CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION

1. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION STRATEGIC MANAGEMENT BUAD 4980

2. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Organizational Leadership Attributes • Leadership • The process of transforming organizations from what they are to what the leader would have them become • Desire to change the status quo • Vision of the desired future • Process for bringing about change STRATEGIC MANAGEMENT – BUAD 4980 2

3. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Organizational Leadership Attributes STRATEGIC MANAGEMENT – BUAD 4980 3

4. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Organizational Leadership Attributes • Setting a Direction • Understand the organization and all of its stakeholders – capabilities, limitations, potential • Understand the current environment, environmental trends and “futures” • Create a vision that positions the company in a future state – what it should become to realize its potential relative to its future environment STRATEGIC MANAGEMENT – BUAD 4980 4

5. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Organizational Leadership Attributes • Designing the Organization • A strategic leadership activity of building structures, teams, systems, and organizational processes that facilitate the implementation of the leader’s vision and strategies • Requires a lot of insight, decisions and internal organizational support to implement STRATEGIC MANAGEMENT – BUAD 4980 5

6. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Organizational Leadership Attributes • Difficulties in implementing the leaders’ vision and strategies • Lack of understanding of responsibility and accountability among managers • Reward systems that do not motivate individuals and groups toward desired organizational goals • Inadequate or inappropriate budgeting and control systems • Insufficient mechanisms to coordinate and integrate activities across the organization STRATEGIC MANAGEMENT – BUAD 4980 6

7. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Organizational Leadership Attributes • Developing an excellent and ethical organizational culture • The organizational culture should reinforce core competencies and high ethical standards • Leaders are the role models for the organizational culture • Leaders who fail to demonstrate ethical behavior undermine the ethical standards of the organization STRATEGIC MANAGEMENT – BUAD 4980 7

8. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Elements of Effective Leadership • Integrative Thinking • The process by which people reconcile opposing thoughts to identify creative solutions that provide them with more options and new alternatives • Identify and consider multiple avenues and conflicting ideas • Determine multiple outcomes from following each idea to its logical conclusion • Decide on the best or most feasible outcome STRATEGIC MANAGEMENT – BUAD 4980 8

9. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Elements of Effective Leadership • Overcoming Barriers to Change • Reasons why organizations are prone to inertia and slow to change • Risk aversion and resistance to change • Systemic organizational barriers • Individual behavioral barriers - mindset • Political barriers – power relationships • Personal time constraints STRATEGIC MANAGEMENT – BUAD 4980 9

10. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION A Leader’s Bases of Power STRATEGIC MANAGEMENT – BUAD 4980 10

11. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Leadership Traits • Key Leadership Traits • Technical Skill (Applied Knowledge) • Cognitive Ability (Analytical Capability) • Emotional Intelligence STRATEGIC MANAGEMENT – BUAD 4980 11

12. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Leadership Traits • Emotional Intelligence • An individual’s capacity for recognizing his own emotions and those of others • Encompasses five components of self awareness: • Self Awareness • Self Regulation • Motivation • Empathy • Social Skill STRATEGIC MANAGEMENT – BUAD 4980 12

13. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Emotional Intelligence STRATEGIC MANAGEMENT – BUAD 4980 13

14. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Leadership Traits • Effective leaders have empathy for others • Effective leaders are astute judges of people • Effective leaders are passionate about what they do, and they show it • Effective leaders create personal connections with their people STRATEGIC MANAGEMENT – BUAD 4980 14

15. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Inspiring and Motivating People • Successful Learning Organizations • Create a proactive, creative approach to the unknown • Actively solicit the involvement of employees at all levels • Enable all employees to use their intelligence and apply their imagination STRATEGIC MANAGEMENT – BUAD 4980 15

16. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Empowering People • Top-Down Approach (Control-Oriented) • Start at the top • Clarify the organization’s mission, vision and values • Clearly specify the tasks, roles and rewards • Delegate responsibility based on demonstrated capability • Hold people accountable for results STRATEGIC MANAGEMENT – BUAD 4980 16

17. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Empowering People • Bottom-Up Approach (Trust-orientated) • Start at the bottom • Learn the needs of employees and what motivates them • Teach employees self-management skills and model desired behaviors • Build teams to encourage cooperative behavior • Encourage innovation and intelligent risk-taking • Trust people to perform STRATEGIC MANAGEMENT – BUAD 4980 17

18. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Sharing Internal Knowledge • Open Book Approach • Track daily, weekly and month-to-date performance metrics at all levels of the organization • Share metrics with all levels of employees • Teach employees what the metrics mean and how they influence them • Share key financial results tied to metrics and explain what they mean STRATEGIC MANAGEMENT – BUAD 4980 18

19. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Sharing External Knowledge • Benchmarking • Comparing basic performance metrics and financial indicators across comparable organizational units • Internal benchmarking compares key metrics and financial indicators across similar functional units of the same company • External benchmarking compares key metrics and financial indicators across similar functional units of the same industry STRATEGIC MANAGEMENT – BUAD 4980 19

20. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Stimulating Creativity and Challenge • Create a sense of urgency to change and improve • Allow challenge of the status quo and dissenting opinions • Foster innovative risk taking • Foster curiosity and experimentation STRATEGIC MANAGEMENT – BUAD 4980 20

21. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Creating an Ethical Organization • Organizational Ethics • The values, attitudes, and behavioral patterns that define an organization’s operating culture and that determine what an organization holds as acceptable behavior STRATEGIC MANAGEMENT – BUAD 4980 21

22. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Creating an Ethical Organization • Organizational vs. Personal Ethics • Organizational ethics policies benefit the organization by creating boundaries that limit legal liability and maintain regulatory compliance • Organizational ethics are also valued in customer and supplier relationships, and convey a sense of social responsibility and trust in the marketplace STRATEGIC MANAGEMENT – BUAD 4980 22

23. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Creating an Ethical Organization • Organizational vs. Personal Ethics • Management leadership at all levels provides the role model for ethical behavior • Personal ethical values that are inconsistent with organizational ethics can create organizational conflict • Punitive actions taken against employees who violate ethical standards are after-the-fact and not likely to change personal values • Recruit employees whose ethical values are consistent with the organizational standards STRATEGIC MANAGEMENT – BUAD 4980 23

24. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Creating an Ethical Organization • Compliance-Based Ethics Programs • Programs for building ethical organizations that have the goal of preventing, detecting, and punishing legal violations • Integrity-based ethics programs • Programs for building ethical organizations that combine a concern for law with an emphasis on managerial responsibility for ethical behavior STRATEGIC MANAGEMENT – BUAD 4980 24

25. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Creating an Ethical Organization STRATEGIC MANAGEMENT – BUAD 4980 25

26. CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION Creating an Ethical Organization • Elements of Corporate Ethics Programs • Leadership role models and involvement • Corporate codes of conduct • Detailed policies and procedures defining specific situations and issues • Employee training with management involvement and leadership • Review of rewards and incentive systems for potential conflicts with ethical standards STRATEGIC MANAGEMENT – BUAD 4980 26