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1. Understand the relationship between strategic management and leadership……………………………………………. 2

2. Be able to apply management and leadership theory t0support organisational direction:............................................................. 5

3.be able to assess leadership requirements and plan developments Of leadership skills. ………………………………………………… 8

4.referance …………………………………………………………………. 11

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LO1 Understand the relationship between strategic management and leadership

LO1.1 explain the link between strategic management and leadership

Before explaining strategic management,I would like to define what is strategy?

According to Jonson, Scholes & whittinton strategy is, ” the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.

According to the above definition strategic management means the person or a group of persons who involved sorting out or dealing the following issues:

Long term direction,usually several years or more Scope –deciding what the organisation does Achieving advantage over competitors Achieving advantage over competitors Dealing with external change ( the environment) Exploiting what the organisation want or does well ( resources and competence) Understanding what stakeholders want and delivering results

Its can be summarised as the way an organisation seeks to achieve its goals.

Now I will explain Leadership:

Leadership is required for strategic success in any organisation. It should come from the top of the business with senior management being involved in any strategy implementation. Senior management are primarily concerned with the identification, evaluation and selection of strategies, but their involvement should not end there.

Transactional theories of leadership, whether based on traits, behaviour or contingencies are applicable at any level of management and have no specific applicability to the strategic apex. Transactional leaders focus on systems and controls and generally seek improvement rather than change. This kind of leadership essential for the implementation of existing plans. However, it is unlikely to be sufficient to deliver strategic changes on its own.

Transformational theories of leadership provide a contrast to transaction theories. Transformational theories generally accept that the world is much less stable place than it was and that changes of all kinds of frequent and far- reaching. Consequently, leaders have to recognise this and provide leadership that will help their organisations to respond in creative and effective ways. Transformational (or charismatic) leaders energise people and build a vision of the future. Change management is a natural part of what they do.

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Actually, the senior management team have recognised the need for change in what they do,but they have no followed this idea through into its full implications. Instead, they have tried a range of slightly different strategic plays,all of which have failed.

LO 1.2. analyse the impact of management and leadership styles on strategic decisions

In this context, leadership may also mean reviewing and revising the strategic culture of the reorganisation (Schermerhorn, 2012).If the prevailing behaviour in an organisation makes a strategy impossible to implement (because it is incompatible with the culture) yet the strategy is important to achieve success, then the leader will need to change the culture to allow the strategy to be implemented. For example a company may need to move from being a defender to become a prospector to expand and move into new areas.

So,on the above discussion, the five main expectations of modern leaders listed below:

To change organisations and systems from within To empower others To work through teams in delayer environments To provide clarity of purpose and direction To drive forward adventurous, visionary strategies.

Now I will explain the style of leadership which is discovered by Goleman by studying the managers. He also mentioned good leaders should adopt one of his identified six different leadership style to meet the different situations. A key point of Goleman’s argument is that good leader must be emotionally intelligent or sufficiently sensitive and interpersonally aware to know which styles to adopt for different situations.

LO1.3 evaluate how leadership styles can be adapted to different situations

His identifies 6styles, out of which 4 styles encourage team harmony and inclusion, and other 2 styles potentially can create dissonance and discord.

Now I will identified and explain his 6 styles below:

1. The pacesetting leader deserves and models brilliance and self-direction. If this approach were presented by one phrase, it would be “Do as I do, now.” The pacesetting model works most excellent when the team is already motivated and skilled, and the leader needs quick results. Used extensively, however, this style can overwhelm team members and squelch innovation.

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2. The authoritative leader mobilizes the team toward a common vision and focuses on end goals, leaving the means up to each individual. If this style were summed up in one phrase, it would be “Come with me.” The authoritative style works best when the team needs a new vision because circumstances have changed, or when explicit guidance is not required. Authoritative leaders inspire an entrepreneurial spirit and vibrant enthusiasm for the mission. It is not the best fit when the leader is working with a team of experts who know more than him or her.

3.Affiliative - builds relationships and teams, and helps to deal with problem situations between teams .The affiliative leader apply to create emotional bonds which carry a feeling of bonding and belonging to the organization. If this approach were summarized in one phrase, it would be “People come first.” The affiliative method works best in times of stress, when teammates need to heal from a trauma, or when the team wants to re-establish trust. This system should not be used absolutely, because a one and only dependent on praise and development can foster mediocre performance and a lack of direction.

4. Coaching – It helps individuals to improve owns performance and align employee goals with those of the organization. The coaching leader builds people for the future. If this method were represented in one phrase, it would be “Try this.” The coaching style is most useful when the leader expect to help teammates build lasting personal strengths that make them more successful overall. It is least effective when teammates are defiant and unwilling to change or learn, or if the leader lacks proficiency.

5. The coercive leader demands instant compliance. If this style were appropriate by one phrase, it would be “Do what I tell you.” The coercive style is most efficient in times of crisis, such as in a company rotate or a takeover attempt, or during an actual emergency like a tornado or a fire. This style can also help control a problem teammate when everything else has failed. However, it should be ignored in almost every other case because it can set against people and stifle flexibility and inventiveness.

6. Democratic - helps to create buy-in or consensus by involving people and valuing their input .The democratic leader establish a compromise through sharing. If this style were called in one phrase, it would be “What do you think?” The democratic style is most efficient when the leader needs the team to buy into or have rights of a decision, plan, or goal, or if he or she is unsure and needs fresh ideas from competent teammates. It is not the most excellent choice in an emergency situation, when time is of the core for another reason or when teammates are not up to date enough to offer adequate guidance to the leader.

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Q2.Be able to apply management and leadership theory to support organisational direction:

LO2.1 review the impact that selected theories of management and leadership have on organizational strategy

Managers are also human being. They become managers by their skills, knowledge and experiences. So it is certain that they need to change the setting up principle according to the situation. Every manager has different objectivesto achieve their goals. They are bound to answer for the success or failure of his or her area of work. By considering the necessity of management and leadership, OPITO the Oil & Gas Academy sets out some principle to supply the oil and gas industry with people of high skills and aptitudes. According to their theory they realized that Managers can only achieve their objectives through their staff.

I am writing here some theory according to OPITO the oil and gas academy. One persons of that academy name Fayol, he suggested that managers would need to instruct the staffs and workers and arrange resources to ensure objectives are met. Thus he realized that it is important that employees are well managed.One the necessity of managing staff, we need to adopt management style and it is very important.According to F W Taylor, who stabilized the scientific approach to management, the primary motivators to workers are money. Means paid more money and getting more work. By applying this approach, the early industrial managers did not get a positive feedback. Means some workers did not work harder just for getting money more. Instantly they realized that there are involved human factors as well.Second theory which is established by Maslow. He thought that workers havenot only finance need but also many individual needs, such as safety or a sense of achievement. And these need comes one after another on priorities.Thirdly, Douglas McGregor invented that managers decided into one of two types: those who held 'Theory X' or those who held 'Theory X, Manager feel that workers a naturally lazy and dislike to do work and avoid responsibilities. They become motivated when they get money. Manager also think that we need to keep pressure and directed to workers.

 

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According to Theory Y, It is completely opposite concept of theory X where workers are really responsible staffs and enjoy to do work. And they like to make their own decision and highly ambitious.

LO2.2 create a leadership strategy that supports organizational direction

In the oil and gas industry, a wide range of management styles may be used in different contexts: Before adopting styles, Manager need to remember that oil and gas industries is really risky. So whatever the styles apply safety and risk issue always keep in remember.

In the first context,A manager working offshore may be supervising is most important as workers are dealing dangerous high voltage maintenance work. In this sense the basic important issues here to health and safety that are not open to debate. That’s why the manager will directly instruct workers by an autocratic style.

In another context a manager who is dealing with onshore including the supply of LPG, gas or oil from the fields to buyers, a manager simply need to coordinate with different fields. Here, managers can use democratic styles including consulting or discussing with colleagues the best ways to meet target or work.

Autocratic management is a system where decisions are made at a higher level without consultation, discussion or any suggestion from bottom or below. An autocratic manager decides by himself without consultation what is best and instructs others. In the oil and gas industry, an autocratic style of management is very necessary especially producing sector means where risk is highly involved. And the reason is link with safety issue. Such as, to maintain the Minimum Industry Safety Standard (MIST) that applies across the entire UK offshore oil and gas sector. The MIST standard focusing withthe assessing risk, manual handling, working safely, working at height or lifting. They also mentioned the hazards in the offshore environmentA key role in the industry is the Offshore Installations Manager (OIM) as it is link with health and safety issue.Thats why, Employer recruits an experienced manager as he has vital responsibilities. The workers of offshore must comply with instruction at all times due to the nature of the work. Each worker must have completed the correct safety training. In this context the management style must be autocratic. Rules and procedures must be followed to ensure safety issue. Secondly, Democratic management on the other hand is expecting to involve employees to take their opinions before reaching a decision. Certain matters can be achieved by discussion and consultation. As an example, there may be a complex decision to be made about damage oil. Here, a top down approach would be unwise as the involving team has more ideas regarding the instant decision and that will assist in getting to the right decision. In this situation information is being passed up through the hierarchy to aid the decision making take time as well.

OPITO the Oil& Gas Academy has principle to use an industry-wide, employer-led Skills Forum to get feedback and input from many people in the industry. This ensures its work and adapting to the changing or emerging needs of the workplace. The Academy normally uses a proactive democratic style by providing current and relevant information about the Academy's work. By using a responsive democratic style,it can be possible to evaluate requirements for skills and training that will address the needs of the whole industry.

There is another style which name is paternalistic style. Some manager uses this style. It’s one kind of combination between democratic and autocratic. This means that they can make a decision without consultation

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or participation, but they have the employees' best interests at heart. Although employees are not involved in making the decision but they feel happy as it consider the best interest of workers.

Abraham Maslow claimed that people especially workers have a '5 hierarchy of needs' and it’s come one when meets one (Daft, 2010). Top and more priories need is fundamental means basic and safety needs. After the basic and safety needs (for example, for food or accommodation) have been met, they feel to meet higher order needs social interaction and self development, need to be addressed. For example, giving responsibility can increase more motivation as it implies trust. I am submitting Maslow’s hierarchy of need by diagram following:

The Academy and the oil and gas industry uses paternalistic management style to the individual learning and development needs of employees. It will help to develop and grow into competent, flexible and motivated people. Young engineering technicians can join Oil & Gas by Upstream Technician Training Scheme. In this scheme, a suitable recruitment process can help to build career paths by guided training. Finally the best young talent will be selected by an assessment of their practicality, open-mindedness, team working and vision.Once they are employed, they are entitled to get different benefits which designed to help them develop into the sort of employees the entire industry needs. Responsibility and a capacity of that working environment make them more encouraged. Individuals are like face challenged and enjoy solving that. These things all together make them confidence and allow young technicians to see that management gives them trust as well as excellent rewards.

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LQ3 Be able to assess leadership requirements and plan developments of leadership skills.

LO3.1 use appropriate methods to review current leadership requirements

The most important duties of each of the five career specialties are as follows. Administrative positions involved management the procurement of goods and services, managing financial operations, and negotiating and monitoring contracts with a range of external groups.

All the employees acknowledged questionnaires asking about the jobs' skill requirements and other wide work-related actions. All jobs had leadership responsibilities, with leadership being mainly significant because endorsement committees create decisions based on yearly performance reviews that generally spotlight on leadership latent. This is made fact that the institute maintains an up-or-out career development system where employees must be encouraged within a certain period of time within the institute or must leave the institute.

Measure: Leadership skill requirements were measured with the work-related Information by inclusive job analysis system that was considered to replace the Dictionary of Occupational Titles. Its initial purpose is to provide a methodical and inclusive measurement system for describing work. It works three ways:

(1) By using numerous description which provide “multiple windows” on the world of work (skills is one of the domains), (2) using cross-job descriptors to provide a common words to explain different jobs, and

(3) Using a hierarchical taxonomic approach to occupational descriptors.

These were provided for the high, middle, and low down points.

Leadership requirement:

1.1. Cognitive skills

Cognitive skills are those skills which stabilized the leadership skill requirements. They are comprised of those skills related to basic cognitive capacities, such as collecting, processing, and disseminating information and learning effectively communicate audience-specific messages and reading comprehension skills to understand voluminous and complex written information..

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1.2. Interpersonal skills

The next category of leadership skill requirements is referred to as Interpersonal skill requirements because they involve the interpersonal and social skills relating to interacting with and influencing

. This category grows out of what previous research has referred to as social capacities

. The leadership skill requirements strategy to allow for a consciousness of other's reactions and considerate of why they react the way they do. The Interpersonal class of leadership skill requirements also includes the skills required for coordination of actions of oneself and others and negotiation skills to reconcile differences among employee perspectives and establish mutually satisfying and persuasion skills that influence others to more effectively.

1.3. Business skills

The third category we can consider business skill requirements, involves skills linked to precise functional areas that generate the context in which most leaders work.

. Business skills connecting the management of material resources and operations analysis are significant as managers create decisions about procure and allocating tools, technology, and resources. More ever, business skills indicate the specific skills for management of personnel resources (to classify, inspire, expand, and promote individuals in their work as well as management of financial resources of the organizational unit.

1.4. Strategic skills

Strategic skill necessities are highly conceptual skills needed to take a systems outlook to recognize difficulty, deal with uncertainty, and to affect the pressure in the organization.

These contain the essential planning-related skills of visioning and systems perception that need the development of an illustration of how a system should work and formulating when important changes to the system have occurred or are likely to occur. This is connected to the environmental scanning skills of recognition of downstream consequences and identification of key causes which provide the consideration of causal relationships in the environment and their long-term.

Leaders often also have the vital role of evaluating alternative courses of action to resolve institutional problems, referred to as solution appraisal and objective evaluation skills

LO3.2 plan for the development of future situations requiring leadership

There are several ways to improve these abilities (Marcela, 2012):

First skill is good communication skills. A good communicator can communicate ideas better. But communication skills do not come automatically. It requires practice and time. This will also require active listening skills, appropriate body posture, clear speaking and writing skills. There are organizations that offer courses to improve these skills.

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Second, good leadership requires goal setting. Set realistic short and long term goals for the team. Give positive reinforcement when the goals are reached and introduce a system of review to improve processes. Encouraging a team to reach goals and giving suitable praise when they are reached, will motivate and inspire staff.

Third, leader should have consistency in decision making. A leader should inspire a team, they should also be consistent in their expectations. A team can be motivated by the leader’s example. Leaders should set high standards for themselves and their staff will aim for a similar achievement. Goals should be realistic to motivate workers and create self confidence

Fourth, a leader must be competent in his or her work. Incompetent leader will not achieve goals and will not be able to manage a team. Business training and upgrading of skills will increase knowledge base.

Fifth, a leader has to be flexible as well as adaptable. He or she has to be innovative and will be open to new ideas. Encourage staff to contribute towards ideas and goal setting. Confidence in the leader’s abilities improves if the manager is willing to try new methods.

Leadership in the workplace can be enhanced by developing personal skills and setting high standards. Taking training courses and maintaining a diverse skill set will encourage staff. Leadership is a process which continuously develops and a leader that pursues personal development will produce good results in the workplace.

LO4.1 Plan the development of leadership skills for a specific requirementFor special requirement, leadership skill sometimes needs to change to meet or achieve on special requirements but most of the case are in almost same approach. Such as staff dissatisfaction, a leader needs to continue some steps which are following:

First skill is good communication skills. Means to make a plan how to communicate with that’s staff and listen their demand and by using leadership skill mitigate their dissatisfaction

For mitigating dissatisfaction, a leader should have analysis that issues and to decide how to deal with staff means by using autocratic approach or by negotiable approach (discuss with staff). And for that leader should be able to read of staff mind. Otherwise wrong approach can face a serious problem.

So by identifying right approach, leader should have consistency with his decision. For example, leader choose negotiable approach and established satisfaction with staff. Then a leader should inspire team for working effective and efficient way so that if organization face some financial subsidy for creating staff motivation than can be covered. 10 | P a g e

Similarly a leader should consider all time organizations wealth maximization. If leader will fail to meet organization budget and requirements work then he/she will not be able to hold his leadership.

Finally, Leadership is a process which continuously develops and a leader that pursues personal development will produce good results in the workplace.

LO 4.2 Report on the usefulness of methods used to plan the development of leadership skills

Methods are helpful to set up an organized goal. If any of the leadership method applies then there have some rules that need to follow and have some suggestion as well that enables to reach the destination. Because that rules and suggestion are set up by analysis and identified positive and negative.

A method can identify people mentality so it can help for dealing with different people such as for dealing a difficult people take one step and a simple people dealing take another step.

A method can help to get preparation of a leader. So it can help to make a plan and get ready on behalf of that plan. Plan can be two ways either short term or long term and both of that plans are followed a method.

So the methods which used to plan the development of leadership skills can help to the issues of staff requirement and then analysis, monitoring and implementing to develop staff motivation.

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References:

1.BPP, 2013, BusinessnAnalysis, BPP Publications, London.

2.Daft, R. L., 2010, Management, 9theds, Ohio, South – Western.

3.Schermerhorn, J., 2012, Management, 11theds, New York, John wiley and sons.

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4.Marcela, 2012, ‘5 ways to develop leadership skills’

,http://webkit.o2online.ie/ideasroom/?p=5175, date of access 15 May 2013.

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