STRATEGIC MANAGEMENT AND LEADERSHIP

Strategic Management and Leadership

Strategic Management and Leadership

Introduction

The aim of this work is to develop an overview of the New Paradigm of Strategic Management, in order to direct it into paths that allow the participation as a prerequisite for improving competitiveness and achieve the desired future. It also seeks to provide tools for adequate control which can result in strategic benefits for the organization. In this case, the emphasis will be on discussion regarding leadership, various theories and style related to leadership, planning the development of leadership skills required to meet future challenges, and the impact of leadership styles on strategic decision-making.

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

Leadership

Leadership is the ability of a person to deal with the circumstances, occurred in the processes with the strength to manage the people by conducting such behavior, which seems to inspire all. Leader is not the boss but the personality which enables you to follow him. The quality to lead others makes the person different. Sometimes the quality is God given and sometimes it is developed through certain methods. The leaders understand them well and know what they can do. The inspiring capability of the leader determines his capability to work as the one who make people understand him. Leader understands the overall strategies going on and makes people understand how to work on them. The person who has the quality of leadership is not the stagnant one; the trait enables him to pursue growth at every moment. Leaders seek improvement in every work they do. They know when to communicate and when to motivate their followers (Bartone Snook & Tremble 2002).

Differences between leadership and Management

Leaders have followers who are inspired by them while Managers have subordinates who have to obey them. The inspiring factor is missing. Leaders with their charismatic power make people follow them while by obeying manager people knows that they will get some reward(e.g. salary) while Leaders make people believe that the followers will not only get the rewards but the personality development as well. Usually leaders seek change by leading people while managers seek stability by managing work. Leaders are on long-term basis as they have vision, they are pro active with excitement for work while managers are on short term basis as they have objectives, and they are reactive.

Similarities between leadership and Management

Now if we look at the similarities we will find that both are goal oriented that is both are aiming to achieve the goal, both assemble and make the most of the resources. Management and leadership both involve supervisory functions. Furthermore, both work with people.

1.2: Analyze the impact of management and leadership styles on strategic decisions:

The process of decision-making is influenced by the various management and leadership styles. Strategic decisions and the decision-making process may vary from organization to organization. If there is an autocratic leadership style, then it is most likely that there will be sole decision makers who will not encourage employees to participate in the ...