Strategic Management: “The art and science of formulating, implementing, and valuating cross-functional decisions that enable an organization to achieve its objectives. ” (Fred R. David, 2011)” In other words strategic management involves 3 major activities: 1 . Strategy Formulation (Planning). 2. Strategy Implementation (Organizing, Motivating & Staffing). 3. Strategy Evaluation (Controlling). And in order to set an objective, analyze competitive environment, analyze organization position and formulate and evaluate a strategy a leader is needed to drive, so let’s define the leadership.
Leadership: a process of social influence in which a person can enlist the aid and purport of others in the accomplishment of a common task. “(en. Wisped. Org/wick/ Leadership)” So a leader must have the required skills and knowledge to derive a strategy and direct the followers in order to achieve the goals. But in order for a leader to create a strategy the following questions have to be answered: 1 . What is the organization current position? 2. Where we want to be? 3. How to be there? Perform the strategy, according to Minimize ten managerial roles are divided under three categories: 1 .
Interpersonal Roles (Leader role, Figurehead role, Liaison role). 2. Informational Roles (Monitor role, Disseminated role, Spokesperson role). 3. Decisional Roles (Entrepreneur role, Handles Disturbances role, Allocates Resources role, Negotiations Role). But still a manger can fulfill the objectives but a leader will have more solutions and performs better than a manager, so let’s compare mangers and leaders: Leader Manager a. Has Followers b. Has Moral authority c. Influence people d. Give attention to others e. Motivate others f. Share tasks g. Share knowledge and info h. Acts as a team member a.
Has employees b. Has Formal authority c. Directs employees d. Does not care about other e. Control others f. Manage tasks g. Keep info and knowledge h. Behaves as head of team So a good leader will use all skills depending on the situation, he can be a leader inspiring people and shares information, tasks and be team member and at different situations can be a manger and control all tasks. As a leader this is what Carols Shown did: He started as a Manger: 1. He asked for full control. 2. Requested that all VSP to report to him. 3. Selected his executives to accompany him on his mission. . Sets time limits for tasks. Then as a leader: 1 . He took responsibility of decisions. 2. He visited assembly lines. . Shared thoughts and objectives with Ionians members. 4. Setup teams to generate ideas and recommendations 5. Motivated employees to study English and share thoughts. So if we go back and run through Minimize ten managerial roles and apply them to Carols Shown and how he performed the three main roles: 1. Interpersonal Roles As Leader he inspired the employees and motivated them. As Figurehead he studied available data, analyzed causes and consequences.
As Liaison he was involved with the teams visiting assembly lines, dealers, suppliers an was keen to know customers opinion. 2. Informational Roles Monitoring how things were done he was able to control tasks. As Disseminated he resolved problems that words are interpreted in the same meaning and had separate teams to identify Ionians problems and offer solutions. As Spokesperson he takes charge of presentations and interviews. 3. Decisional Roles As Entrepreneur he listens to others respects them and takes decisions based on information.
As Disturbance Handler he spotted that language was one of the major issue and responded by establishing dictionary of essential words As Resources Locator he minimized budgets given to mangers, he freed capital resources from non strategic assets. As Negotiator he was able to negotiate the union officials for no increase in base salary. So it is evident that a good leadership connects the strategic management and objectives by leading the followers and making use of available resources, also it is clear that both managers and leaders are needed in order to achieve strategic goals.
Shown linked the strategic direction of decreasing debt and shifting to profit with his leadership abilities to establish a rescue plan involving his French team with the Japanese and constructing new teams to support the rescue plan, also he gathered Section 1. 2: Compare and contrast the impact of management and leadership styles on strategic decisions in an organization Leaders or managers styles have great impact on formulating and executing strategic decisions in organizations, Leadership style is defined as the way in which the functions of leadership are carried out” (Laurie J. Mullions, 2005). Different managing styles are the way of success for any plan and a good leader applies different styles depending on the situation, all leaders share some common characteristics such as Integrity, honesty, courage, commitment, passion, confidence, sides, responsibility, so let’s see what the different styles are: 1 . Autocratic Style: in a simple word it is a one man show were manger focuses all power and decision making to him, also he controls rewards and punishments. 2. Bureaucratic Style: is a non inspiring style, mangers applying this style sticks to the regulations and never cross the boundaries. . Democratic Style: this is a style were mangers promote trust level within the employees and the decision maker. It is used in situations where the ideas and opinions of employees can result in effective and efficient outcomes. . Laissez-fairer: is a style were followers are working freely as long as they performing the required tasks without interference from the manager, but he is always there for guidance and help. 5. Transformational Style: this is a style were high motivation and rewarding is offered to the employees and requires them to be highly oriented with the 6.
Persuasive Style: This style manager tends to persuade others with his point of view, and will not accept criticism or innovative thoughts. So how can these styles impact the decisions in Ionians, the company culture has a read role in identifying the suitable style, challenges that face the organization also influence the style of management. Shown started collecting data by visiting Ionians facilities and dealers two months before he is officially named the COO, in order to identify problems with Ionians there were some evident problems that can be identified from the outside there was many problems that his close visits revealed them.
I believe Shown Autocratic role was evident in collecting data by himself and according to his conclusion that if he continued to listen from the outside nothing ill change , he took decisions independently such as decreasing the board number but when it comes to the selection of the Japanese board members Laissez-fairer action by letting Hannah to choose them.
Shown applied the Persuasive Style when being open and allowed the press to attend the board meeting in order to deliver his strategy to the society to increase orientation also this increased the level of transparency while leading the Shown applied the Democratic Style when forming nine different teams to go deep inside the organization and dig for problems and offering solutions, also he used the Transformational Style to increase motivation and self confidence between workers that suffered a ten years of decline, also by offering the executives a quasi-stock option he offers the motive to perform his rescue strategy.
So we can conclude that each style was useful and a great leader shifts from one style to another depending on the circumstances and organization culture, controlling the shift between styles will lead to success or to failure. In my opinion and according the outcomes of the Revival plan Mr.. Carols Shown proved his capabilities as great leader with his vision and confidence to put Ionians sack on track proving that the shifting between styles effectively had a great impact on the organization.
His democratic style had a great impact to gather everyone in the society to of the organization affects the staff and its activities. Section 1. 3: Evaluate how leadership styles can be adapted to different Situations As presented in previous question different leadership styles can be used during the leading of a company. In this question we are going to evaluate how leadership styles were used according to the situation and how these overcome the different challenges such as:
From reading the case I concluded that Carols Shown as leader applied different styles in different situations but what were the main characteristics of his leadership: 2. Relationship between execution and strategy. 3. Communication. Transparency Transparency is the most important object between the employees and their leaders in any successful company. By transparency, Shown understands that the leader must focus on continuity in the things he says or does.
This is in order to encourage his subordinates to do the same. Through transparency, and being open to the press Shown showed the challenges hat faces the organization, he gave solutions and sets milestones every employee under Shown is now familiar with the challenges and goals. As a result, the activity within the company and the relationship between departments can be improved and all employees can personally see how their performance impacts the whole Relationship between execution and strategy.
In Shogun’s opinion, execution should be more focusing in achieving tasks and spending less time in building strategies. So it is clear that Applying the strategy is the most crucial aspect in order to overcome the challenges. Although it is extremely important to develop a suitable strategy for the organization that is suitable for different departments and activities this is why different teams from different departments were created to establish specific strategies for each department.
This means that Shown is oriented towards the involvement of the staff in making strategic decisions. The leader must take into considerations the ideas of his teams and their requirements. In addition, Shown is interested in the development of his subordinates by addressing aspects like their career development. As a result, Shown expects his employees to increase their interest towards the company and to improve their performance as a reward and this was evident as employee’s starts to learn English, offer solutions to Ionians problems.
Communication One of the most important aspects that influence the success of the companies is represented by communication. Shown introduced English as a common language between his French team and Japanese staff; he realized that common words were not similarly interpreted. Also, he has been down to all departments to listen and get feedback by all staff. His orientation towards communication aspects reveals the fact So examining the above the leadership styles used differs from situation to another as explained previously in section 1. The most leadership used was the democratic but a clear guide on the bases of selection groups and transparency identifying the problems and staff participation by sharing ideas and used the transactional style motivating them led to construction of the reformation plan. Finally from my point of view unless you a have a highly committed staff with clear vision the democratic style may lead to adverse results, as cultures differs the need or autocratic style can be the only solution and in other cases transformational style can be the only way out.
Task 2 Section 2. 1: three theories) have on organizational strategy. In this part, two management and leadership theories will be chosen and reviewed to show the impact of them on an organization. The two theories I have chosen review are: 1) Situational theory of leadership. 2) Transformational leadership theory. 1 . Situational theory of leadership. This theory says that there is no Single “best” style of leadership, leaders has to adapt heir leadership style according to different situations and degree of maturity of the followers.
So it is evident that this theory is a AD theory between leader & Follower, and the degree of involvement of the leader differs according to the degree of competence and maturity of the followers. Leader Behavior style can take one form of the following (Telling, Selling, Participating and Delegating). Maturity Level this is the degree of readiness of the group to perform tasks which is divided as follows (Unwilling to perform, willing to perform but unable, able to reform but think they can’t, willing and able to perform).