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What are the most important reasoning skills for effective decision-making?

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Decision-making is a crucial skill for any professional, entrepreneur, or leader. It involves choosing the best course of action among multiple alternatives, based on the available information, goals, and constraints. However, decision-making is not always easy or straightforward. It requires a set of reasoning skills that can help you analyze, evaluate, and justify your choices. In this article, we will discuss what are the most important reasoning skills for effective decision-making, and how you can improve them.

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Hariom Singh

Staff TPM | Omni - Health & Wellness | Co-Author - GenAI | PH.D. | MBA | PMP, RMP
Lasha Dolenjashvili

Data Solutions Architect @ Bank of Georgia | IIBA? Certified Business Analyst | Open to Freelance, Remote, or…
Pushpa BN PMP, ITIL 4

Equalizer | Creator | Neurodiversity Advocate |

1 Deductive reasoning

Deductive reasoning is the process of drawing logical conclusions from general premises or rules. For example, if you know that all birds have wings, and that a penguin is a bird, you can deduce that a penguin has wings. Deductive reasoning is useful for decision-making when you have clear and reliable principles or criteria to guide your choices. It can help you eliminate inconsistent or contradictory options, and ensure that your decisions are valid and sound.

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Hariom Singh

Staff TPM | Omni - Health & Wellness | Co-Author - GenAI | PH.D. | MBA | PMP, RMP
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Effective decision-making involves utilizing various reasoning skills. Deductive reasoning helps draw logical conclusions from general principles, while inductive reasoning allows for forming general conclusions from specific observations. Abductive reason, on the other hand, creates plausible explanations for observations with incomplete information. Critical thinking is essential for analyzing and interpreting information objectively, and problem-solving is vital for defining, analyzing, and resolving issues by evaluating and implementing suitable alternatives, ensuring that decisions are well-rounded and informed.

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2 Inductive reasoning

Inductive reasoning is the process of inferring general patterns or rules from specific observations or examples. For example, if you notice that every time you eat spicy food, you get a stomach ache, you can induce that spicy food causes stomach ache. Inductive reasoning is useful for decision-making when you have to deal with uncertain or incomplete information, and when you have to make predictions or hypotheses based on evidence. It can help you discover new insights, generate creative solutions, and test your assumptions.

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Lasha Dolenjashvili

Data Solutions Architect @ Bank of Georgia | IIBA? Certified Business Analyst | Open to Freelance, Remote, or Relocation Opportunities
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Inductive reasoning plays a crucial role in Data Analytics. Perhaps, I can go further and tell you that it is very important when we deal with Machine Learning models, especially the ones that are not very intuitive and don't provide results that can be easily interpreted. Let's take a K-Means algorithm as an example, it helps us segment our customers into k groups based on different variables/features, but it does not tell us anything about the characteristics of each group. Here we need to switch our inductive reasoning on, observe, analyze, further categorize, and make decisions on how the business should approach each group.

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3 Abductive reasoning

Abductive reasoning is the process of finding the most plausible explanation for a given phenomenon or situation. For example, if you see smoke coming from a building, you can abduct that there is a fire inside. Abductive reasoning is useful for decision-making when you have to solve problems or diagnose causes based on clues or symptoms. It can help you narrow down the possible scenarios, identify the root causes, and find the best fit for your goals.

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Pushpa BN PMP, ITIL 4

Equalizer | Creator | Neurodiversity Advocate |
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Logical reasoning based on available evidence, data ,facts can help make right decisions. and when I would not have the #s to support a decision, I would weigh the alternatives. For me reflecting on the decision taken and the consequences helps refine my decision making process.

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4 Critical thinking

Critical thinking is the process of applying logic, analysis, and evaluation to any claim, argument, or evidence. For example, if someone tells you that drinking coffee will make you smarter, you can critically examine the source, the reasoning, and the data behind that claim. Critical thinking is useful for decision-making when you have to assess the quality and credibility of the information you use, and when you have to avoid biases, fallacies, and errors in your reasoning. It can help you make informed and rational decisions, and avoid being misled or manipulated by others.

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Maria Sanchez Pati?o

Creadora de contenido | Consultora en habilidades laborales | Mentora y Conferencista | Ph.D. en Educación
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Critical thinking has specific goals and components. Regarding its goals, we can say that it has individual and social ones. It is intended to achieve high-order reasoning and, through it, be able to make social critique. Only the individual can think and, thereby, create new values for society, and even set up new moral standards to which the life of the community conforms. It is made of skills to recognize problems, to find workable means for meeting those problems, to gather and analyze pertinent information, to recognize unstated assumptions and values, etc. And it also includes the disposition to use those skills, and the habit of applying them when facing problems and situations. A lot of things? Absolutely! But it makes us better.

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5 Creative thinking

Creative thinking is the process of generating novel and original ideas, perspectives, or solutions. For example, if you have to design a new product, you can creatively brainstorm different features, functions, and benefits that would appeal to your customers. Creative thinking is useful for decision-making when you have to face complex or novel challenges, and when you have to find innovative or unconventional ways to achieve your goals. It can help you explore multiple possibilities, overcome obstacles, and create value.

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6 Reflective thinking

Reflective thinking is the process of reviewing and evaluating your own thoughts, actions, and outcomes. For example, if you have made a decision that turned out to be wrong, you can reflect on what went wrong, what you learned, and what you can do differently next time. Reflective thinking is useful for decision-making when you have to learn from your experience, and when you have to improve your reasoning skills and performance. It can help you identify your strengths and weaknesses, correct your mistakes, and grow as a decision-maker.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the most important reasoning skills for effective decision-making?

1

2

3

4

5

6

7

1 Deductive reasoning

2 Inductive reasoning

3 Abductive reasoning

4 Critical thinking

5 Creative thinking

6 Reflective thinking

7 Here’s what else to consider

Decision-Making

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What are the most important reasoning skills for effective decision-making?

1

2

3

4

5

6

7

1 Deductive reasoning

2 Inductive reasoning

3 Abductive reasoning

4 Critical thinking

5 Creative thinking

6 Reflective thinking

7 Here’s what else to consider

Decision-Making

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