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Flashcards in chapter 11 Deck (17):

is the process of transforming organizations from what they are to what the leader would have them become. (proactive, goal oriented, Focused on the creation & implementation of a creative vision)



requires the ability to scan the environment for knowledge about
All stakeholders
Salient environmental trends & events

setting a direction


provides many benefits: a clear future direction; a framework for the organization’s mission and goals; and enhanced employee communication, participation, and commitment

strategic leadership


requires building mechanisms to implement the leader’s vision and strategies through
Structures & teams
Systems & processes

Designing the organization


requires that managers & leaders
Accept personal responsibility for developing & strengthening ethical behavior
Consistently demonstrate that such behavior is central to the mission & vision of the firm
Develop & reinforce

excellent and ethical organizational culture


= a barrier to change that stems from people’s risk aversion.

vested interests in the status quo


= barriers to change that stem from an organizational design that impedes the proper flow and evaluation of information;

systemic barriers


= barriers to change associated with the tendency for managers to look at issues from a biased or limited perspective based on their prior education and experience;

behavioral barriers


= barriers to change related to conflicts arising from power relationships

political barriers


= a barrier to change that stems from people’s not having sufficient time for strategic thinking and reflection

personal time constraints


= a formal management position that is the basis of the leaders power. This is power that a person wields because of his or her formal management position, and includes legitimate, reward, coercive, and information power

. Organizational bases of power


= a leader’s personality characteristics and behavior that are the basis of the leaders power. (referent, expert power)

Personal bases of power


Provide a statement & guidelines for norms, beliefs & decision-making
Provide employees with clear understanding of the organization’s position regarding behavior
Provide the basis for employees to refuse to commit unethical acts

Corporate credos


= programs for building ethical organizations that have the goal of preventing, detecting, and punishing legal violations

compliance-based ethics programs


Enables ethical conduct
Examines organizational members’ core guiding values, thoughts, & actions
Defines responsibility & aspirations for ethical conduct

integrity-based ethics program


= a system of right and wrong that assists individuals in deciding when an act is moral or immoral and/or socially desirable or not.



= the values, attitudes, and behavioral patterns that define an organization’s operating culture and that determine what an organization holds as acceptable behavior.

Organizational ethics