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The word critical is derived from the Greek and means to questions, to discuss, to choose , to evaluate, to
make judgment

Greek kritein-to choose, to decide

Greek krites- judge

English criterion-a standard, rule, or method

Critical thinking examines assumptions, discerns hidden values, evaluates evidence, and assesses
conclusion.

"Critical" as used in the expression "critical thinking" connotes the importance or centrality of the
thinking to an issue, question or problem of concern. "Critical" in this context does not mean
"disapproved" or "negative." There are many positive and useful uses of critical thinking, for example
formulating a workable solution to a complex personal problem, deliberating as a group about what
course of action to take, or analyzing the assumptions and the quality of the methods used in scientifically
arriving at a reasonable level of confidence about a given hypothesis. Using strong critical thinking we
might evaluate an argument, for example, as worthy of acceptance because it is valid and based on true
premises. Upon reflection, a speaker may be evaluated as a credible source of knowledge on a given
topic.


 


Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing,
applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by,
observation, experience, reflection, reasoning, or communication, as a guide to belief and action.

In its exemplary form, it is based on universal intellectual values that transcend subject matter divisions:
clarity, accuracy, precision, consistency, relevance, sound evidence, good reasons, depth, breadth, and
fairness. It entails the examination of those structures or elements of thought implicit in all reasoning:
purpose, problem, or question-at-issue, assumptions, concepts, empirical grounding; reasoning leading to
conclusions, implications and consequences, objections from alternative viewpoints, and frame of
reference.

]
Critical thinking - in being responsive to variable subject matter, issues, and purposes ± is incorporated in
a family of interwoven modes of thinking, among them: scientific thinking, mathematical thinking,
historical thinking, anthropological thinking, economic thinking, moral thinking, and philosophical
thinking.

Michael Scriven and Richard Paul

÷  
 
  

   

c. a set of skills to process and generate information and beliefs, and

2. the habit, based on intellectual commitment, of using those skills to guide behavior.

   
  

c. the mere acquisition and retention of information alone, (because it involves a particular way in which
information is sought and treated,)

2. the mere possession of a set of skills, (because it involves the continual use of them,) and

3. the mere use of those skills ("as an exercise") without acceptance of their results.

÷
÷  ÷

—‘ It is a multi dimensional cognitive process. It requires a skillfull application of knowledge and

experience for the sophisticated judgment and evaluation needed in complex situations . it is
interactive ±individual with interpretations made of the word
—‘ It is a process oriented
—‘ It uses structure asa means rather than an end
—‘ It is a frame work within which to interpret knowledge , challenge assumptions,generate
contradictory hypothesis, and develop modifications
—‘ It is affective learning , including moral reasoning and development of values guiding decisions
and activities
—‘ It is awareness of self as the basis for building relationships with a client :conscious awareness of
feelings , beliefs ,values and attitudes
—‘ It is empathy and empowerment

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 —‘ It includes social learning theory
—‘ It is an important outcome of professional socialization
—‘ It involves cognitive skills of comprehension , application, analysis , synthesis, and evaluation
—‘ It is an attitude of critical inquiry that enhances professionalism
—‘ It is fallible
—‘ It may lead to bad decisions and errors in judgment
—‘ It will consistently lead to superior decisions but is sometimes imperfect
—‘ It includes feelings, images, and intutional prompts
—‘ It employs psychological as well as logicalor linear patterns

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÷  ÷



irst as stated above, critical thinking is an active rather than a passive process. It involves individuals
and groups raising questions themselves. Sometimes just asking basic questions such as µWhy?¶, µHow?¶
and µWhat?¶ can prompt us to think much more carefully. However, our questions are not neutral. In the
work of peoplecentred advocacy, two other more fundamental questions can help us probe what is
happening in our contexts and inform our advocacy. Asking who is benefiting and who is losing in a
given situation allows us to sort out major questions of power and privilege.


 ÷  ÷


 á!
"
The importance of critical thinking can be seen in its role in promoting effective planning, reflection,
action and learning.

—‘ It helps us interpret information. An important skill for activists and advocates includes the ability
to critically analyse newspapers, television, radio, speeches, actions and even body language.
—‘ It enablesus to recognize propaganda or misinformation and to become active citizens rather than
always accepting information from those in power.
—‘ It assists us in making better decisions about our actions.
—‘ It helps us see what is not so evident and obvious at first glance, eg. how forces of socialization
and ideology can prevent people from participating in change; and how real power often does not
lie in formal decision making structures.
—‘ It encourages us to think about our own prejudices so we can be more aware of when we are
reproducing the negative power relations that we are trying to challenge.
—‘ It challenges prevailing social, political, cultural and technical ways of thinking and acting that


 —‘ It encourages us to go beyond rationality, using our creativity to go outside the traditional boxes
of knowledge and understanding.

—‘ It helps us to critique, reject or adapt tools and methods.


  
   
 "
—‘ xuring broader planning and learning processes as well as specific reviews but in reality, critical
thinking needs to be part of everyday life and action and not relegated to particular moments of
organized reflection. 
—‘ 
÷  ÷



-‘ xo not believe in anything simply because you have heard it«
-‘ xo not believe in anything simply because it is found written in your religious books.
-‘ xo not believe in anything merely on the authority of your teachers and elders.
-‘ xo not believe in traditions because they have been handed down for many generations.
-‘ [ut after observation and analysis, when you find that anything agrees with reason and is
conducive to the good« of one and all, then accept it and live up to it.
(Siddhartha, founder of [uddhism, 563-483 [.C.)


The list of core critical thinking skills includes observation, interpretation, analysis, inference, evaluation,
explanation and meta-cognition.

There is a reasonable level of consensus among experts that an individual or group engaged in strong
critical thinking gives due consideration to:

 ‘ Evidence through observation

 ‘ Context of judgment
 ‘ Relevant criteria for making the judgment well
 ‘ Applicable methods or techniques for forming the judgment
 ‘ Applicable theoretical constructs for understanding the problem and the question at hand

In addition to possessing strong critical thinking skills, one must be disposed to engage problems and
decisions using those skills. Critical thinking employs not only logic but broadintellectual criteria such as
clarity, credibility, accuracy, precision, relevance, depth, breadth, significance and fairness.

ÿ


÷  ÷


!÷#

Critical thinking calls for the ability to:

 ‘ Recognize problems, to find workable means for meeting those problems

 ‘ Gather and marshal pertinent (relevant) information
 ‘ Recognize unstated assumptions and values
 ‘ Comprehend and use language with accuracy, clarity, and discrimination
 ‘ Interpret data, to appraise evidence and evaluate arguments
 ‘ Recognize the existence (or non-existence) of logical relationships between propositions
 ‘ xraw warranted conclusions and generalizations
 ‘ Put to test the conclusions and generalizations at which one arrives
 ‘ Reconstruct one's patterns of beliefs on the basis of wider experience
 ‘ Render accurate judgments about specific things and qualities in everyday life

In sum:

"A persistent effort to examine any belief or supposed form of knowledge in the light of the evidence that
supports it and the further conclusions to which it tends."[4]

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÷  ÷




There are a number of ways in which groups can work to develop their individual and collective skills in
critical thinking. These include:
—‘ Strengthening capacities to question and challenge assumptions in a constructive way - asking
ourselves questions about our work and assumptions, challenging each other respectfully and
seeking out others who have developed and fine-tuned such skills to assist us
—‘ Carrying out action research efforts where the group consciously sets out to learn and draw
lessons from its work by reflecting on its actions
—‘ Participating in program reviews and reflections
—‘ Engaging in exchanges, activities and debates where people share and discuss lessons, questions
and challenges they face
—‘ Encouraging an atmosphere of debate, learning and support in the organisation.

  
  %  
 
—‘ We reproduce exploitative and negative behaviours that we see in society around us, eg. assuming
that men will take leadership roles
—‘ We accept without questioning justifications, demands and requirements given by organizations
and leaders eg for very detailed information that requires enormous amounts of time to collect,
but that is unlikely to be used.
—‘ We use frameworks, tools and concepts assuming they ought to be useful just because they are in
books or presented by an µexpert¶. If they prove unhelpful in practice we assume the problem lies
with our inability to use them, not their inappropriateness for the situation
—‘ We believe without questioning news reports, propaganda or political commercials without
examining issues of who controls the media or what their agenda might be
—‘ We believe without questioning what we read in books
—‘ We accept that if our organization does something it must be right.


÷

÷  ÷



—‘ There are various constraints to critical thinking that we can try to overcome or minimize
—‘ Mack of motivation

^
 —‘ Mack of experience and support to deal with ideas critically
—‘ Mack of available information
—‘ Power and trust dynamics within the group
—‘ Mack of time or culture of reflection

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 can be regarded as the mental processes (cognitive process) resulting in the
selection of a course of action among several alternatives. Every decision making process
produces a final choice.[c] The output can be an action or an opinion of choice.

  

Human performance in decision making terms has been the subject of active research from
several perspectives. rom a psychological perspective, it is necessary to examine individual
decisions in the context of a set of needs, preferences an individual has and values they seek.
rom a cognitive perspective, the decision making process must be regarded as a continuous
process integrated in the interaction with the environment. rom a normative perspective, the
analysis of individual decisions is concerned with the logic of decision making and rationality
and the invariant choice it leads to.

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It's important to differentiate between problem analysis and decision making. The concepts are
completely separate from one another. Problem analysis must be done first, then the information
gathered in that process may be used towards decision making.[4]

!  
&
( Analyze performance, what should the results be against what they actually are
( Problems are merely deviations from performance standards
( Problem must be precisely identified and described
( Problems are caused by some change from a distinctive feature
( Something can always be used to distinguish between what has and hasn't been effected by a
cause
( Causes to problems can be deducted from relevant changes found in analyzing the problem
( Most likely cause to a problem is the one that exactly explains all the facts

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( Objectives must first be established

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( Objectives must be classified and placed in order of importance
( Alternative actions must be developed
( The alternative must be evaluated against all the objectives
( The alternative that is able to achieve all the objectives is the tentative decision
( The tentative decision is evaluated for more possible consequences
( The decisive actions are taken, and additional actions are taken to prevent any adverse
consequences from becoming problems and starting both systems (problem analysis and decision
making) all over again

STEPS IN PRO[MEM SOM ING STEPS IN xECISION MAKING

c.Identify the problem xefining the problem

2.Gather data to analyze the causes and Analyze the problem

consequences of the problem

3.Explore alternative solutions Alternative course of action

4.Evaluate the alternatives Evaluate the alternatives

5.select the appropriate solutions Experience

6.Implement the solutions Experimentation

7.Evaluate the solutions Taking decision and follow up

CHARACTERISTICS O xECISION MAKING

X‘ xecision making is based on rational thinking

X‘ It is a process of selecting the best from amongst alternatives available
X‘ It involves the evolution of various alternative available
X‘ It is the end product because it is preceded by discussions and deliberations
X‘ xecision making is aimed to achieve organizational goals
X‘ It also involves certain commitments

 &
& ) 

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Some of the decision making techniques people use in everyday life include:

 ‘ ! 
 ÷ Misting the advantages and disadvantages of each option, popularized
by Plato and [enjamin ranklin
 ‘   !   *
 Choosing the alternative with the highest probability-
weighted utility for each alternative (see xecision Analysis) or derivative Possibilianism:
Acting on choices so as not to preclude alternative understandings of equal probability,
including active exploration of novel possibilities and emphasis on the necessity of holding
multiple positions at once if there is no available data to privilege one over the others.
 ‘ 
%&: Accepting the first option that seems like it might achieve the desired result
 ‘ Acquiesce to a person in authority or an "expert", just following orders
 ‘ : lipping a coin, cutting a deck of playing cards, and other random or coincidence
methods
 ‘ Prayer, tarot cards, astrology, augurs, revelation, or other forms of divination
 +á

 

xeveloped by [.  &   there are %  
  that should be involved in all group
decision making. These stages, or sometimes called phases, is important for the decision-making
process to begin

  

 - This phase is where members meet for the first time and start to get to know
each other.

÷% 
 - Once group members become familiar with each other, disputes, little fights and
arguments occur. Group members eventually work it out.

   
 - The group begins to clear up ambiguity in opinions is talked about.

 %    
 - Members finally make a decision, while justifying themselves that it was
the right decision.

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When in an organization and faced with a difficult decision, there are several steps one can take
to ensure the best possible solutions will be decided. These steps are put into seven effective
ways to go about this decision making process (McMahon 2007).

c]
The %    - Outline your goal and outcome. This will able decision makers to see exactly
what they are trying to accomplish and keep them on a specific path.

The   - Gather data. This will help decision makers have actual evidence to help them
come up with a solution.

The   -[rainstorm to develop alternatives. Coming up with more than one solution able
you to see which one can actually work.

The %  -Mist pros and cons of each alternative. With the list of pros and cons, you can
eliminate the solutions that have more cons then pros, making your decision easier.

The %%   - Make the decision. Once you analyze each solution, you should pick the one that
has many pros, and the one that everyone agrees with.

The ,   -Immediately take action. Once the decision is picked, you should implement it
right away.

The      - Mearn from, and reflect on the decision making. This step allows you to see
what you did right and wrong when coming up, and putting the decision to use.

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 ) 

All of us have to make decisions every day. Some decisions are relatively straightforward and
simple: Is this report ready to send to my boss now? Others are quite complex: Which of these
candidates should I select for the job?

Simple decisions usually need a simple decision-making process. [ut difficult decisions typically
involve issues like these:

—‘ #
 &- Many facts may not be known.

—‘ ÷ , &- You have to consider many interrelated factors.
—‘
+  )  - The impact of the decision may be significant.
—‘  
 - Each has its own set of uncertainties and consequences.
—‘   
 - It can be difficult to predict how other people will react.

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With these difficulties in mind, the best way to make a complex decision is to use an effective
process. Clear processes usually lead to consistent, high-quality results, and they can improve the
quality of almost everything we do. In this article, we outline a process that will help improve the
quality of your decisions.

& 
 
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A logical and systematic decision-making process helps you address the critical elements that
result in a good decision. [y taking an organized approach, you're less likely to miss important
factors, and you can build on the approach to make your decisions better and better.

There are six steps to making an effective decision:

c.‘ Create a constructive environment.

2.‘ Generate good alternatives.
3.‘ Explore these alternatives.
4.‘ Choose the best alternative.
5.‘ Check your decision.
6.‘ Communicate your decision, and take action.

 -÷

       


To create a constructive environment for successful decision making, make sure you do the
following:

—‘ 
  .   - xefine what you want to achieve.

—‘       - Know how the final decision will be made, including whether it
will be an individual or a team-based decision.

—‘         - Stakeholder Analysis is important in making an effective

decision, and you'll want to ensure that you've consulted stakeholders appropriately even
if you're making an individual decision. Where a group process is appropriate, the

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 decision-making group - typically a team of five to seven people - should have a good
representation of stakeholders.

—‘      
 - Encourage participants to contribute to the discussions,

debates, and analysis without any fear of rejection from the group. This is one of the best
ways to avoid groupthinkThe Stepladder Technique is a useful method for gradually
introducing more and more people to the group discussion, and making sure everyone is
heard. Also, recognize that the objective is to make the best decision under the
circumstances: it's not a game in which people are competing to have their own preferred
alternatives adopted.

—‘ á
    &/ 
     )   - Ask yourself whether this is really the
true issue. The 5 Whys technique is a classic tool that helps you identify the real
underlying problem that you face.

—‘ # 
 & %   
- The basis of creativity is thinking from a different
perspective. xo this when you first set out the problem, and then continue it while
generating alternatives.

 0 
 
 

This step is still critical to making an effective decision. The more good options you consider,
the more comprehensive your final decision will be.

When you generate alternatives, you force yourself to dig deeper, and look at the problem from
different angles. If you use the mindset µthere must be other solutions out there,' you're more
likely to make the best decision possible. If you don't have reasonable alternatives, then there's
really not much of a decision to make!

Here's a summary of some of the key tools and techniques to help you and your team develop
good alternatives.

cÿ
 —‘  
 


—‘ [rain storming is probably the most popular method of generating ideas.

—‘ Another approach, Reverse [rainstorming, works similarly. However, it starts by

asking people to brainstorm how to achieve the opposite outcome from the one
wanted, and then reversing these actions.

Use the Crawford Slip Writing Technique to generate ideas from a large number
of people. This is an extremely effective way to make sure that everyone's ideas
are heard and given equal weight, irrespective of the person's position or power
within the organization.

—‘ ÷ %%  !    

—‘ The Reframing Matrix uses 4 Ps (product, planning, potential, and people) as the
basis for gathering different perspectives. You can also ask outsiders to join the
discussion, or ask existing participants to adopt different functional perspectives
(for example, have a marketing person speak from the viewpoint of a financial
manager).

—‘ If you have very few options, or an unsatisfactory alternative, use a Concept

an to take a step back from the problem, and approach it from a wider
perspective. This often helps when the people involved in the decision are too
close to the problem.

—‘ Appreciative Inquiry forces you to look at the problem based on what's µgoing
right,' rather than what's µgoing wrong.'

—‘  
* 


This is especially helpful when you have a large number of ideas. Sometimes separate
ideas can be combined into one comprehensive alternative.

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 —‘ Use Affinity xiagrams to organize ideas into common themes and groupings.

 1,    
 

When you're satisfied that you have a good selection of realistic alternatives, then you'll need to
evaluate the feasibility, risks, and implications of each choice. Here, we discuss some of the most
popular and effective analytical tools.

—‘ 

In decision making, there's usually some degree of uncertainty, which inevitably leads to
risk. [y evaluating the risk involved with various options, you can determine whether the
risk is manageable.

—‘ Risk Analysis helps you look at risks objectively. It uses a structured approach for
assessing threats, and for evaluating the probability of events occurring - and what
they might cost to manage.

—‘ 


Another way to look at your options is by considering the potential consequences of

each.

—‘ Six Thinking Hats helps you evaluate the consequences of a decision by looking
at the alternatives from six different perspectives.

—‘ Impact Analysis is a useful technique for brainstorming the µunexpected'

consequences that may arise from a decision.

—‘ $



xetermine if resources are adequate, if the solution matches your objectives, and if the
decision is likely to work in the long term.

c^
 —‘ Starbursting helps you think about the questions you should ask to evaluate an
alternative properly.

—‘ To assess pros and cons of each option, use orce ield Analysis, or use the Plus-
Minus-Interesting approach.

—‘ Cost-[enefit Analysis looks at the financial feasibility of an alternative.

 2÷   3   


After you have evaluated the alternatives, the next step is to choose between them. The choice
may be obvious. However, if it isn't, these tools will help:

—‘ Grid Analysis, also known as a decision matrix, is a key tool for this type of evaluation.
It's invaluable because it helps you bring disparate factors into your decision-making
process in a reliable and rigorous way.

—‘ Use Paired Comparison Analysis to determine the relative importance of various factors.
This helps you compare unlike factors, and decide which ones should carry the most
weight in your decision.

—‘ xecision Trees are also useful in choosing between options. These help you lay out the
different options open to you, and bring the likelihood of project success or failure into
the decision making process.

 4÷   


With all of the effort and hard work that goes into evaluating alternatives, and deciding the best
way forward, it's easy to forget to µsense check' your decisions. This is where you look at the
decision you're about to make dispassionately, to make sure that your process has been thorough,
and to ensure that common errors haven't crept into the decision-making process. After all, we
can all now see the catastrophic consequences that over-confidence, groupthink, and other
decision-making errors have wrought on the world economy.

c‰
The first part of this is an intuitive step, which involves quietly and methodically testing the
assumptions and the decisions you've made against your own experience, and thoroughly
reviewing and exploring any doubts you might have.

A second part involves using a technique like [lindspot Analysis (member only) to review
whether common decision-making problems like over-confidence, escalating commitment,
or groupthink (member only) may have undermined the decision-making process.

A third part involves using a technique like the Madder of Inference (member only) to check
through the logical structure of the decision with a view to ensuring that a well-founded and
consistent decision emerges at the end of the decision-making process.

 5÷
  
á   6


Once you've made your decision, it's important to explain it to those affected by it, and involved
in implementing it. Talk about why you chose the alternative you did. The more information you
provide about risks and projected benefits, the more likely people are to support the decision. 

'''' +á
á 

I--Identify the problem.

x- xescribe all the possible solutions to the problem.

E- Evaluate each solution (pros and cons about each solution).

A-Act on the best solution (choose the best solution and try it).

M-Mearn

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  d     
       & 
     / 
 /'

He calls it a „
 
  
 „process. A utility, he explains, is a technical term used by economists and
philosophers to indicate happiness, pleasure or satisfaction. Subjective indicates that it's your
pleasure, and expected because it is satisfaction or pleasure that you don't yet have, but hope to
get.

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 -+   %&& .  

What is it you wish to achieve?

 0+
 
&  &%&  

[esides the most obvious choices available to you, what other kinds of options can you think of?
 1+   %&  

 

What values are at stake here? If it's an easy or unimportant decision you may not necessarily do
this step. [ut if the decision has a major impact on your wealth, your health or self-respect, then
it's useful to be aware of it.
 2+   
 %   

The importance of the decision will determine how much you invest in it in terms of time, energy
and money. The importance is determined by examining the implicated values.
You may also have to consider the context here as well, a different situation or environment can
mean that a decision that is often not very important can become very significant.
 4+3 &   
  &

Having identified the main alternatives and the values, now decide on which time and energy to
spend making the decision itself. More important decisions are given more time and energy. He
suggests that busy people and nervous wrecks made worse decisions than other people.

]

 5+÷ 
 

&

This step of the 9 step decision making model involves making another decision. The time and
energy you plan to devote will affect the strategy you choose.

And because the strategy you choose may profoundly affect your decision it's important to
choose an appropriate one.

 7+   %&&  

When you examine your options in more detail you may discover other options with different
implicated values. He points out that occasionally you may have to go back to step three to five
and make revisions.

 8+

&  

This is where you compare the options available to you. Again he suggests that seeking advice
from an expert is often easier than making the decision on your own.

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 &  +  

When you're finished doing the evaluation (only as much as it requires!), you make your choice.
He notes that people may still have difficulty at this stage because they fear the consequences of
making a bad decision.

& % á


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 & 
There are many types of decision making and these can be easily categorised into the following 4
groups:

—‘ Rational
—‘ Intuitive
—‘ Recognition primed decision making

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 —‘ The ultimate decision making model





Rational decision making is the commonest of the types of decision making that is taught and
learned when people consider that they want to improve their decision making. These are 

 )  
 models where the emphasis is on listing many potential options and then working out
which is the best. Often the pros and cons of each option are also listed and scored in order of
importance.

The rational aspect indicates that there is considerable reasoning and thinking done in order to
select the optimum choice. [ecause we put such a heavy emphasis on thinking and getting it
right in our society, there are many of these models and they are very popular. People like to
know what the steps are and many of these models have steps that are done in order.

People would love to know what the future holds, which makes these models popular. [ecause
the reasoning and rationale behind the various steps here, is that if you do x, then y should
happen. However, most people have personal experience that the world usually doesn't operate
that way!

   

The second of the types of decision making are the intuitive models. The idea here is that there
may be absolutely no reason or logic to the decision making process. Instead, there is an inner
knowing, or intuition, or some kind of sense of what the right thing to do is.

And there are probably as many intuitive types of decision making as there are people. People
can feel it in their heart, or in their bones, or in their gut and so on. There are also a variety of
ways for people to receive information, either in pictures or words or voices.

People talk about extra sensory perception as well. However, they are still actually picking up
the information through their five senses. Clairsentience is where people feel things,
clairaudience is hearing things and clairvoyance is seeing things.

]]
And of course we have phrases such as 'I smell a rat', ' it smells fishy' and 'I can taste success
ahead'.

Other types of decision making in the intuitive category might include tossing a coin, throwing
dice, tarot cards, astrology, and so on.

    '''

Gary Klein has spent considerable time studying human decision making and his results are very
interesting. He believes that we make d  d49%   in a pattern recognitionway.
He suggests that what we actually do is gather information from our environment in relation to
the decision we want to make. We then pick an option that we think will work. We 
  
 
& and if we still think it will work, we go ahead.

If it does not work mentally, we choose another option and run that through in our head instead.
If that seems to work, we go with that one. We pick scenarios one by one, mentally check them
out, and as soon as we find one that works, we choose it.

He also points out that as we get   ,   , we can     
, and we

make    )&.

Of interest here is that the military in many countries have adapted his methods because they are
considerably more effective than either of the types of decision making we've discussed already.
In fact, you could say that his model is a combination of the above two types of decision making.

  
'''

irstly, before you even make a decision, you establish how and who you want to be. You
obviously want to be in a good state so that you can make good decisions. [ut you also want
to     &  %, and that means knowing who 'yourself' is.

Once you learn how to be solid and centred, then and only then, do you make decisions. And the
decisions are always organised around staying true to yourself and doing things that are good for

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and aligned who you are. xoing things that are on your own path, and that allow you to
become   
  '''

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This are those type of decisions, which, if made once cannot be unmade. Whatever is decided
would than have its repercussions for a long time to come. It commits one irrevocably when
there is no other satisfactory option to the chosen course. A manager should never use it as an
all-or-nothing instant escape from general indecision.

  
This are the decisions that can be changed completely, either before, during or after the agreed
action begins. Such types of decisions allows one to acknowledge a mistake early in the process
rather than perpetuate it. It can be effectively used for changing circumstances where reversal is
necessary.

,  

This types of decisions are not final until the first results appear and prove themselves to be
satisfactory. It requires positive feedback before one can decide on a course of action. It is useful
and effective when correct move is unclear but there is a clearity regarding general direction of
action.

 

 
In this type of decisions, knowledge is derived out of past mistakes. A certain course of action is
selected and is tried out, if the results are positive, the action is carried further, if the results
appear negative, another course is adopted and so on and so forth a trial is made and an error is
occurred. Till the night combination this continues. It allows the manager to adopt and adjust
plans continuously before the full and final commitment. It uses both, the positive and negative
feedback before selecting one particular course of action.

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Here the decisions are made in steps until the whole action is completed. It allows close

]
monitoring of risks as one accumulates the evidence of out- comes and obstacles at every stage.
It permits feedback and further discussion before the next stage of the decision is made.

÷
 
It allows time for contingencies and problems that may crop up later at the time of
implementation. The decision-makers hedge their best of efforts to adopt the night course. It
helps to limit the risks that are inherent to decision- making. Although this may also limit the
final gains. It allows one to scale down those projects which look too risky in the first instance.

÷ 

Such types of decisions can be altered if certain foreseen circumstances arise. It is an µeither / or¶
kind of decision with all options kept open. It prepares one to react if the competition makes a
new move or if the game plan changes radically. It enables one to react quickly to the ever
changing circumstances of competitive markets.

 
& 
Such decisions are put on hold till the decision±makers feel that the time is right. A go-ahead is
given only when required elements are in place. It prevents one from making a decision at the
wrong time or before all the facts are known. It may, at times result into forgoing of
opportunities in the market that needs fast action.

    

 
*


 
 

When a person takes a decision in the organization as an executive it will be an organizational

decision. This decision will have impact on the working of the organization. The power to take
organizational decisions can be delegated from a superior to the subordinate . it known as
organizational decision

  

 

]ÿ
Routine decisions are made repetitively following certain established rules, procedures, policy
matters and need the development and analysis of alternatives . these decisions are basic and
have long term effects

! 
 
 
  

Programmed decision are routine nature and taken within the specified procedures . these
decisions have short term effect and are taken at lower level management

Non programmed are on the other hand non repetitive decisions . the need for such decisions
arise due to specific circumstances .these decisions are taken up at top level management.



  

This type of decisions are based on the number of persons involved in the decision making . if
the decision is taken by one person it is known as individual decisions

Group decisions are taken by a group of persons. The decisions of board of directors or
committees come under this category. This decisions are taken at top level management

!&

  

Policy: policy decisions determine the basic polices of the organizations and are taken at top
level management. The policies at the top become the basis for operative decisions

Operative decisions: these decisions are taken in the light of policies decided by the top
management . operative decisions are less important and are related with day to day operation of
the business


 ÷  
á


-'‘ á

   &

This theory stress on profit maximization .this theory focused on increases profit from the
decision. It related to health care cost and patient outcome

]r
 0'‘ !&
   &

The trust of this theory is on the maximization of customer satisfaction (patient). The manager
acts as a administrative man rather than economic man

1'‘ á
 
   &

This theory is based on the use of madels . this is also known as operational research theory. The
techniques generally used include linear programming. Theory of probability stimulation models
etc

2'‘ ÷

    &

—‘ iews the decision maker as acting world of complete certainy

—‘ Classical decision making faces a clearly defined problem. Knows all possible action
alternative and their consequences
—‘ Choose the optimum alternative

4'‘ 3 
     &

 ‘ Aceepts a world with bounded rationality and views the decision maker as acting
only in terms of what he/she perceive about a given situation
 ‘ The behavior decision maker faces a problem that is not clearly defined . has limited
knowlwdge of possible action alternatives and their consequences

5'‘ 
 
    &

Several statistical tools and methods are available to organize evidence, evaluate risks, and aid in
decision making. The risks of Type I and type II errors can be quantified (estimatedprobability,
cost, expected value, etc.) and rational decision making is improved.

One example shows a structure for deciding guilt in a criminal trial:

]^
  
 



 &
  &

alse Positive
$   % (i.e. guilt reported
True Positive
/ &/ unfairly)
&   

 

alse Negative
$   % (i.e. guilt
True Negative
/  &/ not detected)
&   

÷  
 

  


[iases can creep into our decision making processes. Many different people have made a
decision about the same question (
"Should I have a doctor look at this troubling breast
cancer symptom I've discovered?" "Why did I ignore the evidence that the project was going
over budget?") and then craft potential cognitive interventions aimed at improving decision
making outcomes.

[elow is a list of some of the more commonly debated cognitive biases.

 ‘      
 %    :
''
'÷% 
 
 &&= :  !

-dd1=>We tend to be willing to gather facts that support certain conclusions but disregard
other facts that support different conclusions. Individuals who are highly defensive in this
manner show significantly greater left prefrontal cortex activity as measured by EEG than do
less defensive individuals.[5]

]‰
 ‘ ! 
  
%
%    ± We tend to accept the first alternative that
looks like it might work.
 ‘  
± Unwillingness to change thought patterns that we have used in the past in the face
of new circumstances.
 ‘         ± We actively screen-out information that we do not think is important.
(See prejudice.) In one demonstration of this effect, discounting of arguments with which one
disagrees (by judging them as untrue or irrelevant) was decreased by selective activation of
right prefrontal cortex.[6]
 ‘ %   
 ± We tend to want to see things in a positive light and
this can distort our perception and thinking.[7]
 ‘ ÷ +  
 occurs when we distort our memories of chosen and rejected options
to make the chosen options seem more attractive.
 ‘   & ± We tend to place more attention on more recent information and either ignore or
forget more distant information. (See semantic priming.) The opposite effect in the first set of
data or other information is termed Primacy effect (Plous, c993).
 ‘     
 ± A willingness to believe what we have been told most often and by the
greatest number of different sources.
 ‘  

.   ± xecisions are unduly influenced by initial information that
shapes our view of subsequent information.
 ‘    ± Peer pressure to conform to the opinions held by the group.
 ‘      & 
 ± We reject something if we have a bias against the person,
organization, or group to which the person belongs: We are inclined to accept a statement by
someone we like.
 ‘   
   

 

    ± We look at a decision as a
small step in a process and this tends to perpetuate a series of similar decisions. This can be
contrasted with * +
  
.
 ‘   
& & ± We tend to attribute our success to our abilities and talents, but we
attribute our failures to bad luck and external factors. We attribute other's success to good
luck, and their failures to their mistakes.

]d
 ‘   %%  (Self ulfilling Prophecy) ± We conform to the decision making
expectations that others have of someone in our position.
 ‘ #  

 &
    %   ± We tend to underestimate
future uncertainty because we tend to believe we have more control over events than we
really do. We believe we have control to minimize potential problems in our decisions.

÷

An organized and systematic decision-making process usually leads to better decisions. Without
a well-defined process, you risk making decisions that are based on insufficient information and
analysis. Many variables affect the final impact of your decision. However, if you establish
strong foundations for decision making, generate good alternatives, evaluate these alternatives
rigorously, and then check your decision-making process, you will improve the quality of your
decisions.

Ú