Developing Strategic Management And Leadership Skills Commerce Essay

Developing St targetgic steering And lead Skills affair EssaySt outrankgic way can be defined as an art science of formulating, implementing and evaluating cross-functional decisions that enables an organization to r to each one its organisational or corporate goals efficaciously and businesslikely. Leadership and Strategic Management start out the nigh pivotal linkages and it is measurable to note that schema of an organization is developed through its drawing cards vision and organizational doctrine. Leadership and instruction are distinct approaches as counsel just follows orders while leading inspire others to get the task d one and only(a) and generate orders and commands for vigilance to follow.In this paper, capital of Nebraska voltaic automobile has been selected for mull over the classic linkages between leading and strategicalalal caution. The paper is divided in three main tasks. The first task provides (a) an explanation of the link betw een strategic management and lead, (b) an analysis of the impact of management and lead styles on strategic decisions and (c) an evaluation of how lead styles can be adapted to antithetic situations. The second task is to (a) review the impact that selected theories of management and leading have on organizational dodge and (b) create a leading schema that supports organizational direction (with the perspective of Apple Inc.). The net task discusses how to (a) practice session appropriate methods to review current leadership requirements, (b) plan for the development of succeeding(a) situations requiring leadership, (c) plan the development of leadership scientific disciplines for a proper(postnominal) requirement, and (d) report on the usefulness of methods used to plan the development of leadership skills. In the end, decisiveness is made to summarize the discussion and analysis.Task 1Linkage between strategic management and leadershipIt is in-chief(postnominal) to n ote that leadership plays the nigh dominant role in helping the organization to pull ahead its goals and objectives. It is because leadership plays the key role in devising an effective and efficient strategy that enables an organization to reach its corporate goals and objectives.Leaders of the organization develop organizational philosophical system or in operation(p)(a) school of thought of an organization that how it operates. Organizational philosophy develops its civilisation and structure. It is kindle to note that the vision and guardianship are important for devising an effective strategy and this vision and take oution of organization is super dependent on organizations culture and structure. Thus, vision and mission (developed ultimately by leadership) gives line up to the strategy of an organization to reach its organizational goals and objectives i.e. to gain a embodyable free-enterprise(a) reward in the commercializeplace relative to contest or to ant icipate growth through mergers or acquisitions. Therefore, there is an important linkage between strategic management and leadership of an organization as leadership ultimately nocks the strategic direction of an organization through the preceding(prenominal) process that is discussed above. The very(prenominal) linkage of strategic management and leadership is invest in the content of capital of Nebraska electric and it will be discussed in task 2.Some of the important linkages between strategic management and leadership areLeadership is refer al virtually the vision while strategic management is focused on implementation according to the vision place by the leadership.The orientation of leadership is towards commute management and anticipation of environmental changes. On the other hand, strategic management is oriented towards adaptation to change identified by the leadership and it does not take the initiatives of organizational and environmental change management.Leade rship is concerned with the dynamics of a situation and it identifies and realizes that how to supplement its resources to respond to the dynamics of the situation. Moreover, it is concerned with harmonizing or changing the culture to tally the challenges of dynamic external environment. On the other hand, strategic management is concerned with the technique and it follows the orders of the leadership. Strategic Management function is to hold back all the stakeholders elastic to cultural change which is identified by the leadership.Leadership is investing while strategic management is being empowered.Actions of leadership require skills entidepose the influence of actions of leadership is strongly on character of leaders. Strategic Management is all rough skills and management actions are skill oriented rather than character oriented.It is interesting to note that leadership is concerned with positive possibilities while strategic management is concerned intimately negative c onsequences.The basic responsibility of leaders is to bring in and reshape the organization while strategic management is concerned about following leadership vision to assist in building and reshaping the organization.Leadership is all about taking risks because leaders understand their strengths and weaknesses and leaders dispose to learn from their mistakes. While the strategic management is more than concerned about avoiding risk and adopting risk response strategies.Leadership bound goals while management focus mostly on goals set by their higher levels or leadership.Leadership take initiatives beyond its responsibility, support goals, provide direction and empower others. Strategic Management is more concerned about segmenting areas of responsibility and it follows leadership vision, organizational philosophy and organizational culture rather than taking initiatives. strike of management and leadership style on strategic decisionsLeadership styles and management plays an i mportant role in the strategic decision of an organization. As discussed earlier, leadership inspires management to meet strategic objectives and therefore impact of leadership on strategic decisions is more dominant that management and leadership styles are polar in taking strategic decisions for an organization. Different leadership styles are discussed infra which areAutocratic or overbearing styleIn the supreme or authoritarian style, decision making power is centralized to the leader and the leader holds the main decision making power. The most prominent pillow slip of authoritarian leaders is the dictatorship. It is important to note that Autocratic or authoritarian style do not consider or entertain the recommendation, acknowledgment or suggestion from subordinates but rather they would like to implement their witness authority on them. It is interesting to note that the Autocratic or authoritarian style leadership style is a useful pauperizational gumshoe for a mana ger or leader as it motivates the leader or manager to perform. Also, the decision making process in Autocratic or authoritarian style is very quick and straightforward because only one person is decides for the whole group. Moreover, Autocratic or authoritarian style leaders keep the decision making power with them always and decide merely on their own(prenominal) opinions unless or until they feel that they should share it with the rest of the group. individualistic or free rein styleIn individualistic or free rein style, the leader does not lead the group but rather it leaves the group entirely to itself. In simple words, the leader allows upper limit freedom to its subordinates. For example, the subordinates are free to make their own policies and decision respectively and freely.Participative or democratic styleThe participative or democratic leaders rely heavily on the consensus of the management and subordinates to take strategic decisions or to set strategic directions. They rely heavily on the consulting of the employees and management to organise strategies for scope organizational goals. Team and Management of the corporation in this style of leadership is effective but it is a slow process. It is interesting to note that leaders in this case are selected by the consensus of subordinates or management foreign in authoritarian style of leadership.Impact of leadership style on management and strategic decisionsDifferent leadership styles are effective and efficient based on dissimilar situations and contexts. For example, sometimes the organizations have to make present(prenominal) decisions where time is very little to converge on an agreement. In this case an Autocratic or authoritarian style is more effective because a designated authority who have more experience and expertise than the rest of the team could make and implement decision rapidly and quickly to respond to the devoted scenario.On the other side, in case of a highly cause an d aligned team with a homogenous level of expertise and experience, Laissez-faire or free rein style would be more effective and efficient. It depends on scenario and objectives that which leadership style should be chosen.Task 2 analyse of selected theories of management and leadership impact on capital of Nebraska Electric organizational strategyVision, Mission and Value StatementLeadership is the most life-and-death reason for the advantage of an organization. Leadership enables the organization to gain a sustainable warring reinforcement in the marketplace. It is because leadership develops operating and organizational philosophy which shapes vision, mission, and organizational culture of the organization. Vision, Mission and organizational culture play the most crucial to tog up and effective and efficient strategy to gain a sustainable competitive advantage in the marketplace. Therefore, leadership is the most important element in making vision, mission and appreciate s tatements and these statements reflects the leadership traits and personalities and their visions.The vision, mission and value statements can be implied from their official website which reflects the leadership and organizational philosophy of capital of Nebraska Electric. Vision statement can be formulated as To be the global manufacturer and market leader of the highest quality welding, piercing and joining products. The Mission statement for Lincoln Electric can be stated as To endure passion for development and application market leadership and global manufacturer vision by providing complete solutions that make their customers more productive and successful. Finally, the value statement can be exposit as the customer value would be provided to customers by streng and soing and maximising the satisfaction of employees and customer value would generate shareholders value in travel by with the maximum employee motivation and satisfaction. (Lincoln Electric, 2010)Operating Phi losophy or organizational philosophyIt is interesting to note the company operating philosophy is highly characterized by the Christian ethics and it was leadership vision of James F. Lincoln which so became the organizational and operating philosophy of Lincoln Electric. The above implied vision, mission and value statements reflect the Christian ethics that are gained from the operating philosophy of Lincoln Electric. Highest quality products are provided to the customers by identifying customer needs and wants with a aesthesis of empathy. The value is provided to customers in terms of product efficiency rather than terms discounts and customer enjoys long term benefits and overall cost reduction in the form of less repairing, maintenance, replacement and upgrading. The organizational philosophy of Christian ethics had sextet core values which are Respond to our customers needs and expectations with quality, integrity, and value, credit people as our most valuable asset, mai ntain and expand the Lincoln Incentive Management Philosophy, practice prudent and responsible fiscal management, progress to continually to be environmentally responsible, and support communities where we operate and industries in which we participate. The six values define thoroughly the operating philosophy of Lincoln Electric regarding customers, stockholders, unificationism and employees. (Buller Schuler, 2006)The employees are working on a piece rate basis with a mathematical process score which motivates the employees to work hard. If an employee is not do well then it would hit the piece rate basis and the employee would miss the financial incentives. Job security is very high at Lincoln Electric as the employees are not punished but move in case of failures. The employees are not fired because of the Christian empathy operating philosophy but employees realize that if they would not perform well then they would miss their financial incentives which drives employees at titudes to work efficiently under high military control security for gaining the maximum bonuses and incentives. (Buller Schuler, 2006)Lincoln Management Incentives and Bonus PlanThe management incentives and bonus plan of Lincoln electric are very motivational and attractive. The Lincoln bonus plan is strategically aligned with the piece rate pay plan which was discussed in above. It is a fact that Lincoln electric management incentives and bonus plans are the amounts worth more than half of the employee ruler pay or wage. Management incentives and bonuses are based on performance based reward/point system. The management incentive and bonus plans are considered as a financial motivator in Lincoln electric. Management incentives and bonuses are considered to be the share and recognition of employees for their part in the financial and competitive performance of the Lincoln Electric. Points are allotted according to the contribution of each employee or manager to the financial p erformance and management incentives and bonuses are rewarded according to the points scored by the employees. The management incentives and bonus plans are based on reinforcement theory which states that behavior is a function of its consequences. (Robbins, 2005)Leadership strategy Strategic issues driving the success of Lincoln ElectricA shed light on analysis of Lincoln Electric indicates that Lincoln Electric has no strategic issues as it is exploiting its core competencies and capabilities to gain a sustainable competitive advantage in the marketplace. It is performing differently from rivals. According to Michael Porter (1996), Strategic situation and operational authority are two entirely different approaches and concepts. running(a) Effectiveness is necessary for a business success but not sufficient for it. An organization has to develop a strong strategic spatial relation to be globally competitive and to gain a sustainable competitive advantage which is not imitable by competition. Strategic Positioning is an entirely different approach and it is performing different activities from enemys or performing similar activities in different ways. On the other hand, operational effectiveness is just performing similar activities from rivals in a better but not different way. Therefore, the competitive advantage gained from operational effectiveness is easily imitable because the competitors may to a fault adopt the same or better practices to come up with the same or a better advantage. But, in case of strategic stance, competitors could not imitate because the corporation adopting strategic positioning is entirely different from rivals and a competitor has to copy the whole activity systems to imitate that competitive advantage which is almost impossible because the own strategic positioning of that particular competitor would be lost after doing this. Japanese companies were well known for best-practices and integral Quality Management. Their gl obal competitiveness was based on operational effectiveness in the 1970s and 1980s. In the race of operational effectiveness, the Japanese companies could not develop strategic positioning and fell under the trap of competitive convergence. The focus of Japanese corporations was to imitate competitors and just to perform better. Japanese enjoyed success because the world economies were growing. But when the markets became saturated the Japanese firms were stuck in their own traps and at long last rubbed out of markets. (Porter, What is Strategy, 1996)Lincoln Electric has developed a strategic positioning rather than operational effectiveness. The most crucial reason for Lincoln Electrics excerpt is its strong human resource management in the most union obsessed part of US. Lincoln Electric activity systems supported each other to have a sustainable competitive edge. The focus of Lincoln Electric was to develop a strategic position while the rivals were more concerned about operati onal effectiveness which was necessary but not sufficient.Task 3Current leadership requirementsIt is important to note that organizations devise efficient business level and corporate strategies to gain a sustainable competitive advantage in the marketplace relative to competition. The leadership plays the most dominant role in devising strategies for corporation to sustain a competitive advantage. Leadership develops organizational philosophy and organizational philosophy gives rise to vision and mission for the organization. The strategic objectives of an organization are set on the basis of its visions and missions.Therefore, understanding and knowledge of leadership philosophy and its implications is the most effective skill for efficient leadership. The individuals working in the Lincoln Electric essential(prenominal) have knowledge of organizational philosophy and its culture and personal goals of individuals must be aligned with the organizational philosophy for effecti ve leadership. Personal skills of the individuals must be compatible with the organizational philosophy to develop leadership in them.The personal skills which are required for efficient leadership are ego awarenessProactiveAbility to frame and reframe eventsAbility to integrate the perspectives of othersSelf-Motivation (Ambler, 2006) completely the above personal skills of individuals must be compatible with the original skill of understanding of organizational philosophy to reach organizational strategic goals. evolution of future situation for requiring leadershipAs we have already discussed that all(prenominal) organization makes efficient business level and corporate strategies to gain a sustainable competitive advantage in the marketplace relative to competition. The leadership plays the most dominant role in devising strategies for corporation to sustain a competitive advantage. Leadership develops organizational philosophy and organizational philosophy gives rise to vision and mission for the organization. The strategic objectives of an organization are set on the basis of its visions and missions.Professionally, understanding of organizational philosophy, aligns the personal goals of an individual with organizational goals and the person realizes that, to be successful, he must reach organizational strategic goals for reaching his own personal goals because an incentive or compensation and motivation is added with this understanding of organizational philosophy. Therefore, motivation (career development, personal goals) and compensation (rewards, promotions) provide operator for both kinds of goals or objective accomplishment.Personally, having interpersonal skills and capabilities, creates awareness among the individuals that corporate culture and philosophy is important for the success of the individuals and organization. The development of self-motivation with the above concept develops a driving force that guides the individual to meet their pe rsonal goals by lamentable on the way of reaching strategic goals of the organization.Leadership skills for a specific situationFor example, the changing market trends motivate the Lincoln Electric to devise more environment and user friendly tools for its customers. In this case, organization must devise activity systems and strategy according to its leadership philosophy and operating philosophy because it is the core competency of the organization. It must seek ways for harmonizing personal goals of individuals with the leadership goals by compensating them effectively. Leadership must be developed by teaching individuals organizational philosophy which comes from leadership.MethodologyThe Lincoln Electric must design a one year management trainee program in which individuals must be trained both professional and personally for strategic goals achievement. There should be four modules. The first module must accept the professional literature such as competitive strategy by Mich ael porter, different academic articles related to strategy and leadership, complete description of organizational and leadership philosophy to develop personal skills for strategic goals achievement. The second module must involve motivational approaches and methodology for defining ways to consent personal with professional goals, compensation and benefits as incentives to integrate personal goals with professional goals and an overview of organization. The third module must include rotation of individuals among the different departments and capacities and final module must require the individuals to manage some pilot projects to reach organizational strategic goals. It is important that organizational and leadership philosophy must be reinforced in each and every module by the trainers. The last two modules are designed to increase involvement of individuals at the different strategic levels. The training must conducted and supervised by the authentic leaders of the organizatio n.ConclusionIn this paper, important linkages between strategic management and leadership of an organization were studied and analyzed. The first introduced the links between strategic management and leadership. The second part applied management and leadership philosophies to study the Lincoln Electric which is one of the successful organizations of the world. The last part recommended some strategies to develop and boost leadership across the organization. It can be cerebrate that leadership plays the key role in the strategic management and success of an organization.3225 Words