This document provides an overview of the content covered in Week 2 of the MGT380: Leadership for Organizations course. The week examines leadership traits and ethical leadership. Students will compare and contrast transformational and transactional leadership theories, evaluate the importance of ethical leadership, and identify characteristics of well-known world leaders. Readings from An Introduction to Leadership are assigned, as is a required video. The document further outlines leadership traits and theories, including charismatic, transactional, and transformational leadership. It also discusses personal and business ethics, and the classical and behavioral models for ethical decision making.

1. MGT380: Leadership
for Organizations
Week 2

2. MGT380: LEADERSHIP
FOR ORGANIZATIONS
MGT380: Leadership
for Organizations
Week 2

3. WEEK TWO OVERVIEW
Week 2 of the course examines leadership traits and ethical
leadership. Obviously both of these concepts are important to
leadership and although we won’t cover everything, we will cover
the basics.
MGT380: Leadership
for Organizations
Week 2

4. WEEK TWO LEARNING
OBJECTIVES
• Compare and contrast the concepts of
transformational and transactional
leadership.
• Evaluate the characteristics and importance of
ethical leadership.
• Identify important characteristics of well-
known world leaders.
MGT380: Leadership
for Organizations
Week 2

5. READINGS, REQUIRED
ARTICLE, AND WEBSITE
Readings
Read the following chapter in An Introduction to Leadership:
1. Chapter 2: Ethical Leadership
2. Chapter 5: Transactional and Transformational Leadership
3. Chapter 6: Charismatic Leadership
Required Multimedia
Forbes. (2011, October 5). What you can learn from Steve Jobs [Video file].
Retrieved from https://www.youtube.com/watch?v=rtT9N9L_4-w
MGT380: Leadership
for Organizations
Week 2

6. LEADERSHIP TRAITS

7. THREE TYPES OF LEADERSHIP
THEORIES
• We will examine three types of leadership
theories this week:
• Charismatic
• Transactional
• Transformational

8. CHARISMATIC LEADERSHIP
Charismatic leaders are the type of leaders that employees are typically
drawn to due to their energy and their focus. Charismatic leaders
communicate clearly and usually gain quick acceptance from their
employees.
Other traits of charismatic leaders include:
• Goal oriented
• Persistent
• Results oriented
• Take ownership and responsibility

9. EXAMPLES OF
CHARISMATIC LEADERS
• Winston Churchill,
• Martin Luther King Jr.,
• Mahatma Gandhi,
• Mother Teresa,
• Margaret Thatcher

10. TRANSACTIONAL
LEADERSHIP
Transactional leaders like to maintain the status quo. The are
also action oriented but it is focused much more on keeping
the system moving as opposed to newly developed goals.
Employees who enjoy order and hierarchy might enjoy these
type of leaders.
Other traits of transactional leaders include:
• Values employee reward system
• Reactionary
• Focuses on the good of the group
• Discourages individual thinking

11. EXAMPLES OF
TRANSACTIONAL LEADERS
• Dwight Eisenhower
• George W. Bush
• Norman Schwarzkopf
Source:
http://www.adviseamerica.com/fa
mous-transactional-leaders/

12. TRANSFORMATIONAL
LEADERSHIP
Transformational leaders value innovation and tend to motivate
employees by focusing on their application of skills based on the
organization’s goals. Transformational leaders are flexible and are willing
to adapt to emergent situations. They seek to inspire and love new ideas.
Other traits of transformational leaders include:
• Lead based on their vision
• Proactive
• Constantly in tune with the organization’s principles
• Discourages individual thinking

13. EXAMPLES OF
TRANSFORMATIONAL LEADERS
• Warren Buffet
• Nelson Mandela
Source:
http://www.inc.com/paul-
schoemaker/what-made-mandela-
a-transformational-leader.html/

14. FOUR ESSENTIAL TRAITS OF
LEADERSHIP
Forbes. (2015, May 04). How To Be A Leader. Retrieved December 22, 2016, from
https://www.youtube.com/watch?v=Rbz0BWeIEyU

15. ETHICAL LEADERSHIP
•Chapter 5: Transactional and Transformational Leadership
•Chapter 6: Charismatic Leadership

16. PERSONAL AND BUSINESS
ETHICS
A major aspect of Corporate Social Responsibility is
Corporate Ethics, however, two factors impact this area,
Personal Ethics and Business Ethics.

17. PERSONAL ETHICS
Personal ethics are rooted in our ability to determine what’s right and
what’s wrong. This context (right vs. wrong) determines our moral
compass (morals).
There is no way that an individual can separate their morals and
personal ethics from their work. In your readings this week, you’ll hear
about two things, a moral problem and a moral dilemma.
Both of these concepts cause potential issues in the workplace.
In the workplace we are often asked to do things that we don’t exactly
agree with and that can cause a moral dilemma or a moral
problem.

18. BUSINESS ETHICS
Business ethics are influenced by the environment,
opportunities and goals of the business.
Personal ethics must fit into the business, but the
business’ ethics do not have to reflect the ethics of the
individuals that function within the business environment.

19. BUSINESS ETHICS (CONTINUED)
Unlike personal ethics, business ethics often leaves out the aspect of people out of it
unless the decision is related to cost.
Typically businesses will take a utilitarian perspective when it comes to the
people. In other words, the goal is not to make a large number of people angry
enough that they disrupt the system.
Businesses will make ethical decisions typically based on two models. The leaders
will either use the classical model or the behavioral model to decide when it
comes to ethical problems or ethical dilemmas.
The classical model is used when the leaders have enough information to make a
sound decision.
The behavioral model accounts for the unknown as the leader must use self-
confidence to guide the process, model behavior and gather enough information
and make an informed decision.

20. MODELS: CLASSIC VS. BEHAVIORAL
• The classical model can help businesses predict what the reaction (or
behavior) of the people will be once the decision is implemented. There is
more organizational control with the classical model so the leaders can craft a
decision and identify more control points along the way.
• The behavioral model on the other hand provides limited insight and
forces the organizational leaders to address the potential issues as they come
up.

21. CHOOSING THE RIGHT
MODEL
The unfortunate thing about businesses and these models
is that sometimes leaders use the classical model when
they should be using the behavioral model.
Inexperienced leaders and leadership teams sometimes
make a decision thinking they have sufficient information
to implement a new process and ultimately the attempt to
do so causes more ethical issues than before the process or
change is even implemented.

22. WEEK 2 QUIZ
• Ensure that you complete your Week 2 you Quiz by Day 7.

23. STILL HAVE QUESTIONS
ON ACADEMIC WRITING
OR APA FORMATTING?
https://awc.ashford.edu/Index.html

24. ANY
QUESTIONS?
Please post your
questions in the Ask
the Instructor thread
or e-mail your
instructor directly.