Normally, the level of performance that this employee demonstrated was so poor as to warrant a written warning, the first step in the process towards dismissal. However, I applied my critical thinking skills to the situation. The person's current behavior was inconsistent with her past behavior. I decided to gather information. The next morning I noticed that she was late again, and I monitored her behavior. I continued monitoring over the course of the day. I now had more information to go on, but it was not enough. I caller her in to speak to her directly. Information gathering is essential to critical thinking. I learned that she had some profound personal issues that were distracting her, and making it difficult for her either to be punctual or to perform at an acceptable level. I gathered more information from my fellow team leaders about the best ways to handle such a situation, and I consulted the company's policy manual. I processed all of the information I had gathered and was able to use that data to formulate a decision. While her level of competence was unacceptable, and would likely continue to remain that way...

I made her that offer. She accepted the offer, even though we could not pay her for the time away. She was able to resolve the situation, and eventually returned to work. She has acquitted herself wonderfully since returning and has now been promoted into another department. The company retained a valuable asset and the employee was able to deal with her problem free from distraction -- outcomes that might not have occurred had I simply made a gut decision based on inadequate information.
Works Cited:

Scriven, M. & Paul, R. (1987). Critical thinking as defined by the National Council for Excellence in Critical Thinking. Foundation for Critical Thinking. Retrieved March 14, 2010 from http://www.criticalthinking.org/aboutct/define_critical_thinking.cfm

Schachter, D. (2006). The importance of good decision-making. Information Outlook. Retrieved March 14, 2010 from http://findarticles.com/p/articles/mi_m0FWE/is_4_10/ai_n16533561/