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BE Chapter 11
Terms in this set (83)
Ability or authority to guide and direct others toward a goal
Ethical leadership creates an ____.
Leaders are central to influencing an organization's ____ and ____.
Corporate culture, ethical posture
Ethical leadership has a ___ relationship with the organizational citizenship of employees and a ____ relationship with deviance, or misconduct.
T/F: A leader must have followers' respect and provide a standard of conduct.
T/F: Failure to demonstrate effective leadership qualities at the top creates the perception that managers either do not care about the company's ethics program or they feel they are above ethics and compliance programs.
How are ethical leadership skills developed?
Years of training, experience and learning other best practices of leadership
Characteristics of ethical leaders that can be developed through proper training:
- Model organizational values
- Place what is best for the organization over their own interests
- Train and develop employees throughout their careers
- Establish reporting mechanisms
- Understand employee values and perceptions
- Recognize the limits of organizational rules and values
- Never operate in a silo of decision making
- Encourage the development of other leaders within the organization
- Recognizing own weaknesses and relying on others to help them
- Encourage employees to reach their full potential and emphasize their role as important co-creators of value
- Try to develop policies and procedures that provide incentives to those who train new leaders
Strong ethical leaders have the ___, ___, and ___ to pull the pertinent information together so the best or most ethical decisions are made.
Knowledge, wisdom and courage
Ethical leaders need ___ and ___ to make the right decision.
Strong ethical leaders are those ___ about the organization and act in ____.
Passionate, the organization's best interest
How are leaders able to align employees behind a common vision?
Promoting shared values
T/F: Ethical leadership does not require a strong personal character.
False. It is highly unlikely without a strong personal character.
Who is the leading authority on character development?
Thomas I. White
According to Thomas I. White, what should be the focus?
Developing "ethical reasoning" rather than being a "moral person"
According to White, what types of skills are required for the ability to resolve the complex ethical dilemmas encountered in a corporate culture?
What is a fundamental problem in traditional character development?
Specific values and virtues are used to teach a belief or philosophy. It becomes muddled in a business environment where cultural diversity, privacy and the profit motive must be respected.
How do ethical leaders avoid potential crises?
Anticipate, plan and act proactively
Name one way a leader can be proactive:
Take a leadership role in developing effective programs that provide employees with guidance and support for making more ethical choices, even in the face of considerable pressure to do otherwise.
T/F: Ethical leaders who are proactive understand social needs and apply or develop the best practices of ethical leadership that exist in their industry.
T/F: If an ethical leader does not model the organization's values or actively serve as role models for the organization's core values, then those values become nothing more than lip service.
According to Brent Smith, who is the primary influence on individual ethical behavior?
Leaders, they are role models.
Benefits of ethical leadership
- Direct impact on corporate culture of the firm
- Provide cultural motivations for ethical behavior
- Encourages employees to act in an ethical manner in their day-to-day work environment
- Can lead to higher employee satisfaction and employee commitment
- Strong relationships with external stakeholders
- Foundational requirement
Give an example on how ethical leadership has a direct impact on the corporate culture of a firm:
Communicate and monitor an organization's values, ensuring that employees are familiar with the company's purpose and beliefs
How does ethical leadership provide cultural motivations for ethical behavior?
Reward systems for ethical conduct and decision making, it is a positive correlation with ethical employee behavior patterns
What type of advantage does ethical leadership create?
What are the two leadership approaches ethical leaders generally adopt?
Compliance-based approach, integrity-based approach
What is the compliance-based leadership approached?
Emphasizes obedience to rules and regulations and sets processes in place to ensure compliance. It deters illegal conduct and stresses a culture of avoidance. Those in charge are called compliance officers or risk managers. Mostly seen in accounting and legal profession.
What is the integrity-based approach?
Views ethics as an opportunity to implement core values. Leaders take responsibility for the firm's ethical culture and hold employees accountable for practicing ethical behaviors and core practices. Those in charge are chief officers, human resource managers and board member committees involved with the ethics and compliance program.
Benefits of the integrity-based approach?
Empowers employees and helps integrate ethical values and principles established by the firm. It helps the firm understand where questionable practices are occurring and where possible new ethical issues are arising.
T/F: Business is not dynamic; it is static.
False. It is NOT static; it is dynamic.
Three categories of leaders:
The unethical leader, the apathetic leader, the ethical leader
Describe the unethical leader.
- Ego-centric and does whatever it takes to achieve the organization's objectives and his/her own
- Looks at laws as guidelines to be fitted to the goals of the firm.
- Perceive ethics codes, compliance regulations and industry standards as optional.
- Justification for breaking laws is that doing so is for the greater good
- Psychopathic leader or corporate psychopath
Describe the psychopathic leader or corporate psychopath
- 1% of the population could qualify as corporate psychopath
- Superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoy flouting the rules.
- Tendencies are to be in a position of control
What problems to companies face with a corporate psychopath?
What problems to companies face with a corporate psychopath? Heightened levels of conflict, lower employee commitment, higher organizational constraints, heavier workloads, poor levels of training, lower job satisfaction and an increase in employee absenteeism
Describe an apathetic leader
- Care little for ethics within the company
- Does not listen to employees, does not communicate well
- No passion for the firm or the mission of the organization
- Employees do not see the sacrifices in them that other managers or leaders display
Describe an ethical leader
- Include ethics at every operational level and stage of the decision making process
- Address issues as soon as they appear
- Try to create participative organizational cultures to which employees are encouraged to provide input
- View employee collaboration as an important resource
- Employees are seen as major co-contributors of value.
When there are two or more positions on an ethical decision
T/F: Employees who feel their leaders are ethical and willing to listen to their concerns are more likely to approach the other person or report the conflict internally.
Five conflict management styles:
Competing, avoiding, accommodating, collaborating and compromising
What two dimensions are the conflict management styles based on?
Assertiveness and cooperativeness
Acting in one's own best interests
Working toward the best interest of the other person
Competing management style
- Highly assertive, not cooperative
- Winning at any cost, success measured by how much other side loses
- Not considered ethical leaders
- Power-oriented, narcissistic
Avoiding management style
- Not effective leaders
- Not cooperative, not assertive
- Avoid conflicts at any costs, even if it leads to misconduct
Accommodating management style
- Highly cooperative, not assertive
- Tend to give in to other side even if it means sacrificing their own interests and values
- Can lead to ethical disaster
Compromising management style
- In between assertive and cooperativeness dimension
- Believe the best approach to resolving conflicts is for each side to give something up in order to gain something of value
- Able to receive part of what they want and allow other side a partial victory
- Useful in resolving ethical dilemmas
- Chooses solution that is most beneficial to all participants
Collaborating management style
- Most advantageous
- Cooperative and assertive
- Collaborate with others to find a creative way to obtain a beneficial solution
- Desire to meet the needs of stakeholders
- Strongly adhere to organizational values and principles.
- Most in sync with ethical leadership
- Works well in gray areas requiring the need to listen, learn and share in coming up with the best solution
Employee empowerment is an essential component of a ____ organizational culture.
T/F: A values-based culture encourages employees to express concerns, bring up ethical issues and take a proactive approach toward resolving conflicts.
How do ethical leaders create transparency?
Developing a culture where ethics is frequently discussed.
What are the two major dimensions of ethical communication?
Transparency and reporting
T/F: Reporting is a two-way process in which the communicator communicates with superiors and subordinates.
- Environments such as meetings and conferences
- Anonymous reporting systems
- Leaders interact among employees, keeping them informed about company decisions, policies and ethical expectations
Four categories of communication
Interpersonal, small group, nonverbal, listening
When two or more people interact with one another. It provides an intimate opportunity for the ethical leader to receive or dispense information. Also provides an opportunity to coach employees when potential ethical issues arise.
Small group communication
Very important to ethical decision making as many of the organization's ethical decisions are made in teams and the decisions impact the ethical success of the firm. It allows a number of individuals to collaborate and spread out responsibilities and empowers employees to engage in greater decision making responsibilities.
Advantages of small group communication
Increase collaboration and generate a variety of different perspectives and opinions on a particular issue.
Disadvantages of small group communication
- Repetitive or routine decision making can cause small groups to overlook certain ethical issues.
- Groupthink and group polarization
- Known to make riskier decisions than an average individual member from the group
When one or more group members feel pressured to conform to the groups decision even if they personally disagree.
A group is more likely to move toward a more extreme position than the group members might have done individually
Expressed through action, body language, expressions or other forms of communication not written or oral. Includes gestures, facial expressions, proximity, time, dress and paralanguage.
The way we talk, such as volume, inflection, tone and rhythm.
Paying attention to both verbal and nonverbal behavior. It is just as important as speaking and is important in employee morale
Occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company.
Leaders form unique relationships with followers through social interactions. A leader who is socially isolated from employees will have a tenuous relationship because employees are left to make their own decisions. Micromanaging employees make them feel stifled and believe leaders do not trust them.
T/F: Micromanaged employees often have lower morale, productivity, and greater willingness to leave the company.
What skill is found in the most effective ethical leaders?
Ability for leaders to manage themselves and their relationships with others effectively. Leaders are skilled in self-awareness, self-control, and relationship building.
Give an example of an emotionally intelligent leader.
Six leadership styles identified by Daniel Goleman
- Coercive leader
- Authoritative leader
- Affiliative leader
- Democratic leader
- Pacesetting leader
- Coaching leader
Demands instantaneous obedience and focuses on achievement, initiative and self-control. Creates a negative climate for organizational performance.
One of the most effective styles - inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate
Values people, their emotions and their needs and relies on friendship and trust to promote flexibility, innovation and risk-taking.
Relies on participation and teamwork to reach collaborative decisions. Focuses on communication and creates a positive climate for achieving results
Can create a negative climate because of the high standards that he or she sets. Works best for attaining quick results from highly motivated individuals who value achievement and take the initiative
Builds a positive climate by developing skills to foster long-term success, delegating responsibility, and skillfully issuing challenging assignments.
Demonstrates mindfulness of themselves and their own emotions, a belief that goals can be met, and a caring attitude toward others within the organization. Create an ethical culture as well as leader-follower congruence.
Attempt to create employee satisfaction through negotiating, or "bartering" for desired levels of performance
Strive to raise employees' level of commitment and foster trust and motivation
Passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders
Recognize ethical issues
Discover ethical risk areas
Answer stakeholder concerns
Recover from a misconduct disaster
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