MGT 3301, Principles of Management 1

Course Learning Outcomes for Unit VII

At the end of this unit, you should be able to:

5. Apply ethical reasoning to managerial decision-making.
5.2 Outline the process the organization used in making this decision.

Required Unit Resources

Article: Centering Equity, Diversity, and Inclusion in Ethical Decision-Making (ULO 5.2)

This article explores and strengths and limitations of culture in ethical decision-making (10 pages).

Article: Praise-Many, Blame-Fewer: A Common (and Successful) Strategy for Attributing
Responsibility in Groups (ULO 5.2)

This article explores ways that leaders praise and blame subordinates and its effectiveness. The article finds
this model to be effective overall in business as well as other areas of leadership (14 pages).

Article: The Influence of Ethical Leadership and Climate Towards Intention (ULO 5.2)

This article explores the ways in which an environment that promotes ethical leadership encourages leaders
to act ethically. This article is presented through a quantitative survey (9 pages).

Article: Value-Based Decision-making: An Interactive Activation Perspective (ULO 5.2)

This article explores the cognitive processes of decision-making. This includes how decisions are made
based upon the expected value and the additional criteria that influences choice (32 pages).

Unit Lesson

Lesson: Ethical Decision-Making (ULO 5.2)

Introduction

Throughout each past unit, the lessons exposed you to multiple, critical principles, practices, and behaviors in
management. The Unit VII Lesson continues with the basics of management, and this lesson will expand
upon ethical managerial decision-making as a cognitive process.

Cognitive Processes

Thinking and processing information allows one to consider and comprehend their surroundings to make
rational, ethical decisions that may or may not take into consideration thoughts pertaining to judging,
assumptions, perceptions, or memories. Cognitive processes are chemical and electrical neurons occurring
in the brain that build masses of signals where the five senses drive one’s developmental knowledge.

Many never realize the depth of decision-making, but most quickly select their choices based upon their
knowledge and an awareness of right and wrong. Businesses are as strong as the values embedded to each
employee. Most employees follow their leader’s ethical business practices, at least while at the office. The

UNIT VII STUDY GUIDE
Ethics

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challenge in reading this unit is to be the emblem that shines and walks the walk of integrity and portrays an
ethical environment at work and after work.

Process of Decision-Making

All organizational decisions have a purpose and aim to change behavior in a manner of due processes. Most
forward-thinking companies have a process for ethical decision-making that portrays the instilled shareholders
organizational values, which are a representation of the leadership and management team. According to
Bazerman (2020), managers can use the values and morals of the organization to support the
decision-making environment.

The organizational decision-making process is designed to support the company’s leaders and shareholders
to utilize (ethical) manners and respect as the model behavior entrusted to all. Many organizations will use the
utilitarianism results-based approach which produces the greatest goods with the least harm for all involved. It
is to be noted that often, ethical decision-making issues are unknown at the exact time the decisions are
made. However, issues may arise afterwards and should immediately be dealt with to neutralize the potential
damage.

Best Practices Framework

There are numerous models that suggest best practices for making ethical decisions. The suggestive, simple
model must be tailored to the specific organizational issue because no two companies have the exact same
issues, values, or people.

Decision-making processes and models must be catered specifically to the organization with consideration of
the organization’s business model, the values and standards of the company, and the daily support and
profound leadership in place and respected.

Step 1: Identifying

Start by identifying the issue and understanding the cause and effect of it. Many times, organizations face
challenges that are disruptive to the daily routine, and immediate attention is needed before moving to the
next step. Many will share their opinion or openly discuss factors of the problem without stating yet what is the
problem. Managers and leaders must carefully weigh each factor and continue to communicate the issue until

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the root problem is identified. A key takeaway to remember is the issue may harm. Therefore, consider the
effects on all!

Step 2: Collecting

The next step is to collect the relevant facts. This may take some time, and proper documentation is needed
with all individuals involved. The problems that may fester at this point, if not managed or handled correctly,
are outlined in the following questions:

• Are the facts shared with managers?
• Are there similarities in the communication and feedback among the groups?
• Were the facts communicated in a thoughtful demeaner?
• Are the individuals or groups sharing details each shown the same level of respect and dignity, using

accepted, respectful communication?

With this critical second step, all parties involved must feel their words and opinions matter as much as the
others.

Step 3: Assessment

The third step is to evaluate the options and assess the situation with alternatives. Evaluate all options in
accessing the issue and the facts presented. Thoroughly consider each possible option and always have a
back-up plan in case the options do not work for the majority of those involved or perhaps even unknown
facts have not been brought forth. The critical part in this step is to remember that sometimes, things are not
as they appear. There may be explanations or rational reasons in the issue. Do not be afraid to ask others
their opinion. Role play (in your mind), and have multiple collective thoughts of the situation and how the
options will be the best for the majority and harmful to the least. Note: Often, this step is referred to as
situational analysis.

Step 4: Decide

Step four is to select the best option and plan of action. As stated previously, select the best solution, and
have at least two alternative solutions in case needed. Openly discuss this step with all involved, and state
the decision in a slow, calm manner beginning with acknowledging all those involved and thanking each for
sharing their perspective. Announce and discuss the chosen option, and state there are additional options
that may be warranted. Try to be as positive and optimistic and kind, but be stern with the choice.

Step 5: Implement

Implementation is step five. All decision-making is an action plan, put into place to work, operate, and diffuse
an issue. Management can only weigh the pros and cons. Be ready and flexible to make needed, fair
changes.

Step 6: Monitoring

The final step involves monitoring the change and adjusting as needed. As a manager, be careful to never
micro-manage; remain consistent with monitoring and assessing the situation as needed. When a revision is
warranted, or perhaps the option has optimized its value, make the change, and remember to communicate
each avenue of the change.

Conclusion

In conclusion to the Unit VII Lesson, as a current or future manager, always consider the individuals who work
with you, not for you. You are human; you will make mistakes. The workers are human, and they will make
mistakes as well.

Always consider each factor in decision-making. Strive to make ethical, fair decisions that benefit the majority
and never place your team in jeopardy where their duties, values, and character are questioned. It is gravely
important for management in general to always be ethical, portray an ethical act of sincerity and caring to your

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workers, and remember that trust is the foundation to respect. To review a moral compass of ethics and
ethical decision-making, make an internal checklist of your ethical leadership. Know your values, and let them
be your guide in life and work. Build trust by leading by example. Always be aware of biases and base your
decisions on objective assessments and facts. When you make mistakes—and you will make mistakes—
learn and share how you grew from each mistake made. Always place people above profits (Morris, 2019)! It
all starts with the first step! Remember, you are as strong as you envision your future. Never stop, never
complain, and always believe in yourself!

References

Bazerman, M. H. (2020, September-October). A new model for ethical leadership. Harvard Business Review,

98(5). https://hbr.org/2020/09/a-new-model-for-ethical-leadership

Ishak, N. K., Zainuddin, Y., & Haron, H. (2022). The influence of ethical leadership and climate towards

intention. Global Business and Management Research, 14(3), 319–327.
https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
ct=true&db=bsu&AN=160657510&site=ehost-live&scope=site

Juntunen, C. L., Crepeau-Hobson, F., Riva, M. T., Baker, J., Wan, S., Davis, C., III, & Caballero, A. M. (2023).

Centering equity, diversity, and inclusion in ethical decision-making. Professional Psychology:
Research and Practice, 54(1), 17–27.
https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
ct=true&db=pdh&AN=2023-46813-004&site=ehost-live&scope=site

Morris, L. (2019, November 16). 7 Characteristics of ethical leadership and why they matter: A checklist for

ethical and mindful leadership. Growth Faculty Learn.
https://www.thegrowthfaculty.com/blog/ethicalleadershipwilldriveresultsin2020

Schein, C., Jackson, J. C., Frasca, T., & Gray, K. (2020). Praise-many, blame-fewer: A common (and

successful) strategy for attributing responsibility in groups. Journal of Experimental Psychology:
General, 149(5), 855–869.
https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
ct=true&db=pdh&AN=2019-64812-001&site=ehost-live&scope=site

Suri, G., Gross, J. J., & McClelland, J. L. (2020). Value-based decision-making: An interactive activation

perspective. Psychological Review, 127(2), 153–185.
https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
ct=true&db=pdh&AN=2019-55522-001&site=ehost-live&scope=site