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WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER?
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WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER?

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WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER? AN EXAMINATION OF ANTECEDENTS AND CONSEQUENCES OF ETHICAL LEADERSHIP

WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER? AN EXAMINATION OF ANTECEDENTS AND CONSEQUENCES OF ETHICAL LEADERSHIP

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  • 1. Human Capital Management JOURNAL ARTICLE GROUP PRESENTATION : WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER? AN EXAMINATION OF ANTECEDENTS AND CONSEQUENCES OF ETHICAL LEADERSHIP By David M. Mayer, Karl Aquino, Rebecca L. Greenbaum, Maribeth Kuenzi Prepared by: Alireza Khosroyar
  • 2. ETHICAL LEADERSHIP PRESENTATION OUTLINE • Introduction & Theoretical Background • Research Findings • Practical Managerial Implications • Case Study : Ethical Leadership in Microsoft CSGB 6101 - Human Capital Management
  • 3. ETHICAL LEADERSHIP INTRODUCTION & THEORETICAL BACKGROUND  Prior research : Effect of “Leadership” on follower behavior This research : Effect of “Ethical Leadership” ( new )  New Conceptualization of Ethical Leadership (Brown et al., 2005)  3 key building blocks of Ethical Leadership Moral person Moral manager CSGB 6101 - Human Capital Management
  • 4. INTRODUCTION & THEORETICAL BACKGROUND • Why Ethical Leadership matters • Who engages in Ethical Leadership • Whether Ethical Leadership represents a distinct aspect of leadership not captured by other leadership constructs Research Theoretical Constructs Antecedents Moral Identity Leadership Construct Ethical Leadership Consequences ( unit-level outcome ) Unethical Behavior Relationship Conflict Idealized influence Related Leadership Constructs Interpersonal Justice Informational Justice
  • 5. INTRODUCTION & THEORETICAL BACKGROUND Antecedents • Moral Identity Influences Moral Behavior Moral Identity Hypothesis 1a. : Leader moral identity symbolization is positively related to ethical leadership Hypothesis 1b. : Leader moral identity internalization is positively related to ethical leadership
  • 6. ETHICAL LEADERSHIP THEORETICAL BACKGROUND Social Learning Theory CSGB 6101 - Human Capital Management
  • 7. THEORETICAL BACKGROUND Unit-Level Outcomes • Unethical Behavior - Ethical leader influence their employees to engage in desired behavior. - Group norms for acceptable behavior are formed. Hypothesis 2 : Ethical Leadership is negatively related to unit unethical behavior • Relationship Conflict - More willing to allow coworkers to express their opinions. - Employees demonstrate Respect and consideration for coworkers’ needs. Hypothesis 3 : Ethical Leadership is negatively related to unit relationship conflict
  • 8. ETHICAL LEADERSHIP Theoretical Background Unit-Level Outcomes • Ethical Leadership as a partial mediator • Is there any possibility of the existence of other mechanisms that could also explain this relationship. Hypothesis 4 : Ethical Leadership partially mediates the relationship between leader moral identity and unit unethical behavior and unit relationship confilict. CSGB 6101 - Human Capital Management
  • 9. ETHICAL LEADERSHIP CONCEPTUAL FRAMEWORK Antecedents Independent Variables Leader Moral Identity Symbolization Consequences ( unit-level outcome ) Leadership Construct H4 Mediator H1a H4 H2 Dependent Variables Unit Unethical Behavior Ethical Leadership Leader Moral Identity Internalization H1b H3 Unit Relationship Conflict CSGB 6101 - Human Capital Management
  • 10. ETHICAL LEADERSHIP RESEARCH FINDINGS Leader Moral Identity Symbolization  H1a  H2 Unit Unethical Behavior Ethical Leadership Leader Moral Identity Internalization  H1b  H3 Unit Relationship Conflict  H1a,H1b: Leader moral identity are positively related to ethical leadership  H2, H3: Ethical Leadership is negatively related to unit unethical behavior and unit relationship conflict  H4: Negative direct relationship between Leader Moral Identity Internalization and unit outcomes BUT no relashionship between Leader Moral Identity Symbolization and unit outcomes. CSGB 6101 - Human Capital Management
  • 11. ETHICAL LEADERSHIP PRACTICAL MANAGERIAL IMPLICATIONS Ethical Leadership How Effects Rewards and Punishments ↓ ↓ Unethical Behaviours Relationship Conflicts CSGB 6101 - Human Capital Management
  • 12. ETHICAL LEADERSHIP PRACTICAL MANAGERIAL IMPLICATIONS Utilize H.R practices How Effects Selection Methods: Assessing managerial candidates' integrity and moral development ↑ Level of Ethical Leadership CSGB 6101 - Human Capital Management
  • 13. ETHICAL LEADERSHIP PRACTICAL MANAGERIAL IMPLICATIONS Ethics Training How Effects Educating about behaviours in ethical leaders Employees get consistent norms for appropriate behaviours ONLY a subset of unethical behaviours are examined! CSGB 6101 - Human Capital Management
  • 14. ETHICAL LEADERSHIP PRACTICAL MANAGERIAL IMPLICATIONS Activating moral identies How Effects Use CUES. e.g. Posters, slogans, material symbols which able to construct moral and concern salient. Increasing level of awareness of appropriate behaviours CSGB 6101 - Human Capital Management
  • 15. ETHICAL LEADERSHIP PRACTICAL MANAGERIAL IMPLICATIONS Being Good to feel Good To be motivated to uphold moral How Effects identities. Demonstrations of Ehtical Leadership Counter-intuitive Effects: Resist competing pressure CSGB 6101 - Human Capital Management
  • 16. ETHICAL LEADERSHIP PRACTICAL MANAGERIAL IMPLICATIONS Selecting leaders WHO committed to MORAL GOALS How Effects Moral identity is central to their self-definition. Employees learn as they demonstrate ethical behaviours CSGB 6101 - Human Capital Management
  • 17. ETHICAL LEADERSHIP What is required for effective ethical leadership? • • • • What you do what you say Systems culture CSGB 6101 - Human Capital Management
  • 18. ETHICAL LEADERSHIP The most critical factor in creating ethical organizations • (1) Ethical leadership, • (2) Ethical practices, • (3) Ethical climate. CSGB 6101 - Human Capital Management
  • 19. Ethical aspects of Bill Gates leadership “Humanity’s greatest advances are not in its discoveries, but in how those discoveries are applied to reduce inequity.” – Bill Gates.
  • 20. ETHICAL LEADERSHIP Bill Gates Leadership  Who is He? • Predominate and manipulative leader CSGB 6101 - Human Capital Management
  • 21. ETHICAL LEADERSHIP Et e l a sp hica a ill G B ts of c t r sh i p leade es  closer to his employees  inspirational motivation  intellectual stimulation  built a culture of the best and brightest  created culture of innovation, learning and improvement over time  high level of commitment by the people involved  taking care of employees  empowering workers by giving them all the information about what’s going on CSGB 6101 - Human Capital Management
  • 22. ETHICAL LEADERSHIP s of p ec t i p l as hica adersh n et U es l e Gat Bill • Microsoft is in a practically monopolistic position • to hide this unethical policy CSGB 6101 - Human Capital Management
  • 23. ETHICAL LEADERSHIP Awards and Honors CSGB 6101 - Human Capital Management
  • 24. ETHICAL LEADERSHIP Conclusion • http:// www.youtube.com/watch?v=UhxINyIZ454&featur CSGB 6101 - Human Capital Management