Professor Dalton KehoeProfessor Dalton Kehoe York UniversityYork University Heart of the Heart of the Matter Matter ConsultingConsulting

Ethical Leadership:Implications for Wellness in the

Workplace

MANAGEMENT AND LEADERSHIP

•Plan And Budget

•Organize And Staff

•Control And Problem Solve

•Set Direction– Create vision of what will be needed– Developed strategies to involve people in

making changes

•Secure Alignment– Constantly communicate direction in word

and deed– Win cooperation– Build trust relationships with

individuals and teams

•Support people– Motivate and inspire– Satisfy basic human needs, including

those for respect, care and achievement– Energize them to overcome barriers to

change

Produce Outcomes

Ethical Leadership1. TRUSTWORTHINESS

1. Honesty - expressing the truth as best we know it and not conveying it in a way likely to mislead or deceive.2. Integrity - consistently principled3. Reliability - promise-keeping

2. RESPECT1. Civility, Courtesy and Decency2. Dignity and Autonomy3. Tolerance and Acceptance

3. RESPONSIBILITY1. Accountability2. Diligence3. Self-Restraint

4. FAIRNESS• Process• Impartiality• Equity

5. CARING• Heart of ethics, and ethical decision-making.• Hard to be truly ethical and unconcerned with the welfare of others. • Ethics is ultimately about good relations with other people.

M. Josephson, Six Pillars of Character, http://www.josephsoninstitute.org

• Perhaps if we had more ethical leadership at every level, we would have far fewer

• Stress impacts on individuals, and on • The health system, and • Organizations “hooked” on a culture of hours

Employee Mental Health Impacts Body Health

High EffortLow Reward

+High DemandLow Control

“Stress”

3 x Heart Problems

2x-3x Mental Health Problems

2x Substance Abuse

2x-3x Injuries

2x-3x Infections

3x Back Pain

5x Certain Cancers

2x-3x Conflicts

Martin Shain

CAMH

FOR THE HEALTH SYSTEM

• Downsizing strategies employed by cash-strapped governments and companies…in the 1990s have burdened Canada's health-care system with up to $14 billion a year in additional costs, a new federal study released today concludes.

• The Public Health Agency of Canada report said increased workload, or "role overload," has driven costs higher and said doctor visits could be cut by 25 per cent and hospital stays by 17 per cent if the issue was properly addressed.

• Nov. 9, 2004. The Toronto Star

“OLD ECONOMY” STRESS

Factories churning out endless consumer products Factories churning out endless consumer products were built around assembly line jobswere built around assembly line jobs

physically taxing and physically taxing and

mind-numbingly boringmind-numbingly boring

Today, robots or workers in developing countries do Today, robots or workers in developing countries do most of the factory work. most of the factory work. • Factory worker dissatisfaction no longer is a major threat Factory worker dissatisfaction no longer is a major threat

to productivity.to productivity.

“NEW ECONOMY” STRESS

Knowledge work was supposed to create the Knowledge work was supposed to create the best kind of jobsbest kind of jobs• SkilledSkilled• Mentally challengingMentally challenging• Enabling decision-makingEnabling decision-making• CollaborativeCollaborative• Clean & safe office environmentClean & safe office environment

It did - but not in the It did - but not in the way way we expected. we expected.

Economy of Mental Performance

The “new” economy comes in the guise of a stressful The “new” economy comes in the guise of a stressful culture of overwork culture of overwork • Constant organizational changeConstant organizational change

– Downsizing and restructuringDownsizing and restructuring Increased time in work Increased dependence on technology Reduced sense of job security Reduced trust of managers and the organization Reduced ability and desire to participate in change initiatives

Increased stress and emotional illness

Health Canada Study by L. Duxbury

Increased Time in Work (CULTURE OF HOURS)

05

101520253035404550

35 to 39 hoursper week

40 to 44 hoursper week

45 to 49 hoursper week

50 + hours perweek

19912001

Linda Duxbury, Chris Higgins: Health Canada 2001 Work-Life Conflict Study

http://labour.hrdc-drhc.gc.ca/worklife/key-studies-en.cfm

Increased Time in Work (CULTURE OF HOURS)

% of managers/professionals performing supplemental work at home (i.e. unpaid overtime)

0

10

20

30

40

50

60

70

% performing SWAH

19912001

Over The Same Time Period Key Work Outcomes Declined

0

10

20

30

40

50

60

70

Org. Commitment Job Stress Job Satisfaction

% High 2001% High 1991

And Employee Mental Health Got Worse

0

10

20

30

40

50

60

Overall Stress DepressedMood

Life Satisfaction

% High 2001% High 1991

General Trend: Late 20th Century

Organizations cut costs on the front side Organizations cut costs on the front side of bottom line of bottom line

Reduce budgets and headcountsReduce budgets and headcounts Looked good to Looked good to stockholders or taxpayersstockholders or taxpayers

Raise costs on the back side of bottom lineRaise costs on the back side of bottom line turnover, turnover, absenteeismabsenteeism Short and long term disability payments, Short and long term disability payments, drug benefits payments (anti-drug benefits payments (anti-depressants, sedatives) related to depressants, sedatives) related to effects of stresseffects of stress

$45,000$45,000

$74,000$74,000

$104,000$104,000

$165,000$165,000

$230,000$230,000

19971997 19981998 19991999 20002000 20012001

Rise in Prescription Drug Rise in Prescription Drug Costs For Large Org. Costs For Large Org.

One Cost of Economy of Mental Performance

“Lean And Mean” Efficiency Really Means

35% cost of lost time is due to mental 35% cost of lost time is due to mental disabilitiesdisabilities

Last 5 years costs up by Last 5 years costs up by 70% STD 70% STD 143% LTD143% LTD

30% of depression in the workplace directly 30% of depression in the workplace directly attributable to work attributable to work

www.mentalhealthroundtable.ca/

http://www.gpcinternational.com/insights/roundtable.html

Trustworthy and Respectful Leadership

Would admit that the fundamental Would admit that the fundamental model of management has not model of management has not changed much since the 19th changed much since the 19th centurycentury

Then it was “Do more, do it faster, work 6 days a week!”Then it was “Do more, do it faster, work 6 days a week!”Now it’s “Do more, do it faster, with fewer resources, Now it’s “Do more, do it faster, with fewer resources,

and and do it with computers…so…do it with computers…so…

Recognition is a good first step

Toronto StarToronto StarMay 17, 2003May 17, 2003

““Tops Execs Expand Dialogue on Workplace Stress”Tops Execs Expand Dialogue on Workplace Stress”

A victory of recognition that problems exist after 5 years of campaigning A victory of recognition that problems exist after 5 years of campaigning (working his rolodex and “nagging”) by Bill Wilkerson, former CEO of (working his rolodex and “nagging”) by Bill Wilkerson, former CEO of Liberty Mutual Insurance (now retired) and head of the Global Business Liberty Mutual Insurance (now retired) and head of the Global Business and Economic Roundtable on Addiction and Mental Health.and Economic Roundtable on Addiction and Mental Health.

A long way from public meeting in Vancouver in 1998 - nobody showed.A long way from public meeting in Vancouver in 1998 - nobody showed.This Toronto meeting - 1500 in the room.This Toronto meeting - 1500 in the room.

By The Way, Academics Are Affected tooAustralian Study• Academic staff were stressed to a much greater degree than people in the general population• Related to

• diminishing resources, • increased teaching loads and student/staff ratios, • pressure to attract external funds, • job insecurity, • poor management and a • lack of recognition and reward.

UK Study• Academic staff added:

• coworkers not pulling their weight, • lack of control over decisions affecting their jobs, • work interfering with home and personal life, • insufficient time to do their jobs at the quality level the academics felt necessary, • low salary and benefits.

http://www.caut.ca/en/bulletin/issues/2005_nov/news_stress.asp#top

By The Way, Academics Are Affected too

• In both studies:• Psychological strain was best predicted by job insecurity and work demands.

• Job satisfaction was best predicted by procedural fairness; trust in department heads and senior management; and autonomy.

Organizational Causes of Stress & Depression

Unclear organizational direction & policiesUnclear organizational direction & policies

Career & job ambiguityCareer & job ambiguity

Inconsistent performance management Inconsistent performance management

Lack of 2 way communication up & downLack of 2 way communication up & down

Being unappreciatedBeing unappreciated (high effort/low reward) (high effort/low reward)

Feeling helplessFeeling helpless (high demand/low control) (high demand/low control)

Most often a result of rapid and disorderly change

The Primary Focus for Organizational Leadership Must Be

Thriving,

Engaged

People

EMPLOYEE ENGAGEMENT

RELATES TORELATES TO

• PRIDE IN WORKPRIDE IN WORK

• RESPECT AND CARE SHOWN BY IMMEDIATE MANAGER RESPECT AND CARE SHOWN BY IMMEDIATE MANAGER -LOCAL LEADER-LOCAL LEADER

THE CONNECTIONS BETWEEN THESE FACTORS HAVE BEEN THE CONNECTIONS BETWEEN THESE FACTORS HAVE BEEN MEASURED IN DETAIL IN TWO LARGE STUDIES MEASURED IN DETAIL IN TWO LARGE STUDIES M. BUCKINGHAM, M. BUCKINGHAM, “First Break All the Rules” and D. MAISTER, “Practice What you First Break All the Rules” and D. MAISTER, “Practice What you Preach”Preach”

ENGAGED EMPLOYEES: THE 12 KEY QUESTIONS

BUCKINGHAM’S STUDY OF 108,000+ EMPLOYEES IN A BUCKINGHAM’S STUDY OF 108,000+ EMPLOYEES IN A VARIETY OF INDUSTRIESVARIETY OF INDUSTRIES

THEY DEFINE EMPLOYEE “ENGAGEMENT”THEY DEFINE EMPLOYEE “ENGAGEMENT”• The number 5’s on the 12 Strongly written QuestionsThe number 5’s on the 12 Strongly written Questions

DIRECTLY RELATED TO HIGH QUALITY DIRECTLY RELATED TO HIGH QUALITY SERVICE/PRODUCTIONSERVICE/PRODUCTION

LEVELS OF ENGAGEMENTLEVELS OF ENGAGEMENT • ENGAGED (LOYAL AND PRODUCTIVE)ENGAGED (LOYAL AND PRODUCTIVE)• NOT ENGAGED (PUTTING IN TIME)NOT ENGAGED (PUTTING IN TIME)• ACTIVELY DISENGAGED (SPREADING DISCONTENT)ACTIVELY DISENGAGED (SPREADING DISCONTENT)

THE 12 KEY QUESTIONS INCLUDE

1. Do I know what is expected of me at work?1. Do I know what is expected of me at work?2. Do I have the materials and equipment I need 2. Do I have the materials and equipment I need

to do my work right?to do my work right?3. At work, do I have the opportunity to do what 3. At work, do I have the opportunity to do what

I do best every day?I do best every day?4. In the last seven days, have I received 4. In the last seven days, have I received

recognition or praise for doing good work?recognition or praise for doing good work?5. Does my manager/supervisor, or someone at 5. Does my manager/supervisor, or someone at

work, seem to care about me as a person?work, seem to care about me as a person?6, Is there someone at work who encourages my 6, Is there someone at work who encourages my

development?development?

THE 12 KEY QUESTIONS INCLUDE

7. In the last six months, has someone at work talked to me about my progress?

8. At work, do my opinions seem to count?9. Does the mission/purpose of my company make

me feel my job is important?10. Are my co-workers committed to doing quality

work?11. Do I have a best friend at work?12. This last year, have I had opportunities at

work to learn and grow?M. Buckingham “First Break All the Rules”

ENGAGEMENT AND PRODUCTIVITY

Results: the more 5’s in a unit - the Results: the more 5’s in a unit - the higher the productivity, employee higher the productivity, employee retention, customer satisfaction and retention, customer satisfaction and loyalty, profitabilityloyalty, profitability• M. Buckingham “First Break All the Rules”M. Buckingham “First Break All the Rules”

Engagement Results

Engaged26%

Disengaged55%

Actively Disengaged19%

LOCAL LEADERSHIP

BUCKINGHAM AND MAISTER CLARIFY THE POWERFUL INFLUENCE BUCKINGHAM AND MAISTER CLARIFY THE POWERFUL INFLUENCE OF THE LOCAL MANAGEROF THE LOCAL MANAGER

GREAT ORGANIZATION AND LOUSY SUPERVISOR = LOUSY GREAT ORGANIZATION AND LOUSY SUPERVISOR = LOUSY ORGANIZATIONORGANIZATION

RELATIONSHIP WITH LOCAL MANAGER WILL DETERMINE RELATIONSHIP WITH LOCAL MANAGER WILL DETERMINE PRODUCTIVITYPRODUCTIVITY

OUR RESEARCH DEMONSTRATED THAT IT OUR RESEARCH DEMONSTRATED THAT IT ALSO AFFECTS THE HEALTH OF ALSO AFFECTS THE HEALTH OF EMPLOYEEEMPLOYEE

ENGAGEMENT AND ORGANIZATIONAL HEALTH

High quality local High quality local leadership acts as a buffer leadership acts as a buffer against employee stressagainst employee stress

Reduces the costly effects Reduces the costly effects of stress-related illnessof stress-related illness

Developed by M. Koscec and his colleagues at the Entec Developed by M. Koscec and his colleagues at the Entec CorporationCorporation

Improves on the “12 questions” as part of a set of 17 focused Improves on the “12 questions” as part of a set of 17 focused on on local leadershiplocal leadership practices practices

3 other sets of questions that connected to “healthy” engaged 3 other sets of questions that connected to “healthy” engaged employeesemployees

Workplace practicesWorkplace practices Corporate level practicesCorporate level practices Vision and ValuesVision and Values

An index ofAn index of Trust & FairnessTrust & Fairness

A set of questions that measure A set of questions that measure individual emotional health individual emotional health and wellness.and wellness.

http://www.measuringcompanyhealth.com/home.php

Employee Engagement Survey©

Workplace Fairness: A Critical Factor • Organizational Justice

Procedural justice - decision-making procedures are consistently applied, suppress bias, and are accurate, correctable, and ethical.

Relational justice - truthful, polite and considerate treatment of individuals by supervisors.

• Longtitudinal Study of 7375 employees (1156 men, 6219 women), in 10 Hospitals• Low procedural justice in decision-making was associated with a 41% higher

risk of sickness absence in men Also with increased prevalence of smoking in women and heavy alcohol consumption in men

• Low relational justice increased the risk of sickness absence and minor psychiatric morbidity in both sexes

Organisational Justice and Health of Employees… M. Kivimaki, M. Elovainio, J. Vahtera and J.E. Ferrie, Occupational and Environmental Medicine, Jan 2003 v6, i1 p. 27(8).

From the Employee Engagement Survey:Trust and Fairness At 2 Levels

LOWER SCORES ON BOTH SETS OF ITEMS CORRELATED STRONGLY WITH HIGHER BURNOUT EMPLOYEE SCORES

Local Leadership practicesManager takes appropriate action with people who under perform.Manager resolves conflicts fairly and appropriately.Manager keeps promises and stands by decisions made.

PLUS

Workplace PracticesMembers of our team behave with integrity, honesty and

fairness.Team works in a spirit of collaboration rather than

confrontation or competition.Little to no office politics or gossip. One person at work whom I trust with my personal concerns.

Hypothesized connections

• Ineffective local leadership behavior and perceived unfair workplace practices affect employee levels of trust in organization as a whole.

• It can• Stimulate the corrosive emotions - fear and anger - which• Alter the hormonal balance of body and immune system,and over time

• Contribute to higher levels of depression, burnout, mental focus

• Higher rates absenteeism, short and long-term disability,turnover

THANKS FOR YOUR TIME AND ATTENTION