1 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization Professor John Coy 2 Learning Objectives After reading this chapter, you should have a good understanding of: The three key activities in which all successful leaders must be continually engaged. The importance of recognizing the interdependence of the three key leadership activities, and the salience of power in overcoming resistance to change. The crucial role of emotional intelligence (EI) in successful leadership as well as its potential drawbacks. The value of creating and maintaining a “learning organization” in today’s global marketplace. 3 Learning Objectives After reading this chapter, you should have a good understanding of: The five central elements of a “learning organization.” The leader’s role in establishing an ethical organization. The benefits of developing an ethical organization. The high financial and nonfinancial costs associated with ethical crises. 4 Leadership: Three Interdependent Activities 5 Leadership: Three Interdependent Activities 6 Setting a Direction Scan environment to develop 7 Example DuPont’s vision statement is “to be the world's most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere.” Source: 8 Designing the Organization 9 Nurturing a Culture In nurturing a culture dedicated to excellence and ethical behavior, managers and top executives must Accept personal responsibility for developing and strengthening ethical behavior Consistently demonstrate that such behavior is central to the vision and mission Develop and reinforce Role models Corporate credos Codes of conduct Reward and evaluation systems Policies and procedures 10 Overcoming Barriers to Change and the Effective Use of Power 11 A Leader’s Bases of Power 12 Emotional Intelligence: A Key Leadership Trait 13 Emotional Intelligence 14 Five Components of Emotional Intelligence at Work 15 Five Components of Emotional Intelligence at Work 16 Five Components of Emotional Intelligence at Work 17 Developing a Learning Organization 18 Key Elements of a Learning Organization 19 Key Elements of a Learning Organization 20 Question Do you agree with this statement by Ken Melrose, “the great leader is a great servant”? The role of a manager should be to create an environment where your employees can flourish and reach their full potential. The old view of a manager was to simply control resources and power within an organization. 21 Key Elements of a Learning Organization 22 Key Elements of a Learning Organization 23 Key Elements of a Learning Organization 24 Creating An Ethical Organization 25 Example In order to avoid unethical business practices, you should never do the following: Suppress information that might damage your reputation. Deny charges that are relevant and factual. Spend money for public relations or advertising to counter honest complaints. Ignore problems with the products you sell. Refuse to accept blame. Source: Gerson, Vicki. “Avoiding Unethical Business Practices,” February 21, 2003. 26 Creating An Ethical Organization 27 Integrity-Based versus Compliance-Based Approaches to Organizational Ethics 28 Question Integrity-based ethics programs combines a concern for law with an ______. A) emphasis on the proper use of managerial power B) emphasis on legal consequences of unethical behavior C) emphasis on managerial responsibility for ethical behavior D) emphasis on social responsibility for ethical behavior Answer: C 29 Approaches to Ethics Management 30 Approaches to Ethics Management 31 Key Elements of Highly Ethical Organizations 32 Key Elements of Highly Ethical Organizations 33 Key Elements of Highly Ethical Organizations 34 Key Elements of Highly Ethical Organizations 35 Key Elements of Highly Ethical Organizations 36 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization Professor John Coy |