Critical Thinking Questions On Decision Making And Problem S ✓ Solved

Critical Thinking Questions on Decision Making and Problem Solving

Course Learning Outcomes-Covered: Identify and analyze different perspectives on understanding problems for different situations. Utilize different decision-making tools to enhance problem-solving and decision-making approaches. Identify organized alternatives and select among possible alternatives to evaluate business options. Create a Decision Making and Problem Solving worksheet document.

Critical Thinking Questions:

1. Question 1: Suppose you are a member of a group asked to find ways to cut costs throughout your organization for the upcoming year. Sales have fallen sharply, and the company is in danger of going out of business. After gathering information, your group concludes that the company will save the most money by freezing pay for a year, despite a tradition of annual salary increases. How can you make sure this is a fair decision? How can you make sure that others in the organization will see it as a fair decision?

2. Question 2: Care, a health consultancy company in Saudi Arabia, is studying the economic benefits of a program of preventative COVID-19 flu vaccinations. Care has to give advice to the government for COVID-19 vaccination. If vaccinations are not introduced then the estimated cost to the government if flu strikes in the next year is SR.70m with a probability of 0.1, SR.100m with a probability of 0.3 and SR.150m with a probability of 0.6. It is estimated that such a program will cost SR.70m and that the probability of flu striking in the next year is 0.75. One alternative open to the committee is to institute an "early-warning" monitoring scheme (costing SR.30m) which will enable it to detect an outbreak of flu early and hence institute a rush vaccination program (costing SR.100m because of the need to vaccinate quickly before the outbreak spreads). As a consultant of Care, Develop a decision tree for alternatives and make a recommendation to the Indian government that which alternative can maximize expected economic benefits?

3. Question 3: Decision support tools rely on objective, mathematical data. What part does ethics play in using decision support software?

4. Question 4: If you collect too much information for analyzing a decision, you can suffer from analysis paralysis, where you spend too much time thinking about a decision rather than making one. Recall a major financial decision you made recently, such as a car or housing purchase or rental. Describe your process for making the decision. How could analysis paralysis have affected this process?

Paper For Above Instructions

In order to manage an organization encountering sharp declines in sales, such as the situation described, it is essential to approach the decision-making process with fairness and transparency. Question 1 asks how to ensure that freezing salaries, a decision intended to cut costs, is deemed fair by all stakeholders involved.

A key approach to achieving fairness in this decision is thorough communication. The management must provide a clear explanation of the financial state of the organization, alongside the rationale behind the salary freeze. Transparency about the challenges faced can cultivate understanding among employees, minimizing discontentment arising from perceived unfairness.

Furthermore, it is vital to engage employees in the decision-making process. Inviting them to contribute their ideas or suggestions may provide alternative cost-saving measures. By giving employees a voice, they are more likely to feel included and respected, which enhances perceptions of fairness in organizational decisions.

Next, it is crucial to emphasize that the freeze is a temporary measure and to provide assurances regarding future salary increments as soon as financially feasible. This promise aligns employee interests with long-term organizational recovery, fostering a group mentality around the necessity of the decision.

Moving on to Question 2, concerning the economic analysis led by Care, the decision tree method proves beneficial in assessing the alternatives available to the Indian government regarding the COVID-19 vaccination program. The root decision captures the key alternatives: implementing the vaccination program, which has a direct cost of SR.70 million and a substantial 75% probability of requiring a response due to flu outbreaks, and the “early-warning” monitoring scheme with an cost of SR.30 million but imposing additional costs for a rushed vaccination program.

The decision tree will clearly illustrate the expected costs versus the potential outcomes of the different options, providing a visual representation beneficial for decision-making. When constructing the tree, the outcomes must also align with their respective probabilities; for instance, if a flu outbreak occurs, the expected costs due to the absence of vaccination must be evaluated against the entire costs of the early-warning scheme and subsequent vaccination program.

The ethical implications of decisions made in this context are addressed in Question 3. Decision support tools, while data-driven, require ethical considerations to ensure decisions do not adversely affect public health. Ethics necessitates a responsible approach to information, ensuring data used in decision-making processes remains objective and free from biases that could misrepresent the situation.

Furthermore, ethics demands that the decision to conduct such vaccinations must balance financial aspects with public health priorities. The possible outcomes should always reflect the community's best interest, leading to adequate resource allocation while maximizing health benefits.

Lastly, Question 4 brings to light the phenomenon of analysis paralysis, a common hindrance in decision-making due to overwhelming information gathering. Reflecting on a recent significant financial decision, such as purchasing a new vehicle, can personify this concept.

In buying a new car, a straightforward process may devolve into an exhausting ordeal flooded with too many reviews, videos, and comparisons. The timeline of this decision could stretch significantly due to continuous search efforts for the 'best deal.' Therefore, in a scenario plagued by analysis paralysis, valuable time and energy are wasted while an essential decision about financial expenditure sits unresolved.

To combat analysis paralysis during decision-making, establishing clear criteria for choices is vital. Setting actionable deadlines can also instigate clear movement towards making a decision. Finding a balance between enjoyable thoroughness and swift resolution is crucial for effective decision-making.

In summary, ensuring fairness in difficult decisions necessitates open communication, transparent processes, and ethical considerations. By engaging stakeholders within decision-making frameworks and utilizing structured tools like decision trees, an organization can navigate complex situations effectively while maintaining trust and cooperation among its members.

References

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