Ethical Decision Making in Organizations

Today ethical decision making has become a top priority for many companies after recent breacks of public trust.

 http://www.youtube.com/watch?v=uO0gOyPVj6A

The decisions can be programmed  or non programmed

Programmed: A simple routine matter for wich a manager has an stablished decision rule.

Nonprogrammed Decision: A new, complex decision that requires a creative solution.

Models of Decision Making:

Effective Decision: A timely decision that meets a desiredabjective and is acceptable to those individuals affected by it.

Rational Model: Describes how individuals should behave in order to optimize some outcome.

Bounded Rationality Model: a theory that suggests that there are limits upon gow rationala decisionmaker can actually be.

Garbage Can Model: A theory that contend that decisions in organizationsare random and unsystematic.

http://hubpages.com/hub/When-Personal-Values-Conflict-With-Ethical-Decision-Making

Managing Risk Taking Behavior.

-Effective decision making under uncertainty.

-Allow employees to fail with out fear od punishment .

-Fear of taking risks stifles creativiti and innovation.

 Escalation of Commitment:

The tendency to continue to commit sources to a failing source of action.

Participative Decision Making:

Decision making in wich individuals are affected by decisions influencethe making of those decisions.

Groupthink:

A deterioration of mental efficiency reality testing and moral judment resulting from pressures within the group

Techniques for Group Decision Making:

Brainstorming.

Nominal group technique.

Delphi technique.

Devils advocacy.

Dialectical inquiry.

Ethics:

Behavioral nors and rules. do the rigth thing .

Ethical Theories.

Consequential Theory.

Rule-Base theory.

Character theory.

Ethical Behavior.

Acting in ways consistent in ones personal values and the commonly held values of the organization and society.

Locus of Control.

Personality variable thats affects individual behavior.

Question:

How can organzations effectively manage both risk taking and scalation of commitment in the decision making behavior of employees?

Organizations can manage this risk decision making by fragmenting the decisions making in steps of aprovation inside a group, if the mayority agree the decision can be made, but always all the group is going to have the responsability.

References:

Mintzberg, H. & Westley, F.(2001, Spring).Decision making: It is not what you think. MIT sloan managment review.

D.L., Nelson, and Quick J.C.. "Organizational Behavior: Science.." The Real Worls and You. 7. (2010): 3-29.. Print.

Wong, K.F.E., & KWong J.Y.Y. (2007) .The role of anticipated regret in scalation of commitment. Journal of applied physcology,92,545-554.