REFLECTIVE ESSAY ON “CRITICAL THINKING AND MANAGERIAL DECISION MAKING”

BABU RAM ARYAL
CQUNIVERSITY, AUSTRALIA


Introduction

The major purpose of this essay is to summarize the critical review of the key theories and concepts of critical thinking and managerial decision making. Moreover, it will reflect those theories and concepts that has potential impact on decision making and learning. Thus, it is self-reflective essay which reflects the new insights gained about me and proposes the self-development plan. The first part of the essay discusses the concepts and theories that are significant for learning activities during the lecture and tutorial at campus while the second part discusses about the influence by those activities. Thirdly, it analyses those concepts/theories which have impacted or influenced my professional and personal life. Likewise, the fourth part will elaborate the skills that is essential for decision making and the lacking skills. Furthermore, it will demonstrate improvement techniques for the future self-development and knowledge. Ultimately, the arguments or insights at the end of the essay highlights the use of learning in future career and life.

Significant Concepts/Theories for Learning Activities

Managerial decision-making and judgement have long tradition in management and represents the organisational behaviour psychology and marketing psychology(Beach &Lipshitz, 2017). Thus, all concepts and theories related to critical thinking and managerial decision making described in the unit learning activities are equally important and useful. Decision making is defined as the rational process of logical reasoning which identifies and resolves the problems(Burton, Burgess, Dean, Koutsopoulou& Hugh‐Jones, 2017). Thus, it seeks to define, diagnose, and find the cause of the problem andas well as solves the problem. According to Carnegie school of decision making the decision maker is an individual with unlimited capabilities of information andmust perform the role of profit optimizer when making a rational decision(Gavetti, Levinthal& Ocasio, 2007).
Chapter 9 managerial decision making

There are many theories, approaches, and models of decision making. According to Oliveira (2017, p.1239), “descriptive and normative methodologies such as attribution theory, schema theory, prospect theory, ambiguity model, game theory, and expected utility theory are significant for managerial decision making.” However, Beach & Lipshitz (2017) argues that the classical decision-making theory which describes the choices of an ideal hypothetical decision maker has little relevance of to real-world decisions and rationalise the observed decisions. Furthermore, mostly, the entrepreneurial decision making is noteworthy because it should take consideration of time pressure, uncertainty, consequential extremes and mainstream experimental psychology (perception, social behaviour, cognition) to cognitive behavioural economics (Shepherd,Williams&Patzelt, 2015). On the other hand, the role of cognitive biases and heuristics in decision making is growing fast based on hypothetical decisions (Blumenthal-Barby& Krieger, 2015). Thus, the activities such as entrepreneurial assessment decisions, exploiting opportunities, heuristics analysis using general decision-making framework, review and integrate studies offer comprehensive agenda for future decision making research.

The two major theories relevant to decision making are prospect theory and psychological contract theory which I learned from week-8 are significant for me. The prospect theory analyses the decision under risk and led the way to the development of behavioural economics(Qin, Liu & Pedrycz, 2015). Furthermore, this theory demonstrates that individual’s decision-making is based on the value of potential losses and gains rather than outcome(Gan, 2018). Thus, it makes probabilistic decisions under uncertain circumstances and understands biasness as well as recognises the risk averseness. In the marketing context, it is rational and attempts to understand people's cognitive frames.
What framework can i use for psychological contract?

On the other hand, the psychological contact theory introduced by Rousseau (2004) provides a briefing of her research to date into psychological contracts(Bordia, Restubog, Bordia & Tang, 2017).The psychological contract is defined as promises which are implied or expressed regarding an exchange agreement between the employing firm and agents, as well as between individual and organisations(Rousseau &Gunia, 2016). It is divided into explicit and implied contracts. The characteristics of this theory are: incompleteness, multiple contract makers, voluntary choice, managing losses when contract fail, contract model of employment and belief in agreement; which attracted me mostly in this theory(Koszegi, 2014). Thus, the psychological contracts which are relational, transactional and hybrid has more impact on my interpersonal and professional life than the prospect theory in terms of decision making.
Psychological Contract - Organizing: A Detailed Informational Website

Impact on Interpersonal Relationship, Professional Workplaces and Personal Life

The above-mentioned theories and concepts have highly impacted on my current decision-making process into the interpersonal relationship, professional workplaces or even in personal life. As the regulatory focus theory of decision-making proposes that decision making and goal pursuit via either a promotion focus(Blumenthal-Barby& Krieger, 2015), I focused on the goal chase of being a dream of ‘human resource consultant’. Moreover, empowering leadership is positively related to psychological contract theory(Cassar& Buttigieg, 2015) and it reduces persistence in the face of failure(Hopkins &Yonker, 2015). Thus, through the learning of psychological contract theory in practice helped me to acknowledge exchange and service performance,self-control, more procrastination and active responding at my workplace.

The introduction to the social psychology literature in 60 years ago Festinger’s cognitive dissonance theory (CDT) has been frequently applied to the management to explain and predict the motivational nature of dissonance in producing attitude and behaviour change in managerial decision making and the broader organisational context(Hinojosa, Gardner,Walker, Cogliser&Gullifor, 2017).Additionally, the psychological perspective theory enhances the effective communication, customer-oriented approach, teamwork and help to uncover the potential motivation(Thomson, Outram, Gilligan &Levett-Jones, 2015). 

Thus, personally, I got the opportunity to know more about networking, team engagement, and growth of self-development. Professionally, it benefits to reduce the workplace stress and psychological resilience(Burton, Burgess, Dean, Koutsopoulou& Hugh‐Jones, 2017). Furthermore, the learning of psychological approach during the workplace reducesanxiety, depression, shame, and guilt in association with negative thoughts about the self, negative thoughts about the world, and self-blame (Beck, et. al. 2015, p.3)”. Hence, I can easily manage my stress level during the decision making. Inter personally, it reduces the inter group bias, logistical and psychological difficulties (Gaertner & Dovidio, 2014).That is why, I have more impact of this theory to manage my interpersonal relationship as well as professional life.

Learning Lack of Decision-Making Skills

The lack of soft skill ‘self-confidence is one of the vital causes of indecision (Guan, Capezio, Restubog, Read, Lajom& Li, 2016).According to Al Ariss, Cascio &Paauwe(2014), the research on talent management ™ shows that poor communication and lack of reasoning are two major factors that are lagging in decision-making in business organisations. “Despite their significant presence in western business schools, the needs and experiences of international students have not been adequately reflected in the business education literature”. 

Based on the psychological contract theory of decision making and international education experiences I perceive a variety of explicit and implicit promises made by the central Queensland University which fulfilled my satisfaction (Bordia, Bordia &Restubog, 2015).The learning unit activities demonstrated that I have lack of reasoning skills while doing decision making. Furthermore, I am not consulting on subject matter, poor communication, and poor planning. The activities demonstrated that there is lack of personal efficacy in relationship of many career-related behaviours that is why I realize the failure of recognising my capabilities and talents in career pursuits.

As I have tested the emotional intelligence it demonstrated that the score of 28 in mindfulness which is somewhat acceptable while the social management and social awareness are the elements that I lacked during the assessment. It helped to the key areas of self-awareness regarding emotions, psychological needs, habits, personal values and personality traits. Thus, I have to develop the skills to detect, comprehend and respond to the feelings of others as well as enhance the capacity to motivate, impact, and associate with others and oversee strife.

From week-2, the most significant lesion I learnt is that problem solving, initiatives, strategies and tactics are the major influences which enhances the clarity in critical thinking. During the week three, the deductive vs inductive arguments helped me to know more theoretical basis on critical thinking. The different types of inductive reasoning such as inferences, analogy, generalising from samples, and applying generalisations facilitated me to enter the process of decision making. Moreover, the influencing and persuading activities which I know from this unit are some of the skills which are useful for change resistance.

Self-knowledge and self-development

Week 4 activities taught me the self-awareness which is key to empowering thing, make aware of unhealthy blind spots or weaknesses and ultimately cultivated the habit of learning and self-reflection. Self-motivating, self-disciplined, self-aware and self-improving are some of the major concepts that every decision-maker should be aware of (Koszegi, 2014).The lack of self-knowledge which I have been facing is one of the key foundations for the better living and self-improvement. To develop self-awareness and self-development I will look everything objectively, keep a journal, perform daily self-reflection, write down the plans, goals and priorities in future. Likewise, to come out from stress I will practice mediation, take psychometric and personality tests, and ask feedback from my work. Moreover, I will take the emotional intelligence training as well.
Self knowledge

How to Improve?

“Bookboon’s Long-Term Solution showed that eLearning is a relatively new system of teaching employees the vital soft skills such as making decisions.” (Gurung &Prater, 2017, p.137). Moreover, the self-directed change is essential to come out from those barriers that is why the four important points are essential to improve which I will follow in future: First is informational which will increase awareness and knowledge towards the risks while second component will focus on development of self-regulatory and social skills that is essential to follow the preventive action. 

The third significant theme is skill enhancement and building resilient self-efficacy which will be gained through guided practice and continuous corrective feedback. Finally, the social supports for desired personal changes will be essential to progress. Similarly, temperance, responsibility and perspective are three major aspects of psycho-social aspect of judgement. Thus, I will focus on both cognitive and non cognitive factors of good decision making by examining the existing evidence.

The human resource challenges in managing the issues of relocation and ‘flexipatriates and psychological contract literature’ will be the agenda of future research (Pate & Scullion, 2018). As a human resource student, I even faced this issue and will research on it in future.  TM activities are crucial to ‘retain talented in the case so-called Baby Boomer Generation’ (Dries & De Gieter, 2014). Outsourcing, virtual teams and culture are the major points to be studies to grow business.

Conclusion

In conclusion, the essay survey of critical thinking and managerial decision making based on the presentation slides and activities during the teaching learning method of Unit 20135 of CQUniversity. From this Unit, I am more influenced by the psychological contract theory of individual decision making because it is frequently used and implemented in day-to-day personal and profession life. Likewise, I learned the team engagement and management, leadership skills, motivation skills, decision-making skills,and communication skills from this unit. By the assessment of different leadership and critical thinking, I find lack of communication, cultural adjustment, self-awareness, self-efficacy and self-confidence in my personal and professional life. 

Thus, to improve those abilities I will take training on communication and cultural adjustment. Moreover, I will assess my decision-making skills by taking different psychosocial assessments. Finally, overall my impression to this unit is one of the most significant and fruitful for the future career as well.


Reference List

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