Greenwich London College

EDEXCEL BTEC LEVEL 7 EXTENDED DIPLOMA IN STRATEGIC MANAGEMENT AND LEADERSHIP

UNIT 1: DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS

ASSIGNMENT TITLE Management, Leadership, Leadership Strategy and Planning for Leadership UNIT CODE: F/602/2058

JAN 2013

Assessor: Yahaya Alhassan

Submit by: Shyam Hari Maharjan Student ID: 4481

Table of Contents
Introduction ................................................................................................................................ 2 1.1 The Link between Strategic Management and Leadership .................................................. 2 1.2. Analyse the impact of management and leadership styles on strategic decisions .............. 3 1.3 Evaluate how leadership styles can adapt to different situations ......................................... 3 2.1 Review the impact of selected theories of management and leadership on organisational strategy ....................................................................................................................................... 4 2.2 Create a leadership strategy that supports organisational direction ..................................... 5 3.1 Use appropriate methods to review current leadership requirements .................................. 5 3.2 Plan for development of future situations requiring leadership ........................................... 6 4.1 Plan the development of leadership skills for a specific requirement ................................. 7 4.2 Report on the usefulness of methods used to plan the development of leadership skills .... 9 Conclusion ............................................................................................................................... 10 References ................................................................................................................................ 11

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Introduction Since change is the function of leadership, being able to generate highly energized behaviour is important for coping with the inevitable barriers to change. Just as direction setting identifies an appropriate path for movement and just as effective alighment gets people moving down the path, successful motivation ensures that they will have the energy to overcome obstacles. (Kotter, 2012) The difference between managers and leaders is that managers not easily accept any changes relatively they believe in stability but leaders believe to bring changes. A leader has vision and strategy to change while the manager has plans to execute and implementation (Kotter, 2012). 1.1 The Link between Strategic Management and Leadership Strategic Management is known as identification and development of the strategies, which managers can execute so as to achieve better performance and a competitive advantage for organizations. In another word; Strategic Management is a way in which top level management sets the goals and proceed about attaining it. It deals with making and implementing decisions about the future direction of an organization (Guide, 2012). Tim Hannayan defines Strategic management as a composite of actions as well as decisions aimed at formulating and implementing strategies. . Such a strategy provides a competitive superior linkage to the organisation with the all focused on achieving the organisations objectives (Prasad, 2009). Strategic leadership is the process of influences individuals and groups of people in the organisation, helps them in the establishment of goals, and guides them towards achievement of those goals, thereby allowing them to be effective (Arnold & Arnold, 2009) Leadership is The ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organisation. (House et al., 1999) Leadership is The behaviour of an individual directing the activities of a group toward a shared goal. (Hemphill & Coons, 1957) Strategic leadership plays key role in responding to the challenges which businesses have to face due to rapid changes in technology, growing competition and globalization (Adair, 2010). The change is the role of leadership and strategic decision means decisions leading to extensive changes in management processes. Hence, Strategic management and Leadership are closely linked. In fact, the term leadership and strategic management are similar because a leader plays key role like initiating, planning, supporting, controlling, evaluating, etc. Their other responsibilities include building, developing and maintaining a team achieving a common goal by keeping the individual member of the team motivated (Griffin, 1999) In addition, strategic management is a process of directing technological, financial, material and human resources of an organization for empowering it and its stakeholders in achieving
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specified target efficiently and effectively. Strategic management is a wide term in comparison to leadership as far as scopes are concerned because leadership is mainly limited to organizing, directing and supporting individuals or the human resource in order to achieve the specified goal whereas strategic management refers to all resources with an organization. 1.2. Analyse the impact of management and leadership styles on strategic decisions According to Hughes et. Al. (2005) there are various types of leadership styles such as Autocratic, Bureaucratic, Charismatic, Democratic and Laissez-faire. Leaders can use appropriate style based on their belief, values and preferences as well as the organizational culture to make a strategic decision. 1) Autocratic leadership style: This style is used to giving instructions such as telling people what to do and how to do. The manager should take all the decision themselves without consulting others, which is quick in decision making for strategic direction. But the impact of this style, employees of the organisation are not happy and inspired because they have no right in decision making. 2) Democratic Leadership: In this style leaders included the team member in the decision making process as much as possible to achieve organisational goals. The leaders are open minded and happy to build a good relationship with employees. Because of huge involvement, the decision process is getting slow, which can cause delay in grab the business opportunities. 3) Charismatic Leadership: The charismatic Leader influence and motivate the followers toward organisational goals through its outstanding personality and charm. In the result, the employees will fully support the leader what they decide to lead the organisation in a specific direction. This quality is very less in leaders but can be very successful in motivating others to do things to support them. 4) Laissez-faire Leadership: The leader trusts the team members and leave them for making a decision when appropriate and supervise them. However, the leader is still responsible for the decision made by them. The impact of this style is that others managers should get change to learn some new ideas and strategies from the leader, which can enable them to make a right decision by owner for the achievement of organisational goals. 1.3 Evaluate how leadership styles can adapt to different situations There are different types of leadership styles and we can use appropriate one or mix it to handle different situations. (Glenn Rowe, 2009) explains a leader who combines various styles to handle particular situation is called a Strategic leader. In the situation of restructuring the company Air Canada, Milton adopt a charismatic leadership style where he has ability to influence followers, influence that create a shared vision and an understanding of what is to be achieved. Also, the leader used democratic style to participate people to support his vision and develop good relationships in order to ensure the viability of the organization. He articulates a compelling vision, and then empowers and energize followers to move towards it. He formulates the good structures of the organization
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with team participation to make a decision and shape their vision based on their values, beliefs, and sense of identity helps him to return back the position of market share within a year. For example: During the war a chief commander has needed to make a quick decision as well as at the time of natural calamities there is no sufficient time to discuss with other people, in this situation autocratic style will be the best option.

In the case of Research and Development project running by the organisation, the highly qualified, trained, skilful and professional people working together for the achievement of organisational common goals. So that Laiseez-faire style is most appropriate to cooperate and delicate the authority to them because all of them were aware about their roles and responsibilities. In the situation of changing new technology in the organisation, employees should able to accept the change. So that charismatic style is most appropriate to influence the employees and follow the guidelines what leader ask them to do. This most important course of action to accept change happening in the organisation. 2.1 Review the impact of selected theories of management and leadership on organisational strategy (Bolden, et al., 2003) explained a review of the leadaship literature disclschoolan cthoughtg series of scool of though from Great Man and Trait theories to Transformational leadership. While early theories tend to focus up the features and manners of successful leadership, later theories begin to consider the role of followers and the contextual nature of leadership. Great Man Theories: People believe that a leader is extraordinary people, born with inborn qualities, intended to lead. The impact is that leaders can capable to make a decision on own to develop a strategy to lead the organisation in the right direction. Trait Theories: The lists of traits or qualities are associated with leadership exist in great quantity and continue to be formed. The good impact is that leaders can identify traits and quality ( such as integrity, empathy, assertiveness, good decision-making skills, and likability) to leading others to develop organisational strategies (Ltd, 2013). Behaviourist Theories: These theory focuses on what actually leaders do rathan than their qualities. They were observed different patterns of behaviour and categorised as style of leadership. This leadership behaviours impact their performance, how they used different behavioural styles to handle various situations. Transactional Theory: This approach emphasises on the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of contract through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers. The good impact is that leaders can develop
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good relation with the employees, so that they have a common goal to achieve the organisational strategy. Transformational Theory: The central concept of this theory is changing and the role of leadership in envisioning and implementing the transformation of organisational performance. The transformational leadership can initiate a higher order which influences their followers to the development of trust (Avolio, et al., 2003). 2.2 Create a leadership strategy that supports organisational direction (Pasmore, 2011) defined a leadership strategy makes explicit how many leaders we need, of what kind, where, with what skill, individually in what fashion indivudually and collectively to achieve the total success we seek. Leader strategies are based on the analysis of the current situation and an informed view of the future. a) Leadership strategy: Leaders can able to adopt various leadership styles (Democratic, Bureaucratic charismatic and participative) to articulate the vision and mission of the organisation to achieve its goals. b) Coaching/mentoring strategy: Leader must have sufficient qualities of coaching and mentoring skills to convince their team to direct where organisation need to go. c) Employee engagement strategy: Leaders should engage their employees in various activities in the meaningful way. The successful engagement of them helps leaders for continuous development and able to receive feedback on what does or doesnt work as they attempt to create direction, alignment and commitment. d) Self Development Strategy: Leaders can motivate their employees to develop themselves for future skill requirement for organisational direction. Which is doing through actively participate in training and development, reading self learning guidelines, involves in seminar, conference etc. e) Communication Strategy: Leader should able to well communicate with others, in terms of circulation of new ideas, flows of information, guidelines from top to bottom which can be easily understood by employees for giving hands to hands for the organisational good performance. 3.1 Use appropriate methods to review current leadership requirements There are lots of methods to analyse the leadership requirements in the current situation, that are GAP Analysis, Performance Appraisal, 360 Degree Feedback, Personal Review etc. GAP Analysis is used to identify gaps between current and future leadership requirement for organisational direction (Pasmore, 2011). It helps to analyse what kinds of skills/behaviour required by leaders during the internal development of organisation and hiring a new person. GAP helps to identify leaders have collective capabilities required to handle current problems such as uphold company policies, maintain product quality. When this issue is new for people, leaders should develop appropriate policies and guidelines which can be easily followed by the people to do that job together.
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360-Degree Survey Feedback: 360 degree feedback is essential for overcoming leader blind spots and enhancing their overall emotional intelligence (Goldman, 2000). This approach provides lists of behavioural-based strength and weak areas are identified by feedback collection from superior, peers, direct reports and from customers. It shows which behaviours a leader needs to enhance job performance, and which current behaviours should continue as usual (Green, 2002). (NHS, 2013) described 360 degree feedbacktool a powerful development tools. It helps leaders to understand how others interpret the behaviour he/she are exhibiting. This feedback is useful for leaders understand, peoples perception of their behaviour. If people realised their behaviour skills need to improve for organisational development, leaders must develop leadership and management skills for influence people more effectively. Performance Appraisal: Performance appraisal is also useful methods to review current leadership development required in the organisation. This is used as a top down managers to employees or upward appraisal, employees to managers (Association, 2007). This appraisal helps to discover what types of qualities, skills and behaviours required for leadership to address some issues such as delegates responsibility, makes timely decisions, allocate right resources, communicates policies and coaching/mentoring employees to develop. 3.2 Plan for development of future situations requiring leadership A plan is an essential tools to develop leadership in tackling the future situation and lead an organisation in their mission. Leadership development initiates to offer performance support and applications of skills through training, coaching and mentoring, action learning, and developmental assignments (Hernez-Broome & Hughes, 2008). (Burgoyne, et al., 2005) explained the most approachable methods to develop leadership for future situations. Merger and Acquisition: The most of the hardest situation for the organisation is merged or acquired. It is a very hard decision for the organisation. The leader can able to predict market trends and adapt best techniques to calculation of possible damage A leader has a long term vision, sufficient knowledge and great passion to tacle this situation. The leader can decide, which way was favourable for their employees and organisation at the time of a merger or acquisition. Plan changes in New Technology: Change is essential for every organisation to sustain their business in a rapidly changing environment. But it is hard to adapt easily because of some factors not ready to accept it. The key factors are their employees who did not accept changes of new technology because they were only used to work with the old system. For successful implementation of change, the good leadership is required, who can able to provide adequate knowledge to the employees through coaching, mentoring and counselling to get ready for accepting change heartly.
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Recession Time: This is the worst situation for all the organisation, most of organisation faces financial difficulties during this period. To come out of this situation, organisations can able to control their budget effectively and wisely. The highly experience and strong leadership will require for period of recession who have a clear vision with price cut strategies. Natural Disaster: The other important situation that required a leadership is a natural disaster. During this period most of employees and organisation are in a state of obscurity. They lose their confidence and unable to perform their jobs competently. Thats why the dedicated leadership is required, who have sufficient skills and qualities to overcoming the difficulties as well as reinstate the confidence of the employees. 4.1 Plan the development of leadership skills for a specific requirement The leadership skills are essential for managing and handle various situations arises in the organisation. The appropriate planning of developing leadership skills during the working period is really helpful to come over from particular situation and directly beneficial for the organisation. Suppose HR Manager of Marks and Spencer is planning a team development program in their store. The manager believed that after successful completion of that program staff member will be highly motivated, self directed and enhanced the performance. However M&S could easily achieve its objective of increase the sales. HR Manager plays the role model to formulate a good team member. Therefore he must have adequate knowledge about Team Development stages and relevant leadership skills to manage properly. The Tuckman four stages; Forming, Storming, Norming and Performing are appropriate stages to develop good team in the M&S. More less Manager also needs plan to develop communication, coaching/mentoring, self development and leadership skills. Which helps him to run that program smoothly and effectively on time. Thus he should need to develop theoretical concepts as well as skills which helps him to handle upcoming problems. In this way he can use his skills at the right time to achieve desired outcomes of strategic goals. The manager should use Tuckman Team development stages with appropriate leadership skills to develop a highly inspired team. Tuckmans team development Stages 1) Forming Stage Communication Skill: The communication skill is most important course of action to embed information while manager forming the group of people to develop the best team in the M&S. The manager must have this skill to communicate well with team members to make them clear about organisational goals and the objective behind team development is achieving high performance. The initial meeting is necessary to introduce each other and well known about the team member. Some how they understood their roles and responsibilities pushing them to achieve strategic goals. The manager must develop this skill by enrolling in a formal college course, reading various techniques and participating in group discussion, seminar, workshop
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etc. The involvement in such activities helps manager to develop communication styles and techniques which are useful for sharing ideas, information in various situations.

2) Storming Stage: Coaching/ Problem Solving Skills: The storming stage is crucial to build up a good relationship with the team. The manager should establish good image and trust among them. To maintain that position manager must have or need to develop coaching and problem solving skills. The coaching skill is useful for managing on the job or off the job training to establish appropriate processes and good structure. Where a manager have an opportunity for understood individuals views and ideas for development of good team. Further more guided them understanding the purpose and provide support to encourage to achieve its goals. The successful completion of this stage problem solving skill is also required for analysis the cause of problem/conflict. Once a manager identifies the reason of conflict dealing wisely so team could not face the same problem in coming days. However the team is more enthusiastic and eager to learn positive attitudes through team work and build up confidence about their future are bright. The manager should develop these skills by doing a job rotation, involving in group discussion, reading self directed material and consult with expertise. These activities have helped manager to learn necessary methods, techniques and ideas develop such skills capable him to direct the team in desire direction. 3) Norming Stage: Time Management Skill/Motivation Skill: The manager needs to develop Time management skill and motivation skill to process norming stage. The efficient way of managing available time lead in getting success. Somehow manager should set tentative time period to form a new team and delegate the responsibilities. Thus are feeling more responsible and committed to running the stores effectively. More less they are fully socialized together and ask help from each other and able to provide constructive criticism. However motivation is the key part to inspire them for best performance and sharing the progress they are very closed to desired goals. The way manager can adopt to develop these skills are training and development, engage in self development modules and taking a short course about management. 4) Performing Stage: Monitoring/Motivation skills: In this stage team are more conscious about the achievement of strategic goals. Though manager should require monitoring and motivation skills to accomplish this stage. The close relation with the team and continuous monitoring their activities helps manager to know their performance level. Which is more helpful for manager at the time of delegate specific work and role among the team. Providing necessary support and encouragement to build up the self confidence of the team. However, highly motivated team capable to achieve higher performance. And their desirability leading them toward
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achievement of organisational goals. The manager should develop this skill by doing online courses, get involves in research and development training and consulting with expertise. 4.2 Report on the usefulness of methods used to plan the development of leadership skills The leadership skills are essential skills to perform several activities efficiently and effectively. The methods used to develop such skills are playing a vital role. Therefore choosing the right methods enriched the manager with those required skills on time. So manager is more likely success in the team development plan and prove himself as a good leader for M&S. The qualities of decision making, well planning, directing the team, setting up a new goals ensure M&S will achieve its desirable strategic goals. The achievement of success depends upon the methods used to develop leadership skills. The report explains how useful those methods develop such skills of Manager to achieve its organisational goals. College course: The formal study in college courses helps to develop adequate knowledge about communication techniques, time management and motivation skills. The college course is useful to learn theoretical concepts, methods and techniques which help manager to develop different skills such as task planning, setting deadlines, decision making, negotiation with suppliers, report writing and dealing with stakeholder etc. But manager needs to spend a lot of time in education rather than daily task. Futhermore more budget is required to invest in managers study. Job rotation: Job rotation is a good method to develop managerial skills such as coaching, problem solving, monitoring etc. It is useful for learning techniques of managing conflict, monitoring the achievement of group performance and better understanding about departmental roles and responsibilities. However it is time consuming and expensive because other department heads should need to involve during job rotation. Development activities: The seminars, workshop and training program are a popular method to develop communication, problem solving and many more. The usefulness of methods is that manager enhance their efforts to find workable solutions and learn new ways to approach problem solving. But organising the workshop is costlier because expertise is required for running the session. Online development: The manager can develop monitoring skill by participating in the self directed program through internet or internal links. These services provide a range of facilities such as self-directed learning and tracking of outcomes. Therefore manager can quickly develop their interpersonal skills. The drawback of the online development process is time taking and extra budget need to allocate for running this program.

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Conclusion After learning of this unit, I was able to understand the relation between strategic management and leadership. Leadership is the inborn character of a leader who can influence their followers to do things done. But management is the techniques of managing resources wisely to achieve organisational goals. A good manager can become a leader by acquiring some necessary skills through different methods. The leader can adopt various leadership styles according to the situation. Only single style is not sufficient for leading the organisation, so managers can use democratic and laissez-faire style at the same time. There are different theories of leadership such as transactional leadership, transformational leadership charismatic leadership, situational leadership, etc. All this theory gives a solution for leader in particular situations. The good leader always tries to implement suitable style and strategies to lead the people and give better direction for the organisation to achieve their goals. There are different ways to increase the leadership skills for future requirement. So there should be a good plan to develop these skills. This plan must cover the present and future requirement of leadership, which helps organisations to lead toward their future goals.

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