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  1. Leadership Chapter 14 – Leadership Ethics

  2. The Smartest Guys in the Room (2004) • McLean and Elkind • The tale of Enron is a story of human weakness, of hubris and greed and rampant self-delusion; of ambition run amok; of a grand experiment in the deregulated world; of a business model that didn’t’ work; and of smart people who believed their next gamble could cover up their last disaster—and who couldn’t admit they were wrong”.

  3. Overview Preamble Leadership Ethics Perspective Ethical Theories Principles of Ethical Leadership Diverse Ethical Perspectives How Does the Leadership Ethical Perspective Work?

  4. We Applaud Athletic Perfection! • Seek to train/execute a skill to its highest level • We Pursue Academic Excellence! • Engage in the rigorous pursuit of truth & knowledge (“higher learning”). • Yet settle for Moral Mediocrity! • Homogenize & diminish ethical virtue to a broad road, where all paths lead to Rome. Can we do better?

  5. Philosophy World View Ethics What Underpins Our Ethics? Decision Making Action

  6. Ethical World Views Closed Worldview System Open Worldview System Meta Physical Meta Physical Physical Physical Physical Atheistic Agnostic Theistic

  7. Atheistic View • A Closed System • Science Rules • Human Determination is Authority • Nothing from Outside Earthly Paradigm Matters • Implications for • Source of Authority • Decision Making • Moral Behavior Ethics, Religion and Philosophy

  8. Theistic View Deistic Influence • An Open System • Allows for phenomena outside the physical world • This influence partially or completely determined moral standards • Implications for • Source of Authority • Decision Making • Moral Behavior Ethics, Religion and Philosophy

  9. Ethics • Is a derivative of the Greek word ethos, meaning customs, conduct, or character • Is concerned with the kinds of values and morals an individual or society ascribes as desirable or appropriate • Focuses on the virtuousness of individuals and their motives • Ethical Theory • Provides a system of rules or principles as a guide in making decisions about what is right/wrong and good/bad in a specific situation • Provides a basis for understanding what it means to be a morally decent human being Definition & Theory Leadership Ethics Description

  10. Has to do with what leaders doand who leaders are • It is concerned with the nature of the leaders’ behaviorand their virtuousness • In any decision-making situation, ethical issues are either implicitly or explicitlyinvolved • What choices leaders make and how they respond in a particular circumstance are informed and directed by their ethics Ethics & Leadership Leadership Ethics Description

  11. Two Broad Domains: Theories about leaders’ conductand about leaders’ character Ethical Theories

  12. Ethical Theories

  13. Teleological Theories:focus on consequencesof leaders’ actions, results • Three different approaches to making decisions regarding moral conduct - • Ethical egoism (create greatest good for the leader) • Closely related to transactional leadership theories • Example: leader takes a political stand on an issue for no other reason than to get re-elected CONDUCT Ethical Theories

  14. Teleological Theories, cont’d. • Three different approaches to making decisions regarding moral conduct - • Utilitarianism (create greatest good for greatest number) • Example: leader distributes scarce resources so as to maximize benefit to everyone, while hurting the fewest; preventive healthcare vs. catastrophic illnesses • Altruism (show concern for best interests of others) • Authentic transformational leadership is based on altruistic principles • Example: the work of Mother Theresa, who gave her entire life to help the poor CONDUCT Ethical Theories

  15. Deontological Theories:duty driven, for example, relates not only to consequences but also to whether action itself is good • Focuses on the actions of the leader and his/her moral obligation and responsibilities to do the right thing • Example: telling the truth, keeping promises, being fair CONDUCT Ethical Theories

  16. Virtue-based Theories: about leader’s character • Focus on who people are as people • Rather than tell people what to do, tell people what to be • Help people become more virtuous through training and development • Virtues present within person’s disposition, and practice makes good values habitual • Examples: courage, honesty, fairness, justice, integrity, humility CHARACTER Ethical Theories

  17. Influence dimensionof leadership requires the leader to have an impact on the lives of followers • Power and control differencescreate enormous ethical responsibility for leader’s • Respect for persons –sensitive to followers’ own interests, and needs • Leaders help to establish and reinforce organizational values – an ethical climate Centrality of Ethics to Leadership

  18. Emphasizes how leaders help followers to confront conflicting values & to effect change from conflict • Ethical perspective that speaks directly to – • Values of workers • Values of organizations and the communities in which they work • Leaders use authority to mobilize followers to • Get people focused on issues • Act as a reality test regarding information • Manage and frame issues • Orchestrate conflicting perspectives • Facilitate the decision-making process Heifetz’s Perspective Diverse Perspectives of Leadership

  19. Emphasizes how, cont’d. • Leaders use authority to mobilize followers to • Get people focused on issues • Act as a reality test regarding information • Manage and frame issues • Orchestrate conflicting perspectives • Facilitate the decision-making process • Leader provides a holding environment, a supportive context in which there is – • Trust, nurturance & empathy • Leaders duties – • Assist the follower in struggling with change and personal growth Heifetz’s Perspective Diverse Perspectives of Leadership

  20. Theory of Transformational Leadership • Strong emphasis on followers’ needs, values & morals • Leaders help followers in their personal struggles concerning conflicting values • Stressing values such as: • Liberty • Justice • Equality Burn’s Perspective Diverse Perspectives of Leadership

  21. Theory of Transformational Leadership, cont’d. • Connection between leader & follower • Raises level of morality of both • Leader’s Role • Assist followers in assessing their values & needs • Help followers to rise to a higher level of functioning Burn’s Perspective Diverse Perspectives of Leadership

  22. Servant Leadership – has strong altruistic ethical overtones • Leaders – • focus on & attentive to needs of followers • empathize with followers • take care of and nurture followers Greenleaf’s Perspective Diverse Perspectives of Leadership

  23. Leader has a social responsibility to be concerned with “have-nots” in the organization and: • Remove inequalities & social injustices • Uses less institutional power • Uses less control • Shifts authority to followers Greenleaf’s Perspective Diverse Perspectives of Leadership

  24. Servant Leadership Values: • Involvement • Respect • Trust • Individual strength • Follower Needs • Become more knowledgeable • More autonomous • Become more like servants Greenleaf’s Perspective • Listening • Empathy • Unconditional acceptance Diverse Perspectives of Leadership

  25. Includes wide range of concepts focused on: • Identifying attributes of service leadership • Examining conceptual frameworks of servant leadership • Developing instruments to measure servant leadership Recent Research – 1999-2002 Diverse Perspectives of Leadership

  26. Ethical Leadership

  27. Ethics- is central to leadership because of: • The process of influence • The need to engage followers to accomplish mutual goals • The impact leaders have on establishing the organization’s values Principles of Ethical Leadership

  28. Leader shall: • Treat other people’s values and decisions with respect • Allow others to be themselves with creative wants and desires • Approach others with a sense of unconditional worth and value individual differences Treating others as ends (their own goals) rather than as means (to leaders’ personal goals) Respects Others • Leader behaviors: - Listens closely to subordinates • - Is empathic • - Is tolerant of opposing viewpoints Principles of Ethical Leadership

  29. Leader’s have - • A duty to help others pursue their own legitimate interests and goals • To be stewards of the organization’s vision; in serving others they: clarify, nurture, and integrate the vision with, not for, organization members • An ethical responsibility to make decisions that are beneficial to their followers’ welfare Follower-centered - Based on the altruistic principle of placing followers foremost in the leader’s plans Serves Others • Leader behaviors • Mentoring behaviors • Empowerment behaviors • Team building behaviors • Citizenship behaviors Principles of Ethical Leadership

  30. Leader’s shall – • adhere to principles ofdistributive justice • Leader behaviors • All subordinates are treated in an equal manner • In special treatment/special consideration situations, grounds for differential treatment are clear, reasonable, and based on sound moral values Ethical leaders are concerned with issues of fairness and justice; they place issues of fairness at the center of their decision making Shows Justice Principles of Ethical Leadership

  31. Principles of Ethical Leadership

  32. Leaders: • Are not deceptive • Tell the truth with a balance of opennessand candor while monitoringwhat is appropriate to disclose in a particular situation Honest leaders are authentic but also sensitive to the feelings and attitudes of others Manifests Honesty • Leader behaviors • Don’t promise what you can’t deliver • Don’t suppress obligations • Don’t evade accountability • Don’t accept “survival of the fittest” pressures • Acknowledge and reward honest behavior in the organization Principles of Ethical Leadership

  33. Concern for common good means leaders cannot impose their will on others; they search for goals that are compatible with everyone. Builds Community • Ethical Leaders & Followers • take into account purposes of everyone in the group, and • reach out beyond their own mutually defined goals to wider community • Leader behaviors • Takes into account purposes of everyone in the group • Is attentive to interests of the community and culture • Does not force others or ignore intentions of others Principles of Ethical Leadership

  34. How Does the Ethical Leadership Perspective Work? Strengths Criticisms Application

  35. Provides a body oftimelyresearch on ethical issues • Provides direction on how to think about ethical leadership and how to practice it • Suggests that leadership is not an amoralphenomenon and that ethics should be considered asintegral to the broader domain of leadership • Highlights principles and virtues that are important in ethical leadership development Strengths

  36. Lacks a strong body of traditional research findings to substantiate the theoretical foundations • Relies heavily on writings of just a few individuals that are primarily descriptive and anecdotalin nature, and are strongly influenced by personalopinion and a particular worldview Criticisms

  37. Can be applied to individuals at all levels of organization and in all walks of life • Because leadership has a moral dimension, being a leader demands awareness on our part of the way our ethics defines our leadership • Managers and leaders can use information on ethics to understand themselves and strengthen their own leadership • Leaders can use ethical principles as benchmarks for their own behavior • Leaders can learn that leader-follower relationship is central to ethical leadership Application