Leadership Ethics - Business & Finance
Assignment 4: Leadership Ethics:
Summary:
(Please note that the name is fictitious, and it is not intended to target a specific student)
William is a leadership student at Trinity Western University. He was helping a couple of his classmates with their assignments. It didn’t take long before he realized that he can make some money while doing this. William started charging $10 per page. Then the demand for his services increases. He was busy enough that he increased it to $15 per page, then $20 per page. This business of ghostwriting was doing so well he boasts to his friends about what he is doing. Many students that are struggling with the stresses of life are using William’s new business to alleviate the pressure.
1) Define the dilemma of the situation and describe how you would respond to William if you were his friend. Should his professor respond to him? How should the university respond to him?
2) Use Kohlber’s six-stages of moral development to describe William’s ethical perspective (Northouse, 2019).
3) Use the Ethical Theories section and table 13.2 in Northouse (2019, p. 339-341) to describe William’s conduct and character.
4) How would you apply the Dark Side of Leadership to this scenario? (Northouse, 2019, p. 344-346)
5) How would you apply the Principles of Ethical Leadership to this scenario? (Northouse, 2019, p. 346-352)
6) Your friend Jane is struggling with her assignments; would you recommend William’s service to her? Why or Why not?
600 Words (PLEASE DO NOT WRITE MORE THAN 700 WORDS!!!)
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Transformational Leadership
Chapter 8
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Overview
Transformational Leadership (TL) Perspective
A Model of Transformational Leadership
Transformational Leadership Factors
Full Range of Leadership Model
The Additive Effects of TL
Other Transformational Leadership Perspectives
How Does the Transformational Approach Work?
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Transformational Leadership
Description
Process--TL is a process that changes and transforms individuals, both leaders and followers.
Influence--TL involves an exceptional form of influence that moves followers to accomplish more than what is usually expected.
Core elements--TL is concerned with emotions, values, ethics, standards, and long-term goals.
Encompassing approach--TL describes a wide range of leadership influence where followers and leaders are bound together in the transformation process.
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Types of Leadership Defined (Burns, 1978)
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TRANSACTIONAL
Focuses on the
exchanges
that occur
between leaders
and their followers
TRANSFORMATIONAL
Process of
engaging with others
to create a connection that increases
motivation and morality in both the leader and the follower
Focuses on the
leader’s
own interests rather than the interests of his or her followers
PSEUDO-TRANSFORMATIONAL
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Types of Leadership Defined
(Burns, 1978)
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TRANSACTIONAL
Focuses on the
exchanges
that occur
between leaders
and their followers
No new taxes = votes
Turn in assignments = grade
Surpass goals = promotion
The exchange dimension is so common that you can observe it at all walks of life.
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Transactional Leadership Story
My story of transactional leadership:
Key points:
Power imbalance
Exchange of good/services
Attempt at mutual benefit
“You scratch my back, I’ll scratch yours”
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Breakout Room
Break-Out Room Agenda:
Introduce yourself
Each person tell a story of a transactional leadership situation
What were the currencies being exchanged in each transaction?
Work? Promotions? Time? Financial Benefit? Etc.
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Types of Leadership Defined
(Burns, 1978)
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Leaders who are
transforming but in a negative way
self-consumed, exploitive; power- oriented, with warped moral values
Includes leaders like
Adolph Hitler
Saddam Hussein
PSEUDOTRANSFORMATIONAL
Focuses on the
leader’s
own interests rather than the interests of his or her followers
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Pseudotransformational
(Christie, Barling, & Turner, 2011)
Four experimental studies => model of pseudotransformational leadership
Self-serving
Unwilling to encourage independent thought in followers
Exhibits little general caring for others
Uses inspiration and appeal to manipulate followers for his or her own ends
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Northouse, Leadership 8e. © SAGE Publications, 2019.
Types of Leadership Defined Burns (1978)
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TRANSFORMATIONAL
Process of
engaging with others
to create a connection
that increases
motivation
and morality in both the
leader and the follower
Leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential.
Mohandas Gandhi raised the hopes and demands of millions of his people and in the process was changed himself.
Ryan White raised people’s awareness about AIDS.
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Transformational Leadership and Charisma
Definition
Charisma--A special personality characteristic that gives a person superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader (Weber, 1947).
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Charismatic Leadership Theory (House, 1976)
Charismatic leaders act in unique ways that have specific charismatic effects on their followers.
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Theory of Charismatic Leadership
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(House, 1976)
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Table 8.1: Personality Characteristics, Behaviors, and Effects on Followers of Charismatic Leadership
Theory of Charismatic Leadership
(Shamir, House, & Arthur, 1993)
Later Studies
Charismatic Leadership:
Transforms follower’s self-concepts; tries to link identity of followers to collective identity of the organization
Forge this link by emphasizing intrinsic rewards and de-emphasizing extrinsic rewards
Throughout process, leaders
express high expectations for followers
help followers gain sense of self-confidence and self-efficacy
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Model of Transformational Leadership (Bass, 1985)
Expanded and refined version of work done by Burns and House. It included
More attention to followers’ rather than leader’s needs
Suggested TL could apply to outcomes that were not positive
Described transactional and transformational leadership as a continuum
Extended House’s work by
Giving more attention to emotional elements and origins of charisma
Suggested charisma is a necessary but not sufficient condition for TL
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Model of Transformational Leadership
TL motivates followers beyond the expected by
raising consciousness about the value and importance of specific and idealized goals
transcending self-interest for the good of the team or organization
addressing higher level needs
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Figure 8.1: Leadership Continuum From Transformational to Laissez-Faire Leadership
Transformational Leadership Factors
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Northouse, Leadership 8e. © SAGE Publications, 2019.
Transformational Leadership Transactional Leadership Laissez-Faire Leadership
Factor 1
Idealized influence
Charisma Factor 5
Contingent reward
Constructive transactions Factor 7
Laissez-faire
Non-transactional
Factor 2
Inspirational motivation
Factor 3
Intellectual stimulation Factor 6
Management by exception
Active and passive
Corrective transactions
Factor 4
Individual consideration
Table 8.2 Leadership Factors.
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Table 8.2: Leadership Factors
Full Range of Leadership Model
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Figure 8.2: Full Range of Leadership Model with Legend
Full Range of Leadership Model
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Northouse, Leadership 8e. © SAGE Publications, 2019.
Pseudo-transformational Leadership
4 I’s
Idealized influence (II-A and II-B)
Inspirational motivation
Intellectual stimulation
Individual consideration
Transactional Leadership
Effective
Ineffective
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Figure 8.2: Full Range of Leadership Model with Legend
Transformational Leadership
Management-by-exception Passive
Laissez-faire Leadership
Contingent Reward
Management-by-exception Active
Transformational Leadership Factors: The 4 Is
Idealized Influence
Acting as strong role models
High standards of moral and ethical conduct
Making others want to follow the leader’s vision
Inspirational Motivation
Communicating high expectations
Inspiring followers to commitment and engagement in shared vision
Using symbols and emotional appeals to focus group members to achieve more than self-interest
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Northouse, Leadership 8e. © SAGE Publications, 2019.
Transformational Leadership Factors: The 4 Is
Intellectual Stimulation
Stimulating followers to be creative and innovative
Challenging their own beliefs and valuing those of leader and organization
Supporting followers to
Try new approaches
Develop innovative ways of dealing with organization issues
Individualized Consideration
Listening carefully to the needs of followers
Acting as coaches to assist followers in becoming fully actualized
Helping followers grow through personal challenges
For example, showing optimism helps employees become more engaged in their work (Tims et al., 2011)
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Northouse, Leadership 8e. © SAGE Publications, 2019.
Transformational Leadership Story
My story of Transformational Leadership
Key Points to think about during the story:
Idealized Influence
Inspirational Motivation
Intellectual Stimulation
Individual Consideration
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The Additive Effect of Transformational Leadership
Augments impact on employee’s performance and company profit (Rowald & Heinitz, 2007)
Positively related to job satisfaction and performance (Nemanich & Keller, 2007)
Boosts employee engagement and optimism (Tims, et. al., 2011)
TL leaders more likely to promote employee’s achieving their mastery goals (Hamstra, et.al.,2014)
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Northouse, Leadership 8e. © SAGE Publications, 2019.
Transactional Leadership Factors
Contingent Reward
The exchange process between leaders and followers in which effort by followers is exchanged for specified rewards
For example, how much TV a child can watch after practicing piano.
Management-by-Exception
Leadership that involves corrective criticism, negative feedback, and negative reinforcement
Two forms
Active--Watches follower closely to identify mistakes/rule violations
Passive--Intervenes only after standards have not been met or problems have arisen
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Nonleadership Factor
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Laissez-Faire
The Absence of Leadership
A hands-off, let-things-ride approach
Refers to a leader who
abdicates responsibility,
delays decisions,
gives no feedback, and
makes little effort to help followers satisfy their needs.
May also be a strategic choice by leader to acknowledge subordinates’ abilities
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Individualized Consideration
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Figure 8.3: The Additive Effect of Transformational Leadership
Bennis and Nanus (1985)
Four Leader Strategies in Transforming Organizations
Clear vision of organization’s future state
TL’s social architect of organization
Create trust by making their position known and standing by it
Creatively deploy themselves through positive self-regard
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Kouzes and Pozner (1987, 2002)
Model consists of five fundamental practices
Model the Way
Inspire a Shared Vision
Challenge the Process
Enable Others to Act
Encourage the Heart
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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How Does the Transformational Leadership Approach Work?
Focus of Transformational Leadership
Strengths
Criticisms
Application
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Transformational Leadership
Focus of Transformational
Leaders
TLs empower and nurture followers
TLs stimulate change by becoming strong role models for followers
TLs commonly create a vision
TLs require leaders to become social architects
TLs build trust and foster collaboration
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Overall Scope
Describes how leaders can initiate, develop, and carry out significant changes in organizations
Northouse, Leadership 8e. © SAGE Publications, 2019.
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Strengths
Broadly researched. TL has been widely researched, including a large body of qualitative research centering on prominent leaders and CEOs in major firms.
Intuitive appeal. People are attracted to TL because it makes sense to them.
Process focused. TL treats leadership as a process occurring between followers and leaders.
Expansive leadership view. TL provides a broader view of leadership that augments other leadership models. Contributes to leader’s growth.
Emphasizes followers. TL emphasizes followers’ needs, values, and morals.
Effectiveness. Evidence supports that TL is an effective form of leadership.
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Criticisms
Lacks conceptual clarity
Dimensions are not clearly delimited
Parameters of TL overlap with similar conceptualizations of leadership
Unclear whether dimensions are simply descriptions of TL
Measurement questioned
Validity of MLQ not fully established
Some transformational factors are not unique solely to the transformational model
TL treats leadership more as a personality trait or predisposition than a behavior that can be taught
No causal link shown between transformational leaders and changes in followers or organizations
TL is elitist and antidemocratic
Suffers from heroic leadership bias
Has the potential to be abused
May not be well-received by millennials
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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Application
Provides a general way of thinking about leadership that stresses ideals, inspiration, innovations, and individual concerns
Can be taught to individuals at all levels of the organization
Able to positively impact a firm’s performance
May be used as a tool in recruitment, selection, promotion, and training development
Can be used to improve team development, decision-making groups, quality initiatives, and reorganizations
The MLQ and Sosik and Jung (2010) guide help leaders to target areas of leadership improvement
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Northouse, Leadership 8e. © SAGE Publications, 2019.
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