Significance of Ethical Decision Making in Effective Management

This essay discusses the significance of ethical decision making in effective management. It reviews relevant literature, including the concept of ethical decision making and its relationship to effective managerial practice, and the capabilities and skills required to promote good ethical decision making. The essay also includes an evaluation of the author's skills and a thorough plan for further development. Subject: Management, Course Code: MGT101, College/University: Not mentioned.

Running head: MASTERS IN INTERNATIONAL HOSPITALITY MANAGEMENT
Masters in International Hospitality Management

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Table of Contents
Introduction.................................................................................................................................................3
A brief review of relevant literature.............................................................................................................4
Concept of ethical decision making and its relationship to effective managerial practice.......................4
Capabilities and skills required to promote good ethical decision making...............................................5
Evaluation...................................................................................................................................................6
Thorough plan.............................................................................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Appendices................................................................................................................................................15

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Introduction
The general statement regarding ethical decision making is ‘Do the right thing’ that is considered
as a moral duty. Ethical issue is related with the moral judgement of an individual to conduct the
right or wrong things. Decisions taken at the workplace may be made by groups or person but it
is highly persuaded by the organisational culture. The decision of behaving ethically is moral
duty as workforces should decide what they perceive is the right course of action. It may entail
the rejecting of route and leads to generate maximum short-term return. There is relationship
between ethical decision making and managerial practices (Hartman, DesJardins, MacDonald,
2014). In this way, it is evaluated that ethical behaviour and corporate social responsibility can
bring significant advantages to corporation. For instance, managers attract the customers towards
the product of company and enhance the profit and sales. Ethical behaviour of manager leads the
employees to stay with the business, decline labour turnover and gain productivity. Ethical
behaviour of manager influences large number of workforces who wants to work for the
business; decline cost of recruitment and enables the company for selecting the talented
workforces. Ethical conduct of manager also persuaded the investors and maintains the high
share price of company as it would protect the business from takeover (Dane and Sonenshein,
2015). It is evaluated that the unethical behaviour and lack of CSR may ruin the goodwill of an
organisation and makes it less appealing to stakeholders. As a result, profit could be attained.
This essay demonstrates the literature about the significance of ethical decision making in
effective management. There are different techniques would be used by me to assess my
particular skills as well as personality factors such as Big five inventory, The Belbin test for
assessing team roles and emotionally intelligent (Lehnert, Park, and Singh, 2015). This essay
will also indicate the evaluation of own capabilities by using different techniques. I need team

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building skills and emotional intelligence skills to improve my managerial competencies. This
essay also developed a thorough plan for making further development of skills and competencies
as an effective and ethical manager (Shapiro and Stefkovich, 2016).
A brief review of relevant literature
Concept of ethical decision making and its relationship to effective managerial practice
According to Lehnert, Craft, Singh, and Park, (2016) an ethical decision could produce trust that
demonstrates accountability, equality and caring for a person. With respect to the ethics, one has
to show the liability and respect. Ethical decision making entails a review of diverse views of
experts and chose best alternative methods as it could be effective to obtain a reliable outcome.
In addition, the ethical decision making consists of the procedure of examination and selecting
the best alternatives in a way consistent with ethical values. In order to make an ethical decision,
it is obligatory to perceive and eradicate unethical options and chose effective ethical
alternatives.
Vitell, Singhapakdi, and Nishihara, (2015) stated that the procedure of making ethical decisions
could consider three different factors like commitment, consciousness, and competency. In
commitment stage, an individual desire to perform appropriate activity regardless to cost.
Moreover, the consciousness of an individual is to perform consistently and implement moral
beliefs to daily behavior. In last, the capability to obtain and examine data, create alternatives
and predict the potential risks and consequences. In addition, it is also found that people are often
required to make an effective decision in the business atmosphere. In the current business
environment, ethical model and framework could support to sustain the image of the
organization in the marketplace.

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In support of this,Griffith, Zeni, and Johnson, (2015) explained that business ethics could support
to make an outlineabout suitable behavior in the organization for their workforces. There are
different factors that could be considered in the ethical standard like fairness or justice,
utilitarian, virtue and the common good. It is also stated that utilitarian ethics is the standards that
attempt to perform well at the working place and the limited harm activity for each employee. A
suitable method could support to respect and protest moral rights of employees by effective
decision. In addition, it is also found that fair behavior could support to make equal behavior
among individuals as it could support to make better society as a whole.
Lewis and SIU, (2015) explained that business ethics is a technique that executes to ensure
directors, executive officers, and managers to act correctly in many business occurrences. In
addition, it is also found that the ethical decision making is used to promote the organization as a
whole as compared to let one person advantage from a business decision. In addition, it is also
found that an employee who continually makes a decision in the context of the personal
advantages as it may create legal capabilities for the organization that could lead to bankruptcy.
Capabilities and skills required to promote good ethical decision making
According to Zeni, Buckley, Mumford, and Griffith, (2016) capabilities and skills are imperative
for making a reliable decision with respect to the current matter. In addition, it is also analyzed
that work ethics and essential skills of employees could be accomplished by considering the
motivation and training method. Some workforces might be capable to create robust work ethics
with attractive incentives and monetary rewards by completing the specified task of organization.
Paik, Lee, and Pak, (2017) argued that communication skill could be imperative for
Communication skills are the most important soft skills for an employee. The capability to
converse with the spoken and written discussion is a necessity in each industry and every

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organization. In addition, communication skills could be learned and enchased with the
appropriate training method. It could consume the time of organization inlearning effective
communication skills if they have not effective skills to attain the aim and objectives of the
organization. In addition, it is also analyzed that this method could support to effectively
communicate with others and make a reliable relationship with them. Consequently, the
organization would be capable to obtain the valid and reliable result (Chell, Spence, Perrini, and
Harris, 2016).
Summary of literature review
From the above discussion, it can be summarized that the ethical decision making could enable
the organization to conduct good behavior at the working place. It could aid the employees and
manager to complete their specified goal without harming others. In addition, it is also found that
capabilities and appropriate skills required promoting good ethical decision making as it could be
possible by considering training and development method.
Evaluation
There are three questionnaires will be used to assess the skill and proficiency. These
questionnaires are Big five inventory, the Belbin test for assessing team roles and
emotionallyintelligent.
Big five inventory technique
Big five inventory is used to measures the big five personality factor in person. Each of the
factors could be further categorized into different personality aspects such as Extraversion,
Agreeableness, Conscientiousness, Neuroticism, and Openness (Thome, Ferrell, 2015). From the
test of Big five inventory, it is observed that I got 26 marks in Extraversion that indicates that I
am sociable, forceful, energetic, adventurous, enthusiastic, and outgoing. It also shows that I

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have different extraversion personality factors such as Gregariousness, Assertiveness, Activity,
Excitement-seeking, Positive emotions, and Warmth. This test also demonstrates that I have
obtained 37 marks in Agreeableness personality factor. It shows that I have different personality
due to Agreeableness personality factor such as Trust (forgiving), Straightforwardness (not
demanding), Altruism (warm), Compliance (not stubborn), Modesty (not show-off) and Tender-
mindedness (sympathetic) personality (Iphofen, 2016). Under this test, I have also obtained 33
marks in Conscientiousness that is third factor of personality. It assesses the Competence, Order,
Dutifulness, Achievement striving, Self-discipline and Deliberation. From the obtained score, I
have assessed that I am efficient, organized, not careless, thorough, not lazy, and not impulsive.
In this test, I got 18 marks in Neuroticism that shows my lack of personality regarding Anxiety,
Angry Hostility, Depression, Self-consciousness, Impulsiveness and Vulnerability. It also
indicates that I am less tense, irritable, not contented; shy, moody and not self-confident. In the
Openness factor, I got 33 marks which indicate that I have lack of different personality factor
such as Ideas, Fantasy, Aesthetics, Actions, Feelings and Values. It also shows that I am less
curious, imaginative, artistic, wide interests, excitable and unconventional (Pohling, Bzdok,
Eigenstetter, Stumpf, and Strobel, 2016).
The Belbin test for assessing team roles
The Belbin self-perception inventory is another tool that was used by me. This technique
considers behaviour based questionnaire. I have analyzed my responses through self-perception
inventory of Belbin Team Role system (Valentine, Nam, Hollingworth, and Hall, 2014). It
generated the feedback in both graphical as well as scripted manner. There are eight role
analyzed by me such as (SH) Shaper, (PL) Plant, (CO) Coordinator, (ME) Monitor Evaluator,
(RI) Resource Investigator, (IMP) Implementer, (TW) Team Worker, and (CF) Completer-

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Finisher. Under this test, I got 6 marks in (SH) Shaper that indicates that I offer the necessary
drive in order to make sure that the team keeps moving and does not lose focus. It also shows my
different strength such as challenging, active, and thrives on demand. I have obtained 11 marks
in (PL) Plant which illustrates that I am highly innovative and superior to solve the problem in an
unconventional manner. It also shows my different strength such as imaginative, creative, and
free-thinking, produces ideas, as well as solves the complex issue (Singhapakdi, Vitell, Rao, C.
and Kurtz, 2015). Under this test, I have obtained 6 marks in (CO) Coordinator which
demonstrates thatI need to emphasize on objective of test, draw out the members of team and
allocate the task feasible. I got 7 marks in (ME) Monitor Evaluator which shows that I have
certain strength such as clear-headed, planned, and judicious skills. I can also see all options and
judges appropriately. I have also obtained 5 marks in (RI) Resource Investigator which exhibits
my outgoing, and enthusiastic skills. I can also discover opportunities and develops contacts. I
got 15 marks in (IMP) Implementer, which depicts that I need to draw out a plan for workable
strategy and perform it efficiently as possible. I have also obtained 12 marks in (TW) Team
Worker that shows my co-operative, diplomatic, and perceptive skills. I also listen and prevents
from the friction (Wisler, 2018). In the last, I got 8 marks in (CF) Completer-Finisher that
illustrates my different strength such as Painstaking, careful, and anxious. I also address the
errors for effectively complete the projects.
Emotionally intelligent technique
Emotional intelligence is a nation wider organized buzzword that is recognized by Daniel
Goleman. Emotional intelligence is explained as a set of capabilities that an individual use to
organize their relationships with emotions. There are different perspectives include emotional
intelligence such as ability, personality, and mixed model. Personality modal identifies emotional

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intelligence as a trait and disposition. Moreover, ability models address the emotional
intelligence as skills. Mixed model includes the element of both factors. Emotional intelligence
is the competencies for addressing and managing the own emotions and address the emotions of
others (Erkan, Temel, and Moeinizadeh, 2017). From conducting the emotionally intelligent test,
I had obtained scores between 56-75 that shows I am emotional intelligent person and I have
great relationship and I can also find the people approach for advice. I have different skills such
as emotional awareness, emotional harnessing, and emotional management (Tsalikis and Peralta,
2014). In this way, emotional awareness is the competency for addressing the own emotions and
those of others. Emotional harnessing is the capabilities to connect the emotions and apply them
to tasks such as problem solving and thinking. Emotional management is the competencies of
managing the emotions such as ability for regulating the own emotions and cheer up or calm
down another individual (Shepherd, Williams, and Patzelt, 2015).
Thorough plan
Following are two SMART goals that would be used by me to improve my capabilities in
specified plan and schedule:
 To enhance ethical decision-making skill by 2 Months
 To build innovative ethical ideas and views by 8 months
Thorough plan for improving emotional intelligence
S. No. Notions, models,
interpersonal skills, and
concepts for enhancing the
intelligence of emotion
Time Frame Evaluation: Ways to enhance
the emotional intelligence
1. Self-awareness via mixed
model
Week 1-3 I would be competent to
address my gut, sentiment, and
feelings.

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2. Understanding via Ability
Model
Week 4-6 I would build my
comprehension regarding
behavioural modification and
emotions.
3. Self-Control through Trait
Model
Week 7-9 I will organize my skills and
impulsive reactions and move
for resolving the thought
procedure.
4. Empathy via Mixed Model Week 10-12 I will develop my emotional
association in the
predetermined time period. It
would provide the ability for
connecting the people as per
the emotional attachment.
5. Social Skills through Mixed
Model
Week 13-15 I will be efficient to develop
the liaison and make emotional
like as I am able to make a
decision with emotional
intelligence.
Thorough plan for improving team roles
S. No. Notions, models,
interpersonal skills, and
concepts for enhancing the
intelligence of emotion
Time Frame Evaluation: Ways to enhance
the emotional intelligence
1. Action-oriented roles
 Shaper
 Implementer
 Completer Finisher
Week 14 Confront to the team for
making improvement
Implement ideas into practices
Make sure thoroughly and
completing the task on time
2. People-oriented roles
 Co-coordinator
 Team worker
 Resource investigator
Week 15-18 Act as a leader
Leads collaboration
Discover external
opportunities
3. Thought oriented roles
 Plant
 Monitor evaluator
 Specialist
Week 19-21 Demonstrate innovative ideas
and strategies
Evaluates the option
Facilitates particular skills

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After assessing the two skills issue, I develop an action plan in order to improve my skills. I have
different current capabilities such as Extraversion, Agreeableness, Conscientiousness,
Neuroticism and Openness, outgoing, and enthusiastic skills. But, I will focus on two skills that I
want to improve such as emotional intelligence and team role skills. I will learn these skills by
adopting different models (Shepherd, and Williams, Patzelt, 2015). For example, I will use
mixed model, trait model, and ability model to improve emotional intelligence. I will focus on
action, people and thought oriented roles to improve the team building roles. I will apply these
practices to the organization in terms of making an ethical decision and become a good ethical
manager in future (Cianci, Hannah, Roberts, and Tsakumis, 2014).
Conclusion
With respect to the above discussion, it can be summarized that I have used three evaluation
techniques to assess my capabilities, skills, and knowledge. These techniques are Belbin test, Big
five inventory, and emotional intelligence. It can also be summarized that these methods support
me to critically evaluate my characteristics. This analysis enables to understand the ethical
decision making and its contribution to the managerial practices. It could also support to examine
competencies and skills required to promote good ethical decision making. The information is
gathering by considering the literature review that enables to collect theoretical information
about research issue. From utilizing the evaluation technique, I understood that I have lack of
team building skills that could decline the chance tobecome a good leader in future. I shocked to
understand my skills because I was not aware of it. It can also be concluded that the main
purpose of this essay is to understand the effectiveness of ethical decision making in the
organization or managerial practices. Through this, I was capable to understand my weakness as
it would provide me an opportunity to improve my skills by considering my weaknesses.

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References
Chell, E., Spence, L. J., Perrini, F., & Harris, J. D. (2016). Social entrepreneurship and business
ethics: Does social equal ethical?. Journal of business ethics, 133(4), 619-625.
Cianci, A. M., Hannah, S. T., Roberts, R. P., & Tsakumis, G. T. (2014). The effects of authentic
leadership on followers' ethical decision-making in the face of temptation: An
experimental study. The Leadership Quarterly, 25(3), 581-594.
Dane, E., & Sonenshein, S. (2015). On the role of experience in ethical decision making at work:
An ethical expertise perspective. Organizational Psychology Review, 5(1), 74-96.
Erkan, G., Temel, F., & Moeinizadeh, M. (2017). the impact of culture on ethical decision-
making: a study on accounting students in turkey, united kingdom and iran 1. IIB
International Refereed Academic Social Sciences Journal, 8(28), 29-42.
Griffith, J. A., Zeni, T. A., & Johnson, G. (2015). Utilizing Emotions for Ethical Decision
Making in Leadership. In International Business Ethics and Growth Opportunities (pp.
158-175). USA: IGI Global.
Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2014). Business ethics: Decision making
for personal integrity and social responsibility. New York: McGraw-Hill.
Iphofen, R. (2016). Ethical decision making in social research: A practical guide. USA:
Springer.
Lehnert, K., Craft, J., Singh, N., & Park, Y. H. (2016). The human experience of ethics: a review
of a decade of qualitative ethical decision‐making research. Business Ethics: A European
Review, 25(4), 498-537.

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Lehnert, K., Park, Y. H., & Singh, N. (2015). Research note and review of the empirical ethical
decision-making literature: Boundary conditions and extensions. Journal of Business
Ethics, 129(1), 195-219.
Lewis, L. F., & SIU, W. S. (2015). Corporate Entrepreneurship and Ethical Decision-Making of
Marketing Managers. In Proceedings of the 1997 World Marketing Congress (pp. 646-
655). USA: Springer, Cham.
Paik, Y., Lee, J. M., & Pak, Y. S. (2017). Convergence in International Business Ethics? A
Comparative Study of Ethical Philosophies, Thinking Style, and Ethical Decision-
Making Between the US and Korean Managers. Journal of Business Ethics, 1-17.
Pohling, R., Bzdok, D., Eigenstetter, M., Stumpf, S., & Strobel, A. (2016). What is ethical
competence? The role of empathy, personal values, and the five-factor model of
personality in ethical decision-making. Journal of Business Ethics, 137(3), 449-474.
Shapiro, J. P., & Stefkovich, J. A. (2016). Ethical leadership and decision making in education:
Applying theoretical perspectives to complex dilemmas. UK: Routledge.
Shepherd, D. A., Williams, T. A., & Patzelt, H. (2015). Thinking about entrepreneurial decision
making: Review and research agenda. Journal of management, 41(1), 11-46.
Singhapakdi, A., Vitell, S. J., Rao, C. P., & Kurtz, D. L. (2015). Ethics Gap: Comparing
Marketers with Consumers on Important Determinants of Ethical Decision-Making. In
Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp.
60-60). USA: Springer, Cham.
Thome, D. M., & Ferrell, O. C. (2015). Antecedents of Ethical Decision Making in Sales
Organizations. In Proceedings of the 1992 Academy of Marketing Science (AMS) Annual
Conference (pp. 356-360). USA: Springer, Cham.

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Tsalikis, J., & Peralta, A. (2014). Priming effects on business ethical decision making.
International journal of strategic innovative marketing, 1(1), 1-8.
Valentine, S., Nam, S. H., Hollingworth, D., & Hall, C. (2014). Ethical context and ethical
decision making: Examination of an alternative statistical approach for identifying
variable relationships. Journal of Business Ethics, 124(3), 509-526.
Vitell, S. J., Singhapakdi, A., & Nishihara, C. M. (2015). The influence of ethics
institutionalization on ethical decision-making in marketing. Handbook on ethics and
marketing, 61-88.
Wisler, J. C. (2018). US CEOs of SBUs in Luxury Goods Organizations: A Mixed-Methods
Comparison of Ethical Decision-Making Profiles. Journal of Business Ethics, 149(2),
443-518.
Zeni, T. A., Buckley, M. R., Mumford, M. D., & Griffith, J. A. (2016). Making “sense” of
ethical decision making. The Leadership Quarterly, 27(6), 838-855.

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Appendices
Appendix A: Thorough plan for improving emotional intelligence
S. No. Notions, models,
interpersonal skills, and
concepts for enhancing the
intelligence of emotion
Time Frame Evaluation: Ways to enhance
the emotional intelligence
1. Self-awareness via mixed
model
Week 1-3 I would be competent to
address my gut, sentiment, and
feelings.
2. Understanding via Ability
Model
Week 4-6 I would build my
comprehension regarding
behavioural modification and
emotions.
3. Self-Control through Trait
Model
Week 7-9 I will organize my skills and
impulsive reactions and move
for resolving the thought
procedure.
4. Empathy via Mixed Model Week 10-12 I will develop my emotional
association in the
predetermined time period. It
would provide the ability for
connecting the people as per
the emotional attachment.
5. Social Skills through Mixed
Model
Week 13-15 I will be efficient to develop
the liaison and make emotional
like as I am able to make a
decision with emotional
intelligence.
Appendix B: Thorough plan for improving team roles
S. No. Notions, models,
interpersonal skills, and
concepts for enhancing the
intelligence of emotion
Time Frame Evaluation: Ways to enhance
the emotional intelligence
1. Action-oriented roles
 Shaper
 Implementer
 Completer Finisher
Week 14 Confront to the team for
making improvement
Implement ideas into practices
Make sure thoroughly and
completing the task on time

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2. People-oriented roles
 Co-coordinator
 Team worker
 Resource investigator
Week 15-18 Act as a leader
Leads collaboration
Discover external
opportunities
3. Thought oriented roles
 Plant
 Monitor evaluator
 Specialist
Week 19-21 Demonstrate innovative ideas
and strategies
Evaluates the option
Facilitates particular skills
Appendix C: Summary of questionnaire
Big five inventory technique
Big five inventory is used to measures the big five personality factor in person. From the test of
Big five inventory, it is observed that I got 26 marks in Extraversion, 37 marks in Agreeableness,
33 marks in Conscientiousness, 18 marks in Neuroticism and 33 marks in Openness factor.
The Belbin test for assessing team roles
The Belbin self-perception inventory is another tool that considers behaviour based
questionnaire. Under this test, I got 6 marks in (SH) Shaper, 11 marks in (PL) Plant, 6 marks in
(CO) Coordinator, 7 marks in (ME) Monitor Evaluator, 5 marks in (RI) Resource Investigator,
15 marks in (IMP) Implementer,12 marks in (TW) Team Worker and 8 marks in (CF)
Completer-Finisher.
Emotionally intelligent technique
Emotional intelligence is explained as a set of capabilities that an individual use to organize their
relationships with emotions. From conducting the emotionally intelligent test, I had obtained
scores between 56-75 that shows I am emotional intelligent person and I have great relationship
and I can also find the people approach for advice.
Score obtained from these results
Big five dimension

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The Belbin test

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Scoring key for self-perception inventory
Emotionally intelligent

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