6 Define authentic
leadership and show
why effective leaders
exemplify ethics
and trust,
authentic
Neaders Leaders who
know who they are,
know what they believe
im and value, and act on
those values and beliefs
openly and candidly,
‘Ther followers would
‘consider ther to be
‘ethical people.
Ethics and trust
Although theories have increased our understanding of effect
not explicitly deal with the role of ethics and trust, which soe 2hip,
to complete the picture. Here, we consider these two conceps sae ee
Under the
authentic leadership.”
What is authentic leadership?
Gandhi is a great example an individual who was an authentic leade
genuine and authentic in that he did not pretend to be something he w, me
the role of what he thought he should be asa leader. His style of auth" °tDy
ship had profound effects on the history ofboth India and South Aig, 4°
leaders know who they are, know what they believe in and value, and a, Authen
values and beliefs openly and candidly. Their followers consider them ethi cae those
‘The primary quality produced by authentic leadership, therefore, is trust. Ay ‘People,
leaders share information, encourage open communication and stick to thei te
‘The result: people come to have faith in them.
‘Because the concept is new, there has been little research on authentic leader
ip
However itis a promising way to think about ethics and trust in leadership be,
it focuses on the moral aspects of being a leader. Transformational or charismart
leader ean have a vision and communicate it persuasively, bt sometimes the ving’
is waong (a in the case of Hits), or the leader is more concemmed with his ory
cown needs or pleasures.!
Ethics and leaders!
Only recently have researchers begun to consider the ethical
ow? One reason may be the growing interest in ethics throughout the
ship.!! Why n
field of management, Another may be the discovery that many past leaders sufered
‘ethical shortcomings. Some companies, like Boeing, are tying executive compensation
to ethics to reinforce the idea that,in CEO Jim McNerney’ words, there’ no compro-
mise between doing things the right way and performance”. In South Africa, the
eual chain Woolworths have gone to great lengths under their ‘good business journey’
initiative to implement ethical and morally responsible business practices. These have
included various initiatives that focus on global ethical trade and environmental issues.
“This is done while highlighting these initiatives to their customers.
Ethics and leadership intersect at a number of junctures. We can think of trans-
formational leaders as fostering moral virtue when they try to change the attitudes
and behaviours of followers." Charisma, too, has an ethical component. Unethical
leaders use their charisma to enhance power over followers, directed toward self
serving ends. Ethical leaders use it ina socially constructive way to serve others."
Leaders who treat their followers with fairness, especially by providing, honest,
frequent and accurate information, are seen as more effective." Leaders rated highly
‘ethical tend to have followers who engage in high levels of organisational citizenshi
fechaviours and who have an increased willingness to bring problems to the leaden’
tention. Because top executives set the moral tone for an organisation, they need
to set high ethical standards, demonstrate them through their own behaviour, and
Sse
Tube
epencourage and reward is
siving themselves large
socalsed charismatic
Irodersip leadership
{vce that tats that
ter coney ves
tot ober centred
vessel cented and
Sino model ethical
conduct
were exploited nd made
‘made millions’ whieh th
Under the leadershi
(SARS) became one of
Gordhan has been rec
values the opinions o
integrity, honesty and.
2 Minister of Finan
effective in the compl
Leadership is not
means a leader uses i
Scholars have tried t
idea of socialised
(not self-centered)
servant leadership
Jeadesup style marked
ty going beyond the
ieaders own seltnterest
and instead focusing on
opportunities to help
followers grow and
develop
FeatuestNPRA
“stud teacher and high-ranking cleric of the Angican
ch, Desmond Tat sa servant leader as he has alays
gare beyond his ow interests to hep other people. Des"nand
Tus best known fr his opposition to apartheid in South
and his adhocacy for human rights worldwide. He has
dozens of books, most recenty God's Dream, an
usted stay for children that emphasises multicultural
Tutu, ws Cape Town's archbishop emeritus and
"onthe Mabel Peace Pie in 1984, chai ofa consortium
var leaders called The Elders, which he co-founded with
Neon Mandela, Kofi Annan, Jimmy Carter and Muhammad
rng others.
Chapter
Leadership
integrity in others, while avoiding abuses of power, such as
longtime emploeas Seca atl bonuses while seeking to cu costs by ying off
publicised rene seach 20n8 wee, according to some, to Mame for the wily
tnd deaths at the Marikana mine. They claimed that the workers
to work under ap
ey said was the motivation for the violence.
ip of Pravin Gordhan, the South African Revenue Services
the world’s most effective tax colletion agencies. Pravin
ognised as someone who takes accountability for his ations
# others; does not abuse his power; displays virtues such as
‘rust; and focuses on the higher purpose he serves. In his role
ee he showed that he was not only virtuous, but aso highly
lex task that had been assigned to him.
"alue-fies In assessing its effectiveness, we need to address the
8 trying to achieve goals, as well asthe content of those goals.
0 integrate ethical and charismatic leadership by advancing the
charismatic leadership ~ leadership that conveys other-centered
values by leaders who model ethical conduct." Socalised charis
‘matic leaders are able to bring employce values in ine with their own values through
thei words and actions!" i .
lling conditions, while the ‘mine owners
Servant leadership
Scholars have recently considered ethical leadership
from a new angle by examining servant leadership.'”
Servant leaders go beyond their own self-interest and
focus on opportunites to help followers grow and
develop. They do not use power to achieve ends instead
they emphasise persuasion. Characteristic behaviours
include listening, empathising, persuading, accepting
stewardship and actively developing followers’ poten-
til. Because servant leadership focuses on serving the
needs of others, research has focused on its outcomes,
for the wellbeing of followers. The much-loved and
respected Emeritus Archbishop Desmond Tutu is
often used as an example ofa servant leader.
Servant leadership falls in the category of values-
based leadership. Transformational leadership, authentic
leadership and ethical leadership all fll within ehis
category. They are in some ways similar (in terms of
‘onceptualisation and operationalsaton) and in other
ways not. For example, servant and transformational
leadership styles are similar in that they are both value
based. However, the two leadership styles differin terms
ofthe focus ofthe leaders. For transformational leaders,
achieving the objectives of their organisations is their
most important activin, On the other hand, servant
leaders focus on the followers needs. In servant lad-
ership the emphasis on the welfare of followers could be
problematic when the needs of organisations are incom
patible with the welfire of employees (for example,
when downsizing or retenching staf)
468|
Wh i :
yen one compares this operationalisation of
conceptualisation of servant leadershi OF authentic lea
ship, it reveals an overlay of Sth
tics: authenticity and humility. Ethical leadership i
i ical leadership is simi charaggt
terms of caring for people, integrity, rustworthencas ct Sent lade
> q ss laden
ness and serving the goog Pk
whole. In ethical leadership, the emphasis is. mo
behavou, whereas sera adehip hast sone feat ee Heo
sec ofthe flowe. On the derlopme®
hat are the effects of servant leadership? One =
found that it resulted in higher levels of ponatvewrions 2
efficacy and perceptions of justice, which all were related to organisation oS.
behaviour” This relationship between servant leadership and follower hip
stronger when followers are focused on being dutiful and responsible ¢t
servant leadership inereases team potency (a belie that one’s team hs shor 8
skils and abies), which, in tun, lads to higher levels of group perirec™
“Third, a study with a nationally representative sample of 250 workers fomnates”
levels of citizenship associated with a focus on growth and advancement, it
snp ehulesncateloetth higher Nordstof retire: petoamsace tA See
conducted in South Aftica found significant postive relationships between
leadership, team effectiveness and organisational citizenship behaviour (OCB) 8"
Servant leadership may be more prevalent and more effective in certain cul
than in others" When asked to draw images of leaders, US. subjects tend ts de
them in front of the group, giving orders to followers. Singaporeans tend to day
leaders at the back of the group, acting more to gather a groups opinions toptr
and then unify them from the rer. This suggests the East Asian prototype is more
Tike a cervant leader, which might mean servant leadership is more effective in thee
Pein,
cultures.
Public Protector: What we need
ethical leaders ra
public Protector Thuli Madonsela says the abuse of power and unethical leadership go
hand in hand, both in the public and the private sector. There is massive maladmins-
tration in South Aitica because of unethical leadership. “Without an ethical socety we
cannot expect ethical leadership in government,” Madonsela told delegates ata Tomar
row’s Leaders Convention in Johannesburg,” The biggest challenge is leading yourse
sucessfully.”
Examples of the abuse of power and unethical leadership include iregularties
in state tender procedures and allegations of corruption within the auction industy.
Ethical leadership was vital, especially in Africa, she said.”"We need leaders to step uP
‘and think out of the box... We need leaders wth new ideas.” According to Madonsel,
titles do not make leaders. She said, "If you lean heavily ona title you are nota leader
itis just a position you hold.”
She said there was a link between ethical and sustainable leadership. Mad
used the example of business leaders offering bribes to get what they wanted. “Sor
times you succeed but eventually you get caught and everything goes down the drat
Hence te Ink between ethical and sustainable leadership. Ethical leadership PE
lifeblood of sustainable leadership in your personal life and in business.”
Madonsela said that with ethical leadership Africa would lve upto the idea of 28
Aftcan renasance, "We can do it f you say you donot want maladinitation «8?
do not engage in it. If you lead yourself successfully .. you will remain ‘ethical," she said
Sources Our, G. (13 March 2012 ) Publ Pte: What we need ae etal eden, MBS
See oi Suman €. 012) etal adap I the pub sett. Oreos NaeMAY
ion etucmontorcozvaricles/tia-adeshp pa acesed 20 September 2016.
fonselaChapter
Leadership
Trust and leadership
to anothe ee hcl tate that exis when you agree to make youn vulnerable
ou” Eee fain ou have positive expectations about how things are going totum
to take a ch ‘ough you are not completely in contro ofthe situation, you ae willing
ase Ran thatthe other person will come through for you.
serious advene nay tribute associated with leadership; breaking it can have
the leaders nek eno” & SF0Up performance. As one author noted "Pat of
lem, fk has been, and continues to be, working with people to find and solve
thy aay Bt whether leaders gun aces to the knowledge and creative thinking
tn eed to solve problems depends on how much people ust them, Trust and
etiness modulate the leader’ access to knowledge and cooperation.""*
gars who trast leader are confident their rights and interests wl not be
Bee. Tansformavonal leaders create support forthe dein part By arin
that their direction wil bein everyone's best interests, People ae unlkely took up
Trot Lllow someone they perceive as dishonest o likely to take advantage of them.
ws 4s You might expect, transformational leaders do generate higher levels of trust
fiom their fllower, which in um elated to higher eves of team confidence and,
‘ultimately, higher levels of team performance."
In a simple contractual exchange of goods and services, your employer is legally
bound to pay you fr fulfilling your jb description. But today’ rapid reongansations,
sion of responsibility and collaborative team-based work style mean employment
relationships are not stable long-term contracts with explicit terms. Rather, they are
‘more fundamentally based on trusting relationships than ever before. You have to
‘must that if you show your supervisor a creative project youve been working 0, she
work steal the credit behind your back You have to trast that extra work you've been
doing will be recognised in your performance appraisal In contemporary organisa~
tons, where less works closely documented and specified, voluntary employee contri-
bution based on trusts absolutely necesary. And ony a tasted leader will be able to
‘encourage employees to reach beyond themselves to transformational goa.
How is trust developed?
‘Trust is not just about the leader, the characteristics of followers also influence its
development. What key characteristics lead us to believe a leader is trustworthy?
Evidence has identified three: integrity benevolence and ability (see Figure 13.4).
Propensity to must
Figure 13.4 The nature of ust
o sto honesty and truthfulness. It seems the most critical characteris
seer hers worerne™ When 30 wien poe wee hen
a list of 28 attributes related to leadership, they rated honesty the most important
by far™ Integrity also means having consistency between what you do and say.
Nothing is noticed more quichly.. than a discrepancy between what executives
preach and what they expect their associates to practi.
465Benevolence means the trusted person has your interests at hear,
are not necessarily in line with theirs. Caring and supportive behaviours jy
emotional bond between leaders and followers. “Patong
Ability encompasses an individual’s technical and interperson,
skills, Even a highly principled person with the best jomcldiass thee Ba
trusted to accomplish a positive outcome for you ifyou do nat have faith gC
ability to get the job done, Does the person know what he or she is et
You ae unlikely to listen to or depend on someone whose ailtes you do nye a
Pe,
Trust as a process
Trust propensity refers to how likely a particular employee is to trust a leade
people are simply more likely to believe others can be trusted." Those whoo
document every promise or conversation with ther supervisors are not very hg
trust propensity, and they probably arent going to take a leaders word for nye
“Those who think most people ae basically honest and forthright will be much 0%
likely to seek out evidence that their leaders have behaved in a trustworthy eee
Trust propensity is closely linked to the personality trait of agreeablenes, whi,
people with lower self-esteem are less likely to trust others.'””
‘Time is the final ingredient in the recipe for trust. We come to trust
on observing their behaviour over a period of time." Leaders need to pied
they have integrity, benevolence and ability in situations where trust is important —
say, where they could behave opportunistically or let employees down but do not,
Trust can also be won in the ability domain simply by demonstrating competence.
Leaders who break the psychological contract with workers, demonstrating they
aren't trustworthy, will find employees are less satisfied and less committed, have a
higher intent toward turnover, engage in less citizenship behaviour and have lower
task performance." Leaders who betray trust are especially likely to be evaluated
negatively by followers if there is already a low level of eader-member exchange
Once it is violated, trust can be regained, but only in certain situations that depend
on the type of violation." If the cause is lack of ability, i's usually best to apol-
cogise and recognise you should have done better. When lack of integrity is the
problem, though, apologies dont do much good. Regardless of the violation, simply
saying nothing or efusing to confirm or deny guilt is never an effective strategy for
regaining trust. Trust can be restored when we observe a consistent patter of trst-
worthy behaviour by the transgressor. However, ifthe transgressor used deception,
trust never fully returns, not even after apologies, promises or a consistent pattern of
trustworthy actions."
What are the consequences of trust?
‘Trust between supervisors and employees has a number of important advantages
Here are just a few that research has shown:
* Trust encourages taking risks: Whenever employees decide to deviate from the
usual way of doing things, orto take their supervisors’ word on a new direction,
they are taking risk. In both cases, a trusting relationship can facilitate that leap.
‘Trust facilitates information sharing: One big reason employees fail to express
concerns at work is that they do not feel psychologically safe revealing thelr
views. When managers demonstrate they will give employees’ ideas a fair hearing
and actively make changes, employees are more willing to speak out."
‘Trusting groups are more effective: When a leader sets a trusting tone in #
group, members are more willing to help each other and exert extra effort, which
further increases trust, Conversely, members of mistrusting groups tend to beChapter
Leadership
suspicious of one an :
sy ae se action tend to undermine and
«SERA deste pr ‘group. These actions tend to undermine
‘ust enhances productivity: ‘Th i °
espera: 2 The bottomline interest of companies also
sore ge ees ts. Engen rtisyperiortend
inforewag ERE Performance ratings. People respond to mistrust by concealing
formation and secretly pursuing thet own interests
Research in tit has adaressed various facto that foster tras in Fades and the
(utcomes ofthis trust. However, much of thi
conducted a mena However much ofthis has been diointed. Bake el (2007)
lysis and presented an integrative model of trust in leadership.
a — an integrative multi-level framework for understanding trust in lead-
ip, which is graphically depicted in Figure 135.
bity
+ serng competing
recon
+ Cjeatono enabling
swe
= Task inonledge
~ Sivan tnonledge
= Seting funcional
* cese'ustan
sapgonve conte.
~ Tarsfemataral
leadestip
behaviors
= Comatatie
leaesio
behaviours
= tarsal
eaestip
teharous
+ Coating
Figure 135 integrative mult-tevel framework for understanding trust in leadership
4673
The group
7 Demonstrate the role
mentoring plays in
‘our understanding of
leadership.
mentor & senior
employee who sponsors
and supports a less
experienced employee.
called a protege
Leading for the future: Mentoring
ley for developing furure leaders. Let’ co
‘well as its potential pitfalls.
Leaders often take responsi <
makes mentoring valuable, as
Mentoring ons
'A mentor is a senior employee who sponsors and supports a lest-expei,
cmploye, called a protégé. Successful mentors are good teachers. They presene get
‘rea liten well and empathise with protégé’ problems. Mentoring relaiongs®
serve Loth carer functions and psychosocial functions (sce Table 13.4).05 °°"
‘ological functions of the mentoring relationship
Table 13.4 Career and psychi
Lobbying to get the rtégecalenging | + Counseling the protégé o boleh e
ad visible assignments her self-confidence
Coaching he protege to help develop his | * Sharing personal expences withthe
‘orher skis and achieve work objectives | protege
+ Providing exposure to influential + Providing friendship and acceptance
Individuals within the organisation + Acting as a ole model |
+ protecting the protégé from possible risks
‘toh or her reputation
Sponsoring the protégé by nominating
im or her for potential advances or
promotions
‘Acting 2s a sounding board for ideas the
protégé might be hesitant to share with a
direct supervisor
‘Traditional informal mentoring relationships develop when leaders identify ales
experienced, lower-level employee who appears to have potential for future develop-
rent." The protégé will often be tested with a particularly challenging assignment.
Ifhe or she performs acceptably the mentor will develop the relationship, informally
showing the protégé how the organistton really works outside its formal structures
and procedures.
‘Why would a leader want to be a mentor?!” Many feel they have something
to share with the younger generation and want to provide a legacy. Mentoring also
provides unfiltered acces tothe attitudes of lower-ranking employees, and protég’s
can be an excellent source of early warning signal that identify potential organist
tional problems.
Power helps leaders perform better
‘Somewhat surprisingly, this statement appears to be partly true.
Allleaders, of course, have some power (we will consider power in the next chapte?:
But how do differences in power among leaders affect how they do their jobs? Most
‘of us probably think that when leaders obtain addtional power, they relax and rest 00
their laurels" - or worse, they abuse it :
a eee es —- suggests that this is not quite the case. Power actually
eh are ptishe ve ‘more effectively. In a series of experiments, researchers
ana uals were given power a leaders, they performed more effec
iy Power gives leaders @ greater sense of responsibilty toward their group. 4SrN
8 Address challenges to
the effectiveness of
leadership,
Chapter
Leadership
‘ore licly to exert effort and m
efor and make sacifces than those
Powerless (or think you a
are powerless), after a a
eee Powerless), after al, why bother
Suggested that if leaders happen to see 8
ries ra
lus, if leaders are given addit %
do not use it to dismiss as fest rama
ot really know whether
you're
Interestingly, though,
task as beneath them, thy
itis important that they
OF course, we do ne
Are all employees in an organisation e i
relationship? Ua iter t eee lhl w paris in mentoring
sn tm gen nee me
minorities and women are les likely to be chosen "People naturally move to
rena cts in mr ealy communi with hs with whom thy mos closely
identi." Senior male managers may alo select male protgés to minimise pro
les sch assem atone gon nt as PON mine poh
‘Many organisations have created formal programmes to ensure mentoring rla-
‘ionships are equally available to underrepresented racial groups and women (for
sample, Price WaterhouseCoopers and the Mediclinic horpital group)" Although
begun with the best intentions, these formal relationships are not as effective as
informal ones."
Poor planning and design may often be the reason. Mentor commitment is crit
ical to a programme’ effectiveness; mentors must see the relationship as beneficial
to themselves and the protéxé. The protégé, too, must fel he or she has input into
the relationship; someone who feels it’ foisted on him ot her will just go through
the motions." Formal mentoring programmes ae aso mos likely to succeed if they
appropriately match the work style, needs and skills of protégé and mentor."
‘You might assume mentoring is valuable for objective outcomes lke compensa-
tion and job performance, but research suggests the gains are primarily psychological.
(One review concluded, “Though mentoring may not be properly labeled an utterly
useless concept to careers, neither can it be argued to be as important as the main
‘effects of other influences on career success such as ability and personality.” It may
_fee! nice to have a mentor, but it does not appear that having 2 good mentor, or any
‘mentor, is critical to your career. Mentors may be effective not because of the functions
they provide, but because of the resources they can obtain: a mentor connected t0
1 powerful network can build relationships that will help the protégé advance. Most
evidence suggests that network ties, whether built through a mentor or not, are &
significant predictor of carer success“° Ifa mentors not well connected or nota very
strong performer, the best mentoring advice in the world will not be very beneficial
Challenges to the leadership construct
lid not understand to God. Why did
“In the 1500s, people ascribed all events they did not underst d
the cope fill? God Why did someone die? God: Now our all-purpose explanation
is leadership" Buc much of an orgisation sucesso fur isd fst
cuts the nfuene ofan Somesins rsa mane igh
crwrong place at a given time. In this section, we present two perspectives and one
il “huge tha challenge accepted bei abou the valu of eaderhip.
469
————— |attribution theory of
leadership 4 leadership
‘theory that says that.
leadership is merely an
«attribution that people
‘make about other
individuals
Leadership as an attribution
As you may remember from Chapter 3, attribution theory amines hoy
to make sense of cause-and-effect relationships. The attribution Pe
ship says leadership is merely an attribution people make about other igget lag
Thus we attribute to leaders intelligence, outgoing personaly, Strong yeahs
aggressiveness, understanding and industriousness."® At the onganina
wwe tend to see leaders, rightly or wrongly, as responsible for extremely, nal log
extremely positive performance.” ee
One longitudinal study of 128 major US. corporations found that
Perceptions of CEO charisma did not lead to objective company perf
‘company performance did lead to perceptions of charisma," Employee pen
of their leaders’ behaviours are significant predictors of whether or ‘not they bane
leader for failure, regardless of how the leader assesses him- or hence ‘eee
more than 3 000 employees from Western Europe, the United States and the Mi a
East found people who tended to ‘romantcise leadership in, Beneral were more iy
to believe their own leaders were transformational.}S* hy
‘When Merrill Lynch began to lose billions in 2008 as a result Fis ing
‘ments in mortgage securities, it was not long before CEO Stan O'Neal oat his
He appeared before the House Oversight and Government Refers Com
of the U.S. Congress for what one committee member termed Public fogyn
Some called him a ‘criminal’, and still others suggested Merrill's losses representa
‘attempted destruction’.5°
Whether O'Neal was responsible forthe losses at Merril or not,o deserved hig
nine-Figure severance package, are difficult questions to answer. However, is op
difficult to argue that he probably changed very litle between 2004 when Fortin,