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1-2 McGraw-Hill/Irwin copyright © 2009 by The McGraw-Hill Companies, inc. All Rights Reserved Leadership and Values “Leadership cannot just go along to get along… Leadership must meet the moral challenge of the day.” ~Jesse Jackson Chapter 66

6-3 Introduction Personal values may be one of the most important determinants of how power is exercised or constrained. Mere possession of power leads to ethical questions about usage of power. The challenge of leadership becomes complex in a diverse and global environment.

6-4 Leadership and “Doing the Right Things” Leaders face dilemmas that require choices between competing sets of values and priorities. Leaders set a moral example that becomes the model for an entire group or organization. Leaders should internalize a strong set of ethics, principles of right conduct, or a system of moral values. Good leaders tend to align the values of their followers with those of the organization or movement.

6-5 Leadership and “Doing the Right Things” (continued) Four qualities of leadership that engenders trust: –Vision –Empathy –Consistency –Integrity Two contrasting sets of assumptions people make about human nature: –Theory X Reflects that most people need extrinsic motivation. –Theory Y Reflects that most people are intrinsically motivated.

6-6 What Are Values? Values: “Constructs representing generalized behaviors or states of affairs that are considered by the individual to be important.” They play a fairly central role in one’s overall psychological makeup. –They can affect behavior in a variety of situations. Individuals in the same work unit can have considerably different values. We can only make inferences about people’s values based on their behavior.

6-7 People Vary in the Relative Importance They Place on Values

6-8 Are there Generational Differences in Values? Pervasive influences of broad forces at a particular time tend to create common value systems. –This may contribute to misunderstandings and tension between older leaders and younger followers. Each generation is molded by distinctive experiences at their critical developmental periods: –The Veterans (1922–1943) –The Baby Boomers (1942–1960) –The Gen Xers (1960–1980) –The Nexters (1980–)

6-9 Are there Generational Differences in Values? (continued) Research has also found that there is little evidence of a generation gap in basic values. Research has also identified certain recurring generational archetypes: –Prophet generations –Nomad generations –Hero generations –Artist generations

6-10 Moral Reasoning An important consideration is how one thinks about value-laden issues or ethical dilemmas. Moral reasoning: Process leaders use to make decisions about ethical and unethical behaviors. –Manner by which leaders solve moral problems. Value differences often result in different judgments regarding ethical and unethical behavior. Kohlberg offers that although the development of moral reasoning is invariant, not all individuals actually achieve the highest stages.

6-11 Developmental Levels and Stages of Moral Reasoning

6-12 How Values Impact Leadership Values are primary determinants in what data are reviewed and how leaders define problems. Values affect the solutions generated and the decisions made about problems. Values often influence a leader’s perceptions of individual and organizational successes and the manner in which they are achieved. Values help leaders choose right from wrong, and between ethical and unethical behavior.

6-13 How Values Impact Leadership (continued) Leaders tend to like followers with similar values and dislike those with dissimilar values. Leaders must surround themselves with followers who possess divergent values. Leaders are motivated to act in ways consistent with their values. –They typically spend most of their time engaged in activities that are consistent with their values.

6-14 Key Work Values

6-15 Leadership Values Profile

6-16 Leadership and Organizational Values Organizational values: Represent the principals by which employees are to get work done and treat other employees, customers, and vendors. Organizational culture is affected by top leadership’s collective values. Related to the notion of culture and climate is the employee “fit.” Values are often a key factor in conflict, especially when choices represent values in opposition. Leader must set a personal example of values-based leadership.

6-17 Leadership and Organizational Values (continued) Ethical behavior within (or by) an organization is not only the sum of collective moralities of its members. Cove has developed and popularized an approach called principle-centered leadership. Unique roles of each level of interdependency: –Personal, interpersonal –Managerial, organizational

6-18 Positive Forms of Leadership Authentic leadership: Grounded on “to thine own self be true.” It has gained momentum because of these beliefs: –Enhancing self-awareness. –Promoting transparency and openness. –Fostering more inclusive structures and practices. Servant leadership: Leader’s role is to serve others. –Subject to criticism for its tendency to suggest that serving others is an end in itself.

6-19 When Good People Do Bad Things Ways people with firm moral principles may behave badly without feeling guilt or remorse: –Moral justification –Euphemistic labeling –Advantageous comparison –Displacement of responsibility –Diffusion of responsibility –Disregard or distortion of consequences –Dehumanization –Attribution of blame Darley offers that ethical problems are almost inherent in systems that measure performance.

6-20 What is Culture? Culture: Those learned behaviors characterizing the total way of life of members within any given society. The most salient aspect of any culture typically involves behavior. Distinctive actions, mannerisms, and gestures characteristic of a culture. Business leaders must become aware and respectful of cultural differences and cultural perspectives.

6-21 A Framework for Understanding Cultural Differences Seven fundamental dilemmas that people of all cultures face: –Source of Identity: Individual – Collective –Goals and Means of Achievement: Tough – Tender –Orientation to Authority: Equal – Unequal –Response to Ambiguity: Dynamic – Stable –Means of Knowledge Acquisition: Active – Reflective –Perspective on Time: Scarce – Plentiful –Outlook on Life: Doing – Being

6-22 Leader Attributes and Behaviors Universally Viewed as Positive and Negative

6-23 Examples of Leader Behaviors and Attributes That Are Culturally Contingent

6-24 Implications of Leadership Practitioners Leaders should expect to face a variety of challenges to their own system of ethics, values, or attitudes. Interacting with individuals and groups holding divergent and conflicting values is inevitable. Leaders particularly have a responsibility not to let their personal values interfere with professional leader-subordinate relationships.

6-25 Summary Values are constructs that represent general sets of behavior or states of affairs that individuals consider to be important. They are a central part of a leader’s psychological makeup. They impact leadership through cultural contexts. –Various attributes and behaviors are regarded either positively or negatively.