Ethical Decision-Making Principles in Management Practices Report

This report delves into the critical role of ethical decision-making within the context of managing people and organizations. It begins by highlighting the necessity of ethical skills for effective leadership and explores how ethical principles are fundamental to managerial decision-making. The report reviews relevant literature, including key texts on management and ethical decision-making, and examines how ethical codes and principles, such as normative and descriptive ethics, provide frameworks for managers. It analyzes the impact of ethical decisions on various stakeholders, including shareholders, employees, and the environment, and discusses the importance of considering legal boundaries and diverse perspectives in the decision-making process. The report also assesses the author's personal attributes and potential managerial capabilities through the evaluation of three in-class questionnaires: the Big Five Personality Instrument, a Leadership Style Questionnaire, and an Emotional Intelligence Questionnaire. The analysis of these questionnaires provides insights into the author's personality traits, leadership style (leaning towards democratic/participative), and emotional intelligence level, identifying strengths and areas for development to enhance ethical decision-making skills. The report concludes with a plan for developing these crucial managerial abilities to become an ethical and effective leader.

Running head: MANAGING PEOPLE AND ORGANISATION
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MANAGING PEOPLE AND ORGANISATION
Name
Institutional Affiliation

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Managing People and Organization
Introduction
What would happen if an organization would be led by a manger with no ethical decision
making skill? Obviously such an organization is doomed to fail, right? Ethical decision making
skills is part and parcel of management and it is the basis for the decision making process in all
organizations. Managing people and organization is not a simple task for managers since it
requires a lot of professional qualities as well as personal values that promote effective
management (Crane & Matten, 2016). Managers are always faced with different dilemma in
carrying out their day to day activities and such situations require ethical thinking to make the
appropriate and timely decisions. This essay is a discussion of ethical decision-making principles
and how this influences the ability of managers to be effective in managing people and
organizations. The discussion include a assessment of the related literature on ethical decision
making process and the management practice lectures we learnt in class and how this contributes
towards effective managerial practice. The report is going to focus on the questionnaires I
answered in class activities to evaluate my potential of demonstrating the ethical decision
making practice as a future manager. This evaluation is going to be done by mainly analyzing
my personality and the current managerial capabilities I can demonstrate. The essay also will
include a thorough plan to help me develop these crucial managerial abilities and skills based on
my personal evaluation. This plan should facilitate me to acquire the necessary skills required to
become an ethical manager who will eventual be an effective manager for people and
organizations.
Literature Review on Ethical Decision Making Principles and their Association to Management

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There are several articles, journals, books and publications that have given an insight on
ethical-decision making principles and how they affect the management of people and
organizations. Samson, D. &Daft, R. (2015), Management (Fifth Asia Pacific Edition) is one of
the major books that comprehensively discuss the application of ethical decision making
principles in management. In the business sector, managers are always mandated with the
responsibility of making decisions in various situations that come up during the day to day
operations of an organization (Knapp, Gottlieb & Handelsman, 2015). The decisions made may
either affect the internal stake holders or the external stakeholders. These decisions may have
very huge impact on the business organization and therefore ethical principles have to be
considered before making decisions. The managers are expected to act very ethically when
making decisions, that is, they should observe all the ethical principles and code of professional
conduct. Internalizing the principles of ethical decision-making provides the managers with a
framework or guideline to follow in ensuring they make ethical decisions. The code of ethics is a
document that outlines the blue print for managers to use in making ethical decisions.
The code of ethics can ether contains normative or descriptive ethical principles.
Normative ethics is where the managers use the social ethics in the society to make decisions
based on the possible end results. In the other side, a descriptive code expects the managers to
question what people think is right hence follow the same line of thinking when making decision
in the various business situations.
In business, the decisions made by manager affect so many stakeholders either directly or
indirectly. For instance, organizations that are publicly owned will always focus on maximizing
shareholders profits. Managers however have to use ethical decision making principles to
balance between maximization of shareholder returns and the effects the business will have to

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other external stakeholders such as the suppliers and consumers. The decision to optimize the
revenue of the company should not compromise with other ethical factors such as the working
conditions of the employees, impact on natural resources and the environmental issues (Epstein
& Buhovac, 2014). This will ensure that all the stakeholders in the organizations are equally
treated leading to smooth operations of the business.
In many governments or states have regulations and requirements put in place to govern
the business operations in various sectors. Sectors such as health, financial services,
manufacturing and healthcare have strict regulations to be followed due to the huge public
impact these sectors have. The managers should make their decision on ethical ethics and also
consider the legal boundaries and regulations expected of them in that specific sector. Ethical
decision-making in organizations or when dealing with many people sometimes require
involvement of different individuals to help the manger identify the diversity in perspectives.
Every individual may have different views based on their background and personality hence the
manager will gain insight on what direction the company activities should take.
The other way to ensure that a manager makes ethical decision is for them to use refer to
previous decisions. Organizations usually document most of their major decisions or decisions
for most common situations and how they impact the company activities (Goetsch & Davis,
2014). The manager therefore can analyze these decisions on ethical basis to come up with the
most appropriate decision. The manager can identify ethical violations that occurred in the
previous decisions and make decisions that will not repeat the same mistakes.
Ethical decision making is not a simple practice that comes naturally or easily to
managers. It requires experience, knowledge and skills to acquire this essential management tool
(Dane & Sonenshein, 2015). Critical thinking skills and techniques are the most needed skills in

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ensuring that a manager will demonstrate ethical decision-making when faced with ethical
situations during day to day operations of an organization. Critical thinking will enable a
manager to consider the various stakeholders involved equally and consider several diverse
perspectives before making an appropriate decision that will not be inclined towards any of the
stakeholders.
According to several publications published in the past few years, individual personality
plays a very crucial role in influencing the ethical decision-making behavior of any manager.
The personality variables affecting an individual cognitive process were found to be locus of
control and Machiavellianism. The cognitive process of an individual determines the ethical
decision and the choice of ethical framework they will take (Ferrell & Fraedrich, 2015). Every
individual react different to a given situation and therefore the decision made will be different.
The personality of an individual will also determine the management style they prefer and this
will affect the level of interaction with other employees. Managers with a close interaction with
other employees will have an insight of their different perspectives and this will help them
consider the various perspectives in decision making
Trevino, L. K. (2016). Ethical decision making in organizations: A person-situation
interactionist model and Ethical decision making by individuals in organizations: An issue-
contingent model, Academy of management review are just among the many published literature
on ethical decision making and how it affects the management of people and organizations. The
literature has successfully validated the association between ethical decision making principles
and management to be specific making managerial decisions.

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Evaluation of Three Questionnaires
This evaluation is going to concentrate on the three questionnaires I answered in class
and see the personal attributes that I have and the ones I need to acquire to attain the ethical
decision making skills requires in management of people and organizations. The analysis is
going to concentrate on the score from these questionnaires and how they reflect my potential
management capabilities.
Evaluation of the Big Five Personality Instrument Questionnaire
The Big Five Personality questionnaire is considered to be among the mostly used tests
for determining the type of personality, the values, skills and interests of an individual (Rohr, J.
(2017). This test is used to determine the aptitude of an individual towards a given career. I took
this test as a way of doing an inventory of my skills towards management career. The score from
this questionnaire show my basic characteristics based on the five major personality dimensions.
Extraversion dimension include things such as positive emotions, talkativeness, energy,
sociability, assertiveness, surgency and the tendency to seek stimulation in the company of
others. High score in the extraversion are seen to implicate a domineering and attention seeking
personality while low scores are seen to represent a reflective and reserved personality.
Introverted people are mostly reserved and shy when it comes to social setting. Opposed to the
introverted people, extroverted people are seen to be dominant in social setting. From my score I
think I most likely possess the extrovert personality. This is good for management of people
since it ensures I will be able to relate with other employees and get their perspectives which will
help me make ethical decisions.
Agreeableness is meanly a measure of how cooperative and compassionate an individual
is versus how antagonistic and suspicious they are. This character determines how helpful and

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trusting an individual is. High agreeable personality is associated with being submissive or naïve
while low agreeability is seen as being challenging and competitive. The high on my score show
that my personality is associated with being submissive or naïve. These are not good quality for a
manager since they are supposed to be leaders of the people under them. This trait may make me
make unethical decisions when I am a manager in future therefore it needs to be corrected using
the appropriate mechanisms.
Conscientiousness refers to the measure of how dependable and organized an individual
is against being careless and easy going. This trait enables a person to be organized, act dutifully,
self-disciplined and such a person prefers planned behavior to spontaneous behaviors. In the
score for this part some questions such as tends being careless, can be somewhat careless and is
easily distracted are reverse scored. According to this questionnaire I tend to be disorganized and
careless which are not good skills for a manager.
Neuroticism is also called emotional stability and it is a measure of self-confident, of how
calm and how cool a person is. This personality dimension also positions how mentally strong or
weak a person is (Spector, 2016). Am I emotionally stable, can I handle stress well, am I a
relaxed person, Am I a person who is not easily sad and stays calm in situations are some of the
issues that have been rated highly from my questionnaire. High scorers have the implication that
I tend to be insecure, high-strung, worrying and nervous while low scorers would have shown
that I tend to be hardy, secure, relaxed and calm
Openness to experience is a dimension that is also known as the “intellect”. It determines
how conventional, creative and curious, open minded a person is (Iphofen, 2016). High scorers
show that I tend to be creative, curious, original and complex while low scorers show I tend to
be, down to earth, uncreative, narrow interests, and conventional.

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Figure 1. Relationship between the Big Five Personality Traits
Evaluation of My Leadership Style Questionnaire
The score from this questionnaire was 21-27 which implies that I tend to lean towards
democratic or participative leadership style. I tend to see the parameters for the work and have
the final say on decisions but I actively involve my team members in the process. This leadership
style build trust between me and my people as they are likely going to feel valued and engaged in
the decision making process. However, this leadership style is not great in a high-pressure
situation that requires a fast turnaround as the technique will slow me down. I may also struggle
with how people respond to situations if I dislike conflict and disagreement. The type of
leadership I am most inclined to has both advantages and shortcomings as presented above.
Evaluation on “How Emotionally Intelligent Are You” Questionnaire
The score for this questionnaire ranges between 35-55 which indicates my emotional
intelligence level is ok. I probably have good relationships with some of my colleagues although
some of them may be so difficult to work with. The comment from this evaluation indicated that

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I have an opportunity to significantly improve my working relationship. Therefore my
personality in terms of emotional intelligence is fine and it will help me in making ethical
decisions in management.
My SMART Goals and How I will achieve them
By analyzing my evaluation of my current capabilities I have focused on two skills that I
want to attain. Attaining these two skills should help me become a good manager who can make
good ethical decisions when I am faced with ethical dilemma in managing people and an
organization. My two personal goals are?
1. In the next three months, I want togain the critical thinking skills necessary to become a
manager within my organization so that I can lead a successful team and build my career.
2. In the next two months I want to be an organized person who prefers planned behavior to
random behavior.
SMART Goal Framework for First Goal
Specific
I want to be able to demonstrate critical thinking skills in my day to day activities in my day to
day activities. This is because critical thinking skills are very important for any manager. They
form the basis for ethical-decision making process which requires critical considerations of
several factors before settling to the most appropriate decision for a given ethical dilemma in
management. Therefore I have to ask myself several questions to help me attain this goal. These
questions include, what do want to accomplish, who is involved, why is the goal important and
which resources or limitations are involved. The limitations involved is the fact that this skills
are attained through long term experience.

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Measurable
For me to measure if I have attained the goal of improving my critical thinking skills I will have
to keep record of my daily activities and the decisions I make in various situations. I would then
compare the decisions with those I used to make and see if there is any improvement.
Achievable
It is possible for me to improve my critical thinking skills by observing all the ethical decision-
making principles that we learnt in class. I have the capability to achieve this goal since I have
learnt several ethical principles although this goal requires dedication and determination from
me. The first thing that I will have to do to gain the critical thinking skills is by frequently doing
brain games such as challenging puzzles that will exercise my thinking continuously. According
to scientific research, I should also drink enough water and avoid food that is too rich in sugar
and fats.
Relevant
Critical thinking skills are important to me as a future manager because it will help me have an
understanding of the links between ideas and recognize, appraise and build arguments (Certo,
2018). This skill will ensure that I approach decision making situations consistently and
systematic as I recognize errors and inconsistencies in reasoning. There several things I can do to
ensure that I improve my critical thinking skills and boost my chances of becoming a good
manager in future.
Time-bound
Observing the necessary principles for the specified period of three months will help me acquires
these critical management skills. This goal is short time although it can be made long term once I
am in the field as a manager.

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SMART Goal Framework for Second Goal
Specific
My next goal is for me to become an organized person who prefers planned behavior to random
behavior in the next two months. Being organized is very important in management because it
will help me as a manager to be responsible and dutiful in my work (West, 2016). Measurable
In order to become an efficient manger in future I have to adapt a good organization culture that
will become part of my personality.
Achievable
This goal is achievable if I become dedicated to it. I have to follow several steps in order to
become an organized person. For me to attain this culture I have to ensure that I follow some few
steps. The most important think I should do to become an organized person is always preparing a
plan for the tasks that I am supposed to execute. In these plans I should illustrate both long time
and shout time goals that I can check to continuously evaluate my progress and ensure I am on
the right track. I should also prepare an organization template outlining the most routinely
activities and how I should tackle them and this will ensure that I become organized. I f I observe
these practices for the two weeks than I will surely realize a difference on how I carry myself
around.
Relevant
Managers are required to be organized people hence acquiring this personal skill will help in
future as a manager. Being organized will help me to be capable to balance several tasks
effectively and efficient therefore ensuring smooth operation of the organization I will be
managing. Being organized also facilitate saving time which is an important resource.

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Time-bound
The goal can be achieved successfully within the time I specified. Being organized is a short
time goal that can be achieved through dedication and focus. It realistic since once you follow
the steps outlined with time being organized will become an automatic aspect.
Conclusion
Ethical principles are very important in facilitating ethical decision-making process for
managers. Managers are often faced with ethical dilemma in their day to day activities and
therefore it is important for them to master the ethical principles. The ethical principles and the
code for professional conduct provide managers with a framework to follow when they are faced
with situations of ethical dilemma that require ethical decision making. The decisions made by
managers usually have huge impact that can affect various stakeholders and therefore they are
expected to demonstrate good decision-making abilities. Critical thinking plays an significant
part in the process of ethical decision-making process.
Organizational skills and knowledge is also very important in ensuring organizational
performance preparation. Managing people is not a simple task and it requires the five
dimensions of personality. The personality attributes of an individual also play an important role
on how one can become and effective and efficient manager since they determine how they
associate with others and the management styles they prefer.