The Role of Ethical Decision Making in Becoming an Effective Manager

This literature review discusses the importance of ethical decision making in becoming an effective manager. It covers the concept of ethical decision making, necessary skills and capabilities, and the role of personality in decision making. The evaluation section includes findings on ethical principles, decision making aspects, and ethical codes in organizations.

The role of ethical decision making in becoming an effective manager
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Table of Contents
Contents
1. Introduction.........................................................................................................3
2. Literature Review................................................................................................4
a. The concept of ethical decision making and its relationship to effective
managerial practice...............................................................................................4
b. What capabilities and skills are necessary to promote good ethical
decision making?...................................................................................................5
c. How personality relates to good ethical decision making?.............................6
d. A one-paragraph summary of the literature review.....................................6
3. Evaluation...........................................................................................................7
4) Thorough plan.....................................................................................................12
S.M.A.R.T. Goal Guidelines................................................................................12
5) Conclusion..........................................................................................................15
6. References..........................................................................................................16
7. Appendix.............................................................................................................17
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1. Introduction
It has become very important for the modern organisation to identify as well as also
deal with the complex ethics of business. Company needs to trace various types of
well-documented issues and scandals and on that very time, the bad behaviour of
the leaders might bring about lots of consequences and also problems for the
organisation and also for surrounding (Adams, 2009). All the scandals results in
public outrage which then involves loss of trust, involvement of law suits, as well as
dependability among the customers, employees, clients and also public. It is the
ethical decision making which deals with the moral problems. It is seen that moral
issues generally is present on those areas where the actions performed by an
individual’s either hampers or benefits the other people. Hence, it could be said that
the decision made by an individual will have a severe effects on various peoples and
also involves the choice of the decision makers (Banks, 2010). The ethical decision
making helps the organisation in upgrading the performance thus to become
effective managers, they should have the capability to take an ethical decision.
This assignment will discuss regarding the concept of the ethical decision making
and also the way which influences the ability of the managers to become effective. It
will understand the concept of the ethical decision making and also its relationship to
effective managerial practices. It will also identify the capabilities as well as skills
which will be necessary to promote the good ethical decision making. Furthermore, a
discussion will be made related to how the personality will make good ethical
decision making. Moreover, an evaluation will be made where three questionnaires
will be instructed. This report will also make a thorough plan which specifies the
individual goals using the SMART goal framework.
Thesis statement: This assignment will wind up regarding the role of ethical
decision making in becoming an effective manager.
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2. Literature Review
a. The concept of ethical decision making and its relationship to effective
managerial practice
The ethical decision making assist the people is taking tough choices when it face
the ethical dilemma which describes that there is no exact right or wrong decision.
The ethical decision making helps in examining the three major perspectives which
includes ethics of obedience’s, ethics of reason and also ethics of care. The ethics of
obedience not only reviews the letter of law but also it views the moral values or the
spirit behind it. On the other hand, ethics of care will get engaged in their emotional
intelligence and also on the empathy which will make a decision from the
perspectives of the people. Lastly, the ethics of reason will be engaging the rational
brain where wisdom and experiences are used to measure the likely outcomes
(Barsky, 2010). Ethical decision making also have some vital ingredients which
includes the social dimension. When the people faces the difficult choices then it is
reviewed that human being try to make the right and better decision but sometimes
ends up taking unethical decision and following wrong route.
It is stated that ethical decision making process have some defined steps which
should be followed in order to achieve the required outcomes. At first, decision
maker needs to gather the facts and define the ethical problems. Then, it should
identify the parties who have got affected such as stakeholders. Decision makers
needs to then identify the results and also the obligations which include rights, justice
and principles. They should then consider the character and integrity and should
make creative thoughts regarding the potential actions (Daly & Mansfield, 2014). It is
important for the decision maker to check the gut and make a Decision on the ethical
actions and make oneself prepared in dealing with the offensive and opposing
decisions.
An organisation can have effective managerial practices if all the managers and the
leaders have the capability to analyse the things and make right decisions. If the
managerial body analyse the situations and tackle with the organisational issues and
thus make any kind of decision then organisation can get success. The managerial
body needs to be aware and knowledgeable regarding the best decision for the
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organisation where they should know that decision either good or bad can have
consequences (Dolgoff, Harrington & Loewenberg, 2012). It is seen that decision
making process and managerial activities are inter-related to each other as when the
managerial body makes ethical decisions than it has an effects either positive or
negative on the entire organisation. The organisation’s success mainly depends on
the decisions of the managerial bodies. Thus, for any organisation to achieve
success and for the effective managerial practices, one must make correct ethical
decisions.
b. What capabilities and skills are necessary to promote good ethical
decision making?
The organisational employees needs to have various types of skills and capability
which will include ethical problem solving skills, reasoning skills, moral skills, critical
thinking capability and also listening skills. One must have problem solving skills as
decision makers have to encounter lots of problems in both large and small scales in
day to day life. Most of the problems and decisions are so natural and small then an
individual don’t even notice it but solving those problems would be overwhelming to
another people (Dougherty, Cheung & Florea, 2008). If one can effectively solve
problems then they can also make ethical decisions. It means to say that problem
solving skills is very necessary in promoting the decision making process in an
effective manner.
Moreover, an individual should have proper listening skills and also reflecting skills
as this skill helps in developing one’s ability to reflect the words and also understand
one another feelings (Edwards & Addae, 2015). These skills help in restating both
the words and the feelings of the people and thus, taking decision on the problems of
an individual becomes easy. When an individual incorporate moral values in their life
than it is easy to take ethical decision. The moral skills present in an individual helps
them to decide the difference between right and wrong and assist them in taking
right and ethical decisions(Jones, 2009). Furthermore, reasoning skills is also one of
the important skills where it helps in taking the decision by making various reasons
and cultivating the right decisions. Moreover, it also helps in introducing the logic
before making a decision-making process, thus reasoning skills makes a right
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decision. It is also noted that critical thinking capability also helps in understanding
the links of the ideas and also determine importance of the ideas (Nevins, Bearden &
Money, 2007). This capability helps in recognising, appraise and building the
argument and also make systematic approach.
c. How personality relates to good ethical decision making?
The amount of logic which is put into the decisions, the personality will make an
affects in the choice made. The individual personality is a predictable factor where
the decision is affected by the combined effects of maturity and experiences.
However, the practical self-awareness will be helpful in measuring the amount of
decision making process which is influenced by their individuality. It is very amazing
to know that all the decision is totally dependent on one’s behaviour and thinking
ability (Ford & Richardson, 1994). No one in the world can make exactly same
decision as of the other with the same process. It is because all the people have
different personality and also different decision making process. It is the combination
of the experience, maturity level, ego and strength which actually deals with the
stress and also maintains the stability. The personality plays a major role in the
making of the decisions and also the process of making it. Decision –making is the
multiply-determined process which means that many of the forces work together
simultaneously (Craft, 2013.). For instances, if the person is a reputed one and have
a good social image in the society then he/she will make the ethical decision which
will not hamper their image. On the other hand, those people who have no social
image or no personality will not make decision thoughtfully. So, it is the personality
which relates and reflects the good decision making process.
d. A one-paragraph summary of the literature review
Ethical decision making helps the people in taking the tough decision and also
describes which is the right or wrong decision. Ethics of obedience’s, ethics of care
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and also ethics of reason are the three perspectives of examining the ethical
decision making. It is seen that ethical decision making have various steps in order
to achieve required outcomes (McKinney & Kempson, 2012). An organization will
have effective managerial process if the managerial body will have the capability to
analyze the things and also make right decisions. Ethical decisions need to be
considered in place in order to achieve success and also for effective managerial
practices (Bentham, 1982). It is analyzed that various types of skills and also
capability is needed by the organizational employees in order to promote the good
ethical decision making. Problem solving skills, reasoning skills, moral skills, critical
thinking capability and listening skills are some of the capabilities and skills needed.
It is analyzed that the people suffers from various types of issues in their regular life
either large or small but if they have proper skills and capability then they can easily
face the situation and fights with it. It is important for an individual either professional
or unprofessional should equally have all these qualities and skills so as to achieve
good result and make ethical decisions. It is essential to note that personality have a
greater link with the good ethical decision making process (McDermott, 2011). If the
person has good and reflexive personality then they will make a good and ethical
decision whereas if the person has non-reflective personality then they will not make
a right decision. It is the personality and ability of an individual to either take ethical
or unethical decision. Thus, it can be reviewed from the whole literature review that
ethical decision making plays a major role in becoming an effective manager (Craft,
2013). Effective manager are those people who manage all the jobs encountered in
their daily life in an effective ways where they will require various types of skills.
Decision making is one of the prime role and duty of a manager and thus they should
cultivate the habit of decision making.
3. Evaluation
The first question was asked to the respondents about what ethical is according to
them. On this question, majority of respondents (about 54%) have stated that ethical
according to them is their individual morality. On the other hand, 37% respondents
have stated that according to them ethical is general obedience of general rules and
regulations. Only 9% respondents believe ethical is considering the opinions of
people.
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Fig 1: What is ethical according to you?
.
The respondents are also asked to express the significance of different aspects in
decision making as a manager. Five aspects have been considered in this context.
The first aspect is high financial return. In this context, majority of respondents (54%
and 39% respectively) stated that it is extremely important and very import aspect for
decision making. The second aspect bring in line with the organizational mission and
objectives. On this aspect, most of the respondents (about 59%) stated that it is very
important for them in order to make decision. The third aspect is organizational rules
and regulations. In this context, about 51% respondents have stated that
organizational rules and regulations are very important for decision making process.
The fourth aspect is state and federal regulations. In this context, majority of the
respondents (about 54%) have stated that obeying laws and regulations of the
government is fairly important for making decisions. The fifth aspect is being in line
with core personal values. Most respondents (about 57%) considered this as very
important for decision making process.
Fig 2: Findings of Second Question
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The respondents are asked if adhering to ethical principles has influence on the
profitability of the organization. In this context, majority of the respondents (about
57%) believe that ethical principles have little effect on profit, while 29% respondents
stated adhering to ethical principles led to increasing profit. Very few respondents
(about 14%) believe ethical principles have no connection with the profit of the
company.
Fig 3: Do you believe that adhering to ethical principles have some impact on
profitability?
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The respondents are also asked what they will do if they find that their organizations
are performing unethically. In this context, most of the respondents (about 54%)
have stated that they will leave the organization. 29% respondents have stated that
they will ignore the problem and only 17% respondents stated that they will protest
the unethical act of the organization.
Fig 4: When you find that your organization is acting unethically, which tactic
will you choose?
While choosing the matters of ethics majority of the respondents (about 96%) have
stated that they would prefer economic performance over the social performance.
Only 4% respondents have stated they would prefer social performance to economic
performance.
Fig 5: While choosing on the aspects of ethics what would you prefer?
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The respondents asked if they believe ethical code in an organization assist
managers to act more ethically. In this question, most of the respondents (about
67%) have stated that ethical codes of the company are the best method for
strengthening ethical principles. On the other hand, 24% respondents believe ethical
code of conduct can help a little for the managers to act ethically. Only 9%
respondents stated that ethical code of conduct is a formal exercise.
Fig 6: Do you believe that ethical code of an organization can assist managers
to act more ethically?
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Finally, the respondents are asked about if management ethics has practical usage
on workplace. Most of the respondents (about 67%) stated that ethics has practical
usage as it strengthens the connections and impact on working environment.
Furthermore, 33% respondents have stated that management ethics is for
philosophers, but reality is different.
Fig 7: Do you believe that organizational ethics has practical utility in
workplace?
Big Five Personality Instrument
The respondents are asked to take test on “Big Five personality instrument” to
understand their personality. On the basis of the test, it can be observed that 62.5%
respondents are openness towards others. 67% of the respondents are
conscientiousness, i.e. having self discipline and control. About 35% respondents
have found to be extrovert, i.e. seek stimulation from external world. 62.5% are
agreeable in nature, i.e. have a tendency to put others requirements ahead of their
own and 62.5% are neuroticism in nature, i.e. have a tendency to experience
negative emotions (Tuity, 2018).
Fig 8: Big Five Personality Test
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4) Thorough plan
S.M.A.R.T. Goal Guidelines
Developing an S.M.A.R.T. goal requires considerable thought and commitment.
Goals assist in identifying what is required to achieve and ensure about the goal is
realistic or not. SMART goals also help in determining a realistic deadline. When
developing an S.M.A.R.T. goal, an individual needs to use very concise language to
describe the key components of what is trying to achieve (Gray, 2010). This also
includes all relevant information and be written in a way that can be understood by
others.
Initial Goal
My goal is to build up the problem-making skills. I also want to upgrade my listening
skills.
1. Specific
I specifically want to make my ethical decision making skills more effective. So, at
first, I have to build-up as well as upgrade my listening and problem-solving skills. I
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will be doing all of this during my course of work and also of my study course. I have
selected this goal as I am very weak in problem solving and listening which makes
difficult for me to take decision. The two goals of mine might get impacted because
of the limited time period experienced by me.
2. Measurable
Although, there is no proper baseline measurement data for my goal but I will be
regularly evaluating my works and skills in terms of problem solving and listening. I
will solve all the small and big problems which might arise in my daily activities and I
will also listen all the information given to me by my family member, colleagues and
faculties which will help me to acknowledge if I am progressing in a right manner or
not. If I will be able to tackle the problem and also listen to the people properly then it
means that I successfully met the goal. Internet resources can also be used as
another system where I will solve the problems and also listen to some videos and
audios already present in it.
3. Achievable
The goal of mine to upgrade the problem solving skills and also the listening skills
can be achieved by regularly reviewing the situations and handling them in a more
significant manner. I will require my skills of becoming patience in order to achieve
the goal. I will keep calm and wait for the result until and unless I don’t get the
success. I have seen many of the famous leaders who have tackled almost all of the
situations and made effective decisions with the help of proper problem solving skills
and also with sharp listening skills. This has motivated me also to improve my skills
so that I can also make ethical decisions. If I will be regularly evaluating my work
then very soon, I can achieve the desired goal.
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4. Relevant
This goal is relevant to my workforce development and also performance as if I will
be having good problem solving and listening skills then I will be able to take the
decision in an effective manner and can give good output in the workplace. It will
make me strong and confident. Since, I will be having problem solving, ethical
decision making and good listening skills then; organization will never achieve failure
as I will be solving all the issues. Yes, it is aligned with my overall objectives. Yes, it
is right time to set this goal because this goal requires longer time and if I will start
now then I will be good in making decision and solve problem when I will be working
in a company.
5. Time-bound
The deadline to achieve this goal is approximately six months. It is not totally realistic
but I will try to make my goal finish as per deadline. In short term, one can take
proper attention, medium term it should analyse the entire small and big situation
and in long term, it should review all the problems.
S.M.A.R.T. goal
I will be enhancing my problem solving skills and also sharpen by listening skills.
5) Conclusion
This report have analysed that ethical decision making have a direct relationship with
the effective managerial practice and it requires skills and capability such as problem
solving skills, listening skills, creative thinking capability, etc in order to promote
ethical decision making. It is also reviewed that personality has a good relation with
the ethical decision making. Questionnaire is made in order to evaluate the result
and SMART goals framework is made which had evaluated the current capability
and makes plan to improve it. Hence, after reviewing the whole report, it could be
feasible to consider that ethical decision making plays a major role in becoming an
effective manager.
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6. References
Adams, P. (2009). Ethics with character: Virtues and the ethical social worker.
Journal of Sociology & Social Welfare, 36(5), 83-105.
Banks, S. (2010). Integrity in professional life: Issues of conduct, commitment and
capacity. British Journal of Social Work, 40, 2168-2184.
Barsky, A. (2010). Ethics and values in social work. NY: Oxford University Press.
Beckett, C. (2012). Values and ethics of social work: An introduction (2nd ed.).
London: Sage.
Daly, M. E. & Mansfield, J. K. (2014). A study of the relevance of social network
sites and ethics involving undergraduate students. Journal of Baccalaureate Social
Work, 19, 83-96.
Dolgoff, R., Harrington, D., & Loewenberg, F. M. (2012). Ethical decisions for social
work practice (9th ed.). CA: Brooks/Cole Empowerment Series.
Edwards, B. E. & Addae, R. (2015). Ethical decision-making models in resolving
ethical dilemmas in rural practice: Implications for social work practice and
education. Journal of Social Work Values and Ethics, 12 (1), 88-92.
Gray, M. (2010). Moral sources and emergent ethical theories in social work. British
Journal of Social Work, 40, 1794-1811.
Craft, J. L. (2013). A review of empirical ethical decision-making literature: 2004-
2011. Journal of Business Ethics, 117(2), 221-259
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Dougherty, T. W., Cheung, Y. H., & Florea, L. (2008). The role of personality in
employee developmental networks. Journal of Managerial Psychology, 23(6), 653-
669.
Jones, T. M. (2009). Ethical decision-making by individuals in organizations: an
issue-contingent model. Academy of Management Review, 16(2), 366-395.
Nevins, J. L., Bearden, W. O., & Money, B. (2007). Ethical values and long-term
orientation. Journal of Business Ethics, 71(3), 261-274.
McDermott, S. (2011). Ethical decision making in situations of self-neglect and
squalor among older people. Ethics and Social Welfare, 5(1), 72-71.
McKinney, K. J., & Kempson, D. A. (2012). Losing touch in social work practice.
Social Work, 57(2), 189-191.
Tuity. (2018). The Big Five Personality Test. Retrieved from
https://www.truity.com/personality-test/8807/test-results/5972812
7. Appendix
Questionnaire
1. What is ethical according to you?
Individual morality
Generally accepted rules and regulation of the company
Considering the opinions of people
2. Please indicate the significance of the following for making decisions.
Extremely Very Fairly Not so Not
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important important important important important
at all
Providing highest
financial return for
the company
Being in line with
the organizational
mission
Admiration of
organizational
rules and
regulations
Obeying the state
and federal rules
and laws
Being in line with
the core personal
values
3. Do you believe that adhering to ethical principles have some impact on
profitability?
Yes, adhering to ethical principles lead to rising profit
Yes, very little
No, ethics has no connection with profitability
4. When you find that your organization is acting unethically, which tactic will you
choose?
Protest the company
Leave the company
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Ignore the problem
5. While choosing on the aspects of ethics what would you prefer?
Economic performance over social performance
Social performance over economic performance
6. Do you believe that ethical code of an organization can assist managers to act
more ethically?
Yes, it is the best method
Yes, but very little
No, it’s just a formal exercise
7. Do you believe that organizational ethics has practical utility in workplace?
No, ethics is just for academics, but reality is completely different
Yes, ethics has practical usage
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