Critical Thinking

Strategies in Decision-Making
MGT350

week1
Objectives
Identify thinking strategies for framing
business problems
Identify the generally accepted steps of
problem solving and decision making
Apply problem-solving and decision-making
processes to business situations
The Components of The
Critical Thinking Process
Perception
gAssumption
@Emotion
jLanguage
)Argument
gFallacy
_Logic
gProblem Solving
Critical Thinking and Computer Logic

MGT350
FOULED UP FILES ARE THE RESULT OF
FOOLISH NEGLECT AND FINISHED
FILES ARE THE RESULT OF SCIENTIFIC
STUDY CONBINED WITH THE
EXPERIENCE OF MANY YEARS .
Thinking Strategies
*Choose one or more thinking strategies
to help you address a problem or resolve
an issue
-Brainstorm schematically or visually your
answers to each chosen question
4Retain (or record) for later use the
thoughts you captured in step two above
^Use your visualization patterns to guide
your writing if you decide to publish your
findings
Strategy Questions
What causes led to the existing problem? (cause and effect)
What effects will occur from option A? Option B? Option C? (C & E)
What category would the problem or issue fit into (classification)
What are the constituent parts or steps? (division)
Who or what will be affected?
How important are the effects (ranking or prioritization)
What steps or options would permit an event to occur? (process)
How feasible -with pros and cons- is one or more of the options?
What situations are analogous to the problem? (analogy)
How do these situation compare (or contrast)? (comparison/contrast)
what objections exist to the problem or proposed solutions? (argument)
How reasonable or convincing are these objections? (argument)
What is the history of the problem or issue?
How much will options cost?
What scenarios are likely to occur? (examples)
The Domain Bank Story
Assess the managers problem- solving
methods.
4What is insufficient about his approach?
4What, in the managers background leads
him to frame and solve problems in this way?
4How might his approach be improved?
Decision-Making Theory,
Classical Steps
Problem definition and data
collection
Generation of alternatives
Selection of best alternative
Real Life
With every problem comes context,
which includes its own history and
the host of related and unrelated
problems that coexist with it
The decision-making process is a
turbulent stream rather than an
assembly-line operation
People, people, people!
Framing of the Problem
PREPACKAGED ILL-DEFINED

1 2 3 4 5
22.4% 18.2% 22.9% 15.4% 21.1%
Framing
Flow of information
4Systems and structures
4People
4Values
4Direct experience
Making sense of the pieces
Creating problems
Framing
Flow of information
Making sense of the pieces
4You can only process so much (biases)
4Simplify: managers level, consistency
with a proven fact
4Emotional component
4own world perspective
Creating problems
Framing
Flow of information
Making sense of the pieces
Creating problems
4Peeling the onion
4Develop relationships
4Know yourself
4Have an open mind
Decision-Making Steps
Framing The Problem
Framing The
Problem
Making The
Decision
Evaluating The
Decision
1.Identify the problem
2.Define criteria, goals, objectives
3.Evaluate effect of the problem
9.Measure impacts
8.Implement decision
4.Evaluate causes of the problem
5.Frame alternatives
6.Evaluate impacts of alternatives
7.Making the decision
Framing The Problem
Identify the Problem
The concern should be only with the
facts of the situation. There should
be no room for interpretation and no
debate on the facts. This is an
account of where we are
Define criteria, goals, objectives

Evaluate effects of the problem
Framing The Problem
Identify the Problem
Define criteria, goals, objectives
The concern here should be where
we want to be. View the problem in
terms of organizational strategy,
regulatory requirements,
organizational goals and objectives.
Evaluate effects of the problem
Framing The Problem
Identify the Problem
Define criteria, goals, objectives
Evaluate effects of the problem
Quantify the size, timing, and
probability of the effect of the gap
between the first two steps. This step
tells us whether the problem is worth
solving

Making The Decision
Identify causes of the problem
Look for the proximate and remote causes of the
problem. Execute the identification by
brainstorming so that all bases are covered. This
step is important in coming up with meaningful
solutions
Frame alternatives
Evaluate impacts of alternatives
Make the decision
Making The Decision
Identify causes of the problem

Frame alternatives
Come up with possible courses of
action to address the problem and its
causes
Evaluate impacts of alternatives
Make the decision
Making The Decision
Identify causes of the problem

Frame alternatives
Evaluate impacts of alternatives
Quantify the impact on the organization of the
various alternatives ensuring that the alternatives
do not cost more than the problem itself
Make the decision
Making The Decision
Identify causes of the problem

Frame alternatives

Evaluate impacts of alternatives

Make the decision
Base the decision on the most
manageable, cost-effective alternatives

Evaluating The Decision
Implement the Decision
Detail the plan for carrying out the
decision
Measure impacts



Evaluating The Decision
Implement the Decision

Measure impacts
Determine whether the decision is
having the desired results