978-0470639948 Chapter 9 Solution Manual Part 1

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Chapter 9:

MANAGERS AS ETHICAL LEADERS AND ROLE

MODELS

CHAPTER 9 CHAPTER AND ADDITIONAL QUESTIONS

In studying this chapter, students should consider the questions below.

“CQ1” refers to “Chapter Question 1.” This question appears at the end of the textbook

chapter.

“AQ1” refers to an “Additional Question 1.” This is an “additional” question related to

the chapter. It is not listed at the end of the textbook chapter as a “Chapter Question”.

These items are numbered within the two categories based on the order in which the

answer appears in the chapter.

CQ1: What are William Torbert’s six management role models, which are associated with the

different stages of moral development?

CQ2: Discuss the five different types of power sources available to managers, and the ethical

issues related to authoritarian and participatory leadership styles.

CQ3: What is ethical leadership and how can it be measured?

CQ4: How can work goals and performance appraisals influence ethical and unethical behaviors?

AQ1: What are best practices for disciplining work rule violations?

CQ5: Why is it important to forgive managers and co-workers? Describe Robert Enright’s four

phases of forgiveness.

CHAPTER 9 LEARNING OBJECTIVES

After completing this chapter, students should be able to:

Describe how managers can be ethical leaders and role models

Explain different leadership styles and assess ethical leadership

Set SMART work goals and implement Management-By-Objectives

Design and conduct employee performance appraisals that encourage ethical behavior

Effectively and fairly discipline employees for work rule violations

CHAPTER 9 OVERVIEW

Three aspects of daily organizational life significantly impact an employee’s ethical

performance: (1) the behaviors of organizational executives, managers, and direct supervisors,

(2) work goals, and (3) employee performance appraisals.

This chapter explores how managers are ethical role models, the ethics of exercising

power in an organization, and different leadership styles, including being an ethical leader.

Ethical leaders develop great places to work. Ethical leaders can reinforce ethical behavior

among employees through work goals and performance appraisals that encourage and reward

ethical behaviors. Several surveys are provided to help managers evaluate themselves and others

in terms of ethical leadership and behaviors.

CHAPTER 9 LECTURE OUTLINE

Teaching Objective: To teach how to improve ethical performance through ethical leadership,

work goals, and performance appraisals.

Suggested Time: Two to three hours of class time is recommended to present this chapter.

I. Chapter Question 1: What are William Torbert’s six management role models, which

are associated with the different stages of moral development?

II. Chapter Question 2: Discuss the five different types of power sources available to

managers, and the ethical issues related to authoritarian and participatory

leadership styles.

Personal integrity

III. Chapter Question 3: What is ethical leadership and how can it be measured?

Ethical leadership

Ethical leadership survey

IV. Chapter Question 4: How can work goals and performance appraisals influence

ethical and unethical behaviors?

Work goals

Holistic organizational goals

Stretch goals

V. Additional Question 1: What are the best practices for disciplining work rule

violations?

Background

VI. Chapter Question 5: Why is it important to forgive managers and co-workers?

Describe Robert Enright’s four phases of forgiveness.

CHAPTER 9 SUPPORTING MATERIALS

Textbook Inserts

Ethical Dilemma Analysis

What would you do?

Let’s Build a Building

In the Real World: Enron

Exhibits

Exhibit 9.1: Ethical Leadership Survey

Exhibit 9.2: Virtue Ethics Survey

Exhibit 9.3: Great Place to Work® Dimensions

Exhibit 9.4: Practicing Unethical Behaviors Survey

Exhibit 9.5: Employee Code of Ethics Performance Appraisal

Exhibit 9.6: Leadership Skills Performance Appraisal

Exhibit 9.7: Employee Polygraph Protection Act of 1988.

Thematic Boxes

Tips and Techniques

Best Practice in Use

CHAPTER QUESTION 1: WHAT ARE WILLIAM TORBERT’S SIX MANAGEMENT

ROLE MODELS, WHICH ARE ASSOCIATED WITH THE DIFFERENT STAGES OF

MORAL DEVELOPMENT?

ROLE MODELING

Subordinates are constantly evaluating the ethics of a manager’s decisions and behaviors. A

manager’s behavioral commitment, or lack thereof, to ethical principles filters down to

subordinates and other employees. Managers have already been promoted, so their daily

workplace actions are indicators to subordinates of what it takes to be promoted.

Direct supervisors have the greatest impact on an employee’s ethical performance.

They can model acceptable or unacceptable behavior through daily interactions.

A recent survey of employees suggests that a rather large percentage of managers are

ethically challenged.

39 percent reported that their managers failed to keep promises

37 percent reported that their managers failed to give credit when due

24 percent reported that their managers violated employee privacy

23 percent reported that their managers blamed others to cover up mistakes or to

minimize embarrassment

These managerial misbehaviors contradict the attribute employees most want their

leaders and supervisors to exhibit—honesty.

WILLIAM TORBERT’S SIX MANAGEMENT ROLE MODELS AND STAGES OF MORAL

DEVELOPMENT

William Torbert has developed a management role model typology based on Lawrence

Kohlberg’s six stages of moral development.

Stages 1 and 2 – Opportunist: An Opportunist is strongly influenced by rewards and

punishments and will exhibit ethical/unethical behaviors based on rewards and

punishments.

Stage 3 – Diplomat: A Diplomat is strongly influenced by social group norms and

supports decisions agreed to by other managers. Diplomats pursue ethical or unethical

behaviors based on being good team players, seeking group consensus, and avoiding

group conflict.

Stage 4 – Technician: A Technician is strongly influenced by technical logic and

determines the right thing to do based on data and organizational interests, often in a

dogmatic and perfectionist manner. Technician managers will behave

ethically/unethically when rational analysis recommends it.

Stage 5 – Achiever: An Achiever is goal-oriented and strongly influenced by

organizational success. Achiever managers will behave ethically/unethically based on

how they impact goal accomplishment.

Stage 6 – Strategist and Magician: Torbert invokes two different Stage 6 management

role models.

oA Strategist is a systems thinker who welcomes ambiguity and multiple

perspectives, analyzes the strengths and differences of different approaches, and

then applies one overarching organizing principle appropriate for all people in all

situations to generate the best solutions.

oMagicians add to this a commitment to personal, employee, and organizational

transformation, and a willingness to change based on a vision of the good.

oStrategist and Magician managers strive to behave according to an ideal

conceptualization of ethical behavior and fulfillment.

In research studies, Torbert and his colleagues found that:

osupervisors tend to be Technicians

omiddle-level and upper-level managers tend to be Technicians and Achievers

oprofessionals tend to be Achievers and Strategists

DISCUSSION ACTIVITY

Based on Torbert’s typology, which stage best describes your boss, teacher, yourself? Provide

examples that support your answers. Discuss in small groups.

CHAPTER QUESTION 2: DISCUSS THE FIVE DIFFERENT TYPES OF POWER

SOURCES AVAILABLE TO MANAGERS, AND THE ETHICAL ISSUES RELATED TO

AUTHORITIAN AND PARTICIPATORY LEADERSHIP STYLES.

PERSONAL INTEGRITY

Personal integrity has long been recognized as an essential component of successful

leadership.

Back in 1954, Peter Drucker, the Father of Modern Management, noted that, “The final

Half a century later researchers conducted interviews with 1,040 managers in more than

100 organizations about why managers fail.

oThe top two reasons were failure to practice effective communications and failure

EXERCISE OF POWER

Managers possess power for the purpose of achieving organizational objectives.

Power refers to the ability to act, create an effect, or wield force.

Social psychologists John French and Bertram Raven differentiated among five types of

power bases individuals can have in relationship to others:

1. Legitimate Power: Power that is formally assigned to an individual, such as a title

2. Reward Power: Power obtained by being a person distributing rewards; “I’m going

3. Coercive Power: Power obtained by enforcing punishments; “I’m going to do what

4. Referent Power: Power obtained because people want to be like you; “I’m going to

5. Expert Power: Power obtained by being a source of desired knowledge or skills;

AUTHORITARIAN LEADERSHIP STYLE

Historically, the dominant view on how to manage an organization and its employees

Authoritarian refers to demanding blind submission to someone in authority.

Social Darwinists such as Andrew Carnegie maintained that executives earn authoritarian

power by successfully climbing the organizational ladder.

oThrough a competitive promotion system, managers who mastered administrative

In the early 1900s, Frederick Winslow Taylor encapsulated the authoritarian leadership

style by scientifically studying every worker motion necessary to perform a task at peak

efficiency and effectiveness.

oHe used a stopwatch to calculate each worker’s maximum output capacity and

An authoritarian management style raises several ethical issues.

oEmployees are tightly controlled and their opinions are not respected. These

oResearchers report that rigid, one-way communication from supervisor to

oAuthoritarian leadership is also associated with abusive supervision, where

PARTICIPATORY LEADERSHIP STYLE

oDuring the 1950s, Douglas McGregor differentiated between two different management

approaches, referred to as “Theory X” and “Theory Y,” based on a different set of beliefs

about employees.

oTheory X represented the traditional perspective – people were lazy, disliked

work, avoided responsibilities, and did as little as possible unless induced by

monetary incentives to provide their best effort.

oAs a result, Theory X managers adopted an authoritarian management style where

employees were coerced, controlled, directed, or threatened to perform the task

necessary to achieve productivity goals.

oTheory Y managers assumed people usually enjoyed mental and physical

activities, were self-directed, desired challenging and interesting work, and

welcomed additional work-related responsibilities.

oAs a result, Theory Y managers could get the most out of employees by

demonstrating greater respect for them through a participative management style

that involved subordinates in the decision-making process.

oRensis Likert’s research led him to conclude that a participative management system

resulted in higher amounts of employee productivity, loyalty, and motivation, all of which

contributed to better profits.

oPaul Hersey and Ken Blanchard fine-tuned the differences between authoritarian and

participative leadership styles by noting that there is no one best way to manage

everybody.

oA manager’s leadership style needs to fit the type of employee being managed.

Blanchard further developed a Situational Leadership II Model that categorizes

four leadership styles – directing, coaching, supporting, and delegating –

according to an employee’s level of competence and commitment or confidence.

Directing – If an employee has low competence and high commitment,

such as an enthusiastic beginner, the manager needs to clearly direct the

employee through one-way communication.

Coaching – If an employee has either low or some competence and lacks

commitment, such as a disillusioned learner, the manager needs to provide

direction, guide the employee using two-way communication that stresses

accountability, and provide feedback.

Supporting – If an employee has moderate to high competence and

variable commitment, such as a capable but cautious performer, the

manager needs to listen to the employee’s concerns and suggestions and

then provide support and encouragement.

Delegating – If an employee has high competence and high commitment,

such as a self-reliant achiever, the manager needs to delegate

responsibilities, provide resources, and monitor progress.

oFrom an ethics perspective, situational leadership sensitizes managers to focus on

employee needs and providing the style of leadership the employee’s needs dictate.

oHersey and Blanchard have an ultimate preference that uses the greatest human capacity,

in this case, delegating.

oBut delegation will only work if an employee has the appropriate competencies and

confidence. Delegating work to an employee with low competence or low commitment

will result in failure.

oNonetheless, managers need to provide an employee with low competence the

appropriate training and development, and an employee with low confidence the

appropriate support, so that the employee can succeed if delegated tasks.

DISCUSSION ACTIVITY

Have students complete the free Theory X and Theory Y survey available at

http://www.businessballs.com/mcgregor.htm. Discuss the survey results in small groups.

Is one style better than the other? Which one? Which is better group of assumptions for being a

(a) corporate leader, (b) nonprofit leader, (c) military leader, (d) college president, (e) basketball

coach, and (f) faculty member teaching a class? Why?

CHAPTER QUESTION 3: WHAT IS ETHICAL LEADERSHIP AND HOW CAN IT BE

MEASURED?

ETHICAL LEADERSHIP

oWhether a situation calls for an authoritarian or participatory leadership style, one aspect

oIn a series of articles, Michael Brown, Linda Trevino, and their colleagues provide an

expansive understanding of what it means to be an ethical leader. They maintain that a

oAs a moral person, managers must exhibit ethical traits in their personal lives,

oAs a moral manager, managers must be aware of ethical issues, encourage others

oA manager’s private life affects the way employees and other key stakeholders perceive

the manager’s ethics.

oA manager who encourages and reinforces ethical behaviors at work, but engages

oLikewise, a manager who is personally ethical, but does not encourage and

oWithin this analytical framework, Brown, Trevino and David Harrison define ethical

leadership as “the demonstration of normatively appropriate conduct through personal

ETHICAL LEADERSHIP SURVEY

oBrown, Trevino, and Harrison developed an Ethical Leadership Survey consisting of ten

statements that describe attributes of being a moral person and a moral manager

oReview EXHIBIT 9.1 “Ethical Leadership Survey”

oUse the Ethical Leadership Scale to assess a specific manager. The survey can also be

used to assess top management in general by substituting “top management” for “my

manager.”

oResearchers have found strong associations between ethical leadership and satisfaction

with leaders, perceived leader effectiveness, willingness to give extra effort, willingness

to report problems to management, job satisfaction, and organizational commitment.

oResearchers also report that the highly desirable outcomes associated with ethical

leadership result from a “trickle-down” effect where ethical managers at the top of the

organization positively impact their direct reports, a process that cascades, through ethical

role modeling, down the organizational hierarchy.

oReview TIPS AND TECHNIQUES “Common Decencies at Work”

DISCUSSION ACTIVITY

Have students complete the “Ethical Leadership Survey” in Exhibit 9.1 for a boss, the president

of a student organization, or the teacher. Also complete the survey as a self-assessment.

What are the person’s strengths and weaknesses? How can the person improve a weak area? In

small groups, discuss the results.

Also address the following questions:

1. Must an ethical leader at work live a moral lifestyle outside of work? Why?

2. How does a manager’s personal lifestyle outside of work impact how employees respect, and

perform for, the manager?

3. How did President Bill Clinton’s relationship with Monica Lewinski impact his presidential

power and accomplishments?

4. Should a CEO who commits adultery or is an alcoholic resign? Why?

DISCUSSION ACTIVITY

Students can be an ethical leader by making a real personal difference in the life of a friend,

classmate, or co-worker through a heart-to-heart discussion or action. Provide an example when

you:

1. Made a difference in the life of a friend, classmate or co-worker. Why did you decide to act on

this opportunity?

2. Could have made a difference but chose not to. Why didn’t you act on this opportunity?

3. Can make a difference in the near future. What can you do for a friend, classmate or co-worker

that will make a difference?

VIRTUE ETHICS SURVEY

Ethical leaders are transparent and authentic. They mean what they say and practice

virtuous behaviors.

The list of virtuous traits is extensive. The most common grouping of virtues includes

justice (fairness), empathy, passion, reliability, honesty, integrity, and respect.

Researchers have found the personality traits agreeableness (likeable, friendly, and easy

to get along with) and conscientiousness (responsible, dependable, and hard-working) to

be strongly associated with ethical leadership.

Ronald Riggio, Weichun Zhu, Christopher Reina, and James Maroosis developed a

survey that focuses on the four cardinal virtues emphasized by Aristotle: justice, fortitude,

prudent, and temperance.

oJustice refers to fairness, fortitude to courage and perseverance, prudence to

practical wisdom, and temperance to controlling one’s emotions.

oReview EXHIBIT 9.2 “Virtue Ethics Survey,” which provides a survey instrument

for measuring these key virtues. Managers can use the survey instrument as a

self-assessment and compare with subordinate survey responses.

DISCUSSION ACTIVITY

Have students complete the “Virtue Ethics Survey” in Exhibit 9.2 for a boss, the president of a

student organization, or the teacher. Also complete the survey as a self-assessment.

What are the person’s strengths and weaknesses? How can the person improve a weak area? In

small groups, discuss the results.