Compareand Contrast Decision-making Techniques and Consequences
Evaluatethe role that personal ethics plays in making decisions
Personalethics refers to an individual’s personal or self –modeled valuesand norms. These values are instilled in people while growing up bytheir parents and friends. They help in distinguishing what a personperceives to be right and wrong. General examples include a sense ofresponsibility, commitment, honesty, politeness, openness andalongside others. What an individual develops concerning fairnessduring childhood manifest itself all through his or her life andhence reflected by the individual’s habits. The values we possessare established to the world by making choices regarding variousaspects of our life. Personal ethics helps people to demonstrate thefollowing aspects of personality while making a decisionself-control, mindfulness, and self-awareness. Moreover, ethicsinstills flexibility in people which prompt their values to changeboosting our interactions. Additionally, personal values help us toconsider the following questions in the process of deciding onvarious aspects of our lives. Is this choice likely to cause harm orgood? , Am I being true to others and more so to myself in thischoice? Is the choice going to foster honesty and inclusion withinthe category of individuals Am dealing with? And lastly, is thechoice going to make me a better person? These questions help indetermining if the decision is in tandem with the self- principles soas to promote good and reduces chances of harm (McLean, 2016).Additionally, since personal ethics affect the people around us, theyhence give individuals guidelines on how to accommodate distinctcharacter of various people which in turn is critical indecision-making processes. Furthermore, personal ethics helps us toappreciate cultural diversity since people have different viewsregarding various aspects of life (Thiel et al., 2012). Human beingsshould keep on evaluating their values while interacting with varioustypes of people to allow moral development which in turn boost ourdecision-making aspects. Moreover, personal ethics plays asignificant role in shaping our lives.
Analyzethe decision-making techniques that can be applied in different typesof organizations.
Decisionmaking is a critical aspect in all organizations since it facilitatessuccess in both short and long term. There exist various kinds ofdecisions –making methods that can be utilized by the distinct typeof organizations (Sanchez, & Medina, 2013). These techniques arecategorized into three main groups, they include, random, analyticaland intuition based as presented below: Multiple criteria decisionanalysis this method gives a little compromise between intuition andassessment using a systematic framework that appraises alternativesagainst a particular set of achievement criteria by providingadjustment for risk. Secondly, paired Comparison assessment Itinvolves comparing options in pairs to determine relativesignificance. However, technique exposes little or no informationregarding the support for each option (McDonald, 2010). Thirdly,Analytical Hierarchy procedure (AHP) It enhances various Criteriamethod that utilizes the paired comparison by integrating mathematicsto assist in tackling the subjectivity as well as the intuitioninbuilt in individual decision making. This approach is often appliedto complex group decisions (Drucker, 2011). Additionally, game theorydecision technique, it is often used in strategic decisions wherebythe organization is taking into account the possible responses ofexternal participants such as competitors, clients, and thegovernment. Game theory framework incorporates diagrams in itsanalysis. The conjoint examination is another decision techniquewhich includes statistical aspects to conduct a market research. Themethod is utilized by businesspersons while determining the tastesand preferences of the customers (Mindtools, 2015). Lastly, Paretoanalysis, this is a decision –making procedural whereby severaldecisions needs to be taken care of necessitating prioritizing inones that need to be dealt with first, that is, those decisions thathave the significant effect on the organizations are given priority.
Anexample of Organization where unethical decision-making resulted innegative consequences.
Ethicaldecision-making procedures are essential in organizations in theidentification of critical aspects that facilitate ethical behaviors.The diversity of individuals in most organizations influences ethicaldecision-making processes hence it needs to be taken intoconsideration for effective decision making. An example of theorganization that has been involved in unethical decision-making isWall-Mart. Wall-mart is an American –based multination organizationthat deals with retail operations. The company is proven to beunethical due to its activities against the labor laws and rights.For instance, Wal-mart is associated with the unfair treatment of itsworkers due to several lawsuits it has received. Women havecomplained of being discriminated by being denied promotions,training, and low payment compared to their male counterparts.Additionally, the organization is associated with adoption ofpredatory pricing strategies whereby it charges it products lowlyattaining the monopoly in the industry as a result. Also, some of theemployees have complained of being force out to work overtime andbeing denied payments. Moreover, Wal-mart has received lawsuits fordenying it workers health insurance covers (Pitt Business Review,2014). All these unethical practices harm the organization reputationwhereby most clients become reluctant to deal with Wal-mart. Also,the morale of the employees has gone down as result decreasing theproductivity of the organization at large.
Usingtwo decision-making techniques compare and contrast how using thetechniques may have resulted in a positive consequence.
Thefirst decision-making procedure, in this case, is game theory. Itrefers to the process of modeling the strategic decision makinginvolving several players who can be organizations or individuals,whereby their choices influences the interests of other players (Craft,2012). Game theory technique applies in scenarios whereby theactions of various agents are interdependent. The concepts of thegame theory assist policymakers to formulate structure, evaluate aswell as understand the strategic situations. The game theory decisionframework is presented below:
|FIRM New tech||2 Old tech|
|Firm two new tech||
The above table presentsinformation regarding two firms which are deciding whether to adoptthe new technology or not. If one company adopts the new technologybefore the second firm, it will gain less profit compared to whenboth companies agree to move together. As per the matrix table, whentwo companies incorporate new technology, they gain $700 million, andwhen they fail to integrate it, they earn $0. Hence, it will be fairif both firms decide to operate together as opposed to working ontheir own (Zeni et al., 2016). The second decision-makingtechnique includes the conjoint analysis the method helps themarketers while introducing the new product or service in the marketto evaluate the tastes and preferences of the customers. It helps todetect if consumers value the organization’s goods. For instance,organizations X that deals with electronics such as T.V, microwave,fridge and alongside other commodities have introduced new brands inthe market. As a result, the organization is interested in knowinghow consumers perceive their products. In this case, the organizationwill conduct a market research regarding their newly products. Theprocess will involve selecting some of the clients for a survey(McClafferty, 2015). Consumers may respond in different ways such as,there should be variety in a particular color such as white or gray,prices are high compared to other products, or the products are notof high quality. Once the survey questions are returned, theorganization employees assess the results to establish which aspectsare addressed by most clients. The company will hence engage some ofits stakeholders in a decision-making process and address theabove-said issues. Conjoint analysis assists organization X toimprove the quality of its products as well as adjusting its prices. Both decisions techniquesyield the best result to the particular firm undertaking the decisionprocess. For game theory decision technique, the optimal solution isknown as Nash equilibrium which in our case is for firm one and firmtwo to work together. On the other hand, conjoint analysis entailsengaging customers in a survey to get feedback on the various aspectsof the organization’s goods and services. Conjoint analysis hencehelps the firm to integrate unique features in their products andservices which boost their competitive advantage. Additionally, gametheory takes into account the actions of the other firm to decide onthe best strategy. On the hand, conjoint analysis is simply a surveyto assess the organization’s products and services.References
Craft,L. (2012).AReview of the Empirical Ethical Decision-Making Literature. Springer
Sciencebusiness Media, Journal of business ethics, 117:221-259.
Drucker,P. (2011). DecisionMaking Techniques.Decision-making-solutions.com.Retrieved 4
McClafferty,A. (2015). 5 simple steps to improve yourdecision-makinghttp://www.forbes.com/sites/alexmcclafferty/2015/02/05/decision-making/
McDonald,C. (2010). Businessethics and the “New York Times”rule.http://businessethicsblog.com/2010/12/08/business-ethics-and-the-new-york-times-rule/
Mindtools.(2015). Decisionmaking: How to make better decisions.http://www.mindtools.com/pages/main/newMN_TED.htm
McLean,M (2016).Makingdecisions about Right and Wrong: Ethical Decision making –Ethics
Resources.MarkKula Center for applied Ethics – Santa Clara University.
Pitt Business Review (2014). UnethicalActs in Wal-Mart corporation .Pit business
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EthicalDecision –Making. SpringerScience, Business Media.
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Zeni,T.Aet al (2016).Making“sense” of ethical decision making, the leadership quarterly