LEADERSHIP AND ETHICAL DECISION-MAKING 1

Leadership and Ethical Decision-Making

MT

INTD670-1702-CS32-02

Instructor: Lewis

Date: March 21, 2017

Individual Project: Final Paper

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Abstract

Both leadership and ethics have been discussed in current times and when we look back

at history we try to understand why there has been an increasing amounts of business scandals

that have involved unethical practices that have resulted in the collapse of high reputable

organizations. This paper will discuss how leadership uses ethics in an organization and how it

effects our personal and workplace lives, and in the communities and societies that we live in. It

will also discuss the various decision making and problem solving models leaders can use to

make sound decisions and how to implement and manage organizational changes, resolve

conflicts, social responsibilities, business ethics and establish different stages of

communications. The final discussion will provide an understanding of Millennials in the

workplace.
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Leadership and Ethical Decision-Making

Introduction

Where was the ethical leadership when news broke out of the business scandals that

involved such high emulated and then reputable corporations such as, Goodyear, Avon, Enron,

WorldCom, and Siemens. In our current culture, there is no room for unethical leadership.

However, the unethical leadership from these organizations was so overwhelming and the

consequences they faced prevented these organizations from rebounding. A closer look at

conflict in the workplace will give an understanding on the different types of conflicts and ways

to address each one. As environments change the need for organizational change management

can help organizations make a successful change to stay competitive in their market with their

products and services and establishing different communicating stages that employees can use to

provide feedback on the change processes. Stress in the workplace comes from problems that

are results of poor decision making. Using a more rational approach can reduce stress. When

leaders lose their morality and values in the work place they also lose the trust of their employees

and have a hard time establishing what is right and what is wrong according to business ethics.

Business ethics provides a way to handle ethical issues in the organization that can address the

right from the wrong and handle small problems before they become too large to handle.
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Leadership & Ethics

Not everyone was born to lead and leaders at one time, early in their lives were followers.

The word Leadership is not about labeling or branding its about innovation, impact,

influence, and inspiration (Stincelli, 2015). My understanding of an individual in a leadership

or management position is that they come from different backgrounds and the roles they play in

an organization are also different but one can agree that their skills are very important to the

organization. Very few do not know they possess leadership skills until a crisis or conflict

situation arises that requires the ability to motivate others and build their confidence to trust and

respect you. Organizations have different levels that require different leadership approaches and

individuals must be able to identify these approaches to effectively lead their groups. The four

style approaches that the class discussed were; Directing, Coaching, Supporting, and Delegating.

The directing style normally includes a difficult situation that requires a leader to maintain a

level head and use knowledge and experience to handle the situation. With coaching style one

must feel comfortable using a great deal of hands-on approach and patience to address

weaknesses that employees need to improve on. With supporting style a leader plays the role

behind the scenes, waiting to provide motivational support and instill confidence to workers

that lack self-confidence and struggle in their job performances. With delegating a leader can

place more responsibilities on workers and less on themselves.

Conflict Resolution

There is nothing more damaging in an organization that disrupts good order and

discipline within the chain-of-command as conflict. Workplace conflict is created when

employees or managers create a situation that is incompatible or mutually exclusive when the
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goals or values of others are not respected (Editorial Board, 2015). The process discussed in

class required an effective means of understanding the type of conflict and finding the right

technique style to deal with the conflict. The five techniques for dealing with conflict that were

discussed were; competitive (using power mode), accommodating (building relationship),

avoiding (changing subject), collaborating (win-win situation), and compromising (bargaining).

The goal to dealing with conflict involves certain guidelines that effectively communicate

solutions to de-escalate the conflict. The most important one to follow is not to address both

parties in the heat of the moment. Learning to identify conflict, using guidelines to address it,

communicating both verbally and non-verbally are the results of using conflict resolution.

Individual that can resolve their own conflicts build a stronger working relationship, work stress

is reduced, and most importantly employees will develop conflict resolution skills that they can

carry for everyday life and feel more empowered in daily decision making.

Change Management Model and Tools

Economic changes bring growth and prosperity and organizational change is about

management modifying its current organizational structure to those economic changes that allow

them the ability to adapt and survive by continuing to make a profit and staying competitive.

During our class discussion on change management models we addressed that the reason an

organization should implement a change in their process is to stay abreast with those economic

changes. Many organizational environments have strategies they like to follow to make changes

to their organization. Furthermore, we learned that there are two types of changes an

organization can make. The first one is making a strategic change that deals with a more broader

area in an organization such as a policy change; going after a certain market, or merging with
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another company. The second one is with operational change and we learned this change deals

with implementing a change to correct or fix a certain work processes found in one of the

companys major departments that is struggling in maintaining effectiveness and efficiency. To

help implement a new organizational change, in our group discussions we addressed that certain

change management models like using, John Kotters Model of change which its eight-step

process, Kurt Lewins Three Step Process of unfreezing-change-refreezing, and McKinseys 7-S

Model (Editorial Board, 2015). These three change management models can be used to provide

significant changes to any organizational system that will even address the needs and

considerations of organizational stakeholders. However, we also learned that implementing and

following a new change in the organization brings an uneasy feeling and resistance to change.

Many organizations struggle with a new change and often fail at implementing those new

changes which then resort back to the old way of doing business. Unsuccessful organizations

do not seem to understand the importance of breaking away from old practices; they produce the

same results which is why organizations must ensure transformational change is managed to

ensure success.

Communicating Change & Ethics in Change Management

It was well discussed that the key element to ensuring business success continues after

implementing a successful organizational change is by managing the new change and

establishing an effective communication system. This system is important to better understand

how employees are adapting to the new change and allow ways to communicate up the chain

with any issues that the new change has brought. Earlier in our discussions it was mentioned that

as economic change takes place organizations must also change. This is done by making
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changes within their own organization. In todays business environment companies are required

to implement changes and manage those new changes to survive and stay competitive.

Stakeholders are aware that an effective communication plan must also be implemented into the

new change and are aware that the early stages of change management are extremely dangerous

to the organization because they fear employees will resort to old habits or worse, practice

unethical procedures. Three types of communication that can be applied to any organization are

with organizational, formal and in-formal communication. Organizational involves with

exchanging information between two or more people and formal follows the path of

downward, upward, and lateral communication within the organizational chart and in-formal is

more personal that involves work-related small talk (Editorial Board, 2015). These forms of

communicating allow for organizational leaders and managers to use transparency [emphasis

added]to allow others to see clearly, and integrity [emphasis added] in being informed in the

shaping of all those involved with the organization.

Decision Making & Problem Solving

Before coming to class, we all had to decide as to what time to leave the house, what to

wear, and what route to take and avoid traffic. I learned that daily we all make decision but

never take the time to consider if that decision was a good one or a bad one. The outcome that

we experience in our decision-making process, good or bad, helps to determine if we made the

right decision or not. In todays class, we discussed the Rational Model and how it involves

using our brains (cognitive) to each of the six-step process involved in decision making. Every

day requires making decision to solve problems at the organizational level and personal. By
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using the rational model approach (figure 1) can help us to ensure we have gathered as much

information to make a sound decision to solve our problems.

Figure 1.

(flatworldknowledge.com)

The series of steps, if followed as the chart shows, begins with addressing there is a

problem, at mid-point you evaluate the alternatives, and end with evaluating the decisions. By

using this model to help in decision making processes you can disregard any barriers that can

affect making a sound decision for oneself or as a team. The barriers we discussed were with
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groupthink, bias, bureaucracy and culture crisis barriers. All these barriers have one thing in

common and that is to disrupt any cognitive critical thinking in a teams ability to challenge,

present alternatives, and express opinions that can lead to disasters. In one case, the Bay of

Pigs gave us a clear understanding how groupthink can prevail when majority group needs to

conform with what has already been laid out. A good example was with then, President

Kennedys decision to support the CIAs plan despite the concerns of some of his own

administration to go forward with the plan to attack Cuba with the Bay of Pigs Invasion on

April of 1961 (History.com). What I learned from this is that when one person does not speak

their mind it gives the illusion that they approve what others are saying. My understanding of

poor decision making is that it often leads to situations of uncertainty.

Decision Making & Ethics

This weeks takeaways included ethical decision making, ethical theories, and millennial

generation. The classroom reviewed and discussed the various decision making processes and

the ethical decision-making facets that help make ethical decisions. These decisions are of great

importance as they have the power to provide leaders and managers the ability to make key

decisions that will eliminate unethical alternatives. Leaders daily must make decision that

impact internal and external organizational leaders that address issues of a personal and

professional nature. However, how does a leader choose what decision style to use when a group

is involved? Decision making involves making a cognitive process which results in the

selection of a course of action (Liphart, 2014). In other words, leaders must know the

differences between analytical, conceptual, agony, and intuitive decision making styles. Each

one has its own indicator that can help to process the gathered information to which one of these
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styles will be used by managers or leaders to make an ethical decision. In addition, it was

discussed that Millennials are very technologically incline to work alongside organizations that

drive change. They want a strong leadership and management structure in the workplace and

many want to be told what to do. Experts say that Millennials will represent 75 percent of the

workforce by 2030 (Fromm, 2015). With this knowledge, it has been made clear to me that

Millennials do not get the credit they deserve. Yes, it is true they all received trophies just for

participated in a team sport and that individual effort was not a key factor. However, as they get

older and start thinking about marriage and having kids they will put in the effort to work hard

and be recognized for their contributions to the organization and receive their trophy of lifes

accomplishments.

Business Ethics

On this weeks class discussion and review we went over some very important questions

on how organizations regulate their own internal processes and procedures that incorporate

ethical standards in business. So, what is business ethics? One that comes to mind is business

ethics is defined as the study and examination of moral and social responsibilities which

connect with current organizational practices on decision making (Dictonary.com). Many try to

understand business ethics and the methodologies used for governing the company to implement

policies, laws, and regulations from the highest of levels to the lowest on the chain. To really

understand what business ethics means one must look at other factors and try to understand how

they work to really get the definition. Some personal key takeaways that were taken in during

this discussion that helped with my understanding were in the field of corporate governance,

roles of the Board of Directors, organizational and social responsibilities, and instrumental and
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social contract approaches. My takeaway of corporate governance is that its there to increase

corporate accountability and not only address crisis situations but to learn from them and

implement a change process to ensure that it never happens again. Take what happened with

Enron back in 2001. Enron Corporation was an American energy company that was based out of

Houston, Texas and at one point was the worlds biggest energy trader (Barboza, 2002). The

result of Enrons failures makes for a great groupthink discussion for group members to all agree

on the importance of having strong corporate governance in place. So, who was to blame for the

fall of Enron? Was this the work of solely one person or should the entire Board of Directors

and the CEO be to blame? Boards of Directors and CEOs are constantly putting out fires as

they are the ones in the front of the line when a crisis arises. These leaders share the

responsibility of confronting all crises and implementing a strong system that instills ethics and

obligations. These responsibilities will be either supported by organizational stakeholders or

turned down because they do not align with their own interests. Furthermore, the scope of

ethics, responsibilities and obligations are not only shared with stakeholders but with external

organizations like clients, suppliers, communities and government. To really understand the

meaning of business ethics and how it relates to business responsibilities a clear and

understanding of organizational and social responsibilities theories must be learned. My

takeaway of organizational responsibilities is that companies cannot efficiently function to

ensure benefits reach the greatest amount of people all the times. This concept of organizational

responsibility can have a different meaning from one organization to another however; the final

responsibility is always the same, to increase profits for its shareholders. My takeaway of

corporate social responsibility helped me to understand that each theory; Ethical, Economic, and

Legal responsibilities provide a business hierarchy various responsibilities that can be applied to
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having integrity, making a profit or meeting all legal obligations that can benefit everyone in the

organizational structure.

Conclusion

The unethical actions of corporations like Goodyear, Avon, Enron, WorldCom, and

Siemens clearly showed the world that if organizations stray away from ethical values,

disregarding code of conduct, and deception results not just losing ones job or career. Everyone

that had a hand in those companies from employees, suppliers, communities, vendors,

government, stakeholders, lost more than a job or career. As stated earlier in this paper, there is

no room for any type of unethical practices in our culture today. Leaders and managers must

allow their decision to follow their ethical values and those of their organizations. What is at

stake here involves more than just themselves, its employees, shareholders, customers and

communities. This paper explained in detail on the various decision making models that can be

used to address conflicts and find alternative solutions to solving those conflicts. It also

addressed the importance of organizational changes to stay competitive, communicating using

various stages, organizational and social responsibilities that are involved with business ethics,

and how Millennials bring a new breath of life and their way of thinking into the workforce that

when combined with the other generations will take leadership and ethics to a new level.
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References

Stincelli, E. (2015). The Four I's of Leadership: Inspiration, Influence, Innovation, and Impact.

Retrieved from http://www.iris.xyz/leadership/four-leadership-inspiration-influence-

innovation-and-impact

Editorial Board. (2015). Leadership and ethical decision making. Words of Wisdom LLC

Portolese, L., Upperman, P., & Trumpy, B, (2017). The Art of Leadership and Supervision, v.

1.0. Retrieved from

http://catalog.flatworldknowledge.com/bookhub/reader/12235?e=portolesediasleadsup_1

_0-ch08_s01

Bay of Pigs, (n.d.). History. Retrieved from http://www.history.com/this-day-in-history/the-bay-

of-pigs-invasion-begins

Liphart, J. (2014). Decision Making Styles: How Do You Decide? Retrieved from

https://blog.udemy.com/decision-making-styles-2/

Fromm, J. (2015). Millennials In The Workplace: They Don't Need Trophies But They Want

Reinforcement. Retrieved from

https://www.forbes.com/sites/jefffromm/2015/11/06/millennials-in-the-workplace-they-

dont-need-trophies-but-they-want-reinforcement/#5a6bba9c53f6

Business Ethics, (n.d.). Dictionary. Retrieved from http://www.dictionary.com/browse/business-

ethics

Barboza, D, (2002). ENRON'S COLLAPSE: THE OFFICE; Morale and Occupancy Are Low At

the Headquarters in Houston. Retrieved from

http://www.nytimes.com/2002/01/24/business/enron-s-collapse-office-morale-

occupancy-are-low-headquarters-houston.html