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2. 6 Chapter Leadership and Values “Leadership cannot just go along to get along… Leadership must meet the moral challenge of the day.” ~Jesse Jackson

3. Introduction • Leaders can use power for good or ill, and the leader’s personal values may be one of the most important determinants of how power is exercised or constrained. • The mere possession of power, of any kind, leads inevitably to ethical questions about how that power should and should not be used. • The challenge of leadership becomes complex when we consider how individuals of different backgrounds, cultures, and nationalities may hold quite different values yet be thrown into increasingly closer interaction. 6-3 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

4. Leadership and “Doing the Right Things” • Leaders face dilemmas that require choices between competing sets of values and priorities. • Leaders set a moral example to others that becomes the model for an entire group or organization, for good or bad. • Leaders should internalize a strong set of ethics, principles of right conduct, or a system of moral values. • Good leaders tend to align the values of their followers with those of the organization or movement. 6-4 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

5. Leadership and “Doing the Right Things” (continued) • Four qualities of leadership: • Vision • Empathy • Consistency • Integrity • Two contrasting sets of assumptions people make about human nature: • Theory X • Pessimistic view of others • Theory Y • Optimistic view of others 6-5 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

6. What Are Values? • Values are “constructs representing generalized behaviors or states of affairs that are considered by the individual to be important.” • Values play a fairly central role in one’s overall psychological makeup and can affect behavior in a variety of situations. • Individuals in the same work unit can have considerably different values. • We can only make inferences about people’s values based on their behavior. 6-6 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

7. The Relative Importance People Place on Values 6-7 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

8. How Do Values Develop? • A person’s values reflect the contributions of: • Family • Peers • Educational system • Religion • Media • Science and technology • Geography • Current events • Value programming is the extent to which forces outside the individual shape and mold personal values. 6-8 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

9. Four Generations of Workers • The pervasive influence of broad forces tend to create common value systems among people growing up at a particular time that distinguish them from people who grow up at different times. • Each generation is molded by distinctive experiences during their critical developmental periods: • The Veterans (1922-1943) • The Baby Boomers (1942-1960) • The Xers (1960-1980) • The Nexters (1980+) 6-9 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

10. Generational Values • The results of a scientific sampling of over 1,000 people living in the U.S. found little evidence of a generation gap in basic values. • Values are the result of education and experience. • Once established, it is relatively difficult to change a leader’s values. 6-10 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

11. How Values Impact Leadership • Values are a primary determinant in what data are reviewed by leaders and how they define problems. • Values often influence leader’s perceptions of individual and organizational successes as well as the manner in which these successes are achieved. • Values help leaders choose right from wrong, and between ethical and unethical behavior. 6-11 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

12. How Values Impact Leadership (continued) • Leaders tend to like followers with similar values and dislike those with dissimilar values. • It is important for leaders to surround themselves with followers who possess divergent values. • Leaders are motivated to act in ways consistent with their values, and they typically spend most of their time engaged in activities that are consistent with their values. 6-12 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

13. Key Work Values 6-13 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

14. Leadership and Organizational Values • Organizational values represent the principals by which employees are to get work done and treat other employees, customers, and vendors. • The top leadership’s collective values play a significant role in determining organizational culture. • Research has shown that employees with values similar to the organization or team are more satisfied and likely to stay; those with dissimilar values are more likely to leave. 6-14 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

15. Leadership and Organizational Values (continued) • It is vital for a leader to set a personal example of values-based leadership to make sure that clear values guide everyone’s behavior in the organization. • If there is indifference or hypocrisy toward values at the highest levels, then it is fairly unlikely that principled behavior will be considered important by others throughout the organization. “It’s important that people know what you stand for. It’s equally important that they know what you won’t stand for.” ~Mary Waldrop 6-15 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

16. Principle-Centered Leadership • The principle-centered approach postulates a fundamental interdependence between the unique roles of each level: • Personal • Interpersonal • Managerial • Organizational 6-16 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

17. When Good People Do Bad Things • Several ways people with firm moral principles may behave badly without feeling guilt or remorse: • Moral justification • Euphemistic labeling • Advantageous comparison • Displacement of responsibility • Diffusion of responsibility • Disregard or distortion of consequences • Dehumanization • Attribution of blame • Darley’s Law 6-17 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

18. What is Culture? • Culture refers to those learned behaviors characterizing the total way of life of members within any given society. • The most salient aspect of any culture typically involves behavior. • Behavior is the distinctive actions, mannerisms, and gestures characteristic of a culture. • Business leaders must become aware and respectful of cultural differences and cultural perspectives. 6-18 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

19. A Framework for Understanding Cultural Differences • Seven fundamental dilemmas that people of all cultures face: • Source of Identity: Individual – Collective • Goals and Means of Achievement: Tough – Tender • Orientation to Authority: Equal – Unequal • Response to Ambiguity: Dynamic – Stable • Means of Knowledge Acquisition: Active – Reflective • Perspective on Time: Scarce – Plentiful • Outlook on Life: Doing - Being 6-19 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

20. Leader Attributes and Behaviors Universally Viewed as Positive 6-20 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

21. Leader Attributes and Behaviors Universally Viewed as Negative 6-21 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

22. Implications of Leadership Practitioners • Leadership practitioners should expect to face a variety of challenges to their own system of ethics, values, or attitudes during their careers. • Interacting with individuals and groups holding divergent and conflicting values is inevitable. • Leaders in particular have a responsibility not to let their own personal values interfere with professional leader-subordinate relationships. 6-22 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

23. Summary • Values are constructs that represent general sets of behavior or states of affairs that individuals consider to be important, and they are a central part of a leader’s psychological makeup. • Values impact leadership through a cultural context within which various attributes and behaviors are regarded differentially - positively or negatively. 6-23 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.