In attempting to solve a problem, a manager should always analyze more than one possible solution.

Managers sometimes skip the last step in the decision-making process because evaluating the effectiveness of a decision takes time, and managers, who are generally busy, may have already moved on to other projects. Yet evaluating effectiveness is important. When we fail to evaluate our own performance and the outcomes of our decisions, we cannot learn from the experience in a way that enables us to improve the quality of our future decisions.

Attending fully to each step in the decision-making process improves the quality of decision-making and, as we’ve seen, managers can engage in a number of tactics to help them make good decisions. Take a look at the Ethics in Practice box to see an example of how one particular manager puts these techniques into practice to make good decisions.

Rob Ault, Project Manager, Bayside Community Church

Bradenton, Florida When it comes to decision-making, ethical dilemmas require particular care. Because managers make many decisions, it should not be surprising that some of those decisions will have ethical implications. With multiple stakeholders to consider, sometimes what is best for one group of stakeholders is not what is best for others. I talked to Rob Ault about his experiences with ethical dilemmas over the course of his career. Rob has been in managerial roles for over 25 years, since he was 19 years old. He told me that he had experienced a number of ethical dilemmas in that time.

Rob has spent most of his career working for for-profit organizations, and for about half of that time he has worked in a union environment. What he has found most frustrating, regardless of environment, was when it was clear to him what was right, but what was right conflicted with what his boss was telling him to do. This included a situation in which he felt an employee should be fired for misbehavior (but wasn’t), as well as situation in which he was asked to fire someone undeservedly. What we mostly talked about, though, was his process. How did he go about making decisions in these challenging situations?

Rob clearly stated that his approach to these situations has changed with experience. What he did early in his career is not necessarily what he would do now. He said that it takes experience and some maturity to recognize that, as a leader, the decisions you make affect other people’s lives. He also explained that a starting point for the decision-making process is always a recognition of the fact that you have been hired to generate a benefit for your company. So a manager’s decisions need to come from the perspective of what is going to be in the best long-term interest of the organization (in addition to what is morally right). This isn’t always easy, because short-term consequences are much easier to observe and predict.

I asked Rob who he talked to prior to making decisions in situations with an ethical component. Rob told me that he felt one of the most important things you should do as a leader is to intentionally create and build relationships with people you trust in the organization. That way you have people you know you can talk to when difficult situations come up. He was very clear that you should always talk to your boss, who will tend to have a broader understanding of what is going on in the context of the larger organization. He also told me that he liked to talk to his father, who happened to work in human resource management for a large Fortune 500 organization. His father was always helpful in providing the perspective of how things were likely to play out long-term if one person was allowed to bend the rules. Rob realized eventually that the long-term consequences of this were almost always negative: once one person is allowed to misbehave, others find out about it and realize that they can do the same thing without repercussions. Rob also seeks out the opinions of other individuals in the organization before reaching decisions with an ethical component; he told me that when he worked in a union environment, he tried to make sure he had a good relationship with the union steward, because it was helpful to get the perspective of someone who was committed to the side of the employee.

The biggest ethical dilemma Rob faced was one that he actually couldn’t talk to me about. He disagreed with what he was being asked to do, and when it was clear that he had no other choice in the matter, he quit his job rather than do something he felt wasn’t right. He accepted a severance package in exchange for signing a nondisclosure agreement, which is why he can’t share any details . . . but it was clear from our conversation that he feels he made the right choice. That particular ethical dilemma makes it clear how challenging managerial decision-making can sometimes be.

Discussion Questions

1. If you were faced with an ethical dilemma, from whom would you seek advice?
2. Describe some decisions that might be good for an organization’s profitability in the short-term, but bad for the organization in the long-term.
3. What factors would you take into consideration if you were thinking about leaving your job rather than do something unethical?

1. Explain what satisficing is and when it may be a good strategy.
2. What are the six steps in the decision-making process?
3. What are the four steps involved in ethical decision-making?

Question

For employees who like their current work, moving into management means they can no longer do that work.

Question

If the company helps employees move into management with training programs, there will be less risk and a greater opportunity for employees to be successful.

Question

Promoting current employees to management positions gives the company the advantage of having managers who understand company operations and policies.

Question

There are a number of activities that must be performed by all managers no matter what the type or size of the company.

Question

The primary work of all managers can be grouped within four functions: planning, organizing, implementing, and budgeting.

Question

An employee who performs two of the four management functions, even for a short time, is considered a manager.

Question

A manager who spends most of the time on one management function or is responsible for a specific part of the company’s operations is known as a mid-manager.

Question

As managers move up in the organization, their responsibilities change.

Question

Supervisors work directly with employees and are responsible for translating the company’s plan into action.

Question

Supervisors are usually promoted from the area where they work.

Question

The effectiveness of a supervisor’s job is determined by three factors: the quality of employees’ work, the employees' job satisfaction level, and the efficient use of resources.

Question

The job of supervisor does not vary much from department to department or from one company to another.

Question

Good supervisors are able to show employees the importance of company goals.

Question

Supervisors can complete informal evaluations of employee performance but should not be responsible for formal evaluations.

Question

Supervisors are responsible for the work of each of their employees.

Question

When an employee is not performing work correctly, the supervisor should take over to make sure it is done well.

Question

If managers want to determine why certain groups of customers are purchasing a product while others are not, they would conduct human resource studies.

Question

The first step in effective problem solving is to identify the symptoms.

Question

In attempting to solve a problem, a manager should always analyze more than one possible solution.

Question

A problem can be considered solved once a solution has been chosen and implemented.

Question

The process of accomplishing the goals of an organization through the effective use of people and other resources is

Answer

• planning

• supervision

• management

• implementation

Question

The function being performed when a manager is carrying out plans and helping employees work effectively is

Answer

• planning

• organizing

• implementing

• budgeting

Question

Analyzing information and making decisions about what needs to be done is the management function known as

Answer

• planning

• organizing

• implementing

• none of the responses

Question

To be considered a manager, you must

Answer

• regularly complete all four management functions

• have authority over other jobs

• have authority over other people

• all of the responses

Question

People in the first (or beginning) level of management in a company are known as

Answer

• executives

• supervisors

• mid-managers

• trainees

Question

Which of the following is not one of the common responsibilities of supervisors?

Answer

• Communicate goals and directions to employees.

• Encourage employees to do their best work.

• Keep employee complaints and concerns from top management to prevent problems.

• Control costs and use resources efficiently.

Question

Which tool is most important when a supervisor is determining the work to be done, setting priorities, and ensuring that the work is completed?

Answer

• work schedules

• memos and reports

• evaluation checklists

• none of the responses

Question

If companies spend much time correcting errors and redoing work, it is likely that the supervisors are not effective at

Answer

• communication

• evaluation

• quality control

• time management

Question

Which of the following would be an effective way for a supervisor to develop management skills individually if the company does not provide training?

Answer

• Read management books and magazines.

• Enroll in management courses.

• Participate in professional management associations.

• All of the responses.

Question

Managers use information systems to reduce the amount of time spent

Answer

• communicating with employees

• in training

• on controlling activities

• using a computer

Question

In order to make good business decisions, a company may gather business research from

Answer

• government organizations

• universities

• trade associations

• all of the responses

Question

Decisions about the daily operations of a specific unit in a business are the responsibility of

Answer

• top level of management

• middle management

• supervisors

• employees

Question

A sign or indication that something appears to be a problem is

Answer

• an alternative

• a symptom

• a solution

• a problem-solving process

Question

Which of the following would be involved in decision-making in a business?

Answer

• Only executives

• Mid-managers and executives

• Only supervisors

• All levels of managers

Question

The final step in the decision-making process is to

Answer

• analyze the solutions

• determine possible solutions

• identify the problem

• select the best solution

Question

The best way to determine the problem after a symptom has been identified is to

Answer

• guess

• ask questions

• determine alternative solutions

• none of the responses

Question

Once a problem has been identified, a manager should

Answer

• solve it

• list possible solutions

• make a decision

• analyze the problem

Question

An effective way to test one or more solutions is to

Answer

• ask employees to identify the problem

• choose the least expensive solution

• conduct an experiment

• wait to see if the problem disappears

Question

Which of the following activities should a manager complete after selecting a solution?

Answer

• Determine the best way to implement the solution.

• Identify who should be a part of implementing the solution.

• Gather information to determine if the solution is solving the problem.

• All of the responses.

Question

Studying and evaluating the results of a solution is part of

Answer

• the controlling function for managers

• the decision-making process

• the last step of selecting the best solution

• all of the responses