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Chapter 6
Decision Making and Ethics

Chapter Learning Objectives

Compare and contrast the rational model of decision-making and Simon’s normative model.
Discuss the contingency model for selecting a solution.
Explain the model of decision-making styles and the stages of the creative process.
Explain how participative management affects performance.
Review Vroom and Jago’s decision-making model.
Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making.
Specify at least four actions managers can take to improve an organization’s ethical climate.

Opening Case

Ethics Tied to Performance: Conference Board

The Conference Board of Canada has recent released research findings that indicate that attention to organizational ethics results in better organizational performance. Equally important, publicity about unethical behaviours was found to have a negative impact on organizational performance, specifically stock price. This provides support for the material in the chapter regarding ethical behaviour.

The Conference Board report cites common unethical employee behaviours including lying to customers, stealing company property, and paying or accepting bribes. It suggests that some of the ways to enhance ethical behaviour in organizations are a public commitment to business ethics, and employee training. It emphasizes that the organization’s leaders must make ethics a priority and ensure that a written code of ethics is adopted and enforced. These points complement the ideas presented in the chapter regarding how to improve an organization’s ethical climate.

Chapter Summary

Models of Decision Making

Decision-making is a means to an end. This chapter focuses on decision making in terms of models of decision-making, the dynamics of decision-making, and group decision-making. Decision-making is identifying and choosing solutions that lead to a desired end result. How many decisions do

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