Chapter 2

Leadership Traits and Ethics

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Understand personality profiles Understand reasons why executives

careers can be derailed Describe the Big Five Model of Personality

and the traits of effective leaders Describe Achievement Motivation Theory Understand Leader Motive Profile Theory Understand how a leader’s attitudes can

influence followers

Learning Objectives

Learning Objectives Understand the difference between Theory

X and Theory Y Describe the Pygmalion Effect Understand how self-concept influences a

leader’s attitude about him/her self Describe how one can develop a more

positive attitude and self-concept Define ethics and the importance of

leadership ethics

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Learning Objectives Describe the three pillars of an ethical

organization Understand factors affecting ethical

behavior Describe how people justify unethical

behavior Understand the guide to ethical behavior Understand the stakeholder approach to

ethics

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Learning Objectives Define corporate social responsibility Describe the process of evaluating social

responsibility by using a corporate social audit and the four primary areas examined during a corporate social audit

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Traits Are distinguishing personal

characteristics Personality

Is a combination of traits that classifies an individual’s behavior

Personality Traits and Leadership

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Personality Profiles Identify individual stronger and weaker

traits Are used to ensure a proper match

between the worker and the job Are also used to categorize people as a

means of predicting job success Leadership and neuroscience

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Why Executives Are Derailed

Used a bullying style viewed as intimidating, insensitive, and abrasive

Were viewed as being cold, aloof, and arrogant Betrayed personal trust Were self-centered and viewed as overly

ambitious and thinking of the next job Had specific performance problems with the

business Overmanaged and were unable to delegate or

build a team

The Big Five Including Traits of Effective Leaders

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The Big Five Model The Big Five Model of Personalityof Personality

Leadership Traits Leadership Traits within the Big Fivewithin the Big Five

Surgency a. Dominanceb. Extraversionc. Energy/Determination

Agreeableness d. Sociability/Sensitivitye. Emotional intelligence

Adjustment f. Emotional Stability g. Self-confidence

Conscientiousness h. Dependabilityi. Integrity

Openness j. Flexibilityk. Intelligencel. Locus of control

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Achievement Motivation Theory attempts to explain and predict behavior and performance based on a person’s need for achievement, power, and affiliation Need for achievement Need for power

Personalized Socialized Institutional

Need for affiliation

The Personality Profile of Effective Leaders

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Leader Motive Profile Theory attempts to explain and predict leadership success based on a person’s need for achievement

The Personality Profile of Effective Leaders

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Leadership Attitudes Theory X and Theory Y Pygmalion effect Self-concept

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Realize that there are few, if any, benefits to negative, pessimistic attitudes about others and yourself

Consciously try to have and maintain a positive, optimistic attitude

Cultivate optimism Stop complaining Avoid negative people Set and achieve goals

Developing a More Positive Attitude and Self-Concept

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Focus on success and don’t dwell on failure

Be realistic when comparing yourself to others

Don’t belittle your accomplishments and accept compliments

Be a positive role model When you’re feeling down, help others

who are worse off than you

Developing a More Positive Attitude and Self-Concept

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Are the standards of right and wrong that influence behavior

Ethics

Three Pillars of an Ethical Organization

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Factors Affecting Ethical Behavior

A leader’s ethical behavior is related to: Personality traits and attitudes Moral development The situation

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Preconventional Self-interest motivates behavior to meet one’s

own needs to gain rewards while following rules to avoid punishment

Conventional Living up to expectations of acceptable

behavior defined by others motivates behavior to fulfill duties and obligations

Postconventional Based on universal principles of right and

wrong, regardless of the leader or group’s expectations

Levels of Moral Development

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People are more likely to act unethically: In highly competitive situations In unsupervised situations When there is no formal ethics policy When unethical behavior is not punished or is

rewarded

The Situation and Ethics

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Moral justification Displacement of responsibility Diffusion of responsibility Advantageous comparison Disregard or distortion of consequences Attribution of blame Euphemistic labeling

How People Justify Unethical Behavior

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Golden Rule“Do unto others as you want them to do unto you.”

Four-Way Test Is it the truth? If it fair to all concerned? Will it build goodwill and better friendship? Will it be beneficial to all concerned?

A Guide to Ethical Behavior

Stakeholder Approach to Ethics

Creates a win-win situation for relevant parties affected by the decision

Internal stakeholders External stakeholders

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Ethics and Social Responsibility

Corporate Social Responsibility A leader’s duty to take actions that will

benefit the interests of society as well as the organization

Evaluating Social Responsibility

Corporate Social Audit A systematic analysis of the effect that

an organization is having on its stakeholders and society as a whole

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Corporate Social Responsibility

Four primary areas covered by social audits:Assessing the organization’s economic

responsibility – is it profitable? Is it meeting all its legal

responsibilities? Are its ethical responsibilities being

met? Is it contributing to the broader

community?25