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Strategic management and leaderships skills Essay

1.1 Explain the link between strategic management and leadership? Management is coping with complexity”. The growth of large organisations led to the creation of management hierarchies as a method of maintaining control over things such as planning, budgeting, reporting, supervising and so on. Good management means that, even in the most complex of organisations, things happen in an orderly and controlled fashion. Leadership however, is about the process of initiating and coping with change, now a vital factor with significant changes in technology, competition, regulation, economic and demographic changes occurring more and more frequently. Stephen Drotter, co-author of “The Leadership Pipeline” points out that “Today’s organisations need effective leaders at every level and in every location”. Controlling and problem solving is the job of management whilst leadership focuses on motivating and enabling others to work towards new goals. The differences between these activities can be summarised as follows. Planning and budgeting vs. setting direction.

Planning and budgeting (whether short or long-term) are by definition intended to produce orderly, expected results. Direction-setting is about defining where we need to change and laying out the new direction. It need not be a mystical process but can relate to a hard-headed analysis of what is necessary in a critical situation. The output of direction setting is a vision or a strategy rather than a plan, but this does not imply that the vision is an ethereal concept that only the creative, psychic, or users of hallucinogenic drugs can produce. For example, the stated vision of Scandinavian Airlines was at one time to be “the best airline in the world for the frequent business traveller”.

Far from being an altruistic aim, any observer of the airline business would know that this could be translated as “To corner the most lucrative segment of the market airlines market”. The success of a vision is not its originality, but the ability to translate it into meaningful action through energizing others. Having this sense of direction is a leadership function, which long term planning (the management analogue) is not a substitute for. Organizing versus inspiring and aligning.

Modern organizations are complex, interconnected, and contain many dependencies. To create significant change therefore requires the persuasion of a significant group of people to align themselves to the leader’s vision and to move together. Many companies assume that change has been achieved when the old organisation chart has had the old reporting lines erased and new lines drawn in. However, this is analogous to changing the labels on the buttons on a control panel, without changing the connections to the things they operate.

Even ignoring the need to change processes to reflect organisational changes (itself a management activity), the vital communications task of aligning people (to use Kotter’s word) is a key leadership activity in getting commitment to work for rather than against the change. As well as getting the message across it means enabling people to take the necessary actions to “make it happen”, particularly if taking initiative has historically been a risky activity in the company culture. This sort of culture change is not something that one can make rules for. Motivating versus controlling and problem solving.

If direction setting is about setting the direction, and aligning is about persuading people to start moving along the new path, motivating people is the factor that keeps them moving and helps them to overcome obstacles. This process begins at the vision stage by expressing the vision in a way that appeals to common values and makes achievement of the new direction important to those being led. It involves supporting efforts by coaching, feedback and role modelling (the word “leading” in English has a connotation of being out in front). It involves providing encouragement and help when progress is tough, and recognition of success when it is achieved. This latter behaviour both rewards success and reinforces the belief that the organisation cares about its people.

Creating a Leadership Culture

Increasing change in the organisation’s environment implies a need for creating a leadership culture. One key element of success in this is the need for informal networks of likeminded individuals that can facilitate change in the same way that formal management structures ensure control and order. Most organizations have fragmented networks with a few well connected people and a majority of poorly connected ones. The creation of strong informal networks can help ensure that individual or departmental visions can be complementary rather than fragmented. Individuals who wish to be successful in creating change need to be aware of how the complementary skills of management and leadership interrelate. Both are necessary but whereas management is about coping with complexity, leadership is about coping with change. While one considers what is probable, the other considers what is possible. An organisation needs both management and leadership to be successful. Whereas the disciplines of the former have perhaps been better recognised and applied in the past, the successful organisations of the future will be those that recognise, develop and apply both in equal measure. (http://www.extensor.co.uk/articles/mgt_and_leadership/mgt_and_leadership.html)

Analyze the impact of management and leadership styles on strategic decisions? The successful companies I have witnessed are run by management who are excellent at 2 major building blocks: 1. Strategic Planning2. Developing a marketing plan. STRATEGIC PLANNING”The long-term success of a business is dependent on its long-termstrategies. It has been said that a company can overcome inefficient useof internal resources if its basic strategy is brilliant, but not likely to getby with the wrong strategies even with excellent production anddistribution capabilities.Past success formulas might not work in the future. Therefore, acompany must periodically reexamine its situation as objectively aspossible and determine the best course of action for the future in order tomeet its goals and objectives.Many companies get stalled on a flat growth plateau. Strategic planningmethods can be used to realistically develop and evaluate growth options.Management needs to address the issues that affect long term growth, and position the company for outstanding performance.In order to be effective, planning should become an integral part of the business’ culture and needs to be a continuous process.”

DEVELOPING A MARKETING PLANTASTE, TRENDS AND TECHNOLOGY: what does your research indicate is the trend in your field? Will it stay the way you are currently offering supplies and services or will it change? This item covers the developments you expect for the next few years. Evan a ‘perfect’ business can become obsolete overnight due to future developments. Specify a 5 year forecast of your field in your area.

SALES REVENUE FORECAST: have you developed these targets? This section shows your estimates of future sales revenue for your business. Your strategic plan, needs to spell out the specific actions you will take to achieve your forecast sales revenues.

DIFFERENTIATE YOUR BUSINESS FROM THE COMPETITION: How does your business differ from the competition’s strong and weak points. Again, remember to carefully look at your business from the customer’s perspective. If you’re not sure how your pricing policies compare to the competition, here are some guidelines. Most people associate high prices with high quality and extra service, while they associate low prices with low or average quality and minimum service. Make sure you provide extra quality and service if your prices are higher than your competition or make sure that your prices are lower if your quality is average and your service is minimum.

DECIDE HOW TO REACH CUSTOMERSOnce you describe your target customer, it’s easier to create a list of possible ways to reach that person. One of your jobs as a businessperson is to decide which of all the possible methods of communication will give you the most exposure for the least cost in money or time.

EVALUATE THE RISKS FACING YOUR BUSINESS COMPETITION: Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don’t minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.

PIONEERING: If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area.

CYCLES AND TRENDS: Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile? SLOW

TIMES: Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is slow.

OWNERS EXPERTISE: Nobody knows everything. How do you plan to compensate for the knowledge you’re short on? (http://www.quora.com/What-impact-do-strategic-management-and-leadership-styles-have-on-strategic-decision-making) 1.3: Evaluate how leadership styles can be adapted to different situations? Businesspeople and psychologists have developed useful frameworks that describe the main ways that people lead. When you understand these frameworks, you can develop your own approach to leadership, and become a more effective leader as a result. In this, we’ll highlight some of the common approaches to leadership that you can use. We’ll also look at some specific leadership styles, and we’ll explore the advantages and disadvantages of each type.

Useful Leadership Style Frameworks

So, let’s look at some useful approaches – shown mainly in the order they appeared – that you can use to become a more effective leader. Your own, personal approach is likely to be a blend of these, depending on your own preferences, your people’s needs, and the situation you’re in. Lewin’s Leadership Styles

Psychologist Kurt Lewin developed his leadership styles framework in the 1930s, and it provided the foundation of many of the approaches that followed afterwards. He argued that there are three major leadership styles: Autocratic leaders make decisions without consulting their team members, even if their input would be useful. This can be appropriate when you need to make decisions quickly, when there’s no need for team input, and when team agreement isn’t necessary for a successful outcome. However, this style can be demoralizing, and it can lead to high levels of absenteeism and staff turnover. Democratic leaders make the final decisions, but they include team members in the decision-making process. They encourage creativity, and people are often highly engaged in projects and decisions. As a result, team members tend to have high job satisfaction and high productivity.

This is not always an effective style to use, though, when you need to make a quick decision. Laissez-faire leaders give their team members a lot of freedom in how they do their work, and how they set their deadlines. They provide support with resources and advice if needed, but otherwise they don’t get involved. This autonomy can lead to high job satisfaction, but it can be damaging if team members don’t manage their time well, or if they don’t have the knowledge, skills, or self-motivation to do their work effectively. (Laissez-faire leadership can also occur when managers don’t have control over their work and their people.) Lewin’s framework is popular and useful, because it encourages managers to be less autocratic than they might instinctively be.

The Blake-Mouton Managerial Grid

The Blake-Mouton Managerial Grid was published in 1964, and it highlights the best leadership style to use, based on your concern for your people and your concern for production/tasks. With a people-oriented leadership style, you focus on organizing, supporting, and developing your team members. This participatory style encourages good teamwork and creative collaboration. With task-oriented leadership, you focus on getting the job done. You define the work and the roles required, put structures in place, and plan, organize, and monitor work. According to this model, the best leadership style to use is one that has both a high concern for people and a high concern for the task – it argues that you should aim for both, rather than trying to offset one against the other. Clearly, this is an important idea!

The Hersey-Blanchard Situational Leadership Theory

First published in 1969, the Hersey-Blanchard Situational Leadership Theory argues that you need to use different leadership styles depending on the maturity of your team members. The model argues that with relatively immature individuals, you need a more directing approach, while with higher maturity people, you need a more participative or delegating leadership style. You can use this model in most business situations, regardless of whether you want to build a new team or develop an existing one.

Path-Goal Theory

You may also have to think about what your team members want and need. This is where Path-Goal Theory – published in 1971 – is useful. For example, highly-capable people, who are assigned to a complex task, will need a different leadership approach from people with low ability, who are assigned to an ambiguous task. (The former will want a participative approach, while the latter need to be told what to do.) With Path-Goal Theory, you can identify the best leadership approach to use, based on your people’s needs, the task that they’re doing, and the environment that they’re working in.

Six Emotional Leadership Styles

Daniel Goleman, Richard Boyatzis, and Annie McKee detailed their Six Emotional Leadership Styles theory in their 2002 book, “Primal Leadership.” The theory highlights the strengths and weaknesses of six leadership styles that you can use – Visionary, Coaching, Affiliative, Democratic, Pacesetting, and Commanding. It also shows how each style can affect the emotions of your team members.

Flamholtz and Randle’s Leadership Style Matrix

First published in 2007, Flamholtz and Randle’s Leadership Style Matrix shows you the best leadership style to use, based on how capable people are of working autonomously, and how creative or “programmable” the task is. The matrix is divided into four quadrants – each quadrant identifies two possible leadership styles that will be effective for a given situation, ranging from “autocratic/benevolent autocratic” to “consensus/laissez-faire.”

Transformational Leadership

These leadership style frameworks are all useful in different situations, however, in business, “transformational leadership ” is often the most effective leadership style to use. (This was first published in 1978, and was then further developed in 1985.) Transformational leaders have integrity and high emotional intelligence . They motivate people with a shared vision of the future, and they communicate well. They’re also typically self-aware , authentic , empathetic , and humble . Transformational leaders inspire their team members because they expect the best from everyone, and they hold themselves accountable for their actions. They set clear goals, and they have good conflict-resolution skills .

This leads to high productivity and engagement. However, leadership is not a “one size fits all” thing; often, you must adapt your approach to fit the situation. This is why it’s useful to develop a thorough understanding of other leadership frameworks and styles; after all, the more approaches you’re familiar with, the more flexible you can be.

Specific Leadership Styles

As well as understanding the frameworks that you can use to be a more effective leader, and knowing what it takes to be a transformational leader, it’s also useful to learn about more general leadership styles, and the advantages and disadvantages of each one. Let’s take a look at some other leadership styles that are interesting, but don’t fit with any of the frameworks above.

Bureaucratic Leadership

Bureaucratic leaders follow rules rigorously, and ensure that their people follow procedures precisely. This leadership style is appropriate for work involving serious safety risks (such as working with machinery, with toxic substances, or at dangerous heights), or with large sums of money. Bureaucratic leadership is also useful for managing employees who perform routine tasks. This style is much less effective in teams and organizations that rely on flexibility, creativity, or innovation.

Charismatic Leadership

A charismatic leadership style resembles transformational leadership: both types of leaders inspire and motivate their team members. The difference lies in their intent. Transformational leaders want to transform their teams and organizations, while leaders who rely on charisma often focus on themselves and their own ambitions, and they may not want to change anything. Charismatic leaders might believe that they can do no wrong, even when others warn them about the path that they’re on. This feeling of invincibility can severely damage a team or an organization, as was shown in the 2008 financial crisis.

Servant Leadership

A “servant leader” is someone, regardless of level, who leads simply by meeting the needs of the team. The term sometimes describes a person without formal recognition as a leader. These people often lead by example. They have high integrity and lead with generosity . Their approach can create a positive corporate culture, and it can lead to high morale among team members. Supporters of the servant leadership model suggest that it’s a good way to move ahead in a world where values are increasingly important, and where servant leaders can achieve power because of their values, ideals, and ethics . However, others believe that people who practice servant leadership can find themselves “left behind” by other leaders, particularly in competitive situations. This leadership style also takes time to apply correctly: it’s ill-suited to situations where you have to make quick decisions or meet tight deadlines.

Transactional Leadership

This leadership style starts with the idea that team members agree to obey their leader when they accept a job. The “transaction” usually involves the organization paying team members in return for their effort and compliance on a short-term task. The leader has a right to “punish” team members if their work doesn’t meet an appropriate standard. Transactional leadership is present in many business leadership situations, and it does offer some benefits. For example, it clarifies everyone’s roles and responsibilities.

And, because transactional leadership judges team members on performance, people who are ambitious or who are motivated by external rewards – including compensation – often thrive. The downside of this style is that, on its own, it can be chilling and amoral, and it can lead to high staff turnover. It also has serious limitations for knowledge-based or creative work. As a result, team members can often do little to improve their job satisfaction. (http://www.mindtools.com/pages/article/newLDR_84.html)

2.1 Review the impact that selected theories of management and leadership have on organizational strategy? Management and Leadership Theories
Good leadership is an essential element to any organization, organizations are looking for the best leaders with the proper skills to lead the company in the right direction while achieving the company objective. It is in the organization best interest to promote the development of leaders, this strategy can only see the organization benefiting from their creation, i.e. the development of a good leader.

According to (Management study guide) Management knowledge is supported by various theories, the leadership function of management too is authenticated by various theories. While the behavioral theories of leadership focused on discovering the constant relationship between leadership behaviors and the group performance, the contemporary theories emphasized the significance of situational factors (such as stress level, job structure, leader’s intelligence, followers’ traits, etc.). Some of the important leadership theories are as follows:

Blake and Mouton’s Managerial Grid
House’s Path Goal Theory
Great Man Theory
Trait Theory
Leadership-Member Exchange (LMX) Theory
Transformational Leadership
Transactional Leadership
Continuum of Leadership Behavior
Likert’s Management System
Hersey Blanchard Model
Fiedler’s Contingency Model

Only 2 of the theories will be looked at in details, these are as follows: Contingency Theory or Situational Leadership – Behaviour should be contingent on the organisational situation at the time and on the people. This is also called Situational Leadership. One theory that is commonly used by organizations such as McDonalds in leadership programmes is Hersey and Blanchard (1993) theory: the readiness of followers. The leader matches the leadership style according to the readiness of the subordinates which moves in stages along a continuum. The ability and willingness subordinates have to completing tasks. Ability is defined as the knowledge, experience, Willingness is the motivation and commitment required by any successful organization. Behavioural theory: There are a lot of different thoughts on the way a leader should behave for example: Concern for task.

The extent to which the leader emphasises high levels of productivity, organises and defines group activities in relation to the group’s objectives. Concern for people. The extent to which the leader is concerned about his or her subordinates as people – their needs, interests, problems, development etc. rather than treating them as units of production. Directive leadership. The extent to which the leader makes all the decisions concerning group activities him or herself and expects subordinates to simply follow instructions. Participative leadership. The extent to which the leader shares decision making concerning group activities with subordinates. (From Westford School of Management PPT and Videos)

2.2: Create a leadership strategy that supports organizational direction Strategy is all about making plans for the future taking into consideration the competition along with the internal and external environment. In-order for a company to reach its future objectives it requires a good and strong leader to lead the company into the future therefore a good leader plays an important role towards the future direction of the company. In 1995, ARA owner of my company started his business with mobile phones wholes sale supplies.

After years of tough time and competition he decided to change his nature of business to Golf and Rugby wholesale dealership. In the fast moving economy that we are in and with the advent of technology and cultural diversification management and leaders have to implement the following successfully in-order to keep ahead of the competition.

 Developing Professionalism
Developing trust and belief
Developing Respect
Training Program

Developing Professionalism – Professionalism is of great importance to the future direction of the organization, business are no longer competing on a local level, Company leaders had to design and implement a strategy to deal with the cultural differences while creating a healthy work-force and a suitable working environment. Leaders need to develop certain rules and regulation these standards should be met to create more effective professionalism between employees.Developing trust and belief – Gaining trust is never easy especially when changes are involved, management has to create a strategy and implementing it properly, once the implementation is carried out effectively employees trust will begin to therefore the leaders and mangers can lead the company into the direction that is in the best interest of the company. Trust between staff and leaders or manager will create healthy working environment which will resulting positive effect and increase employees performance and productivity.

To create trust and belief leader should be friendly, honest and open. Leaders should be consistent, with these basic attribute employees will feel more relax and more at home therefore they will be willing to follow the company direction. Developing Respect – Company has to have respect for every employees including their suppliers and the general public, before a decision is made the leaders has to consider the internal and the external environment. This approach will build brand loyalty while creating and maintaining a healthy working environment. There should be no form of discrimination and if there is it is the leader responsibility to put measures in place to deal with such behaviors, leaders should ensure that they themselves are objective and no discrimination coming from their side.

Training Program – To achieve organization objective one of the major factor is training program to support the organizational direction. Those companies growing, it is very important for leadership and management to identify the need for training and development for the employees. (From Westford School of Management PPT and Videos)

3.1 Use appropriate methods to review current leadership requirements? With the advent of the internet companies are no longer competing on a local scale companies are now competing with each other for the same customers, competition has risen and the business environment has become fiercer. Business has to look at the market and change constantly if they want to keep ahead of their competition and lead the business into the future. The method that are being used in my company to develop management, employees into leaders are as follows.

Attitude skills

These methods are also use to help with the continuous development of leaders, organizations are no longer dealing with customers on a national scales they are now dealing with customers and employees on a global scales leader has to be more vigilant to understand the need and demands of the world as it is a very common trend for companies to trade globally. Leadership need to have wisdom, understanding, vision and mission to deal with these type of challenges. Coaching – Coaching & mentoring, both of which focus on the individual, can enhance morale, motivation and productivity and reduce staff turnover as individuals feel valued and connected with both small and large organizational changes. This role may be provided by internal coaches or mentors and, increasingly, by professional coaching agencies.

Coaching and mentoring programs generally prove to be popular amongst employees as coaching achieves a balance between fulfilling organizational goals and objectives whilst taking into account the personal development needs of individual employees. It is a two-way relationship with both the organization and the employee gaining significant benefits. Learning – Learning involves much more than information transfer that is why it is ineffective to present this Learning Organization concept as only another training technique. Learning and Learning Organization concept can’t be imposed, it requires an internal desire to learn and change. Additionally, learning, knowing and changing are complex and interdependent phenomena that will require researchers and managers to understand the logic embedded in the Learning Organization idea before its implementation.

Communication – Communication is even more valuable in a business environment as there are several parties involved. Various stakeholders, whether they are customers, employees or the media, are always sending important information to each other at all times. Without these different methods of communication available today, it would holder back the development of employees into managers and possible leaders, the effect would also reduce the development of current leaders. Engaging – This technique makes communication easier since it is nonthreatening with no one right answer. It is cost effective, especially if trainers have their own stories to tell. There are several advantages and disadvantages uses to develop their employees whether or not they or a lower level employee or a top level management, these are as follow.


Instructor-led classroom training is an efficient method for presenting a large body of material to large or small groups of employees. It is a personal, face-to-face type of training as opposed to computer-based training and other methods this ensures that everyone gets the same information at the same time.


Sometimes it is not interactive.

Too much of the success of the training depends on the effectiveness of the lecturer. Scheduling classroom sessions for large numbers of trainees can be difficult—especially when trainees are at multiple locations. Attitude skills – Most employers expect the manager to “fix” or “fire” the employee with a “bad attitude.” In fact, there is little the manager can do to “fix” the employee’s attitude. The employee must “fix” their own attitude. At the same time the manager’s attitude must be right to create an environment allowing the employee to refocus their attitude for a more positive and productive work effort. If the manager or the employee lacks the skills to make adjustments to their thought processes – attitude change for a more productive effort will not take place. The right attitude is critical to all aspects of organizational performance. Having the right attitude impacts:

 Job performance
Meeting quality standards
Sales potential
Customer service and support
Team spirit
Boss/employee relations
Coworker support
Stakeholder expectations

Leaders have to use their interpersonal skills to ensure the company is running and heading in the direction they want, a good leader has to have the ability to respond to changes in the internal and external environment. Employees are the most important asset to any successful organization and it is the leader responsibility to ensure that the environment is conducive for working. To achieve the high performance the company has to employ the right people for the right position, failure to do so can have a negative effect on the company. (From Westford School of Management PPT and Videos)

3.2 Plan for the development of future situations requiring leadership? 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. Leaders today have to be well informed and well aware of what is happening in the business environment. In-order for companies to compete better or to gain a competitive advantage over their competitors business often seek to merge or to take over other companies. This is an effort to gain more market shares. Technology is developing on a rapid basis therefore the leaders of both small and multinational organization ought to be well aware of any new technology in the market and any regulatory and compliance changes. Because companies are competing on a global scale this means that there is a likely development of cultural issues, therefore the company has to have continuous training and development to combat any future issues that might arise.

Emerging of new Technologies – One of the major challenges for the current leadership is technology; technology is growing very fast and taking over everything in an organization. Now there is more concept of virtual business or e-business where business in done mostly online and employees are scattered in most part of the world. Regulatory Compliances –The announcement of price hike of electricity, water price and the rent by the Uae government has reduced the profit earned. The decision is a direct plan for future development which will result in the company saving money and increasing the yearly sale turn-over in UAE. The labor factor is an area of concern and the regulatory compliances varies from country to country which has to comply with the different polices. The right policies and procedures are in place for systematic recruitment, selection and training of the workforce. The welfare of the employees is assured with the implementation of health and safety measures. A system is also provided to handle disputes, complaints, or grievances that may arise. High compliance is of great important to the organization, failure to do so can result in the company losing their licenses in the countries which may result in the company share price and profit taking a dip.

Cultural Diversity the Company has employees which are from different part of the world like UK, USA, SOUTH AFRICA, INDIA, PAKISTAN, PHILIPINES etc. The company train its people to work with others who are different from themselves. This is done in seminars and workshops, which include themes like “Gender Speak”, More and more organizations are diversified and people from all over the world are working together, therefore it is very vital for leaders to understand the requirement for such conditions. Leaders, Management and employees need to be more cooperative and should understand the requirement for other cultures. Leaders should develop more effective interpersonal skills to make all employee regardless of their cultural background, to feel comfortable working towards the same objectives. Strong leadership skills are required in the Functional Areas. Company ensures that optimum effectiveness is maintained in each situations and the functional area of the business, namely, production, finance, marketing, research and development, human resources, and administration.

Materials are carefully selected to manufacture its products. Suppliers are carefully selected and the company ensure that all their suppliers are reliable just in case of unforeseen event their day to business will not be affected. These plans help the direction of the company and while planning for the future development of the company. A high performance in Finance is achieved by effectively controlling expenditures therefore the company can look at future development and future expansion. Merger and Takeover – with the complex and competitive business environment of today it is very important that leaders full understand the need for merger and takeover, merging with another organization is never easy.

Leaders has to deal with the backlash of mergers, hence current leaders and future leaders of to communicate with the stakeholders and the shareholders of any possible takeovers. Merging with another organization is a very costly and sensitive issue and can cost the company dearly if this is not carried out with utmost care. (From Westford School of Management PPT and Videos)

4.1 Plan the development of leadership skills for a specific requirement? “Leadership is the art of leading others to deliberately create a result that wouldn’t have happened otherwise.” According to Alan Keith of Genentech cited States that, “Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen.” Leadership is a very important area for any organization regardless of the size of the organization, in today fast moving business environment business have to make future plans therefore it is very important that the leaders of the future develop the necessary skills that will help them to lead the company in the right direction. Leaders can develop their skills and employees skills by on the job training or formal Learning.Formal Learning – There are several new products being introduced, therefore companies like McDonalds has to groom their leaders and their employees. These can be done by sending the employee for formal training, seminars or in some case sending the leaders back to the class room. On the job training – is one of the most effective development methods in the companies.

Mumford and Gold (2004) cited by State that the process of the on the job training is to arrange and the purpose is to enhance the abilities of the employees in the corporate settings of the organizations. Organizational Leadership – The Organizational Learning which is the learning method in the organization which is highly appreciated and required. Mullins (2010) cited by States that the organizations that influence the employees on the regular bases with the knowledge and information. Organizations that promote learning is more likely to continue to enjoy great success. In-order to compete in the global market business, it has to empower their leaders and employees to a high standard. Employees are the most important asset of any business organization.With good training employees will be in a better position to represent the company very well and leaders will be in a better position to lead the company into the future while competing on a global scale. (From Westford School of Management PPT and Videos)

4.2 Report on the usefulness of methods used to plan the development of leadership skills? It is important for leaders to develop more skill to cope with future challenges, globalization and demands. As discussed earlier about current and future leadership requirements and leadership plan, it is very important that the method used for the improvement of leadership skill should be more effective and useful so that the objective can be achieved. “Leadership requires vision, enthusiasm, self-confidence, empowerment, action enabling of others, getting things done, and making things happen (David I.bertocci, 2009).

Formal learning is a very good way to improve skill and get further knowledge about upcoming challenges. The extent of which leadership competencies are acquired and used depends on the type of development activities that occur (e.g., training, experimental learning, self-learning), facilitating condition. Useful methods used to plan development of leadership.

Training – this method is very impressive and authentic in my company. If the trainings are given on the job then the employees can learn better and be the best part of the organization. Experimental Learning – Experimental learning within company engages employees in critical thinking, problem solving and decision making. This approach to learning also involves creating opportunities for debriefing and consolidation of ideas and skills through feedback, reflection, and the application of the ideas and skills to new situations. This method has been successful in company and has contributed to the success of the company business model. Self-Learning – the company’s employees are provided with online training material on McDonald’s website for self-learning purposes, so that they can learn at their own pace.

This way, employees don’t need to run after the management in order to be empower themselves with available information. Coaching and Mentoring – both of which focus on the individual, can enhance morale, motivation and productivity and reduce staff turnover as individuals feel valued and connected with both small and large organisational changes. This role may be provided by internal coaches or mentors and, increasingly, by professional coaching agencies. Develop Retention Programs for Current and Future Leaders – Monetary as well as nonmonetary rewards can be used to improve the retention of any employee, but particular attention needs to be paid to high performers and future leaders. The above are useful methods that are used by my company’s management team to develop leadership skills of their employees. (From Westford School of Management PPT and Videos)

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