- The concept that is found in all three sources is ethical leadership.
- Ethical leadership is an important aspect in every organization as it guides and directs staff towards the attainment of the goals. It is crucial to an enterprise because it brings such benefits as an increase in productivity, sales, and profit. The leaders at Enron misappropriated the company's resources by rewarding themselves with high salaries. The unethical organizational culture was to blame for the debacle of Enron Corporation. Enron Corporation, which was a very successful energy company in the United States, collapsed following an unethical-corrupt culture.
- The three sources have emphasized that individuals have unique needs as well as cultural backgrounds, and therefore, conflict is inevitable as far as organizational life is concerned. An organization can be rigorously damaged as a result of a toxic senior management team. A grandiose Chief Executive Officer can indeed drive away from the organization's best people, make terrible decisions, and also divert the energy of the employees.
- Enron Corporation represents a case whereby the senior managers made disastrous decisions, and in turn, embezzled funds. The greed led the top managers to misappropriate the organization's funds, and this eventually caused the corporation to collapse. Organizations require to aggressively deal with toxic managers' problems as quickly as possible to ensure that they do not fail. Some of the key steps that can be taken to change the toxic culture in organizations include: (a) ensuring that the senior managers do not engage in unethical, rigid, and aggressive behavior; (b) ensuring that the senior managers give feedback with regards to their performance; (c) coaching the corrupt leaders; (d) refraining from employing and promoting the toxic leaders; (e) finally, firing those managers who are deemed to be toxic.
The three sources emphasize that ethical leadership is the foundation for successful organizations. A business may have all vital resources, including land, labor, and capital, but if they are unethically managed, the company is deemed to fail.
The three sources agree that leadership contributes to the success and failures of organizations, and it also plays an important role in the area of employee performance and organizational behavior. Businesses today require active and effective leaders who have an idea and comprehend the difficulties in the rapidly changing global business environment. Leadership is the moral and intellectual capability to visualize and work out what is best for the organization and its workers. Furthermore, effective leadership and good management assist to improve teamwork and integration of individuals and group goals.
Achieving organizational success, goals, and objectives depends on the leader of the organization and the leadership style being adopted by the leader. Similarly, when companies adopt suitable leadership styles, it enables leaders to affect the job productivity and satisfaction of employees. A good leader can be seen as someone who has a direction and leads the employees to achieve efficient and effective organizational goals and objectives.
The relationship between leaders and employees in a firm determines how effective and productive the organization would be. The connection between leaders and employees in the enterprise grows over time through a series of conversations, try-outs, and interactions. Leadership styles can be described in various ways. It refers to the fundamental requirements of a leader that motivates his/her actions. Leadership styles can be seen as the manifestation of the dominant pattern of behavior of a leader. It can also be referred to as a procedure, through which individuals or groups influence others to achieve group goals and objectives.
However, the three sources Brown 2007, Grojean 2004, and the video have a different perspective as far as ethical leadership is concerned. According to Brown (2007), misconceptions about ethical leadership exist. For instance, some people believe that principled leaders should not be worried about how they are perceived by their followers. Others believe that workers do not require guidance from their leaders. Another misconception that exists is that leaders have legal but not moral responsibilities. Many leaders also believe that ethics and organizational success are not related. Moreover, others hold the view that what organizational leaders pursue in their individual lives is inappropriate.
Brown (2007) says that an organizational leader should clarify the strategic intent by setting a clear vision, build a strong organization. As a result, the leaders are to come up with a common mission that drives both management and employees, and also shape the organizational culture through building values and beliefs that shape the company positively. In doing so, they will be able to avoid pitfalls (Brown, 2007).
As Grojean, Resick, Dickson, and Smith (2004) assert, the success of organizations in the modern business environment is strong managerial leadership of the senior leadership team. According to scholars, leaders have the role of driving the organizational culture. The process of leadership is the use of non-coercive influence to direct and coordinate the activities of the members of an organized group towards the accomplishment of group objectives.
Thus, leadership is not only some attributes of the person, but also what the person does. Leadership is not the same as being a manager or a supervisor. Leaders derive power from legitimate, charismatic, reward, referent, and coercive sources. In today's volatile economic climate, the significance of leadership cannot be overestimated about the success of any organization (Grojean et. al, 2004).
Mike Schroeder, during an interview with Hanson, explains the challenges faced by organizations as they strive to maintain their cultural values. As Schroeder argues, organizations usually undergo some significant changes to develop themselves. Organizational leaders have the role of ensuring that the change process is accomplished. Thus, leaders should motivate a change, create a vision, build political support and manage the transition in ensuring that there is no resistance to this change. Also, change efforts need to be directed towards improving the performance of organizations, as well as those people who serve there (Markkula Center for Applied Ethics at Santa Clara University, 2013).
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