1 creating a learning organization and an ethical organization strategic management buad 4980
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CREATING A LEARNING ORGANIZATION AND AN ETHICAL
ORGANIZATION
CREATING A LEARNING ORGANIZATION AND AN ETHICAL
ORGANIZATION
STRATEGIC MANAGEMENT BUAD 4980
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CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATIONCREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION
Leadership
The process of transforming organizations from what they are to what the leader would have them become
Desire to change the status quo
Vision of the desired future
Process for bringing about change
Organizational Leadership AttributesOrganizational Leadership Attributes
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CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATIONCREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION
Organizational Leadership AttributesOrganizational Leadership Attributes
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CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATIONCREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION
Setting a Direction
Understand the organization and all of its stakeholders – capabilities, limitations, potential
Understand the current environment, environmental trends and “futures”
Create a vision that positions the company in a future state – what it should become to realize its potential relative to its future environment
Organizational Leadership AttributesOrganizational Leadership Attributes
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CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATIONCREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION
Designing the Organization
A strategic leadership activity of building structures, teams, systems, and organizational processes that facilitate the implementation of the leader’s vision and strategies
Requires a lot of insight, decisions and internal organizational support to implement
Organizational Leadership AttributesOrganizational Leadership Attributes
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Difficulties in implementing the leaders’ vision and strategies
Lack of understanding of responsibility and accountability among managers
Reward systems that do not motivate individuals and groups toward desired organizational goals
Inadequate or inappropriate budgeting and control systems
Insufficient mechanisms to coordinate and integrate activities across the organization
Organizational Leadership AttributesOrganizational Leadership Attributes
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Developing an excellent and ethical organizational culture
The organizational culture should reinforce core competencies and high ethical standards
Leaders are the role models for the organizational culture
Leaders who fail to demonstrate ethical behavior undermine the ethical standards of the organization
Organizational Leadership AttributesOrganizational Leadership Attributes
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CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATIONCREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION
Integrative Thinking
The process by which people reconcile opposing thoughts to identify creative solutions that provide them with more options and new alternatives
Identify and consider multiple avenues and conflicting ideas
Determine multiple outcomes from following each idea to its logical conclusion
Decide on the best or most feasible outcome
Elements of Effective LeadershipElements of Effective Leadership
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Overcoming Barriers to Change
Reasons why organizations are prone to inertia and slow to change
Risk aversion and resistance to change
Systemic organizational barriers
Individual behavioral barriers - mindset
Political barriers – power relationships
Personal time constraints
Elements of Effective LeadershipElements of Effective Leadership
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A Leader’s Bases of PowerA Leader’s Bases of Power
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CREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATIONCREATING A LEARNING ORGANIZATION AND AN ETHICAL ORGANIZATION
Key Leadership Traits
Technical Skill (Applied Knowledge)
Cognitive Ability (Analytical Capability)
Emotional Intelligence
Leadership TraitsLeadership Traits
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Emotional Intelligence
An individual’s capacity for recognizing his own emotions and those of others
Encompasses five components of self awareness:
Self Awareness
Self Regulation
Motivation
Empathy
Social Skill
Leadership TraitsLeadership Traits
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Emotional IntelligenceEmotional Intelligence
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Effective leaders have empathy for others
Effective leaders are astute judges of people
Effective leaders are passionate about what they do, and they show it
Effective leaders create personal connections with their people
Leadership TraitsLeadership Traits
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Successful Learning Organizations
Create a proactive, creative approach to the unknown
Actively solicit the involvement of employees at all levels
Enable all employees to use their intelligence and apply their imagination
Inspiring and Motivating PeopleInspiring and Motivating People
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Top-Down Approach (Control-Oriented)
Start at the top
Clarify the organization’s mission, vision and values
Clearly specify the tasks, roles and rewards
Delegate responsibility based on demonstrated capability
Hold people accountable for results
Empowering PeopleEmpowering People
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Bottom-Up Approach (Trust-orientated)
Start at the bottom
Learn the needs of employees and what motivates them
Teach employees self-management skills and model desired behaviors
Build teams to encourage cooperative behavior
Encourage innovation and intelligent risk-taking
Trust people to perform
Empowering PeopleEmpowering People
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Open Book Approach
Track daily, weekly and month-to-date performance metrics at all levels of the organization
Share metrics with all levels of employees
Teach employees what the metrics mean and how they influence them
Share key financial results tied to metrics and explain what they mean
Sharing Internal KnowledgeSharing Internal Knowledge
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Benchmarking
Comparing basic performance metrics and financial indicators across comparable organizational units
Internal benchmarking compares key metrics and financial indicators across similar functional units of the same company
External benchmarking compares key metrics and financial indicators across similar functional units of the same industry
Sharing External KnowledgeSharing External Knowledge
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Create a sense of urgency to change and improve
Allow challenge of the status quo and dissenting opinions
Foster innovative risk taking
Foster curiosity and experimentation
Stimulating Creativity and ChallengeStimulating Creativity and Challenge
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Organizational Ethics
The values, attitudes, and behavioral patterns that define an organization’s operating culture and that determine what an organization holds as acceptable behavior
Creating an Ethical OrganizationCreating an Ethical Organization
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Organizational vs. Personal Ethics
Organizational ethics policies benefit the organization by creating boundaries that limit legal liability and maintain regulatory compliance
Organizational ethics are also valued in customer and supplier relationships, and convey a sense of social responsibility and trust in the marketplace
Creating an Ethical OrganizationCreating an Ethical Organization
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Organizational vs. Personal Ethics
Management leadership at all levels provides the role model for ethical behavior
Personal ethical values that are inconsistent with organizational ethics can create organizational conflict
Punitive actions taken against employees who violate ethical standards are after-the-fact and not likely to change personal values
Recruit employees whose ethical values are consistent with the organizational standards
Creating an Ethical OrganizationCreating an Ethical Organization
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Compliance-Based Ethics Programs
Programs for building ethical organizations that have the goal of preventing, detecting, and punishing legal violations
Integrity-based ethics programs
Programs for building ethical organizations that combine a concern for law with an emphasis on managerial responsibility for ethical behavior
Creating an Ethical OrganizationCreating an Ethical Organization
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Elements of Corporate Ethics Programs
Leadership role models and involvement
Corporate codes of conduct
Detailed policies and procedures defining specific situations and issues
Employee training with management involvement and leadership
Review of rewards and incentive systems for potential conflicts with ethical standards
Creating an Ethical OrganizationCreating an Ethical Organization
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