Ethical Decision Making: Developing Effective Managerial Practice

This essay examines the crucial role of ethical decision-making in effective managerial practice. It reviews the literature on ethical decision-making, emphasizing its contribution to demonstrating effective managerial skills. The essay includes a personal evaluation based on the Big Five personality traits, assessing current managerial capabilities and personality in relation to ethical decision-making. Furthermore, it provides a comprehensive plan for developing skills and abilities to become an ethical and effective manager. The study also highlights that there is a significant link between personality and ethical decision making.

Running head: ETHICAL DECISION MAKING AND MANAGEMENT
ETHICAL DECISION MAKING AND EFFECTIVE MANAGERIAL PRACTICE
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ETHICAL DECISION MAKING AND MANAGEMENT 2
ETHICAL DECISION MAKING AND EFFECTIVE MANAGERIAL PRACTICE
Table of Contents
1). Introduction...........................................................................................................................................2
2). Literature review....................................................................................................................................3
2.1. The concept of ethical decision making................................................................................................3
2.2 Capabilities and skills necessary to promote good ethical decision making.........................................5
2.3 Personality traits and ethical decision making......................................................................................7
2.5 summary of the literature reviews.......................................................................................................8
3). An evaluation based on the Big Five Personality Traits..........................................................................8
4). Plan,......................................................................................................................................................10
5). Conclusion............................................................................................................................................11
6). Reference lists.....................................................................................................................................12
1). Introduction
As a result of stiff competition in contemporary organizations across the globe, there is high
demand for effective managerial practice amongst managers in order to enhance prosperity in the
respective organizations. There is deficiency of mangers that have effective managerial practices globally
with exception of a few international organizations that have managers exhibiting effective managerial
practices. Evidence shows that managers have got inadequate emotional intelligence and empathy and
reason or experience and wisdom to calculate projected outcomes. (Ford, & Richardson, 2013, p.374).

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A midst this challenge numerous measures have been put in place to enhance effective
managerial practice amongst managers in contemporary organizations in order to suit in the competitive
world today.one of the measures is training managers on ethical decision making. In addition to self-
evaluation using the three ethical perspectives that is to say; ethic of care, ethic of reason and ethic of
obedience. This can help managers tell whether they are ethical or not and also identify their weaknesses
and strength and consequently improve where necessary.
The purpose of this essay is to assess my current, competencies and behavior, skills and
managerial capabilities while demonstrating ethical decision making as a manager and to create a
thorough plan for developing these skills and abilities in order to enable me become an ethical manager
and ultimately an effective manager in future (Tenbrunsel, & Smith, 2008, p.600).
The second section reviews relevant literature concerning ethical decision making and effective
managerial practices and the big five personality traits. Section three emphasizes my personal evaluation
concerning my current managerial capabilities and personality in relation to ethical decision making. The
next section gives a thorough for developing abilities and skills in effective management practice. Section
five will include the conclusion. Then section six will be a list of references and lastly an appendix that
will include; summary of results tables showing scores of three questionnaires selected, scanned or
photographed copies of three questionnaire responses and results.
2). Literature review
Various scholars have defined concepts of ethical decision making and management practice in
different ways but with a common view as highlighted below.
2.1. The concept of ethical decision making
Ethical decision is defined as a process of assessing and selecting an option from many
alternatives in a way that is consistent with ethical principles. In making ethical decisions it’s essential to
observe and eliminate unethical alternatives and choose the best ethical option.

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Ethical decision making can further be refer to a process of reviewing various alternatives while
eliminating those with an un ethical perspective and selecting the best ethical alternative.
Ethical decision making may also mean critical examination of the three ethical stand points of ;
ethic of care which engages emotional intelligence, ethic of reason which engages rational brain that is to
say; experience and wisdom and the ethic of obedience.( Ingram, LaForge, & Schwepker 2007, p.310)
In this context ethical decision making shall mean critical evaluation of the three ethical
perspectives of obedience, care and reason and choosing the best option from the many. Ethical decision-
making aids people when challenged with tough choices in an ethical dilemma. This is a situation where
is uncertainty concerning wrong or right answer. For effective management, there is need to incorporate
ethical decision making, personality traits, skills and abilities (Ferrell, Johnston, & Ferrell, 2007, p.290)
Organizations should use ethical programs and compliance to demonstrate and reinforce their
commitment to ethical practice in order to help guide decision making and conduct of workers. Positive
decision making is required to maintain standards of business high. Compliance with supervisory
requirements specific policies of a given organization are one of the serious constituents of effective risk
management. Monitoring and maintaining compliance is not just to for to please supervisor but to it is one
of the most essential ways an organization can keep its moral wellbeing, support long term success and
reservation and stimulate its values. On a more concrete level ethics program and compliance support the
objectives of an organization, identification of boundaries of legal and ethical conduct as well as
instituting a structure to alert management when an organization is near to ethical or authorized limit. On
this note management must be ready to respond quickly and correctly to diminish the impact on an
organization. The presence of ethics programs and compliance shows commitment of an organization tom
creating a work environment and corporate culture that values doing what is good, just and right keeping
standards high. This calls for mangers to employ various strategies incorporating competences, personal

ETHICAL DECISION MAKING AND MANAGEMENT 5
skills, behaviors culture, and managerial abilities to be able to favorably compete across the globe (De et
al., 2011)
2.2 Capabilities and skills necessary to promote good ethical
decision making
Skills refer to abilities that are acquired through the process of learning to enhance carrying out of
precise responsibilities. Skills may also mean capabilities to perform certain things. There are numerous
new approaches that companies should be thinking of in order to develop capabilities and skills that are
necessary for promotion of good ethical decision making. These approaches have been advanced in the
following areas (Groves, Vance, & Paik, 2008, p.310).
Training workers on ethics in order to help them address the moral dimension of business
decision. This may include; guest lectures, workshops and employee or administrative deliberations.
Focus on action deliberations should be made on role playing exercise to stimulate real decision-
making situation and provision of rehearsal in how to think through ethical deliberations.
Development of ethical conduct is one of the key elements in improving risk management.
Defining, encouraging and monitoring ethical conduct one of the most challenging things related
to risk. Research proves that major corporate failures of the past decades were direct linked to ethical
behavior or absence of it. Ethical conduct is central but often an over looked component risk evidence
shows that the challenge most firms face is that ethics covers numerous areas of activity yet it lacks an
accurate set of methods (Loviscky, Treviño, & Jacobs, 2007, p.50)
The concept of corporate culture has been expanded to include customer relationships,
accountability, and use of customer data, diversity, and fair-trade market conduct unlike in the past when
it was limited to governance matters.
Hiring and retention

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Today the human resource department assists to develop worker at all levels with skills and to
abilities to embed a company’s values. New staff and senior employees should be identified and
sustained through clear model conduct that demonstrates ways through which company’s values will be
implemented in governance and client opposite roles.
Monitoring
This is another capability that can help promote good ethical decision making. This requires
better management information and analysis can help identify possible an un ethical conduct in different
kinds of organizations whether in larger scale in several parts of an organization or small localized ones.
Firms are combining quantity information from communication investigation with quantitative behaviour
risk matrix. For example, capturing soft information concerning tone and culture throughout accompany
(Dane, & Pratt, 2007, p.50).
Behavioral change is another skill needed to promote good ethical decision making. This can be
conducted in thirty days to help attain the take-up of desired conduct through minor incremental
transformation within a team. Positive results have been observed in some companies that added
innovative technologies for example peer-peer rewards.
Defining the conduct desired and then adapt the correct technologies and tools to impart and
stimulate the conduct.one of the most essential tools is the accurate measurement of specific key
indicators of performance. For example, this can be by use of sales data, as indicators for fair treatment,
track complaints, in relation to precise communication as an indicator for success in supporting its
objectives, customer satisfaction index among others (Knapp, & VandeCreek, 2012).
Technology is in bringing fourth new ethical concerns for companies ranging from use of client
data and proper safeguarding to the impact of robotics and automation upon employees to monitoring of
workers’ skills of communication. For example, social media and e-mail. Technology is further providing
solutions and tools for holding companies to high ethical standard. Numerous studies assert that

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conducting business ethically can improve performance and cost-effectiveness companies that employ
innovative technologies to measure progress and reach determined goals often inaugurate a vital
competitive benefit to stakeholders and themselves.
2.3 Personality traits and ethical decision making
Personality traits refer to differentiating potentials that are personification of an individual. This
can also mean typical, designs of nature and passions.
A number of studies contend that there is a significant relationship between personality traits and
ethical decision making. A research study on psychology of doing nothing: forms of decision avoidance,
reason and emotion proves that personality is a predictor of ethical decision making. For example,
qualities like narcissism and cynicism among students training for career in science. Research findings
show that narcissism among individuals’ differences determines self-perception and also other peoples’
perceptions. Still the study demonstrates a consistently negative relationships aspect of ethical decision
making whereas basing on personality qualities for example qualities like agreeableness,
conscientiousness was feebler and less reliable. The study further examined the relationship personality to
metacognitive reasoning approaches and public interactive response designs assumed to trigger ethical
decision making. Findings show that personality was linked to many of these social-cognitive instruments
which in past explain the relationship between ethical choices and personality Craft, 2013, 250).
Meanwhile in another study extraversion, agreeableness openness to experience and
conscientiousness were assumed to forecast ethical decision making. Results revealed that neuroticism
have negative effects on ethical decision making in addition, there was no significant relationship
between ethical decision making and extraversion and on the other as earlier on suggested agreeableness,
openness to experience and conscientiousness are found to essential precursor of ethical decision making.
In general research proves that there is a significant relationship between personality traits and
ethical decision making.

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2.5 summary of the literature reviews
In conclusion, from the past studies evidence shows that there is a relationship between ethical
decision making and effective management practice in that managers who uphold ethical decision making
is likely to prosperous unlike those who do not uphold ethical decision making. The study still reveals
that there is a significant link between personality and ethical decision making but with neuroticism
having negative impacts on ethical decision making and there was no significant relationship found
between extraversion and ethical decision making (McDevitt, Giapponi, & Tromley, 2007, p.250).
3). An evaluation based on the Big Five Personality Traits
Personality traits refer to qualities that are the embodiments used to distinguish individuals.
The Big Five Personality Model as advanced by Goldberg is still relevant even today’s prevailing
the as the most accepted model with its prevailing theory of personality traits. This model does not
necessarily explain the traits but explains the five primary factors of personality that in which numerous
traits fit. Though there is relevant literature concerning the Big Five Personality Trait that most
researchers agree with there are slight divergences. Goldberg proposes that this theory has been of
validity for decades. These five traits include; conscientiousness, agreeableness, openness to experience,
neuroticism, and extroversion. the traits that fall under openness to experience include; creative, curious,
perceptive, love for learning, insightful, imaginative, enjoys arts, likes meeting new people, intellectual
and engages in in creative career. A person who is open to experience experiences depth and complex
mental life, traits of conscientiousness these people tend to control impulses and act in socially acceptable
ways that facilitate goal directed conduct; these people delay gratification work with in rules and plan and
organize effectively (Thiel et al., 2012, p.64). Traits of conscientiousness traits include; thorough self-
disciplined, persistent, consistent, controlled, reliable, persevering, energetic resourceful, hardworking,
planners and ambitious.
Generally, people with these traits can hold leadership positions and perform very well;
extroversion has got two usual ends of the spectrum. That is to say; introversion and extroversion gain

ETHICAL DECISION MAKING AND MANAGEMENT 9
energy from the “external world “or interaction with others while introverts gain energy from internal
world with solitude with the self. Research demonstrates that this is still extremely prevalent today since
findings prove that it is a useful differentiator between the two relatively distinct types of people.
However, this is not permanently planted as suggested by psychologists. The traits of extroversion are;
assertive, fun-loving, confident, friendly, affectionate, sociable, out-going, happy socially confident,
articulate, out-going, energetic and talkative agreeableness elaborates how well people can accommodate
others. Traits that fall under agreeableness include; modest, polite, amiable, cheerful, considerate,
unselfish, loyal, patient, sensitive, trusting, humble, moderate, and kindness. Extroverts interact with
others confidently (Oliveira, 2007, p.13).
And finally, neuroticism that exhibits a high score of more negative traits. Individuals with this
personality are comfortable in their own skin and are confident. This incorporates one’s expressive
permanency and general anger. The traits of this factor include; pessimistic, general anger, sadness,
nervous, moody, jealous, low-self-esteem, anxiety, worry, self-conscious, unsure of themselves, easily
angered, unstable, self-critical, awkward, testy, oversensitive, unconfident, insecure and fearful ( Husted,
& Allen, 2008, .300)
In pursuing my profession in management, it very significant to develop personality traits that
will have positive impact in this very career so as to be able to manage those around me and my self.
Findings of the study reveal that personality traits such as conscientiousness and agreeableness
were weaker and less consistent further the study asserts that personality was closely linked to social-
cognitive instruments. Still study findings proved that there was no significant relationship between
ethical decision making and extraversion while agreeableness, openness to experience and
conscientiousness have an important link with ethical decision making. Therefore, there is a connection
between ethical decision making and personality traits.

ETHICAL DECISION MAKING AND MANAGEMENT
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In my view, from this theory my score was high on conscientiousness, agreeableness and
openness to experience as compared to extroversion and neuroticism as demonstrated in the relevant
literature. This means I am a person is resourceful, a persevering, planner, consistent, disciplined, hard-
working, loving, curious among others. This makes me a good manager however these qualities should be
used wisely to avoid negative impacts on management (Fritzsche, & Oz, 2007, p.340)
As a manager I should not be too friendly to avoid being undermined and disrespected by
subordinates. Having this factor of agreeableness can work well as long as I use it wisely since being too
generous can ruin an organization. On the other hand my score was low on neuroticism as this may have
negative impacts but really serious ones.
4). Plan,
This part will include my current skills or abilities in managerial practice as well as my future
plans and goals based on the SMART framework. Goals help in achieving success of an organization
when followed as planned.
Plan using SMART goal framework
Abilities
I have ability to analyze different aspects of life, meet new challenges in life as they arise,
assertiveness, communication skills, development of ethical conduct which is a crucial component in
improving risk management and emergency decision making
Goal
I need to improve on my interpersonal communication skills and emergency decision making
because I have a slight challenge in this areas which are critical in management practice .

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Ethical decision making is very critical in setting standards high and effective management is
equally essential driving an organization to achieving success. I intend to advance my interpersonal
communication abilities through socialization with comrades within and outside the university. I will join
different associations within the university so as help me advance my abilities. I will attend short courses
on ethical decision making.
At a master’s degree, I will specialize in communication skills which will greatly improve on my
communication skills. Communication skills are a very vital component in everyday life in every
organization whether small or big, local, national or international for success of organizational objectives
and goals.
Self-assessment
For me realize that I have improved on goals I should be able to make good presentations as well
as interact confidently with people from different walks of the world and taking up a leadership role in
the university where backed by my ability to make emergency decisions where necessary. Feedback from
colleagues will serve as an indicator of standard measure of my productivity as s well as self-evaluation.
Period of time in achieving capabilities and skill
Due to the fact that communication does not end, it means it will be a continuous process in life.
Then decision making will as well not have a limit as long as I still hold the leadership role and even after
there will be other decisions that may always be made.
5). Conclusion
With clear understanding of what management involves, assessing organizational processes,
critically analyzing the relationship between management thinking and practice of management in
modern organizations. I identify my weaknesses and be able to improve and also get to know my strength
and use then to take advantage of available opportunities in the field of management. This will enable

ETHICAL DECISION MAKING AND MANAGEMENT
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acquire necessary skills, knowledge and abilities and required of a manager in the competitive world
today. Following this assay, I will be able to adjust by adopting some traits essential in managerial
practice. Through strategies like; workshops, empowerment on ethical decision making, training on better
communication skills that value culture will help in comprehending the different dimensions of ethical
decision making that are sensitive to culture. I intend to build on my goals as cited in this assay so as to
achieve the required skills and capabilities for effective managerial practice world over.
6). Reference lists
Craft, J. L. (2013). A review of the empirical ethical decision-making literature: 2004–2011. Journal of
business ethics, 117(2), 221-259.
Dane, E., & Pratt, M. G. (2007). Exploring intuition and its role in managerial decision making. Academy
of management review, 32(1), 33-54.
De Cremer, D., Van Dick, R., Tenbrunsel, A., Pillutla, M., & Murnighan, J. K. (2011). Understanding
ethical behavior and decision making in management: A behavioural business ethics
approach. British Journal of Management, 22(s1).
Detert, J. R., Treviño, L. K., & Sweitzer, V. L. (2008). Moral disengagement in ethical decision making: a
study of antecedents and outcomes. Journal of Applied Psychology, 93(2), 374.
Ferrell, O. C., Johnston, M. W., & Ferrell, L. (2007). A framework for personal selling and sales
management ethical decision making. Journal of Personal Selling & Sales Management, 27(4),
291-299.