Decision making

Decision making

How is critical thinking and decision making related (Answer a question (in detail) posted by another student or the instructor)?

Critical thinking is related to the decision making process. While the decision-making process is the primary part of problem-solving, critical thinking is the act of gathering, evaluating and analyzing information in a rather, methodological manner. Practically, critical thinking is a process of thinking clearly via several options and come up with the best option or decision (Caprì et al. 2019). The primary or ultimate goal of decision making is to come up with actionable conclusion while critical thinking is the process of proving whether the specific conclusion is sound or not.

Identify and discuss at least three heuristic decision-making strategies for leaders (Explain, define, or analyze the topic in detail).

The availability heuristic relates to how easily the memory of something heard or seen is retrieved.  The downfall of the availability heuristic is how we tend to attach more importance to the situation and things we can only easily recall (Caprì et al. 2019).  More so, this process can result in personal biases if the decision-maker does not consciously take his or her biases into account.

The representative heuristic entails cognitive bias and determining the probable outcome of an uncertain event or situation based on the previously created biases.  This can be a dangerous heuristic when a decision-maker relies primarily on the easily accessed knowledge versus looking at other options or alternatives (Bazerman, & Moore, 2013).

The impact of heuristic is simply an unconscious mental shortcut which brings about an emotional response (or affect) that aids an individual make quick decisions (Proctor, 2018).  Since mood and feelings are so personal, it is crucial for leaders, and any decision-maker for that matter, to always be cautious of making decisions based purely on emotion.  Logic and common sense must be at the forefront when making decisions of any kind.

Are leaders thinking critically when we use heuristics in strategic decision making? Explain your answer.

A heuristic is a “mental shortcut that permits a person to make a decision, pass judgment, or solve a problem quickly and with the least amount of mental effort” “What is a heuristic”.  Thus, a leader can think critically and engage heuristics in a decision-making process if he or she does not rely solely on heuristics.  Bazerman and Moore (2013) asserted that “when managers become aware of the potential adverse impact of using heuristics, they become capable of deciding when and where to use them, thus minimizing their reliance on problematic heuristics” (Bazerman, & Moore, 2013).

Practical Application: Describe a decision a leader that you are familiar with has recently made. The decision can be of a personal or professional nature. Assess whether the leader seemed to use heuristics vs critical thinking in their decision-making. Discuss why one method would be more effective than the other in reaching the decision.

Previously, one the CEO at my workplace decided to fire two individuals in a matter of ten minutes. The rationale behind the layoffs was that the individuals simply, “they were not doing as well as I want them to,” as quoted by the boss of my company. I feel as though these unexpected layoffs were based on the heuristic approach of effect. I feel as though the aforesaid decision was  majorly based off of emotion and mood—”these employees weren’t working hard enough and therefore, need to be fired!” The method used did not seem to have any thought behind it, let alone, critical thought process. It was a very quick response and solution to an issue that most likely had more to do with the leadership and direction of upper management than with the people who lost their jobs (Abatecola, Caputo, & Cristofaro, 2018). The situation could have been addressed in a much more effective and tactful way if the CEO had explained to these employees his concerns, brainstormed areas of improvement and discussed solutions to problems. Maybe if the said situation involved a critical thinking process, the decision to let these workers go would have been different.