Management Principles: Decision Making, Ethics, Chain of Command

This article covers the decision making process, structured and unstructured decisions, views on ethics, and elements of chain of command in an organization. It explains the eight-step process of decision making, the difference between structured and unstructured decisions, four views on ethics, and the important elements of the chain of command.

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Answer 1:
Decision making process is considered as the process of making the choices by identifying
the requirements, collecting required information, and by assessing the alternative resolutions.
This process includes almost 8 steps which help thee user in making more informed decisions by
organizing the relevant information and by defining the alternatives. Eight step process related to
decision making is stated below:
 Define the issue: the first and most important step is defining the problem statement, as
problem statement is important for making the good decision. This step includes the
identification of the basic reason because of which problem occurred, limiting
assumptions and issues related to stakeholders (Ahmad, Bwisa, Otieno & Karanju, 2014).
 Determine requirements: Before resolving any issue, it is necessary to determine the
requirements completely because any solution related to the problem must meet the
requirements.
 Collect information: It is necessary to collect the relevant information before taking the
decision. In this step, person focus on different aspects such as required information, best
sources through which information can be collected, and methods through which
information is collected. This step includes both internal and external assessment.
 Identify alternatives: While collecting the information, person cross through different
possible paths of actions, and these different paths are considered as alternatives. Person
can also use their predictions or collected information for the purpose of developing the
paths.
 Define the Criteria: Organization must establish the criteria for the purpose of
measuring the each and every possible criteria identified by the management. Each
criterion is developed on individual basis, and must not depend on other criteria. Criteria
must be covering all the goals, operational in nature, non-redundant, etc.
 Select the decision making tool: The methods related to the selection must be based on
the complexity of the issue and also on the experience of the team. Methods must be
simple in nature and easy to understand.
 Evaluate the alternatives against the criteria: another important step is evaluation of
the alternatives against the set criteria and this can be done by the quantitative methods,
qualitative methods, or any combination.
 Validate solution: After completing the evaluation step, organization choose the most
preferred alternative, and analyse it. This assessment is done for the purpose of ensuring
that this alternative solution resolves the identified problem (Baker & Bridges, 2001).

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Answer 2:
Generally decision making problems are divided into two forms that are structured and
unstructured, and explanation related to both is stated below:
Structured problems: these problems are differentiated in the form of structured
decisions, as they have all the relevant information for the purpose of finding the solution, and
they also have relevant methodology. Structured issues are generally occurred on the regular
basis. This can be understood through example, whether or not company needs to withdraw the
funds from the international account depends on the present exchange rates. Structured is define
as the situation when organization have the process to handle the situation, and the implication is
set that’ structured problems are those problems which are recurring on continuous basis.
These problems recur on continuous basis, because of which we put few process and
procedures to resolve them. The best example of this is hiring process. Structured issues create
the box through which we initiate to think, and this box allowed the person to take their decisions
quick and confidently. This automatically generates the confident to use the procedure and
process for resolving the problem, because that process is already an approved process and
creates bit a justification for the decision taken by the person (Maths, n.d.).
Unstructured decision: Unstructured means that decision making process that has not
been met in the similar form and for there is predetermined and clear process or procedure exist
in the organization. In other words, organization does not have any process or procedure to
resolve this. When no process or procedure exist for taking the decision or resolving the issue,
then decision maker become more confuse in context of taking the decision.
Decision maker becomes less confident while taking the decision because of the immense
confusion after considering all the options and alternatives. They hesitate in choosing any one
option because off the lack of confidence and fear of making the bad decision. Resolving the
unstructured problems is the time consuming task because in this decision makers need to repeat
the above stated steps.
There are number of ways which can be chose to resolve the unstructured problems, but
this type of problems required the decision making process which is of robust nature (Raheem,
n.d.).
Answer 3:
In case business organizations fail to act with integrity in context of its people, customers,
society, and community, then it will definitely affect the reputation of the business in negative
manner. Therefore, it is necessary for the business organizations to ensure ethics in their
management and other processes. Following are the four views on ethics:

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 Utilitarian View: This view is considers as the superior concept of justice in the late 18th
and 19th centuries. As stated by the Werhane and freeman, theory of utilitarianism justify
the idea that goods things can only be done by conducting the right action. They also
accept the concept that welfare of the society can only be achieved at the expense of
something. In context of organizations, it is expected that behaviour of the managers and
employees must contributes welfare of the maximum people and advantages to the
complete society. Utilitarianism is the theory states that ethical action is considered as
that action which maximizes the utility of the action. There are number of forms through
which utility is defined such as good to the people, advantages, well-being, etc (Baughar
& Weisbord, n.d.).
 Individual View: The value related to the individualism is based on the independence
and making choices for oneself. As an individual person has right to act as a self-directed
agent, as right related to privacy states that individual holds the right to take decisions
about their own lives. However, two restrictions are imposed on this view of ethics. First
restriction states that, individual view does not include the unlimited freedom and must
not breach the rights hold by others, or conduct any action which cause harm to others or
deprive others from their rights. Second restriction deals with the competency and as per
this individual must be competent to take their decisions (Chonko, 2012).
 Justice View: By moral philosophers, Justice is described as the fairness. In context of
organization; it includes the commitment on part of managers and employees to provide
equal and fair treatment to each and every client. This view states that each and every
person is entitled to equal access to the products and services served by the organization
regardless of their age, sex, religion, etc (Reynolds, 2006).
 Moral rights view: This view mainly concentrates on the fundamental rights of all the
human beings, and because of this idea is little complex in nature and go through various
stages of the evolution. There is no agreed and single definition of human rights which
successfully covers all the aspects related to the term. The three most important aspects
of the human existence is the human integrity, human freedom, and human equality. This
can be understood through example, strict policies on sexual harassment, discrimination,
etc (Jaffee & Hyde, 2000).
Answer 4:
In an organization, chain of command is considers as the hierarchy adopted by the company for
the purpose of reporting the relationships. Flow of this hierarchy is from the bottom to top, and it
mainly states, who report the facts to whom. This chain of command not only establishes the
accountability but also states the company’s lines of authority and decision making power.
Efficient chain of command in the organization ensures that each and every task, position, and
department has any one person who is accountable for the actions. Following are the most
important elements of the chain of command:

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 Chain of command does not form automatically, as designers and management of the
organization is responsible to lay down the chain of command. While preparing this
chain, each and every aspect of the organizational structure is considered, because it is
necessary to ensure that chain meets the requirement of the strategy and defined
organizational structure.
 Another important element of the chain of command is the organizational chart, which
means that reporting relationship state at the last stage of the administrative project, and
is easy to see it on the chart of the organization which already reflects the structure of the
company. It must be noted that, each and every position in the organization must be
connected to the line.
 Span of Control is also considered as the important element of the chain of command.
Generally, manager is connected with many employees, who are reporting under the
manager is called as manager’s span of control (Johnson, 2018).

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References:
Ahmad, A. Bwisa, H. Otieno, R. & Karanju, K. (2014). Strategic Decision Making: Process,
Models, and Theories. Business Management and Strategy, Volume 5 (1).
Baker, D. & Bridges, D. (2001). Guidebook to Decision-Making Methods. Retrieved from:
https://www.researchgate.net/publication/255621095_Guidebook_to_Decision-
Making_Methods.
Baughar, D. & Weisbord, E. Egoism, justice, rights, and utilitarianism: student views of classic
ethical positions in business; Journal of Academic and Business Ethics.
[http://www.aabri.com/manuscripts/08098.pdf].
Chonko, L. (2012). Ethical Theories. Retrieved from:
http://www.dsef.org/wp-content/uploads/2012/07/EthicalTheories.pdf.
Jaffee, S., & Hyde, J. S. (2000). Gender differences in moral orientation: A meta-analysis.
Psychological Bulletin, Volume 126, PP 703-726.
Johnson, S. (2018). Chain of Command in Organizational Structure. Retrieved from:
https://smallbusiness.chron.com/chain-command-organizational-structure-59110.html.
Maths. Levels of Decision making. Retrieved from:
https://www.maths.tcd.ie/~nora/FT351-3/DSS.pdf
Raheem, M. Decision Support Systems: A Summary, Problems, and Future Trends. Retrieved
from: http://pathways.cu.edu.eg/library/subpages/training_courses/DTMS-PPP/
Problem_Solving-Dr.Mohamed_Abdallah.pdf.
Reynolds, S. (2006). Moral awareness and ethical predispositions: Investigating the role of
individual differences in the recognition of moral issues. Journal of Applied Psychology,
91, 233-243.