The Link between Strategic Management and Leadership - Essay Example

Introduction

The work presented in this assignment covers the broad topic of Strategic management and leadership. Additionally, the essay covers the existing links between leadership and strategic management. Nevertheless, the essay will use the strategic management and leadership for ADSA as the case study. Strategic management refers to the organized development of resources used in the functional areas in a company (Yuki, 2002). The functional areas include finance, marketing, sales, manufacturing, and labour among many others. Therefore, strategic management can be termed as policies that are set, which are adopted by the senior management with an objective to guide the scope, and the entity the company picks (Kaplan, 2001). Moreover, the company operation takes into account the environmental scope that the business chooses (Day, 2001). Therefore, the strategic management works for an organization are usually in line with the group’s mission statement. Nonetheless, the organization utilizes its resources wisely to achieve its goals (Kaplan, 2003).

According to Andrei, leadership is the act when an individual guides the organization to achieve their goal and objective. However, the leader and the employees have a defined understanding that helps them to remain determined with the articulate vision and goals for the organization. Moreover, individuals through experience develop leadership skills (Kaplan, 2001). For instance, ASDA appointed its general assistant sales manager after she had been a successful leader (Vera, 2004).

Task 1.1 explain the link between strategic management and leadership

Many people urge out that strategic management is one of the skills, which is required by individuals for successful leadership. However, the claims have been criticized by managerial experts who have argued out that one can be a successful leader without necessary being a manager (Avolio &Walumbwa, 2009).

The manager’s role is to oversee the business functions day in day out according to the organization plans and principles. Strategic leadership is more innovative. The leader acts as a catalyst to their role which involves the general eye casting on all the business activities and the context where the business operates and explores new opportunities with an aim to attain business growth the required the desired business growth (Avolio &Walumbwa, 2009).

Strategic management does not only give the offer direction to the business enterprise but also it helps the business move forward (Yuki, 2002). Nonetheless, this is achieved by utilizing the resource and the skills, which are within the organization (Mumford et al, 2000). In addition to that, the strategic management helps the organization specify on their business objective (Vera, 2004). Moreover, the developments of procedures assist the organization to achieve its goals through proper allocation and utilization of resources (Grojean, 2004).

Leadership is the bridge between the strategic management and the desired organization targets. The leadership of an organization has credited the duty to achieve targets (Zaccro, 2002). Nonetheless, in strategic management, the management has the responsibility to manage people and resources using the organization's rules and unit values that have been set (Kaplan, 2001). However, On the other hand, leadership offers the direction that the organization should follow to achieve its goals (Kaplan, 2003).

Therefore, real leadership and effective management help the origination attain success. Nevertheless, both go side by side because without good leadership the management cannot meet their short-term and long-term goals. Similarly, effective management without good leadership cannot help the organization achieve its goals (Vera, 2004). Therefore, when great leadership collaborated with effective management, the organization can set direction.

Task 1.2 Analyse the impact of management and leadership styles on strategic decisions

Organizations practice effective management and leadership styles on decision-making show better performances than and those that do not practice it (Yuki, 2002) Strategic business management gives the origination a more competitive edge because the business can identify strategies that help them achieve their goal (Hackney et al, 2006). Strategic management and leadership style help the organization anticipate for change and make the right decisions in the changing business environment (Zaccro, 2002). Moreover, Effective Management and right leadership decision contribute to run the business focusing on the organizational goals and objectives (Vera, 2004). However, Strategic business management and leadership help to offer a logical decision that assists the organization to remain on a competitive edge. Nonetheless, critical decisions that the organization makes assist them to identify the threats from their macro and microenvironment and convert the threats to opportunities (Avolio &Walumbwa, 2009).

The strategic decisions define the organization mission and vision statements. They guide the employees according to the business plans and strategies for each unit. After that, the decisions integrate the business units and help to achieve the common organizational mission. The implementations of the decision are usually done bearing in mind the current market environments and other business resources (Kaplan, 2001). The pace to which the company makes its strategic decisions helps to cater for their resource that leads to profit maximization (Mumford et al, 2000).

According to Katter, the management should have plans, and the company should be focused on meeting and executing the organization's strategies while the leader should maintain the human resource, control, direct, and motive the employees to execute their best performance to achieve the business mission (Kim, 2002). However, the organization should be conversant with the decision-making style (Jung &Wu, 2003). The environment to which ASDA carries out business is very competitive, therefore; the company should obtain the best management skills and good leadership skills to achieve organizational goals (Kaplan, 2003). Moreover, an appropriate decision-making style is needed so that the organization can continue being successful (Day, 2001). However if the correct leadership style is not followed the organization will make a strategic decision (Hernez &Hughes, 2004). The leadership styles include bureaucratic leadership, democratic leadership, autocratic leadership, and laisse –faire leadership style (Vera, 2004).

Task 1.3 evaluate how leadership styles can be adapted to different situations

The different styles that can be adapted for different to solve different situation as follows:

The autocratic leadership style

In this type of leadership style, the leader is the decision maker (Yuki, 2002). However, the leader is a dictator he only issues directives and do not offer the employees an opportunity to make decisions (Jung &Wu, 2003). Nonetheless, the leaders are the ultimate decision maker and the employees, however, have no option rather than following the decision made by the by their leader (Mumford et al, 2000). Moreover, this style of leadership is appropriate to the organization where the company needs to make quick decisions that do not need consultations from the employees (Kaplan, 2001). Nonetheless, this decision style usually the leader has the power to make the ultimate decision that has to be followed by everyone (Grojean, 2004).

The bureaucratic leadership style

Bureaucratic leadership is the type of leadership where the leader follows theories and procedures in a very strict manner. The style is most appropriate where exact formulas and standards need have to be followed (Kaplan, 2003). Nonetheless, this leadership style will help the organization attain high standards, increase safety in the organization, and maintain the firm’s quality.

Charismatic leadership

This is the type of leadership where the trait of an individual cannot be learned easily. The natural trait of the leader motivates the employee. Moreover, the employees follow their leaders and usually have trust in them (Zaccro, 2002). The leaders usually influence people and help them to visualize the vision and the mission carried by the organization (Kaplan, 2001). However, the leaders help the employees visualize the importance of their contribution to the success of the organization (Hernez &Hughes, 2004). Moreover, the leadership style is helpful in situations when the organization requires the employees to put more effort in their performance (Yuki, 2002).

Democratic leadership

Democratic leadership is the type of leadership whereby the leaders promotes trust among the employees and involve them in the decision-making process. The style of leadership is very effective because it motivates employees to participate in the decision-making. Their opinions and ideas are highly valuable to the organization. Nonetheless, this type of leaderships is very effective because employees feel that they are part of the organization. Moreover, the outcomes that Democratic leadership posts are effective and efficient (Day, 2001). However, there some advantages’ that are reached achieved by the leadership style (Jones et al, 2004). One is that the leadership style encourages creative thinking (Kaplan, 2001). The style reduces the employee ratio turnover because employees are motivated and encouraged to share their ideas that make them more committed to their job (Hackney et al, 2006). Similarly, the leadership style creates an environment, which is free from politic because the leader motivates the employees by discussing and implementing their feedbacks (Avolio &Walumbwa, 2009).

The lasses- fair leadership style

The style of leadership is utilized where employees are skilled and have the knowledge to make decisions. The leader allows the employees to make decisions by themselves. However, the leaders offer guidance and consultations to employees in the decision-making (Vera, 2004).

Task 2.1 review the impact that selected theories of management and leadership have on organizational strategy

In ASDA, the manager in charge takes a daily report of work from the section manager. Similarly, the section manager obtains the report from the team leader who is in charge of the of the individual employee performances. In the above scenario, individuals are responsible for their performance (Jung &Wu, 2003). In case one doest performs, he is answerable to a higher official who holds a higher rank than they do. On the other hand, when individuals do their duties well there is a reward for that (Kaplan, 2001).

The situational theory in ASDA

The situational theory is the best to implement the approach. The senior management uses the theory to make a decision about the situation facing them. For instance during a hot day customers purchase drinks from the shops floor (Kaplan, 2001). However, during normal days, one employee sells drinks but during a hot day, other employees are sourced from the less busy units to come and assist in the sales (Avolio &Walumbwa, 2009).

Task 2.2 create a leadership strategy that supports organizational direction

The leadership strategy that required by ASDA is the autonomy leadership style because the customer demands change quite often. The changes are influenced mainly by customization. Nonetheless, the competition does not allow a big company like ASDA to involve itself in lengthy decision-making (Kim, 2002). The leadership strategy should allow the employees to take some decisions whenever they see it is suitable (Mumford et al, 2000). However, the employees will have a sense of ownership in the employees (Vera, 2004). Nonetheless, leaders should offer consultancy whenever the employees find difficult to make decisions.

Task 3.1 use appropriate methods to review current leadership requirements

For ASDA, a combination of Laissez – Faire leadership style and democratic leadership style is required. The autocratic leadership will be need especially when a top executive makes decisions that will benefit the organization in the end (Kim, 2002). ASDA needs to have democratic leadership because the owner’s belief that customer satisfaction is the best value. Nonetheless, to be able to achieve the values the leadership has to consider the employees comments and views because they are the ones who interact with the customers directly (Kaplan, 2001).

The Democratic leadership allows the employees to share their opinions that make them more confident, increases their self-esteem and their loyalty to the organization increases which reduces their turnover (Jung &Wu, 2003). When their ideas and suggestion are meet the employees are motivated and that increase productivity. ASDA needs the Lai sees- fair leadership style. ASDA is a big organization it means thereby the employees should have the autonomy to make a decision on their own. Moreover, this will improve their decision-making skills (Kaplan, 2003).

Task 3.2 plan for the development of future situations requiring leadership

The future development for ASDA is that it requires the Autonomy leadership style. The change in the demand needs for customers changes over time (Kim, 2002). The influence is made by the customization that leads to a competitive environment. The nature of the market cannot allow a length decision process in the future (Day, 2001). Therefore, employees should be allowed to make a decision on their own under the mentorship of the leaders. On the other hand, the leaders should give consultations to the employees whenever they are faced with difficulties (Kaplan, 2001).

Task 4.1 plan the development of leadership skills for a specific requirement

ASDA leadership should use the democratic leadership style and should ensure it utilizes the autonomy skills. However, the enterprise operations’ are carried out in an extensive network of offices (Zaccro, 2002). Though the Democratic leadership the leaders have the skills to appreciate the employee’s ideas this helps them to contribute to the organizational goals (Kaplan, 2001). Moreover, consultative democratic management is appropriate because its main objective is to offer better customer service (Vera, 2004).

Task 4.2 report on the usefulness of methods used to plan the development of leadership skills.

The speculated plan for develop is indeed useful, because if the leadership style is not followed to the letter ASDA will not be able to meet their main objective which is customers satisfaction in the highly competitive business environment (Avolio &Walumbwa, 2009). Moreover, ASDA is a huge company that has more than 7500 employees; therefore, it is very hard for centralization to work (Jones et al, 2004). Nevertheless, the organization management style should be decentralized (Kaplan, 2001). However, it will thereby imply that every branch will have to lead its way. Finally, different customer segment requires different needs and want therefore to attain customer satisfaction mangers should have the lead by example in delivering of service (Hernez &Hughes, 2004).

Conclusion

The work presented in this assignment covers the broad topic of Strategic management and leadership. Additionally, the essay covers the existing links between leadership and strategic management. Strategic management refers to the organized development of resources used in the functional areas in a company (Yuki, 2002). The functional areas include finance, marketing, sales, manufacturing, and labour among many others. Therefore, strategic management can be termed as policies that are set, which are adopted by the senior management with an objective to guide the scope, and the entity the company picks (Kaplan, 2001). Moreover, the company operation takes into account the environmental scope that the business chooses (Day, 2001).

Biography

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