1. 6-1

2. 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

3. 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.

4. 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.

5. 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. 6-6 What Are Values? Values: “Constructs representing generalized behaviors or states of affairs that are considered by the individual to be important.” –“ beliefs of a person or social group in which they have an emotional investment (either for or against something)” - WordReference.com English Dictionary WordReference.com 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.

7. 6-7 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–)

8. 6-8 Recognized Generations Veterans: Generational group that came of age in the Great Depression and World War II—represent a wealth of lore and wisdom and have been the stabilizing force in organizations. Baby Boomers: Generational group of postwar babies that came of age in times of violent social protests, lifestyle experimentation, and pervasive questioning of establishment values; this group is beginning to gray, but they still have a lot of passion and commitment for work; they want to create a level playing field for all, but they hold too many meetings for GenXers. GenXers: Generational group who grew up during the Watergate scandal, energy crisis, higher divorce rates, MTV, and corporate downsizing; tend to be technologically savvy, independent, and skeptical of institutions and hierarchy; entrepreneurial and embrace change and are not much for job security—they are loyal to a vocation more than an organization; more likely than previous generations to seek balance in their lives. Nexters: Generational group that was born in 1980 or later (current college students) and making significant generalizations is risky this early in the generational development; however, they generally share an optimism based on how their parents raised them and they tend to doubt the wisdom of traditional racial and sexual categorizing.

9. 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 - Born after a great war or other crisis when there is rejuvenated community life and consensus around a new societal order. –Nomad generations - Born during a cultural renewal, when social idealism and spiritual agendas among the young foster a revolt against the established institutional order. –Hero generations - Born after a spiritual awakening, leading to a time of individual pragmatism, self-reliance, laissez-faire, and national (or sectional or ethnic) chauvinism. –Artist generations - Born during a great war or other crisis, when worldly dangers force a relatively simple focus on essentials, and public consensus and personal sacrifice prevail.

10. 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.

11. 6-11 Kohlberg’s Moral Development Levels Moral reasoning refers to the process leaders use to make determinations about ethical and unethical behavior. –Pre-conventional level, is based on decision making that is in the individual’s self-interest (i.e., avoiding punishment or receiving rewards). –Conventional level, is characterized by decision making that gains others’ approval or is in line with expectations of common societal norms. –Post-conventional level is characterized by decision making that is based on universal, abstract principles (i.e., decisions based on justice). Research points toward young adulthood (20-30) as a period of change for how people define what is morally right and wrong.

12. 6-12 Developmental Levels and Stages of Moral Reasoning

13. 6-13 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.

14. 6-14 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.

15. 6-15 Key Work Values

16. 6-16 Leadership Values Profile VP or R&D

17. 6-17 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.

18. 6-18 Leadership and Organizational Values (continued) Ethical behavior within (or by) an organization is not only the sum of collective moralities of its members. It is also the collective behavior of its Executives. Cove has developed and popularized an approach called principle-centered leadership. Unique roles of each level of interdependency: –Personal – To be trustworthy person on both character and person. –Interpersonal – Relationship that lacks trust, leads to self protective efforts to control and verify each other’s behavior. –Managerial – Only in context of trust will managers risk empowering style, leading others to their full potential given leadership skills are present. –Organizational – Will be most successful when structure and systems are aligned.

19. 6-19 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.

20. 6-20 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.

21. 6-21 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.

22. 6-22 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

23. 6-23 Leader Attributes and Behaviors Universally Viewed as Positive and Negative

24. 6-24 Examples of Leader Behaviors and Attributes That Are Culturally Contingent

25. 6-25 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.

26. 6-26 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.