Developing Strategic Management and Leadership Skills

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Assignment # 01

Mohsin Javaid M O03095P K

10/22/2010

Strategic Management and Leadership Skills of 26

Mohsin Javaid Student ID: MO03095PK

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T A B L E O F C O N T E N TS S. No Topic Page

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5 Task 1.2 )))))))))))))))))))))**(((((((02

6 Task 1.3 )))))))))))))))))))))**(((((((03

7 Task 2.1 )))))))))))))))))))))**(((((((03

8 Task 2.2 )))))))))))))))))))))**(((((((04

9 Task 3.1 )))))))))))))))))))))**(((((((05

10 Task 3.2 )))))))))))))))))))))**(((((((06

11 Task 4.1 )))))))))))))))))))))**(((((((32

12 Task 4.2 )))))))))))))))))))))**(((((((30

13 Conclusion )))))))))))))))))))**(((((((37

14 Self-89&:;&$<=,(()**)))))))))))))))))**((((((( 24

15 References ))))))))))))))))))**(((((((35

16 Bibliography )*))))))))))))))))))**(((((((35



Abstract Leadership and management skills and styles have been the most debatable topic in recent

history. Many people have devised new theories about leadership styles and skills. There are

many books written on this topic but none of them has reached to a common style. The styles

depend on the situation present at that time. So for a good leader/manager it is important to

exhibit different styles for different situation. Strategic Management is also an important

component of any organization. So after defining a strategy for an organization, the

leader/manager should take steps to ensure that the overall working of the organization is

going according to the strategy. A good leader/manager should be able to cope with the future

needs of the organizations and should keep in mind the impact of certain strategies on

organizations in long term.



My organization

I choose Iceland as the best candidate for my assignment due to certain reasons. Iceland is

one of Britain’s fastest-growing and most innovative retailers, recognized as one of the best

companies to work for in the UK. The 2010 Sunday Times survey of the Best Big Companies

to Work For in the UK ranked Iceland 13th in their top 20, up from 14th place in 2009.

Iceland give their employees clear objectives and expectations, with 94% of the respondents

to their most recent staff survey revealed that they are clear about what they are expected to

achieve in their jobs. At the same time, they also allowed more freedom for individual

initiative than most other retailers, as they believe that it is ultimately this sort of personal

touch that can make all the difference to their customers.

Source: (www.iceland.co.uk accessed on 13th

October, 2010)

http://www.iceland.co.uk/



Answers: Task 1:

Understand the relationship between strategic management and

leadership. '

Task 1.1: Explain the link between strategic management and leadership.

To explain the link between strategic management and leadership we should have a clear

understanding of what these two terms actually mean. After understanding these two terms

we can easily explain the link between them.

Strategic Management:

Strategy: According to Barratt and Mottershead (2000) (p.69), strategy is described as the

way of achieving our objectives. So we can say that strategy is not about ideas only. Defining

a strategy means that you are actually defining a road map for achieving your goals. When

we define the strategy we are actually working out a plan for the betterment of our

organization. Strategy enables us to ensure that all our work and things we do every day are

going to help us in the long term interests of the organization.

Source: http://www.activestrategy.com/images/Strategy_Circle_0.jpg

(Accessed on 19th

October, 2010)

http://www.activestrategy.com/images/Strategy_Circle_0.jpg



Strategic Management is the process of establishing and maintaining good strategies. Making

and defining strategy is not enough, you will have to work out a plan for implementing that

strategy in its true spirit. Good strategic management is plays a key role in approaching

business opportunities and challenges.

Source: http://barbaraevans.files.wordpress.com/2009/12/strategy.jpg

(Accessed on 18th

October, 2010)

Leadership:

There are different ways of describing leadership so it is very difficult to provide a single

definition that fulfills the task. As Brindley and Buckley (2004) (p.96) argued that,

“Leadership has been identified as the process by which individual and group activities are

influenced towards organizational goals”. The same thing is narrated in Business

Management Study Manual compiled by The Association of Business Executives (p.226).

They are of the view that, “Leadership is a process by which individuals are influenced so

that they will be prepared to participate in the achievement of organizational or group goals.”

While Marcousé (2008) (p.244) narrates that, “Leadership, at its best, means inspiring staff to

achieve demanding goals.” All these things emphasize on one basic idea and that is

Inspiration or Influence. So we can say that Leadership is the art of getting things done by

inspiration or influence of the leader on its followers while Management mainly depends on

the analysis and ground realities.

http://barbaraevans.files.wordpress.com/2009/12/strategy.jpg



Source: http://www.natcapwfs.org/images/leadership.jpg

(Accessed on 18th

October, 2010)

After all the discussion we came to the conclusion that Leadership and Strategic

management are interlinked with some minor differences. In the case of strategic

management we are trying our best to achieve some long term goals and the same is the case

with leadership. In both cases we should have someone with a broad vision; either it’s a

leader or a manager. The bottom line of all this discussion is beautifully captured by the

golden words of Field Marshal Slim that (quoted in Business Management Study Manual),

“Leadership is of the spirit, compounded of personality and vision: its practice is an art.

Management is more a matter of accurate calculation, of statistics, methods, timetable and

routine: its practice is a science.”

Task 1.2: Analyse the impact of management and leadership styles on strategic decisions.

Leadership and Management Styles: There is famous saying that, “Change is the only unchangeable thing in nature”. {Heller,

Hindle (2008)}. Similarly in our daily life things are changing rapidly and we have to adopt

ourselves to these changes. We can’t say that we will remain in the same situation forever.

We have to act according the situation. Similarly there certain ups and downs in

organizations as well. So the managers and leaders adopt different styles for different

situation. According to Whitcomb (2000), some famous and widely recognized styles are:

http://www.natcapwfs.org/images/leadership.jpg



Autocratic: In this style people are told what to do and how to do. They have no role in

decision making. Once made, a decision must not be questioned.

Democratic: In this style decisions are made on the views of as many people as possible

that are involved.

Passive: In this style people are given general directions on the tasks to be tackled and then

left alone to achieve them in the way they think is best.

Charismatic: In this style leader influences and motivates others because of his/her

outstanding personality or character. As I have said earlier that these styles depend on certain situations and to be a good

leader/manager you would have to adopt all of them. All these styles of management and

leadership have certain impact on strategic decisions. The organizations led by Autocratic

leader are basically Task Oriented. According to Jenkins and Hamman (2001), the advantage

of such style is that the decisions are made quickly because people know where they stand.

But the employees in such organizations are not happy to some extent because they have no

role in decision making. As Barratt and Mottershead (2000) is of the opinion that in

Autocratic leadership the Work-force is not encouraged to think for itself, and emphasis is

more on quantity than quality.

Source: http://www.davidpiccione.com/blog/images/leadershipstyles.png

(Accessed on 18th

October, 2010)

While the organizations led by Democratic leaders have proved good because they are

both Task oriented as well as Relationship oriented. But according to Barratt and Mottershead

(2000) the decision making process is slow and that can be dangerous.

http://www.davidpiccione.com/blog/images/leadershipstyles.png



And the organizations led by Passive style are Relationship oriented. And Marcousé (2008) is

of the view that this only occurs when the manager is very busy or very lazy or has

confidence on his/her team and knows what they are capable of.

According to Whitcomb (2000), Charismatic style of leadership is very rare but can be very

successful in the extent to which they can motivate others to do things to support them.

Task 1.3: Evaluate how leadership styles can be adopted to different situations.

Leadership styles can be adopted according to the situations. For example; during a war a

commander has to make quick decisions (Brindley and Buckley {2004}), or in the case of a

natural disaster there is no time for suggestions from the people, so autocratic style will be

perfect. The bottom line is that for quick decision you should always go for the Autocratic

style.

In the case of a Research and Development Organization, employees are highly

trained, skilled and professional people, so the style that best suits this situation is Laissez-

faire. Because employees know what they are doing and what are their goals.

And the situation that is the best candidate for Democratic style is a youth club

planning for their summer camp. They will have to take suggestions from all the persons

involved and then will make a decision. In this case the decision making process is slow but

WHO CARES.

Task2:

Be able to apply management and leadership theory to support

organisational direction.

Task 2.1: Review the impact that selected theories of management and leadership have on

organisational strategy in your chosen organisation.

Every single person on this earth is different. The difference may be in way of thinking,

analyzing something, working or implementing something. Along the course of life humans

made many theories about things around them, some of them were wrong and some proved

successful. Human are called the most superior species on planet earth and this superiority is

due to the fact that humans learn from their mistakes. So humans learnt a lot from their



mistakes and devised new theories. In this task we are going to focus our attention on the

different theories of leadership and management made during 19th

and 20th

century.

Theories of management and leadership:

According to Morris (1999), “The first-rate way of making a fool of oneself is to propose as

new an approach tried and rejected by earlier generations”. There are a lot of ways of doing

something, some of them have been tried before and some are not. So a successful manager

always learns from the past experiences and tries not to repeat the mistakes. The 20th

century

has seen many theories of management applied to the organizations; some of them are

described below.

T H E C L ASSI C A L SC H O O L : According to Morris (1999), this approach is based on the

main purpose and the structure of the organization. The organization is just like a machine,

just feed the input and get the output. The role and position of every individual is defined.

People are supposed to do things as mentioned by the higher level, human feelings are

irrelevant.

BUR E A U C R A C Y : The main emphasis is on the performance and duties of the individuals.

The duties of the all the individuals are fixed according to the area of their expertise. And like

Classical School theory, human feelings are irrelevant.

SYST E MS T H E O R Y : This theory was developed in 1950s and 1960s. The theory is based

on the working of a typical system. It takes certain input (raw material, people) and

transforms them through a process into output (organizational goals).

H U M A N R E L A T I O NS T H E O R Y : This theory was developed in 1930s. The main theme

of this theory is the human relations. The Association of Business Executives in

Organizational Behavior mentioned that, “to understand and improve an organization, you

need to understand the people who work for it.”

Contemporary Theories: These theories are based upon the idea of sticking to the key

functions of the organization and puts emphasis on going towards excellence.

Contingency Theories: This theory emphasizes that there is no single particular way of

running an organization. Everything is dependent on the situations through which the

organization is passing by.



Impact on Iceland:

Iceland is one of the leading organizations, with a vision of providing people everything they

need, under one roof at affordable price. Now we see the impact of the selected theories of

management on the strategy of Iceland.

The impact of Classical School theory on Iceland’s strategy is a bit disappointing

because Iceland believes in excellence with the help of its employees. So the Classical

Theory is surely going to inversely affect the strategy of Iceland.

The Bureaucratic Theory’s impact is similar to the Classic School Theory. But this

approach is providing a helping hand in organizing the overall working of the Iceland. But

only defining the duties of the employees and organizing them is not enough. The Iceland’s

strategy is to run the organization in a disciplined manner, keeping in mind the feelings of its

employees.

The impact of Human Relation Theory on Iceland’s strategy is not good enough. It

should be kept in mind that this theory alone is not enough to provide any progress in long

term. But the good thing about it is that it takes into account the ideas of all the employees.

The Contemporary and Contingency Theories have a good impact on Iceland’s

strategy. Both these theories are leading Iceland towards excellence. Changing the style

according to the situation and sticking to the overall performance is surely good enough for

Iceland’s progress in long term.

Task 2.2: Create a leadership strategy that supports organisational direction in your chosen

organization.

In the case of Iceland, we should create a leadership strategy that is able to maintain a

technical superiority, enhances the standards of the employees, reviews new theories for

creating scope of rapid future success and finally selects, develops and retains senior

colleagues who will help steering the organization in the future.

Source: http://www.emeraldinsight.com/products/journals/journals.htm?id=sl

(Accessed on 13th

October, 2010)

http://www.emeraldinsight.com/products/journals/journals.htm?id=sl



Source: http://www.womenpr.com/site/images/stories/leadership.jpg

(Accessed on 19th

October, 2010)

We have seen the impact of different theories of management and leadership on the strategy

of Iceland. And we came to the conclusion that there is no single theory that can support

Iceland’s strategy. Everything depends on the situation of that organization in a particular

time frame. So in the case of Iceland the best strategy that supports organizational direction is

the Bureaucratic approach along with a flavor of Human Relation theory. The Bureaucratic

approach will be helpful in achieving the organizational goals and keeping everything on

track. It will also help Iceland to maintain its day-to-day budgets in control and will make

some serious profits for the organization. The Human relation approach will take into account

the feelings and needs of the staff and the people attached with Iceland. It will ensure that the

workforce is enjoying its time working with Iceland and take their work to perfection. This

new combination will be very helpful in maintaining the discipline in the organization and

will be very beneficial for the employees. So the working and the progress of Iceland will be

very smooth. The people will be aware of their position and duty in Iceland and they will be

free to work out a plan for performing their duties efficiently. Although this new leadership

strategy seems a bit odd to many people but if it is implemented in its true spirit, it will be

very helpful.

Task3:

Be able to assess leadership requirements.

Task 3.1: Use appropriate methods to review current leadership requirements.

http://www.womenpr.com/site/images/stories/leadership.jpg



There are certain methods available for reviewing the leadership requirements. Some of them

are listed below.

Blake &,>(?=;:$=,@#(?&,&AB%<&:(A%<>: According to Mullins (2005), Blake and Moulton’s

Managerial grid is one of the several methods available for reviewing leadership

requirements. According to this method, all managerial and leadership styles are reviewed on

the basis of two main rules.

1. Concern for Results; and

2. Concern for People.

In the first case, manager diverts all its energy on the accomplishing of tasks in given time.

This is shown along the horizontal axis on the grid. While in second case, employees and

their needs are given importance. And this is represented along the vertical axis of the grid.

Barratt and Mottershead (2000) have narrated this grid as a Matrix of managerial styles.

C:&/B(&,>(?=;:$=,@#(?&,&AB%<&:(D%<> Source: http://www.gridod.com/images/LeadershipGrid.jpg

(Accessed on 19th

October, 2010)

The numbers inside the grid indicate the degree of concern of the mangers. For example;

managers with a rating of (9,1) practice Autocratic style because they show little concern for

the employees. On the other hand, a rating of (1,9) depicts the behaviour of a Democratic

manager. It is also referred as “Country Club” management by some authors.

According to my research and findings, the management style of Iceland, on the basis

of Blake and Moulton’s managerial grid, should be rated as (7,5).

360° Feedback :

http://www.gridod.com/images/LeadershipGrid.jpg



According to Mullins (2005), “The idea of 360° feedback involves an appraisal and feedback

from different groups within the work situation – peers and subordinates as well as bosses,

and possibly internal and external customers.” The main purpose of the 360° feedback is to

highlight the strengths and weaknesses of an individual or an organization. It may include a

self-assessment questionnaire. This feedback helps in overcoming the weaknesses and

exploiting the strengths of the organization.

Source: http://recordtracker.net/images/pic_360.gif

(Accessed on 19th

October, 2010)

M B O (Management by Objective):

Another common approach in reviewing leadership and management styles is Management

by Objectives commonly known as MBO. According to Mullins (2005, p. 249), MBO is a

system of management which is aimed at relating the organizational goals to individual

performances and development through the involvement of all levels of management. While

Morris (1999), is of the view that the top manager should set an overall objective, and should

convey it to the lower management for completion.

MBO is potentially an attractive system. It provides an opportunity for staff to accept

greater responsibility and to make a higher level of personal contribution. {Mullins (2005)}

http://recordtracker.net/images/pic_360.gif



Source: http://leapcomp.com/wp-content/uploads/2009/03/mbo-process-cycle2.gif

(Accessed on 19th

October, 2010)

?'*(D%BA=%E@#(.FB=%E(G(&,>(.FB=%E(H:

The figure defines both the theories in detail. The bottom line is that Theory X is Task

oriented and Theory Y is Relationship oriented.

http://leapcomp.com/wp-content/uploads/2009/03/mbo-process-cycle2.gif



Source: http://www.vectorstudy.com/management_theories/img/theory_x_y.gif

(Accessed on 19th

October, 2010)

Source: http://leadershipchamps.files.wordpress.com/2009/08/image.png?w=497&h=480

(Accessed on 19th

October, 2010)

Task 3.2: Plan for the development of future situations requiring leadership.

A good leader is always prepared for the any kind of challenge. He acts quickly and accurately

according to the given situation. We can say that a good leader takes the right decision at the right

time. I have listed a couple of future situations here that will require a firm leadership.

Conflict Resolution: You cannot stop conflicts from occurring between individuals and organizations.

Sometimes these conflicts are useful and sometimes they are not. When I say useful, it means that

sometimes new ideas are created from these conflicts. Or these conflicts point to a deficiency or a

week point in the management of the organization. So they are helpful in pinpointing the lapses. On

the other hand sometime these conflicts leave a bad impression. Whatever the reason is, conflicts

should be resolved smoothly. So for the purpose of conflict resolution a leader should be there with a

remedy. And it is then up to the leader to resolve that conflict in any way he likes; whether by

choosing Autocratic style or by Democratic style.

Merger and Acquisition: Another most important situation for an organization is merger or

acquisition. It’s a really very difficult decision. You have to be very accurate in your calculations and

should have a good insight of market trends. A leader with a vision and deep thinking is essential in

this case. Either you are going for merger or going for acquisition, you should be able to foresee the

state of your employees and organization in coming years.

Recession: A couple of years ago there was no concept of recession on a large scale. But now

many of the world’s most popular economies are facing difficult times. Now-a-days recession

has become a worst nightmare for many people around the globe. And according to the

http://www.vectorstudy.com/management_theories/img/theory_x_y.gif

http://leadershipchamps.files.wordpress.com/2009/08/image.png?w=497&h=480



economist it is the only chance for organizations to control their budget. So for recession

there should be a strong leader with a clear cut policy. This is the worst case scenario and a

true test of a leadership that how it overcomes recession.

Adaptation for change in technology, taste and performance: Change is the unchangeable

law of nature. And adaptation for change is very difficult for certain organizations and it may

be due to many factors. One of the key factors is that many old employees don’t welcome

change because they are used to work in old fashion and any change in technology, taste and

performance is a bit difficult for them. So a sincere leadership is required for any change to

become successful in organization, a leadership that is able to remove the ambiguities from

the minds of all employees about the nature of the change.

Natural Disaster: Another very important situation that requires a leadership is a natural

disaster. During the period of a natural disaster many employees and organizations are in a

state of ambiguity. They are unable to perform their duties efficiently. That’s why a firm and

dedicated leadership is required, that is capable of overcoming the difficulties, and is capable

enough to restore the confidence of the employees and organization.

Task4: Be able to plan the development of leadership skills.

Task 4.1: Plan the development of leadership skills for a specific requirement.

There are certain skills that every leadership should possess. True leaders have these skills in

their genes and others adopt them during the course of their life. But one thing is certain that

these skills are present in all the great leaders of the world. The possession of these qualities

is not enough; a good leader should be able to develop these skills and to be able to apply

them in accordance with the requirement. A good leader possesses the right skills and uses

them in the behaviour that best suits the current situation.

The main skill of a leader is its influence. A good leader always uses its influence on

its followers to obtain the best results. Inspiration can bring huge changes in organizations.

So a good leader should always try to develop and enhance its influence by empowering its

employees. So this skill can be developed by self-help by learning from mistakes. A good

leader should have good communication skills. He should be able to communicate easily with

his team members. Now-a-days the world is becoming a global village and to become a good



leader, one has to be able to understand the feelings of others. So a leader should practice

more and more to master this skill.

A good leader should always be adaptable to change. He should have a vision and he

should try to introduce modern ways of getting things done. He should encourage his staff to

use new technology and new techniques for their routine work. He should be confident and

determined in his vision. So he should arrange seminars and workshops to convey his vision

to his followers. A good leader should be unbiased; he should be able to manage diversity

within an organization. He should be role model for all the employees from any origin. He

should be punctual and honest. It’s only through his own punctuality that he can maintain

discipline in the organization.

A good leader should be able to communicate the policy and regulations of the

organization to every single employee. And that can only happen when he first exercises

them himself before communicating to others. He should be able to expand the organization

in all ways possible. He should be able to appoint new staff and train the old staff according

to the new technology. He should arrange training courses and other developmental activities

for his company. He should also use his powers to keep the organizations on track. And most

importantly he should use his power of rewarding for winning the heart of his employees. He

should be a good speaker so that in any situation he is able to explain the position of

organization in an effective manner.

A good leader should possess good coordination skills for maintaining the integrity

between different departments of the organization. Discipline should be the main thing for a

leader and there should be no excuse for it. Because it is the main factor that can change the

fate of the organization. A good leader should be honest and well-wisher of its people. He

should stick to his commitments and promises. A leader should be a good listener; it helps

him in overcoming the weaknesses of the organization and sometimes gives him a chance to

grab some new ideas as well.

Source: {By Akhil Shahani http://top7business.com/?id=2113}

(Accessed on 20th

October, 2010)'

Task 4.2: Report on the usefulness of methods used to plan the development of leadership skills.

There are certain methods that we can use to plan the development of leadership

skills. One of the best methods is to call a meeting of the staff and ask about their ideas. The

best method, however, is 360° feedback. It helps you in understanding your exact position in

http://top7business.com/?id=2113



organization. Another widely used method is to gather as much information as you can about

the life of great leaders. It will help you in adopting their skills and their secrets of the trade.

Another way of developing leadership skills is to get familiar with your followers. It will help

you in understanding their feelings and their needs, which in turn will help you in managing

their needs.

So we used different plans for the development of leadership skills including;

seminars, meetings, training courses, self-help, learning from mistakes and a lot others. All

these methods are very useful to plan the development of leadership skills. Seminars and

workshops are very helpful in understanding the point of view of other people. Training

courses help in understanding and overcoming new challenges. These courses help

organizations to implement effective ways of getting things done. They also help in creating a

learning environment in an organization. Meetings should be arranged regularly; this will

help a leader in developing his communication and coordination skills.

Another very important method is exchange visits. These are very helpful in

developing leadership skills. These visits may be between different sections of the same

organization or between different organizations. These are very helpful in developing the

leadership skill of managing diversity.



Conclusion This unit explained the link between strategic management and leadership. Leadership is the

art of getting things done by influence; while management is the science of getting things

done by the employees. Leaders are born and the leadership traits are in their genes; while

management is the game of statistics. Anyone can become a good leader by adopting certain

skills and techniques and applying them in their daily life. There are different styles of

leadership. No single leadership style is best for every situation. These styles have certain

impact on the working and progress of the organization. For a good leader all styles should be

adopted and applied according to the situation in hand. There are certain theories about

leadership like Classical School theory, Bureaucracy, Contingency and Contemporary

theories etc. These all define typical styles of leadership in different situations.

After all this discussion we came to the conclusion that for every situation there is a

different style of leadership and management. And good leaders use these styles in a balanced

way to fulfill their vision. There are different ways of enhancing the leadership skills for

future requirements. And there should be a plan of developing these skills. The plan should

cover all the current and future needs for leadership and is helpful in the overall progress of

the organization. Secondly, everyone should try to become a leader, and should have a vision.

It gives the direction and purpose to our lives.



Self-Evaluation This unit was really very helpful in understanding the concepts of leadership and

management. It helped me in understanding the similarities and differences between

leadership and management. It was useful in understanding the leadership requirements,

skills, styles and different theories in detail. This unit was helpful in understanding different

theories of leadership and management in practice. And the impact of these theories on

different organizations was helpful in understanding the whole picture. It helped me in

mastering the basic skills and techniques for making good strategies for organizations. The

strategies that are made after keeping in mind all the factors that are necessary for the

prosperity of any organization. It provided a base for understanding the future situations that

may arise for any organization. We practice different techniques for making a plan for the

future situations. Then we learnt how to remove any drawbacks from that plan. After all this

we had a good plan that was ready to resolve those situations in a proper way. This unit was

helpful in developing the skill for doing long term planning and setting a long term objective.



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Developing Strategic Management and Leadership Skills

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