In the fifth class we saw the topic “Ethical decision making in organizations”.
In our lives there are programmed decisions (routine) and non programmed decisions (More complex, requires creative solution).
The decision making process is:
- · Recognize the problem and the need for a decision.
- · Identify the objective of the decision.
- · Gather and evaluate data and diagnose the situation.
- · List and evaluate alternatives
- · Select the best course of actions.
- · Implement the decision.
- · Gather feedback.
- · Follow up.
There are different model of decision making:
- · Rational Model says how an individual should act in order for him to obtain a reward.
- · Bounded rationality model suggests that limits are present upon how rational a decision maker can be.
- · Garbage can model says organization make decisions randomly and unsystematically.
Escalation of commitment is when an individual continue committing its resources to a failing course of actions, it can occur for different reasons like personal pride, and individuals should deal with it by splitting responsibility for decisions.
Some companies need more creativity than others. There are some blocks that diminish creativity like trying to be logical or being afraid to look foolish.
Group think is a deterioration of mental efficiency resulting from the pressures of being inside a particular group, it can lead to biased of the information processing and to a failure to work out contingency plans.
There are different techniques for group decision making like:
- · Delphi Technique: Gathering expert’s judgements to make decisions.
- · Devil’s Advocacy: Prevents group thinking, a group or an individual critics during the decision making.
- · Dialectical Inquiry: Debate between two opposite sets of recommendations.
Cultural differences in decision making can lead to problems selected, time orientation belief in the ability of people to solve problems and more.
Values are the principle that distinguishes what is bad from what is wrong, it is internal, ethics are behavioral right and rules are external, and social responsibility is the obligation of an organization to behave in ethical ways.
There are also some ethical theories like:
- · Consequential Theory: Emphasizes on the results of a behavior.
- · Rule-based theory: Emphasizes the character of the act.
- · Character theory: Emphasizes the individual’s character, personal virtues and integrity.
Locus of control is a personality variable that affects individual´s behavior; it can be internal or external.
Machiavellianism is a personality characteristic indicating one’s willingness to do whatever it takes to get one’s own way.
The cognitive moral development is the process of moving through stages of maturity in terms of making ethical decisions, there are three levels.
- · Level One “Premoral level”
- · Level Two “Conventional level”
- · Level Three “Principled levels”