PAMANTASAN NG CABUYAO | ETHICS 1

ETH101- ETHICS

WEEK 3

 The three levels of moral dilemmas:

(1) individual;
(2) organizational; and
(3) structural.
 Differentiation vs Integration
 Gap vs Overlap
 Lack of Clarity vs. Lack of Creativity
 Flexibility vs. Strict Adherence to Rules
 Excessive Autonomy vs. Excessive
Interdependence
 Centralized vs. Decentralized Decision Making
 Resolving Moral Dilemmas
Objectives:
 Distinguish between individual, organizational, and structural moral
dilemmas
 Articulate what comprises a structural dilemma and understand how it
differs from individual and organizational dilemmas.
 Identify the conflicting values or principles that arise, resulting in different
levels of dilemma
 Recognize situations where ethical challenges arise in different levels of
moral dilemma
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INTRODUCTION

Everyone experiences dilemmas; however, they come at different levels. After

understanding the meaning of moral dilemmas, knowing these levels will
contribute to developing decision-making skills. Understanding the dilemmas
that people and communities experience enables a more compassionate
viewpoint and motivates people to think about how their choices may affect
others.

THREE LEVELS OF DILEMMA

Individual dilemma
It is also referred to as personal dilemma.
Personal dilemmas are those experienced and resolved on a personal level. Personal dilemmas
often involve moral or ethical considerations as individuals struggle with questions of right and
wrong, fairness, and the impact of their choices on themselves and others.

Many, if not most, moral dilemmas fall under this level because moral decisions are often made
on an individual basis.

There are numerous examples of moral dilemmas that people face. One example is when a
person makes conflicting promises. Also, a moral dilemma arises when a person must decide
between saving the lives of an unborn child and the kid's mother.

Examine one of the best-known individual dilemmas which is the Kohlberg’s dilemma.

Heinz's wife is dying of a rare form of cancer. The only known cure is a medicine a local
pharmacist recently discovered. However, the pharmacist is charging an unreasonable
price for the medicine, which Heinz cannot afford. Heinz has tried all legal means to
acquire the medicine but has not obtained the funds needed.
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Now, Heinz faces a moral dilemma: Should he steal the medicine to save his wife's life?

In the event that he did not steal the medicine, his wife would have died. He had to decide
between saving his wife and stealing the medicine. An individual is faced with a dilemma
wherein they must choose between two obligations: saving their wife or following the law.

A personal dilemma requires decisions aligned with one's values, desires, beliefs, obligations,
and convictions. As a result, when faced with a personal dilemma, a person's life, relationships,
and general well-being may be significantly impacted by their choices.

If a person faces a dilemma, some dilemmas could be encountered once people are grouped, like
in an organization. These difficulties go beyond financial concerns and may include social,
ethical, and cultural aspects.

Organizational dilemma
Organizations are social structures made up of individuals collaborating to achieve shared
objectives. Conflicts can occur when a group inside an organization's interests vary from what is
thought to be required for the organization's performance and general well-being.

The organizational dilemma involves the necessities of a social organization and member's self-
interests. There could be a conflict between group interests and organizational well-being or
between individual interests and organizational welfare.

Examples:

 Competition or department disagreements can create organizational challenges,

impacting collaboration and hindering progress.
 An organization is committed to fostering diversity and inclusion, but some employees
resist these initiatives, feeling that such efforts prioritize certain groups over others.
 Individuals may prioritize personal gains, even if engaging in unethical practices could
harm the organization's reputation.
 Individuals might resist organizational changes necessary for long-term success due to
personal preferences or fear of disrupting their routines.
 Focusing on personal achievements over teamwork can lead to a lack of collaboration,
hindering the achievement of collective organizational goals.
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Overall, through thoughtful consideration, proactive measures, and a commitment to shared

goals, organizations can transform these dilemmas into opportunities for growth and resilience
and cultivate a thriving organizational culture.

Unlike organizational dilemmas, which often focus on conflicts within a single entity, structural
moral dilemmas operate at a broader scale, involving multiple sectors and organizations.

Structural dilemma
It involves interconnected systems of institutions and organizations, where the actions of one
entity can have far-reaching consequences across the entire network.

1. Differentiation versus integration

Integration involves finding common ground and shared values across divisions, fostering a
unified organizational culture. It aims to create a sense of cohesion and alignment in practices
and goals.
Differentiation involves recognizing and respecting each division's culture's unique qualities
and characteristics. It acknowledges and allows for variations in practices, communication
styles, and organizational norms.

Furthermore, when industries give autonomy and power to their divisions and departments, the
result is differentiation, in which each section develops its own cultures and methods. It is
common among larger companies; the larger a company grows, the more differentiated it
becomes. Meanwhile, the industries undergo integration when a company brings its separate
parts together under one leader or a single mission. Although an industry with a high level of
integration may have several divisions, these are typically less independent and more closely
related.

Variations between individual preferences, work environments, and different experiences within
various groups lead to this dilemma. As a result, it is harder to coordinate with other divisions
or bring them together because each division has a distinct culture.

DIFFERENTIATION
 Advantage: It ensures that the distinct identity and strengths of each division are
preserved.
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 Disadvantage: Coordinating efforts and initiatives across divisions may become

challenging due to diverse practices.

INTEGRATION:
 Advantage: It ensures consistency in organizational practices and values, reducing
uncertainty and confusion.
 Disadvantage: It is possible that some divisions will feel that their distinct identity is lost
in favor of a more uniform strategy.
2. Gap versus Overlap
The concepts of "gap" and "overlap" in a structural dilemma typically refer to issues
related to organizational structures, roles, or responsibilities.

A "gap" in the organizational context refers to a deficiency or lack of alignment in roles,

responsibilities, or processes. It implies lacking necessary functions, communication, or
coordination.
"Overlap" occurs when there is redundancy or duplication of roles, responsibilities, or
processes within the organizational structure. It can lead to confusion and inefficiencies
as multiple entities work on similar tasks independently.

If there are gaps, organizations end up with no one taking responsibility. If there are
overlaps, things become unclear and may lead to conflict or wasted effort and
resources.

Example:
A patient in a teaching hospital called her husband to report how disturbed she is and how
sleepless she was during the night. At night, she couldn’t sleep because hospital staff kept
waking her up, often to repeat what someone else had already done.
Source: www.humancapitalreview.org/content /default.asp?Article_ID528#

In the given situation, there is an overlap of nurse duty. On the other hand, when she wanted
something, her call button rarely produced any response. It is considered a gap. There is a
gap as to who, according to the rule, is supposed to respond to the buzzer.

Roles that overlap can lead to unclear responsibility, with duties being overlooked because
people think someone else is taking care of them. While, gaps often result in communication
breakdowns, with essential information not reaching the right individuals or teams.
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Other examples:
 Two departments independently work on similar projects without knowing each
other's efforts.
 Roles within a team are poorly defined, leading to multiple team members working
on the same task without coordination.

3. Lack of Clarity versus Lack of Creativity

Lack of clarity refers to situations where information, goals, roles, or communication

within the organization are unclear or ambiguous. It can manifest in unclear directives,
undefined roles, or a lack of transparency.

Lack of creativity refers to a situation where the organization needs to generate new
ideas, innovative solutions, or creative approaches. It may arise from a culture that
suppresses creativity or a lack of encouragement for thinking outside the box.

Lack of clarity emphasizes that if employees need clarification about what to do, they often
shape their role around personal preferences instead of organizational goals, frequently
leading to problems.

If it lacks clarity, the following may be experienced:

a. It confuses team members regarding expectations, responsibilities, or organizational
objectives.
b. It implies unclear communication and goals, resulting in inefficiencies as
individuals' efforts mismatch the expected task.
c. It leads the teams to work with different interpretations of goals, leading to
misalignment.

Lack of creativity leads to challenges such as routine and repetition, resistance to change,
inability to innovate, and lack of variety in ideas.

If it lacks creativity, the following may be experienced:

a. It can result in ineffective problem-solving approaches.
b. It may lead to employee dissatisfaction and disengagement.
c. It makes processes outdated and less efficient over time.
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d. It may miss out on opportunities for growth or competitive advantage.

In summary, lacking creativity and clarity can create dilemmas for organizations in decision-
making, problem-solving, employee engagement, and cultural development.

4. Flexibility versus Strict Adherence to Rules

Flexibility refers to adapting, changing, and responding to dynamic situations,

challenges, or opportunities. It is the capacity to be versatile and adjust to different
conditions without losing focus on the end goal.

Strict adherence to rules involves a structured and rule-based approach to decision-

making and operations within an organization. It emphasizes consistency, order, and a
clear framework for actions, often to ensure compliance with regulations, standards, and
internal policies.

Flexibility is often necessary for creativity and adaptability to change, but too much or
uncontrolled flexibility can result in structural problems.

What happens if too much flexibility is observed?

a. It may lead to inconsistent decision-making processes, with varying approaches to
similar situations.
b. It may become difficult to set long-term goals and implement strategic plans, leading
to a lack of direction and focus.
c. It may result in a loss of organizational identity if there is too much flexibility without
a clear guiding framework.
d. It may become disorganized, resulting in inefficiencies, missed deadlines, and a
decline in overall effectiveness.

Strict adherence to rules becomes a structural dilemma when it hinders adaptability, stifles
creativity, and creates resistance to change within the organization.

What happens if too much adherence to the rules is observed?

a. Employees may become dissatisfied in a highly regulated and rule-bound
environment.
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b. Employees may feel discouraged from taking the initiative if strict rules bind them.
c. It may slow down decision-making processes to urgent situations or capitalize on
time-sensitive opportunities.
d. Implementing necessary changes or embracing new strategies becomes challenging
when there is a solid attachment to existing rules.

5. Excessive Autonomy versus Excessive Interdependence

Excessive autonomy refers to a situation in which people, groups, or other

organizational entities are given an unusually high degree of independence, freedom, or
decision-making authority.

Excessive interdependence occurs when members of a team, a person, or an entity

within an organization depend too much on one another to make decisions, carry out
activities, or accomplish objectives.

Although autonomy generally promotes creativity and personal empowerment, placing too
much emphasis on autonomy without appropriate limits and coordinating systems can lead
to a number of structural problems.

What problems may arise if excessive autonomy exists?

a. It may result in teams or individuals working in isolation, leading to a lack of
coordination.
b. It may duplicate work without knowledge of each other's activities.
c. It may hinder the sharing of knowledge, expertise, and innovative ideas essential for
organizational growth.
d. It may lead to inefficient utilization of resources, such as budget, workforce, and
equipment.

While interdependence is indeed a fundamental aspect of collaboration within organizations,

excessive interdependence can create a number of difficulties that may compromise the
organization's flexibility, decision-making procedures, and efficiency.

What problems may arise if excessive interdependence exists?

a. Individuals may feel constrained in making independent decisions due to the need for
approval or input from various stakeholders.
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b. Individuals may be hesitant to take the initiative without the approval or involvement
of others.
c. It can limit the flexibility of individuals or teams to respond independently to
challenges or opportunities.
d. It can be challenging for the organization to adapt quickly to changes in the external
environment.

6. Centralized versus Decentralized Decision Making

In a centralized organizational structure, decision-making authority and power are

focused among the high-level executives or a single leadership team.

In a decentralized organizational structure, decision-making authority is distributed

across various levels and divisions within the organization.

Choosing between a centralized and decentralized organization is a structural dilemma for many
organizations. It involves balancing competing priorities and considerations to determine the
most effective way to organize and manage the company.

Analyze the advantages and disadvantages of centralized versus decentralized decision making:

CENTRALIZED
ADVANTAGES DISADVANTAGES
It provides greater control and management, It lacks involvement in shaping decisions,
allowing leadership to monitor operations resulting in a loss of creativity, reduced
closely and intervene when necessary. performance, and motivation.
It allows quicker decision-making, as critical It may lead to productivity losses as
decisions can be made particularly in employees rely on information from the top to
emergencies. guide project implementation.
It has a clear and well-defined chain of It becomes difficult to respond quickly to
command, which maintains order and departmental issues, as higher-level decisions
facilitates communication. often need approval.

DECENTRALIZED
ADVANTAGES DISADVANTAGES
It empowers lower-level employees and It may result in inconsistent decision-making
managers by granting them decision-making across departments, leading to a lack of
authority, which leads to job satisfaction. standardization in operations.
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It encourages innovation and creativity, as It may lead to communication breakdowns,

decision-making is distributed across various hindering effective information sharing and
levels and divisions. coordination.
It provides opportunities for employee It may lack a unified strategy, making
development as they have responsibilities and implementing a cohesive organizational
are involved in decision-making processes. vision and mission difficult.

Finding the right balance between centralization and decentralization is crucial for optimizing
efficiency, coordination, and overall organizational effectiveness.

HOW TO SOLVE STRUCTURAL DILEMMA?

Resolving structural dilemmas in an organization requires a carefully planned systematic

approach that takes into consideration the objectives, difficulties, and particular conditions of the
organization. Here are some things that can help address various structural dilemmas:

 Engage key stakeholders in the decision-making process, including top management,

managers, and employees. Gather insights, perspectives, and feedback to ensure a more
inclusive and informed approach.
 Consider consulting with external experts or industry professionals who provide
fresh perspectives and insights. An external viewpoint can offer valuable perspectives on
structural dilemmas.
 Invest in leadership development programs to ensure leaders at all levels possess the
necessary skills to navigate and manage structural complexities. It includes decision-
making, communication, and conflict-resolution skills.
 Communicate changes transparently and consistently to all levels of the organization.
Address concerns, clarify the reasons behind structural decisions, and emphasize the
benefits for the organization and its members.
 Foster a culture that values continuous improvement. Encourage feedback, learning
from experiences, and a willingness to adapt structures based on lessons learned.

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https://corporatefinanceinstitute.com/resources/management/centralization/

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