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MANU9LM Leadership & Management 2023-24

Executive Summary Leadership and ethics are closely related concepts that are essential to determining long-term success, employee happiness, and organisational culture. Setting the needs of the organisation, its members, and themselves above personal gain is a key component of ethical leadership. This means reaching ethically good conclusions, encouraging candid dialogue, and taking into account how decisions may affect society and the environment more broadly. Establishing a workplace that fosters mutual growth, trust, and respect requires a careful consideration of the confluence between ethics and leadership.

Table of Contents Introduction ...................................................................................................................................... 4 1. Ethics and Leadership .................................................................................................................. 4 2. Leadership Behavior .................................................................................................................... 6 3. Learning and Behavior from the Psychopathic Leadership Case Study: .................................... 9 Conclusion ..................................................................................................................................... 11 Introduction

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Examining a case study on psychopathic leadership exposes ethical aspects that are both good and bad. By seeing psychopathic leadership as a problem, organisations demonstrate their adherence to moral standards and may take preventative action by enforcing strict recruiting procedures and investing in leadership development. On the other hand, the detrimental effect— which is typified by manipulation and a self-centered mindset—raises moral questions about the viability of the organisation and the welfare of its employees. Organisations may promote moral decision-making, learn from errors, and take remedial action when they acknowledge these obstacles. 1. Ethics and Leadership a. Define Ethical Leadership: These executives place a high priority on integrity and responsibility, which helps to create a work environment that encourages moral behaviour. An essential component of moral leadership is the capacity to make morally sound judgements even in the face of challenging options. These leaders put the long-term effects on people and the organisation above their own interests or the short-term gains. Leaders that uphold ethics set an example for their staff, encouraging mutual respect and trust. They encourage employees to express issues without fear of retaliation and foster an environment of open communication. These leaders contribute to a pleasant work environment that raises employee engagement and morale by fostering a culture of ethical behavior (Avolio. 2013). Furthermore, social responsibility is a component of ethical leadership. Leaders that uphold ethics take into account how their choices will affect society, the environment, and the community at large. They participate in environmentally friendly activities and back projects that advance society. This strategy not only helps the company, but it also builds a solid reputation with the public, investors, and consumers. A complex idea, ethical leadership entails upholding moral standards and ideals in addition to following laws and guidelines. By establishing an organisational culture that places a high value on honesty, equity, and openness, ethical leaders promote a happy workplace and advance the interests of all parties involved. Their choices show a dedication to upholding moral principles over the long run, which encourages respect, loyalty, and trust from both stakeholders and staff.

b. Identify Positive and Negative Ethical Issues in the Case Study: Positively, seeing psychopathic leadership as a possible issue shows that an organisation is committed to upholding moral principles. Leaders who see and acknowledge this problem can take proactive steps to guarantee that the organisation is run by people who value moral behaviour, such as rigorous hiring procedures and leadership development courses (Northouse. 2018). In addition, the decision to carry out a case study on psychopathic leadership demonstrates a commitment to openness and responsibility. By doing research and analysis and addressing ethical concerns in an open manner, organisations may develop a basis for ethical decision- making, learn from past mistakes, and adopt remedial actions. On the down side, there are major ethical questions raised by the case study's description of a corporate psychopath CEO. Manipulation and a self-centered attitude are examples of psychopathic qualities that can result in harmful leadership behaviour that negatively affects both the general organisational culture and the well-being of workers. The possible negative effects on worker well-being—such as elevated stress and low morale— highlight moral dilemmas pertaining to businesses' social responsibilities. The detrimental effects on the workplace raise concerns about the organization's commitment to promoting a supportive and healthy work environment in addition to endangering employees' mental health. Furthermore, the detrimental effects of the CEO's actions on the corporate culture jeopardise the organization's long-term viability. Since a healthy work environment is essential for long-term success, ethical leaders actively seek to reduce any risks to its sustainability. In general, organisations dedicated to moral leadership and sustained success must handle both positive and negative ethical challenges (Spears. 2010). c. Discuss the Impact of Negative Ethical Issues and Suggest Better Approaches: An organization's internal and exterior components are both significantly impacted by the unethical problems surrounding psychopathic leadership. First and foremost, there will probably have a negative impact on workers' well-being, which might lead to increased stress, decreased job satisfaction, and a general deterioration in mental health. These effects not only jeopardise

personal well-being but also have the potential to lower productivity and raise employee attrition, which negatively impacts the financial line of the company. Second, a failing corporate culture marked by mistrust, fear, and a lack of cooperation may be exacerbated by a toxic leadership style. Consequently, this inhibits creativity and efficiency as workers might be reluctant to collaborate or exchange ideas in such an unfavourable setting. A broken culture can have long-term negative effects on an organization's capacity to develop, adapt, and compete in the market. The company's external reputation is in jeopardy, and investors' and consumers' trust might be eroded. If psychotic leadership is exposed, there may be negative financial effects and damage to one's reputation. Rebuilding confidence might take some time, and the company might have trouble bringing in and keeping investors and consumers. Better strategies may be used by organisations to solve these unethical problems. Pre- employment psychological testing is one type of proactive screening that might assist find potential psychopathic tendencies in candidates for leadership roles. It is ensured that leaders have the abilities to make moral judgements and promote healthy organisational cultures by ongoing ethical leadership training. Mechanisms for protecting whistleblowers enable staff members to come out with unethical activity without worrying about facing consequences, fostering a workplace that is open and responsible. Finally, board oversight—which is defined as active and impartial monitoring—is essential for spotting and dealing with leadership behaviour that can stray from moral principles and making sure that the necessary remedial action is done as soon as possible. Collectively putting these strategies into practise results in an organisational structure that is more moral and long-lasting (Liden. 2014). 2. Leadership Behavior a. Define Leadership Style: A leader's interaction and impact on their team or organisation are shaped by their leadership style, which is a crucial component of organisational dynamics. It includes a variety of actions, modes of communication, and techniques of decision-making that characterise a leader's style of directing their subordinates. Organisational psychology and management place a lot of emphasis

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on the study of leadership styles since they are crucial to understanding the overall performance and culture of an organisation. Transformational leadership is a popular leadership style that emphasises encouraging and motivating people to reach their maximum potential. Positive organisational cultures, inventiveness, and creativity are frequently promoted by transformational leaders. They provide an exemplary example by forging a common goal that reflects the organization's values and inspires others to go above and beyond. Conversely, transactional leadership takes a more methodical approach to leading. This type of leadership places a strong emphasis on incentives and consequences that are tied to output. To inspire their team, transactional leaders create performance standards, lay out clear objectives, and implement a system of rewards and penalties. This approach works well in settings where following exact rules and following organised procedures is essential to success. The core qualities of charismatic leadership are the leader's appeal, sway, and zeal. Via their vision and personality, charismatic leaders may enthral and inspire their supporters. They frequently have captivating presences and excellent communication abilities, which entice people to be in their sphere of influence (Avolio. 2013). Servant leadership puts followers' welfare first. This type of leadership places a strong emphasis on humility, empathy, and a dedication to helping others. Servant leaders create a collaborative and encouraging atmosphere by concentrating on the personal and professional development of their team members. High levels of loyalty and happiness among employees may result from this strategy. Laissez-faire leadership gives subordinates a great deal of autonomy in making decisions and carrying out tasks, with little intervention from the boss. Although this approach can foster freedom and creativity, if it is not handled well, it can also result in a lack of focus and coordination. The hallmark of authoritarian leadership is a top-down strategy that emphasises rigid control and deference to authority. With this approach, communication is mostly top-to-bottom and decisions are made without consulting lower-level staff. Although this approach can work well in some circumstances, it could discourage initiative and originality inside the company.

Every leadership style has advantages and disadvantages of its own, and the best leaders frequently combine several types according to the circumstances and the people in the scenario. A transactional leader, on the other hand, would use organised procedures to accomplish particular objectives, but a transformational leader might encourage creativity in times of transition. Performance as a whole, employee happiness, and organisational culture are all strongly impacted by leadership styles. Knowing these types enables leaders to modify their strategy according to the demands of the team and the organisation. Effective leaders understand the value of adaptability and the capacity to modify their approach to suit various circumstances, which eventually contributes to the organization's long-term viability and success (Yukl. 2012). b. Leadership Styles of the Two CEOs: The case study that focuses on the existence of a psychotic CEO illuminates a leadership style that is self-centered, manipulative, and devoid of empathy. This is somewhat similar to an authoritarian or even laissez-faire leadership style, in which the leader prioritises their own objectives over the welfare of the group and its constituents. The internal dynamics and outward impression of the organisation may suffer greatly from such a leadership style. The authoritarian features of the psychopathic leadership style suggest a hierarchical structure with tight control and little involvement from below. This might lead to a workplace where fear and a lack of teamwork predominate, impeding creativity and limiting the opportunity for professional development among employees. On the other hand, the laissez-faire aspects of the psychopathic leadership style, which are marked by little intervention and a high degree of autonomy for subordinates, can result in a lack of coordination and direction, which may cause chaos and lower organisational performance (Avolio. 2013). The psychopathic leadership style is not appropriate for the organisation. It is really harmful. Psychopathic CEOs frequently foster toxic workplaces, which lower employee morale, increase stress levels, and increase attrition rates. Long-term effects may include harm to the company's image, a decline in innovation, and a decline in overall performance. A psychopathic leadership style may have extremely detrimental effects on an organization's internal culture as well as its

reputation in the community, in contrast to more positive leadership styles that put the welfare of staff members and the organisation as a whole first. Organisations dedicated to moral and long- term leadership must comprehend and acknowledge the detrimental effects of the psychopathic leadership style. For long-term success and a strong organisational culture, the case study emphasises the need of supporting leadership philosophies that put empathy, teamwork, and the welfare of the organisation and its people first. c. Alternative Leadership Styles: It is possible that the case study's psychopathic approach would have had a negative effect on employee welfare and organisational dynamics if different leadership philosophies had been taken into account. It's possible that a transformational leadership approach that placed an emphasis on inspiration and a common goal promoted a happier workplace environment and higher levels of employee engagement. This strategy aligns organisational and individual goals by fostering creativity and a feeling of purpose (Northouse. 2018). A healthier workplace may have resulted from servant leadership, which prioritises people' needs and well-being. This approach places a strong emphasis on empathy and teamwork, which fosters a positive environment that raises worker satisfaction and loyalty. Expectations and boundaries may have been established via transactional leadership, which would have taken a more organised approach and provided clear incentives for good work. This approach offers a framework for moral behaviour and responsibility, rewarding moral contributions and deterring unethical behaviour with penalties. Genuine care for the group and its members, exemplified by charismatic leadership, may have fostered devotion and loyalty. Through their enthusiasm and vision, a charismatic leader may inspire and influence others, fostering a supportive and cohesive organisational culture. By implementing these other leadership philosophies, the detrimental effects of the psychopathic leadership style may have been lessened, resulting in a more moral, encouraging, and effective workplace.

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3. Learning and Behavior from the Psychopathic Leadership Case Study: a. Learning about Psychopathic Leadership on a Personal Level: Analysing the Psychopathic Leadership case study has opened my eyes to the detrimental effects of psychopathic leadership on organisations. Key lessons learned include: 1. Warning Sign Recognition: The case study emphasises how critical it is for leaders to identify the early indicators of psychopathic behaviour. Recognising and dealing with possible problems requires an understanding of these indicators, which include manipulation, a lack of empathy, and an emphasis on self-interest. 2. Effect on Organisational Culture: The case study emphasises how organisational culture is greatly influenced by the behaviour of leaders. A psychopathic boss has the power to poison the workplace, undermining confidence and lowering morale among staff members. This can then result in a number of unfavourable effects, such as a rise in employee turnover and a decline in productivity (Spears. 2010). 3. Ethical Implications: The case study places a strong emphasis on how leadership conduct has ethical ramifications. Unethical behaviour is a common trait of a psychopathic CEO, and it can spread across the entire company. Keeping an ethically sound corporate culture requires acknowledging and resolving ethical issues. b. Future Behavior as a Leader: The knowledge I acquired from the Psychopathic Leadership case study will have a big impact on how I approach leadership going forward. Important things to think about are: 1. Ethical Leadership is Stressed: The case study highlights how important ethical leadership is. In my future role as a leader, I would place a high value on making moral decisions and being open and accountable. This entails upholding an integrity pledge and taking into account how decisions will affect all parties involved (Avolio. 2013). 2. Emphasis on Collaboration and Empathy: Given the detrimental effects of a lack of empathy, I would stress the significance of empathy in leadership. Prioritising the development of a cooperative, transparent, and respectful culture would be the core of my leadership approach.

3. Investment in Employee Well-Being: I would place a high priority on fostering a happy work environment because I understand the impact that leadership has on both employee well- being and organisational success. This include assisting with professional growth, recognising accomplishments, and quickly resolving issues. 4. Vigilance in Leadership growth: Taking the case study to heart, I would watch out for the organization's leadership growth. This entails aggressively addressing any indications of harmful behaviour in addition to recognising and developing leadership traits that are consistent with favourable organisational results. 5. Dedication to Ongoing Education: The case study emphasises how dynamic leadership difficulties are. I would pledge to never stop learning and to keep up with the latest developments in best practises, ethical issues, and leadership theories. This flexibility is essential for effective leadership in a company environment that is changing quickly. Conclusion The cornerstone of organisational success is ethical leadership, which emphasises the significance of accountability, integrity, and long-term thinking. The case study on psychopathic leadership emphasises how important it is to be vigilant in identifying and dealing with bad leadership qualities that have the potential to undermine employee wellbeing and organisational culture. Organisations may counteract the negative impacts of psychopathic leadership and foster a more moral, understanding, and productive work environment by implementing alternative leadership philosophies including transformational, servant, transactional, or charismatic leadership. The dedication to continuous learning, flexibility, and a proactive approach to moral leadership are the main lessons learned, as they guarantee long-term success in a fast-paced corporate environment.

References Avolio, B. J., & Yammarino, F. J. (2013). Transformational and charismatic leadership: The road ahead. Emerald Group Publishing Limited. Liden, R. C., Panaccio, A., Meuser, J. D., Hu, J., & Wayne, S. J. (2014). Servant leadership: Antecedents, processes, and outcomes. Journal of Management, 40(6), 1853-1886. Northouse, P. G. (2018). Leadership: Theory and Practice (8th ed.). Sage Publications. Spears, L. C. (2010). Character and Servant Leadership: Ten Characteristics of Effective, Caring Leaders. The Journal of Virtues & Leadership, 1(1), 25-30. Yukl, G. (2012). Leadership in Organizations (8th ed.). Pearson.

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