Assignment 1

AINUN NAHAR RASHMA_ASSIGNMENT 1

Submitted by

Ainun Nahar Reshma

Sub: Strategic Management

Course Title: Level 7 Diploma in Business strategy and Enterprise

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Introduction

Strategic management and leadership is becoming growing concern for an organization to

compete in the current diverse, complex and competitive business environment. Strategic

management is the approach of an organization’s strategy development and implementation

for the purpose of achieving goals and objectives of the organization (Sadler, 2003). He has

noted that strategic management is key concern that helps the organization to identify and

analyse some of the major issues and concerns, including investigation of strengths,

weaknesses, opportunities and threats; the extent of strategic direction; ability to implement

strategic change; and so on. Leadership is an approach by which employees are managing or

leading by a person, known as manager or leader. In recent times, leadership is becoming an

important concern for the organization to motivate employees and thus increase

organizational performance (Northouse, 2010).

This assignment has been designated in such a way that will cover all of the learning

outcomes of the developing strategic management and leadership skills module. There will be

discussion and explanation of all these tasks through providing a real life example, Virgin

Group, UK.

Thus, the author would like to mention that this assignment will be able to improve

knowledge and understanding of the strategic management and leadership skills both from

academic and organizational perspective.

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Task 1

1.1. Discussion on the link between strategic management and leadership: According to

Maccoby (2000), leadership is an approach in which the leader who is responsible to lead the

organization and people in order to operate and manage the business. He has mentioned that

the strategic management is the process of managing functions and activities while leadership

is the process of managing people and organization itself to achieve organizational goals and

objectives. He has also mentioned following link and/or difference between the strategic

management and leadership-

Table: 1.1. Link and/or difference between strategic management and leadership

Strategic management Leadership

To plan something for the organization by

the strategic manager.

To select talent or skilled people to complete

a particular task by the leader.

To make budget for the organization by the

strategic manager.

To motivate people by the leader.

To evaluate the actions and activities of the

organization by the strategic manager.

To provide support and coaching to the

people by the leader.

To facilitate particular activities and tasks by

the strategic manager.

To build trust and strong relationships among

the people by the leader.

Source: Maccoby, 2000.

Thompson and Martin (2010) have noted that to explain the link between strategic

management and leadership, Sir Richard Branson, the founder of the Virgin Group, and its

strategic management is the great example in the world. They have mentioned that the name

of Branson and Virgin Group’s activities and businesses are closely associated and linked

that represent the strategic management and leadership. They have also mentioned that over

many years, Branson has successfully marketed a range of products and services by

systematically applying the Virgin brand name with the development and implementation of

effective and appropriate strategies as well as most relevant strategic management with the

effective and efficient leadership.

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Strategic management and leadership is an interconnected and interlinked approach within an

organization that has great influence and impact on the operations and management of the

organization (Thompson and Martin, 2010). They have stated that strategic leader, a person

who is involve in strategic management of an organization has following key roles and

responsibilities within the organization-

To manage the business on behalf of all the stakeholders;

To provide direction in the form of mission or purpose;

To formulate and implement changes to corporate strategies;

To monitor and control the operations with special reference to financial results,

productivity, quality, customer service, innovation, new products and services, and staff

development; and

To provide policies and guidelines for other managers to facilitate both the management

of operations and changes in competitive and functional strategies.

Thus, it can be said that strategic management and leadership is closely linked with each

other in relation to achieve organizational goals and objectives through creating,

implementing and monitoring of strategies.

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1.2. Analysis of the impact of management and leadership styles on strategic decisions:

Burton and Obel (1998) have noted that leadership style can be described by how the leader

makes decision, handles information, builds relationships with other people, and motivates

and controls subordinates. They have described that the impact of management and

leadership styles on strategic decisions can be assess through following information-

processing and decision-making dimensions-

Preference for delegation;

Level of detail in decision making;

Reactive or proactive decision making;

Decision-making time horizon;

Risk preference; and

Motivation and control.

Based on the management approach and leadership styles, the strategic decisions are made

within the organization. For example, in Virgin Group, the founder, Branson is always

willing to hear from other employees as well as ensuring appropriate people with having

devolved and informal culture for the purpose of focusing on customers and services

provided by the organization (Thompson and Martin, 2010). They have also noted that

Branson has always made sure that he is approachable and the employees with new ideas is

given encouragement and development within the organization and thus make strategic

decisions within the Virgin Group.

Thus, it can be said that management and leadership styles have significant impact on the

strategic decisions within the organization.

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1.3. Evaluating how different leadership styles can be adapted to different situations:

According to Lussier and Achua (2010), leadership style is the combination of traits, skills,

and behaviours leaders use as they interact with followers. Although, leadership style is based

on the traits and skills, the important component is the behaviour, because it is relatively

consistent pattern of behaviour that characterizes a leader. They have mentioned that there are

following leadership styles-

Autocratic leadership style- the autocratic leader makes the decisions, tells employees

what to do, and closely supervises workers. This leadership style is very important in

highly commanded organization.

Democratic leadership style- the democratic leader encourages participation in

decisions; works with employees to determine what to do, and does not closely supervise

employees. This leadership style is very important in service-oriented and customer-

focused based organization.

Job-centred leadership styles- the job-centred leadership style has scale measuring two

job-oriented behaviours of goal emphasis and work facilitation where the leader closely

directs subordinates with clear roles and goals. This leadership style is very important for

the production and manufacturing organization.

Employee-centred leadership style- the employee-centred leadership style has scale

measuring two employee-oriented behaviours of supportive leadership and interaction

facilitation where the leader is sensitive to subordinates and communicates to develop

trust, support, and respect while looking out for their welfare. This leadership style is very

important for non-profits organizations as well as employee based organization.

Thus, it can be noted that different leadership styles can be adapted based on the different

situations.

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Task 1

2.1. Reviewing the impact that selected theories of management and leadership have on

organizational strategy: Olum (2004) has stated that management is one of the most

important human activities within an organization and hence theories of management and

leadership is becoming crucial aspects in relation to develop and implement organizational

strategy. Management is the process of designing and maintaining an environment in which

individuals, working together in groups, efficiently accomplish selected aims (Koontz and

Weihrich 1990). In addition, Olum (2004) added that management covers several things

within the organization, including- planning, organizing, staffing, leading, controlling etc. as

well as to increase effectiveness and efficiency of the organizational performance. So, it is

clear that theories of management and leadership have great impact on organizational

strategy. On the other hand, leadership is also an important aspect to lead people and thus

increase organizational performance through developing and implementing effective and

appropriate organizational strategy (Olum, 2004). He has noted that leadership involves

motivation, leading approaches and communication system by the leader(s) that has

significant impact on the development and implementation of organizational strategy.

Several authors and scholars have developed different theories of management and

leadership. Among them McGregor’s theory of X and Y; Maslow’s theory of hierarchy

needs; Kotler’s 8 step change theory; and Herzberg’s motivation and hygiene theory etc. are

the most appropriate and effective in relation to develop organizational strategy. The author

would like to represent the impact of theories of management and leadership on

organizational strategy as follows-

i. McGregor’s theory of X and Y: The X theory is known as authoritarian management

style and the Y theory is known as participative management style. According to theory X,

the averages people dislikes work and will avoid it he/she can; most people be forced with the

threat of punishment to work towards organizational objectives; and the average person

prefers to be directed, to avoid responsibility, is relatively un-ambitious, and wants security

above all else. On the other hand, theory Y depicts that effort in work is as natural as work

and play, people will apply self-control and self-direction in the pursuit of organizational

objectives, without external control or the threat of punishment, and people usually accept

and often seek responsibility etc.

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ii. Maslow’s theory of hierarchy of needs: Maslow’s theory of hierarchy of needs is

considered as the father of modern management and leadership through motivating employee

as well as developing and implementing organizational strategy. As a result, for adequate

workplace motivation, it is important that leadership understands which needs are active for

individual employee motivation. In this regard, Abraham Maslow's model indicates that

basic, low-level needs such as physiological requirements and safety must be satisfied before

higher-level needs such as self-fulfillment are pursued.

iii. Kotler’s 8 step change theory: According to Kotler’s 8 step change theory, identifies and

analyse some of the key aspects that have significant impact on the organizational strategy.

The 8 step include- creating urgency; forming a powerful coalition; creating for a vision for

change; communicating the vision; removing the obstacles; creating short-term wins;

building on the change; and anchoring the change in corporate culture. So, this theory is very

effective to ensure appropriate management within the organization through developing and

implementing organizational strategies.

iv. Herzberg’s motivation and hygiene theory: This theory is mainly based on the

identification and analysing of the factors that lead to employee satisfaction and

dissatisfaction within the organization and thus develop organizational strategy to improve

employee performance and organizational performance. For example, motivation factors that

deals with the job content and leads to job satisfaction and hygiene factors that deal with the

job content and lead to job dissatisfaction. Thus, with identifying job satisfaction and

dissatisfaction factors, the organization be able to develop and implement organizational

strategy.

Thus, the author would like to mention that all of these theories of management and

leadership are playing significant roles to develop and implement organizational strategy to

achieve goals and objectives.

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2.2. Creating a leadership strategy that supports organizational direction: Pasmore

(2009) has developed following framework in relation to create a leadership strategy-

Figure: 1.1. Creating a leadership strategy that supports organizational direction (Source:

Pasmore, 2009)

Based on the above framework of creating leadership strategy, it is clear that leadership

strategy supports organizational direction. For example, business strategy that lead to analysis

of required current and future leadership capabilities and culture and thus on the basis of

identification of leadership capabilities and culture, the organization be able to lead people

within the organization. So, it can be said that leadership strategy can supports the

organizational direction.

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Leadership strategy

Leadership strategy

Analysis of required current and future leadership capabilities

Analysis of required current and future leadership capabilities

Strategic executions, business results, leadership culture, bench strength

Strategic executions, business results, leadership culture, bench strength

Leadership development strategy

Leadership development strategy

Business strategy

Business strategy

Talent acquisition, talent sustainability, leadership practices

Talent acquisition, talent sustainability, leadership practices

Analysis of required current and future leadership culture

Analysis of required current and future leadership culture


Task 2

3.1. Evaluation of the current leadership requirements in chosen organization: The

leadership and management tactics of the company are often covered by the media for its

track record of success and efficiency. The Virgin brand was founded in 1968 and is now

recognized worldwide for its success in many different industries. Sir Richard Branson is the

current chairman of the company and is well known for his colourful yet competitive

leadership style. Many scholars and business analysts attribute the Virgin Group’s success to

the innovative leadership style of Branson. He often took on risky business ventures in an

attempt to diversify and add value to the company. His business plan is to focus on very small

segments of a particular market and doing a high quality job at providing the product or

service. Transformational leadership comes from the top managers and executives within the

company. Richard Branson along with other company executives has set many common

goals for the company to achieve as a whole. These ambitious goals include expansion into

international markets, utilization of new technology, loyalty among customers, and joint

ventures with other companies.

In summary, there is a lot to be learned from the management and leadership of Virgin Group

Ltd. Chairman Richard Branson has created a unique management formula that has

contributed to the long term success of the company. Although there is a clear distinction

between management and leadership, the company has been able to integrate a blend of each

in many aspects of the business. The transformational leadership has proved to be a valuable

tool for executives, managers, and workers alike. Employees within the company have a

willingness to work together to expand and improve the company in order to reach their own

personal success in life (UPX Success, 2012).

Thus, it can be concluded that current leadership requirements of the case studied

organization, Virgin Group is very appropriate to achieve organizational goals and objectives.

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3.2. Developing a plan to deal with future situations requiring leadership: The author

would like to represent a developing plan to deal with future situations requiring leadership as

follows-

Table: 2.1. Development of a plan to deal with future situations requiring leadership

Development priority Key development actions

Improve the overall standard of

leadership qualities and

behaviours

The organization needs to improve the overall standard

of leadership qualities and behaviours to ensure better

leadership within the organization.

Develop current leaders and

teams

The organization needs to develop current leaders and

teams of each department of the business.

Ensure the supply of future

leaders

The organization needs to ensure appropriate supply of

future leaders.

Drive broader cultural change The organization should drive cultural change in relation

to develop and implement relevant and appropriate

leadership approach within the organization.

Establish corporate governance The organization needs to establish corporate

governance that will develop most effective and efficient

leadership within the organization.

Source: Author’s analysis

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Task 2

4.1. Discussion on how to develop leadership skills in chosen organization for specific

requirements: The author would like to mention following steps for the purpose of

developing leadership skills for the specific requirement such as good relationship with

employees by the leader within the Virgin Group-

To communicate effectively: The Virgin Group has been communicating effectively

with its stakeholders by developing most appropriate leadership skills.

To encourage enthusiasm and a sense of belonging: The Virgin Group should

encourage enthusiasm of the employees and then there should be great effort by the

organization to create sense of belonging by the employees towards the organization.

To keep everyone working toward agreed upon goals: There should be more focus by

the organization in relation to informed every employee of the target goals and objectives

of the organization through motivating them by the leadership approach.

To get to know the people around the organization: To develop leadership skills, the

organization should know the surrounding business environment as well as the nature of

market competition by the other businesses.

To treat others as individuals: The employees are the most valuable and important

resources for the organization, so the organization should respect them and treat them as

individuals by the leader to develop effective leadership skills within the Virgin Group.

To accept responsibility for getting things done: In order to develop appropriate

leadership skills, the leaders of the Virgin Group should create such an environment

where all employees will be responsible to complete their particular tasks and activities

within the organization.

To solve problem in a step-by-step way: The organization may face so many problems

or challenges due to several reasons and thus the organization should solve the problem or

challenges in step-by-step process by the leaders to develop leadership skills within the

Virgin Group.

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4.2. Evaluation of the usefulness of the methods used to develop leadership skills: The

development of leadership skills may require using some methods within an organization. For

example, Adair (2009) has mentioned that there are several methods that can be used for the

purpose of developing leadership skills within an organization and the most common and

effective methods include- i. To define the task of the leader; ii. To make planning to

complete the tasks; iii. To brief the details of the tasks towards the team members or

employees; iv. To set up control measures; v. To evaluate the results or outcomes; vi. To

motivate the team members or employees; vii. To organize the tasks in most appropriate and

structured ways; and viii. To set an example by doing tasks by himself or herself. So, it can

be said that all of these methods have great usefulness to develop most effective and

appropriate leadership skills within the organization by the leader and/or manager.

The author would like to evaluate the usefulness of the methods used to develop leadership

skills as follows-

Table: 2.2. Evaluation of the usefulness of the methods used to develop leadership skills

Method used to

develop leadership

skills

Evaluation of the usefulness of the methods used to develop

leadership skills

To define the task This method can make clear concepts by the employees about the

tasks that they are going to do under the supervision of the leader.

So, to make clear and simple this method is very useful to develop

leadership skills.

To make plan The planning is very crucial to ensure better participation as well as

budget in relation to finance and time by the leaders and other

employees to complete a particular task. So, this method is useful to

ensure appropriate plan for the completion of tasks and thus to

develop most effective leadership skills.

To brief details of the

task

This method is useful to provide overall job details and roles and

responsibilities of each employee and thus do best to complete the

tasks. Thus, it is very crucial to develop leadership skills within the

organization.

To set up control This method is very important to control the employees as well as

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measures the activities and thus help the leader to show his or her efficiency

and effectiveness as leader within the organization.

To evaluate results or

outcomes

This method is very important to evaluate the results and/or

outcomes through the completion of tasks within the organization

and thus help to develop most appropriate leadership skills within

the organization.

To motivate members

or employees

The motivation by the leaders plays crucial and significant roles and

thus represents the nature of the leadership and so this method can

be considered as most important to develop leadership skills within

the organization.

To organize tasks in

appropriate ways and

structured

This method is useful to make sure all tasks and activities are well-

organized and well-defined by the leader and thus considered as vital

to develop leadership skills within the organization.

To set an example This method is most useful to develop leadership skills because to

helps the leader to be an example or first performer to do tasks and

activities within the organization.

Source: Adair, 2009.

Conclusion

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Developing strategic management and leadership skills is becoming vital issue and concern

for an organization to compete in the current diverse and complex business environment as

well as to achieve organizational goals and objectives through increasing competencies of the

employees by adopting effective leadership and most relevant and appropriate strategies

within the organization. The organization may needs to consider several things for the

purpose of developing leadership skills and thus ensure most effective strategic management

of the organization.

This assignment has been discussed and explained some of the major issues and concerns of

the strategic management and leadership skills, including relationship between strategic

management and leadership; application of theories of management and leadership to support

organizational direction; the assessment of the leadership requirements; and the development

of leadership skills within an organization and other related issues and concepts with

providing information of a real life organization, such as Virgin Group.

In conclusion, the author would like to opine that this assignment was able to cover all of the

learning outcomes through answering relevant questions of each task as well as to improve

knowledge and understanding of the developing strategic management and leadership skills

both from academic and organizational perspective.

List of references

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Adair, J. (2009). Effective leadership: how to be a successful leader. London, UK: Pan

Books/Pan Macmillan Ltd.

Burton, R. M. and Obel, B. (1998). Strategic organizational diagnosis and design: developing

theory for application. 2nd edition. Massachusetts, USA: Kluwer Academic Publishers.

Lussier, R. N. and Achua, C. F. (2010). Leadership: theory, application, and skill

development. 4th edition. Mason, USA: South-Western Cengage Learning.

Maccoby, M. (2000). Understanding the difference between management and leadership.

Research Technology Management; Volume 43. No. 1. January-February, 2000. pp 57-59.

Northouse, P. G. (2010). Leadership: theory and practice. 5th edition. California, USA: Sage

Publications, Inc.

Pasmore, W. (2009). Developing a leadership strategy: a critical ingredient for

organizational success [Online]. Available at:

http://www.ccl.org/leadership/pdf/research/LeadershipStrategy.pdf [Accessed date 14 June

2012].

Sadler, P. (2003). Strategic management. 2nd edition. London, UK: Kogan Page Limited.

Thompson, J. and Martin, F. (2010). Strategic management: awareness and change. 6th

edition. Mason, USA: South-Western Cengage Learning.

UPX Success (2012). Management and leadership of Richard Branson at Virgin Group Ltd

[Online]. Available at: http://www.upxsuccess.com/leadership_richard_branson.html.

[Accessed date 14 June 2012].

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http://www.upxsuccess.com/leadership_richard_branson.html

http://www.ccl.org/leadership/pdf/research/LeadershipStrategy.pdf

Documents

Assignment 1