2 - 1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Chapter 2 Leadership Traits and Ethics Chapter 2 Part One: Individuals As Leaders

2 - 2 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Outcomes 1)Explain the universality of traits of effective leaders. 2)Describe the Big Five personality dimensions. 3)Discuss why the trait of dominance is so important for managers to have. 4)State how the Achievement Motivation Theory and the Leader Motive Profile are related and different. 5)Identify similarities and differences among Theory X and Theory Y, the Pygmalion effect, and self-concept. 6)Describe how attitudes are used to develop four leadership styles. 7)Compare the three levels of moral development. 8)Explain the stakeholder approach to ethics.

2 - 3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Personality Trait Traits are distinguishing personal characteristics. Personality is a combination of traits that classifies an individual’s behavior. > Understanding personalities helps explain and predict others’ behavior and job performance. Personality profiles identify an individuals’ stronger and weaker traits. > Usage can increase self awareness. See Exhibit 2.1: Why Executives Are Derailed.

2 - 4 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Big Five Model of Personality The Big Five Model of Personality categorizes traits into the dimensions of surgency, agreeableness, adjustment, conscientiousness, and openness to experience. In applying trait theory, remember: > Many successful leaders have the Big Five traits, but there are always exceptions.

2 - 5 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Big Five Model of Personality The surgency personality dimension includes dominance, extraversion and high energy with determination. The agreeableness personality dimension includes traits of sociability and emotional intelligence. The adjustment personality dimension includes traits of emotional stability and self-confidence. The conscientiousness personality dimension includes traits of dependability and integrity. The openness-to-experience personality dimension includes traits of flexibility, intelligence and internal locus of control. See Exhibit 2.2.

2 - 6 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Effective Leader Personality Profiles David McClelland’s trait theories have strong research support and great relevance to the practice of leadership. Achievement Motivation Theory attempts to explain and predict behavior and performance based on a person’s need for achievement, power, and affiliation. > Relates to Conscientiousness, Surgency and Agreeableness. Leader Motive Profile Theory attempts to explain and predict leadership success based on a person’s need for achievement, power, and affiliation.

2 - 7 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leader Motive Profile (LMP) The Leader Motive Profile (LMP) includes a high need for power, which is socialized; that is greater than the need for affiliation and with a moderate need for achievement. > Socialized power is the Big Five adjustment dimension. > Conscientiousness – Big Five dimension. > Effective leaders have a lower need for affiliation than power.

2 - 8 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Big Five Model of Personality Leadership Traits within the Big Five Achievement Motivation Theory and LMP Surgency a.Dominance b.Extraversion c.Energy/Determination Need for power Agreeableness d.Sociability/Sensitivity e.Emotional intelligence Need for affiliation Adjustment f.Emotional Stability and Narcissism g.Self-confidence Socialized power (LMP) Conscientiousness h.Dependability i.Integrity Need for achievement Openness j.Flexibility k.Intelligence l.Locus of control No separate need; it is included in the other needs

2 - 9 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Attitudes Attitudes are positive or negative feelings about people, things, and issues. Everyone has positive and negative attitudes, but > Being positive or negative is a choice. Successful leaders have positive, optimistic attitudes.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Theory X and Theory Y Douglas McGregor classified attitudes or belief systems, called assumptions as Theory X and Theory Y. Theory X and Theory Y attempt to explain and predict leadership behavior and performance based on the leader’s attitude about followers.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Pygmalion Effect The Pygmalion effect proposes that leaders’ attitudes toward and expectations of followers, and their treatment of them, explain and predict followers’ behavior and performance. > In business, expectations are stated as objectives and standards.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Self-Concept Self-concept refers to the positive or negative attitudes people have about themselves. > If you have a positive view of yourself, you likely have the positive self-confidence trait. Self-efficacy is the belief in your own capability to perform in a specific situation. > Based on your self-concept and self-confidence. > Henry Ford said: “If you think you can, you can; if you think you can’t, you can’t”.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Developing a Positive Attitude and Self-Concept Behavior and performance are consistent with how we see ourselves. Self-awareness and self-development help. See the text for ideas on how to change your attitudes and develop a positive self- concept. Also see Exhibit 2.4.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Ethical Leadership Ethics are the standards of right and wrong that influence behavior. > Members of organizations face moral issues. > Leaders set the ethical climate and are responsible for employee behavior. > Government laws help keep business honest. o Sarbanes-Oxley Act of o AACSB says ethical understanding is an important competency.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Does Ethical Behavior Pay? Yes – direct link to bottom-line performance. Unethical decisions have led to: > dramatic costs in fines and reputational damage, > imprisonment, and > financial damage to society. Being ethical is difficult, but it has rewards. There is a direct link between being ethical and being an effective leader.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Factors Affecting Ethical Behavior Personality Traits and Attitudes Moral Development The Situation Moral development refers to understanding right from wrong and choosing to do the right thing. > Three levels of moral development: Postconventional, Conventional and Preconventional. See exhibit 2.5.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Justifying Unethical Behavior Moral justification is the thinking process of rationalizing unethical behavior. > Higher purpose. > Displacement of responsibility. > Diffusion of responsibility. > Advantageous comparison. > Disregard or distortion of consequences. > Attribution of blame. > Euphemistic labeling.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Guides to Ethical Behavior Golden rule – lead others as you want to be led. Four-way test – ask yourself four questions. > Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendship? Will it be beneficial to all concerned? Code of ethics – also called Codes of Conduct. Stakeholder approach to ethics, one creates a win- win situation for relevant parties affected by the decision. Reluctance to ask advice and continual justification means the decision may not be ethical.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Key Terms achievement motivation theory adjustment personality dimension agreeableness personality dimension attitudes big five model of personality conscientiousness personality dimension ethics leader motive profile (LMP) leader motive profile theory moral justification openness-to-experience personality dimension personality personality profiles Pygmalion effect self-concept stakeholder approach to ethics surgency personality dimension theory X and theory Y traits