Strategic Management and Leadership Essay

Q1. Explain the link between Strategic Management and Leadership The strategic management process helps institutions identify what they intend to achieve and how they will accomplish outcomes. The term strategic management is used to refer to the entire decision-making process. Strategic management must evolve by predicting the future (more effective planning), thinking strategically (increased responses, evaluation of strategic alternatives and dynamic allocation of resources) and creating the future (strategic planning through orchestration of all resources to create advantage) (Gluck, Kaufman & Wallach, 1980).Therefore the orchestration of all resources within an institution, strategically driven by a flexible planning process that incorporates the institutional culture, means strategic management is at work.

It serves as a mechanism to provide direction to an institution and at the same time has the potential to propel an HEI on a perilous course into uncharted waters. It helps coordinate organizational activities, but taken to excess can create “groupthink,” where the choreography is overdone.According to Certo and Peter (1991, 5), “strategic management is defined as a continuous, iterative process aimed at keeping an organization as a whole appropriately matched to its environment. ” Stembridge (2001, 24- 25) states: “the continuous process of strategic management then, includes strategic planning, i.

e. , analysis, as well as strategy formulation, implementation, and control activities […]. ” Planning is a part or component of strategic management, but not a management substitute (Dunn, 1998).Leadership is about strategic management, discretionary decision-making and policy development. Ohmae (1982) represents leadership as a cornerstone in a triangle along with management and planning. Leaders are charged with the task of moving an institution forward in an effective manner; with taking the institution from its current mission-state to a new and better vision-state. As advocated by Clark (1983), HEIs evolve from the bottom up. Each adaptation moves up the hierarchy bringing growing degrees of change with it at each level.

Other authors concur that leadership within higher education institutions is identified as a ‘shift in perspective’ (de Groof, Neave & Svec, 1998). Managing an institution is an enormous challenge. As stated by de Groof, Neave and Svec (1998, 129), “the university is a complex organization which has to accommodate a vast range of tasks, cross-cutting interests, demands and obligations, some of them imposed by law, others that arise from the usual friction which comes with large numbers of people working on widely different projects in the same surroundings […].The maintenance of strategic vision, the cohesion necessary if the myriad different interest of teachers, researchers, managers, students and employees are to kept in a state of creative but balanced tension, call for a very high order of political skills, that is, the ability to reconcile conflict of interest around a common cause or objective. ” Some would place leadership on top as the all-encompassing factor that orchestrates institutional management and planning (Anyamele, 2005).

Certainly, planning and management are key functions of leadership.As Middlehurst (1993) points out, leadership sets values and direction and positions the institution strategically. Anyamele (2005, 367) states that their work “…

involves making important decisions: resource generation and allocation, institutional acquisition, investment and disposal, about the recruitment of academic and other staff, about creation, closure and merger of departments, and about external roles and relationships. ” Decision-making processes, or ways to approach strategic issues depends on the commitment of leadership.Leadership ultimately is responsible and must be committed to the process (Mintzberg, 1994a). Q2. Analyze the impact of Management and Leadership style on Strategic Decision? The impact of independent variables of age, education and type of branches of four leadership styles in the organization and the fundamental features such as commitment, satisfaction, communication and effectiveness subdivided into 4 parts, namely: the impact of directive leadership style, empowering leadership style, transformational leadership style and transactional leadership style.The influence of leadership style on job performance, organisational commitment and satisfaction has been well established (Breckenridge, 2000; Vries et al. , 1998; Cairns, 1996).

While leadership style has an impact on organisations, department, and teams, as well as work climate and atmosphere, leaders who want the best results should not rely on a single leadership style (Goleman, 2000). Empirical evidence has been produced whose demographic variables such as years in organisation, age, level of education and the duration of leadership (Chen & Francesco, 2000;Mathieu & Zajac, 1990) can have significant impact n organisational commitment. Sommer et al. (1996) revealed that position, tenure and age were significantly related to employee commitment for korean subjects, which were consistent with the western results.

Mitchell (2000) suggests that several factors account for generational differences in the attitudes and behavior of workers. The level of education and age were identified as important determinants. He suggests that the level of education influences people’s values, wants and needs and makes them think and behave differently.Age, on the other hand, tend to give greater or lesser degree of expression of individualism among the workers with the younger generations feeling more comfortable exhibiting individualistic behaviours. It is interesting to observe, under directive leadership, that the interaction of age and type of organizational structure in combination with the satisfaction, commitment, communication and effectiveness, in the present organisation is positively and statistically significant.Older leaders can draw on their years of experience to specifically make decisions with greater degree of confidence which younger managers do not seem to possess. Empowering leadership style is the extent to which the managers attain desired objectives by leaning subordinates or others to make their own decisions, share a consensual decision-making process with their subordinates or others to achieve their objectives.

In this scenario, the resulting decision is a joint one between the managers and subordinates.Transformational leadership style, on the other hand, shares a consensual decision-making process with their subordinates or others to achieve their objectives. In this scenario, the resulting decision is a joint one between the managers and subordinates. Therefore, the managers that hold a University degree, use both of the two leadership styles and data shows that, they have a positive relation with the satisfaction, commitment, communication, and effectiveness.Transactional leadership style is the extent to which the managers discuss matters with their subordinates or others before they decide what to do to achieve unit objectives. According to George (2003), to be authentic in your management behaviour means that you have to develop your own style in accordance with your personality and character.

Whetten et al. (2000) emphasized the importance of intrapersonal skills for effective management. This means, according to their perspective developing self-awareness on the basis of a thorough analysis of one’s strengths and weaknesses.Understanding the interplay between people’s preferences and their day-to-day workplace behaviour is crucial for designing and implementing effective individual development efforts (Berr et al. , 2000; Riding and Rayner, 1998).

People can be trained to adopt strategies to overcome the weaknesses of their styles in specific situations (Armstrong and Sadler-Smith, 2006; Hough and Ogilvie, 2005). Another limitation is that the sample of the managers was examined in a spectrum of four leadership styles. If the spectrum of leadership styles was drawn from a wider range, it is possible that the results would be different.Furthermore, it can also be of interest to study managerial styles from the perspective of co-workers (subordinates, peers, supervisors), as they are in a unique position to provide valuable behavioural assessments for two reasons (Berr et al.

, 2000). On the other hand, colleagues are often influenced by the consequences of the focal person’s actions. On the other hand, they can observe this behaviour over time and in a variety of situations.

Q 3. Assess the effectiveness of adapting of leadership style to different situation? trategic decisions and performance, are partially predetermined by the features of those who participate in administration This work was based on the premise that in a context of limited rationality, the field of view is limited by the cognitive base and values, thus influencing selective perception and interpretation, and hence management perception and strategy selection. The Upper Echelons Theory # presents an alternative paradigm to that presented by the Ecology of Organizations theory: it presents a set of variables as explanations for the performance of organizations.Here we are going to focus on the variable of leadership style, and how it has been considered in the existing literature on Business Management. # D.

Hambrick, P. Mason. (1984) “Upper echelons: The organization as a reflection of its top managers” Academy of Management Review.

In particular, it has been argued that leadership style should be included in the Upper Echelons Theory # because it has direct effects on the decision making process and on the results of organizations. # D. Hambrick, P. Mason. (1984) “Upper echelons: The organization as a reflection of its top managers” Academy of Management Review.

Similarly, other studies have confirmed that leadership style affects group work processes, the social climate and results. From this perspective, leadership style affects the climate, and the climate affects creativity and productivity, although leadership can also affect productivity directly. # #S. Kahai, J. Sosik. (1997) “Effects of leadership style and follower’s cultural orientation on performance in group and individual task conditions” Personnel Psychology. #G.

Evkall, L. Ryhammar. (1997) “Leadership style, social climate and organizational outcomes”.

Creativity and Innovation Management. Likewise, it has been proposed that different leadership styles have diverse effects on variables such as flexibility, responsibility, standards, rewards, clarity and commitment, and in some cases, on the organizational climate. #D. Goleman. (2000) “Leadership that gets results” Harvard Business Review. In order to understand this, it must be recognized that leadership style influence subordinates, since the leader’s behavior produces reward mechanisms that affect the behavior of individuals in the organization. #B.

Shamir, R. House, y M. Arthur. 1993) “The motivational effects of charismatic leadership:A self-concept based theory”. Organization Science.

Additionally, it has been shown that gender is related to leadership style, and that it also influences decision- making style #D. Park. (1996) “Gender role, decision style and leadership style” Women in Management Review. In a similar manner, it has been shown that the performance of an organization is influenced by the competitive and innovative culture, and that the culture is influenced by the leadership style. Thus the performance of an organization is influenced by the leadership style via its culture. E. Ogbonna, L. Harris.

(2000) “Leadership style, organizational culture and performance: Empirical evidence from U. K. companies”. International Journal of Human Resource Management. In support of the studies mentioned so far, research has been carried out which has shown that leadership style, the processes, the produces and the services, as well as the people and client focus, explain the results of organizations #S.

Rahman. (2001) “Total quality management practices and business outcome: Evidence from small and medium enterprises in Western Australia”.Total Quality Management. It is important to note that there are different styles of leadership, and that it is difficult to establish the supremacy of one particular type. In terms of performance, it has been postulated that the definition of leadership style with regard to a particular decision requires the analysis of a group of factors such as: the relevance of the decision, the importance of the commitment, the likelihood of success, the experience of the leader and of the group, the group’s support for achieving the objectives, and the competence of the team #V. Vroom. 2000) “Leadership and decision making process”, Organizational Dynamics. More recently, it has been indicated that leadership styles are relevant in public organizations, given that they influence the effectiveness of such organizations #L.

Pedraja, E. Rodriguez. (2005) “Organizational Performance on Public Administration and leadership style effects” Conference Proceedings International Business Association.REFERENCESAnyamele, S. (2005). “Implementing Quality Management in the University: The Role of Leadership in Finnish Universities,” Certo, S. C. , & Peter, J.

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