Utilitarian Model, Moral Rights Model, Justice Model, Garbage Can Model, and Bounded Rationality - Coursework Example

Introduction Organizations for their long term success needs to take important business decisions so that they are able to develop the correct framework through which business resources can be used in the best manner. The decision making process is important at all business level and should involve the different stakeholders so that maximum gains can be achieved. Incorrect decision making or decisions taken at incorrect time can be fatal and could lead towards financial, resource and other losses for the business. This essay looks at identifying the importance of strategic decision making as it is imperative for the success of business. To analyze the manner in which decision making helps business a movie titled “Margin Call” is being analyzed and the manner in which decisions are taken at different levels is being analyzed. The paper while looking to analyze the movie “Margin Call” will look at using different theories like Utilitarian Model, Moral Rights Model, Justice Model, Garbage Can Model, and Bounded Rationality which looking to take decisions. This will thereby help to evaluate the manner in which decisions are taken and the impact it has on business performance and strategic decisions making. Decision Making Decision making is as aspect of business which involves looking into different details and based on it developing strategies at all steps. The process of decision making requires that different decisions are taken at different levels so that maximum efficiency can be gained while looking to use the different resources (Mintzberg and Waters, 1982). The movie highlighted the manner in which different level of chain in command was followed by the investment firm at all levels even including the CEO. The movie is an excellent example of bringing forward the manner in which different aspects and facets need to be considered while undergoing the process of decision making. The movie also highlights that decision making is a process which involves looking into problems, analyzing the issues and then coming up with suggestions. The process requires rigorous brain storming and looking at all minute details so that every decisions which are taken looks at improving the manner in which the different resources are used. Models of Decision Making Looking at the models which are involved in the process of decision making will bring forward the different facets and areas which is involved in the process of decision making. Utilitarian Model of Decision Making The utilitarian model of decision making states that decisions should be taken which will look at benefitting most of the people. This model states that the business decision should be directed in a manner which ensures that the society is able to benefit from the decision and the impact of the decision does minimum harm on most stakeholders (Batson, Thompson & Chen, 2002). The movie was an excellent example in the same direction as while during the process of decision making the different analysts were tempted to bring forward incorrect figures and highlight the company in the good light when actually it was performing poorly. This would mean that the business would be able to have the confidence but since the risk involved was high and there was uncertainty regarding the impact it would have on the future and even on the people who had invested in the company, the decision to highlight the company in a good light was not taken. Instead the analysts looked to bring forward the correct scenario and highlighted the manner in which the business had performed and the future decisions and steps which are being undertaken to improve the working. This had thereby ensured that the decision making process was developed on strong reasoning and the decision making process was shaped where corrective decisions were taken. Moral Rights Model of Decision Making Looking at the same from the decision making model of Moral Rights Model will provide a different perspective and direction to be looked at. This model states that the decision taken by the business should look at protecting the fundamental rights and privileges of people with regard to freedom, life, safety, privacy, free speech, and freedom of conscience (James, 2000). This requires that the basic ingredients and necessities which are the moral rights of the person should be preserved. The movie brought forward the same principles and ensured that the investment firm remained correct in their process of decision making. The different decisions which were taken at different level were taken in the interest of the society and people and steps were also taken to ensure that the decisions protected the interest of the investors. This process and rationale of decision making brings forward one important connotation and finding that the process of decision making is at times developed through a process which looks at maximizing the gains for all. This helps to protect the legal right and freedom of other people and ensures that the process of decision making doesn’t impacts the manner in which different business activities are undertaken. Justice Model of Decision Making A similar model which examines the manner in which decisions are taken in the justice model of decision making. The Justice Model for ethical decision making states that decisions should be taken which ensure that the benefits and harm is distributed evenly among the stakeholders so that no party gains at the cost of other. This requires that all the stakeholders are protected as well as provided an opportunity where the decisions taken benefit them and ensures an opportunity of growth as well (Powers & Vogel, 2010). The movie showed that decisions can be taken for all and not for individuals or benefit of the organization. The movie was an excellent example in the same direction as while during the process of decision making the different analysts were tempted to bring forward incorrect figures and highlight the company in the good light when actually it was performing poorly. This would mean that the business would be able to have the confidence but since the risk involved was high and there was uncertainty regarding the impact it would have on the future and even on the people who had invested in the company, the decision to highlight the company in a good light was not taken. Instead the analysts looked to bring forward the correct scenario and highlighted the manner in which the business had performed and the future decisions and steps which are being undertaken to improve the working (Weiner, 1976). This had thereby ensured that the decision making process was developed on strong reasoning and the decision making process was shaped where corrective decisions were taken. This brings forward an important learning that the process of decision making should be such that it involves people and at the same time ensures that the risk and returns are shared among all. This will thereby help to foster an environment through which business decisions will be taken in the most effective manner and will look at maximizing the interest of maximum parties. Garbage Can Model of Decision Making Using the garbage can model to understand the manner in which decisions are made within the organization will help to highlight the different factors which need to be considered while taking decisions. The garbage can model doesn’t look at problems and solution individually instead it looks at a stream of events and process which results in decision making. This was evident in the movie as the decisions were not taken at the top or lower level but at all levels and the decisions were taken individually (Padgett, 1980). In addition to it the different decisions which were taken were then passed on and on the culmination of the different decisions which were taken positive results were achieved. This brings forward the fact that decision making is a process which should be aimed at taking decisions at all levels and not enforcing it so that the process helps to maximize effectiveness and ensures that the mechanism of decision making is improved and better. This was evident in the movie as decisions were taken by employees at all levels which helped to bring effectiveness as the process helped to chalk out a path which needs to be followed for maximum efficiency and ensured better use of resources (Eisenhardt, 1989). This also ensured that the model of decision making was directed towards improving the manner in which decisions were taken and ensured maximum gains from it. Bounded Rationality Model of Decision Making This can even be analyzed the perspective of bounded rationality which states that since people have limited information and knowledge so decisions which are taken without a brainstorming process might not be as efficient which involves other people and brainstorming. The decision making process thereby gets limited to the different cognitive thoughts which the person has (Langley, 1989). To ensure that such things don’t happen the process of decision making needs to undergo searching options and should involve discussions so that the best option is selected. This was evident in the movie as the process looked at evaluating different options and taking decisions based on the options. This ensured that the decisions which were taken were for the betterment of all and was not directed towards a particular group of people. The process of decision making thereby looked at involving the different aspect and facets through which better decisions were taken and helped to maximize the overall gains and ensured business process was better controlled. This also helped to ensure that different options were looked at and evaluating the different measures and choosing the one which benefitted the most helped to formulate strategies through which effective decisions were taken. Conclusion The process of decision making thereby looks at evaluating the different alternatives and using different measures and methods through which effective and better decisions can be taken. The process of decision making should look at involving the different level of business process an should involve all people so that the decisions which are taken are not bounded by rationality. This will thereby tend to include the different things and will help to bring the require transformation through which different decisions are taken. The process will also help to maximize the gains and improve the overall dimensions through which different things will be analyzed and will look at taking decisions which improves the overall conditions for most. Thus, decision making as highlighted even in the movie involves different aspects and steps which need to be carefully taken care off so that the overall process of decision making provides maximum gains and ensures effective management of the different resources. References Batson, C. D., Thompson, E. R., & Chen, H (2001). Why don’t moral people act morally? Motivational considerations. Current Directions in Psychological Science, 10, 54–57 Eisenhardt, K. M. (1989). ‘Making fast strategic decisions in high-velocity environments’, Academy of Management Journal, 32, pp. 543-576 James, H. S. (2000). Reinforcing ethical decision-making through organizational structure. Journal of Business Ethics, 28, 43–58 Langley, A. (1989). ‘In search of rationality: The purposes behind the use of formal analysis in organizations’. Administrative Science Quarterly, 34, pp. 598-671 Mintzberg, H. and J. A. Waters (1982). ‘Tracking strategy in an entrepreneurial firm’. Academy of Management Journal, 25, pp. 465-499 Powers, C. W., & Vogel, D. (2000). Ethics in the education of business managers. Hasting-on-Hudson, Ethics and the Life Sciences, NY: Institute of Society Padgett, J. F. (1980). ‘Managing garbage can hierarchies’. Administrative Science Quarterly, 25, pp. 583-604 Weiner, S. S. (1976). ‘Participation, Deadlines, and Choice’. In James G. March and Johan P. Olsen, (eds.), Ambiguity and Choice in Organizations. Universitetsforlaget, Bergen, pp. 225-250 Read More