Strategic Management And Leadership

Strategic Management And Leadership

I am working at the medium sized company, Silky Road (SIR), has success in the electronic industry, as a senior management advisor. The main office is located in the Kyoto Ta Tar Township. We imported high quality electronic items such as Hand phone, telephone, TV, laptop, computer, DVD, etc. , from Thailand, South Korea, Hong Kong, USA. We are now 5th place in the market. 1. 1 Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.

Strategic management is defined as the set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the objectives of the organization (John A. Pearce II and Richard 8. Robinson, Jar. ). The processes of strategic management are environmental scanning, strategy formulation, strategy implementation and evaluation. Implementing strategy requires a team effort headed by organization’s leadership.

Each person involved in change management has their responsibilities, and it is important for the entire organization to understand the role of leadership in strategic implementation to make delegating responsibility more effective. In strategy evaluation, leadership examines the bases for strategy as well as compares the expected results versus actual results, and develops corrective action plans If there are any deviations.

The changing nature of work organizations, including flatter structures and recognition of the efficient use of human resources, coupled with advances in social democracy, have Page 1 combined to place growing Importance on leadership. The nature of management Is moving away from an emphasis on getting results by the close control workforce and towards the environment of coaching, support and empowerment. Leadership is a process of social influence, which maximizes the efforts of others, towards the achievement of a goal. There are four styles of leadership. 1 ) The authoritarian or autocratic style (2) The democratic style (3) A laissez-fairer style (4) Participative leadership style It is important to note that leadership plays the most dominant role in helping the organization to reach its goals and objectives. It is because leadership plays the key reach its corporate goals and objectives. There is an important link between strategic management and leadership of an organization as leadership ultimately sets the tragic direction of an organization and it is not easy to separate them as distinct activities.

Leadership is concerned about the vision while strategic management is focused on implementation according to the vision identified by the leadership. Leadership is concerned with the dynamics of a situation and it identifies and realizes that how to leverage its resources to respond to the dynamics of the situation. On the other hand, strategic management is concerned with the technique and it follows the orders of the leadership. Leadership is all about taking risks because leaders understand their strengths and weaknesses and leaders tend to earn from their mistakes.

While the strategic management is more concerned about avoiding risk and adopting risk response strategies. Leadership and management are both skills that an organization should possess. Management won’t take effect without the leadership. A leadership without management will only give us a Page 2 short time pleasure. When good leadership is combined with the strategic management, we can set the goal and able to manage the way we want. 1. 2 Organizations all over the world are deeply concerned with understanding, searching and developing leadership.

Regardless of the type of organization, leadership is scorned to play a vital role in establishing high performing teams. And also without management, it will not become good leadership. Whatever our goal is, we have to make decisions to achieve the goal every moment. But the decisions should be corrected. To make the effective decisions, we must not make decisions alone. And then the leadership styles and strategic management techniques which we used are show the impact in decision making.

An autocratic leadership style relies on one individual to make decisions in a business. It is a more authoritative management style. It does not rely on people to make the decisions. Business owner can assess the important decisions in urgent business situations. That style can be effective in work environment where decision needs to be made quickly. But that decision might be wrong because it comes from the one’s point of view. The democratic style emphasizes that management offers guidance to its teams and departments while accepting input from individual staff members.

Leaders reserve the right to make final decisions but encourage feedback, ideas, and suggestions from all employees. The leaders generally have a more content workforce, since each individual has input into decommissioning. It allows the leader to capitalize on the employees’ individual talents and strengths, while also benefiting from the power of the whole. It is best employed in cases where the department or business is looking to implement operational changes or when a leader or manager is attempting to resolve problems either individually or within the group.

The disadvantages of this style include a fairly slow, time consuming decision; less security, because so many people are involved in Page 3 The laissez-fairer leader is one who believes in freedom of choice for the employees, leaving them alone so they can do as they want. There is a strong belief that the employees know their Jobs best so leave them alone to do their Jobs. The business can be achieved if the one who made the decision is reliable, full of knowledge and sense of responsibility.

But also the business can be failed if the decision is wrong because the leader give freedom to employee in decision making. So, the laissez-fairer style can be the best and the worst leadership style. 1. 3 Leadership is less about we needs, and more about the needs of the people and the organization we are leading. Leadership styles are not something to be tried on like so many suits, to see which fits. Rather, they should be adapted to the particular demands of the situation, the particular requirements of the people involved and the particular challenges facing the organization.

Leadership style is the pattern of behaviors used by the leader to influence the behavior of others. Since different situations require different outcomes, it makes sense that the most successful leaders adapt their style depending on the needs of situation. But first we must identify our own leadership style that suits our organization. Knowing and understanding own leadership style is the first step towards adapting our behavior to he needs of the workers. And we should recognize the pros and cons of the leadership styles.

We have to appreciate the diversity among our staff. Diversity in organizational psychology is often seen as differences among people that define or create the culture of the workplace. We should experiment with different styles to see what style is the best for workers. As we get to know our workers, we will get a sense of how much direction and how much freedom they need to be productive. Page 4 When we are in the real urgency with no time for discussion, in critical situation, engages in top-down interactions, we can use autocratic style.

For democratic style, we can use it in creating a work climate for others to apply innovative thinking to solve problems, develop new products and services, to expand an organization’s position in the marketplace, to raise team morale. When the team is working in multiple locations or remotely, and a project, under multiple leaders, must come together by a specific date, to get quick results from a highly cohesive team, we can use laissez-fairer leadership style. 2. 1 The new environment is typified by an increased level of complexity and interconnectedness.

Managers were facing the difficulty when leading teams spread across the globe. Because the global economy has become interconnected, managers felt they could no longer afford to focus solely on events in their local economies; that were happening in different parts of the world. In this part, two management and leadership theories will be chosen and reviewed to show the impact of them on an organization. The first one is Transformational theory and the second is Transactional theory.

Transformational leadership is style of leadership in which the leader identifies the added change, creates a vision to guide the change through inspiration, and executes the change with the commitment of the members of the group. Transformational leaders are focused on supporting group members so that they can succeed as well. Since leaders are usually energetic and enthusiastic, the group members are very motivated and have high level of morale to work and achieve the goals. Transformational approach is to bring significant change in the life of both the organization and its people.

It is important to know the impact of transformational leadership on a group as the leaders will gain trust, respect and admiration Page 5 room the members. If the leader gets trust and respect from the followers, then no matter how the goal is big, they can easily achieve their goal. Since our current business environment is very dynamic, so does the need for change in leadership style. People values most on personal skills and development and prefer to work outside of the organizational boundary. But the transformational leadership is not flawless and perfect.

The successful transformational leader is on a moral mission; and truly believes in the rightness and benefits of the change. The selling of this Sino never stops, and the followers receive constant encouragement to do their part. However, any sign that the leader manipulates the followers or has a hidden agenda will destroy the trust that is necessary for this style of leadership to be effective. If the followers rebel the leader, then the organization cannot be heading toward the goal. And no matter how the long term plan is perfect, it will be failed.

Transactional leadership is based on the setting of clear objectives and goals for the followers as well as the use of either punishments or rewards in order to encourage compliance with these goals. Transactional leadership is based more on “exchanges” between the leader and follower, in which followers are rewarded for meeting specific goals or performance criteria. A transactional leadership style is appropriate in many settings and may support adherence to practice standards but not necessarily openness to innovation.

It creates a vision and inspires subordinates to strive beyond required expectations, whereas transactional leadership focuses more on extrinsic motivation for the performance of Job tasks. Thus it is likely that transformational leadership would influence attitudes by inspiring acceptance of innovation through the development of enthusiasm, trust, and openness, whereas transactional leadership would lead to acceptance of innovation through reinforcement and reward. However, subordinates of transactional leaders are not necessarily expected to think innovative and may be monitored on the basis of predetermined criteria.

However the transactional leadership style is also not perfect. This leadership style is very direct. The transactional leader is expecting the results from the followers who in turn must deliver unless they want to suffer the consequences. Only exceptionally good performance is rewarded, and mistakes are bout the working relationship, and believes the role of subordinates is to do as they are told. Page 6 It’s never the fault of a transactional leader when tasks go wrong. Once the leader has assigned the task, that Job is solely the responsibility of the employee.

If problems occur, the employee is expected to be fully accountable for the issues. As a result, employees may be likely to be devious when the leader is not present. Because of the task-focused leadership approach, employees do not feel as if they are working towards a shared goal, and they are not motivated by the overall organizational mission. This will be a problem for long term organizational plan. Leadership is important to consider in relation to acceptance of innovations and to work attitudes, perceptions, behavior, service quality, and client outcomes.

Because leadership is associated with organization and staff performance when we planning to success our goal. 2. 2 A leadership strategy allows the organization to identify how many leaders are needed, what kind, where, with what skills and how they behave individually and in groups. The current situation and the goals the organization are required to be analyzed and then a leadership strategy can be developed. Currently our organization uses the democratic leadership style. Because of the democratic leadership, all employees feel comfortable enough to put their ideas on the table.

In collaborative settings, it helps to focus discussion and find the balance between being open to new ideas and keeping things productive and on track. For the leaders, they can get many possibilities and suggestions that can be used. The leaders can set the particular decision because they get many suggestions from the various points of view. But some managers adopt democratic leadership to please their subordinates but fail to follow the technique in its entirety. They might simply take in all the ideas and end up never implementing them.

The decision making process might be a long drawn one since every team page 7 member needs to be consulted. No one has a scarcity of ideas but to put them all in place requires a great deal of patience and understanding. Missing opportunities and being stuck in the middle of a hazard can be some of the drawbacks of this method. Additionally, level of skills play a role, as a large percentage of unskilled labor might hinder business decisions. Or, an employee who lacks group skills might not have his voice heard in the democratic process.

Thus, this leadership style works best with smaller, more skilled labor force that can provide management. Therefore we can’t use democratic leadership style every time. In this case, leadership styles and organizational situations are connected. We can’t use only one leadership style conditions are dangerous and control is necessary, and when the subordinate staff is inexperienced or unfamiliar with the type of work. Autocratic style is applicable for not only actions that need to be completed quickly, but also if a team member’s skill for the task is very low or novice.

When a situation is very extensive, when things hanged frequently and when a situation is very difficult and has a lot to talk about or discus, we should use democratic style. Because it encourages to develop the followers’ sense of participation, control and autonomy. Greater employee participation in decision-making may also lead to greater innovation and creative solutions to problems that will better serve an organization. A laissez fairer style would be appropriate to use with one or more individuals who know more about the job than the leader.

It will help the team members to tough business situations, helping them to gain more experience and grow faster and it keeps team members ware of and continuously working towards the larger picture. If we want to use transformational leadership style, we can use it when we want to listens to all viewpoints to develop a spirit of cooperation, creates a vision, using people in the organization, acts as a change agent within the organization by setting an example of how to initiate and implement change and helps the organization by helping others contribute to the organization.

For transactional leadership style, when we want to motivate the employees to focus on short-term success. Page 8 Charismatic leadership is provided to an organization by one or more individuals men as heroic or inspiring and who have therefore been granted the organizational power to make dramatic changes and extract extraordinary performance levels from its staff. For example, a business manager imbued with charismatic leadership could be enlisted to orchestrate a turnaround or launch a new product line. When we want to be followed by the followers willingly, we should use this style.

Fiddler’s Contingency Model is the theory that effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader (See, A T, 2013). If we want to be successful, not only leadership but also emotional intelligence (E’) as well as emotional quotient (CEQ) is necessary. Emotional intelligence is the ability to perceive emotions, access and generate emotions so as it assist thought, understand complex emotions and emotional knowledge and reflectively regulate emotions so as to promote emotional and intellectual growth.

Coleman(1995) said El is “The capacity for recognizing our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships”. The intelligence tontine is not the only prerequisite for an organization to run smoothly. In today’s cross-cultural, multi-disciplinary work set-up, the CEQ or the emotional quotient shares the pedestal with the ‘Q. For leaders, who are at the helm of affairs at the workplace, a good CEQ can create a network of positive and productive energy for enhanced performance.

A good CEQ leader has personal competencies, the competencies determine how we can manage ourselves, which are self-awareness, management, self-control, trustworthiness, conscientiousness, adaptability, achievement-orientation, initiative and social competencies, the competencies determine how we handle relationships, which are social-awareness, empathy, organizational awareness, service-orientation, social skills, developing others, leadership, influence, communication, change catalyst, conflicts management, building bonds and teamwork and collaboration.

Emotional quotient gives leaders the humane perspective to help the team work in an emotionally-stable space. As an integral aspect of management studies, emotional quotient is built through training and experience. Page 9 Beginning with the business strategy, the first step is to identify the drivers of the strategy. Drivers are the key choices that leaders make about how to position the organization to take advantage of its strengths, weaknesses, opportunities and threats in the marketplace.

They are the things that make a strategy unique to one organization as compared to another and dictate where tradeoffs will be made between alternative investments of resources, time and energy. Drivers are few in number and help us understand what it is absolutely essential for leaders and the collective leadership of the organization to accomplish. This table shows the key decisions leaders are making about what the organization must do.

Key Driver Becoming more global Leadership Strategy Implications Requirement for greater cultural sensitivity among leaders Enhanced representation of different geographies at top levels Enhanced language skills in key leadership roles to enable cross-cultural relationship building Enhanced importance of foreign assignments Greater understanding of local laws and business arrangements in strategy making Page 10 Becoming more innovative customer-focus Greater interdependence among leaders to create more effective collaboration across functions in bringing new products to market Need to increase leadership involvement cross functions in gathering consumer insights and translating these into profitable ideas for new products Must anticipate capital, space, talent implications of rapidly expanding product portfolio Need cultural change to create a spirit of innovation versus a culture of risk aversion at top levels of the organization Need to develop and implement new processes translating them into improved business practices Must create solid linkages across the organization at all customer touch points, so that the customer experiences a seamless relationship Need to understand the needs of different customer segments and move beyond “one size fits all” approach Must instill a culture of customer primacy and customer care 11 Investing in High-Growth Opportunities Improving Operating Efficiency Rapid growth requires attention to talent development; must accelerate the acquisition and development of talent for key roles to avoid talent becoming the constraint to continued growth Must grow number of leaders at every level by 10% per year over next three years Must introduce other methods to bring costs into line with key competitors; these must be led from the top and supported by leaders at very level Must create a culture of continuous improvement that is led authentically by those 3. In order for an organization to be successful in their business the management needs skillful and talented leaders that will support the employees in effectively driving the workforce of the organization to attain its goals. To be an effective and good leader entails looking into the future of the organization for continuous growth therefore it is important for every organization that is working towards success to have leaders that will initiate and bring ideas forward in the interest of the organization and a highly skilled labor force that will also help the organization to become highly competitive. Leadership is depends on the changes in society and work. Nowadays the flexible working is becoming a trend.

Decreasing Job security, company loyalty, unemployment are encouraging career changes and self-employment, sectarian shifts from manufacturing and 12 production to service and leisure industries, increasing pressure to work in collaboration and to establish partnerships, private sector organizations are becoming more powerful are the facts of changes of society. In this climate of hanged, leadership is viewed as the key to organizational success. Although the core qualities of leaders may remain constant, the manner and mix in which they are exhibited needs to become more fluid and matched to the context. The leader needs to become increasingly adaptable – making sense of uncertainty and managing complexity. The qualities of openness, empathy, integrity and self-awareness are coming to the fore.

As the need for good strategic leadership becomes critical, it is proposed that further steps need to be taken to identify, develop and support potential future leaders from an early stage. Changes in society are turning towards the moral, social and ethical responsibilities of leaders. In response to these challenges, many organizations are beginning to reevaluate their perception of leadership. Therefore, the quality of leadership will remain of central importance to organizations in all sectors. Most organizations want to become globally competitive but at the same time they still want to keep in touch with the local markets. That’s why the knowledge of working virtually became a necessity. There are many benefits of going with virtual teams.

One of those is that virtual team members produce projects for the company, coolly, nationally and internationally. New skills in leadership are always required so that a strong relationship will develop in a virtual community. A leader must always think of new ways, new strategies, and new techniques to connect with his/her team so that they can work well and be productive. The virtual team may be spread over the world, or over different campuses, or over employee’s homes. It is dynamic in terms of its goals, structure, and control and resource deployment. Diversity is concerned with making the best use of differences and removing barriers to such