This document discusses strategic management and leadership, including personal development plans, decision making, and financial data analysis. It provides insights on how to improve organizational objectives.
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Running head: STRATEGIC MANAGEMENT AND LEADERSHIP 1 Strategic management and leadership Name: Institution:
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STRATEGIC MANAGEMENT AND LEADERSHIP2 TASK 1 A.C. 1.1 Construct a personal development plan to address short, medium and long term needs A personal development plan (PDP) is a tool that assists employees to grow both in career and at a personal level (Zepeda, 2013). A person needs to focus on the skills, abilities and knowledge that he should attain within a given period of time. The table below illustrates an example of a PDP for a strategic manager: Personal Development Plan LONGTERM GOALS GOALSHOW TO ACHIEVE TIMEFRAMEOUTCOME Gain more experience Job hunting3 yearsRise to better job positions Join professional body Apply for certification 3 yearsBe recognized professionally Obtain cross- sectional expertise Set visits to other managers 2 yearsGain competitive advantage Complete postgraduate studies Find flexible hours to attend tuition 3 yearsGain more knowledge
STRATEGIC MANAGEMENT AND LEADERSHIP3 MID TERM GOALS Improve job performance Identify a role model 1 yearBe more resourceful Improve public speaking abilities Prepare and deliver presentations 1 yearBe a good presenter Improve ability to lead change Read books on leading change 6 monthsBring positive change Develop strategic thinking abilities Attend seminars on strategies When available as scheduled Formulate good strategies for the company SHORT TERM GOALS Improve communication skills Attend trainings6 monthsCommunicate effectively Coaching and developing my team Ask members to develop PDPs Next weekImproved work performance Learn how to handle conflicts Read books on conflict resolutions Daily eveningsBe a good problem solver Wake up earlyDevelop a habitDailyPerform tasks on time
STRATEGIC MANAGEMENT AND LEADERSHIP4 Read oftenPurchase booksDaily after workObtain more knowledge Listen activelyPractice listening skills As soon as possible Pay attention to details Develop good communication skills and body language Practice good communication skills 1 monthConvey messages effectively A.C. 1.2 Evaluate the impact and relationship of a personal development plan on own development and achievement of organisation objectives Personal development is a continuous process of growth in skills and expertise of an individual that seeks to enable one to set and achieve goals successfully. It sharpens an individual into living quality life and hence reaching the self-actualization ladder (Pedler, Burgoyne, & Boydell, 2013). Not only does personal development enhance achieving of personal goals but also organizational objectives. Through setting the goals and striving to achieve them, employees transfer the same energy to the organization through motivation. Motivation will enable individuals to work extra hard to meet the set targets by their superiors, to go an extra mile into research and innovation and hence quality output to the organization. Personal development also assist individuals identify their areas of strength and weaknesses in the SWOT analysis (Noe et al, 2017).Through these analyses, they are able to identify areas that bring out the best out of them hence increase productivity at work. Individuals are encouraged to face the threats in their surroundings and grab in the available opportunities for growth. Personal Development Plan
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STRATEGIC MANAGEMENT AND LEADERSHIP5 (PDP) on the other hand helps individuals determine their long, short and medium term goals (Desimone, 2011).Identifying the available opportunities set the action plan and then continuous monitoring and evaluation to realize the outcome. This is a key factor that employees can incorporate in the various organizational projects they are working in to ensure successful execution of the work. Through frequent changes in the set goals, analyzing and effective implementation, the organization will successfully plod through its goals. Higher targets and goals will eventually be realized. The impact of PDP can be measured in organizational objectives through: Increased rate of employee retention at work (Eisele et al., 2013). This is because it provides a boost in the employee performance which directly impacts to organizational goals .It also cuts down on costsand time used by management to track employee development and performance appraisal. Employees are hence able to match their personal goals with that of the organization.PDP are vital in setting SMART goals and working them out. Employees have a clear position in the organization and their well defined responsibilities in achieving tasks. It enhances development of high skills and expertise that promote expert findings in business. This is a greater way to discover individual talents and mobiles them towards organizational goals. PDP can be measured through record keeping and analysis, having regular checklists, quantitatively by using rates and figures and also by subdividing the goals into smaller bits that can be tackled one at a time. Goals broken into small goals are then allocated into the time schedule that ensures an individual stick to the plan and achieve the goals within the time frame. Quantitatively, development can be measured through increased output at minimum costs and hence profitability. Organizations are delighted to know that they are moving forward when
STRATEGIC MANAGEMENT AND LEADERSHIP6 preparing income statements of a given period. Keeping records is necessary for future referrals. This will greatly enhance problem solving in the organization when problems emerge. It also will have a combination of alternatives that work for the organization in moving forward. Regular checklists are important in showing completed tasks, work in progress and also tasks that are yet to begin. In the organization checklists will give management a list of completed projects and those that are yet to be finished or started. This will ensure that the resources are channeled in the right direction. For stagnating projects, management can quick start them and also push for completion of work in progress. It is very important to ensure that no projects are dragging behind and that the factors of production are utilized to the maximum. Rating can also be used to measure personal development by having scales, you choose and make sure you reach the highest scale. Organizations hence set high targets and work towards them then set even higher bars to challenge employees to reach them. A.C. 1.3-Analyse how the development plan affects, or could affect, achievement of organisational objectives Personal development plans should go hand in hand with the goals of the organization in order to achieve a similar goal by both the employee and the organization as a whole. Having this plan will add value to the organization because it focuses on improving the skills of an employee and strengths and as a result it will lead to the well being of the organization through improved performance. Employees should identify the connection between the company’s objective and his/her own personal objectives. They should then consider connecting their goals with the strategies of the company so as to archive the same goal for the stated period of time. The employee should also be able to explain his/her weakness and how it affects the performance of
STRATEGIC MANAGEMENT AND LEADERSHIP7 the organization. After identifying his weakness he should find proper ways of dealing with it so that it will not continue to affect the performance of the organization. An example in the above PDP plan scenario is that the strategic manager knows very well that he has little knowledge about the work he is doing, he considers going back to school to advance on his studies to sharpen his knowledge and skills. After completing his studies, he will be well equipped to handle his tasks and will also take up new challenges which will at the end contribute to the performance of the organization positively. Another case example is where the manager states in his PDP that he wants to coach and develop his team by asking them to develop their own PDPs. This will have a positive impact to the organization because every member will be able to understand his/her weak points and work on improving them. A company should take lead in motivating and encouraging its employees to prepare their own personal development plans. This is because it has a great significance to the performance of the organization since it increases productivity.
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STRATEGIC MANAGEMENT AND LEADERSHIP8 TASK 2 A.C. 2.1 Determine the data and information available to the strategic manager for decision making The following are the types of data and information that can be used by a strategic manager in decision making: 1.Descriptive data This type of data focuses on primary data that is collected from different sources to give insights into the past(Tesch, 2013).This type of data is not reliable to be used for decision making since it only states what happened but does not go ahead to explain why it happened. An example of this data can be a marketing manager saying he only managed to reach 10 new clients for the entire month. For this case strategic managers prefer to combine this type of data with other types before analyzing and coming up with a decision. 2.Diagnostic data This data gives a deep explanation to a particular problem because it tends to explain why something happened. With these types of data a strategic manager will be able to keenly find out reasons as to why something happened and be able to draw solid conclusions to which he can consider while making decisions. 3.Predictive data This data tends to predict what is likely to happen in future. It uses findings obtained after carrying out descriptive and diagnostic analysis to detect and predict future trend. This makes strategic managers to consider it as a powerful tool in decision making and predicting what will happen in the future. It is a good tool in forecasting however its
STRATEGIC MANAGEMENT AND LEADERSHIP9 accuracy depends on how reliable and accurate the data obtained from descriptive and diagnostic methods is. 4.Prescriptive data This type of data is only useful in giving recommendations on what is to be avoided in future and what is to be maintained or improved. However these information may not be accurate because it s based on assumptions and probabilities. It tends to combine mathematical data and other business rules. It’s used when an organization has a large impact on the overall performance and tends to expand in future.
STRATEGIC MANAGEMENT AND LEADERSHIP10 A.C. 2.2 Identify core financial data, analyse the data and draw conclusions The table below shows comparative income statements for ABC Company for the years ended 2017 and 2018 ABC COMPANY INCOME STATEMENT FOR THE PERIOD ENDING 31, 2017/2018 Increase/decrease 2018 $2017 $Amount $percentage Sales1,500,0001,200,000300,00025% Cost of sales1,100,000900,000200,00022.2% Gross profit400,000300,000100,00033.3% Selling expenses200,000150,00050,00033.3% General expenses104,00090,00014,00015.6% Total operating expenses304,000240,00064,00026.7% Operating income96,00060,00036,00060% Other income8,00010,000(2,000)(20)% Total income104,00070,00034,00048.6% Other expenses5,00010,000(5,000)(50)% Income before tax99,00060,00039,00065% Income tax50,00027,00023,00085.1% Net income49,00035,0005,00014.3%
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STRATEGIC MANAGEMENT AND LEADERSHIP11 ABCCompany registered an increase in its net income by 14.3% in 2018 as compared to 2017. This is a good indication as the income improved on its productivity from the previous financial year. This could be explained as a result of a 25% increase in sales recorded. Also ABC Company recorded a 26.7% increase in its operating expenses; this could be due to increases administrative costs, or additional expenses of adopting new strategies. If this company continues with trend of increasing its sales over the coming years it will reach greater heights. A.C 2.3 Discuss methods to recommend a course of action, or Organisational improvement, as a result of conclusions, including methods of presenting the recommendation The final stage of strategic planning is coming up with an action plan which clearly indicates roles of the employers and the employees play in implementing a strategy by a given period of time. Action plans are essential in strategic planning since they help the employees to understand what exactly needs to be done and the key roles they will play in the implementation of the work plan so as to put the organization’s strategies into place (Oettingen, & Gollwitzer, 2010). The first step of implementing an action plan is raising awareness among the key stakeholders of the organization (Steiner, 2010). This is done by providing information about the analysis that has been carried out either through organizing workshops and conferences. Training is the second step of implementing a course of action. It’s done to equip employees with knowledge and skills to use while practicing their roles in implementing the course of action. The last step is monitoring and reporting. A strategic manager should perform regular updates, conduct periodic views and identify important corrective actions to know if employees are meeting their set
STRATEGIC MANAGEMENT AND LEADERSHIP12 targets in implementing the course of action. In order to meet the performance target, it is essential to carry out a periodic review of the activities mentioned in the action plan so as to find out how far the company is in terms of implementation of the action plan so as to meet the company’s objective to achieve desired goals for the given period of time. Team work is a key element in implementing a course of action (Nancarrow et al, 2013). This is because work is made easier and effective when efforts are combined by different employees. It also saves on time.
STRATEGIC MANAGEMENT AND LEADERSHIP13 TASK 3 A.C. 3.1 Outline the core marketing concepts relevant to the role of a strategic manager It is very essential for an organization to have a marketing concept since it provides guidance and helps a company to prioritize satisfying the needs of their customers by concentrating on the demands of the customers (Baker, 2014). Strategic managers need the following core marketing concepts: New product development, best pricing, distribution and promotion of the same products. Through regular research, companies get to know the changes in customer preferences and demand. This gives an idea of how to come up with what customer wants and avail it in the market. New products should have key feature to beat those of their competitors. The product should also be cost effective hence affordable and durable to their customers. Through branding and advertisement of the same products, companies reap huge profits by establishing where to sell them and how much to sell at. When new products enter the market, new market segments are created hence new customer base (Kotler, 2015). From idea generation, screening of the idea, concept development and testing and marketing, strategic managers carefully develop these products to enhance sustainability in the market. Pricing strategies seeks to ensure that the product is sold and the best price while at the same time ensuring the organization reap maximum profit from it. Selling the product at low prices will help achieve maximum sales and revenue however, profit will be lowered. On the other hand, selling the product at higher prices renders high profits but reduce the sales volumes of a particular
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STRATEGIC MANAGEMENT AND LEADERSHIP14 company .In both cases, strategic managers found out that they could lead to lower gross profit and hence the need to find the best selling price. Customers would demand to know the reason for increased prices thus managers need to come up with justifiable reasons while maintaining higher profits and sales volumes and also customer satisfaction. Most companies decide the optimal prices through guess work but strategic managers’ use cost data of pricing and sales volumes. Graphically, profit maximizing price is obtained whereby marginal revenues is the same as marginal price. Effective marketing will ensure effective distribution of products and services into the target market to customers (Armstrong et al, 2015). In the distribution strategy, managers employ vast methods such as wholesaling, retailing, use of direct sales representatives, distributors, merchandisers and also middlemen. The best distribution strategy is the one that bears high sales and hence high profits. Managers in this case need to closely monitor distribution and pick the core methods that can be permanently be employed by an organization. Distribution also must ensure the right products and right quantities reach the market in the right time. This is to make sure that demand in that market is met adequately through maximum supply. Distribution is sub divided into: exclusive distribution whereby products are stored into distribution center and thus the company has maximum control while Intensive distribution opens more outlets into the market to maximize sales. Selective distribution on the other hand carefully picks numerous channels and partners to help in delivering their products into the market. Once distribution is done, managers take to promoting these products and services. Creating the necessary public relation through advertisements, use of social media, provide bonuses and discounts. The main aim of this strategy is to influence customers into buying goods and services and hence develop demand. Promotion provides good business strategy to increase sales, create
STRATEGIC MANAGEMENT AND LEADERSHIP15 consumer awareness, enhance product variety and differentiation and also provide competitive information from their rivals (Fahy & Jobber, 2015). Promotion should ensure information reach as many people as possible to create a wider range of markets and thus sales volumes. The marketing concept relies on four pillars to be successful. These are the target market, the customers’ demands, integrated marketing and profitability.
STRATEGIC MANAGEMENT AND LEADERSHIP16 TASK 4 A.C. 4.1 Explain methods to be used to identify and agree an increase in staffing levels. Staffing levels is defined as having the correct number of people who are well equipped with knowledge and skills to work in an organization at a given period of time to enhance the performance of the organization. In order for an organization to recruit new employees and retain the existing ones, a proper staffing strategy needs to be followed (Zepeda, 2013). An increase in staffing levels boosts the morale of existing employees at the same time improves customer satisfaction. (Phillips, & Gully 2012).The following staffing strategies can be used to identify and agree an increase in staffing levels: 1.Short term staffing analysis. By understanding the current staffing size in an organization, a strategic manager will be able to find out if the current employees are being overworked. Analyze the number of tasks performed by each employee and the total time averagely taken to complete the tasks. Normal working time should be an approximate total of 40 hours per week. If after doing the analysis you find out that employees are working for more than the expected time, consider adding other employees. Also calculate the total costs incurred to pay employees for working overtime and weigh with the alternative of hiring a new one. Depending on your analysis you can consider hiring either part time or full time employees.
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STRATEGIC MANAGEMENT AND LEADERSHIP17 2.Future staffing needs. Consider your future staffing need to determine whether to recruit new employees. If the company is targeting to expand its operations according to its strategic plan and will consider promoting the current employees, it means their current positions will need to be filled up. Adequate staffing improves productivity and increases customer satisfaction. By knowing the future staffing needs a company will be able to make proper decisions in terms of proper plans and also set aside required resources for the recruitment and training of new employees. Future staffing comes with expansion of organizational undertakings and hence managers need to come up with quick solutions of filling the openings that will be created. 3.Defining staffing requirements. With technology advances, a company may consider hiring more employees to fit the expanding needs of the organization if there is an increase in sales. A strategic manager should carry out a job analysis to evaluate the usefulness and competence of each employee and find out if they match the needs of the organization. The division of labour and specialization providecertain individuals with high skills and expertise in what they do. The organization might want individuals, who are well versed with current technology, thus provide manpower for running machines. A.C. 5.1 Analyze methods or processes to assess, or evaluate, the performance of employees, and to support performance improvement It is very necessary for a company to measure the performance of its employees so as to find out the value they add to the organization (Munyon, Summers, & Ferris, 2011)When employees
STRATEGIC MANAGEMENT AND LEADERSHIP18 perform well, the company’s productivity increases on a large scale. The following are methods that can be used to measure employee performance: 1.Use of graphic rating scales Involves use of sequential numbers either from 1-10 or any given range to relate employee performance in various areas like their personality, skills and how well they perform their tasks. 2.360-degree feedback It employs the feedback, assessment and opinions of individual performance from a group of people they work together with. Supervisors, team leaders and colleagues are included in giving the feedback. As you tally the input, there is clear evidence of similarities in both positive and negative trends. 3.Self evaluation The employer can also request employees to measure their own performance by evaluating themselves. It can bring forth conversations that will be of benefit to the growth of the employee. This can be well implemented by designing a questionnaire with multiple choice answers for the employees to answer. 4.Management By Objectives/ management by results This is a process which involves managers and employees coming together to form joint objectives. They screen each individual objective and compare the objectives with the company’s goals and relate them with the general performance of the company. 5.Checklists
STRATEGIC MANAGEMENT AND LEADERSHIP19 The employer may use a simple ‘yes or ‘no questions to identify an employee’s deficiencies in various skills. This will help point out employees’ weaknesses and will help the employer to call for training if necessary to sharpen the skills. Employee performance should be measured because it is easier to identify those who are pushing themselves harder. It also gives room to gauge worker efficiency and productivity hence decides on remuneration and improves the overall team performance. This can also be a means of determining which employees to reward for their good work and cut down those that are underperforming. Workplace productivity is improved if the employer is able to detect the strong and weak side of his employees.
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STRATEGIC MANAGEMENT AND LEADERSHIP20 References Armstrong, G., Kotler, P., Buchwitz, L. A., Trifts, V., & Gaudet, D. (2015). Marketing: an introduction. Retrieved on April 3, 2019. http://131.193.209.39:8003/view_syllabi/static/view_syllabi/syllabus/MKTG%20360%20CRN %2038150%20Trampas%20Spring%202018.pdf Baker, M. J. (2014).Marketing strategy and management. Macmillan International Higher Education. Retrieved on April 3, 2019.https://books.google.com/books? hl=en&lr=&id=w69hBQAAQBAJ&oi=fnd&pg=PP1&dq=importance+of+having+a+good+mar keting+concept&ots=dfOhUVIGhp&sig=DcXDPOW7wwfpJL-IJ2zTwQ7YjXQ Desimone, L. M. (2011). A primer on effective professional development.Phi delta kappan,92(6), 68-71. Retrieved on April 3, 2019. https://journals.sagepub.com/doi/full/10.1177/003172171109200616 Eisele, L., Grohnert, T., Beausaert, S., & Segers, M. (2013). Employee motivation for personal development plan effectiveness.European Journal of Training and Development,37(6), 527- 543. Retrieved on April 3, 2019.https://www.emeraldinsight.com/doi/pdf/10.1108/EJTD-02- 2013-0015 Fahy, J., & Jobber, D. (2015). Foundations of marketing. Retrieved on April 3, 2019. https://w8x4a7cfct12.storage.googleapis.com/EfzczavRv8n1S6c1ZH12.pdf Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015).Marketing. Pearson Higher Education AU. Retrieved on April 3, 2019.https://books.google.com/books?
STRATEGIC MANAGEMENT AND LEADERSHIP21 hl=en&lr=&id=8TjiBAAAQBAJ&oi=fnd&pg=PP1&dq=importance+of+having+a+good+marke ting+concept&ots=jecxlRv7j0&sig=2iEQuxVt7l6NJevgE_8_BCjXwN0 Munyon, T. P., Summers, J. K., & Ferris, G. R. (2011). Team staffing modes in organizations: Strategic considerations on individual and cluster hiring approaches.Human Resource Management Review,21(3), 228-242. Retrieved on April 3, 2019. https://www.sciencedirect.com/science/article/pii/S1053482210000367 Nancarrow, S. A., Booth, A., Ariss, S., Smith, T., Enderby, P., & Roots, A. (2013). Ten principles of good interdisciplinary team work.Human resources for Health,11(1), 19. Retrieved on April 3, 2019. https://human-resources-health.biomedcentral.com/articles/10.1186/1478-4491-11-19 Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017).Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Retrieved on April 3, 2019. https://www.researchgate.net/profile/Ariadne_Tsambani/post/What_would_be_the_best_approac h_to_support_leaders_in_processes_of_change_and_organizational_development_through_eLea rning/attachment/59d6341579197b8077991c40/AS %3A377864680689667%401467101368871/download/51.pdf Oettingen, G., & Gollwitzer, P. (2010).Strategies of setting and implementing goals: Mental contrasting and implementation intentions(pp. 114-135). Retrieved on April 3, 2019. http://kops.uni-konstanz.de/bitstream/handle/123456789/1321/oettingen_gollwitzer_strategies.pd f?sequence=1
STRATEGIC MANAGEMENT AND LEADERSHIP22 Pedler, M., Burgoyne, J., & Boydell, T. (2013).A Manager's Guide to Self-development. McGraw-Hill Education (UK). Retrieved on April 3, 2019.https://books.google.com/books? hl=en&lr=&id=by- oAJbApcMC&oi=fnd&pg=PP1&dq=importance+of+a+personal+development+plan+&ots=oLH 4okbSzl&sig=l5TuT67_UbJjXlUTn9r94wlqkT0 Phillips, J., & Gully, S. M. (2012).Strategic staffing. Upper Saddle River, NJ: Pearson Prentice Hall. Retrieved on April 3, 2019. https://a91ajwnuc911.storage.googleapis.com/EjnPtqipO8o8m1aDCQ11.pdf Steiner, G. A. (2010).Strategic planning. Simon and Schuster. Retrieved on April 3, 2019. https://books.google.com/books? hl=en&lr=&id=EXoPC22vb4oC&oi=fnd&pg=PR7&dq=effective+course+of+action+plan&ots= 5-2PBQNsGH&sig=Pzvgyity8QL1-7g0ry5VhWUthdY Tesch, R. (2013).Qualitative research: Analysis types and software. Routledge retrieved on April 3, 2019.https://content.taylorfrancis.com/books/download?dac=C2004-0-31809- X&isbn=9781134077304&format=googlePreviewPdf Zepeda, S. J. (2013).Professional development: What works. Routledge. Retrieved on April 3, 2019https://content.taylorfrancis.com/books/download?dac=C2016-0-25329- X&isbn=9781317926009&format=googlePreviewPdf