Introduction
Critical thinking is a device that can be used to analyze and evaluate many aspects of our life. It can help provide solutions to problems that we may face, or help us to determine the whether we believe an assertion is true or false. In order to use critical thinking, one must learn how to do so. The 11 step method by M. Neil Browne and Stuart M. Keeley (2010) is an essential tool for developing critical thinking skills (Browne & Keeley, 2010). Their book will provide as a basis to conduct an evaluation on a memorandum identifying “whether the compensation level for PDQ’s CEO is appropriate to the position with respect …show more content…
In the memo, Headlee informs that reader that a recent academic paper cited in the Baltimore Sun makes the argument that excessive pay to CEO’s was the actual cause of the recent U.S. recession. This can be classified as a rival cause as an alternative explanation could possibly be the cause of the recession. For example, a study by Thomas E. Lambert (2011) list causes of the 2007–09 global recession which include lower mortgage lending standards, central banks keeping interest rates low, consumers borrowing too much money because of rising home prices, government agencies and policies encouraging home ownership and encouraging lenders to take on more risk (p.250). Since other claims about the cause of the recession have been offered, Headlee’s claim that the recession was caused by excessive pay to CEO’s is weakened. Another weak point in Headlee’s memorandum is the use of deceptive statistics.
Are the Statistics Deceptive?
Headlee uses the statistics to persuade the reader by stating that everyone in the Human Resources field knows that “pay for performance” is the most effective compensation method. How does Headlee know this? He has not provided any statistical evidence that proves this statement, and has delivered a deceptive statistic in his memo. While deceptive statistics fail to strengthen the quality of reasoning in the memo, to continue to evaluate it, the information Headlee left out must be identified.
What Significant Information is