Ethical Decision Making in

Organizations
Ms. Sumina Susan Kochitty
Factors that inhibit ethical decision making

• Era of globalisation
• Conflict between organizational values and
personal values
• Moral values of individuals
• Competition
• Job / Work Pressure
 Model of Decision making
• 3 factors that influence decision making of a
person
– Ethical issue intensity
– Individual factors (moral philosophy and moral
development of a person {avoiding punishment,
self interest, good boy attitude, Law and order
morality, Social Contract and Principle})
– Organizational factors (colleagues, culture of the
organization)
 Steps to Ensure Ethical Decisions
• Create a code of ethics
• Scrutinize all the alternatives
• Consider the consequences
• Ethical consideration
• Develop options
• Monitor and Modify
 Global Implications of OB
• International Setting for Management Criteria
• Planning, Organising, Staffing, Leading,
Controlling
 Global Management
• The process of growing and maintaining
business operations in several countries across
domestic borders .
• Distinct areas in GM: Cross cultural
communication, global competition,
international strategy.
 International Managers are also concerned
with:
• (1) Planning – the process of drawing up a
roadmap to achieve certain goals or objectives.
• Global Planning Process – Stakeholder
Expectations – Situation Analysis – Resources
and Capabilities – Knowledge Management –
Corporate Objectives – Marketing Strategies –
Implementation of Marketing Plan – Correcting
deviations from the plan
 (2) Organizing
• The process of forming a framework or structure
which helps employees to work effectively
• Organizational Characteristics of MNCs:
Formalization (Use of well defined organizational
structures)
Specialization (Delegating precise and well stated
jobs to employees)
Centralization (the system under which top
management takes all key decisions of the org.)
 (3) Staffing
• The managerial function of hiring and
developing the required personnel to fill in
various positions in the organizations.
• Types of staffing policies – Ethnocentric (PCN),
Polycentric (HCN), Regiocentric
 (4) Leading
• “Cross cultural leadership is the process of
influencing individuals or teams representing
diverse cultural meaning systems to
contribute toward the achievement of the
organization’s goals.”- Beechler & Javidan
• Challenges in Global Leading – Cultural,
Political, Geographical.
 (5) Controlling
• It seeks to make sure that all other processes
like planning, organizing, staffing and directing
are properly executed and conducted to
achieve the same organizational goal.
• Challenges in global controlling – geographical
distance, language and communication,
cultural barriers.
 Cultural Influences on International
Negotiations
• Language Variation
• Trust
• Cultural Differences
• Professional Conflict
• Protocol
• Time
• Power Distance
 Multi Cultural Teams
• Multi cultural teams or cross cultural
teamwork
• Drawing members from different cultures
varying in their background, values, beliefs
and practices.
 Types of Multi cultural Teams
• Token Teams – where only one member is
from another culture.
• Bicultural Teams – Members from 2 cultures
• Multi cultural Teams – Members from 3 or 4
cultures
 Process of Developing MCTs
• Entry – Initial team formation
• Work – Problem Description and Analysis
• Action – Decision making and Implementation
 Steps for Managing and Motivating MCTs

• Define culture
• Conduct an employee survey to learn about
employee preferences
• Identify ways to utilise the talents of a multi
cultural workforce.
• Encourage inter departmental discussions
• Ask employees for suggestions
 Strategies for Managing MCTs
• Recognising differences
• Cultivate openness
• Creating Mutual Respect
• Equal Power
• Establishing a vision
 Strategies for Motivating MCTs
• Giving Rewards
• Designing Jobs
• Incorporating Employee Involvement
Programs
• MBO
• Recognition to employees
 Impacts of Globalisation on OC
• Language
• Culture
• Increased Cultural Diversity