University Assignment: Critical Thinking and Decision Making Report

This report provides a comprehensive overview of critical thinking and decision-making processes, essential for effective leadership and management. It begins by defining critical thinking and its importance in assessing situations from various perspectives, emphasizing the role of argumentation and logical structure. The report then delves into the significance of self-awareness, particularly in the context of leadership, highlighting the Johari window technique and the importance of self-esteem and self-efficacy. Furthermore, the report discusses the practical aspects of decision-making, including problem identification, risk assessment, and the consideration of factors such as the "Who," "Need," "When," "Criteria," and "Risks." It explores the Prospect theory and Psychological contract theory, providing insights into how individuals and organizations make decisions. The Kepner-Tregoe methodology, along with tools like SWOT analysis, the Benjamin Franklin method, and risk analysis, are also discussed, offering practical frameworks for problem-solving and decision-making. The report concludes by emphasizing the practical application of these concepts in both personal and professional contexts, aiming to enhance the ability to approach decisions in a more scientific and process-based manner, rather than relying on traditional methods.

Running head: CRITICAL THINKING AND DECISION MAKING
Critical Thinking and Decision Making
Name of the Student:
Name of the University:
Author Note:

1CRITICAL THINKING AND DECISION MAKING
Introduction
The success of a business largely depends upon the decisions that are taken by its
managers (Ferrell & Fraedrich, 2015). The impacts and consequences of the decisions
decides the future prospect of all organizations. Thus, it is extremely important that
individuals are taught the importance of rational and methodical decision making before they
embark to their particular career path (Lerner et al., 2015). In the process of decision making,
critical thinking is extremely important. In critical thinking we assess a situation and produce
various aspects for that (Pei, 2013). The decision making process too, comprises of several
steps and considerations that finally leads to a successful outcome. In this paper, the various
learning outcomes of decision making and critical thinking has been discussed. Along with it
the implications of those learning in the personal as well as professional life has been
evaluated and the future career prospect that these knowledge might have for an individual
has also been explored.
Topic 1
The first topic that was significant for me was the topic that was covered in week 1. In
this unit, we were introduced to the concept of Critical thinking. This concept focuses on the
enhancement of one’s thinking capability beyond our regular thinking methods (Kallet &
Kallet, 2014). The method that needs to be followed are looking at the issues that are at hand
from a different perspective and then organizing the thoughts that come into the mind. The
basis of critical thinking is in Arguments and Argumentation. The issue that is at hand known
as statements has to be supported by several reasons or justifications and then these
arguments are related to each other to produce a concrete stance related to the issue to
validate the conclusion (Halpern, 2013). It is necessary that use a logical structure of

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argument development to make it much stronger. The two methods of logical development of
a critical thinking are Deductive and Inductive. Both are equally valid depending on the issue.
The learning of this unit is beneficial for everyone. The idea of critical thinking gives
us the concept that every issue has an alternative perspective. Thus, we learned to keep open
mind in every situation. In a learning environment, we learn about many concepts and
theories and generally accept them as given. Critical thinking will allow us to evaluate those
concepts and theories with the help of arguments and past literature as well as real life
examples before we accept them as true. In this way, we gain a better understanding of the
concept as well as our capability of quality decision making enhances. Even in our personal
and professional lives critical thinking is necessary. For example, in personal life when we
face an argument between two persons, it is necessary that we listen to both their perspectives
before we make any judgment and come to any conclusion. It may be so, that both the parties
involved are correct in their own way. Through critical thinking we will be able to come to
this conclusion faster. On the other hand, in a workplace, while facing a challenging situation,
critical thinking method will enable me to assess all the possibilities, pros and cons before I
come to a logical decision or strategy.
Topic 2
The next topic that was extremely significant for me was the learning topic of week 4.
This unit discussed the concept of Self-awareness and its importance for an individual. This
concept is extremely for the development of leaders. It is extremely important for a
successful leader to have a clear understanding of his or her own self (Butler, Kwantes &
Boglarsky, 2014). They consider many things about themselves, such as, their personality
traits, their values, habits, emotions and psychological needs. Introspective view of one’s self
can be gained through talking with other people getting their perspective on the self.

3CRITICAL THINKING AND DECISION MAKING
Admitting any mistakes committed, awareness of emotions and feelings also give an
understanding of the inner self (Batool, 2013). The Johari window technique helps us
understand our own self. The more somebody has openness in their personality more they are
suitable for a leadership opportunities. This openness can be further improved by adopting
new behavior and practicing self-disclosure. Self-esteem and self-efficacy are two important
aspects when it comes to enhancing self-awareness. Successful leaders always possess high
self-esteem and self-efficacy. Understanding these will enable the leaders to create a better
work environment (Riaz, & Khalili, 2014).
The ideas and concepts of self-awareness are important for everyone. This gives us a
clear understanding of the personality traits needed for the making of a good leader. With the
understanding of these qualities, we can exercise to enhance in ourselves these qualities so
that we become a self-aware individual. This learning will also enable us to recognize
leadership qualities among a group of people (Ruggieri & Abbate, 2013). In a workplace, in
future, we might need this ability to identify future leaders so that the organization might
benefit from recruiting the right candidate. In personal life this will also help us in handling
any situation according to the requirement. In certain situation, we sometimes forget our self-
worth and importance. Learning and exercising these qualities will prevent that.
Topic 3
The lessons of week 6 has great significance to me. This unit taught us the aspects of
decision making. To make an informed decision, we must analyze certain contexts and
evaluate the outcome of each of them. The initial stage for a decision making process is to
identify the type of problem. It could one of the five: Simple, Complicated, Complex, Chaotic
and Unclear. Apart from these aspects, some other factors need to be considered. These are:
the Who, the Need, the When, the Criteria and the Risks of the decision. Once that process is

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done, we can engage in further procedures to analyze and evaluate the situation and decide
which outcome will be most favorable (Schwartz, 2016). In most cases, there is a decision
making panel or body in an organization that engage in this process while in our personal
lives, it is our sole decision that everything happens. The needs for any decision gives the
body an insight to the urgency of a problem, its benefits and limitations of the decision
(Ferrell, & Fraedrich, 2015). The When gives the body an idea of the time constraints of the
issue. In an organization, most of the times, decisions cannot be taken at length and in a
leisurely manner. Risk assessment is also necessary before a decision is taken in any scenario.
It gives the decision maker an idea about the upsides and downsides of any decision.
Theoretically, this learning unit gives us insight to a successful decision making
procedure and how executives analyze any possible decision. In any organizational decision
making, many opinions are created regarding any decision (Lieder, Hsu & Griffiths, 2014).
All of them are evaluated using the factors and finally when the decision is taken it is after
judging the pros and cons of that decision. In our practical life it will be of immense help as
this will enable us to think clearly before we take any decision in both our personal and
professional life.
Topic 4
The next impressionable topic was the topic of week 8. In this week we were given
the concept of two theories that direct a decision making process for an individual as well as
an organization. These two theories are Prospect theory and Psychological contract theory.
The Prospect theory demonstrates how people in general choose from alternatives by
favoring loss-aversion rather than a prospect of equal gain (Kahneman & Tversky, 2013).
This theory suggests that, the decision making procedure of individuals are more dependent
upon the probability of loss. It is a common bias that we give more importance to loss than

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the same amount of gain. The second theory is the Psychological Contract theory that focuses
upon mutual verbal agreement (Sherman & Morley, 2015). The probability of the success of
this contract largely depends upon whether the person has made the choice voluntarily. The
three types of psychological contract, Relational Transactional and Hybrid has been
explained. In Relational Psychological contract, there is more employee loyalty and stability.
Any failure to keep up the terms of the contract might lead to less contribution from the
employees. In Transactional Psychological contract, the terms of work are short and thus it is
likely that they might move on if any change in those terms were made without proper
compensation. The Hybrid Psychological model is more modern approach as both positive
aspects of Relational and Transactional contract are assimilated and is much more practical.
In organizational situation, employees depend on these verbal contracts when they work. In
many cases, they might enjoy perks and facilities depending on their performance, that are
promised verbally rather than in written terms (Festing, & Schäfer, 2014). Upholding these
verbal assurances creates job satisfaction within the employees and they are likely to work
more and contribute more to the organization if they see that their job terms are being given
to them.
The understanding of these two concepts have given me insight to how people’s mind
work when it comes to decision making. In real life scenarios I will be able to understand
what will appeal to individuals and what aspects to focus on while dealing with them. Many
jobs would require this understanding like, marketing, human resource management and
sales.
Topic 5
The final topic that appealed to me the most was week 9 lessons. In this week we
learnt about Kepner-Tregoe Methodology of problem solving and the decision making

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process as proposed by Lau. Three useful tools, SWOT analysis, the Benjamin Franklin
method and Risk analysis, that facilitates easy decision making were also introduced(). In the
Kepner-Tregoe method we came to know about a four phase model that comprises of
Situational appraisal, Problem Analysis, Solution Analysis and Potential problem Analysis
(Birtch, Chiang & Van Esch, 2016). Throughout the process, the decision maker answers
many questions like the urgency of the issue, impact, the magnitude, the consequences of the
probable decisions, alternative solutions, vulnerability, risk assessment and their cases
regarding the issue. Lau on the other hand has devised a much simpler way where before
talking any decision, some research should done and some alternative solutions should be
created. The evaluation of the pros and cons of each solution will enable the decision makers
to choose the option that is most applicable and prepare a contingency plan. After application,
they just have to monitor the progresses that are seen and learn from the outcomes and
modify according to it. The frameworks of SWOT is extremely useful in this case as this
gives a clear idea about the Strengths, Weaknesses, Opportunities and Threats that the
decision will bring forth (Felsberger, Oberegger & Reiner, 2016). Another way for decision
making is the Benjamin Franklin method. He suggests that the decision making process
becomes half done if we collect all the necessary details and information regarding the issue
and list out their pros and cons of each. Performing a risk analysis and creating a contingency
plan is another alternative method that we can use for any decision making.
This learning would help us further in taking decisions in our personal as well as
professional. Earlier, we did not have such detailed learning and concept of the decision
making process. With this learning, the approach that we will take will become much more
scientific and process based rather than traditional methods where gut feeling were generally
used (Newell & Shanks, 2014). With the enhancement of this capability, we will perform
better in all aspects of our life.

7CRITICAL THINKING AND DECISION MAKING
Self-Development and Future Career Application
This whole ten week learning session have had a significant impact on me. The topics
that were discussed and the concepts that we were introduced to have changed my thought
process. The concept of critical learning and the processes of how to do that, has helped me
in looking at issue and problems critically. When faced with a problem, rather than reacting
instinctually, I try to look at with different perspectives, come up with several possible
solution and evaluate the impacts of those solutions before finalizing on any one. This has
given me positive results till now.
In future, this will further help me in choosing a correct career prospect. Moreover, in
any business management, the managers have the responsibility to take many decisions.
While performing a job like that I will need these skills of decision making to succeed in my
job. Understanding the psychology of decision making in general will help me understand the
decisions made by the other and I will be able to avoid misunderstanding and bitterness in the
workplace.
Conclusion
From the above discussion it can be concluded that the learning of Critical thinking
and Decision making is extremely important for every individual. It gives us the
understanding on the various rational methods that are involved in the decision making
process. It also gives us the capability to think and decide rationally, after much deliberation
without any whimsical or emotional aspect.

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