Chapter 11 Ethical Leadership

Leadership

the ability or authority to guide and direct others toward a goal (our text)
The process of influencing a group toward the achievement of goals

Ethical Leadership

Creates ethical culture

Compliance-based approach

emphasizes obedience to rules and regulations and sets processes in place to ensure obedience. Deters illegal conduct and stresses a culture of avoidance

Integrity based approach

views ethics as an opportunity to implement core values. Leaders take responsibility for the firm's ethical culture and hold employees accountable for practicing ethical behaviors and core practices.

Unethical Leaders

usually ego-centric and often do whatever it takes to achieve the organization's objectives and their own. looks at laws as guidelines to be fitted to the goals of the firm. They perceive ethics codes, compliance regulations, and industry standards as opt

Apathetic Leaders

not necessarily unethical, but they care little for ethics within the company. Does not listen to employees and does not communicate well. display no passion for the firm or the mission of the organization.

Ethical leaders

include ethics at every operational level and stage of the decision making process. They must model the ethical values they promote. Ethical leadership is a requirement for building a culture where ethical decisions occur daily

Ethical conflicts

occur when there are two or more positions on an ethical decision. They help pinpoint ethical issues. These will not be brought to management's attention without effective mechanisms for transparent communication. Employees should be trained to handle the

Assertiveness

acting in one's own best interests

Cooperativeness

means working toward the best interests of the other person

Competing

Highly assertive, not very cooperative, believe in winning at any cost, and measure success by how much the other side loses. Less likely to consider the concerns of employees and other stakeholders. More power oriented and even narcissitic

Avoiding

Not effective because they avoid conflict at any cost even if it leads to misconduct, are uncooperative, and are non-assertive

Accommodating

Highly cooperative, non-assertive, and give in to the other side even if it means sacrificing their own interests and values

Compromising

In between the assertiveness and cooperativeness dimensions, believe best approach to resolving conflicts is for each side to give something up in order to gain something of value. Likely experience less commitment since each gave something up

Collaborating

Most advantageous, leaders are cooperative and assertive, and leaders collaborate with others to find a creative way to obtain a beneficial solution. Strongly adhere to organizational values and principles and meet the needs of stock holders

Interpersonal communication

the most well-known form of communication and occurs when two or more people interact with one another. Provides an intimate opportunity for the ethical leader to receive or dispense information. Provides an opportunity to coach employees when potential e

Small group communication

Can increase collaboration and generate a variety of difficult perspectives and opinions on a particular issue. Engaging in repetitive or routine decision making can cause small groups to overlook certain ethical issues.

Groupthink

occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree

Group polarization

refers to the fact that a group is more likely to move toward a more extreme position than the group members might have done individually

Nonverbal communication

is communication expressed through actions, body language, expressions, or other forms of communication not written or oral. Makes up 1/2 of the communication process. More reliable than what is stated verbally

Paralanguage

the way we talk, such as volume, inflection, tone, and rhythm. Provides important indicators of the person's emotional status.

Listening

involves paying attention to both verbal and nonverbal behavior. Without________ from both parties, communication becomes ineffective
Leaders that do this establish credibility and trustworthiness with employees. Just as important as speaking.

Leader follower congruence

occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company. Shared values and work toward goals for the organization

Leader Exchange Theory

leaders form unique relationships with followers through social interactions

Organizational Politics

perceived as trying to achieve one's own ends even if it means harming others in the organization. Gossip, Manipulation, playing favorites, and taking credit for another's work are all examples commonly associated with workplace politics

Feedback

can occur through informal methods like a simple conversation or through more formal systems such as employee performance evaluations.

Negative Feedback

difficult to convey, important to inform employees of weaknesses and provide constructive ways for improving them.

emotional intelligence

The most effective ethical leaders possess the ability to manage themselves and their relationships with others effectively. Skilled in self-awareness, self-control, and relationship building

Coercive leader

demands instantaneous obedience and focuses on achievement, initiative, and self control. Very effective during times of crisis or during a turnaround, but otherwise creates a negative climate for organizational performance

Authoritative leader

one of the most effective styles where leaders inspire employees to follow a vision, facilitate change, and create a strong positive performance environment

Affiliative leader

values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking

Democratic leader

relies on participation and teamwork to reach collaborative decisions. Focuses on communication and creates a positive climate for achieving results

Pacesetting leader

can create a negative climate because of high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take the initiative

Coaching leader

builds a positive climate by developing skills to foster long term success, delegating responsibility, and skillfully issuing challenging assignments

Resonant Leaders

demonstrate mindfulness of themselves and their own emotions, a belief that goals can be met, and a caring attitude toward others within the organization

Transactional leaders

attempt to create employee satisfaction through negotiating, or "bartering," for desired behaviors or levels of performance. They focus on ensuring required conduct and procedures are implemented. Is best suited for rapidly changing situations, including

Transformational leaders

strive to raise employees' level of commitment and foster trust and motivation. Communicate a sense of mission, stimulate new ways of thinking, and enhance as well as generate new learning experiences

Authentic leaders

are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders. They do not mimic other leaders, but they do learn from them

Corporate Psychopath

superficial charm, no conscience, grandiose self worth, little or no empathy, and enjoy flouting the rules

Employee Empowerment

an essential component of a values based organizational culture that encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts

Transparency

developing a culture where ethics is frequently discussed. Openness and leader accessibility are important in addressing and resolving ethical issues. Do in private as if it were always public

Reporting

Two way process in which the communicator communicates with superiors and subordinates

Formal Reporting

Happens in environments such as meetings and conferences

Informal reporting

occurs when leaders interact among employees, keeping them informed about company decisions, policies, and ethical expectations

Recognize Avoid Discover Answer Recover

RADAR