There are 5 tools of decision making that must be used while making decisions in business. These tools can make your decisions more accurate and efficient.
1)The Utilitarian approach in business: This approach tells you about which option will give more benefit to a company and less harm. You will make decision while keeping in mind the most suitable option which leads to more profit and less loss to the stakeholders and also the members in a company. In a business, this approach describes the decision that leads to best results through maximization of utility and minimization of negative. This approach focuses on the benefit to greater number of people.
2)The Right approach in business: This approach protects the moral rights of the people who are affected. It is important to take a best decision but also giving rights to the people. It focuses on the respect to human dignity. Every person has a right to lead a life they want so the right approach provides right to all the people which are at stake in your decision .In a company, if a manager is making a decision then he should respect rights of all the members in company.
3)The justice approach in business: This approach focuses on treating people equally regardless of their country,color,sex, caste or others. In a company, if a manager is treating each employee equally then he will develop good relationship with each employee which can lead to good environment in a company. Forex: if an employee is getting any award in a company that is solely because of his performance in a company. This law implements fairness in a business.
4)The common good approach in business: This approach focuses on the moral principles which are found in society. In a business, this approach accesses the decisions which will beneficial for theentire company rather than a group of people. It provides overall picture of the environment.
5)The Virtue approach in business: This approach focuses on what type of person I want to be. In a business perspective, stakeholders expect the qualities such as honesty, fairness, tenderness, compassion, openness, transparency that is mix of moral and non-moral excellences. These are the quality traits that builds the trust for the business and leaders.