DECISION-MAKING
Ethical Decision-Making
According to Mark S. Schwartz (2015) an increasing awareness of the importance and
complexity in ethical decision-making (EDM) has resulted in the construction or study of
numerous models to explain EDM processes; however, most theoretical framework is inherently
incomplete, even contradictory. Moreover, significantly fewer have attempted to define or
evaluate theories like the CLTtein relation to different learning environments (Beach et al.,
2014), leading Beach and colleagues identify that many of the proposed models emphasize
rational processes are based on non-rational factors such as intuition and emotion which they
argue creates theoretical divides and gaps. In response to this incongruence, more recent
literature has advocated for a unified understanding of EDM and developed a revised inclusive
model that takes all viewpoints into account.
Generally, EDM models can be divided into two general streams: (1) rationalist models
that are based on logical reasoning and rationally processing information in making structured
decisions, and (2) non-rationalist model that believe intuitive judgments and emotions have a
significant role to play in making decisions in ethical issues. Rationalist models argue that ethical
decision making can be improved by learning how to analyze the case questions more
systematically. Non- rationalist models claim that people utilize intuitive or emotional reactions
to make judgments in many situations, thus reflecting the complexity of real life.
While both perspectives have valuable implications, a significant chasm remains in the
literature on EDM as no one model comprehensively encompasses this interplay of factors
within an empirical context. To address this, a number of researchers suggest Integrated Ethical
Decision Making (IEDM) frameworks. This article proposes an alternative model in view of how
decisions are made: the dual process theory is a framework that attempts to marry rational, and
non-rational approaches by including both individual and situational determinants for decision
making across contexts. This integrated approach intends to offer a comprehensive picture of the
EDM process that blends cognitive reasoning and emotional responses in decision-making
contexts (Scwartz, 2015)
Strategic Decision-Making
According to Bill Wooldridge and Birton Cowden (2020) strategic decision-making has
figured prominently in strategic management research, shifting from an original focus on a
rational and top-management perspective to acknowledging multiple levels of the organization
and influenced by social structures as well as political context. Thus ensued, a plethora of
research is conducted on different dimensions related to the domain of strategic decision-making.
More specifically, the key research streams addressed here include: (1) the degree of
reliance on analytical rationality and unity of purpose versus incrementalism and flexibility,
described as early approaches to strategic analysis versus more contemporary strategic decision-
making; (2) traits of top managers and TMTs as contextual factors in how they impact the
strategic decision-making process have been, and continue to be researched; (3) the power and
influence of politics, conflict, and consensus in the strategy-making process as they precede
decisional outcomes; (4) the architecture of cognitive biases and heuristics which intertwine to
take a normative role and decisiveness by contributing shortcuts or personal experiences; (5)
intuitive judgements and the focus of this review, when and if they can viably assist or replace
rational judgement; and, finally, (6) the level of participation and centrality of various-level
managers in the corporate process, especially if the firm operates a relatively high leverage
decentralization policy.
Studies in these areas has been descriptive, attempting to elucidate how decisions are
made, and normative, aimed at improving organizational performance by enhancing the quality
of decision making. Decision outcomes are understood as being shaped by a variety of factors,
which may be gender-blind (such as the external environment or organizational culture) and
context-specific — such that decision-making is contingent on industry conditions. Altogether,
this research has provided considerable progress in our understanding of the strategic decision-
making process and strategies that get formulated or implemented within organizations. These
models are being developed in active lines of research, which serve to both develop and validate
this sector as a useful domain for scholars and practitioners (Wooldridge & Cowden, 2020).
Citations:
Schwartz, Mark S. (2015). Ethical Decision-Making Theory: An Integrated Approach. Journal of
Business Ethics. https://doi.org/10.1007/s10551-015-2886-8
Wooldridge, Bill & Cowden, Birton (2020), Strategic Decision-Making in Business.
https://oxfordre.com/business/display/10.1093/acrefore/9780190224851.001.0001/acrefore-
9780190224851-e-1
