11.4 Chapter Summary
Decision-making is a critical component of business. Some decisions are obvious and can be made quickly, without investing much time and effort in the decision making process. Others, however, require substantial consideration of the circumstances surrounding the decision, available alternatives, and potential outcomes. Fortunately, there are several methods that can be used when making a difficult decision, depending on various environmental factors. Some decisions are best made by groups. Group decision making processes also have multiple models to follow, depending on the situation. Even when specific models are followed, groups and individuals can often fall into potential decision making pitfalls. If too little information is available, decisions might be made based on a feeling. On the other hand, if too much information is presented, people can suffer from analysis paralysis, in which no decision is reached because of the overwhelming number of alternatives.
Ethics and culture both play a part in decision making. From time to time, a decision can be legal but not ethical. These grey areas that surround decision making can further complicate the process, but following basic guidelines can help people ensure that the decisions they make are ethical and fair.
Ethical Dilemma
Deer Trail Country Club’s revenues and profitability grew substantially during the first three years of Tom Green’s tenure as general manager (GM). However, in subsequent years, profits declined significantly, triggering an investigation by the club controller. The investigation revealed that the food and beverage cost percentages had gone up significantly due to increased vendor prices. Two vendors accounted for most of the increase, both of whom had given Tom high-value gifts. Such as cash rebates, free products and sporting event tickets. After the CLUB owner was informed of this, he immediately terminated Tom from the position of GM. Based on what you learned in this chapter, take a moment and ponder the following questions;
- Is this decision made by the owner fair?
- If you were the owner, would you feel better or worse about the situation after making this decision?
- Does the GM’s decision to accept gifts break any organizational rules?
- Does the GM’s decision to accept gifts break any laws?
- How would the GM feel if this decision were broadcast on the news or social media?
- What would be the consequences of Tom’s decisions to accept gifts on his future career?
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