Process of Decision-making Essay
The process of making appropriate decisions regarding a general situation requires keenness from the individual making the choices. Making the correct decisions is not an easy task, thus for one to decide between the good and the bad choice, the individual needs guidance from other people who had earlier passed through a similar situation as the prevailing one.
In most cases, experienced people may not be available to guide managers through the process of decision-making. To supplement the lack of experts, theories have been put forward explaining the basis under which designs should be made. This discussion considers the theories of utilitarianism and ethical egoism concerning decision-making process. In conjunction, with studying the ideas mentioned, the essay also focuses on the application of ABCD’s model of design making.
To start with, a reflection of utilitarianism theory is considered whereby it is noted that the theory focuses on the idea of achieving a greater good. The main idea behind this approach is trying to maximize good for a majority of people. According to the theory, the moral ideal of an action is depicted by the results that the action has on sensitive human beings. The concept holds that though some people may suffer harm from the action supported by the utilitarianism theory, the actions are still held ethical as long as they cause good to a greater number of people than it harms (Ferrell, et al. 2013).
On the other hand egoism theory also known as ethical egoism holds that what is considered the right behavior is depicted through self-interest. In egoism, actions are considered moral if they benefit the person who has instituted them. At the same time, any advantage to the welfare of others as the theory explains is a side effect of the method and is not considered as important as the concerns of the individual.
The combination of the egoism theory and utilitarianism theory works hand in hand in guiding the top managers in making correct decisions regarding a situation. To enhance the process of decision making, the methods mentioned above are supported by the ABCDs model of ethical decision making.
To improve the learners understating of how the theories support the actions taken by individuals, a consideration of two cases is reflected. The first payment to be reflected upon is the bailing out of General Motors. Before getting into details of the General Motors bailout, the ABCDs decision-making model gives some guidelines that assist individuals in the process of decision making.
Each alphabetical letter in the model presents a concrete action that the person who is taking a particular decision ought to adhere. The first letter a stands for assessing which requires the management to scrutinize the situation in which an action ought to be taken. Other letters represent actions as follows B-brainstorm, C-consequences which requires one to concentrate on both the negative and positive effects of the action to taken.
The last two letter campaigns for deciding and evaluating respectively. The action that the government of United States took of bailing out General Motors was associated with some impacts, through the application of the theories, one can quantify the measures adopted by the government as ethical or unethical (MacKinnon, 2014). Though general motors is not a private company, the government of United States saved it from the agony of going bankrupt following that the company had to compensate the damages caused by a faulty car model it had produced.
To enhance the scrutiny of the government action towards bailing out of the enterprise, utilitarian calculations are used to justify whether it was right for the government to save the General Motors from bankruptcy. The calculation aims at illustrating the use of utilitarianism in weighing out the decisions made. Considering the case of the bailout of the General Motors (GM), it is noted that the decision taken by the government had impacts on both primary stakeholders and the secondary stakeholders.
The United States government through using tax payer’s money displayed adverse effects and benefits to the stakeholders. Following the explanation provided by utilitarianism theory, seeking to maximize good by minimizing harm and the egoism theory, maximizing good by keeping individuals happy, the bailout should be accepted. To prove the validity of the government’s decision, a considering of advantages associated with the rescue is reflected.
To start with, a reflection of the positive effects attributed to the company and the employees of the enterprise is considered. The bailout enabled the company to continue its operation and at the same time scrubbed the challenge of the company being declared bankruptcy. Even though the rescue ruined the company’s reputation, which presented a harm to the company, the benefits associated with the bailout are much felt than the adverse effects.
It could have been worse if the bailout did not take place because the General Motor Company could have shut down. Thus the positive effect of the bailing out action is accepted because it is associated with causing right (the motion obeys the utilitarianism). On the government side, though the bailout presented a loophole of the taxpayer’s money, by preventing the business from collapsing, the government ensured job security for its citizens (MacKinnon, 2014). For taxpayers, a conducive business environment was provided with the significant long-term effect of ensuring high economic growth for the society. The employers also enjoyed the benefits of the bailout in that fewer employees were laid off.
For a chief executive officer to make a perfect decision, the individual requires an ethical framework that encourages a systematic review of the actions to be undertaken against the effect the actions will have on the affected stakeholder. Ethical behaviors require that the views of all the affected people are taken into consideration before the actual action is taken. The CEO of general motors’ company took a considerable long time to take the action necessary regarding the crisis that was affecting the GM company because the individual applied the ABCDs ethical model to arrive at the correct decision.
This model, as it has been noted, requires one to carry out some activities concerning the situation in which the action has to be taken. Though the process is long, the action so taken serves the best. Conclusively, the theories of egoism and utilitarianism are mostly used in decision making. It is human nature to think of the consequences of individual’s action before acting.
Commonly, the results of human actions deter a person from undertaking an action which could have been beneficial to the person. The theories explained in this essay justify the consequences of actions that people take. Since these theories have weaknesses, they should at times be applied with other normative frameworks such as the ABCDs ethical decision model.