According to Sims (pg. 273) ethics refers to the acceptable behavior or conduct within the organization. Ethics are derived from the constitution of the organization or from the professional requirements. All organizations have ethics which guide all the stakeholders. Business ethics are the requirements that are established for the proper operation of the activities in a successful manner. Various professions have ethics which regulate the conduct of all the individuals in a particular profession. Ethics are accompanied by punishments so that those who do not abide by the rules are deemed to have broken the rules and they should be punished according to the established mode of punishment (Heiny, para. 23).
Decision making is the process of creating policies to be used in the achievement of the goals and objectives of the organization. The process of making decisions within the organization is a step-to-step activity. Decision making involves solving problems which are affecting the organization and its stakeholders. The entire process involves establishing solutions to the problems facing the organization. Several individuals are involved in the decision making. The ultimate decisions to be used as the policy must be screened by the top management of the organization. The success of any organization depends on the decision made by the management (Fitch, para. 9).
Ethical decision making is the process where the proper procedures are followed when solving the problems facing the organization. To make decision within the organization the management should follow several steps to achieve the best decisions. The management should involve all the people affected by the decisions to ensure the ethics are observed. Joy within the workplace is achieved when the goals are achieved. The achievement of the goals within the organization is determined by the quality of decisions made by the management. Quality decisions are those which are consistent with the ethical standards of the organization as well as the goals which have been established (Fitch, para. 9).
The workplace is the environment where the business is located. The organization operates within internal and external environments which determine the type of decisions to be made. The management should ensure that all the environmental considerations are put in place when making decisions. Decisions made by the management are for the success of the entire organization. All organizations have goals to be achieved and the decisions made should be directed towards the goals. For example, business organizations are established to make profits and the decisions made by the management should be directed towards improving the profits of the business (Eddleston, Otondo, and Kellermanns, para. 34).
Decision making process
Identification of the problem the organization experiences is the initial step in decision making. The problem may be shortage in raw materials, issues relating to human resources management, budgeting, capital management, business strategies and many others. The management should use the stakeholders to identify the problems within the organization that need to be addressed. The people directly affected by the organizational activities are appropriate sources of ideas about the problems the organization is facing. Since the executive management team is not directly involved in the activities of the organization, the employees at the lowest level of the organization should be used as the main source of decisions to tackle the problems (Caine and Robson, para. 12)
After the problem is identified, all the possible solutions to the problem are identified. The solutions are collected from the customers, employees, partners, suppliers and many others. The organization can employ a team of researchers to collect all the possible solutions to the problems facing the organization. All the stakeholders to the organization should be involved to obtain the different possible solutions. To obtain the solutions the management should use the problems identify to locate the source of the problems. Solutions to any problem within the organization are located where the source to the problem is (Caine and Robson, para. 12)
All the possible solutions are screened to identify the best solution. Not all the solutions are suitable to specific problems facing the organization. All the possible solutions identified in the previous step are scrutinized to identify the applicable solution to the business. The management involves professionals in the process of screening the solutions. Professionals at different departments are used to identify the applicability of the decisions and the consequences of the decisions when implemented. The management identifies the best strategy to be adopted as the business decision (Caine and Robson, para. 12).
Implementation of the decision is done to ensure the decisions are put into action. The implementation of the decision should involve the technical personnel within the organization. All the aspects of the decision are incorporated in the implementation strategy. Proper strategies should be laid down to ensure all the aspects are captured in the implementation process. The decision makers provide with the directions to be followed when implementing the decisions. The management should control all the factors to ensure efficiency is achieved in the implementation. There should be a time frame to guide the beginning and end time of the project. The time frame ensures no delays in the implementation of the decision. Adequate financial resources should be provided to the project to ensure no deficiency of funds. The technical knowledge required should be provided through training of the employees involved. The management has the obligation to ensure that the decisions are implemented according to the policies of the organization (Sims, pg. 281).
Evaluation is the next stage where the success of the implementation is done. The management evaluates how successful the employees are in implementing the decision. Evaluation is done by comparing the actual with the expected performance of the implementation team. The professionals in certain departments are used to evaluate the technical aspects of the implementation of the decisions (Sims, pg. 107).
Feedback is the last step in decision making. Feedback refers to the information about the success or failure of the decision making process. The management should discuss how successful they have been in the development implementation and evaluation of the decisions made within the organization. Feedback is used to provide with the decision whether to use similar strategies of making decisions or to change the procedure. The feedback closes the loop such that the entire process becomes a closed loop (Betsch, and Haberstroh, pg 241).
Problem identification obtaining possible solutions evaluating the solutions
Feedback evaluation implementing the decision
Factors to consider when making decisions within the organization
The resources of the organization: The management should ensure the organization has all the resources required to implement the decisions made. Resources include the human resources, financial resources, professional knowledge and capacity, legal resources and many others. The quality of the decisions made depend on the ability to match the resources of the organization to the decisions made (Beach, pg. 128).
Legal aspects: there are legal regulations and requirements within the country in which the organization operates. The decisions made should adhere to all the legal aspects. Decisions which contravenes the legal ethics should be discarded since they are may create conflicts which may affect the whole organization. Ethical decisions should be made with consideration of all the legal aspects of the regions the organization operates in (Betsch, and Haberstroh, pg 241).
The long-term goals of the organization: all organizations have a mission and a vision to guide all the activities being performed. The overall goals should be considered when making the decisions within the organization. Any decisions which are contrary to the goals should not be accepted. The mission and vision of the company provides a guideline to the decisions to be made within the organization (Beach, pg. 120).
The stakeholders of the organization: stakeholders are the people and organizations affected by the decisions made by the organization and include customers, suppliers, employees, debtors, creditors, partners, non governmental organizations, the government and many others. All the stakeholders have an interest in the organization. The decisions made should not create conflicts with the interests of all the stakeholders (Sims, pg. 90).
Unethical decision making
Unethical decisions are those which are not supported by the rules and regulations of the company. These are decisions which do not comply with the legal standards of the environment in which an organization is located. Unethical decision making may be contributed by application of poor professional standards when developing policies of the organization (Sims, pg. 24).
Making unethical decisions in the workplace is bound to result to conflicts not only amongst the workers but also with the society or the stakeholders of the particular business. It is unfortunate that many decisions in businesses are made from a legal or utility point of view with very little if any focus being made towards considering the ethical impact of the decision. As such, a business organization usually becomes affected negatively by unethical decisions. The ethical standards that are held by either individuals or the society are jeopardized by failure to take the ethical element into consideration while making decisions with an ethical dilemma (Betsch, and Haberstroh, pg 241).
Testing ethical decisions
To determine whether decisions are ethical or not will involve the use of various parameters. The corporate policy is one of the parameters which determine whether a decision is ethical. The corporate policies are the rules and regulations which are contained in the constitution of the organization. They provide a guide to what is right or wrong. Decisions which are contrary to the corporate policy are unethical and create conflicts within the organization. All organizations have policies which govern the conduct of the activities. Such policies should be used as a measure of the proper decisions within the organization (Healy, para. 43).
Professional codes of ethics are used to determine ethical decisions. Several professions have codes of ethics which determine which is right or wrong, for example, accounting is guided by the International Standards of accountancy (ISA). The codes of ethics should be given priority when making decisions for the organization. The team making the decisions should include all the professionals in the organization to provide guidelines about the requirements and the ethics in the decisions being made. Representatives from all departments should be included in the decision making process to ensure their needs are addressed in the decisions made (Goodman, para. 16).
The golden rule of any organization can be used as a parameter to determine the ethical decisions made within an organization. The golden rules are established when the organization is being founded and should not be broken by ant person. The decisions made by the management should abide by the provisions of the golden rule. The management is the custodians of the golden rules and should safeguard such rules when making decisions (Reinalda, and Verbeek, pg. 24).
Decision making is a process which involves steps. The steps used making decisions should be adhered to ensure no confusion of ideas. Failure to follow the laid down procedures will create conflict of ideas and the overall decisions will not be appropriate. Ethics are regarded as the principles or right or wrong in any society. Since ethics are determined by a society’s perception of what is right or wrong, the ethical decision process puts this into consideration. The management of the organization should be responsible for all the decisions made. The decisions should consider the interest of all stakeholders within the organization. Unethical decisions should be avoided at all costs to reduce conflicts which may create losses to the organization. Both internal and external environments are affected by the decisions made by the management. Consideration is made about all the environments in which an organization exists when making decisions. The professionals within the organization should be included in the decision making to ensure the professional ethics are adhered to. The golden rule ought to be followed to ensure the decisions are ethical.
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