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Management is the group of people who make decisions on how the business can be run and profitable in all dimensions of the organizations or company according to Gold (2010). In fact, these individuals who are involved in the decision making of the organization and are called the management are responsible and accountable before the strategic leadership in the organization.
The second definition that can be given about the management is the initiative and maintenance of an investment portfolio in the business organization in all the ways to success achievements according to Harrison (2002). This is the management in which the organization deals with dealing of matters in different sectors for improving the productivity and profitability in every area of the business of the organization.
Johnson (1992) opines leadership is quality or art of influencing others or motivating a group of people to the task in order to achieve the goals in the business organizations. Leader is the one who holds the qualities of the leadership and is also the person who inspires others and directs them to do something extraordinary for common goals. People not only follow the leader but they also do that willingly and happily. True leader takes his/her people with and step forward with the great morale and team spirit.
LINK BETWEEN LEADERSHIP AND MANAGEMENT:
Bill Gates is the leader and pioneer of Microsoft Inc, but he is not a manager. This statement shows the position of the leader and the manager. The manager must have the leadership skills but on the contrary for the leader it is not compulsory to have the managerial skills as these skills are important for the leader but the vision is the goal of the leader but the manager works for targets and tasks for the specific time period and for the certain period of time.
Leadership and management both are important in the organizations or even in the industries. Leaders are welded to the performance and it is also the duty of the leaders to increase the productivity in different sectors of the organization. Management with good leadership qualities and the leadership with managerial competencies is the demand of the organizations around the globe.
Task 1.2 Analyse the impact of management and leadership styles on strategic decisions.
IMPACTS OF MANAGEMENT AND LEADERSHIP STYLES ON DECISIONS:
Dynamic leadership always does its best to influence the environment and the environment is the situation in which the decisions are to be taken as the needs arise in the organizations. There are different styles of management and leadership in the business world.
PARTICIPATIVE MANAGEMENT AND LEADERSHIP STYLE:
Kouzes (2008) states that the participative leadership and management style are open and flexible manner of management where employees have the prominent decision making role in the organization and the participation of the employees is considered as the asset of the organization. So this is very important factor in decision making of the organizational setup.
This style is very much appreciated in progressing and growing organizations. Employees feel responsible and honoured by the leadership which boosts the morale of them in order to complete the tasks of the organization. This leadership style helps in the organization in decision making and when this style is applied, the team work and dignity of the employees come forth and they become more and more productive.
PERSUASIVE LEADERSHIIP AND MANAGEMENT STYLE:
Megginson (2003) opines the Persuasive leadership style is all about the quality of the leader in which the leader convinces people around him/her in all the effective ways to achieve the goals of the organization. This style is not possible if the leader fails to convince other people.
Persuasion is the essential proficiency for all the leaders as they take people to the level where they can perform their best and be more and more productive in the organization. The ideas and approaches of the leader must appeal the people around the leader for the common goals and objectives in the organization. This style can develop the unity in the organization and the employees and if the decision is take by the agreement of the employees then it increases the accountability in the employees in the organizations.
Evaluate how leadership styles can be adapted to different situations.
IMPLEMENTATIONS OF THE LEADERSHIP STYLES IN DIFFERNT SITUATIONS:
Both of the styles stated above are the need of any progressing and developing organization around the globe. Which one is suitable for the organization, depends on the situation from which the organization is passing through.
Most of the bureaucratic organizations being the strict in the rules and regulations make the employees feeling bored and the work becomes just and obligation and burden for them to hold. People lose their creativeness and become like the robot and just commitment becomes a burden for them. These situations give birth to the less productiveness and profit as well.
If in this situation the leadership decides to give the chance of participation and cooperation and promote team spirit then the employees come to know that they are not just the machines but the human beings and everyone is unique and precious in the way he or she is. Everyone in the world has some hidden qualities and the only thing is to give that particular one chance to show what that person has what should be considered while taking the decisions of the different department of the organization.
As this is simple and effective so the organizations must follow these styles. Now the persuasive is the manner in which the employees might come to know that they are special because the leadership will persuade the employees or staff with the highly professional and reasonable way. So the persuasive and participative both the styles go together in the organizations have the situation in which people feel being bored.
2.1 Review the impact that selected theories of management and leadership have on organisational strategy in your chosen organisation.
MANAGEMENT AND LEADERSHIP THEORIES:
Leadership skills are the essentials for the leadership in any business organization. If the organizations promote the leadership development methods then the success is obvious and there is no way that the situations may come in the pace of success. There are different leadership theories by which the effectiveness and need of the leadership become more and more essential. The few of the theories are given below to clear the picture of leadership in organizations.
This theory states that leaders everywhere behave in the certain way of their leadership which depends upon the situation of the time and the scenario of the company. Moon (2000) opines there can be different situations in which there might be possible leadership behaviour but these behaviours also depend on the situation of that specific time period.
In the organizations, this theory is very popular and effective because it goes with the flow and need of that particular time and the best decision is the decision that is done according to the time and demand of the organizations.
This theory has very close resemblance with the first theory (Situational Theory) and this theory is all about the alternatives and options in order to deal with the problems that come in the way of the success in any dimension of the organization. Mumford and Gold (2004) state leadership must have answer to every question arises in the growth and this is only feasible and possible when the contingency theory is applied in the organizations.
Tesco Plc has high rate of such a dynamic leadership which always have alternatives and options as well as the answers to the questions that come in the situation of the danger or need of the organization.
Treasy (1998) opines the participative leadership and management style are the open and approachable manner of supervision of the organization and the monitoring with the passion and comforts is really seen in this leadership theory. Everyone in the organization feels pride and honoured to be involved and get their precious opinions be answered in the company really appreciates them. So this theory is very important when the employees feel burden while working in the organization.
Tesco plc is promoting this theory in every departments and gives right to all of its employees to take part in new strategies and planning as everyone has got the right to comment and give suggestions and drop their precious opinions in writing form and the suggestion boxes everywhere in the stores.
CREATE A LEADERSHIP STRATEGY THAT SUPPORTS ORGANIZAITONAL DIRECTION:
INNOVATIONS IN THE ORGANIZATION:
There are different strategies that give the direction to the organizations. One of them is the "INNOVATION" that is very effective and the most important factor of the organization. Every organization has to develop the creativeness that develops the innovation. This strategy is the unique and potential strength of the organization.
Gold (2010) opines the process in which an idea of any individual is translated into a good or service for what people would love to pay and give attention. Companies or organizations have special people who are supposed to do create and bring new ideas in the form of innovation and these creative and innovative leaders are the real assets of any developing organizations.
HUMAN RESOURCE IN ORGANIZATIONS:
Human resource is one of the most effective departments in the organizations that direct the organization in the way of growth and development. There are different human resource activities that are performed by this department in the organizations.
Human Resource Management deals with different issues in the companies, some of them are the most important because of their need and necessity in the organizations. Human resource is the vast department that organizes the major issues in the organizations.
The first activity of the human resource is the Recruitment and Selection in the companies. Harrison (2002) opines that the in the recruitment the duty of the HRM is in various sectors. Firstly, it publishes or advertises the need of the organization or the companies as the vacancy comes in them. This is also the duty of the HRM to contact with the recruitment agencies for the better selection of the candidates in the companies.
After the ads the term comes when the candidates come to the recruitment section and the interviews take place, if somebody passes the interview then it is the chance for that candidate to go further and get the training to join the organization for the post he has applied or for the post the admin believes that the person can perform well according to the capability of the candidate. This is the very important aspect of the companies. If the right people are not coming in the companies then it will be impossible to have more and more innovative ideas in the companies. From the very first stage to the ending stage the HR plays the significant role in bringing the right people in the companies.
The second activity the HRM is the Performance Management which is simply the encouragement of the employees. Johnson (1992) states the performance management is the criteria to check the performance of the employees and then to bring the unity and uplift the morale, there should be the regular behaviour of the appraisals and the rewards by the companies.
The companies do their best to have such an opportunity to arrange the reward system in the organizations. This is very important that the companies can only help the employees if they are the showing their excellent performance in their duties and their responsibilities. Performance of the employees decides who the next for the reward and the encouragement is. Performance management is the main factor in the organizations in the term of reward system of the employees.
In the Tesco Plc, both of these strategies are implemented in order to direct the organization on the way of success and development in all the stores and branches around the globe.
USE APPROPRIATE METHODS TO REVIEW CURRENT LEADERSHIP REQUIREMENTS:
Moon (2000) states Globalization is the system of the interaction among different countries of the world and the purpose of this interaction is to develop the global economy. This unique economy building system refers to the integration of economists and societies around the globe. This also covers the technological, economic, cultural and political exchanges in the organizations and the communications, infrastructure and transportation is also the fruit of this globalization.
There are two types of integration. The first one is called Positive and the second is the Negative integration. The positive integration is used to aim at standardizing international economic laws and policies. In this the countries have their own policies on their tariffs. In the negative integration, Mullins (2010) states negative integration is the breaking down of trade barriers of protective barriers or protective barriers such as tariffs and quotes.
EFFECTS OF GLOBALIZATION:
Different economists gave their different opinions about the effects of the globalization. There are different changes that can be identified through the globalization. The first effect is the improvement of the international trade. There are more and more countries in demand of the products. Second effect is the technological progress which is because of the demands from the customers throughout the world.
Third one states the increasing influence of multinational companies, the companies that have their own subsidiaries in various countries is called the multinational. This is the third effect of the globalization in the business world. Then the fourth one is power of the WTO, IMF and WB. Globalization has these prominent effects everywhere in the world.
Treasy (1998) states the integrity leadership is the best tool of getting the trust of the employees and involve them from their heart and prove themselves as the role model for all the employees around them. This is very important in the organizations to have integrity among the staff so that the environment remain calm and beautiful full if dignity and commitment.
Both of these methods of the requirements of the leadership in the organizational positions and every progressing organization needs to prove that they are rich in terms of their globalization and integrity in all dimensions.
PLAN THE DEVELOPMENT OF LEADERSHIP SKILLS FOR A SPECIFIC REQUIREMENT:
ON THE JOB TRAINING:
The firs development method is ON-THE-JOB TRAINING which is one of the effective development methods in the companies. Mumford and Gold (2004) state that the process of the on the job training is to arrange and the purpose is to enhance the abilities of the employees in the corporate settings of the organizations. The environment in the organization is suitable for the employees and as well as for the leaders to teach and for the employees to learn and understand the guidelines given by the authorities.
There are the reasons that make the on the job training important. In this the leaders demonstrate the presentations which encourage the trainees to get the idea and after that there is the element of the coaching in which the relationship becomes strong and the trainees learn in a beautiful way. In the trainings, the employees can even get the understanding to get the appropriate knowledge about the other departments in the companies.
The second development method is the Organizational Learning which is learning method in the organization which is highly appreciated and required. Mullins (2010) states that the organizations that influence the employees on the regular bases with the knowledge and information. Organizations that promote the practice of the learning are the learning organizations and these learning organizations are run by the HRM because the humans are the main assets in the HRM. So the department does its best to empower the employees with the skills and knowledge.
REPORT ON THE USEFULNESS OF METHODS USED TO PLAN THE DEVELOPMENT OF LEADERSHIP SKILLS:
DEVELOPING LEADERSHIP VERSUS RECRUITING:
Planning and Development methods are explained in the above paragraph. Mullins (2004) opines that the advertisements help the readers to know the vacancy in the companies and the leadership in the organizations also receives the right selection of the employees. This is the first planning method in the recruiting and the effectiveness can be measured with the results or the achievements done by the companies after the exact staffing in any organization. The next is the online recruiting process in the companies.
Megginson (2003) states there are the recruitments which are undertaken with the help of the online recruiting processes. These kinds of recruitments are called the external type of the recruitments. But the other type of the recruitment is the internal and the internal recruitment is the exchanging and the promotions and then the filling of the vacant places in the companies. The effectiveness of the recruitment and selection is monitored and done by the HRM and the results can be seen in the form of the dynamic leaders that are brought every year in the companies by the leadership planning methods.
In the development of the leadership there are two methods. The first one is the on the job training and this method is very impressive and authentic in the companies. If the trainings are given on the job then the employees can learn better and be the best part of the organization. The second one is the organizational learning. There must be the organizations which encourage the idea to make the flexible environment for the employees to get the valuable information and then become the dynamic leaders of the companies. Both of these methods are very important and effective in every situation of the organizational learning processes.
TEXT BOOKS REFERENCES:
Gold, G. (2010). Leadership and management Development. London. Chartered Institute of Personnel and Development.
Harrison, R. (2002). Learning and Development, London. Chartered Institute of Personnel and Development.
Johnson, K, B. (1992). Business Bureaucracy, How to Conquer your Organization's worst enemy, London. The McGraw Hill Companies.
Kouzes, J. (2008). The Leadership Challenge. 4th Edition. London. Jossey-Bass.
Megginson, D. (2003). Continuing Professional Development, London. Chartered Institute of Personnel and Development.
Moon, J. (2000). Reflection in Learning and Professional Development, Theory and Practice, Manchester. Routledge Falmer.
Mullins, L. (2010). Management and Organizational Behavior. 9th Edition. London. Prentice hall.
Mumford, A. and Gold, J. (2004). Management Development. London. Chartered Institute of Personnel and Development.
Treasy, D. (1998). Successful Time Management in a week. Hodder. Stoughton.