Ethical Leadership IPW Metropolia Business School 2014 Andrea

Ethical Leadership IPW Metropolia Business School 2014 Andrea Rijkeboer-van Gemert MSc Thursday, 15 -05 -2014

Ethical leadership Definition: the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement and decision-making. These leaders are legitimate and credible ethical role models by acting altruistic, being honest, considerate of others and treating people fairly. Trust and integrity are important traits these leaders possess. Relationship with follower attitudes and contextual performance: Employees satisfaction with their leader, leader effectiveness, employees’ willingness to give extra effort, willingness to report problems to management. Brown, M. E. , Treviño, L. K. & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97, 117 -134.

Examples of ethical leader behaviour

Transformational leadership Motivate their followers to do more than the followers originally intended and thought possible. Set challenging expectations and achieves higher standards of performance. Looks at higher purposes. Developer of people, builder of teams. Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration Directive and participative

Transactional leadership Contingent reward Praise Active Salary, bonus Passive Management by exception

Transformational ethical leadership Transforming leaders inspire followers by aligning their own and their followers’ values systems toward important moral principles. (Idealized influence ethical component) These leaders are role models for followers to pursue, they can be counted on doing the right thing and they demonstrate high standards of ethical and moral conduct. Ethical leaders set clear standards and hold employees accountable for following them (transactional leadership). An ethical leader uses elements of both transactional AND transformational style. Social learning theory: rewarding appropriate and disciplining inappropriate conduct. Doing this in a fair way.

Transformational leadership skills • • • Critical evaluation and problem recognition Developing a vision To be able to communicate a vision Impression management Know what followers need Interpersonal skills (emotional intelligence)

Developing leadership skills Factors that have affected your leadership skills already Personality Education by parents Experiences in your youth Leadership experiences Model behavior Education and training

ills Not all sk can be d develope Motivation g Learnin y capacit Expectations Willi ngne s learn s to Belief in own abilities Willingness to receive feedback

Can competences be developed? Not-hardly • Learning capacity and willingness • Sociability • Achievement motivation • Enthusiasm • Judgment • Vision Well • Planning and organizing • Listening • Decision making • Empathy

Role play