SM Chapter - 11 Strategic Leadership

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Strategic

Leadership:Creating aLearning

Organization andan Ethical

Organization

ChapterEleven

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc !ll rights reser"e#



Learning Objectives

After reading this chapter, you should have a good

understanding of:

LO11.1 The three key interdependent activities in

which all successful leaders must be continuallyengaged.

LO11.2 Three elements of effective leadership:

integrative thinking, overcoming barriers to change,

and the effective use of power.LO11.3 The crucial role of emotional intelligence (EI in

successful leadership as well as its potential

drawbacks.

11-2



Learning Objectives

LO11.4 The value of creating and maintaining a

learning organi!ation in today"s global

marketplace.

LO11.5 The leader"s role in establishing an ethicalorgani!ation.

LO11.6 The difference between integrity#based

and compliance#based approaches to

organi!ational ethics.

LO11.7 $everal key elements that organi!ations

must have to become an ethical organi!ation.

11-3



Leadership: ThreeInterdependent ctivities

Leadership

process of transforming organi!ations from

what they are to what the leader would have

them become

11-!



Three Interdependent ctivities

o" Leadership

11-#

E%hibit &&.&



Setting a $irection

$can environment to develop

'nowledge of all stakeholders

'nowledge of salient environmental trends

and events

Integrate that knowledge into a vision of

what the organi!ation could become

11-%



Setting a $irection

Required capacities

$olve increasingly comple% problems

e proactive in approach

)evelop viable strategic options

11-&



Setting a $irection

Benefits

clear future direction

a framework for the organi!ation"s mission

and goals

enhanced employee communication,

participation, and commitment.

11-'



$esigning the Organization

Designing the organization

A strategic leadership activity of building

structures, teams, systems, and

organi!ational processes that facilitate theimplementation of the leader"s vision and

strategies.

11-(



$esigning the Organization

)ifficulties in implementing the leaders"

vision and strategies *ack of understanding of responsibility and

accountability among managers +eward systems that do not motivate individuals and

groups toward desired organi!ational goals

Inadeuate or inappropriate budgeting and control

systems Insufficient mechanisms to coordinate and integrate

activities across the organi!ation

11-1)



*+ESTIO,

-/0s 1E2 scrapped the company0s

commission#based reward system because it

was rewarding employees for inappropriate

behavior. This is an e%ample of

A.$etting a direction

.)esigning the organi!ation

1.3nethical behavior

).4ailure to maintain the status uo

11-11



,rtring an E.cellent andEthical Cltre

!ce""ent and ethica" organizationa"

cu"ture

an organi!ational culture focused on core

competencies and high ethical standards

11-12



The /bicltral pproach

#$%&icu"tura"' perspecti(e on "eadership

leaders can benefit by taking the best of

different philosophies and business practices

while avoiding the negatives challenge for managers is to utili!e the

thinking and orientations of respective

cultures in order to understand, identify with,and benefit from them

11-13



Integrative Thin0ing

)ntegrati(e thin*ing

5rocess of reconciling opposing thoughts by

generating new alternatives and creative

solutions rather than re6ecting one thought infavor of another.

11-1!

I t ti Thi 0i Th



Integrative Thin0ing: Therocess o" Thin0ing and

$eciding

11-1#

E%hibit &&.7



Overco/ing arriers toChange

+easons why organi!ations are prone to

inertia and slow to change

8ested interests in the status uo

$ystemic barriers

ehavioral barriers

5olitical barriers

5ersonal time constraints

11-1%



Leader5s ases o" o4er

11-1'

E%hibit &&.9



E/otional intelligence

%otiona" inte""igence -)

an individual"s capacity for recogni!ing his

own emotions and those of others,

including the five components of self

awareness, self regulation, motivation,

empathy, and

social skills.

11-1(



6ive Co/ponents o" E/otionalIntelligence at 7or0

11-2)

E%hibit &&.

SM Chapter - 11 Strategic Leadership

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