Leadership in business
A1. The LMX model is a leadership model based on leader-member exchange. Managers can become more effective by using this model through the practical application of this model in the workplace: in-groups and out-groups.
The creation and existence of in-groups and out-groups by managers can lead to artificial hierarchies in the organizational structure. However, it also increases their efficiency in terms of the job satisfaction achievement from the members of the in-group. The job satisfaction portion automatically leads to the motivation part and thus affects employee performance. Through the clever use of the LMX model, managers can be highly successful in motivating their workforce and creating satisfied employees from unsatisfied ones. (Robbins, 2004)
A quality of a charismatic leader is to simultaneously be in the “out” group as well as the “in” group. The LMX model is an example of how this can be expressed in theory. The LMX model is a visual description of the leadership, mentoring and information exchange models that charismatic leaders usually use for their benefit. (Robbins, 2004)
A2. The situational environment plays a key role in influencing the decisions made in an organization. Especially, when it comes to the question of making unethical decisions, the situational environment is a significant contributor and influencer of the decision. The decision maker is thus influenced greatly by the events and happenings in the situational environment. (Robbins, 2004)
Unethical decision making is a highly subjective action. It is determined to a great extent by the situational environment whether a decision needs to be made or not. A particular organization may have a very strict practice to adhere to ethical decision making and thus in such an environment, there might be a high resistance to attempts to unethical decision making. (Robbins, 2004) However, it is well possible that the opposite may happen at times. An environment where unethical decision making is a norm and there are few criteria to distinguish between an ethical and an unethical decision, the decision-maker will find it easy to escape with an unethical decision without any critics.
Thus it is a great deal dependent on the situational environment of the organization as to whether unethical decision making is easily possible or something met by high resistances.
Robbins, S. P. (2004). Organizational Behavior. New York: Pearsons.