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Chapter 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization

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Title: Chapter 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization


1
Chapter 11 Strategic Leadership Creating a
Learning Organizationand an Ethical Organization
2
Linkages
  • Scanning, monitoring, analyzing external
    environment
  • Formulated your strategy(ies) to fit internal and
    external strengths/opportunities,
    weakness/threats
  • To carryout (implement)
  • Control
  • Structure/Design
  • Leadership/Learning/Ethics

3
Slide Overview
  • Three Key Leadership Activities
  • Elements of Effective Leadership
  • Emotional Intelligence
  • Learning Organization
  • Ethical Organization

4
I. Leadership Three Interdependent Activities
  • Leadership
  • process of transforming organizations from what
    they are to what the leader would have them
    become
  • Leadership should be
  • Proactive
  • Goal-oriented
  • Focused on the creation and implementation of a
    creative vision

11-4
5
Three Interdependent Activities of Leadership
11-5
6
Setting a Direction
  • Scan environment to develop
  • Knowledge of all stakeholders
  • Knowledge of salient environmental trends and
    events
  • Integrate that knowledge into a vision of what
    the organization could become

11-6
7
Setting a Direction
  • Required capacities
  • Solve increasingly complex problems
  • Be proactive in approach
  • Develop viable strategic options

11-7
8
Designing the Organization
  • Designing the organization
  • A strategic leadership activity of building
    structures, teams, systems, and organizational
    processes that facilitate the implementation of
    the leaders vision and strategies.

11-8
9
Designing the Organization
  • Difficulties in implementing the leaders vision
    and strategies
  • Lack of understanding of responsibility and
    accountability among managers
  • Reward systems that do not motivate individuals
    and groups toward desired organizational goals
  • Inadequate or inappropriate budgeting and control
    systems
  • Insufficient mechanisms to coordinate and
    integrate activities across the organization

11-9
10
Nurturing an Excellent and Ethical Culture
  • Excellent and ethical organizational culture
  • an organizational culture focused on core
    competencies and high ethical standards

11-10
11
II. Elements of Effective Leadership
  • Integrative Thinking
  • Overcoming Barriers to Change
  • The Effective Use of Power

12
1. Integrative Thinking
  • Integrative thinking
  • the process by which people reconcile opposing
    thoughts to identify creative solutions that
    provide them with more options and new
    alternatives

11-12
13
Integrative Thinking The Process of Thinking and
Deciding
11-13
14
2. Overcoming Barriers to Change
  • Reasons why organizations are prone to inertia
    and slow to change
  • Vested interests in the status quo
  • Systemic barriers
  • Behavioral barriers
  • Political barriers
  • Personal time constraints

11-14
15
Resistance to Change
16
Tactics for Introducing Change
  • Communication Education
  • Employee Involvement
  • Negotiation
  • Coercion
  • Top Management Support

17
3. The Effective Use of Power
  • Power
  • a leaders ability to get things done in a way he
    or she wants them to be done.
  • Organizational bases of power
  • A formal management position that is the basis of
    a leaders power.

11-17
18
A Leaders Bases of Power
11-18
19
III. Emotional intelligence
  • Emotional intelligence (EI)
  • an individuals capacity for recognizing his own
    emotions and those of others,
  • including the five components of self awareness,
    self regulation, motivation, empathy, and social
    skills.

11-19
20
11-20
21
Emotions
  • 7 Universal Emotions
  • Happy/Joy
  • Surprise
  • Contempt
  • Sadness
  • Fear
  • Disgust
  • Anger

http//www.humintell.com/2010/06/the-seven-basic-e
motions-do-you-know-them/
22
Emotional Intelligence Some Potential Drawbacks
and Cautionary Notes
  • Effective Leaders
  • ? Have Empathy for Others
  • ? Overidentify with others (Cannot make Tough
    Decisions)
  • ? Are Astute Judges of People
  • ? Judgmental and overly critical, Dismiss other
    peoples insights
  • ? Are Passionate about What They Do, and They
    Show It
  • ? Close minded to other possibilities
  • ? Create Personal Connections with Their People
  • ? Too micromanaging

Manipulative, selfish, and dishonest ?
23
IV. Learning Organization
24
Inspiring and Motivating People with a Mission or
Purpose
  • Successful learning organizations
  • Create a proactive, creative approach to the
    unknown
  • Actively solicit the involvement of employees at
    all levels
  • Enable all employees to use their intelligence
    and apply their imagination

11-24
25
Inspiring and Motivating People with a Mission or
Purpose
  • A Learning environment involves
  • Organization-wide commitment to change
  • An action orientation
  • Applicable tools and methods
  • Guiding philosophy
  • Inspired and motivated people with a purpose

11-25
26
Empowering Employees at All Levels
  • Top-down perspective
  • Start at the top.
  • Clarify the organizations mission, vision, and
    values.
  • Clearly specify the tasks, roles, and rewards for
    employees.
  • Delegate responsibility.
  • Hold people accountable for results.

11-26
27
Empowering Employees at All Levels
  • Bottom-up View
  • Start at the bottom by understanding needs of
    employees
  • Teach employees skills of self-management
  • Build teams to encourage cooperative behavior
  • Encourage intelligent risk taking
  • Trust people to perform

11-27
28
Accumulating and Sharing Internal knowledge
  • Open book management
  • Numbers on each employees work performance and
    production costs are generated daily
  • Information is aggregated once a week from top
    level to bottom level
  • Extensive training in how to use and interpret
    the numbers

11-28
29
Gathering and Integrating External Information
  • Internet accelerates the speed with which useful
    information can be located
  • Employees can use garden variety traditional
    sources to acquire external information
  • Benchmarking
  • Focus directly on customers for information

11-29
30
Challenging the Status Quo and Enabling Creativity
  • Create a sense of urgency
  • Establish a culture of dissent
  • Foster a culture that encourages risk taking
  • Cultivate culture of experimentation and curiosity

11-30
31
Best Practices Learning from Failures
11-31
32
V. Creating an Ethical Organization
  • Organizational ethics
  • the values, attitudes, and behavioral patterns
    that define an organizations operating culture
    and that determine what an organization holds as
    acceptable behavior.

11-32
33
Creating An Ethical Organization
  • Ethical orientation
  • the practices that firms use to promote an
    ethical business culture,
  • Includes ethical role models, corporate credos
    and codes of conduct, ethically-based reward and
    evaluation systems, and consistently enforced
    ethical policies and procedures.
  • Organizational ethics is a direct reflection of
    its leadership

11-33
34
Creating An Ethical Organization
  • Ethical values
  • Shape the search for opportunities
  • Shape the design organizational systems
  • Shape the decision-making process used by
    individuals and groups
  • Provide a common frame of reference that serves
    as a unifying force

11-34
35
Integrity-Based versus Compliance-Based Approaches
  • Essential links between organizational integrity
    and individual integrity
  • Cannot be high-integrity organizations without
    high-integrity individuals
  • Individual integrity is rarely self-sustaining
  • Organizational integrity, rests on a concept of
    Purpose, Responsibility, Ideals
  • As important responsibility of leadership is to
    create this ethical framework and develop the
    organizational capabilities to make it
    operational

36
Integrity-Based versus Compliance-Based Approaches
  • Compliance-based ethics programs
  • programs for building ethical organizations that
    have the goal of preventing, detecting, and
    punishing legal violations.

11-36
37
Integrity-Based versus Compliance-Based Approaches
  • Integrity-based ethics programs
  • programs for building ethical organizations that
    combine a concern for law with an emphasis on
    managerial responsibility for ethical behavior

11-37
38
Integrity-based Ethics Programs
  • Integrity-based Ethics Programs include
  • enabling ethical conduct
  • examining the organizations and members core
    guiding values, thoughts, and actions and
  • defining the responsibilities and aspirations
    that constitute an organizations ethical compass.

11-38
39
Approaches to Ethics Management
Characteristics Compliance-Based Approach Integrity-Based Approach
Ethics Conformity with externally imposed standards Self-governance according to chosen standards
Objective Prevent criminal misconduct Enable responsible conduct
Leadership Lawyer-driven Management-driven with aid of lawyers, HR, and others
Methods Education, reduced discretion, auditing and controls, penalties Education, leadership, accountability, organizational systems and decision processes, auditing and controls, penalties
Behavioral Assumptions Autonomous beings guided by material self-interest Social beings guided by material self-interest, values, ideals, peers
11-39
40
Key Elements of Highly Ethical Organizations
  • Role models
  • Corporate credos and codes of conduct
  • Reward and evaluation systems
  • Policies and procedures

11-40
41
Role Models
  • Leaders are role models for their organizations
  • Leaders must be consistent in their words and
    deeds
  • Values and character of leaders become
    transparent to an organizations employees
  • Effective leaders take responsibility for ethical
    lapses within the organization

42
Corporate Credos and Codes of Conduct
  • Provide a statement and guidelines for norms,
    beliefs and decision making
  • Provide employees with clear understanding of the
    organizations position regarding employee
    behavior
  • Provide the basis for employees to refuse to
    commit unethical acts
  • Contents of credos and codes of conduct must be
    known to employees

43
Codes of Conduct
  • UTSA
  • http//utsa.edu/infoguide/appendices/b.html
  • http//www.utsa.edu/about/leadership/
  • Starbucks
  • http//www.starbucks.com/about-us/company-informat
    ion/business-ethics-and-compliance

44
Reward and Evaluation Systems
  • Inappropriate reward systems may cause
    individuals at all levels of the organization to
    commit unethical acts that they might not
    otherwise do
  • Penalties in terms of damage to reputations,
    human capital erosion, and financial loss are
    typically much higher than any gains that could
    be obtained through such unethical behavior

45
Policies and Procedures
  • Should specify proper relationships with a firms
    customers and suppliers
  • Should guide employees to behavior ethically
  • Policies and procedures must be reinforced
  • Effective communication
  • Enforcement
  • Monitoring
  • Sound corporate governance practices

46
The Goolsby Leadership Model
Source Quick, J. C., Macik-Frey, M., Cooper,
C.L. 2007. Journal of Management Studies, 44(2)
195.
11-46
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