Ethical leadership

Ethical leadership, defining it as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement and decision-making”… [and] the evidence suggests that ethical leader behavior can have important positive effects on both individual and organizational effectiveness (Rubin et al 2010: 216-17).

In leadership we see morality magnified, and that is why the study of ethics is fundamental to our understanding of leadership. The study of ethics is about human relationships. It is about what we should do and what we should be like as human beings, as members of a group or society, and in the different roles that we play in life. It is about right and wrong and good and evil.

Leadership is a specific type of human relationship. Some assurances of this relationship are power and/or influence, vision, obligation, and responsibility. By understanding the ethics of this relationship, we gain a well understanding of leadership, because some of the vital issues in ethics are also the chief issues of leadership. They comprise the personal challenges of legitimacy, self-interest, and self-discipline, and moral obligations related to justice, duty, capability, and the greatest good. Its meaning and purpose is evolving
as does the business.

When it comes to an organization’s viewpoint, defining what is the ‘Right thing’ and whom or what should be the major concern for ethical decisions – the company, the shareholders, the stake holders or the whole society, plentiful questions arise.

Businesses that are proactive make ethical leadership a priority advantage in many ways. Here are three of the many ways that ethical leadership helps us contend:
1. Ethical consumerism is increasing. Consumers increasingly expect businesses to think beyond their own gain and to prove concern and care for a broad array of stakeholders. Businesses that demonstration concern produce the loyalty of increasingly savvy consumers who want to support ethical companies.
2. Ethical leadership and high-trust cultures bring out the best performance people have to offer and fetching out people’s best performance will help our businesses compete effectively in today’s global marketplace.
3. Having strong ethical leadership and a high-trust culture will help appeal and hold the best talent. The skilled and ethical people that we attract when we lead ethically will delight our customers, help us get more done, and improve the brand.

One of such organizational example from the industry of fashion is of H&M, the global fast fashion leader, has ramped up its sustainability and corporate social responsibility (CSR) efforts in recent years. Once an easy target for those critical of the clothing industry’s record on environmental and human rights problems, the micro-seasonal Swedish trendsetter can provide a bevy of statistics that would make most CSR professionals blush.

H&M’s business concept is to offer fashion and quality at the best price. Quality also means that H&M products must be manufactured in a way that is environmentally and socially sustainable. Therefore dedicated to working closely with their suppliers and stakeholders to achieve a long-term, sustainable social and environmental standard in the factories that manufacture H&M’s products and in the operations of other business partners.
H&M’s Code of Conduct specifies its requirement from their suppliers, their subcontractors and other business partners in order to accomplish their pledge to our Board of Directors, to their employees, customers, shareholders and to other stakeholders. It is the obligation of H&M’s suppliers and other business partners to update their subcontractors about H&M’s Code of Conduct and Policy for Homework, and to ensure that these are implemented in every factory and workplace that produces, finishes packs or otherwise handles goods or performs services for H&M.

H&M base its requirements chiefly on internationally agreed standards such as the Universal Declaration of Human Rights, The UN Convention on the Rights of the Child and applicable ILO Conventions, as well as national legislation. It works at the following levels:
1. Legal Requirements
2. Child Labour Is Not Accepted
3. Health And Safety
4. Workers’ Rights
5. Housing Conditions
6. Environment
7. Systems Approach
8. Monitoring And Enforcement

“The future of ethical leadership involves a high degree of ethical awareness and ethical competence that is intentionally managed by business leaders. It involves considering a broader definition of ‘stakeholders,’ a desire to give back and contribute to the greater good, and a lower tolerance for harm to people and the planet. “Linda Fisher Thornton, It’s Time to Practice Ethical Leadership, January 2013 Issue.
Meeting to the time where ethical leadership is a strategic gain in fashion industry. The future ethical leaders need to demonstrate the diversity and flexibility of the team. To appraise the next making of fashion designers, entrepreneurs and consumers on the urgency and approaches for designing, producing and consuming sustainably. Having strong ethical leadership and a high-trust culture will help appeal and retain the best talent. The competent and ethical people that magnetise when direct ethically, will amuse the customers and improve the brand.

List of References:
Heres .L & Lasthuizen. K (2010) ‘ETHICAL LEADERSHIP: A Variform Universal Phenomenon’ [online] available from https://www.law.kuleuven.be/integriteit/egpa/egpa2010/heres-lasthuizen_ethical-leadership-a-variform.pdf [27 March 2014]
Mullins.L.J with Christy.G (2013), ‘Corporate Responsibility and Ethics ‘Management & Organisational Behavior, Tenth edition, 17: 659-688
sagepub.com ‘The Leader’s Light or Shadow’ [online] available from http://www.sagepub.com/upm-data/39589_Chapter1.pdf [27 March 2014]
Fishaer.L (2013) ‘How Is Ethical Leadership a Strategic Advantage?’ [online] available from http://leadingincontext.com/2013/01/23/howis-ethical-leadership-a-strategic-advantage/ [28 March 2014]
[online] available from http://www.ukessays.com/essays/marketing/ethical-brand-management-strategies-for-fashion-industry-marketing-essay.php#ixzz2xCqPePqb%5B28 March 2014]
Kaye.L (2012) ‘H&M, The Ethical Fast Fashion Leader?’ [online] available from http://www.triplepundit.com/2012/04/hm-sustainability-report-2011/%5B28 March 2013]
Ciulla .B.J ‘Ethics and Leadership Effectiveness’ [online] available from http://www.ila-net.org/Members/Directory/DownloadS/Antonakis-Ciulla-13.pdf [28 March 2014]

Managing Change

“Change is nothing new and a simple fact of life. Some people actively thrive on new challenges and constant change, while others prefer the comfort of the status quo and strongly resist any change. It is all down to the personality of the individual and there is little management can do about resistance to change (Mullins 2010: 753).”

In today’s dynamic work environment there are multiple enablers and accelerators of change, whether it is technology advances, complex multi-national organisations, the impact of globalisation or a challenging economic situation, businesses are required to re-frame their view of “normal”.

We live in a moment of history where change is so speeded up that we begin to see the present only when it is already disappearing – R.D Laing

Leaders are challenged with a swelling rate of change and complexity and need to find ways to deal with it. Leading companies through change has become different from how it was a decade or two ago.

For businesses to flourish and lead they will need to break away from expecting the day-to-day operations to continuously fall into a static and predictable pattern that may include short periods of change. The new norm is continuous change, not the absence of change. Businesses that embrace this “new norm” will move from purely responding to trends, to shaping them and leading them.

While discussing role that managers play in avoiding and overcoming resistance to change and the value that resistance can bring to the change process in an organisation. There is no single solution to delivering successful change, but there are clear steps that businesses can take to reduce and eventually eliminate the change gap between the failures and the successes. Businesses can no longer afford an ad-hoc approach to change management.

         

According to Rosabeth Moss Kanter, Professor of Business Administration at Harvard Business School, “The best tool for leaders of change is to understand the predictable, universal sources of resistance in each situation and then strategize around them.”

Prior to making changes that will affect others, it’s important for managers to carefully think through:

1) What the specific changes include,

2) Who the changes will impact,

3) How it will impact them, and

4) How they might react (understanding reasons why people might resist the changes)..

Being aware of the reasons people resist change will help you implement change with fewer issues. Eliminate fear of the unknown by letting affected groups know there will be changes coming. Proactively involving others in the changes before they arise and asking them to offer input and feedback can avoid mistrust and the feeling of loss of control. By providing a clear vision and reason for the changes along with a timetable or schedule of what to expect and when to expect it will avert bad situation. Effecting change is never painless, but it can be a lot less painful for everyone when it is done with empathy and compassion after thorough analysis, planning, and strategising

A solution which has become increasingly popular for dealing with resistance to change is to get the people involved to “participate” in making the change. But as a practical matter “participation” as a device is not a good way for managers to think about the problem. In fact, it may lead to trouble. The key to the problem is to understand the true nature of resistance. Actually, what employees resist is usually not technical change but social change—the change in their human relationships that generally accompanies technical change.

Resistance is usually produced because of certain blind spots and attitudes which staff specialists have as a result of their preoccupation with the technical aspects of new ideas. Managers can take concrete steps to deal constructively with these staff attitudes. The steps include emphasizing new standards of performance for staff specialists and encouraging them to think in different ways, as well as making use of the fact that signs of resistance can serve as a practical warning signal in directing and timing technological changes.

In an organization that has a culture of trust; transparent communication; involved, engaged employees; and positive interpersonal relationships, resistance to change is easy to see – and also much less likely to occur. Employees feel free to tell their boss what they think and to have open exchanges with managers.

Lets take an example of Prada:

Prada (CEO): At Prada we have no secrets. At many companies managers in charge of a particular function—whether design or merchandising—dislike it when people in their department talk to colleagues in other departments. They want to maintain control, and they often do so by hoarding knowledge and restricting communication. 

In fact, a culture that values transparency gives managers more control than one that values control. Transparency between functions enables Prada to respond to changing market tastes very quickly. They don’t design for the sake of designing; their creative energy is integrated with their commercial ambitions. Not unique in this respect, in 1970s Yves Saint Laurent, Chanel, Gucci, and Giorgio Armani were also good at blending the creative and the commercial. To a great extent they, like Prada, owe their integration skills to a partnership at the top. People working closely with Miuccia in design will talk often to people working closely with her on the commercial side. This enables them to be fast. Any department store will tell that Prada delivers clothing and accessories very quickly after a design has been presented on the runway. It’s difficult to overestimate the importance of this capability in the time-sensitive business of fashion.

Further concluding , Change management in any industry implies the same basic process, but since change in Fashion can be particularly challenging, it is essential that a change management model is meticulously applied in order to identify risks and optimize success. As applied in case  “Remaking of JC Penny’s Organizational Culture”

Naturally, managers must let people have control over what they do. Good designers should be the masters of their designs, or their ideas may be spoiled. Good managers shouldn’t be second-guessed, or no one will want to make decisions. But control must not become obstruction. A designer or a manager should be able to exercise it without limiting access to information.

References:

forbes.com ‘Overcome The 5 Main Reasons People Resist Change’ [Online] available from http://www.forbes.com/sites/lisaquast/2012/11/26/overcome-the-5-main-reasons-people-resist-change/[22 March 2014]

pdf.whitepaper ‘Managing Change in The Fashion Industry’ [Online] available from http://www.lectra.com/binaries/Change-Management_white-paper_en_tcm31-219635.pdf[22 March 2014]

hbr.org ‘Prada’s CEO on Staying Independent in a Consolidating Industry’ [Online] available from http://hbr.org/2012/09/pradas-ceo-on-staying-independent-in-a-consolidating-industry/ar/1[22 March 2014]

cmuscm.blogspot ‘Fashion Forward – Zara’s Supply Chain Strategies’ [Online] available from http://cmuscm.blogspot.co.uk/2012/09/fashion-forward-zaras-supply-chain.html[23 March 2014]

torbenrick.eu ‘Mind the gap – closing the change management gap’ [Online] available from http://www.torbenrick.eu/blog/change-management/closing-the-change-management-gap/%5B23 March 2014]

torbenrick.eu ‘Infographic: Resistance to change in organisations’ [Online] available from http://www.torbenrick.eu/blog/change-management/infographic-resistance-to-change-in-organisations/%5B23 March 2014]

Managing Change

“Change is nothing new and a simple fact of life. Some people actively thrive on new challenges and constant change, while others prefer the comfort of the status quo and strongly resist any change. It is all down to the personality of the individual and there is little management can do about resistance to change (Mullins 2010: 753).”

In today’s dynamic work environment there are multiple enablers and accelerators of change, whether it is technology advances, complex multi-national organisations, the impact of globalisation or a challenging economic situation, businesses are required to re-frame their view of “normal”.

We live in a moment of history where change is so speeded up that we begin to see the present only when it is already disappearing – R.D Laing

Leaders are challenged with a swelling rate of change and complexity and need to find ways to deal with it. Leading companies through change has become different from how it was a decade or two ago.

For businesses to flourish and lead they will need to break away from expecting the day-to-day operations to continuously fall into a static and predictable pattern that may include short periods of change. The new norm is continuous change, not the absence of change. Businesses that embrace this “new norm” will move from purely responding to trends, to shaping them and leading them.

 While discussing role that managers play in avoiding and overcoming resistance to change and the value that resistance can bring to the change process in an organisation. There is no single solution to delivering successful change, but there are clear steps that businesses can take to reduce and eventually eliminate the change gap between the failures and the successes. Businesses can no longer afford an ad-hoc approach to change management.

 

Most effective leadership style to managing the work of subordinates

Conceivably there was a phase when the calling of the manager and that of the leader could be separated. But in the new economy, where value comes progressively from the knowledge of people, and where workers are no longer undistinguishable gears in an industrial machine, management and leadership are not easily separated. People look to their managers, not just to assign them a task, but to define for them a purpose. And managers must organize workers, not just to maximize efficiency, but to foster skills, cultivate talent and inspire outcomes.

The late management guru Peter Drucker was one of the first to be aware of this fact, as he was to identify so many other management veracities. He identified the emergence of the “knowledge worker,” and the profound differences that would cause in the mode business was organized.

With the upsurge of the knowledge worker, “one does not ‘manage’ people,” Mr. Drucker wrote. “The task is to lead people. And the goal is to make productive the specific strengths and knowledge of every individual.”

Over the years there has been a lot of debate on the similarities and differences between management and leadership. Weathersby (1999) argued that “management is the allocation of scarce resources against an organization’s objective, the setting of priorities, the design of work and the achievement of results” whereas leadership “focuses on the creation of a common vision”. Schruijer and Vansina (1999) proposed that management is about “doing things right” and leadership is “doing the right things”. Both studies give the idea to view the management function as an administrative role while placing the leadership function as a visionary role.
Locander, Luechauer, and Pope (2007) support this idea by arguing that leadership is like theater and that the leader is the visible manifestation of an organization’s or project’s success or failure. Therefore, he or she must involve the followers to believe in and attain a anticipated result “By paying attention to what people want and expect, and by searching for solutions to problems, the leader can act appropriately and fulfill the desired role” (Locander, et. al, 2007).

Leadership style and management style are often used interchangeably, but which term you select may be suggestive of how you perceive yourself as a leader. Management signifies power, possession and sole authority. According to Kathy Barany, PHR, principal of Strategic Management Solutions,

Managers typically claim ownership of subordinates, viewing them as “my employees.” Leaders generally see themselves more as mentors and coaches and, according to Barany, are likely to take a first among equals approach to team building.

Kotter argues that leadership and management involve two distinct but complementary sets of action. Leadership is about coping with change while management is about coping with complexity.

* From Peter G. Northouse’s Leadership: Theory and Practice, Fourth Edition (2007) in which he draws from John Kotter’s A Force for Change: How Leadership Differs from Management, (1990).

Which personal style should managers adopt to ensure success?

What is the most effective approach to managing the work of subordinates?

These questions have been extensively researched and debated over the last century, and while the general consensus has moved away from ‘command and control’ to management and leadership towards more consultative and participative approaches, there is no single ideal, as the best approach may vary according to circumstances and individual characteristics (CMI 2013).

With reference to the point of view by the CMI (CMI 2013)

I would like to state Manager and leader entirely are two different roles, often we use the terms interchangeably. Managers are enablers of their team member’s success. They warrant that their people have everything they need to be productive and fruitful, well trained, contented and have least roadblocks in their track. They are groomed for the next level, recognized for great performance and coached through their challenges.

On the contrary, a leader can be anyone within the team who possess certain talent, creative out of the box thinking and has great ideas, who have experience in a certain aspect of the business or project that can prove useful to the manager and the team. A leader leads based on strengths, not titles.

The best managers consistently allow different leaders to emerge and inspire their teammates (and themselves!) to the next level.

Adapted from “The Wall Street Journal Guide to Management” by Alan Murray, published by Harper Business.

“Leadership and management must go hand in hand. They are not the same thing. But they are necessarily linked, and complementary. Any effort to separate the two is likely to cause more problems than it solves.”

Chen (2006) states “Business is often a roller coaster of highs and lows. Therefore it is to be expected that high performance leaders are more skilled at motivating themselves and others in challenging situations”.

As a member of a team when you’re dealing with constant challenges and changes, and you’re in uncharted territory with no means of knowing what comes next, no one can be expected to have all the answers.

Not only do the greatest teammates allow different leaders to consistently emerge based on their strengths, but also they recognize that leadership can and should be situational, depending on team’s need. Sometimes a teammate needs a warm hug. At time the team needs a visionary, a new style of coaching, someone to lead the way.

In this way, performance is directed by the social and emotional connections among members, not the expectations of the boss. When this occurs, the manager is managing through the team by using the social bonds among members to shape behavior.

Thus, instead of being imposed and directed, in a group I would prefer suggestions, support, define, focus on, talk about, expect, hire for, lead discussions about, and evaluate performance against the conditions that foster the spontaneous formation of a team. A formal authority can be beneficial for pointing people’s time and attention to the right issues and conditions. My role in a team should foster and then sustain the conditions that help me perform efficiently. One might not feel completely comfortable with such an indirect approach, but that’s how teams work.

References:

smallbusiness.chron ‘What Effect Does Leadership Style Have on Subordinates?’ [Online] available from http://smallbusiness.chron.com/effect-leadership-style-subordinates-54296.html [09 March 2014]

Weathersby, G. (1999). Leadership vs. Management. Management Review, 88, 5. [online] available from http://ascelibrary.org/doi/abs/10.1061/(ASCE)1532-6748(2008)8:2(61) [09 March 2014]

voices.yahoo.com ‘Leadership and Management: A Comparative Essay’ [online] available from http://voices.yahoo.com/leadership-management-comparative-essay-561790.html[09 March 2014]

voices.yahoo.com ‘Contemporary Leadership and Management Issues and Arguments’ [online] available from http://voices.yahoo.com/contemporary-leadership-management-issues-and-87175.html?cat=3[09 March 2014]

blogs.hbr.org ‘Good Managers Lead Through a Team’ [online] available from http://blogs.hbr.org/2012/04/good-managers-lead-through-a-t/[09 March 2014]

guides.wsj.com ’What is the Difference Between Management and Leadership?’ [Online] available from http://guides.wsj.com/management/developing-a-leadership-style/what-is-the-difference-between-management-and-leadership/[09 March 2014]

nelsontouchconsulting ‘Leadership vs. Management’ [Online] available from http://nelsontouchconsulting.wordpress.com/2011/02/22/leadership-vs-management/[09 March 2014]

stretegic-management-sollutions-logo.png