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The Process of Strategic Management

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Strategic Management is a set of activities directed at an organization’s resources human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner. (Griffin, 1999)

Management process will comprises of:

Planning – Setting any organization goals and deciding how best to achieve them

Organizing – Determining how best to manage organization activities and resources including staffing

Motivating – Motivating staff members to work in the best interest of the organization while managing and leading them in front setting examples for them

Controlling – Monitoring and rectifying ongoing activities to facilitate organization goal achievements.

Strategic leadership is the process used by a leader to affect the achievement of a desirable and clearly understood vision by influencing the organizational culture, allocating resources, directing through policy and directive, and building consensus within a volatile, uncertain, complex, and ambiguous global environment which is marked by opportunities and threats. (Magee, 1998, ed.)

The activities outlined above will always highlight that all the organizations are always joined to one another by the universal process, regardless of their mission and culture that is designed to focus the drive of an organization in order to accomplish a common goal.

When you talk about the leadership of any organization it is the bridge between the strategic management and their targets. It is because of the leadership any organization accomplish their set targets and tasks.

Management is always responsible for the resources and people in an organization and according to the rules or values that have been set while the leadership set a direction to the people in the organization.

We could understand the link between strategic management and leadership by this example, that good leadership and effective management are always the key to a success in any organization and both of such skills which is going side by side and without proper management in an organization a good leadership can only satisfy for the time being not in a long term same as an effective management is nothing without the good leadership.

When great leadership is jointed with an effective management, you will be able to set a direction and to allocate the resources the way you want. Not only that, you will achieve your organizational goal the way you have thought and the way you want to achieve it.

Analyse the impact of management & leadership styles on strategic decisions

Usually in an any Organization the Management has plan and strategies and they focuses on execution of the strategy, while a leader always maintains the human resources and direct the employees, control, coordinate and motivate them to execute the strategy to the best of their ability and performance towards accomplishment of the goals of the business. The leadership styles and management can impact the organization strategic decisions because right leadership style is needed while making a strategic decision. Usually when you take the 5 leadership styles (i.e. Autocratic leadership, Bureaucratic leadership, Charismatic leadership, Democratic leadership, Laissez-faire leadership), while making a strategic decision for the organization, if a right leadership style is not followed then it will eventually lead to failure of the decision. In such circumstances the organisation should know which leadership style should be used in which kind of strategic decision. As we all know today the business environment is more competitive and therefore organizations should use best management and leadership skills in making strategic decisions to achieve organisational goals. Always a right leadership style is needed for the organization to be a success. If for any reason the right leadership style is not followed then the organisation would not be able to achieve its business objectives.

Evaluate how the leadership styles can be adapted to different situations

Leadership styles have a significant effect in any business environment. It makes a direct impact on everyone from senior managers to the newly joined staff members of any organization. Leadership style create the corporate culture that influences the organization and its performance

Let us know look at the most common leadership styles & how these styles can be adapted in different business situations.

Autocratic Leadership:

Autocratic style clearly defines the division between the leader and workers. The leader is always the decision maker, he is a dictator who orders tasks and does not allow the employees to participate in the decision making process. The employees are just the followers of the decision he makes. Such leadership style will be used in situations where the company has to take quick and efficient decisions and cannot afford to waste time in consulting with employees. In this leadership style the decision maker uses his absolute power to make a final decision which has to be followed by everyone.

Such leadership style is best for employees who are average or poor performer where the leader keeps an eye on the people who are supposed to perform the task on the given directions, which will eventually help to increase the performance of employees as well as the quality of work.

Bureaucratic leadership:

The bureaucratic style of leadership mainly focus on rules and procedures to manage teams. Such leaders mainly follow theories and procedures very strictly. This leadership style is best for situations where exact standards or methods are to be followed. Such leadership is used quite a lot in organisations which does not encourage innovative ideas or changes. Also this type of leadership style can be adopted by leaders who may be insecure and uncertain in their role within an organization. With such leadership style many employees may feel they have no value within the organization and will hesitate in referring difficult situations to a leader higher in demand.

This approach is commonly used in public services. Sometime there may be situations where the bureaucratic leadership style come in handy for example such as a routine job which does not change over a long period of time or the job requires a set of safety rules/guidelines in order to comply with the law. However if this style of leadership is used inappropriately then it can cause negative impact on organization, causing a lack of flexibility discomforts with teams/divisions.

Laissez-faire leadership:

Laissez-faire leadership is also known as delegate leadership, is a type of leadership style in which leaders are hands-off and allow group members to make the decisions. According to many a researchers this is generally the leadership style that leads to the lowest productivity among group members.

In such scenario there will be very little guidance from leaders & allows complete freedom for followers to make decisions & group members are expected to solve problems on their own & yet leaders still take responsibility for the groups decisions and actions

Democratic leadership:

In democratic leadership style the leader uses his leadership style to promote trust level within the co-workers and the decision maker. Such leadership style can be used in situations where the employees are motivated to participate in the decision making process. It is used in situations where the opinions of employees which can help in achieving the effective and efficient outcomes.

Such approach create working environments where every worker are allowed to share their ideas while making employees motivated to do their best since all are involved in the decision making process. Democratic approach is used in business environment who encourage creative thinking levels. Such approach will reduce staff turnover ratio since when the staff are encouraged to share their ideas they will become more committed to their work. Usually the leader motivate the employees to participate and discuss their feedbacks on decisions which will eventually increase the trust level of the staff members & the leader.

Charismatic leadership:

These leaders are the influencers for the employees and motivate the employees to perform to the best of their ability. The employees follow them with utmost good faith and high trust level. Such leaders use their personal charm to influence people. This leadership style can be followed in situations where organisation wants employees to put efforts to achieve extra ordinary performance.

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