MERCE CUNNINGHAM1. How Mikail Baryshinikov described Merce C

MERCE CUNNINGHAM
1. How Mikail Baryshinikov described Merce Cunningham’s
work?
2. Why did he begin to teach?
3. According to Merce Cunningham what is different between
female dancers and male dancers?
4. Who inspired him to go to New York?
5. How was 1940s modern dance?
6. Who was the musician Merce Cunningham worked with in his
lifetime?

7. How does he start when he choreographs dance?
8. His work “BIPED” what is its significant?
Part IV Bringing Out the Best in
Organizations and Yourself
CHAPTER 8 Organizational Skills
8.1 Leadership and Organizational Culture
8.2 Leading an Effective Organizational Communication System
8.3 Ethics and Social Responsibility
8.4 Leadership and Organizational Politics
Chapter Summary
CHAPTER 9 Leading Change
9.1 The Nature of Organizational Change
9.2 Models of Change Processes
9.3 Leadership and the Management of Change
9.4 Additional Challenges
Chapter Summary

CHAPTER 10 Balancing Life as a Leader
10.1 Stress Management
10.2 Time Management
10.3 Work-Life Balance
10.4 Committing to Being a High-Impact Leader and Making a
Difference
Chapter Summary
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war82476_08_c08_243-284.indd 244 3/3/16 1:16 PM
8 Organizational Skills
Monkeybusinessimages/iStock/Thinkstock
Learning Objectives
After reading this chapter, you should be able to:
•
Integrateleadershipactivitieswithorganizationaleffectivenesscrit
eria.
• Recognizetheroleoforganizationalcultureinachievingsuccess .
•
Analyzeorganizationalcommunicationsystemsandlearnhowtolead
them.

• Understandethicalandsociallyresponsibleactivities.
• Adjusttoandmanageorganizationalpoliticsasneeded.
war82476_08_c08_243-284.indd 245 3/3/16 1:16 PM
Section 8.1 Leadership and Organizational Culture
Introduction
Seth Goldman could be described as a “thirsty” man. As a
college student, he became frus-
trated with the products available on the market to quench a
person’s thirst. Some had too
much sugar, some had too much water, and others had weak
flavors. He shared his disillusion
with his professor at the Yale School of Management, Barry
Natebuff, in a class discussion
about major soft drink products in 1988.
In 1997, Goldman was playing with different beverage
combinations when he became deter-
mined to create a new product ideal for rehydrating and
quenching thirst. He reconnected
with Natebuff, who had recently traveled to India and
discovered that many bottled tea prod-
ucts were brewed from the dust and fannings left over from
whole tea leaves that had been
designated for other uses. The two joined forces and started
brewing Honest Tea from whole
leaves.
After a successful start-up sale to Fresh Fields (Whole Foods
Market), the company was
launched. A strong, ethically driven culture has always been at

the forefront of the firm’s oper-
ation. The mission statement states: “Honest Tea seeks to create
and promote great-tasting,
healthier, organic beverages. We strive to grow our business
with the same honesty and integ-
rity we use to craft our products, with sustainability and great
taste for all.”
The mission represents more than words. The firm has been well
known for seeking out sup-
pliers of flavors and other items from impoverished areas,
thereby helping low-income farm-
ers, even in remote locations, build thriving businesses. Since
being bought by Coca-Cola in
2011, the company has expanded its distribution to more than
100,000 stores across the
United States. The growth allows Honest Tea to make a greater
impact in line with the com-
pany’s mission. The beverages are organic, fair trade certified,
and the containers are made
with environmentally friendly materials. Tea leaves that have
been brewed go back into the
soil to help compost the next generation of products.
Every aspect of Honest Tea’s operations reflects Goldman’s and
Natebuff ’s “thirst” for a
socially conscious business that exhibits great success over
many years. Such great leadership
began as a simple conversation and eventually evolved into a
thriving enterprise.
8.1 Leadership and Organizational Culture
In preparing organizations to succeed, leaders need to be keenly
aware of the significant
influence culture can have on the success or failure of

organizations. They also need to know
how to build, sustain, and change organizational cultures.
Little had been written about organizational culture until the
1980s when organizational
scholars began to research the important role culture plays in
the success of organizations
and the strong link between culture and performance (Deal &
Kennedy, 1982; Schein, 1985;
Gordon & DiTomaso, 1992; Marcoulides & Heck, 1993; Kee,
2003). Researchers have offered
many definitions trying to capture the essence of culture. We
may define culture as the pre-
dominant beliefs, values, attitudes, behaviors, and practices that
are characteristic of a group
of people. Schein used the word “group” in defining culture as a
reference to social units of
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Visible
1. Artifacts: dress,
ceremonies, office
design, slogans.
Invisible
2. Expressed values:
“We value customer feedback,”
“Quality is our number 1 concern.”
3. Underlying assumptions and deep beliefs:
“We will earn your respect.”

Culture that can
be seen at the
surface level
Deeper values
and shared
understandings
held by organization
members
all types and sizes (1992). In other words, a group could include
a country, private or public
sector organization, a team, a family, or any group of people
that develops norms or standards
that become characteristic of the group.
A second definition of culture is that it refers to a system of
shared meaning held by members
of an organization that distinguishes it from other organizations
(Schein, 1996). This section
identifies some of the key concepts associated with culture,
especially as they apply to the
nature of effective organizational leadership.
Visible and Invisible Factors
Figure 8.1 portrays culture on three levels. First, we can
observe culture on a visible level
through artifacts such as dress, office layout, office design, and
slogans. Artifacts could also
include how leaders lead, the type of work environment an
organization has, how people are
treated, how decisions are made, and how things get done.

On a deeper level, we can understand invisible culture by the
expressed values that help shape
the visible artifacts. For example, an expressed value may be
that it is important to take great
care of our people and our customers. This will result in
behaviors that create a different cul-
ture than in an organization where an expressed value is that our
number one priority is to
maximize the bottom line. At a still deeper level are strong
beliefs and assumptions that are
so much a part of the culture that they are taken for granted and
not questioned. An example
would be that doing what is right is important no matter what
the cost.
Figure 8.1: Levels of culture
From Daft, R.L. The Leadership Experience (4th ed.). © 2008
South-Western, a part of Cengage Learning, Inc. Based on
Organizational
Culture and Leadership (2nd ed. pp.3-27) by Edgar Schein,
1992. San Francisco, CA: Jossey-Bass.
Visible
1. Artifacts: dress,
ceremonies, office
design, slogans.
Invisible
2. Expressed values:
“We value customer feedback,”
“Quality is our number 1 concern.”

3. Underlying assumptions and deep beliefs:
“We will earn your respect.”
Culture that can
be seen at the
surface level
Deeper values
and shared
understandings
held by organization
members
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The Roles Culture Plays
Leaders would probably pay more attention to culture if they
better understood the impact
culture can have and the many roles it plays in the success or
failure of organizations of all
types and sizes. Culture can have a significant influence on the
performance, morale, and atti-
tudes of people and on how things get done. It can be a positive
or negative influence, can
bring out the best or worst in people, and can make an
organization a great place to work or
a dysfunctional place to work. It can create a sense of identity
in terms of the reputation of an
organization and what it stands for. Culture also helps
employees make sense of the behaviors
and practices that are acceptable or unacceptable. It also can

play a strong role in attracting
and retaining talented employees.
Dominant Cultures and Subcultures
Another consideration in understanding culture is to recognize
that in an organization there
is likely to be a dominant culture and one or more subcultures
(Martin & Meyerson, 1988).
The dominant culture is the most pervasive in the organization.
It expresses the core val-
ues of the majority of members. Some have called it the
“personality” of an organization. As
an example, the dominant culture at Southwest Airlines
encourages employees to cooperate
with one another and customers, as well as to have fun while
doing so.
Subcultures evolve to express the problems, frustrations, or
unique experiences of certain
members within the larger, dominant culture. For example, a
subculture may develop in the
quality control area, as members find they are often put in the
position of rejecting the out-
put of other members, and as a result, are viewed as “different”
and at times antagonistically.
Leaders are advised to make sure that subcultures do not
become viewed as so separate and
distinct that they cannot function as part of the larger unit.
Strong Versus Weak Cultures
The term strong culture describes those cultures in which the
core values are intensely held
and widely shared (Weiner, 1988). As a result, they have a
significant influence on the behav-

iors and practices of employees. Strong cultures are often built
by strong leaders. Examples
of companies with strong cultures include IBM, Southwest
Airlines, Honest Tea, and Edward
Jones, to name a few. In strong cultures, members understand
the cultural values and norms,
and there is a commitment by the leaders to maintaining the
culture. Strong cultures are gen-
erally associated with high performance (Jin, Drozdenko, &
DeLoughy, 2013). The exception
is when the culture is strong but unhealthy.
The term weak culture describes those cultures in which the
norms and practices are confus-
ing and inconsistent. Weak cultures are difficult to work in
because expectations are unclear
and there is little consistency throughout the organization. As
you might expected, weak cul-
tures typically result in low performance (Mushtaq, Ahmad, &
Tanveer, 2012). In addition to
the strength of the culture, leaders need to be observant of the
types of behaviors and atti-
tudes a culture is driving and whether they are desirable or
undesirable. In essence, leaders
need to know how strong a culture is and the types of behaviors
it is influencing.
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Characteristics of High- and Low-Performance Cultures
Much of the interest in culture has come from the extensive

research on the link between
culture and performance. John Kotter and James Heskett
conducted one of the classic studies
on culture. These researchers studied companies over an 11-year
period and found that the
companies that exhibited healthy cultures had increases in sales
of an average of 682% ver-
sus 166% for comparable companies, and they had stock
increases of 901% versus 74% for
comparable companies (Kotter & Heskett, 1992). Other studies
indicate that strong, healthy
cultures can have a significant influence on productivity, job
satisfaction, morale, attitudes,
quality, customer satisfaction, innovation, turnover and
absenteeism rates, commitment to
the organization, and efforts to attract and retain talented
workers (Denison, 1997; Rollins &
Roberts, 1998; Weiner, 1988; Ehrhart, Schneider, & Macey,
2014; Cameron & Quinn, 2011).
One of the most revealing ways to view culture is to consider
the degree to which a culture is
a high- or low-performance culture. While all cultures exhibit
differences, there are consis-
tent patterns of high- and low-performance cultures. Table 8.1
summarizes research findings
on typical characteristics of high- and low-performance cultures
(Rosenthal & Masarech,
2003; Kilmann, Saxton, & Serpa, 1985; Rollins & Roberts,
1988; Lussier & Achua, 2016; Weiss,
2011; Daft, 2015; Fisher, 2000).
Table 8.1: Characteristics of high-performance and low-
performance cultures
High-Performance Culture Low-Performance Culture

Leaders emphasize both cultural values and per-
formance and build strongly people-oriented and
results-oriented organizations
Leaders provide minimal leadership and emphasize
performance or people but not both
Clear and compelling vision, mission, and goals Vision,
mission, and goals are unclear, not compelling,
not used, or do not exist
Core values that drive the culture and are used in
decision making
Core values are unclear, not compelling, not used, or
do not exist
Committed to excellence, ethics, and doing things
right
Lack of commitment to excellence, questionable
ethics, and a reputation for doing what is expedient
rather than what is right
Clear roles, responsibilities, and success criteria,
and strong commitment to engaging, empower-
ing, and developing people
Unclear roles and responsibilities and little interest
in fully utilizing and developing the capabilities and
potential of people
Positive, can-do work environment Negative, tense, stressful,
resistant work environment

Open, candid, straightforward, and free-flowing
communication
Guarded communication, reluctance to be open and
straightforward, and consequences for saying things
leaders don’t want to hear
Teamwork, collaboration, and involvement are
the norm
Top-down decision making with minimal teamwork,
collaboration, and involvement
Emphasis on constant improvement and state-of-
the-art knowledge and practices
Slow to make needed improvements and behind the
times in knowledge and practices
Willingness to change, adapt, learn from suc-
cesses and mistakes, take reasonable risk, and try
new things
Poorly planned change, resistance to change, minimal
learning from successes and mistakes, and either risk
averse or risk foolish
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Cultural Vulnerability
Cultures are like a precious and prized treasure when they are

strong and healthy and driving
the right behaviors. They are among the greatest assets an
organization can have. However,
they are vulnerable assets that can be damaged or lost if leaders
are not aware of their value
and are not keeping close watch over possible culture-changing
practices, attitudes, threats,
or events. Leaders need to be aware that many things can impact
culture and need to be dealt
with and managed to hopefully avoid cultural damage. For
example, budget cuts, rapid mar-
ket changes, economic downturns, natural disasters, and
changes in ownership or leadership
could change cultures. In potential culture-changing situations,
leaders should be involved
and engage the appropriate people in finding ways to sustain the
culture or possibly even use
challenging situations to strengthen the culture.
Bill Marriott: People-Based Culture
The Marriott hotel chain is a major success in U.S.
business. Its founder and CEO, Bill Marriott, has always
understood the value of a strong organizational culture
based on people (Forbes, 2014). As he once noted,
It’s always been the major belief of our company,
take good care of your people, they’ll take good
care of the customer and the customer will come
back. And we celebrate them. We train them. We
teach them. We provide opportunity for them.
Fifty percent of our general managers have
come out of the hourly ranks and we continue to
promote. We’re at almost 4,000 hotels around the
world and the majority of our senior people in
the company and in the hotels themselves have

had a lot of opportunity to work with people and
work very hard to develop a relationship with
our people, because we know they make the
difference, particularly in the hospitality business. (Forbes,
2014, para. 8–9)
We’re not like an assembly line in a factory. People are out
there meeting
the guests, checking them in, checking them out, waiting on
them in the
restaurants, cleaning their rooms, so they have millions of
interactions every
day with our guests. . . . We have detailed procedures for
checking guests in
and checking guests out. But at the same time we want our
people to know
that they’ve got latitude (Marriott, quoted in Forbes, 2014, para.
10, 14).
The emphasis on quality relationships with employees extends
to Marriott. Over the years he
regularly tours as many sites as possible, stopping to greet
individual employees along the
way. In some company circles he has nearly taken on the status
of “rock star.” The enduring
culture of Marriott should continue years after Bill Marriott’s
tenure.
Gustavo Caballero/Getty Images
Bill Marriott is known for his
emphasis on relationships and
spends a lot of time meeting
employees around the world.
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The Role of Leadership: Building, Sustaining, or Changing a
Culture
When studying culture, it is also important to recognize that
leaders are the primary shapers
of culture (Steers & Shim, 2013). Leaders are the major
influence on the purpose, strategies,
practices, and values of a whole organization or group of any
size. Tony Hsieh is the well-
known architect of the Zappos culture (Warrick, Milliman, &
Ferguson, 2015). Jeff Immelt was
able to turn around the culture of IBM (Pyke, 2005). Tim Cook
has been able to improve an
already strong culture at Apple (Tyrangiel, 2012). When Alan
Mulally became the CEO of the
struggling Ford Motor Company, he was able to change the
culture and performance of Ford
for the better in a short amount of time (Hoffman, 2012). On the
other hand, an ineffective
new leader who is not a good fit for an existing culture can
quickly tear down one that took
decades to build.
Leaders play key roles in building, sustaining, and changing
culture. If they do not undertake
this task in a purposeful, proactive way, it will happen by
default and may result in unwanted
consequences. CEOs such as Bill Gates of Microsoft, Herb
Kelleher of Southwest Airlines, and
Jeff Bezos of Amazon.com, are all known for their emphasis on
the importance of culture.

Leaders who do not understand or who neglect culture may do
so at a high cost. It has been
estimated that 60% of all mergers fail to achieve their
anticipated goals or fail altogether
because of cultural differences that were not dealt with
(Hellriegel & Slocum, 2011). Leaders
can engage in many activities designed to build, sustain, and
change cultures. This section
identifies some of the most important.
Make Culture a High Priority
Leaders who understand the value of culture make culture an
important consideration in
developing the vision, mission, core values, goals, and
strategies for an organization. When all
of these factors are clear and compelling and aligned with
expressed cultural ideals or core
values that define the desired culture, and considering culture in
the decision-making pro-
cess becomes the norm, culture begins to develop in a
purposeful way. Employees respond to
what leaders think is important and value. Walt Disney was a
master at making culture a high
priority. The wholesome family values that he espoused and
even the job titles that he used,
like calling engineers “imagineers,” impact the Disney culture
to this day. In making decisions,
it is not uncommon for leaders at Disney to ask, “What would
Walt think?” (Dumaine, 1990).
Role Model Desired Behaviors
The example of leaders is one of the strongest shapers of
culture. How leaders behave and
get things done, the actions that they take, and the values and
beliefs that they hold set the
example for others to follow and the patterns for the cultural

norms (Gehman, Trevino, &
Garud, 2013). For leaders to role model the desired behaviors,
walk and talk must be consis-
tent (Kottke & Pelletier, 2013). A leader who emphasizes good
stewardship while taking an
exorbitant salary will have little credibility. Conversely, a
leader who includes stakeholders
in developing a reasonable compensation package will engender
respect and credibility with
regard to expressing core cultural values and norms.
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Recruit and Develop for Culture
Recruiting and training for culture at all levels of an
organization is essential to sustaining
the desired culture. Culture fit should be as important as hiring
for skills or experience. This
is especially true in regards to recruiting top-level leaders. To
hire for culture requires well-
designed recruiting, selection, orientation programs, and
training and development opportu-
nities that train new and current employees on the desired
cultural behaviors and practices.
Value, Recognize, and Reward Desired Behaviors and Practices
Another way to build culture is to value, recognize, and reward
behaviors that support the
culture. Leaders can make all kinds of statements about the type
of culture they desire, but
ultimately, employees will respond to the behaviors that they
see being valued, recognized,

and rewarded. This requires leaders to be aware of the behavi ors
they are actually reinforcing.
Use Symbols, Ceremonies, Socialization, and Stories to
Reinforce Culture
Symbols, rites, ceremonies, socialization, and stories
communicate culture to organizational
members. Leaders should look for opportunities to reinforce the
desired core cultural values.
Symbols can be actions, objects, or events that communicate
meaning. For example, a com-
pany asked a new CEO to choose the vehicle that he wanted to
drive. Knowing that the other
executives all drove luxury cars, he chose a midsize Chevrolet.
Although he never said a word
about why he chose a much more modest car, this action sent a
strong message about desiring
a culture where leaders were good stewards and did not try to
set themselves apart from the
rest of the employees.
Ceremonies are planned activities that are meaningful to
employees. Award and promotion
ceremonies and celebrations for achieving goals are examples.
Ceremonies reinforce specific
behaviors and values. Mary Kay Cosmetics Company holds
elaborate awards ceremonies
where different levels of performance are rewarded with gifts
ranging from gold and dia-
mond pins to pink Cadillacs.
Socialization can become another important part of building
culture. Socialization includes
integrating people into the culture by making clear the kinds of
behaviors and attitudes that
will help them succeed and providing opportunities for people

to socialize and bond and
become more cohesive (Feldman, 1981). The more that people
interact and get to know one
another, the more likely that the cultural values will be shared
and strengthened.
Stories are narratives that reinforce the cultural values. One
widely told story about a Nord-
strom associate states that he listened to a customer complain
about the performance of his
automobile tires and gave him a refund on the tires. Nordstrom
does not sell tires! The story
reinforces the company’s zeal for customer service and a no-
questions-asked return policy
(Kanir, 2013), even though management would not want such a
behavior to become standard
practice.
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Communicate
Communication offers one of the most effective venues for
leaders to reinforce cultural com-
munication. Leaders communicate both verbally and
technologically with employees in many
ways that support the cultural values. They send out general
memos commending people or
teams for accomplishments that are consistent with the cultural
values. They also circulate
articles, show videos, bring in speakers, or emphasize principles
that are supportive of the
cultural values. Keeping people well informed and setting the

precedence in meetings for
open, straightforward, and candid communication establishes
cultural norms for the organi-
zation. We go into detail about organizational communication in
the following section.
Monitor Culture and Manage Cultural Change
Given the importance of culture in influencing performance and
morale and many other fac-
tors, it would be wise for a leader to assess culture at least on
an annual basis. A leader needs
to know whether the culture is moving in the right or wrong
direction and if potentially influ-
ential events are affecting the culture. The leader can respond
proactively rather than having
to react to situations that in some cases could be undermining
the culture. Organizational
cultures are generally stable and are difficult to change
(McShane & Von Glinow, 2015). As
noted, however, they can also be vulnerable to events such as
downsizing, a natural disaster,
or change in leadership that can cause changes in the culture.
Formal and informal methods to assess culture are available.
Formally, questionnaires can be
used to provide a profile on the culture. Also, internal or
external professionals can interview
cross sections of people to get a reading on the culture. It can
also be helpful to have a Culture
Team responsible for monitoring the organization, for
recommending ways to build and sus-
tain the culture, and for being involved in helping guide
possible culture changes (Warrick,
2002).
To change culture requires far more than lots of talk about

culture and posters on walls iden-
tifying core values or cultural ideals (Warrick, Milliman, &
Ferguson, 2015). It takes a strong
commitment of the leaders to make cultural changes combined
with knowledge about the
present culture ideas regarding the desired culture. To achieve
these ends, the leader should
consider the implications of desired changes and develop a
change strategy that involves key
people in planning and implementing any changes. In addition,
it takes aligning processes
and systems such as reward systems with the desired changes.
Educate Boards About the Importance of Culture
Governing boards can destroy strong cultures that took many
years to build by placing a leader
in charge of an organization who is not a fit with the present or
desired culture (Warrick &
Mueller (2010). On the other hand, a board that is well informed
about culture can select a
leader who can help build a better culture. Consequently, when
a top manager interacts with
or presents to a governing board, that leader should make every
effort to communicate the
nature of the organization’s culture and its value to the
company’s long-term well-being.
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Section 8.2 Leading an Effective Organizational Communication
System
8.2 Leading an Effective Organizational
Communication System

Chapter 5 discussed the importance of interpersonal
communication, but leaders also need to
be skilled at organizational communication. In fact, the higher
leaders go in the organization,
the more important organizational communication becomes and
the more a leader’s success
depends on abilities to establish effective organizational
communication. Organizational
communication consists of all of the planned ways leaders use
to communicate with those in
their area of influence. This could include, for example,
communicating through policies,
goals, meetings, technology, social media, newsletters, and the
vast array of options available
to leaders (Lengel & Daft, 1988).
Two communication systems pass
messages throughout the organi-
zation. The formal communica-
tion system is composed of every
organizationally approved channel.
These include letters; memos; meet-
ings; direct conversations; bulletin
boards; the company’s website;
company magazines and newspa-
pers; satellite transmissions; hand-
held devices; and interconnected
laptop systems, including those with
GPS locators. The second network,
the grapevine, or informal commu-
nication, emerges through social
interactions among employees.
Leaders can significantly improve their effectiveness at
organizational communication by

designing a communication system and involving the
appropriate people in the process. Keep
in mind that the higher the position of the leader, the more
involved the design is likely to
become and the greater the need to involve others in the pr ocess
and perhaps even seek
professional expertise. For example, a CEO who needs to design
a system for the entire orga-
nization will have a considerably more involved process than
will a leader with seven direct
reports. In either case, the leader should place a strong
emphasis on keeping the system as
simple, useful, flexible, and streamlined as possible.
In contrast, when communication is not well planned, a
communication gap occurs that
gets filled with confusion, misunderstandings, and people goi ng
in different directions. It
also results in people working on different priorities, a lack of
teamwork, and misinforma-
tion communicated through the grapevine and other undesirable
channels. The costs of poor
organizational communication can be substantial.
One of the reasons communication can be such a major problem
in organizations is that
leaders are not often trained to think of organizational
communication from a big picture
perspective and to plan and design a communication system
with the big picture in mind.
Fuse/Thinkstock
Organizational communication consists of all the ways
leaders communicate with those in their area of influence.

war82476_08_c08_243-284.indd 254 3/3/16 1:17 PM
System
Consequently, various means of communication begin to appear
with no apparent design or
coordination. As a result, an important role of leaders is to
design and continuously improve
an organizational communication process. An effective
organizational communication system
can be designed by each leader by involving the appropriate
people and working to improve
both the formal and informal systems, beginning with the
culture present in the company.
Communication Culture
An organization’s culture plays a major role in how
communication takes place. Leaders are the
primary shapers of organizational culture (Pentland, 2008), so
they need to be aware of the type
of culture they are creating as well as the implications and of
the changes they need to make to
better align the culture with the desired behaviors, results, and
communication dynamics.
The wide diversity of people working in almost all
organizations today makes the creation of
an open, accessible, and transparent organizational
communication system even more criti-
cal. One study of large organizations concluded that 92% of
organizations find that the big-
gest challenge in working with outsourcing providers is

communication (Shivapriya, 2007).
Multicultural communication is a term used to describe
communication between people
from different countries or nationalities. Differences in
languages, the meaning of terms,
cultural practices, and how verbal and nonverbal communication
takes place are prevalent.
There is no pat answer for dealing with multicultural
communication challenges. The issue is
important enough that organizations need to consider training
their people who are involved
in multicultural communication in the essentials they need to be
aware of. Company leaders
also need to consider hiring or engaging people familiar with
various cultures so they can be
involved in multicultural communication and activities.
Formal Communication Channels
A communication channel is made up of all of the ways
organizations communicate with peo-
ple. Another term that is used in describing organizational
communication is channel rich-
ness, which people use to evaluate the capacity of different
channels to convey different types
of information based on how important the information is. One
of the major changes over the
last decade in how organizations operate is the explosion of
communication channels avail-
able to organizations.
For example, in communicating with people, organizations must
consider a wide variety of
channels such as face-to-face interactions, face-to-face large or
small meetings, virtual large
or small meetings, teleconferencing or video conferencing,

email, voicemail, texting, blogs,
social media, newsletters, mailings, reports, and more. People
can be reached 24/7 around
the world. There is almost no end to the options.
The point of understanding communication channels is so that
we can give thought to what
works best for different situations. With new alternatives
constantly becoming available, it is
also important to provide training on the various forms being
used and new forms that are
added, and to work at keeping the channels as simple, useful,
and easy to use as possible. A
major challenge for leaders is to design the channels so that
employees do not suffer from
information overload and have little time to do their work.
war82476_08_c08_243-284.indd 255 3/3/16 1:17 PM
System
Formal Communication Patterns
Each organization is unique. Company leaders design
communication systems suited to the
organization’s unique needs. Four of the more common in
business settings include the chain,
wheel, circle, and all-channel communication patterns, as
Figure 8.2 displays (Guetzkow &
Simon, 1955).
Chain
The chain approach to management communication reflects

“chain of command” or “hier-
archy of authority.” Messages flow primarily in two directions:
upward and downward. Top
managers issue orders and relay decisions to middle managers.
Middle managers transfer the
information to first line supervisors. First line supervisors
inform entry-level workers. Ques-
tions, inquiries, and requests for clarification follow the reverse
order. Lower-level employees
become “order takers” and “order followers” in such a system.
Managers and employees who
violate the chain of command by communicating directly with
other departments “walk the
gangplank,” by going around the designated communication
system.
The chain design offers benefits to certain types of
organizations. The model fits situations in
which precision in carrying out tasks or assignments holds high
priority. Military and police
organizations serve as prime examples, although the chain only
works well within the orga-
nization rather than when one unit (police) must coordinate with
other units (fire, storm
cleanup departments, etc.). We also see the chain model in
companies that produce standard-
ized products, with few needs for innovation or change.
Wheel
In a wheel arrangement, a manager or supervisor becomes the
center of the wheel, with indi-
vidual spokes, or communication channels, connecting the
manager to subordinates. In such
a system, the manager retains information and dispenses it to
employees as needed, serving
as a control center. Individual employees communicate only

with the manager and not with
one another.
The wheel approach does not fit most managerial circumstances.
It works best when opera-
tions are geographically dispersed but not as well in other
situations. In most companies,
employees are not isolated from each other on a continuing
basis. Exceptions are possible,
such as when a series of park rangers reports to a central office
regarding fire threats and
other activities in the park system.
Circle
A circle resembles the wheel approach, only without the central
hub. In a circle system, mem-
bers communicate freely with other members, even when one
member of the circle is the
formally designated leader. The flow of communication,
however, goes around the wheel,
clockwise or counter-clockwise. This method matches work that
takes place sequentially. One
member’s end product becomes the beginning point for the next
member.
Figure 8.2: Patterns of managerial communication
The four most common patterns of managerial communication
include the chain, wheel, circle, and all-
channel forms.
Adapted from G. Moorhead & R.W. Griffin (2003).
Organizational Behavior: Managing People and Organizations
(7th ed.) Independence,
KY: Cengage Learning, pp.231-237.

Chain
CEO
Division Manager
Region Manager
Area Manager
Circle
Team
Member
Team
Member
Team
Member
Team
Member
Wheel
Employee
Employee
Employee
EmployeeManager
All-Channel

Entry Level
Employee
Entry Level
Employee
Entry Level
Employee
Middle
Manager
Supervisor Supervisor
war82476_08_c08_243-284.indd 256 3/3/16 1:17 PM
Chain
CEO
Division Manager
Region Manager
Area Manager
Circle
Team
Member
Team
Member

Team
Member
Team
Member
Wheel
Employee
Employee
Employee
EmployeeManager
All-Channel
Entry Level
Employee
Entry Level
Employee
Entry Level
Employee
Middle
Manager
System
Formal Communication Patterns

Each organization is unique. Company leaders design
communication systems suited to the
organization’s unique needs. Four of the more common in
business settings include the chain,
wheel, circle, and all-channel communication patterns, as
Figure 8.2 displays (Guetzkow &
Simon, 1955).
Chain
The chain approach to management communication reflects
“chain of command” or “hier-
archy of authority.” Messages flow primarily in two directions:
upward and downward. Top
managers issue orders and relay decisions to middle manager s.
Middle managers transfer the
information to first line supervisors. First line supervisors
inform entry-level workers. Ques-
tions, inquiries, and requests for clarification follow the reverse
order. Lower-level employees
become “order takers” and “order followers” in such a system.
Managers and employees who
violate the chain of command by communicating directly with
other departments “walk the
gangplank,” by going around the designated communication
system.
The chain design offers benefits to certain types of
organizations. The model fits situations in
which precision in carrying out tasks or assignments holds high
priority. Military and police
organizations serve as prime examples, although the chain only
works well within the orga-
nization rather than when one unit (police) must coordinate with
other units (fire, storm
cleanup departments, etc.). We also see the chain model in

companies that produce standard-
ized products, with few needs for innovation or change.
Wheel
In a wheel arrangement, a manager or supervisor becomes the
center of the wheel, with indi-
vidual spokes, or communication channels, connecting the
manager to subordinates. In such
a system, the manager retains information and dispenses it to
employees as needed, serving
as a control center. Individual employees communicate only
with the manager and not with
one another.
The wheel approach does not fit most managerial circumstances.
It works best when opera-
tions are geographically dispersed but not as well in other
situations. In most companies,
employees are not isolated from each other on a continuing
basis. Exceptions are possible,
such as when a series of park rangers reports to a central office
regarding fire threats and
other activities in the park system.
Circle
A circle resembles the wheel approach, only without the central
hub. In a circle system, mem-
bers communicate freely with other members, even when one
member of the circle is the
formally designated leader. The flow of communication,
however, goes around the wheel,
clockwise or counter-clockwise. This method matches work that
takes place sequentially. One
member’s end product becomes the beginning point for the next
member.

Figure 8.2: Patterns of managerial communication
The four most common patterns of managerial communication
include the chain, wheel, circle, and all-
channel forms.
Adapted from G. Moorhead & R.W. Griffin (2003).
Organizational Behavior: Managing People and Organizations
(7th ed.) Independence,
KY: Cengage Learning, pp.231-237.
Chain
CEO
Division Manager
Region Manager
Area Manager
Circle
Team
Member
Team
Member
Team
Member
Team
Member
Wheel

Employee
Employee
Employee
EmployeeManager
All-Channel
Entry Level
Employee
Entry Level
Employee
Entry Level
Employee
Middle
Manager
A leader might use the circle approach in a task force operation
as well as in laboratory set-
tings in which experiments take place in a carefully constructed
format. It might also fit cer-
tain creative endeavors, such as preparing advertisements or
market research projects.
All-Channel
In an all-channel communication arrangement, messages move
freely across organizational
ranks and members of a team, group, or department. Members

determine the persons who
should receive messages, regardless of title or status.
The all-channel approach to communication design matches an
increasing number of depart-
ments and companies. Many Internet firms, such as Google,
maintain open work spaces in
war82476_08_c08_243-284.indd 257 3/3/16 1:17 PM
System
which doors and walls are not used. Employees move about
freely and are encouraged to
develop and propose new and innovative ideas. Managers work
side by side with other orga-
nizational members.
The all-channel method empowers employees and encourages
innovation. Consequently, it
has often become the method of choice for research and
development departments as well as
other units that emphasize creativity.
Normally a leader would not be able to go into a company and
quickly identify the commu-
nication pattern. The information provided in Figure 8.2 gives
some clues, however. Many
organizations incorporate elements of least two of the systems.
Some projects are directed
using a wheel, others with a circle (Lin & Benbasat, 1991).
Other companies may maintain an
all-channel approach organization-wide but use a wheel or

circle in certain circumstances.
The least flexible chain approach, while less common, may be
the most visible to an outsider.
Types of Messages and Communication Goals
Company leaders guide organizations through dull periods and
dramatic challenges. Mes-
sages vary from straightforward concepts to complex
presentations designed to change atti-
tudes, opinions, or values. Table 8.2 indicates a series of
messages and their goals and the
corresponding degree of complexity associated with each goal.
Table 8.2: Messages and goals
Type of Message or Goal Degree of Message Complexity
Remind Lowest
Schedule/coordinate
Inform Moderate
Solicit input
Report findings
Persuade Highest
A message designed to remind can target individuals, groups, or
the entire organization.
Reminders of meetings, deadlines, and other time-related issues
are commonplace in com-
panies. Sets of individuals working on a common project or task
will receive messages that

schedule or coordinate activities. Planning processes dictate
schedules. Informational mes-
sages vary more widely. At times the information can be
relatively mundane; at others key
organizational events, outcomes, or decisions are transmitted.
Soliciting input ranges from
collecting opinions to gathering full sets of data in order to
make the most informed decision
possible. Reporting findings requires complete descriptions of
an analysis and may invite fur-
ther discussion and evaluation. The greatest message complexity
occurs in attempts to per-
suade because either a logical or emotional presentation
designed to change an attitude must
be constructed. Faulty reasoning or lack of a compelling
argument will cause the persuasion
attempt to fail (Burnes, 2004). Table 8.3 provides additional
insight into the patterns of com-
munication present in organizations combined with various
types of messages.
war82476_08_c08_243-284.indd 258 3/3/16 1:17 PM
System
Communication Flows
Communication flows in a variety of directions (Schernerhorn,
Hunt, & Uhl-Bien, 2010).
Leaders are involved in communicating on many levels. For
example, at a minimum they are
involved in downward, upward, lateral, and possibly external
communication. This means

that they need a plan for how and what they should be
communicating to various audiences.
Here are some things they should keep in mind in
communicating with key audiences.
Downward Communication
Downward communication is primarily used to communicate
with a leader’s direct reports. It
is used to keep employees informed about organization
essentials, the essentials of the group,
and other information they need to perform their jobs. It is also
used to instruct, motivate,
let employees know what is expected and where they stand,
assign and explain work, and to
create opportunities for employees to share ideas and provide
feedback.
Upward Communication
Upward communication is used to send and receive
communication from a leader’s boss and
other appropriate people at a higher level. Ultimately, a leader
has to please his or her boss
and perhaps others at a higher level to be successful. This
makes establishing effective two-
way communication with the appropriate people in higher
positions critical for a leader. The
key to success at this level is to have an open dialogue with
one’s boss to agree on what com-
munication is desired and in what form and frequency. It is also
important to earn enough
respect to be able to dialogue openly and honestly with one’s
boss. This can be a problem
if the boss makes being open difficult or if the leader for
whatever reason is reluctant to be
candid.

Lateral Communication
Lateral communication is used to communicate with peers.
Some leaders overlook how impor-
tant lateral communication can be. Most organizations require
teamwork and interdependence
Table 8.3: Managerial messages and communication systems
Pattern Common Messages
Chain Memo/directive, bulk email, formal presentation by
manager, little or no feedback expected
Wheel Interpersonal conversations, email exchanges, calls,
meetings directed by a supervisor, feedback needed
Circle Checklist with notation when task is completed, inter-
personal conversations between members, emails,
calls, texts, less structured meetings with feedback
expected
All-channel Interpersonal conversations, unstruc tured meetings,
emails, texts, calls, constant feedback in all directions
war82476_08_c08_243-284.indd 259 3/3/16 1:17 PM
System
between groups, and yet both are often lacking. Establishing
strong communication with
peers presents an opportunity for leaders to stand out by going
out of their way to develop
good relationships and open communication with their peers. It

can also be helpful for lead-
ers to involve their people in working with other groups they
serve to build open communica-
tion between the groups and to explore ways they can serve
them better.
External Communication
External communication takes place when a variety of groups
within an organization need
to be kept informed, and where appropriate, with groups outside
the organization such as
customers, vendors, investors, and others that are important to
the success of the organiza-
tion. This is another area of communication that leaders
sometimes leave to chance. In other
words, there is little planning in regards to communicating with
these groups. This increases
the possibility of communication breakdowns with groups that
may have an impact on a
leader’s success. Quality leaders work hard to ensure that all
publics (internal and external
groups) receive messages and information in a timely fashion.
Effective Communication Systems
A quality leader oversees and fine-tunes the organization’s
communication system. In order
to do so, the leader must first understand the types of issues that
create barriers to formal
communication. Then the system can be designed to overcome
those barriers. Part of that
process involves the leader working to ensure that informal
communication, such as rumors,
do not harm individuals or the overall organization while using
the system to effectively pass
along messages.

Barriers to Formal Organizational Communication
Communication systems in organizations require careful
construction and constant mainte-
nance. As new technologies have emerged, the number of
potential barriers to quality com-
munication has risen. Effective leaders recognize the
importance of efficient communication
systems. The barriers that can interrupt formal communication
include:
• information overload;
• physical barriers;
• interpersonal barriers; and
• informal contradiction of the formal message.
Information overload problems have grown dramatically in
recent years due to the influx of
new technologies. Any leader who takes time away from the job
is likely to return to a filled
email inbox. People can be reached through a variety of means,
and monitoring each commu-
nication takes time. The possibility of lost messages or
misunderstood messages results from
information overload.
Some physical barriers include time zone differences, telephone
line static, and computers
that crash. Office walls can also provide physical barriers to
effective communication, which
war82476_08_c08_243-284.indd 260 3/3/16 1:17 PM

System
is one reason why many organizations are adapting open floor
plans with cubicles instead of
traditional walls.
All of the interpersonal barriers that interrupt communication
between individuals can also
create formal communication problems. Issues such as
organizational rank and personalities
are primary examples of these problems, especially for leaders.
Informal communication, or gossip, is fun. Consequently,
rumors often continue even after
management has disputed them through the formal
communication system. The persistent
rumor problem can affect morale when the stories are about
layoffs, no pay raise years, and
terminations of popular managers.
Overcoming Barriers to Formal Communication
To make sure messages and information travel efficiently and
effectively through an orga-
nization, the company should establish and maintain a quality
management information
system (MIS). A well-designed management information system
consists of the people and
technologies used to collect and process organizational
information. A quality MIS begins
with effective people who know how to collect important
organizational information. These
individuals are found in many areas including accounting,
forecasting, production, quality
control, human resources, and at executive levels in the
organization.

A well-maintained MIS maintains the best technologies.
Company phone systems should be
easy to use, the website should be easy to negotiate, and
systems should be in place to make
sure that key decisions and announcements reach every person
that should hear them.
An effective MIS carries quality information. Key company
information will be timely, accu-
rate, important, and summarized. The leader should be able to
quickly access important sta-
tistics and information for decision-making processes.
Individual employees should be able
to find the types of data that help them perform their jobs most
effectively. For example, a cus-
tomer service representative should be able to access
information about previous contacts a
person or business has made with the company in order to best
serve the client’s needs.
Managing Informal Communication
Informal communication has three main characteristics. First, an
organization’s leadership
does not control it. Second, many times the information is
perceived as accurate and believ-
able, even more so than a formal communication issued by top
management. Third, it is
largely used to serve the self-interests of the people within the
grapevine stream. One impor-
tant consideration is what gets the grapevine rolling.
Many employees assume that rumors start because they make
very interesting gossip. Actu-
ally, the grapevine is fed by situations that are important to

people, ambiguity in the work-
place, and conditions that arouse anxiety in employees. The
grapevine flourishes in organi-
zations because work situations frequently contain these three
elements. The secrecy and
competition that typically are present in organizations around
issues such as a new boss
war82476_08_c08_243-284.indd 261 3/3/16 1:17 PM
Section 8.3 Ethics and Social Responsibility
coming on board, downsizing, and organizational realignment
create the conditions that both
encourage and sustain the grapevine.
While a leader cannot eliminate the grapevine, he or she can
manage it by infusing as much
correct information into the front end of the communication
pipeline as is possible. Leaders
can also quickly deal with false rumors, both through formal
denials and by exerting pressure
on the informal channel. Effective leaders also recognize the
potential of the grapevine to pass
along compliments to a worker through the employee’s social
network on the job.
The terms complement and supplement have been applied to the
grapevine. It adds additional
richness to formal communication channels. When managed
correctly, leaders can limit its
damaging effects and accentuate its positive aspects.
Communication systems are the lifelines of organizations.

Effective communicators often
enjoy successful careers and personal lives. They understand the
factors that can disrupt
quality communication and take steps to overcome those
problems. They are good listeners.
They also monitor messages in the formal and informal
communications channels to make
certain the proper information arrives where and when it is
needed. Someone who can “work
a room” or make an impressive speech has a major advantage in
the area of leadership and
communication.
8.3 Ethics and Social Responsibility
Ethics are the values and principles that govern a person’s or
group’s actions and that are
considered good or bad, right or wrong. A person’s sense of
ethics is a function of the degree
to which his or her values, principles, and actions are
considered to be at a high, moral, consis-
tent, and uncompromising level. When asked what employees
most want from their leaders,
at the top of the list is honesty and ethics (Savoye, 2000;
Kouzes & Posner, 2012). One study
conducted in the United States reported that:
• a majority of full-time workers say it is critical to work for an
ethical company.
• more than 33% of workers left a job because of poor ethics by
company leaders.
• eighty-two percent of workers said that they would be willing
to work for less pay to
work for an ethical company.
• only 11% of workers said that they were not affected by

unethical behavior (Ciulla,
2004).
People want leaders whom they can trust to tell the truth and be
straightforward in their
dealings. Employees want leaders whom they can count on to
have high standards and morals
and do what is right. Ethical behavior should be a high priority
leadership skill and an impor-
tant skill for all people. Ethics is considered so important by
most organizations that almost
all Fortune 500 companies in the United States and most of the
largest 500 companies in the
United Kingdom have ethical codes (Donker, Poff, & Zahir,
2008). These codes are designed to
motivate and guide leaders and employees in making ethical
decisions and assure all stake-
holders that they can expect ethical treatment. Critics are quick
to point out, however, that
posters on the wall with a list of ethical standards and talk
about ethics do little to actually
promote ethical behaviors and reduce unethical behaviors.
war82476_08_c08_243-284.indd 262 3/3/16 1:17 PM
A growing concern about the lack of high ethical standards and
the unethical practices of lead-
ers in business, politics, and most endeavors has emerged. A
survey of about 6,400 workers
from a variety of industries revealed that only 67% said that
coworkers acted with integrity

and that only 69% said that senior leadership acted ethically
(Ethics Resource Center, 2013).
Further, a Fortune 100 study of companies suggested that 40%
were found to have engaged
in activities that could be considered unethical (Clement, 2006).
We see corruption in business and
government all over the world,
sometimes ending with leaders
being disgraced or even impris-
oned for dishonest and immoral
practices. Companies in which top
executives were involved in uneth-
ical activities such as Enron, Bear
Sterns, Global Crossing, Qwest,
Tyco International, and WorldCom
are just the high- profile examples
that made the news. Clearly, there
is a growing need and desire for
ethical leaders.
Quality leaders are clearly goal
oriented and results oriented.
Coaches work to have winning
seasons and win championships.
CEOs seek to lead organizations
that perform above the norm.
Leaders of teams want their teams
to perform at a high level. We expect this of good leaders.
However, should there be more to
leading an organization than bottom line success?
Understanding Ethical and Unethical Behaviors
A person’s sense of ethics is driven by the values and principles
that he or she lives by and is

evidenced by the actions an individual takes. Values constitute
the beliefs a person holds that
guide his or her actions and help determine what is right and
wrong. Principles are the moral
rules, beliefs, and ideas that a person lives by. They are similar
to values, although values
tend to be held at a deeper level. Many factors influence the
values and principles we live by,
such as parents and other influential people; friends; one’s faith
or religious or philosophical
beliefs; education; and what we see, hear, read, experience, and
expose our minds to. Environ-
ment, societal values, and most of all, personal choice also
affect our values and principles.
One key problem that emerges in regard to ethics involves
identifying the standards that
determine whether something is ethical or not. Personal morals
and standards differ signifi-
cantly between individuals. Ethical standards differ between
countries, and societal standards
constantly change. Also, some situations are not always clear as
to what would be considered
Fuse/Thinkstock
Being deceptive or not keeping your word are consid-
ered unethical behaviors in business.
war82476_08_c08_243-284.indd 263 3/3/16 1:17 PM
ethical or not. In addition, people who may be highly ethical in

some parts of their lives may
make compromises in others.
Fortunately, some standards for judging ethics have remained
relatively consistent over time.
Table 8.4 displays actions that are generally considered to be
ethical and unethical.
Table 8.4: Ethical and unethical behaviors
Ethical Behaviors Unethical Behaviors
Honesty, genuineness Dishonesty, deception
Truthfulness, straightforwardness Lying, shading the truth
Obeying and abiding by the rules Cheating or bending or
breaking the rules
Never taking things that do not belong to you Stealing or taking
things that do not belong to you
Exemplary and honorable behaviors Questionable and
dishonorable behaviors
Treating people with respect and value Being disrespectful and
treating people badly
Treating people fairly and justly Taking advantage of people
and treating them unfairly
Giving your best at whatever you are involved in Giving your
best only when you feel like it
Keeping your word and your commitments Not keeping your
word and your commitments

Accepting responsibility for your behavior Not taking
responsibility for your behavior
Acting in responsible and trustworthy ways Acting in
irresponsible and untrustworthy ways
Serving and looking out for the best interest of
others
Looking out for your own self-interest at the cost of
others
Being faithful and loyal Being unfaithful and disloyal
Doing what is right no matter what the cost Doing what is
expedient even if it is not the right thing
to do
Being an example of high moral and ethical
standards
Being an example that lowers standards
The Benefits of Being Ethical and the Costs of Being Unethi cal
Many personal and organizational benefits result from being
ethical. On a personal level,
research indicates a close positive relationship between ethical
behavior and effective lead-
ership (Mayer, Aquino, Greenbaum, & Kuenzi, 2012). Ethical
integrity correlates strongly with
personal success (Murphree, 2013) and with feeling good about
yourself (Zak, 2012). Ethical
people also are likely to have fewer mental and physical health
problems and better social
relationships (Downs, 2012). Ethical people are likely to be less

stressed, as they don’t have to
worry about the consequences of unethical behavior and they
will have better relationships
because of their trustworthiness. From an organizational
perspective, ethical organizations
earn the respect of employees and customers and are spared
many of the entanglements fac-
ing unethical organizations.
war82476_08_c08_243-284.indd 264 3/3/16 1:17 PM
Further, unethical behavior results in both personal and
organizational consequences. Act-
ing in unethical ways on a personal level damages relationships;
undermines trust; is det-
rimental to a person’s mental and physical health; causes stress
from trying to cover one’s
lies or actions; and can result in getting in trouble, being fired,
or even going to jail (Detert &
Edmondson, 2011; Bonanos, 2013). It is not uncommon to read
about business, political, and
other leaders who had their careers and personal lives ruined by
unethical behaviors. Organi-
zationally, unethical behavior can damage the reputation of
organizations and result in losses
in sales, profits, and market share, and it can risk possible
significant legal fees, fines, conse-
quences for those involved, and even the closing of an
organization (Gunia, Wang, Huang, &
Murnighan, 2012; Lange & Washburn, 2012).
More Than the Bottom Line

It appears that excellent leaders exhibit a sense of purpose that
consists of more than merely
pursuing bottom line results. They tend to lead with a sense of
mission rather than ambition
and create organizations that are more than just money makers.
Collins and Porras, in the
book Built to Last, identified the best leaders as visionary
leaders who were “clock builders”
committed to building organizations to last (2004). The analogy
was of building a quality
clock that would tell time whether the leader was present or not
and that would continue to
tell time long after the builder of the clock left. Leaders who
are “time tellers” are primarily
micro-managers focused on short-term results and meeting the
numbers. They create orga-
nizations that are dependent on them to be able to function (tell
the time). When time tellers
are not around or leave, the organization does not perform as
well. Collins and Porras report
many examples of leaders with a greater purpose than bottom
line success.
Walt Disney was committed to building a company where
employees could thrive. Sam Wal-
ton, founder of Wal-Mart, was much more interested in building
the finest retailing company
that he possibly could than building a personal fortune. Bill
Hewlett and Dave Packard, found-
ers of Hewlett-Packard, were committed to building a company
where engineers could be cre-
ative and design great products. Steve Jobs, co-founder of
Apple, was committed to changing
the world through computers. John Wooden, the great UCLA
basketball coach, was dedicated
to building character in his players. Purpose and results can be

close partners.
The point of this discussion is that if leaders want to build great
organizations, they need to
have a purpose greater than bottom line success. They need to
be committed to building an
organization capable of achieving and sustaining success and of
having a sense of purpose
that is compelling for them and for their followers.
Ways Leaders Can Promote Ethics
It is a leader’s job not only to be ethical, but also to encourage
ethical behavior. There are
many ways to accomplish this. Three approaches include the
leader’s own activities, the use
of ethics training and counseling, and the development of codes
of ethics. An analysis of these
methods follows.
war82476_08_c08_243-284.indd 265 3/3/16 1:17 PM
Leader Activities
A leader can begin by supporting a strong sense of ethics from
the top. The top-level leader
sets the tone for ethical behavior. Therefore, all top-level
leaders should exhibit a united posi-
tion regarding ethics and work to build a long-lasting, sound,
and ethical organization.
Second, the leader should set an example. Effective individual
leaders know that the strongest

way to encourage ethical behavior is to set an example and to
consistently stand for doing
what is right no matter what the cost.
Third, the leader must promptly take care of unethical behavior.
Some unethical behavior
can be used as an opportunity to teach and help people learn
from mistakes and give them a
second chance. Clear breaches of ethics, where people should
have known better, need to be
dealt with swiftly and fairly so they send a message to others.
If there is any time that the phrase “actions speak louder than
words” holds true, it is in
regard to ethical and unethical activities. Employees watch and
learn from what a leader does.
What he or she says will pale by comparison.
Ethical Assistance
Quality companies provide ethics training and make ethical
behavior part of the culture.
Many companies such as Ecolab provide training in ethics and
make ethics an important part
of decision making (Warrick & Mueller, 2011). Ecolab is the
global leader in cleaning, sanitiz-
ing, food safety, and infection prevention products and services
with sales of $6 billion. Com-
pany leaders insist on a strong commitment to ethical values.
They make sure an organization
provides extensive training in ethics and have made the
importance of ethical behavior part
of the culture.
Ethical counseling and even ethics “hotlines” are available.
Individuals ranging from serious-
minded citizens to university professors are available to work

with companies in the areas of
ethics and social responsibility. These assets can be assessed
online and through networking
with respected companies and their leaders.
Develop and Implement a Code of Ethics
Many business professions, colleges and universities, and
individual organizations proudly
post codes of ethics. If a code of ethics does not exist in your
company, involve employees in
developing one that they own and are committed to. The key is
to not just have a code of eth-
ics but to utilize it on a regular basis in making decisions. Table
8.5 presents the set of ethical
principles developed by the Daniels Fund Ethics Initiative,
which leads a partnership between
several universities, driving principle-based ethics education
throughout each participating
school.
Table 8.5: Daniels Fund Ethics Initiative Principles
Integrity
Act with honesty in all situations
Trust
Build trust in all stakeholder relationships
Accountability
Accept responsibility for all decisions
Transparency
Maintain open and truthful communications
Fairness
Engage in fair competition and create equitable and just

relationships
Respect
Honor the rights, freedoms, views, and property of others
Rule of Law
Comply with the spirit and intent of laws and regulations
Viability
Create long-term value for all relevant stakeholders
Courtesy of Daniels Fund. http://www.danielsfund.org.
war82476_08_c08_243-284.indd 266 3/3/16 1:17 PM
http://www.danielsfund.org
Leader Activities
A leader can begin by supporting a strong sense of ethics from
the top. The top-level leader
sets the tone for ethical behavior. Therefore, all top-level
leaders should exhibit a united posi-
tion regarding ethics and work to build a long-lasting, sound,
and ethical organization.
Second, the leader should set an example. Effective individual
leaders know that the strongest
way to encourage ethical behavior is to set an example and to
consistently stand for doing
what is right no matter what the cost.
Third, the leader must promptly take care of unethical behavior.
Some unethical behavior

can be used as an opportunity to teach and help people learn
from mistakes and give them a
second chance. Clear breaches of ethics, where people should
have known better, need to be
dealt with swiftly and fairly so they send a message to others.
If there is any time that the phrase “actions speak louder than
words” holds true, it is in
regard to ethical and unethical activities. Employees watch and
learn from what a leader does.
What he or she says will pale by comparison.
Ethical Assistance
Quality companies provide ethics training and make ethical
behavior part of the culture.
Many companies such as Ecolab provide training in ethics and
make ethics an important part
of decision making (Warrick & Mueller, 2011). Ecolab is the
global leader in cleaning, sanitiz-
ing, food safety, and infection prevention products and services
with sales of $6 billion. Com-
pany leaders insist on a strong commitment to ethical values.
They make sure an organization
provides extensive training in ethics and have made the
importance of ethical behavior part
of the culture.
Ethical counseling and even ethics “hotlines” are available.
Individuals ranging from serious-
minded citizens to university professors are available to work
with companies in the areas of
ethics and social responsibility. These assets can be assessed
online and through networking
with respected companies and their leaders.
Develop and Implement a Code of Ethics

Many business professions, colleges and universities, and
individual organizations proudly
post codes of ethics. If a code of ethics does not exist in your
company, involve employees in
developing one that they own and are committed to. The key is
to not just have a code of eth-
ics but to utilize it on a regular basis in making decisions. Table
8.5 presents the set of ethical
principles developed by the Daniels Fund Ethics Initiative,
which leads a partnership between
several universities, driving principle-based ethics education
throughout each participating
school.
Table 8.5: Daniels Fund Ethics Initiative Principles
Integrity
Act with honesty in all situations
Trust
Build trust in all stakeholder relationships
Accountability
Accept responsibility for all decisions
Transparency
Maintain open and truthful communications
Fairness
Engage in fair competition and create equitable and just
relationships
Respect
Honor the rights, freedoms, views, and property of others
Rule of Law

Comply with the spirit and intent of laws and regulations
Viability
Create long-term value for all relevant stakeholders
Courtesy of Daniels Fund. http://www.danielsfund.org.
Corporate Social Responsibility
We can define corporate social responsibility (CSR) as the
obligation an organization
(profit-seeking or nonprofit) has to be ethical, responsible, and
responsive to the needs of
members in the organization as well as the larger society.
Virtually all of the Fortune 500
companies employ CSR programs.
Corporate social responsibility includes two issues, as Table 8.6
shows. The first involves
eliminating negative company activities. We can call the second
“doing positives.” Ethical indi-
viduals know that responsible firms and their leaders make sure
the organization does not
violate the law or engage in other destructive actions. Then, a
responsible company engages
in actions that benefit both internal members and external
constituents or stakeholders.
Doing positives involves more than engaging in altruistic
activities.
Table 8.6: Negative and positive company activities
Negative Company Activities Positive Company Activities
Financial fraud Charitable contributions

Pollution Sustainable business practices
Discrimination against individuals and groups Family-friendly
actions
Legal violations Hiring and training disadvantaged individuals
Tolerating harassment and hazing toward any
person or group
Community involvement
Producing harmful/dangerous products
war82476_08_c08_243-284.indd 267 3/3/16 1:17 PM
http://www.danielsfund.org
The activities shown in the right column of Table 8.6 bode well
for the future of the company.
Corporate social responsibility has been associated with better
relationships with customers
and the government. A firm that has always sought to be ethical
and act in a socially respon-
sible manner becomes less likely to end up in court or to face
legal action. The same organi-
zation fares more favorably in the court of public opinion. In
the long term, we can make a
strong case that socially responsible companies are the most
likely to survive and thrive.
Corporate social responsibility programs have been far -
reaching. Patagonia, the outdoor

clothing and gear retailer, is committed to manufacturing
products under “safe, fair, legal, and
humane working conditions throughout the supply chain”
(Patagonia, n.d., para. 2). Gap com-
mitted to improving working conditions at the 3,000 factories
worldwide that manufacture
its clothing (Merrick, 2004).
Companies engage in other efforts to be good corporate
citizens. Many are involved in philan-
thropy that benefits local, national, and international efforts.
For example, the Bill and Melinda
Gates (Microsoft) Foundation has given hundreds of millions of
dollars to benefit education
and contribute to battling poverty and illnesses. Bloomindale’s
Inc. has donated hundreds of
blankets and other important items to help people affected by
fires in California (Needleman,
2007). Numerous companies now feature programs that allow
employees to take time off
to serve their communities. In fact, 90% of Fortune 500
companies allow employees to take
time off to do volunteer work (Grant, 2012). Others develop
programs to help suppliers make
improvements in their operations or working conditions (Bies,
Bartunek, Fort, & Zald, 2007).
John Mackey and Kip Tindell: Conscious Capitalism
Principled leaders who genuinely care about creating
organizations that make a difference
have a number of alternatives for expressing their principles.
One of the newer ways is
through a concept called “conscious capitalism” (Mackey &
Sisodia, 2013). John Mackey,
co-founder of Whole Foods, and his co-author, Raj Sisodia,

coined the term. Mackey’s friend
Kip Tindell, who was the co-founder of the Container Store,
also wrote a book about the
concept (2014). Conscious Capitalism Inc. is a nonprofit
organization dedicated to cultivating
the theory and practice of socially responsible acti vities.
Conscious capitalism companies
practice four principles:
1. a purpose other than making money, although the company
should make money too;
2. a focus on employees, customers, suppliers, the community,
and its ecosystem and
shareholders;
3. a leader who seeks to bring out the best in people; and
4. a culture that fosters love and trust.
Supporters of the concept include well-known companies such
as Starbucks, Chipotle, Whole
Foods, Costco, Panera, Southwest Airlines, Nordstrom, and the
Container Store. These firms
pay higher wages than competitors, some much higher, and also
try to build employee- and
customer-centered cultures, take great care of their employees
and customers, and make
efforts to be good corporate citizens.
war82476_08_c08_243-284.indd 268 3/3/16 1:17 PM
Goals or Ends Means or Methods
Operational level OrganizationallyApproved

Political levelPersonal orSelf-Interest
Not Organizationally
Approved
Organizationally
Approved
Section 8.4 Leadership and Organizational Politics
Sustainability
Currently, one key to corporate social responsibility is the goal
of sustainability. Sustainabil-
ity is a term used to describe responsibly taking into account
the impact of products and
actions on the planet’s resources such as energy, water, and air.
It includes many efforts such
as managing toxic waste, seeking better energy and lighting
alternatives, or making packag-
ing smaller. Companies including Bridgestone Corporation and
Michelin SA are making tires
that operate more efficiently (Power, 2007). Wal-Mart has taken
many initiatives to become
one of the greenest retailers (Gunther, 2006). A number of
companies such as AT&T, Google,
DuPont, and Sun Microsystems now have a chief sustainability
officer (CSO).
In summary, ethical and socially responsible actions start with
individuals. As a leader, you
make the choice as to whether you wish to act in morally
acceptable ways or ignore these
mandates. Leadership activities, when combined with the
actions of others within and outside
the organization, build the types of organizations where you can

be proud to work, knowing
that the firm not only seeks to avoid hurting others but also
does its best to promote positive
actions regarding other human beings and the larger
environment.
8.4 Leadership and Organizational Politics
Organizational politics is the process of gaining and using
influence and power in ways out-
side the traditional organizational processes. One method for
understanding the nature of
politics involves consideration of organizational means and
ends. An end is a goal or objective.
Means are methods of reaching those goals and objectives.
Based on those two terms, organi-
zational politics involves seeking goals that are in a person or
group’s self-interests but are
not sanctioned or set by the organization and using means to
achieve a person or group’s self-
interests that are not organizationally approved (Mayes & Allen,
1977). Organizational poli-
tics take place on three levels: at the individual level, at the
coalition level, and at the level of
the organization as a whole. Figure 8.3 identifies political goals
at each of these three levels.
Figure 8.3: Organizational politics
Organizational politics take place when personal goals or ends
are sought using means or methods that
are not organizationally approved.
Goals or Ends Means or Methods
Operational level OrganizationallyApproved

Political levelPersonal orSelf-Interest
Not Organizationally
Approved
Organizationally
Approved
war82476_08_c08_243-284.indd 269 3/3/16 1:17 PM
Individual-Level Politics
Some individuals may be more likely to become engaged in
political activities on the job. Four
personal characteristics related to political engagements are:
• internal locus of control;
• high self-monitor;
• high need for power; and
• high Machiavellian personality.
A person with an internal locus of control believes that he or
she controls his or her personal
destiny (Rotter, 1966). Such an individual would be more
willing to engage in politics, know-
ing she or he is in control. High self-monitors are more
sensitive to social cues and exhibit
higher levels of social conformity. This talent would allow
effective engagement in politics
(Biberman, 1985). Needs for power clearly connect with
political activities, taking the form

of seeking to influence others. Machiavellianism is the degree
to which a person is willing to
manipulate the situation and other people to achieve personal
self-interest outcomes (Wil-
son, 1996). An individual exhibiting high Machiavellianism
would be more than willing to
seek unsanctioned ends and use unsanctioned means.
Individual Political Activities
How do individuals engage in politics? The first distinction to
be made is that between some-
one who wishes to avoid politics and a person who actively
engages in organizational politics,
also known as a player. Avoiding politics can be accomplished
through conformity, coopera-
tion, staying away from political situations and persons clearly
engaged in politics, and defer-
ring attention to others. Players, on the other hand, may use a
variety of common tactics,
including those displayed in Table 8.7.
Table 8.7: Individual political tactics
Tactic Description
Acclaiming Taking credit for the successes of others
Visibility Being seen with “all the right people”
Ingratiation Brown-nosing, flattery, sucking up
Exchange Trading favors
Coalitions Leading and gaining power from informal groups
Pressure Using demands, threats, intimidation

Upward appeal Enlisting the support of supervisor, upper
management
Empire building Keeping and controlling scarce information
Domination Forcing and winning conflict
Impression management Developing perceptions regarding
oneself
Situation engineering Altering the situation to achieve goals or
outcomes
war82476_08_c08_243-284.indd 270 3/3/16 1:17 PM
Impression management and situation engineering often receive
attention. Impression man-
agement is the process by which individuals attempt to control
perceptions by others (Leary
& Kowalski, 1990). Examples of impression management
include the attempt to create the
image of holding a higher level of personal status than is
actually the case. By “playing the
role,” a person can dress to impress, drive a luxury automobile,
and engage in extravagant
behaviors such as buying lunch for others at expensive
restaurants. A player decorates and
arranges his or her office in such a manner as to create the
impression he or she holds a
higher-status position. The furnishings place anyone who enters
in a diminished role by mak-

ing sure the individual cannot approach too closely (blocking
the path by use of a desk) and
having the individual sit at a lower level (raising one’s chair to
make sure it is higher than all
other chairs in the office). At times, organizational context
factors create a climate in which
employees believe they need to engage in impression
management, even when it is not a
personal desire. Impression management includes visibility
tactics, flattering those at higher
ranks (ingratiation), performing favors for key people, and
presenting the idea that you are a
competent individual on the way up (Schlenker, 1980; Gardner
& Martinko, 1988).
Closely related to impression management, situation
engineering involves the control of ele-
ments in a situation to create an advantage. For example, an
individual who wishes to curry
the favor of a top manager might find a way to make sure he or
she is seated next to that man-
ager at a banquet or luncheon. Others find ways to “bump into”
the right person in the hallway
or break room. Situation engineering can take the form of
making sure the boss sees you with
the right crowd or that you are always present when key
decisions are made.
Not all employees engage in political tactics. Some people
simply want to perform their jobs
and then go home for the day. Being a player can be viewed as a
high-risk/high-reward career
strategy. The risk comes from alienating others and creating
rivals. The rewards include faster
promotions, larger pay raises, and other rewards.

Coalition-Level Politics
As noted previously, coalitions of employees or coalitions of
groups of employees sharing the
same goals also engage in politics. Both groups of employees
also seek unsanctioned ends.
Coalitions can form in company departments on in other
collectives of employees. The tactics
used by coalitions include:
• alliances;
• embrace or demolish;
• divide and conquer;
• empire building; and
• growth.
Alliances form when powerful individuals within a coalition
work together to help the coali-
tion achieve its goals. Alliances also emerge from cooperation
with other coalitions or groups.
The embrace-or-demolish approach involves a coalition
informing the opposition or other
groups that those who do not join the cause will be dominated
in some way. Divide-and-
conquer strategies seek to cause the opposition to argue among
themselves and lose power
to the coalition as a result. Empire building occurs when a
coalition controls scarce informa-
tion, such as when a group in information technology seeks to
maintain tight control over the
war82476_08_c08_243-284.indd 271 3/3/16 1:17 PM

company’s computer system in order to retain power. Growth
tactics include adding mem-
bers to build the power of the coalition. Each of these tactics
can be deployed to seek the
unsanctioned ends noted in Table 8.7.
Organization-Level Politics
Research suggests that some organizational environments
become more conducive to politics
at the individual and coalition levels than others. Company
cultures that can be characterized
as exhibiting low levels of trust, high levels of role ambiguity,
unclear performance evaluation
systems, and high pressures for performance are likely to result
in greater degrees of politick-
ing (Ferris & Kacmar, 1992; Kacmar, Bozeman, Carlson, &
Anthony, 1999). Each of these cir-
cumstances creates uncertainty and a power vacuum in which a
politically minded employee
can take advantage.
Effects of Politics
Politics affect individuals and their organization. A politically
charged organization often
results in individuals reporting lower levels of job satisfaction.
Politics are distracting and
often cause conflict (Valle & Witt, 2001). Anxiety and stress
increase in workplaces where
politics are common because employees feel that they are
constantly “on guard” against the
actions of others. A high concentration of political events can
lead to reduced job performance
(Kacmar et al., 1999). Over time, workers may start to look for

new jobs when possible, creat-
ing a high degree of turnover.
Political activities by individuals and coalitions influence a
number of different areas, such as
the distribution of resources, task assignments, personnel
decisions, policymaking, and the
quality of the social environment. Politics affects the
distribution of resources in terms of pay
and pay raises for individual employees and budgets for
coalitions and departments. Task
assignments may be awarded to individuals and coalitions most
adept at convincing manage-
ment they are best suited, even when they are not. Politics also
affects hiring, firing, layoffs,
reassignments, transfers, and performance appraisals. At higher
levels in the organization,
politics can affect policymaking. Consequently, it should come
as no surprise that politically
active organizations may not offer the most pleasant social
environment. In general, manag-
ers should seek to limit political activities to whatever extent is
possible.
Leadership and Organizational Politics
While it plays some part in the life of all organizations,
organizational politics is usually pre-
sented in a bad light. It is typically viewed as maneuvering for
personal gain and self-interest,
often at the expense of others (Chang, Rosen, & Levy, 2009).
Research regarding organiza-
tional politics often points out the disadvantages. For example,
organizational politics is usu-
ally pursued by individuals who have tendencies toward being
self-serving, manipulative,

and interested in personal power (Porter, Allen, & Angle, 1981;
House, 1988; Christie & Geis,
1970). It is driven by behaviors that leaders should not be doing
rather than what they should
be doing. In other words, playing politics is often the result of a
lack of principled and effective
war82476_08_c08_243-284.indd 272 3/3/16 1:17 PM
leadership; a lack of vision, mission, and core values; a weak or
unhealthy organization cul-
ture; a lack of teamwork; and other lapses in leadership
(Pfeffer, 1993).
Consequently, while leaders should be honest, straightforward,
ethical, and nonpolitical in a
manipulative sense, they should be politically savvy in a good
sense. Leaders should be stu-
dents of the organizations they work in, and that includes being
aware of political dynamics
and protocol, who has power and who does not, who you need to
network with and build
relationships with, and how to things get done.
Political Awareness Skills for Leaders
Taking great pride in disengaging from any involvement in
organizational politics would not
be wise on the part of a leader. Leaders need to be politically
competent as part of their skill
set. This can be done without compromising one’s principles or
having to play political games.
Table 8.8 displays some of the skills that leaders can develop.

Table 8.8: Political awareness skills
Know the organization
Understand the culture
Know the players
Network and build relationships
Build credibility
Avoid political blunders
Throughout this book, leaders have been encouraged to be
students of the organization they
work in. They should learn as much as they can about the
vision, mission, core values, goals,
strategies, structure, products and services, policies, and
anything else that will enable them
to function wisely and knowledgeably. It other words, it pays to
know the organization.
In addition, by listening to others and asking informative
questions, leaders can learn a great
deal about the key players and their strengths and weaknesses
and how they operate. They
particularly need to know about the philosophies and practices
of the CEO, the members of
the executive team, and other leaders in the areas in which they
are functioning. At the top of
the priority list is to know as much as possible about one’s
immediate boss.
Effective leaders understand the organization’s culture.

Studying and asking questions about
the culture can provide valuable information about practices
that are acceptable and unac-
ceptable and about how things get done.
Quality leaders are able to network and build relationships.
What some would call playing
politics is just a smart behavior for a good leader. For example,
it is smart to network and get
to know key people in the organization and take the time to
build good relationships through-
out the organization. This can be very helpful in getting things
done personally and in paving
the way for a leader’s followers to get things done as well.
war82476_08_c08_243-284.indd 273 3/3/16 1:17 PM
Successful leaders seek to build credibility. Gaining credibility
comes from many things that a
leader can do. At the top of the list is performing at a high level
and building credibility as an effec-
tive leader. It is also important for a leader to always be
prepared and knowledgeable; to be a team
player; and to be known for being straightforward, trustworthy,
and loyal to the organization.
Finally, it is important to avoid political blunders. It is
particularly important for a leader to
be discerning. Do not go around your boss. In fact, do
everything possible to make your boss
look good. Be careful not to joke at the expense of others or do
things that make others look

bad, especially those you are accountable to. Gossiping about
other leaders or complaining
about the organization is likely to come back and bite you. The
point is that leaders need to be
authentic and free, but they also need to think before they act
and not cause political blunders
that may undermine their effectiveness.
Reducing Political Activities
Leaders can work to cut down on the amount of political
activity on the job. Methods used to
hold down the degree of political activities are provided in
Table 8.9. It is advisable that lead-
ers consider these in order to maintain a more positive
environment in the organization
(Maravalas, 2005; Management Study Guide, 2011).
Table 8.9: Reducing organizational politics
Do not hire or promote individuals who appear to be players
Encourage transparency in organizational decisions and
activities
Conduct frequent financial audits
Establish an open grievance system
Create methods for conflict resolution
Maintain a reward system based on merit
Maravalas, A (2005). How to reduce workplace conflict and
stress. Franklin Lakes, NJ: The Career Press.
Persons likely to engage in politics may make greater efforts at

ingratiation and impression
management during the interviewing process, dropping names
and taking credit for accom-
plishments of organizations that cannot be quickly verified.
Interviews of previous employers
may yield some of this information along with current
performance appraisals by supervi-
sors. Transparency is enhanced through open meetings with
recorded comments, rather than
behind-the-scenes actions of power brokers. Frequent financial
audits discourage dishonest
accounting practices.
Most management experts agree that reducing workplace
politics creates a better organi-
zational environment. Rewarding political activities achieves
the opposite effect. Therefore,
measures taken to control individual and coalition activities are
advised (Kennedy & Magjuka,
2002).
war82476_08_c08_243-284.indd 274 3/3/16 1:17 PM
Chapter Summary
Chapter Summary
What Successful Organizations Do
Organizational success criteria appears in three primary ways:
using strategic goals as a
guide, analyzing outcomes identified in academic management
literature, and deriving suc-
cess criteria from ideas generated in popular press outlets.

Leadership and Organizational Culture
Organizational culture is the predominant beliefs, values,
attitudes, behaviors, and practices
that are characteristic of a group of people. It contains both
visible and invisible features.
The dominant culture is the most pervasive in the organization
and expresses the core
values of the majority of members. Some have called it the
“personality” of an organization.
Subcultures evolve to express the problems, frustrations, or
unique experiences of certain
members within the larger, dominant culture.
Strong cultures are those in which the core values are intensely
held and widely shared
(Weiner, 1988). They have a significant influence on the
behaviors and practices of employ-
ees. The term “weak culture” is used to describe cultures where
the norms and practices are
confusing and inconsistent. High-performance cultures build
specific advantages for leaders
and their organizations. Effective leaders build, sustain, and
attempt to modify the compa-
ny’s culture as needed. To do so, they:
• make culture a high priority;
• role model desired behaviors;
• recruit and develop for culture;
• value, recognize, and reward desired behaviors and practices;
• use symbols, ceremonies, socialization, and stories to
reinforce culture;

• communicate;
• monitor culture and manage cultural change; and
• educate boards about the importance of culture.
Self-Reflection Questions
1. Describe how an individual can be politically successful and
a poor leader at the
same time.
2. Evaluate this statement: Politics are inevitable, so w e should
just put up with them.
3. If a person does not have the political awareness skills
described in this section, how
might that influence the person’s career? The organization’s
well-being? Explain
your answer.
war82476_08_c08_243-284.indd 275 3/3/16 1:17 PM
Key Terms
Leading an Effective Organizational Communication System
Communication systems include both formal and informal
channels. Organizational leaders
can choose from the chain, wheel, circle, or all-channel formats
to pass along and receive
messages. Information flows upward, downward, laterally, and
across organizational bound-
aries. Effective leaders understand and overcome the barriers to
formal communication.

They utilize informal communication to complement and
supplement the formal channel
while dealing with any false or damaging gossip that flows
through the channel.
Ethics and Social Responsibility
Ethics are the values and principles that govern a person’s or
group’s actions and that are
considered good or bad, right or wrong. Corporate social
responsibility is the obligation an
organization (profit-seeking or nonprofit) has to be ethical,
responsible, and responsive to
the needs of members in the organization as well as the larger
society. It includes eliminat-
ing negative work practices and emphasizing positive activities,
including efforts in the area
of sustainability.
Leadership and Organizational Politics
Organizational politics is the process of gaining and using
influence and power in ways out-
side the traditional organizational processes. It involves seeking
goals that are in a person
or group’s self-interests but are not sanctioned or set by the
organization and using means
to achieve a person or group’s self-interests that are not
organizationally approved. Politics
occur on the individual, coalition, and organization-wide levels.
Effective leaders seek to
build political skills by:
• knowing the organization;
• understanding the culture;
• knowing the players;

• networking and building relationships;
• building credibility; and
• avoiding political blunders.
They also seek to reduce the impact of negative political
activities.
Key Terms
corporate social responsibility (CSR) The
obligation an organization (profit-seeking or
nonprofit) has to be ethical, responsible, and
responsive to the needs of members in the
organization as well as the larger society.
culture The predominant beliefs, values,
attitudes, behaviors, and practices that are
characteristic of a group of people.
dominant culture The most pervasive in
the organization; expresses the core values
of the majority of members; the “personal-
ity” of an organization.
ethics The values and principles that gov-
ern a person’s or group’s actions and that
are considered good or bad, right or wrong.
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Leadership Applications and Tools

formal communication system System of
communication composed of every organi-
zationally approved channel.
informal communication The grapevine,
or communication that emerges through
social interactions among employees.
management information system
(MIS) The people and technologies used
to collect and process organizational
information.
multicultural communication Communi-
cation between people from different coun-
tries or nationalities.
organizational communication All of the
planned ways leaders use to communicate
with those in their area of influence.
organizational politics The process of
gaining and using influence and power in
ways outside the traditional organizational
processes.
player A person who actively engages in
organizational politics.
principles The moral rules, beliefs, and
ideas that a person lives by.
strong culture Culture in which the core
values are intensely held and widely shared
subculture A subset of culture that evolves

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