Leadership
The ability or authority to guide and direct others toward a goal.
Ethical leadership
Creates an ethical culture. Significant impact on ethical decision making because leaders have the power to motivate others and enforce the organization's norms, policies, and viewpoints.
Ethical leadership has a __________ relationship with the organizational citizenship of employees and a _______ relationship with deviance, or misconduct.
positive, negative
Also an important leadership component to a firm:
Board of directors
Ethical leadership is not limited to management or board members.
The actions of co-workers profoundly impacts the ethical decisions of employees.
Many CEO's articulate the firm's core values but
fail to exhibit ethical leadership.
How do ethical leadership skills develop?
Through years of training, experience, and learning other best practices of leadership.
Requirements that make a "good" leader:
1. Model organizational values
2. Place what is best for the organization over their interests
3. Train and develop employees throughout their careers
4. Establish reporting mechanisms
5. Understand employee values and perceptions
6. Recognize the limits
Ethical leaders ______ operate in a _______ of decision making.
never, silo
What do ethical leaders encourage and emphasize to employees?
To reach their full potential and emphasize their role as important co-creators of value.
Systemic
Everything is connected.
It is believed that ethical leadership is based upon this type of thinking.
Holistic that embraces the complex and challenging issues companies face on a daily basis.
Seven habits of strong ethical leaders.
1. Strong personal character.
2. A passion to do right. The glue that holds the ethical concepts.
3. Proactive
4. Consider all stakeholder's interests. Balance approach.
5. Role models for the organizational values.
6. Transparent and actively involved in
Strong ethical leaders are those __________ about the organization and act in the organization's ______ interests.
passionate, best
By promoting shared values, leaders are able to align employees behind a ___________.
common vision
Ethical leadership is highly unlikely without a ___________.
strong personal character
Thomas I. White
The ability to resolve the complex ethical dilemmas encountered in a corporate culture requires intellectual skills.
A fundamental problem in traditional character development is that _________________.
specific values and virtues are used to teach a belief or philosophy. This becomes muddled in a business environment where cultural diversity, privacy, and the profit motive must be respected.
Teaching individuals who want to do the right thing regarding corporate values and ethical codes, and equipping these individuals with _________________.
intellectual skills to address the complexities of business decisions with ethical/unethical results, is the correct approach.
Whole Foods
An example of the integrity-based approach.
Ethical leaders generally adopt one of two approaches to leadership:
1. Compliance-based approach
2. Integrity-based approach
Compliance-based approach
Emphasize obedience to rules and regulations and sets processes in place to ensure compliance.
Integrity-based approach
Views ethics as an opportunity to implement core values.
Leaders who adopt an integrity-based approach ______.
take responsibility for the firm's ethical culture and hold employees accountable for practicing ethical behaviors and core practices.
Classes of leaders:
1. Unethical
2. Apathetic
3. Ethical
Unethical leaders
Usually ego-centric and often does whatever it takes to achieve the organization's objectives and his/her own. Example: Alfred Taubman, Sotheby's--price fixing.
Psychopathic leader
Another type of unethical leader. Superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoy flouting the rules.
Apathetic leaders
Not necessarily unethical, but care little for ethics within the company. Does not listen to employees and does not communicate well. Profit driven. Example: Tony Hayward, BP CEO--oil spill in the Gulf of Mexico.
Ethical leader view ______________ as an important resource.
employee calloboration.
Ethical conflicts
Occur when there are two or more positions on an ethical decision.
Ethical decision making does not occur unless an ___________ is identified and needs to be resolved.
ethical issue
While leaders cannot totally avoid ethical conflict, they can maintain an ethical corporate culture through appropriate _____________-
conflict management.
Ethical conflict issues will not be brought to management's attention without ____________.
effective mechanisms for transparent communication.
In addition to managers who else should be trained to handle conflict situations?
employees
Conflict management 5 styles
1. Competing
2. Avoiding
3. Accommodating
4. Collaborating
5. Compromising
The 5 conflict management styles are based on two dimensions:
1. Assertiveness
2. Cooperativeness
Competing
Upper left quadrant. Leaders are highly assertive and not very cooperative. Believe in winning at all costts and measure success by how much the other side loses. Ex. Al Dunlap (Chainsaw Al), former CEO of Sunbeam, -- fired thousands of employees. Good wh
Avoiding
Lower left quadrant. Not effective because they avoid conflict at any costs--even if i leads to misconduct. Uncooperative and non-assertive. Ken Lay and Jeff Skilling, Enron--aggressive in terms of managing operations of the business but were unethically
Accommodating
Lower right quadrant. Leaders are highly cooperative but non-assertive. Give in to the other side even it means sacrificing their own interests and values.
Compromising
Middle. Leaders are in between the assertiveness and cooperativeness dimensions. They believe the best approach is for each side to give up something in order to gain something of value.
Collaborating
Upper right quadrant. Most advantageous. Leaders are cooperative and assertive. Rather than compromising, they collaborate with others to find a creative way to obtain a beneficial solution. Desire to meet the needs of stakeholders.
Effective leaders use ____________ styles depending upon the situation.
different
Ethical leaders should have the ability to ________.
identify the conflict management styles of others.
An ethical leader must know which style of conflict management to ___________.
apply to a particular issue.
Ethical leaders must __________ employees to make ethical decisions and take _____________ for their conduct.
empower, responsibility
Essential component of a values-based organizational culutre.
Employee empowerment
Values-based culture
Encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts.
Ethical training for employees should include
decision making, teamwork, and conflict resolution skills.
Managers should be trained
how to create a participative organization culture that encourages employees to engage in ethical decision making.
Employee empowerment is important in creating _____________ ethical leadership.
employee-centered.
A firm's ethical culture relies not simply on documents such as a code of ethics, but on
how employees embody the principles of integrity that the organization's values.
Two major dimensions of ethical leadership communication:
1. transparency
2. reporting
Transparency
A culture where ethics is frequently discussed.
Reporting
A two-way process in which the communicator communicates with superiors and subordinates.
Communication for becoming a better leader
1. Touch conversations
2. Listen more.
3. Speak to people face-to-face
4. Communicate bad news with the same zest as good news.
5. Performance feedback regularly.
6. Purposeful and thoughtful communication
7. Feedback to improve self.
8. Work on blind spo
4 categories of communication
1. Interpersonal
2. Small group
3. Nonverbal
4. Listening
Interpersonal
Most well-known form of communication and occurs when two or more people interact with one another.
An important way to maintain ethical interpersonal communication
Appreciating the dignity of another person even during disciplinary procedures.
Good approaches to ethical interpersonal communication
Collaboration and accessing the issue.
Small group communication
Growing. Increase collaboration and generate a variety of different perspectives and opinions on a particular issue.
Disadvantages of small group communication:
Engaging in repetitive or routine decision making can cause small groups to overlook certain ethical issues. Groupthink and group polarization are negative side effects.
Groupthink
Occurs when one or more group members feels pressured to conform to the group's decision even if they personally disagree.
Group polarization
The fact that a group is more likely to move toward a more extreme position than the group members might have done individually.
Ways to avoid groupthink:
1. Each team member is a critical evaluator.
2. Eliminate leadership bias.
3. Set up a number of independent groups to work on the same issue.
4. Express ideas outside the group.
5. Examine alternatives.
6. Outside experts
7. Devil's advocate.
Nonverbal communication makes up _________ of the communication process.
half
Nonverbal cues are ____________ than what he or she states verbally.
deemed more reliable
Listening involves
paying attention to both verbal and nonverbal behavior.
Ethical leaders developing good listening skills tend to
establish credibility and trustworthiness with employees.
Leader-follower congruence
Occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company.
Leader-exchange theory
Claims that leaders form unique relationships with followers through social interactions.
Socially isolated leaders
Will have a tenuous relationship because employees are left to make their own decisions.
Ethical training
Another important way values are communicated.
Ethical leaders can mitigate power differences through ___________
frequent communication with workers.
Organizational politics
Often perceived as trying to achieve one's own ends even if it means harming others int eh organization.
Political skills
Can be used to promote organizational goals and help rather than hinder other employees.
Employee feedback can be generated in many different ways:
Interviews, anonymous surveys, ethical audits, and websites.
Emotional intelligence
Manger self and others. Skilled in self-awareness, self-control, and relationship building.
6 leadership styles based on emotional intelligence identified by Daniel Goleman:
1. Coercive leader
2. Authoritative leader
3. Affective leader
4. Democratic leader
5. Pacesetting leader
6. Coaching leader
Coercive leader
Demands instantaneous obedience and focuses on achievement, initiative, and self-control. Effective during crisis or turnaround.
Authoritative leader
One of the most effective. Inspires employees to follow a vision, facilitate change, and creates a strong positive performance climate. Constant state of stress-good stress
Affiliative leader
Values people, their emotions, and their needs and relies on friendships and trust to promote flexibility, innovation and risk taking.
Democratic leader
Relies on participation and teamwork. Focuses on communication and creates a positive climate for achieving results.
Pacesetting leader
Can create a negative climate because of the high standard that he or she sets. 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.
Transactional leaders
Attempt to create employee satisfaction through negotiating or bartering for desired behaviors or levels of performance. Best suited for rapidly changing situations, including those that require responses to ethical problems or issues.
Transformational leaders
Strive to raise employees level of commitment and foster trust and motivation. Sense of mission. Trust. Radical changes to company -- Howard Schultz and Steve Jobs
Authentic leaders
Passionate about the company. Live out corporate values daily. Sam Walton
RADAR
When ethical misconduct or issues arise.
R - recognize
A - avoid
D - discover
A - answer
R - recover
Recovery involves a 4 step process
1. Take correction action
2. Compensate stakeholders harmed by the misconduct
3. Express regret for the misconduct
4. Reinforce the firm's reputation with positive messages
Ethical conflicts occur
when there are two or more positions on an ethical decision.