Strategic Management and Leadership. Prepared by Mr Rabeel Sabar

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1 Strategic Management and Leadership Prepared by Mr Rabeel Sabar

2 Strategy Defined as: A plan of action designed to achieve a longterm or overall aim (Oxford, 2011)

3 Strategy in Business World Defined as: Strategy consists of the combination of competitive moves and business approaches that managers employ to please customers, compete successfully, conduct operations and achieve organisational objectives (Thompson et al, 2004)

4 Strategic Management Defined as: It consists of analyses, decisions and actions of an organisation undertakes in order to create and sustain competitive advantages (Dess et al, 2007)

5 Key Characteristics of Strategic Management There are 4 key attributes in strategic management: 1. Directs the organisation towards overall goals and objectives 2. Includes multiple stakeholders in decision making 3. Needs to incorporate short term and long term perspectives 4. Recognises difference between efficiency and effectiveness

6 Strategic Management Process Strategy analysis Strategy formulation Strategy implementation

7 Strategy Analysis Analysing organisational goals and objectives Analysing the external environment Assessing the internal environment

8 Strategy Formulation Formulating corporate level strategy Formulating business level strategy Formulating functional strategy

9 Strategy Implementation Creating effective organisational designs Strategic control Creating a learning organisation and ethical organisation

10 Functions of Strategic Management Reviewing strategic aims and objectives Improving organisational performance Communicating and implementing change Developing and creating high performance teams Strategic decision making

11 Leadership Leadership is the behaviour of an individual, directing the activities of a group toward a shared goal (Hemphill & Coons, 1957)

12 Leadership It is the ability of an individual to influence, motivate and enable others to contribute toward the effectiveness and success of the organisation (House et al, 1999)

13 Leadership vs. Management A person can be a Leader without being a Manager. (e.g. Informal Leader) A person can be a Manager without being a Leader (e.g. Financial accounts)

14 Leadership vs. Management Leadership and Management are distinct qualities but can be present in one person e.g. Mintzberg (1973) described leadership as one of the 10 managerial roles.

15 Indirect Leadership When influence is transmitted down to the authority hierarchy of an organisation (e.g. From CEO to middle level managers, to lower level managers, to regular employees)

16 Direct Leadership When subordinates are directly influenced by meeting with them, by sending them messages on phone and s or by involving them in different activities (e.g. Middle level or lower level managers giving directions to the employees)

17 Mintzberg s Managerial Roles Leader Role Interpersonal Roles e.g. motivating, hiring, training, criticizing, promoting etc. Liaison Role e.g. Making contacts, keeping in touch, asking and giving favours etc. Figurehead Role e.g. Signing documents, going into meetings, receiving official visitors etc.

18 Mintzberg s Managerial Roles Monitor role Information Processing Roles e.g. reading reports and memos, attending meetings and briefings Disseminator role e.g. Managers have access to resources not available to subordinates. Passing that information to subordinates same as it is or by interpretation Spokesperson e.g. middle level reporting to high level and high level reporting to board of directors or owners

19 Mintzberg s Managarial Roles Entrepreneur role Decision Making Roles e.g. improvement plans, development of new product, restructuring etc. Disturbance handler e.g. conflict handling, loss of key subordinates, accident, strike etc. Resource allocator e.g. money, facilities, personnel but keep in mind the allocated budget Negotiator e.g. Labour management contracts, suppliers, consultants

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