Leadership

This paper seeks to establish the effectiveness of the organizational leadership at Walgreen’s, the leading drugstore company in the US. Areas of focus in the paper include diversity, ethics, employee motivation, and the organizational culture. Data is collected using secondary means and evaluated against the models extant in the field of organizational theory. Some of the models used include the competing values framework and its categorization of organizational cultures into clan, market, hierarchy, and adhocracy cultures.

Based on that evaluation, the effectiveness of organizational leadership at Walgreen’s is discussed, and useful recommendations which can be used to improve leadership at the firm outlined. 1. Overview of the Research: The overriding aim of this paper is to evaluate the organizational leadership of Walgreen, the leading drugstore company in the US. It begins with a description of the firm, including its core business, mission statement, key managers, financial position, and traces the spectacular growth of the firm from a one-store entity in 1901 to date.

Of particular focus in the paper are issues of employee motivation (where various motivational models such as Maslow’s hierarchy and Hertzberg’s Two Factor Theory are used), organizational culture (where the competing values framework is used), ethics, and diversity. The research philosophy adopted is positivist rather than phenomenological. Objective, deductive, and both quantitative and qualitative approaches are used. Secondary data utilizing sources such as Walgreen’s annual report are used.

The paper establishes that while the employee motivation, organizational culture, diversity, and ethical behaviors of the firm have been instrumental in the firm’s growth, there is still room for improvement. In that regard, various recommendations are offered at the tail-end of the paper. 2. Overview of Walgreens: Walgreens is the leading drugstore chain in the country. Started in 1901, it is based in Deerfield, Illinois. Its core business revolves around the retail of prescription drugs, non-prescription drugs, as well as merchandise (Walgreen Co, 2010).

Some of the merchandise that it retails include: “household items, personal care, convenience foods, beauty care, photofinishing, candy, and seasonal items” (Yahoo Finance, 2010, p. 1). These products are distributed through the firm’s retail outlets, as well as through the internet and by mail order (Yahoo Finance, 2010). a. History and early growth: Walgreens was started in 1901 by Charles R Walgreen, after whom it is named.

After working as a pharmacist in a Chicago drugstore, Walgreen ended up buying the drugstore thereby setting in motion the remarkable chain of events that would culminate into America’s premier pharmacy (Walgreen Co, 2010a). Unlike other pharmacies in operation at the time, Walgreen manufactured his own line of drugs. This enabled him to keep a close eye on quality as well as to cut costs. Consequently, his drugstore offered customers better quality at a lower price (Walgreen Co, 2010a).

Research Topic Linking enhanced employee performance to the achievement of the company’s goals and objectives so as to generate increased productivity: The case of “SUBWAY”, Rathbone Place. Submitted by LOKEMAN HOSAIN MOLLAH ID – 0385VLVL0209 MBA-A Submitted to DR. BERNADETTE WARNER Submission date 26 august 2009 Acknowledgement First of all, I would like to take an opportunity to say thanks to Dr.

Bernadette Warner who has vast knowledge about business strategy and international business, which is helpful to complete this proposal. Also I would like to say thanks to Mr Hmant Dixit, the operational director of “SONISH LTD” who helped me a lot to get information about subway and the employees of Subway in Rathbon Place, London. And I would like to give special thanks to Mr. Mamunur Roshed, area Manager,Sonish Ltd and Mr. Arifur Rahaman, Store Manager, Rathbonr Place for their cordial support.

Table of contents Introduction Topic area Problem statement Background and purpose of the research Literature review Aims and Objectives of the research Research Questions Research Design and Methodology Sources and acquisition of data Data analysis Timetable About Subway Conclusion 1. Introduction In today’s business become more globalize, and competitive, for this reason it is very essential to find out a ways to make our organizational resources more creative and productive.

In many organizations, the most important and exclusive resource is employee and as a result, a lot of time is spent on creating processes and conditions that drive and motivate our employees. And if we can motivate and encourage our employee then their performance will be good which is very important for an organization. Increasing employee performance can achieve maximum business performance, for this reason every individual employee has to work at their optimal level and be focused on the correct tasks.

Effective Employee Performance Management (EPM) adoption empowers employees to take responsibility for their own productivity, and allows a business to fully align goals, activities and tasks to support the direction of the company. Employee Performance Management helps organizations improve both the processes and the productivity of managing a workforce. In most service organizations, attrition is critical to consistent performance and success.

Employee Performance Management strategies can help your organization make dramatic business performance improvements and yield tremendous benefits beyond cost reductions. 2. Topic area The topic area is to cover the employee performance at Subway to achieve the company’s objectives and productivity This research will conduct correlate the gaps in individual performance and organizational productivity, with the environment that exists in Subway. 3. Problem statement To stay in a global market, organization need to have very high performing, productive, and motivated workforce ( Madhok & Phene , 2001 ) .

However , the problem is that organization have not been able to effectively tap into and leverage the full potential of individuals, to enable them to operate at their peak / optimized level of performance. Consequently, most employees are under performing in organizations. The inability of an organization to use the full potential of an employee’s capacity has had a negative impact on the overall productivity and competitiveness organizations in a global market. (Check land, 1999). 4.

Background and purpose of the research The purpose of this research is to determine how organization could become more productive, and thus competitive, by enabling their employees to raise their overall level of performance and productivity, and assist employees to operate at high level of capacity by adopting the best practices of top performing employees in the organization. Building on the work on Pratt and Foreman (2000), the author was interest in determining, in a systematic and holistic manner, the impact of any interrelated organizational factors or entities that had a positive or negative impact on individual performance.

The present research initiated to address a key organizational issue and leveraged a number of fundamental questions – First, how can organization become capable of sustained high performance? Second, can organizations leverage the full potential of their employees? Third why do most employees in organizations work at 60% of the full capacity? Finally, why most employees about 90% of the total workforce, considered to be typical employees? (Boyett & Conn, 1995). We need a comprehensive approach to a style of management that enables every employee to aspire to excellence.

Now only a few employees are excellent. Most employees are performing below their capacity and our piecemeal efforts to improve performance aren’t working. (Boyett & Conn, 1995) 5. Literature review In the literature review will provide a comprehensive review of the existing literature on individual performance, organizational productivity, and connection that may exist between these two. This overview will include a review and analysis of the seminal books and articles as well as many of the most current books and articles on the subject.

In a general and broad sense, this review revealed that individual performance and organizational productivity can be affected by five key factors: leadership /management, the nature of the job itself, the environment of the job, personal drivers or factors and the individual’s emotional intelligence. When observed in isolation, each of these factors can have a positive or negative impact on individual performance. However, when combined and observed holistically it quickly becomes apparent to this that the leadership/ management factor can have a positive or negative impact on how the other four factors are shaped .

The section that immediately follows will briefly introduce each of these five factors followed by a section that is devoted to exploring these five factors in greater detail. 5. 1Management / Leadership Elements and impact Numerous studies have shown that management and leadership style, practices and approach can have an influence on individual performance and motivation. (Khaliq, 2001) Leader ship has been defined as, the ability to influence or inspire others to do something that needs to be done.

It is instilling in each employee a sense of belonging and commitment towards the achievement of the goals and objectives of the organization and leaders are the catalysts that stimulate employees to develop their potential to the full. This section will provide Comprehensive review of the role, the significance, and the effect of management and / or leadership practices on individual performance, motivation and their overall development in organizations. A comprehensive review of the current literature includes recent books and articles that deal with this subject .

Finally this review will include the various leadership and management styles approaches and characteristics that have a profound impact on individual motivation and performance. (Khaliq, 2001, p. 5) Khaliq (2001), compared the motivational and performance factors of the workforce in the United States to that of the Malay, Chinese and Indian workers employed by the Malaysian companies. He concluded many of the leadership approaches that dealt with the concepts of openness, direct confrontation nd / or challenging the process were in direct opposition to many of eastern cultures values and behaviours. In sense khaliq points out that many ethnic and cultural parameters may also have a significant effect on how individuals are motivated, committed and become productive in organizations. Motivation is closely related to leading nurturing a willingness to achieve the above mentioned vision and mission of the organization. Leaders can motivate their employees by creating an environment where work is seen as enriching and fulfilling, thus encouraging employees to contribute ideas and effort in order to enhance productivity. Khaliq, 2000, p. 2. ) 5. 2 Job specific elements and impact The leadership / management factors and the kind of positive or negative effect it had on performance and organizational productivity. The section that follows will review the significance and impact of the job itself and the type of day to day tasks performed by the individuals on their performance, motivation and energy level and overall organizational productivity.

The nature of the job, the daily tasks performed by an employee and the manner in which tasks assigned to the individual can also influence performance. , motivational level and organizational productivity Some jobs have lot of beginnings and endings during the day with the opportunity for employees to win or lose. ( positive or negative consequences ). But unfortunately the prevailing situation is that most jobs are just doing this hour what you did the last hour without any immediate consequence for performance .

And few workers are running around complimenting other workers for the good they are doing. That leaves the managers as the only source of positive consequence (positive reinforcement) to employees for performing well any day. ( Fournies , 2000, p. 78) . The degree of motivational potential of any specific job, then, dramatically influenced by how a person views the job he or she is given, including how assignments are organized, structured and managed. Even a high pressure situation, IT professionals report that work is exciting when they are having fun doing it.

In some sense, then, highly motivating work assignments should be similar the kind of activities people might chose to do for fun on their own. (Kartz, 1998, p. 1) 5. 3 Environmental elements and impact The stability or volatility of the work environment ( e. g the degree of office conflicts , power place ) can have a negative influence on the individuals anxiety level, performance and their overall motivation to perform well at work. We used to think we could separate the soft stuff from the hard stuff – the soft staffs was our commitment to the work force.

The hard stuff – what really mattered. Now we know you can’t get the staff out the door unless your employees are 100 percent committed and free of home life distraction. And the way get them there is simple. You do every thing you can to help them those life issues, so work and family can coexist successfully. ( Mechelen , 1998 , p. 6) . 5. 4 Personal / internal Elements and impact Personal factors or elements are internal and often silent motivational variables that can drive human behavior to act in certain way. For example a cultural or religious motivator (e. . Work being equal) may cause an employee to give it their all, deliver more quality work relative to their peers, and become creative. As second example an employee who is seeking promotion is more likely to work an and communicate better, establish better relationship and work harder compared to another co worker who was just recently promoted. Weiss (1936) points out that individual are driven on the basis of five categories of human needs that he refers to as Murray’s categories. These categories were named after Henry A. Murray).

Murray (1938 )named five specific categories of needs self fulfillment (achievement and endurance) , social needs ( affiliation and love) , ego needs ( exhibitionism and independence), safety needs ( avoidance of harm) , and power needs ( control). These needs indicate that many individuals are often motivated by strong desires and factors. Thus we trying to enhance or raise individual performance, manager’s needs to be sensitive to these human needs and understand that individuals are typically goal oriented and strive to concurrently satisfy many internal needs.

There fore managers needs to search for internal drivers and try to ensure that they provide appropriate motivators and inceptives that will address these needs. (Murray , 1938) 5. 5 Emotional intelligence elements and impact An individual emotional intelligence can contribute to how he or she performs at work, how the individuals relate to others and the overall productivity of the organization. ( Johnson & Indvik, 1999; mason , 1999;)A person with high emotional intelligence has the ability to understood and relate to people.

In fact this skill is now considered to have greater impact on individual and group performance. That traditional measures of intelligence such as IQ. when emotional intelligence is present , there is a increased employee cooperation , increased motivation , increased productivity and increased profits . (Johnson & Indvik ,1999 , p. 1) . People wit well developed emotional skills are also more likely to be content and effective on their lives, mastering the habits of mind that foster their own productivity.

People who cannot marshal some control over their emotional life fight inner battles that sabotage their ability for focused work and clear thought. (Goldman, 1994, p36) 6. Aims and Objectives of the research It is expected that this research will have a direct impact on the management community by defining methods of developing top performing employees . This work will address the significant issues of individual performance , organizational productivity , and the link between two.

As a long term objective, this research will provides a number solid answer to age old problems of productivity and employee motivation, and establish a set of principles that will be applicable to most work groups in organizations. In the interim, this study intends to provide a report in the form of a process for improvement that can be applied in the field by management. Especially this study has some major benefits. First it will identify and document any common factors that have a positive impact on individual performance.

Second, by identifying and documenting the common variables or factors that may exist among low performers in an organizations , it is expected that management can be assisted in identifying areas of deficiency and consequently develop employees to improve low performance, raise morale, and reduce the potential for burnout in their organizations. And also it is expected that the result of this research will be translated into a corporate training program that will enable a typical or average employee to raise his or her performance by adopting the best practices used by the top or star performers in the organization.

Finally researcher expectation that the aforementioned concepts and findings will be applicable to the Subway. It is further expected that the findings of this research will be the subject of the future study. 7. Research Questions This study is to address a fundamental question: What are the common factors or best practices used by the top performing employees in organizations? Examples of these common factors were perceived employee- manager working relationships, Leadership or management, top individual motivators or de-motivators, environmental elements and any best known practices.

For further clarification this fundamental question can be further broken down into a number of sub questions: Were the identified common factors between high performers the same factors that the low performers were deficient and lacking? From the perspective of individual motivational factors, what would be the management perspective compared to that of the employee perception? Finally are there any discrepancies or gaps between the manager and top performer perceptions or beliefs? 9. Research Design and Methodology Concepts of this research individual performance, organizational productivity and the connection between two.

A major objective of this study to explore and discover the common factors that distinguish the top performers in an organization. These factors are: any key perceived employee manager working relationships, top three motivators or de- motivators, and any best practices. The identification of these factors is intended to generate one or more grounded theories to explain why only a small percentage of the employees in an organizations ( e. g. 5 % ) are considered to be more effective or productive performers. Relative to the peers in the same or similar work environment. The study is going to be on a qualitative research approach .

It will use an iterative data gathering process, the use of inductive data analysis techniques, and a constant comparative and classification process of data to develop one or more grounded theories that could explain this phenomenon. The design of this research study is interpretive and systematic. It will attempt to uncover fundamental patterns and commonalities (e. g. employee manager working relationship) that exist in the research data. It will attempt to discover the common factors that characterize the top performers, both managers and employees, in organizations. As a systematic study it will compare and contrast the data.

To achieve this data will be collected from the high, medium, low, performers. Using techniques: 1. through the use of an elaborate organizational survey. 2. A series of one to one interviews. 3. Personal observation. Each phase the data collection and analysis process will be built upon the learning obtained from the previous stages in an iterative process. To construct the organizational survey literature review and analysis process will undertaken. 4. Finally to generate the grounded theories, the results of the organizational survey, and analysis of the one to one and group interviews.

At each stage data will be collected, compared, contrasted, classified and any commonalities that existed will documented. (Glaser & Strauss, 1999) 10. Sources and acquisition of data To begin with, organization Subway, Researcher has been working there since four years as a senior sales assistant. And have a good cooperation with the management and the employee who are willing to anticipate with the interviews. Primary data will be gathered by conducting one to one interviews with key managers or individuals.

Before executing such research activities it is ensured that research will be carried out with the permission of the senior management to interview the respective senior members of such organization. More concerns will be shown to select the appropriate senior members for such interviews. Finally, secondary data the possible available reviews, books, articles, suggestions, journals, electronic based information such as internet will be taken in to account for obtaining relevant information for the research, however strong weight will be given to acquire data from reliable source to make sure research content solid track of information. 1. Data analysis The theory construction will be based upon the literature review process, the survey results and feedback received from one to one make to the organization survey. as pointed earlier the desired out come of this study will to develop one or more grounded theories that could explain the top performing ( or low performing ) employee in organizations. To achieve this- First, theories will be developed based on the data collected, analyzed and the common pattern identified.

The data will take from the literature review process, a comprehensive organizational survey, one to one interviews and observation. And each phase findings will be classified into specific categories: management / leadership, job, environment of the job, individual motivators and emotional intelligence. Second all identifiable performance factors will categorized according to the five major factors identified during the literature review. A matrix consisting of number of variable performance factors and the frequency of each result will construct.

Further a set of definitions for each term or variable used in the study will formulate. 12. Timetable ACTIVITIESWEEKS1234567891011121Initializing Appointments 2Literature review 3Follow Up Meetings & Obtaining Information 4Obtaining Historical information 5Critical analysis 6Deriving a Conclusion 7Developing a Draft 8Editing & preparing final Draft 9Final Report Ready 13. About Subway Fred DeLuca founded the SUBWAY® chain in Connecticut, USA, in 1965.

The company has since grown into a multi-billion pound business, with more than 25,000 outlets in over 80 countries. In a world full of “Super Size It” messages that prompt people to eat too much and eat high fat items, SUBWAY® bucks the trend with a healthy message – 7 subs with under 6 grams of fat – as a major part of their advertising strategy. 14. Conclusion Optimizing individual performance, raising the bar of organizational productivity, and being able to accomplish organizational objectives.

A growing body research indicates that a productive, efficient and healthy learning organization is a necessary and key ingredient for global competition . The present study will be explored, analyzed and documented how an organization could become more productive and competitive by enabling its employees to raise their overall level of work performance. The results of this effort will indented to assist employees to operate at a higher level of their capacity by enabling them to leverage many of the common factors or best practices used by the top performing employees in their organizations.

These factors include: perceive good employee manager working relationship, top individual motivating, and any other best practices. This study attempted the best way managers and employees can partner to nature a work environment where they can grow, develop, and maximize their full potential. This study has benefits. It identifies and documents the most common factors that have positive or negative impact on employee performance and productivity. It attempts to capture the attributes and practices of high performing employees in an organization and perform this analysis on low and medium performers as well.

In conclusion, this study provided evidence that organizational productivity, effectiveness and creativity flow from flow naturally from individual productivity, effectiveness and creativity. (Loehr , 2001) Reference Loehr , J . (2001 , January ) , The making of a corporate athlete , Harvard Business Review , 79 , Issue 1 , 120 , 9p , 1 . Glaser , B . & Strauss , A . (1999) , The discovery of grounded theory : Strategies for Qualitative research , Chicago ; Aldline . Madhok , A . & Phene , A . 2001) , The Co evolution Advantage : Strategic management theory and the electic paradigm , International Journal of the Economics of Business , 8 , No, 2, 243 – 256. Boyett , J . H . & Conn , H . P . (1995) , Maximum performance management : how to manage and compensate people to meet world competition, Glenbridge Publishing : Lakewood , Colorado. Checkland , P . (1999) , Systems thinking , systems practice . john Wiley & Sons , Ltd : New York , NY. Pratt , M . G & Foreman , P . O . (2000) , Classifying managerial response to multiple organizational identities .

The Academy of management Review . MississippiState. Khaliq , A . (2001) , Corporate leadership and workplace motivation in Malaysia. International Journal of Commerce & Management . 11 . 1, 82 (Fournies , 2000) . Fournies , F . F . (2000) , Coaching for improvement work performance , McGraw-Hill: New York , NY . Katz , R . ( 1998) , Motivation leads to innovation – IT professionals who are excited about their jobs will be more creative and productive , Information Week , September , 14 , 1998 , n. 700, 294 (1). Mechelen , R. V. 1998, spring) , Work/life programs as management programs , The public manager : The new bureaucrat , 27 , n 1 , 31 (4) . Murray , H . A , (1938) , Exploration in personality : A clinical an expremental study of fifty men of college age , oxford University Press : New York . Johnson , P . R . & Invik , J . (1999) , Organizational benefits of having emotionally intelligent managers and employee , Journal of Workplace Learning , 1999 , 11 , issue 3 , 84 , 5p Goldman , D . (1994) , Emotional Intelligence : Why it can matter more than IQ , Bantam Books : New York , NY . www. subway. com

Leading the United States of America through an economic crisis and a world war, Franklin Delano Roosevelt demonstrated the traits of a creative leader not only in his policy-making, but also in the way he carried his image. From State Senator of New York to 32nd President of the United States, Roosevelt epitomised resourcefulness in his steady ascent of the political ladder, culminating with taking charge of the country during one of the toughest times it had ever experienced.

Over the course of his leadership, Roosevelt certainly gained – if not already possessed – the domain knowledge required to generate creativity in his field of politics. In fact, he was primed for a career in public service even since his early education Roosevelt first entered the face of American politics in the State Election of 1910, running for the New York State Senate. In his second term, he served as chairman of the Agriculture Committee, passing effective farm and labour bills.

This success was to some extent a precursor of his New Deal policies (to be discussed in greater detail later), which despite imperfections were reflective of creative leadership in the aspect of Dr Ronald Heifetz’s “adaptive work”. Following this, in 1913, Roosevelt was appointed Assistant Secretary of the Navy – a role from which he gained experience that would prove relevant in his later years as Commander-in-Chief during World War II. Although traditionally the prerogative of the Secretary rather than the Assistant Secretary, he worked on the general development of U. S. naval policy, and his advocacy for a “big navy” earned him support from Navy personnel. As State Senator, Roosevelt openly opposed the Tammany Hall political machine; as Assistant Secretary of the Navy, he opposed Frederick Taylor’s “stopwatch” system towards industrial efficiency. In both positions, his stand inevitably favoured certain stakeholders and incensed others. Although this meant losing support from some people, it represented creating the “disequilibrium” that Heifetz describes as necessary for mobilising adaptive work.

Roosevelt was hence able to effectively “orchestrate conflict and create disorder” in order to achieve greater overall progress. Roosevelt was a leader who avoided letting his personal life affect his political career. In the summer of 1921, he contracted poliomyelitis, which resulted in permanent paralysis from the waist down. However, Roosevelt was adamant about preserving his image of health to the people, which he believed was necessary to run for public office again.

He made sure that the press presented him in a manner which did not highlight his disability, and refrained from being seen in his wheelchair in public. In doing this, he protected his status as a leader in the eyes of the people, rather than allowing his illness to undermine his ability to serve in public office. Roosevelt went further to establish the March of Dimes, a non-profit organisation seeking to combat polio. He was hence able to turn an adversity on its head and generate even greater public support from it instead.

In the 1920s, Roosevelt mended fences with the Democratic Party, and moderated his stance against the Tammany Hall machine. He went on to be elected as Governor of New York in 1928, and re-elected for a second term in 1930. While in that position, he instated several social programmes such as the New York State Emergency Relief Commission. In line with the importance of working with partners that Heifetz emphasises in his book, Leadership Without Easy Answers, Roosevelt worked closely with Frances Perkins and Harry Hopkins, particularly in the aspect of solving America’s economic problems during the period.

Roosevelt also made the key statement that “progressive government by its very terms, must be a living and growing thing”, presenting governance as a conceptual space that could be explored and transformed, and once again relating to Heifetz’s “adaptive challenge”. When Roosevelt was elected President in 1932, the United States was struggling under the Great Depression, which began even while he was Governor and involved a stock market crash and soaring unemployment. It was on this backdrop that Roosevelt introduced the New Deal, a series of economic programmes to tackle the problems during this difficult period.

Within his “First 100 Days”, he passed various programmes through Congress, setting up the Civilian Conservation Corps, the Tennessee Valley Authority, and the Emergency Banking Act among many others. Roosevelt made his mark on the history of American politics in this record number of bills passed during the initial months of his Presidency; since then, U. S. Presidents have been judged by what they achieve in their first hundred days. Roosevelt entered the Presidency with immense political capital due to the urgency of the economy’s state, and effectively capitalised on this to implement creative policies.

In the “Second New Deal” (1935-1936), he went on to propose bolder and even more initiatives, such as the Works Progress Administration and the Social Security Act. The latter, in fact, set the foundation for the framework of the U. S. welfare system which exists till today. Roosevelt was willing to take risks; he implemented policies which involved significant government intervention at the expense of a budget deficit, even though he knew this would be unpopular. He was aware that leadership was not merely about appeasing the people, but required tough measures in response to the situation at times.

Although his New Deal policies met criticism as being a haphazard collection of schemes, Roosevelt himself insisted that they were “the orderly component parts of a connected and logical whole”. Either way, we must recognise that the economic climate at that time was extremely volatile, and in reacting spontaneously to unfolding events rather than strictly adhering to a set plan, Roosevelt was doing exactly what Heifetz describes of creative leaders – bringing adaptive work to the people, and mobilising it towards solutions. Roosevelt also found a novel way of addressing the people through a series of radio talks called “fireside chats”.

Through these, he introduced and explained the policies to the people as they were being implemented. He knew that transparency was important, and even as he passed acts which allowed greater state intervention in the country’s social and economic affairs, he made clear to the people what he was intending to achieve with these initiatives. His policies were met with mixed reviews, but ultimately, most agree that this era was an important milestone in the progress of the U. S. political and economic systems. In 1940, Roosevelt became the first President to run for a third term, going against the unwritten rule of a two-term tradition.

By this time, World War II had broken out. Roosevelt, as President, gave covert support to Britain and France in the form of arms provision despite officially stating neutrality. Eventually, while still remaining detached from actual military participation, he passed the Lend-Lease Act, essentially providing supplies to the other Allied nations at war. This was an innovative measure on Roosevelt’s part to support the Allied Powers against the Axis Powers without putting his own country in direct harm. Unfortunately, such a position can only remain temporarily, as the U. S. was clearly demonstrating its alliance.

Unsurprisingly, the Japanese attacked Pearl Harbour on December 7, 1941, drawing the U. S. inescapably into the war. Not having fully recovered from its economic woes, being forced into combat was a heavy blow to the U. S.. Even in the throes of war, however, Roosevelt was successful in “externalising the conflict”, focusing on the Axis Powers as the enemy and keeping himself out of a position of blame. The situation also drove Roosevelt to establish the United Nations – originally the 26 countries opposing the Tripartite Pact represented by the “Declaration by United Nations”.

Although not entirely a case of historical creativity, the coalition of governments across this large a number of nations was certainly a visionary initiative by Roosevelt. The UN has since grown into one of the most prominent international organisations. Roosevelt was definitely a man who saw purpose in his public service. Just before his death in 1945, he entered an unprecedented fourth term as President. His commitment was reflected in his continuous political presence and effort to evoke positive change in systems, even in times when support for him was low.

Roosevelt incorporated wit when he was addressing the people, and maintained his dignity till the very end. Although it is impossible for all of his policies to have succeeded, especially considering the sheer multitude of new programmes and magnitude of fundamental change instigated during his time, Roosevelt did display fluency and flexibility – in that he generated a large number policies in a wide range of categories – as well as originality and the capacity for elaboration in his intricate plans. As one of the most influential figures in American history, Franklin D. Roosevelt definitely embodied the essence of a creative leader.

Golda Meir’s Determination, loyalty, integrity and conscientiousness were major leadership traits that will always be respected in the Jewish community. She was described as the “Iron Lady” of Israeli politics years before the term became associated with British prime minister Margaret Thatcher. Former prime minister David Ben-Gurion used to call Meir “the best man in the government”; * Determination: the desire to get the job done (Northouse, p. 25) Golda Meir was determined to overachieve and protect Israel’s interests throughout her life, even throughout her childhood she organized a fund raisers to pay for her classmates’ books.

Another display of determination was entering politics, a male dominated field, and being praised by her subordinates for her decisions. She was determined to lead a change and always sought after leadership positions. “Although she was born in Russia and educated in the United States, where she trained as a teacher, she arrived in Palestine when she was in her twenties and lived on a kibbutz. She immediately became active in the newly-formed Histadrut trade union movement” (Butt, 1998) * Loyalty – Golda Meir’s loyalty to Israel cannot be questioned.

With her family fleeing Russia where she was born in 1898, to begin a new life in Milwaukee, Wisconsin. There she developed a passionate commitment to form a Jewish state. She worked tirelessly by raising money and used her gifts of charm and oratory to promote the cause of an independent Jewish state. * Integrity – the quality of honesty and trustworthiness. (Northouse, p. 25) Golda Meir saw integrity as the currency of Israel’s survival (Burkett, 2008). The way Golda spoke with her followers and involved them in decision making built a high level of trust and honesty within the Israeli government.

Meir led by example; she practiced the same morals and beliefs that she preached. * Conscientiousness – the tendency to be thorough, organized, controlled, dependable, and decisive (Northouse, p. 27). Golda Meir’s conscientiousness was shown during her academic career, where she graduated as valedictorian. Moreover she has shown her control, dependability, and hard work On May 10, 1948, four days before the official establishment of the state, Meir traveled to Amman disguised as an Arab woman for a secret meeting with King of Transjordan at which she urged him not to join the other Arab countries in attacking the Jews.

Golda Meir had many of the traits associated with a transformational leader, such as idealized influence, charisma, inspirational motivation, intellectual stimulation, and individualized consideration. Golda Meir led by the rule of dedication to her country and her personal concern for all people are legendary. Whatever Golda Meir did, she did for the people, always listened to her followers and wasn’t intolerant of opposing views, she considered all options and whenever she had to make a decision she consulted with her team.

Since Israel was established to be a Jewish state, she worked to improve the lives of her people; she created a vision for the young state to ensure that Jews across the world learned of her vision and take the necessary steps to achieve it. Meir was the leader Israel needed in a time of crisis, she was charismatic with exceptional rhetoric skills, and both attributes are crucial to political leaders. “…transformational leadership results in people feeling better about themselves and their contributions to the greater common goal” (Northouse, p. 00) Indeed Jews across the world migrated to Israel in hopes of living in Golda Meir’s overall vision of the state of Israel. Golda Meir’s ability to lead the people to their common goal while keeping a unified nation, not becoming power hungry, and always keeping what’s best for the country first, are the main goals and achievements of an ideal transformational leader.

SOURCES http://news. bbc. co. uk/2/hi/events/israel_at_50/profiles/81288. stm http://en. wikipedia. org/wiki/Golda_Meir Golda Meir: The Iron Lady of the Middle East: The First Woman Prime Minister in the West, Eleanor Burkett, Gibson Square Books Ltd; (2008)

External forces for change are quite a number. To start with, there is the force of political change. It is possible that the political atmosphere in which the organization is operating has taken a different turn after maybe an election or political upheaval. If a volatile political environment comes up, it will force the organization to shift its operations in major ways so as to ensure that the welfare of the members of the organization is not put in jeopardy.

Usually, the management finds the best way to operate in the prevailing political circumstances without causing problems for the political establishment, a situation that can lead to unnecessary and unproductive friction. Some intolerant regimes can also rise to power and in the same manner it is the duty of the organization to ensure that it has the best operational policy that can enable it run its affairs without getting into conflicts with such a regime.

Leaving that a side, the issue of globalization is a major external factor that has triggered change in so many firms in the current operational climate for both profit and non-profit making organizations. The rate at which the world is being reduced to a small village is very high and any organization that does not adopt new systems that can make it competitive in the current highly globalized world will find itself in the woods. Some have described globalization as internationalization but whichever way it is defined it refers to the taking up of a world format in operations.

Globalization accounts for many of the changes that have taken place in organizations around the world more than any other factor. Companies in China are now in open competition with American and British companies as well as companies from other parts of the world. In such an atmosphere, the only way to ensure that the organization survives is by adopting the best operational methods (Kanter, 1992). Far from the above, changes in social values can also trigger changes within an organization or company.

If the environment in which the organization operates becomes a verse to a particular product or service which is the primary product or service of the company or organization, then a problem arises. If for example most people living close to a beer producing factory decide to stop taking beer for religious reasons, it means that the beer being produced by the factory will miss a market. In such a case, the factory will be required to take up new lines of production so as to ensure that it does not die. A reduction in the market can also lead to such changes as retrenchment or downsizing of the workforce.

In addition to the above, it is probable that economic forces outside the organization can make it change its operational character. Hard economic circumstances such as a recession or a depression will obviously affect the way the organization carries out its functions. It is possible that hard economic conditions will make the organization experience problems in the area of paying its workers and investing in new research. Good economic ,conditions on the other hand will make the firm or organization become more bold and carry out developmental changes so as to increase the profit margin of the firm.

Some organizations find it so hard to operate during hard times till they close shop. Apart from the bove, the desire to gain a competitive edge against other companies or organizations that are producing similar goods or offering the same services can act as a strong force for change in an organization. If a certain company is producing a commodity that another company is producing, the company will be under pressure to take up new ways of producing the same good so that its quality is superior compared to what is being produced by the comptetiro.

In such a case, the way in which the company has always operated will have to shift so as to allow for the change that is meant give the product the superior quality. Thus competition or the desire to have the competitive edge by companies or organizations can be a forceful agent for change in organizations. For example companies that deal with the production of soft drinks are always changing their means of production so as to outdo their competitors in this line of production. This has kept them changing their means of operation. The last force for change in organizations is technological development.

The pace at which the world of technology is moving forward is so high and with it, it is taking so many areas of life. It is so influential that if a company or an organization is to remain relevant and competitive in the world of business, it has to embrace technology. It therefore becomes automatic that if new technological services appear in the market, an organization is going to change its way of operation so as take up the new technological services with an aim of remaining not only relevant but also competent. Therefore technological progress is a powerful agent for change in an organization.

Internal forces for change Internal forces for change in an organization on the other hand are leadership and management style that comes in under values. The leadership which in most cases is in form of chief executive officers can be dynamic such that after a particular way of doing things fails to work, he comes up with the proposal that a new method is designed. This way, change is ushered into the organization. Also, the management style as determined by the values of the organization may be flexible enough to allow for the introduction of new ways of doing things.

If this is the prevailing situation in any company, the chances of change taking place are always high. Besides the above, the nature of the work force is another force that can easily trigger change in an organization. If the workforce of an organization is young and innovative, it is possible that at some point it is going to come up new and daring ways of doing things. These new ways of doing things are what we classify as change. On the other hand an old and conservative workforce will always cling to the old time tested ways of dealing with issues at the workplace and the end result is a situation whereby no change is taking place.

The nature of the workforce is therefore a force for change in organizations. Another important factor which acts a force for change is the organizational culture. It is worthy noting that some organizations have fixed ways of doing things and no amount of pressure can make them take up new ways of handling these things. In this case, the organization finds it very hard to welcome change. Some organizations have a flexible culture that allows for the adusjustment of the way things are done so as to ensure that only the best methods are employed in doing things.

Such cultures in organizations assist in ensuring that change is able to take pace within the organization. Thus flexible cultures are a force for change within organizations. Tools for managing change In handling change within an organization, a number of tools are needed. It is not an easy job to handle change in organizations and even the most highly trained managers and business leaders have encountered problems in at the work place. These tools that are needed in handling change include a clear change strategy, a power base for the people implementing the change, and appropriate managerial behavior.

A clear change strategy means that the best methods are prepared so as to be applied when the elements of the change are being implemented in the organization. Different reactions will emerge from different members of the organization as far as change is concerned and handling them in the right manner will make the change agenda be successful. Force or coercion will be required for some people, rational persuasion will be appropriate for others while shared powers may work perfectly with others.

Under the issue of being in possession of the right power base in the implementation of the change agenda, it simply means that the people handling the change work hard to build a broad coalition that can act as a reference point of support, a reservoir of experience, a source of collective legitimacy and a source of group confidence. The element of recognizing the best agents of change among the employees and rebuking the detractors will also work in coming up with a successful change agenda for an organization.

Far from the above, appropriate leadership behavior is needed by people in authority such as managers who are directly in charge of handling the change. These attributes of adequate behavior include the ability to empower other employees in the organization, the ability to participate in a group process without any problem, the willingness to come up with participative decisions, the ability to issue commands when necessary and go ahead to make unilateral decisions, and the ability to apply rational and thoughtful persuasion in convincing the others to embrace the ideas you are giving them.

Carryimg out projects meant to show the others what to expect and call for testimonies from experts is also crucial in the composition of managerial behavior (Kanter, 1992).. Other tools that are always vital in implementing any change agenda include communication, the ability to remain focused, accepting the inevitability of change, and remaining optimistic. Communication is important since it is only through clear communication that any aspect of the change program can be understood by the members of the organization and carried out as required.

In fact, the success of any piece of work in an organization rises and falls with communication. Any time the communication is good, the outcome is always good and any time communication fails, the results are as bad as possible. So it is necessary that communication be as good as possible. Remaining focused will keep the message unchanged and the vital parts will be intact till the time of implementation. Accepting the inevitability of change will foster confidence in the success of the process and optimism will make the people implementing the change program carry it out to its conclusive end.

If the expectation for anything being done is that it is going to fail, it is possible that the people doing it will lose heart and stop doing it along the way. But the expectation of success will make them work hard and ensure that it is finished with the hope of seeing it functioning. Another tool that is equally vital in dealing with change is the possession of a clear understanding of the change management principles. They include the creation of support so as to ensure that you are not alone. This is similar to the element of creating a power base.

There is also planning which is done through drawing plans and doing all the required organization, seeking sponsorship which entails the inclusion of the people who make decisons, the element of measurement whose function is to measure the effectiveness by looking at the time taken ant the resources consumed against the produced results and engagement of all the people involved in the process. These principles will come in handy in ensuring that the change process is accorded the required attention and handling so that it can succeed.

Contemporary and Pervasive Issues “How will ethical issues affect leadership in a business? ” Word Count: 5671 In this essay I am going to discuss how ethical issues can affect leadership in a business. In order to answer this question the essay will start by giving a brief introduction into the two topics; leadership and business ethics. I will then aim to successfully link them by considering the argument of whether leaders should concern themselves with ethical issues or whether making as much money as possible should be their main consideration.

Leadership has many different meanings and there have been numerous different classification systems used to define the dimensions of leadership. Infact as Stogdill (1974) pointed out, “there are almost as many different definitions of leadership as there are people who have tried to define it. ” One popular definition used for this subject is that “leadership may be considered as the process (act) of influencing the activities of an organized group in its efforts toward goal setting and goal achievement”(Stogdill, 1974).

This definition suggests that it is not a characteristic but is an event that takes place between a leader and his or her followers and that there are three aspects to leadership. Firstly, it involves influence in that leaders induce their followers to behave in a certain way. The second aspect is that leadership occurs in a group context and finally that leadership includes attention to goals, which a leader must direct their followers to achieve. Over the years there have been many studies and theories formed on leadership.

The first, which dominated until the late 1940’s, was the Trait Approach, which focused on leaders and not followers. It assumed that leaders had certain traits, such as intelligence and integrity and that they are born and not made. However, this approach failed to take situations into account and recent research has proven that traits alone cannot account for effectiveness. Following this was the style approach, which focuses on what leaders do and how they act towards subordinates rather than characteristics. This era defines leadership styles as either Autocratic, democratic or laissez faire.

However, this approach fails to find which of these leadership styles is most effective in every situation. Following this was the situational and contingency theories, which assume that different situations demand different types of leadership. However it assumes that people can learn to become effective leaders and does not adequately explain the link between styles and situation. The Situational theory ‘relates four leadership styles; Directing, Coaching, Supporting and delegating to followers readiness for them” (Gill, 2006:48).

However, the model assumes both flexibility of style and the ability to diagnose the situation and the style that is needed. In 1980’s the New Leadership approach was introduced, which compromises visionary, charismatic and transformational leadership theories. “Transformational leadership occurs when leaders raise peoples motivation to act and create a sense of higher purpose” (Gill, 2006:36). Similarly and published around the same time was the theory of Charismatic leadership, who act in unique ways that have specific charismatic effects on their followers.

This stage provides a broader view of leadership that augments other models and places a strong emphasis on leaders needs, values and morals. However, “due to the wide range that it covers it lacks conceptual clarity and it is difficult to define the parameters of transformational leadership” (Northouse, 2004:185). Finally, in the late 1990’s Post-charismatic and Post-transformational theories emerged, which focuses on leadership as a community and both leaders and followers working together. Leadership is a process that is similar to management in many ways and many of the functions of management are included in the definition of leadership.

This was argued by Yukl (1989), who said “when managers are involved in influencing a group to meet its goals, they are involved in leadership. When leaders are involved in planning, organizing, staffing and controlling, they re involved in management. Both processes involve influencing a group of individuals toward a goal attainment. ” Both management and leadership involve influence, working with people, meeting goals and many other similar functions. However, there is a distinct difference between leadership and management and the main functions of the two are quite dissimilar.

It was argued by Kotter (1990) that the “function of management is to provide order and consistency to organizations, whereas the primary function of leadership is to produce change and movement. ” Whilst managers plan and budget, a leader creates a vision and sets strategies, instead of controlling and problem solving a leader motivates and inspires his followers. In addition to this, Bennis and Nanus (1985) made the distinction very clear, “managers are people who do things right and leaders are people who do the right things. ”

Although it argued that the two are very different it is for this reason that both are needed for an organization to be a success. Without management outcomes can be meaningless or misdirected and without leadership the outcome can be stifling and bureaucratic. This was the opinion of Warner Burke (1986:68), who said that “For clarity of goals and direction, managers need leaders. For indispensable help in reaching goals, leaders need managers. ” A further question that is often raised on the topic of leadership is whether leaders are born or made?

Whilst some would argue that “It is not a matter of whether leaders are born or made. ” They are born and made” (Conger 2004), it is a topic that has caused great debate. Many would argue that leadership is innate (inborn) and that the character, style and competence needed to be a leader is infact genetic and it cannot be developed. However, others have argued that leadership is not down to genetics alone but that it can infact be developed over a period of time through environment and experiences.

This is the opinion argued by Winston (Winston 2003), who says that “we are not merely the product of our genes: environment has a huge impact but in a mysterious way. ” A further aspect to this question is whether leadership can be taught. There are many opinions on this matter but the “tendency is towards agreeing that, while little if anything can be taught, it can be learnt through development, growth and practise” (Gill, 2006:272). A business operates according to the vision and values of its leader. A leader has many roles within an organization, which can be key to its long-term success.

The first of these is to provide an overall direction by “defining and communicating a meaningful and attractive vision of the future and a mission through which the organization will pursue it” (Gill, 2006:96). This direction which may stem a long way into the future will need to consider competitors, changes in tastes and current standing in the market. In relation to this it is a leader’s responsibility to create a strong and positive organizational culture with its followers having shared vision and values, which can result in an effective organization.

A further role of a leader is to “develop, get commitment to and ensure the successful implementation of strategies” (Gill, 2006:176). This is one of the most important roles for a leader and involves them planning where they want to be in the future and how they are going to get there, for example by acquisitions or moving into new geographical markets. Another role of a leader in business is to empower employees to be able to do what needs to be done. In order to do this a leader must give them the knowledge, skills, authority and freedom to manage themselves and be accountable for their behavior.

If a leader successfully empowers his employs it can lead to both job satisfaction and enhanced organizational performance in many ways. Similarly it is an important role of a leader to influence, motivate and inspire employees to reach the companies goals. One of the key factors that will determines whether it is achieved or falters will be the ability of the leader in these three areas. Finally if an organization is to continue to prosper, people development must be high on a leader’s agenda, by identifying the most talented people coming through and making sure that they are developed for major roles in the future.

Ensuring that there is a continued stream of talent developed is a key factor in sustainable progress and achievement. An effective leader has the ability to successfully carry out all of these roles. The second topic that this essay involves is business ethics, which has been described by some as ‘a passing fashion which will come and go and can therefore be safely ignored or dismissed” (Vallance, 1995: 4) However, business scandals of the late 1980’s such as Guiness and Blue Arrow and the results of these have made businesses aware of the importance of their reputation and the need to think seriously about ethical issues.

There have been numerous definitions of ethics, which involves systemizing, defending and recommending concepts of right and wrong behaviour and includes principles and values of what is fair or unfair and proper or improper. It has been argued that “there is only one ethics, one set of rules of morality, one code that of individual behaviour in which the same rules apply to everyone alike” (Drucker 2007).

A popular definitions is that “Ethics deals with values, with good and bad with right and wrong, we cannot avoid involvement in ethics, for what we do-and what we don’t do- is always a possible subject of ethical evaluation” (Singer, 1993: v). There are various theories and approaches to ethics and ethical decision-making but the two major view points that appear are consequentailism and non-consequentialism. Consequentialism is where “ethical decisions are based primarily on calculating the good in terms of consequences” (Preston, 2007: 36).

The most widely accepted form of this is Utilitarianism, which was introduced by Jeremy Bentham in the late 19th century. This theory emphasises happiness or utility as a desirable goal for human choice or action and argues that moral rules should seek to secure “the greatest good for the greatest number of people” (Preston, 2007: 36). However, there have been some objections to this theory and the question as to how happiness and utility can be measured. It also works against the interests of “minorities and groups that do not measure up to the criteria of usefulness and can justify the violation of human rights” (Preston, 2007: 36).

An example of this is the exclusion of a disabled child from a school as they are disruptive. This would be justified on utilitarian grounds as to leave such a disruptive child in the class would not be beneficial to the majority of students. The second of these points that occurs in ethical theory is non-consequential. This “enjoins us to do the right thing, simply because it is the right thing, intrinsically” (Preston, 2007: 40). The most influential figure promoting this view was Immanuel Kant. He argued that as “individuals we intuitively know what is right or wrong, through the categorical imperatives, which are: Act so that you treat humanity, whether in your own person or that of another, always as an end and never as a means only • Act only on the maxim through which you can at the same time will that it be a universal law. • Act only so that the will through its maxims could regard itself at the same time as universally law giving – reference” (Preston 2007:41) This Kantian theory has been very influential, especially concerning the debate of rights and justice due to the importance that it places on every individual and because it is not open to persuasion by pragmatic considerations.

However, there have been some criticisms to Kants approach as he places too much reliance on human rationality. Furthermore, it does not provide an answer to the problem of how to decide between two conflicting duties and how to obey different bur equally absolute rules. For example, ‘do not break promises’ and ‘do not kill’ are absolute rules, however it is possible for a situation to occur where these rules conflict and that by not breaking a promise, someone is killed. The focus of this essay is on Business ethics in particular.

Though the theories that have been mentioned are relevant, they are “concerned primarily with personal ethics and do not address directly the kind of ethical problems that arise within a business context” (Vallance, 1995:4). Within an organisation, ethics is seen as everyone’s business and can be complex and have more than one meaning. Firstly, it is the application of general ethical rules to business behaviour and secondly, it can be the rules of business by which business activities are judged.

Business Ethics can be defined as “coming to know what is right or wrong in the workplace and doing what is right – this is in regards to effects of products/services and in relationship with stakeholders’’ (McNamara, 2006:7) and can cover a wide range of aspects from quality and treatment of employees to pricing. When it comes to business having an ethical responsibility, many would argue that this is not the case. Indeed Milton Friedman (Friedman, 1970) said “only people can have responsibilities.

A corporation is an artificial person and in this sense may have artificial responsibilities, but “business” as a whole cannot be said to have responsibilities, even in this vague sense”. With this in mind, it would also be argued that it is of little importance for leaders to consider ethical issues when making decisions. Infact, leaders who have ethical consciences have been described as “unwitting puppets of the intellectual forces that have been undermining the basis of a free society these past decades” (Friedman, 1970).

This argument is that a business and therefore its leaders have one purpose, and that is to make as much profit as possible, with everything else being secondary. Freidman said, “He (the executive) is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom” (Friedman, 1970).

He believed that this was the case for all businesses with the only exceptions being schools and hospitals where a leader’s objective would be the rendering of services. One of the beliefs of this argument is that “ethical responsibility as preached and practised by many marks an acceptance and endorsement of views and demands mostly presented by anti business groups that are hostile to the market economy and are far from representing the general view of the average consumer” (Andersen, 2004: 22).

In addition to this fact a further problem is that in order for a leader to have an ethical conscience it usually comes at some cost to the business and therefore is not in the interest of the owners of the organization. An example of this is that a leader would refrain from increasing the price of the product in order to contribute to the social objective of preventing inflation, even though a price increase would benefit both the corporation and its owners. A similar example is that ay leaders use great amounts of money and resources to reduce pollution beyond the amount that is required by law in order to meet its responsibility to the environment and gain a reputation as being an environmentally friendly company. This was a measure taken by Satellite broadcaster BSkyB who have been carbon neutral since May 2006 through a combination of using renewable energy and offsetting its remaining emissions, but at a cost to the company. In each of these examples and in the case of other ethical activities a great amount of money is either spent or compromised.

Many would argue that by doing this a leader is spending other people’s money for a general social interest, which could be viewed as extremely unethical. For example, carrying out an ethical activity that would have a high cost, such as reducing emission would reduce profits and therefore stockholder would see a reduce in their returns on investments. In addition to this if a leaders ethical actions raise the price to customers, he is spending the customers’ money and if the cost of the leader’s actions have to result in lowering the wages of some employees, he is spending their money.

In these cases it would be fair to say that not only would it be having a detrimental effect on the company profits but would also have a negative and unethical effect on both internal and external stakeholders, who may desert the company for a competitor that less scrupulous in exercising their social responsibilities. In addition to this it means that a leader in effect becomes a public employee even though he remains in reality an employee of a private company.

There is a further problem with leaders deciding that a company is to become more ethically aware as it involves great change in the way a company practices, its values and its organizational culture. Many of these actions that need to be taken to implement an ethical practice can incur increased costs that may not be recouped through increased sales and have no guarantee of returns. Furthermore, some decisions and choices made with an ethical conscience can result in short term negative impacts such as a decrease in sales, revenue and profit, increased cost for employee welfare and a decrease in stock prices.

Moreover, “the vast majority of companies are still failing to get their message across” (The Guardian, 2004). With these costs in mind, especially in the current economic climate, the importance of a leader implementing an ethical culture to a business could be questioned. In addition to this leading a business ethically may involve “compromising short term wins for the sake of a more long term view” (Andersen, 2004: 22). This is not beneficial for a leader who is responsible for immediate results, particularly if the short-term wins that are compromised due to ethical issues risk financial loss or even immediate failure.

This may mean that a leader may have to accept higher prices on goods, parts and manufacturing in order to remain ethical. An example of this is that Tesco, the UK’s largest supermarket was using an Indian sweatshop to produce its clothes, which was paying its workers just 16p an hour. This supplier was changed in order for the company to appear more ethical and inturn cost Tesco money. This can be particularly hard in a market where there is a large amount of competition at both a national and international level.

In order to compete a company needs to be able to offer the lowest price possible to its consumers but in order to keep its ethical stance a company can not compromise on its quality of suppliers and raw materials and therefore sees increased costs. Another consideration is that “when the corporation grows beyond the direct influence of its leader, we must reckon with the ethical consequence of size and geographical deployment. The control and employment of all policies, but especially that established for corporate ethics, becomes difficult” (Andrews, 1989: 7).

This demonstrates that as long as an organisation remains small enough to be directly influenced by the chief executives leadership, certain results, such as ethical approach can be traced to his determination that they occur. However, as the “organisation grows and becomes decentralised with worldwide operations the power and influence that the Chief Executive has is reinterpreted and diffused” (Andrews, 1989: 260). As a result leaders of have to be appointed in each location and these persons may not share the determination and beliefs of their chief executive on ethical matters.

As a result it is hard to standardise a whole company’s ethical approach. In relation to this cultural differences and different business practices around the world can present challenges for businesses that are trying to be ethical. Having considered the above argument there are some flaws to Friedman’s approach. He suggests that a leader should concentrate on profit alone as long as it is within the law. However, the law does not define what is morally right and what is legal may be unethical. Many people would argue that this is an important point as ‘good business ethics promotes good business. This was the findings of some well-known authorities such as Baumhart, Brener and Molander, who believed that only those businesses that conduct activities on ethical grounds can develop on a long-term basis. This is also the stakeholder view that businesses will not make money if they do not take heed of their stakeholders; CSR is looking after your stake holders and is good business practice. This is the reason why it is important that leaders are not merely concerned with profit but also with promoting an ethical practise.

Firstly, “leaders who follow the principles of ethics in the conduct of business, motivates others also to follow the same principles” (Paliwal, 2006: 10). This can improve both employees and the organizations motivation and morale, which was discussed earlier as one of the main roles of a leader. This is because conducting business in an ethical manner can produce a feeling of ‘doing things right’ and this can “become an almost tangible positive ambience within the organisation and can create a culture with a sense of community and belonging for employees,” (Andersen, 2004: 7).

The result of this is increased loyalty and productivity, which can result in an improved in competitive advantage. An example of a company that treats its employees well and is benefited in return is John Lewis. All 69,000 employees of the company have a share in it and despite seeing pre tax profits fall by 26% this year they still paid their employees bonuses worth 13% of their salaries.

In addition to this if a leader and a company demonstrates that it is unwilling to compromise its ethical values then they are regarded as trustworthy by both customers and their employees and this can promote productivity, innovation, employee development and increase employee attraction, which are again some of the main roles of a leader. This is vital to leaders as a study by Covey discovered that “the average corporation loses half its employees within four years, and the cost of recruiting, training and getting new ones up to speed can be detrimental to an organisation. (Andersen, 2004: 9). Also it is the “leaders of a company that are responsible for its conduct and it is their actions that determine the company’s ethical standards” (Andrews, 1989: 72). If a leader’s strategy is to define and communicate ethical position then it can act as a competitive advantage as it is an effective way of ensuring customer loyalty and also the company’s ability to attract new customers. Customers are now more discerning and better educated than ever and want a product that not only serves its purpose but also is produced by an environmentally responsible company.

If a consumer understands and sees tangible evidence that they are contributing to something beyond the profits a company and its owner, it is a strong motivator for both their custom and their loyalty. An example of a leader who understood the importance of an ethical company and an ethical product was Dame Anita Roddick, founder of The Body Shop. The company was one of the first to prohibit the use of ingredients tested on animals, promote fair trade and also channelled a share of the cost of the product back to the original producer of the raw material.

By doing this she created a unique selling point as an ethical company and therefore a company that consumers are proud to buy from. Furthermore, if an organisation is known to be ethical it gives the impression to the customer that they too will be fairly treated as “when ethical conduct is displayed it puts some kind of trust and confidence in relationship” (Paliwal, 2006: 9). An example of this is that prices reflect the real value of what is being bought.

As previously mention, being ethical can also help to attract new customer, who will hopefully become loyal in time. This is because customers are exposed to so many marketing campaigns that they are wary of which they should trust. However, if a leader has successfully managed to position an organisation with having ethical values and integrity then customers uncertainty is reduced, they are more trusting of the company and less afraid of purchasing its products, which meets leaders objectives.

This was proved in a survey conducted in New York in 1995, which indicated, “when quality, service and price are equal, 90% claimed that the best reputation for social responsibility would determine their decision to buy. ” (Andersen, 2004: 12). Therefore an ethical company should see an increase in sales, which is always part of a leader’s strategy. A further factor for leaders to consider is that studies have shown a “positive link between being ethical and improved financial performance (Maignan, 1987)”, which is ultimately the main aim of an organisation.

Ethics in business can be related to quality of management, quality of products, innovativeness and good responsibility towards the community, all of which lead to admiration, good will and a good reputation for the company. An example of leaders who saw the importance of a good ethical reputation are Ben Cohen and Jerry Greenfield, founders of Ben & Jerry’s, who set up the sustainable Caring Dairy initiative to helps farmers and also took measures to reduce energy use.

According to Ferrell, Maignan and Loe “companies that are perceived positively in the market place perform better than others. ” (Andersen, 2004: 13). Although this statement and other studies could be questioned as to what extent admiration is due to ethics, it can be said that an ethical approach to business is what contributes to a positive perception and reputation and can therefore be linked with financial improvements. A further example of this is that IAG (Insurance Australia Group Ltd), who work with neighborhoods to improve their facilities and reduce crime.

This not only gives them a good reputation as a company that cares about the environment but also benefits them in a second way as it reduces insurance claims and therefore reduces their payouts and equally benefits both the community and the company. Finally, leaders need to consider being a company with ethical values because investor’s and shareholders are now using a company’s ethical stance as criteria to evaluate investments and stocks. An example of this is the “specifically designed sub index of the London Stock Exchange, the FTSE4Good (FTSE – Financial Times Stock Exchange). ” (Andersen, 2004: 19).

To be included in this index, constituents must be screened according to the criteria of the FTSE4Good, which covers environmental sustainability, social issues and stakeholder relations and human rights. Therefore having a favourable ethical profile can attract investors and not having one can deter them. In addition to this, for the government ethical standards of a business are now a key factor in the procurement of grants and influence. Having looked at these benefits, a leader also needs to consider the strength of being ethical by looking at the dangers and probable penalties of unethical business behaviour.

As a society we have access to a wide variety of information on organisations. As a result, there are constantly court cases against companies for unethical behaviour, for example in 2007 cruise company Carnival was being sued over several cases of mistreatment of workers and the covering up of environmental damage. Settling these claims can cost billions of pounds, can lead to bankruptcy and the damage to reputation can be irreparable. A further example of this is that if a customer is treated unfairly then this bad reputation will be passed on by word of mouth.

In relation to this a further factor that leaders need to consider when creating a business strategy is that unethical behaviour in manufacturing can lead to bad reputation. An example of this is the recent case with Primark, who were discovered to be using suppliers in Southern India who were using child labour. Although they claimed that they were unaware of this situation it still created a great deal of bad publicity for the company. Negative publicity can equate to decreased competitive advantage, increased costs as companies have to increase public relations and advertising.

It can also have effects on sales, profits, morale and the day to day running of the business. In addition to this a bad reputation cannot be easily changed and it consumers suspicion of a company’s intentions and future actions. In relation to this “journalists writing about companies tend to fall victim of the so called Halo effect” (Andersen, 2004: 19), which means that a company that has a bad reputation tend to be seen negatively whatever they do. As the media have the power to make or break companies it is essential that leaders ensure that they are ethical and that there reputations remain intact.

In this sense ethical behavior can be seen as a form of insurance against regulatory acts. An example of a company that have taken this on board is Mark’s and Spencer, who have recently launched a new Per Una lingerie range that is “carbon neutral” and is produced in an eco-factory as they become more successful in listening to what their customers want. A final problem to leaders of having an unethical approach is that there are always pressure groups and special interest group such as Greenpeace waiting to launch global campaigns against companies that act unethically, which can affect both the organisation and its chances of survival.

An example of this is that in 2003 the Barclay twins, who were the two new leaders of Littlewoods mail order and clothing store, withdrew the companies membership of the Ethical Trading Initiative (ETI), which was put in place to stop companies from using child or forced labor. This not only resulted in the sacking employees but was also provoked large volumes of criticism for charities, unions and government ministers all of which impacted on the company’s reputation. This increased government interest can also lead to regulations that create rigid trade and less freedom.

Having looked at the two topics: leadership and business ethics in some detail, it is clear to see that there is an important link between the two. A business operates according to the visions and values of its leader and whilst some may see business ethics as a fad leaders need to be aware that there is a high demand for ethical behaviour in our society today. It is fair to say that the objective of most companies, as Friedman said is to earn as much money as possible. Therefore, as a leader, that person is an employee of the owners of the business and so has a primary responsibility to them to conduct the business in line with their wishes.

In addition to this there is a strong argument as to why a leader should not consider ethical issues as a vital part of their job. Many people share the skepticisms of Milton Friedman and Adam Smith’s about the benefits that can be expected from “those who affected to trade for the public good. ” This is a fact that has been discussed in the essay and the implementing a practicing ethical business can cost a company, for example, spending money on reducing pollution costs and choosing more expensive but ethical suppliers.

In Friedman’s book Capitalism and Freedom, he sums up this argument by saying that “there is one and only one ethical responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud” (Friedman, 1970). However, the other side of this argument is that in order for organization to survive in a competitive and changing environment, leaders must develop strong ethical standards and successfully implement them throughout the company.

By trading in an ethical manner a leader will see a wide variety of benefits and effects on business practices, such as increasing sales, retaining employees, reducing litigation and in some cases increasing a company’s profit. In addition to this, another “testament to its viability is that despite being describes as a passing phase, business ethics which emerged in the 1970’s has constantly gained more and more awareness and support, making it one of the longest surviving management fads” (Andersen, 2004: 24).

Having considered this fact and all of the benefits, it is a hard for a leader to argue against the merits of an ethical approach to business. Overall, I believe that in order to remain competitive and to insure the survival of a business an organization must respect and regard their social and ethical responsibility as well as maintaining profitability as a central goal. It is fair to say that good ethics is good business since nowadays it can be directly linked to the company’s success.

Moreover, good ethics is good business because business partners, suppliers and customers expect and presevere business relationships that are upright and responsible. This is a factor that is going to become increasingly more important as consumers become more aware of ethical issues and the need for them to be considered, e. g. the increase in consumer awareness of carbon footprint. Therefore an ethical reputation will be important to the success of a company and it is a leader’s job to ensure that ethics is part of a companies strategy and is successfully implemented.

References • K. R. Andrews, 1989, Ethics in Practice: Managing the Moral Corporation, Harvard Business School Publishing Division, pg 7, 71, 72, 260 • R Gill, 2006, Theory and practice of Leadership, SAGE Publications Ltd, pg. 36, 48, 96, 176, 272 • Stogdill, R. M (1974), Handbook of Leadership: A Survey of Theory and Research. New York Free Press: quoted in P. G Northouse, 2004, Leadership Theory and Practice, SAGE Publications Ltd, pg 2 • P. G Northouse, 2004, Leadership Theory and Practice, SAGE Publications Ltd, pg 185 • P. F.

Drucker, 2007, The Practise of Management, Butterworth-Heinemann Ltd; 2Rev Ed edition: quoted in M. Paliwal, 2006, Business Ethics; New Age International Ltd, pg 4 • Kotter J. P (1990) A force for change: How leadership differs from management. New York: Free Press: quoted in P. G Northouse, 2004, Leadership Theory and Practice, SAGE Publications Ltd, pg 8 • Bennis, W. G & Nanus, B (1985) Leaders: The strategies for taking charge. New York: Harper & Row: quoted in P. G Northouse, 2004, Leadership Theory and Practice, SAGE Publications Ltd, pg 8 • Burke, W.

W (1986) Leadership as empowering others. San Francisco, CA:Jossey –Bass, pg 68: quoted in R Gill, 2006, Theory and practice of Leadership, SAGE Publications Ltd, pg 27 • Conger, J. A (2004) Developing leadership capability: What’s inside the black box. Academy of management executive, 18 (3), pg 136 • Winston, R 2003, Human Instinct Paper presented at the sixth Annual Leadership conference, Ross – on – Wye, 23rd-24th September: quoted in R Gill, 2006, Theory and practice of Leadership, SAGE Publications Ltd, pg. 73 • P. Singer, 1993, A Companion to Ethics, Blackwell, p, v. N. Preston, 2007, Understanding Ethics, Federation Press; 3rd Revised edition, pg 36, 40, 41, 42 • E. Vallance, 1995, Business Ethics at Work, Cambridge university Press, pg 4 • Milton Freidman (1970) ‘The Social Responsibility of Business is to Increase its Profits’ quoted in T. Beauchamp and N. Bowie, 2004, Ethical Theory and Business, 7th ed. , London, Pearson, p. 51. • M. Paliwal, 2006, Business Ethics; New Age International Ltd, pg 7, 9, 10 • McNamara, 2006: quoted in M. Paliwal, 2006, Business Ethics; New Age International Ltd, pg 7 • T.

Donaldson, Ethics in Business: A New Look: quoted in M Paliwal, 2006, Business Ethics; New Age International Ltd, pg 9 • Yukl, G. A (1989), Leadership in organisations, (2nd ed), Englewood Cliffs, NJ: Prentice Hall: quoted in P. G Northouse, 2004, Leadership Theory and Practice, SAGE Publications Ltd, pg 10 • B. Andersen, ASQ Mission, Bringing Business Ethics to Life: Achieving Corporate Social Responsibility, Pg 7, 9, 12, 13, 19, 22,24 • Maignin, 1987: quoted in B. Andersen, ASQ Mission, Bringing Business Ethics to Life: Achieving Corporate Social Responsibility, Pg 13 • www. FTSE4Good. com http://www. guardian. co. uk/business/2004/nov/02/ethicalbusiness. money, “Companies ethical reports branded ineffective”, Tuesday 2nd November 2004, Oliver Balch • http://www. cityam. com/index. php? news=16306, “Tesco in sweatshop scandal. ” 26/6/08 • http://www. guardian. co. uk/business/2008/jun/24/primark. retail, “Is this the end for Primark”, The Guardian, Tuesday 24th June 2008, Leo Hickman • http://www. guardian. co. uk/business/2003/feb/01/ethicalshopping. globalisation“Littlewood’s drops ethical trading code”, The Guardian, Saturday 1st February 2003, Simon Bowers and Julia Finch http://www. guardian. co. uk/business/2007/sep/02/5, “Named and shames, cities ethical dunces”, The Observer, Sunday 2nd September 2007, Heather Stewart and Zoe Wood • http://www. guardian. co. uk/lifeandstyle/2008/jul/25/ethicalfashion, “Can fashion play fair? ”, The Guardian, Friday 25th July 2008, Leo Hickman Bibliography • K. R. Andrews, 1989, Ethics in Practice: Managing the Moral Corporation, Harvard Business School Publishing Division • Simon Blackburn, 2001, Ethics: a very short introduction, Oxford press Inc New York • R Gill, 2006, Theory and practice of Leadership, SAGE Publications Ltd P. G Northouse, 2004, Leadership Theory and Practice, SAGE Publications Ltd, • Conger, J. A (2004) Developing leadership capability: What’s inside the black box. Academy of management executive, 18 (3) • E. Vallance, 1995, Business Ethics at Work, Cambridge university Press • M Paliwal, 2006, Business Ethics; New Age International Ltd • P. Singer, 1993, A Companion to Ethics, Blackwell • B. Andersen, 2004, Bringing Business Ethics to Life: Achieving Corporate Social Responsibility, ASQ Mission • J. Gallos, 2008, Business Leadership, Jossey –Bass, A Wiley Imprint K Grint, 2005, Leadership: Limits and Possibilities, Palgrave Macmillan • R. N Kanungo, M Mendonca, 1996, Ethical Dimensions of Leadership, SAGE Publications Ltd • B. Harvey, 1994, Business Ethics: A European Approach, Prentice Hall International UK Ltd • P. Griseri, 1998, Managing Values: Ethical Change in Organisations, Macmillan Business • J. N. Behrman, 1988, Essays on Ethics in Business and the Professions, Prentice Hall • V. E. Henderson, 1992, What’s Ethical in Business? , McGraw – Hill Inc • P. Wright, Managerial Leadership, Routledge • N. Preston, 2007, Understanding Ethics, Federation Press; 3rd Revised edition.

Responsibility

A responsible person Is one who is able to act without guidance or supervision, because he or she Is accountable and answerable for his or her behavior. C) You will be prepared for both the risks and the opportunities that accompany new roles. C) Your responsibility will grow, giving you an edge on others O A person who does as promised deed can be considered as reliable. C) How does being responsible pay?

C) A person who has a reputation of being responsible is trusted to do things on his or her own, without supervision. Leads to self esteem, promotions, Develops Leadership Qualities O Questions How do you handle yourself in unexpected or uncomfortable situations? An effective leader will adapt to new surroundings and situations adjust. O You can develop Important qualities Having these qualities Improves your self-esteem and Job situations Major qualities include open-mindedness, enthusiasm. Inconsistency, courage, and confidence C) You will be prepared to deal with real life situations Example is getting a job O Gain feedback on your existing strengths – and weaknesses – as a leader Service Opportunities O it makes you get involved O colleges see the amount of service hours O by volunteering and helping others, you get to learn and see more about your community C) colleges want to see you being more productive and caring to others and not just yourself.

C) It gets you familiar with the environment of the working class and the business roll O questions do you volunteer at any organization? What does your organization do to help your community? Have you learned anything by doing this service? Develops Leadership Ability in Extracurricular Activities (D gives you ability to lead in your club/sport’s team C) gives you extra edge over other students/athletes C) enables you to hold a leadership position on a sport’s team In school or In a club (D gives you opportunity to hold office in student council