Strategic Leadership and Practice: Essay on Afia International Company

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This essay provides a comprehensive analysis of strategic leadership and practice, using Afia International Company as a case study. The introduction defines strategic leadership and its importance for long-term business success, setting the stage for an examination of leadership styles and theories. The main body delves into the role of leadership, strategic leadership principles, and the anatomy of strategic leadership, including personal, accountability, and strategic organizational leadership. It explores the strategic decision-making process and different leadership styles like transactional, transformational, autocratic, and democratic, evaluating their pros and cons. The essay also covers leadership theories, such as trait and contingency theories, to provide a well-rounded understanding of effective leadership. The conclusion summarizes the key findings and reinforces the significance of strategic leadership in driving organizational success. The essay aims to guide leaders in making better decisions and improving employee performance within the context of Afia International Company.
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Strategic leadership and practice:
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction to leadership and practice.......................................................................................1
Strategic leadership.....................................................................................................................2
Anatomy of strategic leadership..................................................................................................2
Strategic decision making process..............................................................................................3
Different styles and theories of leadership..................................................................................3
Justification of chosen leadership style.......................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Strategic leadership is that skill which influence the peoples in order to make better
decision so that it helps to lead a business towards a long term success when a business is
maintaining a short term financial stability. The chosen company for this report is Afia
international Company who produces edible oils and ghee in better quality and its headquarter is
in Saudi Arabia and the firm not have more than 60 employees. The report main aim is to lead a
business towards a success by using the best leadership style and also increases the performance
of the employees so that they give their 100% efforts. Further report describe different leadership
style and theories and among them, which style is best suited for the leaders of quoted firm in
order to raise the company's performance by increasing the performance of their employees.
MAIN BODY
Introduction to leadership and practice
Leadership is the action that lead entire team and individual in order to achieve the goals.
Even the leaders are also influence from the employee behavior in different ways but only they
set the vision, always motivates the employees and provide them guidance so that they help them
to achieve the goals of the firm. The role of leadership in Afia is as describe:
Invigorate trust: The leader of quoted firm have to develop trust among the employees
so that they can help them to achieve the goal of a company. Apart from this, through their
effective communication skill, the leader of the firm will easily influence the employees
Antonakis & Day, (2017).
Create vision: Their main role in to create vision in which they have to define in which
direction the team has to go to achieve the goals.
Execute strategy: It is another role which the leader of Afia played in which the
manager assign the roles to their employees and at that time leader of the firm have to develop
strategy in order to attain the goals. Due to having a strong vision, the company's leaders execute
the strategy.
Monitoring: After executing the strategy, the company's leaders then monitor the
performance of their employees. On the other side, they also support or motivates those
employees who are not able to perform well with a team. Apart from this, while monitoring, if
they found disturbance, then immediately conduct a training session in order to raise the level of
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performance Grint and et.al., (2016). This shows the role of leadership in Afia International
Company.
Strategic leadership
Strategic leadership refers to that ability in which the leaders influence others to make the
decision which leads towards long term success of an organization. If leaders of Afia are
strategic then it helps to run a business in better way and also improve the performance level.
There are some principles of strategic leadership, such as:
Distribute responsibility: it is one of the biggest principle of strategic leadership in
which strategic leaders gain their skills through practice and even they also require a fair amount
of autonomy. Apart from this, the leader should push the power downward and empowering the
peoples at all levels in order to make better decisions Western, (2019).
Be honest and open regarding information: Due to limiting communication, the
leaders of the company are sometimes did not be honesty and ready to share the information with
heir employees. But a strategic leader is not doing so such that they keep influence their
employees and try to motivate their employees for their higher performance.
Execute different strategy: It is the responsibilities of the strategic leader to keep
execute different strategy because they have good vision and better innovative thinking that
helps them to achieve the aim of the company in better way DuBrin, (2015). In the context of
Afia International Company, it is also quite necessary for the firm to take some strategic
leadership action in order to improve the performance of their employees.
Anatomy of strategic leadership
Leadership plays an effective role in the business environment and as the Anatomy of
strategic leadership, there are three types of leadership which are as follows:
Personal Leadership: It is the leader itself in which the person have the ability or the
skills which help them to make a good leader and they can also lead a business in forward
direction Covin, & Slevin, (2017). The common traits are strong vision, self-confidence, self-
discipline and honesty. If these are posses by the leaders then it will directly affect the business
in positive way.
Accountability leadership:These type of leaders are only responsible for the deeds such
that whatever the decisions are taken by the leaders, then they have to answer them accordingly
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if it leads to false outcomes. Further, they are also responsible for all the good and bad outcomes
in the business as well.
Strategic Organizational leadership: These type of leaders who posses all kinds of
traits and their main aim is to reach with the defined goals with an effective manner. Apart from
this, these type of leaders are directly linked with an organization and they show the path to their
employees for their further development which directly affect the business in positive way.
Strategic decision making process
Strategic decision-making is that process which is based upon the long term goals and the
leaders have an opportunity to align some short term plan so that they cane easily attain the long
term plan. This is the most important key aspect that also affect the leaders decision and
Strategic decision-making process is also quite important for leaders in many ways such that,
through strategic decision making process, the leaders of the company can easily understand the
key drivers of good and bad decision and even difference between decision and outcomes.
Further, they also learn how to determine variety of barriers in order to take a good decision for
the business Ullah, Kiran & Liu, (2019). In the context of Afia International Company, if the
leaders uses this, then it will creates positive impact upon the business such that they can easily
develop the tools or techniques which helps to make strategic decisions and can even improve
the performance in the workplace as well.
Apart from this, through strategic decision making, the leaders of the quoted firm will
also establish a discipline of good decision-making in an organization and can even creates a
right environment for great decision-making. Further, it has been analyzed that a strategic leader
have different characteristics such as risk taking, good personality and have better experience
that makes them different from other leaders. If the leader have such traits then they are also able
to take a better decision-making process for the welfare of the company and even take the
business for further level of success.
Different styles and theories of leadership
It has been cleared that leadership plays an effective role in the success of the company
and it is also necessary to opt the best style and theory as well, because this is another reason that
may creates hindrance in the path of success. There are different leadership style and some of
them are as follows:
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Transactional leadership style: It is one of the most common leadership style which
involves an exchange process and the leaders can also use their technical knowledge in order to
determine the change process (Different leadership styles, 2019). The biggest advantage of using
this style is that the leaders are relied on standard forms such as reward, punishment, promotion
in order to control the followers. While, on the other side it is critically evaluated that this style
does not encourage creativity. Moreover, transactional leadership style is one of the most
effective style that helps to motivate employees and also assist leaders in achieving goals as well
by raising the productivity and decreasing the cost. Thus, it can be said that If leader of Afi
International Company will opt this style, then it will be beneficial to increasing the productivity
of their employees as well.
Transformational Leadership style: It is another leadership style which is generally
adopted in order to initiate change in an organization, groups and in themselves. In this style,
leaders are also responsive and they are deal with present issues. The leaders of this style,
basically set more challenging expectation and wants higher performance from their employees.
The pros of using this style is such that it promotes enthusiasm and the leaders have the ability to
motivate their employees. Moreover, the leaders of this style are also searched for adaptive
solutions in order to keep themselves busy regarding change process Yahaya & Ebrahim, (2016).
However, it has been critically evaluated that sometimes the result are negative and it
affects the overall business. As the style is also required continuous feedback and leaders are also
sometimes depends upon the reality and truth that is not good for the business performance.
Autocratic leadership: this leadership style is a centered boss and If the leader follow
this style then they have to hold all the responsibility and authority. Even the leaders also make
decision without consulting their subordinate and only a small organization's leaders follow this
style because all the decisions, guidelines and procedures are only made by the autocrat leader
only. On the other side, it has been critically evaluated that there is no flexibility when the leader
follow this and the working environment of the company will become adverse when a leader
follow this due to not involving the employees into decision making process. But it is also
realized that there are some situations, when the leader of the company have to follow this style
to get better outcomes for the favor of the firm.
Democratic leadership style: This is one of the best and commonly used leadership
style because it involves their subordinates to take better decision for the company. But only
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democratic leader of the firm hold the final responsibility and that is why they are known to
delegate authority to other people. The biggest advantage of using this style is that it leads to take
better decision with proper communication and can be opt at all type of business, as it helps to
solve problems or complex issues as well. Further, using this style, the relationship between the
team member will be strong and can share their common ideas as well Northouse, (2018).
On the other side, it is also critically evaluated that it leads to delay in decisions because
of taking extra time. Even the process of decision making is too time consuming because the
management of the firm has to listen a large number of people. That is why the company did not
use this style for leading a business and generate positive outcomes.
Apart from the styles, there are several leadership theories also that will further help a
leader to lead their team in better way. Some of them are as follows:
Trait theory: This theory states that the person definitely inherit certain qualities or traits
which makes them the best leader. The theory further specify or determine particular personality
and some characteristics related to their behavior which are shared by the leaders. It has been
also realized that there are some common traits which are posses by the leaders such as
intelligence, confidence, communication skills, courage, trustworthiness, assertiveness, technical
knowledge and emotional stability Trimble, (2019). Thus the theory basically deals with traits
and some characteristics which should be posses by the leaders while they handle the team and
lead a business towards further level of success.
Contingency theory: This theory states that there is no best way to organize or lead a
company in order to make decisions. Such that leaders have to opt the styles as per the defined
situation. Further, this also states that leaders should also focused that which style of leadership
is best suited for the working environment. Thus, Fiedler also suggest that the leaders also use
the specific leadership style that further based upon personality trait and includes three
dimension such as Position power, Task structure and leader member relations. These three
dimension further combine to form the situation in which the leadership style is effective or
ineffective.
Situational theory: This theory states that the leaders should choose the best action
which is based upon different situation because different style of leadership is appropriate for
variety of decision making process Thompson & Glasø, (2015). The theory also states four types
of leadership styles such as:
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Directing: In this style, the leaders of the company provide direction to their employees
or tells them what to do for a particular situation.
Coaching: In this style, the leaders of the firm will sell their ideas and messages to
involve all the members in a team and motivate them to perform better.
Supporting: In this style, leaders support less and allow members to take their decision
come up with their ideas and making better decisions for the welfare of the company.
Delegating: In this style, only members of a team take decisions and understand their
own responsibilities for the welfare of the company Arnold and et.al., (2015).
Behavioral theory: The theory is based upon the beliefs such that the leaders are made
not born. Further, this theory also focused upon the actions of a leaders in a firm and not based
upon the qualities which they posses. Moreover, the theory also states that a person become a
leader even through proper training and better observation. Apart from this, the leaders if follows
the Behavioral theory, then it shows that leadership qualities are not posses by them but through
proper training, they gain these qualities. Even the theory is also focused approach the provides
the real marketing potential. Thus, if the leader of Afia International Company follow this theory
then the chances of becoming successful is lower.
Justification of chosen leadership style
From the above leadership styles and theories, the leader of Afia International Company
chooses or opt Transactional leadership style and situational leadership theory. As the quoted
firm is producing edible oils and ghee, then the leaders have to make sure the quality of the
products which is offered by the customers. For this reason, there is a need to produce the best
products and increase the sales by working as a team. So, there is a need to opt the best
leadership style in order to lead employees and extract from them a 100% productivity.
Therefore, Transactional leadership style is best suited for this because the style helps to
motivate the employees by offering a reward in a form of incentives. This factor directly raise
the production level of the employees and the leader can also make short term planning in order
to achieve a long term goal Tannenbaum & Schmidt, (2017). The biggest advantage of using this
style is such that it is effective mainly when it comes to increase in production and cutting down
the cost. In the same way, quoted firm also wants to raise the employee performance so that they
make better production for the company. That is why opting Transactional leadership style is
best suited in this situation.
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Apart from this, the leader of Afia International Company also opt situational leadership
theory because as the theory only deal to opt best leadership style as per the situation and that is
why in different situation, the leader of quote d firm can opt the style so that it will easily achieve
the aim and leads a business towards further level of success. On the other side, It has been
critically evaluated that the Transactional leadership style does not encourage creativity and it is
not even required in the cited firm also. Therefore, it shows that among all, the style if leader opt
this then the performance level of employees will automatically improve and they all work
together in order to achieve the goals Dong and et.al., (2017).
On the other side, if leader of Afia International Company chooses autocratic leadership
then it will affect the success of the business in negative way because in this style, there is no
input from the group members as all the decisions are taken by the leader only. While it has been
critically evaluated that in the case of opting Transactional leadership style, the leader can
creates a system which is easy to follow by the employees and also eliminate the confusion and
helps to get the best result for the success of Afia International Company. Thus, it is also
recommended to the firm that the leader of quoted firm may also opt democratic leadership style
so that manager or leader can also involve their subordinates, that helps to take better decision
for the success of a company and make them comfortable in the working environment also.
Hence, opting Transactional leadership style will be more suitable option for the leaders as it
helps to motivate the employees and takes a business towards a further level of success.
CONCLUSION
By summing up above report it has been concluded that leadership plays an effective role
in the welfare of the company. As report concluded the importance of leadership that clearly
states that leadership have their own importance for the success of a business. Morover, the
report also concluded that only a strategic leader can take a strategic decision making which
helps to get different benefits also. Apart from this, report concluded that a strategic leaders
influences the employees and motivate them to increase the performance level as well. The
report states the importance of strategic leader in a business and how they support the business
by making short term plan and achieve the long term goals of a business. Further, the leader of
Afia International Company chooses Transactional leadership style because it reduces the cost
while improving the productivity level and implement one of most easy system that can be
follow by the employees and leads quoted firm towards a success.
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REFERENCES
Books and Journals
Antonakis, J., & Day, D. V. (Eds.). (2017). The nature of leadership. Sage publications.
Arnold, K. A. and et.al., (2015). Leadership styles, emotion regulation, and burnout. Journal of
Occupational Health Psychology.20(4). 481.
Covin, J. G., & Slevin, D. P. (2017). The entrepreneurial imperatives of strategic
leadership. Strategic entrepreneurship: Creating a new mindset, 307-327.
Dong, Y. and et.al., (2017). Enhancing employee creativity via individual skill development and
team knowledge sharing: Influences of dual‐focused transformational leadership. Journal
of Organizational Behavior.38(3). 439-458.
DuBrin, A. J. (2015). Leadership: Research findings, practice, and skills. Nelson Education.
Grint, K. and et.al., (2016). What is leadership. The Routledge companion to leadership, 3.
Northouse, P. G. (2018). Leadership: Theory and practice. Sage publications.
Tannenbaum, R., & Schmidt, W. H. (2017). How to choose a leadership pattern. In Leadership
Perspectives (pp. 75-84). Routledge.
Thompson, G., & Glasø, L. (2015). Situational leadership theory: a test from three
perspectives. Leadership & Organization Development Journal.36(5). 527-544.
Trimble, J. E. (2019). Exploring Culturally Diverse Leadership Styles: A Mindset and
Multicultural Journey.
Ullah, I., Kiran, A., & Liu, B. (2019). Impacts of Leadership Styles on Motivations of
Employees. In Servant Leadership Styles and Strategic Decision Making (pp. 205-217).
IGI Global.
Western, S. (2019). Leadership: A critical text. SAGE Publications Limited.
Western, S., (2019). Leadership: A critical text. SAGE Publications Limited.
Yahaya, R., & Ebrahim, F. (2016). Leadership styles and organizational commitment: literature
review. Journal of Management Development.35(2). 190-216.
Online
Different leadership styles. 2019. [Online]. Available through:<https://tec.com.au/resource/9-
common-leadership-styles-which-type-of-leader-are-you/>.
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