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Exhibit 12.7: Guidelines for Ethical Action
There are some criteria that can guide ethical actions. First and foremost is the question of
whether the action is motivated by self-interest or whether it is consistent with the organization’s
goals. Once a leader answers this primary question, there are several other questions that can
help determine whether a potential influence action is ethical, including whether it respects the
rights of individuals and groups affected by it, whether it meets the standards of fairness, and
whether the leader would want others to behave in the same way.
The most important point is for leaders to be aware of the ethical responsibilities of having
power and take care to use their power to help rather than harm others.
Discussion Question #1: Lord Acton, a British historian of the late nineteenth century, said that
“power tends to corrupt; absolute power corrupts absolutely,” suggesting that a person’s sense
of morality lessens as his or her power increases. Do you agree? Considering this idea, is it
ethical for leaders to try to increase their power? Discuss.
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Discussion questions
1. Lord Acton, a British historian of the late nineteenth century, said that “power tends to
corrupt; absolute power corrupts absolutely,” suggesting that a person’s sense of morality
lessens as his or her power increases. Do you agree? Considering this idea, is it ethical for
leaders to try to increase their power? Discuss.
Students’ answers will vary. However, the statement, “power tends to corrupt; absolute
power corrupts absolutely”, is often true. However, if leaders increase their power to reach
2. How do you feel about personally using Machiavellian-style leadership? What do you see
as some positive and negative aspects of Machiavellian-style leadership?
Students’ answers may vary. Although Machiavellian-style leadership is associated
with unscrupulous, even diabolical behavior aimed at increasing one’s power for
3. What do you consider the most important difference between transformational leadership
and transactional leadership? Between transformational and charismatic leadership? How
is transformational leadership similar to charismatic leadership?.
The basis of transactional leadership is a transaction or exchange process between leaders
and followers. Transactional leaders focus on the present and excel at keeping an
4. Assume you are on a search committee to replace the CEO of a large financial services
firm that is recovering from problems related to the mortgage crisis. Which do you think
would be more valuable for a new top leader trying to solve the problems within the
organization—charismatic, transformational, coalitional, or Machiavellian-style
leadership? What about for a new top leader of a small private university? Discuss.
Students’ answers will vary. Some of them may find that to replace the CEO of a large
financial services organization, transformational leadership would be the most valuable for
solving problems. In view of the financial crisis that has taken place in the United States, a
5. Which of the four organizational frames of reference do you most admire? How do you
think this frame of reference could be beneficial or detrimental to your leadership
capability?
Students’ answers will vary. Following are the four organizational frames of reference:
• The structural frame places emphasis on plans, goal setting, and clarifying
expectations as a way to provide order, efficiency, and stability.
• The human resource frame considers people as the organization’s most valuable
6. A recent magazine article suggested that young college graduates just entering the
workforce are refusing to “play the political game.” Why might this be the case? If politics
is important for getting things done, can these people succeed as leaders? Discuss.
Many people have a negative view of politics because leaders with a political frame of
reference strive to build a power base and they use both position and personal power to
achieve desired results.
7. Which types of power would you rely on to implement an important decision quickly?
Which types would you consider most valuable for sustaining power over the long term?
Students’ answers will vary. Power, which is the potential ability of one person to
influence others to bring about desired outcome, can be categorized as either hard power or
8. Describe ways in which you might increase your personal power.
Following are some influence tactics which can be used to increase personal power:
• Appeal to a vision or higher purpose. Providing people with meaning can help them
see that the effort of doing what the leader asks is worthwhile.
9. Which of the six influence tactics would you be most comfortable with as leader of a study
group? Of a work team? Discuss.
10. A leadership observer said in an interview that most women leaders view power differently
than men do and prefer a collaborative, relationship-oriented use of power. If this is the
case, what does it suggest about women leaders’ abilities to accomplish goals? What does
it suggest about women’s ability to rise to higher organizational levels? Discuss.
A collaborative, relationship-oriented use of power suggests that women would be
successful at forming coalitions and using coalitional power to accomplish goals. As
Teaching tools and exercises
1. Leader’s Bookshelf: Power: Why Some People Have It and Others Don’t by Jeffrey
Pfeffer
Managers may be granted positions of authority, but real power doesn’t just fall into a
person’s hands. It takes ambition, resolve, energy, and skill to accumulate the power a
leader needs to be effective and successful, Jeffrey Pfeffer says in Power: Why Some
People Have It and Others Don’t.
To accumulate power, you need to get noticed. Here are some of Pfeffer’s tips for doing so.
• Play Up to the Boss
• Master the Art of Networking
3. Role Play: In pairs or small groups, role-play the following scenario using Exhibit 12.6:
Six Principles for Asserting Leader Influence.
You are a member of a committee that wishes to build a replica of a bridge designed by
Leonardo DaVinci over 500 years ago. One such bridge has been built in Oslo, Norway,
and the plan is to build similar bridges all over the world. None has been built in the United
The Center for Ethical Leadership believes that an ethical leader is a person who acts with
integrity. We define ethical leadership as: knowing your core values and having the
courage to act on them on behalf of the common good.
This exercise will help you clarify your core values. It is a challenging exercise, and it will
be more meaningful if you do it silently and on your own.
5. Read and Discuss: Machiavelli’s “The Prince”.
6. Leadership at Work: Circle of Influence
How do you personally try to influence others? Think carefully about how you get others
to agree with you or do something you want. Watch the way you influence others in a
team, at home, or during your work.
• Make a list of your influence tactics.
• Of the influence and political tactics discussed in the chapter, which ones do you
typically not use?
In Class: The instructor can ask students to sit in small groups of three to five people and
share the circles of influence they identified for themselves. After listing the circle of
influence at work or school, students can also talk about the circles of people who might
influence them in their professional, social, or family activities. Key questions for this
discussion are, what are the common themes in the students’ circles of influence? When
and how could the circle idea be applied to influence someone? How might it be
misapplied and backfire on your effort to influence another?
Leadership development: cases for analysis
I. The Suarez effect
Synopsis
After weeks of speculation, interviews, on-site visits by top execs, and endless waiting, a
decision on the new CIO was to be made and announced by CEO Blount this week during the
The word politics was odious to Pat Talley, and he considered office politics a waste of time.
However, at company gatherings such as this, he also carried a slight chip on his shoulder, aware
that, despite his importance to the company, he was only on the periphery of this group—not
excluded, but not really included either. The significance of this particular meeting—and now
Case questions and answers
1. Who do you think the CEO should appoint as CIO? Why?
Students’ answers may vary. Most of them say that the CEO should appoint Carmelita
Suarez as CIO as she is a natural relationship builder and seems like a charismatic leader
2. Is Pat sabotaging his career by thinking of relationship building as “office politics” that
takes the focus away from day-to-day work? What advice would you give Pat, who is not a
natural relationship builder?
Students’ answers may vary. Pat is sabotaging his career by thinking of relationship
building as “office politics”. One might advice Pat to be politically skillful. Politically
skillful leaders strive to understand others’ viewpoints, needs, desires, and goals, and use
their understanding to influence people to act in ways that help the leader accomplish his or
3. What sources of power do Pat and Carmelita seem to use in the company? Which person
do you believe will be more influential as CIO? Explain.
Students’ answers may vary. Pat uses his technical expertise and his long tenure and
experience in the company as his sources of power. He holds expert power, in which a
leader’s power results from the special knowledge or the skill he holds regarding tasks
performed by followers. Carmelita is politically skillful and a natural relationship builder.
She holds referent power, which is a kind of power that comes from a leader’s personality
II. Waite Pharmaceuticals
Synopsis
Amelia Lassiter is chief information officer at Waite Pharmaceuticals, a large California-based
company. After about eight months on the job, Lassiter suggested to company president James
Hsu that Waite implement a new global knowledge-sharing application that promises to cut
development time and costs in half. Hsu presented the idea to the board of directors, and
everyone agreed to pursue the project. He has asked Lassiter to investigate firms that could assist
Waite’s IT department in developing and implementing a global knowledge-sharing application
that would be compatible with Waite’s existing systems. Hsu explained that he wants to present
the information to the board of directors for a decision next month.
executives, and the IT staff to explain their services and give demonstrations. Lassiter had
suggested that the board of directors attend these presentations, but Hsu said they wouldn’t have
the time and he would need to evaluate everything and make a recommendation to the board. At
the end of these meetings, Lassiter prepared a final report evaluating the pros and cons of going
Case questions and answers
1. How would you explain the board’s selection of Standard Systems?
The board deferred to Hsu’s recommendation because as president, he has legitimate
power, the authority granted from a formal position at Waite. Certain rights,
2. Discuss the types, sources, and relative amount of power for the three main characters in
this story.
Hsu has legitimate power because he is the president and his sources of power include
control over information. Legitimate power is the authority granted from a formal position
in an organization.
Lassiter has expert power. She is the chief information officer and the knowledge-sharing
application was her idea. She has done the research on the three firms and knows their
Standard and can distribute her research to others, although she risks making an enemy out
of her boss.
Lee has reward power and coercive power. She rewards her boss with deferential treatment
and makes him feel important while condescending to other organizational members. A
quid pro quo arrangement is implied because Standard Systems is owned by her uncle. If
3. How might Lassiter have increased her power and influence over this decision? If you
were in her position, what would you do now?
Lassiter could increase her power by using the following tactics. She could gain allies,
taking time to talk to other department heads within Waite to explain problems and
describe their point of view. She could use assertiveness by being clear about which firm
Digital Homework Grid
Case Assessment Questions
Topic
Category
Thomas is a marketing
manager at Diamond Inc. He
needs to ensure that his team
achieves its monthly
research target. To achieve
this, he motivates his
employees to perform better
by offering incentives such
as dinner coupons and family
holidays. However, he does
not have the power to take
action against those do not
Leadership Challenge #6
Perform
meet their targets. In the
given scenario, which of the
following leader powers
does Thomas possess?
a. Referent power
b. Reward power
c. Soft power
d. Expert power
Linda is a team leader at
Golden Sun Corp. She holds
the authority to decide
whether an employee gets
his or her monthly incentive.
Also, she can fire an
employee for misbehavior or
poor performance. In the
given scenario, which of the
following leader powers
does Linda possess?
a. Referent power
Leadership Challenge #6
Perform
Dorothy leads the
Development Team at Tryst
Corp. She has been always
praised for her eye for detail
and strong assessment skills.
Dorothy is highly valued in
the organization due to her
extensive knowledge on the
subject matter. Her co-workers
solicit her opinion before
taking any important
decisions. In the given
scenario, it is most likely that
Dorothy possesses _____.
a. expert power
b. referent power
c. coercive power
d. hard power
Leadership Challenge #6
Perform
Homework Questions
Topic
Category
A student has been asked to
Leadership Challenge #2
Connect
identify the distinguishing
characteristics of charismatic
and noncharismatic leaders.
Listed below are the various
characteristics of both types of
leaders. Drag and drop the
options below into the
illustrated box categorizing
them into charismatic and
noncharismatic leaders.
Answer Options: Weak
articulation of goals and
motivation to lead/ Shared
perspective and idealized
vision make leader likeable
Charismatic
leaders
Noncharism
atic leaders
Which of the following is an
example of charismatic
leadership?
Leadership Challenge #2
Perform
a. As a sales manager,
Christopher uses punishments
to control his team.
b. As a team lead, Frederick
uses an exchange process to
Which of the following
statements is true of
transactional leadership?
a. It is characterized by the
ability to bring about
significant change in both
followers and the
organization.
b. It is based on the personal
values, beliefs, and qualities of
the leader.
c. It involves striving to bring
out the best in followers
instead of strictly controlling
people.
d. It focuses on the present
and excels at keeping the
organization running smoothly
and efficiently.
Leadership Challenge #3
Connect
Which of the following is an
example of transactional
leadership?
a. As a manager, Evans sets
strict deadlines and imposes
his rules on his team.
b. As a team leader, Frederick
uses an exchange process to
Leadership Challenge #3
Lead
members of her team.
Which of the following is an
example of transformational
leadership?
a. As a manager, Maria pays
attention to each individual’s
need for growth and
development.
b. As a team leader, Frederick
uses an exchange process to
lead his team members.
c. As a manager, Evans uses
deception, if necessary, to
ensure the safety of his
organization.
Leadership Challenge #3
Lead
You are studying the various
types of leadership. Listed
below are a couple of
scenarios pertaining to
leadership types. Drag and
drop the options below into
the illustrated box
categorizing them into
scenarios or types of
leadership.
Answer Options: As a sales
manager, Christopher rewards
his team members when they
perform well but punishes
Leadership Challenge #2
Leadership Challenge #3
Leadership Challenge #4
Leadership Challenge #5
Lead
SCENARIO
S
Types of
Leadership
Which of the following
statements is true of
Machiavellian-style leaders?
a. They assume that people are
fickle and greedy.
Leadership Challenge #5
Connect
Which of the following is a
similarity between
coalitional leaders and
Machiavellian-style leaders?
a. They focus on reaching out
and working with others.
Leadership Challenge #5
Connect
Which of the following is an
example of Machiavellian-
style leadership?
Leadership Challenge #5
Perform
Christopher uses a system of
punishments to control his
team.
b. As a manager, Rodriguez
has an emotional impact on
his team members.
You have studied about the
different powers of a leader
in an organization. Listed
below are types of powers of
a leader and their definitions.
Drag and drop the options
below into the illustrated box
categorizing them into
powers or its definitions.
Answer Options: Based on a
leader’s ability to punish or to
recommend
TYPES OF
POWERS
DEFINITIO
NS
Leadership Challenge #6
Connect
