Table of Contents INTRODUCTION...........................................................................................................................1 Summary......................................................................................................................................1 MAIN BODY...................................................................................................................................2 TASK 1............................................................................................................................................2 A.C. 2.1 - Evaluate the relationship between strategic management and leadership..................2 TASK 2............................................................................................................................................4 A.C. 1.1 - Analyse the impact of the organisation’s culture and values on strategic leadership.4 TASK 3............................................................................................................................................5 A.C. 1.2 - Discuss how organisational specific, legal, regulatory and ethical requirements impact on strategic leadership demands......................................................................................5 TASK 4............................................................................................................................................5 A.C. 1.3 - Evaluate current and emerging social concerns and expectations impacting on strategic leadership in the organisation........................................................................................5 TASK 5............................................................................................................................................6 A.C. 2.2 - Evaluate leadership styles and their impact on strategic decisions............................6 A.C. 2.3 - Discuss why leadership styles need to be adapted in different situations..................7 A.C. 2.4 - Evaluate the impact of leadership styles on the organisation.....................................8 TASK 6............................................................................................................................................9 A.C. 3.1 - Evaluate two differing leadership strategies...............................................................9 A.C. 3.2 - Determine situational variables which could cause a change in leadership strategy..9 A.C. 3.3 - Analyse a leadership strategy to support organisational direction...........................10 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Leadership can be describe as the capability and potential of individual that will help in influencing other as well as their performance. It is very important for organisation to have effective leaders in organisation that increase capability and potential of other employees to work in better ma manner (Covinand Slevin,2017). Strategic leadership will support company and its leaders to correctly manage employees along with this motivate them to perform business operations in required manner. Strategic leaders are focused towards achievement of business targetsandimproveproductivityofbusiness.ChosencompanyforthisreportisAirdri organisation. This company was developed in 1974 and founded in Oxfordshire, U.K. Founder of Airdri organisation is Peter Philipps and Peter Allen who were highly experienced and entrepreneurial engineers. This report will include relationship between strategic management andleadership.Impactonculturaloforganisationandvaluesofstrategicleadershipis determined. Legal, regulatory and ethical requirements affect on leadership is analysed. Various leadershipstylesandstrategicdecisionisanalysed.Apartfromthisdifferentleadership strategies are also analysed along with its support on organisational direction. Summary It has been analysed that leadership is one of the important part of organisation which will lead to have significant impact on performance and efficiency of business. Senior manager of company should have effective leadership skills in order to conduct strategic leadership practices in correct and appropriate manner. Strategic leadership activities of organisation will be highly influenced by organisational culture, ethics, values along with these legal and regulatory requirements of business. Implementation of effective strategic leadership practices in business will lead to have significant impact on performance of business. There are several leadership styles that will lead to provide guidance to leaders for correctly managing different situation of business. Leadership styles are used differently according to the situational needs and this will help in providing better support to company (Rothaermel,2016). It has been determined that leadership style will lead to have pros and cons for business. It is crucial for organisation to create better leadership strategy for organisation in order to improve its performance as well as achieving business objective. 1
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MAIN BODY TASK 1 A.C. 2.1 - Evaluate the relationship between strategic management and leadership. Strategic leadership– Strategic leadership can be describe as the potential of managers to express a strategic vision for organisation and its development. This includes use of effective and efficient strategy in order to enhance performance and productivity of organisation in order to attain set goals and objective of business. In Aridri organisation strategic leadership play crucial role in correctly implementing strategies of leaders and along with this develop potential of employees to perform business task in required manner (Berghand et.al., 2016). Leaders have required skills andtraits that will lead to have significant impact on functions and operations of business. As a senior manager of Aridri company, strategic leadership capabilities are very supportive in influencing and motivating employees to work in correct manner. Strategic management- Strategic management includes different management activities of business that will lead to have significant impact on enhancing performance and productivity of business. This refer as the management activities that is done through creative strategies of organisation. This consist of development of better objective of organisation as well as analysing business environment in correct and accurate manner in order to determining internal and external factors of business (Dyer and Dyer, 2017). Strategic management includes different important activities of business that will support in creating innovative strategies of organisation as well as gaining competitive edge over other rival companies to perform organisational task in more accurate manner. Difference between strategic leadership and strategic management Strategic management and leadership are very different from each other and this will lead to have significant impact on performance of business. Difference between strategic leadership and strategic management in mention below – Strategic leadershipStrategic management Strategic leadership is focusing on growth and developmentof business. Leadersof Airdri This is significant for analysing and evaluting internal and external environment of business 2
organisation is creating and defining mission and vision of business. This will help in better decision making process of company that will lead to success of business. in order to conduct organisational activities in better and effective manner.In this manager role is to take correct decision which is as per the analysis of business environment. Thisissignificantfordirectingaswellas inspiring employees of organisation to perform business task in more effective way. Strategic leadership will support in motivating as well as increase potential of staff member of that they canworkaccordingtotherequirementof business. Strategicmanagementincludesallthose activitiesthatisrelatedtoallocationof resourcesinordertoimplementthem accordingtotheneedsandrequirementof business.Thiswillhelpintakingcorrect decision for growth of business by evaluating strength, weakness, opportunity and threat. Relationship between strategic management and leadership. Strategic management and leadership activities are interrelated with each other that will lead to have direct impact on performance as well as productivity of business. Both of these are very important for organisation as this will help in increase capability of business in order to attain set goals of business (Norzailan, Othmanand Ishizaki, 2016). strategic leadership activities are majorly related to directing and influencing of employees. Where as activities of strategic management is related to planning, organizingas well as managing different resources of business. It has been analysed that strategic management will lead to allocate various important resources of business that will lead to smoothly conduct organisational activities. In this strategic leadership will provide vision that should be achieve by Aridri organisation to allocation of resources as well as implementation of business task. There are several important of organisation that will be enhance by successfully implementing strategic management activities along with this performing effective strategic leadership task in business. 3
TASK 2 A.C. 1.1 - Analyse the impact of the organisation’s culture and values on strategic leadership. Organisation activities is majorly lead to have impact on performance of strategic leadership. There are different types of organisational culture and these will lead to have impact on business strategy and leadership performance. In order to determining types of culture Handy’s model is considered. Handy’s model This model include four major types of culture on which organisation is performing its activities. Different types of culture are – Power culture– In this type of organisational culture power to take important decision is held by few individual only. They are responsible to taking major and important decision of organisation as well as creating rules.Business culture is majorly depended on the rules and polices of business.For example Manager or top authority of Airdri company is taken all important decision for performing business activities. Roleculture– Organisation which is based in role culturehave people have clearly defined roles and responsibility. This type of organisation have highly controlled culture and each employeeshave to clear set of targeted that needs to be achieved on time. For example all employees of respective company which is performing different task such as setting budget, developing marketing strategy and so on have clear ideas about their work. Task Culture– This includes organisation culture which is divided on task of employees (Joyce, 2016). Organisation that follow this type of culture has divided employees into teams and functional department so that they can carry business activities correctly.For example employees are working with clear task such as marketing, human resource, finance etc. Person culture– In this type of organisational culture employees andstaff member are more important as compare to other business activities. In person culture, people consider themselves superior to business.For example lawyer, teacher or trainer. Aridri organisation is based in task cultureand this is significant in completion of business task and activities on right time. This type of culture will lead to have major impact on leadership activities. In respective organisation, strategic leaders will provide direction to employees as per the task requirement. Employees are divided as per their functional department 4
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and team. So that leaders are able to conduct their activities according to the needs of functional department and teams. TASK 3 A.C. 1.2 - Discuss how organisational specific, legal, regulatory and ethical requirements impact on strategic leadership demands. There are different legal and ethical requirement that needs to be consider by organisation while performing business activities. These laws and acts will lead to affect strategic leadership demand of organisation as well as influence the process of decision making. Equality Act– This act is related to providing equal and fair opportunities to employees irrespective to their age, gender, colour and so on (Shao, 2019). It is important for Airdri organisation to provide right and equal salary to employees as per their work as well as contribution in achievement of organisational objectives.For example equality act with in organisation will lead to enhance motivationas well as positively impact over strategic leadership demand. Health and safety act– This act was developed in 1974 and it state that it is essential for organisation to take correct steps and measures in order to provide health and safety to individuals (Rahmanand et.al., 2018). Respective organisation is consider this act as ethical responsibility and focusing on maintaining health and security of employees that areperformingorganisationaloperations.Airdribusinessiscreatinghighquality products which does not harm customers.For example consideration of health and safety act will lead to provide proper guidance and direction so that correct and accurate measure are taken by company for maintaining safety of employees. Theselawsandregulatoryaccordingtowhichrespectivecompanyisperforming organisational function will affect its leadership demand. Strategic leadership is the capability of a person to influence other as well as manage behaviour. So that they work according to requirement as well as full fill the needs of customers. It is crucial for leaders to enhance ethical behaviourandconsiderallactsinbusinessactivities.Implementationoforganisational operation in ethical manner as well as following all set of laws will lead to increase the demand 5
of strategic leadership in business. This is very effective in directing employees to work in right manner as well as consider moral of business in providing products and services to customers. TASK 4 A.C. 1.3 - Evaluate current and emerging social concerns and expectations impacting on strategic leadership in the organisation. There are several social concern that will impact on strategic leadership activities of organisation. it is essential for Aridri organisation to focus on current and emerging social concern in order to correctly and effectively perform organisation activities. It is very important for organisation to take into account of social issues and problems as its is moral and ethical responsibility of business. Airdri organisation is taking various resources of society and its is social responsibility of organisation to go beyond profit making process of business and meet with the demand of customers. The major current and emerging concern of social issues is related to discrimination activities as well as differentiation on the basis of gender or background (Mutia,2016).For example discrimination between different employees with in company will lead demotivate employees and affect the overall abilities of employees to perform task, It is essential for organisation to take correct and accurate decision which is significant for reducing issues of discrimination and increase employees performance.Discrimination practices will lead to have major impact on performance as well as capability of person.This is one of the major social concerns that will have negative impact on society as well as its people. Strategic leadership activities of respective company will be influenced by current and emerging social concerns as well as expectation of customers with business. As per this social issues or expectations, leaders of respective company will perform their activities accordingly in order to meet with needs of customers. Strategic leadership decision and practices will be completely based on these social issues. For example strategic leaders of Aridri company is considering anti discrimination law in organisation. This policy of respective company will assist in performing organisational activities in correct and ethical manner. Due to this act company will be able to increaseitsperformanceandproductivity.Considerationofantidiscriminationactin organisation will increase employees moral as well as motivate them to use full potential while performing organisational task. It will have positive impact on business as Airdri company will be able to develop strong brand image in market area. This will have some negative impact on 6
business such as it is very difficult for organisation to all of business activities and follow anti discrimination act while performing various organisational operations. TASK 5 A.C. 2.2 - Evaluate leadership styles and their impact on strategic decisions There are different types of leadership style that will help in directing and supporting organisational activities to perform business task in better manner (Chan,2018). Leadership styles are the way through which leaders are influencing employees and well as directing them to attain set goals of business. Autocratic leadership style– Autocratic leadership style can be described as the way in which leaders are guiding and supporting employees. In this type of leadership, employees have to follow rules and regulation that is by leader. Pros- Leadership is considered as effective leadership style in timely completion of task and fast decision making process (Kaufman,2017). This leadership style will lead to take strict strategic decision for performing organisational activities. Cons- In this leaders are responsible for making all major decisions follow the instruction of leader. Leaders are not considering the inputs of employees while making decisions. Employees are expected to follow the direction of leader in order to timely complete the required task.Leaders will not consider the opinion of employees while creating strategic decision for business. Transformational leadership style– Transformational leadership can be described as the style of leader in which they are focusing on transforming potential of employees. This is very effective leadership style improving capabilities and potential employees in order to complete business task in required required manner. Pros- Leaders are constantly pushing employees to come outside their comfortable zone. This is beneficial for employees also as they will be able to learn new skill and develop theirpotential.Transformationleadershipwillleadtotakestrategicdecisionfor improving skills and transforming capabilities of employees. All strategic decision of leaders will be based on the learning needs of employees in order to increase productivity and performance of overall organisation. 7
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Cons– This is very risky leadership style as it can result in wrong decision making. It is very challenging for leaders to identify the skill of individual as well as transform the persons capabilities. Supportive leadership style- Supportive leadership is considered a s the most effective leadership style. In this leaders are supporting employees in their work as well as completion of business task. In this type of leadership both leaders and employees are responsible for taking decision regarding business. Pros- This will lead to a significant impact on moral of employees as well as increased therecapabilitytoconducttask.Leadersaresupportingemployeeswhiletaking important decisions and directing them effectively conducting. In this type of leadership style, strategic decision of leader will be based on the views of employees. In this leaders of company will develop strategies that will support employees to perform task in better manner. Cons– This leadership style will lead to put more pressure on employees as they have to take decision for performing task. It will lead to affect over capabilities of employees as some employees are not able to handle pressure. A.C. 2.3 - Discuss why leadership styles need to be adapted in different situations Leadership style is very important for Airdri company as this will help in increasing performance of employees in different satiations. It is important for organisation to consider different types of leadership style as per the situation of organisation (Witts,2016). It has been analysed that differentleadership style will lead to have positiveimpact on perform of organisation as well as enhance capability of business to conduct required task in correct manner. For example if respective organisation is planning to implement changes in business operation then according to this situation respective company should consider transformational leadership. This leadership style will lead to transform capability and potential of employees according to organisational needs.Transformational leadership is significant for enhancing performance and potential of employees as well as increase their capability to conduct business task in more effective manner. By this leadership style, leaders of respective company will be able to successfully manage the overall performance and conduct task as per the changes in business operations.Through this leadership style on this situation respective company will be able to 8
transform employees according to business requirements and successfully implement changes in organisation. Where as supportive leadership is more suitable when company have highly competent employees (Beliasand et.al., 2017). Airdri needs to consider supportive leadership style when organisation want to introduce new and innovative strategy in organisation. This leadership style will lead toincrease the moral of employees as well as take better decision for growth and development of business. When employees of organisation are highly capable to make better decision and strategies for company then supportive leadership is the most effective strategy that should be consider by respective organisation. A.C. 2.4 - Evaluate the impact of leadership styles on the organisation Leadership style will lead to have different impact on business and its operations. For Airdri organisationsupportive leadership will be most effective and efficient in order to attain its goals and objectives. It has been analysed that supportive leadership style will lead to have positiveandnegativeimpactonrespectivecompany.Advantagesanddisadvantagesof supportive leadership is mention below –Advantages–Supportiveleadershipstyleiseffectiveinprovidingassistanceto employees as well as increasing their productivity for conducting organisational task. This style of leadership will lead to enhance level of job satisfaction in employees as well as attain set goals of business (Wang,2016). Leaders will be able to engage employees in organisational task in order to motivate them. Supportive leadership will increase the quality of employees performance.For example supportive leadership of Airdri company will help employee to increase their performance by providing them complete direction. Leaders will provide expert advice to employees that will enhance their potential. Drawbacks– The major disadvantage of supportive leadership style is that it will slows down the process of decision making. it is very time taking process as it includes leaders and employees point of view and discussions. There are high chances of security issues as this involve many people in decision making process. Various employees to aware about the important information of organisation.For example employees will take support form leader in order to perform any task in effective and efficient manner. This is very length process and it will delay in attaining goals. 9
TASK 6 A.C. 3.1 - Evaluate two differing leadership strategies. Leadership strategy refer as the strategy that is used by respective organisation in order to carry out leadership strategies of organisation (Johansson and Bäck,2017). There are different leadership strategies that could be used by organisation in order to effectively perform business activities as well as attain desired goals. Define and communicate vision– It is very important for organisation to develop and create vision according to which all important task of business will be performed. Leaders of Airdri organisation to responsible for defining vision of organisation as well as communicating it to customers. This will help in providing proper direction of employees in which business activities will be performed. Encourage recognition– Aridri company needs to encourage recognition practices in business.This is very effective and efficient strategy of respective company that will lead to boost moral of employees as well as increase their performance in order to conduct business task in required manner. Recognition and appreciation of great work of employees will help in motivating them as well as increase job satisfaction level. A.C. 3.2 - Determine situational variables which could cause a change in leadership strategy There are different situational variables that can lead to changes in leadership strategies. Airdri company is developing leadership strategy according to the requirement of business. Situational variable can be describe as all those factors that occurs because of changes in market area. Due to changes in internal and external business environment strategy of organisation should be modified according to situational changes (Kising’u,2017).For example changes in market trends, need of customers or political policies then it will directly affect the functioning of company and performance of employees.Employees performance and productivity can lead to changes in leadership strategy of respective organisation. It is crucial for Airdri organisation to create strategy that will lead to enhance performance of employees. Changes in technology of business can be consider as the situational variable that could have impact on leadership strategy of organisation. Leaders of respective company have to create leadership strategy which is according to modification of business process due to changes in technology of organisation. 10
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A.C. 3.3 - Analyse a leadership strategy to support organisational direction. Leadership strategy is develop especially in order to provide support to organisational direction. Strategies that is developed by Airdri organisation will lead to have impact on its performance as well as capability of organisation to effectively conducting business task. There areseveralstrategiesofleadershipwhichissignificantinenhancingperformanceand productivity of organisation.For example leadership strategy to support employees is signifiant for increasing performance and capabilities of employees. Support leadership will helpto provide proper direction to employees so that required task can be conducted in more appropriate manner.Leadership strategy includes set of direction that is developed in order to provide guidance to employees. so that they can work according to the requirement and needs of business. Leaders should have strong knowledge about all aspects of business as well as its employees in order to provide proper direction . leadership strategy such as distribution of responsibility among different employees will lead to support in organisational directions. Through this strategy respective company will be able to support and direct employees according to their task performance as well as their skills to conduct business task (Najmi,Kadirand Kadir, 2018). Leader should adopt strategy of open and honest communication as this will help in enhancing relationship between employees and leaders. Effective communication strategy will help in providing information to employees as well as directing them to perform business activities according to organisational requirements. CONCLUSION From the above report it can be concluded that leadership play crucial role in increase performance and capability of employees to conduct business task in more effective and efficient manner. There are different impact of strategic leadership in business and its operations. Different types of leadership style are used differently in different leadership styles. Apart from this it has been determined that leadership strategy will support in increasing productivity and performance of business in order to attain objective of business. 11
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