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LEARNING MODULE IN TRENDS, NETWROKS, AND CRITICAL THINKING SKILLS

GRADE 12 HUMSS
SECOND QUARTER, WEEK 5
MODULE NO. 4
INTUITIVE THINKING AND HEURISTICS
TITLE

LEARNING COMPETENCY

Apply intuitive thinking in solving a problem in the community using a map of social networks
(HUMSS_MCT12-Ic-e-4) (HUMSS_MCT12-Ic-e-6)

OVERVIEW / TO DO LISTS
 LEARNER – In this module, you will demonstrate how such models of strategic analysis work.
For you to be able to do the activity correctly, read the instruction on every activity. Ask the guidance of your
parent in doing the activity if there are things you can’t understand on the module.
FACILITATOR – Please facilitate your child upon answering or completing this module. Let them do
the task independently.
INTRODUCTION TO THE LESSON
In this lesson, we shall elaborate on intuitive thinking. We shall further look at the differences between
strategic analysis and intuitive thinking; after which we shall look into some forms of heuristics (thinking or
mental shortcuts() usually associated with intuitive thinking.
LEARNING OBJECTIVES
 Explain the role of heuristics in decision making.
 Demonstrate how such models of strategic analysis work.
 Recognize the importance of heuristics in decision making
WHAT I KNOW
In what situations or occasions in your life did you make decision and were able to employ some of
analytical methods?
LESSON PROPER
REVIEW
Global Network is one the major trends in the twenty-first century. Robert Holton (2008,1) describes it as a
“major feature of contemporary processes of globalization” which are highly evident in the everyday lives of
people and organizations whose area of operations go beyond a country’s own borders. The concept id made
up of two important terms, namely “global” and “network.”

WHAT I NEED TO KNOW

INTUITIVE THINKING AND HEURISTICS

The different attributes or characteristics attributed to the two systems of thinking-intuitive thinking and
strategic analysis--can be grouped into several kinds. Evans (2008, 257), for instance, group them in terms of
consciousness, evolution, functional characteristics, and individual differences. For purposes of simplification,
we shall group them into the following two general kinds: mental attributes and functional attributes. (We
shall reclassify those falling under the other groups in Evans' system of classification into these two general
groups.) The mental attributes refer to the characteristics of the two systems of thinking pertaining to the
mental process involved in them. On the other hand, the functional attributes refer to their properties
pertaining to their form of operation (or to how they function or operate). The following table shows the
respective characteristics of the two systems of thinking grouped accordingly:

Intuitive thinking Strategic Analysis

Mental Attributes
Unconscious (preconscious) Conscious
Implicit Explicit
Automatic Controlled
Low effort High effort
Rapid Slow
Experiential Rational
Impulsive Reflective
Evolutionarily old Evolutionary recent
Shared with animals Uniquely human
Functional Attributes
Intuitive Analytical
Practical Theoretical
Concrete Abstract
Parallel Sequential
Heuristic Rule-based
Holistic Analytic
Independent of general intelligence Linked to general intelligence
Independent of working memory Limited by working memory capacity

1. Satisficing Heuristic - The word "satisficing" is a combination of the words "satisfying" and "sufficing. This
heuristic is at work when, in the course of considering our alternatives, we stop our deliberation when we
come to an alternative that is good enough to satisfy our objectives ("what satisfies suffices"). We also settle
for a choice that is good enough when we no longer have the time to gather all the information to come up
with the best decision. Satisficing often occurs with the phenomenon called temporizing, which occurs when
we say that something is good enough for now or for the time being.

2. Risk-Aversion Heuristic-This heuristic is at work when we make judgments or decisions, or assess the
probability of the occurrence of outcomes, on the basis of the belief that what is certain is preferable to, or is
more valuable than, the uncertain. Because of this belief, we naturally go for the "sure thing." This translates
to our tendency to settle for a sure advantage or gain than to take risks to get a better advantage or gain but
which one is not sure of getting, or to settle for a sure disadvantage or loss than to take risks to have a lesser
disadvantage or loss but which one is not sure of having.

3. Loss-Aversion Heuristic- This heuristic, closely related to the risk aversion heuristic, is at work when we
make judgments or decisions, or assess the probability of possible outcomes, on the basis of the belief that
avoiding losses are preferable to making gains. This translates to the tendency to giving more weight to
disadvantages than advantages in the evaluation of alternative courses of action. Because we are naturally
inclined to prefer to forego the possibilities of gain in order not to lose what we have (Facione 2013, 18), we
immediately put greater value to a choice which will not result in losses though the possible gains will be
minimal, than to a choice which will result in losses though the net possible gains will be maximal or greater
than the possible gains in the first choice. This kind of heuristic is said to lead to the "status quo bias,"
referring to the strong tendency to remain at the status quo, because the losses or disadvantages of leaving
the status quo is given more weight than its gains or advantages. Furthermore, this heuristic is said to explain
the phenomenon called "endowment effect," referring to the tendency of people to give more value to a thing
that they own than to an identical thing that they do not own. If we are selling a thing that we own and an
identical thing that we do not own, assuming that we will have the proceeds of selling both things, there is a
tendency for us to sell the thing that we own at a higher price. And one explanation is the loss aversion
heuristic, in that in selling the thing that we own, we will lose something, whereas in selling that thing that we
do not own, we will not.
4. Availability Heuristic- This heuristic is at work when we make judgments or decisions, or assess the
probability of the occurrence of expected outcomes, on the basis of a belief that a related story or an
experience that happened to us (or to someone close to us) that we clearly remember (or are readily available
to our memory) will happen again. Another way of putting this is that we judge that something will most likely
happen because of examples or similar events that immediately come to our mind.

5. Affect Heuristic- This heuristic is at work when we make judgments or decisions, or assess the probability of
possible outcomes, on the basis of our immediate positive or negative emotional reaction to some idea,
proposal, person, object, or whatever it is that we are deciding on or judging. This affective response,
sometimes called "gut reaction or "gut feeling, is a very powerful influence on our decision or judgment being
so, it would require a lot of System 2 reasoning to overcome it, if it can be overcome at all.

6. Association Heuristic-This heuristic is at work when we make judgments or decisions, or assess the
probability of the occurrence of expected outcomes. On the basis of what a word or an idea reminds us, or of
what we associate with the word or idea. For instance, there are people who associate death with the word
"cancer" which, on the one hand, may lead some people to decide to quit smoking, to have regular medical
check-ups, or on the other hand, to be reluctant to be diagnosed and be treated of a cancer symptom.

7. Simulation Heuristic-This heuristic is at work when we make judgments or decisions, or assess the
probability of the occurrence of expected outcomes, on the basis of how we imagine various scenarios will
happen. As Facione (2013, 18) explains: "People often imagine how a conversation will go, or how they will be
treated by someone else when they meet the person, or what their friends or boss or lover will say and do
when they have to address some difficult issues. These simulations, like movies in our heads, help us prepare
and do a better job when the difficult moment arrives. But they can also lead us to have mistaken
expectations. For simply, things may turn out to be different from what we imagine them to be.

8. Similarity Heuristic- This heuristic is at work when we make decisions or judgments or assess the probability
of the occurrence of expected outcomes. On the basis of a belief that what happened to someone else with
whom we have certain similarities will happen to us as well. The probability that this belief will turn out to be
correct will depend on the relevance of the similarities that are considered. For instance, it one believes that
he/she would be fired from his/her job in a business firm it his/her performance in sales were poor because
his/her co worker was fired due to poor performance in sales, his/her belief has a high degree of probability.
This is because performance in sales is a relevant consideration in firing an employee in a business firm. But if
the consideration is irrelevant, like similarity in zodiac signs, the belief has a low degree of probability.

9. Anchoring-and-Adjustment Heuristic- This heuristic is at work when we make decisions or judgments, or

assess the probability of the occurrence of expected outcomes, on the basis of using a number or a value as a
starting point, serving as our "anchor," which we later on adjust to a level that we find acceptable. The anchor
is usually the first number or value suggested or presented; and often the acceptable adjustment is close to
the anchor. One clear illustration of this tendency is in the context of sales, particularly when the buyer and
seller are negotiating for the price of a good. The price that the seller will first offer usually becomes the
anchor for their adjustments, the basis of their negotiation.

WHAT I HAVE LEARNED

Direction: Write the letter of the correct description for each kind of heuristic.
____ 1. Satisficing Heuristic
____ 2. Loss-Aversion Heuristic
____ 3. Risk-Aversion Heuristic
____ 4. Availability Heuristic
____ 5. Affect Heuristic
____ 6. Association Heuristic
____ 7. Simulation Heuristic
____ 8. Similarity Heuristic
____ 9. Anchoring-and-Adjustment Heuristic
a. Estimates start with one value as the basis
b. What happened to someone one has similarities with
c. Good eneough
d. Gut reaction, gut feeling
e. What a word or an idea reminds a person
f. Losses are more valuable than gains
g. The sure thing is more important
h. imagining various scenarios
i. A vivid memory of a related story experience

LEARNING ACTIVITY SHEET

Name:__________________________________________________________________________________
Grade and Section:__________________________________________________Date:__________________
Directions: Answer the following questions based on the critical thinking skills. (5 points each)
1.Which thinking system do you often use in making decisions, strategic analysis, or intuitive thinking? Explain
your answer.
2. Which for you is better thinking system for making decisions, strategic analysis or intuitive thinking? Explain
your answer.

Criteria
Organization of thought - 3 points
Readability of handwriting - 2 points
Total - 5 points
REFLECTION
Where the instances in your life when the use of heuristics led you to make the right decisions? Elaborate.

REFERENCES
MELC (Most Essential learning Competency)
Trends, networks, and Critical Thinking in 21st Century Culture by Arliegh Ross D. Dela Cruz