WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER?

JOURNAL ARTICLE GROUP PRESENTATION :

Human Capital Management

Prepared by:

Alireza Khosroyar

WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER? AN EXAMINATION OF ANTECEDENTS AND CONSEQUENCES OF

ETHICAL LEADERSHIP

By David M. Mayer, Karl Aquino, Rebecca L. Greenbaum, Maribeth Kuenzi

CSGB 6101 - Human Capital Management

ETHICAL LEADERSHIP

PRESENTATION OUTLINE

• Introduction & Theoretical Background

• Research Findings

• Practical Managerial Implications

• Case Study : Ethical Leadership in Microsoft


ETHICAL LEADERSHIP

INTRODUCTION & THEORETICAL BACKGROUND Prior research : Effect of “Leadership” on follower behavior This research : Effect of “Ethical Leadership” ( new )

New Conceptualization of Ethical Leadership (Brown et al., 2005)

3 key building blocks of Ethical Leadership

Moral person

Moral manager

• Why Ethical Leadership matters

• Who engages in Ethical Leadership

• Whether Ethical Leadership represents a distinct aspect of leadership not captured by other leadership constructs

INTRODUCTION & THEORETICAL BACKGROUND

Related Leadership Constructs

Idealized influence

Interpersonal Justice

Informational Justice

Ethical Leadership

Antecedents Consequences( unit-level outcome )

Moral IdentityUnethical Behavior

Relationship Conflict

Leadership Construct

Research Theoretical Constructs

INTRODUCTION & THEORETICAL BACKGROUND

• Moral Identity Influences Moral Behavior

Antecedents

Hypothesis 1a. : Leader moral identity symbolization is positively related to ethical leadership

Hypothesis 1b. : Leader moral identity internalization is positively related to ethical leadership

Moral Identity


ETHICAL LEADERSHIP

THEORETICAL BACKGROUND Social Learning Theory

THEORETICAL BACKGROUND

• Unethical Behavior- Ethical leader influence their employees to engage in desired behavior.- Group norms for acceptable behavior are formed.

Unit-Level Outcomes

Hypothesis 2 : Ethical Leadership is negatively related to unit unethical behavior

• Relationship Conflict- More willing to allow coworkers to express their opinions.

- Employees demonstrate Respect and consideration for coworkers’

needs.

Hypothesis 3 : Ethical Leadership is negatively related to unit relationship conflict


ETHICAL LEADERSHIP

Theoretical Background

• Ethical Leadership as a partial mediator

• Is there any possibility of the existence of other mechanisms

that could also explain this relationship.

Unit-Level Outcomes

Hypothesis 4 : Ethical Leadership partially mediates the relationship between leader moral identity and unit unethical behavior and unit relationship confilict.


ETHICAL LEADERSHIP

CONCEPTUAL FRAMEWORK

Antecedents

IndependentVariables

Consequences( unit-level outcome )

DependentVariables

Leadership Construct

Mediator

Leader Moral Identity

Symbolization


Internalization

Ethical Leadership

Unit Unethical Behavior

Unit Relationship

Conflict

H1a

H1b

H2

H3

H4 H4


ETHICAL LEADERSHIP

RESEARCH FINDINGS


Symbolization


Internalization

Ethical Leadership

Unit Unethical Behavior

Unit Relationship

Conflict

H1a

H1b

H2

H3

H1a,H1b: Leader moral identity are positively related to ethical leadership

H2, H3: Ethical Leadership is negatively related to unit unethical behavior and unit relationship conflict

H4: Negative direct relationship between Leader Moral Identity Internalization and unit outcomes

BUT no relashionship between Leader Moral Identity Symbolization and unit outcomes.


ETHICAL LEADERSHIP

Ethical Leadership

HowRewards and Punishments

Effects↓ Unethical Behaviours

↓ Relationship Conflicts

PRACTICAL MANAGERIAL IMPLICATIONS


ETHICAL LEADERSHIP

Utilize H.R practices

How

Selection Methods: Assessing managerial candidates' integrity and moral development

Effects ↑ Level of Ethical Leadership



ETHICAL LEADERSHIP

Ethics Training

HowEducating about behaviours in ethical leaders

Effects Employees get consistent norms for appropriate behaviours


ONLY a subset of unethical behaviours are examined!


ETHICAL LEADERSHIP

Activating moral identies

HowUse CUES. e.g. Posters, slogans, material symbols which able to construct moral and concern salient.

EffectsIncreasing level of awareness of appropriate behaviours



ETHICAL LEADERSHIP

Being Good to feel Good

HowTo be motivated to uphold moral

identities.

Effects Demonstrations of Ehtical Leadership

Counter-intuitive Effects:Resist competing pressure



ETHICAL LEADERSHIP

Selecting leaders WHO committed to MORAL GOALS

HowMoral identity is central to their self-definition.

EffectsEmployees learn as they demonstrate ethical behaviours



ETHICAL LEADERSHIP

What is required for effective ethical leadership?

• What you do• what you say• Systems• culture


ETHICAL LEADERSHIP

The most critical factor in creating ethical organizations

• (1) Ethical leadership, • (2) Ethical practices,• (3) Ethical climate.

Ethical aspects of Bill Gates leadership

“Humanity’s greatest advances are not in its discoveries, but in how those discoveries are applied to reduce

inequity.” – Bill Gates.


ETHICAL LEADERSHIP

Bill Gates Leadership Who is He?• Predominate and

manipulative leader


ETHICAL LEADERSHIP

closer to his employees

inspirational motivation

intellectual stimulation

built a culture of the best and brightest

created culture of innovation, learning and improvement over time

high level of commitment by the people involved

taking care of employees

empowering workers by giving them all the information about what’s going on

Ethical aspects of Bill Gates leadership


ETHICAL LEADERSHIP

Unethical aspects of

Bill Gates leadership

• Microsoft is in a practically monopolistic position

• to hide this unethical policy


ETHICAL LEADERSHIP

Awards and Honors


ETHICAL LEADERSHIP

Conclusion

• http://www.youtube.com/watch?v=UhxINyIZ454&feature=share

Business

WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER?