MGT 475 Ch 5

Values are

"constructs representing generalized behaviors or states of affairs that are considered by the individual to be important." Values are learned through socialization, become internalized, and affect behavior.

Five "fronts" of leadership action are required to create an ethical climate.

Formal ethics policies and procedures - formal statements of ethical standards/policies, reporting mechanisms, disciplinary procedures, and penalties Core ideology - organization's purpose, guiding principles, basic identity, and most important values Integrity - core ideology is congruent with all public and private actions throughout the organization Structural reinforcement - organization's structure and systems encourage higher ethical performance and discourage unethical performance Process focus - how goals are achieved is as important as achievement

Research has identified 4 biases that affect our moral decision making.

Implicit prejudice refers to subconscious prejudices that affect our decisions without us being aware of them. In-group favoritism involves doing acts of kindness and favors for those who are like us. Overclaiming credit involves overrating the quality of our own work and contributions. Conflicts of interest adversely impact ethical judgments and bias our perceptions of situations.

Research shows that ethical role models are characterized by four general categories of attitudes and behaviors:

Interpersonal behaviors: show care, concern, and compassion for others. Basic fairness: show fairness to others Ethical actions and self-expectations: hold themselves to high ethical standards Articulating ethical standards: articulate a consistent ethical vision and are uncompromising toward it

Gen Xers have a clearly different view of authority than previous generations.

Leadership is viewed as removing obstacles and giving followers what they need to work. Leaders must "earn their stripes" rather than advance by seniority.

When people behave badly, they use the following methods to interpret their behavior in a self-protective way.

Moral justification Euphemistic labeling Advantageous comparison Displacement or diffusion of responsibility Disregard or distortion of consequences Dehumanization Attribution of blame

Each generation is molded by distinctive experiences at their critical developmental periods.

The Veterans (1922-1943) The Baby Boomers (1942-1960) The Gen Xers (1961-1981) Millennials (1982-2005)

A common but challenging ethical dilemma involves choosing between two "rights." Kidder identified four common ethical dilemmas.

Truth vs. loyalty - honestly answering a question that may compromise confidentiality Individual vs. community -compromising the rights of an individual for the good of the community Short-term vs. long-term - balancing spending time with family against making career investments for future benefits Justice vs. mercy -excusing a person's behavior due to extenuating circumstances or convicting to teach a lesson

Research has found little evidence of a generation gap in

basic values.

Pervasive influences of broad forces at a particular time tend to create

common value systems. This may contribute to misunderstandings and tension during interactions between older leaders and younger followers.

Leaders face dilemmas that require choices between

competing sets of values and priorities.

The top leadership's collective values play a significant role in determining the

dominant values throughout the organization. Many of the most difficult decisions made by leaders are choices between opposing values.

Value differences often result in different judgments regarding

ethical and unethical behavior. Not everyone fully develops their moral judgment.

In ethical climates

ethical standards/norms are consistently and clearly communicated, embraced, and enforced by organizational leaders.

Upward ethical leadership involves

involves individuals showing leadership by taking actions to uphold ethical standards when higher-ups misbehave. The general quality of an organization's ethical climate affects whether or not employees raise ethical concerns.

Leaders should internalize a strong set of ethics

principles of right conduct or a system of moral values.

Terminal values

refer to desired end states (family security, social recognition).

Instrumental values

refer to modes of behavior (being helpful, being responsible).

Gardner and Burns stress

the centrality and importance of the moral dimension of leadership.

Moral reasoning is

the process leaders use to make decisions about ethical and unethical behaviors i.e. the manner by which they solve moral dilemmas.

In unethical climates

unethical behavior exists with little corrective action, and misbehavior may even be condoned.

Servant leadership

views serving others to be the leader's role. Ten characteristics describe servant leaders: Listening Empathy Healing Awareness Persuasion Conceptualization Foresight Stewardship Commitment to others' growth Building community

There is new interest in leadership approaches that are based on the interdependence between effective leadership and certain value systems.

Authentic leadership Servant leadership

Avolio asserts that there are two components of ethical leadership.

The moral person is a principled decision maker who cares about people and the broader society. The moral manager makes ethics an explicit part of the leadership agenda by communicating messages of ethics and values and by modeling ethical behavior

Two contrasting sets of assumptions people make about human nature:

Theory X asserts that most people need extrinsic motivation because they are not naturally motivated to work. Theory Y asserts that most people are intrinsically motivated by their work.

Four qualities of leadership engender trust:

Vision Empathy Consistency Integrity

Principle-centered leadership asserts

a fundamental interdependence between the personal, interpersonal, managerial, and organizational levels of leadership. Personal: Be a trustworthy person in terms of both character and competence. Interpersonal: A lack of trust leads to self-protective efforts to control and verify each other's behavior. Managerial: Empowering others requires a trusting relationship, team building, delegation, communication, negotiation, and self-management. Organizational: Creativity requires that the organization's structure, systems (training, reward, communication), strategy, and vision be aligned and mutually supportive.

Kidder offers three principles for resolving ethical dilemmas.

Ends-based thinking - "Do what's best for the greatest number of people." It is also known as utilitarianism. Rule-based thinking - It is consistent with Kantian philosophy and is characterized as "following the highest principle or duty." Care-based thinking - "Do what you want others to do to you." It is similar to the Golden Rule of conduct common in some form to many world religions.

The study of authentic leadership has gained momentum because of the following beliefs:

Enhancing self-awareness can help people in organizations find more meaning at work Promoting transparency and openness in relationships builds trust and commitment Fostering more inclusive structures and practices can help build more positive ethical climates

Greene suggests a dual-process theory of moral judgment.

Moral judgments dealing with rights or duties are made by automatic emotional responses while those made on a utilitarian basis are made more cognitively.

Moral potency has three key components.

Moral ownership is a felt sense of responsibility not only for the ethical nature of one's own behavior but also for one's commitment not to allow unethical things to happen within one's broader sphere of influence. Moral courage refers to the fortitude to face risk and overcome fears associated with taking ethical action. Moral efficacy is the confidence in one's capability to mobilize personal, interpersonal, and other external resources to persist despite moral adversity.

Unconscious biases may affect moral judgments, which is why many organizations are developing

programs to develop moral decision-making competence among leaders Effectiveness of such programs depends on understanding the moral decision-making process, which is complex.

Authentic leadership

is based on the notion of "to thine own self be true." Authentic leaders are self-aware and self-consciously align their actions with their inner values.