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6-1 Chapter 6 Leadership and Values “Leadership cannot just go along to get along… Leadership must meet the moral challenge of the day.” ~Jesse Jackson McGraw-Hill/Irwin copyright © 2009 by The McGraw-Hill Companies, inc. All Rights Reserved 1-2 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. 6-3 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. 6-4 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. 6-5 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. 6-6 People Vary in the Relative Importance They Place on Values 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–) 6-8 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 6-9 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. 6-10 Developmental Levels and Stages of Moral Reasoning 6-11 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. 6-12 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. 6-13 Key Work Values 6-14 Leadership Values Profile 6-15 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. 6-16 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 6-17 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. 6-18 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. 6-19 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. 6-20 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 6-21 Leader Attributes and Behaviors Universally Viewed as Positive and Negative 6-22 Examples of Leader Behaviors and Attributes That Are Culturally Contingent 6-23 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. 6-24 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. 6-25