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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