Principled vs Utilitarian Decision-Making

5/7/2013–This week I was faced with two decisions which could have had especially significant effects on my team.

First, a guest had had too much to drink and ordered another from me. I chose to cut him off, even though he told me he lived just across the street and didn’t have to drive. I explained our practice of keeping people safe, which he understood. Then he left and drove home. I could’ve made the decision to let him have one more drink, since he probably would’ve been fine and happy, we would’ve made money, and he might’ve become a nice regular for the bartenders. In other words, the utility of deciding to serve him would’ve outweighed the utility of  cutting him off. But I chose to follow the principle that if you’ve had that many drinks  and your behavior has changed, I will cut you off.

The bigger decision I was faced with was how to handle him telling me that a server took a shot while no one was looking. Compounded by the fact that it was perhaps our best server, we’re left with the duty to make a decision based on principle or utility. They are different because our principle would surely state that intending to steal and drinking secretly while working are both grounds for termination. Alternatively, utility would conclude that this guy brings more to the table than one stolen shot takes away. His availability, work ethic, guest interaction, and leadership are all great. One shot wouldn’t affect any of that and one might argue it might make him friendlier with guests! Utility also wins when you consider the likelihood that he’ll never do it again after being caught by a guest. Not to mention, the immediate unavoidable cost of replacing him. So it would be hard to argue that even the long-term utility of making the “principled” decision outweighs any length of time after the “utility” decision. Conversely, I don’t think humans are capable of immediately judging the long-term utility of “utility”-based decisions.

I conclude that the choice should be made based on one’s intuitive preference and tendency. I tend to follow a principled discipline, and as such would be an inefficient “utility”-based decider. However, I accept that other managers may be more predisposed to analyzing pros and cons to arrive at decisions of maximum immediate utility. Only at the end of a career will one know which path was/would’ve been most effective.

10/24/2017 review: As with all of the journal entries I’ve reviewed so far, I vividly remember most of this situation. I know exactly how I felt cutting off the guest who’d had too much too drink–it was a Sunday brunch, too, another data-point in coming to a decision. The server, though, I don’t remember in detail. I’m not sure who it was, and I’m not totally sure if I decided to fire him or not (I’m pretty sure I did–which I would hope!). I’ve since learned that principle-based decision-making is probably the best tool for a professional to learn early in his or her career. The effective company relies on a great hiring process to hire people with good judgment, then communicates the principles on which the company is founded. That equips the employees to develop their judgment further by making principled decisions within the unique environment of the company. Over time, employees develop valuable abilities to operate autonomously while upholding the intent of those who chose what principles should be followed initially.