Leadership is a process whereby an individual influences a group of individuals to achieve a common goal (Northouse, 2010). To be an ethical leader, then, is not a matter of following a few simple rules. The leader's responsibility is complex and multi-dimensional, rooted less in technical expertise than in simple human integrity. "To do this to the right person, to the right extent, at the right time, with the right motive, and in the right way, that is not for everyone nor is it easy; wherefore goodness is both rare and laudable and noble." (Aristotle, Ethics II.9). This study quantitative study observed a multiple workplace that leaders practice business systems thinking and face ethical dilemmas in today’s workplace. The finding from this study revealed that ethical issues were given little attention in applying business systems thinking.
13. Conclusion-Conceptual Framework
Leader Traits
Success Leader Leader
Criteria Power Behavior
Situational
Variables Systems
Thinking
Intervening
Variables
(Yukl,2010)
14.
15. References
•Ababneh, E., Edward, J.S . & Hall, M. (2009). Systems thinking: whether you use it or not is the Road to KM. Proceedings of the
International Conference on Intellectual Capital, Knowledge Management & Organizational Learning (2009), 1- 9.
•Bonn, I. (2005). Improving strategic thinking: A multilevel approach. Leadership & Organization Development Journal, 26(5),
336-354.
•Bredillet, C.N. (2006). The link research – practice: A matter of “ingenuim” (part 1). Project Management Journal, 34(4), pp. 3-4.
•Conti, T. (2010). Systems thinking in quality management. TQM Journal, 22(4), 352-368.
•Erickson, D. (2003). Identification of normative source f or systems thinking: An inquiry into religious ground-motives for
systems thinking paradigms. Systems Research and Behavioral Science, 20(6), 475-487.
•Graetz, F. (2002). Strategic thinking versus strategic planning: Towards understanding the complementarities. Management
Decision, 40(5), 456-456
•Grayson, L. (2000). Description of the ethical concepts relevant to resolving moral issues in business. Retrieved from
http://smallbusiness.chron.com/description-ethical-concepts-relevant-resolving-moral-issues-business-37610.html.
•Hughes, B., Hall, M., & Rygaard, D. (2009). Using root cause analysis to improve risk management. Professional Safety, 54, 2, 54-
55.
•Johnson, C. E. (2012). Meeting The Ethical Challenges of Leadership: Casting Light Or Shadow
(4thrd ed.). Thousand Oaks, CA: Sage Publication.
•Johnson, C. E. (2012) Organizational Ethics. A Practical Approach (2nd Ed) Washington, DC. Sage Publication
•Jonker, J., & Karapetrovic, S. (2004). Systems thinking for the integration of management systems. Business Process
Management Journal, 10(6), 608-615.
•Kalim, K., Carson, E., & Cramp, D. (2006). An illustration of whole systems thinking. Health Services Management Research,
19(3), 174-85.
•Liedtka, J. M. (1998). Linking strategic thinking with strategic planning. Strategy & Leadership, 26(4), 30-35
16. References
• Marcus, A.A (2005). Management strategy. New York, NY: McGraw-Hill Companies, Inc.
• Martin, R. (2011). The CEOs ethical dilemma in the era of earnings management. Strategy & Leadership, 39(6), 43-47
• Moon, S., & Dong-Jin, K. (2005). Systems thinking ability for supply chain management. Supply Chain Management, 10(5),
394-401.
• OShannassy, T. (2003). Modern strategic management: Balancing strategic thinking and strategic planning for internal and
external stakeholders. Singapore Management Review, 25(1), 53-67
• Palaima, T. & Skaržauskienė, A. (2010). Systems thinking as a platform for leadership performance. Baltic Journal of
Management, 5(3) 330-355.
• Reed, G. E (2006) Leaership and System Thinking. Defense AT&L: May-June 2006
• Retrieved from http://www.au.af.mil/au/awc/awcgate/dau/ree_mj06.pdf
• Seiler, J., & Kowalski, M. (2011). Systems thinking evidence from colleges of business and their universities. American
Journal of Business Education, 4(3), 55-61.
• Shank, G. (2002). Qualitative Research. A Personal Skills Aproach. New Jersey: Merrill Prentice
• Hall.
• Skaržauskienė, A. (2010). Managing complexity: systems thinking as a catalyst of the organizational performance.
Measuring Business Excellence, 14(4), 49-64.
• Spiceland, J. D., Sepe, J. F., & Nelson, M.W (2011). Intermediate Accounting. New York, NY: McGraw-Hill Companies, Inc.
• Thibodeau, J.C., & Freier, D. (2011). Auditing and accounting cases. New-York, NY: The McGraw-Hill Companies, Inc.
• Thompson, A. A., Strickland, A. J. (1999). Strategic management concepts and cases. New York, NY: The McGraw-Hill
Companies.
• Whittington, O., & Pany, K. (2010). Principles of Auditing and Other Assurance Services. New York, NY. McGraw-Hill
Companies, Inc.
• Wreme, E., & Sorrenti, S. (1997). Using systems thinking tools to help Australian managers increase their capacity for
perception. The Learning Organization, 4(4), 180-187.
Editor's Notes
Good Afternoon Everyone, The topic of my presentation is: Slide One: LEADERSHIP WITHIN BUSINESS SYSTEMS THINKING, AND ETHICAL DILEMMA IN TODAY’S WORKPLACE
Slide Two: The Agenda of my presentation will cover: The Essence of Leadership Systems Thinking Strategic Planning Ethical Framework
The essence of leadership looks at the distinction between “Leadership” and “Management”. Having vision is a permanent fixture in every leader’s ability is one thing while having control over those who are working is another. We will also look at “Followers” to see how they seize on the initiative to become a leader. Followers learn to become great communicators and develop the passion and motivation to be goal driven and seek action that warrant results. Lastly, “Power” determines how a leader’s behavior dictates the followers, the action as well as the outcome.
One of the most common outcomes of the inability to define leadership is that many frequently mistake management for leadership. The two are distinctly different, though that distinction often escapes people. A leader wants to influence others to understand and agree about what needs to be done and how to do it. A leader wants to act as a facilitator and collective efforts to accomplish shared objectives. Let's start with some common elements that most people might agree on and see if we can fit them together in a logical way that "works" for a number of people in a variety of circumstances. Management is based on position authority which is awarded to the individual. Some of the responsibilities include assigning task, creating policies, and accomplishing defined objectives. Leadership is based on voluntary followership which is earned by contributions deemed beneficial to others. Some of the things leaders look to accomplish includes challenge, change while enabling others perform and grow, focus on long-term results and define objectives based on the vision and mission of the organization.
1. Followers -it's tough to lead if there's nobody to follow! Someone once said that leadership is about people rather than things. What does that mean? It could mean a number of things. One could view the leader as taking an individualistic approach to satisfying their needs. A second view could result in a collectivist approach where the needs of groups, organizations and society are considered first. Whichever approach is taken, the leadership behavior would have developed into either a Performance Orientation method to improve performance and efficiency around them as they see fit; or develop into a Humane Orientation showing sympathy and compassion, mentoring and coaching. No matter what, Ethical Leadership plays an important role which will be discussed later in the presentation. 2. Action is a nother element in which leaders do things, they don't just talk about them. They're pro active. They may employ others to do the things they want done, but if they're making the decisions about what to do. Getting people involved to utilize their time, energy and money means that action is going forward to produce results. Some of the results reveals how followers are converted into leaders while leaders are viewed agents of change.
3. Power itself comes from influence, which has a few important components: credibility, inspiration, and compulsion. Credibility comes from integrity which covers the values and ethics. These are two essential principles needed to instill the followers. Power can come from being in the right place at the right time and taking action on what is needed. In organizations, shareholders tend to relinquish unlimited power to executive leaders who are catalyst to drive the organization’s success. Asserting the right amount of power will provide certain leadership and managerial practices to lead to effective empowerment that can result in higher motivation and productivity.
Sometimes leaders would incur a couple of problems that could hinder their ability to lead effectively. In this study, I looked at two problems. How do leaders approach systems thinking in the workplace? How do leaders perceive ethical dilemma in their organization?
French and Raven proposed five bases of interpersonal power that contribute to inspiration and compulsion. Expertise and charisma normally inspire people. Legitimacy formally conferred, rewards dispensed, and coercion applied tend to compel expected behavior. Ethics and values builds the credibility for followers to believe in . All three of the first three bases provides the engine that usually exercise the power to influence people to do willingly rather than feel pressured to do so.
Systems, like the human body, have parts, and the parts affect the performance of the whole. All of the parts are interdependent. The liver interacts with and affects other internal organs—the brain, heart, kidneys, etc. You can study the parts singly, but because of the interactions, it doesn’t make much practical sense to stop there. Understanding of the system cannot depend on analysis alone. the system as a whole will have properties, behaviors and characteristics that emerge from the interaction of the components of the system, and which are not predictable from an understanding of the components alone. So is way you train an athlete to perform. So is the human body and, arguably, the human mind. How do leaders apply this concept? First, identify the event/problem. Second, identify the patterns. By asking a series of questions, patterns can be determined. Look for similarities. Third, once the problems and patterns have been identified then determine what solution(s) can rid of the problem. Systems Thinking is not about just focusing on the parts of a system but rather focusing on the complex unified whole. This way of thinking is taking leaders to the next level.
Systems Thinking is a wonderful way to understand the root cause of the problem. Systems Thinking allows organizations to: understand the strategic vision of the organization as a whole. understand how the organization works and fits together as a whole. understand the problems in the systems and understand the consequences of how solutions to those problems can affect the whole system. Systems thinking is a wonderful way to understand the root cause of the problem.
Many large companies have a “grand strategy” for customers, and for driving their portfolio of businesses. But rarely does this outwardly focused strategy include a component for driving internal change. That what’s needed to perform better. The strategic planning process consists of three stages. a. Strategy formulation includes developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue. b. Strategy implementation requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed; strategy implementation includes developing a strategy-supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information systems, and linking employee compensation to organizational performance. c. Strategy evaluation is the final stage in strategic management. Managers desperately need to know when particular strategies are not working well; strategy evaluation is the primary means for obtaining this information. Effective strategic planning produces higher quality and productivity to meet the organization’s success. Although strategic thinking about issues is clearly important for high level leaders than for lower level leaders, it is relevant for leaders at all levels. Utilizing strategic planning allows the leader to be have a clear path in determining the cause of every problem and nip it quickly.
I agree with Yukl’s (2010) approach in which Ethical leadership has to include values, traits and behaviors. In the behavioral context, other aspects have to include honesty, trustworthiness, altruistic and fairness. The ethical framework of a leader will help decide the behavioral outcome as to how one leads. 1.The first element in mind is to be able to “RECOGNIZE”. Then think about how one should act. What to do in a given situation. 2. Understand the Facts-Awareness , consider additional facts and be able to completely understand of the situation. 3. Understand the Options- Look at all available options. 4. Explain your Options-demonstrating your willingness to be responsible for your decision. 5. Test your Options by seeing if your decision is the right idea 6. Under stand the Consequences-By considering your ethical values, one should act lawfully and legitimately consider the interest of your customers or clients. 7. Act on it without any negative thought.
The conceptual framework takes a look at how each factor operates as a whole. The traits made up from the leader’s biological footprint or the one learning ability helps determine behavioral patterns. Systems Thinking would help improve the effectiveness and efficiency in the way situational and intervening variables are recognized and challenged. Situational variables helps determine leadership effectiveness based on the activity. Depending on the intervening variable, it mediates the leader’s behavior through individual performance, team performance or organizational performance. This will allow the leader to determine it’s use of power assertion thus keeping in mind of the overall success factors for dealing with each variable independently. Keep in mind that there are biases within the conceptual framework model. The leader could be seen as the sole hero putting all of the pieces together and not giving praise to the teams or groups involved. Another could be where there is could be a flaw in the design in handling a variable. However, systems thinking will help prevent flaws the second time around while a temporary solution is implemented. No matter what type of variable being introduced, the leader’s behavior determines outcome of success and measures the amount of power utilized.