6-1

1-2McGraw-Hill/Irwin copyright © 2009 by The McGraw-Hill Companies, inc. All Rights Reserved

Leadership and Values

“Leadership cannot just go along to get along… Leadership must meet the moral challenge of the day.”

~Jesse Jackson

Ch

apte

rC

hap

ter

6666

6-3

Introduction

• Personal values may be one of the most important determinants of how power is exercised or constrained.

• Mere possession of power leads to ethical questions about usage of power.

• The challenge of leadership becomes complex in a diverse and global environment.

6-4

Leadership and “Doing the Right Things”

• Leaders face dilemmas that require choices between competing sets of values and priorities.

• Leaders set a moral example that becomes the model for an entire group or organization.

• Leaders should internalize a strong set of ethics, principles of right conduct, or a system of moral values.

• Good leaders tend to align the values of their followers with those of the organization or movement.

6-5

Leadership and “Doing the Right Things” (continued)

• Four qualities of leadership that engenders trust:– Vision

– Empathy

– Consistency

– Integrity

• Two contrasting sets of assumptions people make about human nature:– Theory X

• Reflects that most people need extrinsic motivation.

– Theory Y• Reflects that most people are intrinsically

motivated.

6-6

What Are Values?

• Values: “Constructs representing generalized behaviors or states of affairs that are considered by the individual to be important.”– “beliefs of a person or social group in which they have an

emotional investment (either for or against something)” -WordReference.com English Dictionary

• They play a fairly central role in one’s overall psychological makeup.– They can affect behavior in a variety of

situations.• Individuals in the same work unit can have

considerably different values.• We can only make inferences about people’s

values based on their behavior.

6-7

Are there Generational Differences in Values?

• Pervasive influences of broad forces at a particular time tend to create common value systems.– This may contribute to misunderstandings and

tension between older leaders and younger followers.

• Each generation is molded by distinctive experiences at their critical developmental periods:– The Veterans (1922–1943)

– The Baby Boomers (1942–1960)

– The Gen Xers (1960–1980)

– The Nexters (1980–)

6-8

Recognized Generations

• Veterans: Generational group that came of age in the Great Depression and World War II—represent a wealth of lore and wisdom and have been the stabilizing force in organizations.

• Baby Boomers: Generational group of postwar babies that came of age in times of violent social protests, lifestyle experimentation, and pervasive questioning of establishment values; this group is beginning to gray, but they still have a lot of passion and commitment for work; they want to create a level playing field for all, but they hold too many meetings for GenXers.

• GenXers: Generational group who grew up during the Watergate scandal, energy crisis, higher divorce rates, MTV, and corporate downsizing; tend to be technologically savvy, independent, and skeptical of institutions and hierarchy; entrepreneurial and embrace change and are not much for job security—they are loyal to a vocation more than an organization; more likely than previous generations to seek balance in their lives.

• Nexters: Generational group that was born in 1980 or later (current college students) and making significant generalizations is risky this early in the generational development; however, they generally share an optimism based on how their parents raised them and they tend to doubt the wisdom of traditional racial and sexual categorizing.

6-9

Are there Generational Differences in Values? (continued)

• Research has also found that there is little evidence of a generation gap in basic values.

• Research has also identified certain recurring generational archetypes:

– Prophet generations - Born after a great war or other crisis when there is rejuvenated community life and consensus around a new societal order.

– Nomad generations - Born during a cultural renewal, when social idealism and spiritual agendas among the young foster a revolt against the established institutional order.

– Hero generations - Born after a spiritual awakening, leading to a time of individual pragmatism, self-reliance, laissez-faire, and national (or sectional or ethnic) chauvinism.

– Artist generations - Born during a great war or other crisis, when worldly dangers force a relatively simple focus on essentials, and public consensus and personal sacrifice prevail.

6-10

Moral Reasoning

• An important consideration is how one thinks about value-laden issues or ethical dilemmas.

• Moral reasoning: Process leaders use to make decisions about ethical and unethical behaviors.– Manner by which leaders solve moral problems.

• Value differences often result in different judgments regarding ethical and unethical behavior.

• Kohlberg offers that although the development of moral reasoning is invariant, not all individuals actually achieve the highest stages.

6-11

Kohlberg’s Moral Development Levels

• Moral reasoning refers to the process leaders use to make determinations about ethical and unethical behavior. – Pre-conventional level, is based on decision making

that is in the individual’s self-interest (i.e., avoiding punishment or receiving rewards).

– Conventional level, is characterized by decision making that gains others’ approval or is in line with expectations of common societal norms.

– Post-conventional level is characterized by decision making that is based on universal, abstract principles (i.e., decisions based on justice).

• Research points toward young adulthood (20-30) as a period of change for how people define what is morally right and wrong.

6-12

Developmental Levels and Stages of Moral Reasoning

6-13

How Values Impact Leadership

• Values are primary determinants in what data are reviewed and how leaders define problems.

• Values affect the solutions generated and the decisions made about problems.

• Values often influence a leader’s perceptions of individual and organizational successes and the manner in which they are achieved.

• Values help leaders choose right from wrong, and between ethical and unethical behavior.

6-14

How Values Impact Leadership (continued)

• Leaders tend to like followers with similar values and dislike those with dissimilar values.

• Leaders must surround themselves with followers who possess divergent values.

• Leaders are motivated to act in ways consistent with their values.– They typically spend most of their time

engaged in activities that are consistent with their values.

6-15

Key Work Values

6-16

Leadership Values Profile

VP or R&D

6-17

Leadership and Organizational Values

• Organizational values: Represent the principals by which employees are to get work done and treat other employees, customers, and vendors.

• Organizational culture is affected by top leadership’s collective values.

• Related to the notion of culture and climate is the employee “fit.”

• Values are often a key factor in conflict, especially when choices represent values in opposition.

• Leader must set a personal example of values-based leadership.

6-18

Leadership and Organizational Values (continued)

• Ethical behavior within (or by) an organization is not only the sum of collective moralities of its members. It is also the collective behavior of its Executives.

• Cove has developed and popularized an approach called principle-centered leadership.

• Unique roles of each level of interdependency:– Personal – To be trustworthy person on both character and person.– Interpersonal – Relationship that lacks trust, leads to self protective

efforts to control and verify each other’s behavior.– Managerial – Only in context of trust will managers risk empowering

style, leading others to their full potential given leadership skills are present.

– Organizational – Will be most successful when structure and systems are aligned.

6-19

Positive Forms of Leadership

• Authentic leadership: Grounded on “to thine own self be true.”

• It has gained momentum because of these beliefs:– Enhancing self-awareness.

– Promoting transparency and openness.

– Fostering more inclusive structures and practices.

• Servant leadership: Leader’s role is to serve others.– Subject to criticism for its tendency to suggest

that serving others is an end in itself.

6-20

When Good People Do Bad Things

• Ways people with firm moral principles may behave badly without feeling guilt or remorse:– Moral justification

– Euphemistic labeling

– Advantageous comparison

– Displacement of responsibility

– Diffusion of responsibility

– Disregard or distortion of consequences

– Dehumanization

– Attribution of blame

• Darley offers that ethical problems are almost inherent in systems that measure performance.

6-21

What is Culture?

• Culture: Those learned behaviors characterizing the total way of life of members within any given society.

• The most salient aspect of any culture typically involves behavior.

• Distinctive actions, mannerisms, and gestures characteristic of a culture.

• Business leaders must become aware and respectful of cultural differences and cultural perspectives.

6-22

A Framework for Understanding Cultural Differences

• Seven fundamental dilemmas that people of all cultures face:– Source of Identity: Individual – Collective– Goals and Means of Achievement: Tough –

Tender– Orientation to Authority: Equal – Unequal– Response to Ambiguity: Dynamic – Stable– Means of Knowledge Acquisition: Active –

Reflective– Perspective on Time: Scarce – Plentiful– Outlook on Life: Doing – Being

6-23

Leader Attributes and Behaviors Universally Viewed as Positive and Negative

6-24

Examples of Leader Behaviors and Attributes That Are Culturally Contingent

6-25

Implications of Leadership Practitioners

• Leaders should expect to face a variety of challenges to their own system of ethics, values, or attitudes.

• Interacting with individuals and groups holding divergent and conflicting values is inevitable.

• Leaders particularly have a responsibility not to let their personal values interfere with professional leader-subordinate relationships.

6-26

Summary

• Values are constructs that represent general sets of behavior or states of affairs that individuals consider to be important.

• They are a central part of a leader’s psychological makeup.

• They impact leadership through cultural contexts.– Various attributes and behaviors are regarded

either positively or negatively.