LP-3

24 Sep 18

• Part-2 The Power of Vision (Ch 5-7)

• Part-3 The Importance of Ethics (Ch 8-10)
• Learning Objectives
– Role of Vision for leadership success
– How does a leader create and implement powerful vision
– Levels and stages of Moral development
– How can a leader develops an organization that pursues ethical climate
at work place
• Learning Outcomes
– The students would be able to understand and appreciate the plusses
and minuses of a leader, vision, ethical and moral values

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 LEADERSHIP DECISIONS OF FAR REACHING
CONSEQUENCES
• Turkey --- Ex PM Tayyab Erdogan wins Presidential elections with a
promise to change the constitution to assume more powers. As PM of
Turkey in the last 12 years, he has managed to revive the Turkish
Economy, thrown away the yoke of Army’s influence in running the country.
The election victory, despite severe resistance put up by the Opposition
Parties as well as the civil community fearing radicalizing the Constitution ---
is moving away from Secularism.
• RAMALLAH, WEST BANK — The Israel in order to weaken the influence of
Hammas, which has been controlling Gaza Strip from the last many years
carried out incursion and air raids on Gaza resulting into over 1200 deaths,
over 10,000 injured and large scale destruction of schools, houses,
hospitals and other civilian infrastructure. Not surprisingly, none of the
countries of developed world and Arab States did anything worthwhile
to stop the aggression. The US declaration of shifting its Embassy to
Jerusalem has also not been seriously objected by the world including
Muslim / Arab world.
• USA blames Pakistan Army and ISI for aiding and abetting terrorists
harming US Forces and Interests in Afghanistan. The latter continues to
blame Pakistan for supporting terrorism. 4
 DECISIONS OF FAR REACHING CONSEQUENCES

• Pakistan ---- Huge funds are released to Senators prior voting 20th
amendment to the 1973 constitution. The Elections of May 2013
have been made highly controversial under a well orchestrated
scheme for harming Pakistan.
• Feb 2018 - The decision of sending Pak Army troops to Saudi
Arabia continues to be shrouded in secrecy and doubt. The Defense
Minister despite elaboration in the Senate could not satisfy the
Senators. Their location inside Saudi Arabia and overall number
remains a mystery.
• None of the Dharna Leaders considered the implications of
postponement of visit by Chinese President scheduled in August
2014. The CPEC seems to be biased heavily towards China than
Pakistan. The net looser has been Pakistan.
• Feb 2018 - The de-valuation of Pakistan Rupee v/s US Dollar is
having its toll on Pakistan’s economy coupled with stagnant exports
and balance of payments schedule.
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 DECISIONS OF FAR REACHING CONSEQUENCES

• The Current Account Deficit (CAD) has swelled and crossed the mark of
$9 billion in merely seven months of the financial year. This is due to the
ballooning trade deficit caused by a continuous increase in imports of
commodities with limited earnings of exports and remittances.
• According to the State Bank of Pakistan (SBP), CAD increased to $9.15
billion during the period of July to January 2018 as compared to $6.18
billion recorded in the similar period of last financial year, showing a
difference of $2.97 billion or 48%.
• The current account showed a deficit of $1.61 billion in the month of
January 2018 which was higher than in December when it stood at $1.25
billion.
• Jan / Feb 18 – Disappearance and then release on bail of SSP Rao Anwaar
• Feb18 – SC decision disqualifying Mr Nawaz Sharif first as PM and now
as President PML(N), finally sending him, his daughter and son-in-law to
jail and then releasing them on bail.
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 The Saudi Kings ---
• 2012- Granted women the right to vote and run in
future municipal elections, the biggest change in a
decade for women in a puritanical kingdom that
practices strict gender separation, including banning
women from driving.
• Saudi women, who are legally subject to male
chaperones for almost any public activity, hailed the
royal decree as an important, if limited, step toward
making them equal to their male counterparts.
• 2017- And now King Suleman has allowed women
run businesses, drive cars and watch football matches
and --------------- sky is the limit.
• Why tiny poor country like Yemen is getting beating
at the hands of Saudis?
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 Ch-5 VISION

The best way to predict the future is to create it.

Peter Drucker

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 THE POWER OF VISION
• The most important function of a leader:
– Develop a clear and compelling picture of the future, and to secure
commitment to that ideal.
• Ford’s vision
– I will build a motor car for the great multitude, --- constructed of the best
materials, by the best men to be hired, after the simplest designs that
modern engineering can devise--- so low in price that no man making a
good salary will be unable to own one and enjoy with his family the
blessings of hours of pleasure in God’s great open spaces”.
• Ford’s Leadership strategy that Ford Plant became a marvel of
automotive engineering:
– Affect the moving assembly line
– Make fair payments to workers
– Ensure Vertical integration
• BU Vision ------ To become an internationally recognized university that
contributes towards the development of nation through excellence in
education and research
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 Vision – Organizational Success

• Vision + Skills + Incentives + Resources +

Action Plan ------ The output is Org Success
• If you do not have:
• vision – would result into ---- Confusion
• Skills ------ Anxiety
• Incentives --- Gradual change
• Resources ----- Frustration
• Action Plan ----- False start

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 VISION AS AN IDEAL

• Gives Future orientation

• Enhances Standard of excellence
• Creates Virtuous condition
• Ensures Quality of uniqueness
• Ideal image – what is and what it should be
• CEO must ask 3 Questions:
– Is the proposed direction a correct one
– Are the goals so enunciated correct
– Is this the right time to pursue the goals

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 THE CONCEPT OF VISIONING – A PROCESS

• Leaders to initiate and provide constant vigilance for

creating a vision
• Be challenging, yet realistic
• Seek involvement – sharing of ideas
• Encourage comments and reviews
• Keep communication flowing
• Allow time for the process to work
• Demonstrate commitment, follow-through, and
concurrent action
• Maintain harmony of subunits / deptts

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 VISION – KEY ELEMENTS / CONTENTS

• Central purpose (reason for existence)

• Broad goals to achieve the vision
• Core values to measure the rightness and wrongness
of the behavior
• How would the stakeholders look at the achievements
• Undertaking SWOT analysis
• Strategic Initiative – success factors
• Tactical plans (projects and short term business plans)

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 VISIONING PRINCIPLES – APPLICATION

• Honor and live the vision as a constitution

• Encourage new employees to understand and adhere
to the vision – seek comments
• Make it constantly visible / display / Bill Board
• Create an integrated organization through alignment
• Review the vision periodically ------?

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VISION – Requirements for an EFFECTIVE ONE

1. It must be developed by leaders

2. Must be communicated to followers and
be supported by them
3. It must be comprehensive
4. It must be inspiring and uplifting

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 CH-6 MOTIVE TO LEAD

• There are 3 basic motives for leadership.

• Let us take them individually and collectively:
• Power oriented leader giving emphasis to production
and be known as a powerful leader
• Achievement oriented leader obtains satisfaction
through completion of a given task
• Affiliation oriented leader enjoys working with his /
her crew and team members
• Solve Ex 6-1 page 73

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 CH-7 ORGANIZATIONAL CLIMATE

• Organizations have peculiar attributes:

– Strict rituals to handle situations
– Certain pace and style of working
– Unspoken taboos
– Social structures – pecking orders etc
– Habits governing dress, food language etc
– Norms dealing with utilization of resources
• An org is only as strong as its weakest link
• Organizational climate plays the major role
• Scan Ex 7-1 page 79
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 PATTERNS OF LEADERSHIP
• Exploitative – Autocratic and hierarchical with no
participation by the members. Benevolence is missing
• Impoverished – Power remains at the top, but members are
given occasional opportunities in the DM process.
Benevolence, if accompanied by autocracy maintains the
organization in good health.
• Supportive - Power resides in leaders but members have
confidence in the organization and leaders. Broad spectrum of
involvement in DM process.
• Enlightened - People at all levels of organization have
high level of freedom to initiate, coordinate, and execute plans.
HR related issues are at the lowest ebb.
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 4 PRINCIPLES FOR CREATING AN ENLIGHTENED
ORGANIZATION

• View HR as the most important asset

• Treat every individual with understanding, dignity, warmth,

and support.

• Tap the constructive power of the groups through visioning

and team building

• Set high performance goals (Realistic) at every level of the org

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 CSR and Vision
• Community must share vision
• Wholesome incorporating diversity
• Shared culture
• Internal comm
• Consideration and trust
• Maintenance and government
• Participation and shared leadership
• Development of younger leaders
• Affirmation
• Links with outside groups

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 Part 3 Chap 8
THE IMPORTANCE OF ETHICS

• Until philosophers are kings, or the kings and princes

of this world have the spirit and power of philosophy,
and political greatness and wisdom meet in one, and
those commoner natures who pursue either to the
exclusion of the other are compelled to stand aside,
cities will never have rest from their evils - no, nor
the human race, as I believe – and then only will this
our State have a possibility of life and behold the
light of day.
Plato – The Republic: An Ideal Commonwealth
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 LEADERSHIP ETHICS

• Ethics is a branch of philosophy concerned with:

– Intent
– Means and
– Consequences of moral behavior
• A Common theme for leadership is based on:
– Honesty
– Service to others and
– Moral courage
• Ethical questions are always important and
they continue to be asked?
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 Ethical Questions --- No easy answers
• No easy answers
– Cloning, abortion, DNA Testing, Genetic Information
– Administering death v/s death penalty
– Outer space exploration activities
– War in Iraq and Afghanistan, Libya, Syria etc
Drone attacks in Pakistan, Yemen etc
– Issues of Kashmir, Bosnia, Palestine, Cyprus, Moro
Taiwan, Nogorno karabakh etc
– Nuclear energy
– IT and computers
– Pakistan embroiled in terrorism

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 THE ROOTS OF ETHICS AND THEIR
DEVELOPMENT
• Secular tradition – Aristotle advanced common sense
or rationality
• The religious traditions - Real, True and Good and
their opposites defined by Allah Almighty . All men
and women are equal as per Divinity yet -----
• Development
– Associations
– Books
– Self-concept -- we do what we do to be consistent with
who we think we are
• Ethics and legal environment – Follow the law / Rule

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 MORALITY ---- LEVELS OF
Levels of moral Dev
Level -1
(Pre-conventional) ---
Physical consequences and
individual needs determine
moral behavior
Level-2
(Conventional) --- Approval
of others plays a major role
as well as compliance with
authority and rules
Level – 3 (Post-
conventional) - Moral
behavior depends on
rational analysis, community
discussion
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Stages of Moral Dev Examples of Moral
Reasoning
1. Physical consequences 1. I wouldn’t hit him
determine moral because he may harm
behavior me
2. Individual needs are 2. I’ll help her because she
primary motives would help me.
3. Approval of others is 3. I’ll go along with you
major determinant of because I want you to
behavior like me.
4. Compliance with 4. I’ll comply with the order
authority and social because it is wrong to
order are primary disabey
concerns
5. Social ethics are based 5. Although I disagree with
on rational analysis, and his views, I’ll uphold his right
mutual consent. to have them.
6. Individual conscience 6. There is no external force
comes into play that can compel me to do an
act that I consider morally
wrong. 25
 VIRTUE - MORALITY
• An individual’s view or differentiation between Right
and Wrong ----- Good and bad
• How do you learn it?
• Where from one can learn it?
• Discuss --- Level III, Stage 6 Morality: A True Life
Case (page 97)
– Job offer
– Accept it or not
– Discussion with elders, colleagues, friends
– Working against moral values -------?

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 Ch – 9
VALUES AND THEIR ROLE

• What are the Values?

– How do you behave and conduct under varying
circumstances
• Are they good business practices or something
else?
• Are they combination of ethics, practices, norms
and traditions?
• Are they hereditary?
• Values are social glue --- are they?

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 VALUES AND THEIR CLARITY

• Org must reinforce values to reinvigorate momentum

• Org employees must develop understanding

• Individuals and groups within an org must have coherence

• Top management / leaders must remain in touch with lower

echelons

• Induce purpose of being in the Org

• Members must never complain about the Org to outsiders

• Ensure as a leader your Org practices Cherished Values

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 VALUE – BEING COURAGEOUS

• Honesty is the best policy --- Greatest Virtue/value

• Respect for others brings respect to yourself

• Service to others would reflect positively

• Exercise excellence in all work performed

• Integrity – having the courage to act and live

by one’s convictions
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 TRADITIONAL DEFINITIONS OF A GOOD / Ethical
PERSON

• Will of God --- 5 Basic Pillars / Principles of Islam

• Power – Machiavelli believed that ends justify means
and taught that might makes right.
• Personal Integrity --- Best human beings always exhibit
wisdom, justice, courage
• Natural Simplicity --- Naturalness gets a better hearing
than accuracy.
• Pleasure – Physical enjoyment and avoidance of pain
• Greatest good for greatest number --- Do as much good
as possible
• Duty and right Action --- Self conceited value

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 VALUE ANALYSIS

• Power without accountability -------?

• Leader can influence:
– By personal traits
• Personal values
• Honesty
• Deliberating prior deciding / Consideration
• Sense of responsibility
• Being persistent
• Showing excellence
• Showing commitment
• Ex 9-1 page 109 & 9-2 page 119
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 Ch-10 ETHICS AT WORK

• The best ‘work rules’ meet the following

criteria regardless of authority and nature of
duties:
1.Refection of ethical ideals of ownership
2.Reviewed periodically
3.Few in number
4.Stated clearly
5.Communicated to all the employees
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 CODE OF ETHICS
• Relations with the:
– Govt
– Employees
– Community and environment
– Other businesses / industry
– Consumers
• Always achieve the best - Production standards and
quality
• Human service and Qwl/QpL preferred over
profitability
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 KEY CHARACTERISTICS OF ETHICS

• Satisfy all its constituents / stakeholders

• Dedicated to high and broad purposes incl profit,

service to humanity and Quality of life

• Committed to learning, investing enormous resources

and effort to develop response to change

• Performance standards rise on continuous basis

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 IMPORTANCE OF ETHICS
• Loss / gain of customers
• Turnover
• Morale of the employees – cynicism
• Loss of ownership equity
• High operating costs
• Unnecessary Legal expenses
• High Funding costs
• Loss of goodwill and public trust
• Loss of financial viability and ultimate failure of the enterprise
• Ex 10-1 -------------- and Mention cases of Tylenol, Toyota
Motors, Isotab, Paracetamol in Pakistan

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Thank you for investing your time with me.
Please visit the BU Library to learn further.
Quiz – 1 (LPs 1, 2 & 3) next week +
Presentations (Assign-1)

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