Organizational Processes and Characteristics, Part 6

Question 1: Ethical decisions can be difficult to make for the simple reason that the most ethical decision is too often not the most useful one. Discuss the three primary principles that are applied in making ethical choices.

Answer 1: Ethical decisions are made using three types of criteria. The first is the principle of utilitarianism. Utilitarianism is ultimately practical, and holds that a decision is ethical to the degree that it serves the greatest good for the greatest number. This is the approach most in sync with organizations that value profit, production and efficiency. Utilitarianism in concerned with the protection of the many over the few. The second principle used in making ethical decisions is rights. This position prioritizes fundamental rights and freedoms, such as the right to free speech, due process under the law, and the right to privacy, and protects employees who report illegal or unethical business practices to the outside world. The third principle called upon when making ethical decisions is that of justice. Ethically just decisions are, above all, fair and impartial. They distribute costs, benefits and rewards equitably, regardless of gender, age, race, ethnicity or other considerations.

Question 2: Discuss some of the positive and negative attributes of the criteria of utility, human rights and justice in making ethical decisions.

Answer 2: Ethical decisions can be based on utilitarianism, individual rights, justice or a combination of these. It is easy to consider these three principles in terms of ideal benefits. Utilitarianism is often said to provide the greatest good for the greatest number; itself a virtue. Additionally, a utilitarian standard encourages high productivity that is efficiently accomplished, which results in greater results for the greater number of people. However, these positive outcomes are nearly always at the expense of the rights of certain individuals. Using the principle of individual rights in an ethical decision protects individuals as the Bill of Rights intended, but it can create a legalistically entangled environment where little gets accomplished. Prioritizing justice when making an ethical decision means the ‘little people’ who lack power are protected, but it can encourage a lack of innovation and a sense of entitlement that is incongruent with the goals of business.

Question 3: Managers are not always able to make decisions based entirely on the rational model. Discuss some of the restrictions organizations might place on managers and how these restrictions can cause them to deviate from rationally based decisions.

Answer 3: It is not always possible for managers to make decisions based on the rational decision- making model in which the problem is examined and clearly defined; decision criteria is then identified; next, the criteria weighted; all possible alternatives developed; all possible alternatives reviewed; and last, the best alternative chosen. Managers must be careful to make decisions that align with the performance evaluation and reward system of the organization; to act in accordance with organizational policy, rules and regulations; and to meet necessary organizational time constraints. In addition, managers must consider the weight of prior decisions, in that they act as precedents. These limitations can affect the manager’s decision making process by limiting the length of time permitted to draw a rational conclusion. This can result in managers being forced to apply short cuts, or basing the decision in part upon subjective or personal attitudes, values and perspectives.

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