6 What is ethics, and
how can it be used for
better decision
making?ethics The study of moral values
or principles that guide our behav-
iour and inform us whether actions
are right or wrong.
- Work-group features.In Chapter 5, our discussion of group composition and
diversity concluded that diverse groups were likely to come up with more cre-
ative solutions. In addition to ensuring a diverse group of people, team mem-
bers need to share excitement about the goal, must be willing to support each
other through difficult periods, and must recognize one another’s unique
knowledge and perspectives. - Supervisory encouragement.To sustain passion, most people need to feel that
what they are doing matters to others. Managers can reward, collaborate, and
communicate to nurture the creativity of individuals and teams. - Organizational support.Creativity-supporting organizations reward creativity,
and also make sure that there is information sharing and collaboration. They
make sure that negative political problems do not get out of control.
Five organizational factors have been found that can block your creativity at work: - Expected evaluation. Focusing on how your work is going to be evaluated.
- Surveillance.Being watched while you are working.
- External motivators.Focusing on external, tangible rewards.
- Competition.Facing win-lose situations with peers.
- Constrained choice.Being given limits on how you can do your work.^75
WHATABOUT ETHICS IN DECISION MAKING?
At the Pan Asia Footwear Public Company in Thailand, managers set quotas in order to keep
productivity high.^76 The difficulty, as one inspector points out, is “Shoes with complex details
sometimes can’t be finished in eight hours. This means that staff might work 10 hours for an
eight-hour wage.” The company does not pay overtime when this happens, because the
employee has not met the quota on time. Employees are not paid by the hour. They simply
receive a flat fee for a day’s work. How can we determine whether this is an ethical practice by
the company?No contemporary discussion of decision making would be complete without the inclu-
sion of ethics, because ethical considerations should be an important criterion in orga-
nizational decision making. Ethicsis the study of moral values or principles that guide
our behaviour and inform us whether actions are right or wrong. Ethical principles
help us “do the right thing.” In this final section, we present three ways to frame deci-
sions ethically and examine the factors that shape an individual’s ethical decision-mak-
ing behaviour. We also examine organizational responses to the demand for ethical
behaviour, as well as consideration of ethical decisions when doing business in other cul-
tures. To learn more about your ethical decision-making approach, see the Ethical
Dilemma Exerciseon pages 327. To consider the extent to which ethical decision making
blurs the lines between work and personal life, see Case Incident—Bankers’ Excess Gets
Them Fired on the CD-ROM that accompanies this textbook.Four Ethical Decision Criteria
An individual can use four different criteria in making ethical choices.^77 The first is the
utilitariancriterion, in which decisions are made solely on the basis of their outcomes or
consequences. The goal of utilitarianismis to provide the greatest good for the greatest
number. This view tends to dominate business decision making. It is consistent with
goals such as efficiency, productivity, and high profits. By maximizing profits, for instance,312 Part 4Sharing the Organizational Vision
utilitarianism A decision focused
on outcomes or consequences that
emphasizes the greatest good for
the greatest number.