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Chapter 2 to edit
Chapter Number
Part One: Individuals As Leaders

Leadership Traits
and Ethics

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Learning Outcomes
1) Explain the universality of traits of effective leaders.
2) Describe the Big Five personality dimensions.
3) Discuss why the trait of dominance is so important for
managers to have.
4) State how the Achievement Motivation Theory and the
Leader Motive Profile are related and different.
5) Identify similarities and differences among Theory X and
Theory Y, the Pygmalion effect, and self-concept.
6) Describe how attitudes are used to develop four leadership
styles.
7) Compare the three levels of moral development.
8) Explain the stakeholder approach to ethics.
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Personality and Traits
• Traits are distinguishing personal
characteristics.
• Personality is a combination of traits that
classifies an individual’s behavior.
> Developed based on genetics and environmental
factors.
> Understanding personalities helps explain and
predict others’ behavior and job performance.

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Personality Profiles
• Personality profiles identify individual
stronger and weaker traits.
> Usage can increase self awareness.
> Helps us to change our behavior, improve
relationships and build leadership skills.
• Work Application.
> Used to properly match the worker and the job.
> Used as a means of predicting job success.

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The Big Five Correlates With Leadership
The highest correlation with
leadership was surgency Surgency 0.31

Conscientiousness 0.28

Openness to experience 0.24

Agreeableness 0.08

Adjustment Adjustment was negatively


-0.24
correlated with leadership

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Derailed Leadership Traits
• Derailed executives had prior success and
were expected to go far, but:
> They were passed over for promotions,
> Fired, or forced to retire early.
• Overall, the problem is poor human
relation skills.

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Exhibit 2.1
Why Executives Are Derailed

• They used a bullying style viewed as intimidating,


insensitive, and abrasive.
• They were viewed as being cold, aloof, and arrogant.
• They betrayed personal trust.
• They were self-centered and viewed as overly
ambitious and thinking of the next job.
• They had specific performance problems with the
business.
• They overmanaged and were unable to delegate or
build a team.
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Leadership Trait Universality
In applying trait theory, remember:
> Many successful leaders have the Big Five
traits, but
o There is no agreed-upon list of traits leaders need for
success,
o There are always exceptions to all the traits, and
o You don’t need all the traits to be a successful leader.

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Exhibit 2.2
Big Five Including Traits
Of Effective Leaders
The Big Five Model of Personality categorizes traits into the
dimensions of surgency, agreeableness, adjustment,
conscientiousness, and openness to experience.

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Surgency
The surgency personality dimension includes
dominance, extraversion and high energy with
determination.
> Dominance – successful leaders are assertive,
want to be managers and to take charge.
o The dominance trait affects all other traits.
> Extraversion – extraverts are frequently selected
for leadership positions.
> High energy with determination – leaders work
hard toward goals, and create energy in others.
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Agreeableness
The agreeableness personality dimension includes
traits of sociability and emotional intelligence.
> Sociability/Sensitivity:
o Strong sociability personality types are friendly,
courteous, easy to get along with and diplomatic.
o Sensitivity means understanding group members as
individuals.
> Emotional Intelligence:
o The ability to work well with other people.
o An offshoot of IQ is EQ – helps identify future leaders.

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The Four Components of EQ

• Relates to being conscience of your emotions.


Self-Awareness • The cornerstone of all insight.

• Relates to the ability to understand others.


Social Awareness • Empathy is the ability to understand others’ views.

• Relates to the ability to control disruptive emotions.


Self-Management • Leaders don’t let negative emotions interfere.

Relationship • Relates to ability to work well with others.


Management • Dependent on other three EI components.

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Discussion Questions

• Would you predict that a person with a


strong agreeableness personality
dimension would be a successful computer
programmer?
> Why? Or why not?

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Adjustment
The adjustment personality dimension includes
traits of emotional stability and self-confidence.
> Emotional stability – adjustment is on a
continuum between stable and unstable .
o Relaxed, secure and positive (stable) versus nervous,
insecure, negative and hostile (unstable).
 Narcissism is related to being unstable and on the increase.
> Self-confidence – continuum from strong to weak.
o Self-confidence builds as goals are set and achieved.

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Conscientiousness
The conscientiousness personality dimension
includes traits of dependability and integrity.
> Dependability – a continuum from responsible
to irresponsible, dependable to undependable.
o Highly dependable people get the job done and are
characterized as loyal and committed.
> Integrity – a continuum between being honest
and ethical or not.
o Integrity is the foundation of trustworthiness.

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Openness
The openness-to-experience personality
dimension includes traits of flexibility,
intelligence and internal locus of control.
> Flexibility – refers to the ability to adjust to
different situations and change.
> Intelligence – refers to cognitive ability to think
critically, to solve problems and make decisions.
o IQ, EQ, and I got a clue – all 3 needed for success.
> Internal locus of control – internalizers believe they
control their fate and that their behavior directly
affects their performance.

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Effective Leader Personality Profiles
David McClelland’s trait theories have strong
research support and great relevance to the
practice of leadership.
• Achievement • Leader Motive
Motivation Theory Profile Theory
> Identifies three major > Identifies the
traits, which McClelland personality profiles of
calls needs. effective leaders.

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Achievement Motivation Theory
Achievement Motivation Theory attempts to
explain and predict behavior and performance
based on a person’s need for achievement,
power, and affiliation.
> Behavior is motivated by a desire to satisfy
needs.
> Needs are based on personality and developed
as we interact with the environment.
> All people possess these three needs, but to
varying degrees.
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Need For Achievement (n Ach)
• The concern for excellence in
accomplishments through individual efforts.
• High n Ach is categorized as the Big Five
dimension of conscientiousness.
> People with high n Ach are goal oriented, take
moderate risks, desire concrete feedback and
work hard.
• 10% of the population have a very ‘strong’
dominant need for achievement.
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Need For Power (n Pow)
• The concern for influencing others and
seeking positions of authority.
• High n Pow is categorized as the Big Five
dimension of surgency.
> People with high n Pow:
o Want to control the situation and others,
o Enjoy competition (if they can win),
o Are willing to confront others, and
o Seek positions of authority and status.

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Need For Affiliation (n Aff)
• The concern for developing, maintaining,
and restoring close personal relationships.
• High n Aff is categorized as the Big Five
dimension of agreeableness.
> People with high n Aff:
o Seek close relationships and desire to be like others,
o Enjoy social activities and seek to belong, and
o Tend to avoid management.

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Leader Motive Profile Theory
Leader Motive Profile Theory attempts to
explain and predict leadership success based
on a person’s need for achievement, power,
and affiliation.
> McClelland found that effective leaders
consistently have the same motive profile.
> And that Leader Motive Profile has been found
to be a reliable predictor of leader effectiveness.

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Leader Motive Profile (LMP)
The Leader Motive Profile (LMP) includes a
high need for power, which is socialized; that is
greater than the need for affiliation and with a
moderate need for achievement.
Need for
Affiliation

Need for Need for


LMP
Power Achievement

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Power and Socialized Power
• Power is essential to leaders because it is a
means of influencing followers.
• McClelland said power is neither good nor bad.
• Effective leaders use socialized power, or
power used to help oneself and others.
> Socialized power includes the traits of sensitivity
to others and stability with good EI relationships.
o Socialized power is the Big Five adjustment dimension.

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Achievement
• To be effective, leaders generally need a
moderate need for achievement.
• They have high energy, self-confidence, and
openness to experience traits, dependable.
> Conscientiousness – Big Five dimension.
• Those with a high need for achievement
who do not seek leadership, may suffer
from personalized power and derailment.

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Affiliation
• Effective leaders have a lower need for
affiliation than power.
• Leaders with a high n Aff are often
reluctant to play the bad-guy role.
> Disciplining followers.
> Influencing followers to accept change.
• Recall that effective leaders do have
concern for followers – socialized power.

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Exhibit 2.3
Combining The Big Five
With Traits And Needs

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Leadership Attitudes
• Attitudes are positive or negative feelings
about people, things, and issues.
• Everyone has positive and negative
attitudes, but:
> Being positive or negative is a choice, and
> Successful leaders have positive, optimistic
attitudes.

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Theory X and Theory Y
• Douglas McGregor classified attitudes or
belief systems, called assumptions as
Theory X and Theory Y.
• Theory X and Theory Y attempt to explain
and predict leadership behavior and
performance based on the leader’s attitude
about followers.

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Theory X versus Theory Y
• Managers with Theory • Managers with Theory
X attitudes: Y attitudes:
> believe employees > believe employees
dislike work, like to work,
> have a negative > have a positive view
view of employees, of employees,
> display coercive, > display participative
autocratic leadership leadership using
using threats and motivation and
punishment. rewards.
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The Pygmalion Effect
• The Pygmalion effect proposes that
leaders’ attitudes toward and expectations
of followers, and their treatment of them,
explain and predict followers’ behavior and
performance.
> In business, expectations are stated as
objectives and standards.
> Treating employees well and getting them in a
good mood as they start their day can have a
huge impact on performance.

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Discussion Question

• In text examples related to the Pygmalion


effect, Lou Holtz calls for setting a higher
standard.
> Have the standards in school, society, and work
increased or decreased over the last five years?

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Self-Concept
• Self-concept refers to the positive or negative
attitudes people have about themselves.
> If you have a positive view of yourself, you likely
have the positive self-confidence trait.
• Self-efficacy is the belief in your own
capability to perform in a specific situation.
> Based on your self-concept and self-confidence.
> Henry Ford said: “If you think you can, you can; if
you think you can’t, you can’t.”

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Developing a More Positive Attitude
and Self-Concept
• Realize there are few, if any, • Set and achieve goals.
benefits to negative, • Focus on your success; don’t
pessimistic attitudes about dwell on failure.
others and yourself. • Don’t belittle
• Consciously try to have and accomplishments or compare
maintain a positive, optimistic yourself to others.
attitude. • Accept compliments.
• Cultivate optimistic thoughts. • Be a positive role model.
• If you catch yourself • When things go wrong and
complaining or being you’re feeling down, do
negative, stop and change to something to help someone
a positive attitude. who is worse off than you.
• Avoid negative people.

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Exhibit 2.4
Leadership Styles Based on Attitudes

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Ethical Leadership
• Ethics are the standards of right and
wrong that influence behavior.
> Members of organizations face moral issues.
> Leaders set the ethical climate and are
responsible for employee behavior.
> Government laws help keep business honest.
o Sarbanes-Oxley Act of 2002.
o AACSB says ethical understanding is an important
competency.

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Does Ethical Behavior Pay?
• Yes – direct link to bottom-line
performance.
• Unethical decisions have led to:
> dramatic costs in fines and reputational damage,
> imprisonment, or
> financial damage to society.
• Being ethical is difficult, but it has rewards.
• There is a direct link between being ethical
and being an effective leader.
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Why Do Good People Do Bad Things?
• It can be incredibly tempting to be
unethical.
> We respond to ‘incentives’ which manipulate us
to behave ethically or unethically.
> Find the right incentives.
• For most people unethical behavior starts
with the temptation of personal gain.
> Without punishment, unethical behavior
continues and even escalates.
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Factors Affecting Ethical
Behavior

Personality
Moral
Traits and The Situation
Development
Attitudes

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Personality Traits/Attitudes Factor
• Ethical behavior is related to individual
needs and personality traits.
• Personality alone is not a good predictor
of unethical behavior.
> Leaders with surgency can use power for
personal benefit or use socialized power.
o Only one is ethical.
• People with positive attitudes about ethics
tend to be more ethical.
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The Moral Development Factor
• Moral development refers to understanding
right from wrong and choosing to do the
right thing.
• Three levels of moral development:
1) Postconventional,
2) Conventional, and
3) Preconventional.
• Most people behave at level 2, but we can
improve our character development.
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Exhibit 2.5
Levels of Moral Development

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Exhibit 2.5
Levels of Moral Development

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Exhibit 2.5
Levels of Moral Development

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The Situation Factor
• Highly competitive and unsupervised
situations increase the odds of unethical
behavior.
• Unethical behavior occurs more often
when:
> There is no formal ethics policy or code of
ethics, and/or
> When unethical behavior goes unpunished or
when unethical behavior is rewarded.
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Justifying Unethical Behavior
Moral justification is the • Advantageous
thinking process of comparison – “I did it
rationalizing unethical once, they do it all the
behavior . time”.
• Higher purpose – “It’s for • Disregard or distortion of
a greater good”. consequences – “I’ll just
• Displacement of get a slap on the wrist”.
responsibility – “I was • Attribution of blame –
only following orders”. “It’s their fault”.
• Diffusion of responsibility • Euphemistic labeling –
– “Everyone does it”. cosmetic words sound
acceptable.
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Discussion Questions

• Of the justifications listed in the text,


which do you think is used most often?

• Can ethics be taught and learned?

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Guides to Ethical Behavior
• Golden rule:
> Lead others as you want to be led.
• Four-Way Test:
> When making a decision, ask yourself:
1) Is it the truth?
2) Is it fair to all concerned?
3) Will it build goodwill and better friendship?
4) Will it be beneficial to all concerned?

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Codes of Ethics
• Codes of ethics state the importance of
conducting business in an ethical manner
and provide guidelines or standards for
ethical behavior.
> Also called Codes of Conduct.
> Most large businesses have written codes of
ethics.

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Stakeholder Approach to Ethics
• Under the stakeholder approach to ethics,
one creates a win-win situation for
relevant parties affected by the decision.
> Stakeholders include everyone affected by the
decision.
> If you are proud to tell relevant stakeholders
your decision, it is probably ethical.
> You can’t always create a ‘win’ for everyone,
but you can try.

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Discernment and Advice
• Making immediate decisions increases the
odds of unethical behavior.
• Contemplating the decision and asking for
advice leads to ethical behavior.
• Reluctance to ask advice and continual
justification means the decision may not
be ethical.

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Key Terms
• achievement motivation theory • moral justification
• adjustment personality • openness-to-experience
dimension personality dimension
• agreeableness personality • personality
dimension • personality profiles
• attitudes • Pygmalion effect
• big five model of personality • self-concept
• conscientiousness personality • stakeholder approach to ethics
dimension • surgency personality dimension
• ethics • theory X and theory Y
• leader motive profile (LMP) • traits
• leader motive profile theory

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