MGMT 374 Week 5 Lecture PowerPoint


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  • The most successful leaders do not rely on one style of leadership but alternate their technique based on the characteristics of the situation.
  • MGMT 374 Week 5 Lecture PowerPoint

    1. 1. <ul><li>Ethical Decision Making and Ethical Leadership </li></ul>C H A P T E R 5
    2. 2. The Ethical Decision Making Process <ul><li>In business, people make decisions differently than at home </li></ul><ul><ul><li>Organizational pressures </li></ul></ul><ul><li>The ethical decision making process in business includes ethical issue intensity , individual factors , and organizational factors , such as corporate culture and opportunity </li></ul>Source: Triangle Images
    3. 3. Framework for Understanding the Ethical Decision Making Process in Business
    4. 4. Ethical Issue Intensity <ul><li>Ethical issue intensity is the perceived relevance or importance of an ethical issue to the individual, work group, and/or organization </li></ul><ul><ul><li>Reflects the ethical sensitivity of the individual or work group </li></ul></ul><ul><ul><li>Triggers the ethical decision process </li></ul></ul><ul><li>Moral Intensity relates to a person’s perception of social pressure and the harm the decision will have on others </li></ul>
    5. 5. Individual Factors <ul><li>People often base their decisions regarding ethical issues on their own values and principles of right or wrong </li></ul><ul><li>Research on gender and ethical decision making women are generally more ethical than males </li></ul><ul><ul><li>Education, Nationality, and Age are other individual factors </li></ul></ul><ul><li>Locus of control relates to individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements </li></ul><ul><ul><li>Can be external or internal </li></ul></ul>
    6. 6. Organizational Factors <ul><li>C orporate culture is a set of values, norms, and artifacts that members (employees) of an organization share </li></ul><ul><li>Those who have influence in a work group (e.g. managers, coworkers, subordinates) are referred to as significant others </li></ul><ul><li>Obedience to authority helps to explain why many employees simply follow the directives of a superior </li></ul>Source: Digital Vision
    7. 7. Opportunity <ul><li>Describes the conditions in an organization that limit/permit ethical/unethical behavior </li></ul><ul><li>Relates to individuals’ immediate job context </li></ul><ul><ul><li>Where they work, with whom they work, and the nature of the work </li></ul></ul><ul><li>Opportunities for misconduct can be reduced by establishing formal codes, policies, and enforced rules </li></ul>Source: Triangle Images
    8. 8. Items that Employees Pilfer in the Workplace
    9. 9. Business Ethics Evaluations and Intentions <ul><li>Ethical dilemmas involve decision rules which are often vague or in conflict </li></ul><ul><li>Critical thinking plays a key role </li></ul><ul><li>A person’s intentions and the final decision on what action to take is the final step in the process </li></ul><ul><li>If intentions and behavior are not consistent with ethical judgments, the individual may feel guilt </li></ul><ul><li>Most businesspeople will make ethical mistakes </li></ul>
    10. 10. Using the Framework to Improve Ethical Decisions <ul><li>It is impossible to objectively determine right and wrong </li></ul><ul><li>Having a thorough knowledge about how ethical decisions are made will not solve ethical problems </li></ul><ul><ul><li>Business ethics involves value judgments and collective agreement about acceptable patterns of behavior </li></ul></ul><ul><li>Ethical decision making in business does not rely strictly on the personal values and morals of individuals </li></ul><ul><ul><li>Organizations take on a culture of their own, which have a significant influence on business ethics </li></ul></ul>
    11. 11. Leadership in Corporate Culture <ul><li>Leadership: The ability or authority to guide and direct others toward achievement of a goal </li></ul><ul><ul><li>Leaders are key to influencing an organization’s corporate culture and ethics </li></ul></ul><ul><li>Leadership styles influence organizational behavior </li></ul><ul><ul><li>Including employees’ acceptance of/adherence to organizational norms and values. </li></ul></ul>Source: © Jack Hollingsworth/Corbis
    12. 12. The Managerial Role in Developing Ethics Program Leadership
    13. 13. Leadership Styles <ul><li>Coercive leaders </li></ul><ul><li>Authoritative leaders </li></ul><ul><li>Affiliative leaders </li></ul><ul><li>Democratic leaders </li></ul><ul><li>Pacesetting leaders </li></ul><ul><li>Coaching leaders </li></ul>Source: Stockybte
    14. 14. Types of Leaders <ul><li>Transactional leaders create employee satisfaction through bartering for desired behaviors/performance </li></ul><ul><li>Transformational leaders raise employees’ commitment and foster trust and motivation </li></ul><ul><ul><li>Transformational ethical leadership is best suited for organizations with high ethical commitment among employees and strong stakeholder support for an ethical culture </li></ul></ul>
    15. 15. Habits of Strong Ethical Leaders
    16. 16. Challenges of Leadership <ul><li>Being a leader today is more complex and difficult than ever. </li></ul>