Decision Making Approaches to decision making The decision making process Participation Vroom decision tree

Approaches to Decision Making Rational Bounded rationality: Limits on

information that can be processed Satisficing: Picking the first solution that’s

“good enough”

Decision Making Process

Evaluatedecisionquality

Identifyproblem

Identifycriteria

Weightcriteria

Developalternatives

Analyzealternatives

Selectalternative

Implementsolution

Feedback

Criteria for Decision Making Quality of decision Timeliness Cost Stakeholders -- who has to be

considered Certainty vs. risk

Programmed vs. Nonprogrammed Decisions Programmed decision

One that is made regularly Structures problems (clear problem,

obvious criteria) Pre-set rules, policies, procedures Efficiency

Non-programmed decision One-time More “important” problem

What is Participation? Aspects of Participation

Setting Goals Making Decisions Solving Problems Changing the Organization

Levels of Involvement Voice Participation Delegation

Fake Participation

Participation: Pro and ConPro It works…..

Better information Decision acceptance

(more motivation) Better for employees

Basic individual needs (self-actualization, autonomy, etc.)

Social needs (group decision-making)

Con It doesn’t work…..

Information may be centralized

Need for rapid response It’s not necessary

Assigned goals enough Employees may not be

interested

Vroom Decision Tree Decision Criteria

Decision Quality Commitment Requirement Leader’s Information Problem Structure Commitment Probability Goal Congruence Subordinate Conflict Subordinate Information

Decision Making and Ethical Perspectives

How do we make ethical decisions? Sources of ethical beliefs

Sources of Ethical Beliefs Basic human values

Reciprocity Altruism

Institutional sources Religion Philosophy

The environment Cultural experience Law

World Religions

Christianity Islam Hindu

Chinese Folk Buddhist Judaism

Other

Source:http://www.infoplease.com/

Catholic Protestant

Orthodox Other

“Every religion emphasizes human improvement, love, respect for others, sharing other people's suffering. On these lines every religion had more or less the same viewpoint and the same goal.”

-- The Dalai LamaSource: http://www.religioustolerance.org/reciproc.htm

The Golden Rule

The World of Islam

On the day of judgment, the honest Muslim merchant will stand side by side with the martyrs

- The Prophet Mohammed

Moral Values in the Work Setting: Islam Prohibition on charging interest

Lending fees Leasing Share of a bank’s profits rather than interest

Investment (Syariah principles) operations based on riba (interest) such as banking or

finance companies Gambling Manufacture and/or sale of haram (forbidden) products such

as liquor, non-halal meats and pork; and Elements of gharar (uncertainty) such as conventional

insurance

Philosophers Asia

Is it religion or philosophy Is this even a valid distinction

Western philosophers: A long tradition Classical thinkers Theologians Enlightenment philosophers Writers in other areas (politics, social

issues)

Socrates and Plato

Socrates (470 BC – 399 BC) Virtue is knowledge of what is good Virtue has an existence of its own; we know what

is good without being told Virtue cannot be taught If one knows what is good, one will act virtuously

Plato (428 BC – 348 BC) Platonic forms – Pure, eternal and unchanging

ideas, that exist independently Differs from Socrates, in that Plato believed that

virtue could be taught

Aristotle (384 BC – 322 BC)

Virtue is fulfilling a function Virtue comes from strength of character Virtue involves both feeling and action Virtue is innate, but also requires training and

practice to form proper habits

Theologians St. Augustine (354 AD – 430 AD)

Influenced by Plato and Platonic philosophers (merged classical and Christian thought)

Every work of God is good; evil comes from mankind and the freedom they have to choose (also, original sin)

Evil does not have an independent existence (the Manichæan heresy)

St. Thomas Aquinas (1225-1274) Influenced by Aristotle Mankind aspires to goodness Goodness or virtue requires the exercise of reason

Others Niccolò Machiavelli (1469 -1527) Herbert Spencer (1820 –1903)

Social Darwinism Friedrich Nietzsche (1844 – 1900)

The great man can make his own rules

Niccolò Machiavelli The Prince Bad reputation today, but also a very pragmatic

thinker What actually occurred versus what actually worked:

…the gulf between how one should live and how one does live is so wide that a man who neglects what is actually done for what should be done learns the way to self-destruction rather than self-preservation (XV)

The end -- stable rule -- justifies the means:…a prince, and especially a new prince cannot observe all

those things which give men a reputation for virtue, because in order to maintain his state, he is often forced to act in defiance of good faith, of charity, of kindness, of religion (XVIII)

Enlightenment Philosophers In general, these people separated theology and

philosophy Immanuel Kant (1724 – 1804)

Deontology What are one’s duties?

Jeremy Bentham (1748 – 1832) Teleology Utilitarianism (greatest good to the greatest number)

John Locke (1632 – 1704) Social contract Natural rights of mankind “The right of life, liberty, and the pursuit of happiness”

TeleologyTeleological (or consequential) ethical systems are concerned with the consequences of an act rather than the act itself. It includes act-utilitarianism, where one’s goal is to identify the consequences of a particular act to determine whether it is right or wrong, and rule-utilitarianism, which requires one to adhere to all the rules of conduct by which society reaps the greatest value. In sum, the principle to be followed for utilitarian is the greatest good for the greatest number.

DeontologyDeontological ethical systems hold that a person renders ethical decisions if he or she acts based on what is right, regardless of the consequences of the decision. In this formalistic view of ethics, what is right is based on the categorical imperative, which is the notion that every person should act on only those principles that he or she, as a rational person, would prescribe as universal laws to be applied to the whole of humankind.

Social Contracts How can society best be structured and

regulated? Governments are based on the "social

contract“ Reciprocal obligations that can be

changed