Submitted:
19 September 2024
Posted:
19 September 2024
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Abstract
Keywords:
Chapter I: Introduction
Statement of the Problem
Purpose of the Study
Research Questions
- What is the contrast between leadership and strategic management and clarifying the interchangeable use?
- What is effective leadership styles in relations to the use of strategic management performance and the effect of a leader who has strategic management skills?
Need for the Study
Design of the Study
Definition of Terms
Chapter II: Literature Review
Introduction
The Leader and Leadership Position
The Difference between a Leader and a Manager
- Leaders have dreams which they create into visions which is a long-term goal or objective that they inspire their followers to achieve, while managers produce plans and objectives to achieve the visions of the leader.
- Leaders are innovators that bring change to their environment as they tend to disrupt smooth operation for a new and better one. They are most of the time agent of improvement, while managers only continue with the processes and procedures that are in place as they only maintain and uphold status quo.
- Leaders are exceptional as they are actively discovering themselves and renewing their environment, they have strong awareness and personality of themselves. Managers are not original as they copy styles or roles of renowned leaders or mentors they aspire to become.
- Leaders have the posture of experimenting their ideas to see if it will work and are not oblivious of the outcome of the risks taken, while managers are very careful not to fail or waste resources and very risk averse.
- Leadership focus are generally in line with their mission and vision which is long-term in nature, while the managers mode of operations and focus are usually short-term.
- Leaders are constantly developing themselves to be abreast and ahead of competition in the ever-changing business environment, while managers depend on existing structures and proven skills as norms or convention for standard.
- Leaders focus on people and relationships they can influence to actualize their vision through followership loyalty, while managers exist on subsistent systems and processes that are available to operate.
- Leaders see people that work with them to be competent with great potentials which can be harnessed with little coaching, while managers see people that they work with as tools they give instructions and directions. Leaders create followership with people who believe in them and promote their activities to achieve the leaders’ goals and objectives, while managers have to contend with employees that work under their instruction, direction and supervision.
Strategic Management Explained
The Components of Strategic Management Skills
- Anticipate: This requires leaders and organizations management to be always caution and smart with their visionary goals to understand trend of times in their environment.
- Challenge: Strategic leaders should question the norm, they are always challenging their own and others’ presumptions support of unique perspectives. Simply after watchful reflection and examination of an issue through numerous focal points do they make conclusive move that requires persistence, fearlessness, and a receptive outlook.
- Interpret: The interpretational skills of strategic leaders should be exception in recognizing patterns, analyzing and sifting through ambiguity, have sound knowledge and always seeking insight to development around them. They are able to reflectively see, hear and synthesize all input effectively. The former Finland, President J. K. Paasikivi was fondly known for his saying that you have wisdom when you recognize the facts before rethinking or “re-cognizing,” them to show their real meaning.
- Decide: The speed and process of taking or making decision should be methodically short and straight forward to prevent unnecessary delays for urgent matters. Leaders usually take intense decisions with deficient data, frequently and rapidly, as the procedure should not offset meticulousness and speed of delivering prompt judgement to short and long-haul objectives. Strategic leaders should be brave in their belief ‘s and set aside procrastinations in decision.
- Align: Strategic leaders should have the capability of discovering shared views accomplishment among partners who have unique perspectives and plans by synchronizing. This is a dynamic fit and achievement that relies upon proactive correspondence, trust fabricating, and visit commitment.
- Learn: Strategic leaders are usually at the top emerging knowledge in their evolving environment. In their quest for development and evolution in culture, they explore for actions in both successful and unfruitful outcomes.
The reason for Strategic Management
- It allows organizations to be proactive rather than reactive and be prepared for the future
- It is like a compass that gives a sense of direction for the organization
- It provides increases to operational efficiency within the organization through effective communication.
- It helps to increase market share and profitability through proper appraisal of the organization’s SWOT analysis
- An effective strategic management policy plan makes a business strong, transparent and durable.
Contemporary Management Leadership Styles
- ➢
- The character of the leader – their experience and position, attitude, belief and values;
- ➢
- The character of the followers – their cohesiveness as a team, beliefs, attitudes and values; and
- ➢
- The condition – the socio-economic and political environment, their culture, structure and industry, the life stage of the organization, and the nature of the task.
Transformational Leadership
Transactional Leadership
Servant Leadership
Autocratic Leadership
Laissez-Faire Leadership
Democratic Leadership
Bureaucratic Leadership
Charismatic Leadership
Situational Leadership
Understanding Effective Organizational Performance
- Self-report of commitment to organization goals, subordinate satisfactions and the leader perceived effectiveness.
- Nonself-report based on organization outcomes such as net profit, sales turnover, return on investment and customer retention.
Chapter III: Critical Analysis/Discussion
- What is the contrast between leadership and strategic management and clarifying the interchangeable use?
- What is an effective leadership style in relations to the use of strategic management skills and the effect of a leader who has management skills?
Leadership Styles and Strategic Management
- Transformational leaders
- Situational leaders
- Transactional leaders
- Leaders have visionary skills while managers execute goals to achieve the vision of the leader.
- Due to the visionary skill of leaders, they are change agents while managers only try to maintain status quo within the organization.
- Leaders are unique and original as they are constantly searching for change to make difference while the manager only copy and aspire to play the role of the leader.
- Leaders due to their quest for new development are risk takers while managers are risk averse and try to control risk.
- Leadership focus on issues is long term while the manager’s focus and thoughts are short term in nature.
- Leaders are constantly in search of knowledge that will change their environment, as such grow through research for the unknown while managers rely on existing structures of proven and established skills.
- Leaders build relationships that foster followership and loyalty to actualize their vision while managers leverage on processes and build systems.
- Leaders are coaches and mentors to their employees and followers while managers see their subordinates as tools to be directed to execute their duties.
- Leaders create followers and fans that are motivated through association or ideology while managers see their subordinate as employees to be paid for their service rendered.
Strategic Management Skill
- The ability of leaders to anticipate situations and opportunities available to the organization; they should be smart with identifying opportunities that will spring their organization to the top.
- Leaders possess is their curiosity to challenge existing norms and through provision of critic for more formidable process or standard by providing constant updates. This act of examination and reflection provides persistence, fearlessness and reception for continuous update and new outlook for organizations and industries (Arruda, 2016). This skill is apt-on the advantage of SWOT analysis competitiveness in industry and business through proper appraisal of operational activities that makes the organization very profitable with a good market share to reckon with.
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Strategic management interpretation skills are essential for effective leaders to function effectively and efficiently. Performing strategic leaders are exceptional with their recognition skills, analytical skills and their quick sifting through information ambiguity with less stress and time (Arruda, 2016). The interpretational skill of strategic leaders are very coherent in their competence to lead and understand the business or industry they are operating, as constant revision of their organization SWOT analysis is important to determine if operational activities are in line with the mission and vision statement of the organization. A strategic leader that is well armed with interpretation skills will make use of the following benefits of SWOT analysis in commanding excellent performance in their business and organization (Finkelstein, et al. 2009):
- It will in still proactive tendencies that will create early preparation for future activities and plan.
- It will provide increase in operational efficiency within the organization and effective communication with all stakeholders.
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The speed and process of decision making is a skill strategic leaders are priced with as they have to make tough calls with incomplete information (Arruda, 2016). This strategic management skill is important as most leaders are confronted with spontaneous decision making all year round, and the method or process considered should be short, straight forward to prevent unnecessary delays for urgent matters that has short term horizon. Leaders and leadership focus are long term in nature as their concepts are based on their vision which is a long-haul (Tyler & Cremer, 2005). They make use of SWOT analysis to take advantages of the benefit at arriving on decisions that would have factored most condition that affect the industry the organization operates.
- It provides a compass like sense of direction for organization decision
- It creates proactive situations rather than reactive conditions when making decisions.
- Alignment capability is a unique skill strategic leader requires to stay on top of their game, in other to constantly adapt to the ever changing socio-economic environment and political spheres organizations operates (Arruda, 2016). Strategic leader are open to new ideas and have the capability to discover shared views, accomplishment among partners with unique perspectives and plans by synchronizing (Finkelstein, et al. 2009). The SWOT analysis tool of strategic management provides the support for harnessing this skill to its highest potentials, as it creates the opportunity for the creation of effective strategic management policy plan that makes a business strong, transparent and enduring. This skill is dynamic because it relies upon proactive correspondence, trust fabrication and commitment (Abuya, Amin, Molyneux, Akhwale, Marsh & Gilson, 2010).
- Strategic leaders are very good learners, that are willing to update themselves with current development in the environment they are operating (Arruda, 2016). Their big appetite for enduring knowledge, evolution in culture and convention, they have insatiable quest in exploring for actions in both successful and unfruitful ventures.
Leadership and Organizational Performance
Conclusions
Chapter IV: Summary, Conclusion, and Recommendations
Acknowledgements
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