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Chapter 2

Leadership Traits and Ethics

Chapter 2Part One: Individuals As Leaders

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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 Trait

• Traits are distinguishing personal characteristics.

• Personality is a combination of traits that classifies an individual’s behavior.> Understanding personalities helps explain and

predict others’ behavior and job performance.

• Personality profiles identify an individuals’ stronger and weaker traits.> Usage can increase self awareness.

See Exhibit 2.1: Why Executives Are Derailed.

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Big Five Model of Personality

• The Big Five Model of Personality categorizes traits into the dimensions of surgency, agreeableness, adjustment, conscientiousness, and openness to experience.

• In applying trait theory, remember:>Many successful leaders have the Big

Five traits, but there are always exceptions.

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Big Five Model of Personality

• The surgency personality dimension includes dominance, extraversion and high energy with determination.

• The agreeableness personality dimension includes traits of sociability and emotional intelligence.

• The adjustment personality dimension includes traits of emotional stability and self-confidence.

• The conscientiousness personality dimension includes traits of dependability and integrity.

• The openness-to-experience personality dimension includes traits of flexibility, intelligence and internal locus of control.

See Exhibit 2.2.

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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 Motivation Theory attempts to explain and predict behavior and performance based on a person’s need for achievement, power, and affiliation.> Relates to Conscientiousness, Surgency and

Agreeableness.

• Leader Motive Profile Theory attempts to explain and predict leadership success based on a person’s need for achievement, power, and affiliation.

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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.> Socialized power is the Big Five adjustment

dimension.> Conscientiousness – Big Five dimension.> Effective leaders have a lower need for

affiliation than power.

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The Big Five Model

of Personality

Leadership Traits within the Big Five

Achievement Motivation Theory

and LMP

Surgencya. Dominanceb. Extraversionc. Energy/Determination

Need for power

Agreeablenessd. Sociability/Sensitivitye. Emotional intelligence Need for affiliation

Adjustmentf. Emotional Stability and

Narcissismg. Self-confidence

Socialized power (LMP)

Conscientiousnessh. Dependabilityi. Integrity Need for achievement

Opennessj. Flexibilityk. Intelligencel. Locus of control

No separate need; it is included in the

other 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.

• 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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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.

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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 Positive Attitude and Self-Concept

• Behavior and performance are consistent with how we see ourselves.

• Self-awareness and self-development help.

• See the text for ideas on how to change your attitudes and develop a positive self-concept.

Also see Exhibit 2.4.

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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, and> 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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Factors Affecting Ethical Behavior

Personality Traits and Attitudes

Moral Developme

nt

The Situation

• Moral development refers to understanding right from wrong and choosing to do the right thing.> Three levels of moral development:

Postconventional, Conventional and Preconventional. See exhibit 2.5.

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Justifying Unethical Behavior

• Moral justification is the thinking process of rationalizing unethical behavior. > Higher purpose.>Displacement of responsibility.>Diffusion of responsibility.> Advantageous comparison.>Disregard or distortion of consequences.> Attribution of blame.> Euphemistic labeling.

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Guides to Ethical Behavior

• Golden rule – lead others as you want to be led.

• Four-way test – ask yourself four questions.> Is it the truth? Is it fair to all concerned? Will it build

goodwill and better friendship? Will it be beneficial to all concerned?

• Code of ethics – also called Codes of Conduct.

• Stakeholder approach to ethics, one creates a win-win situation for relevant parties affected by the decision.

• Reluctance to ask advice and continual justification means the decision may not be ethical.

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Key Terms• achievement motivation

theory• adjustment personality

dimension• agreeableness personality

dimension• attitudes• big five model of

personality• conscientiousness

personality dimension• ethics• leader motive profile (LMP)• leader motive profile

theory

• moral justification• openness-to-experience

personality dimension• personality• personality profiles• Pygmalion effect• self-concept • stakeholder approach to

ethics• surgency personality

dimension• theory X and theory Y• traits