MA GLOBAL BUSINESS CORE COURSE IN HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ENVIRONMENT Academic year 2007 - 2008

10
Class

Good Employer? Ethical leadership in International HRM

Objectives After attending this class, you should start practicing and learning about:

1. Moral competence as future leaders for trust development in organizations: ethical leadership in IHRM. 2. The ability to make moral judgments in decision making. 3. Identify the most important approaches to ethics.

HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ENVIRONMENT

Sources:
Essential reading: “Ethical dimension of managerial leadership. Two explanatory case studies in TQM”. Guillén, M. & González, T.F. Journal of Business Ethics, Vol 34, nº 3-4, pp. 175-189, December 2001. First presented at EBEN 13th Annual Conference. Cambridge, U.K. 12-14 Sep. 2000. Further reading: Edwards,T. and Rees, C. International Human Resource Management, Prentice Hall, 1st edition, 2006. Chap. 13. Guillén, M. “Ética en las organizaciones. Construyendo confianza”, Prentice Hall, 1st edition, 2006. Chap.1.

1

Two key factors to explain the implementation process success are ... Management commitment and Management leadership What makes the difference?: A necessary distinction
Management commitment It involves resource endowment and managerial endorsement It may be founded exclusively on the use of formal power Management leadership It generates free adhesion It is founded on some other influence sources ...
Source: Guillén & González (2000)

BEYOND Formal Power

Multidimensional conception of leadership
Main influence source Leader Personality Leader Behaviour

Technical DIMENSION Technical skills Technical correction Technical rationality Technical environment Technical motivation (Reward)

Psycho-affective DIMENSION Psycho-affective virtues Psycho-affective attractiveness Psycho-affective rationality Psycho-affective environment Psycho-affective motivation (Satisfaction)

Ethical DIMENSION Moral virtues Ethical Uprightness Ethical rationality Ethical environment Ethical motivation (Excellence)
Source: Guillén & González (2000)

Leader rationality Leadership context Follower rationality (motivation)

Multidimensional conception of leadership:
Dynamic free interpersonal relation of influence leaned on technical, psycho-affective and moral aspects Dynamism Continuous exchange of influence and acceptance. Liberality His behaviour can not be required, it depends on their will. Unity Three dimensions joined in human action
Source: Guillén & González (2000)

2

Managerial leadership influence is leaned on trust...
Free adhesion of subordinates to obtain...

Technical trust
Subordinates hope to satisfy their needs for useful goods

Reward

Psycho-affective trust
Subordinates hope to satisfy their needs for pleasant goods

Satisfaction

Moral trust
Subordinates hope to satisfy their needs for moral goods (human excellence)

Fair reward Personal fulfilment Service to others fulfilment (according to human dignity)
Source: Guillén & González (2000)

What’s ethics about?
Means
Theory

Goals

Goods
MORAL Goods
Ethical behavior
free decisions of the will

Norms
Rational judgments

USEFUL Goods PLEASANT Goods
Human quality (excellence)
Source: adapted from Guillén (2006)

Virtues
Practical habits Practice

Classical concept of virtue Classical concept of virtue
VIRTUE: human excellence (arete)
• Stable habit : belongs to person character • Operative: Acquired / learned through practice • Good: operates in favor of human perfection • In the middle: between defect and excess Example

“courage (bravery)”

DEFECT

EXCESS

“Cowardice”

“Rashness”

© 2006 Prentice Hall. Guillén, M. Ch.2

3

Ethical judgments formulation: “ethical rationality” Ethical judgments formulation: “ethical rationality”

Theoretic rationality Theoretic rationality
••Personal reflection Personal reflection ••Ethical knowledge Ethical knowledge ••Criteria acquisition Criteria acquisition

Norms Norms

Training your conscience

Practical rationality Practical rationality
••Oneself sincerity Oneself sincerity ••Ordinary right behavior Ordinary right behavior ••Asking for advise Asking for advise

Virtues Virtues

Exercising prudence

Example

Particular Particular situation situation

• • • • •

Reason catch a particular situation With norms in mind analyze Then, express an ethical judgment Expressed as practical imperative With virtue, it is easier to get it…

Moral judgment Moral judgment (conscience) (conscience) With the With the Intention of a Intention of a

Good Good
behavior behavior

© 2006 Prentice Hall. Guillén, M. Ch.3

Do we need ethics in business?

Economic reasons Ethics as a source of competitive advantage.

Social reasons Social expectations

Human quality reasons A person is a person, also while working!

Which approaches to ethics?
• Pro-active • Sufficient • Discretionary

Maximalist Maximalist ethical view ethical view
Virtues Excellence Approach

Conceptions of ethics

Main focus of the approach Integrity Approach Goods

• Active • Necessary • Enforced

Deontological Approach

Norms

Source: adpated from Guillén, 2006

Minimalist Minimalist ethical view ethical view

4

Which approaches to ethics?
Theories focused on all the three elements: GOODS, NORMS AND VIRTUES Ethical realism

Theories focused On NORMS Rationalism

Theories focused On VIRTUES Stoicism

Theories focused On GOODS Hedonism Utilitarianism Relativism
© 2006 Prentice Hall. Guillén, M.

5