in the context of the steps in the critical thinking process identify the goal of decision making

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Critical Thinking: Step 6: Decision Making

• Steps 1 & 2: Reflection and Analysis
• Step 3: Acquisition of Information
• Step 4: Creativity
• Step 5: Structuring Arguments
• Steps 7 & 8: Commitment and Debate
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Decision Making Process

Step 6: Decision-Making as a Process

(Click on the image to view larger)

7-Step Decision Making Process Infographic

The rational decision making process consists of a sequence of steps designed to rationally develop a desired solution. Typically these steps involve: 

• Identify a problem or opportunity
• Gather information
• Analyze the situation
• Develop options
• Evaluate alternatives
• Select a preferred alternative
• Act on the decision

The infographic below walks through this decision-making process, click on the image to view it full screen.

Decision-Making Toolkit

Mehentee, J. (2014, January 4).  Decision making toolkit: PrOACT - introduction  [Video file]. Retrieved from  https://youtu.be/5MunrGUIgwc?list=PLXZcOGxnrPsJ07IrspMmFrvdn1NBQLvOn

When making an important decision, one that will impact some part of your life, such as your work, your family or your health, you need a decision-making process that will increase the likelihood of realizing a successful outcome. Watch the video above for some helpful advice.

Cuzzle #3 of 5 (Critical Thinking Puzzle)

A friend tells you someone stashed a $50 bill in a novel in the neighborhood library. The friend doesn't know the title of the novel, but goes on to say that the money is between pages 201 and 202 of the unnamed novel.

With this information, do you ransack the library looking for the right novel and the money? Why?

After you spend some time deciding on your answer, click on the image to see if you made the right choice.

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• Next: Steps 7 & 8: Commitment and Debate >>
• Last Updated: Aug 1, 2024 9:49 AM
• URL: https://guides.rasmussen.edu/criticalthinking

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9 Critical Thinking Tools for Better Decision Making

• - November 26, 2021

“A great many people think they are thinking when they are merely rearranging their prejudices.” William James

This article is a companion to my previous article about a Decision-Making Framework for Leaders and will refer to some of the concepts in that post. Today, I’m sharing an overview of 9 critical thinking tools you can use as a leader making decisions for your organisation or team. I have written a more in-depth article on each of the tools and you will find links to those articles below.

Table of Contents

What is critical thinking.

Critical thinking is the mode of thinking – about any subject, content, or problem – in which the thinker improves the quality of his or her thinking by skillfully analyzing, assessing, and reconstructing it.

It entails effective communication and problem-solving abilities, as well as a commitment to overcoming our biases.

Or, to put it another way – critical thinking is the art of thinking about our approach to thinking. It’s about gaining knowledge, comprehending it, applying that knowledge, analyzing and synthesizing.

Critical thinking can happen at any part of the decision making process. And the goal is to make sure we think deeply about our thinking and apply that thinking in different ways to come up with options and alternatives.

Think of it as a construct of moving through our thinking instead of just rushing through it.

Critical Thinking Is An Important Part of Decision-Making

It’s important to understand that critical thinking can sit outside of a specific decision-making process. And by the same token, decision making doesn’t always need to include critical thinking.

But for the purposes of this article, I’m addressing critical thinking within the problem and decision-making context.

And I’m sharing 9 critical thinking tools that are helpful for people at every stage of their leadership journey. There are so many tools out there and I’d love to hear from you if you have a favourite one that you’ve found useful.

So, whether you are:

• just beginning to flex your critical thinking and decision-making muscles
• or an experienced leader looking for tools to help you think more deeply about a problem

There is something here for you.

Let’s dive in.

9 Critical Thinking Tools For Leaders

• Decision Tree
• Changing Your Lens
• Active Listening & Socratic Method
• Decision Hygiene Checklist
• Where Accuracy Lives
• Overcoming Analysis Paralysis

Of course, there are many other tools available. But let’s look at how each of these can improve your decision-making and leadership skills .

1. Decision-Making Tree

The decision making tree can be useful before going into a decision-making meeting to determine how collaborative or inclusive you need to be and who should be included in the discussion on a particular issue.

This tree is a simple yes/no workflow in response to some specific questions that can guide you to identify if you need others to help you make a certain decision and if so, who you should include.

To take a deeper dive into the decision-making tree framework read our latest article.

2. Changing Your Lens

Looking at problems through a different lens is about changing your point of view, changing the context, or changing the reality. Let’s go into each of those a little more.

Point of View

Ask yourself these questions as it relates to the problem at hand.

• Can you change your point of view?
• How is the problem defined from the perspective of the CEO, of the frontline staff, of customers, of adjacent groups? The goal is to look at the problem from the perspective of others within your specific organisation, so adjust these as needed.

They will all look at the problem in different ways as well as define it differently, depending upon their point of view. Understanding all of the viewpoints can give you a deeper understanding of all the ramifications of the problem at hand.

We tend to come at the problem from our own functional perspective. If I work in finance, well, it’s going to be a finance problem. If you ask someone who works in IT, they’ll likely look at the same thing and say, “It’s an IT problem.”

Can you change the context in terms of how you define the problem? Find someone from another area and ask them how they would define the problem. Use their perspective to generate that different point of view.

Change Your Reality

Ask yourself, “What if I …

• Removed some of these constraints?
• Had some of these resources?
• Was able to do X instead of Y?

By changing the reality, you may find a different way to define the problem that enables you to pursue different opportunities.

3. Active Listening & Socratic Method

This is pairing active listening with the Socratic method. Active listening is one of the core skills you’ll want to develop to get better at critical thinking. I also touched on active listening / deep listening in my article on difficult conversations .

Because you need to turn down the volume on your own beliefs and biases and listen to someone else. It’s about being present and staying focused.

Listening Skills include:

• Be present and stay focused
• Ask open-ended and probing questions
• Be aware of your biases
• Don’t interrupt or preempt
• Be curious and ask questions (80/20 talk time)
• Recap facts – repeat back what you heard using their language
• Allow the silence
• Move from Cosmetic>Conversational>Active>Deep Listening

When you are trying to find the problem, talk about what success looks like, and think about what the real question is, you have to be aware of your own biases. The things that resonate with you because it’s what you already believe.

Learn to ask questions and listen for insight.

When you’re trying to understand and gather information, it’s very easy to want to jump in to clarify your question when someone’s thinking.

But they’re actually thinking – so you need to sit back and allow it.

When you marry this type of active listening with some key questions that come from Socrates, it can help you understand problems at a deeper level.

To use this, just highlight one or two questions you’ve never used before to clarify, to understand the initial issue, or to bring up some assumptions. You can take just one question from each area to try out and listen for the answer.

As simple as this sounds, this is part of critical thinking. It’s about uncovering what’s actually going on to get to the root cause of a situation.

To take a deeper dive into the socratic method framework and some scenarios in the worplace read our latest article.

4. Decision Hygiene Checklist

When we think about active listening with great questions, we need to make sure that we are learning what someone else thinks without infecting them with what WE think.

That’s where the Decision Hygiene Checklist comes in. When we’re in this gathering and analysing data phase, you need to make sure you keep that analysis in a neutral environment. Don’t signal your conclusions.

You may want to quarantine people from past decisions, as well. Don’t bring up past decisions or outcomes because you want to get the information from them without it being polluted.

When you’re seeking feedback from others, exercise good decision hygiene in the following ways:

• Quarantine others from your opinions and beliefs when asking for feedback.
• Frame your request for feedback in a neutral fashion to keep from signalling your conclusions.
• Quarantine others from outcomes when asking about past decisions.
• Prior to being amid a decision, make a checklist of the fact and relevant information you would need to provide feedback for such a decision.
• Have the people seeking and giving feedback agree to be accountable to provide all the relevant information, ask for anything that’s not been provided, and refuse to give feedback if the person seeking feedback can’t provide relevant information.

When involved in a group setting, exercise these additional forms of decision hygiene:

• Solicit feedback independently, before a group discussion or before members express their views to one another.
• Anonymize the sources of the views and distribute a compilation to group members for review, in advance of group meetings or discussion.

5. Where Accuracy Lives

Remaining on the flavour of understanding that our own beliefs can compete or pollute reality and our decision making, another approach is to think about where accuracy lives.

The Inside View is from your own perspective, experiences, and beliefs. The Outside View is the way others see the world and the situation you’re in. And somewhere in the middle may be the reality.

This tool is quite simple. Start out with your inside view and describe the challenge from your perspective. Write down your understanding, your analysis, and maybe even your conclusions.

Then it’s almost like De Bono’s six hats where you take that hat off and you look at the outside view. Describe the situation from an outside view. Ask yourself if a co-worker had this problem, how would they view it? How might their perspective differ? What kind of solutions could they offer?

And then you marry those two narratives. One thing about the outside view is that you can get statistics around some of the information you’re looking at.

It can be quite helpful to get a base level of what is actually proven and true, statistically, that is not polluted by the inside view.

Once you’ve run through this process, ask yourself:

• Did this actually change my view?
• Can I see the biases that were sitting there?
• And if Yes, why?

To learn more about how to use this framework and how to overcome some of the obstacles you might encounter read our deeper dive here.

6. The 5 Whys: Root Cause Analysis

This is a really simple tool that starts off by defining the problem or the defect and then continuing to ask why until you get to the 5th Why. This is is usually where you’ll start to discover a possible solution.

Here’s a simple example:

• Problem – I ran a red light.
• Well, why did it happen? I was late for an appointment.
• Why did that happen? Well, I woke up late.
• And why did that happen? My alarm didn’t go off on my phone.
• Why did that happen? I didn’t plug it into the charger.
• And why is that happening? It wasn’t plugged in. It’s because I forgot to plug it in.

So there’s the possible solution – I’ve got to set up a recurring alarm at 9pm to remind me to plug my phone in.

This is a tool perfect for junior members on your team, or ones that come to you with a barrage of questions on a problem. Have them take the 5 Whys template and think it through, ask themselves the 5 why’s.

Interested in learning more about how to use the 5 Why’s framework and how to overcome some of the obstacles you might encounter? Read our latest article with case studies.

7. RAID Log

RAID stands for

• Risks – write down the risks that will have an adverse impact on this?
• Assumptions – list out all the associated assumptions
• Issues – What are some of the issues that have already impacted or could impact the project?
• Dependencies – what are the dependencies

The RAID Log is often used when you’ve got multiple decisions about an ongoing project.

Whether you’ll be assessing your thinking by yourself, or with team members or customers, this is a great way to make sure you’re gathering all of the necessary information including the assumptions, any issues and dependencies.

8. The 7 So-Whats: Consequences of Actions

All of the previous tools are designed to help you define what the problem is. But it’s also important to think about the consequences of actions.

As you grow as a leader, you’ll need to be comfortable understanding both big thinking and little thinking. Big picture and little details so you are confident in your decisions.

A big part of that is understanding the consequences of your actions and decisions. That’s what the 7 So-Whats tool is about.

The 7 So-Whats is similar to the 5 Whys in that you ask the same question repeatedly to get the answer. Start with your recommendation or possible solution and then ask “So, what will that mean” 7 times.

For example, if you need to hire a new sales rep, the first ‘So, what’ would be something like, “We’ll need to have the right job description and salary package for them, and let the team know they’re coming on.”

And then you work your way through the rest of the ‘So, Whats’ to detail out the results or consequences of the action you’re thinking about.

To read more about the 7 So-Whats read our comprehensive article with case studies.

9. Overcoming Analysis Paralysis

A lot of people get caught up in analysis paralysis. I know I do. Whether it’s thinking about moving house or taking on a new hire, you get all the information but you still feel stuck.

What I find is that it’s usually because we are narrowing our focus too much, especially when it comes to advancement in your career or self-promotion.

So here are some questions to help you push through that analysis paralysis. Ask yourself:

• How would I make this decision if I was focused on opening up opportunities for myself / the situation?
• What would I advise my best friend to do? Or What would my successor do in this situation?
• Your caution may be the result of short-term fears, such as embarrassment, that aren’t important in the long run. Can you create a timeline or deadline to make the decision that will give you some mental distance?

Basically, you want to ask yourself what is holding you back. Is it fear? Fear of disappointment? Or that you don’t have enough information?

Perhaps you think you could get more information, but can you get more information in the time available? If not, then make the decision with what you have.

If you hold back from making your decision, what will the impact be for your stakeholders, your career, and how people view you?

The purpose of this tool is to separate yourself from the situation a little bit so you can look at it more subjectively as if you were advising a friend. And push through the paralysis to make the decision.

9 Critical Thinking Tools For Better Decision-Making

Taking time to think about how you think and using tools like these can be the difference between becoming a good leader and a great one.

Use these nine critical thinking tools to empower you to make better decisions for your business, organisation, and career – and feel confident doing so.

For personalised guidance on how best to use critical thinking skills for your business or organisation, drop us a line . We would be happy to partner with you to create a plan tailored to your needs.

Amy Gray is a seasoned executive and business coach who helps growth-minded leaders achieve clarity, confidence, and results. With over 25 years of hands-on experience in senior leadership, marketing, and technology roles, she has a proven track record of empowering leaders to develop business strategies, build high-performance teams, drive customer acquisition, and optimise their bottom line.

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How to Think Critically: Strategies for Effective Decision-Making

Annie Walls

Critical thinking is an essential skill that allows individuals to analyze information, evaluate arguments, and make informed decisions. By employing critical thinking strategies, individuals can overcome biases, consider multiple perspectives, and arrive at well-reasoned judgments. In this article, we will explore the concept of critical thinking, discuss strategies for developing critical thinking skills, examine how critical thinking can be applied in decision-making, and provide tips for improving critical thinking abilities. By the end, readers will have a better understanding of how to think critically and make effective decisions.

Key Takeaways

• Critical thinking involves analyzing information, evaluating arguments, and making informed decisions.
• Developing critical thinking skills requires practicing analytical thinking, logical reasoning, problem-solving, and creativity.
• Applying critical thinking in decision-making involves gathering and evaluating information, identifying assumptions and biases, considering multiple perspectives, and making informed judgments.
• Cognitive biases, such as confirmation bias and availability bias, can hinder critical thinking and decision-making.
• Improving critical thinking skills can be achieved through reflection, seeking feedback, engaging in debates, and continual learning.

Understanding Critical Thinking

Defining critical thinking.

Critical thinking is a vital skill that allows individuals to analyze and evaluate information objectively, enabling them to make informed decisions. It involves the ability to question assumptions, consider multiple perspectives, and identify biases. By developing critical thinking skills , individuals can enhance their problem-solving abilities and become more effective decision-makers.

Importance of Critical Thinking

Critical thinking is a crucial skill that enables individuals to analyze and evaluate information objectively. It helps in making informed decisions, solving complex problems, and avoiding biases and fallacies. Developing critical thinking skills is essential in today's fast-paced and information-driven world.

Characteristics of a Critical Thinker

A critical thinker possesses several key characteristics that set them apart from others. They have the ability to think independently and objectively, questioning assumptions and seeking evidence to support their conclusions. Curiosity is a fundamental trait of a critical thinker, as they are constantly seeking new information and perspectives. They are also open-minded, willing to consider different viewpoints and evaluate them based on their merits. Additionally, critical thinkers are analytical and have strong problem-solving skills, allowing them to break down complex issues into manageable parts and develop effective solutions.

Developing Critical Thinking Skills

Analytical thinking.

Analytical thinking is a crucial skill for critical thinkers. It involves breaking down complex problems into smaller components and examining them systematically. By analyzing data, facts, and evidence, individuals can gain a deeper understanding of the issue at hand. Analytical thinking allows for objective evaluation and logical reasoning, enabling individuals to make informed decisions.

One effective way to present structured, quantitative data is through a Markdown table. Tables can provide a clear and concise overview of information, making it easier to identify patterns and trends. When using a table, it is important to ensure that the formatting is correct and the data is presented in a succinct manner.

In addition to tables, bulleted or numbered lists can be used to present less structured content. Lists are useful for outlining steps, qualitative points, or a series of related items. They provide a clear and organized format that is easy to follow and understand.

Remember, when analyzing data and information, it is important to remain objective and consider all perspectives. Avoid biases and assumptions that may cloud your judgment.

Improving analytical thinking skills requires practice and continual learning. By regularly engaging in analytical exercises and seeking feedback, individuals can enhance their ability to think critically and make sound decisions.

Logical Reasoning

Logical reasoning is a crucial aspect of critical thinking. It involves the ability to analyze and evaluate arguments based on their logical structure and validity. Sound reasoning allows us to make rational decisions and draw accurate conclusions. Here are some key points to consider when engaging in logical reasoning:

• Identify the premises and conclusions of an argument
• Evaluate the strength of the evidence and reasoning
• Recognize logical fallacies

Remember, logical reasoning is not about personal opinions or emotions, but rather about using objective and rational thinking to arrive at well-founded judgments.

Tip: When evaluating arguments, it can be helpful to break them down into their components and assess each part individually.

Problem Solving

Problem solving is a crucial skill in critical thinking. It involves identifying and analyzing problems, generating potential solutions, and evaluating the effectiveness of those solutions. Creativity plays a significant role in problem solving as it allows for the generation of innovative and out-of-the-box solutions. When faced with a problem, it is important to approach it with an open mind and think creatively to find the best possible solution.

Here are some strategies that can be helpful in problem solving:

• Brainstorming : This technique involves generating a large number of ideas without judgment. It encourages free thinking and allows for the exploration of various possibilities.
• Mind mapping : Mind mapping is a visual technique that helps organize thoughts and ideas. It allows for the identification of relationships between different elements and can aid in finding creative solutions.

Remember, problem solving requires both analytical thinking and creativity. By combining these two skills, you can approach problems from different angles and find innovative solutions.

Creativity and Innovation

Creativity and innovation are essential components of critical thinking. Creativity involves generating new ideas, concepts, and solutions, while innovation is the process of implementing these ideas to create value. In the context of decision-making, creativity and innovation play a crucial role in finding unique and effective solutions to problems.

To foster creativity and innovation, individuals can employ various techniques and strategies. Some of these include:

• Brainstorming : This technique involves generating a large number of ideas without judgment or evaluation. It encourages free thinking and allows for the exploration of different possibilities.
• Mind Mapping : Mind mapping is a visual technique that helps organize thoughts and ideas. It allows for the connection of related concepts and the exploration of different relationships.
• Divergent Thinking : Divergent thinking involves thinking outside the box and considering multiple perspectives and possibilities.

By incorporating these techniques, individuals can enhance their creative and innovative thinking abilities, leading to more effective decision-making processes.

Applying Critical Thinking in Decision-Making

Gathering and evaluating information.

Gathering and evaluating information is a crucial step in the critical thinking process. It involves collecting relevant data and facts from reliable sources to inform decision-making. This step helps ensure that decisions are based on accurate and up-to-date information. To gather information effectively, it is important to:

Identifying Assumptions and Biases

When making decisions, it is important to be aware of the assumptions and biases that may influence our thinking. Assumptions are beliefs or ideas that we take for granted without questioning them. They can shape our perception of a situation and affect the choices we make. Biases, on the other hand, are preconceived notions or prejudices that can cloud our judgment. They can lead us to favor certain options or overlook important information.

To identify assumptions and biases, it is helpful to engage in critical thinking and reflection. We can ask ourselves questions like:

• What assumptions am I making about this situation?
• Are these assumptions based on evidence or personal beliefs?
• Am I favoring certain options because of my biases?

By challenging our assumptions and biases, we can make more informed decisions and avoid potential pitfalls. It is important to approach decision-making with an open mind and consider multiple perspectives. This can help us overcome biases and make choices that are based on rational thinking and evidence.

Considering Multiple Perspectives

When making decisions, it is important to consider multiple perspectives to gain a comprehensive understanding of the situation. Empathy plays a crucial role in this process, as it allows us to put ourselves in others' shoes and understand their viewpoints.

One way to incorporate multiple perspectives is by engaging in active listening . This involves giving full attention to the speaker, suspending judgment, and seeking to understand their point of view. By actively listening, we can gain valuable insights and challenge our own assumptions.

Another strategy is to seek diverse opinions . This can be done by involving individuals with different backgrounds, experiences, and expertise in the decision-making process. By doing so, we can uncover blind spots, identify potential risks, and generate innovative solutions.

It is also important to consider the long-term consequences of our decisions. This requires thinking beyond immediate outcomes and considering how different perspectives may impact various stakeholders over time.

Remember, considering multiple perspectives allows us to make more informed and well-rounded decisions.

Making Informed Judgments

Making informed judgments is a crucial aspect of critical thinking. It involves carefully evaluating the available information and considering multiple perspectives before reaching a conclusion. By gathering and analyzing relevant data, we can make more informed decisions that are based on evidence rather than assumptions or biases. It is important to be aware of our own biases and assumptions and actively seek out diverse viewpoints to ensure a well-rounded judgment. Additionally, considering the potential consequences of our decisions can help us make more ethical and responsible choices.

Overcoming Cognitive Biases

Confirmation bias.

Confirmation bias is a common cognitive bias that affects our decision-making process. It refers to the tendency to seek out and interpret information in a way that confirms our preexisting beliefs or hypotheses. This bias can lead us to ignore or dismiss evidence that contradicts our beliefs, and instead, focus on information that supports what we already think.

One way to overcome confirmation bias is to actively seek out information that challenges our beliefs. By exposing ourselves to different perspectives and considering alternative viewpoints, we can broaden our understanding and make more informed decisions.

Here are a few strategies to help overcome confirmation bias:

• Engage in critical thinking and question your own assumptions.
• Seek out diverse sources of information and consider multiple viewpoints.
• Challenge your own beliefs and be open to changing your mind.

Remember, overcoming confirmation bias is crucial for effective decision-making and critical thinking.

Availability Bias

Availability bias is a cognitive bias that occurs when people rely on immediate examples or information that comes to mind when making decisions or judgments. It is a mental shortcut that can lead to errors in thinking and decision-making. When people are influenced by availability bias, they tend to overestimate the likelihood of events or situations that are easily recalled or readily available in their memory. This bias can impact various aspects of life, including personal relationships, financial decisions, and even professional judgments.

Anchoring Bias

Anchoring bias is a cognitive bias that occurs when individuals rely too heavily on an initial piece of information (the anchor) when making decisions or judgments. This bias can lead to errors in judgment and decision-making, as it limits the consideration of other relevant information. For example, if a person is given a high price as the anchor for a product, they may perceive any subsequent lower price as a good deal, even if it is still relatively expensive.

To overcome anchoring bias, it is important to be aware of its influence and actively seek out additional information and perspectives. By considering a wider range of information and challenging the initial anchor, individuals can make more informed and unbiased decisions.

Here are some strategies to overcome anchoring bias:

• Question the initial anchor: Instead of accepting the initial information as the sole basis for decision-making, question its validity and consider alternative anchors.
• Seek diverse perspectives: Engage with different viewpoints and gather a variety of opinions to broaden your understanding of the situation.
• Use decision-making frameworks: Utilize structured decision-making frameworks that encourage a systematic evaluation of all relevant factors.

Remember, anchoring bias can limit your ability to make objective decisions. By actively challenging the initial anchor and considering a wider range of information, you can overcome this bias and make more informed choices.

Hindsight Bias

Hindsight bias is a cognitive bias that refers to the tendency of individuals to believe that an event was more predictable or foreseeable than it actually was, after it has occurred. This bias often leads people to overestimate their ability to have predicted an outcome or to believe that they would have made different decisions if they had known the outcome beforehand.

To overcome hindsight bias, it is important to recognize that the outcome of an event does not necessarily reflect the quality of the decision-making process. It is crucial to evaluate decisions based on the information available at the time and to avoid judging them solely based on the outcome.

Here are some strategies to help overcome hindsight bias:

• Practice self-reflection and analyze your decision-making process without the influence of hindsight.
• Seek feedback from others to gain different perspectives and insights.
• Consider alternative explanations and possibilities that could have influenced the outcome.
• Continually learn and update your knowledge and skills to make more informed decisions in the future.

Remember, overcoming hindsight bias requires conscious effort and a willingness to challenge your own assumptions and beliefs.

Improving Critical Thinking Skills

Practicing reflection.

Reflection is a crucial component of developing critical thinking skills. It involves taking the time to analyze and evaluate our thoughts, actions, and experiences. By reflecting on our decision-making processes, we can gain valuable insights and identify areas for improvement.

One effective way to practice reflection is through journaling. By writing down our thoughts and experiences, we can better understand our own biases, assumptions, and patterns of thinking. Journaling also allows us to track our progress and identify any recurring challenges or obstacles.

Additionally, engaging in meaningful conversations with others can provide different perspectives and challenge our own beliefs. By actively listening and considering alternative viewpoints, we can broaden our understanding and enhance our critical thinking abilities.

Remember, reflection is not a one-time activity but an ongoing practice. By regularly reflecting on our thoughts and actions, we can continue to refine our critical thinking skills and make more informed decisions.

Seeking Feedback

Seeking feedback is an essential part of developing critical thinking skills. By actively seeking input from others, we can gain valuable insights and different perspectives that can help us refine our ideas and improve our decision-making. Feedback can come from various sources, such as colleagues, mentors, or even customers. It is important to approach feedback with an open mind and a willingness to learn and grow. Receiving constructive criticism can be challenging, but it is an opportunity for personal and professional development. By incorporating feedback into our thought process, we can enhance our critical thinking abilities and make more informed judgments.

Engaging in Debates

Engaging in debates is a valuable way to enhance critical thinking skills and broaden your perspective. It allows you to challenge your own beliefs and consider alternative viewpoints. When engaging in debates, it is important to approach the discussion with an open mind and a willingness to listen to others. Active listening is key to understanding different perspectives and finding common ground.

To make the most out of debates, consider the following:

• Prepare : Research the topic beforehand to gather relevant information and evidence to support your arguments.
• Stay focused : Stick to the topic at hand and avoid personal attacks or getting off track.
• Respectful communication : Use respectful language and tone when expressing your opinions and engaging with others.

Remember, the goal of a debate is not necessarily to win, but to exchange ideas and gain a deeper understanding of the topic. By engaging in debates, you can sharpen your critical thinking skills and become a more effective decision-maker.

Continual Learning

Continual learning is a key aspect of developing critical thinking skills. It involves actively seeking out new knowledge and information, and continuously expanding one's understanding of various subjects. By engaging in continual learning, individuals can stay updated with the latest developments in their field and broaden their perspectives. This can be done through various methods such as reading books and articles, attending workshops and seminars, taking online courses, or participating in professional development programs. Embracing a growth mindset and being open to learning from different sources can greatly enhance one's critical thinking abilities.

Improving Critical Thinking Skills is essential in today's fast-paced and complex world. It allows us to analyze information, solve problems, and make informed decisions. Whether you're a student, professional, or entrepreneur, honing your critical thinking skills can greatly benefit your personal and professional life. By developing the ability to think critically, you can navigate through challenges, identify opportunities, and come up with innovative solutions. If you're looking to enhance your critical thinking skills, visit Keynote Speaker James Taylor's website. James Taylor is an internationally recognized leader in business creativity and innovation. His website offers valuable resources, insights, and strategies to help you improve your critical thinking abilities. Don't miss out on this opportunity to take your thinking to the next level!

In conclusion, developing critical thinking skills is essential for effective decision-making. By employing strategies such as analyzing information , evaluating evidence , and considering alternative perspectives , individuals can make more informed choices. Critical thinking allows us to navigate complex situations, challenge assumptions, and arrive at well-reasoned conclusions. It is a valuable skill that can be honed through practice and application in various aspects of life. So, start cultivating your critical thinking abilities today and enhance your decision-making prowess.

Frequently Asked Questions

What is critical thinking.

Critical thinking is the ability to analyze and evaluate information objectively, using logical reasoning and evidence-based decision-making.

Why is critical thinking important?

Critical thinking is important because it helps individuals make informed decisions, solve problems effectively, and avoid biases and fallacies.

What are the characteristics of a critical thinker?

Critical thinkers are open-minded, curious, logical, reflective, and able to consider multiple perspectives.

How can I develop analytical thinking skills?

You can develop analytical thinking skills by practicing observation, analysis, interpretation, and evaluation of information and data.

What is logical reasoning?

Logical reasoning is the process of using valid and reliable evidence to support arguments and make logical conclusions.

How can critical thinking be applied in decision-making?

Critical thinking can be applied in decision-making by gathering and evaluating relevant information, identifying assumptions and biases, considering multiple perspectives, and making informed judgments.

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2.5 Improving the Quality of Decision-Making

• How can a manager improve the quality of her individual decision-making?

Managers can use a variety of techniques to improve their decision-making by making better-quality decisions or making decisions more quickly. Table 2.1 summarizes some of these tactics.

The Importance of Experience

An often overlooked factor in effective decision-making is experience. Managers with more experience have generally learned more and developed greater expertise that they can draw on when making decisions. Experience helps managers develop methods and heuristics to quickly deal with programmed decisions and helps them know what additional information to seek out before making a nonprogrammed decision.

Techniques for Making Better Programmed Decisions

In addition, experience enables managers to recognize when to minimize the time spent making decisions on issues that are not particularly important but must still be addressed. As discussed previously, heuristics are mental shortcuts that managers take when making programmed (routine, low-involvement) decisions. Another technique that managers use with these types of decisions is satisficing. When satisficing , a decision maker selects the first acceptable solution without engaging in additional effort to identify the best solution. We all engage in satisficing every day. For example, suppose you are shopping for groceries and you don’t want to overspend. If you have plenty of time, you might compare prices and figure out the price by weight (or volume) to ensure that every item you select is the cheapest option. But if you are in a hurry, you might just select generic products, knowing that they are cheap enough. This allows you to finish the task quickly at a reasonably low cost.

Techniques for Making Better Nonprogrammed Decisions

For situations in which the quality of the decision is more critical than the time spent on the decision, decision makers can use several tactics. As stated previously, nonprogrammed decisions should be addressed using a systematic process. We therefore discuss these tactics within the context of the decision-making steps. To review, the steps include the following:

• Recognize that a decision needs to be made.
• Generate multiple alternatives.
• Analyze the alternatives.
• Select an alternative.
• Implement the selected alternative.
• Evaluate its effectiveness.

Step 1: Recognizing That a Decision Needs to Be Made

Ineffective managers will sometimes ignore problems because they aren’t sure how to address them. However, this tends to lead to more and bigger problems over time. Effective managers will be attentive to problems and to opportunities and will not shy away from making decisions that could make their team, department, or organization more effective and more successful.

Step 2: Generating Multiple Alternatives

Often a manager only spends enough time on Step 2 to generate two alternatives and then quickly moves to Step 3 in order to make a quick decision. A better solution may have been available, but it wasn’t even considered. It’s important to remember that for nonprogrammed decisions, you don’t want to rush the process. Generating many possible options will increase the likelihood of reaching a good decision. Some tactics to help with generating more options include talking to other people (to get their ideas) and thinking creatively about the problem.

Talk to other people

Managers can often improve the quality of their decision-making by involving others in the process, especially when generating alternatives. Other people tend to view problems from different perspectives because they have had different life experiences. This can help generate alternatives that you might not otherwise have considered. Talking through big decisions with a mentor can also be beneficial, especially for new managers who are still learning and developing their expertise; someone with more experience will often be able to suggest more options.

Be creative

We don’t always associate management with creativity, but creativity can be quite beneficial in some situations. In decision-making, creativity can be particularly helpful when generating alternatives. Creativity is the generation of new or original ideas; it requires the use of imagination and the ability to step back from traditional ways of doing things and seeing the world. While some people seem to be naturally creative, it is a skill that you can develop. Being creative requires letting your mind wander and combining existing knowledge from past experiences in novel ways. Creative inspiration may come when we least expect it (in the shower, for example) because we aren’t intensely focused on the problem—we’ve allowed our minds to wander. Managers who strive to be creative will take the time to view a problem from multiple perspectives, try to combine information in new ways, search for overarching patterns, and use their imaginations to generate new solutions to existing problems. We’ll review creativity in more detail in future chapters.

Step 3: Analyzing Alternatives

When implementing Step 3, it is important to take many factors into consideration. Some alternatives might be more expensive than others, for example, and that information is often essential when analyzing options. Effective managers will ensure that they have collected sufficient information to assess the quality of the various options. They will also utilize the tactics described below: engaging in evidence-based decision-making, thinking critically, talking to other people, and considering long-term and ethical implications.

Do you have the best-quality data and evidence?

Evidence-based decision-making is an approach to decision-making that states that managers should systematically collect the best evidence available to help them make effective decisions. The evidence that is collected might include the decision maker’s own expertise, but it is also likely to include external evidence, such as a consideration of other stakeholders, contextual factors relevant to the organization, potential costs and benefits, and other relevant information. With evidence-based decision-making, managers are encouraged to rely on data and information rather than their intuition. This can be particularly beneficial for new managers or for experienced managers who are starting something new. (Consider all the research that Rubio and Korey conducted while starting Away).

As mentioned previously, it can be worthwhile to get help from others when generating options. Another good time to talk to other people is while analyzing those options; other individuals in the organization may help you assess the quality of your choices. Seeking out the opinions and preferences of others is also a great way to maintain perspective, so getting others involved can help you to be less biased in your decision-making (provided you talk to people whose biases are different from your own).

Are you thinking critically about the options?

Our skill at assessing alternatives can also be improved by a focus on critical thinking . Critical thinking is a disciplined process of evaluating the quality of information, especially data collected from other sources and arguments made by other people, to determine whether the source should be trusted or whether the argument is valid.

An important factor in critical thinking is the recognition that a person’s analysis of the available information may be flawed by a number of logical fallacies that they may use when they are arguing their point or defending their perspective. Learning what those fallacies are and being able to recognize them when they occur can help improve decision-making quality. See Table 2.2 for several examples of common logical fallacies.

Have you considered the long-term implications?

A focus on immediate, short-term outcomes—with little consideration for the future—can cause problems. For example, imagine that a manager must decide whether to issue dividends to investors or put that money into research and development to maintain a pipeline of innovative products. It’s tempting to just focus on the short-term: providing dividends to investors tends to be good for stock prices. But failing to invest in research and development might mean that in five years the company is unable to compete effectively in the marketplace, and as a result the business closes. Paying attention to the possible long-term outcomes is a crucial part of analyzing alternatives.

Are there ethical implications?

It’s important to think about whether the various alternatives available to you are better or worse from an ethical perspective, as well. Sometimes managers make unethical choices because they haven’t considered the ethical implications of their actions. In the 1970s, Ford manufactured the Pinto, which had an unfortunate flaw: the car would easily burst into flames when rear-ended. The company did not initially recall the vehicle because they viewed the problem from a financial perspective, without considering the ethical implications. 10 People died as a result of the company’s inaction. Unfortunately, these unethical decisions continue to occur—and cause harm—on a regular basis in our society. Effective managers strive to avoid these situations by thinking through the possible ethical implications of their decisions. The decision tree in Exhibit 2.6 is a great example of a way to make managerial decisions while also taking ethical issues into account.

Thinking through the steps of ethical decision-making may also be helpful as you strive to make good decisions. James Rest’s ethical decision-making model 11 identifies four components to ethical decision-making:

• Moral sensitivity—recognizing that the issue has a moral component;
• Moral judgment—determining which actions are right vs. wrong;
• Moral motivation/intention—deciding to do the right thing; and
• Moral character/action—actually doing what is right.

Note that a failure at any point in the chain can lead to unethical actions! Taking the time to identify possible ethical implications will help you develop moral sensitivity, which is a critical first step to ensuring that you are making ethical decisions.

Once you have determined that a decision has ethical implications, you must consider whether your various alternatives are right or wrong—whether or not they will cause harm, and if so, how much and to whom. This is the moral judgment component. If you aren’t sure about whether something is right or wrong, think about how you would feel if that decision ended up on the front page of a major newspaper. If you would feel guilty or ashamed, don’t do it! Pay attention to those emotional cues—they are providing important information about the option that you are contemplating.

The third step in the ethical decision-making model involves making a decision to do what is right, and the fourth step involves following through on that decision. These may sound straightforward, but consider a situation in which your boss tells you to do something that you know to be wrong. When you push back, your boss makes it clear that you will lose your job if you don’t do what you’ve been told to do. Now, consider that you have family at home who rely on your income. Making the decision to do what you know is right could come at a substantial cost to you personally. In these situations, your best course of action is to find a way to persuade your boss that the unethical action will cause greater harm to the organization in the long-term.

Step 4: Selecting an Alternative

Once alternative options have been generated and analyzed, the decision maker must select one of the options. Sometimes this is easy—one option is clearly superior to the others. Often, however, this is a challenge because there is not a clear “winner” in terms of the best alternative. As mentioned earlier in the chapter, there may be multiple good options, and which one will be best is unclear even after gathering all available evidence. There may not be a single option that doesn’t upset some stakeholder group, so you will make someone unhappy no matter what you choose. A weak decision maker may become paralyzed in this situation, unable to select among the various alternatives for lack of a clearly “best” option. They may decide to keep gathering additional information in hopes of making their decision easier. As a manager, it’s important to think about whether the benefit of gathering additional information will outweigh the cost of waiting. If there are time pressures, waiting may not be possible.

Recognize that perfection is unattainable

Effective managers recognize that they will not always make optimal (best possible) decisions because they don’t have complete information and/or don’t have the time or resources to gather and process all the possible information. They accept that their decision-making will not be perfect and strive to make good decisions overall. Recognizing that perfection is impossible will also help managers to adjust and change if they realize later on that the selected alternative was not the best option.

This is another point in the process at which talking to others can be helpful. Selecting one of the alternatives will ultimately be your responsibility, but when faced with a difficult decision, talking through your choice with someone else may help you clarify that you are indeed making the best possible decision from among the available options. Sharing information verbally also causes our brains to process that information differently, which can provide new insights and bring greater clarity to our decision-making.

Step 5: Implementing the Selected Alternative

After selecting an alternative, you must implement it. This may seem too obvious to even mention, but implementation can sometimes be a challenge, particularly if the decision is going to create conflict or dissatisfaction among some stakeholders. Sometimes we know what we need to do but still try to avoid actually doing it because we know others in the organization will be upset—even if it’s the best solution. Follow-through is a necessity, however, to be effective as a manager. If you are not willing to implement a decision, it’s a good idea to engage in some self-reflection to understand why. If you know that the decision is going to create conflict, try to think about how you’ll address that conflict in a productive way. It’s also possible that we feel that there is no good alternative, or we are feeling pressured to make a decision that we know deep down is not right from an ethical perspective. These can be among the most difficult of decisions. You should always strive to make decisions that you feel good about—which means doing the right thing, even in the face of pressures to do wrong.

Step 6: Evaluating the Effectiveness of Your Decision

Managers sometimes skip the last step in the decision-making process because evaluating the effectiveness of a decision takes time, and managers, who are generally busy, may have already moved on to other projects. Yet evaluating effectiveness is important. When we fail to evaluate our own performance and the outcomes of our decisions, we cannot learn from the experience in a way that enables us to improve the quality of our future decisions.

Attending fully to each step in the decision-making process improves the quality of decision-making and, as we’ve seen, managers can engage in a number of tactics to help them make good decisions. Take a look at the Ethics in Practice box to see an example of how one particular manager puts these techniques into practice to make good decisions.

Ethics in Practice

Rob ault, project manager, bayside community church.

Bradenton, Florida When it comes to decision-making, ethical dilemmas require particular care. Because managers make many decisions, it should not be surprising that some of those decisions will have ethical implications. With multiple stakeholders to consider, sometimes what is best for one group of stakeholders is not what is best for others. I talked to Rob Ault about his experiences with ethical dilemmas over the course of his career. Rob has been in managerial roles for over 25 years, since he was 19 years old. He told me that he had experienced a number of ethical dilemmas in that time.

Rob has spent most of his career working for for-profit organizations, and for about half of that time he has worked in a union environment. What he has found most frustrating, regardless of environment, was when it was clear to him what was right, but what was right conflicted with what his boss was telling him to do. This included a situation in which he felt an employee should be fired for misbehavior (but wasn’t), as well as situation in which he was asked to fire someone undeservedly. What we mostly talked about, though, was his process. How did he go about making decisions in these challenging situations?

Rob clearly stated that his approach to these situations has changed with experience. What he did early in his career is not necessarily what he would do now. He said that it takes experience and some maturity to recognize that, as a leader, the decisions you make affect other people’s lives. He also explained that a starting point for the decision-making process is always a recognition of the fact that you have been hired to generate a benefit for your company. So a manager’s decisions need to come from the perspective of what is going to be in the best long-term interest of the organization (in addition to what is morally right). This isn’t always easy, because short-term consequences are much easier to observe and predict.

I asked Rob who he talked to prior to making decisions in situations with an ethical component. Rob told me that he felt one of the most important things you should do as a leader is to intentionally create and build relationships with people you trust in the organization. That way you have people you know you can talk to when difficult situations come up. He was very clear that you should always talk to your boss, who will tend to have a broader understanding of what is going on in the context of the larger organization. He also told me that he liked to talk to his father, who happened to work in human resource management for a large Fortune 500 organization. His father was always helpful in providing the perspective of how things were likely to play out long-term if one person was allowed to bend the rules. Rob realized eventually that the long-term consequences of this were almost always negative: once one person is allowed to misbehave, others find out about it and realize that they can do the same thing without repercussions. Rob also seeks out the opinions of other individuals in the organization before reaching decisions with an ethical component; he told me that when he worked in a union environment, he tried to make sure he had a good relationship with the union steward, because it was helpful to get the perspective of someone who was committed to the side of the employee.

The biggest ethical dilemma Rob faced was one that he actually couldn’t talk to me about. He disagreed with what he was being asked to do, and when it was clear that he had no other choice in the matter, he quit his job rather than do something he felt wasn’t right. He accepted a severance package in exchange for signing a nondisclosure agreement, which is why he can’t share any details . . . but it was clear from our conversation that he feels he made the right choice. That particular ethical dilemma makes it clear how challenging managerial decision-making can sometimes be.

• If you were faced with an ethical dilemma, from whom would you seek advice?
• Describe some decisions that might be good for an organization’s profitability in the short-term, but bad for the organization in the long-term.
• What factors would you take into consideration if you were thinking about leaving your job rather than do something unethical?

Concept Check

• Explain what satisficing is and when it may be a good strategy.
• What are the six steps in the decision-making process?
• What are the four steps involved in ethical decision-making?

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Access for free at https://openstax.org/books/principles-management/pages/1-introduction

• Authors: David S. Bright, Anastasia H. Cortes
• Publisher/website: OpenStax
• Book title: Principles of Management
• Publication date: Mar 20, 2019
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-management/pages/1-introduction
• Section URL: https://openstax.org/books/principles-management/pages/2-5-improving-the-quality-of-decision-making

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Critical Thinking In The Decision Making Process

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The decision making process is a key part of problem solving. Critical thinking is one of the basic decision making and problem solving techniques. Critical thinking is the practice of gathering, analyzing, and evaluating information in a methodical manner. Essentially, this is a process for thinking clearly through several options and arriving at the best choice.

The ultimate goal of decision making is to arrive at actionable conclusions, and critical thinking is the process that proves whether the conclusion is sound.

The Critical Thinking Process Involves 5 Steps

1, Identification – Identify the problem and define it accurately. 2. The Solution – Propose a potential solution. 3. Exploration – Create a potential action plan that results in the evaluation of the potential solution. 4. Action – Take the essential steps to complete and implement the action plan. 5. Reevaluate – Review the action plan to determine if it solved the identified problem.

As easy as this process appears to be, its underlying concepts that make critical thinking successful are not understood. Critical thinking is based on four key elements or concepts:

LOGIC – Logic comes into play in discerning direct relationships between causes and effects. Logic is one of the most important skills to have when making decisions because logic enables accurate predictions to be made about the effects of potential solutions on people and systems.

TRUTH – For critical thinking purposes, truth is unbiased data about an event. Unemotional and unbiased facts are an essential part of the critical thinking process as it is used for problem solving. Critical thinking sorts out biases and focuses on documented data that will lend credence to the final conclusion.

CONTEXT – Creating a list of the effects of the final solution means considering the historical impacts of similar solutions. This list should also include extenuating pressures and factors that will or could be impacted by the final solution. Outside elements must be considered; solving one problem but creating other problems is not useful.

ALTERNATIVES – This means looking at potential solutions not currently being used. Critical thinking requires the consideration of new ways of approaching problems that meet current real-world objectives that are based on unbiased and accurate data.

However, the critical thinking process also depends on asking the right critical thinking questions. We can call this step critical questioning. It provides the ability to distinguish biases from facts, observers from stakeholders, and potential solutions from solutions. The importance of appropriate questions in reaching an actionable answer cannot be minimized. A question to open the discussion about critical questions is what does an appropriate question look like? The simple answer is an appropriate question will provide an actionable answer meaning one that will provide additional, helpful information. The next question is how is such a question formulated?

Here are some key points to consider when formulating a critical question:

>A good question is designed to solicit specific information. It must be stated concisely and with a direct meaning.

> Frame the question properly. A question with a clearly stated purpose must be framed correctly to be sure that the person to whom the question is directed understands the specifics question is seeking.

> Use open instead of closed questions. An open question cannot be answered by a yes or a no; it requires elaboration.

> Consider follow-up questions. The answer to your question may indicate that more questions are required to get the information you need.

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This is how effective teams navigate the decision-making process

Zero Magic 8 Balls required.

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Flipping a coin. Throwing a dart at a board. Pulling a slip of paper out of a hat.

Sure, they’re all ways to make a choice. But they all hinge on random chance rather than analysis, reflection, and strategy — you know, the things you actually need to make the big, meaty decisions that have major impacts.

So, set down that Magic 8 Ball and back away slowly. Let’s walk through the standard framework for decision-making that will help you and your team pinpoint the problem, consider your options, and make your most informed selection. Here’s a closer look at each of the seven steps of the decision-making process, and how to approach each one. 

Step 1: Identify the decision

Most of us are eager to tie on our superhero capes and jump into problem-solving mode — especially if our team is depending on a solution. But you can’t solve a problem until you have a full grasp on what it actually is .

This first step focuses on getting the lay of the land when it comes to your decision. What specific problem are you trying to solve? What goal are you trying to achieve? 

How to do it: 

• Use the 5 whys analysis to go beyond surface-level symptoms and understand the root cause of a problem.
• Try problem framing to dig deep on the ins and outs of whatever problem your team is fixing. The point is to define the problem, not solve it. 

⚠️ Watch out for: Decision fatigue , which is the tendency to make worse decisions as a result of needing to make too many of them. Making choices is mentally taxing , which is why it’s helpful to pinpoint one decision at a time. 

2. Gather information

Your team probably has a few hunches and best guesses, but those can lead to knee-jerk reactions. Take care to invest adequate time and research into your decision.

This step is when you build your case, so to speak. Collect relevant information — that could be data, customer stories, information about past projects, feedback, or whatever else seems pertinent. You’ll use that to make decisions that are informed, rather than impulsive.

• Host a team mindmapping session to freely explore ideas and make connections between them. It can help you identify what information will best support the process.
• Create a project poster to define your goals and also determine what information you already know and what you still need to find out. 

⚠️ Watch out for: Information bias , or the tendency to seek out information even if it won’t impact your action. We have the tendency to think more information is always better, but pulling together a bunch of facts and insights that aren’t applicable may cloud your judgment rather than offer clarity. 

3. Identify alternatives

Use divergent thinking to generate fresh ideas in your next brainstorm

Blame the popularity of the coin toss, but making a decision often feels like choosing between only two options. Do you want heads or tails? Door number one or door number two? In reality, your options aren’t usually so cut and dried. Take advantage of this opportunity to get creative and brainstorm all sorts of routes or solutions. There’s no need to box yourselves in. 

• Use the Six Thinking Hats technique to explore the problem or goal from all sides: information, emotions and instinct, risks, benefits, and creativity. It can help you and your team break away from your typical roles or mindsets and think more freely.
• Try brainwriting so team members can write down their ideas independently before sharing with the group. Research shows that this quiet, lone thinking time can boost psychological safety and generate more creative suggestions .

⚠️ Watch out for: Groupthink , which is the tendency of a group to make non-optimal decisions in the interest of conformity. People don’t want to rock the boat, so they don’t speak up. 

4. Consider the evidence

Armed with your list of alternatives, it’s time to take a closer look and determine which ones could be worth pursuing. You and your team should ask questions like “How will this solution address the problem or achieve the goal?” and “What are the pros and cons of this option?” 

Be honest with your answers (and back them up with the information you already collected when you can). Remind the team that this isn’t about advocating for their own suggestions to “win” — it’s about whittling your options down to the best decision. 

How to do it:

• Use a SWOT analysis to dig into the strengths, weaknesses, opportunities, and threats of the options you’re seriously considering.
• Run a project trade-off analysis to understand what constraints (such as time, scope, or cost) the team is most willing to compromise on if needed. 

⚠️ Watch out for: Extinction by instinct , which is the urge to make a decision just to get it over with. You didn’t come this far to settle for a “good enough” option! 

5. Choose among the alternatives

This is it — it’s the big moment when you and the team actually make the decision. You’ve identified all possible options, considered the supporting evidence, and are ready to choose how you’ll move forward.

However, bear in mind that there’s still a surprising amount of room for flexibility here. Maybe you’ll modify an alternative or combine a few suggested solutions together to land on the best fit for your problem and your team. 

• Use the DACI framework (that stands for “driver, approver, contributor, informed”) to understand who ultimately has the final say in decisions. The decision-making process can be collaborative, but eventually someone needs to be empowered to make the final call.
• Try a simple voting method for decisions that are more democratized. You’ll simply tally your team’s votes and go with the majority. 

⚠️ Watch out for: Analysis paralysis , which is when you overthink something to such a great degree that you feel overwhelmed and freeze when it’s time to actually make a choice. 

6. Take action

Making a big decision takes a hefty amount of work, but it’s only the first part of the process — now you need to actually implement it. 

It’s tempting to think that decisions will work themselves out once they’re made. But particularly in a team setting, it’s crucial to invest just as much thought and planning into communicating the decision and successfully rolling it out. 

• Create a stakeholder communications plan to determine how you’ll keep various people — direct team members, company leaders, customers, or whoever else has an active interest in your decision — in the loop on your progress.
• Define the goals, signals, and measures of your decision so you’ll have an easier time aligning the team around the next steps and determining whether or not they’re successful. 

⚠️Watch out for: Self-doubt, or the tendency to question whether or not you’re making the right move. While we’re hardwired for doubt , now isn’t the time to be a skeptic about your decision. You and the team have done the work, so trust the process. 

7. Review your decision

9 retrospective techniques that won’t bore your team to tears

As the decision itself starts to shake out, it’s time to take a look in the rearview mirror and reflect on how things went.

Did your decision work out the way you and the team hoped? What happened? Examine both the good and the bad. What should you keep in mind if and when you need to make this sort of decision again? 

• Do a 4 L’s retrospective to talk through what you and the team loved, loathed, learned, and longed for as a result of that decision.
• Celebrate any wins (yes, even the small ones ) related to that decision. It gives morale a good kick in the pants and can also help make future decisions feel a little less intimidating.

⚠️ Watch out for: Hindsight bias , or the tendency to look back on events with the knowledge you have now and beat yourself up for not knowing better at the time. Even with careful thought and planning, some decisions don’t work out — but you can only operate with the information you have at the time. 

Making smart decisions about the decision-making process

You’re probably picking up on the fact that the decision-making process is fairly comprehensive. And the truth is that the model is likely overkill for the small and inconsequential decisions you or your team members need to make.

Deciding whether you should order tacos or sandwiches for your team offsite doesn’t warrant this much discussion and elbow grease. But figuring out which major project to prioritize next? That requires some careful and collaborative thought. 

It all comes back to the concept of satisficing versus maximizing , which are two different perspectives on decision making. Here’s the gist:

• Maximizers aim to get the very best out of every single decision.
• Satisficers are willing to settle for “good enough” rather than obsessing over achieving the best outcome.

One of those isn’t necessarily better than the other — and, in fact, they both have their time and place.

A major decision with far-reaching impacts deserves some fixation and perfectionism. However, hemming and hawing over trivial choices ( “Should we start our team meeting with casual small talk or a structured icebreaker?” ) will only cause added stress, frustration, and slowdowns. 

As with anything else, it’s worth thinking about the potential impacts to determine just how much deliberation and precision a decision actually requires. 

Decision-making is one of those things that’s part art and part science. You’ll likely have some gut feelings and instincts that are worth taking into account. But those should also be complemented with plenty of evidence, evaluation, and collaboration.

The decision-making process is a framework that helps you strike that balance. Follow the seven steps and you and your team can feel confident in the decisions you make — while leaving the darts and coins where they belong.

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What Is a Decision-Making Model and How To Choose a Best One

Every decision, whether it’s about long-term strategy or day-to-day operations, impacts the path a company takes. To simplify business planning and ensure smart choices, it’s helpful to understand and use different decision-making models. In this guide, we’ll cover some of the best models that business leaders can use to improve their planning processes.

What is a Decision Making Model?

A decision making model is a tool that helps people and organizations make well-informed choices. These models often include a series of steps or criteria that guide the decision-making process , ensuring that all relevant factors are considered. They can be used for simple decisions as well as complex strategic planning , and can be customized to fit different situations.

Key characteristics of a decision-making model:

• Provide step-by-step guidance for decision makers, from problem definition to solution evaluation.
• Offer a structured framework for gathering information, assessing criteria, and considering options.
• Emphasize using data and logical reasoning over emotions or biases.
• Can be adjusted for different situations, from personal choices to complex business decisions.
• Use tools like decision tree templates , cost-benefit analysis, SWOT analysis , or scenario planning to aid in decision making.

Different decision-making models have specific strengths and weaknesses. The model chosen depends on factors such as decision complexity, available information, and the decision maker’s preferences. Ultimately, decision-making models offer a structured approach to improve decision quality and effectiveness in various contexts.

Why Use a Decision Making Model

Using a decision-making model offers several advantages that can significantly improve the quality and effectiveness of decision-making processes:

• Structured approach : It organizes decision-making into clear steps, making it easier to understand and follow.
• Objectivity : Models encourage using facts and logic rather than emotions, leading to more reliable decisions.
• Better evaluation : They help compare options thoroughly, ensuring the best choice based on defined criteria.
• Risk management : Models consider risks, helping to minimize potential negative outcomes.
• Improved communication : They promote transparency and clear reasoning, improving understanding and support.
• Adaptability : Models can be adjusted for different situations, from personal decisions to complex business choices.
• Continuous improvement : Using models allows learning from outcomes, improving decision-making over time.

Decision Making Model - Which One to Use?

Here are 6 structured decision-making models for businesses to make effective decisions to minimize risks, optimize resources, and achieve sustainable growth.

1. Rational Decision Making Model

The Rational Decision-Making Model is a structured and sequential approach to decision-making, aimed at making logical and well-thought-out choices. This model involves a series of steps designed to ensure that decisions are made based on objective data and thorough analysis, minimizing the influence of biases and emotions.

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Steps in the rational decision making process

• Identifying the decision : Clearly defining the problem or opportunity that requires a decision.
• Gathering information : Collecting relevant data and information related to the decision.
• Analyzing information : Assessing the information to identify potential solutions.
• Developing alternatives : Generating possible options or courses of action.
• Evaluating alternatives : Comparing alternatives based on predetermined criteria.
• Making the decision : Selecting the best alternative based on the analysis.
• Implementing the decision : Putting the chosen decision into action.
• Evaluating the outcome : Assessing the results and adjusting strategies if necessary.

When to use it

The rational model is ideal for strategic decisions such as market entry strategies, product launches, and major investments where a thorough analysis of costs, benefits, and risks is crucial.

• Decisions need to be made based on clear, objective criteria.
• There is sufficient time to gather and analyze information.
• The decision has significant long-term implications.
• Multiple stakeholders are involved, and a transparent process is required.

Criticisms and limitations

Critics argue that real-world decisions often involve uncertainty and incomplete information, making strict adherence to the rational model impractical in all situations.

2. Intuitive Decision Making Model

The intuitive decision-making model relies on a person’s instinct and gut feelings rather than structured analysis. This model is often used when time is limited, and decisions need to be made quickly. It leverages the decision-maker’s experience and subconscious knowledge to arrive at a solution.

• Intuitive decision-making is particularly useful in situations where:
• Time is of the essence, and a quick decision is required.
• There is a high level of uncertainty and limited information available.
• The decision-maker has significant experience and expertise in the relevant field.
• Creative solutions are needed, and traditional models may not apply.

Benefits and limitations

Like any decision-making model, the intuitive approach has its pros and cons:

• Speed: Decisions can be made quickly, which is crucial in fast-paced environments.
• Flexibility: Allows for creative and innovative solutions that structured models might overlook.
• Experience-based: Utilizes the decision-maker’s expertise and subconscious knowledge.

Limitations

• Subjectivity: Decisions can be biased by personal feelings and experiences.
• Lack of transparency: The rationale behind decisions may not be clear to others.
• Risk of error: Without structured analysis, there is a higher chance of making mistakes.

3. Bounded Rationality Decision Making Model

The bounded rationality decision-making model acknowledges that while individuals aim to make rational decisions, their cognitive limitations and the complexity of the environment often constrain them. This model, introduced by Herbert A. Simon, suggests that decision-makers operate within the bounds of their knowledge and cognitive capacity, leading to ‘satisficing’—seeking a solution that is good enough rather than optimal.

This model is particularly useful in scenarios where:

• Information is incomplete or imperfect.
• Time constraints limit the decision-making process.
• Complexity and uncertainty are high.
• Decision-makers have limited cognitive resources.

For instance, in fast-paced business environments where quick decisions are necessary, the bounded rationality model helps in making practical and timely choices.

Benefits and Limitations

Understanding the benefits and limitations of the bounded rationality model can help in its effective application:

• Encourages practical decision-making within real-world constraints.
• Reduces the pressure to find the perfect solution, thus speeding up the process.
• Helps in managing complexity by focusing on feasible options.

Limitations:

• May lead to suboptimal decisions due to limited information and cognitive biases.
• Can result in satisficing rather than optimizing, potentially overlooking better alternatives.

4. Vroom-Yetton Decision Making Model

The Vroom-Yetton decision-making model is a leadership-based framework that helps managers determine the best approach to decision-making based on the situation. Developed by Victor Vroom and Philip Yetton, this model emphasizes the importance of situational factors in choosing the most effective decision-making style. It categorizes decisions into five types, ranging from autocratic to consultative to group-based, allowing leaders to adapt their approach to the specific needs of the situation.

Steps in the Vroom-Yetton Model

The Vroom-Yetton model involves a series of steps to guide leaders through the decision-making process:

• Identify the problem: Clearly define the issue that needs to be addressed.
• Determine the decision’s importance: Assess the significance of the decision and its potential impact on the organization.
• Evaluate the level of team involvement: Decide how much input from team members is necessary for making the decision.
• Select the decision-making style: Choose the appropriate style (autocratic, consultative, or group-based) based on the situational factors.
• Implement the decision: Execute the chosen course of action and monitor its outcomes.

When to use the Vroom-Yetton model

The Vroom-Yetton model is particularly useful in situations where the decision’s complexity and the need for team input vary. It is ideal for:

• High-stakes decisions that require thorough analysis and team consensus.
• Situations where the leader needs to balance efficiency with team involvement.
• Scenarios where the decision’s impact on team morale and commitment is significant.

By using this model, leaders can ensure that they are making informed decisions that consider both the situational context and the team’s input.

5. Recognition-Primed Decision Making Model

The Recognition-Primed Decision-Making (RPD) model is a decision-making process that relies on the experience and intuition of the decision-maker. Developed by Gary Klein, this model is particularly useful in high-pressure situations where quick decisions are necessary. The RPD model combines situational assessment with pattern recognition to arrive at a decision without extensive analysis.

Steps in the recognition-primed model

• Situation assessment : The decision-maker quickly assesses the situation based on their experience and knowledge.
• Pattern recognition : They identify patterns that match previous experiences.
• Action generation : The decision-maker generates a course of action based on the recognized pattern.
• Evaluation : The proposed action is mentally simulated to predict its outcome. If the outcome is satisfactory, the action is implemented; if not, another action is generated and evaluated.

When to use the recognition-primed model

The RPD model is ideal for situations that require rapid decision-making, such as emergency response, military operations, and high-stakes business decisions. It is particularly effective when the decision-maker has extensive experience and can quickly recognize patterns and predict outcomes.

• Enables quick decision-making in high-pressure situations.
• Leverages the experience and intuition of the decision-maker.
• Reduces the need for extensive data analysis.
• Relies heavily on the experience of the decision-maker, which may not always be accurate.
• May lead to biased decisions if the decision-maker’s experience is limited or flawed.

6. Consensus Decision-Making Model

The consensus decision-making model is a collaborative approach where all members of a group contribute to and agree on a decision. Unlike majority rule, consensus seeks to find solutions that everyone can support, or at least live with. This model emphasizes inclusivity, equal participation, and the integration of diverse perspectives, making it particularly effective in team settings and organizational planning.

Steps in consensus decision-making

• Proposal development: A proposal is created based on the group’s initial discussions and ideas.
• Open discussion: The proposal is discussed openly, allowing all members to voice their opinions, concerns, and suggestions.
• Modification: The proposal is modified to address concerns and incorporate suggestions, aiming to reach a version that everyone can support.
• Agreement: The group seeks unanimous agreement or at least a general consensus where no one strongly opposes the decision.
• Implementation: Once consensus is reached, the decision is implemented with the full support of the group.

When to use the consensus decisionnmaking model

The consensus decision-making model is ideal for situations where:

• Inclusivity and equal participation are crucial.
• The decision impacts all members of the group significantly.
• Long-term commitment and buy-in from all members are necessary.
• There is a need to integrate diverse perspectives and expertise.

Understanding and using different decision-making models can greatly improve how decisions are made in both personal and professional situations. Whether you are using structured approaches like rational decision making and decision tree analysis, relying on intuition and creativity, or embracing models that acknowledge practical constraints like bounded rationality, each model has its unique benefits and insights, helping to enhance the effectiveness and outcomes of decision-making processes.

Choosing the right decision making model based on the specific situation helps stakeholders to be clear, objective, and aligned with organizational goals. Continuously evaluating and adapting these models enables individuals and teams to improve their decision-making skills over time, leading to better outcomes and sustainable success. Using a variety of decision-making models empowers leaders to navigate complexities, seize opportunities, and effectively manage risks in today’s dynamic environments.

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

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Rethinking clinical decision-making to improve clinical reasoning

Salvatore corrao.

1 Department of Internal Medicine, National Relevance and High Specialization Hospital Trust ARNAS Civico, Palermo, Italy

2 Dipartimento di Promozione della Salute Materno Infantile, Medicina Interna e Specialistica di Eccellenza “G. D’Alessandro” (PROMISE), University of Palermo, Palermo, Italy

Christiano Argano

Associated data.

The original contributions presented in this study are included in the article/supplementary material, further inquiries can be directed to the corresponding author.

Improving clinical reasoning techniques is the right way to facilitate decision-making from prognostic, diagnostic, and therapeutic points of view. However, the process to do that is to fill knowledge gaps by studying and growing experience and knowing some cognitive aspects to raise the awareness of thinking mechanisms to avoid cognitive errors through correct educational training. This article examines clinical approaches and educational gaps in training medical students and young doctors. The authors explore the core elements of clinical reasoning, including metacognition, reasoning errors and cognitive biases, reasoning strategies, and ways to improve decision-making. The article addresses the dual-process theory of thought and the new Default Mode Network (DMN) theory. The reader may consider the article a first-level guide to deepen how to think and not what to think, knowing that this synthesis results from years of study and reasoning in clinical practice and educational settings.

Introduction

Clinical reasoning is based on complex and multifaceted cognitive processes, and the level of cognition is perhaps the most relevant factor that impacts the physician’s clinical reasoning. These topics have inspired considerable interest in the last years ( 1 , 2 ). According to Croskerry ( 3 ) and Croskerry and Norman ( 4 ), over 40 affective and cognitive biases may impact clinical reasoning. In addition, it should not be forgotten that both the processes and the subject matter are complex.

In medicine, there are thousands of known diagnoses, each with different complexity. Moreover, in line with Hammond’s view, a fundamental uncertainty will inevitably fail ( 5 ). Any mistake or failure in the diagnostic process leads to a delayed diagnosis, a misdiagnosis, or a missed diagnosis. The particular context in which a medical decision is made is highly relevant to the reasoning process and outcome ( 6 ).

More recently, there has been renewed interest in diagnostic reasoning, primarily diagnostic errors. Many researchers deepen inside the processes underpinning cognition, developing new universal reasoning and decision-making model: The Dual Process Theory.

This theory has a prompt implementation in medical decision-making and provides a comprehensive framework for understanding the gamma of theoretical approaches taken into consideration previously. This model has critical practical applications for medical decision-making and may be used as a model for teaching decision reasoning. Given this background, this manuscript must be considered a first-level guide to understanding how to think and not what to think, deepening clinical decision-making and providing tools for improving clinical reasoning.

Too much attention to the tip of the iceberg

The New England Journal of Medicine has recently published a fascinating article ( 7 ) in the “Perspective” section, whereon we must all reflect on it. The title is “At baseline” (the basic condition). Dr. Bergl, from the Department of Medicine of the Medical College of Wisconsin (Milwaukee), raised that his trainees no longer wonder about the underlying pathology but are focused solely on solving the acute problem. He wrote that, for many internal medicine teams, the question is not whether but to what extent we should juggle the treatment of critical health problems of patients with care for their coexisting chronic conditions. Doctors are under high pressure to discharge, and then they move patients to the next stage of treatment without questioning the reason that decompensated the clinical condition. Suppose the chronic condition or baseline was not the fundamental goal of our performance. In that case, our juggling is highly inconsistent because we are working on an intermediate outcome curing only the decompensation phase of a disease. Dr. Bergl raises another essential matter. Perhaps equally disturbing, by adopting a collective “base” mentality, we unintentionally create a group of doctors who prioritize productivity rather than developing critical skills and curiosity. We agree that empathy and patience are two other crucial elements in the training process of future internists. Nevertheless, how much do we stimulate all these qualities? Perhaps are not all part of cultural backgrounds necessary for a correct patient approach, the proper clinical reasoning, and balanced communication skills?

On the other hand, a chronic baseline condition is not always the real reason that justifies acute hospitalization. The lack of a careful approach to the baseline and clinical reasoning focused on the patient leads to this superficiality. We are focusing too much on our students’ practical skills and the amount of knowledge to learn. On the other hand, we do not teach how to think and the cognitive mechanisms of clinical reasoning.

Time to rethink the way of thinking and teaching courses

Back in 1910, John Dewey wrote in his book “How We Think” ( 8 ), “The aim of education should be to teach us rather how to think than what to think—rather improve our minds to enable us to think for ourselves than to load the memory with the thoughts of other men.”

Clinical reasoning concerns how to think and make the best decision-making process associated with the clinical practice ( 9 ). The core elements of clinical reasoning ( 10 ) can be summarized in:

• 1. Evidence-based skills,
• 2. Interpretation and use of diagnostic tests,
• 3. Understanding cognitive biases,
• 4. Human factors,
• 5. Metacognition (thinking about thinking), and
• 6. Patient-centered evidence-based medicine.

All these core elements are crucial for the best way of clinical reasoning. Each of them needs a correct learning path to be used in combination with developing the best thinking strategies ( Table 1 ). Reasoning strategies allow us to combine and synthesize diverse data into one or more diagnostic hypotheses, make the complex trade-off between the benefits and risks of tests and treatments, and formulate plans for patient management ( 10 ).

Set of some reasoning strategies (view the text for explanations).

However, among the abovementioned core element of clinical reasoning, two are often missing in the learning paths of students and trainees: metacognition and understanding cognitive biases.

Metacognition

We have to recall cognitive psychology, which investigates human thinking and describes how the human brain has two distinct mental processes that influence reasoning and decision-making. The first form of cognition is an ancient mechanism of thought shared with other animals where speed is more important than accuracy. In this case, thinking is characterized by a fast, intuitive way that uses pattern recognition and automated processes. The second one is a product of evolution, particularly in human beings, indicated by an analytical and hypothetical-deductive slow, controlled, but highly consuming way of thinking. Today, the psychology of thinking calls this idea “the dual-process theory of thought” ( 11 – 14 ). The Nobel Prize in Economic Sciences awardee Daniel Kahneman has extensively studied the dichotomy between the two modes of thought, calling them fast and slow thinking. “System 1” is fast, instinctive, and emotional; “System 2” is slower, more deliberative, and more logical ( 15 ). Different cerebral zones are involved: “System 1” includes the dorsomedial prefrontal cortex, the pregenual medial prefrontal cortex, and the ventromedial prefrontal cortex; “System 2” encompasses the dorsolateral prefrontal cortex. Glucose utilization is massive when System 2 is performing ( 16 ). System 1 is the leading way of thought used. None could live permanently in a deliberate, slow, effortful way. Driving a car, eating, and performing many activities over time become automatic and subconscious.

A recent brilliant review of Gronchi and Giovannelli ( 17 ) explores those things. Typically, when a mental effort is required for tasks requiring attention, every individual is subject to a phenomenon called “ego-depletion.” When forced to do something, each one has fewer cognitive resources available to activate slow thinking and thus is less able to exert self-control ( 18 , 19 ). In the same way, much clinical decision-making becomes intuitive rather than analytical, a phenomenon strongly affected by individual differences ( 20 , 21 ). Experimental evidence by functional magnetic resonance imaging and positron emission tomography studies supports that the “resting state” is spontaneously active during periods of “passivity” ( 22 – 25 ). The brain regions involved include the medial prefrontal cortex, the posterior cingulate cortex, the inferior parietal lobule, the lateral temporal cortex, the dorsal medial prefrontal cortex, and the hippocampal formation ( 26 ). Findings reporting high-metabolic activity in these regions at rest ( 27 ) constituted the first clear evidence of a cohesive default mode in the brain ( 28 ), leading to the widely acknowledged introduction of the Default Mode Network (DMN) concept. The DMN contains the medial prefrontal cortex, the posterior cingulate cortex, the inferior parietal lobule, the lateral temporal cortex, the dorsal medial prefrontal cortex, and the hippocampal formation. Lower activity levels characterize the DMN during goal-directed cognition and higher activity levels when an individual is awake and involved in the mental processes requiring low externally directed attention. All that is the neural basis of spontaneous cognition ( 26 ) that is responsible for thinking using internal representations. This paradigm is growing the idea of stimulus-independent thoughts (SITs), defined by Buckner et al. ( 26 ) as “thoughts about something other than events originating from the environment” that is covert and not directed toward the performance of a specific task. Very recently, the role of the DMN was highlighted in automatic behavior (the rapid selection of a response to a particular and predictable context) ( 29 ), as opposed to controlled decision making, suggesting that the DMN plays a role in the autopilot mode of brain functioning.

In light of these premises, everyone can pause to analyze what he is doing, improving self-control to avoid “ego-depletion.” Thus, one can actively switch between one type of thinking and the other. The ability to make this switch makes the physician more performing. In addition, a physician can be trained to understand the ways of thinking and which type of thinking is engaged in various situations. This way, experience and methodology knowledge can energize Systems 1 and 2 and how they interact, avoiding cognitive errors. Figure 1 summarizes all the concepts abovementioned about the Dual Mode Network and its relationship with the DMN.

Graphical representation of the characteristics of Dual Mode Network, including the relationship between the two systems by Default Mode Network (view the text for explanations).

Emotional intelligence is another crucial factor in boosting clinical reasoning for the best decision-making applied to a single patient. Emotional intelligence recognizes one’s emotions. Those others label different feelings appropriately and use emotional information to guide thinking and behavior, adjust emotions, and create empathy, adapt to environments, and achieve goals ( 30 ). According to the phenomenological account of Fuchs, bodily perception (proprioception) has a crucial role in understanding others ( 31 ). In this sense, the proprioceptive skills of a physician can help his empathic understanding become elementary for empathy and communication with the patient. In line with Fuchs’ view, empathic understanding encompasses a bodily resonance and mediates contextual knowledge about the patient. For medical education, empathy should help to relativize the singular experience, helping to prevent that own position becomes exclusive, bringing oneself out of the center of one’s own perspective.

Reasoning errors and cognitive biases

Errors in reasoning play a significant role in diagnostic errors and may compromise patient safety and quality of care. A recently published review by Norman et al. ( 32 ) examined clinical reasoning errors and how to avoid them. To simplify this complex issue, almost five types of diagnostic errors can be recognized: no-fault errors, system errors, errors due to the knowledge gap, errors due to misinterpretation, and cognitive biases ( 9 ). Apart from the first type of error, which is due to unavoidable errors due to various factors, we want to mention cognitive biases. They may occur at any stage of the reasoning process and may be linked to intuition and analytical systems. The most frequent cognitive biases in medicine are anchoring, confirmation bias, premature closure, search satisficing, posterior probability error, outcome bias, and commission bias ( 33 ). Anchoring is characterized by latching onto a particular aspect at the initial consultation, and then one refuses to change one’s mind about the importance of the later stages of reasoning. Confirmation bias ignores the evidence against an initial diagnosis. Premature closure leads to a misleading diagnosis by stopping the diagnostic process before all the information has been gathered or verified. Search satisficing blinds other additional diagnoses once the first diagnosis is made posterior probability error shortcuts to the usual patient diagnosis for previously recognized clinical presentations. Outcome bias impinges on our desire for a particular outcome that alters our judgment (e.g., a surgeon blaming sepsis on pneumonia rather than an anastomotic leak). Finally, commission bias is the tendency toward action rather than inaction, assuming that only good can come from doing something (rather than “watching and waiting”). These biases are only representative of the other types, and biases often work together. For example, in overconfidence bias (the tendency to believe we know more than we do), too much faith is placed in opinion instead of gathered evidence. This bias can be augmented by the anchoring effect or availability bias (when things are at the forefront of your mind because you have seen several cases recently or have been studying that condition in particular), and finally by commission bias—with disastrous results.

Novice vs. expert approaches

The reasoning strategies used by novices are different from those used by experts ( 34 ). Experts can usually gather beneficial information with highly effective problem-solving strategies. Heuristics are commonly, and most often successfully, used. The expert has a saved bank of illness scripts to compare and contrast the current case using more often type 1 thinking with much better results than the novice. Novices have little experience with their problems, do not have time to build a bank of illness scripts, and have no memories of previous similar cases and actions in such cases. Therefore, their mind search strategies will be weak, slow, and ponderous. Heuristics are poor and more often unsuccessful. They will consider a more comprehensive range of diagnostic possibilities and take longer to select approaches to discriminate among them. A novice needs specific knowledge and specific experience to become an expert. In our opinion, he also needs special training in the different ways of thinking. It is possible to study patterns, per se as well. It is, therefore, likely to guide the growth of knowledge for both fast thinking and slow one.

Moreover, learning by osmosis has traditionally been the method to move the novice toward expert capabilities by gradually gaining experience while observing experts’ reasoning. However, it seems likely that explicit teaching of clinical reasoning could make this process quicker and more effective. In this sense, an increased need for training and clinical knowledge along with the skill to apply the acquired knowledge is necessary. Students should learn disease pathophysiology, treatment concepts, and interdisciplinary team communication developing clinical decision-making through case-series-derived knowledge combining associative and procedural learning processes such as “Vienna Summer School on Oncology” ( 35 ).

Moreover, a refinement of the training of communicative skills is needed. Improving communication skills training for medical students and physicians should be the university’s primary goal. In fact, adequate communication leads to a correct diagnosis with 76% accuracy ( 36 ). The main challenge for students and physicians is the ability to respond to patients’ individual needs in an empathic and appreciated way. In this regard, it should be helpful to apply qualitative studies through the adoption of a semi-structured or structured interview using face-to-face in-depth interviews and e-learning platforms which can foster interdisciplinary learning by developing expertise for the clinical reasoning and decision-making in each area and integrating them. They could be effective tools to develop clinical reasoning and decision-making competencies and acquire effective communication skills to manage the relationship with patient ( 37 – 40 ).

Clinical reasoning ways

Clinical reasoning is complex: it often requires different mental processes operating simultaneously during the same clinical encounter and other procedures for different situations. The dual-process theory describes how humans have two distinct approaches to decision-making ( 41 ). When one uses heuristics, fast-thinking (system 1) is used ( 42 ). However, complex cases need slow analytical thinking or both systems involved ( 15 , 43 , 44 ). Slow thinking can use different ways of reasoning: deductive, hypothetic-deductive, inductive, abductive, probabilistic, rule-based/categorical/deterministic, and causal reasoning ( 9 ). We think that abductive and causal reasoning need further explanation. Abductive reasoning is necessary when no deductive argument (from general assumption to particular conclusion) nor inductive (the opposite of deduction) may be claimed.

In the real world, we often face a situation where we have information and move backward to the likely cause. We ask ourselves, what is the most plausible answer? What theory best explains this information? Abduction is just a process of choosing the hypothesis that would best explain the available evidence. On the other hand, causal reasoning uses knowledge of medical sciences to provide additional diagnostic information. For example, in a patient with dyspnea, if considering heart failure as a casual diagnosis, a raised BNP would be expected, and a dilated vena cava yet. Other diagnostic possibilities must be considered in the absence of these confirmatory findings (e.g., pneumonia). Causal reasoning does not produce hypotheses but is typically used to confirm or refute theories generated using other reasoning strategies.

Hypothesis generation and modification using deduction, induction/abduction, rule-based, causal reasoning, or mental shortcuts (heuristics and rule of thumbs) is the cognitive process for making a diagnosis ( 9 ). Clinicians develop a hypothesis, which may be specific or general, relating a particular situation to knowledge and experience. This process is referred to as generating a differential diagnosis. The process we use to produce a differential diagnosis from memory is unclear. The hypotheses chosen may be based on likelihood but might also reflect the need to rule out the worst-case scenario, even if the probability should always be considered.

Given the complexity of the involved process, there are numerous causes for failure in clinical reasoning. These can occur in any reasoning and at any stage in the process ( 33 ). We must be aware of subconscious errors in our thinking processes. Cognitive biases are subconscious deviations in judgment leading to perceptual distortion, inaccurate assessment, and misleading interpretation. From an evolutionary point of view, they have developed because, often, speed is more important than accuracy. Biases occur due to information processing heuristics, the brain’s limited capacity to process information, social influence, and emotional and moral motivations.

Heuristics are mind shortcuts and are not all bad. They refer to experience-based techniques for decision-making. Sometimes they may lead to cognitive biases (see above). They are also essential for mental processes, expressed by expert intuition that plays a vital role in clinical practice. Intuition is a heuristic that derives from a natural and direct outgrowth of experiences that are unconsciously linked to form patterns. Pattern recognition is just a quick shortcut commonly used by experts. Alternatively, we can create patterns by studying differently and adequately in a notional way that accumulates information. The heuristic that rules out the worst-case scenario is a forcing mind function that commits the clinician to consider the worst possible illness that might explain a particular clinical presentation and take steps to ensure it has been effectively excluded. The heuristic that considers the least probable diagnoses is a helpful approach to uncommon clinical pictures and thinking about and searching for a rare unrecognized condition. Clinical guidelines, scores, and decision rules function as externally constructed heuristics, usually to ensure the best evidence for the diagnosis and treatment of patients.

Hence, heuristics are helpful mind shortcuts, but the exact mechanisms may lead to errors. Fast-and-frugal tree and take-the-best heuristic are two formal models for deciding on the uncertainty domain ( 45 ).

In the recent times, clinicians have faced dramatic changes in the pattern of patients acutely admitted to hospital wards. Patients become older and older with comorbidities, rare diseases are frequent as a whole ( 46 ), new technologies are growing in a logarithmic way, and sustainability of the healthcare system is an increasingly important problem. In addition, uncommon clinical pictures represent a challenge for clinicians ( 47 – 50 ). In our opinion, it is time to claim clinical reasoning as a crucial way to deal with all complex matters. At first, we must ask ourselves if we have lost the teachings of ancient masters. Second, we have to rethink medical school courses and training ones. In this way, cognitive debiasing is needed to become a well-calibrated clinician. Fundamental tools are the comprehensive knowledge of nature and the extent of biases other than studying cognitive processes, including the interaction between fast and slow thinking. Cognitive debiasing requires the development of good mindware and the awareness that one debiasing strategy will not work for all biases. Finally, debiasing is generally a complicated process and requires lifelong maintenance.

We must remember that medicine is an art that operates in the field of science and must be able to cope with uncertainty. Managing uncertainty is the skill we have to develop against an excess of confidence that can lead to error. Sound clinical reasoning is directly linked to patient safety and quality of care.

Data availability statement

Author contributions.

SC and CA drafted the work and revised it critically. Both authors have approved the submission of the manuscript.

Conflict of interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Publisher’s note

All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article, or claim that may be made by its manufacturer, is not guaranteed or endorsed by the publisher.

Planning And Decision Making: Characteristics, Importance, Elements, Limitations

In everyday life, all of us make and execute certain plans to achieve our goals. For example, before going on a trip, we make a plan i.e. where and when to go, how to reach the destination, the duration of the trip, where to stay and luggage to carry, etc. All these tasks require creating an effective plan which consists of certain activities for the successful execution of a trip. Process of making such plans to achieve some goal or objective is called “Planning . “ In other terms, in order to execute activities in future, prior forethought is necessary and this forethought comes under the concept of “planning.”

From an organizational point of view, planning is defined as “process by which an organization identifies its short-term and long-term goals, design, and implement strategies to achieve them.” One of the important aspects of planning is to allocate resources and manpower in an organization.

The planning function was put forth by Henri Fayol, known for his Management Theories i.e. 14 principles of management and 5 basic functions of management.

Planning is one of the six management functions/processes of Henri and the management process starts with planning function in any organization.

For example, manpower planning or human resource planning is a crucial planning process which ensures the right kind of people at the right place, and at the right time to fulfil the right type of jobs in the organizations. This process includes different activities in the planning process to meet organizational goals.

The Purpose Of Planning

1. achievement of goals, 2. cost-effective decision-making, 3. forecasting, 4. productive utilisation of available resources, 5. facilitate other management functions, 6. risk-management, characteristics/nature of planning, 1. basic and important management function.

Planning is not only the base for the rest of the management functions i.e. staffing, directing, organizing, and controlling, but it is also one of the most crucial processes for any organization to meet goals. All the above management functions involve effective planning as without proper planning no function can be performed well. Therefore, the results might be ambiguous.

2. Goal-Oriented

Planning is focused on defining organizational goals or objectives, identifying different action plans, deciding and implementing the best action plan to achieve goals.

3. Omnipresent

Planning is involved at all the levels i.e. top, middle, and bottom. The effective functioning of different departments of organizations like sales, purchase, IT, HR, finance among others depends on planning their systems, optimum use of resources, etc. The scope may vary in different functions.

4. Continuous Process

Planning is a continuous process in an organization which involves making plans for a particular time period i.e. monthly or quarterly, half-yearly, yearly, etc. New plans are initiated after the previous plans lapse to fulfil organizational goals.

5. Demands Strong Analytical Skills

Planning requires robust analytical abilities i.e. analyzing information, problem-solving, decision-making, critical thinking, etc. at each level and function.

6. Forecast

Planning process demands forecasting future needs, i.e. analyzing and detecting future requirements, challenges in accomplishing organizational goals, etc.

Importance Of Planning

1. increase in efficiency.

Planning helps in increasing efficiency by aiming at cost-reduction and generating maximum output. It controls the wastage of available resources and their duplicity.

2. Minimize Risks

Risk-management is an important aspect of any organization, especially in forecasting. Planning predicts various risks related to business and further helps in generating action plans to control and reduce these risks. So, with effective planning, organizations prepare themselves for any future uncertainty.

3. Smooth Coordination

Planning ensures effective coordination at different levels, between various departments or functions. Plans are formulated at each level i.e. top, middle, and bottom as well as in different departments. Effective execution of these plans requires proper coordination which is possible through effective planning. Similarly, different plans like short-, mid-, and long-term plans require coordination to achieve organizational goals where planning plays an important role.

4. Optimum Utilization Of Available Resources

An organization needs different resources like funds, manpower, physical assets to disburse activities of different departments. These resources are limited. So, it’s necessary to utilize and organize them efficiently to produce maximum output. Planning helps in organizing these resources carefully.

5. Smooth Supervision And Direction

Planning paves a path for supervising subordinates, providing right instructions, and rendering top-notch guidance. It aims to provide help, direction for performing various tasks, and methods for carrying out different activities.

6. Facilitates Control

Performance of staff can be controlled or improved by devising plans for improvement in performance according to the variance in performance plans and actual performance at work. Without planning, this process of control could not be smooth.

7. Staff Motivation

Attractive monetary and non-monetary benefits can be designed through proper planning which is helpful in boosting the morale of the staff. This leads to high motivation among staff and reduces turnovers of quality staff.

8. Trouble-Free Decision-Making

Making effective and right decisions in an organization is essential to achieve goals. A supervisor has to make different plans and strategies for the smooth functioning of the department and to decide the most appropriate plan. So, planning helps in smooth decision-making in an organization.

9. Goal-Oriented

Proper planning ensures that the best strategies and decisions are made to fulfil organizational goals. Different plans made at different levels are aimed at achieving individual, departmental, and organizational goals.

10. Encouraging Creativity And Innovative Ideas

Planning demands thinking and implementing the best ideas or strategies for organizational success. Both supervisors and subordinates are encouraged to exploit their creative skills and present their innovative plans.

Elements/Components Of Planning

The planning process revolves around different aspects as shown in the diagram below:

Mission or purpose is the base of planning in any organization. The mission of an organization specifies its reason for existence, customers, products or services, service locations, etc. and mostly in written form. It acts as a direction towards achieving organizational goals. Mission also includes an organization’s values and belief system. It also clears the organization’s viewpoint on staff. Organizational goals are defined based on the mission statement of an organization.

The ultimate aim of the functioning of each department in an organization is to achieve organizational goals and objectives. Planning also requires setting of goals to make a plan further. Goals can be individual or team based. For example:

• Individual goal of Hiring Manager in the HR department: To recruit top talent in the organization in given time-frame.
• Team goal of Human Resource Department: To ensure the development of employees by fulfilling an individual’s personal, professional needs and by meeting organizational goals.

Goals are specific, measurable, achievable, realistic, and time-bound. Short-term goals can be for less than a year and long-term goals are defined for a time-period of more than a year.

3. Policies

Planning is also based on defined policies of an organization. Policies are a set of guidelines to accomplish any task effectively and also includes procedure and actions. These are defined as a set of plans to handle different situations. Different policies like an insurance policy, travel policy, HR policies are designed to facilitate smooth functioning in any organization. Similarly, if an organization policy says that the minimum annual salary increment of staff will be 10% of the salary then increment can’t be less than 10%. So, policies act as a decision-making element as well.

Planning is connected to a process, and it is an important element of planning. A process defines guidelines to execute different activities, i.e. action plan. In any planning activity, the process is practical. A process like planning is aimed at achieving something. These are step-by-step inter-related activities to be performed and require different resources like money, manpower, machinery, etc. to produce the desired output. For example, in a manufacturing company, different processes are present like production process, quality control and quality assurance process, maintenance process etc.

Plans that are made for estimating income and expenses for a specific period are defined as “budget.” Budget is a set of financial plans which are made for a specific period and reviewed at regular intervals. Whether it is an organization or a family or an individual; all make budget plans to utilize their financial resources efficiently. For example, in an organization business budget is present that includes fixed and variable costs, expected sales, profits, etc.

A well-designed budget also helps in planning during a financial crisis.

6. Projects

Project in an organization refers to the set of inter-related activities which are planned to fulfil certain goals in a specific time period at a given cost using limited resources. Project planning includes defining goals, project schedule, resources, budget, project quality, manpower, and risk management. So, this element of planning consists of other planning elements as well. For example, software companies work on different projects for their clients.

7. Strategies

Strategies are a set of plans and actions that are defined to meet certain results. Proper planning and implementation of strategies are essential for organizational success and to meet certain goals.

Types Of Planning

Planning is mainly of four types i.e. Operational, Strategic, Tactical, and Contingency.

a) Operational Planning

Operational plan or work plan refers to the planning process aimed at achieving departmental and organizational goals. It is related to the day-to-day functioning of organizations. These plans clear planned activities of departments for the near future in detail. The operational plan provides answers of: -What goals have to be achieved and what strategies to use?

-Who will be responsible for different activities?

-What is the time limit to complete activities?-

-How much budget in terms of financial resources is required and available to complete activities?

For example, the goal of the marketing team of an engineering college is to increase the number of students by increasing marketing promotional activities. Marketing operational plan is explained in the diagram below:

Operational planning is of two types i.e. single use plans or ongoing plans. Single-use plans are developed for one-time activities or tasks like sales or marketing event or seminar. Ongoing plans have a defined set of policies, rules, and procedures to achieve goals and are continued for the future as well, like a performance management system for employees.

b) Strategic Planning

Strategic planning is defined as the strategies made by management to achieve its objectives. It also includes defining directions and allocating resources for execution. Strategic planning is meant for long-term business decisions. A strategic plan starts with the vision and the mission statement of an organization.

The process of strategic planning includes vision clarity, collecting and analyzing information, strategy formulation, and implementation of strategy, evaluating, and controlling. For example, the strategic plan of an organization which aims to reduce the current turnover rate is explained in the below diagram:

Models of Strategic Planning

There are five models of strategic planning which represents its designs or blueprints. Selection of the right model depends on an organization’s goals, mission, and vision. These models are:

1. The basic model of strategic planning

These are used by new organizations having less experience in using strategic business planning. It is mainly useful for small-scale organizations and business. This planning includes defining mission, goals, identifying strategies, creating action plans, evaluation etc.

2. Goal-oriented model

This one is an extended version of the basic strategic planning model and is used by established organizations which aim at introducing an improved strategic process. The process of this model includes a SWOT analysis (strength, weakness, opportunity and threat), identifying goals and mission, making strategies, action plans, operational plans, budget allocation, and evaluation on yearly basis.

3. Scenario-based model

This model is more of a technical model. It is used by organizations to face different challenges or scenarios which arise due to external factors or environmental change. Change can be demographic or in the form of rules and regulations. The process includes identifying problem areas in business and different scenarios- both best and worst, designing suggestions for an action plan of business in different scenarios, selecting common strategies to handle changes, and identifying common issues through which business is being affected or will be affected in the near future.

4. Alignment model

This model is useful in making a balance between an organization’s mission and available resources as well as aligning resources to the mission. It helps in identifying any gaps in planning i.e. gap between actual results and expected results. Organizations facing huge efficiencies prefer this strategic planning model to rectify issues.

The process includes identifying an organization’s mission, resources, process, etc, inspecting which areas are working in the right direction and which areas need improvement. It also requires finding ways of improvement and incorporating these improvements in the form of strategies in the plan.

5. Organic model

This strategic model is the self-organizing model which is based more on the value system and less on the process. The process includes clearing values and vision to stakeholders in a meeting; an action plan is established by each person as per values and vision, everyone clears results of actions and update values, vision accordingly.

c) Tactical Planning

This type of planning is for short duration i.e. plans and actions by functions for short-term and aims at contributing to the strategic plan of an organization. Tactical planning is based on today’s need and is a bit more detailed. This planning needs to be flexible to meet unexpected issues which are not predefined. It answers what to do to achieve the strategic objective rather than how-to-do as in case of operational plans. Below is an example of tactic planning by HR Hiring Manager to achieve the goal of hiring twenty sales representatives in the first quarter:

d) Contingency Planning

These type of plans are need-based and are formulated when the need for change arises or during the occurrence of any unexpected circumstance. It is also called alternate plans as it comes under picture once other plans fail to produce desired results. The process includes formulating policy, identifying critical factors of a business, risk analysis, preventive control measures, developing recovery strategies, and testing, training, monitoring plan.

An example of contingency planning can be seen in the diagram below which is a crisis situation of organization i.e. what-if HR Head, who is taking care of all HR gamut of organization, left suddenly. To handle such unexpected situations, contingency plans are made. Like in the below diagram, an organization has formulated a plan i.e. performance development program to train the rest of the HR staff to work at the capacity of HR Head in such crisis situations.

Planning Process

The planning process is defined as the steps to define goals and making the best action plans to achieve it.

Steps In Planning Process

1. Defining goal or objective

Goal setting is the first and important step in the planning process. Goals are defined at the organizational, department, and individual level and are meant to be achieved in future in a specific time period. A goal can be short-term, mid-term or long-term. Plans are devised which are aimed at achieving these predefined goals. Goals specify what to achieve by defined rules, policies, process, resources, strategies, etc.

2. Collecting information

Gathering information like facts and figures required to achieve goals is a necessary part of planning. Target audience, circumstances, market information, competitor’s strategy, etc. are required to make a right and effective plan.

3. Analyzing information

The next step in the planning process is interpreting information as per goals. Analyzing information includes organizing collected information as per importance, identifying accuracy and relevancy of information from different sources, its unique features, sources and reliability for the organization.

4. Making a plan

Once relevant information is collected and analyzed, the next step is to formulate a plan to achieve defined goals; the plan includes identifying different activities, required resources, timelines, etc. to implement a plan.

5. Implement the plan

Implementing a plan refers to allocate defined activities, resources, time guidelines to individuals. In this step, strategies and plans are converted into actions to achieve goals. Implementation of plans also requires allocation of responsibility in the team which is responsible for accomplishing the plan.

6. Monitor the plan

Once a plan is implemented, it’s necessary to evaluate and monitor its effectiveness and impact according to desired goals.

The planning process can be understood further in below example of an organization plan to formulate competitive compensation and benefits structure or plan for employees.

Planning Limitations

Although planning has lots of advantages for any organization aiming to achieve its goals; it also has certain constraints or limitations. Few of them are:

1. Costly process

Planning requires much investment as lots of aspects, i.e. funds, resources, manpower etc, are included in the process of planning. Due to limited capital or funds in small and medium organizations, it is quite challenging to have comprehensive plans. It is hard to allocate funds for information gathering, predicting future needs, developing strategies, and hiring specialists. If a plan is more detailed, then the cost is high too.

2. Time-consuming task

The planning process is a bit time-consuming and, sometimes, there is a delay in decision-making especially in immediate decisions. Due to this, the planning process can’t be detailed in some organizations.

3. Fewer employee initiatives

Planning demands work under predefined policies and rigid processes. This, in turn, marks an impact on initiatives and innovative ideas from the employees. Complexity arises in managerial work as well.

4. Change resistance

The planning process is backed by a change in methods, policies, rules, etc. Employees resist this change due to insecurity, the uncertainty of new plans’ success, and getting used to the current plan. This fails the new plan.

5. Budget constraints

The planning process requires an appropriate or fixed financial budget for future actions. An investment in purchasing fixed assets by organizations puts a constraint on the budget required for implementing the planning process.

6. Scope of inaccuracy

Planning cannot be 100% accurate and reliable as it is based on forecasting and the future is uncertain, data and information used in making plans may not be accurate, vague decisions made by incompetent planner etc. There is no surety of risks in future.

Apart from these, there are few other external factors like change in government policies i.e. tax policy, import-export policy etc. The trade-unions may also hinder a smooth planning process.

Decision-Making

Decision-making is defined as the process by which different possible solutions or alternatives are identified and the most feasible solution or course of action is finalized. It is an integral part of planning. Decision-making results in selecting the right action among different available options.

It is also one of the important management functions and effective decision-making leads to fulfilling expected goals by sorting out different problems related to such decisions. Decision-making is also a time-bound process and eliminates confusions to reach a conclusion. It has a minimum of two or more alternatives or solutions to a problem so that the best can be decided. If only one alternative is available, then there is no requirement of decision-making.

Relation Between Planning And Decision-Making

Both planning and decision-making are connected to each other. These are the most important aspects of management functions. Planning requires a series of decisions to be incorporated in advance. The foundation of planning is decision-making. The role of a planner demands good decision-making abilities also as the planner has to take a lot of decisions simultaneously. So, decision-making is an important task in planning. Simultaneous and a number of decisions make a plan. In the absence of decision-making, it’s not possible to answer what, how, when, and who is planning. To execute planned activities, decision-making is compulsory.

So, planning has an important role to play in decision-making.

Characteristics of Decision-Making

Different characteristics of decision-making are mentioned below:

1. Process-oriented

Decision-making consists of a process to choose the best solution to a problem among available alternatives. The process includes identifying and analyzing problems, collecting different facts and figures, finding different solutions, and, finally, narrowing down and implementing the best one to meet organizational goals.

2. Demands creativity and Intellectual mind

Decision-making process requires creativity and logical thinking. It demands a lot of mental exercise and other components, i.e. education, experience level, intelligence, etc.

3. Demonstrates commitment

Decision-making process ensures better results based on the decisions made. So, it indicates the commitment of desired results. It requires joint efforts of the team.

4. Ensures the best solution

Decision-making also provides the best solution to any problem as the best solution is decided after evaluating different available alternatives.

5. Impacts of decision-making

Decision-making can be either positive or negative. A positive or right decision can bring positive results and negative or wrong decisions can bring negative results.

6. Decision-making is a final process

After disbursing different activities and tasks, decision-making takes place to get the results of the work done. It is the end result of discussions, comparisons, etc.

7. An ongoing and changing process

Organizations take decisions on a regular basis; so, decision-making is a continuous process. Every decision consists of separate situations that make decision-making a changing process.

Decision-Making Process

There are different steps in effective decision-making process;

a. Situation analysis and information gathering

The first step of the decision-making process is analyzing any situation, defining a problem, collecting relevant information, and identifying goals. This step includes collecting data and information to identify a real issue or problem. Problem identification is necessary for furthering the decision-making process. Once the problem is identified, an effective solution is determined. Problems are solved as per priority. After the solution is improvised, an action plan is designed to achieve the solution.

b. Plan and make alternatives

After collecting information, the next step is to develop different action plans or an alternative course of action. It requires imagination skills of a decision maker. Sometimes, additional information is also required to define better alternatives.

c. Evaluating and selecting the best alternative

This step in the decision-making process not only includes the analysis of different alternatives available or solutions but also an examination of each one of them based on results they are going to produce. The actual results of these solutions are not known as it’s based on performance in the future. So, it comes with uncertainty. It also includes choosing the best solution to achieve objectives. Different alternatives or solutions are judged based on different criteria, i.e. risk involvement, the least effort, the least timing based on the urgency of the situation, limited resources etc.

d. Implementing and evaluating decisions

After deciding the best solution to address a problem, the next step is to make and implement plans. This requires getting and allocating resources, budgets, time frame, etc. Once made, decisions are evaluated to know the progress by preparing progress reports.

Evaluating and monitoring decisions will clear different aspects, i.e. if everything is going as per the plan, different internal and external factors influencing decisions, the performance of subordinates as expected etc.

Example of the decision-making process is shown in the below visual presentation to solve the problem of high employee turnover in an organization;

Factors Affecting Decision-Making

1. timelines.

The quality of decisions depends on how much time has been devoted to making decisions. Most of the time decision-makers have to take decisions in a limited time frame as instructed by the management. Due to the time limit, decision-makers are not able to collect all the necessary information that influences decisions and are, also, not able to look for more alternatives.

2. Value and beliefs of decision-makers

In addition, the quality of decisions also depends upon the value and belief system of the decision-makers. Anyone’s reaction to a particular situation is more likely to depend on the individual’s values, likes and dislikes, thoughts, and beliefs. It is also a behavioural aspect of the decision-makers and reflects in their decisions related to goals, strategy-making activities. So, value-based decisions help in prioritizing tasks and making goals, identifying different solutions to problems, and finalizing the best solution or alternative.

3. Policies of organization

Decisions are affected by the policies of an organization. Decisions taken have to be in the boundary or within the limits of these policies. Decisions which violate policies are not considered for implementation. Though there is a scope to make changes in policies as per decision, most of the time decisions should be at par with the policy guidelines. However, a change in policy is a time-consuming task and requires lots of things to be considered before any change. Comparatively, a change in proposed decisions is much easier.

4. Other factors like budget, manpower, values of management also influence decision-making .

Types of decisions.

Decisions can be of different types depending upon their nature and influence:

1. Programmed and non-programmed decisions

Programmed decisions are meant for daily routine issues and for those problems that repeat frequently. A Set of tasks are defined to handle such problems or issues and are mostly initiated by the entry-level decision-makers.

For example, HR department issues like handling grievances related to leaves or attendance of employees require programmed decisions. Non-programmed decisions are made for tough situations where defining different alternatives is a challenging task. These types of decisions strategically affect organizations.

For example, decisions related to expanding the operation of an organization to other countries, launching a new product, introducing performance management system for the first time to the employees are non-programmed decisions where decision-making is a challenging task and these decisions are mostly taken by management or at the top-level.

2. Routine and strategy-oriented decisions

Routine decisions are a regular activity in an organization once identified. These are quick decisions and don’t require deep thinking or analysis. These decisions are generally taken by the bottom-management staff. Different alternatives are not required in these as everyone is aware of what action to take on a daily basis.

Examples of such decisions include what reports to generate from the biometric system of attendance by the HR staff.

Decisions, in which involvement of organizational goals, resources, and policies is required, are termed as strategic decisions. Strategy-based decisions are future-related and executed by the top management. These are for the long term and are centrally focused. A large amount of investment is required to execute strategic decisions. Different alternatives or course of actions are considered and evaluated to finalize such decisions.

For example, developing a performance management system (PMS) strategy for employees demands strategic decisions. Steps involved in strategic decision-making for formulating PMS strategy starts with identifying goal which might be retaining and motivating the quality staff. Further steps involved are: developing a process for monitoring performance and formulating a comprehensive PMS plan.

3. Policy-related and operational decisions

Decisions related to policy issues are policy-related or tactical decisions. These decisions come under the preview of the top management and leave a long-term impact. For example, changing leave structure or office timings are policy-related decisions.

Operating decisions are for operational functioning and on a daily basis. Middle- and bottom-level management is responsible for such decisions. Different departments or functions of an organization like sales, IT, production, purchase, accounts, or HR take operations decisions.

For example, Diwali bonus payment to employees is a policy matter and calculation of such bonus to handover to employees is considered an operational decision.

4. Organization-based and personal decisions

Decisions, taken by an individual as office staff, are organizational decisions. For example, conducting a campus interview decision by hiring executives is an organizational decision. Wherein, personal decisions are related to an individual’s decision to meet personal commitments. These are also known as life decisions. Buying a house is a personal decision.

5. Major and minor decisions

Major decisions are those which require much time, effort, and thinking to finalize and have a long-term impact. For example, a decision regarding higher studies whether to continue in own country or to go abroad is a major decision. Minor decisions are routine decisions and don’t require much time and deep thinking. Like purchasing stationery for different departments is a minor decision.

6. Individual and group decisions

Individual decisions are taken by one person i.e. routine decisions; as the decision of making an excel sheet for attendance management to keep the attendance record is an individual decision.

Decisions which are taken by a group of people aiming to achieve a common goal are group decisions. For example, employee engagement activities demand HR staff to work as a group and take decisions for better employee engagement programs.

Importance of Decision-Making

1. optimum utilization of resources.

With the help of decision-making, all resources of organizations i.e. money, men, material, machine, market and method are used carefully and as per requirement.

2. Problem-solving approach

By decision-making, organizations can determine and face different problems in working. It not only helps in identifying problems but also solving them by making correct and fast decisions.

3. Contributes to organizational growth

As decision-making ensures optimum utilization of resources, making the right decisions to solve problems or issues helps in achieving organizational goals and overall growth.

4. Encourage initiatives and innovations

Decision-making task is performed at all levels of organization i.e. top, middle and bottom. This motivates the staff members to contribute to decisions through brainstorming or alternatives to solve the problem. Thus, it encourages innovative thoughts and ideas which, in turn, help the organization to be at a competitive place in the market.

5. Employee motivation

Good decisions help in increasing the productivity of organizations that result in more profits. Surplus profits help in increasing compensation benefits to employees which ultimately boosts their morale and keeps them motivated.

To conclude, planning is a systematic process that supports organizations to carry out all its present and future activities to achieve desired objectives. Planning, being a continuous function, works well in adverse situations too. Plans can be modified and restructured as per requirement and available information.

Decision making is also an important activity that supports the organization by reducing risks in projects with quick and better decisions.

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Management consulting

Excellent notes on planning and decision making i have ever seen, thank you keep posting on Management based topice with real example of companies how it is working.

thank you for good notes on planning and decision making

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Soft systems methodology in standardizing the method for applying dolphin-assisted therapies in neurodivergent patients: case study of delfiniti mexico.

1. Introduction

2. theoretical framework, 2.1. soft systems methodology, 2.2. time and motion study, 3. methodology.

• Stage 1. The problem situation, unstructured: A general description of the situation is provided to identify the issues in the system; however, emphasis is not placed on the relationship of its elements. This initial approach seeks to create a framework surrounding the system.
• Stage 2. The problem situation, expressed: The system’s structure is described by identifying the relationships among the various components identified in Stage 1. This phase demonstrates that the system is not isolated but has interrelations with other systems that influence it. Internal and external relationships of the system are established, constructing a “rich picture” that recognizes relevant systems linked to the overall problem.
• Stage 3. Root definition of relevant systems: The root definition of the relevant systems obtained in the previous stage is presented. This root definition is based on the acronym CATWOE (C: Customers, A: Actors, T: Transformation, W: Worldview, O: Owners, and E: Environment) and the main axiom: “X by Y to achieve Z”.
• Stage 4. Conceptual models: A conceptual model of the problematic situation is proposed, along with models B1 and B2 indicating relevant system activities identified in the previous stage.
• Stage 5. Comparison of 4 with 2: Conceptual models are contrasted with the current situation, aiming to highlight discrepancies between what is proposed in the conceptual models and what actually occurs in the system currently.
• Stage 6. Feasible, desirable changes: Based on the identified discrepancies between the current situation and conceptual models, adjustments are suggested to address them; these changes must undergo evaluation and approval by the individuals involved in the human system to ensure they are feasible and desirable.

4.1. System Definition

4.2. stage 1. the problem situation: unstructured, 4.3. stage 2. the problem situation: expressed, 4.4. stage 3. definition of the root of relevant systems, 4.4.1. root of the system study object.

• C: Neurodivergent children.
• A: Researchers and graduate and undergraduate students from IPN.
• T: EEG signal capture → Spectral Power Analysis and Fractal Analysis to estimate the effectiveness of a DAT.
• W: Record EEG signals during DATs to measure their effectiveness in patients with neurodevelopmental disorders.
• O: IPN, through COFAA.
• E: Budget from COFAA and IPN, IPN infrastructure, Municipal Government of Ixtapa-Zihuatanejo, Delfiniti Ixtapa, DIF Zihuatanejo.

4.4.2. Root of the System Relevant: Standardization

• A: Therapist, trainer, researchers, and graduate and undergraduate students from IPN.
• T: Non-standardized EEG signal capture method → Standardized EEG signal capture method.
• W: Standardize the EEG signal capture method to homogenize results and minimize downtime.
• E: Dolphin, Delfiniti Ixtapa, Researchers and graduate and undergraduate students from IPN.

4.4.3. Root of the System Relevant: Measurement

• T: EEG signals → Spectral Power Analysis and Fractal Analysis.
• W: Development of software and hardware for the processing and interpretation of EEG signals.
• E: Budget and infrastructure of IPN, Solidworks, Matlab, Python, Colab, Git, and Docker.

4.4.4. Root of the System Relevant: Financial Support

• A: IPN, COFAA, Researchers and graduate and undergraduate students from IPN.
• T: Research findings → Application for financial support for publication of results.
• W: Perform the required procedures to secure financial support for the research publication.
• O: IPN—COFAA.
• E: Regulations and guidelines of IPN.

4.4.5. Root of the System: Relevant Agreements

• A: Delfiniti Ixtapa, Municipal Government of Ixtapa-Zihuatanejo, DIF Zihuatanejo, IPN, Dolphin Discovery.
• T: Published scientific productivity → Agreements with various organizations.
• W: Establish national and international agreements with companies that conduct DATs.
• O: Municipal Government of Ixtapa-Zihuatanejo, IPN.
• E: Regulations and guidelines of IPN and the Municipal Government of Ixtapa-Zihuatanejo.

4.5. Stage 4: Conceptual Model

4.6. stage 5. comparison of 4 with 2, 4.7. stage 6. feasible, desirable changes, 5. discussion, 6. conclusions and future work, author contributions, data availability statement, acknowledgments, conflicts of interest.

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Coria Páez, A.L.; Flores Hidalgo, B.L.; Morales Matamoros, O.; Moreno Escobar, J.J.; Quintana Espinosa, H. Soft Systems Methodology in Standardizing the Method for Applying Dolphin-Assisted Therapies in Neurodivergent Patients: Case Study of Delfiniti Mexico. Systems 2024 , 12 , 294. https://doi.org/10.3390/systems12080294

Coria Páez AL, Flores Hidalgo BL, Morales Matamoros O, Moreno Escobar JJ, Quintana Espinosa H. Soft Systems Methodology in Standardizing the Method for Applying Dolphin-Assisted Therapies in Neurodivergent Patients: Case Study of Delfiniti Mexico. Systems . 2024; 12(8):294. https://doi.org/10.3390/systems12080294

Coria Páez, Ana Lilia, Brenda Lorena Flores Hidalgo, Oswaldo Morales Matamoros, Jesús Jaime Moreno Escobar, and Hugo Quintana Espinosa. 2024. "Soft Systems Methodology in Standardizing the Method for Applying Dolphin-Assisted Therapies in Neurodivergent Patients: Case Study of Delfiniti Mexico" Systems 12, no. 8: 294. https://doi.org/10.3390/systems12080294

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