The insight of this chapter is the need to be aware of a better decision making process, how to overcome biases, and tools to utilize in making better decisions in order to become a better manager. When an individual is faced with a decision, he may believe that he is weighing facts objectively as well as, making rational considerate decisions. The situation requires careful judgment where every individual is influenced by his or her final decision (Bazerman and Moore, 2009). The text in this book provides managers with vital insights that might help them to come up with a better managerial decision making process. The chapter looks into fairness and ethics that are involved in the decision-making process. Furthermore, the chapter has important information for every manager seeking further information on how to enhance his or her fairness and ethics in decision making. The text is important since it helps improve the quality of managerial judgment; it also equips one with knowledge of how human decision making is biased in numerous ways. The chapter examines to some extent judgment in various business contexts, and also presents practical approaches for changing and improving decision making process. This helps to avoid bias and encourage fairness. With the Bazerman's eighth edition, a manager can learn how to deal with those biases in order to be able to make strong managerial decisions. Notably, the text presents a better understanding what leads to a good manager’s to cross ethical boundaries (Bazerman and Moore, 2009). The chapter aims at enhancing decision making process to make the process part of the permanent culture within the business. The chapter touches on investment mistakes and psychology of poor investment decisions. According to the chapter an individual will not be influenced by his or her biases when making decisions. According to this chapter, I came to a conclusion that ethics plays the following vital roles in decision making process. Ethics is necessary in decision making process since a strong ethical culture helps in safeguarding ethical conduct in each and every business set up. Also, it enhances a culture whereby employees are in a position to abide by workplace ethics (Audi, 2009). Employees are able to respect and safeguard the company’s assets. On the other hand, employees will respect and protect the company’s asset when treated with dignity since they feel proud to be working for the company. Ethics in decision making ensures that the employees perform their duties in a set-up which encourages integrity. Besides, ethics plays a significant role in encouraging employee’s superior connection between their values and those one of the company. Notably, the workers are motivated towards increasing their level of productivity. A company is in a position to improve its public image by making the right decisions such as discharge of waste avoid exposing the surrounding communities to harm. The community around the company will consider the company to be operating with integrity and honor as well as valuing people over profits (Jones, 2004). Ethical conduct in a company always encourages a culture of decision making based on ethics; it promotes transparency and accountability when making the company’s decisions. A strong ethical culture facilitates better management of conflicts by making the right moves.
Fundamentally, ethical conduct in decision making within the company always sensitizes the employees on how to operate and act consistently. Ethics plays a crucial role in decision making regarding best utilization of available resources such as time, finances and human capital as well, they are directed into productive operations instead of questionable purposes or even personal gain. Ethics in decision making ensures that the company complies with laws and regulations and also ensures ethical relationships with clients.
Audi, R. (2009). Business ethics and ethical business. New York: Oxford University Press
Bazerman, M. H., & Moore, D. A. (2009). Judgment in managerial decision making. Hoboken,
NJ: John Wiley & Sons.
Jones, T. (2004). Business economics and managerial decision making. John Wiley & Sons