Link between Strategic Management and Leadership - Free Essay Example

Realistic Illustration: In 1970  Iceland sprang to life when Malcolm Walker and another bored, young retailer decided to open a shop in an attempt to make their fortunes.   They raised initial capital of just pound;60 to pay one months rent and opened the very first Iceland in Oswestry, Shropshire in November 1970.   In those days, before domestic fridges and freezers became commonplace, Iceland specialised in selling loose frozen food. 1984  Expanding through new store openings and the acquisition of smaller chains, Iceland had 81 stores by 1984. 2010  Iceland again achieved record results for its financial year to March 2010. Ref-www.iceland.co.uk At first the Iceland company start with loose frozen food in a local area, they satisfy their customer, in these present situation the ICELAND use the way to lead their employee,that is their vision and they success. In addition the leader will lead the employees through strategy. Without strategy the leader cannot lead, cannot make their profit. The leader lead their employees how they use their process to lead their employees, these is strategy to reach their goal. The mission is the short, formal written document how the leaders lead their employees, what purpose the leader lead the organization. And leadership is the process how to lead them, this process is strategy.Ref-www.iceland.co.uk Iceland leaders lead their employees for this purpose that is their missions to run their business. To fill up their mission the leader lead employees that is strategy. Objectives, that means the leaders of the company goal. These is the leaders expected what the employees do, how to continue their business, how to act, how they make profit. The Iceland start with loose frozen food, between 1970 to 2011 these 40 years, the key to this success was a strategy of making the business simpler and refocusing on its traditional strengths. The leaders of the Iceland how they continue their all mission, vision, how they act that is strategy to lead their employees to reach their goals. Leadership cannot achieve their objectives without strategic management. 2. Adoption of cause of action: The leader when they implement their rules or activities on their employee to do act that is adoption of cause of action. When a new employee comes to a company, they do not know how to do their activities. Then the leaders give them training how to act, what they have to do to reach their goals. The Icelands leaders always serious about their staff .They always communicate with the employees. They always met the meeting to participate. They making the talking shop where the staff can express their own view about the others services. The Iceland Company provide a leader to take the induction of the new trainee. These is the way how the leader lead their employees to act, these way is the strategy. 3. Navigation of resources There are many resources that the leaders use it on their employees to reach their goal. The resources are, 1. Human Resources 2. Physical Resources 3. Financial Resources. 1. Human Resources: Human resources include interview, hiring the people, training, lay off. In any organization the leader utilize the all human resources. In Iceland, the leader at first advertises the vacancies on internet. Then they take the interview for recruitment. After recruitment they give them induction how to work in properly in this company. After 3 weeks then the leader select them properly who is the perfect for these job in Iceland. These all resources are all written document. In human resources lay off is very important thing like the employees contract of employment, after finishing the induction successfully the leader gives the employee a contract paper for job. They also do the national agreement which the employee operate, and make collective agreement. Through the human resources the leaders navigate the people to reach their goal, which is strategy. 2. Physical Resources: Physical resources include the equipment, vehicles, building, etc. In Iceland the leader has responsibilities how to operate the equipment, machine. The leaders duty to show the employee how to operate. The leaders always give the training how to use the vehicles, building. Through physical resources the leader navigates the people to reach their goal that is strategy. 3. Financial Resources: Financial resources include cost of training, redundancy cost, relocation cost, new building, and refurbishment of existing building. In Iceland the leader always alert about their financial resources. By using the financial resources the leader lead the employee to reach their goal that is called strategy. Leadership is the process on leading strategic management make leadership. Leadership cannot achieve the objectives without strategic management. Leadership go away with the strategic management to achieve the co-operative objectives. Every leadership has strategic function. Leadership is like a driver and strategic management is like car which cannot move with each other. 1.2 THE IMPACT OF MANAGEMENT AND LEADERSHIP STYLE ON STRATEGIC DECISION / MANAGEMENT: In organization every leader has a vision, mission and objectives. The leaders know the vision in the way they lead. As a manager in organization at first, 1. I will start my business in local area. 2. When I can satisfy the customer, I can run my business in long term I have a mission to organize my employees. At first in my organization 1. I will give good customer service 2. I will ensure the good product to the customers 3. I will give the cheap price but quality product 4. To give a good faith on the products to the customer. To reach the objectives I have to utilise the all mission, vision in my organization. Leadership style: Every organization using the leadership style to run the business Democratic/Participating of leadership: As a manager, in KFC I make a talking shop where the all employees can participate to express their individual view. In organization I always make a decision how the employee will work. And one day in the end of every month I encourage the employee to participate to the meeting. I always give the value for group discussion how they do their individual work and how they give me the output from their individual group. I always try to motivate them to reach my goal. 2. Autocratic Style- As manager in KFC I always alert about my group selection .Without good selection of the employee, and without good training I cannot get the output from the group member, sometimes I am very hard to them to get output and sometimes I am very friendly towards them. I always try to motivate them to get the good result, good performance from them. I give them the right direction how to act to reach my goal. 3. Transactional Style: As a manager in KFC I set a performance standard for my employees. By giving them proper training in their individual job. In training I always tell them how to act, how to use the all machine, how to follow the health and safety of food and the environment. In training I tell them how to do and what to do. In addition how they will be able to carry out their performance review for their team. 4. Transformational Style: As a manager in KFC, I motivate and inspiring them beyond their job description. I always look for a change on current situation that will make them smart and intelligent. I always try to change the environment that the employee does not feel bore. They get the inspiration to reach their goal. 5. Lassie fair: As manager in KFC sometimes I have little control some specific job. But I always try to do control my power to complete my job to reach my goal by my employee. 6. Charismatic Style: As a manager in KFC having strong personality, is very important that inspires the followers to act their job properly. Having good communication skill and hard worker, I can easily communicate to my employees very well that attracts them and inspires them to do their job properly. 7. Visionary As a manager in KFC, I think, I am visionary. I have ability to see my company could be in the future rather than the present. In future, I want to see my organization as well known recognised company in the world within 30 to 40 years. To reach my goal I always give the good training to do their act properly. 1.3. HOW LEADERSHIP STYLES CAN BE ADAPTED TO DIFFERENT SITUATION: Every organization using the leadership style to run the business Democratic/Participating of leadership: As a manager in Iceland I make a talking shop where the all employees can participate to express their individual view. In organization I always make a decision how the employee will work. And one day in the end of every month I encourage the employee to participate to the meeting. I always give the value for group discussion how they do their individual work and how they give me the output from their individual group. I always try to motivate them to reach my goal. Autocratic Style: As manager in Iceland I always alert about my group selection .Without good selection of the employee, and without good training I cannot get the output from the group member, sometimes I am very hard to them to get output and sometimes I am very friendly towards them. I always try to motivate them to get the good result, good performance from them. I give them the right direction how to act to reach my goal. Transactional Style: As a manager in Iceland I set a performance standard for my employees. By giving them proper training in their individual job. In training I always tell them how to act, how to use the all machine, how to follow the health and safety of food and the environment. In training I tell them how to do and what to do. In addition how they will be able to carry out their performance review for their team. Transformational Style: As a manager in Iceland, I motivate and inspiring them beyond their job description. I always look for a change on current situation that will make them smart and intelligent. I always try to change the environment that the employee does not feel bore. They get the inspiration to reach their goal. Lassie fair: As manager sometimes in Iceland I have little control some specific job. But I always try to do control my power to complete my job to reach my goal by my employees. Charismatic Style: As a manager in Iceland having strong personality, is very important that inspires the followers to act their job properly. Having good communication skill and hard worker, I can easily communicate to my employees very well that attracts them and inspire them to do their job properly. Visionary As a manager in Iceland, I think, I am visionary. I have ability to see my company could be in the future rather than the present. In future, I want to see my organization as well known recognised company in the world within 30 to 40 years. To reach my goal I always give the good training to do their act properly. 2.1. REVIEW THE IMPACT THEORIES OF MANAGEMENT AND LEDAERSHIP ON ORGANIZATION: Leadership Theory- Great Man Theory: Assumptions Leaders are born and not made. Great leaders will arise when there is a great need. Description Early research on leadership was based on the study of people who were already great leaders. These people were often from the aristocracy, as few from lower classes had the opportunity to lead. This contributed to the notion that leadership had something to do with breeding. The idea of the Great Man also strayed into the mythic domain, with notions that in times of need, a Great Man would arise, almost by magic. This was easy to verify, by pointing to people such as Eisenhower and Churchill, let alone those further back along the timeline even to Mohammad, Jesus, Moses and budho.Ref-www.changingminds.org Behavioral Theory- Assumptions 1. Leaders can be made, rather than are born. 2. Successful leadership is based in definable, learnable behaviour. Description Behavioral theories of leadership do not seek inborn traits or capabilities. Rather, they look at what leaders actually do. If success can be defined in terms of describable actions, then it should be relatively easy for other people to act in the same way. This is easier to teach and learn then to adopt the more ephemeral traits or capabilities.Ref-www.changingminds.org Transactional Style: As a manager I set a performance standard for my employees. By giving them proper training in their individual job. In training I always tell them how to act, how to use the all machine, how to follow the health and safety of food and the environment. In training I tell them how to do and what to do. In addition how they will be able to carry out their performance review for their team. Transformational Style: As a manager, I motivate and inspiring them beyond their job description. I always look for a change on current situation that will make them smart and intelligent. I always try to change the environment that the employee does not feel bore. They get the inspiration to reach their goal. Management theory: Scientific management theory Fredric Taylor on the scientific management theory, later in the 19th and the early 20th century. Taylor was dissatisfied with the workers, ill-directed movement of men. Taylor advocated the following Training of workers as a best practice Workers job must be shared between the workers and management with management doing the scientific side and the workers performing the labour. Each group doing their job. There must significant improvement on productivity. Pay and other reward must link to achievement Faylor to achieve goals can lead to loss. Workers must be trained to be first class -Ref- Guilled hall college note. Democratic/Participating of leadership As a manager, in my organization I make a talking shop where the all employees can participate to express their individual view. In organization I always make a decision how the employee will work. And one day in the end of every month I encourage the employee to participate to the meeting. I always give the value for group discussion how they do their individual work and how they give me the output from their individual group. I always try to motivate them to reach my goal. Transactional Style: As a manager I set a performance standard for my employees. By giving them proper training in their individual job. In training I always tell them how to act, how to use the all machine, how to follow the health and safety of food and the environment. In training I tell them how to do and what to do. In addition how they will be able to carry out their performance review for their team. Charismatic Style: As a manager having strong personality, is very important that inspires the followers to act their job properly. Having good communication skill and hard worker, I can easily communicate to my employees very well that attracts them and inspires them to do their job properly. Most of the leader of an organization follows the theory of Frederic Taylor. Classical Management Theory- Put together by Max Webber and Henry Fayol Max Webber on the Bureaucratic theory Hanri Fayol on administrative theory Max Webber Bureaucratic theory: Webber on the opinion that civilisation was changing to seek technical optimal result at the expense of emotion and humanistic content. Webber principle of ideal bureaucracy: Management based written record through expert training Hierarchy of the boss and the subordinate Management follow stable and knowable rules Provide little interaction between its member Henry Feyol Theory- Fayol focus on the personal duties of management Fayol principle role of management: Forecast and plan-management planning for the future To command-management keeping the institution action and process running To coordinate-management coordinating by harmonising the group effort To control-the activities are performed in accordance with appropriate rules and procedures Other principles of these theories Specialisation of labour Authority with responsibility Discipline Ref-Guilled hall College Note # Planning for the future-Icelands vision is to be world-wide recognised company. Low price but good quality food. Visionary As a manager, I think, I am visionary. I have ability to see my company could be in the future rather than the present. In future, I want to see my organization as well known recognised company in the world within 30 to 40 years. To reach my goal I always give the good training to do their act properly. #To command-the leader of the Iceland give the guidance to their employees right direction #To coordinate-by harmonising group effort Iceland coordinate to each branches to others to their employees human resources management to reach their goal. #To control-without direction the ship cannot reach their destination, like that the Iceland has developed their different rules and procedure to control the employees. Transactional Style: As a manager I set a performance standard for my employees. By giving them proper training in their individual job. In training I always tell them how to act, how to use the all machine, how to follow the health and safety of food and the environment. In training I tell them how to do and what to do. In addition how they will be able to carry out their performance review for their team. Human resources include interview, hiring the people, training, lay off. In any organization the leader utilize the all human resources. In Iceland, the leader at first advertises the vacancies on internet. Then they take the interview for recruitment. After recruitment they give them induction how to work in properly in these companies. After 3 weeks then the leader select them properly who is the perfect for these job in Iceland. These all resources are all written document. In human resources lay off is very important thing like the employees contract of employment, after finishing the inducti on successfully the leader gives the employee a contract paper for job. They also do the national agreement which the employee operate, and make collective agreement. # Specialization of labour-that means right person to right place. The Iceland leader always selects the right people for right place. Charismatic Style: As a manager having strong personality, is very important that inspires the followers to act their job properly. Having good communication skill and hard worker, I can easily communicate to my employees very well that attracts them and inspires them to do their job properly. #Authority with responsibilities-it helps every employees to show their ability to do their duties. In Iceland every year the leader does the manager review, to disclose the quality for activities of their employees? It helps to employee to get the promotion in their position. #Discipline-It is very important for every organization. The leader of Iceland, they always make the routine for employees to do their duties timely and to control their management. 2.2 A LEADERSHIP STRATEGY THAT SUPPORT ORGANIZATIONAL DIRECTION In organization every leader has a vision, mission and objectives. The leaders know the vision in the way they lead. As a manager in organization at first, 1. I will start my business in local area. 2. When I can satisfy the customer, I can run my business in long term I have a mission to organize my employees. At first in my organization 1. I will give good customer service 2. I will ensure the good product to the customers 3. I will give the cheap price but quality product 4. To give a good faith on the products to the customer. To reach the objectives I have to utilise the all mission, vision in my organization. Leadership style: Every organization using the leadership style to run the business Democratic/Participating of leadership: As a manager, in KFC I make a talking shop where the all employees can participate to express their individual view. In organization I always make a decision how the employee will work. And one day in the end of every month I encourage the employee to participate to the meeting. I always give the value for group discussion how they do their individual work and how they give me the output from their individual group. I always try to motivate them to reach my goal. 2. Autocratic Style- As manager in KFC I always alert about my group selection .Without good selection of the employee, and without good training I cannot get the output from the group member, sometimes I am very hard to them to get output and sometimes I am very friendly towards them. I always try to motivate them to get the good result, good performance from them. I give them the right direction how to act to reach my goal. 3. Transactional Style: As a manager in KFC I set a performance standard for my employees. By giving them proper training in their individual job. In training I always tell them how to act, how to use the all machine, how to follow the health and safety of food and the environment. In training I tell them how to do and what to do. In addition how they will be able to carry out their performance review for their team. 4. Transformational Style: As a manager in KFC, I motivate and inspiring them beyond their job description. I always look for a change on current situation that will make them smart and intelligent. I always try to change the environment that the employee does not feel bore. They get the inspiration to reach their goal. 5. Lassie fair: As manager in KFC sometimes I have little control some specific job. But I always try to do control my power to complete my job to reach my goal by my employee. 6. Charismatic Style: As a manager in KFC having strong personality, is very important that inspires the followers to act their job properly. Having good communication skill and hard worker, I can easily communicate to my employees very well that attracts them and inspires them to do their job properly. 7. Visionary As a manager in KFC, I think, I am visionary. I have ability to see my company could be in the future rather than the present. In future, I want to see my organization as well known recognised company in the world within 30 to 40 years. To reach my goal I always give the good training to do their act properly. 3.3. THE METHOD TO REVIEW CURRENT LEADERSHIP REQUIREMENT: 3.2. THE DEVELOPMENT OF THE FUTURE SITUATION REQUIRING LEADERSHIP: In an organization the leader needs to develop and improve their skills. No man can bear with at all skills .So the leader who leads the people, at first he needs to improve their skill. In these situations some essential activities he needs. At first he needs training. Ensuring the leader has right skill for crucial to growth and success of business. Training can increase: Improve customer satisfaction Increase productivity Increase profit Improve motivation Arrange the seminars that the leader can easily acquire the knowledge, how they improve themselves day by day. In seminars the leader can do the research on their work that helps them to acquire the knowledge. IN practical they can practice some activities that can helps to improve their knowledge, ideas to improve themselves. These improvements will help to reach their goal. 4.1. THE DEVELOPMENT OF LEADERSHIP SKILLS FAR SPECIFIC REQUIREMENT In an organization the leader needs to develop and improve their skills. No man can bear with at all skills .So the leader who leads the people, at first he needs to improve their skill. In these situations some essential activities he needs. At first he needs training. Ensuring the leader has right skill for crucial to growth and success of business. Training can increase Improve customer satisfaction Increase productivity Increase profit Improve motivation Arrange the seminars that the leader can easily acquire the knowledge, how they improve themselves day by day. In seminars the leader can do the research on their work that helps them to acquire the knowledge. IN practical they can practice some activities that can helps to improve their knowledge, ideas to improve themselves. These improvements will help to reach their goal. 4.2. THE USEFULNESS OF METHODS USE TO PLAN THE DEVELOPMENT OF LEADERSHIP SKILLS Training can: Increase productivity and quality of work Increase profits Reduce staff turnover and absenteeism Improve customer satisfaction Improve motivation Training that achieves these results is typically: linked to business goals and performance part of a company-wide strategy focused on setting tangible objectives for employees Part of a company policy, which sets out who is responsible for planning, implementing and evaluating training. Business of any size or sector can easily align the framework with their existing business planning model. Through this model, organisations are encouraged to work towards continuous improvement. Ref-www.businesslink.gov.uk