The Influence Of Ethical Leadership On Organizational Health

Along with rapid development of economy and society,organizations pay more attention to employee health and social responsibility than competitive advantages of strategy and technology.However many leaders lost their principles and ethics with huge temptation of benefits.Organization also suffered heavy losses to the end.So what is organizational health? How to evaluate? Is it related to the leaders? This article begins with these questions.From perspective of organizational dynamic capability,we did a case study on China Vanke Co.,Ltd.and its leader Wang Shi who is the chairman of the board now.The influence mechanism of ethical leadership on organizational health was revealed by grounded research.We got five conclusions:(1)The personal traits of ethical leadership included seven dimensions: justice,exploitation and innovation,responsibility,tolerance,insight,communication,and self-reflection.And the ethical leadership behavior included four dimensions: care for employees,balance relationships,moral conduct demonstration and continuous learning.(2)The structure of organizational health included eight aspects: high organizational performance,specialized personnel,customer satisfaction,employee loyalty,shareholders' following,organization information transparency,law-abiding and social responsibility.(3)The mechanism of ethical leadership behavior on organizational dynamic capability was different when the external environment is stable or not.Due to different degree of competition strength,market turmoil,technological change and institutional environment,the effect of ethical leadership on organizational dynamic capability was different.(4)Organizational dynamic capability mediated the relationship between ethical leadership and organizational health.Every dimension of this ability played different role.(5)The relationship between ethical leadership and organizational dynamic capability was different due to different organization atmosphere.In open atmosphere,the innovation trait and continuous learning behavior of the leader played major impact.While in people-oriented atmosphere,the traits of justice,responsibility,tolerance and behavior of caring for the employees play major roles.The influence mechanism of leadership on organization in this research has guiding significance for China's enterprise management practice.The internal structure of ethical leadership and organizational health we build can make reference for regulation of leadership behavior and organizational management.