Managerial Decison Making CEO

MANAGERIAL DECISION MAKING Name: University: Course: Tutor: Date 1. Recently, the American International Group (AIG), a global insurance and financial services organization, accepted billions of dollars from the United States Government in order to remain solvent and in operation. After receiving this money, the organization decided to pay over $160 million in bonuses. Discuss the ethical problems associated with this decision. Could in-group favoritism play a role in this decision? If you were the CEO, what decision would you have made? This managerial decision has ethical problems associated with it. When making any critical managerial decision, it involves the ability to be fair and open-minded; therefore, it is necessary to assess the reasons for and against any decision made. This managerial decision led to ethical failures when dealing in the company. This has resulted to violations of morally accepted rules and standards to maintain trust within the organization. The emergence of this scandal at AIG makes people more concerned about the emergence of unethical and irresponsible behaviors in companies. The managerial decision made by the manager is, therefore, morally unacceptable and business practices should change (Bazerman & Moore, 2009). As the CEO of the organization, a combination of moral reasoning based on rights, utility, and justice should be applied when a moral conflict arises when running a company. Several factors need to be put into consideration when making a managerial decision. The rights of the whole group of people in the company have been overrun by the decision by the manager. This signified that the decision did not treat all people fairly. Therefore, as the CEO, my managerial decision would be based on principle of rights for all, utility, justice and care for all people. Reasoning from moral principles, therefore, would help resolving organizational conflicts that would lower the organizational performance in future. Therefore, ethical leaders and managers should make decisions based on the core principles mentioned in order to determine what is right or wrong (Bazerman & Moore, 2009). 2. Discuss the Decatur School Board's decision to adopt a "no tolerance on school violence" in terms of fairness. How did implicit attitudes, perhaps, influence the school board's decision to punish such a disproportionate number of African-American students? No tolerance on school punishment and zero tolerance have continued to be a widely used response towards schools violence and disruptions. In 1999, Decatur School found out that an intense brawl happened between students involved in a rival gang. Owing to this rumor, Decatur School Board accepted a no tolerance on school violence in terms of fairness. This punishment in school sends a signal that the schools never condone any violent behaviors and once violence happens, fair punishment is given to the culprits. The board made a decision that the black culprits get a two-year expulsion from the school (Bazerman & Moore, 2009). No tolerance on school violence in terms of fairness increases the intensity of consequences for all the offenders in the school and all other public schools. The schools ...