Evaluate managerial decision-making tools using different ethical theories .
Evaluate managerial decision-making
tools using different ethical theories
Since the order does not specify which tools or ethical theories, I will go with the standard array of most texts. Please let me know if I can add anything.
Three are relevant for managerial accounting:
Strategic position analysis: this is a quantitative method that deals with how the firm competes with others and advances market share.
Cost driver analysis: this is another quantitative method dealing with cost control.
Value chain analysis: this is more complicated, since it deals with the entire mode of production, from raw materials in the ground to the item on the shelf.
For managerial operations:
Operations research (a broad category): This deals with how the functional units of the firm interact and where interaction shows weakness or lack of coordination.
Life-cycle systems engineering: This deals with certain products that have limited life cycles, that is, that eventually wear out or become obsolete.
Systems dynamics: This is almost identical to operations research, except it has to do with the product rather than the firm. It's about how the technology, labor and management all come together to produce an object of value.
Optimization: This is less quantitative, since it deals with the best "fit" (concerning any decision) for a given product, a given amount of capital, etc. It must take context into account.
Now, these may be more technical than what you are studying. Most of these can be reduced to general decision making concepts:
The three main categories are:
Psychological approaches: managers base derisions on their own self-image, or what they think they need to succeed. This is very subjective and has everything to do with personal style and experience.
Cognitive approaches: This is a more logical method that takes all relevant variables into account and comes up with the most logical solution. Think of Mr. Spock here.
Normative approaches: This just means that ethical goals are one of the variables that you place in your decision model. It deals both with intentions and results. It deals with categories such as good and bad, just as much as more quantitative variables such as cost or efficiency.
What of ethics?
The quantitative methods all believe that they are ethic-less, but of course, they are wrong. What are the ethical ...
The managerial decision-making tools and ethical theories are examined.