1ETHICAL DECISION IN RELATIONSHIP Executive summary In this challenging world, the ethical decision-making in leadership is very complicated and can be overwhelming in almost every business. It explores the impact of decision-making in the organizational leadership that has influenced on the growth and success of an organization. The purpose of this report is focused on comprehending the important factors that is influencing the leadership decision-making in the global organizations. It elaborates the discussion of all the above and include related literature for indentifying the pattern of definition in this analysis. The resultsthatemergedatlastsymbolizedthatthereisanurgentneedforchangesand improvementsinthedecision-makingprocessamongtheorganizationexecutivesby accommodating globalization, technology, policy, diversity, and the leadership effectiveness. Lastly, few recommendations have been made that could be implemented in order to improve the same.
2ETHICAL DECISION IN RELATIONSHIP
3ETHICAL DECISION IN RELATIONSHIP
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4ETHICAL DECISION IN RELATIONSHIP Table of Contents Introduction......................................................................................................................................4 Literature Review............................................................................................................................5 1. Concept of ethical leadership...................................................................................................5 2. Ethical leadership and decision making in organization.........................................................6 3. Outcomes of ethical leadership................................................................................................7 Analysis.........................................................................................................................................10 Habits of a strong ethical leader and understanding ethical decision-making and the role of leadership...................................................................................................................................10 Recommendations..........................................................................................................................11 Summary and conclusion...............................................................................................................12 References:....................................................................................................................................14
5ETHICAL DECISION IN RELATIONSHIP Introduction Leaderships can be defined as the authority to direct and guide the rest others towards achievement of a certain goal (Ledlow & Stephens, 2017). It determines the situation, personality and need of a leader’s organization’s culture. A leader’s job is to create a desired future for an organization (Northouse, 2015). He provides a draft for a company’s corporate ethics and cultures. He examines the part of organizational learning potentialities in an effort to inspect the relation between the spaces that prevails regarding the exploring factors that includes the fate of the company. Leadership styles has a great impact on the organizational behavior, which includes an employee’s traction of organizational culture, norms and values. The practice of an effective strategic leadership can help the business leaders increase the performance by competing with unpredictable and unstable environments(Cameron et al., 2014). The job of a leader is to make a desired future for the firm. The two most important aspects of an ethical leadership are character and ethical behavior. They should participate in determining strategic direction. Leaders serve as the role models in an organization. They have a significant effect on the work culture and the patterns of behavior. Human beings are social animals (Burr, 2015) and they copy many of their behavior prompts from the people who are in positions of authority. They have great influence on their team and their behavior is highly observed by the other team members. Ethics are considered as the heart of leadership (Ciulla, 2014). The term ethics is a system of moral principles that governs the appropriate conduct for a person or group. Hence, moral development is also equally important. It is foundation of well-developed leader. A good
6ETHICAL DECISION IN RELATIONSHIP leader follows a decision-making process (Pettigrew, 2014) and an ethical decision-making deals with moral issues (Shaw & Barry, 2015). This report will elaborate on the role of ethical decision in leadership and it will further analyze the ethical decision making process and will give few recommendations in order to implement them for a more effective leadership. Literature Review This literature review consists of three main sections, namely: (1) Concept of ethical leadership (2)Ethical leadership and decision making in organization, and (3) outcomes of ethical leadership. 1.The concept of an ethical leadership The subject of ethical decision-making and ethical leadership is however, been taken in account by the scholars but an illustrative research on the ethical decision-making in leadership is comparatively new. The earlier primary investigations were more focused on defining the terms ethical leadership from an illustrative point of view and they were directed by Kaucher in the year 2013. His research has revealed that two dimensions, namely moral manager and moral person, best describe the ethical leaders. The moral dimensions refer to the different qualities that ethical leaders possess (Kaucher, 2013). A person who has strong moral is truthful and trustworthy. He demonstrates a feeling of worry for the people and is observed as approachable. The employees feel free to come to such person with their problems, as they know that their problems will be taken into account. A moral person has a stature of being principled and fair and he is seen as continually moral in both professional and personal life. Whereas the moral managers extent refer to the way an effective leader makes use of tools of a leadership for encouraging the ethical conduct in a workplace. Ethics are made salient by modeling the ethical
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7ETHICAL DECISION IN RELATIONSHIP conduct by the leader to his employees (Ogunfowora, 2014). A manager considers himself as the role model in his workplace. He sets and communicates ethical standards for is employees and use rewards as well as punishments in order to make sure that those standards are followed. Hence, it is said that a leader who is a moral manager, "walk the talk" and "talk the walk," shaping his behavior and the organizational procedures in order to meet the moral standards. Kaucher argued that the individuals who are in power have to be both moral manager and moral person so that they could be observed as an ethical leader by others. He says that a strong moral manager who is a weak moral person is usually seen as hypocrite who fails to practice what he preaches. Conversely, intense moral people who are ineffective moral manager are observed as ethical impartial leaders who are organized as being dumb on the ethical issues and it shows their ineffectiveness in the workplace. 2. Ethical leadership and decision making in organization In the 3rdedition of ‘Ethical Leadership and Decision Making in Organization’, Shapiro and his colleague, Stefkovich addressed the increasing interest in the field of ethics and has assisted the educational leaders with the different complex dilemmas prevailing in this modern diverse and challenging business society. Through the discussion and the actual moral dilemmas existing in real life that a leader has to take an account in his organization, Shapiro and Stefkovich demonstrated the implementation of the four ethical model or paradigms and they are the ethics of care, justice, profession and critique. They have illustrated how these multiple ethical paradigm can be applied to the real dilemmas. Furthermore, they have presented a series of different cases that are written by the managers and the leaders in the field of representing the dilemmas that are faced by tier practice in leadership in their workplaces. They ground their concept of ethical leadership in the Social Learning Theory. The theory suggested that the
8ETHICAL DECISION IN RELATIONSHIP individuals could learn the quality of proper behavior by seeing and their role model. The ethical leaders are the role models as they occupy visible and strong position in organizational hierarchies that allow them to gain their admirer’s attention (Shapiro & Stefkovich, 2016). The research further elaborated on the construction and given a ceremonial definition of an ethical leadership. 3. Outcomes of an ethical leadership Scholars and researchers have widely used social exchange theory for explaining the impact of an ethical leadership and its outcomes. The Principles of Reciprocity of Social Exchange Theory, an individual feel beholden to return to the beneficial behaviors attimes when he believe that the other person is fair to him. In line with the reasoning, theresearchers and scholars argue that employees sometimes feel grateful to the ethical leaders for their fair and trustworthy nature and hence, they tends to return with the advantageous work behaviorand abstain themselves from getting engaged in destructive behavior. Subsequent research has identifiedthatethicalleadershipsaredirectlyrelatedtothefolloweroutcomes,like organizational commitment, employee’s willingness to do a work, voice behavior, employee’s job satisfaction and their perceptions to organizational culture as well as ethical climate. Ethical leadership increases the their perceptions of job attributes, such as task significance and autonomy. An ethical leader has higher potential for the furtherance to the position of senior management, principally in the contexts where there is a great pressure of performance. Earlier researchers has concluded that the high-pressure contexts positively linked to all the unethical behaviors. In addition to that, an ethical leadership gives a strong message that a person is
9ETHICAL DECISION IN RELATIONSHIP worthy for all the loads and pressures of the senior management since he is able to maintain a good performance in such pressure. Furthermore, various scholars have explored that there are ethical extents of different styles of the leadership. The transformational and charismatic leaders are considered ethical leaders who shapes and model ethical conduct, engaging in ethically positive modes of influence, operating at higher level of moral reasoning and transforming their followers into moral leaders. The transformational and charismatic leadership have been studied considerably, and the cumulative findings suggests that the transformational and charismatic leadership are associated with important ethics-related outcomes like follower's perceptions of trust in fairness of their leader and an organizational citizenship behaviors. In addition, such type of leadership is contritely related to the outcomes like employee aggression. A reliable and genuine leadership is also related to the transformational leadership and it splits its strong importance on the dimension of ethics of the leadership. Ethical Decision Making In business world, people make their decisions in a different way than they do at home. The organizational pressures have a very strong impact in the decision-making process in business. An ethical decision-making process involves individual factors, ethical issue intensity and various organizational factors as well (Ford & Richardson, 2013). The ethical issue intensity demonstrates the ethical sensitivity of an individual or an organization or a work group and activates the ethical-decision making process. The individuals are subjected to the six spheres of impact. They are- family, religion, legal system, workplace, community and profession. The
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10ETHICAL DECISION IN RELATIONSHIP moral intensity is however, related to an individual’s thinking of social pressure and the bad consequences of his decision will affect others. The ethical decisions of people are based on their ethical decisions on their principles of right and wrong and on their own values. Their values are gained through socialization and are very subjective. They vary from culture to culture. A good personal value has the potential to decrease the unethical behavior by increase the positive work behavior. There are times when the organization may intend to encourage and do right but the various social and the organizational forces may alter their intention. Many researchers have identified the various factors that effects the ethical behavior includes gender, nationality, age and work experience. These factors have a direct effect on the decision-making process as well. The framework for the decision-making process does not explain how to make the ethical decision. However, it highlights the various factors that are related to the decision making. According to the framework, the individual factors, ethical issue intensity, opportunities and organizational factors, all are interlinked as the business ethics evaluation and intensions and are thus correlated to the ethical or unethical behavior. The manager with an external locus of control goes with the flow, as he does not have any other option available. He does not have any other option. However, there is still a debatable relationship in between the locus of control and the ethical decision-making process. The organizational factors include corporate culture and the obedience of the authority (Tian & Peterson, 2016). They have a higher impact on the employees than that of the individual values. The corporate culture is a set of norms, artifacts and values that the members of an organization shares. It includes ethical culture that reflects whether the organization has an ethical conscience and is a function of many cultures. The obedience of authority helps to explain the reason behind why the employees are so unquestioningly following the superior’s
11ETHICAL DECISION IN RELATIONSHIP orders. Opportunities are conditions in a firm that permits or limits the ethical and unethical behaviors. An individual, who has expertise information about the competition, has a chance to exploit his wisdom and knowledge in various sectors. However, knowledge may sometimes lead to unethical behavior. It is impossible to examine whether an ethical decision making in business is right or is it wrong. A mere understanding of the ways ethical decisions are established, cannot solve ethical issues. The business ethics includes collective arguments and value judgments regarding the acceptable patterns of behavior. The ethical decision-making in corporate sector or business does not depend on the personal values or morals because an organization takes on culture of its own and the informal relationships enforce an ethical culture. Analysis Habits of a strong ethical leader and understanding ethical decision-making and the role of leadership An ethical leader is the role model for an entire organization and he is based on holistic thinking (Waddock, 2014). He has the following habits: 1.He is proactive (Chiaburu et al. 2014). 2.He has a passion to do right. 3.He has a strong personal character. 4.He considers the stakeholder’s interests (Doh & Quigley, 2014). 5.He is transparent and he actively involves in the organizational decision-making.
12ETHICAL DECISION IN RELATIONSHIP Ethical issue intensity, the individual factors and the opportunities results in business ethics evaluation and decisions. The ethical culture of an organization is framed by its effective leadership (Chhokar, Brodebeck & House, 2013). Hence, a top-level support is needed for an ethical behavior in business. An ethical business culture requires proper oversight and shared values. Recommendations 1.It is important for the leaders to be highly educated, especially in the field of technology, ethical standards and cultural diversity in order to help them understand the best model that they can pursue in their decision-making process. 2.Communication is the most important skill that results in a successful business (Bovee, Thill & Raina, 2016). Hence, the establishment of proper approach and the ways of improving communication must include an appropriate channel for all communications,mutualrespectandtrust,effectivelylistening,promotionof dialogue and group consensus. 3.The leaders must be aware of the diverse nature and culture of the employees. 4.The leaders should know the decisions that are to make and they should keep the interests of every stakeholders that are involved. 5.Be clear with the words, as the intended meaning may sometimes be misinterpreted. 6.Effective ethical modeling requires more than visibility and power (Turner, Fischer & Luiselli, 2016). For a social learning of the ethical behaviors, the role models or the leaders should be reliable regarding moral behaviors. Hence, by considering people honestly, and equitably, the leaders become more able of imitating by the others. Or else, the followers might disregard the leaders who fail to communicate with the
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13ETHICAL DECISION IN RELATIONSHIP followers in a tendering and caring style. His behavior must not be erratic or changeable with his ethical preaching. 7.They must make sure that their followers are of the fact that their leader is able to acknowledge when they are wrong and that he has the ability to guide them with better solutions to move forward. 8.The leaders must be analytical, confident, and they must plan ahead, listen and seek correct information. 9.The leaders must cultivate in a meaningful relationship in the business. 10.There is a high need of further research on this subject “Ethical Decision in Leadership”. Summary and conclusion Therefore, it can be concluded from the above analysis, that the process of leadership decision making is one among the most challenging, positive and an happening concept in each company. In modern society, the organizational leadership, growth, effective management, decision-making, and the prosperity of an organization are dependent on the standard of the decisions that the decision makers and the leaders make. This study was rapt on recognizing the various factors that influence the triumph in decision-making process among the firm’s leaders and the managers in organizational practices. It identified the impact of decision making in the leadershipandthosemanagementactivities,whichinfluencethecreativity,effectiveness, success and goal in the current firms. The report has indicated the significance and the need of understanding how the leaders could arrive at their goals in the leadership decision-making process. Although there are ample of researches on ethical leadership and it is still growing but there s still much to know about ethical decision making in leadership and about its outcomes.
14ETHICAL DECISION IN RELATIONSHIP However, in sum, it could be said that decision-making is an happening process and there is a requirement for further research on ethical decision in leadership. Hence, the leadership ability in order to recognize the factors influencing its business’s decision-making process is very important and is an important key to understand the decisions that are to be made for the development of the firm.
15ETHICAL DECISION IN RELATIONSHIP References: Bovee, C. L., Thill, J. V., & Raina, R. L. (2016).Business communication today. Pearson Education India. Burr, V. (2015).Social constructionism. Routledge. Cameron, K. S., Quinn, R. E., DeGraff, J., & Thakor, A. V. (2014).Competing values leadership. Edward Elgar Publishing. Chhokar, J. S., Brodbeck, F. C., & House, R. J. (Eds.). (2013).Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge. Chiaburu, D. S., Smith, T. A., Wang, J., & Zimmerman, R. D. (2014). Relative importance of leader influences for subordinates’ proactive behaviors, prosocial behaviors, and task performance.Journal of Personnel Psychology. Ciulla, J. B. (Ed.). (2014).Ethics, the heart of leadership. ABC-CLIO. Doh, J. P., & Quigley, N. R. (2014). Responsible leadership and stakeholder management: Influencepathwaysandorganizationaloutcomes.TheAcademyofManagement Perspectives,28(3), 255-274. Ford, R. C., & Richardson, W. D. (2013). Ethical decision making: A review of the empirical literature. InCitation classics from the Journal of Business Ethics(pp. 19-44). Springer Netherlands.
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16ETHICAL DECISION IN RELATIONSHIP Kaucher, E. (2013).Ethical decision making and effective leadership. Alliant International University, San Diego. Ledlow, G. J. R., & Stephens, J. H. (2017).Leadership for health professionals. Jones & Bartlett Learning. Northouse, P. G. (2015).Leadership: Theory and practice. Sage publications. Ogunfowora, B. (2014). It’s all a matter of consensus: Leader role modeling strength as a moderator of thelinksbetween ethical leadership and employee outcomes.human relations,67(12), 1467-1490. Pettigrew, A. M. (2014).The politics of organizational decision-making. Routledge. Shapiro,J.P.,&Stefkovich,J.A.(2016).Ethicalleadershipanddecisionmakingin organisation: Applying theoretical perspectives to complex dilemmas. Routledge. Shaw, W. H., & Barry, V. (2015).Moral issues in business. Cengage Learning. Tian, Q., & Peterson, D. K. (2016). The effects of ethical pressure and power distance orientation on unethical pro‐organizational behavior: the case of earnings management.Business Ethics: A European Review,25(2), 159-171. Turner, L. B., Fischer, A. J., & Luiselli, J. K. (2016). Towards a competency-based, ethical, and socially valid approach to the supervision of applied behavior analytic trainees.Behavior analysis in practice,9(4), 287-298.
17ETHICAL DECISION IN RELATIONSHIP Waddock,S.(2014).Wisdomandresponsibleleadership:Aestheticsensibility,moral imagination, and systems thinking. InAesthetics and business ethics(pp. 129-147). Springer Netherlands.