Ethics Presentation Sel

8/4/2019 Ethics Presentation Sel

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Corporatevalues, ethics

and beliefsunderlying

decisionmaking


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Ethics

Ethics is also called moralphilosophy.

This branch of thought seeks to

understand fundamental values, both

personal and professional and how toeffectively facilitate actions to reflectthose values.


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What are business Ethics?

Business ethics (also known ascorporate ethics) is a form of appliedethics or professional ethics that

examines ethical principles andmoral or ethical problems that arisein a business environment. It applies

to all aspect of business conduct andis relevant to the conduct ofindividuals and entire organisation.


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Ethical business behaviour

Ethical business behaviour may be defined by law, but itcan also be defined by business leadership. Generallyspeaking an action or choice can be considered ethicallycorrect if it s honest, fair, supports a beneficial outcome forboth parties and generally enables the overall corporateimage and vision.

The definition of ethics does nothing in itself to motivateethical behaviour. While there is no way for any company toforce ethics, the corporate culture and any written code ofethics or conduct certainly help to create an atmosphere

where ethical behaviour becomes more natural. Forexample: when employees feel fairly treated and rewarded,they are less likely to undermine the culture. Similarlywhen employees see their leaders being treated equally inethical decision and issues, it inspires trust.

With this mind, understanding the definition of ethics andado tin a sound business code of ethics needs to be a


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Corporate values

Definition

The operating philosophies or principlesthat guide an organization'sinternalconductas well as its relationship with its customers,partners, and shareholders. Core values are

usually summarized in themission statement or in the companysstatement of core values.
http://www.investorwords.com/3455/operating.htmlhttp://www.businessdictionary.com/definition/principles.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.investorwords.com/10073/internal.htmlhttp://www.businessdictionary.com/definition/conduct.htmlhttp://www.businessdictionary.com/definition/relationship.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/partner.htmlhttp://www.businessdictionary.com/definition/shareholder.htmlhttp://www.businessdictionary.com/definition/core-values.htmlhttp://www.businessdictionary.com/definition/mission-statement.htmlhttp://www.businessdictionary.com/definition/statement.htmlhttp://www.businessdictionary.com/definition/statement.htmlhttp://www.businessdictionary.com/definition/mission-statement.htmlhttp://www.businessdictionary.com/definition/core-values.htmlhttp://www.businessdictionary.com/definition/shareholder.htmlhttp://www.businessdictionary.com/definition/partner.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/relationship.htmlhttp://www.businessdictionary.com/definition/conduct.htmlhttp://www.investorwords.com/10073/internal.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/principles.htmlhttp://www.investorwords.com/3455/operating.html


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Beliefs

Intuitive decision making

Making decisions on the basis of

experience, feelings, and

accumulated judgement.


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Belief

Experience-basedDecisions

Affect-InitiatedDecisions

Cognitive-BasedDecisions

Subconscious mentalprocessing

Values or ethics-basedDecisions

Their past experiences

Feelings or emotions

Skills,knowledge, and trainingData fromsubconscious mind

Ethical values andculture

What isBelief?


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Organisational Decisionmaking

the process of respondingto a problem by searching for

and selecting a solution or course

of action that will createvalue for organisational

stakeholders.

There are basically two kinds of decision thatmanagers called upon to make:

Programmed and non-ro rammed


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Types of ProgrammedDecisions

Policy

* a general guideline for making adecision about a structured problem.

Procedure

* a series of interrelated steps that amanager can use to respond ( applying a

policy) to a structured problem. Rule

* an explicit statement that limits what

a manager or employee can or cannotdo.


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Programmed vs. Non-

programmed DecisionsCharacteristics Programmed decisions Non-programmeddecisions

Type of problem Structured Unstructured

Managerial level Lower level Upper level

Frequency Repetitive New,unusual

Information Readily available Ambiguous or

incompleteTime frame for solution Short Relatively long

Solution relies on Procedures,rules, andpolicies

Judgment and creativity


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The Decision-

Making Process

Define theProblem

EvaluateAlternatives

Implement thechosen Alternative

Gather facts anddevelop

alternatives.

Select the bestalternative.

Follow up andevaluate the chosen

alternative.


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Step 1: Identifying theProblem

Problem

* A discrepancy between an existing anddesired state of affairs.

Characteristics of Problems

* A problem becomes a problem when amanager becomes aware of it.

* there is a pressure to solve the problem.

* the manager must have the authority,information, or resources needed to solvethe problem.


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Step 2: Identify the

Decision Criteria Decision criteria are factors that areimportant ( relevant) to resolving theproblem.

* Costs that will be incurred(investment required).

* Risks likely to be encountered

( chance of failure).* Outcomes that are desired

( growth of the firm).


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Step 3: Allocating Weightsto the Criteria

Decision criteria are not of equalimportance:

* Assigning a weight to each item.* Places the items in the correct

priority order of their importance in thedecision making process.


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Step 4: DevelopingAlternatives

Identifying viable alternatives.

* Alternatives are listed ( withoutevaluation) that can resolve the problem.

Step 5 :Analyzingalternatives

Appraising each alternatives strengthsand weaknesses

* An alternatives appraisal is based on itsability to resolve the issues identified in step

2 and step 3.


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Step 6: selecting thealternative

Choosing the best alternative

* The alternative with the highesttotal weight is chosen.

Step 7: Implementing theAlternative

Putting the decision to and gainingcomment from those whose willcarry out the decision.


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Step 8: Evaluating thedecisions effectiveness

The soundness of the decision isjudged by its outcomes.

* How effectively was theproblem resolved by outcomesresulting from the chosenalternatives?

* if the problem was not resolve,what went wrong?


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Decision-making styles

Dimensions of decision-making styles

* Ways of thinking

* Rational,orderly, and consistent.

* Intuitive, creative, and unique.

Tolerance of ambiguity*Low tolerance: require consistency and

order.

*High tolerance: multiple thoughtssimultaneousl .

D i i M ki St l


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Decision-Making Styles(contd)

Types of Decision Maker

v Directive: Use minimal information and

consider few alternatives.v Analytic :Make careful decisions in

unique situations.

v Conceptual : Maintain a broad outlookand consider many alternatives inmaking decisions.

v Behavioral: Avoid conflict by workingwell with others and being receptive tosuggestions.


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Characteristics of anEffective Decision-Making

It focuses on what is important

It is logical and consistent.

It acknowledges both subjective and

objective thinking and blends analyticalwith intuitive thinking.

It requires only as much information andanalysis as is necessary to resolve aparticular dilemma.

It encourages and guides the gathering ofrelevant information and informed opinion.

It is straightforward,reliable, easy to use,


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A General-DecisionMaking Model


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A General Decision-Making

modelw Improving the Flow of

Knowledge

The flow of constructive tacitknowledge between coworkers is apriority.

Knowing what you know, what you

dont know, and how to find what youknow yields better and more timelydecisions.


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w

Knowledge Management (KM): ATool for Improving the Quality ofDecisions Developing a system to improve the

creation and sharing of knowledgecritical for decision making.

Tacit knowledge: personal, intuitive,and undocumented privateinformation.

Explicit knowledge: readily sharablepublic information in verbal, textual,

visual, or numerical form.

(Contd)


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w Knowledge Management (KM): A Tool forImproving the Quality of Decisions

Developing a system to improve thecreation and sharing of knowledge

critical for decision making.Tacit knowledge: personal, intuitive,

and undocumented privateinformation.

Explicit knowledge: readily sharablepublic information in verbal, textual,visual, or numerical form.

(Contd)


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Bureaucratic models of decision makingwhere decisions are shaped by the organizations standardoperating procedures(SOPs).

Political models of decision makingwhere decisions result from competition and bargaining among

the organizations interest groups and key leaders.

Garbage can modelwhere states that organizations are not rational and thatdecisions are solutions that become attached to problems foraccidental reasons.

Organizational Models of Decision-Making


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Individual Models of Decision-Making

Cognitive style

Underlying personality dispositions toward the treatment of information,selection of alternatives, and evaluation of consequences.Systematic decision makers people who approach a problem bystructuring it in terms of some formal method.

Intuitive decision makers

people who approach a problem with multiple methods in anunstructured manner, using trail and error to find a solution.

Organizational models of decision makingModels of decision making that take into account the structural andpolitical characteristics of an organization.


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Challenges for DecisionMakersw Decision Making

The process of identifying and choosing alternative courses ofaction to meet the demands of a situation.

w Trends in Decision Making The pace of decision making is accelerating: managers report

making more decisions and having less time to make them. Complex streams of decisions Sources of decision complexity Perceptual and behavioral decision traps


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w Dealing with Complex Streams ofDecisions Multiple criteria to be satisfied by a decision.

Intangibles that often determine decision alternatives.

Risk and uncertainty about decision alternatives.

Long-term implications of the effects of the choice of aparticular alternative.

Interdisciplinary input increases the number of persons to beconsulted before a decision is made.

(Contd)


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Pooled decision making increases thenumber of persons playing a part in the decision process.

Value judgments by differingparticipants in the process create disagreementover whether a decision is right or wrong, good or bad, andethical or unethical.

Unintended consequences occur becausethe results of purposeful actions cannot always be predicted.

(Contd)


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Classical model of managementTraditional description of management that focused on itsformal functions of planning, organizing, coordinating, deciding

and controlling.

Behavioral modelsDescriptions of management based on behavioral scientistsobservations of what managers actually do in their jobs.

Managers and Decision-Making


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Techniques for improving decision

makingw Brainstorming idea generation for decision making.w Nominal group technique (NGT)- problem

outlined, presentation of solution in written form, discussionover written solutions, and final decision.

w Delphi technique- decision made on the basis ofquestionnaire filled by the respondents.

w Consensus mapping- decision made on the basis ofthe report presented by the representative of each group after

National and cultural


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National and culturalcharacteristics influencing

decision makingv Individual factors:

Beliefs underlying decision making: People from different cultural backgrounds likely to have

different beliefs about right and wrong, different values,etc. and this will inevitably lead to variations in ethicaldecision-making across nations, religions and cultures.

Hofstede (1980; 1994) influential in shaping ourunderstanding of these differences our mentalprogramming.

Individualism/collectivism

Power distance


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ULTIMATELY, THE QUEST FORORGANIZATIONAL

TRANSFORMATION MUST BEGIN WITH APERSONALCOMMITMENT WITHIN EACH INDIVIDUALTO PURSUE MORAL EXCELLENCE.

Conclusion

Ethics Presentation Sel

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