Chapter 11: Ethical Leadership

Three Reason Normative myopia occurs

(1) The belief that normative values do not apply to managerial decisions (2) The belief that facts and values can be separated in decision making, and (3) The belief that normative values are outside the realm of business

Six Leadership Styles that are based on emotional intelligence - Daniel Goleman

(1.) The coercive leader demands instantaneous obedience and focuses on achievement, initiative, and self-control. Although this style can be very effective during times of crisis or during a turnaround, it otherwise creates a negative climate for organizational performance. (2). The authoritative leader—considered to be one of the most effective styles—inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate. (3.) The affiliative leader values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking. (4.) The democratic leader relies on participation and teamwork to reach collaborative decisions. This style focuses on communication and creates a positive climate for achieving results. (5.) The pacesetting leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take the initiative. (6.) The coaching leader builds a positive climate by developing skills to foster long-term success, delegating responsibility, and skillfully issuing challenging assignments.

Richard Boyatzis and Annie McKee

Adapted Goleman's work on emotional intelligence to describe what they call a resonant leader. Resonant leaders demonstrate mindfulness of themselves and their own emotions.

Transactional leaders

Attempt to create employee satisfaction through negotiating, or "bartering," for desired behaviors or levels of performance. Can positively influence the corporate culture. Strive to promote activities and behavior through a shared vision and common learning experience. They have a stronger influence on coworker support for ethical decisions and building an ethical culture.

Leader-exchange theory

Claims that leaders form unique relationships with followers through social interactions.

Authentic leaders

Demonstrate core values and integrate these values into the operation of the firm.

Leader-follower congruence

Occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company.

Normative Myopia

Occurs when managers overlook or stifle the importance of core values in their business decisions.

Ethical business conflicts

Occurs when there are two or more positions on a decision that conflicts with organizational goals. Sometimes emerge because employees feel uncomfortable about their own or their coworkers' decisions. Benefits is that it helps pinpoint ethical issues.

Authentic leaders

Passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees ad other stakeholders. they do not mimic other leaders but they do learn by observing them. Display principle-centered power, because they are able to effectively handle difficult situations and display a strong commitment to their organization.

The RADAR Model

Recognize - Avoid - Discover - Answer - Recover

Transformational leaders

Strive to raise employees' level of commitment and foster trust and motivation. Can positively influence the corporate culture Communicate a sense of mission, stimulate new ways of thinking, an enhance as well as generate new learning experiences. These leaders consider employee needs and aspirations in conjunction with organizational needs.

Leadership

The ability or authority to guide and direct others towards a goal.

Emotional intelligence

The most effective ethical leaders possess the ability to manage themselves and their relationships with others effectively. These leaders are skilled in self-awareness, self-control, and relationship building. They are outward directed and have a vision about achieving "something greater than themselves."