Ethical Relationship Between Leaders and their Teams

This blog explains the role of ethics in the leadership style of a top-level manager and its impact on the organisational effectiveness and culture. Ethics can be explained as moral principles that govern the behavior of an organisation.

 

Ethical foundation embodies basic morals that govern the internal relations in an organisation that concern fair standards of employment and relations with members, including the authorized team leaders (Mullins 2010: 705). It is vital part for a leader to function in this constantly changing environment to focus on ethics in his leadership styles. According to me, a leader is responsible for role modeling by visible ethical actions, rewarding his team members and maintaining discipline amongst the member in order to hold them together to follow the ethical code of conduct.

 

To be perceived as an ethical leader, he should possess both the qualities of an ethical person and an ethical manager. Being a moral person alone is not sufficient and similarly, being just a moral manager is not sufficient. The moral management only gains legitimacy when the group members feel that their manager is a caring and principled person in real life.

 

Ethical leadership also has a direct impact on organisation’s effectiveness. An ethical corporation that effectively integrates concerns of the community through its leaders is likely to improve economic and social performance (Berenbeim 2006). Ethical leaders also consider consequences of organisational decisions and regulations, and hence embed their principles in systems of employee evaluation.

 

Robert Zoellick, President of The World Bank Group is a remarkable example of an ethical leader. Under Zoellick’s leadership, the World Bank followed the ethical code of conduct and punished many firms and countries that engaged in corrupt behavior. This increased World Bank’s prominence as more organisations looked for support. These changes under his leadership inspired the members individually, and also had a positive impact on the organisation’s image and effectiveness. (ethisphere 2011)

 

I hereby conclude that value of ethics in a leader is an important part as it influences the team members and also the final prominence of an organisation in terms of its financial, social and cultural performance. Ethical leadership in practice also enhances the decision-making processes and interpersonal relationships in an organisation.

 

REFERENCES:

Berenbeim, R. (2006). Defining an organisation’s ethics brand, vital speeches of the day, 7, 501-504. [Accessed 25th March 13] EBSCO Host

Ethisphere website (2011) 2010’s 100 most influential people in business ethics [available at] http://ethisphere.com/2010s-100-most-influential-people-in-business-ethics/ [Accessed 29th March 13] 

Mullins, L. J. (2010), Management & Organisation Behaviour, 9th Edition, Prentice Hall

Rubin, R, Dierdoff, E, & Brown, M (2010) ‘Do Ethical Leaders Get Ahead? Exploring Ethical Leadership and Promotability’, Business Ethics quarterly [available], 20, 2, pp. 215-236

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Benefits of Studying leadership

This is a reflective report of my views on leadership and its importance. It also discusses a relation between leadership and management and the benefits of studying leadership.

 

“Managers are people who do things right, Leaders are people of do the right thing.” (Bennis & Nannus 1985: 21). According to Mills, leadership is the ability of a man to encourage and energize towards a particular goal (Mills 2005).

 

During my study in Coventry University London campus, I have realized the importance of studying leadership in accordance with the rapidly changing world. It allows a manager to apply theories and models for effective leadership and motivate his team members to be more productive. For example, Maslow’s hierarchy of needs or Herzberg’s two-factor theory can improve the potential in a manager to motivate his employees. The modules have also helped me grasp about which various people in the business world and also, various students at the campus use different leadership styles during a group work or presentation.

 

I got a chance to apply theoretical models of leadership into real practice when I participated in the Synergy Event as one of the Managing Directors. I followed Transformational Leadership style, having inspired by Sir Richard Branson’ revolution in entrepreneurship of being an enthusiastic and extremely charismatic leader. Transformational Leadership occurs when two or more people engage with others in a way the leaders and team members get a chance to complement each other with higher levels of motivation and morality (Bolden et al 2003). Maslow’s hierarchy of needs also helped me to seek a clear view of the things that could motivate my team members so that I can get the best results out of them.

 

The transformational leadership style allowed me to motivate my team members, and direct them towards my vision for our company. I always maintained my charisma as a leader by acknowledging the admiration of my followers. I even articulated a clear vision for the company and was successful in pursuing the team members to work for it. I was always optimistic about our success and this co-ordination amongst the team under my leadership led to the win over the Synergy Event by our team – Axis Of Ignorance.

 

The relation between management and leadership is that managers will understand the work environment better by studying leadership. The study of leadership also allows the manager to use his experiences of the past in making current decisions in variant situations. Leadership and Management go hand in hand and both skills are necessary for a person to have in order to take an organisation to heights.

 

My personal expectations from this module were to learn about different leadership theories and about different leaders of an industry. But it was all about personal development and taught us to apply those theories into practice. I learned that a leader must have good presentation skills, verbal and interpersonal communication skills. I personally possess all the qualities but they still need to be improved as per the feedback given by the tutor during the JC Penney case study presentation.

 

To conclude, I would like to say that this module has helped me realize that I currently am able to lead others but there is still a lot to improve like verbal and interpersonal communication. Constant feedback from the tutor and peers also was a crucial part of the module in order to identify the areas I was lacking in. It also emphasizes on the changing trends and changing organisational cultures and lets us learn about the adaptation process. Studying leadership is a must for any manager in the global business.

 

 

 

REFERENCES:

Bolden, R., Gosling, J., Dennison, P. (2003) ‘A review of leadership theory and competency frameworks’ [online] http://centres.exeter.ac.uk/cls/documents/mgmt._standards.pdf [29th March 2012]

Dennis, W. G. & Nanus, B. (1985) Leaders: The Strategies For Taking Charge, New York: Harper & Row

 

Mullins, L. J. (2010), Management & Organisation Behaviour, 9th Edition, Prentice Hall

Impact of CEO’s Charisma on Organisation’s working culture

This blog emphasizes on a CEO’s role in an organisation to steer innovation by making full use of his charisma, personality and firmness as a leader. It also enlightens whether CEOs are solely responsible for it or no.

 

The basic role of a Chief Executive Officer is to lead the development by taking the strategic decisions in order to create shareholder value (Sterling 2008). It is very important in an organisation for employees to follow CEO’s leadership decisions, hence the CEO must have a huge positive impact on its subordinates to earn their trust and increase their work results. Hence the CEO must have a charisma and charm with a clear vision so that the employees get inspired and gear themselves up to work even harder.

 

The industry I have chosen to analyse different leaderships is the Beverage Industry. One of the most successful and inspirational leader is Indra K. Nooyi, CEO of PepsiCo. She has developed a unique an adaptive approach to leadership to cope up with the changing environment. She leads the organisation by the motto “Leading with open eyes, ears and mind” (Nooyi 2003). The Open eyes factor is about anticipating and getting ready for the changing trends in the horizon. A great leader must have Open ears in order to listen to those who matter to company’s strategies and organisational culture. Also, leading with an Open mind focuses on acting upon things what you hear around, and that too in new ways. This can be termed as democratic leadership as it involves engagement of other employees and a chance is given them to share innovative ideas that are thoroughly heard by the CEO. (Nooyi, 2003)

 

Nooyi’s image of a powerful and caring woman and her adapting approach of leadership has created a charisma over her subordinates and inspired them to get the best results in terms of innovation and diversification. This has been proved by constant increase in revenue since the year Nooyi joined as the CEO.

 

Dietrich Mateschitz, the name behind one of the famous companies, “Red Bull” is another example of a great leader in the beverage industry. He introduces Red Bull as a new brand and took care of all the marketing techniques himself and taking it to the top level. He has a proven record of building teams with members of different cultures by training executives across 10 countries. This diversification gives him deep understanding of people and motivates people to empowerment of achieving goals. (Carrero 2012)

 

The success of Red Bull today is largely attributed to transformational leadership. He has set an example of perfect implementation of an innovation and created a charismatic personality that has inspired lots of young entrepreneurs. We can also call Dietrich as a Directive Leader as he controls most of the activities in Red Bull. Directive leadership is basically giving specific direction to only those subordinates who will follow rules and regulations. (Mullins 2010: 388)

From the above examples, we can conclude that both the leaders possess inspiring charisma, and are adaptable to change. Both have followed a different style of leadership, but both have been successful and met their objectives. I agree that the capability of a firm strongly relies on the personality of their Chief Executive Officer.

 

REFERENCES:

Carrero, A. (2012) Alberto Carrero’s summary – MD at Red Bull USA [available at] http://fi.linkedin.com/in/carrero [Accessed 24th March 13] 

Mullins, L. J. (2010), Management & Organisation Behaviour, 9th Edition, Prentice Hall. 

Nooyi, I. (2003) Female Leadership: Through the eyes if Indra Nooyi, The Alessandro Benetton Blog [available at] http://www.alessandrobenetton.com/female-leadership-through-the-eyes-of-indra-k-nooyi/ [Accessed 23rd March 13]

Sterling Resources (2008) Roles and Responsibilities of a CEO [available at] http://www.sterling-resources.com/docs/RolesAndRespCEO.pdf [Accessed 23rd March 13]

Theories and Models of Leadership and Management

There are many definitions of leadership, but in general it can be seen as a central feature to manage people effectively (Mullins 2005). Some models state that there are only born leaders, and on the contrary, some state that people have to work hard to attain qualities of a leader.

In this section, a critical analysis of John Adair’s Action centered leadership model is done. It consists of overlapping circles, namely Task needs, Team maintenance needs and Individual needs (Mullins 2010: 378).

The overlapping circles emphasize on the fact that they are interdependent and the leader must have all the three qualities in proportion. And failure in any one will affect the team members (Mullins 2010: 379).

Leader with any background, following any style of leadership can adopt Adair’s model, as it is easily practicable. For example, any leader who has adopted transformational leadership can apply this model to attain a balance between team and individual perspective of reforms and ensure that their tasks will bring the objected change in the organisation. The effectiveness of Adair’s model also depends on the style of leadership used. This model can also be used in any organisational culture.

The Adair’s model is also an integrated approach as he stated that a leader should follow functions like planning informing, evaluating etc. and should train according to the principles to be effective.

Critical analysis of this model shows that it cannot face the complexity of leadership. For instance, comparison of this model with the transformational approach shows that Adair’s model only enlightens the leader’s actions, but not the personality of the leader, which is an important part of leader’s ability to attain loyalty amongst employees. Secondly, the Adair’s model suits a formal environment but fails to consider the constantly changing climate. So, I would consider Adair’s model as a useful management tool instead of leadership as it does not focus on development in the leadership skills of an individual. It enhances the qualities of the leader in order to manage members from diverse cultures and working environments.

On the contrary, some situational theories were introduced with considering variable situations, cultures and organisations (Bolden et al, 2003). The Tannenbum & Schmidt’s leadership model elaborates the behavior of leaders into both, democratic and autocratic leadership styles. Autocratic leadership means that the leader will take decisions and expects the team members to follow him. Irrespective of the diverse cultures of the team members, leaders influence them to follow his directions in order to meet the objectives. This is in contrary to the statement provided. Persuasive leadership style is when leader makes the decision but believes that persuasion is needed for the team members to make them follow him. Another is Consultative leadership, in which decision is taken in the presence of the members but that decision is given less importance. Finally, Democratic Leadership is when the problem is laid before the team members and leader allows it to be solved by group discussions.

I would like to conclude by saying that different leadership theories and models fit suitable for different environments. Hence, it is important for a leader to be knowledgeable and trained in all aspects and should understand the team members thoroughly.

REFERENCES:

Adair, J. (1979) Action-Centred Leadership, Gower Press.

Bolden, R., Gosling, J., Marturann, A. and Dennison, O (2003) ‘A review of leadership theory and competency frameworks’ [available at] http://centres.exeter.ac.uk/cls/documents/mgmt_standard

Mullins, L. J. (2010), Management & Organisation Behaviour, 9th Edition, Prentice Hall.

Change and Resistance To Change

This post emphasizes on the impacts of change in any organisation. In this era of globalization, it is necessary to change the strategies and organisational culture of the company, when needed, in order to get the best results.

 

Mullins (2010: 753) defines change as a simple fact of life, and nothing new. He has also emphasized on the fact that it totally depends on the personality of each individual whether they thrive on new challenges to be faced, or they resist the change and would want to maintain their status quo. (Mullins 2010)

 

Organisational development, which is focused on improving visioning, learning and problem solving process and decision making processes is led by the top management to ensure that organisational objectives are met in this phase of rapidly changing economic climate. (Mullins 2010:737)

 

The causes for the change in organisational culture can be identified as globalization, political instability or vast developments in technology and innovations. The organisations can therefore attain competitive advantage over its competitors by adapting the change and new trends in order to produce and deliver products to satisfy the customer needs. Successful adaptation to change can allow an organisation to attain optimum operational performance, as there will be a sense of support and co-operation throughout that will motivate the employees to work efficiently.

 

The current economic climate is rapidly changing and organisations have to adopt it or else they will suffer the consequences. According to Hamlin et al. (2001: 13), organisations that can manage change effectively, consider change as the driving force that perpetuates their future success and growth.

 

In the case of JC Penney, presented by Purkayastha D, the company has very rigid and firm set of rules of a formal organisational culture. The employees could only address their colleagues with their last names and were not allowed to design their cubicles. Above all this, an Office Police was assigned by the HR department to check if the employees were adhering to them or not. (ICMR 2007)

 

Myron Ullman became the CEO of JC Penney in 2004 with a long-term aim to take the organisation to the industry leadership level. Therefore, he acted as the Change Agent and brought changes in the organisational culture by introducing programs like “Just call me Mike”, cabin decorations and replacing the posters with photos of employees in order to motivate them. (ICMR 2007)

 

A leader of the organisation is able to successfully implement change when he understands all the parameters of organisational culture amongst its employees. Handy’s framework was followed by Ullman to implement the change of working culture in JC Penney.

 

Ullman realized that JC Penney was following Power and Role cultures from the Handy’s framework so he followed the Task and Person culture to implement the change.

 

Power culture is the responsibilities of the top management to implement the decisions in the organisations (Handy .The Office Police and Formal settings, which included formal dressings and restriction on cubicle decorations, are evidences of the Power culture. On the other hand, restriction on employees to enter certain area in the company can be said as part of the Role culture.

 

Ullman decided to follow Task culture, in which he disbanded the Office Police, introduced the Winning Together Principle and offer training and development to the employees by which democracy in the company was increased. Secondly, Person culture was followed in the form of relaxation of dress codes, “Just call me Mike” campaign which shifted a light of importance on the employees.

 

Some resisted this drastic change in the company, as they did not trust Ullman’s implementation and they felt the deficiency of freedom, security and irregular economical implications. To overcome this resistance of change, a leader need to have clear understanding of employee’s behavior and attachments with work, in order to guide them, which Ullman did and sustained the change in JC Penney’s organisational culture.

REFERENCES

Hamlin, B., Keep, J. and Ash, K. (2001), Organisational Change And Development, FT Prentice Hall

 Handy, C.B. (1985) Understanding Organisations, 3rd Edition, Harmondsworth, Penguin Books

 Mullins, L. J. (2010), Management & Organisation Behaviour, 9th Edition, Prentice Hall.

 Purkayastha, D. (2007) Remaking What JC Penney’s Organisational Culture, ICMR Center For Management Research