SECTION A [40 Marks]

Read the Case Study below and Answer ALL the Questions that follow

Ethics and change management starts at the top and SA has work to do

The ethics of an organisation filters from the top down, recent research has confirmed - but in South Africa, there is a "disconnect" in how ethical various levels of management are perceived to be. In addition to showing that leaders play a significant role in change management and shaping the ethics of an organisation, the survey also showed that overall, SA has a developing ethical culture that still needs to mature. The research, conducted in intervals of three years, measures the state of ethics and management of change in South Africa where over 2 200 respondents participated in the survey. In most organisations there is a focus on ethical standards and conduct, but it is not completely part and parcel of the DNA of the organisation. The research showed there was a general perception by employees that senior management is committed to ethics.

However, middle management and non-managerial employees were perceived as less committed. This suggested a disconnect between the ethical commitment of senior management and employees at lower levels, who otherwise would be more committed to ethical culture if they observed senior management actively being ethical, it added. Just under a third (31%) of respondents said they had personally observed ethical misconduct in their organisations, up from 25% reported in the last survey in 2016. However, there was also a higher incidence of reporting. Of those who observed unethical conduct, 55% reported it, up from 48% recorded in the 2016 survey. Another dimension is that of those who did not report unethical behaviour, 32% felt they would be victimised. Ultimately, it depends on leadership Leaders have to lead from the front. When it comes to fostering an ethical culture, the research found accountability and responsibility were crucial - in other words, an environment where unethical behaviour is punished and ethical behaviour is recognised and rewarded. Prof Deon Rossouw, CEO of The Ethics Institute, who was also a panellist on this research, added that ethics goes beyond compliance and should be a culture. He said in organisations with poor ethical culture, the likelihood of reporting unethical behaviour was less than in companies with strong ethical culture. Strong leadership with sound ethical principles, will contribute to improving the ethical culture of the organisation.

This improvement, requires sound change management, which is a systematic approach to dealing with the transition or transformation of an organization's goals, processes or technologies. The purpose of change management is to implement strategies for effecting change, controlling change and helping people to adapt to change. Such strategies include having a structured procedure for requesting a change, as well as mechanisms for responding to requests and following them up. As a leader, you are the closest to employees, you are the one who can influence their behaviour as well as attitude toward change. As such, researchers suggested that the following 8 essential steps are crucial change process components: 1. Identify what will be improved 2. Present a solid business case to stakeholders 3. Plan for the change 4. Provide resources and use data for evaluation 5. Communicate 6. Monitor and manage resistance, dependencies, and budgeting risks 7. Celebrate success and 8. Review, revise and continuously improve.

Adapted from: (https://www.fin24.com/Economy/ethical-business-starts-at-the-top-and-sa-has-work-to-do-survey-finds20190611) and (https://www.smartsheet.com/8-elements-effective-change-management-process)

QUESTION 1 (20 Marks)

According to the case study "Leaders have to lead from the front". The minute you are compromised as a leader, you lose the moral high ground. Leaders constantly face new dilemmas and challenges and they should be flexible and be able to adapt to constant challenges and changes.

Critically discuss the major dilemmas facing managerial leaders.

QUESTION 2 (20 Marks)

In the case study it is eluded that ethics goes beyond compliance and should be a culture. Organisations with a poor ethical culture, are less likely of reporting unethical behaviour than in companies with strong ethical culture. Leaders are often referred to as 'influencers' they influence others' behaviour through demonstrating certain behaviours and taking certain actions. Good leaders should set the example that will be followed by sub-ordinates. Leading by example will contribute to a strong ethical culture in the organisation.

Critically discuss what a 'good leader' is and what 'good leadership' entails. Support your answer with appropriate examples from the public sector.