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Ethics as a part of the Decision Making Process


 Ethics as a part of the Decision Making Process


Decision making is one of the biggest challenges faced by managers today as this is one of the critical processes that have a direct impact on the output of the company. It is therefore necessary to develop this skill continuously to keep up with the changing industry standards (de Sousa et al, 2015). The extensive use of experience, intuition and rationality is required to accomplish superior performance in the modern market. This process of decision making can make the difference between the express successes of the mentioned company in relation to its rivals.

The process of decision making involves setting objectives, finding and evaluating alternatives and then proper implementation of the decision.  Therefore this process requires careful analysis of given data and an extensive research into the alternatives to properly make an effective decision to tackle an existing problem. The purpose of this assignment is to analyze the various decision making processes and criticize the role of ethics as a part of the decision making process. It shall start with the basic 3 models of decision making that are used by managers worldwide. It shall then strive to critically analyze whether ethics should be a part of the decision making process. Lastly, this assignment shall look into a case study and try to conclude whether the decisions taken could have been altered for better outputs and shall also recommend changes for the same. It shall also strive to understand the importance of the decision making process in relation to the management of an organization.


1. Describe 3 models used by managers to make business decisions (300)

Managers worldwide generally use 3 models to assess the data and take critical decisions related to the business of the company. These models have been widely reviewed and accepted by organizations. The models help in reaching a decision through a structured analysis and comparing them to various alternatives. Therefore this is a critical process that requires managers to be educated about existing industry and market conditions and how it affects various sectors of their business. It is also important to identify the problem that given rise to tension in the business organization. Hence, identifying the problem is the first step towards any decision making process regardless of the model in question.

The 3 models used by managers are:

·         The Rational/Classical Model

This is often regarded as the traditional decision making model as this is the model that humans have followed or comes naturally. This is a very straightforward process where the problem is identified and respective alternatives are known completely. Then a careful analysis is carried out and the final decision is taken. As the name suggests, this is the rational take on decision making as this process assumes that all alternatives and their various implications are known (Craft and Howlett, 2012).

·         Bounded Rationality Model or Administrative Man Model

Bounded rationality is a school of thought about decision making that developed from dissatisfaction with the “comprehensively rational” economic and decision theory models of choice (Jones, 2001). This process involves identifying a problem and choosing the best solution for it at that moment. This process keeps changing with different objectives and market conditions as well as the problems that are faced by the company. This assumes that it is next to impossible to review all available alternatives and hence this model settles for the best available solution at the moment of evaluation.

·         Retrospective Decision model

This model focuses on the alternatives present without considering external alternatives options. This is a very radical process that often exchanges results for speed. The decision maker makes a decision solely based on what he/she thinks is best suited for the company.

2. Critically evaluate whether ethics should be a decision making criteria.

Ethics is the ways in which we do, and should, treat each other. This extends from the ‘bedside to the boardroom’ and everywhere in between, and includes individuals as well as groups (Mb-phen.ca, 2018). Taking decisions can be a hard choice for people and hence ethics helps the decision maker to take appropriate decisions without complications. The modern world is scattered with dynamic markets with a plethora of employees working together in close quarters. This is an extremely volatile workplace environment as many cultures mix and match together. This ensures that cultures clash constantly. Therefore, managers and team leaders have to take special attention to see to it that these factors do not affect the overall productivity of the company. These social factors play an important role in the success story of the company as those that manage to do well in these grounds tend to enjoy a culturally diverse workforce that brings with it certain advantages over its rivals.

Managers tend to dial in ethics as a part of the decision making process as these help in upholding the various individual rights of the indigenous groups and protects the sanctity of the work environment. Ethics help in protecting the company as well from various lawsuits that may arise from unforeseen circumstances. If decisions are unethical, it may hurt the feelings of various cultural groups giving rise to mutiny, stress and overall losses for the company. Therefore, decisions should always be taken strategically and ethically to ensure that all groups are satisfied.

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