In: Finance
Outline and detail the decision making model of your choice (300 words)
Choose AAA model and explain this model. How We understand this model.
The AAA model: 7 step ethical decision making model
Ans.1.Decision making is the selection of appropriate course of action among many alternatives. To understand this, I will explain the Rational or Classical based decision making model in a deliberate manner:
Rational/ Classical Based Decision Making Model: In this model, we can take decision with clearly defined goals and objectives with no hindrances. We can anticipate the problem and made an appropriate course of action to remove the problem. This type of decision making model have no risk and uncertainity. It can build a consensus among members to agree on terms and conditions. we can find out best course of action to achieve desired results. we can also examine the present and anticipate the future.
Crticism: This model has face many criticism because this decision making model is failed in complex and uncertain situation. it does not help in everytime.
Ans.2. American Association Model: This is American Association Modal used in ethics for taking decision making. It is designed a series of questions in which decision will be made. I will explain the 7-steps in american association model.
Step.1. What are the fact of these cases: In this steps, we have to understand the facts and figures, so that we are able to start the decision making process.
Step.2. What are the ethical issues in these cases: In this steps, we have to find out ethical issues in that case. we should know that what was happen in that situation.
A.) Primary Stakeholders: Shareholders, Government, Customers, Employees, Management etc
Ethical Issues: It is a situation we have to choose one option between Right or Wrong.
Step.3. What are the norms, principle and value related to these cases: In this steps, we have to find out appropriate norms, principles, values associated with this case.
Step.4. What are the alernative course of action: In this steps, stakeholders creates a various alternatives course of action.
Step.5. Selection of best alternative of action: In this steps, we have decided a selection of best alternative course of action which is consisitent with values and norms.
Step.6. Consequences of choosen alternative of action: In this steps, we have to examine and understand the implications of choosen alternative course of action.
Step.7.Decision: In this steps, we have to take decision.
I hope that this answer is helpful to you.