitely a better one with lesser flaws. The ten tools of clarity and the inductive and deductive thinking helps me in analysing different situations (Hoeksema, 2010). The vital difference that I observe in myself is taking decisions based on experiences, facts and observations rather than assumptions. The ten tools of clarity act as a vital parameter for critical thinking. It lays emphasis on utilising the experiences and further staying focused. Further, it lays emphasis on inspection and its purpose. The other tools discuss the significance and the need. The tools also talk about foreseeing and devising a backup plan. An ingredient diagram is also prepared for the analysis of the situation. This gives a better picture of the current scenario and the conclusions. Vision also acts as a crucial tool for evaluation and may be used initially as well as in the later stage. This helps in setting the goals and objectives. The thinking coach is the last tool for clarity used during evaluation. The Prospect Theory as proposed by Kahneman and Tversky in the year 1979 also discusses the behavioural aspect of the decision maker who escalates between the alternatives available (Muralidhar, 2006). The decision-making procedures may vary depending on the different situations. They may be simple, complex, complicated, chaotic and unclear. Decisions can be made easily if there is a single person responsible. However, it becomes difficult to delegate one person for decision making. It is very crucial to identify the needs before taking the decision. Risk assessment is also vital before reaching the decision. It is also studied that self-awareness is the key to good leadership. It is very important to know personal Feelings, attitudes, motives, strengths, weaknesses, and desires. The Johari Window proposed by Luft and Ingham in 1955 is a technique to understand the connection with oneself and others (Shenton, 2007). Self-esteem and self-efficacy are two terms associated with self-awareness. The concept of emotional intelligence cannot be ignored while discussing the self-awareness. The theory of Games and Economic behaviour was proposed by Neumann and Morgenstern in the year 1944. The various situations, conditions of the players and other parameters are evaluated in the theory (Einy & Shitovitz, 2003). Psychological contracts were also an important part of learning in the course. They are beliefs laid on promises, related to an exchange agreement between a person and the organisation. There are six features of these contracts. They are a voluntary choice, trust in agreement, multiple contract makers, incompleteness, managing the losses in case of failures and the contract acting as the model of the employment contract (Ellis, 2007). The psychological contracts can be classified into three different types. These are relational, transactional and hybrid contracts. The relational contract is based on trust and loyalty from both the parties. In the transactional contracts both the parties are restricted to the terms and condition. The hybrid contract is a perfect balance of the relational and the transactional contracts. However, the most important part of the contract is that it is successful where both parties are contented at the end. Today, I am not only confident about my own decision, but  I am also able to influence others in decision making. Critical thinking has turned out to be beneficial for me in many aspects. While evaluating any situation, I reach a conclusion by implementing the basic components of reflective thinking which are a reflection, analysis and the planning (Murdoch, 2010). It is not just confined to any particular area of management, finance, research, education or legal professions, but it can be utilised to solve our personal problems related to our day to day lives also. The evaluative approach not only helps in analyzing the situation considering all the parameters but also helps in reaching the most appropriate conclusion. In the present era of globalisation where the economies are guided by the information and technology, it becomes very crucial for individuals to tackle the changes effectively. There is a higher demand for people possessing flexible intellectual skills and their ability to gather information and scrutinise it critically to reach a substantial decision which proves to be beneficial for everyone. Since critical thinking helps in developing such skills, it is also required by companies at their workplaces. Needless to say, this skill has helped me in gaining a lot of confidence due to the improved skills. My personality has evolved from earlier, and I have become an altogether new person due to these skills. It has helped me in improving my language and expression of ideas. I have acquired better presentation skills, and people listen to me with much more interest. I have become a much more creative person than I was before. The innovative approaches of reaching solutions and justifying them with facts and figures have made me a  better speaker with people having trust in me. It also acts as an efficient tool for self-evaluation. It helps me in working on my weak points and finally improving them for a better outcome.  My entire overview of presuming things and further acting on them has changed. The critical thinking exercise of analyzing problems has given me a different perspective (Hannel & Hannel, 1998). I have developed a skill of coming up with multiple apt solutions for problems which help me in reaching a viable decision. I have learned to carry my feelings and expressions in a better manner and not influenced by others. I have also become a more emotionally intelligent person (Austin, 2002). The video diary experience had also given me many learning outcomes. It is a perfect reflective process and a very good stress buster. Every time I watch the video, I relive the entire experience again. It is much more emotional and more healing than writing. It is observed that it is powerfully therapeutic about going through the past experiences with own eyes after so many years. Additionally, it is much easier as compared to writing. The video could be stored for years and would give the same feel, even after watching it after so long. It also helps in improving my communication skills. I can easily catch my flaws in communication while watching the video diary and can work on overcoming them. 

Conclusion

The course module was a great learning experience indeed. It not only increased my knowledge frame but also transformed me into a new person. The skills learned all through the course would help me in my future endeavours. I would not only utilize them at my work but also in my personal life. The critical thinking has given me a new perspective of taking things and ways of handling them. I do not panic over problems now and have become a much calmer person than I was before. I would definitely use my enhanced presentation skills in my workplace for better results. In the end, I would conclude that the course has changed my way of taking things to a great extent.  

References

Austin, E. (2002). Emotional Intelligence in Everyday Life. Intelligence, 30(4), 393-394.

Einy, E. & Shitovitz, B. (2003). Symmetric von Neumann–Morgenstern stable sets in pure exchange economies. Games And Economic Behavior, 43(1), 28-43.

Ellis, J. (2007). Psychological Contracts: Does Work Status Affect Perceptions of Making and Keeping Promises?. Management Communication Quarterly, 20(4), 335-362.

Hannel, G. & Hannel, L. (1998). The Seven Steps to Critical Thinking: A Practical Application Of Critical Thinking Skills. NASSP Bulletin, 82(598), 87-93.

Hoeksema, J. (2010). Peering belowground with increasing clarity: elucidating belowground processes with cutting-edge tools. Plant Soil, 331(1-2), 1-3.

Muralidhar, A. (2006). Modern Prospect Theory: The Missing Link Between Modern Portfolio Theory and Prospect Theory. SSRN Electronic Journal.

Murdoch, D. (2010). Self-Directed Learning Needs Critical Thinking Component. Women In Higher Education, 19(3), 25-25.

Shenton, A. (2007). Viewing information needs through a Johari Window. Reference Services Review, 35(3), 487-496.