Good Decision Making

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What is good decision making?
A.It should be Ethical
1.Utilitarian criterion—decisions are made solely on the basis of their outcomes or consequences. The goal of utilitarianism is to provide the greatest good for the greatest number. This view tends to dominate business decision making. 2.Focus on rights—calls on individuals to make decisions consistent with fundamental liberties and privileges. •An emphasis on rights means respecting and protecting the basic rights of individuals, such as the right to privacy, to free speech, and to due process. 3.Focus on justice—requires individuals to impose and enforce rules fairly and impartially. There is an equitable distribution of benefits and costs. 4.Advantages and liabilities of these three criteria:

Utilitarianism: a. Promotes efficiency and productivity b. It can result in ignoring the rights of some individuals, particularly those with minority representation in the organisation. •Rights: a. Protects individuals from injury and is consistent with freedom and privacy b. It can create an overly legalistic work environment that hinders productivity and efficiency. •Justice : a. Protects the interests of the underrepresented and less powerful b. It can encourage a sense of entitlement that reduces risk taking, innovation, and productivity. c. Decision makers tend to feel safe and comfortable when they use utilitarianism. Many critics of business decision makers argue that this perspective needs to change. 5. Increased concern in society about individual rights and social justice suggests the need for managers to develop ethical standards based solely on non-utilitarian criteria.

B. Ethics and National Culture
1. There are no global ethical standards.
2. Contrasts between Asia and the West illustrate:
Bribery is commonplace in countries such as China. Should a Western business professional pay a bribe to secure business if it is an accepted part of that country’s...
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