Chapter 2 Leadership Traits and Ethics 1

2  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

 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 3

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 4

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 5

6  Traits Are distinguishing personal characteristics  Personality Is a combination of traits that classifies an individual’s behavior Personality Traits and Leadership

7 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

8 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 9 The Big Five Model of Personality Leadership Traits within the Big Five Surgencya.Dominance b.Extraversion c.Energy/Determination Agreeablenessd.Sociability/Sensitivity e.Emotional intelligence Adjustmentf.Emotional Stability g.Self-confidence Conscientiousnessh.Dependability i.Integrity Opennessj.Flexibility k.Intelligence l.Locus of control

10  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

11  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

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

13  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

14  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

15  Are the standards of right and wrong that influence behavior Ethics

Three Pillars of an Ethical Organization 16

Factors Affecting Ethical Behavior  A leader’s ethical behavior is related to: Personality traits and attitudes Moral development The situation 17

18  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

19  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

20  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

21  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 22

23 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 24

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