The future of an organisation depends on effective leadership and ethical decisions made by the leaders of the organisation. Many organisations experience tremendous successes and dramatic failures because of decisions made by their leaders. Our presentation showcases various leadership theories and real life stories of leaders who had tremendous success but had gone through serious scandals that threatened the very existence of their organisations. Some leaders made ethical decisions and had a stronger comeback while others went into bankruptcy. So sit back and relax while we take you through the interesting world of global organisational behavior and its effects on business today.

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Leadership & Ethical Decision Making
JERVIS KOO - 1080886
JOSEPH JABIN K. F. - 15891372
YAN LEE - 15899340
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Introduction
Structure of the Presentation
 Leadership
 Types of Leadership Styles
 Types of Leaders
 Implicit Leadership Perspective
 Incorporating Mentorship
 Ethical Decision Making
 Theories & Models of Decision Making
 Rational Choice Paradigm
 Emotions and Making Choices
 How to Effectively Evaluate Decisions
 Success and Failure Stories
 Conclusions and Comments
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Leadership Defined
 Leadership is the ability to influence, inspire, motivate
and enable others to achieve success for their
organization.
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Types of Leadership Styles
 Laissez-Faire
 No direct supervision
 Minimal feedback
 Suitable for highly trained employees
 Example: Warren Buffett
 He may be the most surprising name among successful laissez-faire leaders. Buffett is known for taking a hands-off
approach toward leadership of the many companies he owns, or in which he invests after actively canvassing the
industries he favours. Once he makes an investment decision, though, Buffett trusts his managers to know how to
achieve the performance he expects
Ref: http://online.stu.edu/laissez-faire-leadership/
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Types of Leadership Styles
 Autocratic
 Decision making without the
input of others
 Impose will on employees
 Suitable for employees who need
close supervision
 Example: Ridley Scott
 In an industry where box-office receipts measure success, Scott remains one of the few Hollywood directors whose films are profitable and
critically acclaimed. A short list of his films includes “Blade Runner”, “Alien”, “Thelma & Louise”, “White Squall”, “Gladiator”, “American
Gangster”, “Prometheus” and his recent “Exodus: Gods and Kings.” Scott, who began his career as a graphic designer, has a reputation as a
perfectionist. Actors are expected to know their lines, positions and cues before the camera starts rolling.
http://online.stu.edu/autocratic-leadership/
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Types of Leadership Styles
 Participative
 “Democratic leadership style”
 Values input of team and peers
 Boost employee morale
 Example: Donald Trump
 Trump built a business empire by being more of a director than an authoritarian. He facilitates ideas and encourages
others to share information freely so that the best decision can be made instead of one that has a personal bias. He
considers the opinions of others into every decision, factors the various outcomes that may occur, and works to increase
the collective mind in any choice so that everyone has some skin in the game.
Ref: http://www.adviseamerica.com/famous-participative-leaders/
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Types of Leadership Styles
 Transactional
 Focuses on performances
 Resources exchanged for
compliance
 Collectively set goals
 Example: Howard Schultz
 In 1984, Howard Schultz opened the first Starbucks coffeehouse based on the concept of an Italian espresso bar.
Schultz wanted to grow Starbucks, but the owners wanted to stay small. Schultz left and opened his own
company in 1985. With the help of investors in 1987, he bought Starbucks and merged the two companies. By
2006, Schultz was ranked 394 on Forbes magazine’s list of the 400 richest people in America. As a transactional
leader, he was responsible for the vision and implementation of the Starbucks model.
Ref: http://online.stu.edu/transactional-leadership/
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Types of Leadership Styles
 Transformational
 High levels of communication
from management
 Motivate employees and enhance
productivity through communication
 Agents of change
 Example: Henry Ford
 The characteristics of being a transformational leader are implementing new ideas, constantly changing and
adapting to situations. Henry ford was a charismatic leader shown by his popularity by his workers and the public
for producing a car affordable to all. Henry Ford lived until 83 years old and died in 1947. His dream was to make
“A world in which cars are for everyone” and with his company Ford achieved this dream with his
transformational leadership.
Ref: http://www.money-zine.com/career-development/leadership-skill/transformational-leadership/
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Mentorship
 It is an employee training system under which a senior or more
experienced individual (the mentor) is assigned to act as an advisor,
counsellor, or guide to a junior or trainee.
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Incorporating Mentorship into Daily
Responsibilities
 Leadership by example
 Exposing top talents to multiple components of the organization
 Help subordinates make important career decisions
 Professional guidance
 Daily staff meetings
 Training and development programmes
 Quarterly evaluations
 Annual performance-based appraisals
 Bonuses and incentives
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Types of Leaders
 Thought Leaders
 Stretch their followers by helping
them envision new possibilities
 Thought leaders attract followers
and initiate change by the
power of their ideas
 Example: Steve Jobs
 Steve Jobs was the co-founder, chairman, and CEO of Apple Inc., where he oversaw the development of the iMac, iTunes,
iPod, iPhone, iPad, and numerous other innovations. He has been referred to as the “Father of the Digital Revolution,” “a
master of innovation,” and “the master evangelist of the digital age.”
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Types of Leaders
 Courageous Leaders
 Bravely pursue a vision in the face
of considerable opposition and risks
 Courageous leaders attract followers
and motivate people to change by their
willingness to take risks and stand up for
their beliefs and values
 Example: Abraham Lincoln
 Abraham Lincoln, the 16th president of the United States, served during the most difficult and dangerous period of our
nation’s history. Even though his life was constantly in danger and his policies were unpopular with many, he steadfastly
held to his convictions and governed with strength, fairness, and dignity. On January 1, 1863, he courageously issued his
memorable Emancipation Proclamation, which declared the freedom of slaves within the Confederacy.
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Types of Leaders
 Inspirational Leaders
 Promote change by the power of their
passionate commitment to ideas and ideals
 Inspirational leaders attract followers and
motivate people to change by the power
of their passion and their strong convictions
 Example: Martin Luther King, Jr.
 Martin Luther King, Jr., was an American clergyman, activist, and leader in the African-American Civil Rights Movement.
He is best known for his belief in nonviolent civil disobedience. His words and actions have inspired many people to
speak up and stand up for what’s right.
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Types of Leaders
 Servant Leaders
 Care deeply about people
 Servant leaders attract followers and
motivate people to change by helping
to remove obstacles that are in the way
of their growth and development
 Example: Mother Teresa
 Servant leaders attract followers and motivate people to change by helping to remove obstacles that are in the way of
their growth and development.
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Implicit Leadership Perspective
 Leadership Prototypes
 Individual perspective of leaders
 Effective leadership relative to individuals
 Romance of Leadership
 The belief that leaders make a difference
 Support perceptions through fundamental attribution error
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Ethical Decision Making
Real Life Example: Bill Gates
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The battle against Netscape
=
Ref: http://www.theguardian.com/global/2015/mar/22/web-browser-came-back-haunt-microsoft
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Bill Gates court trial: US Govt. vs Microsoft
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Ethical Decision Making
Real Life Example: Kenneth Lay
http://www.economist.com/node/940091
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What is Ethical Decision Making?
 The “right thing to do”
 Unethical does not mean illegal
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Model for Ethical Decision Making
Source: http://www.slideshare.net/tresdsdsd/04-ethical-decision-making
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Rational Choice Paradigm
 Identifying, selecting, and applying the best possible alternative
 Process:
 Identifying the problem/opportunity
 Analysis of causes
 What, Why, Where, How, Who
 Developing/identifying alternatives
 Choosing the best alternative
 Risk propensity
 Risk factors
 Implementation
 Putting chosen alternatives into action
 Evaluation
 Feedback
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Rational Choice Paradigm
 Problems:
 Assumption that people are perfect beings
 Other factors affecting decision making
 Feelings, Emotions, Mood, Risk, Internal Pressure
 Focuses on logical thinking
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Emotions and Making Choices
 Emotions
 Form biases and preferences
 Influenced by mood
 Intuition (“Gut Feeling”)
 No conscious reasoning
 Making Effective Choices
 Systematically evaluate alternatives
 Scenario planning
 Different outcomes
 Pros & cons
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Effective Evaluation of Decisions
 Knowing where and when to abandon project
 Developing benchmarks and thresholds
 Reliable sources for feedback
 Involvement of stakeholders
 Those involved in the project
 Difference perspectives and inputs
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Ethical Decision Making
The Josephson Model
Source: https://saylordotorg.github.io/text_human-
relations/section_09/001ab314a5c3873240787fb578670de3.jpg
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Why are effective leadership and ethical decision
making important for managers?
 Followers will have job satisfaction and commitment
 More helpful behaviour from followers
 Reduce deviant or unethical behaviour in followers
 Followers tend to have more self-efficacy
 “Trickle down” effect from top to lower level employees
 Protect bottom-line of the company
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Kenneth Lay’s (Enron) Story Part 2
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Successful Image Turnaround
Bill Gates has executed one of the best image turnaround in recent times.
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Conclusion
 Leadership:
 Types of leadership styles with examples
 Types of leaders with examples
 The implicit leadership perspective
 Stories of successful and Failed leaders
 Incorporating Mentorship
 Ethical decision making:
 Theories & Models of Decision Making
 Rational Choice Paradigm
 Emotions and Making Choices
 How to Effectively Evaluate Decisions
 Success and Failure Stories
 Implications for Managers:
 Leads to job satisfaction, commitment, increased self-
efficacy, “trickle down” effect, and protection of business
bottom-line.
 What we have learnt:
 Importance of leading by example
 No leadership style is the best
 Thin line between right and wrong
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If you want a deeper understanding
 This presentation is available online
 Link: <Hyperlink>
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Q&A
Thank you
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