I Investigating the Effect of Ethical Leadership on Effectiveness – A
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Investigating the effect of ethical leadership on effectiveness – a case study on the Minister of Finance, Mr. Pravin Jamnadas Gordhan Ronel van Wyk Student number: 12375056 A research project submitted to the Gordon Institute of Business Science, University of Pretoria, in partial fulfilment of the requirements for the degree of Master of Business Administration 11 November 2013 i © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. ABSTRACT Themba Khumalo in a letter to the Business Day on 29 October 2013 writes: ―Sometime in July I went for late Saturday morning shopping with two friends in a Pretoria mall. Out of the blue there was a minister sitting and eating his breakfast in a modest restaurant. We scanned the place and its surroundings for bodyguards who could be protecting the man – as is the norm with Cabinet ministers wherever they go. But there wasn‟t even a tending personal assistant ready at hand to pay the bill or perform some other little chore for the minister‟s convenience‖. He continues to state that: ―My friends and I concluded that Pravin Gordhan was a true exponent of Barry White‟s “Practice What You Preach” music piece‖. According to Khumalo he was informed by a friend that Minister Gordhan was seen at OR Tambo International Airport standing in the queue with other passengers with no security personnel or assistants escorting him. Khumalo states that: ―He is an exemplary epitome of modesty and we pray that South Africans follows suit. Here‟s someone who was among the patriots who pulled South Africa back from the precipice at the Codesa negotiations, saving the country yet again from the edge of self- destruction through extravagance‖. The researcher applied a case study methodology to highlight aspects pertaining to Minister Pravin Jamnadas Gordhan‘s ethical framework and how this influences his effectiveness as a leader in government. i © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. KEYWORDS Ethical leadership Effective leadership Authentic leadership Moral courage ii © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. DECLARATION I declare that this research project is my own work. It is submitted in partial fulfilment of the requirements for the degree of Master of Business Administration at the Gordon Institute of Business Science, University of Pretoria. It has not been submitted before for any degree or examination in any other University. I further declare that I have obtained the necessary authorisation and consent to carry out this research. ____________________________ Ronel van Wyk 11 November 2013 iii © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. ACKNOWLEDGEMENTS To my supervisor, Dr Johan Olivier, thank you for your patience, guidance and wisdom, you were a guiding a light and made this journey easier. To my family, friends and colleagues, thank you for the support and your commitment, I would not have been able to have done this without you. Riaan, Marlize and Kayla you are my pillars and strength thank you for allowing me the time to finish this journey, I love you dearly. Annette Rabie and Lorraine van Esch thank you, you were a pivotal part of each achievement and your continuous encouragement carried me along. You win the prize for Cheerleaders of the Century! Sherika Vithal, you are an amazing woman and you supported me through this experience. To all the friends that I have made at the MBA, you will be a part of my life and I treasure you all. Dylon Moodley thank you for your friendship and for all the assistance that you gave me, you were never too busy to help. A special word of thank you to Godfrey Baloyi that walked this journey with me, supported and provided me with invaluable wisdom. Godfrey thank you, you are a role model and I am humbled by your contribution and privileged to work with you. To each and every individual that agreed to be interviewed, thank you. Without your contribution this document would not have been written. Giorgio you not only won the race, you beat the others! Minister Gordhan thank you for the example that you are. Your commitment, loyalty, humbleness and integrity are inspirational and you have contributed to making the lives of many far better. Thank you for the privilege of doing this case study. Finally to Andre Botha, thank you for believing in me more than I did in myself! iv © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. DEDICATION This document is dedicated to each and every committed, hardworking, loyal and ethical government official that aspires to serve the people of South Africa and to create a better future for all. v © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. CONTENTS ABSTRACT ....................................................................................................................................... i KEYWORDS .....................................................................................................................................ii DECLARATION ............................................................................................................................... iii ACKNOWLEDGEMENTS ................................................................................................................. iv DEDICATION ................................................................................................................................... v CHAPTER 1: INTRODUCTION TO THE RESEARCH PROBLEM ......................................................... 1 1.1 Relevance of the Problem to South Africa .................................................................... 1 1.2 The significances, value and implications of ethical & effective leadership ................. 5 1.3 Purpose of the research study ...................................................................................... 5 1.4 Potential Users of the Outcomes of the Study ............................................................. 5 CHAPTER 2: LITERATURE REVIEW ................................................................................................. 6 2.1 What is Ethical leadership? ........................................................................................... 6 2.2 Effective leadership – the need for a strongly developed moral compass ................. 17 2.3 Influence of ethical leadership on leadership effectiveness ....................................... 20 2.4 Main theoretical arguments pursued in this research ...................................................... 23 CHAPTER 3: PROBLEM STATEMENT ............................................................................................ 26 3.1 Research Question Validation ..................................................................................... 26 3.2 Research Questions ..................................................................................................... 28 CHAPTER 4: RESEARCH METHODOLOGY..................................................................................... 30 4.1 Research methodology ............................................................................................... 30 4.2 Population and unit of analysis ................................................................................... 32 4.3 Sampling ...................................................................................................................... 33 4.4 Data collection tool and method ................................................................................ 34 4.5 Data Analysis ............................................................................................................... 35 4.6 Limitations ................................................................................................................... 36 CHAPTER 5: RESULTS ................................................................................................................... 37 5.1 Introduction ................................................................................................................ 37 5.2 Background on Pravin J. Gordhan ............................................................................... 37 5.3 Research Questions Results ........................................................................................ 40 Research Questions 1: ............................................................................................................. 40 5.3.1 What are the characteristics of ethical leadership? ........................................... 40 Research Question 2: .............................................................................................................. 48 1 © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. 5.3.2 What are the characteristics of effective leadership? ........................................ 48 Research Question 3: .............................................................................................................. 54 5.3.3 What are the key factors that influence the relationship between effective leadership and ethical leaders – how does ethical leadership affect effective leadership? 54 5.4 Conclusion ..................................................................................................................