Good decision-making supports the appropriate use of resources and helps tackle problems, achieve objectives, facilitate innovation, and motivate employees. According to the video, there are two categories of decision-making: programmed (repetitive, routine) and non-programmed (new, unique) (CommLab India, 2012). The process requires the collection of available information, development of different options, review of pros and cons, and commitment to a decision based on the established goals. The criteria for assessing a business decision may include the completion of the goals such as cost-efficiency, performance improvement, or production volume. Decisions might also be evaluated using the SWOT analysis providing a comprehensive assessment (Maulina & Raharja, 2018). The criteria used in the method are strengths, weaknesses, opportunities, and threats following the implementation of the decision.
Business decision-making begins with identifying possible win-win scenarios allowing to minimize harm and produce equal benefits for all parties. Ethical problems are often complex and uncertain, so it might be challenging to predict the consequences and determine whether the decision follows business ethics (Marcus & Hargrave, 2019). It is important to ask another qualified person for advice, make a list of possible options and consequences, and collect feedback to obtain valuable information and ensure that the decision is ethical (CommLab India, 2012). Thus, an ethical decision should be objective and based on diverse information sources and opinions regarding the affected parties, reasonable alternatives, and consequences. Moreover, ethical choices are often unstructured and have no predetermined set of steps. Finally, the decision might be considered ethical if it follows the weigh-of-reasons framework proposed by Benjamin Franklin (Marcus & Hargrave, 2019). The method prevents impulsive actions, promotes reasonable options, respects common goals of diverse participants, and provides appropriate solutions to dilemmas.
References
CommLab India. (2012). Tips to improve the decision making process[Video]. YouTube.
Marcus, A. A., & Hargrave, T. J. (2019). Managing business ethics: Making ethical decisions. SAGE Publications.
Maulina, E., & Raharjia, S. J. (2018). SWOT analysis for business strategies: A case of Virage Awi in the bamboo craft industries, Bandung, Indonesia. Review of Integrative Business and Economics Research, 7(2), 213–224.