This essay deals with the strategic management and different leadership skills. The different leadership. The essay highlight the areas like the strategic management theories, styles of leaderships and the different and link in the concept between the leadership and the management. Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. And the ” Leadership is person’s capacity to get a social influence others in the organisation to achieve the organizational goal.
The essay goes through the different areas of professional skills and theories that are used systematically for the professional development of strategic management and for the leadership skills. Strategic management concept The strategic management is a nothing but of strategically managing the values, vision, objectives, responsibilities, roles and timeline to achieve the goal of the organization. Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
This definition captures two main elements that go to the heart of the field of strategic management. The strategic management consists of three stages initially the decision making then move to the other section that is the analysis the analysis of the strategies and the objectives that has set to achieve the goals and the final stage is the implementation stage. In the implementation stage also the different strategies are apply to motivate the organizational members and lead together to achieve the organizational goal.
There are mainly two elements in the strategic management one element is the process of analysis and then comes the decision making and finally the action stage in the second element talk about the strategies that are required to keep the organization or the business in progress. In the fisrst element the strategis are moulding to start a business or an organization through the three processes of analysis, decision making and action. In the analysis the analyser analyzing the different areas like: the available date in connection with the business.
A comparities study and the four “P” of price, promotion, products and place are including in the analyzing process. Taking the all available sources of information the analyser step in to the decision making process. In that stage the important decisions are taking a plan to apply those decisions in action. In the second element the management thinks about the ongoing strategies that can be applied for the progress of the business. If the business is set and the other business firms might push down so the ongoing strategies are badly needed.
Otherwise the business firm would be an outperforming centre. The all type of strategies must be focused on the progressive performance of the business. The marketing strategies will get challenged in the new market to make use of the advantages and compete with the existing perfumers. The strategic management analyses what are the steps that have been taken for the owners. The strategic management covers the areas of organization’s goal and the objectives that set to achieve those goals.
And also the managers developing plans and policies to allocate the resources to achieve the goals with the help of staffs who are working in the organization. The managers who have got academic interest have come up with different of theories that are applicable to strategic management. Strategic management theories The agency theory : The agency theory talks about the contracts with in the organization. As per the theory the organization is a nexus of manager’s supervisors and workers and there is a contract with all of these considering each one’s basic personal interest.
According to the contract the parties will carry out the assigned work sharing the advantages and risk. It is the board of directors who monitoring the executives. Institutional theory : The instrumentation theory deals with the different factors which make impact in a firm. The main factors are the cognitive and environmental, regulative and normative structures which has got connection with the organization. These factors work as catalyst in the organization because the routines in the firm, action, culture and action determine by this factors.
The game theory :The game theory formed as a mathematics branch with the purpose of using in the complex situations for decision making. The theory says that the right choice would be other’s choice and it might be the cause for the profit and lose in the business. This is verymuch clear in the customer based product business. Resource based theory: As per the resource based theory the orgnaisation is a collection of intangible resources and the resources are physical resources, human resources and capital in brief.
The resource theory says that it is the strategic management should convert theses available resources to meet the objectives and achieve the goal. It is the organization who should use the skills and capabilities and make a plan to effectively use it. The network view theory: The network view theory says that the organization has a chance to make a network with customer and with suppiers. The organizational members are making these relationship which help the organization to get a authenticity in their activities acceptability in the area where the organization in operation.
The net work will help the organization and the organization can use the resource to achieve the goal. Transaction cost economic theory: The transaction coast economic theory says that the orgnistion has got it own limits in its activities and for the transactions. The market will not remain always in good mood but there are other factors that can make use by the organization. The organization can make use of the agent organization relationship but there is chance for trouble if the agent behaves in an opportunistic way.
The resource dependence theory :The resource dependence theory says that the no organization can be isolated because for the survival in the competitive market there should be dependence and support from all part of the organization. In order to enhance the capability of survival the organization must keep cooperation among the business firms and also with the customers and suppliers who directly participate in the business process of or an organization. The strategic management process The strategic management needs a format to apply the strategies to achieve the goal of the organization.
Mainly the strategies are forming with the purpose of execute the each stage commitments diligently. The organization has got mission in which why the activities must be conducted to achieve the vision. For the sooth running of the organization the management needs to take strategic approach like: the organization needs to make adequate effort for the smooth running of the shop. PESTLE analysis of strategic management The strategic management try to cover the all areas which directly or indirectly affect the strategic management for its successful attempt of the organizational activities.
In the PESTLE analysis the management evaluate how strategically used each factors for the progress of the organization. The strategic management has to be very much concerned about the political climate in the country. In the favorable conditions and unfavorable situations the managers plan to make use of the situation. Economic condition need to be strong enough to make firm fundamentals for the organization because the strong economy can only survive in difficult situation. Strategies needs to make to make a good relationship with the society because being within the society none of the orgnisation can work isolated.
The support of local people and social conditions for the smooth running of the organization. In this present scenario the technical skill is inevitable because the systematic approach is only possible only through technological techniques. The orgnisation has to be aid with the legal aid for the safe progress of the orgnisation. In the strategic management the manager should take adequate steps to legalize the business the manager should bring all the staffs under the protection of organizational law. Al type of the business must be environmental friendly.
The social responsibility of the orgniasation is a widely discussed topic. Now days by law of the government for all the business organizations has social responsibility. Leadership The oxford dictionary defined the leadership as “The action of leading a group of people or an organization, or the ability to do this. ” Leadership is person’s capacity to get a social influence others in the organisation to achieve the organizational goal. Leadership is a process of leading a group of people to achieve the common goal.
For the leadership the basic required qualities are the self management, intelligence, values and vision. The main activities of leadership are as follows: the leadership is a process of taking incharge of the of a group to give command. The leadership has the duty to orgnise the team members to achieve a common goal and direct them towards that goal through different mission. The leader has to be self motivated and also motivate the team members all the time. The skills needed to strategic leaderships. Capacity to manage oneself and has to be self motivated.
The leaders should be able to use the motivational theories to encourage the followers always. In the case of directing the followers the leaders are expected to set mission and the vision. The leader should be able to understand the pulse of the followers according to the rhythm of the followers the leader change the goals without changing the ultimate goal. The leader must be an example to the followers so the leader must be a true follower of morals and ethics. The problem solving skills are most required in the leadership.
The well communication skills are required and the leader needs to be able to influence the followers and communication without any communication gap. And also the leader has to be a organizer and planner to achieve the target within the time bound. if the leader gives a chance to make comments in connection with the decision and it allocate the ideas and the opinions of the followers and analyzing those opinions. Leadership styles There are mainly two leadership styles in common one is the autoctratic leaderdhip style and the other the democratic leadership style.
In the autocratic leadership style the leader impose the rules on the followers and ask them to just follow it. In the trait leadership the leader is the last word for the followers. It is a type of implementation of the leaders rule the MacDonald follows the authoritative leadership style. Democratic leadership style the leader gives a chance to make comments in connection with the decision. The democratic leadership allocate the ideas and the opinions of the followers and analyzing those opinions. The implementation stage the majority’s decisions would be implemented.
One of the main advantages of the democratic leadership is brain storming and formation of creative decision. Other classifications of leaderships are: The functional leadership theory Functional leadership theory says that the leader should be careful about the needs of the group members. The leadership includes the activities like monitoring the subordinate’s activities and organizes those activities, coach the followers, movitivate the followers, and actively participate in the group work. Action centered leadership: The leaders are expected to focus on three things that are the team, assigned task and the team members.
It is formed in England by a writer Adair Authentic leadership: This type of leadership is based on the values and morality of a person because the leader is expected to hold the qualities of trust, honest, high integrity in the behavior. Integrated psychological theory: The integrated psychological theory classified to mainly three styles. The intergrated psychological theory is nothing but of the collection of old theories for that the trait theory, functional and situational theories have taken to the consideration.
The integrated psychological theory classified to mainly three styles one is private, second one is public and personal. The private and the public leadership are dealing with the purpose of the motivation, planning, action, result with the help of collective unity and team spirit. The personal leadership is all about a person’s growth to become a great leader. There must be some sort of qualities needed they are self motivation, knowledge and technical skills and development of a healthy attitude. The models of leadership
There are a few styles in the leadership format they are mainly the supportive, directive, achievement oriented and participative. In the supportive style of leadership is quite friendly and freedom providing leadership in this type of style the followers give freedom to do the things without close control because the members would be verymuch confident and experienced so they do not want a close monitoring and interference in their activities the adequate support provides to the group which is strong. The directive leadership style consist of inexperienced staffs and they need close monitoring and direct interference in the activities.
The group might be not well structured so the leader has the duty organize and involve directly in the activity. The participative style deals with the members who are experienced and the members are not expected to control them closely because they are enough confident in their activities and the group would be having all type of people they like to execute their work in the absence of close exercise of power.
Achievement oriented style includes experienced followers and one of the advantage of this style is that the followers are experienced and they ask leader about the idea and they themselves set goals to achieve the common goal when each one accomplish their duty and achieve the duty automatically the idea becomes a reality. The link between the strategic leadership and management The leadership and the usage management is widely using together and both are inter connected. The leaders have radical thought and the managers have increment thought. The leaders concerned about the followers or the group members in the same way the managers are taking care of the organization’s staffs.
The leader and the managers are striving for the common goal but the approach is different the leaders are using the strategic leadership methods where as the managers are using the strategic management model. The leaders are going ahead with their emotions and with the personal skills and knowledge and the managers executing the policies of management. The loyalty is one of the main thing that the managers have to keep in their behavior and also the team members are expected to keep the loyalty towards their leader. The management and the leadership are related even there are a few theoretical changes in the basic concepts.
Both are dealing with the group of people in different style to achieve the goal. In detail the management tries to apply the strategically tactics with the help of detailed budget. The leader is the person who set the aims and set the planning to achieve that aim. In the management they have got mission and vision and they have set already for the goal so the managers are expected to just implement those activities with their staffs. The management is a tool to apply the rules which are already set to achieve the goal and people are selecting in order to execute those duties.
In the leadership the leader is the person who implements the rules and ask to practices those rules. The leader implement the rule for the followers to be disciplined and to achieve the aims. The management implement the orgnaisations ethics and the rules and in the leadership the leader has got the power to change the law and amend the law. The management and leadership are concerned about the planning, development of the members potential and productivity. And in the management and in the leadership the one of the common things to achieve the common goal is the motivation.
In the both side different type of motivational theories are applying. Training is an inevitable thing in the leadership and in the management. ( Jaharkanti Dattagupta) The strategic management pays ears to the changes and follow the working culture considering the strength, environment, treats, opportunities and weakness. The strategic leadership takes advantages from organizational resources. In the strategic leadership and in the management the effective use of the human resources, technological skills, financial resources are expected to mange strategically.
Conclusion This essay has been enriched covering the areas of different strategic and leadership theories in the management process. And this study shows that how important the theoris, trainings for the skills development are important in the present world. And the essay, in total talk about person’s required growth to become a great leader and to be a strategic manager. There must be some sort of qualities needed for that; they are self motivation, knowledge and technical skills and development of a healthy attitude.