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Chapter 10 Becoming an Effective Leader

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Learning Objectives

After reading and studying this chapter and completing the exercises, you should be able to

1. Identify key leadership traits for personal development.

2. Develop several attitudes and behaviors that will help you appear charismatic.

3. Develop your team leadership skills.

4. Understand how you can develop your leadership potential.

Patricia Elizondo holds the position of senior vice president for Global Sales Integration at Xerox Corporation, and she is therefore a business executive with enormous responsibility. Her key leadership principle focuses on how she can help other people: “Constant learning, sharing, and reaching out to help others succeed.” Among the accolades she has received is recognition as a member of Hispanic Business Magazine’s Top 25 Elite.

Elizondo believes that a key role of a leader is to make a difference one employee at a time, such as helping an employee develop new skills or get promoted. Lora J. Villarreal, executive vice president and chief people officer at Xerox, had this to say about Elizondo: “Patricia exceeds the qualities of an executive leader. She constantly demonstrates perseverance, commitment, and willingness to go beyond the call of duty in all undertakings.”

Five basic principles are the foundation of Elizondo’s life, career, and approach to leading others. First, it is necessary to embrace change and be flexible because so much change takes place in organizations of all types. Second, collaborate and build bridges in order to advance your ideas and move your projects forward. Third, seek knowledge, because knowledge makes you powerful and gives you substance. Fourth, demonstrate measurable value, because knowledge alone is not as useful as achieving and accomplishing something with that knowledge. Fifth, know what you want by having your personal definition of success.

Elizondo’s first professional position was as a customer service representative at the Indiana University Credit Union. She received a bachelor’s degree in finance from the Kelley School of Business at Indiana University and a master’s degree in business administration from Notre Dame University. [1]

s in the story just presented, effective leaders have a combination of admirable qualities, including expertise, a passion to succeed, high energy, and the ability to inspire others. In working toward improving your leadership ability, the following definition is a goal to strive for. Leadership is the ability to inspire support and confidence among the people who are needed to achieve company goals. A company president might have to inspire thousands of people, while a team leader is concerned with inspiring about six people. Both of these leaders nonetheless play an important role.

Leadership has also been defined in many other ways. An analysis of 221 definitions of leadership concluded that they basically all say the same thing—leadership is about one person getting one or more other people to do something. [2] The something usually refers to attaining a worthwhile company goal. In other words, the leader makes a difference.

Becoming a leader does not necessarily mean that the company has to put you in charge of others (or assign you a formal leadership position). Shortly after Sergio Marchionne became the CEO of the combined Fiat and Chrysler automotive company, he said that the company’s chances for success depended in part on a culture “where everyone is expected to lead.” [3] You can also rise to leadership when people come to respect your opinion and personal characteristics and are thus influenced by you. Emergent leaders are group members who significantly influence other group members, even though they have not been assigned formal authority. [4] You therefore can exert some leadership by being an influential coworker.

Emergent leaders

Group members who significantly influence other group members, even though they have not been assigned formal authority.

Your greatest opportunity for exerting leadership will come about from a combination of holding a formal position and exerting personal influence. An individual with appealing personal characteristics and expertise who is placed in a position of authority will find it relatively easy to exert leadership.

The purpose of this chapter is twofold. One is to make you aware of the basic concepts you need to become a leader. The other purpose is to point you toward developing skills necessary for leadership effectiveness.

ey Leadership Traits to Develop

Learning Objective 1

An important part of being an effective leader is to have the right stuff. This section and the following one about charisma describe personal attributes that help a person lead others in many situations. Recognize, however, that radically different situations require a different set of leadership characteristics. For example, a leader might have to be more assertive with group members performing distasteful work than with those whose work is enjoyable. Even if traits are but one facet of understanding leadership, they play an important role. Traits help explain individual differences in leadership.[5] For example, an assertive and self-confident leader will be able to take decisive actions.

Each of the ten leadership traits described next, and shown in Figure 10-1, can be developed. For such development to take place, you need to be aware of the importance of the personal characteristic, and then monitor your own behavior to make progress. To assist you with such development, the description of each trait is accompanied by a suggestion for improvement.

Self-Confidence and Leadership Efficacy

In virtually every leadership setting, it is important for the leader to be realistically self-confident. A leader who is self-assured without being bombastic or overbearing instills confidence in group members. Self-confidence was among the first leadership traits researchers identified. Research with leaders in many situations has continued to underscore the importance of this trait. A series of research studies have shown that increased self-confidence can bring about improvement in performance, including helping a group attain its goals.[6] Self-confidence is not only a personality trait. It also refers to the behavior a person exhibits in a number of situations. It is similar to being cool under pressure. We can conclude that a person is a self-confident leader when he or she retains composure during a crisis, such as when the company suffers flood damage during a busy season.

Figure 10-1 Ten Key Leadership Traits

People who possess the traits listed are usually well suited to being effective leaders; however, many other traits and behaviors are also important contributors to effective leadership.

The inclusion of a feeling of efficacy in combination with self-confidence helps better pinpoint how confidence works. Leadership efficacy is a form of efficacy associated with confidence in the knowledge, skills, and abilities valuable for leading others. In essence, the leader is confident that he or she has the tools necessary to lead a group. Another insight into leadership efficacy is that it helps the leader step up to meet his or her challenges.[7] The confidence therefore extends beyond attitudes about the self. A leader who had been a successful racquet sports director at one athletic club might have the leadership efficacy to carry out the many aspects of that role at another club.

You can appear more self-confident to the group by using definitive wording, maintaining good posture, and making appropriate gestures such as pointing an index finger outward. Developing self-confidence is a lifelong process of performing well in a variety of situations. You need a series of easy victories to establish self-confidence. Further development of your self-confidence requires performing well in challenging circumstances. Taking risks, such as volunteering to work on an unfamiliar project, contributes to self-confidence when the risk proves to be worthwhile. As your self-confidence builds in several situations, you will also develop a strong sense of leadership efficacy.

Self-confidence and leadership efficacy make a stronger contribution to leadership effectiveness when they are combined with a sense of humility, including not being arrogant. Humility in a leader would include such actions as asking for advice from subordinates, asking for input, and apologizing for mistakes. Listening to others is therefore a key component of being humble.[8]

Positive Core Self-Evaluations

The core self-evaluations was described in Chapter 2 as closely related to self-esteem. In more detail, the core self-evaluations captures a person’s self-assessment. Its four components are (1) self-esteem, (2) locus of control, (3) self-efficacy, and (4) emotional stability (low neuroticism).[9] Except for locus of control, these traits have already been defined in Chapter 2. In addition, we described how self-esteem in the form of self-confidence can be developed.

Locus of control deals with the way people look at causation in their lives. If you believe that you are controlled mostly by outside events beyond your control, you would have an external locus of control. A marketing specialist with an external control might say, “Our computer system is down today, so there is nothing constructive I can do. I’ll just wait until the system is running again.” With an internal locus of control, the marketing specialist might say, “The computer is down, which will slow me down. However, I’ll work on whatever I can do that does not require the company computer. I can do some research on markets in Latin America with my smartphone.”

An internal locus of control is better for leadership than an external locus of control. Leaders who believe that they can control events are more likely to inspire others and provide direction. High emotional stability is better for leadership than low emotional stability. Anyone who has ever worked for an unstable supervisor will attest to the importance of emotional stability as a leadership trait. Emotional stability is important for a leader because group members expect and need consistency in the way they are treated.

A useful tactic for developing an internal locus of control is to examine challenging situations, and search for what aspect of those situations might be in your control. The department leader might be informed that because of low profits, salaries will be frozen for the next year. The leader might say, “Okay, external events have created conditions for discontent in my department. However, I can still use recognition and interesting work assignments to boost morale.” Emotional stability is difficult to develop, but people can learn to control many of their emotional outbursts. People who cannot control their emotions, yet still want to become leaders, should seek assistance from a mental health professional.

Assertiveness

A widely recognized leadership trait is assertiveness, being forthright in expressing demands, opinions, feelings, and attitudes. As a leader, is is vital to not be vague about what you expect from others. If you are self-confident, it is easier to be assertive with people. An assertive team leader might say, “I know that the ice storm put us out of business for four days, but we can make up the time by working smart and pulling together. Within 30 days, we will have met or surpassed our goals for the quarter.” This statement reflects self-confidence in her leadership capabilities and assertiveness in expressing exactly what she thinks.

assertiveness

Being forthright in expressing demands, opinions, feelings, and attitudes.

Assertiveness helps leaders perform many tasks and achieve goals and is especially important for pointing group members or team members in the right direction. In the words of Enrique Salem, the president and CEO of the computer security company Symantec, “Somebody has to make the call.”[10] For example, the department head might say, “We only have so much left in our budget, so we will purchase a new couch for the lounge instead of purchasing a machine for brewing gourmet coffee.”

Assertiveness also facilitates confronting group members about their mistakes, demanding higher performance, and setting high expectations. An assertive leader will also make legitimate demands on higher management, such as asking for equipment needed by the group.

To be assertive differs significantly from being aggressive or passive (or nonassertive). Aggressive people express their demands in an overly pushy, obnoxious, and abrasive manner. Passive people suppress their own ideas, attitudes, feelings, and thoughts as if they were likely to be perceived as controversial. Nonassertive people are also too accommodating. A series of three studies with a variety of workers indicated that leaders with moderate assertiveness were considered more effective than leaders low (passive) or high (aggressive) in this trait.[11]

Developing assertiveness is much like attempting to become less shy. You must force yourself to take the opportunity to express your feelings and demands. For example, if something a teammate does annoys you, make the statement, “I enjoy working with you in general, but what you are doing now annoys me.” You can also practice expressing positive emotion, such as telling a coworker, “I’m happy that you and I are working on this project together, because I like your approach to work.”

Expressing demands is easier for most people to practice than expressing feelings. People who do start expressing their demands are often surprised at the result. For example, if you are contemplating the purchase of an item that is beyond your budget, try this statement: “I like this product very much. Yet all I have to spend is $100 below your asking price. Can we do business?” For a reading on your own level of assertiveness, take Self-Assessment Quiz 10-1.

Self-Assessment Quiz 10-1

The Assertiveness Scale

Directions:

Check whether each of the following statements is mostly true or mostly false as it applies to you. If in doubt about your reaction to a particular statement, think of how you would generally respond.

Mostly true Mostly false

1. It is extremely difficult for me to turn down a sales representative if he or she is a nice person.

2. I express criticism freely.

3. If another person were being very unfair, I would bring it to his or her attention.

4. Work is no place to let your feelings show.

5. There’s no use in asking for favors; people get what they deserve.

6. Business is not the place for tact; say what you think.

7. If a person looked as if he or she were in a hurry, I would let that person in front of me in a supermarket line.

8. A weakness of mine is that I’m too nice a person.

9. I usually give other people what they want, rather than do what I think is best, just to avoid an argument.

10. If I was trying to study in a library, and the person next to me was talking loudly on her phone, I would bring my problem to his or her attention.

11. People would describe me as too outspoken.

12. I am quite willing to return merchandise that I find has even a minor blemish.

13. I dread having to express anger toward a coworker.

14. People often say that I’m too reserved and emotionally controlled.

15. Nice guys and gals finish last in business.

16. I fight for my rights down to the last detail.

17. I have no misgivings about returning an overcoat to the store if it doesn’t fit me right.

18. After I have an argument with a person, I try to avoid him or her.

19. I insist on my spouse (or roommate or partner) doing his or her fair share of undesirable chores.

20. If someone posted a nasty comment about me on Facebook, I would not tell him or her that I am angry.

21. I have cried among friends more than once.

22. If someone near me at a movie kept up a conversation with another person, I would ask him or her to stop.

23. I am able to turn down social engagements with people I do not particularly care for.

24. It is in poor taste to express what you really feel about another individual.

25. I sometimes show my anger by swearing at or belittling another person.

26. I am reluctant to speak up at a meeting.

27. I find it relatively easy to ask friends for small favors, such as giving me a ride to work while my car is being repaired.

28. If another person was talking very loudly in a restaurant, and it bothered me, I would inform that person.

29. I often finish other people’s sentences for them.

30. It is relatively easy for me to express love and affection toward another person.

Total Score

Scoring and Interpretation:

The answers for determining your assertiveness are as follows:

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Scoring and Interpretation:

Score yourself a 11 for each of your answers that agrees with the scoring key. If your score is 15 or less, it is probable that you are currently nonassertive. A score of 16 through 24 suggests that you are assertive. A score of 25 or higher suggests that you are aggressive. Retake this quiz about 30 days from now to give yourself some indication of the stability of your answers. You might also discuss your answers with a close friend to determine whether that person has a similar perception of your assertiveness.

Trustworthiness, Morality, and Authenticity

Group members consistently believe that leaders must display honesty, integrity, and credibility—and therefore be trustworthy. Right Management Consultants conducted a survey of 570 employees in which they found that white-collar workers value honesty and integrity in a manager more than any other trait. When asked, “What is the most important trait or attribute that the leader of your company should possess?” 24 percent of the survey participants cited honesty, and 16 percent named integrity/morals and ethics.[12] Leaders themselves believe that honesty makes a difference in their effectiveness.

It is almost an axiom in leadership studies that integrity is important for effective leadership. (Leaders who are trustworthy typically have high integrity.) Like most concepts in human relations, integrity has several connotations. Yet, the two key meanings of integrity are (a) consistency of words and deeds and (b) being true to oneself. [13] Being true to oneself refers to sticking with one’s principles, such as a sales manager who preaches high ethics not giving kickbacks to customers for the purpose of closing a sale.

Being honest with team members helps build trust, which in turn leads to good cooperation and team spirit. To trust group members, the leader has to be willing to give up some control over them, such as letting group members make more decisions and not challenging their expense accounts.

Being moral is closely linked to trustworthiness because a moral leader is more likely to be trusted. A leader with high morality would perceive that he or she had an ethical responsibility to group members, as well as outsiders.[14] The moral leader would therefore not give preferential treatment to workers with whom he had an outside-of-work friendship. At the same time, the moral leader would not try to fool customers or make up false excuses for not paying bills on time to suppliers.

A highly recommended way of communicating trustworthiness is through setting a good example. Alan Deutschman, a leadership consultant, argues that leaders are most effective when they rely on the power of their example. A classic example is that Ray Kroc, the founder of McDonald’s, listed cleanliness as one of the chain’s three key values (along with service and quality). An employee remembered Kroc personally picking up trash around the restaurant and scraping up gum with a putty knife.[15]

Closely related to leadership trust and morality is the idea of authentic leadership. An authentic leader is genuine and honest about his or her personality, values, and beliefs, as well as having integrity. He or she also creates a positive ethical climate. Among the specific behaviors of an authentic leader are the following:[16]

authentic leader

A leader who is genuine and honest about his or her personality, values, and beliefs as well as having integrity.

Clearly states what he or she means

Shows consistency between beliefs and actions

Admits mistakes when they occur

Guided by his or her moral standards

Encourages others to voice opposing points of view

A study with Army action teams suggested that authentic leaders tend to serve as attractive role models that motivate team members to emulate or model their exemplary conduct. (In an Army action team, the soldiers have specific functions to perform such as machine gunner or the individual who searches for hidden explosives.)[17] An example of authentic leadership in this context might be the squad leader making sure that no weapons were launched on defenseless people.

Chapter 15, about ethical behavior skills, provides details about honesty on the job. Being honest is an effective way of getting others to trust you. A starting point in developing a strong sense of honesty and morality is to follow a variation of the Golden Rule: Be as honest with others as you want them to be with you. Another key trust builder is to follow through on promises and commitments, because mistrust arises when a leader or manager does not do what he or she agreed to do.[18] For example, mistrust would quickly arise if the department manager did not follow through on requesting tuition reimbursements for several group members.

Skill-Building Exercise 10-1

The Witty Leader

Students gather in problem-solving groups of about five to invent humorous comments a leader might make in the following scenarios. After the problem-solving groups have formulated their witty comments, the comments can be shared and compared. Groups also have the option of deciding that a particular scenario is too grim for humor.

Scenario 1:

A store manager wants to communicate to employees that inventory slippage (merchandise stolen from the store by customers or store associates) has increased to an unacceptable level—twice the industry average.

Scenario 2:

A leader has to communicate to the group that salaries have been frozen for another year due to limited business. The leader knows that group members have been eagerly awaiting news about the salary increase.

Scenario 3:

The information technology head at a social media marketing firm detects that her own staff is spending an average of two hours per day accessing social media sites such as Facebook, Twitter, and Tumblr. She brings up the topic during a staff meeting.

Scenario 4:

A consulting firm that specializes in helping companies downsize their workforce has seen the demand for its services decline substantially in recent months. The company must therefore downsize itself. The company founder has to announce the layoff decision to the company.

Observers might rate the attempts at humor on a 1 (low) to 10 (high) scale. Observe also if any of the role players made you laugh.

Sense of Humor

A sense of humor borders between being a trait and a behavior. However you classify it, the effective use of humor is considered an important part of a leader’s role. Humor serves such functions in the workplace as relieving tension and boredom and defusing hostility. Because humor helps the leader dissolve tension and defuse conflict, it helps him or her exert power over the group. A study conducted in a large financial institution indicated that leaders who made frequent use of humor had higher-performing units. (Another interpretation is that it’s easier to laugh when the group is performing well!) Among the forms of humor used by the managers were “[using] humor to take the edge off during stressful periods” and “[making] us laugh at ourselves when we are too serious.”[19]

Self-effacing humor is the choice of comedians and organizational leaders alike. When you are self-effacing, nobody else is insulted or slighted, yet a point can be made. A solar heating general manager said to the tech writer, “I want you to explain the return on investment from solar panels so clearly that even a mathematically challenged person like me could follow the information.”

Creativity is required for humor. Just as creativity can be enhanced with practice, so can a sense of humor. To gather some experience in making humorous comments in the workplace, do Skill-Building Exercise 10-1.

Self-Awareness and Self-Objectivity

Effective leaders are aware of their strengths and limitations. This awareness enables them to capitalize upon their strengths and overcome their weaknesses. A leader, for example, might realize that he or she is naturally distrustful of others. Awareness of this problem cautions the leader to not distrust people without good evidence. Another leader might realize that he or she is adept at counseling team members. This leader might then emphasize that activity in an effort to improve performance. Self-objectivity refers to being detached or nonsubjective about your perceived strengths and limitations.

Ryan McVay/Getty Images

According to Kevin Eikenberry, the chief potential officer of a leadership consulting group, to be an outstanding leader requires the self-awareness to know who you are and to share that knowledge with the group. A key reason is that sharing who you are helps build connections with group members. [20] Sharing who you really are tends to bring people closer to you.

Another way in which self-awareness and self-objectivity contribute to leadership effectiveness is that these traits help a person become an authentic leader. “Being yourself” thus contributes to leadership effectiveness, assuming that you have personal qualities, such as those presented in this chapter, that facilitate leadership. Patricia Elizondo, the leader described in the chapter opener, appears to be an authentic leader.

You can enhance your self-awareness and self-objectivity by regularly asking for feedback from others. You then compare the feedback to your self-perception of your standing on the same factor. You might, for example, think that you communicate in colorful, interesting terms. In speaking to others about your communication style, you might discover that others agree. You can then conclude that your self-awareness about your communication skills is accurate.

Another technique for improving self-awareness and self-objectivity is to take several self-examination exercises, such as those found in this text. Even if they do not describe you exactly, they stimulate you to reflect on your characteristics and behaviors.

Cognitive Skills Including Critical Assessments

Cognitive skills (or general mental ability), as well as personality, is important for leadership success. To inspire people, bring about constructive changes, and solve problems creatively, leaders need to be mentally sharp.

Knowledge of the Business

A major reason that cognitive skills are important for leadership is that they enable the leader to acquire knowledge. The processing of knowledge is now considered to be the core competence (key ability) of organizations. The leader’s role is to both originate useful ideas and collect them from smart people throughout the organization.[21] Two cognitive skills were discussed in Chapter 2: cognitive ability and the personal factor of openness to experience. Another cognitive skill of major importance is knowledge of the business, or technical skill. An effective leader has to be technically or professionally competent in some discipline, particularly when leading a group of specialists. It is difficult for the leader to establish rapport with group members when he or she does not know what they are doing. A related damper on leadership effectiveness is when the group does not respect the leader’s technical skill.

A representative example of how knowledge of the business is helpful for occupying a leadership position took place at Wal-Mart Stores, Inc. when the company appointed Duncan Mac Naughton as chief merchandising officer. He had previously held key merchandising posts in Canada and the US. Upon being appointed, Mac Naughton explained how Walmart stores would now make better use of “action alley,” referring to in-aisle displays that feature price discounts and special promotions. Stocking Walmart.com was one of the new merchandising officer’s key responsibilities.[22]

Critical Assessments

Another major reason cognitive skills are so important for leadership is that they facilitate making critical assessments, or thinking critically, about challenges facing the group or entire organization. You will recall that critical thinking refers to making a judgment after analytically evaluating a problem. Almost any course you have ever taken is supposed to improve your critical thinking ability. Making a critical assessment often boils down to sizing up a situation and analyzing how the group can profit from this situation. For example, an IT security specialist might observe that as the company permits the increased use of personal electronic gadgets in the workplace for work purposes, new security measures must be established.

Independent Decision Making

High intelligence is particularly important for leaders when they have the opportunity to make decisions by themselves and provide direction (such as giving technical instructions) to group members. Problem-solving ability is less important when the leader delegates most of his or her responsibilities to others (or empowers them). High intelligence is important for three major aspects of the leader’s job. One aspect is dealing with tasks, such as developing ideas for cost cutting. A second aspect is working with and through other people, or the human-relations focus. The third is judging oneself and adapting one’s behavior accordingly as in self-awareness and self-objectivity.[23]

Increasing one’s mental ability, or raw intelligence, may not be easy to accomplish. Yet, people can develop their cognitive skills by continuous study and by working on challenging problems. The mere act of keeping up with developments in your field can keep you mentally sharp. The comments about enhancing cognitive skills in Chapter 2 are also relevant here.

Emotional Intelligence

Emotional intelligence, as described in Chapter 2, refers to the ability to recognize your emotions and those of people around you. Emotional intelligence also refers to being able to work effectively with the emotions of others to resolve problems, including listening and empathizing. As such, emotional intelligence is a blend of psychological skills that enable the leader to relate effectively to people. Research conducted by Daniel Goleman in many different firms suggests that superb leaders all have one trait in common: superb emotional intelligence.[24] Many other studies suggest that emotional intelligence combined with several of the other factors mentioned in this chapter contributes to leadership effectiveness.[25] A specific example is that an effective manager or leader can often recognize the motives behind an employee’s actions.

Visualize yourself as a team leader. Vanessa, one of the team members, says to you, “I’m worried about Rick. I think he needs help. He looks like he has a drinking problem.” If you have good emotional intelligence, you might think to yourself, “I wonder why Vanessa is telling me this. Is she simply being helpful? Or is she out to backstab Rick?” Therefore, you would seek some tangible evidence about Rick’s alleged problem before acting. You would also seek to spend more time with Vanessa so you can better understand her motives.

With much less emotional intelligence, you would immediately get in touch with Rick, accuse him of having a drinking problem, and tell him to get help or get fired.

Emotional intelligence is also reflected in a leader who incorporates the human touch into business activities, such as building personal relationships with employees and customers. An instructive example is Sherilyn S. McCoy, who was appointed as CEO of Avon Products Inc. after being a long time executive at Johnson & Johnson. McCoy had distinguished herself as having excellent strategic skills (big thinking) and knowing how to operate a business, as well as people-leadership capabilities.[26]

Leaders with emotional intelligence are in tune with their own thoughts and emotions and those of other people. The emotionally intelligent leader recognizes that emotions are contagious, such as optimists making other workers optimistic and pessimists making other workers pessimistic. At the same time, these leaders know that their own emotions are powerful drivers of their group members’ moods and, ultimately, performance. [27] An experiment with Dutch business students suggested that leaders who display happiness facilitate creative performance, whereas leaders who express sadness facilitate analytical performance. The emotional contagion of the leader’s mood was necessary for these results to take place.[28] (Despite this experiment, we do not recommend that readers become sad sacks in order to boost group performance on analytical tasks.)

Emotional intelligence can be developed through working on some of its components, as described in Chapter 2. It is also important to develop the habit of looking to understand the feelings and emotions of people around you. Ask yourself, “How do I feel about what’s going on here?” When you have a hunch about people’s motives, look for feedback in the future to see if you were right. For example, a little investigation might indicate that Vanessa and Rick are indeed rivals who have a personality clash.

Passion and Enthusiasm

A prominent characteristic of effective leaders is the passion and enthusiasm they have for their work, much like the same quality in creative people. The passion reflects itself in such ways as an intense liking for the business, the customers, and employees. Passion is also reflected in a relentless drive to get work accomplished, and an obsession for achieving company goals. Passion for their work is especially evident in entrepreneurial leaders and small-business owners who are preoccupied with growing their businesses. Many leaders use the term love to describe their passion for their work, business, and employees.

Both passion and enthusiasm contain an element of optimism that also contributes to leadership effectiveness. For example, an enthusiastic leader will often point to potential positive outcomes for the group effort such as, “If we can squeeze just five percent more out of our budget, our department will create a profit for the company.” A study showed that when call center supervisors in a large travel agency service were enthusiastic about using a new technology, that enthusiasm resulted in higher motivation for the customer service representatives. Furthermore, charismatic managers were able to spread their enthusiasm more effectively than less charismatic managers.[29]

Digital Vision/Thinkstock

When business founders talk about their products or service, you can hear the excitement in their voices. Big company executives are often passionate about what they do. A case in point is Mark Reuss, who is in charge of the North American business of GM. In reference to the prospects of his becoming the next CEO of GM, Reuss said he did not care so much about a promotion. “If I can be around cars, touch cars, and do the job I’m doing, I can’t ask for anything more,” said Reuss.[30]

To display passion and enthusiasm for your work, you must first find work that creates an inner spark. The work that you choose should be equally or more exciting than your favorite pastime. If not everything about your job excites you, search for its most satisfying or intrinsically motivating elements.

Self-Sacrificing Personality

A final trait to be discussed here that contributes to leadership effectiveness is a self-sacrificing personality: a tendency to be more concerned about the welfare and interests of others than those of oneself. The self-sacrificing personality translates into a behavior while occupying a leadership role, because the leader acts in the best interest of group members. The self-sacrificing leader is often referred to as a servant leader because his or her primary focus is to serve the group.

self-sacrificing personality

A tendency to be more concerned about the welfare and interests of others than those of oneself.

Leaders with a self-sacrificing personality are ethical and often forgo personal interests in order to focus on the mission and purpose of the group. Such a leader would be more concerned about the group having high morale and being productive than getting a large financial bonus. Self-sacrificing leaders often engage in personally risky behaviors to benefit the group. An example is a leader taking the risk of going over-budget to purchase appropriate furnishings for the employee lounge, thereby maintaining morale. A leader with a self-sacrificing personality is typically a good role model for the group in terms of focusing more on the needs of others than being self-centered.[31] For example, a self-sacrificing leader might ask to postpone a pending promotion in order to first guide his or her present group through a difficult situation.

Another way in which leaders with a self-sacrificing personality help others is that they emphasize the development of others, much like being a good coach.[32] For example, a self-sacrificing sales manager might facilitate a subordinate closing a big sale, rather than attempt to earn the big commission by himself or herself. The sales manager coaches the rep on how to close the deal, rather than closing the deal alone.

Suggestions for Developing Charisma

1. Learning Objective 2

The study of leadership continues to emphasize the importance of inspirational leaders who guide others toward great heights of achievement. Such leaders are said to possess charisma , a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others. [33] Being charismatic can make a leader’s job easier, because leaders have to energize group members.

charisma

A special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others. (However, people besides leaders can be charismatic.)

An important fact about charisma is that it reflects a subjective perception on the part of the person being influenced. Many people regard a leader such as the late Steve Jobs of Apple Inc. as being powerful and inspirational, and he is regarded as one of the key business leaders of the century. Yet he was also disliked by many people who considered him to be arrogant, prone to throwing tamper tantrums, hateful toward competitors, and a control freak. He was also involved in legally questionable ways of compensating himself and other members of his team by changing the dates on stock options, thereby guaranteeing a big payoff.

The term charisma is most frequently used in association with nationally and internationally known leaders. Yet first-level supervisors, team leaders, and minor sports coaches can also be charismatic. Possessing a naturally dynamic personality is a major contributor to charisma, but a person can engage in many tangible actions that also contribute to charisma. The following are 12 suggestions for behaving charismatically, all based on characteristics and behaviors often found among charismatic leaders. If you are not currently a leader, remember that being perceived as charismatic will help you become one.

1. Communicate a vision. A charismatic leader offers an exciting image of where the organization is headed and how to get there. A vision is more than a forecast, because it describes an ideal version of the future of an entire organization or an organizational unit such as a department. Richard Branson, the colorful British entrepreneur, has inspired hundreds of employees with his vision of the Virgin brand being a leader in dozens of fields. Among his accomplishments to reach this vision are the Virgin Atlantic airline, Virgin Megastores, and Virgin Cinema. The supervisor of paralegal services might communicate a vision such as “Our paralegal group will become known as the most professional and helpful paralegal group in Arizona.” A visionary leader should also have help to implement the vision. For the paralegal supervisor, part of implementing the vision might be teaching new technology skills to the paralegals.

An important part of communicating a vision for good effect is to be clear about what needs to be done to build a better future, even if the future is next week. Based on his study of some of the world’s most successful business leaders, Marcus Buckingham concludes that the leader should define the future in vivid terms so that people can see where they are headed. [34]

Skill-Building Exercise 10-2 will give you a chance to develop visioning skills (a buzzword in business).

2. Make frequent use of metaphors and analogies. To inspire people, the charismatic leader uses colorful language and exciting metaphors and analogies. Develop metaphors to inspire people around you. A metaphor commonly used after a group has suffered a setback is, “Like the phoenix, we will rise from the ashes of defeat.” To pick up the spirits of her maintenance group, a maintenance supervisor told the group, “We’re a lot like the heating and cooling system in a house. A lot of people don’t give us much thought, but without us their lives would be very uncomfortable.”

3. Inspire trust and confidence. Make your deeds consistent with your promises. As mentioned earlier in this chapter, being trustworthy is a key leadership trait. Get people to believe in your competence by making your accomplishments known in a polite, tactful way. The socialized charismatic is likely to inspire trust and confidence because such a leader is ethical and wants to accomplish activities that help others rather than pursuing personal ends such as glory and power. [35]

Skill-Building Exercise 10-2

Creating a Vision

The class organizes into small problem-solving groups. Each group constructs a vision for a unit of an organization or for a total organization of its choosing. Students can choose a well-known business firm, a government agency, or an organization with which they are familiar. The vision should be approximately 25 words long, and depict a glorious future. A vision is not simply a straightforward goal, such as “In 2017 our firm will gross $10 million in sales.” Remember, the vision statement you draw should inspire people throughout the organization.

If class time permits, volunteers can share their visions with other class members who will provide feedback on the clarity and inspirational qualities of the visions presented.

4. Be highly energetic and goal oriented. Impress others with your energy and resourcefulness. To increase your energy supply, exercise frequently, eat well, and get ample rest. Closely related to being goal oriented is being optimistic about what you and the group can accomplish. People also associate optimism with energy. Being grumpy is often associated with being low on energy. You can add to an image of energy by raising and lowering your voice frequently and avoiding a slow pace.

5. Be emotionally expressive and warm. A key characteristic of charismatic leaders is the ability to express feelings openly. Assertiveness is therefore an important component of charisma. In dealing with team members, refer to your feelings at the time, such as “I’m excited because I know we are going to hit our year-end target by mid-October.” A study with firefighters showed that leaders who were perceived to be charismatic contributed to the happiness of the group, particularly when the leader expressed positive emotion and had a positive outlook. [36]

Nonverbal emotional expressiveness, such as warm gestures and occasional touching (nonsexual) of group members, also exhibits charisma. Remember, however, that many people resent being touched when at work. Frequent smiling is another way of being emotionally expressive. Also, a warm smile seems to indicate a confident, caring person, which contributes to a perception of charisma.

6. Make ample use of true stories. An excellent way of building rapport is to tell stories that deliver a message. People like to hear stories about how a department or company went through hard times when it started, or how somebody climbed the corporate ladder starting at the bottom. For example, Marriott International chief executive Ed Fuller often tells the story about how he and and another senior executive began as a security guard and waiter. [37] Telling positive stories has become a widely accepted technique for building relationships with employees. Storytelling adds a touch of warmth to the teller and helps build connections among people who become familiar with the same story. Skill-Building Exercise 10-3 provides you an opprotunity to get started telling stories to add to your charisma.

7. Be candid and direct. Practice being direct in saying what you want, rather than being indirect and evasive. If you want someone to help you, don’t ask, “Are you busy?” Instead, ask, “Can you help me with a problem I’m having right now?”

8. Make everybody you meet feel that he or she is important. For example, at a company social gathering, shake the hand of every person you meet. Also, thank people frequently both orally and by written notes.

9. Multiply the effectiveness of your handshake. Shake firmly without creating pain, and make enough eye contact to notice the color of the other person’s eyes. When you take that much trouble, you project care and concern. [38]

10. Stand up straight and use other nonverbal signals of self-confidence. Practice good posture. Minimize fidgeting, scratching, foot tapping, and speaking in a monotone. Walk at a rapid pace without appearing to be panicked. Dress fashionably

Skill-Building Exercise 10-3

Creating Stories for Being a Leader

As described in the text, an effective technique for charismatic leadership is for the leader to tell true stories that reflect the values of the organization. Your task is to create stories, of about 50 words, that might inspire workers in the following settings. Perhaps students can divide up responsibility and take one setting each:

. Setting 1: You are the snack food division head in a large company. You want to inspire workers based on the theme of how your company is creating a better world for people of all ages.

. Setting 2: You are the owner of a hair restoration center that helps men, as well as women, become less bald. You want to inspire your workers to understand how they are improving the lives of so many people.

. Setting 3: You are the regional manager of a nationwide trash removal company that is proud of its effort toward building a greener (more environmentally friendly) country. You hear frequent mutterings from employees that it is not so glamorous working for a garbage hauler.

If class time permits, share some of your inspiring stories with other class members.

without going to the extreme that people notice your clothes more than they notice you. A fist can project confidence, power, and certainty. Waving a hand, pointing, or tapping a table can help get attention focused on you.

· Be willing to take personal risks. Charismatic leaders are typically risk takers, and risk taking adds to their charisma. Risks you might take include extending additional credit to a start-up business, suggesting a bright but costly idea, and recommending that a former felon be given a chance in your firm.

· Be self-promotional. Charismatic leaders are not shy. Instead, they toot their own horns and allow others to know how important they are. Without appearing self-absorbed, you too might let others know of your tangible accomplishments. Explain to others the key role that you played on your team or how you achieved a few tough goals.

An experiment was conducted with MBA students to see if charisma could be taught. The students were provided information about being charismatic, using ideas quite similar to the 12 points presented here, plus the opportunity to practice using the suggestions. Participants in the study gave speeches before and after the training in charisma. Because the students received higher ratings in being charismatic as a result of the training, it was concluded that charisma can be taught. [39]

Despite the importance of developing charisma, being excessively and flamboyantly charismatic can backfire because others may perceive you as self-serving. Therefore, the idea is to sprinkle your charisma with humility, such as admitting when you make a mistake. Also, in recent years top-level management at some companies have replaced highly charismatic, rock-star-like leaders with those who concentrate more on running the business instead of gathering publicity for themselves.

Suggestions for Developing Charisma

1. Learning Objective 2

charisma

A special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others. (However, people besides leaders can be charismatic.)

Skill-Building Exercise 10-2 will give you a chance to develop visioning skills (a buzzword in business).

Skill-Building Exercise 10-2

Creating a Vision

If class time permits, volunteers can share their visions with other class members who will provide feedback on the clarity and inspirational qualities of the visions presented.

Skill-Building Exercise 10-3

Creating Stories for Being a Leader

. Setting 1: You are the snack food division head in a large company. You want to inspire workers based on the theme of how your company is creating a better world for people of all ages.

If class time permits, share some of your inspiring stories with other class members.

Mostly true Mostly false

1. I am more likely to take care of a high-impact assignment myself than turn it over to a group member.

2. I would prefer the analytical aspects of a manager’s job rather than working directly with group members.

3. An important part of my approach to managing a group is to keep the members informed almost daily of any information that could affect their work.

4. It’s a good idea to give two people in the group the same problem, and then choose what appears to be the best solution.

5. It makes good sense for the leader or manager to stay somewhat aloof from the group so that he or she can make a tough decision when necessary.

6. I look for opportunities to obtain group input before making a decision, even on straightforward issues.

7. I would reverse a decision if several of the group members presented evidence that I was wrong.

8. Differences of opinion in the work group are healthy.

9. I think that activities to build team spirit, like the team fixing up a low-income family’s house on a Saturday, are an excellent investment of time.

10. If my group were hiring a new member, I would like the person to be interviewed by the entire group.

11. An effective team leader today uses e-mail or text messaging for about 98 percent of communication with team members.

12. Some of the best ideas are likely to come from the group members rather than the manager.

13. If our group were going to have a banquet, I would get input from each member on what type of food should be served.

14. I have never seen a statue of a committee in a museum or park, so why bother making decisions by committee if you want to be recognized?

15. I dislike it intensely when a group member challenges my position on an issue.

16. I typically explain to group members what method they should use to accomplish an assigned task.

17. If I were out of the office for a week, most of the important work in the department would get accomplished anyway.

18. Delegation of important tasks is something that would be (or is) very difficult for me.

19. When a group member comes to me with a problem, I tend to jump right in with a proposed solution.

20. When a group member comes to me with a problem, I typically ask that person something like, “What alternative solutions have you thought of so far?”

Total Score

Scoring and Interpretation:

The answers for determining what style of leader you are (or would be) are as follows:

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

Mostly false

Mostly true

If your score is 15 or higher, you are most likely (or would be) a participative or team style leader. If your score is 5 or lower, you are most likely (or would be) an authoritarian style leader.

Skill Development:

The quiz you just completed is also an opportunity for skill development. Review the 20 questions, and look for implied suggestions for engaging in participative leadership. For example, question 20 suggests that you encourage group members to work through their own solutions to problems. If your goal is to become an authoritarian (one who makes decisions primarily on his or her own), the questions can also serve as useful guidelines. For example, question 19 suggests that an authoritarian leader looks first to solve problems for group members.

Research conducted by Craig L. Pearce and his associates at the Graduate School of Management at the University of California suggests that teams that perform poorly are often dominated by the team leader. In contrast, high-performing teams have a shared leadership structure. Part of the team’s success can be attributed to the team spirit stemming from the shared leadership. If the organizational or national culture does not favor shared leadership, the good results might not be forthcoming.[43] Another important contribution of shared leadership is that it helps the leader act as a servant leader who freely exchanges ideas with group members. As a result, new knowledge is generated.[44] For example, instead of the leader simply ordering workers to cut down on travel expenses, the group discusses and learns new ways of reducing travel costs without damaging morale.

Build a Mission Statement

An early point in developing teamwork is to specify the team’s mission. The mission should contain a specific goal and purpose, and it should be optimistic and uplifting. A purpose is about shared values, and it answers the question of why the team exisits. Even when the purpose is obvious, it should be explained. An historic example is the 70-day rescue operation of the Chilean miners in 2010. Andre Sougarret, the senior engineer who led the

Figure 10-2 Developing Teamwork

Skill-Building Exercise 10-4

Developing a Team Mission Statement

The class organizes into teams of about six people and appoints a team leader. Each team plays the role of a specific team within a company, government agency, or hospital. An example is the customer service team at a utility company. The task is to develop a mission statement approximating the type described in the text. The team leader might also take notes for the group.

Remember that a mission statement contains a goal and a purpose, and it is uplifting and optimistic. Allow about 15 minutes for preparing the mission statements. The groups then compare mission statements. One representative from each group presents the mission statements to the rest of the class.

rescue, constantly reminded team members about the human lives they were saving.[45] Here is an example of a mission statement from a service team at a Volvo dealership:

To plan and implement a level of automobile service and repair of the highest quality, at a competitive price, that will delight customers and retain their loyalty.

The leader can help develop the mission statement when the team is first formed or at any other time. Developing a mission statement for a long-standing team breathes new life into its activities. Being committed to a mission improves teamwork, as does the process of formulating a mission statement. Skill-Building Exercise 10-4 gives you practice in developing a mission statement for a team.

Interact Frequently with Team Members

A major strategy of being an effective team leader is to build positive relationships with team members, and relationships are built on conversations.[46] The conversations should go beyond superficialites such as discussing weekend plans or how busy the team member is. Meaningful topics would include the team member’s perception of potential problems, his or her job satisfaction, and suggestions for improvement.

An effective way of interacting with team members is to hold question-and-answer sessions. The same approach demonstrates participative leadership. Both leader and members ask and answer questions, such as “How can we make an even bigger contribution to the company?” The Quality Department at Delta Dental Plan of California used question-and-answer sessions with success. The process not only boosted morale and made managers more accessible to employees, but also yielded more than 1,000 employee suggestions in the first year. The department head said, “This program totally revolutionized the company. Now employees from other divisions are eager to work in our department.”[47]

Show Your Team Members That They Are Trusted

An effective leader is perceived as honest and trustworthy, and he or she trusts team members. The leader should recognize and reward ethical behavior, particularly when there is a temptation to be dishonest—such as not reporting a quality defect to a customer or cheating on tax returns. Raise expectations of honesty by telling group members you are confident that they will act in ways that bring credit to the organization.

A practical way of demonstrating trust in group members is to avoid closely monitoring their work and second-guessing their decisions about minor matters such as the best type of border for a report. A micromanager is one who closely monitors most aspects of group members’ activities, sometimes to the point of being a control freak. As a result, the group members do not feel that the leader or manager trusts them to make even the smallest decisions. One manager checked travel Web sites himself for the best deal after a team member booked plans for a business trip. As a result, team members felt that they were not trusted to care about the financial welfare of the company.

micromanager

One who closely monitors most aspects of group members’ activities, sometimes to the point of being a control freak.

Establish a Sense of Urgency and High Performance Standards

To build teamwork, members need to believe that the team has urgent, constructive purposes. A demanding performance challenge helps create and sustain the team. Team members also want to know exactly what is expected of them. The more urgent and relevant the rationale, the more likely it is that the team will perform well. Such projects are often referred to as mission-critical because the success of the team or company is at stake.[48] Based on this information, as a team leader you might project a sense of urgency and encourage setting high goals. An example is assigning the team the task of reducing reported defects in a pacemaker for the heart.

Encourage Team Members to Recognize Each Other’s Accomplishments

Members of a high-spirited team look for ways to encourage and praise each other, including the traditional “high five” or fist-bump signifying an important contribution to the team. Encouragement and praise from the team leader is important, but team members also play an important role in giving positive reinforcement to each other. Team spirit develops as members receive frequent positive feedback from each other. Skill-Building Exercise 10-5 demonstrates the activity of recognizing team accomplishments.

Encourage Honest Criticism

A superficial type of camaraderie develops when team members avoid honestly criticizing each other for the sake of group harmony. Avoiding criticism can result in groupthink. As a team leader, you should therefore explain that being a good team player includes offering honest feedback on mistakes and flawed ideas. The team benefits from mutual criticism. A stronger team spirit will develop because team members realize that they are helping each other through honest feedback. An example of honest criticism took place in the customer service department at a large discount retailer. One of the team members decided to conduct an online survey of how well customers liked the restaurant lunch counter in the store. Another team member pointed out that (1) very few customers used the restaurant, and (2) it would be annoying for many customers to be asked to complete a survey about an in-store restaurant.

Use Team Symbols

Teamwork on the athletic field is enhanced by team symbols, such as uniforms and nicknames. The term “Zags,” for example, deserves some credit for contributing to the mystique of the Gonzaga University men’s basketball team. (The “Zags” are officially “the Bulldogs.”) Symbols can also be an effective team builder in business. Trademarks, logos,

Skill-Building Exercise 10-5

Recognizing Team Accomplishments

The class organizes into teams of about six, ideally into teams or groups that already worked with each other during the course. If you have not worked with each other, you will have to rely on any impressions you have made of the other members of the team during the course. Team members will be equipped with about six 3” 3 5” index cards; however, any other small-size piece of paper will work. (Or you could send e-mails, IMs, or text messages to each other.) Each member of the team thinks carefully about what other members of the team have accomplished during the course, including contribution to team problem-solving, class participation, or perhaps some accomplishment outside of class.

Assume that you have six members on the team. Prepare a card for each member by jotting down whatever accomplishments you have observed of the other team members. Each person therefore prepares five cards that will be handed to the person named on the card and then given to that person. Each team member will receive five “accomplishment cards,” one from each of the other five members. Each member studies his or her accomplishment cards, consisting of statements of accomplishments and perhaps a couple of words of praise. Here are two examples:

“I like the way you showed up on time for our study group and were prepared for action. Nice job, Ben.”

“A few times you came up with great ideas in our problem-solving groups. Shauna, you are a really nice team player.”>

After all cards have been read carefully, discuss your feelings about the cards and their potential contribution to teamwork. Cover observations such as the following:

How much closer to the group do you feel now?

How much have your efforts in being a team player paid off?

How useful a technique would this technique of accomplishment recognition be for a workplace team?

What potential disadvantages do you see to the technique?

mottoes, and other indicators of products both advertise the company and signify a joint effort. Company jackets, caps, T-shirts, mugs, ballpoint pens, and business cards can be modified to symbolize a work unit. As a team leader, you might therefore invest part of your team’s budget in an appropriate symbol. Use the opportunity to practice participative leadership. Conduct a group problem-solving session to develop a team logo to place on a T-shirt or cap.

Use Peer Evaluations

In the traditional performance-evaluation system, the manager evaluates group members at regular intervals. With peer-evaluation systems, the team members contribute to the evaluation by submitting evaluations of each other. The evaluations might consist of filling out rating forms about each other’s performance. Sometimes brief essays are written about each other and then synthesized by the team leader.

Peer evaluations contribute to teamwork because team members realize that helping each other becomes as important as helping the boss. Similarly, team members recognize that pleasing each other counts as much as pleasing the boss. A potential disadvantage of peer evaluations, however, is that the group members will agree to give each other outstanding evaluations, or to get even with coworkers they do not like. In the latter case, teamwork is diminished rather than increased.

As a team leader, you might not have the authority to initiate a peer-evaluation system without first checking with your manager. Making a recommendation for peer input into evaluations might demonstrate that you are committed to participative leadership.

Help Team Members See the Big Picture

The team is likely to work together more smoothly when members have a clear understanding of how their work contributes to the company. Communicating the mission as described earlier is a good starting point. Showing the team its specific contribution to the overall organization is equally important. As the team leader you might create a flowchart that tracks an order from the time it is taken to when it is delivered. Show the team its role at each step. The team members may be aware of how they contribute to the team, but not how the team contributes to the success of the organization.[49] The team leader of a shipping department at a distribution center explains to his team regularly, “Let’s keep this clearly in mind. A big factor in determining whether a customer stays with us is whether the goods arrive on time and in good shape.”

Minimize Formation of In-Groups and Out-Groups

An established leadership theory, the leader-member exchange model, provides useful information for the aspiring team leader. According to this theory, leaders establish unique working relationships with group members. By so doing, they create in-groups and out-groups. The in-groups become part of a smoothly functioning team headed by the leader. Out-group members are less likely to experience good teamwork. Another consideration of this theory is how well group members think their relationship with the leader stacks up with the leader–member relations established by coworkers.[50] For example, Sid might have a nice relationship with the leader of the group, but he is not happy that Sue has an even better relationship. When a person believes that he or she has a better relationship with the leader than do other team members, he or she is likely to have high job satisfaction and performance. Figure 10-3 depicts the major concept of the leader-member exchange model.

leader-member exchange model

A theory explaining that group leaders establish unique working relationships with group members, thereby creating in-groups and out-groups.

The in-group may come about because the leader prefers certain group members and is therefore is motivated to form good working relationships with them. Conversely, the leader may neglect to form good relationships with people with whom he or she has limited rapport. First impressions count heavily when the leader decides on who is “in” and who is “out.” Team leaders should therefore guard against the formation of out-groups just because they are not fond of a few team members, or because a given team member gives a poor first impression.

The leader-member exchange model does not mean that the team leader should avoid forming unique relationships with team members. Treating members differently based on

Figure 10-3 The Leader–Member Exchange Model

their needs and abilities makes good leadership sense. An example of a unique relationship is to give more recognition to a sales representative who craves recognition. What should be avoided is forming an out-group.

A useful perspective in understanding the importance of developing teamwork is that leaders should be judged in terms of the performance of the teams or organizations they are responsible for. [51] Good teamwork helps bring about good team performance.

Developing Your Leadership Potential

1. Learning Objective 4

Much of this book deals directly and indirectly with information that could improve your leadership effectiveness. Chapter 4 , on communications, is a case in point. Improving your communications effectiveness is one way to enhance your ability to lead people. Formal education and leadership development programs also contribute to enhancing leadership potential. (Many such programs include some of the activities found in this chapter.) Here we describe six strategies for developing your leadership potential, in addition to studying and participating in formal programs.

Our approach to developing leadership potential is based on the assumption that leaders are both born and made. You need some basic cognitive and personality characteristics to have the potential to be a leader, yet you need to develop these characteristics through experience and practice. A person who has good problem-solving ability and is charismatic still needs to assume leadership responsibility and engage in certain actions to become an effective leader. Among these dozens of activities would be recognizing the accomplishments of others.

Skill-Building Exercise 10-6 , about maintaining a personal leadership journal, provides a start in practicing and refining leadership skills.

First-level supervisory jobs are an invaluable starting point for developing your leadership potential. It takes considerable skill to manage a rapid-service (fast-food) restaurant or direct a public playground during the summer. First-level supervisors frequently face situations in which group members are poorly trained, poorly paid, and not well motivated to achieve company objectives. Motivating and inspiring entry-level workers is one of the major challenges facing organizations. The six techniques and strategies described in the following list provide additional insight into ways of developing your leadership potential.

1. Acquire broad experience. Because leadership varies somewhat with the situation, a sound approach to improving leadership effectiveness is to attempt to gain supervisory experience in different settings. A person who wants to become an

Skill-Building Exercise 10-6

My Personal Leadership Journal

A potentially important assist in your development as a leader is to maintain a journal or diary of your leadership experiences. Make a journal entry within 24 hours after you carried out a leadership action of any kind, or failed to do so when the opportunity arose. You will therefore have entries dealing with leadership opportunities both capitalized upon and missed. An example: “A few of my neighbors were complaining about trash flying around the neighborhood on trash pick-up days, particularly when the wind was strong. I took the initiative to send e-mails and flyers to neighborhood residents discussing what could be done about the problem. I suggested that people pack their recycling boxes more tightly. I also suggested ever-so-politely that people should pick up their own flying trash. Soon the problem just about disappeared.”

Also include in your journal such entries as feedback you receive on your leadership ability, leadership traits that you appear to be developing, and leadership ideas you learn about. Also, keep a list of leadership articles and books you intend to read. You might also want to record observations about significant acts of leadership or leadership blunders that you have observed in others, either firsthand or through the media.

Review your journal monthly, and make note of any progress you think you have made in developing your leadership skills. Also consider preparing a graph of your progress in developing leadership skills. The vertical axis can represent skill level on a 1-to-100 scale, and the horizontal axis might be divided into time intervals, such as calendar quarters.

executive is well advised to gain supervisory experience in at least two different organizational functions, such as marketing and operations.

Procter & Gamble, long noted for its development of leaders and managers, emphasizes broad experience. If a promising young brand assistant wants to become an executive, the company tries to give him or her as broad an experience as possible. The person might be appointed as assistant manager of Cascade detergent. Later, he or she will run laundry products in Canada, before eventually overseeing all of Northeast Asia. [52]

2. Model effective leaders. Another strategy for leadership development is to observe capable leaders in action, and then model some of their approaches. You may not want to copy a particular leader entirely, but you can incorporate a few of the behavior patterns into your own leadership style. For instance, most inexperienced leaders have difficulty confronting others. Observe how a skilled confronter handles the situation, and try that person’s approach the next time you have unfavorable news to communicate to another person.

3. Self-develop leadership traits and behaviors. Study the leadership traits and behaviors described earlier in this chapter. As a starting point, identify several attributes you think you could strengthen within yourself, given some determination and perhaps combined with the right training program. For example, you might decide that with some effort you could improve your sense of humor. You might also believe that you could remember to encourage honest criticism within the team. It is also helpful to obtain feedback from valid sources (such as a trusted manager) about which traits and behaviors you particularly need to develop.

Self-development of leadership traits and behaviors is an important part of continuous learning and development. Leadership consultant Tina Smagala says that the most effective leaders continually take charge of their development, rather than waiting for their manager or the training team to push along their development. [53] For example, if you observed that more of your customers, coworkers, and subordinates were Spanish speaking, you might take the initiative to acquire some proficiency in Spanish.

4. Become an integrated human being. A philosophical approach to leadership suggests that the model leader is first and foremost a fully functioning person. According to William D. Hitt, mastering the art of leadership comes with self-mastery. Leadership development is the process of self-development. As a result, the process of becoming a leader is similar to the process of becoming an integrated human being. For example, you need to develop values that guide your behavior before you can adequately guide the behavior of others. [54]

Another aspect of becoming an integrated human being is to is attain self-understanding.

Suppose you discover that you feel intimidated by people who are older and more experienced than you. Armed with this self-insight, you can gradually overcome the problem, and feel more comfortable leading workers who are older and more experienced than you.

5. Practice a little leadership. An effective way to develop your leadership skills is to look for opportunities to exert a small amount of helpful leadership in contrast to waiting for opportunities to accomplish extraordinary deeds. The “little leadership” might involve such behaviors as mentoring a struggling team member, coaching somebody about how to use a new high-tech device, or making a suggestion about improving a product. In the words of Michael E. McGill and John W. Slocum Jr., “For those who want to stand atop the dugout, dance with the elephants, fly with the buffaloes, soar with eagles, or perform other mystical and heroic acts of large leadership, our little leadership may seem all too managerial, too modest, and too mundane.” [55]

6. Help your leader lead. According to Michael Useem, leaders need your assistance so that they can do a good job. “If people are afraid to help their leaders lead, their leaders will fail.” [56] (This idea is part of being an active participant in shared leadership.) A group member is often closer to the market and closer to how the product is used; therefore, he or she can provide useful information to the person in the formal leadership position. When you help the people above you avoid a mistake or capitalize upon an opportunity, you help the entire company. At the same time, you are developing your ability to take the initiative and lead.

Concept Review and Reinforcement

Key Terms

1. assertiveness 229

2. self-sacrificing personality 236

3. authentic leader 232

4. charisma 236

5. participative leadership 239

6. micromanager 242

7. leader-member exchange model 244

Summary

Effective leadership depends on having the right personal characteristics and taking the appropriate actions. Leadership is the ability to inspire support and confidence among the people who are needed to achieve company goals. People can exercise leadership whether or not they occupy a formal leadership position, such as being an emergent leader.

Certain traits contribute heavily to leadership effectiveness. Among them are the following: self-confidence and leadership self-efficacy; positive core self-evaluations; assertiveness; trustworthiness, morality, and authenticity; sense of humor; self-awareness and self-objectivity; cognitive skills including critical assessments; emotional intelligence; passion and enthusiasm; and self-sacrificing personality.

Although charisma depends heavily on personal characteristics, people can work toward being charismatic. Suggestions for behaving charismatically include the following:

1. Communicate a vision.

2. Make frequent use of metaphors and analogies.

3. Inspire trust and confidence.

4. Be highly energetic and goal oriented.

5. Be emotionally expressive and warm.

6. Make ample use of true stories.

7. Be candid and direct.

8. Make everyone you meet feel that he or she is important.

9. Multiply the effectiveness of your handshake.

10. Stand up straight, and use other nonverbal signals of self-confidence.

11. Be willing to take personal risks.

12. Be self-promotional.

A team leader acts as a facilitator or coach who shares decision making with team members, thus practicing participative leadership. The following are some techniques for effective team leadership:

1. Engage in shared leadership.

2. Build a mission statement.

3. Interact frequently with team members.

4. Show your team members that they are trusted.

5. Establish a sense of urgency and high performance standards.

6. Encourage team members to recognize each other’s accomplishments.

7. Encourage honest criticism.

8. Use team symbols.

9. Use peer evaluations.

10. Help team members see the big picture.

11. Minimize formation of in-groups and out-groups.

In addition to participating in formal leadership development programs, six strategies for developing leadership potential are to (1) acquire broad experience, (2) model effective leaders, (3) self-develop leadership traits and behaviors, (4) become an integrated human being (a fully functioning person), (5) practice small leadership acts, and (6) help your leader lead.

Questions for Discussion and Review

1. People who were voted “most likely to succeed” in high school are frequently found in leadership positions later in life. What explanation can you offer for these predictions about success so often being true?

2. A few years ago, the Boeing Company appointed Ray Conner as the senior vice president of sales and customer support for the commerical airline division. Conner, who previously managed the company’s supply chain, began his employment with Boeing as an airplane mechanic. What relevance might his experience as a mechanic have for his effectivenss as a high-level leader in the company?

3. The average age of CEOs is declining; however, what would you regard as the minimum age acceptable for a man or woman to be the CEO of a company of over 100,000 employees? Explain your reasoning.

4. How can a person demonstrate to others in the company that he or she is trustworthy enough to be considered for a leadership position?

5. Why does a leader need good emotional intelligence? Shouldn’t a leader be a take-charge person focused on obtaining results like making money or building a brand?

6. What can you do this week to increase your charisma?

7. What is your impression of the usefullness of storytelling for being an effective leader?

8. What might be the reason that small gestures such as saying “thank you” and writing notes of appreciation contribute to a leader’s effectiveness?

9. How might a person in a highly specialized field, such as information technology or accounting, achieve broad experience in order to qualify for a leadership position?

10. Assume that a student obtains a part-time job as an assistant store manager. What can this person do to capitalize on this position for developing his or her leadership potential?

The Web Corner

1. http://www.ccl.org

2. (Center for Creative Leadership; includes videos)

3. http://www.core-edge.com

4. (Attaining power and charisma; includes a video)

5. http://www.buzzle.com

6. (Effective team leadership; includes an audio presentation)

Internet Skill Builder: Developing Your Charisma

1. One approach to developing charisma for leadership is to read brief clips about charismatic people, and look for any practical suggestions from these stories. For example, you might read that a successful charismatic leader invests time in writing hand written notes of appreciation to his or her subordinates. Search the Web for at least three brief stories about charismatic leaders. After studying these stories, arrive at least three practical suggestions for developing your charisma. Attempt to implement these suggestions during the next 12-month period and see if people react positively to your charismatic initiatives.

Interpersonal Relations Case 10.1

Jeb Wants to Inspire his Team

Jeb considered himself fortunate to be chosen as the team leader for one of the newly formed teams at the insurance company where he worked. The purpose of forming teams was to improve customer service. Each team now had the authority to issue policies and settle claims, within limits, for specific geographic regions. Before the shift into teams, separate departments existed for sales, underwriting, and claims. Although the company was profitable, it received too many criticisms about poor service, particulary in the time required to process a claim. Sales representatives within the company contended that the underwriting department took too long to approve and issue policies.

One of Jeb’s first initiatives was to hold frequent in-person meetings to discuss how service was going to be improved. He emphasized to the team that the company had adopted the popular team concept and that teams were empowered to look for ways to improve efficiency. Jeb also emphasized that each team member had more responsibility than under the department structure. Each team member would be doing some sales, underwriting, and claims.

Team member Georgia commented during one of the meetings, “Just think of it, three jobs in one and being paid just the same as before.” During the same meeting, team member Rob asked, “What’s so special about calling us a team? I had a nice job in the underwriting department before these teams were formed. I enjoyed that work. Now my job is more confusing.”

Jeb responded, “The company decided this was the way to go. Trust me, everything will work out fine. Just go along with the team idea for now.”

Four months after the teams were formed, Jeb’s boss, James, met with him to discuss progress. James said, “Your team isn’t making as much progress as I would like. Policies are not being issued any faster. Customer complaints about slow claims settlements are at the same level as before we converted into teams. The other teams are making more progress. Does your team have a problem?”

“We do have a problem,” said Jeb. “Everyone comes to work just as in the days before teams. They do most of the work alone, but they send e-mail messages to each other as needed. It just seems to be business as usual. So far, the idea of a high-producing team hasn’t caught on.”

“Are you an effective team leader?” asked James.

“I think I am,” said Jeb. “I do everything I’m supposed to. I hold meetings; I post messages. I answer all questions asked of me. I try to settle problems.”

“I’ll be back to you in two months to discuss your team’s progress. I want to see some improved results in terms of better customer service.”

Case Questions

1. How can Jeb be a more effective team leader?

2. What can Jeb do to inspire his team?

3. Based on whatever information you have found in the case, what is your evaluation of Jeb’s charisma?

Interpersonal Skills Role-Play

Jeb Attempts to Inspire His Team

One courageous student plays the role of Jeb, who has called a meeting late one Friday afternoon. His purpose is to inspire the team to attain higher levels of customer service and to motivate individuals to engage in more teamwork, rather than working independently. The e-mail Jeb sent a few days before the meeting just alluded to a team meeting to discuss items relevant to the team’s progress. Several other students play the roles of the team members, not all of whom see much value in the team structure. Conduct this role-play for about eight minutes. Observers rate the role players on two dimensions, using a 1-to-5 scale from very poor (1) to very good (5). One dimension is “effective use of human relations techniques.” Focus on how well Jeb implements effective techniqes of team leadership, development, and charisma. The second dimension is “acting ability.” A few observers might voluntarily provide feedback to the role players in terms of sharing their ratings and observations. The course instructor might also provide feedback.

Interpersonal Relations Case 10.2

What Kind of Leader is Ashley?

Ashley, a department head in the assembly division of Micro Electronics, recently took a leadership development course sponsored by the company. The major thrust of the course was to teach managers and supervisors how to implement participative leadership. In the words of the course leader: “Today, almost all employees want to get involved. They want a say in all important decisions affecting them. The era of the industrial dictator has been gone for a while.”

Ashley was mildly skeptical about the course leader’s universal endorsement of participative leadership. Yet she decided that if this is what the company wanted, she would adopt a more participative style. Ashley took extensive notes on how to implement participative leadership.

Six months after the leadership development program was completed, the human resources department attempted to evaluate its impact. One part of the evaluation consisted of interviews with managers who had attended the program. Managers were asked how they liked the program and how it helped them. Another part of the program evaluation was to speak to employees about how the program influenced their boss’s approach to supervision.

Rick, the company training director, conducted several of the interviews with employees. He spoke first with Amy, a supervisor reporting to Ashley. Rick told Amy that her answers would be confidential. He said that the purpose of these interviews was to evaluate the leadership training program, not to evaluate the manager.

Amy responded, “It would be okay with me if Ashley did hear my comments. I have nothing critical to say. I think that the leadership training program was very useful. Ashley is a much better manager now than in the past. She’s much more aware that people in her group have something useful to contribute. Ashley asks our opinion on everything.

“I’ll give you an example,” Amy continued. “Ashley was going to order a new multi purpose printer and copier. In the past she might have just ordered the machine and told us when it would be delivered. Instead, we held three meetings to decide which multi-purpose machine to purchase. Three of us formed a committee to study the problem. We finally chose a printer/copier that everybody in the office agreed would be okay, including the office assistant.”

Amy concluded, “I think that every manager at Micro should learn how to be a participative leader.”

Rick then spoke to Kent, another supervisor reporting to Ashley. Kent said he appreciated the fact that interviews would be confidential; however, he hoped that the drift of his comments would get back to Ashley so long as he was not identified. Kent offered this evaluation:

“Ashley has gone downhill as a manager ever since she took your training program. She has become lazier than ever. Ashley always did have a tendency to pass off too much work to her supervisors and other employees. Now she’s gone overboard. The recent purchase of the printer/copier is a good example. Too many people spent too much time deciding which machine to purchase. To make matters worse, a committee of three people was formed to research the matter. It seems to me we can make better use of our time on the job.

“If Ashley keeps up her approach to leadership much longer, she won’t have a job. We will all be doing her work. How can you justify a department head’s salary if other people are doing her work?”

Rick thought to himself, “I wonder if Amy and Kent are talking about the same manager. Their comments make it difficult for me to know whether the leadership development program is getting the job done.”

Case Questions

1. How do you explain the different perceptions of Amy and Kent?

2. What might be wrong with the leadership development program?

3. What suggestions can you offer for making better use of participative leadership?

4. What would be the counterargument to Kent’s point of view about Ashley not justifying her pay?

References

1. Original story created from facts presented in the following: Justin Fogarty, “Speakers: Pat Elizondo, Senior Vice President—Global Sales Integration, Xerox Corporation,” Sales Leadership Conference, 2010 ( http://www.sellingpower.com/event/conference ), 2010, p. 1; “Patricia Elizondo, Xerox.” Women Worth Watching ( http://www.womenworthwatching.com/patricia-elizondo ), May 20, 2006, pp. 1–3; “Patricia Elizondo, http://www.careerfocusmagazine.com, November/December 2010, pp. 22–23; “Voice of Experience: Patricia Elizondo, Senior Vice President, Eastern Operations, Xerox Corporation,” The Glass Hammer (http://www.theglasshammer.con/news), July 6, 2009, pp. 1-3; “2010 Corporate Elite,” Patricia Elizondo, SVP-Eastern Sales Operations, Xerox Corporation, Hispanic Business, January–February 2010, p. 32

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3. Quoted in Peter Gumbel, “The Turnaround Artista,” Time, June 29, 2009, p. 42.

4. Sankalp Chaturvedi, Michael J. Zyphur, Richard D. Arvey, Bruce J. Avolio, and Gerry Larsson, “The Heritability of Emergent Leadership: Age and Gender as Moderating Factors,” Leadership Quarterly, April 2012, p. 219.

5. Timothy A. Judge, Ronald F. Piccolo, and Tomek Kosalka, “The Bright and Dark Sides of Leader Traits: A review and Theoretical Extension of the Leader Trait Paradigm,” Leadership Quarterly, December 2009, p. 871.

6. George P. Hollenbeck and Douglas T. Hall, “Self-Confidence and Leader Performance,” Organizational Dynamics, no. 3, 2004, pp. 254–269.

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8. Bradley P. Owens and David R. Hekman, “Modeling How to Grow: An Inductive Examination of Humble Leader Behaviors, Contingencies, and Outcomes,” Academy of Management Journal, August 2012, pp. 797–818; Erika Napoletano, “Confidence vs. Arrogance,” Entrepreneur, June 2011, p. 20.

9. Judge, Piccolo, and Kosalka, “The Bright and Dark Sides of Leader Traits,” p. 866.

10. Adam Bryant, “Want to Lead? Ask Tennyson and Shakespeare,” The New York Times, ( http://www.nytimes.com ), September 4, 2011, p. 1.

11. Daniel R. Ames and Francis J. Flynn, “What Breaks a Leader: The Curvilinear Relation between Assertiveness and Leadership,” Journal of Personality and Social Psychology, vol. 92, 2007, pp. 307–324.

12. Survey cited in “What Are the Most Important Traits for Bosses?” Employee Recruitment & Retention, Sample Issue, 2006.

13. Michael E. Palanski and Francis J. Yammarino, “Integrity and Leadership: A Multi-Level Conceptual Framework,” Leadership Quarterly, June 2009, p. 406.

14. Douglas R. May, Adrian Y. L. Chan, Timothy D. Hodges, and Bruce J. Avolio, “Developing the Moral Component of Authentic Leadership,” Organizational Dynamics, no. 3, 2003, pp. 247–260.

15. Alan Deutschman, Walk the Walk (New York: Portfolio, 2009).

16. Linda L. Neider and Chester A. Schriesheim, “The Authentic Leadership Inventory (ALI): Development and Empirical Tests,” Leadership Quarterly, December 2011, p. 1149.

17. Sean T. Hannah, Fred O. Walumbwa, and Louis W. Fry, “Leadership in Action Teams: Team Leader and Members’ Authenticity, Authenticity Strength, and Team Outcomes,” Personnel Psychology, Number 3, 2011, pp. 771–802.

18. Randy G. Pennington, “Trust is An Action Verb,” HR Magazine, February 2012, p. 90.

19. Bruce J. Avolio, Jane M. Howell, and John J. Sosik, “A Funny Thing Happened on the Way to the Bottom Line: Humor as a Moderator of Leadership Style Effects,” Academy of Management Journal, April 1999, pp. 219–227.

20. Kevin Eikenberry, “Who Are You?” Executive Leadership, November 2012, p. 7.

21. Dale E. Zand, The Leadership Triad: Knowledge, Trust, and Power (New York: Oxford, University Press, 1997), p. 8.

22. Dick Bartels, “Wal-Mart Names Chief Merchandising Officer,” Associated Press, January 28, 2011.

23. John Menkes, Executive Intelligence: What All Great Leaders Have (New York: Collins, 2006).

24. Daniel Goleman, “What Makes a Leader?” Harvard Business Review, November–December 1998, p. 92; Goleman, “Never Stop Learning,” Harvard Business Review, January 2004, pp. 28–29.

25. Frank Walter, Michael S. Cole, and Ronald H. Humphrey, “Emotional Intelligence: Sine Qua Non of Leadership or Folderol?” Academy of Management Perspectives, February 2011, pp. 45–59.

26. Michelle Chapman, “J&J’s McCoy New CEO at Avon,” Associated Press, April 10, 2012.

27. Richard Boyatzis and Annie McKee, Resonant Leadership (Boston: Harvard Business School Press, 2005).

28. Victoria A. Visser, Daan van Knippenberg, Gerben A. van Kleef, and Barbara Wisse, “How Leader Displays of Happiness and Sadness Influence Follower Performance: Emotional Contagion and Creative versus Analytical Performance,” Leadership Quarterly, February 2013, pp. 172–188.

29. Jan Wieseke, Florian Kraus, Sascha Alavi, and Tino Kessler-Thönes, “How Leaders. Motivation Transfers to Customer Service Representatives,” Journal of Social Science Research, Number 2, 2011, pp. 214–233.

30. Tom Krisher, “GM Sees Gains as Models Refreshed,” Associated Press, May 19, 2012.

31. David De Cremer, David M. Mayer, Marius van Dijke, Barbara S. Schouten, and Mary Bardes, “When Does Self-Sacrificial Leadership Motivate Prosocial Behavior? It Depends on Followers’ Prevention Focus,” Journal of Applied Psychology, July 2009, pp. 887–899.

32. Fred O. Walumbwa, Chad A. Hartnell, and Adegoke Oke, “Servant Leadership, Procedural Justice Climate, Employee Attitudes, and Organizational Citizenship Behavior: A Cross-Level Investigation,” Journal of Applied Psychology, May 2010, p. 519.

33. Jay A. Conger, The Charismatic Leader: Behind the Mystique of Exceptional Leadership (San Francisco: Jossey-Bass, 1989).

34. Bill Breen, “The Clear Leader,” Fast Company, March 2005, pp. 65–67.

35. Michael E. Brown and Linda K. Treviño, “Socialized Charismatic Leadership, Values, Congruence, and Deviance in Work Groups,” Journal of Applied Psychology, July 2006, p. 955.

36. Amir Erez, Vilmos F. Misangi, Diane E. Johnson, Marcie A. LePine, and Kent C. Halverson, “Stirring the Hearts of Followers: Charismatic Leadership as the Transferal of Affect,” Journal of Applied Psychology, May 2008, pp. 602–616.

37. Vickie Elmer, “How Storytelling Spurs Success,” Fortune, December 6, 2010, p. 76.

38. Suggestions 7, 9, and 10 are from Roger Dawson, Secrets of Power Persuasion (Upper Saddle River, NJ: Prentice Hall, 1992), pp. 181–183, and also supported in John Antonakis, Marika Fenley, and Sue Liechti, “Learning Charisma,” Harvard Business Review, June 2012, p. 129.

39. John Antonakis, Marika Fenley, and Sue Liechti, “Can Charisma Be Taught?” Academy of Management Learning & Education, September 2011, pp. 374-396.

40. A. Skogtad et al., “The Destructiveness of Laissez-Faire Leadership Behavior,” Journal of Occupational Health Psychology, January 2007, pp. 80–92.

41. Prasad Balkundi, Martin Kilduff, and David A. Harrison, “Centrality and Charisma: Comparing How Leader Networks and Attributions Affect Team Performance,” Journal of Applied Psychology, November 2011, pp. 1209–1222.

42. Christopher Hann, “We’re All in This Together,” Entrepreneur, March 2013, p. 57; Tamara L. Friedrich et al., “A Framework for Understanding Collective Leadership: The Selective Utilization of Leader and Team Expertise within Networks,” Leadership Quarterly, December 2009, pp. 933–958.

43. Craig L. Pearce, Charles C. Manz, and Henry P. Sims, Jr., “Where Do We Go from Here? Is Shared Leadership the Key to Success?” Organizational Dynamics, July–September 2009, pp. 234–238.

44. Rishabh Rai and Anand Prakash, “A Relational Perspective to Knowledge Creation: Role of Servant Leadership,” Journal of Leadership Studies, Issue 2, 2012, pp. 61-85.

45. Amy C. Edmonson, “Teamwork on the Fly,” Harvard Business Review, April 2012, p. 78.

46. “Talking It Out: The New Conversation-centered Leadership,” Knowledge@Wharton (http://knowledge.wharton.upenn), March 6, 2012, pp. 1–4. Article based on Alan S. Berson and Richard G. Stieglitz, Leadership Conversations: Challenging High-Potential Managers to Become Great Leaders (San Francisco: Jossey-Bass, 2013).

47. “Pump Up Your Leadership Style,” Manager’s Edge, March 2007, p. 3. Adapted from Patricia Fripp, “Leadership Lesson 2: ‘I’m Glad You Asked’” http://www.fripp.com .

48. Michael Mankins, Alan Bird, and James Root, “Making Star Teams Out of Star Players,” Harvard Business Review, January–February 2013, p. 77; Jon R. Katzenbach and Douglas K. Smith, “The Discipline of Teams,” Harvard Business Review, March–April 1993, p. 118.

49. “What It Takes to Be an Effective Team Leader,” Manager’s Edge, March 2000, p. 6.

50. George Graen and J. F. Cashman, “A Role Making Model of Leadership in Formal Organizations: A Developmental Approach,” in J. G. Hunt and L. L. Larson, eds., Leadership Frontiers (Kent, OH: Kent State University Press, 1975), pp. 143–165; Jia Hu and Robert C. Liden, “Relative Leader-Member Exchange within Team Contexts: How and When Social Comparison Impacts Individual Effectiveness,” Personnel Psychology, Number 1, 2013, pp. 127–172.

51. Robert B. Kaiser, Robert Hogan, and S. Bartholomew Craig, “Leadership and the Fate of Organizations,” American Psychologist, February–March 2008, pp. 96–110.

52. Mina Kimes, “P & G’s Leadership Machine,” Fortune, April 13, 2008, p. 22.

53. Tina Smagala, “Good Leaders Are Always Learning, Growing,” Democrat and Chronicle, March 20, 2012, p. 5B.

54. William D. Hitt, The Model Leader: A Fully Functioning Person (Columbus, OH: Battelle Press, 1993).

55. Michael E. McGill and John W. Slocum, Jr., “A Little Leadership Please?” Organizational Dynamics, Winter 1998, p. 48.

56. Bill Breen, “Trickle-Up Leadership,” Fast Company, November 2001, pp. 70–72.

hapter 11 Motivating Others

Pressmaster/Shutterstock

Learning Objectives

After reading and studying this chapter and completing the exercises, you should be able to

1. Understand how work engagement is related to motivation and commitment.

2. Motivate people by responding to their self-interests.

3. Make effective use of positive reinforcement to motivate people in many situations.

4. Make effective use of recognition to motivate others.

5. Apply expectancy theory as a comprehensive way of motivating others.

6. Diagnose situations to analyze the strength of motivation present.

7. Identify effective techniques for self-motivation.

Miquel is the operations director of a firm that creates online social network style groups for doing market research. These network groups could be described as online focus groups. Such groups express their opinion about the products and services they would like to see on the market or the features they like or dislike about an existing product or service.

Miquel had read several times in management articles that few workers get enough recognition and praise to keep them happy. He also realized that the usual method of giving recognition to employees such as saying, “Great Job” in person would not be so effective because about half the staff worked from home or other remote locations. Miquel also thought that giving technically oriented workers such trinkets as coffee mugs and key chains for good performance might not be to their liking. He also reasoned that sending congratulatory e-mail messages might not seem particularly cool to his staff members who embraced the latest communications technology.

Miguel decided he would send tweets to his staff members when they deserved recognition and also post comments on the walls of their Facebook accounts. During the first two months of his recognition program, Miquel’s posts and tweets included the following:

· “Dude, you were good today. Your suggestion sent our client into orbit.”

· “Kathy, you found us a few outstanding social group members. Each of them has already contributed. Top job, smart lady.”

· “Derek, your analysis of the content of the data on the social networking group for our frozen custard client was sensational. Keep up the good work.”

· “Maria, great work speaks for itself, and your recent work is talking out loud.”

Miquel noticed that staff members seemed quite appreciative of his tweets and posts to express appreciation. “Of course, my staff will get salary increases when possible, but in the meantime this day-to-day appreciation is really good stuff.”

The experience at the social media market research firm illustrates that giving out recognition in a sensible form is a useful part of motivation. Motivation has two meanings: (1) an internal state that leads to effort expended toward objectives and (2) an activity performed by one person to get another to accomplish work. We often think of a manager or leader as the one attempting to motivate group members. Yet many people in the workplace have a need to motivate others. To accomplish their work, people must motivate individuals who report to them, coworkers, supervisors, or customers. Developing motivational skills will therefore help you accomplish more work than you would if you relied strictly on the good nature and team spirit of others.

motivation

An internal state that leads to effort expended toward objectives; an activity performed by one person to get another to accomplish work.

This chapter first describes how worker engagement and commitment is related to motivation. The chapter then describes how to to develop motivational skills based on four related explanations of motivation. We progress from the simplest to the most complex explanation. We also describe techniques for motivating yourself. As a starting point in thinking through how to motivate others, do Self-Assessment Quiz 11-1 .

Work Engagement and The Motivation of Others

Learning Objective 1

A major thrust in motivation on the job is to get workers involved or engaged in their work and commited to the company as well as the work group. Work engagement refers to high levels of personal investment in the work tasks performed in a job.[1] As

Self-Assessment Quiz 11-1

My Approach to Motivating Others

Directions:

Describe how often you act or think in the way indicated by the following statements when you are attempting to motivate another person. Circle the appropriate number for each statement using the following scale: Very Infrequently (VI); Infrequently (I); Sometimes (S); Frequently (F); Very Frequently (VF).

VI I S F VF

1. I ask the other person what he or she is hoping to achieve in the situation. 1 2 3 4 5

2. I attempt to figure out whether the person has the ability to do what I need done. 1 2 3 4 5

3. When another person is heel dragging, it usually means he or she is lazy. 5 4 3 2 1

4. I explain exactly what I want to the person I’m trying to motivate. 1 2 3 4 5

5. I like to give the other person a reward up front so that he or she will be motivated. 5 4 3 2 1

6. I give lots of feedback when another person is performing a task for me. 1 2 3 4 5

7. I like to belittle another person enough so that he or she will be intimidated into doing what I need done. 5 4 3 2 1

8. I make sure that the other person feels treated fairly. 1 2 3 4 5

9. I figure that if I smile nicely, I can get the other person to work as hard as I need. 5 4 3 2 1

10. I attempt to get what I need done by instilling fear in the other person. 5 4 3 2 1

11. I specify exactly what needs to be accomplished. 1 2 3 4 5

12. I generously praise people who help me get my work accomplished. 1 2 3 4 5

13. A job well done is its own reward. I therefore keep praise to a minimum. 5 4 3 2 1

14. I make sure that I let people know how well they have done in meeting my expectations on a task. 1 2 3 4 5

15. To be fair, I attempt to reward people similarly no matter how well they have performed. 5 4 3 2 1

16. When somebody doing work for me performs well, I recognize his or her accomplishments promptly. 1 2 3 4 5

17. Before giving somebody a reward, I attempt to find out what would appeal to that person. 1 2 3 4 5

18. I make it a policy not to thank somebody for doing a job he or she is paid to do. 5 4 3 2 1

19. If people do not know how to perform a task, motivation will suffer. 1 2 3 4 5

20. If properly laid out, many jobs can be self-rewarding. 1 2 3 4 5

Total score:

Scoring and Interpretation:

Add the circled numbers to obtain your total score.

90–100: You have advanced knowledge and skill with respect to motivating others in a work environment. Continue to build on the solid base you have established.

50–89: You have average knowledge and skill with respect to motivating others. With additional study and experience, you will probably develop advanced motivational skills.

20–49: To effectively motivate others in a work environment, you will need to greatly expand your knowledge of motivation theory and techniques.

Source: The idea for this quiz and a few items are from David A. Whetton and Kim S. Cameron, Developing Management Skills, 5th ed. (Upper Saddle River, NJ: Prentice Hall, 2002), pp. 302–303.

a result, the self is injected into the job. The engaged worker would therefore feel personally responsible for good and poor job performance, and would take pride in accomplishments. A director of marketing would likely experience engagement, but so might an amublance medic. Engagement often leads to feeling commited to the job, group, or employer. In the workplace, commitment refers to a perceived psychological bond that employees have with some target associated with their jobs, often another person. [2]

Workers who are both engaged and committed invest a big part of themselves into the job and employer. A wide variety of programs and actions taken by managers and employers can lead to worker engagement and commitment. Among these initiatives are paying workers well, giving them flexible working hours, assigning them meaningful work, providing them adequate health insurance, and recognizing their efforts with gifts. [3]

So how do work engagement and commitment fit into an individual attempting to motivate another person in a work setting? If you use the techniques described in this chapter, you will be motivating others and perhaps helping them become engaged and committed to the cause. Assume that you have a coworker named Bertha who is not doing her fair share in a team effort. You begin to use positive reinforcement, such as patting her on the back when Bertha does pull her weight. Under the best of circumstances, Bertha’s spurt of motivation will facilitate her becoming an engaged and committed team member. Furthermore, your basic motivational technique might lead Bertha to bond with you and the entire team.

Motivation Skill Based on the Principle of “What’s in it for me?”

1. Learning Objective 2

The most fundamental principle of human motivation is that people are motivated by self-interest. This principle is referred to as “What’s in it for me?” or WIIFM (pronounced wiff’em). Reflect on your own experience. Before working hard to accomplish a task, you probably want to know how you will benefit. If your manager asks you to work extra hours to take care of an emergency, you will most likely oblige. Yet underneath you might be thinking, “If I work these extra hours, my boss will think highly of me. As a result, I will probably receive a good performance evaluation and maybe a better-than-average salary increase.”

If your instructor asks you to prepare a lengthy research paper, you might be motivated to work to the best of your ability. But before getting down to the task, it is likely that questions have raced through your mind, such as “Will this paper elevate my grade?” or “Will I pick up information that will help me in my career?”

Why Help Others?

A perplexing issue is how the WIIFM principle explains why people are motivated to help others. Why would a company CEO donate gift baskets of food to homeless people? Why hire a virtually unemployable person for a nonproductive job in the mailroom? People who perform acts of social good receive the reward of feeling better about themselves. In psychological terms, they satisfy their needs to nurture (take care of) others. More cynically, helping those less fortunate leads to recognition for being a Good Samaritan.

The widespread willingness of people to contribute to Web sites that provide useful information to others gives additional insight into what satisfaction many people obtain from working for free. According to Prabhakar Raghavan, chief of Yahoo! Labs Team, approximately 4 to 6 percent of Yahoo’s users contribute their energies for free in such matters as reviewing films or handling questions at Yahoo! Answers. The motivation is often pride. At other times, Internet volunteers combine their motivation to help others with the motivation to build their online presence, or personal brand. ThisNext is a social network in which participants exchange shopping leads, and many volunteers help run the site. Gordon Gould, the operator of ThisNext, says that volunteer workers prosper because “They can build their brands.” [4] The takeaway here is that even when people do not get paid for working, they are usually obtaining an important personal benefit.

Applying the WIIFM Principle

To use the WIIFM principle in motivating others, you have to be aware of the intensity of the person’s desire. A person can be highly motivated, mildly motivated, or only slightly motivated, depending on the intensity of his or her WIIFM principle. A company might offer outstanding performers the opportunity to work at home one day per week. Employees who are intensely motivated to work at home will work virtually up to capacity to achieve a rating of outstanding performer.

To use the WIIFM principle in motivating others, you must find out what needs, desires, or motives a person is attempting to satisfy. A need acts as an internal energy force. You find out what these needs are by asking people what they want or by observing what interests them. For instance, the way a manager might motivate a recognition-hungry group member is to tell that person, “If you perform 10 percent above quota for six consecutive months, we will get you a plaque signifying your achievement to hang on the wall.”

The Importance of Needs

One of the reasons needs are so important in understanding motivation is that needs lead to behavior, or what people actually do. A person might be extraverted because of a need to affiliate with others, so that person might be motivated by the opportunity to work closely with others. Another person might be conscientious partly because of a need for achievement. This individual might be motivated by the opportunity to accomplish useful work. [5]

Employee needs have been classified in many ways, yet most of these lists overlap. According to a representative classification, 99 percent of employees are motivated by one or more of the following seven needs:

1. The need for achievement: Employees with strong achievement needs seek the satisfaction of completing projects successfully. They want to apply their talents to attain success, and they find joy in accomplishment for its own sake.

2. The need for power: Employees with a strong power need derive satisfaction from influencing and controlling others, and they aspire to become executives. These employees like to lead and persuade and be in charge of resources such as budgets.

3. The need for affiliation: Employees with a strong need for affiliation derive satisfaction from interacting with others, being part of a work group, and forming friendships. The same employees are motivated to avoid working alone for long periods of time.

4. The need for autonomy: Employees with a strong need for autonomy seek freedom and independence, such as having almost complete responsibility for a project. The same employees are motivated to avoid working in a team effort for long periods of time. Many industrial sales representatives (those who sell to companies) have a strong need for autonomy.

5. The need for esteem: Employees with a strong need for esteem want to feel good about themselves, and they judge their worth to a large extent based on how much recognition and praise they receive.

6. The need for safety and security: Employees with strong needs for safety and security seek job security, steady income, ample medical and dental insurance, and a hazard-free work environment.

7. The need for equity: Employees with a strong need for equity seek fair treatment. They often compare working hours, job responsibilities, salary, and privileges to those of coworkers, and they will become discouraged if coworkers are receiving better treatment. [6]

Recognizing such needs, as well as other needs and interests, helps you apply the WIIFM principle. Skill-Building Exercise 11-1 gives you the opportunity to do the preliminary work needed for applying the WIIFM principle.

Skill-Building Exercise 11-1

Background Work for WIIFM

Divide the class into pairs of students. In each pair, one student plays the role of a team leader who is developing a plan to highly motivate the team member being interviewed. The other student plays the role of the team member being interviewed. The twist to this role-play, however, is that the team member reflects on his or her actual motivators.

The team leader might ask several or all of these questions while conducting an interview for approximately 15 minutes. In addition, when the team member reveals an important piece of information, the team leader will dig for more details. The team leader should use effective listening skills, as described in Chapter 4 . Suggested interview questions are as follows:

1. Why are you working on this team?

2. What can the company do to make you really happy?

3. What would be a fair reward for performing up to your capacity? On a 1-to-10 scale, how badly do you want this reward?

4. What would be an outstanding reward for performing up to your capacity? On a 1-to-10 scale, how badly do you want this reward?

5. What would be a fantasy reward for performing up to your capacity? On a 1-to-10 scale, how badly do you want this reward?

6. What do you hope to get out of this job?

A brief class discussion might follow the completion of the interviews. A key issue to address in the discussion is the extent to which the interview would be helpful in motivating the team member.

Using Positive Reinforcement to Motivate Others

1. Learning Objective 3

A standard and widely accepted approach to motivating others is to reward them for achieving good results or behaving in a constructive manner. Positive reinforcement means increasing the probability that behavior will be repeated by rewarding people for making the desired response. The phrase increasing the probability means that positive reinforcement improves learning and motivation but is not 100 percent effective. The phrase making the desired response is also noteworthy. To use positive reinforcement properly, a reward must be contingent upon doing something right. Simply paying somebody a compliment or giving the person something of value is not positive reinforcement.

positive reinforcement

Increasing the probability that behavior will be repeated by rewarding people for making the desired response.

Positive reinforcement is easy to visualize with well-structured jobs, such as data entry or producing parts. Yet positive reinforcement is also used to encourage desired behavior in highly paid, complex jobs. An accountant who developed a new method of the company getting paid faster might be rewarded with two extra days of vacation.

Negative reinforcement (or avoidance motivation) means rewarding people by taking away an uncomfortable consequence of their behavior. Negative reinforcement is a reward because a disliked consequence is avoided or withdrawn. You are subject to negative reinforcement when you are told, “Your insurance rate will go down if you receive no traffic violations for 12 months.” The uncomfortable consequence removed is a high insurance premium. Removing the undesirable consequence is contingent upon your making the right response—driving within the law.

negative reinforcement (avoidance motivation)

Rewarding people by taking away an uncomfortable consequence of their behavior.

Be careful not to make the common mistake of confusing negative reinforcement with punishment. Negative reinforcement is the opposite of punishment. It involves rewarding someone by removing a punishment or uncomfortable situation.

To use positive reinforcement effectively, certain rules and procedures must be followed, as outlined in Figure 11-1 . Although using rewards to motivate people seems straightforward, positive reinforcement requires a systematic approach. The rules are specified from the standpoint of the person trying to motivate another individual, such as a team member, coworker, supervisor, or customer.

· Rule 1: State Clearly What Behavior Will Lead to a Reward. The nature of good performance, or the goals, must be agreed upon by the manager and the group member. Clarification might take this form: “We need to decrease by 40 percent the number of new credit card customers who have delinquent accounts of 60 days or more.”

· Rule 2: Choose an Appropriate Reward. An appropriate reward is effective in motivating a given person and feasible from the standpoint of the individual or the company. If one reward does not motivate the person, try another. The importance of

1. State clearly what behavior will lead to a reward.

2. Choose an appropriate reward.

3. Supply ample feedback.

4. Schedule rewards intermittently.

5. Make the reward follow the observed behavior closely in time.

6. Make the reward fit the behavior.

7. Make the reward visible.

8. Change the reward periodically.

9. Reward the group or team also.

Figure 11-1 Rules and Procedures for Positive Reinforcement

choosing the right reward underscores the fact that not all rewards are reinforcers. A reward is something perceived to be of value by the person receiving the reward. (A supervisor might think that giving a gift certificate to a particular fast-food restaurant is a reward, but if the employee dislikes that restaurant it is not a true reward.) If the reward does not lead to strengthening a desired response (such as wearing safety goggles), it is not a true reinforcer. [7]

Figure 11-2 provides a list of factors by employees as to what would satisfy them on the job. At the same time, these factors can be translated into potential rewards for employees. For example, if employees value bonuses, a high-performing employee might be given some assurance of receiving a bonus for above-average employment. Because all of these factors are ranked as important job factors by employees, all of them are potentially appropriate rewards.

· Rule 3: Supply Ample Feedback. Positive reinforcement cannot work without frequent feedback to individuals. Feedback can take the form of simply telling people they have done something right or wrong. Brief e-mail messages or handwritten notes are other forms of feedback. Many effective motivators, including a few technology executives, made extensive use of handwritten thank-you notes. Negative feedback by e-mail should be written tactfully to avoid resentment.

· Rule 4: Schedule Rewards Intermittently. Rewards should not be given on every occasion of good performance. Intermittent rewards sustain desired behaviors longer and also slow down the process of behaviors fading away when they are not rewarded. If each correct performance results in a reward, the behavior will stop shortly after a performance in which the reward is not received. Another problem is that a reward given continuously may lose its impact. Also, automatic rewards for doing the right thing become perceived as entitlements. As the reward becomes almost guaranteed, the employee feels entitled to it, and the reward loses its motivational effectiveness, much like a weekly paycheck. A practical value of intermittent reinforcement is that it saves time. Few managers or team leaders have enough time to dispense rewards for every correct action by group members.

intermittent reward

A reward that is given for good performance occasionally, but not always.

1. Competitive salary.

2. Help in achieving financial security through employee benefits such as dental, disability, and life insurance.

3. Company-matched 401(k) investments.

4. Bonus programs.

5. Flexible schedules.

6. Compressed workweek.

7. Good relationship with the boss.

8. Recognition from employer.

9. Being treated with respect.

10. Making a contribution to the company and perhaps society.

11. Opportunity to advance in career.

12. Help from employer with financial education and planning.

Figure 11-2 What Workers Want from Their Jobs and Their Employers

Source: Table is based on a composite of information from Metlife Study of Employee Benefit Trends, reported in http://www.tlnt.com , April 14, 2012; “Listen up Employers; Employees Know What They Want This Labor Day,” http://www.kronos.com , August 2, 2006, p. 1. The survey was conducted by Harris Interactive and sponsored by Kronos Incorporated. Factor 9 is from Timothy R. Clark, “Engaging the Disengaged,” HR Magazine, April 2008, p. 112; “Employees Want More Recognition, Growth Opportunity,” Monitor on Psychology, May 2011, p. 11.

· Rule 5: Make the Reward Follow the Observed Behavior Closely in Time. For maximum effectiveness, people should be rewarded soon after doing something right. A built-in, or intrinsic, feedback system, such as software working or not working, capitalizes on this principle. If you are administering rewards and punishments, strive to administer them the same day they are earned. Suppose a coworker feeds you exactly the information you need to make a PowerPoint presentation for the group. Send your coworker an e-mail or text message of appreciation right that day. Or be old-fashioned, and thank him or her in person.

· Rule 6: Make the Reward Fit the Behavior. People who are inexperienced in applying positive reinforcement often overdo the intensity of spoken rewards. When an employee does something of an ordinary nature correctly, simple praise such as “Good job” is preferable to “Fantastic performance.” A related idea is that the magnitude of the reward should vary with the magnitude of the accomplishment.

Leadership research confirms the importance of making rewards contingent upon both doing the right thing and the magnitude of the behavior or performance. A study in six banks indicated that when leaders made rewards based on true performance, workers perceived a higher degree of fairness in their work climate (or atmosphere). [8]

· Rule 7: Make the Reward Visible. Another important characteristic of an effective reward is the extent to which it is visible, or noticeable, to other employees. When other workers notice the reward, its impact multiplies because other people observe what kind of behavior is rewarded. [9] Assume that you are being informed about a coworker having received an exciting assignment because of high performance. You might strive to accomplish the same level of performance. Rewards should also be visible, or noticeable, to the employee. A reward of $10 per week for 30 weeks added to a person’s paycheck might be hardly noticeable, after payroll deductions; however, a bonus check for $300 might be very noticeable.

· Rule 8: Change the Reward Periodically. Rewards do not retain their effectiveness indefinitely. Employees and customers lose interest in striving for a reward they have received many times in the past. This is particularly true of a repetitive statement, such as “Nice job” or “Congratulations.” It is helpful for the person giving out the

Skill-Building Exercise 11-2

Positive Reinforcement

In both of the following scenarios, one student plays the role of the person attempting to give positive reinforcement and therefore motivate the other individual. Another student plays the role of the person who is the recipient of these attempts at motivation.

Scenario 1: Rewarding a Customer Service Representative

The customer service manager carefully reviews customer service reports to discover that one service rep has resolved the most complaints for four consecutive weeks. Since this rep has been on the job only for six months, the manager wants to make sure that the rep feels amply rewarded and appreciated. The manager calls the rep into the office to discuss this outstanding performance and give an appropriate reward.

Scenario 2: Rewarding Your Boss

The group member has just received a wonderful assignment from the boss, offering the opportunity to spend a few days with key customers who are located out of town. This is the group member’s first really exciting extra assignment. As a consequence, the worker wants to encourage the boss to keep him or her in mind for future assignments of this nature. The boss was not expecting to be rewarded for making an assignment that fit the company’s needs.

For both scenarios, observers rate the role players on two dimensions, using a 1-to-5 scale from very poor (1) to very good (5). One dimension is “effective use of positive reinforcement techniques.” The second dimension is “acting ability.” A few observers might voluntarily provide feedback to the role players in terms of sharing their ratings and observations. The course instructor might also provide feedback.

rewards to study the list of potential rewards, and try different ones from time to time. A general approach relating to the previous rules is to look for creative ways to apply positive reinforcement. The creativity might be in the selection of the reward or how the reward is administered. For example, choose an especially effective employee, and at the end of the week or month have coworkers gather and clap for the person.

· Rule 9: Reward the Group or Team Also. Positive reinforcement applies to groups as well as individuals in the sense that individuals within the group can be rewarded collectively. An obvious rule is that the group should receive a reward commensurate with its accomplishment; however, several of the other eight rules also apply. An example of a team reward is to implement a “Team of the Month” program.

Perform Skill-Building Exercise 11-2 to practice several of these rules for using positive reinforcement.

Using Recognition to Motivate Others

1. Learning Objective 4

Motivating others by giving them recognition and praise can be considered a direct application of positive reinforcement. Nevertheless, recognition is such a potentially powerful motivator that it merits separate attention. Also, recognition programs to reward and motivate employees are standard practice in business and nonprofit firms. Examples are rewarding high-performing employees with a crystal vase (company logo inscribed) or designating them “employee of the month.” Outstanding sales representatives (“beauty consultants”) at Mary Kay receive recognition and rewards in the form of pink smartphones, pink Buicks, and pink Cadillacs—in the United States, as well as in China and other countries. [10] The pink, however, is just a tinge of pink to give it a modern look. In keeping with the theme of this book, the emphasis is on individual, rather than organizational, use of recognition to motivate.

Why Recognition Is an Effective Motivator

Recognition is a strong motivator because it is a normal human need to crave recognition. At the same time, recognition is effective because most workers feel they do not receive enough notice. A national survey revealed that only 46 percent of respondents agreed with the statement, “Overall, I am satisfied with the employee recognition practices of my employer.” [11] Satisfying the recognition demands of employees, however, does not mean that praise is an adequate substitute for salary. Employees tend to regard compensation as an entitlement, whereas recognition is perceived as a gift. Workers, including your coworkers, want to know that their output is useful to somebody.

Recognition is also important as a motivator because it is often tied in with other motivators. Receiving a pay increase based on performance is a form of positive reinforcement. At the same time, the pay raise provides recognition for having performed well. An extensive study of call centers in the US financial and retail industries over a seven-year period provides evidence of how recognition is tied in with promotions. Call center employees were more interested in promotion than in pay increases exclusively. Promotion, as they perceived it, brought them formal recognition as well as changes in status and responsibilities. [12]

An analysis of company recognition programs indicates that the best programs boost worker engagement, reduce turnover, and usually lead to improved buisness performance. This analysis reinforces the idea that recogntion is an important motivator. [13] The obvious truth is that recognition leads employees to feel appreciated.

Approaches to Giving Recognition

To appeal to the recognition need of others, identify a meritorious behavior and then recognize that behavior with an oral, written, or material reward. E-mail, instant messaging, and text messaging are useful vehicles for providing quick recognition when in-person appreciation is not feasible. (Perhaps sending tweets can be done after working hours.) Also, sometimes people like to print a copy of the recognition they receive. Lisa Orndoff, a manager of employee relations and training at a non-profit society, says that a hand written note helps many employees feel valued. Often they retain these notes of appreciation for a long time. [14]

A growing form of recognition is a peer-to-peer recognition program in which coworkers post compliments about each other on a company social media site. A representative example is the International Fitness Holdings health-club group in Alberta, Canada. To appeal to younger workers and boost participation, the company uses a Facebook-like application that enables 1,100 employees to recognize peers by posting messages to a “team wall.” Private e-mails are used for the same purpose. Employees might be recognized for such good deeds as helping a club member exercise, assisting coworkers with challenging tasks, or even pushing a coworker’s car out of the snow. The program is quite popular among International Fitness employees. [15]

Some specific examples of using recognition to sustain desired behavior (a key aspect of motivation) are as follows:

· A coworker shows you how to more effectively perform an important task on the Internet. Three days later, you send her an e-mail message with a copy to the boss: “Hi, Jessica. Your suggestion about using Twitter to gain some visibility for our newest product was dynamite. I’ve used it five times with success since you showed me what to do.” (You are reinforcing Jessica’s helpful and cooperative behavior.)

· As the team leader, you receive a glowing letter from a customer about how Kent, one of your team members, solved his or her problem. You have the letter laminated and present it as a gift to Kent. (The behavior you are reinforcing is good customer service.)

· One member of your department, Jason, is a mechanical engineer. While at a department lunch taking place during National Engineers Week, you stand up and say, “I want to toast Jason in celebration of National Engineers Week. I certainly wouldn’t want to be sitting in this office building today if a mechanical engineer hadn’t assisted in its construction.” (Here the only behavior you are reinforcing is the goodwill of Jason, so your motivational approach is general rather than specific.)

Colin Hawkins/Getty Images

As you might have inferred from the examples presented, statements of recognition tend to be more effective when they are expressed in specific, rather than general terms. “You’re doing a great job” is an example of a general recognition statement. Here are a few more specific recognition statements:

“You really made a difference by . . . ”

“You’re right on the mark with . . . ”

“We couldn’t have done it without your . . . ” [16]

A high-powered approach to recognizing the achievements of others is for the manager, supervisor, or team leader to hold personal celebrations of outstanding accomplishment. The celebration takes place in person in contrast to disseminating an electronic message, thereby making the celebration more personal. Such types of public recognition might be part of an employee recognition and celebration program. Personal celebrations include having a meal in a restaurant or in the workplace in honor of an outstanding accomplishment such as a major cost-saving suggestion, a major sale, or receiving a patent. Intense group recognition of this type will often boost the self-esteem of the employee who is celebrated.

A worker might conduct a personal celebration of accomplishment by honoring a coworker during a luncheon or beverage break. A warm touch would be to have a T-shirt custom-lettered to describe the accomplishment, such as “Dragon Slayer” or “Anti-Virus Queen.”

Fine Points about Using Recognition to Motivate Others

An outstanding advantage of recognition, including praise, as a motivator is that it is no cost or low cost, yet powerful. Recognition thus provides an enormous return on investment in comparison to a cash bonus. Nevertheless, a challenge in using recognition effectively is that not everyone responds well to the same form of recognition. A good example is that highly technical people tend not to like general praise such as “Great job” or “Awesome.” Instead, they prefer a laid-back, factual statement of how their output made a contribution. Furthermore, women are slightly more responsive to praise than are men, as revealed in a study of working adults. [17]

Giving recognition to others as a motivational tactic is more likely to be effective if a culture of recognition exists within the company. This is true because the person giving the recognition will feel that what he or she is doing fits what top management thinks is appropriate behavior. At the same time, the recipient of the recognition is likely to take it seriously.

The rules for positive reinforcement described previously also apply to giving recognition. For example, a recognition reward given too frequently either becomes stale or regarded as an entitlement. In one business firm, the CEO traditionally bought lunch for all employees every Friday to recognize their contributions. Soon, employees were asking him to be reimbursed for lunch if they ate outside of the company on a Friday. [18]

Using Expectancy Theory to Motivate Others

Learning Objective 5

So far we have described motivating others through applying the principle of WIIFM and positive reinforcement, including recognition. We now shift to expectancy theory, a more comprehensive explanation of motivation that includes elements of the two other approaches. Expectancy theory is given special attention here for these reasons. First, expectancy theory can help you diagnose motivational problems. Second, expectancy theory is comprehensive because it incorporates many different aspects of motivating others. Third, it gives the person attempting to motivate others many guidelines for triggering and sustaining constructive effort from group members.

Capsule Overview of Expectancy Theory

The expectancy theory of motivation is based on the premise that how much effort people expend depends on the reward they expect to receive in return. (Notice the similarity to WIIFM?) Expectancy theory assumes that people are rational and logical, and the process resembles rational gambling. In any given situation, they want to maximize gain and minimize loss. The theory assumes that people choose among alternatives by selecting the one they think they have the best chance of attaining. Furthermore, they choose the alternative that appears to have the biggest personal payoff. How intensely they want that alternative is also an important consideration. Given a choice, people select an assignment they think they can handle and that will benefit them the most.

expectancy theory

A motivation theory based on the premise that the effort people expend depends on the reward they expect to receive in return.

An example will help clarify the central thesis of expectancy theory. Hector, a 27-year-old credit analyst at a machine tool company, recognizes that he needs to increase his income by about $500 per month to cover his expenses. After carefully reviewing his options, Hector narrows his alternatives to the following three choices:

Work as a dining-room server one night a week and on most weekends, with a variable income of somewhere between $600 and $850 per month.

Work for an income tax preparation service about four months per year for 20 hours per week, yielding an annual income of about $7,000.

Work extra hard at his regular job, including taking a course in corporate finance, to improve his chances of receiving a promotion and a salary increase of $700 per month.

Hector rejects the first choice. Although he knows he can do the work, he anticipates several negative outcomes. He would much prefer to engage in extra work related to his field of expertise. The unpredictable income associated with being a dining-room server is also a concern. Hector sees merit in the second alternative because income tax preparation work relates to his accounting background. Furthermore, the outcome (amount of pay) is relatively certain. But Hector also has some concerns that working so many extra hours for four months a year could hurt his performance on his day job.

Hector decides to take a chance with the third alternative of going all out to position himself for promotion. He is confident that he can elevate his performance, but he is much less certain that hard work will lead to promotion. Yet Hector attaches such high value to being promoted and upgrading his professional credentials that he is willing to gamble.

Basic Components of Expectancy Theory

All versions of expectancy theory have the following three major components: effort-to-performance expectancy, performance-to-outcome expectancy, and valence.[19] Figure 11-3 presents a glimpse of expectancy theory.

Effort-to-performance expectancy is the probability assigned by the individual that effort will lead to performing the task correctly. An important question rational people ask themselves before putting forth effort to accomplish a task is this: “If I put in all this work, will I really get the job done properly?” Each behavior is associated in the individual’s mind with a certain expectancy, or subjective hunch of the probability of success.

effort-to-performance expectancy

The probability assigned by the individual that effort will lead to performing the task correctly.

Expectancies range from 0 to 1.0. The expectancy would be 0 if the person thought that there was no chance of performing the task correctly. An expectancy of 1.0 would signify absolute faith in being able to perform the task properly. Expectancies thus influence whether you will even strive to earn a reward. Self-confident people have higher expectancies than do those with low self-confidence. Being well trained will also increase your subjective hunch that you can perform the task.

The importance of having high expectancies for motivation meshes well with a thrust in work motivation that emphasizes the contribution of self-efficacy, the confidence in your ability to carry out a specific task. If you have high self-efficacy about the task, your motivation will be high. Low self-efficacy leads to low motivation.[20] Some people are poorly motivated to skydive because they doubt they will be able to pull the ripcord while free falling at 120 mph.

Performance-to-outcome expectancy is the probability assigned by the individual that performance will lead to certain outcomes or rewards. When people engage in a particular behavior, they do so with the intention of achieving a desired outcome or reward.

Figure 11-3 A Basic Version of Expectancy Theory

Performance-to-outcome expectancies also range from 0 to 1.0. If you believe there is no chance of receiving the desired reward, the assigned probability is 0. If you believe the reward is certain to follow from performing correctly, the assigned probability is 1.0, for example, “I know for sure that if I show up for work every day this month, I will receive my paycheck.”

performance-to-outcome expectancy

The probability assigned by the individual that performance will lead to outcomes or rewards.

Valence is the value, worth, or attractiveness of an outcome. It signifies how intensely you want something (as described in WIIFM). In each work situation there are multiple outcomes, each with a valence of its own. Valence also gets at the idea of what people want, such as some workers striving for a work schedule to balance work and family demands, and others looking for more job challenge. Remember Hector, the credit analyst? The potential outcomes of working part time as an income tax preparer would include extra income, new experience, and interference with his day job.

valence

The value, worth, or attractiveness of an outcome.

In the version of expectancy theory presented here, valences range from 2100 to 1100. A valence of 1100 means that you desire an outcome strongly. A valence of 2100 means that you are strongly motivated to avoid an outcome, such as being fired. A valence of 0 means that you are indifferent toward an outcome, and it is therefore no use as a motivator. An outcome with a probable valence of 0 would be as follows: To gain the cooperation of coworkers, you promise them gold stars as a reward (or outcome).

Skill-Building Exercise 11-3 will help sensitize you to the importance of estimating valences when attempting to motivate others. A major problem faced by managers and others who attempt to motivate workers is that they have limited knowledge about the valences of their motivators (or rewards).

Skill-Building Exercise 11-3

Estimating Valences for Applying Expectancy Theory

Directions:

Listed here are rewards and punishments (outcomes) stemming from job scenarios. Also included is a space for rating the reward or punishment on a scale of 2100 to 1100. Work with about six teammates, with each person rating all the rewards and punishments. Compute the mean (average) rating for each reward and punishment.

Potential Outcome Rating (−100 to + 100)

A 20 percent salary increase

Profit-sharing plan in successful company

Stock ownership in company

Fully paid three-day leave

A $10,000 performance bonus

A $500 gift certificate

Outstanding performance review

Above-average performance review

One-step promotion

Two-step promotion

Flexible working hours

Chance to work at home one day per week

Chance to do more of preferred task

Take over for supervisor when the supervisor is away

Fancy job title without change in pay

Bigger cubicle

Private office

Company-paid smartphone for work and personal use

Wall plaque indicating accomplishment

Employee-of-the-month designation

Warm smile and word of appreciation

Compliment in front of others

Threat of being suspended for a month

One-month suspension without pay

Demotion to undesirable job

Being fired

Being fired combined with promise of negative references

Being placed on probation

Being ridiculed in front of others

A 30 percent pay reduction

After completing the ratings, discuss the following topics:

Which outcomes received the most variable ratings?

Which outcomes received the most similar ratings?

Which are the three most desirable rewards?

Which are the three most undesirable punishments?

Another analytical approach would be to compute the class mean for all 30 outcomes. Each student could then compare his or her rating with the class average.

To apply this technique to the job, modify the preceding outcomes to fit the outcomes available in your work situation. Explain to team members that you are attempting to do a better job of rewarding and disciplining and that you need their input. The ratings made by team members will give strong clues to which rewards and punishments would be the most effective in motivating them.

How Moods Influence Expectancy Theory

Expectancy theory emphasizes the rational side of people, yet emotions still play a key role in determining the impact of expectancies, instrumentalities, and valences. Moods are relatively long-lasting emotional states that do not appear to be tied to a clear source of the emotion. For example, a person might be in a good mood despite experiencing a negative situation such as an automobile breaking down. Also, people may feel glum despite good news such as having won a prize.

Several studies have shown that moods shape people’s perceptions of expectancies and valence in expectancy theory. A positive mood increases the perceived connection between effort and performance (E→P expectancy), between performance and desired outcome (P→O expectancy), and in the valence attached to those outcomes. When we are in a good mood, we are more likely to believe that we can accomplish a task, so we have more of a “can do” attitude. We are also more optimistic about the outcomes (rewards) of our effort, and the outcomes look even better to us.[21] The opposite might also be true: When we are in a bad mood, we feel less capable of task accomplishment, we are more pessimistic about getting the reward, and the reward appears less enticing.

Diagnosing Motivation with Expectancy Theory

Learning Objective 6

An important potential contribution of expectancy theory to interpersonal relations is that it helps a person diagnose whether motivation is present and the intensity of the motivation. In performing your diagnosis, seek answers to the following questions:

Does the person I am attempting to motivate have the skills and self-efficacy to do the job? If the person feels ill-equipped to perform, he or she will be discouraged and show very little motivation.

What assurance does the person have that if he or she performs the work, the promised reward will be forthcoming? Does the company have a decent reputation for following through on promises? What about me? Have I established my credibility as a person who follows through on promises? (If you or the company is not trusted, motivation could be reduced to zero.)

How badly does the person want the reward being offered in the situation? Am I offering a reward that will make it worthwhile for the person to do what I need done? If the sum of the valences of the outcomes in the situation is close to 0 (some positive, some negative), motivation will be absent.

Are there any zeroes in response to the first three questions? If there are, motivation will be absent, because the expectancy theory equation is Motivation 5 (effort-to-performance expectancies) 3 (performance-to-outcome expectancies) 3 (the sum of the valences for all the outcomes). Remember what happens when you multiply by 0 in an equation.

Is the person in a reasonably good mood? Perhaps the person is poorly motivated today because of being in a bad mood.

Guidelines for Applying Expectancy Theory

The information about expectancy theory presented so far provides ideas for motivating others. Here we discuss five additional specific guidelines to improve your skill in motivating others.

Creatas/Thinkstock

Train and encourage people. If you are a manager, you should give employees the necessary training and encouragement to be confident that they can perform the required tasks. Some employees who appear to be poorly motivated simply lack the right skills and self-efficacy.

Make explicit the link between rewards and performance. Employees should be reassured that if they perform the job up to standard, they will receive the promised reward. It is sometimes helpful for employees to speak to coworkers about whether they received promised rewards.

Make sure that the rewards are large enough. Some rewards fail to motivate people because, although they are the right kind, they are not in the right amount. The promise of a large salary increase might be motivational, but a 1 percent increase will probably have little motivational thrust for most workers. An extreme approach is to give outstanding performers something luxurious or self-indulgent that they would rarely purchase for themselves even if they could afford it. An example is a three-day stay in a luxury hotel or an adventure cruise.

Understand individual differences in valences. To motivate others in the workplace effectively, you must discover individual differences in preferences for rewards. An attempt should be made to offer a worker rewards to which he or she attaches a high valence. For instance, one employee might value a high-adventure assignment; another might attach a high valence to a routine, tranquil assignment. Also keep individual differences in mind when attempting to motivate customers. One customer might attach a high valence to a volume discount, while another might favor follow-up service.

Use the Pygmalion effect to increase effort-to-performance expectancies. The Pygmalion effect refers to the phenomenon that people will rise (or fall) to the expectations another person has of them. Even if these expectations are not communicated explicitly, the other person will catch on to the nonverbal language. As the levels of expectation increase, so will performance. The high expectations thus become a self-fulfilling prophecy.

Pygmalion effect

The phenomenon that people will rise (or fall) to the expectations that another person has of them.

It is difficult to keep all the points made about expectancy theory in your head at the same time. Nevertheless, with practice and by referring to this book and your notes, you can apply many of the ideas. Skill-Building Exercise 11-4 will help you get started applying expectancy theory.

All of the techniques for motivating others will work well some of the time, but not all of the time. When faced with a particularly unmotivated person, you may have to repeat a given motivational technique several times. Or you may have to combine techniques such as using several rules for positive reinforcement as well as giving the person recognition and praise, and diagnosing what his or her motivational problem might be. Skill-Building Exercise 11-5 will help you think about dealing with an unmotivated (lazy) person.

echniques for Self-Motivation

1. Learning Objective 7

Many people never achieve satisfying careers and never realize their potential because of low motivation. They believe that they could perform better, but admit that “I’m simply not a high-initiative type” or “I’m simply not that motivated.” Here we describe eight techniques for self-motivation.

Skill-Building Exercise 11-4

Applying Expectancy Theory

One student plays the role of the manager of a telemarketing firm. Another student plays the role of Terry, a telemarketing specialist who has been with the company for three months. Terry is 40 percent below target in selling magazine renewals. The manager calls Terry into the office for a discussion of the problem.

Terry goes on at length to explain how confusing the job has become. Terry makes comments, such as “I don’t even know if I have the right kind of voice for this job. People I reach on the phone think I’m just a kid.” Terry also wonders what kind of money he can make in this job and whether it is a dead-end job. (The student who plays the role of Terry can improvise about more of these kinds of problems.)

The manager will apply expectancy theory to motivate Terry to achieve satisfactory performance. Other class members should jot down statements the manager makes that indicate the use of expectancy theory. Also, observe whether it appears that Terry is being helped.

Skill-Building Exercise 11-5

Motivating an Undermotivated Coworker

You and a coworker are assigned the task of going around the company premises to make suggestions for the company being more environamentally friendly or green. The idea is to spot as many wasted resources as you can. For example, you might identify leaky faucets or drafty windows. Your challenge is that your work partner, Clyde, doesn’t seem to be making any contribution to the project. During one of his field audits, you found him taking a nap on a company bench. You don’t want to report Clyde to management, but you do want him to be more motivated on this important task.

Hold a motivational session with Clyde in which you try to motivate him to work more diligently on your joint task. Another student plays the role of Clyde, who doesn’t see why he should work hard on this goofy assignment. Observers might apply feedback on the effectiveness of the motivational session.

1. Set goals for yourself. Goal setting is one of the most important techniques for self-motivation. If you set long-range goals and support them with a series of smaller goals set for shorter time spans, your motivation will increase.

2. Find intrinsically motivating work. A major factor in self-motivation is to find work that is fun or its own reward. Intrinsic motivation refers to the natural tendency to seek out novelty and challenges, to extend and use one’s capacities, to explore, and to learn. [22] The intrinsically motivated person is involved in the task at hand, such as a technology enthusiast surfing the Web for hours at a time. Finding a job that offers you motivators in ample supply will help enhance your intrinsic motivation. For example, you might have good evidence from your past experience that the opportunity for close contact with people is a personal motivator. Find a job that involves working in a small, friendly department or team.

Intrinsically motivating work often takes the form of meaningful work, or work that has personal meaning to you based on your values and interests. One person might think that working as a store manager for the Salvation Army is meaningful. Another person might think that working as an electronics technician at a missile defense systems company is meaningful.

Based on circumstances, you may have to take whatever job you can find, or you may not be in a position to change jobs. In such a situation, try to arrange your work so that you have more opportunity to experience the reward(s) that you are seeking. Assume that solving difficult problems excites you, but that your job is 85 percent routine. Develop better work habits so that you can take care of the routine aspects of your job more quickly. This will give you more time to enjoy the creative aspects of your job.

3. Get feedback on your performance. Few people can sustain a high level of motivation without receiving information about how well they are doing. Even if you find your work challenging and exciting, you will need feedback. One reason positive feedback is valuable is that it acts as a reward. If you learn that your efforts achieved a worthwhile purpose, you will feel encouraged. For example, if a graphics display you designed was well received by company officials, you would probably want to prepare another graphics display.

A study conducted with management students demonstrated that participants adjusted their goals upward after receiving positive feedback and downward after negative feedback. It was also found that when the students were more emotional about the feedback, the positive and negative results were more pronounced. [23] The link here to self-motivation is that when goals are higher, motivation will be higher.

4. Apply behavior modification to yourself. Many people have used behavior modification to change their own behavior. (This involves rewarding yourself for attaining a goal, and punishing yourself for not attaining a goal.) Specific purposes include overcoming behaviors such as eating disorders, tobacco addiction, Internet abuse, nail biting, and procrastination. First, to boost your own motivation through behavior modification, you would have to decide what specific motivated actions you want to increase (such as working 30 minutes longer each day). Second, you would have to decide on a suitable set of rewards and punishments. You may choose to use rewards only, because rewards are generally better motivators than punishments.

5. Improve your skills relevant to your goals. According to expectancy theory, people hold back effort when they are not confident that their efforts will lead to accomplishments. You should, therefore, seek adequate training to ensure that you have the right abilities and skills to perform your work. The training might be provided by the employer or on your own through a course or self-study. Appropriate training gives you more confidence that you can perform the work. The training also increases your feelings of self-efficacy. By recognizing your ability to mobilize your own resources to succeed, your self-confidence for the task will be elevated. Another motivational advantage of self-efficacy is that you are likely to commit more resources, such as time and money, to attaining a goal when you feel confident that you can perform the task. [24] For example, if you had confidence in your skills to develop an eBay business, you might be willing to spend a lot of time in designing the business and money in buying products to sell on the site.

6. Raise your level of self-expectation. Another strategy for increasing your level of motivation is to simply expect more of yourself. If you raise your level of self-expectation, you are likely to achieve more. Because you expect to succeed, you do succeed. The net effect is the same as if you had increased your level of motivation. The technical term for improving your performance through raising your own expectations is the Galatea effect. High self-expectations and a positive mental attitude take a long time to develop; however, they are critically important for becoming a well-motivated person in a variety of situations.

7. Develop a strong work ethic. A highly effective strategy for self-motivation is to develop a strong work ethic. If you are committed to the idea that most work is valuable and that it is joyful to work hard, you will automatically become strongly motivated. A person with a weak work ethic cannot readily develop a strong one because the change requires a profound value shift. Yet if a person gives a lot of serious thought to the importance of work and follows the right role models, a work ethic can be strengthened. The shift to a strong work ethic is much like a person who has a casual attitude toward doing fine work becoming more prideful.

8. Visualize attaining your goals and being successful. Form images of reaching your goal, meaning that you actually develop an image of accomplishing what you want. As mysterious as this sounds, visualization helps the brain convert images into reality. The more senses you can incorporate into your visual image, the stronger its power. Imagine yourself seeing, hearing, tasting, smelling, and touching your goal. Can you imagine yourself sitting in your luxurious living quarters overlooking the ocean, eating a great meal with a loved one to celebrate the fact that the charity you have founded now helps 10 million under nourished children across the globe?

Skill-Building Exercise 11-6 provides a practical approach to self-motivation.

Skill-Building Exercise 11-6

Working on My Own Motivators

The focus of this chapter has been the skill of motivating others. Yet if you neglect motivating yourself, you (1) might not gain a formal position in which you can motivate others, and (2) you will not be able to motivate others by leading through example. Apply some of the concepts in this chapter to help work through this exercise.

What Motivates Me?

Think back on what situations, and factors within a situation, have prompted you to put forth your best effort and work the hardest—on the job, at community work, at school, in sports, or in other recreational activities such as being a band member. Which needs were you attempting to satisfy? Which tangible or intangible rewards were you pursuing? Here is a portion of a sample answer:

“I was lucky enough to be entered in Domino’s national speed contest for making a store-usable pizza. I jumped into the situation like somebody obsessed. Here I was at 20 years old with a chance to win a national contest and be lifted up over the head of my buddies. I would have been King Pizza for a day. I didn’t win, but I came close.”

“Now I know that competition and recognition get my adrenaline flowing. I think that’s why I will be successful in industrial sales. I need that big carrot dangling out in front of me.”

What Can I Do to Capitalize on My Motivators?

It is helpful to know what motivates you, but it is even more helpful to follow up by placing yourself in situations in which you will be highly motivated. The Pizza King aspirant provides us a good example. Attempt to manage your career by placing yourself in highly motivational situations. For example, if the opportunity to work alone without supervision and the opportunity to schedule your own time motivate you, strive to work at home in the near future.

Now write down the type of situations that will most likely enable you to work at your motivated best.

Concept Review and Reinforcement

Key Terms

1. motivation 255

2. positive reinforcement 259

3. negative reinforcement (avoidance motivation) 259

4. intermittent reward 260

5. expectancy theory 264

6. effort-to-performance expectancy 265

7. performance-to-outcome expectancy 265

8. valence 266

9. Pygmalion effect 268

Summary

Motivation refers to an internal state that leads to effort expended toward objectives and to an activity performed by one person to get another person to work. Managers, as well as people working individually, often need to motivate others.

A major thrust in job motivation is to get workers involved, or engaged, in their work and committed to the company as well as the work group. The engaged worker feels personally responsible for good and poor job performance and takes pride in accomplishments. Workers who are both engaged and committed invest a big part of themselves into their job and employer. Using the motivational techniques described in this chapter will help workers become engaged and committed.

The most fundamental principle of human motivation is that people are motivated by self-interest, referred to as “What’s in it for me?” (WIIFM). Even those who help others are simultaneously helping themselves by feeling good. In using the WIIFM principle, be aware of the intensity of a person’s desire for a reward. Key employee needs that might require satisfaction include achievement, power affiliation, autonomy, esteem, safety and security, and equity.

A standard and widely accepted approach to motivating others is to reward them for achieving good results or behaving in a constructive manner—the use of positive reinforcement. Negative reinforcement, or avoidance motivation, can be used to supplement positive reinforcement. Rules for the effective use of positive reinforcement include the following:

1. State clearly what behavior will lead to a reward.

2. Choose an appropriate reward.

3. Supply ample feedback.

4. Schedule rewards intermittently.

5. Make the reward follow the observed behavior closely in time.

6. Make the reward fit the behavior.

7. Make the reward visible.

8. Change the reward periodically.

9. Reward the group or team also.

Motivating others by giving them recognition and praise is a direct application of positive reinforcement. Recognition is a strong motivator because it is a normal human need to crave recognition, and most workers feel they do not get enough recognition. Also, recognition is often tied in with other motivators, such as a promotion providing recognition to the person. To appeal to the recognition need of others, identify a meritorious behavior and then recognize that behavior with an oral, written, or material reward. Choosing when to deliver recognition can be important.

Recognition and praise are low-cost, powerful motivators. Statements of recognition tend to be more effective when they are specific. High technical people tend not to like general praise, but instead prefer a laid-back factual statement of how their output made a contribution. Recognition is more likely to be an effective motivator in a culture of recognition.

The expectancy theory of motivation assumes that people are decision makers who choose among alternatives by selecting the one that appears to have the biggest personal payoff at the time. Expectancy theory has three major components: expectancies about being able to perform, expectancies about performance leading to certain outcomes, and valence (the value attached to the reward). A positive mood state can enhance the components of expectancy theory.

Expectancy theory is useful in diagnosing whether motivation is present by examining the strength of the expectancies and the valences of the rewards. If any element is 0, motivation will not be present. Expectancy theory provides important ideas for motivating others, including the following:

1. Train and encourage people.

2. Show the link between rewards and performance.

3. Make the rewards large enough.

4. Observe individual differences.

5. Use the Pygmalion effect to increase effort-to-performance expectancies.

Techniques for self-motivation described here are as follows:

1. Set goals for yourself.

2. Find intrinsically motivating work.

3. Get feedback on your performance.

4. Apply behavior modification to yourself.

5. Improve your skills relevant to your goals.

6. Raise your level of self-expectation.

7. Develop a strong work ethic.

8. Visualize attaining your goals and being successful.

Questions for Discussion and Review

1. If people are already paid by their employer to carry out a job, why should it still be important for somebody to motivate them?

2. Suppose a worker is much more interested in personal and family life than performing well or getting promoted. What approach might the worker’s supervisor use to motivate him or her toward high performance?

3. For what purpose would someone need to motivate his or her supervisor?

4. If people really live by the WIIFM principle, how can a leader still achieve teamwork?

5. What evidence can you suggest that some people prefer exciting and interesting work over exceptional financial rewards?

6. Identify several factors in Figure 11-1 that you think would be particularly effective in motivating managers and professional-level workers. Explain your reasoning.

7. Answer question 6 for entry-level service workers, such as supermarket cashiers.

8. How might a person’s high standing on any of the personality traits described in Chapter 2 be related to how easy it would be to motivate that person?

9. How would you identify a reward for which you have a strong valence? And why would that information be useful to you?

10. How might cultural differences affect the valence ratings in Skill-Building Exercise 11-3 ?

The Web Corner

1. http://www.awards.com

2. (One-stop super-site for rewards and recognition)

3. http://www.ehow.com/how_4550770_self-motivation-tips.html

4. (Self-motivation techniques)

5. http://shakeoffthegrind.com

6. (The power of recognition for motivating others)

Internet Skill Builder: Motivating Other People

1. Visit www.nelson-motivation.com to watch a five-minute video clip of one of Bob Nelson’s talks. After watching the video, answer the following questions: (1) What have I learned that I could translate into a skill for motivating other people as well as employees? (2) Which theory, or approach, to motivation does Nelson emphasize in his presentation?

Interpersonal Relations Case 11.1

How Do You Motivate a Coupon Sorter?

The R. G. Blair Company specializes in the distribution and redemption of coupons for groceries and household products sold at supermarkets, convenience stores, and discount department stores. At the heart of its operation is a huge coupon sorting department. The task of sorting coupons into appropriate boxes is performed manually by employees of different ages. Each coupon sorter is surrounded by a never-ending supply of thousands of coupons. Each day, each hour, the work is the same—sorting coupons into their appropriate boxes and sending the boxes on to the next department responsible for their processing.

One day, Jennie, manager of the coupon sorting department, was visited by Lance, her counterpart in another location of the firm. “As I mentioned over the phone,” said Lance, “I am really curious about how you folks are running your coupon sorting department. You seem to be doing well, and we’re having loads of trouble.”

“Thanks for the compliment,” said Jennie. “But what kind of trouble are you having?”

“Our problem is turnover. It’s vicious. We’re having a tough time keeping employees on the job for more than a few months. We have only three satisfactory employees in the department who have stayed with us over one year.”

“Lance, what do you see as the basic problem?” asked Jennie.

“It must obviously be the job itself. It’s a nightmare for the average person. The job isn’t even clean. After a while a lot of the ink on those coupons comes off on your hands and clothing. The employees are forced to wear smocks and Latex gloves unless they want stained clothes and hands. And the coupons never stop arriving.”

“What screening devices has your human resources department used in selecting employees?” inquired Jennie.

“We are trying to be as thorough as we can in terms of the type of people we hire for the job of coupon sorter. We check references. We even use psychological tests. We look for solid citizens who are fairly bright.”

Jennie responded, “Lance I think I’ve located your problem. You are setting your problem-solving ability requirements too high. I suspect that the best coupon sorters would have average to below-average intelligence. People brighter than that would become restless sorting coupons.”

Lance took Jennie’s advice and did install new screening procedures for hiring coupon sorters. After eight months of using these procedures, it seemed that some of Lance’s original problems were under control. Turnover was down, and the newly hired employees seemed to enjoy their work. Several of the new employees even took the initiative to thank management for having given them a job just right for them.

Lance noted, however, that productivity within the group was below company standards. Although the coupon sorters seemed to be enjoying their work, they were too relaxed. They did not seem to pay much attention to the output figures suggested by the company.

Lance paid another visit to Jennie, and said: “This time I have another tale of woe. The suggestions for lowering the problem-solving ability requirements have helped me reduce turnover. And some of the people we hired are good workers. But I think we have a bunch of contented but not highly motivated workers. They like their jobs, but they are working at a pace below what the R.G. Blair Company wants.

“What advice can you give me to get these coupon sorters to hustle a little? As you know, there are strict limits on what we can pay them.”

Case Questions

1. What motivational approach do you suggest be implemented to increase the productivity of these coupon sorters?

2. Why not just fire the poor performers?

3. Putting on your information technology hat for a moment, how could the job of coupon sorter be automated? Or is this a job like that of a cake decorator or brain surgeon that cannot be automated to a large extent?

Interpersonal Skills Role-Play

Jennie Attempts to Fire Up a Coupon Sorter

Jennie, in the case just presented, decides to take a direct approach to motivating the coupon sorters one at a time. She begins by meeting with Clancy, a middle-aged man who was hired into the position a few months ago. Although a friendly person with an excellent attendance record, Clancy is barely meeting his production quota. Jennie believes that by applying the right motivational technique, she might be able to help Clancy become more productive. Clancy is happy to meet with Jennie during working hours, because this means he can get away from the tedious task of sorting coupons for about thirty minutes.

Conduct this role-play for about seven minutes. Observers rate the role players on two dimensions, using a 1-to-5 scale from very poor (1) to very good (5). One dimension is “effective use of human relations techniques.” Focus on the motivational skill that Jenny demonstrates. Look to see if Clancy makes any movement troward being better motivated. The second dimension is “acting ability.” A few observers might voluntarily provide feedback to the role players in terms of sharing their ratings and observations. The course instructor might also provide feedback.

Interpersonal Relations Case 11.2

The Home-Retention Consultant Blues

Alicia works in real estate as a home-retention consultant. Among the services offered by her employer, Magnum Properties, is to help people who are facing foreclosure stay in their homes. She works with clients to help them figure out a way to work with their mortgage holder to renegotiate loans and often to prevent being evicted. Alicia also works with mortgage holders to guide them through short sales, or selling homes for less than the balance on the mortgage when the property owners are way behind on their payments.

Back in 2010, the foreclosure rate in the United States was still relatively high, with 1 of 13 homeowners either 60 days behind in their mortgage payments or facing foreclosure. Alicia was earning a high income because Magnum Properties’ niche in the real estate market was prospering. When asked by an old friend who located her on Facebook how she was doing in her career, Alicia responded:

It’s a mixed bag for me. I see a lot of positives in my work. I make a lot of money, and I drive a sharp car. I’m very modern because I deal with foreclosures and short sales. I am helping a lot of people because I enable some of them to keep a roof over their heads.

My big problem is that the negatives in my work are dragging me down. Some days I can hardly muster up enough energy to follow up on leads of people in trouble to help. In some ways I feel like I’m dealing with the underbelly of humanity. A lot of people I’m trying to help have dug their own graves. They have plenty of money for beer and wine and to run up huge bills for cell phones and online video rentals, but they don’t have the money to pay their mortgages.

I need to stay pumped to keep earning a good living, but some days I just don’t know how to stay motivated. Any suggestions, my friend?

Case Questions

1. What recommendations do you have for Alicia to help her increase her level of self-motivation?

2. To what extent do you think it might be advisable for Alicia to simply switch fields, such as going into traditional real estate selling, so she can stay better self-motivated?

3. What suggestions might you offer Alicia’s manager at Magnum Properties to help her stay motivated?

References

1. Michael S. Christian, Adela S. Garza, and Jerel E. Slaughter, “Work Engagement: A Quantitative Review and Test of Its Relations with Task and Contextual Performance,” Personnel Psychology, Number 1, 2011, p. 89.

2. Russell E. Johnson, Chu-Hsian (Daisy) Chang, and Liu-Qin Yang, “Commitment and Motivation at Work: The Relevance of Employee Identity and Regulatory Focus,” Academy of Management Review, April 2010, p. 227.

3. Gary Kranz, “A Broken Engagement?” Workforce Management, September 2012, p. 10.

4. Quoted in Stephen Baker, “Will Work for Praise,” Business Week, February 16, 2009, pp. 046–049; http://thisnext.com . Accessed March 20, 2013.

5. Piers Steel and Cornelius J. König, “Integrating Theories of Motivation,” Academy of Management Review, October 2006, pp. 895–896.

6. Research summarized in “One of These Seven Things Will Motivate Any Employee in the Company,” Motivational Manager, sample issue, 1998 (Lawrence Ragan Communications, Inc.).

7. Fred Luthans and Alexander D. Stajkovic, “Reinforce for Performance: The Need to Go Beyond Pay and Even Rewards,” Academy of Management Executive, May 1999, p. 52.

8. Fred O. Walumbwa, Cindy Wu, and Bani Orwa, “Contingent Reward Transactional Leadership, Work Attitudes, and Organizational Citizenship Behavior: The Role of Procedural Justice Climate Perceptions and Strength,” The Leadership Quarterly, June 2008, pp. 251, 261.

9. Steven Kerr, Ultimate Rewards: What Really Motivates People to Achieve (Boston: Harvard Business School Publishing, 1997).

10. Emily Glazer, “Mary Kay CEO Wants Pink Caddy in Fast Lane,” The Wall Street Journal, ( http://online.wsj.com ) January 22, 2013, pp. 1–3.

11. “Employers Want More Recognition, Growth Opportunity,” Monitor on Psychology, May 2011, p. 12.

12. Philip Moss, Harold Salzman, and Chris Tilly, “Under Construction: The Continuing Evolution of Job Structures in Call Centers, Industrial Relations, Vol. 47, 2008, pp. 173–208.

13. Meg McSherry Breslin, “Solid Reward Program Can Be Rewarding for Businesses,” Workforce Management, January 2013, p. 8.

14. Cited in Kristyn Schiavone, “4 Tips to Help Make You a Great Manager,” CareerBuilder, October 28, 2012.

15. Dave Zielinski, “Giving Praise,” HR Magazine, October 2012, p. 77.

16. “Ten Sentences That Will Help You Retain Your Best Employees,” Employee Recruitment & Retention, Lawrence Ragan Communications, Inc., sample issue, 2004.

17. Andrew J. DuBrin, “Self-Perceived Technical Orientation and Attitudes Toward Being Flattered,” Psychological Reports, vol. 96, 2005, pp. 852–854.

18. Susan M. Heathfield, “Five Tips for Effective Employee Recognition,” About.com Human Resources, August 6, 2009; http://humanresources.about.com/od/rewardrecognition/a/recognition_tip.htm . Accessed October 7, 2013.

19. The original version of expectancy theory applied to work motivation is Victor Vroom, Work and Motivation (New York: Wiley, 1964). A scholarly update of the theory is presented in Steel and König, “Integrating Theories of Motivation,” pp. 893–895.

20. Alexander D. Stajkovic and Fred Luthans, “Social Cognitive Theory and Self-Efficacy: Going Beyond Traditional Motivational and Behavioral Approaches,” Organizational Dynamics, Spring 1998, p. 66.

21. Steve McShane, “Getting Emotional about Employee Motivation,” Currents (published by New York: McGraw-Hill), September 2004, p. 1; Amir Erez and Alice M. Isen, “The Influence of Positive Affect on the Components of Expectancy Motivation,” Journal of Applied Psychology, December 2002, pp. 1055–1067.

22. Richard M. Ryan and Edward L. Deci, “Self-Determination Theory and the Facilitation of Intrinsic Motivation, Social Development, and Well-Being,” American Psychologist, January 2000, p. 70; Mark Henricks, “Thrill and Fulfilled,” Entrepreneur, June 2008, pp. 78–80.

23. Remus Ilies and Timothy A. Judge, “Goal Regulation across Time: The Effects of Feedback and Affect,” Journal of Applied Psychology, May 2005, pp. 453–467.

24. Jeffrey B. Vancouver, Kristen M. More, and Ryan J. Yoder, “Self-Efficacy and Resource Allocation: Support for a Nonmonotonic, Discontinuous Model,” Journal of Applied Psychology, January 2008, pp. 35–47.

hapter 15 Enhancing Ethical Behavior

BananaStock/Thinkstock

Learning Objectives

After reading and studying this chapter and completing the exercises, you should be able to

1. Recognize the importance of ethical behavior for establishing good interpersonal relationships in organizations.

2. Describe why being ethical is not easy.

3. Identify job situations that often present ethical dilemmas.

4. Use a systematic method for making ethical decisions and behaving ethically.

The US Food and Drug Administration, in partnership with international regulatory and law enforcement agencies, took action in one week against more than 4,100 Internet pharmacies that illegally sell potentially dangerous, unapproved drugs to consumers. Actions taken against the pharmacies included civil and criminal charges, seizure of illegal drugs, and removal of offending Web sites.

The FDA effort resulted in the shutdown of of more than 18,000 illegal pharmaacy Web sites and the seizure of about $10.5 million worth of pharmaceuticals worldwide. The goal of the annual effort, whch involves law enforcement, customs, and regulatory authorities from 100 countries, is to identify producers and distributors of illegal pharmaceutical products and medical devices, and remove these products from the supply chain.

“Consumers in the United States and around the world face a real threat from Internet pharmacies that illegally sell potentially substandard, counterfeit, adulterated, or otherwise unsafe medicines,” said FDA Commissioner Margaret A. Hamburg, M.D. “This week’s efforts show that strong international enforcement efforts are required to combat this global public health problem. The FDA is committed to joining forces to protect consumers from the risks these Web sites present.”

As a follow up to the 4,100 Web sites involved the FDA sent notices to registries, Internet Service Providers (ISPs), and Domain Name Registrants (DNRs), informing them that these Web sites were selling products in violation of US law.

Preliminary findings of the FDA showed that certain products from abroad, such as anntibiotics, antidepressants, and other drugs to treat high cholesterol, diabetes, and high blood pressure, were on their way to US consumers. Many of those products can pose health risks if taken without the supervision of a health care practitioner or if the products have been removed from the market for safety reasons.

Behind each one of the 4,100 Internet pharmacies selling drugs online, there are individuals engaged in unethical and often illegal behavior. [1] Many key people at the Internet companies also had poor enough ethics to know that the Web sites paying them advertising dollars were behaving unethically and illegally.

The federal government report about illegal selling of legal drugs, some of which are contaminated, shows that many business owners and their employees are in dire need of improvement in their ethical behavior. People performing all types of work need a good sense of ethics to be successful. Also, you often need to have an ethical reputation to get the job you want. Ethics refers to moral choices, or what is good and bad, right and wrong, just and unjust, and what people should do. Ethics is the vehicle for turning values into action. If you value fair play, you will do such things as giving honest performance evaluations to members of your group.

We study ethics here because a person’s ethical code has a significant impact on his or her interpersonal relationships. This chapter’s approach will emphasize the importance of ethics, common ethical problems, and guidelines for behaving ethically. Self-Assessment Quiz 15-1 gives you the opportunity to examine your ethical beliefs and attitudes.

Why be Concerned About Business Ethics?

Learning Objective 1

When asked why ethics is important, most people would respond something to the effect that “Ethics is important because it’s the right thing to do. You behave decently in the workplace because your family and religious values have taught you what is right and wrong.” All this is true, but the justification for behaving ethically is more complex, as described next.[2]

Self-Assessment Quiz 15-1

The Ethical Reasoning Inventory

Directions:

Describe how well you agree with each of the following statements, using the following scale: Disagree Strongly (DS); Disagree (D); Neutral (N); Agree (A); Agree Strongly (AS). Circle the number in the appropriate column.

No. DS D N A AS

1. When applying for a job, I would cover up the fact that I had been fired from my most recent job. 5 4 3 2 1

2. Cheating just a few dollars in one’s favor on an expense account is okay if a person needs the money. 5 4 3 2 1

3. Employees should report on each other for wrongdoing. 1 2 3 4 5

4. It is acceptable to give approximate figures for expense account items when one does not have all the receipts. 5 4 3 2 1

5. I see no problem with conducting a little personal business on company time. 5 4 3 2 1

6. I would blame a customer for a problem even if I knew the problem was clearly my fault. 5 4 3 2 1

7. I would fix up a purchasing agent with a date just to close a sale. 5 4 3 2 1

8. I would flirt with my boss just to get a bigger salary increase. 5 4 3 2 1

9. If I received $400 for doing some odd jobs, I would report it on my income tax return. 1 2 3 4 5

10. I see no harm in taking home a few office supplies. 5 4 3 2 1

11. It is acceptable to read the e-mail messages and company social media postings of coworkers, even when not invited to do so. 5 4 3 2 1

12. It is unacceptable to call in sick to take a day off, even if only done once or twice a year. 1 2 3 4 5

13. I would accept a permanent, full-time job even if I knew I wanted the job for only six months. 5 4 3 2 1

14. I would first check company policy before accepting an expensive gift from a supplier. 1 2 3 4 5

15. To be successful in business, a person usually has to ignore ethics. 5 4 3 2 1

16. If I felt physically attracted toward a job candidate, I would hire that person over a more qualified candidate. 5 4 3 2 1

17. On the job, I tell the truth all the time. 1 2 3 4 5

18. If a student were very pressed for time, it would be acceptable to either have a friend write the paper or purchase one. 5 4 3 2 1

19. I would be willing to put a hazardous chemical in a consumer product if the product makes a good profit for the company. 5 4 3 2 1

20. I would never accept credit for a coworker’s ideas. 1 2 3 4 5

Total score:

Scoring and Interpretation:

Add the numbers you have circled to obtain your total score.

90–100: You are a strongly ethical person who may take a little ribbing from coworkers for being too straitlaced.

60–89: You show an average degree of ethical awareness, and therefore should become more sensitive to ethical issues.

41–59: Your ethics are underdeveloped, but you at least have some awareness of ethical issues. You need to raise your level of awareness of ethical issues.

20–40: Your ethical values are far below contemporary standards in business. Begin a serious study of business ethics.

A major justification for behaving ethically on the job is to recognize that people are motivated by both self-interest and moral commitments. Most people want to maximize gain for themselves (remember the expectancy theory of motivation?). At the same time, most people are motivated to do something morally right. As one of many examples, vast numbers of people donate money to charity even though keeping that amount of money for themselves would provide more personal gain.

Many business executives want employees to behave ethically because a good reputation can enhance business. A favorable corporate reputation may enable firms to charge premium prices and attract better job applicants. A favorable reputation also helps attract investors, such as mutual fund managers who purchase stock in companies. Certain mutual funds, for example, invest only in companies that are environmentally friendly. Managers want employees to behave ethically because unethical behavior—for example, employee theft, wasting time on the job, and lawsuits—is costly.

Behaving ethically is also important because many unethical acts are illegal as well, which can lead to financial loss and imprisonment. According to one estimate, the cost of unethical and fraudulent acts committed by US employees totals $400 billion per year. A company that knowingly allows workers to engage in unsafe practices might be fined, and the executives may be held personally liable. In 2011, Google Inc. paid $500 million to settle the criminal probe into allowing improper online pharmacy ads on its Web site. Google later stopped running the ads, and the FDA investigation was dropped. [3]

Furthermore, unsafe practices can kill people. In recent years many people have perished in night club fires because there was only one door in operation, or unsafe pyrotechnics were on the premises. The financial scandals in recent years that resulted in major losses for millions of investors stemmed in part from financial managers making such risky investments that they were unethical. Securities were sold to the public that were based on loans to consumers with very poor credit ratings. The FDA report presented at the beginning of this chapter indicates that the unethical sale of drugs online can result in consumers ingesting dangerous substances.

A subtle reason for behaving ethically is that high ethics increases the quality of work life. Ethics provides a set of guidelines that specify what makes for acceptable behavior. Being ethical will point you toward actions that make life more satisfying for work associates. A company code of ethics specifies what constitutes ethical versus unethical behavior. When employees follow this code, the quality of work life improves. Several sample clauses from ethical codes are as follows:

· Demonstrate courtesy, respect, honesty, and fairness.

· Do not use abusive language.

· Do not bring firearms or knives to work.

· Do not offer bribes.

· Maintain confidentiality of records.

· Do not harass (sexually, racially, ethnically, or physically) subordinates, superiors, coworkers, customers, or suppliers.

To the extent that all members of the organization abide by this ethical code, the quality of work life will improve. At the same time, interpersonal relations in organizations will be strengthened.

Why we Have so Many Ethical Problems

1. Learning Objective 2

To become more skilled at behaving ethically, it is important to familiarize yourself with common ethical problems in organizations. Whether or not a given situation presents an ethical problem for a person depends to some extent on its moral intensity , or how deeply others might be affected. [4] A worker might face a strong ethical conflict about dumping mercury into a water supply but would be less concerned about dumping cleaning fluid. Yet both acts would be considered unethical and illegal. Here we first look at why being ethical is not as easy as it sounds. We then look at some data about the frequency of ethical problems and an analysis of predictable ethical temptations, and also examine the subtle ethical dilemma of choosing between rights.

moral intensity

In ethical decision making, how deeply others might be affected by the decision.

Michael Stravato/AP Images

Why Being Ethical Isn’t Easy

As analyzed by Linda Klebe Treviño and Michael E. Brown, behaving ethically in business is more complex than it seems on the surface for a variety of reasons, as described next. [5]

1. Complexity of ethical decisions. To begin with, ethical decisions are complex. For example, someone might argue that hiring children for factory jobs in overseas countries is unethical. Yet if these children lose their jobs, many would starve or turn to crime to survive. Second, people do not always recognize the moral issues involved in a decision. The home-maintenance worker who finds a butcher knife under the bed might not think that he has a role to play in perhaps preventing murder. Sometimes language hides the moral issue involved, such as when the term “file sharing” music replaces “stealing” music.

2. Predisposition to be unethical. A fundamental reason that being ethical is not always easy is that some people have a predisposition to be unethical. The predisposition works almost like a personality trait, compelling certain people to be devious. A person with a utilitarian predisposition believes that the value of an act’s outcomes should determine whether it is moral. [6] A server with this predisposition might be willing to serve food that dropped on the floor, so long as no customer became sick or sued the restaurant. A small business owner with a utilitarian predisposition might be willing to sell fake luxury goods on the Internet so long as nobody complained, and he or she was not caught. When asked about why he sold imitation watches, one vendor said, “What’s the difference? My watches look like the real thing, and they tell time.”

3. Self-interest. Another major contributor to ethical problems is the same factor that motivates people to do many things—acting out of self-interest. John Bogle, the founder and former chief executive of the Vanguard Group of Mutual Funds, believes that self-interest contributed to the financial scandals of recent years. (And financial scandals of enormous proportions continue.) “But self-interest got out of hand. It created a bottom-line society in which success is measured in monetary terms. Dollars became the coin of the new realm. Unchecked market forces overwhelmed traditional standards of professional conduct, developed over centuries.” [7]

Another take on self-interest is that employee fraud intensifies during difficult financial times in which workers are experiencing financial pressures in their personal lives. Among these frauds are check-forgery schemes, petty-cash thefts, and taking money from fabricated customer returns. [8] All of these schemes are illegal as well as unethical.

4. Levels of moral development. Another complexity in making ethical decisions is that people have different levels of moral development. At one end of the scale, some people behave morally just to escape punishment. At the other end of the scale, some people are morally developed to the point that they are guided by principles of justice and want to help as many people as possible. The environment in which we work also influences whether we behave ethically. Suppose a restaurant owner encourages such practices as serving customers food that was accidentally dropped on the kitchen floor. An individual server is more likely to engage in such behavior to obey the demands of the owner—even though the server knows that dangerous bacteria may have attached to the food.

5. Moral disengagement. Closely related to moral development is that some people have a tendency to morally disengage, or think in such a way that avoids being moral without feeling distress. A product development specialist might morally disengage from selling a trade secret to a competitor by rationalizing that he or she is underpaid and therefore deserves supplementary income from working so hard. Workers with a strong tendency to morally disengage have been shown to engage in such behaviors as committing fraud, and self-reported lying, cheating, and stealing. [9]

6. Goals that reward unethical behavior. Another major reason for unethical behavior in business is that goals sometimes reward unethical behavior, such as sales representatives being rewarded for sales with less attention to how the sale is accomplished. To enhance sales, the representative might then offer a bribe (or kickback) to the customer in order to attain the sale. Another example is that a dental hygienist might be assigned a goal of increasing teeth-whitening procedures by 15 percent. She might then encourage people to have their teeth whitened whose teeth are already white enough for practical purposes.

7. Motivated blindness. Ethics professors Max H. Bazerman of Harvard and Ann E. Tenbrunsel at the Notre Dame University explain that another reason for poor corporate ethics is motivated blindness. People tend to see what they want to see and easily block out contradictory information when it is in their interest to remain uninformed. [10] A mortgage broker intent on placing a lot of mortgages may be almost unconsciously motivated to overlook certain credit red flags on a mortgage application, such as the applicant having no savings account. To find red flags in the application represents a conflict of interest between selling the mortgage to a bank and making an honest appraisal of the mortgage application.

The Extent of Ethical Problems

Ethical violations by workers at all job levels are widespread, even if decreasing from years past. According to the 2011 National Business Ethics Survey, 45 percent of US employees observed a violation of the law or ethics standards at their workplace. Sixty-five percent of employees reported wrongdoing, but one out of five employees who reported the misdeeds were retaliated against. An example of retaliation would be to receive a poor performance evalution or be denied a promotion. Here are a few findings from the survey:

· Misconduct witnessed by American workers is low in comparison to previous years, whereas reporting of the misconduct is quite high.

· Thirteen percent of employees perceived pressure to compromise standards in order to do their jobs.

· As the economy improves and employees become more optimistic about their financial futures they engage in more misconduct—most likely because they worry less about beign fired for an ethical transgression, such as taking care of personal business on the job.

· Active social networkers report many negative experiences in their workplace. At the same time, active social networkers show a higher tolerance for certain activities that could be considered questionable, such as being bullied.

Earlier surveys have indicated such specific problems as lying to employees, engaging in health and safety violations, stealing, and sexual harassment. [11] These findings might suggest that workers are observant of ethical problems and willing to note them on a survey.

Figure 15-1 Frequent Ethical Dilemmas

Many ethical temptations face the individual on the job, forcing him or her to think through ethical issues practically every workday.

Frequent Ethical Problems

Certain ethical mistakes, including illegal actions, recur in the workplace. Familiarizing oneself can be helpful in monitoring one’s own behavior. The next subsections describe a number of common ethical problems faced by business executives as well as by workers at lower job levels. [12] Figure 15-1 outlines these problems.

Illegally Copying Software

A rampant ethical problem is whether or not to illegally copy computer software, including downloads from the Internet. According to the Business Software Alliance, approximately 35 percent of applications used in business are illegal. [13] The rate of piracy for personal use might be higher because individuals tend to worry less about being caught than does a business enterprise.

Treating People Unfairly

Being fair to people means equity, reciprocity, and impartiality. Fairness revolves around the issue of giving people equal rewards for accomplishing equal amounts of work. The goal of human resource legislation is to make decisions about people based on their qualifications and performance—not on the basis of demographic factors such as gender, race, or age. A fair working environment is one in which performance is the only factor that counts (equity). Employer–employee expectations must be understood and met (reciprocity). Prejudice and bias must be eliminated (impartiality).

Treating people fairly—and therefore ethically—requires a de-emphasis on political factors, or favoritism. Yet this ethical doctrine is not always easy to implement. It is human nature to want to give bigger rewards (such as fatter raises or bigger orders) to people we like.

A major contributor to treating people unfairly is cronyism, or giving jobs to people who have done personal favors for you. Often an unqualified friend is given a position even though competent and qualified candidates are available. Cronyism is often practiced in government, wherein heads of government agencies are sometimes appointed mostly because they are supporters and friends of the person in power.

Sexually Harassing Coworkers

In Chapter 9 , we looked at sexual harassment as a source of conflict and an illegal act. Sexual harassment is also an ethical issue because it is morally wrong and unfair. All acts of sexual harassment flunk an ethics test. Before sexually harassing another person, the potential harasser should ask, “Would I want a loved one to be treated this way?”

Follow the Platinum Rule: Treat people the way they wish to be treated.

—Eric Harvey and Scott Airitam, authors of Ethics 4 Everyone

Facing a Conflict of Interest

Part of being ethical is making business judgments only on the basis of the merits or facts in a situation. Imagine that you are a supervisor who is romantically involved with a worker within the group. When it comes time to assign raises, it will be difficult for you to be objective. A conflict of interest occurs when your judgment or objectivity is compromised. Conflicts of interest often take place in the sales end of business. If a company representative accepts a large gift from a sales representative, it may be difficult to make objective judgments about buying from the rep. Yet being taken to dinner by a vendor would not ordinarily cloud one’s judgment. Another common example of a conflict of interest is making a hiring decision about a friend who badly needs a job, but is not well qualified for the position.

conflict of interest

A situation that occurs when a person’s judgment or objectivity is compromised.

Blogging has created a new type of conflict of interest because many bloggers are paid for those kind, supposedly objective comments they insert on the Internet about products and services. The Federal Trade Commission now requires bloggers to clearly disclose any payments or freebies they receive from companies for publishing reviews about their products or services. Penalties include a maximum fine of up to $11,000 per violation. [14]

Abusing Confidential Information

An ethical person can be trusted by others not to divulge confidential information unless the welfare of others is at stake. Suppose a coworker tells you in confidence that she is upset with the company and is therefore looking for another job. Behaving ethically, you do not pass along this information to your supervisor even though it would help your supervisor plan for a replacement. Now suppose the scenario changes slightly. Your coworker tells you she is looking for another job because she is upset. She tells you she is so upset that she plans to destroy company computer files on her last day. If your friend does find another job, you might warn the company about her contemplated activities.

The challenge of dealing with confidential information arises in many areas of business, many of which affect interpersonal relations. If you learned that a coworker was indicted for a crime, charged with sexual harassment, or facing bankruptcy, there would be a temptation to gossip about the person. A highly ethical person would not pass along information about the personal difficulties of another person.

Misrepresenting Employment or Education History

Many people are tempted to distort in a positive direction information about their employment or education history on their job résumé, on their job application form, and during the interview. Distortion, or lying, of this type is considered to be unethical and can lead to immediate dismissal if discovered. Misrepresentation of credentials takes place at all job levels. Inflated credentials in the executive suite have been an embarrassment to many companies. A survey of 358 senior executives at 53 publicly traded companies has uncovered seven instances of inaccurate claims that an individual had received an academic degree. In recent years, misrepresentation of academic credentials has cost top corporate officials their positions at companies, including RadioShack Corp., Veritas Software Corp., Herbalife International, and Yahoo! Inc.. A former president of the US Olympic Committee resigned from her post because she lied about past college degrees. [15]

Misusing Corporate Resources

A corporate resource is anything the company owns, including its name and reputation. If Jake Petro worked for Ford Motor Company, for example, it would be unethical for him to establish a body shop and put on his letterhead and Web site, “Jake Petro, Manufacturing Technician, Ford Motor Company.” (The card and Web site would imply that Ford Motor Co. supports this venture.) Other uses of corporate resources fall more into the gray area. It might be quite ethical to borrow a tablet computer for the weekend from your employer to conduct work at home; it would be less ethical to borrow the computer to prepare income taxes. In the latter case, you might be accused of using corporate resources for personal purposes. Loading personal software on company computers so that you can access your bank account and so forth also can be considered an ethical violation.

Ethically Violating Computers and Information Technology

As computers dominate the workplace, many ethical issues have arisen in addition to pirating software. One ethical dilemma that surfaces frequently is the fairness of tracking the Web sites a person visits and those he or she buys from. Should this information be sold, like a mailing list? The scams that appear on e-mail every day are another prime example of the unethical use of information technology. Another issue is the fairness of having an employee work at a keyboard for 60 hours in one week when such behavior frequently leads to repetitive motion disorder, vision problems, and back pain.

Wasting Company Time

Many workers waste company time in the pursuit of personal interests. Among these time wasters are making personal phone calls, shopping by phone or the Internet, visiting sports and pornography sites, talking about personal matters with coworkers, daydreaming, and spending long periods of time smoking outside the building. The problem has become so severe with smartphones and text messaging that many employers forbid the use of smartphones while working. A complicating factor, however, is that many employers allow and even encourage workers to use their own electronic gadgets on the job for work purposes. The section in Chapter 16 about personal productivity presents data about time wasting on the job.

Engaging in Unethical Behavior to Benefit the Company

A final ethical dilemma here is whether to engage in unethical behavior in order to help the company. This type of dilemma also contributes to unethical behavior in the workplace. Employees will be tempted to engage in unethical acts in order to benefit the company, in such ways as the following: (1) “cooking” numbers to boost the prediction of financial analysts’ projections and stock values; (2) withholding information about the hazards of a pharmaceutical product; and (3) neglecting to give customers correct change when the amount is small, such as 25 cents.

Two studies found that workers were more likely to engage in unethical behavior when they identify with their employer, and at the same time expect they will be rewarded for such behavior. [16] An example would be receiving a favorable performance evaluation for benefiting the company with unethical behavior.

You may have observed that these common ethical problems are not always clear-cut. Aside from obvious matters such as prohibitions against stealing, lying, cheating, and intimidating, subjectivity enters into ethical decision making. Skill-Building Exercise 15-1 provides an opportunity to try out your ethical reasoning.

Choosing between Two Rights: Dealing with Defining Moments

Ethical decision making usually involves choosing between two options: one we perceive to be right and one we perceive to be wrong. A challenging twist to ethical decision making is to sort through your values when you have to choose between two rights, or two morally sound choices. Joseph L. Badaracco Jr. uses the term defining moment to describe choosing between two or more ideals in which we deeply believe. [17] If you can learn to work through defining moments, your ethical skills will be enhanced. Imagine the following scenario:

defining moment

Choosing between two or more ideals in which one deeply believes.

You work for an employer that has a policy of forbidding unauthorized personnel to stay on company premises. As you exit the office building one day through a back door, you notice a homeless-appearing person sleeping under a stairwell. The temperature outside the building is 105 degrees (F). You imagine that the sleeping visitor is attempting to escape the horrendous heat, perhaps even to survive. Do you call the security department to escort the man out the building, or do you just let him enjoy his comfortable sleeping place, thereby violating company policy?

You may have recognized that a defining moment is a role conflict in which you have to choose between competing values. A CEO might deeply believe that she has an obligation to the stockholders to make a profit, and also believe in being generous and fair toward employees. To make a profit this year, however, she will be forced to lay off several good employees with long seniority. The CEO now faces a moment of truth. Badaracco suggests that the individual can work through a defining moment by discovering “Who am I?” You discover who you are by soul-searching answers to three questions:

1. What feelings and intuitions are coming into conflict in this situation?

2. Which of the values that are in conflict are the most deeply rooted in my life?

Skill-Building Exercise 15-1

The Ethics Game

Many companies teach ethics by asking small teams of employees to confront difficult scenarios such as those that follow. Discuss these ethical problems in teams. As you discuss the scenarios, identify the ethical issues involved.

Scenario 1:

One of your assignments is to find a contractor to conduct building maintenance for your company headquarters. You invite bids for the job. High-Performance Cleaners, a firm staffed largely by teenagers from troubled families who have criminal records, bids on the job.

Many of these teenagers also have severe learning disabilities and cannot readily find employment. High-Performance Cleaners proves to be the second highest bidder. You:

B. Advise High-Performance Cleaners that its bid is too high for consideration and that your company is not a social agency.

B. Award the bid to High-Performance Cleaners, and justify your actions with a letter to top management talking about social responsibility.

B. Falsify the other bids in your report to management, making High-Performance Cleaners the low bidder—and thus the contract winner.

B. Explain to High-Performance Cleaners that it lost the bid, but you will award the company a piece of the contract because of its sterling work with teenagers in need.

Scenario 2:

You live in Texas, and your company sends you on a three-day trip to New York City. Your business dealings in the Big Apple will keep you there Wednesday, Thursday, and Friday morning. You have several friends and relatives in New York, so you decide to stay there until Sunday afternoon. Besides, you want to engage in tourist activities such as taking a boat tour around Manhattan and visiting Radio City Music Hall. When preparing your expense report for your trip, you request payment for all your business-related costs up through Friday afternoon, plus

B. Your return trip on Sunday.

B. The return trip and the room cost for Friday and Saturday nights.

B. The return trip, one-half of your weekend food expenses, and two extra nights in the hotel.

B. The return trip and your food costs for the weekend (which you justify because you ate at fast-food restaurants on Wednesday, Thursday, and Friday).

Scenario 3:

You are the leader of a work team in a financial services company. The work of your team has expanded to the point where you are authorized to hire another team member. The team busily interviews a number of candidates from inside and outside the company. The other team members agree that one of the candidates (Pat) has truly outstanding credentials. You agree that Pat is a strong candidate, yet you don’t want Pat on the team because the two of you were emotionally involved for about a year. You think that working with Pat would disrupt your concentration and bring back hurtful memories. You decide to

B. Tell the group that you have some negative information about Pat’s past that would disqualify Pat for the job.

B. Telephone Pat and beg that Pat find employment elsewhere.

B. Tell the group that you agree Pat is qualified, but explain your concerns about the disruption in concentration and emotional hurt.

B. Tell the group that you agree Pat is right for the position, and mention nothing about the past relationship.

Scoring and Observation:

Scenario 1, about High-Performance Cleaners, raises dozens of ethical questions, including whether humanitarian considerations can outweigh profit concerns. Teams that chose “A” receive 0 points; “B,” 15 points; “C,” 210 points; “D,” 20 points. (Answer “D” is best here because it would not be fair to give the bid to the second-highest bidder; however, you are still finding a way to reward the High-Performance Cleaners for its meritorious work in the community. Answer “C” is the worst because you would be outright lying.)

Scenario 2 raises ethical issues about using company resources. Teams that chose “A” receive 20 points; “B,” –10 points; “C,” –15 points; “D,” 0 points. (Answer “A” is fairest because the company would expect to reimburse you for your roundtrip plus the expenses up through Friday afternoon. Answer “C” is the worst because it would be unjustified for you to be reimbursed for your vacation in New York.)

Scenario 3 raises issues about fairness in making selection decisions. Teams that chose “A” receive –20 points; “B,” –10 points; “C,” 15 points; “D,” 0 points. (Answer “C” is the most ethical because you are being honest with the group about the reason you do not wish to hire Pat. Answer “A” is the most unethical because you are telling lies about Pat. Furthermore, you might be committing the illegal act of libel.)

1. What combinations of expediency and shrewdness, coupled with imagination and boldness, will help me implement my personal understanding of what is right?

Skill-Building Exercise 15-2 gives you an opportunity to deal with defining moments. The three questions just asked could help you find answers, but do not be constrained by these questions.

Guidelines for Behaving Ethically

1. Learning Objective 3

Following guidelines for ethical behavior is the heart of being ethical. Although many people behave ethically without studying ethical guidelines, they are usually following guidelines programmed into their minds early in life. The Golden Rule exemplifies a

Skill-Building Exercise 15-2

Dealing with Defining Moments

The toughest ethical choices for many people occur when they have to choose between two rights. The result is a defining moment, because we are challenged to think in a deeper way by choosing between two or more ideals. Working individually or in teams, deal with the two following defining moments. Explain why these scenarios could require choosing between two rights, and explain the reasoning behind your decisions.

Scenario 1:

You are the manager of a department in a business firm that assigns each department a fixed amount of money for salary increases each year. An average-performing member of the department asks you in advance for an above-average increase. He explains that his mother has developed multiple sclerosis and requires the services of a paid helper from time to time. You are concerned that if you give this man an above-average increase, somebody else in the department will have to receive a below-average increase.

Scenario 2:

You are the team leader of an e-tailing (retail selling over the Internet) group. In recent months each team member has been working about 60 hours per week, with little prospect of the workload decreasing in the future. Since the e-tailing project is still losing money, higher management insists that one person be dropped from the team. One member of the team, Mildred, is willing to work only 45 hours per week because she spends considerable time volunteering with autistic children. Mildred’s work is satisfactory, but her output is the lowest in the group because of her shorter number of working hours. You must make a decision about whether to recommend that Mildred be dismissed.

guideline taught by parents, grandparents, and kindergarten teachers. In this section, we approach ethical guidelines from five perspectives: (1) developing virtuousness including honesty and integrity, (2) following a guide to ethical decision making, (3) developing strong relationships with work associates, (4) using corporate ethics programs, and (5) following an applicable professional code of conduct.

Developing Virtuousness Including Honesty and Integrity

A deep-rooted approach to behaving ethically is to have strong moral and ethical principles, or to be virtuous. A person of high virtue has good character and genuine motivation and intentions. A major problem in becoming virtuous is to agree on what values constitute virtuousness. A key component of virtousness is honesty , the refusal to fake reality, a value that contributes directly to ethical behavior. Being dishonest can also be illegal, such as when a company lies to the Internal Revenue Service about expenses it incurred or hides revenue when preparing a tax report. [18] Dishonesty in terms of making false statements about the financial health of an enterprise has been one of the most frequent business frauds. Being caught lying can lead to dismissal at many employers. An example of such a lie would be blaming someone else for a mistake of your own.

honesty

The refusal to fake reality.

Integrity means loyalty to one’s rational convictions, or sticking with one’s principles. If you believe that favoritism is immoral, then you would not recommend that the company hire a friend of yours who you know to be unqualified. Integrity in turn leads to being trusted, because trust stems from delivering consistently on what you promise as a manager, an employee, and a coworker. [19]

integrity

Loyalty to one’s rational convictions, or sticking with one’s principles.

Seeing the Big Picture

A key contributor to being ethical is to understand how the work you are doing fits into the big picture or the total consequences of your actions. To take an obvious example, the assistant pharmacist is behaving ethically when he or she concentrates totally on filling a prescription. To do otherwise might be to endanger the health of a customer by giving that person the wrong prescription or the wrong dose. R. Glenn Hubbard, dean of the Columbia Business School, believes that future leaders must connect the dots, or see the big picture instead of focusing on their area of expertise. [20] For example, if the head of finance calls for a reduction in expenses for new product development, the company may be injured in the long run. Or if the head chef uses horsemeat instead of beef in certain dishes, an exposé may result that runs the restaurant out of business. (In the examples of the financial officer and the chef, the big picture is the future of the employer, and the small picture is making an immediate dollar savings.)

Following a Guide to Ethical Decision Making

1. Learning Objective 4

A powerful strategy for behaving ethically is to follow a guide for ethical decision making. Such a guide for making contemplated decisions includes testing ethics. Ethical screening refers to running a contemplated decision or action through an ethics test. Such screening makes the most sense when the contemplated action or decision is not clearly ethical or unethical. If a sales representative were to take a favorite customer to Pizza Hut for lunch, an ethical screen would not be necessary. Nobody would interpret a pizza, salad, and a beer or soft drink to be a serious bribe. Assume, instead, that the sales rep offered to give the customer an under-the-table gift of $1000 for placing a large offer with the rep’s firm. The sales representative’s behavior would be so blatantly unethical that conducting an ethical screen would be unnecessary.

ethical screening

Running a contemplated decision or action through an ethics test.

Several useful ethical screens, or guides to ethical decision making, have been developed. A guide developed by Treviño and Nelson is presented here because it incorporates the basic ideas in other ethical tests. [21] After studying this guide, you will be asked to ethically screen three different scenarios. The eight steps to sound ethical decision making follow.

1. Gather the facts. When making an important decision in business, it is necessary to gather relevant facts. Ask yourself the following questions: “Are there any legal issues involved here?” “Is there precedent in our firm with respect to this type of decision?” “Do I have the authority to make this decision?” “Are there company rules and regulations governing such a decision?”

The manager of a child care center needed to hire an additional child care specialist. One of the applicants was a 55-year-old male with experience as a father and grandfather. The manager judged him to be qualified, yet she knew that many parents would not want their preschool children to be cared for by a middle-aged male. Many people perceive that a younger woman is better qualified for child care than an older man. The manager therefore had to gather considerable facts about the situation, including facts about job discrimination and precedents in hiring males as child care specialists.

Gathering facts is influenced by emotion, with the result that ethical decision making is not an entirely rational process. [22] We tend to interpret facts based upon our biases and preconceived notions. For example, if the child care center manager has heard negative information about middle-aged men who want to engage in child care, the manager might look hard for indicators that this candidate should be disqualified.

2. Define the ethical issues. The ethical issues in a given decision are often more complicated than a first glance suggests. When faced with a complex decision, it may be helpful to talk over the ethical issues with another person. The ethical issues might involve character traits such as being kind and caring and treating others with respect. Or the ethical issues might relate to some of the common ethical problems described earlier in the chapter. Among them are facing conflict of interest, dealing with confidential information, and using corporate resources.

character traits

Enduring characteristics of a person that are related to moral and ethical behavior.

The manager of the child care center is facing such ethical issues as fairness, job discrimination, and meeting the demands of customers at the expense of job applicants. The manager is also facing a diversity issue: Should the workforce in a child care center be culturally diverse, or do we hire only young women?

3. Identify the affected parties. When faced with a complex ethical decision, it is important to identify all the affected parties. Major corporate decisions can affect thousands of people. If a company decides to shut down a plant and outsource the manufacturing to a low-wage country, thousands of individuals and many different parties are affected. Workers lose their jobs, suppliers lose their customers, the local government loses out on tax revenues, and local merchants lose many of their customers. (However, many people in the other country benefit from the work being outsourced.) You may need to brainstorm with a few others to think of all the parties affected by a given decision.

The parties affected by the decision about hiring or not hiring the 55-year-old male include the applicant himself, the children, the parents, and the board of directors of the child care center. The government might also be involved if the man were rejected and filed charges of age and sex discrimination.

4. Predict the consequences. After you have identified the parties affected by a decision, the next step is to predict the consequences for each party. It may not be necessary to identify every consequence, yet it is important to identify the consequences with the highest probability of occurring and those with the most negative outcomes. The problem is that many people can be harmed by an unethical decision, such as not fully describing the possible side effects of a diet program.

Both short-term and long-term consequences should be specified. A company closing a plant might create considerable short-term turmoil, but in the long term the company might be healthier. People participating in a diet program might achieve their short-term objective of losing weight. Yet in the long term, their health might be adversely affected because the diet is not nutritionally balanced.

The symbolic consequences of an action are important. Every action and decision sends a message (the decision is a symbol of something). If a company moves manufacturing out of a community to save on labor costs, it means that the short-term welfare of domestic or local employees is less important than profit or perhaps the company surviving.

We return to the child care manager and the job applicant. If the applicant does not get the job, his welfare will be adversely affected. He has been laid off by a large employer and cannot find work in his regular field. His family will also suffer because he will not be able to make a financial contribution to the family. Yet if the man is hired, the child care center may suffer. Many traditionally minded parents will say, “Absolutely not. I do not want my child cared for by a middle-aged man. He could be a child molester.” (It may be unethical for people to have vicious stereotypes, yet they still exist.) If the child care center does hire the man, the act will symbolize the fact that the owners of the center value diversity.

5. Identify the obligations. Identify the obligations and the reasons for each obligation when making a complex decision. The manufacturer of automotive brakes has an obligation to produce and sell only brakes that meet high safety standards. The obligation is to the auto manufacturer who purchases the brakes and, more important, to the ultimate consumer whose safety depends on effective brakes. The reason for the obligation to make safe brakes is that lives are at stake. The child care center owner has an obligation to provide for the safety and health of the children at the center. She must also provide for the peace of mind of the parents and be a good citizen of the community in which the center is located. The decision about hiring the candidate in question must be balanced against all these obligations.

6. Consider your character and integrity. A core consideration when faced with an ethical dilemma is how relevant people would judge your character and integrity. What would your family, friends, significant others, teachers, and coworkers think of your actions? To refine this thinking even further, how would you feel if your actions were publicly disclosed in the local newspaper or over e-mail? Would you want the world to know that you gave an under-the-table kickback or that you sexually harassed a frightened teenager working for you? If you would be proud for others to know what decision you made when you faced an ethical dilemma, you are probably making the right decision.

The child care center manager might ponder how she would feel if the following information were released in the local newspaper or on the Internet:

The manager of Good Times Child Care recently rejected the application of a 55-year-old man for a child care specialist position. She said that although Mr. was well qualified from an experience and personality standpoint, she couldn’t hire him. She said that Good Times would lose too much business because many parents would fear that Mr. was a child molester or pedophile.

7. Think creatively about potential actions. When faced with an ethical dilemma, put yourself in a creative-thinking mode. Stretch your imagination to invent several options rather than thinking you have only two choices—to do or not do something. Creative thinking may point toward a third, and even fourth, alternative. Imagine this ethical dilemma: A purchasing agent is told that if her firm awards a contract to the sales representative’s firm, she will find a leather jacket of her choice delivered to her door. The purchasing agent says to herself, “I think we should award the contract to the firm, but I cannot accept the gift. Yet if I turn down the gift, I will be forfeiting a valuable possession that the company simply regards as a cost of doing business.”

The purchasing agent can search for another alternative. She may say to the sales rep, “We will give the contract to your firm because your products fit our requirements. I thank you for the offer of the leather jacket, but instead I would like you to give the jacket to the Salvation Army.”

A creative alternative for the child care manager might be to offer the applicant the next position that opened for an office manager or maintenance person in the center. In this way, she would be offering a qualified applicant a job, but placing him in a position more acceptable to parents. Or do you feel that this is a cop-out?

8. Check your intuition. So far we have emphasized the rational side of ethical decision making. Another effective way of conducting an ethical screen is to rely on your intuition. How does the contemplated decision feel? Would you be proud of yourself, or would you hate yourself if you made the decision? Imagine how you would feel if you took money from the handbag of a woman sleeping in the park. Would you feel the same way if you took a kickback, sold somebody a defective product, or sold an 80-year-old man an insurance policy he didn’t need? How will the manager of the child care center feel if she turns down the man for the child care specialist position? In general, experienced workers rely more heavily on intuition when making ethical choices. The reason is that intuition is based largely on experience. Rules for ethical behavior are important, yet often we have to follow our hunches. Experience and rules are not wasted because intuition includes both experience and having studied rules in the past.

You are encouraged to use the guide for ethical decision making when you next face an ethical dilemma of consequence. Skill-Building Exercise 15-3 gives you an opportunity to practice using the eight steps for ethical decision making.

Developing Strong Relationships with Work Associates

A provocative explanation of the causes of unethical behavior emphasizes the strength of relationships among people. [23] Assume that two people have close professional ties to each other, such as having worked together for a long time or knowing each other both

Skill-Building Exercise 15-3

Ethical Decision Making

Working in small groups, take one or more of the following ethical dilemmas through the eight steps for screening contemplated decisions. If more than one group chooses the same scenario, compare your answers for the various steps.

Scenario 1: To Recycle or Not

Your group is the top management team at a large insurance company. Despite the movement toward digitizing all records, your firm still generates tons of paper each month. Customer payments alone account for truckloads of envelopes each year. The paper recyclers in your area claim that they can hardly find a market any longer for used paper, so they will be charging you just to accept your paper for recycling. Your group is wondering whether to recycle.

Scenario 2: Charitable Giving by Company

You are the chief financial officer at a large company that manufactures T-shirts, among other types of clothing. A particularly popular line of T-shirts contains drawings of wild animals such as wolves, polar bears, whales, and eagles. In-store promotion of these T-shirts includes the statement that the company will give back 5 percent of net revenue from these animal-themed T-shirts to local charities. However, this year you notice that the company may not make a profit, so every dollar saved counts. You calculate that if you do not donate the five percent of revenues on these T-shirts, the company might make a profit or at least break even. Your group must decide whether the company should hold back on donating part of the proceeds from the sale of these T-shirts to charity.

Scenario 3: The High-Profit Toys

You are a toy company executive starting to plan your holiday season line. You anticipate that the season’s hottest item will be Robo-Woman, a battery-operated crime fighter and superheroine. Robo-Woman should wholesale for $25 and retail for $45. Your company figures to earn $15 per unit. You receive a sales call from a manufacturing broker who says he can produce any toy you want for one-third of your present manufacturing cost. He admits that the manufacturer he represents uses prison labor in China, but insists that his business arrangement violates no law. You estimate you can earn $20 per unit if you do business with the manufacturing broker. Your decision is whether to do business with him.

on and off the job. As a consequence, they are likely to behave ethically toward one another on the job. In contrast, if a weak professional relationship exists between two individuals, either party is more likely to engage in an unethical relationship. The owner of a hair salon is more likely to behave unethically, such as recommending the purchase of a high-priced hair conditioner that a customer doesn’t need, toward a stranger passing through town than toward a long-time customer. (The section in Chapter 13 about building relationships with coworkers and work associates provides suggestions for developing strong relationships.) The opportunity for unethical behavior between strangers is often minimized because individuals typically do not trust strangers with sensitive information or valuables.

The ethical skill-building positive consequence of information about personal relationships is that building stronger relationships with people is likely to enhance ethical behavior. If you build strong relationships with work associates, you are likely to behave more ethically toward them. Similarly, your work associates are likely to behave more ethically toward you. The work associates referred to are all your contacts, both internal and external customers.

Self-Assessment Quiz 15-2 provides an opportunity to think about the ethical aspects of your relationships with coworkers.

Using Corporate Ethics Programs

Many organizations have various programs and procedures for promoting ethical behavior. Among them are committees that monitor ethical behavior, training programs in ethics, and vehicles for reporting ethical violations. The presence of these programs is designed to create an atmosphere in which unethical behavior is discouraged, and reporting on unethical behavior is encouraged.

Ethics hotlines are one of the best established programs to help individuals avoid unethical behavior. Should a person be faced with an ethical dilemma, the person calls a toll-free line to speak to a counselor about the dilemma. Sometimes employees ask questions to help interpret a policy, such as, “Is it okay to ask my boss for a date?” or “Are we supposed to give senior citizen discounts to customers who qualify but do not ask for one?” At other times, a more pressing ethical issue might be addressed, such as, “Is it ethical to lay off a worker just five months short of his qualifying for a full pension?”

Although ethics hotlines are widely used, a study released by the Ethics Resource Center indicates that an immediate supervisor, not a hotline, is the most likely point of contact for reporting job misconduct. [24] (But not if the supervisor is the source of the misconduct!) A most likely explanation of this finding is that most employess are more comfortable discussing an ethical problem with their supervisor rather than via a telephone call to an anonymous person.

Human resource professionals contend that no amount of training will ensure that employees will act ethically in every situation, particularly because ethics deals with subtle matters rather than strictly right or wrong. Deborah Haliczer, director of employee relations at Northern Illinois University, explains, however, that training is valuable in starting a useful dialogue about right and wrong behavior that employees could remember in murky situations. [25]

The link between the programs just described and individual ethical skills is that these programs assist a worker’s skill development. For example, if you become comfortable in asking about ethical issues, or turning in ethical violators, you have become more ethically skilled.

Being Environmentally Conscious

Another ethical skill is to be green or to do your job in helping sustain the physical environment. (Green derives from the idea that green vegetations such as trees and forests are a plus for the environment.) The reasoning behind this statement is that it is morally responsible to protect the environment. Do not be concerned with taking sides on the issue of global warming. Whether or not humans and the carbon dioxide emissions they create have contributed to global warming, the physical environment needs your help.

Self-Assessment Quiz 15-2

The Ethical Workplace Relationships Inventory

Directions:

Describe how well you agree with each of the following statements, using the following scale: Disagree Strongly (DS); Disagree (D); Neutral (N); Agree (A), Agree Strongly (AS). Circle the number in the appropriate column.

No. DS D N A AS

1. I would give a sexually suggestive hug to a team member who I thought was physically attractive. 5 4 3 2 1

2. If I were asked to purchase pizza and soft drinks for the group, I would be willing to ask for more in reimbursement than I actually paid. 5 4 3 2 1

3. If I were the manager of my group, I would be willing to put pressure on group members to purchase direct sales items from me, such as beauty and health products. 5 4 3 2 1

4. I would be willing to recommend for promotion to my supervisor a worker from a different racial group than my own. 1 2 3 4 5

5. If I didn’t get along with my manager or team leader, I would be willing to start a rumor that he or she was undergoing bankruptcy. 5 4 3 2 1

6. To damage the reputation of a coworker I didn’t like, I would be willing to write a negative social media post about the company and indicate that I was quoting him or her. 5 4 3 2 1

7. I like the idea of encouraging a coworker to complain about a mutual boss and then reporting those negative comments back to the boss. 5 4 3 2 1

8. If I were the team member who made a serious error on a project, I would quickly inform our team leader before the blame was placed on another team member. 1 2 3 4 5

9. If I heard that a company executive was arrested in a domestic violence incident, I would immediately inform other employees. 5 4 3 2 1

10. Stealing an idea from a coworker, and then taking credit for that idea is totally unacceptable under any circumstance. 1 2 3 4 5

Total Score

Scoring and Interpretation:

Add the numbers you have circled to obtain your total score.

45–50: You are strongly ethical in your relationships with coworkers.

30–44: You show an average degree of ethical behavior in your workplace relationships and should therefore become more sensitive to ethical issues.

10–29: Your ethical values could lead you to develop a negative relationship with work associates, assuming that your unethical behavior is caught. Begin a serious study of business ethics.

The skill of being environmentally conscious has two major components. First is to take as many steps as you can individually to help preserve the environment, even in such small steps as carrying a reusable cloth bag to the grocery store and not throwing a plastic bottle on a lawn. Second is to be an advocate for the environment by mentioning its importance at work. You might, for example, present data to management about how solar heating can save the company money in the long run, and how benches and walkways made from recycled tires and plastics are attractive and economical. Figure 15-2 gives you a starting point for contributing to a sustainable environment. You might want to add to this list with suggestions of your own, or those you find in the media and scientific articles.

You may need to use your communication persuasion skills to make an impact on the environment. And you will also need to use your positive political skills so that you will not be perceived as an environmental, tree-hugging pest.

You are invited to do Skill-Building Exercise 15-4 to get started right away in improving the physical environment.

Conserve energy by adjusting thermostats to keep working areas cooler during cold months and warmer during warm months.

Do what you can to encourage your company and coworkers to send to recycling centers electronic devices that are no longer in use, such as desktop computers, laptop computers, cell phones, and personal digital assistants.

Spread the word about the environmental good that can be accomplished from making new products from recycled goods, such as paving stones and park benches made from recycled bottles and tires. The entire remanufacturing industry relies on the reuse of manufactured materials.

Do what you can to create a buzz about the possibilities of photovoltaic technology that is used to convert sunlight into clean energy. Alert influential people to energy-saving and money-saving solar heating systems, such as solar buildings that provide solar hot water and solar heating.

Place a lawn on the roof that can reduce its surface temperature by 70 degrees F and internal temperatures by 15 degrees F.

Carpool to work with at least three coworkers, and provide preferred parking spaces for carpoolers and hybrid or electric cars.

Campaign for a four-day, 40-hour workweek, which can save enormous amounts of energy by less commuting along with less heating and cooling of the workplace. (However, if the employees drive considerably on their day off and use more heating and cooling at home, much of the energy savings will be lost.)

Encourage employee use of mass transportation, and provide company shuttle busses from locations convenient to where employees live.

Offer employees at least $2,000 toward the purchase of a hybrid vehicle or electric car.

Turn off electronic machines when not in use unless starting and stopping them frequently uses more energy than leaving the machines turned on during working hours. Encourage the replacement of incandescent bulbs with fluorescent ones (if the replacement bulb provides enough light for the purpose).

Recycle as many packages as possible, and install driveways and purchase products such as office furniture made from recycled products including recycled vehicle tires. When possible, use old newspapers for packing material instead of new paper and plastic.

Use mugs instead of Styrofoam, and set up bins to recycle aluminum cans and plastic bottles.

When constructing a new building, seek Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council.

Provide bicycle racks and showers that enable employees to bike to work. Biking to work will save considerable energy as well as decrease carbon dioxide emissions.

Construct a system that captures rainwater to be reused for irrigation.

Grow as much vegetation on company premises as feasible, including celebrating special events by planting another tree. Use plants that are native to the region, because native vegetation does not require as much maintenance, fertilizer, chemical sprays, or water.

Drink as much tap water as possible to minimize the use of bottled water, or filter tap water to one’s specifications.

Purchase clothing with a lower negative impact on the environment, as indicated by the label. For example, some clothing is manufactured in production facilities powered by sustainable, renewable energy. And some textile mills install processes for recycling and reclamation of cloth.

Combat litter and clutter in your work area and on company premises to help attain a pleasant, environmentally friendly atmosphere. Take such actions as alerting the company to exposed, rusted pipes, broken concrete in the parking lot, peeling paint, and broken fences.

Encourage people in your network not to drive at high speeds or sit in an idling vehicle while making phone calls or sending text messages. Encourage safe driving in general, because vehicular accidents consume enormous amounts of energy, including tow trucks, salvage operations, and life-sustaining hospital stays. Also encourage them to walk to errands instead of driving, whenever feasible.

Invest some of your shopping budget into making purchases at used-merchandise stores. Recyling helps the environment, but avoiding the purchase of all new merchandise fosters unemployment and even the eyesore of vacant stores and buildings.

A general guideline is to use less physical objects and less energy.

My suggestions:

Figure 15-2 Representative Suggestions for Helping a Company Contribute to a Sustainable Environment

Sources: Several of the ideas are from David Kreutzer, “The Countless Shades of Green Jobs,” http://www.philly.com, March 30, 2012, pp. 1–2; Ben Elgin and Brian Grow, “The Dirty Secret of Recycling Electronics,” Business Week, October 27, 2008, pp. 40–44; Letita M. Aaron, “The Big Payback,” Black Enterprise, May 2009, pp. 64–66; Yvon Chouinard, Jib Ellison, and Rick Ridgeway, “The Sustainable Economy,” Harvard Business Review, October 2011, pp. 52–62; David Roberts, “Another Inconvenient Truth,” Fast Company, March 2008, p. 70; Tom Szaky, Revolution in a Bottle (New York: Portfolio, 2009).

Skill-Building Exercise 15-4 Conducting an Environmental Audit

To create an environmentally friendly workplace, somebody has to take the initiative to spot opportunities for change. Organize the class into groups of about five, with one person being appointed the team leader. You might have to do the work outside of class, because your assignment is to do an environmental audit of a workplace, including a nonprofit setting such as a place of worship, a school, or an athletic facility. If the audit is done during class time, evaluate a portion of the school, such as a classroom, an athletic facility, or the cafeteria. Your task is to conduct an environmental audit with respect to the energy efficiency and healthfulness of the workplace. Make judgments on a 1-to-10 scale plus comments about the following factors:

How energy efficient is the workplace in terms of such factors as building insulation, use of fluorescent lighting, heating and cooling, and use of solar panels?

How safe is the environment in terms of pollutants, and steps to prevent physical accidents?

How aesthetic is the environment in terms of protecting against sight and sound pollution?

Summarize your findings and suggestions in a bulleted list of less than one page. Present your findings to classmates and perhaps to a manager of the workplace. Classmates might comment on whether your findings will really improve the planet from an ecology standpoint.

Following an Applicable Professional Code of Conduct

Professional codes of conduct are prescribed for many occupational groups, including physicians, nurses, lawyers, paralegals, purchasing managers and agents, and real estate salespeople. A useful ethical guide for members of these groups is to follow the code of conduct for their profession. If the profession or trade is licensed by the state or province, a worker can be punished for deviating from the code of conduct specified by the state. The code of conduct developed by the profession or trade is separate from the legal code, but usually supports the same principles and practices. Some of these codes of conduct developed by the professional associations are 50 and 60 pages long; yet all are guided by the kind of ethical principles implied in the ethical decision-making guide described earlier. For example, the National Association of Purchasing Management tells members to refrain from accepting gifts or favors from present or potential suppliers which might influence, or appear to influence, purchasing decisions.

Be Ready to Exert Upward Ethical Leadership

A politically delicate situation can arise when a worker wants to behave ethically, yet he or she works for an unethical manager. He or she might worry that being ethical will lead to being reprimanded or job loss. The ethical person working for an unethical boss might feel that his or her values are being compromised, such as a virtuous credit card specialist being told to approve credit cards for people who will probably wind up paying many late fees. Upward ethical leadership is leadership displayed by individuals who take action to maintain ethical standards, although higher-ups engage in questionable moral behaviors.[26]

upward ethical leadership

The leadership displayed by individuals who take action to maintain ethical standards, although higher-ups engage in questionable moral behaviors.

At the extreme, an employee might blow the whistle on the boss, and report the unethical behavior to top management or a government agency. An example would be telling the Consumer Protection Agency that your company was selling cribs that could trap a baby’s head after your boss refused to accept your complaint. As mentioned in the survey reported earlier in the chapter, about one-fifth of whistle-blowers are retaliated against, including physical attacks against the reporter’s property.[27] Another problem with blowing the whistle, particularly in a bigt company, is that your complaint is likely to be ignored.[28] It might therefore be in your best interest to attempt to resolve the problem by exerting upward leadership.

The upward leadership approach attempts to resolve the problem before going to the extreme of whistle-blowing. The employee who spots the immoral or unethical behavior would use problem-solving and communication skills, along with conflict resolution skills. For example, the employee who spotted the potential head-trap problem might say to the boss, “I have a problem, and I would like to discuss it with you.” The employee would therefore be engaging the boss in helping to solve the problem. Recognizing that you have less power than your boss, you would have to be diplomatic and nonaccusatory.

Skill-Building Exercise 15-5

Confronting the Unethical Boss

One student plays the role of Fred, a manager who makes frequent business trips by airplane. Fred also likes to fly frequently on vacation, and appreciates accumulating frequent-flyer miles. Company policy allows employees to keep the frequent-flyer miles they accumulate for work. So Fred will often take indirect trips to a destination to accumulate more air miles. For example, to fly to San Francisco, he flew from Boston to Atlanta and then to San Francisco. In this instance, he could have made a shorter trip by flying directly from Boston to San Francisco, or from Boston to Chicago to San Francisco. In general, the longer, indirect flights are more expensive.

Another person plays the role of Kelly, the office administrative assistant who sometimes helps Fred prepare his travel vouchers. Kelly, who has good knowledge of geography, notices this strange pattern of Fred taking indirect flights. She is also aware of company policy that permits employees to accumulate frequent flyer miles that are earned on business trips. Kelly is disturbed about what she perceives to be an inappropriate use of company resources and therefore an ethical violation.

Kelly decides to discuss with Fred this most likely ethical violation. The role-play takes place in Fred’s cubicle, and you can imagine how defensive Fred is going to be.

Run the role-play for about five minutes. For both scenarios, observers rate the role players on two dimensions, using a 1-to-5 scale from very poor (1) to very good (5). One dimension is “effective use of human relations techniques.” Observers look to see if Kelly can preserve her sense of ethics while not doing too much damage to her relationship with her boss, Fred. The second dimension is “acting ability.” A few observers might voluntarily provide feedback to the role players in terms of sharing their ratings and observations. The course instructor might also provide feedback.

It would be important to point to the problem (the possibility of an infant getting his or her head stuck) rather than accusing the boss of being unethical or immoral.

Skill-Building Exercise 15-5 gives you an opportunity to practice upward leadership skills for correcting unethical behavior.

Concept Review and Reinforcement

Key Terms

1. character traits 365

2. moral intensity 357

3. conflict of interest 361

4. defining moment 362

5. honesty 364

6. integrity 364

7. ethical screening 365

8. upward ethical leadership 371

Summary

Ethics refers to moral choices, or what is good and bad, right and wrong, just and unjust, and what people should do. Ethics turn values into action. A person’s ethical code has a significant impact on his or her interpersonal relationships.

Understanding ethics is important for a variety of reasons. First, people are motivated by self-interest and a desire to be morally right. Second, good ethics can enhance business and avoid illegal acts and unsafe practices. Third, having high ethics improves the quality of work life.

Being ethical isn’t always easy for many reasons, including the following: complexity of ethical decisions, a predisposition to be unethical, self-interest, level of moral development, moral disengagement, goals that reward unethical behavior, and motivated blindness. Ethical violations by workers at all job levels are widespread, even if decreasing from years past. Active social networkers report many negative experiences in their workplace.

Commonly faced ethical problems include illegally copying software, treating people unfairly including cronyism, sexually harassing coworkers, facing a conflict of interest, abusing confidential information, misrepresenting employment and educational history, misusing corporate resources, ethically violating computers and information technology, wasting company time, and engaging in unethical behavior to benefit the company.

A challenging twist to ethical decision making is to sort through your values when you have to choose between two morally sound choices. A defining moment is when you have to choose between two or more ideals in which you deeply believe.

One strategy for behaving ethically is to develop virtuousness that includes honesty and integrity. Seeing the big picture can help a person behave ethically. A key strategy for behaving ethically is to follow the eight steps in making a contemplated decision:

1. Gather the facts.

2. Define the ethical issues.

3. Identify the affected parties.

4. Predict the consequences.

5. Identify the obligations (such as to customers and society).

6. Consider your character and integrity.

7. Think creatively about potential actions.

8. Check your intuition.

Another way to raise the level of ethical behavior is to form strong professional relationships with work associates. This is true because people tend to behave more ethically toward people who are close to them. At times, using a corporate program such as an ethics hotline can help a person resolve ethical dilemmas. Being environmentally conscious contributes to ethical behavior. Following an applicable code of professional conduct, such as that for purchasing specialists, is another guide to behaving ethically. Upward leadership behavior can help you deal with the situation of maintaining ethical standards when the boss engages in questionable moral behavior. If upward leadership does not work, the person might become a whistle-blower, while understanding that retaliation is possible.

Questions for Discussion and Review

1. What possible conficts of interest do you see when a manager and subordinate become Facebook friends?

2. How can behaving ethically improve a person’s interpersonal relationships on the job?

3. Assume that you are walking by a lake and you witness a person throwing a few plastic bottles into the water. How would you deal with the situation?

4. What is your opinion of the ethics of using the wi-fi access of other people, including business firms when you are not a customer, without asking permission?

5. What evidence can you present that coworkers or fellow students really care if you behave ethically?

6. Provide an example of an action in business that might be unethical but not illegal.

7. In recent years several CEOs at major companies have been forced to resign after it was discovered that they faked at least one college degree on their résumé. What is your opinion of the fairness of firing these executives for having lied about their academic credentials?

8. Based on your knowledge of human behavior, why do professional codes of conduct—such as those for doctors, paralegals, and realtors—not prevent all unethical behavior on the part of members?

9. Check out the Web sites of a couple of major business corporations. What conclusion do you reach about whether an environmentally conscious (or green) person would fit in those companies?

10. What decision of ethical consequence have you made in the last year that you would not mind having publicly disclosed?

The Web Corner

1. http://www.ethics.org

2. (Ethics Resource Center)

3. http://www.sustainability.com

4. (Includes brief case histories of what was done to make well-known business corporations improve sustainability)

5. http://globalethicsuniversity.com

6. (An examination of many phases of business ethics)

Internet Skill-Builder: Learning from Ethical Role Models

1. One of the many ways of learning ethical skills is to get good ideas from ethical role models. For example, you might observe a professor who takes the initiative to change a grade upward because she later discovered a calculation error. This Internet skill-builder is more abstract than some others, so you might find it a little frustrating. Search for a few specific ways in which you can learn from an ethical role model. To illustrate, you might learn from a business executive, sports figure, or public servant you admire.

Developing Your Human Relations Skills

Interpersonal Relations Case 15.1

The One-Cent Ethical Dilemma

Rajah majored in business administration and marketing at college, and looked forward to a career in retail management. While attending community college, he worked an average of 30 hours per week at retail stores, thereby taking him an additional year and one half to attain his degree. Still only 23 years old, Rajah received a job offer as the manager of a branch of a discount general store. He thought this would be a fine opportunity to begin his career in retail management. Although the store was referred to as a dollar store, the prices of individual merchandise ran as high as $30.

About three months into the job, his regional manager Lauren explained that cashiers were from here on not to give customers back change of only one cent. For example, if a customer’s bill were $2.99 and he gave the cashier a $5.00 bill, the cashier was supposed to give the customer change of $2.00 and smile at the same time. Yet if the customer demanded the penny in change, the cashier should grant the request.

Rajah asked Lauren, “Why should our store do something that nasty? It’s like stealing pennies from customers.” Lauren replied, “We have approximately 1,200 stores across the country, and all our stores are busy. Few customers care about one penny, but if we add up all those pennies, the company’s profit for the years has a nice bump up.”

Rajah was not happy with the new policy, but agreed to go ahead and encourage his cashiers to withhold the penny change unless a customer objected. Yet after a week, this new policy began to disturb Rajah. He felt he was forcing his cashiers into unethical if not illegal behavior. He did not want to lose his job by complaining about or not complying with company policy.

Case Questions

1. What actions do you recommend Rajah take about his concerns with respect to the new one-cent-in-change policy?

2. Explain whether you think Rajah shuld blow the whistle on his employer?

3. What is your opinion of the ethics of the new policy about withholding one-cent in change?

Interpersonal Relations Case 15.2

Am I Paid to Be My Manager’s TV Repair Technician?

Karen worked for a division of a pharmaceutical company as a member of the technical support team. Among her many responsibilities were keeping the division’s desktop computers, laptop computers, printers, and smartphones in working order. Gus, her manager, who had been with the company for about 10 years, had a general understanding of what the tech support staff was doing, but he was more of an administrator than a specialist in communication technology.

Several times in recent weeks, Gus complained to Karen and a few other team members about a problem he was having with a digital television set connected to an internal (rabbit ears) antenna. During a lunch break, he explained to Karen, “I’m going a little crazy. I have four television sets at home. The two big ones are satellite connected and they work just fine. I have a small set in the family room in the basement connected to rabbit ears, and the reception is reasonably good. I am picking up the digital signals with a few halts here and there, but I am getting the reception I need.”

“The problem I have is with a relatively new set connected in our upstairs bedroom. I did the channel scan about one year ago, and I was getting the network channels I needed. A few weeks ago, I stopped receiving the channels I needed. All that was left was HSN (Home Shopping Network). I must have done a channel scan twenty times to try to fix the problem. Plus, I rotated the antenna a few times. I called tech support at the manufacturer of my set, and the rep couldn’t help. He told me to telephone the FCC (Federal Communication Commission). I did that, followed the rep’s instructions, and still no signal.”

Karen agreed that Gus was facing a frustrating problem, but noted that many people using antennas on their TV sets have lost reception since the conversion from analog to digital in 2009.

A week later, Gus spoke to Karen again about his TV reception woes. He then asked Karen, “How about you coming over after work some night to help straighten out my TV problem? My wife and I would really appreciate your help. You’re a great tech fixer.”

Karen pondered for a moment, thinking that Gus was making an unreasonable demand. She replied, “Gus, let me think about your request. I really don’t know a lot about TV reception. Also, I am pretty much tied up after work for a couple of weeks.”

With a frown on his face, Gus said, “Karen, I know you can help. Please don’t let me down.”

Case Questions

1. What do you see as any potential ethical issues in Gus’s request that Karen attempt to fix his TV set reception problem?

2. What advice might you offer Karen for dealing with this problem?

3. How do Gus’s demands fit into the category of expecting Karen to exhibit strong organizational citizenship behavior?

Interpersonal Skills Role-Play

Dealing with an Unusual Request from the Boss

The case about the manager’s request for tech support for his television set provides the background information for this role-play. The scenario is another meeting between Gus and Karen. One student plays the role of Gus, who is now increasingly frustrated that he cannot get the reception he wants. Just last week he telephoned a television repair service, and was told politely that he should simply hook up the set to cable or satellite TV. But Gus and his wife do not want any more wires running through their house. So this time, Gus is more insistent that Karen come over to his house to fix the problem.

Another person plays the role of Karen, who has thought through Gus’s request some more, and she feels that his demand is both inappropriate and unethical. However, Karen still wants to maintain a good professional relationship with Gus.

Run the role-play for about five minutes. For both scenarios, observers rate the role players on two dimensions, using a 1-to-5 scale from very poor (1) to very good (5). One dimension is “effective use of human relations techniques.” The second dimension is “acting ability.” A few observers might voluntarily provide feedback to the role players in terms of sharing their ratings and observations. The course instructor might also provide feedback.

References

1. Quoted and adapted from “FDA Takes Action against Thousands of Illegal Internet Pharmacies,” http://www.fda.gov , October 4, 2012, pp. 1–3.

2. Linda K. Treviño and Katherine A. Nelson, Managing Business Ethics: Straight Talk about How to Do It Right (New York: Wiley, 1995), pp. 24–35; O. C. Ferrell, John Fraedrich, and Linda Ferrell, Business Ethics: Ethical Decision Making and Cases, 4th ed. (Boston: Houghton Mifflin, 2000), pp. 13–16; Anita Bruzzese, “Tools Take Ethics to the Real World,” Gannett News Service, May 16, 2005; Roger Parloff, “Wall Street: It’s Payback Time,” Fortune, January 19, 2009, pp. 56–69.

3. Thomas Cata and Amir Afrati, “New Heat for Google CEO,” The Wall Street Journal, August 27–28, 2011, p. B1.

4. Thomas M. Jones, “Ethical Decision Making by Individuals in Organizations: An Issue Contingent Model,” Academy of Management Review, April 1991, p. 391.

5. Jennifer J. Kish-Gephart, David A. Harrison, and Linda Klebe Treviño, “Bad Apples, Bad Cases, and Bad Barrels: Meta-Analytic Evidence About Sources of Unethical Decisions at Work,” Journal of Applied Psychology, January 2010, pp. 1–31; Linda Klebe Treviño and Michael E. Brown, “Managing to Be Ethical: Debunking Five Business Ethics Myths,” Academy of Management Executive, May 2004, pp. 69–72.

6. Scott J. Reynolds, “Moral Awareness and Ethical Predispositions: Investigating the Role of Individual Differences in the Recognition of Moral Issues,” Journal of Applied Psychology, January 2006, p. 234.

7. John C. Bogle, “A Crisis of Ethic Proportions,” The Wall Street Journal, April 21, 2009, p. A19.

8. Simona Covel, “Small Businesses Face More Fraud in Downturn,” The Wall Street Journal, February 19, 2009, p. B5.

9. Celia Moore et al., “Why Employees Do Bad Things: Moral Disengagement and Unethical Organizational Behavior,” Personnel Psychology, Number 1, 2012, pp. 1–48.

10. Max H. Bazerman and Ann E, Tenbrunsel, “Ethical Breakdowns,” Harvard Business Review, April 2011, p. 58.

11. 2011 National Business Ethics Survey ® (http://www.ethics.org/topic/national-surveys); National Business Ethics Survey, Ethics Resource Center, Arlington, Virginia, 2009 survey ( http://www.ethics.org ).

12. The basic outline for this section is from Treviño and Nelson, Managing Business Ethics, pp. 47–64.

13. Data reported in Dina Bass, “Software Piracy Jumps to $59 Billion in 2010, Report Says,” http://www.Businessweek.com/new , May 12, 2011, p. 1.

14. “FTC: Bloggers Must Disclose Payments for Reviews,” Associated Press, October 5, 2009.

15. Keith J. Winstein, “Inflated Credentials Surface in Executive Suite,” The Wall Street Journal, November 13, 2008, p. B1; Chad Brooks, “Yahoo CEO Not Alone: 7 Execs Busted for Résumé Lies,” Business News Daily, May 15, 2012, pp. 10–14.

16. Joseph L. Badaracco Jr., “The Discipline of Building Character,” Harvard Business Review, March–April 1998, pp. 114–124.

17. Elizabeth E. Umphress, John B. Bingham, and Marie S. Mitchell, “Unethical Behavior in the Name of the Company: The Moderating Effects of Organizational Identification and Positive Reciprocity Beliefs on Unethical Pro-Organizational Behavior,” Journal of Applied Psychology, July 10, pp. 769–780.

18. Edwin A. Locke, “Business Ethics: A Way Out of the Morass,” Academy of Management Learning & Education, September 2006, pp. 328–330.

19. Robert Hurley, “Trust Me,” The Wall Street Journal, October 24, 2011, p. R4.

20. Melissa Korn, “Columbia Dean Wants Students to Connect Dots,” The Wall Street Journal, July 7, 2011, p. B6.

21. The general outline is from Treviño and Nelson, Managing Business Ethics, pp. 71–75.

22. Scott Sonenshein, “The Role of Construction, Intuition, and Justification in Responding to Ethical Issues at Work: The Sensemaking-Intuition Model,” Academy of Management Review, October 2007, p. 1030.

23. Daniel J. Brass, Kenneth D. Butterfield, and Bruce C. Skaggs, “Relationships and Unethical Behavior: A Social Network Perspective,” Academy of Management Review, January 1998, pp. 14–31.

24. “Willingness to Report Misconduct is Key in Building an Ethical Workplace,” http://ethics.org/news, September 7, 2010, pp. 1–2.

25. Cited in Jean Thilmany, “Supporting Ethical Employees,” HR Magazine, September 2007, p. 106.

26. Mary Uhl-Bien and Melissa K. Carsten, “Being Ethical When the Boss Is Not,” Organizational Dynamics,” Issue 2, 2007, p. 197.

27. “Retaliation: When Whistleblowers Become Victims,” Ethics Resource Center ( http://www.ethics.org/nbes ), September 4, 2012, pp. 1–2.

28. Jack and Suzy Welch, “Whistleblowers: Why You Should Heed Their Warnings,” Fortune, June 11, 2012, p, 86.