Leadership Theory, Style and Ethics - Assignment

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Leadership Theory, Style and Ethics
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Student Name ID 570-1
Contents
Executive Summary...................................................................................................................2
Introduction -..............................................................................................................................3
Task 1 Theoretical and leadership frameworks for Leading and Managing Change..............3
a. Description of The theory of leadership as promoted by the people managing the
business organisation.................................................................................................................3
b. Analyses of the three (3) elements that made up a leadership framework of the business
organisation................................................................................................................................4
c. Examination of the reason behind the appointment of the veteran Ritz Carlton foreign..4
d. Analysis of one advantage and one disadvantage of this decision.....................................5
e. Critique and example how the new management people approach the attitude problem
of the young Chinese workers....................................................................................................5
f. Explanation how the three elements are considered by management in leading the change
process in the business organisation..........................................................................................5
Task 2: Dynamics of gender, diversity and culture in Business Leadership...........................6
a. Analysis of the dynamics of employees’ gender, diversity and culture in business
leadership................................................................................................................................6
b. Strength........................................................................................................................6
c. Weakness.....................................................................................................................7
d. Interpretation of the influence of leadership on change managementinclude the aspects
of the dynamics of gender, diversity and culture...................................................................8
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e. Examination of the changes in corporate culture............................................................8
Task 3: Leadership styles and ethical perspectives in change implementation........................9
Analysis of three (3) leadership styles...................................................................................9
Analysis the leadership style adapted by the new management............................................9
Application of ethical leadership with two examples of workplace scenario......................10
Examination of three (3) ethical behaviours that a leader must possess.............................10
Proposed two (2) strategies to manage the relationships with internal and external
stakeholders..........................................................................................................................11
Conclusion................................................................................................................................11
References................................................................................................................................12
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Executive Summary
The report focuses on the leadership frameworks that can help an organisation to gain
success. The elements that exist in leadership are analysed. For the purpose of the report,
focus is made on Portman Ritz Carlton in Shanghai. The advantages and disadvantages of the
decisions taken by the company is analysed along with the application of leadership theories.
The dynamics of leadership is analysed and the manner in which these dynamics can be
presented are considered. The impact of the changes in the corporate culture are analysed in
the report and it has been seen that the corporate culture in Shanghai is different from the
culture practised in Europe. The impact of the changes made are analysed by considering
different fields such as the motivation of the workers, satisfaction, loyalty of the company
and the multi ethnicity. The ethical behaviour that leaders need to undertake is analysed that
provides an overview of the expectations from the leaders. The new management that has
been adopted in Ritz Carlton is analysed and analysis is made about the style and the impact
it has on the working of the company. At the same, time the impact of the appointment of
foreign employees in the company with respect to the effective cultural implication.
Strategies are formed that help in understanding the relationships that exist between the
internal as well as the external stakeholders of the company. This can help in understanding
the impact of stakeholder relationship on the leadership of the case study organisation.
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Introduction -
Leadership is important in order to ensure that every member of a team or
organisation works together in a cohort manner. Without leadership, it can be difficult for
employees in a team to make the correct decisions that can help in the growth of an
organisation. However, it needs to be kept in mind that the leadership needs to focus on
ethical consideration and the style need to be adapted based on the capabilities and resources.
The assignment provides a theoretical framework that defines the leadership and the effect it
may have during the management of change. The styles of leadership that need to be
followed and the ethical consideration that need to be maintained are analysed in the
assignment. The focus is on the case study of Ritz Carlton and the leadership style that need
to be adopted in the company.
Task 1 Theoretical and leadership frameworks for Leading and Managing Change
a. Description of The theory of leadership as promoted by the people managing the
business organisation
According to Bolman and Deal (2017), leadership can be considered as management or
guiding of other people within an organisation. The characteristics and traits of
individuals make up the leadership quality which can is essential for the success of an
organisation. The theory of leadership as defined by Ritz Carlton can stretch back from
the early years in the western history. The rate satisfaction of the employees as well as the
guests is considered as a means of effective leadership trait. The invitation to the
employees to participate in issues relating to the organisation can be considered as an
effective leadership policy that can help in the company to attain success.
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b. Analyses of the three (3) elements that made up a leadership framework of the
business organisation
1. Employee satisfaction: The employee satisfaction is considered important for the
success of the organisation, as it is connects the other three elements of leadership.
Ritz Carlton believes that the foundation of the leadership framework is important so
that the valuable assets of the organisation can be taken into consideration.
2. Guest satisfaction: This particular element is depended upon the satisfaction of the
employees. Without proper satisfaction of the employees, the guests cannot be
entertained properly. According to Goleman (2017), leading the employees towards
the satisfaction of the guests ensures stable growth of revenue within the organisation.
3. Profits: The profit gained by Ritz Carlton, can be used for the improvement of the
company and its expansion. This placed at the top of the pyramid as the profit
depends upon the other two elements. The responses of the guests and employees
provide for the success of the organisation.
c. Examination of the reason behind the appointment of the veteran Ritz Carlton
foreign
The reason behind the appointment of foreign employer in Ritz Carlton is that the
company needed to overcome the problems that were normally faced in the appointment of
foreign people. This is mainly due to the cultural differences that exist in China and the
values that the people of the country undertake. At the same time, the language was also a
problem and it led to the deviation of Ritz Carlton from the goals that the leadership pyramid
had set for the company. However, the appointment of the foreign veterans could help the
company to gain new ideas about the manner in which it can be developed.
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d. Analysis of one advantage and one disadvantage of this decision.
1. One of the advantages of the decision is that the ideas that can be received from the
foreign employers can help in the improvement of Ritz Carlton. Ward (2016) stated
that it could be beneficiary for every organisation to employ certain practises that are
followed in foreign lands. The new ideas can be innovative for Ritz Carlton as it can
help in developing the company in the mind of the Chinese people as well as the
guests that visit the country
2. At the same time, a disadvantage of the decision is that the foreign employer may find
it difficult to adapt to the Chinese culture of work and nationality. This can be also
true for the employees as the changes that may be brought about by the foreign
manager may affect the work life of the local employees.
e. Critique and example how the new management people approach the attitude
problem of the young Chinese workers
According to the case study, the new Chinese workers are motivated by money. At the
same time, the English language skills that the people have are also a factor for
motivation of the young Chinese workers. Hence, it can be said that the appointment of
the foreign employer and the adoption of the 3-element leadership framework can help
the young Chinese employees to remain motivated in work. This is because opportunities
can be provided to the employees to earn proper money by the satisfaction of the guests.
Hence, this can also help in maintaining the loyalty of the employees in Ritz Carlton.
f. Explanation how the three elements are considered by management in leading the
change process in the business organisation.
1. Employee satisfaction: The satisfaction of the employees can be considered as means
of change in Ritz Carlton as the resistance to change can be mitigated. According to
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Antonakis and Day (2017), the satisfaction of the employees may lead to the increase
in productivity of the organisation and because of this help in the progress of the
company.
2. Guest satisfaction: The satisfaction of the guests can influence change as the
feedback provided by the guests can be taken into consideration. The guests form an
important stakeholder of the company and application of the feedback can influence
changes, as the guests can remain satisfied with the company.
3. Profit: Considerable profit can help in the growth and development of Ritz Carlton.
This is mainly changes in resources such as man and machine can be brought about
with the effective application of the revenue generated. Ritz Carlton can use the profit
to impose the changes suggested by the guests and increase the pay roll of the
employees.
Task 2: Dynamics of gender, diversity and culture in Business Leadership
a. Analysis of the dynamics of employees’ gender, diversity and culture in business
leadership
As observed by Kogan et al. (2016) leaders need to take into consideration every
ethical aspect while guiding members of a team. A team may consist of people of varied
culture, gender and diversity. The leaders need to ensure that the ethical considerations
are maintained so that employees do not feel violated ethically. The values and outcomes
of business provide opportunities for different ethical people to contribute to the success
of business in an equal manner.
b. Strength
1. Employees’ gender strength: The gender strength provides leaders with an
opportunity to delegate work that may not be possible for every gender to continue.
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According to the Lusch and Nambisan (2015), attributes such as being compassionate
and understanding are attributed to females while an attitude of aggressiveness can be
attributed to the male. Therefore, the jobs requiring these attitudes can be delegated
between the genders.
2. Employees’ diversity strength: The diversity of the employees can provide
opportunities to gain new ideas in terms of innovation and improving the services.
This can help Ritz Carlton to gain the satisfaction of the guests visiting the hotel.
3. Employees’ culture strength: The culture of every people is different and based on
this merging of more than one culture can help in understanding the perspective of
every employee.
c. Weakness
1. Employees’ gender Weakness: The weakness of having different gender is that there
may be a possibility of favouritism on one gender. This may lead to organisational
conflict, which in turn can hamper the production of Ritz Carlton. Heifetz and Linsky
(2017) is of the opinion that the gender weakness can lead to serious ethical
considerations of the company.
2. Employees’ diversity Weakness: The diversity of the company can be a weakness, as
different thoughts need to be considered. The thoughts of every employee need to be
addressed so that the company can benefit in the market (Tai & Chuang, 2014).
However, excessive ideas provided by the employees may backfire for the company,
as the application of it may not be possible. This may again lead to favouritism being
implied in the organisations.
3. Employees’ culture Weakness: The cultural differences may cause harm due to the
changes in the various dimensions. For example, in the case of Ritz Carton, the
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appointment of the foreign employee may be a cause of concern as the Chinese
culture consists of avoiding uncertainty in the form of innovation.
d. Interpretation of the influence of leadership on change managementinclude the
aspects of the dynamics of gender, diversity and culture
Leadership is essential to maintain and manage changes as the leaders provide the
necessary guidance for the employees to embrace change (Fairhurst & Connaughton, 2014).
Gender, diversity and culture are important for changes the appointment of people belonging
to these ethical backgrounds can bring about changes in the organisation. For example, it can
be seen that the implementation of new ideas for the promotion of changes are derived from
the diverse backgrounds of the employees. In the case of Ritz Carlton, the three aspects can
help the company to ensure that the Chinese culture follows the examples set out by culture
of the foreign employer so that diversity can be maintained in the form of generating new
ideas for improving in the market.
e. Examination of the changes in corporate culture
1. Work motivation: The changes that can be brought for motivating the employees include
proper monetary and non-monetary benefits. At the same time, it is also necessary for Ritz
Carlton to maintain a work place in which employees can work in a stress free manner.
2. Satisfaction: The satisfaction needs to be established on two fronts: employee and guests.
The changes made in the organisation need to satisfy the employees so that the work pressure
does not increase. At the same time, the satisfaction of the guests can be obtained by
maintaining the level of service it provides (Grosser, Moon & Nelson, 2017).
3. Company loyalty: The loyalty of the company is based on the loyalty of the employees.
Without proper employees, Ritz Carlton cannot afford to continue with the progress that it
aims to make in the Chinese restaurant business.
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4. Multi-ethnicity: The multi-ethnicity of the employees can bring about changes as new
ideas can be generated and used for the development of the company. The diversity of the
people is important for the generation of innovative ideas.
Task 3: Leadership styles and ethical perspectives in change implementation
Analysis of three (3) leadership styles
1. Autocratic leadership: Autocratic leadership is mostly centred on the decisions of the
boss. According to Covin and Slevin (2017), the leadership style does not include the
opinion of the employees and decide on the best options for the team by forcing the
employees to acknowledge the decision.
2. Democratic leadership: The democratic leadership style is considered as the best
form of leadership as the leaders involve the employees while taking any decisions
regarding policies and procedures. Ritz Carlton adopts this type of leadership style
and ensure that contribution of the employees are valued.
3. Laissez-faire leadership: The laissez faire leadership style provides full authority to
the employees without any limitations. This can have a negative impact for the
development of an organisation as the employees may require guidance from the
leaders.
Analysis the leadership style adapted by the new management
1. It is evidenced from the case study that the new management of Ritz Carlton adopts
the democratic style of leadership. According to Johnston and Marshall (2016), the
advantage of this leadership style is that the employees can be satisfied and therefore,
the foundation element of the leadership framework can be fulfilled.
2. At the same time, the disadvantage of this particular style is the fact that employees
may become too dependent on the employees (Schwartz, 2017). At the same time,
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ethical issues may rise if the opinions of the employees are not taken into
consideration. This can lead to problems within Ritz Carlton.
Application of ethical leadership with two examples of workplace scenario
1. One of the scenario in which ethical leadership need to be implemented is during the
managing of the young Chinese employees. It has been evidenced from the case study
that introduction of foreign employer can help in the improvement of the company but
at the same time may lead to problems in understanding the tasks. Hence, the
stereotyping nature needs to be abolished so that effective leadership can take place.
2. Another scenario includes the satisfaction of the guests. The guests of the company
need to be entertained and any ethical issues concerning the guests such as
geographical location; language and culture need to be overlooked. This can help in
the success of Ritz Carlton and at the same time ensure that the demands of the guests
are managed.
Examination of three (3) ethical behaviours that a leader must possess
1. Justice: According to Den Hond, de Bakker and Neergaard (2016), it is necessary for
the leaders to ensure that proper justice is maintained in terms of selection of
members of team and delegating work in a fair manner.
2. Focus on team building: The team that need to be built in Ritz Carlton need to
comprise of employees of different culture and diversity. The leaders need to
incorporate the team members and guide them accordingly.
3. Honesty: It is essential for the leaders to remain honest with the team members and
provide them with any information about the organisation. The level of honesty is
important as it can help employees to gain trust on the leaders. At the same time, the
leaders need to abstain from any ethical consideration while being honest with the
employees.
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Proposed two (2) strategies to manage the relationships with internal and external
stakeholders
1. Identify and acknowledge the interests of the stakeholders. This can help the company
to identify the stakeholder power and consequently prioritise the stakeholder.
Therefore, it can be said that the internal and external stakeholders can be
acknowledged based on the interest that they provide.
2. Define the purpose of maintaining changes in the organisation. Application of this can
help Ritz Carlton to convince the stakeholders about the requirement of changes. This
can help the company to convince the employees as well as the customers.
Conclusion
Therefore, it can be concluded that ethical leadership is necessary to ensure successful
business takes place in the market. Ritz Carlton needs to ensure that the shift in China can
help the company to maintain any ethical or stereotypical issues that may pose problems for
the organisation. The application of democratic leadership style can help the company to
maintain the satisfaction of the employees and consequently move forward in satisfying the
remaining elements of the leadership framework.
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References
Antonakis, J., & Day, D. V. (Eds.). (2017). The nature of leadership. Sage publications.
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and
leadership. John Wiley & Sons.
Covin, J. G., & Slevin, D. P. (2017). The entrepreneurial imperatives of strategic
leadership. Strategic entrepreneurship: Creating a new mindset, 307-327.
Den Hond, F., de Bakker, F. G., & Neergaard, P. (2016). Introduction to managing corporate
social responsibility in action: Talking, doing and measuring. In Managing Corporate
Social Responsibility in Action (pp. 15-26). Routledge.
DuBrin, A. J. (2015). Leadership: Research findings, practice, and skills. Nelson Education.
Fairhurst, G. T., & Connaughton, S. L. (2014). Leadership: A communicative
perspective. Leadership, 10(1), 7-35.
Goleman, D. (2017). Leadership That Gets Results (Harvard Business Review Classics).
Harvard Business Press.
Grosser, K., Moon, J., & Nelson, J. A. (2017). Guest Editors’ Introduction: Gender, Business
Ethics, and Corporate Social Responsibility: Assessing and Refocusing a
Conversation. Business Ethics Quarterly, 27(4), 541-567.
Heifetz, R., & Linsky, M. (2017). Leadership on the Line, With a New Preface: Staying Alive
Through the Dangers of Change. Harvard Business Press.
Johnston, M. W., & Marshall, G. W. (2016). Sales force management: Leadership,
innovation, technology. Routledge.
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Kogan, L., Papanikolaou, D., Seru, A., & Stoffman, N. (2017). Technological innovation,
resource allocation, and growth. The Quarterly Journal of Economics, 132(2), 665-
712.
Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service-dominant logic
perspective. MIS quarterly, 39(1).
Schwartz, M. S. (2017). Corporate social responsibility. Routledge.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
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