BUS272 TB

for Economic Co-operation and Development (OECD) entered into an agreement to
tackle corporate bribery in 1997. However, a 2011 study by Berlin-based Transparency
International found that 21 of the OECD countries are “doing little or nothing” to
enforce the agreement. Canada came under strong criticism for being “the only G7
country in the little or no enforcement category.” The United States and Germany rated
highest on number of cases filed. Transparency International noted that Canada needed
to enforce more of its laws in this area. 118
Chapter 12 Decision Making, Creativity, and Ethics 439
S u m m a r y
An understanding of the way people make decisions can help us explain and predict
behaviour, but few important decisions are simple or unambiguous enough for the
rational decision-making model’s assumptions to apply. We find individuals looking for
solutions that satisfice rather than optimize, injecting biases into the decision process,
and relying on intuition. Managers should encourage creativity in employees and teams
to create a route to innovative decision-making. Individuals are more likely to make
ethical decisions when the culture in which they work supports ethical decision making.
SNAPSHOT SUMMARY
How Should Decisions Be
Made?
• The Rational Decision-
Making Process
How Do Individuals
Actually Make Decisions?
• Bounded Rationality in
Considering Alternatives
• Intuition
• Judgment Shortcuts
Group Decision Making
• Groups vs. the Individual
• Groupthink and Groupshift
• Group Decision-Making
Techniques
Creativity in
Organizational Decision
Making
• Creative Behaviour
• Causes of Creative Behaviour
• Creative Outcomes
(Innovation)
What About Ethics in
Decision Making?
• Four Ethical Decision Criteria
• Making Ethical Decisions
Corporate Social
Responsibility
LESSONS LEARNED
• Individuals often short-cut the
decision-making process and
do not consider all options.
• Intuition leads to better
results when supplemented
with evidence and good
judgment.
• Exceptional creativity is rare,
but expertise in a subject
and a creative environment
encourage novel and useful
creative outcomes.
MyManagementLab
Study, practise, and explore real business situations with these helpful resources:
• Study Plan: Check your understanding of chapter concepts with self-study quizzes.
• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to
test your knowledge and master management concepts.
• Videos: Learn more about the management practices and strategies of real
companies.
P I A PERSONAL
INVENTORY
• Simulations: Practise management decision-making in simulated business environments.
ASSESSMENT