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M G M T 3 1 4 | W E E K 6 Managers as Ethical Leaders and Empowering Ethical Employees
One of the most important determinants of whether an organization will have an ethical organizational culture is leadership. The leaders of an organization set the tone at the top and the behavior they demonstrate becomes a model for everyone who works under them. In their efforts to set the tone at the top, leaders can act as different types of role models, use different forms of power, and practice different types of leadership. This lesson will provide an overview and examples of each of these. This lesson also will discuss what employees want from a job. Employees are motivated by a variety of things, and, using Maslow’s Hierarchy of Needs to frame the discussion, this lesson will cover what these needs are and how employees can meet them.
LEARNING OBJECTIVES:
Examine the application of leadership concepts and ethical theories in the business environment.
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Tone at the Top
The leaders of an organization set the tone at the top, which determines the type of organizational culture that will prevail. Tone at the top can be defined as the ethical atmosphere that the organization’s leadership creates in the workplace. The tone that an organization’s leaders set will trickle-down to the rest of the organization’s employees. If the tone at the top makes ethics and integrity a priority, employees will be more likely to espouse those same morals. But if the leaders do not make ethics a priority, employees will be less likely to strive to be ethical because they likely will feel that the organization does not place value on ethical behavior. Research has indicated that employees take note of their leaders’ behavior and actions, and employees strive to model the leaders’ conduct. If an organization is to have an ethical organizational culture, it starts with leadership setting an ethical tone at the top (Association of Certified Fraud Examiners).
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Types of Leadership Role Models: The Opportunist
In their efforts to be role models, leaders may assume a certain style. This lesson will review four of these styles—the opportunist, diplomat, technician, and achiever. Let’s first look at the opportunist as role model.
WHAT DEFINES AN OPPORTUNIST?
HOW DO OPPORTUNISTS INTERACT WITH OTHERS?
HOW LONG DO OPPORTUNISTS STAY IN LEADERSHIP POSITIONS?
WHAT CHARACTERIZES AN ORGANIZATION THAT SUPPORTS OPPORTUNISTS?
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The diplomat is a leader who is more easily influenced by the people he or she works with and tends to behave in ways that others agree is appropriate. Diplomats are considered to be team players. According to Rooke and Torbert (2005), diplomats are loyal to the group of people they work with, and they seek to please their colleagues while avoiding conflict. They strive to gain control of their own behavior and are not concerned about gaining control of the people around them or events. Under the logic used by a diplomat, leadership is about gaining acceptance and influence, and this is done by being cooperative with the organization’s norms and by performing daily roles well.
Types of Leadership Role Models: The Diplomat
DEFINING A DIPLOMAT
DIPLOMATS INTERACTING WITH OTHERS
DIPLOMATS IN SENIOR LEADERSHIP POSITIONS
Types of Leadership Role Models: The Technician
The technician, or expert, relies on data and analysis to make decisions and determine how to behave. Whether or not technicians behave ethically is determined by the results of the data and analysis. According to Rooke and Torbert (2005), this type of leader tries to control both his or her professional and personal lives through knowledge that is as perfect as possible. Such leaders place extreme importance on the ability to practice
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undisputable thinking. Once they are certain that their data is sound and they can offer an irrefutable analysis, they present this to others expecting to gain support for their ideas. Technicians tend to be found in professions such as accounting, marketing, and software engineering.
Technicians value constant improvement, efficiency, and excellence. As such, according to Rooke and Torbert (2005), they can be outstanding individual contributors to help an organization succeed. But as leaders, they may be problematic because once they develop their data and analysis, they become certain they are right and expect others to do exactly what they recommend. They do not collaborate with others. Since they feel they already have the answers, they find collaboration to be an unnecessary process. In addition, they may regard others’ opinions and input with disdain.
Types of Leadership Role Models: The Achiever back to top
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Achievers as leaders focus on achieving an organization’s goals. They strive to do this by any means possible so if the goal can be accomplished using ethical methods, their behavior will be ethical. Likewise, if unethical processes are required to achieve a goal, their behavior will be unethical.
DEFINING ACHIEVERS
HOW ACHIEVERS INTERACT WITH SUBORDINATES
POSITIVE ASPECTS OF ACHIEVERS
Forms of Power Used by Leaders
Leaders derive power from different sources, and each source of power can be used in different ways. Let’s look at five of these forms of power—legitimate, reward, coercive, referent, and expert.
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Legitimate power emanates from a leader’s position and title. For example, the chief executive officer of an organization has power and formal authority over the organization’s staff and activities simply because he or she is the CEO. Legitimate power is linked to an individual’s position so if the leader loses the position, he or she will lose the power that is associated with it. With legitimate power, subordinates comply with the leader’s directives because they think the leader’s position gives him or her the authority to issue directives. Likewise, they feel that as subordinates, they have a responsibility to comply (Yukl 2006, 148-149).
Leadership Styles: Authoritarian
Leadership can be practiced many different ways. Scholars have identified several styles that are commonly used. This lesson will cover three—authoritarian, participatory, and situational. As this lesson will explain, the situational leadership style has various aspects and can be practiced in different ways depending on the situation.
First, let’s look at the authoritarian style of leadership.
WHAT DEFINES AUTHORITARIAN LEADERSHIP?
HOW DO AUTHORITARIAN LEADERS INTERACT WITH SUBORDINATES?
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Leadership Styles: Participatory
The participatory leadership style is a more democratic approach to leadership because subordinates are given as much opportunity as possible to provide input into the work processes and to participate in decision making. The development of this leadership style was influenced by the work of Douglas McGregor (1987), who developed Theory X and Theory Y.
McGregor (1987) argued that leaders who practice Theory X think the average subordinate finds work distasteful and makes every effort to avoid it. According to Theory X, leaders must coerce, control, and even threaten subordinates to motivate them to work. Under this theory, leaders think average subordinates avoid responsibility as much as possible and have limited ambition. When they hold a job, their top priority is security, and leaders must provide constant instructions and motivation to ensure they keep working.
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Leadership Styles: Situational
Under the situational leadership model, leaders should take a contingency approach to leadership, looking for the most suitable ways to meet their subordinates’ needs as well as satisfy the requirements of different work situations. As needed, leaders should adapt their leadership style to address changes in the workplace.
To achieve this, scholars Hersey and Blanchard argue that leaders should employ both directive and supportive behaviors as they work with their subordinates.
DIRECTIVE BEHAVIOR
SUPPORTIVE BEHAVIOR
The type of behavior, directive or supportive, to be used in a given situation is determined by subordinates’ maturity levels (Johnson and Johnson 2009, 198).
More on Situational Leadership Style
As they use either directive or supportive behavior in dealing with subordinates, situational leaders also have different leadership styles that they can use. This lesson discusses four of them—directing, selling/coaching, participating/supporting, and delegating.
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Directive – When leaders use the directive style, they practice high directive behaviors and low supportive behaviors. They are focused on the task and ensuring that is it completed. They give subordinates specific instructions about tasks, including expectations for what they should accomplish, how they should do the work, and the deadlines they must meet. The leader does all planning and assigning of the work, monitors progress, and follows up as needed to clarify expectations. The directive leadership style is used most commonly in law enforcement and the military. It also works well when working with subordinates who have little or no experience and need more direction that more mature subordinates.
Employee Engagement
Having employees who are engaged and feel committed to their jobs and organizations is an important part of creating an ethical organizational culture. When employees are not engaged and have little or no loyalty to their jobs and organizations, they are more likely to practice unethical behavior. How do employers motivate employees to be engaged?
HYGIENE FACTORS
MOTIVATOR FACTORS
Maslow’s Hierarchy of Needs back to top
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Physiological Needs – The first level of needs are basic, covering the things that individuals need to survive. These needs include oxygen to breathe, food and water for nourishment, sleep to renew the body, and shelter for protection. In the workplace, these needs are met by providing breaks while on the job so employees can rest and eat. These needs also are met by providing a satisfactory salary that enables employees to purchase food and shelter.
To further understand what motivates employees, including their needs regarding work, it is beneficial to understand Maslow’s Hierarchy of Needs. As Maslow explained, every individual has five categories of needs.
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Lesson Overview back to top
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To be an effective leader, it is important to understand the different types of leadership styles and which are most effective in different work settings. Employee engagement is also important to ensure that employees feel
important and are motivated to contribute to the organization in an ethical way.
Knowledge Check
Gerald is a leader who is totally focused on ensuring that his organization accomplishes its goals and objectives. Usually, Gerald tries to practice ethical behavior as he does his work, but he’s not afraid to be a risk taker, even bending the rules if needed to achieve a goal. He also does not particularly care what others think of him, although he does try to foster a caring work environment, striving to empower his subordinates. What type of leader is Gerald?
Virginia is working with a group of young people who recently graduated from college and are holding their first jobs as professionals. Virginia wants to help these individuals learn and grow as
Diplomat
Achiever
Technician
Authoritarian
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much as possible on the job. To achieve this, which leadership style should Virginia use?
Conrad is the manager of a group of baristas at a local coffee shop. Most of the baristas are young, with little previous job experience. Conrad feels that the best way to motivate them and ensure they do their work satisfactorily to him is to punish them when he does not like their work. He withholds tips, refuses to let them have time off, and puts them on bathroom duty if he is displeased with any aspect of their work. What type of power is Conrad using to deal with the baristas?
Martha leads a group of employees who typically do the bare minimum to get their jobs done. They tend to come to work late and often leave early, and they have very little enthusiasm for their work. Martha knows that employees need to be satisfied with their work before they will enjoy their jobs. Martha also knows that her staff is underpaid compared to industry standards for pay rates, and they receive no benefits. Martha thinks that this issue needs to be addressed before she can instill a sense of commitment to the work in her staff. To achieve this, what will Martha focus on as she attempts to improve the work situation for her staff?
Delegating
Participating and Supporting
Directive Leadership Style
Selling and Coaching
Coercive power
Expert Power
Referent power
Reward power
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Key Terms:
ACHIEVERS
AUTHORITARIAN, OR AUTOCRATIC, LEADERSHIP
COERCIVE POWER
DELEGATING
DIPLOMAT
DIRECTIVE BEHAVIOR
DIRECTIVE LEADERSHIP STYLE
EXPERT POWER
HYGIENE FACTORS
LEGITIMATE POWER
MOTIVATOR FACTORS
OPPORTUNISTS
Motivator Factors
Legitimate Power
Hygiene Factors
Physiological Needs
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PARTICIPATING AND SUPPORTING
PARTICIPATORY LEADERSHIP STYLE
PHYSIOLOGICAL NEEDS
REFERENT POWER
REWARD POWER
SAFETY NEEDS
SELFACTUALIZATION
SELFESTEEM NEEDS
SELLING AND COACHING
SOCIAL NEEDS
SUPPORTIVE BEHAVIOR
TECHNICIAN
TONE AT THE TOP
Works Cited:
Association of Certified Fraud Examiners. “Tone at the Top: How Management Can Prevent Fraud in the Workplace.” Accessed on-line June 6, 2016, at http://www.acfe.com/uploadedFiles/ACFE_Website/Content/documents/tone-at-the-top-research.pdf.
Johnson, David W. and Frank P. Johnson. 2009. Group Theory and Group Skills, Tenth Edition. Upper Saddle River, New Jersey: Pearson Education, Inc.
McGregor, Douglas Murray. 1987. “The Human Side of Enterprise,” in Classics of Public Administration, Second Edition, 256-262. Pacific Grove, California: Brooks/Cole Publishing Company.
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