This chapter makes it clear that a significant element of both leadership and decision making is the development aspect. Leaders develop in their decision making by being confronted with difficult decision situations. However, they also develop through various forms of systemized training and education. Different leaders tend to develop in different directions. For this reason, one can identify a number of key leadership styles based on different ways of leading. These different styles are appropriate for various types of organization. Some (...) organizations require a strict and authoritative style, while others are in greater need of a more democratic style. Senior leaders often have the capacity to switch between different leadership styles depending on how the situation develops. In addition, there are a number of key decision-making roles that leaders are expected to manage. These include the role of entrepreneur, problem-solver, resource-allocator and negotiator. Leaders must also learn to work with clarity, conviction, courage, and communication in order to facilitate their decisions. Research shows that leaders who face severe adversity in their careers often are forced to make many difficult decisions. As a result they develop. Being forced to make difficult decisions actually leads to reflection, self-awareness and self-knowledge of one’s own values. Leaders also develop by communicating their problems in a structured way with more experienced colleagues. The fact that leaders develop by making difficult decisions leads to various forms of action having a central role. It is by putting decisions into action that leaders develop, as well as by reflecting on what alternative decisions could have been made. An action perspective on leadership decisions is closely linked to the concept of sense-making. This phenomenon implies observation, action, revision and communication in the aftermath of a decision. There is research indicating that reflection, critical thinking, intuition, ethics and communication are important dimensions of leaders and decision makers who are generally perceived as wise. -/- . (shrink)

In this chapter it is pointed out that leaders who make decisions normally rely on both their intuition and their analytical thinking. Modern research shows that intuitive thinking has the potential to support the analytical, if used properly. Leaders must therefore be aware of the possibilities and limitations of intuition. Fresh thinking and innovation are key elements in leadership analysis, thus creative problem-solving is an important complement to traditional leadership thinking. Creative leaders work extensively with both intuition and logic. They (...) also often work with metaphors, analogies, images and imagination to create dynamism in the analysis of a problem. Many leaders come in daily contact with problems that are not necessarily self-generated. It is therefore important that they have the opportunity to take an outside perspective on the situation. They must be able to define the problems which are of strategic importance for the activity. Leaders should not allow themselves to be stressed too much by various everyday problems, but be aware that they usually cannot just ignore them. After delineating a problem a leader should think through what trials ought to be conducted to test a given hypothesis about reality. This can be done by showing how different problems are related to each other. When analyzing various problems it is useful to clarify what kinds of decisions theyrelate to. Some decisions must be made directly, while others canbe postponed. Some decisions are reversible in nature while others are irrevocable -/- . (shrink)

This chapter illustrates that in order to reach a decision a leader must decide which persons should be involved in the process and when. A relatively common method of involving others is delegating the decision to a group. A main objective of this is often to generate as many innovative ideas as possible, and different techniques can be employed for this, including brainstorming. The proposal generated must then be validated by the group using different criteria on the basis of which (...) it is then relatively easy to filter out proposals that do not reach the goals that have been set. However, a leader needs to collect additional information in order to reach a decision. By the use of information technology vast amounts of information may be accumulated. Thus, different kinds of filtering or weeding methods must be used in order to quickly obtain relevant information. This information can help leaders create forecasts and minimize risks. They must also be able to present their ideas in the most attractive way possible in order to be heard and arrive at decisions. The design of the presentation is therefore critical. Sometimes it is not enough for leaders just to present an idea, they are then obliged to negotiate in order to reach a decision. -/- . (shrink)

This chapter includes a discussion of leadership decisions and stress. Many leaders are daily exposed to stress when they must make decisions, and there are often social reasons for this. Social standards suggest that a leader must be proactive and make decisions and not flee the situation. Conflict often creates stress in decision-making situations. It is important for leaders to understand that it is not stress in itself that leads to bad decisions, rather, bad decisions may be the result of (...) time pressure in the sense that leaders have not been able to gather enough relevant information. Thus, it is worthwhile for leaders to be able to prioritize properly in order to cope with stressful situations. In some situations, a leader chooses to delegate the decisions to his/her team and then it is important to guard against «groupthink», a phenomenon where members of a team put consensus before anything else as a result of the peer pressure. A number of methods are presented that enable leaders to avoid this phenomenon. Often leaders are involved in decision-making situations where they are forced to navigate between objectives that are in strong conflict with each other. We are talking about «decision dilemmas». These are characterized by the existence of a conflict between the top leadership's desire to control the activities and their wish to give autonomy and independence to the various units. It is important for leaders to be able to strike a balance in different dilemma situations and understand how to best manage conflicts when they arise -/- . (shrink)

In showing how the bureaucratic space negatively influences the moral conscience of managers, Robert Jackall’s sociological writings have pointed up one of the darkest sides of organizations. In fact, in the business ethics literature there is much to support Jackall’s pessimistic contentions, suggesting that bureaucracy can rob individual managers of their sense of responsibility. How then can this space for individual freedom, so essential in re-establishing responsible management, be recreated? In order to answer this question, we propose to interpret Jackall’s (...) Moral Mazes ( 1988 ) from the standpoint of Blaise Pascal’s Jansenist ethics and conception of humankind. Our discussion here of Pascal’s “reason of effects,” his theory of “double thought” and his distinction between respect and esteem takes Jackall’s analysis forward and opens new lines of thought about managerial responsibility. The article concludes with some thoughts on further research in the field of business ethics arising from Pascalian anthropology or what we call here “skeptical humanism.”. (shrink)

In this chapter, it is demonstrated that the concepts of leadership and organization are closely linked. A leader should initially get to know the organizational culture as well as possible. Such a culture can for example be authoritarian and conformist or innovative and progressive in nature. The assumption is that leaders are influenced by their own culture. Strategic decisions are characterized by the fact that they are new, complex and open in nature, and being able to develop a strategy is (...) one of the most difficult tasks for a leader. Traditionally, it is primarily the top leadership in an organization that works with strategic decisions, and thus it is common that strategic issues are handled by top leadership teams. This is related to the globalization of business and to the fact that the pace of work has increased significantly. In order to exercise leadership, a leader must have access to power. A power base can be created through networking as well as by using different political tactics. However, it is important to use political tactics in order to promote the organization's interests. When a leader has built up a power base, it is essential that power is used properly. The decisions that leaders make must be ethically correct and not violate universal human values. For instance, they should not lead to negative consequences for others within or outside the organization. Evidence suggests that most leaders have the potential to develop as ethical decision makers. -/- . (shrink)

In this chapter it is demonstrated that the way in which leaders implement a decision largely depends on the nature of it, that is, whether it is strategic or not. Leaders must be as open as possible and not withhold information from the persons involved in the process. Therefore, they should distribute as much relevant information as possible to meeting participants before a meeting. At the same time, they must be able to steer the process. It is not unusual for (...) there to be a separation between the formulation and implementation of a strategic decision. Often, it is the top leadership that formulates the decision problem and the middle managers that implement its solution. For this reason, it is relatively common that the top leadership signals that the implementation has been successful as soon as the middle managers begin to report positive results. This can sometimes happen even though most of the implementation is incomplete. However, there are also cases where the top leaders rule out certain implementation processes as failures when in fact they prove later on to be successful. A common problem in organizations is that leaders often inherit the task of implementing decisions that past leaders have made. In order to succeed with an implementation, leaders must understand the importance of the process. They must communicate their vision clearly, evaluate and monitor continuously, and allow interested parties to participate actively in the process. They should also understand that what at first may look like a failure, at a later stage may prove to be a success -/- . (shrink)

Moral responsibility for outcomes in corporate settings can be ascribed either to the individual members, the corporation, or both. In the latter case, the relationship between individual and corporate responsibility has been approached as inversely proportional, such that an increase in individual responsibility leads to a corresponding decrease in corporate responsibility and vice versa. In this article, we develop a non-proportionate approach, where, under specific conditions, individual and corporate moral responsibilities interact dynamically, leading to a mutual enhancement of responsibility: the (...) more the corporation is responsible, the more the individuals become responsible and vice versa. We develop this mutually enhancing approach in terms of normative ascriptions of responsibility, while leaving aside empirical implications in terms of mutual awareness of responsibility between individuals and corporations. We explore conceptually the conditions and mechanisms that generate this mutual enhancement and also discuss the implications for research and practice. (shrink)

The paper is one of the first empirical attempts that builds on the moral dilemmas and group rationality literature to explore the way in which group composition with respect to group members’ individual choices in moral dilemmas and social influence processes impact on group moral choices. First individually and then, in small groups, 221 participants were asked to decide on 10 moral dilemmas. Our results show that emergent group level utilitarianism is higher than the average individual utilitarianism, yet, lower than (...) the highest individual utilitarianism within groups. We also show that average individual utilitarianism positively predicts group utilitarianism while group fragmentation in individual utilitarianism has a negative effect on group utilitarianism. Next to group composition, minority influence processes explain additional variance in group utilitarianism, cognitive dissent having a positive influence, while normative deviance a negative influence on group utilitarianism. Majority influence has no significant influence on group utilitarianism. Finally, our results show that the relationship between group fragmentation in individual utilitarianism and emergent group utilitarianism is mediated by the two forms of minority influence. (shrink)

Accountability is of universal interest to the business ethics community, but the emphasis to date has been primarily at the level of the industry, organization, or key individuals. This paper unites concepts from relational and felt accountability and team dynamics to provide an initial explanatory framework that emphasizes the importance of social interactions to team accountability. We develop a measure of team accountability using participants in the USA and Europe and then use it to study a cohort of 65 teams (...) of Irish business students over three months as they complete a complex simulation. Our hypotheses test the origins of team accountability and its effects on subsequent team performance and attitudinal states. Results indicate that initial team accountability is strongly related to team trust, commitment, efficacy, and identifying with the team emotionally. In established teams, accountability increases effort and willingness to continue to collaborate but did not significantly improve task performance in this investigation. (shrink)