Critical Thinking in Business

Senior (College 4th year) ・Management ・APA ・3 Sources

Application of Critical Thinking in a Business

When individuals or business face problems, taking the right decision is essential. The current dynamic business environment requires every organization to enhance and develop the concept of critical thinking to their workforce to remain competitive and productive. Critical thinking concept assists the firm to identify the benefits and dangers of the possible outcome of a situation, valuing each of them based on the forecasted goals or objectives. According to Chaffee (2014), critical thinking focuses on measuring the soundness of beliefs and assumptions through the use of different cognitive skills such as problem analysis, interpretation, evaluation, inference, and explanations.

Critical thinking in the current businesses plays vital roles such as making an organization capable of tackling new challenges. It promotes creativity and innovation where the firm through its employees come up with creative solutions to the emerging problems by evaluating new ideas and choosing the best one to acquire a competitive edge (Goetsch & Davis, 2014). Again, the skills of critical thinking enable the employees to have a more efficient plan, solve problems more professionally, and handle the ever-increasing flow of digital information. Finally, Goetsch & Davis (2014) asserts that the application of critical thinking in the business results in making better-informed decisions with fewer mistakes, which improves the level of partnership among people. As a result, it enhances team advancement, where, during the decision-making process, the whole team gets involved.

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In business, mere formulation of a problem is essential than its solutions. According to Bryman & Bell (2015), problem formulation is the creative steps towards overcoming an issue other than solving it. The initial process of problem formulation is choosing an area of interest, to this case, selecting the business area that is problematic. The second step is narrowing down to the particular problem through critical thinking and adequate research. Another step is writing the problem formulation, and determining whether the question can be answered. Finally, double check the raised question and sub-question by determining whether the question is answerable.

Critical thinking and creative thinking are two contradicting expressions with different meanings. The concept of creative thinking is a way of looking at situations or issues from a new perspective to conceive something original or new (Goetsch & Davis 2014). It means, concentrating on generating something new by disregarding the accepted principles. On the other hand, critical thinking is the sequential and logical disciplined process of analyzing, rationalizing, evaluating and interpreting information to make informed and correct decisions or judgments (Chaffee, 2014). It seeks to assess the validity or worth of something in existence by applying the accepted principles.

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Individual’s personality plays a substantial role in critical thinking as every person’s understanding and thinking level vary. Studies have affirmed that critical thinking is a combination of individual attitude, knowledge, and performance, which are personal traits. For instance, people with the trait of agreeableness does not differ with others, which means, they do not question the obvious, or conduct analysis and evaluation of the existing facts. On the other hand, knowledgeable people are curious about digging deep into the current information to acquire a substantial basis, making them real critical thinkers (Chaffee, 2014).

Critical thinking is an essential process, which leads to the informed and analyzed conclusion by proper use of cognitive skills. The application of the skills can be made in various contexts to measure the soundness of a given hypothesis or idea presented as the answer to an issue. Both creative and critical thinking can work together although they are distinct when business problems demand innovative and advanced solutions. The application of critical thinking in the organizations results in tackling new challenges, making better decisions, and improves the partnership or teamwork among the employees.

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  1. Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.
  2. Chaffee, J. (2014). Thinking critically. Cengage Learning.
  3. Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: Pearson.
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