Strategic Management and Leadershipp (Essay Sample)

Strategic Management and Leadership
Mosammat Rashidun Ara Hasnin
London College of Business Sciences
Executive Summary
This assignment is based on the strategic management and leadership that how leadership shapes employees. Moreover, this assignment highlighted the styles of leadership as per the situations and difference between strategic management and leadership and how both the phenomenon leads to employee career growth. The directional leadership is an essence to growth and performance of organization. There are multiple methods of reviewing current and future leadership requirements and plans are devised accordingly. At last, this assignment discussed the methods for developing leadership skills.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc415157909 \h 21.1 Strategic Management and Leadership PAGEREF _Toc415157910 \h 41.2 Leadership Styles PAGEREF _Toc415157911 \h 51.2.1 Laissez – faire leadership style PAGEREF _Toc415157912 \h 51.2.2 Transactional leadership style PAGEREF _Toc415157913 \h 61.2.3 Transformational leadership style PAGEREF _Toc415157914 \h 71.3 Impact of Management and Leadership Styles on Strategic Decisions PAGEREF _Toc415157915 \h 72.1 Leadership strategies that supports the organizational direction PAGEREF _Toc415157916 \h 82.2 Impact of management and Leadership theories on Organizational Strategies PAGEREF _Toc415157917 \h 83.1 Method of Reviewing Current Leadership Requirements PAGEREF _Toc415157918 \h 103.2 Development Plan of Leadership Future Situations PAGEREF _Toc415157919 \h 114.1 Development Plan for Specific Requirement PAGEREF _Toc415157920 \h 134.2 Methods for Leadership Skills Development PAGEREF _Toc415157921 \h 144.2.1 Modeling Leadership PAGEREF _Toc415157922 \h 144.2.2 Teaching PAGEREF _Toc415157923 \h 144.2.3 Mentoring PAGEREF _Toc415157924 \h 154.2.4 Exchange Programs PAGEREF _Toc415157925 \h 154.2.5 Orientation PAGEREF _Toc415157926 \h 154.2.6 Training session/workshop PAGEREF _Toc415157927 \h 16References PAGEREF _Toc415157928 \h 17
1.1 Strategic Management and Leadership
Strategic management means the set of activities that has been planned by the management in order to achieve the goals of the organization in an effective manner. The first mission of the strategic management is to create the vision that what steps should be taken by the management for the organization’s future business path. The management is responsible for managing the resources of the organization in order to achieve the goals of the organization. Strategic management means the management should implement assess and formulate the strategic decisions in order to make the organization be able to achieve the organizational goals and possible outcome (Lawler and Worley, 2006).
Strategic plans are the plans that are planned by the management to achieve the long term goals rather than short term goals. Management must have to plan the strategies in order to attract the customers and to compete effectively in today’s competitive market. At the time of planning the strategies for achieving the long term goals, the management should consider that what we are, where we are and where we want to go.The management plans the overall mission of the organization and then coordinates with the employees of the organization for achieving the planned and targeted objectives. Strategic management includes top level management; top level management is responsible to create an environment in which the employees can work effectively with each other and the management should motivate their employees and to retain them by providing handsome salaries. Furthermore, for attaining the objectives of the organization the management should perform the functions these are; planning, organizing, controlling and monitoring (Salaman and Storey, 2009).
Lou Gerstner at IBM diagnosed that strategic management actions are necessary for moving IBM as he diagnosed several problems such as decentralization, loss of touch with customers, staying with old strategy and increased costs. He suggested that we have to be proactive, determined, bureaucratic, cost focused and customer centered. IBM made definite goals and objectives to make these changes and strict management path was followed (Harreld et al., 2006)
Leadership means "to lead the organization in an appropriate and objective manner”. There are two types of leadership; strategic leader ship and operational leadership. In strategic leadership, the first step taken by the strategic leader is to create the vision for the better future of the organization and operational leader implement that vision.Good leaders always create a vision and then communicate it to the others. A leader leads a team in an effective manner as well as a leader should always motivate its team members by communicating them in an effective manner (Dyer et al., 2005). A leader can motivate team by reducing the cultural differences. A leader assigns the work to the team members in order to attain the objectives. The functions of the management are to plan, budgeting, appraising and facilitating. On the other hand, functions performed by a good leader are to select the talent of the team, motivate its team members, guide them, supervise them and build a trust. Management develop a plan to achieve the target objectives by adopting competent individuals and allocate the resources at the right place where needed. On the other hand, leader builds a vision and communicates it with the team members to fulfill their mission and vision (Morrill, 2010).
1.2 Leadership Styles
According to the study of the leadership approaches, there are three leadership styles transactional leadership, transformational leadership and laissez - faire leadership. Nowadays, organizations use charismatic leadership approach to understand the above three leadership styles. This approach, charismatic leadership approach explains the behavior of the leadership styles (Dyer et al., 2005). The three leadership styles are discussed below;
1.2.1 Laissez – faire leadership style
This style is considered to be non-leadership style. A leader is not willing to fulfill his actual responsibilities regarding the organizational goals. This is a style in which a leader never gets involved into the affairs of the team members. A laissez faire leader never focus on the work performed by the team followers and is not interested in building a strong relationship and understanding with the team members. If any issues or problems arise during performing the task, the leader always keep him away from those issues and never try to get involve in solving the problems arising. There is no interaction between the leader and the team workers.The team members are restricted to obey the orders of the leader whether the leader explains the criteria of performing the task or not. Dissatisfaction and ineffectiveness is completely linked with the laissez faire leadership style (Sidious, 2008).
1.2.2 Transactional leadership style
Transactional leadership style is that in which a leader is entirely focus on the needs of the team members while performing their duties. A leader communicates with the team members in an effective manner in order to achieve the goals. Reward system is placed by the leader in order to motivate the team members so that the team members get much involved in attaining the goals or objectives of the organization. The leader explains the standards to the team members and the leader may also punish the workers for their non-compliance with the standards. Retention of the team members depend upon the behavior of the leader. The leader explained the level of expectation to the team member for achieving the target and to attain the possible outcome. The performance of the team workers should always be monitored by the leader and if the leader identify and mistake in performing the task, immediate corrective actions should be taken by the leader. The leader should interfere any time when recognize any problem or issues within team workers (Yukl, 2007).
At IBM, Sam Palmisano followed transactional leadership style in which he learned from his employees and customers. This style reflects the person at his best and Sam Palmisano used it as he listens to his associates because he thinks his employees are more close to customers. He keeps short meetings of 15 minutes with his followers to help them in achieving goals. He values employees by comforting them and rewarding them on achieving targets (Sosik and Jung, 2011).
1.2.3 Transformational leadership style
Transformational leadership is a style in which team members are continuously encouraged by the leader to put their efforts in order to order to perform their task more efficiently as well as in order to achieve the organizational goals. This style reflects that the leader has become a role model for the team workers and is always respected by the team workers. The members of the team are loyal towards their leader because of his charisma leadership style.The team members of the transformational leaders put their great efforts. The transformational leaders inspire their team members in order to raise their abilities and show the positive attitude towards the performance of the team. According to this style, the leaders have the problem solving skills and pays proper attention towards the need of the workers. Transformational leaders always consider the needs of their team workers and share the success with them (West, 2012).
The former CEO is IBM, Lou Gerstner was known for transformational leadership. Under his leadership many transformations came in IBM such as recovery of $1.8 billion and made it the top private IT Company in 1993. It changed the culture of organization (Simic, 1998).
1.3 Impact of Management and Leadership Styles on Strategic Decisions
The st...