CIL_CS3

LDR 6302, Current Issues in Leadership 1

Course Learning Outcomes for Unit III Upon completion of this unit, students should be able to:

1. Analyze how leadership influences performance in diverse organizations. 1.1 Determine ways that leadership can increase morale. 1.2 Identify ways that diversity can be increased within an organization. 1.3 Identify effective ways to make workers feel comfortable and valued while supporting

organizational growth.

Required Unit Resources In order to access the following resources, click the links below. Lakshmi, B. (2014). Leadership ethics in today's world: Key issues and perspectives. ASCI Journal of

Management, 44(1), 66–72. https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=101435155&site=ehost-live&scope=site

Takala, T., & Auvinen, T. (2016). The power of leadership storytelling: Case of Adolf Hitler. Tamara Journal

for Critical Organization Inquiry, 14(1), 21–34. https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=117027787&site=ehost-live&scope=site

Yukl, G. (2012). Effective leadership behavior: What we know and what questions need more attention.

Academy of Management Perspectives, 26(4), 66–85. https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=84930149&site=ehost-live&scope=site

Unit Lesson Diversity and the Living Organization An organization is a network of individuals, systems, coordinated activities, and divisions of labor; over time, the network will become more stable (Hitt, Miller, & Colella, 2014). According to Morgan (2006), organizations are, therefore, like living organisms. Corporations are just like the human body. Consider the similarities. Organizations have structure, leadership, diversity, processes, rewards, conflict, communication-information transfer, and teams. The human body is comprised of a skeletal system that provides structure; muscles that hold the skeleton together; and a brain that processes information, makes decisions, and sends messages throughout a central nervous system to move limbs and control other functions (Morgan, 2006). The body has organs that have specific functions of moving blood and creating antibodies that fight disease. An analogical comparison is very valid: The brain is equivalent to the CEO; the skeleton is equivalent to the corporate structure; cells, blood, and antibodies are equivalent to the people and teams; and the central nervous system is equivalent to both decision-making and corporate information technology. The brain creates emotions, senses, and information processing, as does the corporation in the form of internal culture behaviors. So, what we have here is a system. How does this tie to corporations and business operations? The connection is through diversity. The diverse makeup of each ecosphere helps it to survive, and this concept can be applied to an organization. An organization is similar to an ecosphere, but ecospheres do not grow. They are encapsulated. If an organization were encapsulated, it would run out of markets and customers and become extinct. The difference is that companies need to be competitive and grow outside of their comfort zone to sustain

UNIT III STUDY GUIDE

The Power of Influence and Diversity

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themselves. Therefore, for an organization to grow and sustain itself, it must bring in new life, new experiences, and new human capital. This is how organizations survive; they continually recruit, train, and educate their workforce. According to the article “Make All Workers Feel Comfortable & Welcome” (2015), there are four main components to make workers feel comfortable and valued while supporting organizational growth; these components are listed below:

1. Include everyone in group functions. 2. Refuse to gossip. 3. Be direct about annoying behavior. 4. Focus on results—not personal conformity.

Influence in a Living Organization/Ecosphere Influence—what is it? This lesson will display how a leader can use influence to achieve results in an organization. Specifically, we will look at Ed Breen, the previous CEO of Tyco International, a conglomerate organization comprised of two major business segments—security solutions and fire protection. Influence is a powerful tool for a leader to have and use. In this unit, we will look at a broad cross section of how leaders use influence within their organizations. Influence, as you will see, can be indirect through ethical/unethical behaviors, as well as through behaviors that are manipulative, task-oriented, relations- oriented, change-oriented, and/or related to external processes. Leadership influence unites people together in order to meet a common goal to accomplish mission objectives and meet the end state of the leader’s vision (Yukl, 2012). Therefore, behavior is critical as it is the underlying foundation upon which an organization functions. Imagine building a home on a foundation that did not meet building codes. Imagine a carpenter who did not use proper structural techniques in the framing of the home or an electrician who cut corners when wiring the home. What would happen to this home? It would more than likely crumble under the pressure of the home’s weight, and it would structurally fail or even burn. The same analogical tie can be seen in ethical leadership behaviors. As you read the Yukl (2012) article, which is a required reading in this unit, you will notice that the taxonomy of behaviors take on many different styles to influence individuals and teams for the good of the organization. However, at times, as you will see from the Tyco example below, unethical leadership behavior uses these same behaviors in a manipulative and destructive manner, which usually results in a negative outcome. Case Study: Ed Breen’s Leadership, Influence and Behavior in Action (Ethics) Let’s start with Tyco’s governance shortfall. Governance is an internal establishment of policies that holds leadership and the organization to ethical standards (Tichy & Stratford, 2001). Therefore, governance keeps policy makers honest and ensures credibility to shareholders. The problem was that under CEO Dennis Kozlowski, corporate money was embezzled and used for extravagant parties for the corporate staff, lavish gifts for Kozlowski’s Manhattan apartment, and inappropriate payments to board members for their approval on mergers and acquisitions (Daniels Fund Ethics Initiative, n.d.). The total amount of inappropriate accounting procedures was to the tune of over $600 million with a debt of $28 million and an IOU to lenders of $11 billion. The cash flow into Tyco was only $779 million (Cauley, 2005). Change had to take place. In 2002, Tyco International was ripe for governance reform, and Kozlowski was replaced by Ed Breen. After Kozlowski was removed (and later went to jail), Tyco had to have a complete makeover. How Did He Do It? Breen and his coalition set a plan into motion, which involved developing the Senior Vice President of Governance, Eric Pillmore. According the Gerard (n.d.), the four areas of focus involved establishing strong leadership, establishing ethical accountability, implementing behavior tracking, and conducting corporate managerial leader assessments. The first major action was to replace the board of directors and many corporate employees (Cauley, 2005). The presence of strong leaders to set the new standard of mentorship was key in the turnaround. Second, Breen and Pillmore could not just talk about ethical behavior. They had to walk the walk and set new

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standards. This led to the development of a new corporate-wide practice of ethical training for all employees as well as a newly developed governance department and the creation of the Tyco Ethical Practices Handbook (Cauley, 2005). Finally, the behavior-tracking process included sharing a program of ethics with leadership as well as all employees worldwide (Daniels Fund Ethics Initiative, n.d.). Reflection As we can see in the aforementioned case, influence is a major factor within the Tyco ecosphere. It is the leader who influences behavior through vision, goals, and objectives. Breen had to impact the living organization to set a new set of ecosphere behaviors. However, there is also an intangible factor, which is always changing and has multiple backgrounds and influencers. This is the human capital factor. Human capital relates to the people of the organization. Every organization is diverse, with a melting pot of backgrounds, ages, experience, and ethnic origins. Every person brings something different to the organization, and the organization needs to capitalize on this. In effect, the foundation of diversity is having a living organization and a living, growing ecosphere. The living organization gives us a multilevel picture of the workings of organizations.

References Cauley, L. (2005). CEO leads troubled Tyco into turnaround. USA Today.

http://usatoday30.usatoday.com/money/industries/manufacturing/2005-01-23-tyco_x.htm Daniels Fund Ethics Initiative. (n.d.). Tyco International: Leadership crisis.

https://danielsethics.mgt.unm.edu/pdf/Tyco%20Case.pdf Gerard, J. (n.d.). Best practices in ethics recovery: Tyco. http://i-sight.com/resources/best-practices-in-ethics-

recovery-tyco/ Hitt, M. A., Miller, C., & Colella, A. (2014). Organizational behavior (4th ed.). Wiley. Make all workers feel comfortable & welcome. (2015). Managing People at Work, 2(13), 1.

https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=103219425&site=ehost-live&scope=site

Morgan, G. (2006). Images of organization. Sage. Tichy, N. M., & Stratford, S. (2001). Control your destiny or someone else will. Harper Business. Yukl, G. (2012). Effective leadership behavior: What we know and what questions need more attention.

Academy of Management Perspectives, 26(4), 66–85. https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=84930149&site=ehost-live&scope=site

Suggested Unit Resources In order to access the following resources, click the links below. The article below explains three perspectives on leadership as well as insights concerning change leadership. Hornstrup, C. (2014). Change leadership as a social construction. AI Practitioner, 16(2), 9–20.

https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=97407803&site=ehost-live&scope=site

The article below includes an interview with Ed Breen, the Chairman and CEO of Tyco International. During the interview, Breen shares how leadership for Tyco improved.

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McClenahen, J. S., & Jusko, J. (2005). Restoring credibility. Industry Week/IW, 254(2), 12. https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=15962268&site=ehost-live&scope=site

This final article includes information about the four principles for making strong leadership judgment calls. Tichy, N., & Bennis, W. (2011). Leader judgment. Leadership Excellence Essentials, 28(12), 18–19.

https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=67678305&site=ehost-live&scope=site