WEBSTER UNIVERSITY School of Business and Technology Doctoral Project Committee: Gary Renz, Ph.D.

, Chairperson David Brennan, Ph.D. John Orr, Ph.D.

ETHICAL LEADERSHIP, VALUES CONGRUENCE, AND WORK PLACE DEVIANCE: AN EXPLORATORY STUDY by PATRICK LAWRENCE GOODENOUGH

A doctoral project presented to the School of Business and Technology at Webster University in partial fulfillment of the requirements for the degree Doctor of Management

April 2008 Saint Louis, Missouri

UMI Number: 3346393 Copyright 2008 by Goodenough, Patrick Lawrence

All rights reserved.

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@ Copyright by Patrick Lawrence Goodenough ALL RIGHTS RESERVED (2008)

WEBSTER UNIVERSITY DOCTOR OF MANAGEMENT Doctoral Project Approval

To: J o h n Patrick Orr, Ph.D. Director Doctor of Management Program Doctoral Project Committee Chair: Member: Member: Gary Renz, Ph.D. David J . Brennan. Ph.D. J o h n P. Orr, Ph.D.

From:

We, the Doctoral Project Committee, do certify that the Doctor of Management candidate: PATRICK L. GOODENOUGH has satisfactorily completed all requirements for the degree of Doctor of Management in the Doctoral Program at Webster University, and do, therefore recommend that this^candid^tte^e awarded the degree of Doctor of Management. Chair: Member: L^ ^f=^ Gary Renz TA X Date: (L*&. Date: H (iffa?

Mfc^T David J. Brennan, Ph.D.

<^/<55~/*J

Member

C~\A^S^.(Q^~~
V\Jojin T ^

Date:' H / ^ / o t t

P. Orr, Ph.D

CONCURRENCE:
I do concur with the recommendations of the Doctoral Project Committee as stated above. \ J o h n Patrick Orr, Ph.D. ^-Director Doctor of Management Program

DEDICATION
I would like to dedicate this work to several individuals who have been instrumental in seeing me complete my educational goals over the years, and especially the doctoral program. First, I want to dedicate this work to my wife, and best friend, Althea P. Johns, who 'gently' pushed and prodded me to stay focused and get this project completed. Also, to my daughter, Renee, who is growing up fast; some day you will get there; just don't be in a hurry. I appreciate their love and support throughout this process. And a special shout out to my traveling companion, Lucky; in the car, at the dog park, or on our nightly walks through the neighborhood; his unconditional love and loyalty never tires. Second, I want to dedicate this work to my father, Daniel J. Goodenough (retired Circuit Judge for the Commonwealth of Kentucky) (deceased 2003), who is safely home, and to my mother, Helen V. Goodenough. Both have been inspirational and loving parents. My father and I had many good experiences over the years. It's sad that he is not around to see the doctoral project completion with me. And my mother, who ran the house as a true leader with wisdom, kindness, discipline, and love. I appreciate their love and support over the years. Third, I would like to dedicate this work to my cohort group, wherever they happen to be; and most importantly to Mike Abeln and David Lawson, good friends and
study group partners; good friends "who kept me on the straight and narrow path with lots

of ice tea, coffee, and hot wings. Though they beat me to the finish line, perseverance and determination are key factors in getting it done.

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ACKNOWLEDGEMENTS
I would like to acknowledge a number of individuals who have been influential and helpful in completion of this project. First, I want to thank those Webster University faculty members who teach in the Doctoral Program, who dedicate themselves to their profession so that others may gain knowledge. The program was a unique learning experience. I especially want to thank my chair and committee members: Drs. Gary Renz, David Brennan, and John Orr. A special thanks to Dr. Renz for his meaningful insights and help with the data piece. And to Dr. DiMarco, who got me started. Second, I want to thank the Barnes-Jewish Hospital's Executive Leadership team for supporting my efforts and allowing me to conduct this research study at the hospital. A special thanks to the BJH Research Council, especially Margaret Ulione, Ph.D., Director of Nursing Education, Research, and Professional Practices; and to Jennifer Sledge, Research Coordinator, who collaborated on this project. Both were instrumental in assisting with the hospital's process.

IV

TABLE OF CONTENTS
Page Dedication Acknowledgements List of Tables List of Figures Abstract Chapter I - Introduction Chapter II - Review of the Relevant Literature Chapter III - Methodology Chapter IV - Results Chapter V - Discussion APPENDICES Appendix A - Survey Cover Letter Appendix B - Ethical Leadership Scale - Administration Appendix C - Ethical Leadership Scale - Nursing Appendix D - Values Congruence Scale - Individual Level - Administration Appendix E - Values Congruence Scale - Individual Level - Nursing Appendix F - Values Congruence Scale - Organizational Level - Administration
Appendix G Values Congruence Scale Organizational Level Nursing

iii iv . vii ix 1 2 7 19 27 83

96 98 99 100 101 102

103

Appendix H - Workplace Deviance Scale - Interpersonal Level - Administration Appendix I - Workplace Deviance Scale - Interpersonal Level - Nursing Appendix J - Workplace Deviance Scale - Organizational Level - Administration

104 105 106

TABLE OF CONTENTS Page Appendix K - Workplace Deviance Scale - Organizational Level - Nursing Appendix L - IRB Authorizations References 107 108 114

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LIST OF TABLES
Page Table 1: Participating Hospital Departments Table 2: Basic Descriptive Statistics for Scales at the Individual Level of Analysis Table 3: Skewness and Kurtosis for Scales at the Individual Level of Analysis < . 20 29 29

Table 4: Skewness and Kurtosis Statistics for Transformations of Interpersonal Deviance by Self at the Individual Level of Analysis 35 Table 5: Confirmatory Factor Analyses for Interpersonal Deviance by Respondent 39

Table 6: Confirmatory Factor Analyses for Organizational Deviance by Coworkers ...40 Table 7: Correlations between Value Congruence and Interpersonal Deviance Scales at the Individual Level of Analysis 43 Table 8: Correlations between Original and Revised Value Congruence and Interpersonal and Organizational Deviance Scales at the Individual Level of Analysis 44 Table 9: Variability in Means across Departments for Ethical Leadership Table 10: Variability across Departments in Value Congruence with Supervisor Table 11: Variability across Departments in Value Congruence with Organization Table 12: Variability in Means across Departments for Interpersonal Deviance by Self 59 Table 13: Variability in Means across Departments for Organizational Deviance by Coworkers Table 14: Correlations between Variables at the Department Level of Analysis 48 51 55

63 67

Table 15: Correlations between Variables using Department and Individual Level Data 70 Table 16: Multilevel Analysis Regressing Value Congruence with Supervisor on Ethical Leadership 74 Table 17: Multilevel Analysis Regressing Value Congruence with Organization on Ethical Leadership

75

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LIST OF TABLES
Page Table 18: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) .76 Table 19: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Ethical Leadership (Dependent Variable treated as Poisson Distribution)

77

Table 20: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) .78 Table 21: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Ethical Leadership (Dependent Variable treated as Poisson Distribution) 78 Table 22: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Value Congruence with Supervisor and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) 80 Table 23: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Value Congruence with Supervisor and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) 81 Table 24: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Value Congruence with Organization and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) 82 Table 25: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Value Congruence with Organization and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) 82

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LIST OF F I G U R E S Page Figure 1: Conceptual Model Figure 2: Distribution of Ethical Leadership at the Individual Level of Analysis 18 30

Figure 3: Distribution of Value Congruence with Supervisor Ratings at the Individual Level of Analysis 31 Figure 4: Distribution of Value Congruence with Organization Ratings at the Individual Level of Analysis 32 Figure 5: Distribution of Interpersonal Deviance by Self at the Individual Level of Analysis

33

Figure 6: Distribution of Organizational Deviance by Coworkers at the Individual Level of Analysis 34 Figure 7: Distribution for Transformation of Interpersonal Deviance by Self using negative reciprocal square root at the Individual Level of Analysis Figure 8: Variability in Means across Departments in Ethical Leadership Figure 9: Ratings within and across Departments for Ethical Leadership Figure 10: Ratings within and across Groups for Ethical Leadership Figure 11: Variability in Means across Departments in Value Congruence with Supervisor 35 48 49 50

52

Figure 12: Ratings within and across Departments for Value Congruence with Supervisor 53 Figure 13: Ratings within and across Groups for Value Congruence with Supervisor ..54 Figure 14: Variability in Means across Departments in Value Congruence with Organization Figure 15: Ratings within and across Departments for Value Congruence with Organization 56

57

Figure 16: Ratings within and across Groups for Value Congruence with Organization 58

IX

LIST OF F I G U R E S Page Figure 17: Variability in Means across Departments for Interpersonal Deviance by Self 60 Figure 18: Ratings within and across Departments for Interpersonal Deviance by Self. 61 Figure 19: Ratings within and across Groups for Interpersonal Deviance by Self 62

Figure 20: Variability in Means across Departments for Organizational Deviance by Coworkers 64 Figure 21: Ratings within and across Departments for Organizational Deviance by Coworkers

65

Figure 22: Ratings within and across Groups for Organizational Deviance by Coworkers 66

ABSTRACT OF THE DOCTORAL PROJECT Ethical Leadership, Values Congruence, and Work Place Deviance: An Exploratory Study
By Patrick Lawrence Goodenough Doctor of Management Webster University in St. Louis, (2008) Gary Renz, Ph.D., Chairperson Managers should be a source of ethical guidance for employees. Little empirical research focuses on the perceptions of ethical dimensions of leadership. This research study proposed an exploratory study to better understand perceptions of ethical leadership and its relationship to perceived employee value congruence and work place deviance. A conceptual model was developed to illustrate the relationships between perceived ethical leadership, value congruence, and workplace deviance. Descriptive statistics were reported at both the individual level and department, group level. Correlations and statistical analyses were conducted at individual, department, and multiple levels of analyses. The results show that although different multilevel analyses were conducted, there were no statistically significant relationships between ethical leadership at the department level and value congruence and deviance behaviors at the individual level of analysis. Further research was conducted in the area of culture and climate. The concept of organization culture and climate is relevant to organizational level analysis. This aids in the understanding of what occurs inside organizations when different subcultures and occupational groups must work with each other.

ETHICAL LEADERSHIP, VALUES CONGRUENCE, AND WORK PLACE DEVIANCE: AN EXPLORATORY STUDY
"The purpose of learning is growth, and our minds, unlike our bodies, can continue growing, as we continue to live." ~ Mortimer Adler

CHAPTER I INTRODUCTION
This section discusses current organizational challenges involving ethics and leadership, the relationship with deviant behavior at the individual and organizational levels, and values congruence between leaders and the individuals they supervise. This study does not assume that there are good leaders or ethical leaders, but rather the study will focus on the employees' perception of ethical leadership. Colvin (2003), Mehta (2003) and Revell (2003) offer that recent ethical scandals in businesses have raised important questions about the role of leadership in shaping ethical conduct. Most employees look outside themselves to significant others for ethical guidance (Kohlberg, 1969; Trevino, 1986). Therefore, in the workplace, leaders should be a central source of such guidance. However, little is known about the perception of the ethical dimension of leadership and its relationship to value congruence and work place deviance. Most attention to this topic has relied upon a philosophical perspective,
focusing on the question of leaders as role models and the affect on followers' behavior.

But, even philosophers note that it is remarkable that there has been little in the way of sustained and systematic treatment of the subject (perceptions of ethical leadership) by scholars (Ciulla, 1998).

Theory-Phenomenon Linkages Previous studies of an ethical dimension of leadership have been embedded primarily within the transformational and charismatic leadership domains (Bass & Avolio, 2000), two styles of leadership that are distinct, yet conceptually similar enough that they are sometimes discussed as if they were interchangeable (Bono & Judge, 2003; Conger, 1999; Shamir, 1999). Brown, Trevino, and Harrison (2005) posit that multiple versions of values-based charismatic leadership and transformational leadership exist in the literature (Bass & Avolio, 1993; Conger & Kanungo, 1998; Shamir, House, & Arthur, 1993). These approaches overlap considerably in their descriptions of an inspiring, values-based charisma leadership style that includes ethical content. In particular, the charisma dimension of transformational leadership refers to the leader as an ethical role model (Avolio, Bass, & Jung, 1999; Kanungo & Mendonca, 1996). Despite arguments that authentic transformational (Bass & Steidlmeier, 1999) and charismatic leaders ((Howell & Avolio, 1992) are ethical leaders, less is known about whether and how such a leadership style is related to follower's ethical performance. This study addresses that question by focusing on perceptions of ethical leadership at the supervisory level and its relationship to deviant behaviors in the work place. O'Leary-Kelly, Duffy, & Griffin (2000) suggest that workplace deviance involves intentional acts that violate organizational or societal norms and that harm the
organizations or its members. Workplace deviance includes serious interpersonal and

organizational misconduct, such as theft, interpersonal aggression, and sabotage, and more minor behaviors, such as intentionally wasting resources or blaming coworkers for one's mistakes. This study focuses on workplace deviance because of its importance in

the work place and its costliness in economic and social terms (Bennett & Robinson, 2000; Giacolone & Greenberg, 1997; Robinson & O'Leary-Kelly, 1998; Vardi & Wiener, 1996). This study proposed an exploratory study to investigate this association with perceptions of ethical leadership because previous theorizing, suggests that leadership style can influence deviant behaviors (Vardi & Weitz, 2004). In addition, this study is interested in understanding the social influence mechanism that explains this relationship. This study proposed that ethical leaders exert their influence on deviant behavior in the work place through a values congruence process (Kelman, 1958). Statement of the Problem Over the last decade and a half the topic areas of ethical and transformational leadership in organizations has undergone a significant evolution in terms of both theory development and empirical investigations. Brown, Trevino, and Harrison (2005) conducted research that focused on socialized charismatic leadership, value congruence, and observed deviance in work groups. The authors focused on workplace deviance because of its importance in the workplace and its costliness in economic and social terms. Their study investigated the association with socialized charismatic leadership based on previous theoretical work that suggested a socialized charismatic leadership style could influence deviant behaviors (Vardi & Weitz, 2004). The authors proposed that socialized charismatic leaders exert influence on deviant behaviors in the work group through a values congruence process. The authors conceptualized constructs at the work group level. Theses constructs included socialized charismatic leadership, value congruence, and workplace deviance.

The authors used the term, socialized charismatic leadership, to make it clear that they are focusing on ethical transformational and charismatic leaders. This study conceptualizes constructs at the individual level. The literature research conducted by Rokeach (1973) and Schwartz (1996), Brown et al. (2005) suggest that the ethical values modeled by socialized charismatic leaders and shared by work group members are the standards used to guide employees to engage in normative appropriate conduct and refrain from normative inappropriate conduct. Significance of the Research There has been much work attempting to develop a general theory of ethical leadership. Since there is very little general theory of ethical leadership, this suggests that perhaps there is no research or solid evidence that shows that ethical behavior produces superior leadership results. And as long as leadership results are defined as success (e.g., sales, revenue, sports victories, promotions, awards, etc.) and do not monitor or analyze the underlying leadership behavior in terms of whether it was ethical or not, that produced these results, we can never show statistically that ethical behavior, however defined, is a superior result producer than unethical behavior. In addition, Brown, et al., (2005) observed that the empirical study of leadership has often overlooked the ethical dimensions, and the research that has been conducted is limited by specification of and agreement on a clear definition of ethical leadership. Brown, et al., (2005) suggest that any theory of ethical leadership should be based on two premises. First, ethical leadership is a system of thought based on setting rules for what to do, not on what not to do. Second, the definition of leadership must evolve to include ethical

behavior not because ethical behavior is simply a natural good in and of itself, but mainly as part of the core of what leadership is for pragmatic reasons. Based on the above discussion, this study proposed an exploratory study of perceived ethical leadership utilizing the conceptual constructs developed by Brown and Trevino. This study focused on perceived ethical leadership, values congruence, and observed deviance at the individual level within the work place. In addition, the study utilized the prior research of socialized charismatic leadership and social learning. This also follows the research of Brown, Trevino, and Harrison (2005), which suggests that leaders should be a key source of ethical guidance for employees. The authors proposed a social learning theory as a theoretical basis for understanding ethical leadership and offer a constitutive definition of the ethical leadership construct.

CHAPTER II REVIEW OF THE RELEVANT LITERATURE

This section presents theoretical concepts related to the study. This section discusses the social learning perspective of ethical leadership, level of analysis, ethical leadership and work place deviance, and the mediating role of values congruence. This study makes no assumptions that there are good leaders or ethical leaders, but rather focuses on perceptions of ethical leadership and its relationship to perceived value congruence and work place deviance. Ethical Leadership - A Social Learning Perspective Brown, Trevino, and Harrison (2005) conducted a study of ethical leadership to better understand what characterizes ethical leadership. The authors suggest that the ethical dimension of leadership represents a small component that falls within the nexus of inspiring, stimulating, and visionary leader behaviors that make up transformational and charismatic leadership. On the basis of interviews conducted from their study in 2002, these authors developed a definition of ethical leadership, which is stated as: "the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and promotion of such conduct among followers through two-way communication, reinforcement, and decision-making processes" (Brown & Trevino, 2002). Survey research frequently links perceived leadership effectiveness with leader honesty (truth-telling), integrity (principled behavior), or trustworthiness (can be trusted) (Den Hartog, House, Hanges, Ruiz-Quintanilla, & Dorfman, 1999; Kouzes & Posner, 1993; Posner & Schmidt, 1992). Honesty and integrity are seen as important components

of a transformational leader's idealized influence. Brown & Trevino (2002) also found that ethical leadership involves a "moral manager' aspect that involves a number of visible behaviors that do not necessarily flow only from personal traits (i.e., sustained communication of an ethical message, holding followers accountable for ethical conduct). Ethical leaders make efforts to incorporate moral principles in their beliefs, values, and behavior. Their characters exhibit commitment to higher purposes, prudence, pride, patience, and persistence. Researchers mention other virtues of ethical leaders such as integrity, determination, fairness, honesty, humility, tolerance, enthusiasm, courage and responsibility (Guillen & Gonzalez, 2001; Solomon, 1999). Such attributes of their character become worthy of emulation by followers. Leaders are in a unique position to mete out justice because of their legitimate power, control of resources, and responsibility for important decisions about employees. Trevino et al. (2000, 2003), found that leader behaviors reflecting a concern for people and fair treatment of employees, contributes to perceptions of ethical leadership. Other formulations of what might constitute ethical leadership go beyond fair treatment to include principled decision-making (Avolio, 1999), setting ethical expectations for followers (Trevino et al., 2003) and using rewards and punishment to hold followers accountable for ethical conduct (Gini, 1998). Trevino et al., (2005) defined ethical leadership as the "demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making." This suggests, (1) that those who are perceived to be ethical leaders model conduct that followers consider normatively appropriate

(honesty, trustworthiness, fairness, and care), making the leader a legitimate and credible role model (Trevino et al., 2005); (2) that ethical leaders not only draw attention to ethics and make it salient in the social environment by explicitly talking to followers about it, but they also provide followers with voice, a procedurally or interpersonally just process (Bass & Steidlmeier, 1999; Howell & Avolio, 1992; Trevino et al, 2005); (3) implies that ethical leaders set ethical standards, reward ethical conduct and discipline those who do not follow the standards (Gini, 1998; Trevino et al., 2003), contributing to vicarious learning; and (4) decision-making reflects the fact that ethical leaders consider the ethical consequences of their decisions, and make principled and fair choices that can be observed and emulated by others (Bass & Avolio, 2000; Burns, 1978; Howell & Avolio; Trevino et al., 2005). Individual Level of Analysis This research study proposed an exploratory study conceptualizing the constructs developed by Brown and Trevino utilizing perceptions of ethical leadership, value congruence, and workplace deviance at the individual level within the work place. First, the expectation is that leaders would demonstrate ethical leadership similarly to the work group members, in that they do not reserve such a leadership style for a select few individuals. Second, previous research has found agreement in follower's perceptions of transformational and charismatic leadership in work groups (Judge & Bono, 2000). Thus, consistent with prior research, perceptions of ethical leadership were treated as an individual-level construct (Bono & Judge, 2003; Kark, Shamir, & Chen, 2003; Shamir, Zakay, Breinin & Popper, 1998). Similarly, because ethical leaders are thought to

motivate their followers by fostering shared values (Shamir, et al., 1993), this study conceptualized perceived value congruence at the individual level. This study proposed to conceptualize work place deviance at the individual level. A review of the literature acknowledges that acts of deviance are individual behaviors; deviance has also been considered at the group level (Robinson & Greenberg, 1998; Robinson & O'Leary-Kelly, 1998). A review of the multilevel literature suggests that deviant behavior is a shared unit property (Kozlowski & Klein, 2000) that originates in the behaviors of individuals but converges as a function of ethical leadership. Vardi and Wiener (1996) define organizational misbehavior (defined as deviance) as any intentional action by members of organizations that violate core organizational and/or societal norms; a crucial element in the definition is the intention underlying the misbehavior. Attempts to systematize the treatment of phenomena related to organizational misbehavior have been reported in past studies. Hollinger (1986) observed that sociological research on employee misbehavior (deviance) has centered around two foci: production deviance, and property deviance. While both constitute rulebreaking behavior, the first includes various types of behavior that are counter-productive (e.g., substandard work, slowdowns, insubordination), and the second category pertains to acts against property and assets of the organization (e.g., theft, pilferage, embezzlement, vandalism). Robinson and O'Leary-Kelly (1998) use a broader term of antisocial behavior to describe negative behaviors (deviance) in organizations. They chose this expansive term because anti-social behavior captures a wide range of actions, and the harmful nature of these acts to individuals and organizations.

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Workplace deviance is defined as voluntary behavior that violates significant organizational norms and threatens the well-being of the organization or its members, or both (Bennett & Robinson, 2000). Employee deviance is voluntary in that employees either lack motivation to conform to, and/or become motivated to violate, normative expectations of the social context or become motivated to violate those expectations (Kaplan, 1975). Organizational norms consist of basic moral (ethics) standards as well as other traditional community standards, including those prescribed by formal and informal organization policies, rales, and procedures (Feldman, 1984). Theory and research emphasize contextual influences on deviance (Robinson & Greenberg, 1998). In addition, supervisory leadership style is an important shared contextual influence that is thought to shape behavior in work groups (Stogdill, 1963). Ethical leaders serve as role models (Avolio, et al., 1999), arouse a collective sense of mission (Conger, 1999), and get followers to transcend their self-interest for the good of the group (Bass, 1985; Burns, 1978). Social learning from role models (Bandura, 1986) suggests that individuals (work group members) share a similar influence in their supervisor. On the basis of Schneider's (1987) attraction-selection-attrition hypothesis, Robinson and O'Leary-Kelly (1998) argued that work group members should be relatively homogeneous in their attitudes and behaviors related to antisocial behavior. Finally, employees who work together should share similar perceptions of the extent to which deviant behaviors occur in their work group, and they should acquire these perceptions through direct observation of deviant coworkers and through shared social information (Robinson & O'Leary-Kelly, 1998).

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Ethical Leadership and Workplace Deviance Brown, Trevino, and Harrison (2005) suggest that normative theory argues that leaders should play an ethical authority role (Ciulla, 1998; Freeman, Gilbert, & Hartman, 1988; Rost, 1995). The organizational leadership literature has addressed leadership's ethical dimension primarily through transformational and charismatic leadership (Kanungo & Mendonca, 1996). Burns (1978) distinguished transformational leadership from transactional approaches. He reasoned that transformational leaders encourage followers to embrace moral values and to act in the interest of the collective rather than according to self-interest. He cites Kolhberg's (1969) theory of cognitive moral development as well as Maslow's (1954) hierarchy of needs and Rokeach's (1973) theory of values to explain transformational leaders' influence. Bass (1985) translation of Burn's (1978) work on transformational leadership to the organizational literature and, with Avolio (Bass & Avolio, 2000), developed a multidimensional transformational leadership construct with the following dimensions: individualized consideration, intellectual stimulation, idealized influence, and inspirational motivation. The inspirational motivation component of transformational leadership combines with the idealized influence dimension to account for the ethical aspect of transformational leadership (Avolio et al., 1999). Scholars differentiate between ethical (socialized) leaders and unethical (personalized) leaders (Howell & Avolio, 1992) and authentic and pseudo-transformational leaders (Bass & Steidlmeier, 1999). This might suggest that pseudo-transformational and ethical leadership are not necessarily aligned.

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Most reviews of the behavioral science literature on leadership have given scant attention to its ethical dimensions (Bass, 1990; House & Aditya, 1997). Most attention to an ethical dimension of leadership has been embedded within the charismatic or transformational leadership paradigm. Burns (1978) suggested that 'transforming' leaders inspire followers by aligning their own and their followers' value systems toward important moral principles. Bass and Avolio (1993) described four dimensions of transformational leadership: inspirational motivation, idealized influence, individualized consideration, and intellectual stimulation. Of these, the idealized influence dimension has been defined as having an ethical component. Idealized influence means that transformational leaders are 'role models for followers to emulate' (Avolio, 1999). They can be counted on to do the right thing, and they demonstrate high standards of ethical and moral conduct. Brown, et al., (2005) used the term socialized charismatic leadership to make it clear that they focused on the ethical dimensions of transformational and charismatic leaders. Some have argued that both transformational and charismatic leaders can be self-centered and manipulative in pursuing their goals (Conger & Kanungo, 1998). Others have differentiated between the ethical and unethical potential in both types of leadership. Bass and Steidlmeier (1999) differentiated between authentic transformational leaders, who are ethical leaders, and pseudo-transformational leaders, who are self-interested and lack moral virtues. In addition, Howell and Avolio (1992) found systematic differences between ethical and unethical charismatic leaders, consistent with Howell's (1988) conceptualization of socialized and personalized charismatic leaders. For this study, the term ethical leadership emphasizes the focus on

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leaders who convey ethical values, are other-centered rather than self-centered, and who role model ethical conduct. This study hypothesized that, those employees, who report directly to an ethical leader (i.e., direct reports) will engage in fewer acts of workplace deviance. First, harmful acts aimed at the organization should be lower because the supervisor is perceived to be the linking pin between the organization and employees and therefore represents the organization to direct reports. If an ethical leader represents positive ethical values (Kanungo & Mendonca, 1996), followers' attitude toward the organization should be more positive, and they should have little motivation to harm it. Second, harmful acts aimed at the organization and work group members should be lower because ethical leaders inspire followers to transcend their own self-interest for the good of the team and organization. Behaviors that harm the work group or the organization are inconsistent with that type of transcendence. Third, ethical leaders serve as visible role models (Shamir, et al., 1993). According to social learning theory (Bandura, 1986), if leaders are ethical role models (Avolio, et al., 1999) then employees will observe and imitate their ethical behavior, which should translate into lower levels of deviance. Finally, the unethical (personalized) leadership style has been associated with increased follower destructiveness (O'Connor, Mumford, Clifton, Gessner, & Connelly, 1995). Thus, the opposite, ethical (socialized) leadership style, should be associated with reduced follower destructiveness, and reduced deviant behavior at the organizational level. This leads to hypotheses la and lb: Hypothesis la: Ethical leadership is negatively associated with deviant behavior at the individual level within the leader's work group.

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Hypothesis lb: Ethical leadership is negatively associated with deviant behavior at the organizational level. The Mediating Role of Value Congruence Despite much theorizing about how transformational and charismatic leaders impact followers, the social influence processes used by these leaders remain poorly understood (Yukl, 1999). Recent studies have attempted to explicate these processes (e.g., Bono & Judge, 2003; Kark et al., 2003), but with mixed results (Dvir, Eden, Avolio, & Shamir, 2002). The study conducted by Brown, et al., (2005) focused on perceived value congruence as the key mediating social process because values play such a prominent role in all theories of charismatic and transformational leadership (House, 1996) and because followers' perception that they share the ethical supervisory leader's values should be associated with reduced deviance in work groups. Furthermore, the empirical association of perceived value congruence with transformational leadership and its influence on outcomes has been supported in previous research (Bono & Judge, 2003; Jung & Avolio, 2000). Previous research has supported the positive role that value congruence and trust play in the leadership process. Meglino et al., (1989) reported that workers were more satisfied and committed when their personal values were congruent with the values of their supervisors. Kirkpatrick and Locke (1996) conducted a laboratory experiment demonstrating that leaders who articulated visions with more of an emphasis on quality, positively affected followers' perceived congruence with beliefs and values communicated in the vision. However, despite these encouraging results, there have been very few studies that have examined their potential mediating role in the leadership process (Podsakoff et al., 1990). Based on Bass' (1985) original model, trust and value

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congruence are particularly important variables to consider when evaluating the impact of charismatic/transformational leadership on follower development and performance. Bass argued that transformational leaders motivate their followers by raising their followers' level of awareness about the important and value of designated outcomes. Thus, value congruence achieved through a value internalization process and demonstrated trust in the leader, have been considered core mediating aspects of transformational leadership theory from its inception (Shamir et al., 1993). Followers' trust in the leader has been considered one of the most important variables that can mediate the effectiveness of transformational leadership (Podsakoff et al., 1990; Yukl, 1998). Yukl (1998) argued that a follower's commitment to the leader's vision depended on a leader's capability to build trust with followers. Podsakoff et al., (1990) reported that transformational leadership influenced followers' organizational citizenship behaviors only indirectly, in that it was mediated by the followers' level of trust in their leader. Kouzes and Posner (1995) summarized the importance of trust in the leadership process as, "above all else, we must be able to believe in our leaders. We must believe that their word can be trusted, that they'll do what they say... (p. 26)." Similar to transformational leaders, ethical leaders are thought to emphasize the collective and the value of being part of something larger than oneself (Shamir et al, 1993). Individuals are thought to follow ethical leaders because they are attracted to the
leader's vision and values (Howell, 1988). Ethical leaders have been described as ethical

role models (Avolio et al., 1999; Kanungo & Mendonca, 1996) who influence followers by conveying ethical values and by tying goals to followers' values (Bass & Steidlmeier, 1999; Kanungo & Mendonca, 1996; Lord & Brown, 2001; Shamir et al, 1993). Because

16

the values conveyed resonate with their own, followers perceive that they share the leader's values (Burns, 1978). Thus, ethical leadership should be associated with perceived values congruence between the leader and individuals within in the work group, and between the leaders and the organization. This leads to hypotheses 2a and 2b: Hypothesis 2a: Ethical leadership is positively related to subordinates' perceived values congruence with their leaders. Hypothesis 2b: Ethical leadership is positively related to subordinates' perceived values congruence with the organization. The ethical values modeled by ethical leaders and shared by work group members are the standards to guide employees in normatively appropriate conduct and refrain from normatively inappropriate conduct. Research from the literature on values (Rokeach, 1973; Schwartz, 1996) and organizational deviance (Robinson & Bennett, 1997) suggests that ethical values serve as important deterrents of deviant behavior. Ethical values emphasize altruism (Kanungo & Mendonca, 1996) and serve as powerful constraints for followers, thus inhibiting work group members from engaging in behaviors that are harmful to others (Robinson & Bennett, 1997). In addition, because ethical leaders influence values at the level of the work group, ethical values internalized among group members function as informal sanctions that further regulate the level of deviance in the group (Hollinger & Clark, 1983; Robinson & Bennett, 1997; Robinson & O'Leary-Kelly, 1998). Therefore, this study proposed that perceived value congruence between work group members and their leader will mediate the relationship between ethical leadership and deviance at the individual level within the work group, and at the organizational level. This leads to hypotheses 3a and 3b:

17

Hypothesis 3a: The relationship between ethical leadership and deviant behavior at the individual level is mediated by subordinates' perceived values congruence with their leaders. Hypothesis 3b: The relationship between ethical leadership and deviant behavior at the organizational level is mediated by subordinates' perceived values congruence with the organization. The following conceptual model (Figure 1) illustrates the six hypotheses linking perceived ethical leadership, perceived values congruence, and work place deviance at the individual and organizational levels. Figure 1: Conceptual Model of Hypotheses

Hla H3a

Ethical Leadership

H2a

Interpersonal Deviance Organizational Jeviance

_ Values Congruence
H3b Hlb

H2b

18

CHAPTER III METHODOLOGY

This section discussed the setting, subject, measures, processes, and analysis for conducting this research study. This study makes no assumptions that there are good leaders or ethical leaders. This research study focused on perceptions of ethical leadership at the individual level. As previously discussed, a study conducted by Brown, Trevino, and Harrison (2005) observed that the empirical study of leadership often overlooked the ethical dimension of leadership, and the research that had been conducted is limited by specification of and agreement on a constitutive definition of ethical leadership. They addressed this shortcoming by developing a more specific, research-based definition of ethical leadership. Setting & Subjects The setting of this research study was Barnes-Jewish Hospital (BJH), which is a major hospital located in the City of St. Louis, Missouri. The focus of the study was on supervisory leaders and the individuals they manage. Like many other organizations, this health care organization has supervisors at all levels. Demographic information pertaining to supervisory managers came from a list obtained from the Human Resource Department. This demographic information included the level of management, title / position, and the number of years of service of each participant. Study subjects were sampled across the supervisory level of the hospital to capture a broader picture of perceived ethical leadership that might be more generalizable

19

to managers in other organizations to include health care organizations. This study proposed to survey two broad categories of employees, those whose direct supervisor is a manager in the hospital administration, and those whose supervisor is a nurse manager. Subjects were randomly selected using Microsoft Excel's statistical analysis software. The following list (Table 1) illustrates the hospital departments selected to participate in the research study: Table 1: Source: BJH September 2007 List Barnes-Jewish Hospital Departments Facilities Engineering Peri-operative Services Radiology Diagnostics Housekeeping Laboratories Food & Nutrition OR Administration Surgical Services Respiratory Care/Rehab Med/Critical Care Patient Placement & Access Pharmacy OB/Psych Clinics/ED CA Center/Med & Gen Oncology Education/Professional Practice

This study excluded patients and other hospital staff to include students, trainees, and volunteers. Children under the age of 18 did not participate in the study.

20

Measures All measures used in this study have demonstrated reliability and validity in prior research studies. The details of each measure and the items will be reported in the following sections. Ethical Leadership Perceptions of ethical leadership were measured using a 10-item Ethical Leadership Scale (ELS) developed by Brown et al., (2005) (see Appendices B and C). The ELS provides a 5-point Likert scale with 1 indicating "strongly disagree," to 5 indicating "strongly agree." Based on prior research studies, the ELS instrument demonstrated excellent internal consistency, yielding a coefficient alpha of .92. Value Congruence Value congruence was measured using a four-item Likert scale measure of perceived values (Becker, Billings, Eveleth, and Gilbert, 1996). This scale measured perceived value congruence at the individual level (see Appendices D and E) and the organizational level (see Appendices F and G). The response format for this scale is 1 indicating "strongly disagree," to 7 indicating "strongly agree." Based on prior research studies, the Cronbach's alpha for this instrument is .85. Level of Management and Number of Direct Reports This study proposed to study perceptions of ethical leadership at the supervisory level of the organization. This study controlled for the level of management using a listing of managers and direct reports provided by the Human Resources department. This study controlled the number of direct reports each manager is responsible for

21

because deviant behavior may be easier in larger work groups, in which supervision is more difficult. Workplace Deviance This study proposed to utilize Bennett and Robinson's (2000) two-dimensional measure of workplace deviance that includes interpersonal (see Appendices H and I) and organizational deviance (see Appendices J and K). Interpersonal deviance is a self-report measure of 7-items. Organizational deviance is a 12-item self-report measure. Because deviance is a low-base-rate phenomenon, respondents were instructed to report how often they have observed members of their work group engage in a variety of deviant behaviors in the past year. Both scales are anchored on a 7-point response format ranging from 1, "never," to 7, "daily." The scale scored was summed for analysis with higher numbers indicating more workplace deviance. The estimated reliability from prior research studies indicated .87 for the interpersonal deviance measure and .89 for the organizational deviance measure. When aggregated, this measure represents the shared perceptions of the extent to which such behaviors occur at the individual and organizational level. The interpersonal and organizational workplace deviance measures have demonstrated reliability and validity in prior research studies. Process As previously stated, this study utilized a listing of managers and their direct reports obtained from the hospital's Human Resource Department. Survey participants were randomly selected from this list using Excel's statistical data analysis software.

22

The demographic information pertaining to managers at the supervisory level and their direct reports was obtained through a list prepared by the hospital's Human Resource Department. Survey packets were distributed via the employees' internal mailboxes. Each survey packet contained different surveys based on the following criteria: (a) employee antecedent surveys, which contain measures for perceptions of ethical leadership, to be completed by a randomly selected set of the manager's direct reports; nursing participants reported the floor they work on; and (b) employee outcome surveys, which contain measures of workplace deviance and values congruence to be completed by a different randomly selected set of the manager's direct reports; nursing participants reported the floor they work on. Surveys did not identify participants by name or department, and participants were instructed not to include their name or department information. This researcher randomly selected those participants who received the antecedent survey packets, and those who received the outcome survey packets. Surveys were coded for distribution and reporting purposes only; again, participants were not identified by name or department. To reduce the likelihood of biased responding (Dilman, 1978); each survey was placed in a separate envelope with a cover letter (Appendix A) explaining the purpose of the study encouraging their participation and ensuring complete anonymity and confidentiality. The cover letter also assured respondents that management in this organization would only see the aggregated results of the survey. Participants were given an opportunity to complete the surveys within a one-week time frame. Survey packets were distributed via the employees' internal mailboxes with the assistance of the Hospital's research staff. Participants were instructed to place

23

completed surveys into the envelope, seal the envelope, and then place the envelope in the lock boxes. Surveys were collected using lock boxes provided by the hospital. The lock boxes were located in the nurse staff areas and administrative departments participating in this research study. This researcher, along with a research staff member from the hospital, retrieved the lock boxes at the end of the one-week period. This researcher controlled the collected survey responses to ensure confidentiality of the participants and responses. The principal investigator for this research study completed the Webster University's Institutional Review Board (IRB) application process, the Washington University's Institutional Review Board (IRB) application process, and the Washington University's online training course (CITI) course for the Study of Human Subjects. Approval to conduct the research study at the hospital was provided by the BJH Research Council, Webster University IRB and Washington University IRB (Appendix L). Other approvals were provided by BJH Executive Leadership (Appendix L). There were no additional training requirements for this researcher or for the hospital's research staff member who assisted with survey packet distribution and collection. Incentives were provided to assure an appropriate level of response rates for this research study. A sweepstakes drawing was held for study participants who returned completed surveys. The winners of the drawing were randomly selected. The sweepstakes provided a chance to win a first, second, and third place prize consisting of gift certificates valued at $50, $30, and $10 respectively. In addition, there were BJH cafeteria vouchers worth $4 each for fourth through tenth place winners. Participants

24

were required to return completed surveys in order to be eligible for the sweepstakes drawing. Response Rates The anticipated response rate for this study was 40%. This response rate is consistent with other internal surveys conducted by the hospital. Response rates were ( tabulated for both antecedent surveys and outcome surveys. Data indicated the number of direct reports for each manager and the number of surveys distributed for these groups. Sample Characteristics This study utilized the techniques of statistical power analysis, sample size estimation, and confidence interval estimation. The primary goal of the first two techniques is to allow the researcher to decide, while in the process of designing an experiment, how large a sample size is needed to enable statistical judgments that are accurate and reliable. The statistical test to detect effects of a given size in a particular situation is not part of the focus of this study. The intent of using statistical power analysis is to determine the association of the simultaneous investigation of the effect of two or more independent variables on the dependent variable. Sample characteristics were tabulated for both antecedent surveys and outcome surveys. Sample size was determined using RAOSoft's sample size calculator (http://www.raosoft.com/samplesize.html'). Using a margin of error of 5%, confidence level of 95%, population size of 8,213 (rounded down), and a response distribution of 50%, the calculated sample size for this study is n = 368. The hospital's population size was based on the September 2007 Actual YTD FTE report prepared by the Hospital's Finance department.

25

Analysis This study conceptualized perceptions of ethical leadership, value congruence, and workplace deviance at the individual level. To determine empirically the appropriateness of aggregating data, this study calculated intra-class correlation coefficients (ICCs; Shrout & Fleiss, 1979). Analysis was completed at the individual level within the organization. In addition, the analysis provided a group comparison of responses between nursing staff and administration staff employees. Using Microsoft Excel's statistical regression analysis software, the first hypotheses were tested to predict interpersonal and organizational deviance separately. The dependent variables on ethical leadership, controls for number of direct reports, and level of management were regressed. The analysis followed the procedures recommended by Baron and Kenny (1986) to test for mediation. The first step (see Hypotheses la and lb), regressed the dependent variables (interpersonal and organizational deviance) on the independent variable (value congruence) on ethical leadership. Finally, the analysis regressed both dependent variables (interpersonal and organizational deviance) on the independent variable (ethical leadership) and mediating variable (value congruence) together (refer to Figure 1: Conceptual Model of Hypotheses).

26

CHAPTER IV RESULTS
This section discusses analyses and results of the research study. This section discusses the following: revisions to the proposal based on data collection issues, descriptive statistics and confirmatory factor analyses at the individual level, correlations at the individual level of analyses, department level analyses, multilevel analyses using OLS regression, and multilevel analyses using restricted maximum likelihood regression in HLM 6. Revisions to Proposal Based on Data Collection Issues In the data collection for this study, respondents rated either 1) their supervisor's ethical leadership characteristics, or 2) their perceived value congruence and the deviance behaviors of themselves and coworkers. Because of this design, no respondent rated both the supervisors' and the employees' characteristics. However, to satisfy the hospital's Institutional Review Board's concerns about privacy, no data were collected that could link a specific supervisor's characteristics to his or her employees' characteristics. Therefore, the relationships between a specific supervisor's ethical leadership and his or her employees' value congruence (with the supervisor or the organization) or the employees' deviance (interpersonal or organizational) could not be analyzed. The data did identify the department in which the respondents worked, but usually there were multiple supervisors in some departments. Thus, data could be aggregated to the department level, so some multilevel analyses were possible. In addition, since data on value congruence (with supervisor and organization) and interpersonal acts of deviance by the employee were collected from the same respondent, these three relationships could be analyzed at the individual level. Finally, the respondent's
27

perceptions of acts of organizational deviance by coworkers could not be linked to specific supervisors, so the only possible analyses was between departmental levels of ethical leadership and departmental levels of organizational deviance. Because of the way data was collected, descriptive statistics will be reported at both the individual level and departmental level. Correlations and other statistical analyses were conducted at individual, department, and multiple levels of analysis. Basic Data Analysis The descriptive statistics for each of the scales used in this study are reported in Table 2. The table indicates that 139 respondents rated ethical leadership behaviors and 124 respondents rated value congruence and deviance. The "valid N" of 0 refers to the fact that no respondents rated all of the variables. The distributions of the individual ratings for the variables are shown in the following figures. The histograms (Figures 2 through 6) show that the distributions of the individual ratings are not symmetric or normally distributed. The ethical leadership ratings are negatively skewed and the deviance ratings are positively skewed. The value congruence ratings were more evenly distributed, but still not normally distributed. Table 2: Basic Descriptive Statistics for Scales at the Individual Level of Analysis Descriptive Statistics
N Ethical Leadership Value Congruence
with Supervisor

139 124 124 124 124 0

Minimum 1.00 1.00 1.00 1.00 1.00

Maximum 5.00 7.00 7.00 3.71 5.33

Mean 3.4576 4.3286 4.4415 1.6025 2.1694

Std. Deviation 1.13757 1.80147 1.57667 .60019 1.12814

Value Congruence with Organization Interpersonal Deviance Individual Organization Deviance by Coworkers Valid N (listwise)

28

Table 3: Skewness and Kurtosis Statistics for Scales at the Individual Level of Analysis
Statistics

N Skewness Std. Error of Skewness Kurtosis Std. Error of Kurtosis

Valid Missing

Ethical Leadership 139 124 -.461 .206 -.797 .408

Value Congruence with Supervisor 124 139 -.471 .217 -.784 .431

Value Congruence with Organization 124 139 -.334 .217 -.385 .431

Interpersonal Deviance Individual 124 139 1.189 .217 1.077 .431

Organization Deviance by Coworkers 124 139 1.000 .217 -.021 .431

Figure 2: Distribution of Ethical Leadership Ratings at the Individual Level of Analysis

Ethical Leadership

Mean =3.46 Std. Dev. =1.133 N=139 1.0D 2.00 3.00

Ethical Leadership

29

Figure 3: Distribution of Value Congruence with Supervisor Ratings at the Individual Level of Analysis
Value Congruence with Supervisor

Mean =4.33 Std. Dev. =1.801 N=124

Value Congruence with Supervisor

30

Figure 4: Distribution of Value Congruence with Organization Ratings at the Individual Level of Analysis

Value Congruence with Organization

20

15-

BP10 01

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5.00

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2.00

3.00

4.00

it
7.00

Mean =4.44 Std. Dew. =1.577 N=124

Value Congruence with Organization

31

Figure 5: Distribution of Interpersonal Deviance by Self at the Individual Level of Analysis

Interpersonal Deviance Individual

Mean =1.60 Std. Dew. =0.60 N=124 2.00 3.00 4.00 S.OO 6.00

Interpersonal Deviance Individual

32

Figure 6: Distribution of Organizational Deviance by Coworkers at the Individual Level of Analysis

Organization Deviance by Coworkers

Mean =2.1? Std.Dev.=1.128 N=124 1.00 2.00 3.00 4.00 S.0D

Organization Deviance by Coworkers

Although the skewness and kurtosis statistics (Table 4) were not ideal, nor were they large enough that non-normality should be a problem. However, given that ethical leadership and value congruence were negatively skewed and the deviance scales were positively skewed, these opposite skews could create problems. Transforming the interpersonal deviance by self scale using negative reciprocal square root, log 10, and square root transformations somewhat improved skewness and kurtosis from the prior values of 1.189 and 1.077 respectively. The best transformation was the negative reciprocal square root transformation with skewness = .267 and kurtosis = -.970. A histogram showing the distribution of the interpersonal deviance by self variable transformed using the negative reciprocal square root is shown below (Figure 7):

33

Table 4: Skewness and Kurtosis Statistics for Transformations of Interpersonal Deviance by Self at the Individual Level of Analysis
Statistics Transform Transform interpersonal interpersonal Transform Transform deviance by deviance with interpersonal interpersonal reciprocal negative deviance with deviance with square root reciprocal sqrt log 10 sqrt 124 124 124 124 139 139 139 139 .267 .842 -.267 .535 .217 .217 .217 .217 -.970 -.970 -.586 .063 .431 .431 .431 .431

N Skewness Std. Error of Skewness Kurtosis Std. Error of Kurtosis

Valid Missing

Figure 7: Distribution for Transformation of Interpersonal Deviance by Self using negative reciprocal square root at the Individual Level of Analysis

Transform interpersonal deviance with negative reciprocal sqrt

30-4

&

2KH

E 3

m
10H

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-1.00

-0.90

-0.80

-0.70

-0.60

-0.50

Mean =-0.83 Std.Dev.=0.135 N=124

Transform interpersonal deviance with negative reciprocal sqrt

34

Internal Consistency Reliabilities The reliabilities of the scales were evaluated using measures of internal consistency. The coefficient alphas were: ethical leadership = .970, value congruence with supervisor = .918, value congruence with the organization = .922, interpersonal deviance acts by self = .686, and organizational deviance acts by coworkers = .908. These reliabilities were generally satisfactory, with the exception of the interpersonal deviance acts by self. If the question "publicly embarrassed someone at work" was omitted from the scale, then the coefficient alpha increased to .695. This is still low for a purported established scale, but close to the .70 threshold often used in research. This revised variable was used along with the original variable in correlations to see if the improved reliability changed the correlations. Although the coefficient alpha for organizational deviance actions by coworkers was quite high, the coefficient could be increased by eliminating the questions on "falsifying receipts to get reimbursed more money than you spent on business expenses" and "using an illegal drug or consuming alcohol on the job." After eliminating these two items, coefficient alpha increased to .923. This revised variable was used along with the original variable in correlations to see if the improved reliability changed the correlations. Confirmatory Factor Analyses Confirmatory factor analyses were also conducted to determine whether the variables were measured accurately. There were ten items in the ethical leadership scale. All ten items loaded highly on the latent factor (unstandardized loadings ranged from .72 to .93). The chi-square statistic was statistically significant (chi-square =112 (35 d.f.), p = .000), but with 139 observations with data on ethical leadership this is not surprising.

35

The other fit statistics were generally satisfactory: CFI = .954, TLI = .941, RMSEA = .13 (90% CI = .10 to .15). Ideally, the upper end of the RMSEA 90% confidence interval would have been less than .10, but the other fit statistics indicate that a single latent construct model had a satisfactory fit with the data. The four items in the value congruence with the supervisor scale also showed a very good fit with the single latent construct model. All items loaded highly on the latent factor (unstandardized loadings ranged from .77 to .92). The chi-square statistic was not statistically significant (chi-square = 1.5 (2 d.f), p = .465). The other fit statistics were ' very high: CFI = 1.0, TLI = 1.0, RMSEA = .00 (90% CI = .00 to .17). Ideally, the upper end of the RMSEA 90% confidence interval would have been less than .10, the point estimate of .00 was very good. Thus, the fit statistics indicate that a single latent construct model had a satisfactory fit with the data. The four items in the value congruence with the organization scale showed a satisfactory fit with the single latent construct model. All items loaded highly on the latent factor (unstandardized loadings ranged from .72 to .92). The chi-square statistic was statistically significant (chi-square = 17.5 (2 d.f), p = .000). Two of he other fit statistics were relatively high: CFI = .964, TLI = .893, but the RMSEA statistic was relatively poor RMSEA = .25 (90% CI = .15 to .37). The RMSEA point estimate of .25 was very high, which indicates the residuals were relatively large. On the other hand, the other fit statistics indicated that a single latent construct model had a satisfactory fit. Given the conflicting results, the data do not clearly support or contradict the proposed single-factor measurement model for value congruence with the organization. Therefore, the scale was not modified for the statistical analyses.

36

Based on the prior reliability analyses, there was reason to believe the original seven items comprising the interpersonal deviance by the individual scale would not fit the single-factor confirmatory factor analysis. Accordingly, multiple models were specified and evaluated by eliminating items that did not fit the model very well. The table (Table 5) below compares the different models created by eliminating items. Model 1 includes all seven items, Model 2 eliminated the seventh item, and Model 3 eliminated both the seventh and the fifth items. Model 3 was the only model with a statistically insignificant chi-square (p = .08) at the .05 level of significance. This means that the differences in the data from the model could be due to chance, which suggests that eliminating questions 5 and 7 would improve the fit of the scale. In terms of RMSEA, none of the models have a very good fit to the data because the upper limit for the 90% confidence interval for RMSEA is greater than the threshold of RMSEA < .10 in all of the models' confidence intervals. In fact, the point estimates for RMSEA was at or only slightly below .10, which suggests a relatively poor fit in terms of residuals. The CFI statistics are somewhat better, with the original model (Model 1) having the poorest fit (.88) and the model with Questions 5 and 7 omitted had the best fit, with a reasonably high CFI of .96. Removing the item entirely from the analysis in this way precludes using changes in chi-square statistics to assess model fit because the models were not nested hierarchically. However, the AIC and ECVI statistics can be used for nonhierarchical model comparisons. In this data, the least complex model (Model 3) had the best AIC and ECVI statistics (the lower the statistic, the better the model fits the data).

37

Table 5: Confirmatory Factor Analyses for Interpersonal Deviance by Respondent Chi-square (d.f.) (significance) CFI TLI RMSEA (90% Conf. Interval) AIC (ECVI) Sample size Model 1 29.9 (14) (p = .008) .88 .82 .096 (.05 - .14) 57.86(0.47) 123 Model 2 20.3 (9) (p = .016) .91 .85 .101 (.04 - .16) 56.26 (0.46) 123 Model 3 9.8 (5) (p = .080) .96 .91 .089 (.00-.17) 29.84 (0.24) 123

After considering all of these factors, Model 3 (with Questions 5 and 7 omitted from the scale) appears to fit the data better than the original scale model (Model 1). However, because the specification searches were based on empirical analyses, not for theoretical reasons, the danger of capitalizing on chance increases, especially with only 123 respondents in the sample. Thus, although the data in this sample suggest that Questions 5 and 7 should be eliminated, the original scale has been validated with larger samples. Caution suggests that the original items in the scale should be used to avoid the risk of inappropriately eliminating questions from the original scale. On the other hand, given these problems with the scale's characteristics in this study, there may be important measurement errors that might possibly reduce the effect sizes of the relationships between interpersonal deviance and value congruence and ethical leadership behaviors. With respect to the organizational deviance by coworkers scale, once again the prior reliability analyses indicated that not all of the items in the scale functioned as desired. Specifically, for several items the internal consistency reliability statistic increased if the items were omitted from the scale. A confirmatory factor analysis was conducted to see which items loaded on the organizational deviance by coworkers scale. Several alternative models were tested to see which fit the data best. The table (Table 6)
38

below compares the different nonhierarchical models created by eliminating items.

Model 1 includes all twelve items, Model 2 eliminated the tenth item, and Model 3 eliminated the third and tenth items, and Model 4 eliminated the first, third, and tenth items. The chi-square statistics were statistically significant in all four models. Thus, no model was satisfactory using this statistic. In terms of the RMSEA statistic, none of the models had a satisfactory fit with the data (i.e., all RMSEA parameter estimates were greater than .10, as were all the upper limits for the 90% confidence intervals). Notwithstanding the generally poor fit, the model with all of the original scale questions included (Model 1) had the best fit using the RMSEA statistic. Similarly, the CFI statistics are marginal for all of the models, with only slight improvements in fit as more parsimonious models were fit. Because the models were not hierarchically nested because the items were entirely removed from the model, differences in chi-square should not be used as a test statistic. However, the least complex model (Model 4) has the best AIC and ECVI statistics (i.e., the lowest values).

Table 6: Confirmatory Factor Analyses for Organizational Deviance by Coworkers Chi-square (d.f.) (significance) CFI TLI RMSEA (90% Conf. Interval) AIC (ECVI) Sample size Model 1 137.0 (54) (p = .000) .89 .87 .112 (.09-.14) 185.02(1.52) 123 Model 2 124.0 (44) (p = .000) .90 .87 .122 (.10-.15) 189.95(1.56) 123 Model 3 107.0 (35) (p = .000) .91 .88 .130 (.10-.16) 147.00(1.20) 123 Model 4 91.1 (27) (p = .000) .91 .88 .139 (.11-.17) 127.06(1.04) 123

39

After considering all of these factors, Model 4 (with Questions 1,3, and 10 omitted from the scale) appears to be slightly better fitting than the original scale model (Model 1). However, because the specification searches were based on empirical analyses, not for theoretical reasons, the danger of capitalizing on chance increases (especially with the small sample size of 123 respondents). Thus, in the absence of more conclusive evidence that the original scale was wrong, all 12 questions were retained in the analyses. Notwithstanding the decision to retain the original variables in the scale, the data suggest the organizational deviance by coworker scale may have important measurement errors. Although eliminating the item entirely is often used to test the best fitting model for a scale, an alternative way of evaluating the best model is to nest the models, or create a hierarchical set of models by adding or dropping paths to variables in the original scale. However, unlike the analysis above where the entire variable was dropped, in the case of hierarchical models only the path from the latent variable to the manifest variable is set to zero. Hierarchical analyses are desirable because the changes from one model to the next can be evaluated using the difference in the chi-square statistics. The model specification analyses using model building found that adding Question 1 resulted in a statistically significant decrease in chi-square (AX = 38.6, p = .00). Therefore, Question 1 should be retained in the scale. Adding Question 3 to the scale with Question 1 already added also resulted in a statistically significant decrease in chi-square (AY2 = 4.5, p = .033), although the decrease was much smaller than adding Question 1. Finally, adding Question 10 to the scale with all the other variables did not result in a statistically significant decrease in chi-square (AY2 = 1.08, p = .30), which

40

indicates that Question 10 could be dropped from the scale. In summary, a specification search for the best fitting model using confirmatory factor analysis suggests that Question 10 does not fit the proposed scale very well, but eliminating any other question from the scale was not justified. However, given the small sample size, it seemed advisable to retain all of the original items in the scale to avoid capitalizing on chance even though Question 10 did not seem to contribute to the scale's reliability or validity. Data Analyses The data was analyzed using three different types of analysis: Individual-level data analyses, grouped- or aggregated-level data analyses, and multilevel data analyses. Each type of analysis is described separately below. Analyses at the Individual Level It was not possible to analyze the relationships between ethical leadership and individuals' perceptions of value congruence and deviance behaviors at the individuallevel because the respondent's ratings of their supervisor's ethical leadership behaviors cannot be matched subordinates' ratings of perceived value congruence or deviance. However, the respondents' ratings for value congruence and deviance can be analyzed at the individual level because the same respondents rated all of these variables. These individual-level correlations shown below (Table 7) indicate there was virtually no correlation between both type of value congruence and the untransformed interpersonal deviance by the respondent variable. There were larger correlations between the transformed interpersonal deviance variables and both value congruence variables, but still not large enough to be statistically significant.

41

Table 7: Correlations between Value Congruence and Interpersonal Deviance Scales at the Individual Level of Analysis
Correlations Transform Value Value interpersonal Transform Transform Congruence Congruence Interpersonal deviance with interpersonal interpersonal Deviance with with negative deviance with deviance with Individual reciprocal sqrt Supervisor Organization Iog10 sqrt Value Congruence witr Pearson Correlatio .684" .048 .034 1 .007 .021 Supervisor Sig. (2-tailed) .000 .599 .705 .940 .820 N 124 124 124 124 124 124 Value Congruence witr Pearson Correlatio .684*' 1 -.040 -.008 -.019 -.030 Organization Sig. (2-tailed) .000 .656 .926 .837 .745 N 124 124 124 124 124 124 Interpersonal Deviance Pearson Correlatio .007 -.040 1 .963" .983* .995" Individual sig. (2-tailed) .940 .656 .000 .000 .000 N 124 124 124 124 124 124 Transform interpersom Pearson Correlatio deviance with negative sig. (2-tailed) reciprocal sqrt N Transform interpersoni Pearson Correlatio deviance with logl 0 sig. (2-tailed) N Transform interpersons Pearson Correlatio deviance with sqrt sig. (2-tailed) N .048 .599 124 .034 .705 124 .021 .820 124 -.008 .926 124 -.019 .837 124 -.030 .745 124 .963" .000 124 .983" .000 124 .995*' .000 124 1 124 .996" .000 124 .984*J .000 124 .996* .000 124 1 124 .996* .000 124 .984" .000 124 .996*' .000 124 1 124

' Correlation is significant at the 0.01 level (2-tailed).

The correlations (Table 7) above did not include the organizational deviance by coworkers' variable because there is no reason people's perception of their level of value congruence with their supervisors or organization would affect their coworkers' organizational deviance behaviors. Consistent with this logic, the table below (Table 8) shows that there was only a very small correlation between the two types of value congruence and organizational deviance behaviors by coworkers (the correlation matrix was split to fit on the page). Neither type of value congruence was correlated with organizational deviance behaviors by coworkers. The variables with "revised" in front of them refer to variables that were modified based on the reliability analyses discussed above. The revised variables showed only slightly larger correlations with the two types of value congruence, but still not statistically significant.

42

Table 8: Correlations between Original and Revised Value Congruence and

Interpersonal and Organizational Deviance Scales at the Individual Level of Analysis

Correlations
Value Congruence with Supervisor Pearson Correlatioi 1 sjg. (2-tailed) N 124 Pearson Correlatioi sjg. (2-tailed) N Pearson Correlator sig. (2-tailed) N .684" .000 124 .007 .940 124 .014 .874 124 -.026 .774 124 -.029 .750 124 Value Congruence Interpersonal Deviance with Organization Individual .684* .007 .000 .940 124 124 1 124 -.040 .656 124 -.041 .652 124 -.043 .638 124 -.044 .628 124 -.040 .656 124 1 Revised Inter Deviance Individual .014 .874 124 Organization Revised Org Deviance by Deviance Coworkers Coworker -.026 -.029 .774 .750 124 124 -.041 -.043 -.044 .652 .638 .628 124 124 124 .488*' .997*' .487*' .000 .000 .000 124 1 124 .478*' .000 124 .477* .000 124 124 .999** .000 124 124 124 .478*' .000 124 1 124 .477** .000 124 .999*' .000 124 1

Value Congruence with Supervisor Value Congruence with Organization Interpersonal Deviance Individual

124 .997*' .000 124 .488*' .000 124 .487* .000 124

Pearson Correlatior sjg (2-tailed) N Organization Devianc Pearson Correlatior by Coworkers Sig. (2-tailed) N Revised Org Deviano Pearson Correlatior Coworker S ig. (2-tailed) N

Revised Inter Deviance Individual

** Correlation is significant at the 0.01 level (2-tailed).

Finally, using the revised scales for interpersonal deviance by self and organizational deviance by coworkers did not change anything. In neither case was the correlation statistically significant. Thus, the two correlation matrices (Tables 7 & 8) show that there was no evidence that value congruence with the organization or the supervisor influenced interpersonal or organizational deviance acts. Modifying the scales had no effect on the results either. Although the reliabilities of the scales were improved by modifying the original scales, the revised scales showed the same pattern of statistically insignificant relationship among the variables. Of course, this failure to find a statistically significant relationship between either type of value congruence and interpersonal and organizational deviance at the individual level of analysis effectively rules out finding that value

43

congruence functions as a mediator between ethical leadership and interpersonal and organizational deviance acts. Thus, the data did not support the individual-level hypotheses that could be tested with the data collected. There were other, relatively unimportant, but statistically significant relationships found in the data. First, there was a statistically significant correlation between an individual's perceived value congruence with the supervisor and perceived value congruence with the organization was found (r = .682, p = .000). This suggests a variety of different possible explanations, such as supervisors and employees are both influenced by the organization's values or that organizations influence supervisor's values, which in turn influence employees' values. No propositions or hypotheses were advanced about such relationships, however. Second, a statistically significant correlation was found between the two types of deviance (r = .479, p = .000). This is probably not surprising given that deviance in general is the overarching construct and the two types of deviance are simply more specific subconstructs of deviance. Because the targets of the deviance scales were different (i.e., interpersonal deviance by the respondent versus organizational deviance by coworkers), this cannot be tested, however. Analyses at the Department, or Group, Level The prior section described the descriptive statistics and correlations at the individual level of analysis. However, the ethical leadership data were collected in such a way that only departments could be identified, not individual supervisors. Although the data could not link specific supervisors' ethical leadership behaviors to their subordinates' ratings of value congruence and deviance, the ethical leadership data could be aggregated to the department level to derive an overall measure of ethical leadership

44

for each department. The mean department ratings can then be used as measures of ethical leadership within each department, and departments may vary on such mean ratings. In addition, even though individual subordinates could not be matched to their supervisors with this data, they could be matched to a department. Thus, the individuallevel data on value congruence and deviance behaviors could also be aggregated to the department level. Aggregating the data to the department level allowed for statistical analyses at this group-level of analysis. It must be kept in mind that because there were often multiple supervisors in a department, such aggregated data do not represent specific supervisor-subordinate relationships. Nor will any relationships found at the department/group level necessarily be found at the individual level (often called the ecological fallacy). Nevertheless, there are reasons to believe that ethical leadership, value congruence, and deviance can and should be analyzed as a departmental, aggregated, phenomenon. Average ethical leadership within a department might create a culture or climate that influences individuals in that department, both in terms of their value congruence and their deviance behaviors. Culture and climate and their influence on individuals and group are discussed in more detail in the Discussion section. Descriptive Statistics and ANOVA for the Department-Level Data This section describes the descriptive statistics and co-relational analyses conducted after aggregating the responses to the level of the relevant department. There were 15 departments represented in the survey (although one department only had one respondent complete the value congruence and deviance questionnaires). These

45

departments are, in turn, part of either an administrative or nursing group. The descriptive statistics in this section show both types of aggregation. The following tables (Table 9) show the mean scores by department on the variables after being aggregated to the department level. The ANOVA tables shows whether the differences among the means were statistically significant. The charts (Figure 8) show graphically the differences in the means, with the Y axis reflecting the scale for the variable (i.e., the axis was not truncated to reflect only the range of data points). Showing the full range of possible values highlights how much of the scale was actually used by respondents. The means, ANOVA results, mean plots, and dot plots for each department on ethical leadership are shown in the tables and figures below. While there was some variability in mean ethical leadership ratings across departments, the differences were not statistically significant (p = .371). Of course, when only two or three people completed the questionnaire in a department, the results were not very reliable and should be interpreted with caution (e.g., departments numbered 6 and 7)

46

Table 9: Variability in Means across Departments for Ethical Leadership

Descriptives
Ethical .eadership 95% Confidence Interval for Mean N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 18 12 3 6 8 3 2 10 14 15 12 5 8 9 14 139 Mean 3.5278 3.9250 3.0000 3.3667 3.1625 4.0000 2.6500 3.5900 3.8429 3.7733 3.6333 3.5400 3.0750 2.8111 2.9071 3.4576 Std. Deviation 1.14522 .96872 .60000 .80166 .99848 1.05830 .49497 1.19485 1.32416 1.03058 1.39371 .98133 1.62283 1.03494 .88706 1.13757 Std. Error .26993 .27964 .34641 .32728 .35302 .61101 .35000 .37784 .35390 .26609 .40233 .43886 .57376 .34498 .23708 .09649 Lower Bound 2.9583 3.3095 1.5095 2.5254 2.3277 1.3710 -1.7972 2.7353 3.0783 3.2026 2.7478 2.3215 1.7183 2.0156 2.3950 3.2668 Upper Bound 4.0973 4.5405 4.4905 4.2080 3.9973 6.6290 7.0972 4.4447 4.6074 4.3440 4.5189 4.7585 4.4317 3.6066 3.4193 3.6483 Minimum 1.00 2.00 2.40 2.20 1.70 2.80 2.30 1.10 1.40 1.00 1.30 2.50 1.00 1.60 1.00 1.00 Maximum 5.00 4.90 3.60 4.30 4.50 4.80 3.00 4.80 5.00 4.90 5.00 4.90 5.00 5.00 4.00 5.00

ANOVA Ethical Leadership

Sum of Squares 19.599 158.980 178.580 df 14 124 138 Mean Square 1.400 1.282 F 1.092 Sig. .371

Between Groups Within Groups Total

Figure 8: Variability in Means across Departments in Ethical Leadership

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47

The following dot plot (Figure 9) shows the responses that comprise each department's mean score on ethical leadership. Each dot reflects one respondent's rating on this variable. This plot is interpreted like a histogram, but gives somewhat more detail. Interestingly, most departments showed high levels of variability within the department. This indicates that the respondents do not perceive their supervisors similarly, although in departments with multiple supervisors the wide range of ratings may reflect differences among the supervisors.

Figure 9: Ratings within and across Departments for Ethical Leadership

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48

group type. Both groups had about the same range of ratings, but the patterns differed somewhat. The administrative group had a higher proportion of ratings at the high end of the ethical leadership rating scale. This may suggest more dissatisfaction with supervisors' actions in the nursing group.

Figure 10: Ratings within and across Groups for Ethical Leadership

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In the case of value congruence with the supervisor, the variability across the departments in terms of the mean ratings were statistically significant (p = .001). This suggests it may be useful to investigate the causes of such group differences. The means, ANOVA results (Table 10), and plot of the means across departments (Figure 11) are shown below.

49

Table 10: Variability across Departments in Value Congruence with Supervisor

Descriptives
Value Congruence with Supervisor 95% Confidence Interval for Mean N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 15 10 5 12 8 1 9 9 7 11 9 5 8 10 5 124 Mean 6.1167 4.7500 2.3500 4.2917 3.7188 4.5000 4.5833 4.7778 3.7857 4.6136 4.0000 5.3000 3.2813 3.5500 2.8500 4.3286 1.53093 1.72502 1.27825 1.88866 1.57619 1.10962 1.56660 2.13698 1.51658 1.80147 ANOVA Value Congruence with Supervisor Sum of Squares 109.144 290.026 399.171 df 14 109 123 Mean Square 7.796 2.661 F 2.930 Sig. .001 .51031 .57501 .48313 .56945 .52540 .49624 .55388 .67577 .67823 .16178 3.4066 3.4518 2.6035 3.3448 2.7884 3.9222 1.9715 2.0213 .9669 4.0084 5.7601 6.1037 4.9679 5.8825 5.2116 6.6778 4.5910 5.0787 4.7331 4.6489 Std. Deviation 1.46953 .96465 1.86748 1.73478 1.85375 Std. Error .37943 .30505 .83516 .50079 .65540 Lower Bound 5.3029 4.0599 .0312 3.1894 2.1690 Upper Bound 6.9305 5.4401 4.6688 5.3939 5.2685 Minimum 1.00 3.00 1.00 1.75 1.00 4.50 1.75 1.25 2.50 1.00 1.00 4.00 1.00 1.00 1.00 1.00 Maximum 7.00 6.00 4.75 7.00 5.75 4.50 6.25 7.00 6.00 7.00 5.75 6.50 5.50 6.50 4.50 7.00

Between Groups Within Groups Total

50

Figure 11: Variability in Means across Departments in Value Congruence with Supervisor

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51

Figure 12: Ratings within and across Departments for Value Congruence with Supervisor
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52

Figure 13: Ratings within and across Groups for Value Congruence with Supervisor

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In the case of value congruence with the organization, the variability across the departments in terms of the mean ratings were not quite statistically significant (p = .064). Nevertheless, the differences between some departments appeared to be quite large, as seen when they are plotted. This suggests there may be value in trying to analyze these differences at the departmental level. The means, ANOVA results (Table
11), and plot of the means (Figure 14) across departments are shown below.

53

Table 11: Variability across Departments in Value Congruence with Organization

Descriptives
Value Congruence with Organization 95% Confidence Interval for Mean N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 15 10 5 12 8 1 9 9 7 11 9 5 8 10 5 124 Mean 5.5333 4.8000 4.5500 4.0000 3.5625 4.5000 4.0000 5.3333 3.8214 4.8636 4.0278 5.3500 3.7188 3.9250 3.9500 4.4415 Std. Deviation 1.59202 1.14139 .62249 1.52628 1.57973 1.07529 1.86246 1.55265 1.02081 1.22120 1.05475 1.77501 2.06845 2.23886 1.57667 ANOVA Value Congruence with Organization Sum of Squares 55.035 250.728 305.764 df 14 109 123 Mean Square 3.931 2.300 F 1.709 Sig. .064 Std. Error .41106 .36094 .27839 .44060 .55852 .35843 .62082 .58685 .30778 .40707 .47170 .62756 .65410 1.00125 .14159 Lower Bound 4.6517 3.9835 3.7771 3.0302 2.2418 3.1735 3.9017 2.3855 4.1778 3.0891 4.0404 2.2348 2.4453 1.1701 4.1613 Upper Bound 6.4150 5.6165 5.3229 4.9698 4.8832 4.8265 6.7649 5.2574 5.5494 4.9665 6.6596 5.2027 5.4047 6.7299 4.7218 Minimum 2.00 3.00 4.00 2.00 1.00 4.50 1.75 1.00 1.75 3.75 2.50 4.00 1.00 1.00 1.50 1.00 Maximum 7.00 6.50 5.50 7.00 5.50 4.50 5.25 7.00 6.00 7.00 6.50 6.50 5.50 7.00 7.00 7.00

Between Groups Within Groups Total

54

Figure 14: Variability in Means across Departments in Value Congruence with Organization

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55

Figure 15: Ratings within and across Departments for Value Congruence with Organization
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56

Figure 16: Ratings within and across Groups for Value Congruence with Organization

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The mean ratings for interpersonal deviance by self (i.e., the respondent) were low for all departments and the differences were not statistically significant (p = .580). This suggests there is little utility in trying to predict differences at the departmental level. The means, ANOVA results (Table 12), and plot of the means (Figure 17) across departments are shown below.

57

Table 12: Variability in Means across Departments for Interpersonal Deviance by Self
Descriptives Interpersonal Deviance Individua 95% Confidence Interval for Mean Lower Bound Upper Bound 1.2420 1.8818 1.2754 2.1532 .7144 2.9998 2.3764 1.3379 1.0798 2.1702 1.2072 .8680 1.1958 1.2311 1.1238 .8676 .8878 1.4691 .9747 1.4958 1.7452 1.9257 1.7838 1.9637 2.1777 1.9895 1.4694 2.3024 2.3395 1.7092

N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 15 10 5 12 8 1 9 9 7 11 9 5 8 10 5 124

Mean 1.5619 1.7143 1.8571 1.8571 1.6250 1.1429 1.4762 1.3968 1.4898 1.5974 1.6508 1.4286 1.1786 1.8857 1.6571 1.6025

Std. Deviation .57769 .61353 .92029 .81725 .65214 .34993 .68801 .31791 .54518 .68553 .45175 .34784 .58243 .54958 .60019 ANOVA

Std. Error .14916 .19401 .41157 .23592 .23057 .11664 .22934 .12016 .16438 .22851 .20203 .12298 .18418 .24578 .05390

Minimum 1.00 1.14 1.14 1.00 1.00 1.14 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Maximum 3.00 3.14 3.43 3.71 2.71 1.14 2.00 3.14 2.00 2.57 2.71 2.14 2.00 2.86 2.43 3.71

Interpersonal Deviance Individual Sum of Squares Between Groups 4.508 Within Groups 39.801 Total 44.309

df 14 109 123

Mean Square .322 .365

F .882

Sig. .580

58

Figure 17: Variability in Means across Departments for Interpersonal Deviance by Self

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59

Figure 18: Ratings within and across Departments for Interpersonal Deviance by Self

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60

Figure 19: Ratings within and across Groups for Interpersonal Deviance by Self

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The following table (Table 13) and figure (Figure 20) shows the means and distributions of organizational deviance by coworkers' ratings. The differences in means across the department were not statistically significant (p = .839).

61

Table 13: Variability in Means across Departments for Organizational Deviance by Coworkers
Descriptives Organization Deviance by Coworkers 95% Confidence Interval for Mean Lower Bound Upper Bound 2.8839 1.6938 1.3698 2.9302 1.1687 3.8646 2.7436 1.3814 3.0641 .8943 1.1221 1.3493 .6375 1.4940 1.3663 .8665 .7215 1.7594 1.3107 1.9688 2.1372 2.7248 3.4102 3.2939 3.0041 3.1335 2.8826 3.8406 3.9226 2.3699

N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 15 10 5 12 8 1 9 9 7 11 9 5 8 10 5 124

Mean 2.2889 2.1500 2.5167 2.0625 1.9792 1.3333 1.6296 2.0370 2.0238 2.3939 2.1852 2.0000 1.8021 2.8000 2.6167 2.1694

Std. Deviation 1.07454 1.09064 1.08557 1.07198 1.29770 .66027 .89473 1.49901 1.33962 1.06538 .91287 1.29248 1.45466 1.05178 1.12814 ANOVA

Std. Error .27744 .34489 .48548 .30945 .45881 .22009 .29824 .56657 .40391 .35513 .40825 .45696 .46001 .47037 .10131

Minimum 1.08 1.17 1.08 1.00 1.00 1.33 1.08 1.25 1.00 1.00 1.00 1.17 1.00 1.08 1.58 1.00

Maximum 4.75 4.08 4.08 4.17 4.50 1.33 3.08 4.00 5.33 5.08 3.75 3.50 4.42 5.00 4.08 5.33

Organization Deviance by Coworkers Sum of Squares df Between Groups 14 11.631 Within Groups 144.910 109 Total 156.541 123

Mean Square .831 1.329

F .625

Sig. .839

62

Figure 20: Variability in Means across Departments for Organizational Deviance by Coworkers

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The following dot plot (Figure 21) shows the responses for each department on organizational deviance by coworkers. The ratings were somewhat higher than for interpersonal deviance by self, but still generally low.

63

Figure 21: Ratings within and across Departments for Organizational Deviance by Coworkers
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64

Figure 22: Ratings within and across Groups for Organizational Deviance by Coworkers

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Correlations among the Department-Level Data Once the data was aggregated to the group level (i.e., department level), correlations were analyzed for significant relationships among the variables at the departmental level of analysis. The table (Table 14) below shows the departmental-level correlations among the variables. The only statistically significant correlation is between the two types of value congruence (r = .690, p = .004). The data did show moderatesized correlations between ethical leadership and value congruence with supervisor (r = .495, p = .061) and between ethical leadership and value congruence with the

65

organization (r = .460, p = .085). However, neither correlation was statistically significant at the p < .05 level of significance because there were only 15 departments in the sample. Correlations must be relatively large before they are statistically significant when there are only 15 observations in the sample. There were also slightly smaller moderately-sized negative correlations between ethical leadership and interpersonal deviance by the individual (r = -.314, p = .255) and between ethical leadership and organizational deviance by coworkers (r = -.310, p = .260). However once again, these were not statistically significant because of the small sample size. In summary, the department-level correlations did not provide evidence that ethical leadership (at the department level) influence either value congruence or deviance behaviors (also aggregated to the department-level of analysis). Table 14: Pearson-Product Moment Correlations between Variables at the Department Level of Analysis
Correlations Value Congruence with Supervisor Dept Mean .495 .061 15 1 Value Congruence Interpersonal Organizational with Deviance by Deviance by Coworkers Organization Self Dept Dept Mean Dept Mean Mean .460 -.314 -.310 .255 .085 .260 15 15 15 .690*' -.273 -.319 .004 .324 .246 15 15 15 15 .690" 1 -.130 .046 .644 .004 .869 15 -.273 .324 15 -.319 .246 15 15 -.130 .644 15 .046 .869 15 15 1 15 .768*' .001 15 15 .768*' .001 15 1 15

Ethical Leadership Dept Mean Value Congruence with Supervisor Dept Mean Value Congruence with Organization Dept Mean

Ethical Leadership Dept Mean Pearson Correlatio 1 Sig. (2-tailed) N 15 Pearson Correlatio .495 sig. (2-tailed) .061 N 15 Pearson Correlatio .460 sig. (2-tailed) .085 N 15 -.314 .255 15 -.310 .260 15

Interpersonal Deviance 1 Pearson Correlatio Self Dept Mean sig. (2-tailed) N Organizational Deviance Pearson Correlatio by Coworkers Dept Mea sig. (2-tailed) N

Correlation is significant at the 0.01 level (2-tailed).

66

The research study proposed that value congruence would mediate the relationship between ethical leadership and deviance. However, failing to find a statistically significant relationship between either type of value congruence and the deviance types, or between ethical leadership and either type of deviance, rules out that proposition when the data were analyzed at the department level of analysis. Nor were there statistically significant relationships between the types of value congruence and deviance at the individual level of analysis, as discussed above. Thus, there is no empirical support for the proposition that value congruence mediates the relationship between ethical leadership and interpersonal deviance by the individual or organizational deviance by coworkers at either level of analysis. Multilevel Analyses The prior subsections of this section discussed analyses conducted at the individual-level or department-level. This subsection discusses multilevel analyses, or analyses where the department-level ethical leadership variable is used to predict respondents' perceptions of value congruence and deviance behaviors at the individual level of analysis. From a multilevel perspective, the individual data is conceptualized as being nested or grouped within the departmental context. Even though ratings of supervisors' ethical leadership behaviors cannot be linked to their own subordinates' value congruence and deviance ratings, the ethical leadership data were aggregated to the department level by creating a mean score for each department. This mean score represents an overall measure of ethical leadership for each department, not for individual supervisors within the department.

67

This department-level variable was then used to predict individual-level responses for each respondent's value congruence and deviance ratings because the department ethical leadership data could be linked to each subordinate. In this type of database, each respondent in a department is assigned the same ethical leadership score (the group-level variable), but individuals in different departments had different ethical leadership scores. The department- or group-level ethical leadership score was regressed on the respondent's value congruence and deviance ratings varied (the individual-level variable). In other words, all individuals in a department would have the same department-level ethical leadership rating correlated to their own individual-level value congruence and deviance ratings. Multilevel Analyses Using Pearson-Product Moment Correlations and OLS Regression First, this multilevel database was analyzed using the Pearson-Product Moment correlations and ordinary least squares regression (OLS). Although this is not ideal because the data violate the assumptions, as discussed below, this type of analysis is reasonable and often conducted. The correlation matrix (Table 15) below shows the relationship between department-level ethical leadership, and individual-level measures of value congruence with the supervisor, value congruence with the organization, interpersonal deviance by self, and organizational deviance by coworkers.

68

Table 15: Correlations between Variables using Department- and Individual-Level Data
Correlations
Value Value Congruence Congruence Interpersonal Revised Inter Organization Revised Org with with Deviance Deviance Deviance by Deviance Coworkers Coworker Supervisor Organization Individual Individual .240*' .216* -.037 -.040 -.014 -.021 .007 124 1 124 .684* .000 124 .007 .940 124 .014 .874 124 -.026 .774 124 -.029 .750 124 124 -.040 .656 124 -.041 .652 124 -.043 .638 124 -.044 .628 124 124 .997* .000 124 .488* .000 124 .487* .000 124 124 .478* .000 124 .477* .000 124 124 .999* .000 124 124 .016 124 .684* .000 124 1 .684 124 .007 .940 124 -.040 .656 124 1 .662 124 .014 .874 124 -.041 .652 124 .997* .000 124 1 .877 124 -.026 .774 124 -.043 .638 124 .488* .000 124 .478* .000 124 1 .815 124 -.029 .750 124 -.044 .628 124 .487*' .000 124 .477" .000 124 .999" .000 124 1

Ethical Leadership

Ethical Leadership Pearson Correlatio 1 Sig. (2-tailed) N 124 .240*' .007 124 .216* .016 124 -.037 .684 124 -.040 .662 124 -.014 .877 124 -.021 .815 124 (2-tailed) Pearson Correlatio Sig. (2-tailed> N Pearson Correlatio sig. (2-tailed) N

Value Congruence with Supervisor Value Congruence with Organization

Interpersonal Deviance Individual Revised Inter Deviance Individual

Pearson Correlatio Sjg (2-tailed) N Pearson Correlatio sig. (2-tailed) N

Organization Deviant Pearson Correlatio by Coworkers

Sig.

N Revised Org Devianc Pearson Correlatio Coworker s l g . (2-tailed) N

"Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed).

As seen in the table above (Table 15), statistically significant correlations were found between department-level ethical leadership and individual-level value congruence with the supervisor (r = .240, p = .007) and with value congruence with the organization (r = .216, p = .016). In terms of OLS regressions, the coefficients (and standard errors) were b = 1.112 (.407) for value congruence with the supervisor and b = .874 (.358) for value congruence with the organization. These results are evidence, that departmental differences in ethical leadership, impacts both types of value congruence. On the other hand, there were no statistically significant bivariate correlations between ethical leadership and interpersonal or organizational deviance (using either the original or revised variables) when analyzed in terms of Pearson-Product Moment correlations and OLS regression. However, because there was no statistically significant relationship between ethical leadership and deviance behaviors, value congruence could

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not be mediating this non-existent relationship. Thus, this type of multilevel analysis did not support the mediation hypothesis (3 a and 3b). Multilevel Analyses Using Restricted Maximum Likelihood Regressions Although the multi-level database described above with department-level ethical leadership effects and individual-level dependent variables can be analyzed using Pearson-Product Moment correlations and ordinary least squares regression, the assumptions underlying these methods of analysis are violated (Bickel, 2007). For example, individual observations are nested within departments (or groups). Therefore, the assumption of independent residuals (or error terms) is violated because any unmeasured factors that influence each department will be incorporated in the residuals for observations within that department. In other words, the residuals for individuals working in the same department are likely to be correlated, not independent. In addition, if omitted variables influencing the residuals are correlated with a predictor variable in the model, then the model is also misspecified, resulting in biased parameter estimates (see Raudenbush & Bryk, 2002, p. 253). Violating the assumption of independent residuals has the effect of artificially reducing the size of the standard errors of the parameter estimates, resulting in increased Type I error rates. This means the data will tend to reject the null hypothesis too often compared with testing using the correct standard errors. To address this concern, multilevel statistical techniques using different estimation methods must be used, which result in more accurate estimates of the true standard error. Interestingly, the parameter estimates are usually fairly similar irrespective of the statistical technique used, but the

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statistical significance of the parameter estimates will be different (see Bickel (2007) and Luke (2004) for discussions of these levels of analyses issues). To account for this nesting effect, the data were re-analyzed using a multilevel software program called HLM 6: Hierarchical Linear and Nonlinear Modeling (Raudenbush, Bryk, & Congdon, 2000). In this program, the hierarchical nature of the data was explicitly modeled, with ethical leadership at the group level being regressed on both types of value congruence and both types of deviance at the individual-level of analysis. This program generated more accurate estimates of the parameters and standard errors (which were larger than with OLS regression or Pearson-Product Moment correlations). Multilevel models are used to predict a dependent variable using predictors at more than one level of analysis. The classic example is research predicting a child's performance in school as a function of either his or her personal characteristics (e.g., intelligence) and classroom characteristics (e.g., teacher or class size) (see, Luke, 2004, p. 9). In this case, the first two multilevel analyses investigated whether department-level ethical leadership ratings predicted individual-level value congruence with supervisor and with the organization. There was no individual-level predictor in these models, only the department predictor. The multilevel model first investigated is similar to the Pearson-Product Moment correlation and OLS regression analyses used above to test the relationships between department-level ethical leadership and the two types of value congruence measured at the individual level. However, this multilevel model using restricted maximum

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likelihood analysis controls for the fact that the individuals are nested or grouped in departments. Level-1 Model: Individual Value Congruence with Supervisor = Bo + R Level-2 Model: Bo - Goo + Goi(Department Ethical Leadership Mean) + Uo In this multilevel model, the individual's value congruence with the supervisor is considered to be a function of the department's mean value congruence with supervisor rating (Bo or the intercept) and random error for each individual around that mean rating (R). This is the Level-1 Model. In addition, the mean rating for each department (Bo or the intercept) is modeled as to be a function (Goi) of the department's mean ethical leadership rating and random error (Uo) and the mean ethical leadership rating for all departments (Goo) in the Level-2 Model. Thus, individual value congruence ratings are a function of the department's ethical leadership and random effects. In these multilevel analyses, there were 123 individual-level ("Level-1 Model") observations and 14 department-level ("Level-2 Model") observations. The relationship between ethical leadership at the department level and individuals' value congruence with the supervisor ratings was not statistically significant (p = .084) at p < .05 level, as shown in the table (Table 16) below.

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Table 16: Multilevel Analysis Regressing Value Congruence with Supervisor on Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Value Congruence with Supervisor Standard Fixed Effect Coefficient Error For INTRCPT1, BO INTRCPT2, GOO 0.328194 PELSMEAN, G01 1.159371 Approx. d.f. P-value

T-ratio

2.078653 0.616650

0.158 1.880

12 12

0.878 0.084

The parameter estimate for ethical leadership (PELSMEAN) using restricted maximum likelihood estimation was 1.16, which is similar in magnitude to the OLS regression parameter estimate of 1.11. However, the standard errors were different in the two types of statistical analyses, which accounts for the difference in statistical significance. The standard error for the parameter estimate was .617 in the multilevel analysis versus .407 in the OLS regression analysis (which mathematically can be related to the Pearson-Product Moment correlation analysis shown above). Thus, even though the OLS regression (or Pearson-Product Moment correlation) showed there to be a statistically significant relationship between department-level ethical leadership and value congruence with the supervisor, the correct multilevel analysis did not find a statistically significant relationship. On the other hand, the p-value of .084 was close to statistical
significance at the p < .05 level. Thus, to say there was no relationship of interest seems

to be overstating the case. With a larger sample, the results might have been statistically significant.

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Nor was there a statistically significant relationship between ethical leadership at the department level and individuals' value congruence with the organization ratings at the p < .05 level, as shown in the table (Table 17) below. Once again, the parameter estimate for ethical leadership (PELSMEAN) was .855, which is similar in magnitude to the OLS regression estimate of .874. However, as predicted, the standard error for the parameter estimate was .438 in the multilevel analysis versus .358 in the OLS regression, which accounts for the difference in statistical significance. Thus, even though the OLS regression (or Pearson-Product Moment correlation) found a statistically significant relationship between department-level ethical leadership and value congruence with the organization, the multilevel statistical analysis using restricted maximum likelihood estimation did not find the relationship to be statistically significant. Table 17: Multilevel Analysis Regressing Value Congruence with Organization on Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Value Congruence with Organization Standard Fixed Effect Coefficient Error For INTRCPT1, BO INTRCPT2, GOO 1.542788 PELSMEAN, G01 0.855559 Approx. d.f. P-value

T-ratio

1.483081 0.438939

1.040 1.949

12 12

0.319 0.075

Once again, while technically the p-value did not reach statistical significance at the traditional p < .05 level, the actual p-value of .075 is quite close to the test value. Thus, there is some evidence that there could be a relationship between ethical leadership at the department level and value congruence at the individual level. As stated before, with a larger sample, the results might have been statistically significant.

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Multilevel analyses of the relationships between ethical leadership and interpersonal deviance by the respondent and organizational deviance by coworkers were also conducted. As was true with the OLS regression analyses, there was no statistically significant relationship between ethical leadership and the interpersonal deviance by the individual (p = .773) (Table 18). Table 18: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Interpersonal Deviance by Individual Standard Fixed Effect Coefficient Error For INTRCPT1, BO INTRCPT2, GOO 1.748241 PELSMEAN, G01 -0.042253 Approx. d.f. P-value

T-ratio

0.485033 3.604 0.143161 -0.295

12 12

0.004 0.773

The frequency of deviance behaviors were not measured using counts (e.g., 0,1, 2, etc), but the frequency scale ranged from "never" to "frequently." This frequency scale is somewhat similar to count data, especially because there were many "never" ratings which is the equivalent of a "zero" count. The frequency of deviance behaviors scales were very positively skewed, as discussed in the section on descriptive statistics, indicating few acts of deviance. In essence, the deviance data had a Poisson-type distribution even though technically the scale was not measure of counts of deviance behaviors. However, this highly skewed distribution of the dependent variable made regressions based on the assumption of a normal distribution somewhat questionable, but a log transformation of Y* = log(l+Y) would be inappropriate because of the number of essentially zero or never responses (see, Raudenbush, et al., 2004, p. 94). Thus, the data

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for deviance behaviors was also analyzed using the Poisson analysis feature of HLM 6 to see if the results differed from OLS and restricted maximum likelihood estimation results. However, once again, ethical leadership was not significantly related to interpersonal deviance (p = .890) using this Poisson analysis. As shown in the table (Table 19) below, the critical statistic, called the event ratio, was very close to 1, which indicates no relationship between ethical leadership at the department level and interpersonal deviance at the individual level. This is consistent with the other statistical analyses, which did not find statistically significant relationships between ethical leadership and interpersonal deviance by the respondent. Table 19: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Ethical Leadership (Dependent Variable treated as Poisson Distribution) Final estimation of fixed effects: Interpersonal Deviance by Individual (Unit-specific model) Standard Coefficient Error T-ratio Approx. d.f. P-value

Fixed Effect

For INTRCPT1, BO INTRCPT2, GOO 0.561905 PELSMEAN, G01 -0.026151

0.625354 0.184744

0.899 -0.142

12 12

0.387 0.890

Fixed Effect

Coefficient

Event Rate Confidence Ratio

Interval

For INTRCPTl, B0

INTRCPT2, GOO PELSMEAN, G01

0.561905 -0.026151

1.754010 0.974188

(0.450, 6.844) (0.652, 1.457)

In terms of the frequency of organizational deviance by coworker dependent variable, the multilevel model did not find a statistically significant relationship between

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ethical leadership and the organizational deviance by coworkers (p = .966), as shown in the table (Table 20) below. Table 20: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Organizational Deviance by Coworkers Standard Fixed Effect Coefficient Error T-ratio For INTRCPT1, BO INTRCPT2, GOO 2.215112 PELSMEAN, G01 -0.011579 Approx. d.f. P-value

0.902514. 2.454 0.266330 -0.043

12 12

0.031 0.966

As described above, the organizational deviance by coworkers scale had a Poisson-shaped distribution, so a restricted maximum likelihood estimation using the assumption of a Poisson distribution was also conducted. As with the other Poissonbased analysis, the event ratio associated with ethical leadership at the department level was .994, which is close to 1 or no effect, as reflected in the p-value of .974 (Table 21). Thus, the data showed no multilevel relationship between ethical leadership and organizational deviance by coworkers using this analysis either.

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Table 21: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Ethical Leadership (Dependent Variable treated as Poisson Distribution) Final estimation of fixed effects: Organizational Deviance by Coworkers (Unit-specific model) Standard Fixed Effect Coefficient Error T-ratio For INTRCPT1, BO INTRCPT2, GOO 0.795351 PELSMEAN, G01 -0.005286
.

Approx. d.f. P-value

0.538362 0.158903

1.477 -0.033

12 12

0.165 0.974

Fixed Effect Coefficient For INTRCPT1, BO INTRCPT2, GOO 0.795351 PELSMEAN, G01 -0.005286

Event Rate Confidence Ratio

Interval

2.215218 0.994728

(0.686, 7.152) (0.704, 1.406)

In addition, there were no statistically significant relationship at the individual level between the two types of value congruence and the two types of deviance (same as the OLS regression results). Accordingly, value congruence could not mediate the relationship between ethical leadership and either type of deviance behavior because there was no relationship among the variables. Cross-Level Interaction Analyses This research study did not advance any hypotheses regarding the joint effects of individual-level value congruence measures and department-level ethical leadership behaviors on individual-level interpersonal and organizational deviance behaviors. However, the data collected allowed such cross-level exploratory analyses. Specifically, multilevel analyses were conducted to investigate whether departmental differences in ethical leadership would interact with individual differences in value congruence with the

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supervisor or value congruence with the organization to effect both types of individual deviance behaviors. This mixed effect multilevel model allowed ethical leadership to influence both the intercepts and the slope coefficients for individual-level value congruence (see Luke, 2004). The multilevel model that was investigated with interpersonal and organizational deviance as the dependent variables is shown below: Level-1 Model: Y = Bo + Bi (Value Congruence with Supervisor) + R Level-2 Model: Bo = Goo + Goi(Ethical Leadership Mean) + Uo Bi = Gio + Gn(Ethical Leadership Mean) + Ui Given that there was no relationship between interpersonal and organizational deviance and the two types of value congruence or ethical leadership, such an interaction relationship is unlikely, but not impossible if there were suppressor effects. The following table (Table 22) shows the multilevel model tested with deviance as the dependent variables: Using interpersonal deviance by the individual as the dependent variable, the mixed effects model did not find that ethical leadership had a statistically significant effect on either the intercepts (p = .774) or the slope of value congruence with supervisor (p = .843).

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Table 22: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Value Congruence with Supervisor and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Interpersonal Deviance by Individual Standard Fixed Effect Coefficient Error For INTRCPT1, B0 INTRCPT2, GOO 1.607416 PELSMEAN, G01 -0.042062 For VALCONSU slope, -Bl INTRCPT2, G10 0.018234 PELSMEAN, Gil 0.019246 Approx. d.f. P-value

T-ratio

0.055353 0.143389

29.040 -0.293

12 12

0 .. 0 0 0 0 . ,774

0.035818 0.095078

0.509 0.202

12 12

0. . 6 1 9 0. . 8 4 3

With organizational deviance by coworkers as the dependent variable, ethical leadership did not have a statistically significant interaction effect on either the intercepts (p = .263) or the slope of value congruence with supervisor (p = .221) (Table 23). Table 23: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Value Congruence with Supervisor and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Organizational Deviance by Coworkers Standard Fixed Effect Coefficient Error For INTRCPT1, B0 INTRCPT2, GOO 5.523043 PELSMEAN, G01 -1.013158 For VALCONSU slope, Bl INTRCPT2, G10 -0.805762 PELSMEAN, Gil 0.240391 Approx. d.f. P-value

T-ratio

2.835864 0.862123

1.948 -1.175

12 12

0. , 0 7 5 0. , 2 6 3

0.619320 0.186077

-1.301 1.292

12 12

0.. 2 1 8 0.. 2 2 1

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Just as value congruence with the supervisor could be the individual-level predictor, value congruence with the organization could be a possible individual-level predictor. Therefore, multilevel analyses were conducted to investigate whether departmental differences in ethical leadership would interact with value congruence with the organization to influence the two types of deviance behaviors. The model is the same as above, except value congruence with the organization is substituted for value congruence with the supervisor in the Level-1 model: Level-1 Model: Y = Bo + Bi (Value Congruence with Organization) + R Level-2 Model: Bo = Goo + Go i (Ethical Leadership Mean) + Uo Bi = Gio + Gn(Ethical Leadership Mean) + Ui Using interpersonal deviance by the individual as the dependent variable, ethical leadership did not have a statistically significant interaction effect on either the intercepts (p = .866) or the slope of value congruence with supervisor (p = .900) (Table 24). Table 24: Multilevel Analysis Regressing Interpersonal Deviance by Individual on Value Congruence with Organization and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Standard Fixed Effect Coefficient Error For INTRCPT1, BO INTRCPT2, GOO 1.941310 PELSMEAN, G01 -0.087984 For VALCONOR slope, Bl INTRCPT2, G10 -0.056236 PELSMEAN, Gil 0.013911 Approx. d.f. P-value

T-ratio

1.685536 0.508267

1.152 -0.173

12 12

0. . 2 7 2 0. . 8 6 6

0.362631 0.108106

-0.155 0.129

12 12

0.. 8 8 0 0.. 9 0 0

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With organizational deviance by coworkers as the dependent variable, ethical leadership did not have a statistically significant interaction effect on either the intercepts (p = .510) or the slope of value congruence with the organization (p = .474) (Table 25). Table 25: Multilevel Analysis Regressing Organizational Deviance by Coworkers on Value Congruence with Organization and Ethical Leadership (Dependent Variable treated as Continuous Normal Distribution) Final estimation of fixed effects: Standard Fixed Effect Coefficient Error For INTRCPT1, BO INTRCPT2, GOO 4.528687 PELSMEAN, G01 -0.692465 For VALCONOR slope, Bl INTRCPT2, G10 -0.546062 PELSMEAN, Gil 0.160068 Approx. d.f. P-value

T-ratio

3.393050 1.020853

1.335 -0.678

12 12

0.207 0.510

0.727797 0.216797

-0.750 0.738

12 12

0.468 0.474

Although not shown in any output or tables, there were no statistically significant results using Poisson-distribution multilevel analyses.

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CHAPTER V DISCUSSION
This section discusses the research direction, limitations, and further research in the area of leadership and organizational culture. Recent ethical scandals in businesses raise important questions about the role of leadership in shaping ethical conduct. Most employees look outside themselves to significant others for ethical guidance. In the workplace, leaders should be a central source of such guidance. As suggested, little is known about whether and how such an ethical leadership style is related to followers' ethical performance. This research study addressed that question by focusing on perceptions of ethical leadership at the supervisory level and its relationship to value congruence and observed deviance at the individual level within the work place. A search of the literature linked perceived leadership effectiveness with leader honesty, integrity, and trustworthiness (Den Hartog, House, Hanges, Ruiz-Quintanilla, & Dorfman, 1999; Kouzes & Posner, 1993; Posner & Schmidt, 1992). Honesty and integrity are seen as important components of an ethical leader's idealized influence. Brown & Trevino (2002) found that ethical leadership involves a "moral manager" aspect that involves a number of visible behaviors that do not necessarily flow only from personal traits. Trevino et al., (2005) proposed a definition of ethical leadership as the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through twoway communication, reinforcement, and decision-making.

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Discussion of Research Direction As discussed in Chapter 4, no data were collected that could link specific supervisors' characteristics to his or her employees' characteristics. This was to satisfy the hospital's Institutional Review Board's concerns about individual / managerial privacy. Therefore, although relationships between perceptions of specific supervisor's ethical leadership and his or her employees' value congruence (with the supervisor or the organization) or the employees' deviance (interpersonal and organizational) were hypothesized, these could not be tested with the data collected. The data did identify the department in which the respondents worked; however usually there were multiple supervisors in each department. Because data could be linked to specific departments, by aggregating respondents' perceptions of their supervisor's ethical behaviors to the department level, multilevel analyses with the department as the grouping variable were possible. Specifically, the relationship between perceptions of departmental ethical leadership behaviors and individual's value congruence and deviance behaviors were analyzed. Data on value congruence (with supervisor and organization) and interpersonal acts of deviance by the employee were collected from the same respondent, so these relationships could be analyzed at the individual level. Summary of Hypotheses Analysis Individual-Level Hypotheses In this research study, individuals were thought to emulate ethical leaders because they are attracted to the leader's vision and values. Thus, ethical leadership was hypothesized to be associated with perceived value congruence between the leader and the individual within the work group, and between the leaders and the organization. 84

Value congruence between work group members and their leader was also hypothesized to mediate the relationship between ethical leadership and acts of interpersonal deviance by the individual respondent and between ethical leadership and acts of organizational deviance by coworkers. However, these hypotheses could not be tested because neither value congruence nor deviance acts could be linked with specific supervisors, as discussed above. However, the hypothesis that value congruence would be correlated with acts of interpersonal deviance and acts of organizational deviance by coworkers could be tested with this data. There was no evidence that value congruence influenced interpersonal or organizational deviance acts. Not only did this finding not support the hypotheses above, but it also effectively ruled out the hypothesis that perception of specific supervisor's ethical behaviors influence acts of deviance through the mediating effect of value congruence. Even though specific supervisors could not be linked to specific subordinates' perceptions of value congruence or deviance behaviors, logically this failure to find value congruence to deviance relationship precludes there being a mediator relationship. Thus, the data did not support any of the individual-level hypotheses that could be tested. Culture and Climate Literature Supporting Group-Level and Multilevel Analyses There were originally no hypotheses that ethical leadership at the department level would influences individual-level or group- or department-level attitudes or behaviors. Thus, the initial literature review did not discuss research supporting such analyses. Therefore, before discussing the results of the group-level and multilevel analyses, the literature supporting the analyses will be discussed briefly.

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Research has found that supervisory (ethical) leadership style is an important contextual influence thought to shape individuals' behaviors in work groups (Robinson & Greenberg, 1998; Stodgill, 1963). Avolio (1999) suggests that ethical leaders serve as role models, arouse a collective sense of mission (Conger, 1999), and get followers to transcend their self-interests for the good of the group (Bass, 1985; Burns, 1978). The culture and climate literature suggests that ethical leadership, value congruence, and deviance can and should be analyzed as a departmental, aggregated, phenomenon. Organizational culture is presumed to have far-reaching implications for organizations, making it an important topic to understand. Schein (1992) suggests that the culture is a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. This definition also presents three challenges: 1) the problem of socialization, 2) the problem of 'behavior,' and 3) can a large organization have one culture? (p. 13). Culture is believed to be important because it is theorized to shape the important values and beliefs of members of the organization (Schein, 1992). Although culture is often conceptualized as an organizational-level construct, there is no reason it can not function at the departmental or group level. Teams and groups develop norms about expected or acceptable behaviors based on group values and beliefs. Thus, the organizational culture probably influences group norms, but the group may have its own culture (e.g., a counter-culture or subculture). "People generally have attitudes and values that are common with others in their own fields or work units than

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they do with those in other fields or other parts of the organization. These various groups may be said to have several different subcultures - cultures existing within parts of organizations rather than entirely throughout them. These typically are distinguished with respect to either functional differences (i.e., the type of work done) or geographic distances (i.e., the physical separation between people). Research suggests that several subcultures based on occupational, professional, or functional divisions usually exist within any large organization" (Greenberg & Baron, 2003). Ethical leadership within a department might create a culture or climate that influences individuals in that department, both in terms of their value congruence and their deviance behaviors. The organization's culture develops in large part from its leadership (ethical and / or transformational style) while the culture of an organization can also effect the development of its leadership. Effective organizations require both tactical and strategic thinking as well as culture building by its leaders (managers) (Bass, 1993). Schein (1992) argues that researchers must understand the role of organization culture. Culture is useful as a concept because it helps leaders to better understand the hidden and complex aspects of organizational life. It is useful for managers who are attempting to change the behavior of subordinates. Cultural analysis clarifies the cultural dynamics within organizations. Major categories of overt phenomena that are associated with culture include the following: 1) observed behavioral regularities when people interact (language, customs, traditions, and rituals); 2) group norms: which are implicit standards and values that evolve in working groups; 3) espoused values: publicly announced principles and values that the group claims to achieve; 4) formal philosophy : broad policies and ideological principles that

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guide a group's actions; 5) rules of the game: implicit rules for getting along in the organization; 6) climate: feelings that are conveyed in a group by the physical layout and the way in which members of the organization interact with each other; 7) embedded skills: special competencies group members display in accomplishing tasks; 8) habits of thinking: mental models, and / or linguistic paradigms, shared cognitive frames that guide the perceptions, thought, and language used by members of a group and are taught to new members in the early socialization process; 9) shared meanings: emergent understandings that are created by group members as they interact with each other; and 10) root metaphors or integrating symbols: ideas, feelings, and images groups develop to characterize themselves (Schein, 1992). Campbell (2004) proposed that organizational culture is a cognitive phenomenon (Schein, 1999), the result of collective programming of the mind (Hofstede, 1998a), and reflects the basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously (Schein, 1985, 6). Campbell also suggests that though organizational culture may reside in the collective minds of the organizational members, it is manifested in tangible ways, such as behaviors, throughout the organization (Detert, Schroeder, and Muriel, 2000; Schein, 1999). Though researchers have attempted to identify the components that comprise an organization's culture, one component that recurs in descriptions of organizational culture is the values that are held by the members of the organization. These values are described as, "broad, nonspecific feelings of good and evil, beautiful and ugly, normal and abnormal, rational and irrational (Hofstede, et al., 1990). As a foundational part of

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the substance of the organizational culture is its values, which are assumed to be unique to the organization, leaders must manage organizational values (Campbell, 2004). Posner and Schmidt (1992), suggest that managerial values are stronger today as the nation's businesses have recognized the importance of corporate culture, ethics (i.e., leadership), and how shared values (alignment between personal and organizational values) makes a difference. The research conducted by Posner and Schmidt took a broad look at managerial values that are such a powerful force in organizational life. The authors offer that values are "at the core of our personality, influencing the choices we make, the people we trust, the appeals we respond to, and the way we invest our time and energy" (p. 81). The authors support this position based on observations from Drucker, "that an organization's culture is a function of shared values." Research has demonstrated empirically how values affect personal and organizational effectiveness (p. 81). The fit between personal-organizational values is able to predict job satisfaction and organizational turnover. Haas (as quoted in Posner and Schmidt, 1992) argues that alignment between organizational values and personal values is the key driver of corporate success (p. 82). Waters and Bird (1987) suggest that managers experience what is termed 'moral stress.' Managers recognize moral issues in many of their everyday decisions and actions but often remain unclear about how they should act (behavior) in a given situation. The authors argue that this condition exists both because of lack of clarity about practical, specific behaviors that are appropriate in various situations, and because of uncertain feelings of obligation to act in accord with moral standards. Managers, as individuals, often share similar views regarding morally appropriate standards, but these views tend to

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be held privately and tacitly, and not collectively and publicly. By examining these conditions and behaviors, managers (leaders) can manage the moral dimensions of his or her organization's culture. Although distinction between climate and culture is blurred, research on organizational climate also supports the idea that shared perceptions of what the organization values and what behavior is acceptable does influence members' actions. "Culture refers to the deep structure of organizations, which is rooted in the values, beliefs, and assumptions held by organizational members. Meaning is established through socialization to a variety of identity groups that converge in the workplace. Interaction reproduces a symbolic world that gives culture both a great stability and a certain precarious and fragile nature rooted in the dependence of the system on individual cognition and action. Climate, in contrast, portrays organizational environments as being rooted in the organization's value system, but tends to present these social environments in relatively static terms, describing them in terms of a fixed set of dimensions" (Denison, 1996). Just as organizational subcultures may emerge at the departmental level, similarly the construct of climate should exist at the departmental level (which is analogous to subcultures). Both culture and climate are shaped by many factors, however leadership is assumed to be an important determinant. Accordingly, ethical leadership should influence organizational culture and climate, as well as departmental-level culture and climate. Therefore, this research investigated the question of whether group-members' perceptions of their supervisors' ethical leadership behaviors influenced their perceptions of value congruence and deviance behaviors. Thus, instead of researching whether

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employees, who report directly to an ethical leader (direct report), would engage in fewer acts of work place deviance. This research investigated whether perceptions of the ethical behaviors of supervisors in specific departments influence both individual deviance behaviors. Department-Level Analyses Against this conceptual background, this research investigated whether perceptions of department-level ethical leadership were associated with the group's perceptions of value congruence with the supervisor and the organization and the group's level of deviance. The group-level variables in this research were created by aggregating the individual-level data to compute the mean ratings for each department. The Pearsonproduct moment correlations showed moderately-sized correlations between departmentlevel ethical leadership and individual-level value congruence with supervisor (r = .495, p = .061) and individual-level value congruence with the organization (r = .460, p = .085). However, neither correlation was statistically significant at the p < .05 level of significance because there were only 15 departments in the sample. Both correlations would have been statistically significant at the p < .05 level with only 1 additional observation, however. However, the better analysis method using This suggests that the data offers some support for the proposition that a department's culture or climate for ethical leadership influences individuals' perceptions of value congruence. In general,
workers in a department perceived greater value congruence with the supervisor and the

organization as their perceptions of the departments ethical leadership culture increased. The culture and climate literature also supports the idea that ethical leadership at the departmental level may group-level deviance in a department. However, the mean

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ratings for interpersonal deviance acts by the respondent were low for all departments and the differences among the departments were not statistically significant (p = .580). Similarly, mean ratings of perceived organizational deviance acts by coworkers were low and the differences in means across the department were not statistically significant (p = .839). Given this lack of variability across departments on deviance and ethical leadership ratings, not surprisingly there was no statistically significant relationship between the mean scores on ethical leadership and interpersonal deviance by the respondent (r = -.314, p = .255) or organizational deviance by coworkers (r = -.310, p = .260). Once again, the small sample size for this group-level data caused relatively large correlations of around -.31 to not be statistically significant. However, if the correlation of comparable size were found for larger samples of at least 40 observations, they would have been statistically significant. In terms of exploratory analyses, when the data were aggregated to the group level (department level), there was a statistically significant correlation between value congruence with the supervisor and value congruence with the organization (r = .690, p = .004). This suggests that respondents, when aggregated to the department level, did not see a large difference between their two types of value congruence. If one was low, the other was low, and vice versa. To summarize, the department-level correlations did not provide statistically significant evidence that ethical leadership (at the department level) influences either value congruence or deviance behaviors.

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Multilevel Analyses OLS regression and Pearson-product moment correlations showed statistically significant relationships between department-level measures of ethical leadership and value congruence with the supervisor and the organization measured at the level of the individual. However, the better analytic method is to use multilevel restricted maximum likelihood techniques. Although many different multilevel analyses were conducted, including analyses based on Poisson distributions of the interpersonal and organizational deviance dependent variables, there were no statistically significant relationships between ethical leadership at the department level and value congruence and deviance behaviors at the individual level of analysis when analyzed using restricted maximum likelihood estimation in HLM 6. Thus, this data does not show there to be any relationship between departmental ethical leadership and individuals' value congruence or acts of deviance. However, it should be noted that the relationships between ethical leadership in a department and value congruence approached statistical significance. The relationship with acts of deviance never approached statistical significance, however. The failure to find a relationship between ethical leadership and interpersonal and organizational deviance behaviors may be partly explained by the low reported frequency of both types of deviance. Most respondents reported very seldom or never engaging in acts of deviance themselves or having observed acts of deviance by coworkers. Thus, there was little variance in deviance that could be explained by ethical leadership differences. Arguably, ethical leadership might have caused these low base rates. Given the cross-sectional data collected in this study, it is not possible to tell whether ethical

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leadership in the departments caused these low rates of deviance. A longitudinal study would be necessary to investigate this question. Future Research and Limitations Although not hypothesized in advance, statistically significant correlations were found between an individual's perceived value congruence with the supervisor and perceived value congruence with the organization. This suggests a variety of different possible explanations, such as supervisors and employees are both influenced by the organization's values, or that the organization influences supervisors' values who in turn influence employees' values. Future research could investigate the nature of the relationship between these types of value congruence. This finding indicates that the two types of value congruence are related constructs, although they can be distinguished from each other (i.e., show discriminant validity). In addition, as discussed in Chapter 4, another statistically significant correlation was found between the two types of deviance. This is not surprising given that deviance in general is the overarching construct and the two types of deviance are simply more specific sub-constructs of deviance. This finding supports prior research showing that two types of deviance can be distinguished from each other (or discriminant validity), yet are related, not independent, dimensions. However, this also suggests that work needs to be done to refine the measures of the distinctly different types of deviance behaviors. As mentioned, perhaps the scales should separate extreme acts of deviance, like theft or drug use, from minor acts of deviance, like being rude or conducting personal business on company time.

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Concerns about ethics and leadership have dominated the headlines about business. There are reasons to believe that there is a relationship between ethical leadership, value congruence, and deviance at the departmental, aggregated level. Thus, ethical leadership within a department might create a culture or climate that influences individuals in the department, both in terms of their value congruence and their deviance behaviors. However, the sample size was quite small in this research study, with only 15 departments, so future research should use larger samples. And lastly, future research may indicate the usefulness to better understand the causes of group differences as a component of culture and climate. In its cultural dimension, the essence of leadership (ethical and / or transformational) is in actions that create cultures characterized by internal harmony around values and ideals which the leader and follower share (value congruence), or come to share. Kouzes and Posner's (1995) research suggests that even the perceptions of a person's overall leadership effectiveness is correlated with people's trust in that leader. Leadership and trust culture development takes place between people who choose to work together because they share common values, goals, methods, or other interpersonal relationships (Fairholm & Fairholm, 2000; Kouzes & Posner, 1995).

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APPENDIX A Cover Letter WEBSTER UNIVERSITY School of Business & Technology Dear BJH Colleagues: Hi! My name is Patrick Goodenough. I am a doctoral student at Webster University in Saint Louis, Missouri. I am conducting an exploratory research study to better understand perceptions of ethical leadership and employee values related to managers and the hospital. Your participation is voluntary and there are no consequences if you do not wish to participate. This research study presents no risk to participants. The study will require participants to express their opinions on perceptions of ethical leadership and values associated with managers and the hospital in general. All surveys used in this research study have been determined to be valid and reliable measurements and were used in prior research, to include other health care organizations. The expected benefits of the study will add value to the discipline of leadership, management, and organizational behavior literature; and completion of my degree program. There are no direct benefits to the participants. Would you please take a few moments to respond to the questions on the attached
survey? The survey questionnaires will require approximately 15 minutes of your time to

complete. All survey responses will remain strictly confidential. Returned survey responses will be kept by me in a secured area. The hospital will only receive aggregate

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data results of the study. (Please do not write your name or department's name anywhere on the survey or the envelope). When you have finished completing the survey, please place the survey in the envelope, seal the envelope, and then place the envelope in the Lock Box located in your department / staff area. Please complete the survey as soon as possible but no later than one week after distribution of the survey packets. You are invited to contact me directly if you wish to discuss any issues related to this research, or with questions not addressed within the survey but relevant to the research project. If you are interested in the findings of the research, please notify me, and I will gladly send a summary of the results to you. I can be reached via email at plg6143@,bic.org. by telephone at 314-362-0407 (work), or at pgoodenough@sbcglobal.net, by telephone at 314-362-0407 (home), or by mail at 7945 Westover Place, University City, Missouri 63130. Thank you for your thoughtful cooperation. Sincerely,

Patrick L. Goodenough, MBA Senior Financial Analyst Finance Department Barnes-Jewish Hospital

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APPENDIX B Perceived Ethical Leadership Scale Administration

Please respond to the following survey questions. Please DO NOT indicate your name or department.

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = strongly disagree, 5 = strongly agree

Perceptions of Ethical Leadership Scale Items My supervisor: Listens to what employees have to say. Disciplines employees who violate ethical standards. Conducts his/her personal life in an ethical manner. Has the best interests of employees in mind. Makes fair and balanced decisions. Can be trusted. Discusses business ethics or values with employees. Sets an example of how to do things the right way in terms of ethics. Defines success not just by results but also the way that they are obtained. When making decisions, asks "what is the right thing to do?" 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 Strongly Disagree Neutral Strongly Agree

Source: Ethical Leadership: A social learning perspective for construct development and testing. Michael E. Brown, Linda K. Trevino, David A. Harrison (2004)

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APPENDIX C Perceived Ethical Leadership Scale Nursing

Please respond to the following survey questions. Please DO NOT indicate your name or department. Please indicate which floor you work on: Floor:

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = strongly disagree, 5 = strongly agree

Perceptions of Ethical Leadership Scale Items My supervisor: Listens to what employees have to say. Disciplines employees who violate ethical standards. Conducts his/her personal life in an ethical manner. Has the best interests of employees in mind. Makes fair and balanced decisions. Can be trusted. Discusses business ethics or values with employees. Sets an example of how to do things the right way in terms of ethics. Defines success not just by results but also the way that they are obtained. When making decisions, asks "what is the right thing to do?" 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 Strongly Disagree Neutral Strongly Agree

Source: Ethical Leadership: A social learning perspective for construct development and testing. Michael E. Brown, Linda K. Trevino, David A. Harrison (2004)

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APPENDIX D Perceived Values Congruence Scale Administration - Individual Level

Please respond to the following survey questions. Please DO NOT indicate your name or department.

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = strongly disagree, 7 = strongly agree

Items

Perceived Values Congruence Scale Individual Level Strongly Disagree

Neutral

Strongly Agree

If the values of my supervisor were different, I would not be as attached to rny supervisor. My attachment to my supervisor is primarily based on the similarity of my values and those represented by my supervisor. Since starting this job, my personal values and those of my supervisor, have become more similar. The reason I prefer my supervisor to others is because of what he or she stands for, that is his or her values.

Source: Foci and bases of employee commitment: Implications for job performance. Becker, T. E , Billings, R. S., Eveleth, D. M., & Gilbert, N. L. (1996). Academy of Management, 39, 2.

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APPENDIX E Perceived Values Congruence Scale Nursing - Individual Level

Please respond to the following survey questions. Please DO NOT indicate your name or department. Please indicate which floor you work on: Floor:

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 - strongly disagree, 7 = strongly agree

Items

Perceived Values Congruence Scale Individual Level Strongly Disagree

Neutral

Strongly Agree

If the values of my supervisor were different, I would not be as attached to my supervisor. My attachment to my supervisor is primarily based on the similarity of my values and those represented by my supervisor. Since starting this job, my personal values and those of my supervisor, have become more similar. The reason I prefer my supervisor to others is because of what he or she stands for, that is his or her values.

Source: Foci and bases of employee commitment: Implications for job performance. Becker, T. E., Billings, R. S., Eveleth, D. M., & Gilbert, N. L. (1996). Academy of Management, 39,2.

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APPENDIX F Perceived Values Congruence Scale Administration - Organizational Level

Please respond to the following survey questions. Please DO NOT indicate youi* name or department.

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = strongly disagree, 7 = strongly agree

Items

Perceived Values Congruence Scale Organization Level Strongly Disagree

Neutral

Strongly Agree

If the values of the organization were different, I would not be as attached to this organization. My attachment to the organization is primarily based on the similarity of my values and those represented by the organization. Since starting this job, my personal values and those of the organization, have become more similar. The reason I prefer this organization to others is because of what it stands for, that is its values.

Source: Foci and bases of employee commitment: Implications for job performance. Becker, T. E., Billings, R. S., Eveleth, D. M, & Gilbert, N. L. (1996). Academy of Management, 39, 2.

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APPENDIX G Perceived Values Congruence Scale Nursing - Organizational Level

Please respond to the following survey questions. Please DO NOT indicate your name or department. Please indicate which floor you work on: Floor:

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = strongly disagree, 7 = strongly agree

Items

Perceived Values Congruence Scale Organization Level Strongly Disagree

Neutral

Strongly Agree

If the values of the organization were different, I would not be as attached to this organization. My attachment to the organization is primarily based on the similarity of my values and those represented by the organization. Since starting this job, my personal values and those of the organization, have become more similar. The reason I prefer this organization to others is because of what it stands for, that is its values.

Source: Foci and bases of employee commitment: Implications for job performance. Becker, T. E., Billings, R. S., Eveleth, D. M & Gilbert, N. L. (1996). Academy of Management, 39,2.

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APPENDIX H Perceived Workplace Deviance Scale Administration - Interpersonal Level

Please respond to the following survey questions. Please DO NOT indicate your name or department.

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = never, 7 = daily

Perceived Interpersonal Deviance Scale Items I have: Made fun of someone at work. Said something hurtful to someone at work. Made an ethnic, religious, or racial remark at work. Cursed at someone at work. Played a mean prank on someone at work. Acted rudely toward someone at work. Publicly embarrassed someone at work. Never 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5 6 6 6 6 6 6 6 Daily 7 7 7 7 7 7 7

Source: Development of a measure of workplace deviance. Bennett, R. J., & Robinson, S. L. (2000). Journal of Applied Psychology, Vol. 85(3), pp. 349-360.

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APPENDIX I Perceived Workplace Deviance Scale Nursing - Interpersonal Level

Please respond to the following survey questions. Please DO NOT indicate your name or department. Please indicate which floor you work on: Floor:

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = never, 7 = daily

Perceived Interpersonal Deviance Scale Items I have: Made fun of someone at work. Said something hurtful to someone at work. Made an ethnic, religious, or racial remark at work. Cursed at someone at work. Played a mean prank on someone at work. Acted rudely toward someone at work. Publicly embarrassed someone at work. Never 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5 6 6 6 6 6 6 6 Daily 7 7 7 7 7 7 7

Source: Development of a measure of workplace deviance. Bennett, R. J., & Robinson, S. L. (2000). Journal of Applied Psychology, Vol. 85(3), pp. 349-360.

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APPENDIX J Perceived Workplace Deviance Scale Administration - Organizational Level

Please respond to the following survey questions. Please DO NOT indicate your name or department.

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = never, 7 = daily

Perceived Organizational Deviance Scale Items I have observed co-workers: Taking property from work without permission. Spending too much time fantasizing or daydreaming instead of working. Falsifying a receipt to get reimbursed for more money than you spent on business expenses. Taking an additional or longer break than is acceptable at your workplace. Come in late to work without permission. Litter their work environment. Neglecting to follow your boss's instructions. Intentionally working slower than you would have worked. Discussing confidential company information with an unauthorized person. Using an illegal drug or consuming alcohol on the job. Put little effort into their work. Drag out work in order to get overtime. Never 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 Daily 7 7 7 7 7 7 7 7 7 7 7 7

Source: Development of a measure of workplace deviance. Bennett, R. J., & Robinson, S. L. (2000). Journal of Applied Psychology, Vol. 85(3), pp. 349-360.

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APPENDIX K Perceived Workplace Deviance Scale Nursing - Organizational Level

Please respond to the following survey questions. Please DO NOT indicate your name or department Please indicate which floor you work on: Floor:

Using the following measurement scale, select (circle) the appropriate response, which indicates how much you agree with each statement. Measurement scale: 1 = never, 7 = daily Perceived Organizational Deviance Scale

Items I have observed co-workers: Taking property from work without permission. Spending too much time fantasizing or daydreaming instead of working. Falsifying a receipt to get reimbursed for more money than you spent on business expenses. Taking an additional or longer break than is acceptable at your workplace. Come in late to work without permission. Litter dieir work environment. Neglecting to follow your boss's instructions. Intentionally working slower than you would have worked. Discussing confidential company information with an unauthorized person. Using an illegal drug or consuming alcohol on the job. Put little effort into their work. Drag out work in order to get overtime.

Never 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6

Daily 7 7 7 7 7 7 7 7 7 7 7 7

Source: Development of a measure of workplace deviance. Bennett, R. J., & Robinson, S. L. (2000). Journal ofApplied Psychology, Vol. 85(3), pp. 349-360.

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APPENDIX L IRB Authorizations, Consent Forms, and Letters of Approval

Barnes-Jewish Hospital Research Council Approval Letter Barnes-Jewish Hospital Patient Care Services Approval Letter Webster University Institutional Review Board Approval Letter Barnes-Jewish Hospital Human Resource Database Collection Approval Letter Washington University in St. Louis Institutional Review Board Approval Letter

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BARNES-JEWISH HOSPITAL Research Council Approval Letter

August 27, 2007 Patrick Lawrence Goodenough Doctoral Student Webster University, School of Business and Technology Dear Patrick, Thank you for forwarding your proposal, "Ethical Leadership, Values Congruence, and Workplace Deviance: An exploratory Study" to the Research Council. Members of the research council have completed an administrative and scientific review of the proposal. Your proposal has been approved to be forwarded to Washington University Human Research Protection Office for expedited review. Since you are a student, I will sign as the Department Chairperson. Good luck with this interesting and important study. Sincerely,

Margaret S. Ulione, PhD, RN Director, Center for Research Excellence

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BARNES-JEWISH HOSPITAL Patient Care Services Approval Letter August 8, 2007 To: Nicholas DiMarco, Ph.D., Disquisition Committee Chair John P. Orr, Ph.D., Director Doctor of Management Program Webster University Institutional Review Board Approval of Research Study My name is Coreen Vlodarchyk, Vice President Patient Care Services / CNE for Barnes-Jewish Hospital. Patrick L. Goodenough is a Sr. Financial Analyst in the B JH Finance Department. On behalf*of the hospital, I have reviewed Patrick's disquisition proposal, which is titled: Ethical Leadership, Values Congruence, and Work Place Deviance: An Exploratory Study. I am hereby give permission for Patrick to conduct the above doctoral research study at the hospital pending the approval of the hospital Research Council and Washington University Institutional Review Board. Please feel free to contact me if you have questions or comments. Sincerely, Coreen Vlodarchyk Vice President, Patient Care Services / CNE Barnes-Jewish Hospital (314)362-6119 (314) 362-5213 Fax

RE:

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WEBSTER UNIVERSITY Institutional Review Board Approval Letter

"Webster
UNIVERSITY
WORLDWIDE

Office of Academic Affairs

September 6, 2007

TO: FROM: RE:

Patrick Goodenough Stephanie Sehroeder, Chair, Institutional Review Board Ethical Leadership, Values Congruence, and Work Place Deviance: An Exploratory Study. Form 1040 EZ-S Research Project Approved

STATUS:

NOTES: The IRB Proposal Number for this research project is FA07-03 All forms submitted to the Committee for review must be utilized in the study. Any changes must be accompanied with a "Project Change Form." The proposal has been approved through December 2007. You are required to submit a summary of your findings upon completion or anytime requested. (Refer to End-Of-Project Form and Periodic Review). You may reapply for a project extension if needed.

Stephanie Sehroeder, Assistant Professor Chair, Institutional Review Board

v.websier.edu
470 EAST LOCKWOOD AVENUE SAINT LOUIS, MO

P: 314-968-6962
63119-3194 USA

F: 314-968-5938/7076

Austria I People's Republic of China ! England I Japan I The Netherlands I Switzerland I Thailand I USA

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BARNES-JEWISH HOSPITAL Human Resource Approval Letter for Database Collection

October 17,2007 To: Human Research Protection Office (HRPO), Washington University in St. Louis Margaret S. Ulione, PhD, RN, Director, Center for Research Excellence BJH E07-85 HRPO Approval for the Collection of Information from the HR Database My name is John Beatty, Vice President of Human Resources for Barnes-Jewish Hospital. Patrick L. Goodenough is a Sr. Financial Analyst in the BJH Finance Department. On behalf of the hospital, I have reviewed Patrick's research study, which is titled: Ethical Leadership, Values Congruence, and Work Place Deviance: An Exploratory Study. I hereby give permission for Patrick to collect information from the Human Resource's database. Please feel free to contact me if you have questions or comments. Sincerely,

RE:

John Beatty Vice President, Human Resources Barnes-Jewish Hospital (314)362-7521 (314) 747-8809 Fax

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WASHINGTON UNIVERSITY Institutional Review Board Approval Letter

iWashingDnUniversilyinStlDuis
Human Research Protection Office
FWA.00002284 Barnes Jewish Hospital St. Louis Children's Hospital Washington University

October 24,2007 Patrick Goodenough Finance Department Campus Box 90-68-102 RE: Project Title: "Ethical Leadership, Values Congruence and Work Place Deviance: Ah Exploratory Study" HRPO Number: E07-85 Funding Source: None Stated

The above-referenced project was reviewed and approved by the Washington University Human Research Protection Office (HRPO) according to the terms and conditions described below. Project Approval Date: October 22, 2007 Project Expiration Date: October 21,2008 Type of Review: New Expedited Expedited Category: 7 -

HRPO complies with federal regulations contained in 45 CFR 46, which allows an IRB to use expedited review for research which presents no more than minimal risk to human participants and involves one or more of the categories approved for expedited review. All actions and recommendations approved under expedited review are reported to a convened IRB as required by federal regulations. You are reminded that by receiving approval to conduct this research, you are expected to comply with the HRPO Project Director's Statement of Responsibility (located at http://hrDQ.wustl.edu/). Changes in research procedures or the consent document must be approved prior to implementation of the changes. Please allow 4 weeks review of any changes. According to federal regulations, this project requires continuing review by the IRB. Prior to the project expiration date indicated above, you are required to complete either a Continuation Request or Final Report. Forms are on the HRPO web site URL provided above. Please include the HRPO number and project title in all future correspondence. If you have any questions, please contact the HRPO at 633-7479 or tumera@wustl.edu. Sincerely, Philip A. Ludbrook, M.D. Associate Dean & Executive Chair, HRPO

Sandra S.'Hale, Ph.D. Chair, Behavioral Minimal Risk Subcommittee

O^

HRPO: 660 South Euclid Ave., Campus Box 808, St. Louis, MO 63110 Phone: (314) 633-7400, FAX: (314) 367-3041

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