Cultural and Ethical Effects on Managerial Decisions: Examined in a Throughput Model

Financial and cost accounting information is processed by decision-makers guided by their particular need to support decisions. Recent technological advances impacting on information as well as organizations such as the European Community mandating financial reporting requirements for many countries is rapidly changing the landscape for decision making using accounting information. Hence, the importance of individuals' decision making is more important than it was previously. These decisions are also influenced by individuals' ethical beliefs. The Throughput Modeling approach to cultural and ethical concerns provides a way of dealing with accounting information processed through various pathways by decision-makers. This modeling approach captures different philosophical perspectives from which to understand what is involved in "thinking scientifically." In the Throughput Modeling approach, pathways highlight the importance of how different philosophical perspectives may be used by individuals in arriving at a decision. This paper highlights key concepts involved in rethinking the basis of moral decision making in terms of an underlying process, rather than focusing on the application of principles or the development of a virtuous character. Examples are provided from both English and Spanish settings to help emphasize the importance of modeling ethical decision making globally.     

A Study on Aggregation of TOPSIS Ideal Solutions for Group Decision-Making

The technique for order preference by similarity to ideal solution (TOPSIS) has become a popular multi-criteria decision making (MCDM) technique, since it has a comprehensible theoretical structure and is able to provide an exact model for decision making. For the use of TOPSIS in group decisions, the common approaches in aggregating individual decision makers’ judgments are the geometric and the arithmetic mean methods, although these are too intuitive and do not consider either preference levels or preference priorities among alternatives for individual decision makers. In this paper, a TOPSIS group decision aggregation model is proposed in which the construction consists of three stages: (1) The weight differences are calculated first as the degrees of preferences among different alternatives for each decision maker; (2) The alternative priorities are then derived, and the highest one can be denoted as the degree to which a decision maker wants his most favorite alternative to be chosen; (3) The group ideal solutions approach in TOPSIS is used for the aggregation of similarities obtained from different decision makers. A comparative analysis is performed, and the proposed aggregation model seems to be more satisfactory than the traditional aggregation model for solving compromise-oriented decision problems.     

Consistency in MCGDM Problems with Intuitionistic Fuzzy Preference Relations Based on an Exponential Score Function

This paper investigates an approach for multiple criteria decision making problems with intuitionistic fuzzy preference relations (IFPRs). An exponential score function for intuitionistic fuzzy numbers is developed. Its novelty is that it can convert an IFPR into a multiplicative preference relation. Then, the exponential score preference relation is introduced and its associated optimal transfer matrix is proposed. The optimal transfer matrix can guarantee the consistency via the additive transitivity property. Furthermore, an optimal model for aggregating group IFPRs to reach consistency is proposed. Finally, a group decision making approach and a multi-criteria decision making approach with IFPRs are presented.     

Conflict,Participative Decision‐Making,and Generational Ownership Dispersion: A Multilevel Analysis*

This study examines how participative decision‐making and generational ownership dispersion affect conflict in a sample of privately held U.S. family firms. Our study utilizes a hierarchical linear model approach to investigate “cross‐level” effects between variables from different levels of analysis. Participative decision‐making among family members was found to be associated with cognitive and relationship conflict. Furthermore, the relationship between participative decision‐making and conflict as individual‐level variables was moderated by generational ownership dispersion, a firm‐level variable. When ownership was dispersed through multiple generations, participative decision‐making was found to be positively related to cognitive and relationship conflict; however, in one‐ and two‐generation ownership firms participative decision‐making was found to be negatively related to cognitive and relationship conflict.     

Ethical decision‐making in Islamic financial institutions in light of Maqasid Al‐Sharia: A conceptual framework

This article develops a conceptual framework for ethical decision‐making in Islamic financial institution based on the Islamic methodological approaches on ethics. While making use of the similarities between the scientific method and the Islamic jurisprudence method, a framework is developed by means of argumentation and reasoning to integrate Sharia doctrines with the “plan, do, check and act” (PDCA) cycle as a managerial tool. Using Al‐Raysuni's analysis of Al‐Shatibi's work on maqasid al‐sharia, this article develops a framework to assess the ethical aspects of Islamic financial operations, which is then applied to hypothetical cases. This approach can help overcome the methodological deficiencies in measuring ethical performance in Islamic finance by focusing on the process of ethical decision‐making that leads to the outcomes of organizational behavior beyond legality of contracts. The framework outlines the conditions under which an activity that is considered legal and permissible contractually could lead to outcomes that can make it ethical or unethical.     

The Yonmenkaigi System Method: An Implementation-Oriented Group Decision Support Approach

The Yonmenkaigi System Method (YSM) is presented as a participatory method to support group decision making. It is composed of four main steps: conducting a SWOT analysis, completing the Yonmenkaigi chart, debating, and presenting the group’s action plan. The YSM is an implementation and collaboration-oriented approach that incorporates the synergistic process of mutual learning, decision making and capacity building. It fosters small and modest breakthrough and/or innovative strategy development. The YSM addresses the issues of resource management and mobilization as well as effective involvement and commitment by participants and provides a strategic communication platform for participants. A case study for developing a disaster reduction action plan, carried out with a local community organization in the City of Kyoto, Japan, is used to demonstrate the characteristics of the YSM.     

Self‐reporting vs. observation: some cautionary examples from parent/child food shopping behaviour

Most studies on decision‐making in relation to consumption are based on self‐reported behaviour. This approach assumes that consumers can account for their decision‐making processes. However, several studies show that consumers are not always aware of what happens when they purchase goods because of the role of habit and routines, or a lack of willingness to account accurately for their purchases. A clear example of this is family decision‐making about food shopping. It is well documented that parents know that their children influence what they buy in supermarkets but it is also found that parents and children do not agree on just how much influence children have. Thus, a gap exists in the knowledge about what is actually happening in this grey zone of grocery shopping which seemingly cannot be solved through retrospective data collection. Family shopping is neither a completely rational nor conscious process, which makes the use of self‐reported behaviour problematic. This study discusses the limits of survey and interview approaches to parents' and children's shopping decisions in comparison with observations. An observational study of parent/child supermarket shopping in Denmark is used to exemplify the strengths of observation. Findings show that both parents and children are juggling a number of roles and apply a range of negotiation strategies which can explain why it is hard to account for who decided what afterwards. The article concludes that mapping certain types of consumer actions calls for other methods than self‐reported behaviour.     

Is Decision Style Related to Moral Development Among Managers in the U.S.?

The decision making process is an important aspect of the managerial function that is becoming increasingly complex due to technological and global impacts. It is essential, therefore, to understand why various managers approach the decision making process differently. One area that is related to how managers perceive and process the information that is associated with decision making, is that of decision style.It is not enough, however, to explore decision style in isolation, as some of the decisions that managers make often entail ethical components concerning the ability to balance the interests of diverse groups. Moral reasoning is therefore important for every manager, and could impact the decision style that is employed by such managers. The relationship between managerial decision style and moral development is one that could provide unique insights into the area of decision making, yet it is an area that has remained relatively unexplored.Using Alan Rowe's Decision Style Inventory (DSI), in conjunction with James Rest's Defining Issues Test (DIT), the purpose of this study was to ascertain the relationship between decision style and moral development among U.S. managers.The findings of this study of 270 managers suggest that there is a relationship between higher directive decision style scores and lower principled reasoning scores. Since the focus of individuals who demonstrate a directive decision style is on task completion, perhaps the consideration of the many alternatives that are necessary to reason at a more ethically attuned level is neglected. Managers who exhibit a directive decision style might be responsible for the management of non-managerial populations of workers, and in such a capacity, set the ethical tones and examples for employees to follow. Since training and educational interventions in the area of ethics have been shown to increase moral development scores, those managers who are identified as displaying a directive decision style might benefit from such training.     

Continuous Ordered Weighted Distance Measure and Its Application to Multiple Attribute Group Decision Making

We develop a new distance measure called the continuous ordered weighted distance (COWD) measure by using the continuous ordered weighted averaging (COWA) operator in the interval distance. We study some properties and different families of the COWD measure. We further generalize the COWD measure. The prominent characteristics of the COWD measure are that it is not only a generalization of some widely used distance measures and the continuous generalized OWA operator, but also it can deal with interval deviations in aggregation on interval arguments by using a controlled parameter. The desirable characteristics make the COWD measure be suitable to wide range situations, such as decision making, engineering and economics. In the end, we develop the new approach to group decision making in investment selection.     

Decision Making and Business Ethics: The Implications of Using Image Theory in Preference to Rational Choice

The study of decision making has multiple implications for business ethics. This paper outlines some commonly used frameworks for understanding choice in business. It characterises the dominant model for business decision making as rational choice theory (RCT) and contrasts this with a more recent, naturalistic theory of decision-making, image theory. The implications of using RCT and image theory to model decision making are discussed with reference to three ethical systems. RCT is shown to be consistent with Utilitarian ethics, but not with Kantian or Virtue-based ethics. Image theory is shown to be consistent with each. The paper identifies a number of implications following from this analysis.     

Explaining amoral decision making: An external view of a human disaster

Quality of work life affects the quality of life. By applying amoral paradigms in decision making managers of business enterprises can cause a poor quality work life and reduce the quality of life. The explanation and prediction of ethical/unethical business behaviour should not always be attributed to individual managers, as it may result from strong culture and decision making systems. It is argued that the causes and the solutions to ethical dilemmas can often be found in a theory based on integration of models of moral reasoning, decision schema, value congruence and corporate decision structures. The impact of exclusion of moral principles from the decision making process is illustrated by way of a case study.Richard J. McKenna is Senior Lecturer in Strategic Management at Edith Cowan University. As well as courses in strategy, he teaches managerial decision making and business ethics. He has played a leading role in inclusion of business ethics in the University's business programmes. Prior to entering academia he was employed as an economist in the banking industry.     

Multicriteria Decision Analysis of Stream Restoration: Potential and Examples

Within stream restoration practice there has been little use of formal decision analysis methods for evaluating tradeoffs in selecting restoration sites and design alternatives. Restoration planning suffers from poorly defined objectives, confusion of objectives and means, and a lack of consideration of tradeoffs. Multicriteria decision analysis (MCDA) methods have the potential to improve restoration decision making by quantifying non-economic objectives, communicating tradeoffs, facilitating consistent and explicit valuation, and focusing negotiation on ultimate objectives. To explore the potential usefulness of MCDA, we first review restoration practices and define the characteristics of projects that are good candidates for MCDA. We also present two case studies. The first study is a prioritization of stream reaches for restoration that illustrates how value judgments can affect such decisions. The second study addresses the proposed removal of the Ballville Dam on the Sandusky River in Ohio. An important challenge in the dam removal decision is the linking of habitat improvements to changes in species populations and ecological services that people value. The analysis shows how MCDA can assist decision making by clarifying tradeoffs, in this case by showing that the key issues are conflicts among ecological criteria—not all of which are improved by restoration.     

A Framework for the Examination of Relational Ethics: An Interactionist Perspective

Despite the widespread agreement that the ontology of the marketing discipline is exchange, marketing ethics researchers have largely adopted a monadic viewpoint of ethical decision making. In this research, an interactionist approach is adopted in order to introduce a dyadic perspective of un/ethical decision making. The dyadic model includes each channel member's individual, situational and decision process factors linked by relationalism, an emerging paradigm in marketing channels. Relationalism is represented as a discriminating variable between perceived ethical dilemma and decision behaviour. Finally, a number of theoretical propositions are presented and future research directions are discussed.     

Using Behavioral Experiments to Expand Our Horizons and Deepen Our Understanding of Logistics and Supply Chain Decision Making

As logistics and supply chain managers face increasingly complex challenges, there is a critical need to better understand the nuances of decision making in today’s global business environment. However, the systematic effect of behavioral biases and cognitive limits on managerial judgment and decision making in our discipline has not received much attention to date. Behavioral experiments represent a potentially valuable and currently underutilized approach for gaining insight into logistics and supply chain decision making that is commonly characterized by departures from rational thought. This article challenges logistics and supply chain researchers to consider the opportunities and realities associated with using behavioral experiments in pursuit of knowledge in this area.     

Moral Development in Business Ethics: An Examination and Critique

The field of behavioral ethics has seen considerable growth over the last few decades. One of the most significant concerns facing this interdisciplinary field of research is the moral judgment-action gap. The moral judgment-action gap is the inconsistency people display when they know what is right but do what they know is wrong. Much of the research in the field of behavioral ethics is based on (or in response to) early work in moral psychology and American psychologist Lawrence Kohlberg’s foundational cognitive model of moral development. However, Kohlberg’s model of moral development lacks a compelling explanation for the judgment-action gap. Yet, it continues to influence theory, research, teaching, and practice in business ethics today. As such, this paper presents a critical review and analysis of the pertinent literature. This paper also reviews modern theories of ethical decision making in business ethics. Gaps in our current understanding and directions for future research in behavioral business ethics are presented. By providing this important theoretical background information, targeted critical analysis, and directions for future research, this paper assists management scholars as they begin to seek a more unified approach, develop newer models of ethical decision making, and conduct business ethics research that examines the moral judgment-action gap.

     

The impact of the amount of available information on decision delay: The role of common features

In two studies, we show that features shared by products (common features) do not cancel out during the decision-making process but in fact are consequential as they decrease desire for delay in decision making. In study 1, we show that as the amount of available information about product features increases, decision delay decreases in spite of the additional information being identical across the products. Further, we also find that this effect is partially mediated by information adequacy. In study 2, we show that despite the overall difficulty of making decisions under avoidance?Cavoidance versus approach?Capproach conflict, an increase in common features decreases decision delay under both conflict conditions.     

Reconceptualizing Intuition in Supply Chain Management

Studies in the psychology and management disciplines suggest that intuition might be able to complement rationality as an effective decision‐making approach. Yet, a review of how decision makers in supply chain contexts can benefit from using their intuition demonstrates that our discipline lacks a unifying conceptualization and operationalization of the complex intuition construct. Our study addresses this opportunity by following an extensive mixed‐method approach, in which we first use qualitative content analysis and quantitative testing to conceptualize intuition as a multidimensional construct consisting of experience‐based, emotional, and automatic‐processing dimensions. We then operationalize and empirically assess multidimensionality using a multiple study format, and perform an inferential analysis to begin to assess nomological validity. Our reconceptualization of intuition allows for a richer understanding of this key facet of supply chain management decision making, and our accompanying scale provides evidence of its multidimensionality and efficacy in making decisions in the uncertain and time‐constrained environments that supply chain managers often face.     

The Spirit of Entrepreneurship and the Qualities of Moral Decision Making: Toward A Unifying Framework

At the heart of entrepreneurship are imagination, creativity, novelty, and sensitivity. It takes these qualities to develop a new product or service and bring it to market, to envision the possible impacts a new product may make and come up with novel and creative solutions to problems that may arise. These qualities go to make up what could be called the spirit of entrepreneurship, a spirit that involves the ability to handle the experimental nature of entrepreunerial activity. These same qualities are crucial for moral decision making, and an ethical approach which emphasizes imagination, creativity, and has an experimental thrust is much better adapted to the entrepreneurial activity and much more relevant to the unique situations that entrepreneurs face. In this sense, the process approach to ethics developed in this article is a unifying framework that brings together the activity of entrepreneurship and moral decision making.     

A Calibrated Group Decision Process

In practice most organisational decisions are made by groups that bring into the problem multiple perspectives, both complementary and contradictory. When having a group of decision makers, usually individuals’ preferences are either led to consensus or are aggregated with the use of some function like the median, the arithmetic or geometric mean. We focus in the second case, where individual’s preferences need to be aggregated. Our approach is based on the fact that when two decision makers are asked to give their preference between a pair of criteria using a specific scale, it is possible that they will give slightly different answers, even when they actually have the same opinion. This difference will not affect the case of a single decision maker, as it will be consistent throughout the whole process. However, it can affect a group decision when the values will be used as an input for the aggregation function. A novel approach is presented that enhances group decision making through a group calibration process. The proposed process adjusts individuals’ preferences based on their answers on a set of standardized questions prior to the aggregation phase. The method focuses The whole concept is applied to the group analytical network process method and it is illustrated through a telecommunications project case. The decision under examination concerns the selection of the right place for deploying a new telecom service of a multinational-based telecommunications company where a group of geographically dispersed decision makers form an ad-hoc virtual team in order to select the location for a new technical support centre.