Coevolutionary arms races occur between _____

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Copyright Joseph W. Weiss

An Introduction to Leadership, Second Edition

Editor in Chief, AVP: Steve Wainwright

Sponsoring Editor: Christina Ganim

Development Editor: Thomas Finn, Dan Moneypenny

Assistant Editor: Teresa Bdzil

Editorial Assistant: Julie Mashburn

Production Editor: Catherine Morris

Copyeditor: Dana Richards

Cover Design: Tara Mayberry

Printing Services: Lightning Source Inc.

Production Services and ePub Development: Lachina Publishing Services

Permission Editor: Karen Ehrmann

Video Production: Jordan McKinley

Cover Image: Nick Daly/Taxi/Getty Images

ISBN-10: 1621782441

ISBN-13: 978-1-62178-244-5

Copyright © 2015 Bridgepoint Education, Inc.

All rights reserved.

GRANT OF PERMISSION TO PRINT: The copyright owner of this material hereby grants the holder of this publication the right to print these materials for personal use. The holder of this material may print the materials herein for personal use only. Any print, reprint, reproduction or distribution of these materials for commercial use without the express written consent of the copyright owner constitutes a violation of the U.S. Copyright Act, 17 U.S.C. §§ 101-810, as amended.

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Preface An Introduction to Leadership, Second Edition, explores leadership in an organizational setting with the premise that leadership is everywhere and everyone can be a leader. This expanded, 12 chapter edition increases coverage of gender, diversity, and culture; the generational divide; leader pro�iles and self-assessments; and virtual teams. This text presents the classical and contemporary studies that have shaped the leadership �ield, as well as personal assessments and exercises that allow students to determine their own leadership capacity and style.

Features

This text includes a number of features to help students understand key concepts and think critically about the material, including:

Opening Vignette. Each chapter begins with a brief pro�ile of a real leader relevant to the chapter’s discussion. Take the Lead. These applied features present the reader with real-world leadership challenges and encourage the reader to evaluate how one might address those challenges. Case Study Videos. These are embedded videos and examine the strengths and weakness of real leaders and organizations. Critical thinking questions accompany each video to help the reader explore the connections with the text. Leadership Videos. These are embedded videos that tap into the experiences and insights of organizational leaders and subject-matter experts. Assessments. Each chapter includes at least one leadership assessment activity. These allow the reader to examine leadership concepts with instruments used in the �ield. They cover a wide variety of topics from emotional intelligence to ethics.

Accessible Anywhere. Anytime.

With Constellation, faculty and students have full access to eTextbooks at their �ingertips. The eTextbooks are instantly accessible on web, mobile, and tablet.

iPhone To download the Constellation iPhone or iPad app, go to the App Store on your device, search for "Constellation for Ashford University," and download the free application. You may log in to the application with the same username and password used to access Constellation on the web.

NOTE: You will need iOS version 7.0 or higher.

Android Tablet and Phone To download the Constellation Android app, go to the Google Play Store on your Android Device, search for "Constellation for Ashford University," and download the free application. You may log in to the Android application with the same username and password used to access Constellation on the web.

NOTE: You will need a tablet or phone running Android version 2.3 (Gingerbread) or higher.

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Leadership involves in�luencing others to achieve a common goal, and with entrepreneurial leaders this often means doing things differently and often innovatively. This was the case with Steve Jobs at Apple®, Sam Walton of Walmart, Herb Kelleher at Southwest Airlines, and Oprah Winfrey at her media �irm Own Your Power Communications Inc.®, to name a

1 Leadership: Persons, Processes, and Systems

iStock/Thinkstock

Learning Outcomes

After completing this chapter, you should be able to:

1. De�ine leadership and describe how followers are important to leaders and leadership.

2. Explain the organizing framework of leadership as persons, processes, and systems.

3. Explain why leadership matters.

4. Discuss the relationship between natural leadership traits and situational factors.

5. Describe the different roles of leadership and management.

6. Understand your own leadership qualities.

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Meet Three Leadership Experts

few. More recently, other ordinary individuals became extraordinary leaders. They include founders and CEOs of businesses like Uber, Airbnb, and Net�lix®. These entrepreneurs led followers to transform industries and societies.

For example, Uber’s Travis Kalanick launched a limousine service in San Francisco in 2010 aimed at creating an easier, less expensive means of local transportation without all the bureaucracy and cost. Uber is now a global company valued at $40 billion, operating in 300 cities and over 50 countries with an international network of 200,000 drivers who use their own cars.

Kalanick, noted for his scrappiness and determination, failed twice in business before he created Uber. His �irst start-up was a �ile-sharing company named Scour®. Trade groups from the recording and �ilm industries sued Scour for copyright infringement and forced it into bankruptcy. His second start-up software company, Red Swoosh®, enabled customers to transfer �iles quickly. Kalanick sold it because of failing demand for $18.7 million six years after it started. He then persisted in his goal of creating innovative ideas and leading people, and founded Uber. He is known as “one of Silicon Valley’s toughest �ighters, with an unusual ability to convince others to join him in taking on the world and a �ierceness developed over more than a decade spent �ighting to make it as an entrepreneur” (Mishkin, 2015).

We began with Kalanick’s story to show that it’s not easy to lead, and it’s not easy to succeed. Sometimes we get swept away in the romance of success stories; in reality, leaders and successful businesses require many hours of very hard work and struggle. But strong leadership is generated from a wide and complex variety of factors, not the least of which are persistence and a willingness to be and do better.

As a �ield of study, leadership includes theories and practices that continue to evolve over time. Theories provide a system of ideas based on principles; practices are activities and methods that have been experienced. Both work together. And it seems in this globalized, high-tech 21st century that the cycle of change is becoming ever faster as the interaction between leadership theory and practice also quickens through the exchange of ideas and experience in social media, blogs, as well as academic journals. This book explores the evolution of leadership in order to better inform and prepare you to be an effective, knowledgeable leader.

The rest of this chapter gets us started on this exploration of leadership. We begin by trying to establish a working de�inition of leadership and by trying to understand leadership in the dynamic framework of people, processes, and systems. Then we touch on some of the core questions regarding leadership, such as why it matters, how leaders are created, and what is leadership’s relationship to management. We conclude with a self-assessment of your own leadership qualities.

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Chris Ratcliffe/Bloomberg/Getty

Travis Kalanick failed in his �irst couple of business ventures. But he persisted and now he is the founder and CEO of Uber, a $40 billion company.

1.1 De�ining Leadership Leadership is the ability to in�luence followers to achieve common goals through shared purposes (Rost, 1993; Rost & Barker, 2000). Leadership is both art and science. There is no exact mathematical formula for being an effective leader; leaders in hospitals, banks, retail stores, government agencies, the military, and classrooms have the ability to in�luence others around common goals and shared purposes to achieve organizational visions and missions. There are, however, some characteristics and behaviors that are constant—even measurable—among in�luential and effective leaders. Kouzes and Posner (2012) found that leaders’ actions—that is, “commitment, loyalty, motivation, pride, and productivity” (p. 25) —contribute more to employees’ workplace engagement than any other single variable.

The ability to in�luence others is also a distinctive part of the de�inition of leadership; “leaders are in�luential in determining the fate of their organizations through their decisions, strategies, and in�luence on others” (Dinh et al., 2014). In�luence refers to a person’s ability to affect or to change the actions, behaviors, and opinions of others, and sometimes of industries and even societies, as Travis Kalanick is doing. Leaders motivate others to perform certain tasks and may even in�luence them to act ethically (Provitera, 2003; Schaubroeck et al., 2012). An example is Malala Yousafzai, the Pakistani young woman who at 12 years old was shot by the Taliban when she demanded that girls be allowed to receive an education. She translated her mission into a campaign, in�luencing others worldwide with her cause. She won the Nobel Peace Prize in 2014 for her courageous leadership (“Malala Yousafzai,” 2015).

Followers are those who are in�luenced by leadership; they are not necessarily subordinates, but, depending on the level and structure of the organization, can be peers, team leaders, vice presidents, directors, and supervisors. We use the term subordinates generically and interchangeably with the term followers for the remainder of the book. Leaders need followers in order to help them achieve their goals; it is dif�icult, after all, to accomplish much on one’s own. Likewise, followers need the direction that leaders provide. This critical relationship requires mutual trust, respect, and an understanding that the two groups need each other; it is not a mindless relationship. Just as there are effective and ineffective leaders, there are effective and ineffective followers. Leaders should not assume they are “better” than followers, and followers should not simply be “yes people” (Bennis, 2004). In fact, the qualities of effective leaders are often the same as those of high- performing followers. As you read through the text, think about the situations in which you have the opportunity to be a leader or a follower.

The phrases “common goals” and “shared purposes” reveal the need for unity in the leader–follower relationship. “Common goals” refers to the desired future or end state of the organization. Common goals help leaders and followers orient themselves in the same direction. “Shared purposes” is similar in meaning but speaks more to how leaders and followers arrive at common goals. Imagine a rowboat with two oars, one for the leader and the other for the follower. The two rowers need to row in the same direction, otherwise the rowboat will simply turn in circles. Thus, even though a leader may set the goal, followers must agree with it; and, the common goal must supersede the individual goals. In our rowboat example, if one rower’s goal is to row as fast as possible while the other rower’s goal is to row at a deliberate pace, the rowboat will struggle to reach its intended destination even though the two are rowing in the same direction. A group can have multiple common goals, and they may be as simple as completing a task before lunch or as complex as becoming an industry’s market leader and increasing productivity and pro�itability.

It is important to note that for decades scholars and researchers have dedicated time to the broader study of effective leadership. From this research, we’ve come

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Andre Burton/Getty Image News/Thinkstock

Malala Yousafzai won the Nobel Peace Prize in 2014 for leading the movement to have all girls in - Pakistan receive an education.

to learn much more about the importance of context, interpersonal dynamics, communication skills, gender, culture, generational divides, and so on.

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1.2 Leadership in the Context of Persons, Processes, and Systems: A Multidimensional Perspective

Figure 1.1 shows us an inclusive model that incorporates the importance of a leader’s in�luence and actions to achieve common goals through shared purposes. This framework is referred to throughout the text, and it shows that leaders do not act or in�luence others in a vacuum. All leaders and their followers work within the context of organizational systems that call for the different processes and skills needed to accomplish work in different situations.1

Figure 1.1 takes into account broader, integrative contexts, namely “persons, processes, and systems” (Avolio, 1999, 2007; Dinh et al., 2014). Persons count. In other words, leaders and followers must understand their personality traits and behaviors before they’re able to start exerting effective in�luence. As the saying goes, “If you can’t lead yourself, you can’t lead others.” A classic Harvard Business Review article (Goffee & Jones, 2000) entitled “Why should anyone be led by you?” also supports this point. Individual leaders, in particular, and also followers, stakeholders, and stockholders exert in�luence on organizational goals and performance.

Figure 1.1: Persons, processes, and systems

All persons—leaders as well as followers—work within the context of organizational systems that call for the different processes and skills needed to accomplish work in different situations. This is the leadership context.

Processes also matter. Leaders rely on and use strategic communication, values, decision making, negotiation, con�lict resolution, and problem-solving skills, which enable followers and others to guide and keep organizations on course. Dinh et al. (2014) argued that “By understanding how leaders in�luence underlying processes that lead to organizational outcomes, scholars can also develop integrative perspectives that unify diverse theories and stimulate novel leadership research in the new millennium.”

Systems (strategies, structures, cultures) are both partially created by leaders and also serve as the contexts in which leaders align persons and processes toward goal attainment. “[L]eaders are embedded within organizational systems that are continually evolving, creating a more complex picture for understanding how individuals think, feel, and behave in response to changing events” (Dinh et al., 2014, p. 55).

When you are hired into an organization or company and are assigned a supervisor, you are already involved in the leader–follower in�luence process within a system. It is helpful to understand the larger landscape of organizations from a person, process, and system perspective to see the different interconnecting layers of leadership and know where you are located in that landscape. Figure 1.1 illustrates such a landscape. It also presents an overview of this text’s coverage of

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the �ield of leadership. Building on the previous discussion, leaders do seek to in�luence followers and they do so in organizational settings through processes that relate to leadership styles and ways of communicating, in�luencing, and managing people to accomplish goals and objectives.

Individuals, followers, teams, and groups are the starting point for understanding leadership. Whether an organization is as large and complex as Microsoft®, General Electric, or Apple or as small as a start-up, it is still the founders, current CEOs, and other individual leaders whose personalities, histories, visions, ethics, values, and missions direct, guide, and in�luence those inside and outside the organization. It is also to leverage leaders who are hired, promoted, and often times �ired when performance and other goals are derailed or fail to work. Relationships are also at the heart of leadership. Whether in dyads, triads, groups, or teams, in one or multiple locations around the globe, it is leaders who in�luence individuals in corporations, institutions, and nations.

Leaders also in�luence followers and constituencies through processes—that is, procedures, mechanisms, methods, practices, roles, and styles. Leaders use different styles, roles, and methods to communicate, negotiate, problem solve, resolve con�licts, and innovate depending on the nature and requirements of particular environments, tasks, individuals, and groups. One size (or “process”) does not �it all. Learning leadership styles that �it different followers, tasks, and organizational settings is a major part of leadership effectiveness.

Leaders are charged with identifying strategies, goals, and the dominant culture (ethics and values) within their teams in order to guide and navigate an organization’s overall direction and performance. These dimensions are also the systems within an organization. How effectively leaders and their teams “�it” the overall strategies, goals, and culture to an organization’s external environment determines the effectiveness of the leader and these leadership systems. The persons and processes of leadership are integral parts of the systems. So, taken together, this multidimensional approach involves understanding the persons, processes, and systems of leadership in organizations, and how these dimensions �it (or not) to affect their environments. The Competing Values Framework (CVF) discussed at the end of this chapter offers examples of how these systems work together to respond to the external environmental demands of leaders and organizations.

Because leadership involves relationships, understanding your own style and that of leaders and followers with whom you will be working is important to your success. After reading and studying the �irst few chapters of this book, you will be able to identify and evaluate your own leadership style and the style of others. You will begin to see how your style and others’ styles �it (or not) with different organizational strategies and cultures. You will also learn to evaluate the effectiveness of both your and your leader’s personal and professional style from a full range leadership model (McCleskey, 2014), which is discussed later in this book.

Systems, from this view, refers to particular perspectives and mind-sets, or “mental models,” that leaders and team members in organizational departments form as part of their culture. As new employees, learning to “read” and discover these perspectives is important because it will help you “�it” within a team. You will also be able to question assumptions and contribute to the effectiveness and ef�iciency of a team after you understand how members’ beliefs and values impact work assignments. Your own knowledge and perspective about how an organization’s culture �its (or not) with its strategy and stated ethics will become more evident. Leaders’ and followers’ perspectives within and across departments in organizations differ and may or may not always be in alignment with the larger organization’s direction, mission, and values. After you read and study this text, you will get a more realistic picture of what type of organizational culture, strategy, and system you prefer and what type best suits your current emerging leadership style. Keep Figure 1.1 in mind as a road map while reading the text.

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1.3 Why Leadership Matters The need for leadership is clear. Think of situations in your life—or even in the news—where the person or persons in charge made all the difference, whether it was a corporate scandal, a tragic event, or just a group project. Or perhaps consider how simply setting a positive example—going to college, doing the right thing, championing a cause—can motivate others. Much of this text examines leadership in an organizational setting, but leaders are everywhere; and leadership practices and development are in demand now more than ever before.

The following excerpt provides a brief overview of the current changing business environment in which leaders are needed and where they work. A recent survey of 2,532 business and human resources (HR) leaders in 94 countries around the world identi�ied the following urgent top concerns: “leadership, retention and engagement, the reskilling of HR (human resources), and talent acquisition. . . .”2 The report states

Building global leadership is by far the most urgent. . . . Companies see the need for leadership at all levels, in all geographies, and across all functional areas. . . . In a world where knowledge doubles every year and skills have a half-life of 2.5 to 5 years, leaders need constant development. This ongoing need to develop leaders is also driven by the changing expectations of the workforce and the evolving challenges businesses are facing, including two major themes underlying this year’s trends: globalization and the speed and extent of technological change and innovation.3

Leaders must create and manage change while dealing with the economic effects of an expanding global economy, unstable political events, an increasingly diverse workforce, unpredictable consumer markets, misconduct, and sometimes corruption. Organizational responses to these changes include �latter structures, virtual and dispersed teams, and increased use of information technologies for faster and more frequent communication, often while having to “do more with less.” Organizational leaders are called on to reimagine, recreate and reenergize a sense of purpose, mission, values, and practices in a multigenerational workforce who require constant development to stay competitive and be successful. So, are you ready to be a leader? Take Assessment 1.1 to get a better sense of your leadership readiness.

Assessment 1.1: Are You Ready to Be a Leader?

Instructions

Indicate the extent to which you agree with each of the following statements, using the following scale: 1 = strongly disagree, 2 = disagree, 3 = neither agree nor disagree, 4 = agree, and 5 = strongly agree

1. I am energized when people count on me for ideas.

2. As a practice, I ask people provocative questions when we are working on projects together.

3. I take delight in complimenting people that I work with when progress is made.

4. I �ind it easy to be the cheerleader for others, when times are good and when times are bad.

5. Team accomplishment is more important to me than my own personal accomplishments.

6. People often take my ideas and run with them.

7. When involved in group projects, building team cohesiveness is important to me.

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8. When involved in group projects, coaching others is an activity that I gravitate toward.

9. I �ind pleasure in recognizing and celebrating the accomplishments of others.

10. When involved in group projects, my team members’ problems are my problems.

11. Resolving interpersonal con�lict is an activity that I enjoy.

12. When involved in group projects, I frequently �ind myself to be an idea generator.

13. When involved in group projects, I am inclined to let my ideas be known.

14. I �ind pleasure in being a convincing person.

Scoring and Interpretation

Sum your responses to the 14 questions and then divide that number by 14. Your score should fall between a low of 1 and a high of 5. A tentative interpretation of your scoring is as follows:

4.5 and higher implies a high motivation for leadership.

3.0 implies uncertainty about your motivation for leadership.

1.75 and lower implies a low motivation for leadership.

My leadership motivation (readiness) score is ____________________.

Source: Pierce, J. and Newstrom, J.W. Leaders and the Leadership Process, 4th ed, p. 67. Reprinted by permission of McGraw-Hill Education. Reprinted by permission of The McGraw-Hill Companies, Inc.

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Is leadership something that one is born with, or is it something that can be learned over time? Barbara Brady, PhD, Tara Martinez, and Brian Hemphill, PhD, discuss the distinctions.

Leaders: Born or Made?

Critical Thinking Questions

Identify and contrast an example of a leader who has (had) natural characteristics to become a leader, and a leader who developed such characteristics from experience or necessity. What differences did you notice? What natural traits or characteristics do you observe that you have to be a leader? What leadership characteristics do you think you need to develop and gain from experience?

1.4 Who Can Be a Leader: Are Leaders Born or Made? When describing leaders, sometimes the tendency is to think that they have somehow inherited leadership through no effort of their own: They were born with the qualities or traits that make them good leaders, or they simply stepped into the position by being in the right place at the right time. However, if leaders are everywhere, this suggests that there is more to leadership than winning the “leadership lottery.”

To say that someone is born a leader implies that only a select pool of candidates is quali�ied to be leaders. (We discuss this later in the section on trait theory.) Although some scholars argue that some individuals possess a natural predisposition for leadership, others prefer, as previously discussed, to describe leadership as a process and as systems. In other words, leadership can be developed over time and in context to other factors. Individuals can learn to be leaders by honing the needed skills—such as communicating, planning, and negotiating, among other things—and by working to better understand themselves and how they interact with others. From a persons, process, and systems perspective leadership is available to everyone, not only to a formally appointed leader. Leadership is not a destination that can be arrived at; it is a continual learning experience.

There is more than one path to becoming a leader. Leadership is assigned when people, such as a company vice president or a police of�icer, are named to positions of power and are given formal authority. However, leadership often extends beyond these assigned positions; some individuals exhibit leadership abilities and are recognized as leaders by their groups despite not having a formal title. This phenomenon is referred to as emergent leadership, and scholars have pointed to certain characteristics that those who emerge as leaders share.

Emergent leadership is considered a necessary and desired trait at companies like Google and Zappos®. Google’s Vice President of People Operations said “For every job. . . the No. 1 thing we look for is general cognitive ability, and it’s not I.Q. It’s learning ability. It’s the ability to process on the �ly. It’s the ability to pull together disparate bits of information” (Friedman, 2014). Fisher (1971) observed speci�ic communication behaviors: Emergent leaders engage others verbally, ask for other opinions, remain �irm but �lexible, and initiate compelling, new ideas. Smith and Foti (1998) suggested that emergent leaders exhibit common personality traits. In their study of 160 male college students, they found that dominance, intelligence, and con�idence in one’s ability to perform (self-ef�icacy) were relevant traits that characterized emergent leaders. Because the sample consisted of male students only, it is uncertain whether the results apply to women (Northouse, 2013). Because leadership involves multiple levels that create top-down and bottom-up emergent outcomes (Yammarino & Dansereau, 2011), leaders can adopt values and create climates and cultures that foster emergent and other desired follower behaviors and outcomes (Lord & Dinh, 2012).

Are Leaders Born or Bred? From Title: Nurturing Leadership (https://fod.infobase.com/PortalPlaylists.aspx?

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1.5 Leadership and Managerial Roles Now that we have covered a basic de�inition of leadership, we will examine the many roles leaders perform to help us better understand the function and ef�icacy of leadership. Leadership roles are expected behaviors and activities related to leaders’ jobs. Based on his classic but relevant study of the actual work habits and time management of chief executive of�icers (CEOs), Mintzberg (1973, 2009) identi�ied 10 speci�ic roles that could be categorized into three sets: interpersonal, informational, and decisional. The interpersonal role set involves meeting and working with other people both inside and outside the organization. The informational role set works with and transmits data and information. The decisional role set helps make critical decisions that can affect how an organization works.

Interpersonal Role Set

1. Figurehead: Leaders, usually in high-level roles, perform ceremonial and symbolic duties as heads of organizations. This role is not trivial. As the face, voice, and public image of an organization, a leader upholds the organization’s reputation, personality, and presence to external stakeholders and stockholders. This role involves entertaining clients in an of�icial capacity and presiding at meetings, dinners, and of�icial functions.

2. Leader: This role in�luences how leaders excel in all the other roles. In this capacity and this particular role, they foster a proper work atmosphere, motivate and develop subordinates, evaluate performance, hire employees, and give instructions.

Take the Lead Credits

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3. Liaison: This role involves interacting with people both inside and outside the organization: gathering and sharing information, networking, and maintaining relationships. It also involves managing politics inside and outside the organization. Leaders have to serve on and lead committees, attend professional and trade- association meetings, and stay in touch with key stakeholders.

Informational Role Set

4. Monitor: As part of their information-processing functions, leaders gather and analyze internal and external information relevant to the organization. They have to keep current on memos, reports, professional trade and association publications, news, and media. These days they have to keep current on competitive and competitors’ products, prices, and business processes and practices.

5. Disseminator: In this role, leaders transmit factual and value-based information to others in the organization. Currently this can be done through electronic as well as face-to-face contact. Leaders spend time in one-to-one discussions and group meetings.

6. Spokesperson: Leaders provide information to people outside the organization. They report to the board of directors, owners, managers, and team leaders. They also represent the organization to the media, community groups, and professional associations, regarding the organization’s news, performance, and policies.

Decisional Role Set

7. Entrepreneur: Leaders participate in designing and initiating change and improvements in the organization. More leaders are taking on entrepreneurial roles in the current competitive business environment. Leaders are involved in collaborating with venture capitalists, developing new or improved products and services, and �inding new ways to process services and products.

8. Disturbance handler: Leaders must deal with unexpected events, crises, and operational breakdowns. They have to be ready to represent and take action quickly, especially in these days when global media are ubiquitous. Leaders have to handle striking unions, equipment and operations breakdowns, and unforeseen mishaps.

9. Resource allocator: Leaders are in charge of ensuring that the organization’s resources are operationally, legally, and ethically managed. They must also schedule, authorize, and oversee budgeting activities of people and equipment.

10. Negotiator: Leaders represent their organizations when they participate in negotiation activities with individuals and groups inside and outside the organization. They must be involved in both routine and nonroutine negotiations, such as pay and bene�its packages for employees; union labor contracts; customer and supplier contracts; and prices for sales, service, and delivery of products and services.

Mintzberg’s work depicted the range of responsibilities and behaviors required of leaders. However, leaders do not usually have to perform all roles at once, nor do they perform all the roles in the same way. Mintzberg observed:

Although individual capabilities in�luence the implementation of a role, it is the organization that determines the need for a particular role, addressing the common belief that it is predominantly a manager’s skill set that determines success. Effective managers develop protocols for action given their job description and personal preference, and match these with the situation at hand. (Mintzberg, 1973)

In today’s business environment, changing technology, daily problems, and external factors can affect how leaders communicate and function in these different roles (House & Aditya, 1997). Mintzberg found that most CEOs are not re�lective strategists who carefully plan their company’s next move; leaders act and react constantly. Applying Mintzberg’s roles to yourself can provide helpful insights (“Mintzberg’s Management Roles,” 2014). See “Take the Lead: Decisional Roles of a Leader” to apply concepts.

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iStock/Thinkstock

The Smith and Forti study found that dominance, intelligence, and con�idence in oneself were traits that characterized emergent leaders.

Management and Leadership Compared

In de�ining his 10 managerial roles, Mintzberg did not distinguish between leaders and managers, choosing—as many scholars have—to see the two roles as interrelated: two sides of the same coin. However, the terms leadership and management often have different connotations for different people, and other experts in the �ield argue that the characteristics and duties of leaders and managers are indeed distinct. Can leaders be managers and vice versa? What is the difference between leaders and managers? Do their processes differ signi�icantly? Are they different types of people?

While scholars differ on whether individuals can be both leaders and managers, they agree that both are needed for an organization to be successful, especially depending on the situation and skills required (McCleskey, 2014). Zaleznik (2004), however, believed that managers and leaders are distinctly different; you are either a leader or a manager. He argued that managers are reactive and work with people collaboratively but with little emotional involvement. Leaders,

Take the Lead Credits

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Caia Images/Caia Images/Superstock

What do you think? Can leaders be managers and vice versa?

however, shape and change ideas and are very emotionally involved with people. Managers limit choice; leaders expand options to solve problems. Leaders change other people’s attitudes, while managers only change people’s behavior (Rowe & Boulgarides, 1992).

For example, President John F. Kennedy reoriented the nation’s thinking and attitudes toward exploring space by describing it as illustrative of American ingenuity, progress, and sense of adventure. Managers at NASA helped make that dream possible by equipping astronauts to reach the moon.

Rowe and Boulgarides (1992) contended that leaders and managers possess different philosophical perspectives. Managers are deterministic; they believe that their respective organizations, industries, and environments determine their work and the way they conduct themselves. Leaders believe in free will; they believe that their choices affect and shape their organizations, industries, and environments. Rowe also argued organizations need both strong management and strong leadership. Organizations that have strong management but little or no leadership are too bureaucratic, constraining creativity and innovation. On the other hand, organizations with powerful leadership and little or no management may adopt change for the sake of change and be misguided (Rowe, 2007).

Other scholars agree that organizations need both effective managers and leaders but have argued that an individual can hold both roles simultaneously, integrating management and leadership functions for high performance (Yukl & Lepsinger, 2005). This view has been and is supported by several scholars (Bass, 1985; Seltzer & Bass, 1990; McCleskey, 2014; Robbins & Judge, 2015). Still, not all leaders are competent managers and many managers neither desire nor can become excellent leaders, although tasks and roles are interchangeable. It is helpful to see some of the distinctive characteristics of each so that you may better understand your own current preferences, skills, and aspirations.

Kotter (1990, 1996), whose distinctions between managers and - leaders are outlined in Table 1.1, called for “leader–managers.” Managers are needed to handle complexity through planning and budgeting, organizing and staf�ing, and controlling and problem solving. Leaders are required to handle change by setting direction and aligning, motivating, and inspiring people. Kotter contended that organizations are overmanaged and underled, but also pointed out that strong leadership with weak management may create worse situations.

Mintzberg (1990) argued that managers lead and leaders manage, and individuals need to be managers and leaders simultaneously. He described managers as leading with “a cerebral face,” which emphasizes calculation, sees an organization as a portfolio of components—that is, departments and functional areas (human

resources, production, sales, etc.)—and operates with rationality. Leaders lead by using “an insightful face.” This face emphasizes commitment and sees organizations through an integrative perspective, grounded in the image and feel of integrity. Mintzberg argued that managers need to be “two-faced,” that is, they need also to be leaders when required.

Table 1.1: Management and leadership

Management Leadership

Direction Plans for the bottom line Creates a shared vision and strategy

Alignment Focuses on the organization Creates common culture and values that reduce boundaries

Relationships Occupies a position of power; plays the role of the boss; focuses on production

Desires to motivate and inspire people and followers; plays the role of coach; mediates, facilitates, and serves

Personal qualities

Emotionally separated; highly talkative; expert minded; in favor of standardization

Emotionally engaged; listens to others; open-minded; diversi�ied

Outcomes Stability and predictability; ef�iciency Change and effectiveness

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Source: Based on A force for change: how leadership differs from management, by J. P. Kotter, 1990, New York, NY: The Free Press.

Management has been characterized as planning, organizing, staf�ing, and controlling organizational resources, while leadership is viewed as focusing on people and creating vision, culture, and change. However, both leaders and managers in�luence people and participate in the achievement of common goals—key to our de�inition of leadership—and we will not distinguish between the two roles in this text. You may take Assessment 1.2 to determine whether you are a manager, a leader, or both.

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1.6 Leadership Is Everyone’s Business “Becoming a leader is synonymous with becoming yourself. It’s precisely that simple, and it’s also that dif�icult” the late Warren Bennis once said (Ignatius, 2015, p. 10).

Leadership is also relational; it happens among people and it is codependent in nature. Followers need leaders, but leaders, whatever role they play in their organization, need thoughtful followers to work toward and achieve their common goals. Leadership, then, involves persons, processes, and systems. At the same time, some individuals will either emerge or be appointed to take the lead in helping make a difference in groups, teams, organizations, and nations. Zenger and Folkman (2014) made the observation posed as a question, “Individual contributors sometimes ask themselves, ‘What will it take for others to recognize my potential?’” These authors noted that such contributors may only want “acknowledgement of the importance of the work they do. Or they may aspire to move into management” as they watch others advancing in organizations ahead of them. The authors’ study of 4,158 individuals’ responses on 360-degree assessments (i.e., performance-appraisal data collected from “all around” an employee’s peers, subordinates, supervisors, and self [“businessDictionary,” 2015]) over four years that looked at average versus high performers’ productivity found that exceptional contributors as compared to good contributors showed the following leadership behaviors:

Set stretch goals and adopted high standards for themselves (the single most powerful differentiator) Worked collaboratively Volunteered to represent the group Embraced change rather than resisted it Took initiative Walked the talk Used good judgment Displayed personal resilience Gave honest feedback

This book includes both classical and contemporary leadership studies, which focus on leaders and followers in formal organizational settings. But consider that you are a leader, even if you are not the CEO of an organization. After all, you must lead yourself, and you may have to lead your family, team, peers, supervisors, suppliers, vendors, and others at some point during your life. Many individuals are capable of leadership. Leadership can be learned and developed (Jago, 1982); it is not an innate set of characteristics granted to chosen individuals.

In addition to current, relevant leadership skills and concepts, the chapters that follow pre sent a historical overview of major theories and approaches that have shaped and continue to shape leadership research and practice. As the organizing framework in Figure 1.1 shows, you will learn about leaders as persons and individuals through personalities, traits, and abilities that are thought to distinguish leaders from nonleaders (“great man” theory and trait theory). Then effective leadership styles and processes (style and behavior approaches) are explained, and how these styles interact with different work environments (situational and contingency approaches) is covered.

You will have an opportunity to see practical models and assessments that management consultants use, and to pro�ile yourself using short assessments. The assessments are designed to help you understand what type of leader best suits your style and professional needs, and to help you understand what type of leader you are, or wish to be. Warren Bennis, a renowned pioneer in executive leadership education and consulting, noted that “leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential” (Barini, 2007 pg. 165).

Because leadership does not exist in a vacuum, you will learn about effective communication, con�lict management, persuasion, and other processes that leaders use to in�luence not only followers but also organizations and systems. You will also understand what it means to also be a better follower. The subject of leadership really is everybody’s business.

Assessment 1.2: Are You a Leader or a Manager?

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Instructions

Questions 1–6 are about you right now. Questions 7–14 are about you if you were one day the head of a major department at a corporation. Answer “Mostly False” or “Mostly True” to indicate whether the item describes you accurately, or whether you would strive to perform each activity as a department head.

Now

Mostly False Mostly True

1. When I have a number of tasks or homework assignments to do, I set priorities and organize the work to meet the deadlines.

2. When I am involved in a serious disagreement, I hang in there and talk it out until it is completely resolved.

3. I would rather sit in front of my computer than spend a lot of time with people.

4. I reach out to include other people in activities or discussions.

5. I know my long-term vision for career, family, and other activities.

6. When solving problems, I prefer analyzing things myself to working through them with a group of people.

Head of Major Department

Mostly False Mostly True

7. I would help subordinates clarify goals and ways to reach them.

8. I would give people a sense of long-term mission and higher purpose.

9. I would make sure jobs get out on time.

10. I would scout for new product or service opportunities.

11. I would give credit to people who did their jobs well.

12. I would promote unconventional beliefs and values.

13. I would establish procedures to help the department operate smoothly.

14. I would verbalize the higher values that the organization and I stand for.

Scoring and Interpretation

Count the number of “Mostly True” answers to even-numbered questions: _______________.

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Count the number of “Mostly True” answers to odd-numbered questions: _______________. Compare the two scores.

The even-numbered items represent behaviors and activities typical of leadership. Leaders are personally involved in shaping ideas, values, vision, and change. They often use an intuitive approach to develop fresh ideas and seek new directions for the department or organization. The odd-numbered items are considered more traditional management activities. Managers respond to organizational problems in an impersonal way, make rational decisions, and work for stability and ef�iciency.

If you answered yes to more even-numbered than odd-numbered items, you may have potential leadership qualities. lf you answered yes to more odd-numbered items, you may have management qualities. Management qualities are an important foundation for new leaders because the organization �irst has to operate ef�iciently. Then leadership qualities can enhance performance. Both sets of qualities can be developed or improved with awareness and experience.

Sources: Kotter, J. P. (1996). Leading change. Boston, MA: Harvard Business School Press (p. 26); Rost, J. C. (1993). Leadership for the Twenty First Century. Westport, CT: Praeger (p. 149); B. Dumaine (1993). The New Non-Manager Managers. Fortune, 127(4), 80–84.

NOTES 1. Avolio, B. (1999). Full leadership development. Thousand Oaks, CA: Sage Publications. This section is based on

Avolio’s book. 2. Barry, L., C. Benko, D. Foley, J. Hagel, D. Helfrich, T. Hodson, S. Holland, M. Stephan, H. Stockton, A. van Berkel, B.

Walsh, and J. Wong, (Eds). (2014). Global human capital trends, engaging the 21st century workforce. A report by Deloitte Consulting LLP and Bersin by Deloitte. Note: Different parts of this introduction are based on this report.

3. Ibid., p. 5.

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Summary & Resources

Chapter Summary Leadership—part art, part science—is the ability to in�luence followers to achieve common goals through shared purposes. Leadership is in urgent demand, globally and locally. Young aspiring and emerging leaders are particularly in demand because they can grow and develop with certain organizations that seek high-demand skills. But in a very real sense, everyone is a leader to some degree. Everyone has to lead themselves—as followers, family members, and members of society that are becoming more global and competitive, demanding abilities that leaders must demonstrate.

Understanding leadership in organizations involves observing it as a �ield that includes overlapping and interrelated relationships among persons, processes, and systems as illustrated in Figure 1.1, the roadmap for this text. Effective and ef�icient leaders understand themselves �irst and then understand others. Leaders require personal knowledge of ethics, personality, abilities, vulnerabilities, and blind spots. To successfully in�luence others, leaders require a capacity for emotional and intellectual intelligence and an ability to persuade, communicate, and listen. It is necessary to understand the processes of leadership (i.e., styles, roles, methods, procedures) because leaders’ ways of communicating, negotiating, and decision making help determine their effectiveness with particular followers, tasks, and environments. At the organizational level, higher level leaders must help de�ine and guide an organization’s strategies, culture, ethics, and social responsibility with stakeholders and stockholders. Leaders are called on to model the cultural values and characteristics that they want others to help create and follow. These systems (strategy, culture, goals), together with individual leaders and their teams’ processes, help explain how effectively and ef�iciently organizations respond to their external environment’s competitive demands.

As you read this text, you are invited to participate in leadership as a process of self-discovery. You will learn to observe and analyze leadership characteristics (or the need for such) in others around you, in organizations you may already work, study, and belong to. Begin with a very important question: Are you a leader or a manager? This is a �irst step toward awakening your interest and identifying your strengths and needed areas of development in this process of becoming a leader. Then as you read about the roles leaders assume, you can consider which of those you need to learn and why. The assessments and chapters in the text provide you with awareness and information about the skills these different roles require.

Web Resources Imagine Leadership

http://www.youtube.com/watch?v=TuuTlQ0FzEU (http://www.youtube.com/watch?v=TuuTlQ0FzEU)

What does leadership mean to you? XPLANE and Harvard Business School offer an introductory video.

CEO Brain Scans

http://www.bbc.co.uk/news/business-11730685 (http://www.bbc.co.uk/news/business-11730685)

What makes a good leader? The BBC examines the brain scans of CEOs to see if anything can be revealed.

Leadership Versus Management

http://www.build-creative-writing-ideas.com/stephen-covey-leadership-versus-management.html (http://www.build-creative-writing-ideas.com/stephen-covey-leadership-versus-management.html)

A writer looks at the difference between leadership and management.

Critical Thinking Questions 1. Do you agree with the de�inition of leadership? What would you add or change and why?

http://www.youtube.com/watch?v=TuuTlQ0FzEU
http://www.bbc.co.uk/news/business-11730685
http://www.build-creative-writing-ideas.com/stephen-covey-leadership-versus-management.html
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2. Argue for and against this statement: “Everyone is to some extent and in some ways a leader.” Argue for and against this statement: “Leaders are born, not made.”

3. In which particular leadership and managerial roles do you excel? In which do you need development? Explain. 4. In what ways is emergent leadership important and why? Also, in what ways could emergent leadership be

problematic, and for whom? Why? 5. Explain why leadership is important, and to whom? 6. Do you consider yourself more a manager or a leader? Explain. Which would you aspire to be, a leader or

manager? Why? 7. What do you believe it takes to become a higher level, formal leader in an organization, perhaps one in which you

have, had, or wish to work? Explain.

Key Terms

decisional role set

disseminator

disturbance handler

emergent leadership

entrepreneur

�igurehead

followers

informational role set

interpersonal role set

liaison

monitor

negotiator

resource allocator

spokesperson

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2 Ethical Leadership

iStock/Thinkstock

Learning Outcomes

After completing this chapter, you should be able to:

1. De�ine ethical, values-driven leadership.

2. Explain moral maturity of leadership.

3. Describe the relationship among emotions, moods, and ethics.

4. Identify seven ethical decision-making approaches to questionable situations.

5. Explain authenticity and its relationship to ethics.

6. Describe the responsibilities of ethical leadership.

7. Explain symptoms of unethical leadership.

8. Describe stewardship and servant leaders as ethical leadership styles.

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Justin Sullivan/Getty Images News/Thinkstock

Gap is one of the honorees given the “World’s Most Ethical Companies” title.

Ethics and Leadership

The “World’s Most Ethical Companies” title is awarded to selected �irms nominated and vetted by the Ethisphere® Institute, which is described as “the global leader in de�ining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust, and business success” (“100 Best Companies,” 2014). In 2015, the 132 honorees came from 21 countries, 5 continents, and over 50 industries. Nominations are accepted from a globally diverse population of �irms. Companies are evaluated to be ethical (“EQ” score) based on criteria from a rigorous scoring methodology: 35% of the score is based on a �irm’s ethics and compliance program; 20% derives from a �irm’s corporate citizenship and responsibility; 20% is awarded on the culture of ethics; 15% relates to governance; and 10% measures a company’s leadership, innovation, and reputation.

A sample of 2015 honoree �irms includes Gap, Levi Strauss, A�lac, Novation, Marriott, FordTM, Banco do Brasil S.A., Dell, Google, Accenture, TIAA-CREF, L’ORE� AL, and Principal Financial Group (“Ethisphere®,” 2015). President and Chief Operating Of�icer, Dan Houston, of Principal Financial Group, one of only four life insurance companies in that sector to be named a 2015 honoree, said, “A sense of responsibility guides this company and our people, driving us to do the right things for each of our stakeholders. . . . It translates into: quality and value for customers; diversity and inclusion in the workplace; full, fair, timely disclosure for shareholders; and signi�icant involvement in our communities” (“Principal Financial Group,” 2015).

Videos from leaders of a sample of these companies offer testimony to being and becoming one of the world’s most ethical companies (http://ethisphere.com/worlds-most-ethical/insights-from- honorees/#C11 (http://ethisphere.com/worlds-most-ethical/insights-

from-honorees/#C11) ).

So, what do ethics have to do with leadership? Scholars have been looking into this question for decades. Some feel ethics are in fact at the core of what leadership inherently is. Ciulla (2005) wrote:

The de�inition question in leadership studies is not really about the question ‘‘What is leadership?’’ It is about the question ‘‘What is good leadership?’’ By good, I mean morally good and effective. This is why I think it is fair to say that ethics lies at the heart of leadership studies. (p. 17)

Striking a similar note, Gardner, Avolio, Luthans, May, and Walumba (2005) claimed, “Leaders worthy of the name, whether they are university presidents or senators, corporation executives or newspaper editors, school superintendents or governors, contribute to the continuing de�inition and articulation of the most cherished values of our society. They offer, in short, moral leadership” (p. 121). If leadership is understood in this way, as a virtuous endeavor that uplifts people and communities, then there must be an “intrinsic connection between leadership and ethics” (Boaks & Levine, 2014, p. 241).

However, we know leaders do not always adhere to such high moral standards, nor do they always uplift those around them. Over the past couple of decades, top-level corporate leaders have in some respects become synonymous with corruption, scandal, and a lack of ethics. Disastrous CEO led actions ruined great companies such as Enron, Tyco, WorldCom, and others, and the leader-led 2008 subprime lending crisis resulted in the Great Recession. Such instances of unethical behavior complicate our understanding of what leadership is, how it should be de�ined, and what its relationship is to morality and virtue.

The National Business Ethics 2013 survey of the U.S. workforce showed that while overall observed misconduct on the job decreased to 41%, down from 55% reported six years ago, it also reported that 60% of misconduct involved “someone with managerial authority from the supervisory level to top management” (“Ethics Resource Center,” 2014, p. 13). Twenty-four percent of observed misconduct involved senior managers and 12% of misconduct was reported company-wide. Retaliation against those who report misconduct also continues to be a widespread problem. Examples of misconduct and reported ethical violations included, “Accepting inappropriate gifts or kickbacks from suppliers or

http://ethisphere.com/worlds-most-ethical/insights-from-honorees/#C11
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vendors; . . . lying to customers, vendors, or the public; Improper hiring practices; falsifying invoices, books, and/or records; . . . breaching employee privacy; discriminating against employees; sexual harassment; and retaliation against someone who has reported misconduct” (“Ethics Resource Center,” 2014, p. 43). These many instances of unethical behavior and practices underscore the message that legal compliance along with ethics is also a necessity in all organizations, particularly large corporations.

Studies show that both “the carrot” and “the stick” (ethical and compliance) approaches work best to prevent and decrease misconduct at the top as well as at lower levels of organizations. However, compliance and punishment alone cannot prevent or decrease unethical and illegal behaviors without strong ethical leadership at the top supported by responsible boards of directors with ethics and compliance of�icers working with CEOs to bolster ethical cultures (“Ethics Resource Center,” 2014; “Society of Corporate Compliance,” 2014). Leaders set the moral “tone” in organizations, sending the message that ethics count (Leigh, 2013)—at least, as Ciulla puts it in the opening passage, good leaders do. Acting in an ethically responsible way bene�its management and employees alike and also protects stockholders, stakeholders, and the public from economic harm.

Still, even though ethics begins with individual leaders, everyone in an organization is responsible for their ethical behavior. There is, for example, an ethical dimension in each part of Figure 1.1, Persons, Processes, and Systems (in Chapter 1). Personality, character, leadership styles, and follower relationships re�lect ethics. Leaders’ communication, negotiations, ways of in�luencing, and uses of power also embody ethics. The trust between followers and leaders is based on ethical actions. An organization’s vision, mission, and stated values—and especially the culture—all reveal ethical orientations.

You will learn to assess your ethics, values, and beliefs in this chapter and also learn to recognize the ethical dimensions in leaders’ and organizational processes and systems related to leadership as you progress through this text.

We turn next to better de�ining ethical leadership; then present the dynamics of authenticity of leaders, which in�luences leadership in relation to persons, processes, and the systems they help create and in�luence. The last section examines the characteristics and responsibilities of ethical leadership as well as the symptoms of unethical leadership before delving into two types of ethical leadership: stewardship and servant leadership.

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Alexey Klementiev/iStock/Thinkstock

Top-level leaders in the U.S. Army who created an ethical culture and guidelines at the top in�luenced all levels of that organization.

Senator Elizabeth Warren discusses what happens when the leaders work more for the elite few than for the common good.

Who Fights for Middle Class Values?

2.1 Ethical and Values-Based Leadership De�ined Ethics is generally de�ined as motivations or actions that are based on ideas of what is right and wrong, but ethics also encompass the values and morals that an individual, society, or institution deem acceptable and desirable. Business ethics is grounded in this general de�inition but relates more speci�ically to “The study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and �iduciary responsibilities” (Investipedia.com, 2015). It follows, then, that ethical business leadership in organizations, especially those that are business related, involves acting with moral purpose and integrity to do what is right, just, and fair in service of the common good toward stakeholders, stockholders, and the broader society. In revisiting our original de�inition of leadership—the ability to in�luence followers to achieve common goals through shared purposes in the multidimensional context of persons, processes and systems— we can see how ethics can be factored into every aspect of leadership, as discussed earlier. Leaders should be fair, rather than self-serving, when they in�luence followers and should take the common good into consideration as they work toward goals.

Ethical leadership begins with the individual, but it also requires the involvement of boards of directors, other of�icers in companies, directors, managers, and supervisors who can model and in�luence others’ behaviors, as discussed in later chapters. A leader decides to act ethically based on personal values, principles, and convictions, and the leader’s behaviors are the starting point for cascading ethics throughout the organization.

Two examples of ethical leadership depicted in Figure 1.1, Persons, Process, Systems, show that leadership does cascade throughout an organization. One example illustrates that top-level leaders in the U.S. Army who created an ethical culture and guidelines at the top that were clearly communicated in�luenced all levels (2,572 soldiers) of that organization (Schaubroeck et al., 2012). Another study (Ogunfowora, 2014) found that ethical leadership was more strongly and positively associated with unit-level organizational citizenship behavior (OCB) and individual-level job satisfaction with 297

employees in 58 work units that reported higher (versus lower) leader role modeling. The study concluded that “ethical leaders should facilitate vicarious learning through the different stages described above. In so doing, employees should perceive ethical leaders as role models of ethical workplace conduct” (Ogunfowora, 2014, p. 1475).

Values-based leadership is based on a leader’s in�luence and relationship with followers through internalized, shared values focused on the common good. Scholars have identi�ied and linked values to ethical leadership and management (Yunus & Weber, 2010; Muscat & Whitty, 2009; Dean, 2008). Although this observation is certainly not new, it is important to recognize that values greatly in�luence leaders’ and managers’ thinking, decisions, in�luence, and actions with followers and stakeholders. As the opening introduction about the world’s most ethical companies shows, values are an integral part of leaders’ and followers’ effectiveness.

Copeland’s literature review of values-based leadership (2014) sums it up this way:

History has demonstrated repeatedly that leaders who lack ethical and value based dimensions can have serious adverse consequences on their

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Critical Thinking Questions

What happens when leaders do not share, protect, and defend values of followers in business, government, and other institutions? Do you agree or disagree with the arguments made in this �ilm clip? How does this �ilm clip exemplify values based leadership discussed in the text?

followers, their organizations, our nation and the world. . . . leaders who exhibit authentic, ethical and transformational leadership are more effective than their counterparts who lack a values based dimension to their leadership. (pp. 130–131)

Although speci�ic values and ethical principles are presented in this chapter, values-based leadership here generally refers to treating followers and others with respect, dignity, fairness, and a concern for the common good versus serving one’s own interests and short-term needs. Knowing our own values is also a major part of leadership development. Take the Personal Values Assessment (PVA) online (https://survey.valuescentre.com/survey.html? id=s1TAEQUStmyj76ns_QmrKw&locale=en (https://survey.valuescentre.com/survey.html? id=s1TAEQUStmyj76ns_QmrKw&locale=en) ). A summary and pro�ile of your current major values will be emailed to you. This assessment can be helpful when you articulate the principles you use in solving ethical dilemmas.

Struggling Middle Class From Title: Moyers & Company: Elizabeth Warren, Fighting B...

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1/11/2019 Print

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2.2 Moral Maturity of Leaders Also important are leaders’ and their executive teams’ level of moral maturity, which from recent corporate scandals seem to be lacking. Morally mature, ethical leaders cannot only avoid widespread harm but also take companies to new heights, as we discuss later in this chapter. As you read this section, identify your own level of moral maturity and that of your current or past supervisors and leaders.

A still popular model of moral development is Kohlberg’s three levels of moral maturity and development (1958; 1984), which include six stages that provide a guide for observing an individual’s level of moral maturity in everyday life and organizational settings. This model provides a viable framework to assess ethical reasoning not only in leadership positions but also in all levels of an organization. It should be noted, however, that whether, and to what extent, ethical education and training contribute to moral development in later years is not yet known.

Level 1: Preconventional Level (Self-Orientation)

Stage 1: Punishment avoidance: avoiding punishment by not breaking rules. The person has little awareness of others’ needs. Stage 2: Reward seeking: acting to receive rewards for oneself. The person has awareness of others’ needs but not of right and wrong as abstract concepts.

Level 2: Conventional Level (Others Orientation)

Stage 3: Good person: acting “right” to be a “good person” and to be accepted by family and friends, not to ful�ill any moral ideal. Stage 4: Law and order: acting “right” to comply with law and order and norms in societal institutions.

Level 3: Postconventional, Autonomous, or Principles Level (Universal, Humankind Orientation)

Stage 5: Social contract: acting “right” to reach consensus by due process and agreement. The person is aware of relativity of values and tolerates differing views. Stage 6: Universal ethical principles: acting “right” according to universal, abstract principles of justice and rights. The person reasons and uses conscience and moral rules to guide actions. (Weiss, 2014, p. 76)

Although most people can behave at the third level, only 20% seem to do so. Most individuals behave at the conventional, or second, level. It is important to note that his theory also has its critics who argued that individuals do not actually pass through stages of such development (Rest, 1979); and, Gilligan (1977) claimed that Kohlberg’s theory is sexually biased because he reasoned from an “ethics of justice” whereas women take an “ethics of care” approach (McLeod, 2011). Snarey (2007) also examined Kohlberg’s arguments in a survey of 45 cross-cultural studies in 27 countries. Snarey used Kohlberg’s dilemma method of stage assessment and found that Kohlberg “identi�ied a basic stage trend, but also the cultural speci�icity of Kohlberg’s highest stages. As a remedy, Snarey proposed a culturally inclusive elaboration of the highest stages” (p. 443). Research continues to examine Kohlberg’s methods from gender and multicultural cultural frameworks. Despite its limitations, the model can prove useful as a starting point for examining and discussing moral maturity of leaders and followers.

1/11/2019 Print

https://content.ashford.edu/print/AUMGT380.15.1?sections=title,navpoint-2,preface,ch01,ch01sec1.1,ch01sec1.2,ch01sec1.3,ch01sec1.4,ch01sec… 29/337

2.3 Emotions, Moods, and Ethics Although most individuals like to think they make decisions based on reason and cognition, a stream of research indicates that emotions and moral attitudes also in�luence behavior (De Hooge, Nelissen, Breugelmans, & Zeelenberg, 2011; Hutcherson & Gross, 2011; Haidt, 2007; Robbins & Judge, 2015). Leaders, then, might be making decisions on factors other than the logical reasoning they often pride themselves on. This is important information for any strong leader to be aware of.