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Abstract This report is comprises on the topic of developing the leadership and strategic management skills. Relation between the strategic management and strategic leadership is clearly defined in the report along with the modern theories of strategic leadership and their advantages and disadvantages are also discussed. The role of leadership in organisation to achieve the efficiency, quality, innovation and HRM, is also discussed keenly. The report also covers the requirements of the successful leadership in the future and the changes to be made in the current leadership standards to meet with the future changes in the business environment are also discussed. Also the techniques required to develop leadership skills in the people are defined and the programme to develop leadership skills in the people of organisation is also proposed in the report.
STRATEGIC MANAGEMENT AND STRATEGIC LEADERSHIP
To understand the differences of both these business terms we need to understand first about definitions of these two terms and also about the strategy, means in which term we can use it.
According to Kotter (1991)
Management: ''coping with complexity by planning and budgeting''
Leadership: ''coping with change by setting a direction through vision and strategy ''
Strategy: "Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the need of markets and fulfil stakeholder's expectations."(Johnson and Scholes).
The whole relation is that strategic leader makes policies and defines the goals/tasks to be achieved and the strategic management works to achieve goals defined by the leadership.
In easy words strategic leader can be a strategic manager but a strategic manager cannot be a strategic leader.
Strategic management very clearly defined by the Huczynski & Buchanan 2001) coordination of the organisation ''a social arrangement for the controlled performance of collective goals''.
In addition with these definitions we easily conclude that leader show the path, purpose, direction towards the success of corporation. It also takes initiatives and thinks about the growth of future perspective.
For a good strategic leadership he also needs to consider about several important things in mind to achieve the goal. These are his main role functions which he has to consider becoming a successful leader.
Purpose or vision
Strategic thinking and planning
Teaching and leading the learning by example
Fitness of organisation according to situational demands
Morale, energy, confidence
A good strategic leader always keeps in mind about Balanced Business Systems Approach. His followers always trust on him so they easily reach on their final destination with success.
Whereas a good strategic management always execute the plan within time line and used the efficiency of their resources maximum, through this technique they can easily achieve targets and goals which are set by their leaders and they can fulfil their dreams.
For doing a good business in modern world you need to take a look on the business strategy very deeply and try to come with new ideas and strategies to compete others but for a successful strategy results it really depends on the strategic management. Good strategic leaders always share their vision with their teams and make them confident about the tasks by giving them energy through moral support and show their self to them as role model. Therefore due to mutual consultation with the leadership and management it is always become easier to take the strategic decisions that must be beneficial.
SITUTATIONAL LEADERSHIP STYLE
Leadership styles can also be adopted to cope with the different situations arising within the company. This style/theory of leadership to cope with the situational matters is developed by Hersey and Blanchard. It is based on the assumption of that leader needs to alter their behaviours depending on one key situational factor - readiness of the employees.
This theory majorly focuses on two leader behaviours:
It refers to the extent to which the leader engages in figuring out the duties and responsibilities of an individual or group. It includes to tell the people what to do, how to do it, when to do it and who is to do it.
It refers to extent to which the leader engages in two way or multi-way communication. It includes listening, facilitating and supportive behaviours.
A leader must be fully aware of the fact that how much its employees are able to do the task using their skills, knowledge, and experiences with the confidence, commitment and motivation towards the achievement of the particular task.
There is a vital impact of strategic management and strategic leadership styles on strategic decisions and it can be a main factor according to circumstances. But in the impact of technological innovation consultative leadership style is more helpful for the organisation because through that style he can get the feedback from sub ordinates what they need to improve the efficiency and results.
There are numerous leadership theories and styles that are widely adopted by the companies currently. Two of the current leadership theories are:
Transactional leadership theory
Transformational leadership theory
Transactional Leadership Theory
The transactional leadership theory is one, which is most widely and commonly used in most organizations. It is based on transactions or deals made between an employee and an organization or between followers and leaders. A transactional leadership is based on a military like clear chain of command with a 'Carrot and Stick' philosophy. It is like a method of running an organisation by means of rewards and punishment.
The basic assumptions of transactional leadership are the following:
People will surely be promoted by reward and punishment strategy.
Once employees are contracted, their whole command lies in the hands of manager.
Chain of commands will work at their best to run the organisation.
Employees must work according to the commands given by the manager.
Advantages: This method works in most of the cases, where employees are motivated by rewards. It is an effective strategy, which works best if the leaders at top levels are of strong personality and capable of making most of the important decisions.
Disadvantages: When people are ruled in strict manner by the manager it leads to:
Create a stressful environment.
Stop the thinking and creative processes.
Increase productivity but with lesser innovations and breakthroughs.
Transformational Leadership Theory
The Bass's Transformational leadership theory stands on leader's character and actions. The main theme of this theory mainly focuses on influencing the subordinates or employees the personality of manager or leader. In this method, the manager or leader acts as a role model for the employers and set examples for its followers. This theory contradicts with the perception made by the transactional leadership theory in which manager acts as a dictator. This type of leadership tends the employees to do respect and trust their leader and believe that their leader is heading them towards the success.
It is more humane and inspirational approach in which manager plays the role of source of inspiration. This theory believes to promote the employees through positive motivation rather than a negative motivation.
The basic assumptions of transformational leadership theory are the following:
Employees will follow the leader who will inspire them without any pressure on them to do so.
Motivation and enthusiasm are the key factors to get job done.
The vision, passion and determination of the leader will transform the followers and they can achieve the tasks together.
Advantages: There are following advantages of the transformational leadership theory:
It creates enthusiastic working atmosphere.
Employees work through self-motivation.
People willing to put more efforts to let the job done.
Everyone wants to play its own role in positive manner.
It is also an exercise of developing new leaders.
People don't do work for the benefits offered only, but they become loyal to their work.
Disadvantages: This theory only based on the abilities of leader to let the people inspired by his character. Leaders of organisation may not be able to influence the work force by their character.
There are following methods and practices through which we can enhance
Human Resource Management (HRM)
Most leaders provide an environment where the people can learn, stretch and share the talent they have. Great leaders always try to transform the beginners in an efficient and effective manner. The three main qualities that a leader must have are:
Capable to diagnose the employees current level and to find its natural ability concerning to the task.
Should provide the sufficient amount of direction and support that is required by the employee.
Identify the responsibilities for the respective employees and show them how they will be provided guidance by the leader.
The quality factor can be enhanced by implementing and practicing the following the factors:
Meaningful Work: People must be clearly told the worth and the connection of their work with the organisation.
Collaboration: Employees must be provided by such an energetic and healthy environment that tends them to provide you with the quality work in collaboration.
Recognition: People should be praised and their efforts and achievements in the tasks should be acknowledged.
Growth: People should be provided by the opportunities to learn, grow, and to develop new skills that lead to advancement in their career.
Fairness: Fairness is an essential factor that must not be forgotten. Fairness should be done with everyone in every matter especially in assigning the work load to people.
Growth Culture: Employees should be provided by the healthy growth culture where they could learn, grow and enhance their skills and show their capabilities and creativity.
Cross-Functional Teams: People should be provided such an environment where they could do work in collaboration with each other individually and in the form of groups. The exchange of ideas creates new approaches towards the tasks.
Innovation Process: People should be provided such an atmosphere where they can share their ideas with leaders without any reluctance.
Metrics and Rewards: There must be appreciation for any new coming ideas by the employee and their effort must be acknowledged.
Human Resource Management (HRM)
In older times people were only hired on checking some basic knowledge by some authoritative persons. But now there are special departments that only work for the recruitment of people. Now teams are formed of leader and some extraordinary skilful employees that assess and recruit new people for the organisation.
REQUIREMENTS FOR SUCCESSFUL LEADERSHIP
There are numerous requirements for a successful leadership in the current business environment. Some of the major requirements are as follows:
Interest in workforce
Defined vision of organization future
Motivation in employees
Leader as a role model
Feedback and control system
Interest in Workforce
A leader must have to take interest in its workforce. People are like backbone of the company whose importance can never by denied.
Defined Vision of Organisation Future
A leader must define the vision of organisation's future to its employees so that they could see themselves with growing career within the company and in the outer world.
Motivation in People
People must be motivated towards their task and should be told that how important their work is for the organisation. Employees should be motivated in a manner that they should realise that they aren't only working for the organisation but for themselves as well.
Leader as A Role Model
It is compulsory for a leader to set itself as an example for its employees. A leader should be like a role model for its employees that sets standards of work for the workforce.
Feedback and Control System
A leader must ask regularly for the feedback regarding the progress in the work and every matter within the organisation. It promotes the concept of brain storming in the organisation.
CHANGE IN BUSINESS ENVIRONMENT AFFECTING SUCCESSFUL LEADERSHIP IN FUTURE
There are following factors that will affect the business environment and the leadership demands. Some of the major factors are as follows:
Change in competitive environment
New ways of thinking about the nature of leadership and leadership development.
Change in Competitive Environment
Leadership competencies will be changing as the competitive business environment changes. There are following critical forces that will shape leadership competencies in the future. These critical forces are:
Need for rapid and flexible organisation
Differing employee needs
The new environment will have greater ambiguity and uncertainty in it. In future leadership management will have to be moulded in such a way that it should overcome the above mentioned crucial forces.
Globalisation of the organisation is a huge factor that will affect the leadership in future. Most organisations are getting globalised. Future leaders must have to be trained in such a way that they could be able to make such strategies that can cope with global issues like regulatory, political and media groups etc., concerning to the organisations.
Future leaders must have to be trained to make such strategies that could cope with the factors involving international markets, world economic trends, and focus on particular regions where the organisation wants to start its programmes.
The rapid changes in technology are very brutal forces that will lead to change the modern leadership. Leaders must be aware of the fact that how can they use the technology in order to develop the leadership standards in an effective manner.
New Ways of Thinking About the Nature of Leadership and Leadership Development
The new perspectives on the nature of leadership may profoundly affect our thinking about leadership development. Leadership and leadership development are seen as inherently social, collaborative and relational processes.
LEADERSHIP SKILL DEVELOPMENT TECHNIQUES
There are numerous methods and techniques that are used to practice in an organisation to develop leadership skills in its employees. Some of those methods and techniques are as follows:
Listening to others advices: It is essential to listen to and understand what other people saying to you. It doesn't refer to agree with them but it is mandatory to get the views of other people around you. It generates more ideas to approach towards the solution of some problem. The people will also feel their responsibilities and contributions towards the benefit of organisation.
Maturity: One should never get emotionally negative with the people, no ranting, shouting or disgracing the people even if you feel angry and upset due to them. One should the maturity in its thinking and control over its temper.
Leading by example: A leader must have to develop its character as a role model for others and it should be a trend and an example setter for its work force. A leader should have the abilities to influence its workforce. Leader must be most hard working among others.
Time management: A leader must be fully aware of the time management factor and must get late in achieving tasks after define time for them. A leader must be able to manage its time in efficient manner and also help and let others to do so.
LEADERSHIP SKILL DEVELOPMENT PROGRAMME
Introducing a leadership development programme is the necessity of the time and the essential demand for the future of business. A leadership development programme plan can be designed by introducing following criteria in the organisation.
Divide people in smaller groups and assign different leaders to the respective groups. This practice will expose the duties of a leader to the people. A head leader will look after all the sub-leaders of the groups. Respective sub-leaders should be defined in the hierarchy so that most people will have the exposure to leadership skill development opportunity. The work done by the sub-leaders must be appreciated and corrected where necessary to guide them in an effective manner and to promote their abilities to work as a leader. In the meantime everyone should be told to practice the following methods that will help people to develop the leadership skills in them in a healthy environment of work.
To help other people when they require from you.
Everyone must be treated equally and fairness criteria should be followed for everyone.
Should be firm in making decisions for good and bad.
Always be responsible for your work and do not put blame on others.
Always try to acknowledge the efforts of the people behind your success.
Don't act like a self-promoting person and put others aside.
Always support other people.
Take feedback from the people on issues and be neutral.
Being honest but sensitive in the way that you give bad news or criticism.
Should be meeting with whatever you promise.
Encouraging others to grow, stretch and show their abilities.
Always try to rephrase your words that delivers the same meaning but in the positive sense.
Should provide a healthy environment to people where they could enjoy the work.
Always take good records.
Planning and prioritising.
Should promote brain storming.
By practicing the following activities people are get trained to be a good leader in the future. The training procedure demands time. It can never be over the night therefore this practice has to be set as standard to do work in the organisation.
This programme of developing the leadership skills in the people of organisation is selected because it doesn't require any special work to do separately from the daily work but the whole system is moulded in such a way that without making any extra efforts and programme, the organisation's environment will turn the employees into great leaders.