Unit 1 (Developing Strategic Management and Leadership Skill)

Muhammad Hasnat BhattiEDEXCEL LEVEL 7Unit 1: Developing Strategic Management & Leadership Skills

Introduction:

I am working as a coordinator in Serena Hotel, which is a world leading hotel in the development of workforce management and time. However, my work rate and performance indicated the management that I am one of the most committed and hard working junior staff members of hotel.

After my recent performance appraisal, my director informed me that you have been marked for promotion on the corporate ladder. He also said that the feedback from the recent performance appraisal indicated your high level of discipline, knowledge of the company goods/services, knowledge of the customer and supplier. He also declared that your performance has been well above the required standard and the Board of Directors has indicated their full support for your promotion as a Strategic Leader in one of the local branch with training and development.

However I quickly became aware of the added work, responsibilities and authority involved as a leader. I also come to know that they are preparing various methods for resisting my authority and instruction and so I am feeling discouraged about the promotion. Later on, I discussed this concern with my senior fellow who encouraged me to take the promotion as a positive step in my career in order to develop my management and leadership skills.

As I am currently studying the BTEC level 7 involving the strategic management and leadership, I realized that this opportunity may assist me to advance in the organization, but the responsibilities of managing people can be pretty overwhelming. Now, I have taken initiative to fulfil this task.

Aims and objectives of this report

The aim of this report is to understand and develop strategic management and leadership concept. It gives us approach to find similarities and differences between management and leadership. It also gives us concept about management and leadership in relation with different theories of Taylor, Fayol, Webber, Elton Mayo and Theory X and Theory Y. This report also shows us the role of manager as a driver, constrainer and enabler by using the concept of emotional intelligence. It gives us learning outcome about different types of leadership theories, organizational stages, business operations and methods use for developing leadership skills. This report is to fulfil the requirement of the assessment in relation to Edexcel BTEC Level 7 Advanced Diploma in Strategic Management and Leadership and to the Board of Directors of Serena Hotel.

Methodology used to investigate and collect information

I have used secondary research approach to investigate and to collect data by using class lectures, class hand-outs, management books, management journals, other published materials and internet sources. I have also used a primary research approach by interacting with my class fellows, faculty members and industry stakeholders.

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Task 1

Difference between Leadership and Management

Management

Management is all about “getting things done”. However, it is the way and the process of how one achieves ones target or goals and it is in this respect that management is considered an art and a science as well.

Leadership

A process that influences other people to achieve an objective and guides the company in a way to make it more coherent and cohesive is called leadership.

Differences between Leadership and Management

1) Leadership is setting a new direction or vision for a group that they follow, i.e.: a leader is the spearhead for that new direction.

2) Management controls or directs people/resources in a group according to principles or values that have already been established.

Similarities between Leadership and Management

Leadership and Management both term are often consider confuse and use as interchangeable but after this both has some similar qualities. Such as

1) Both have the aims and objectives for achieving goals.2) Both are mobilized and utilize the resources.3) Both have the link from top management and low staff members.4) Both are depend on the low staff member and always try to motivate them.

Manager

A manager is the person who is accountable for planning, directing and monitoring the work of groups and individuals and taking the corrective action when necessary.

Manager is the person who manages the work effectively and efficiently through the proper planning, organizing, leading and controlling.

Leader

Leader is the person who motivates the employees to achieve the organizational gaols.

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Can two or more person work together without leader?

Two or more person can’t be work together with out the leader. For the proper working and achieving the organization goals we can’t ignore the importance of the leader. A leader is like the driver who drives the people in a way that the followers reach on destiny and help to achieve its goals.

Management:

Management means allocation of resources in the effective and efficient way through the proper planning, organizing, leading and the controlling.

Taylor Theory

According to the scientific theory of the Fredrick Taylor,” People work for money. Taylor made the three assumptions on the human behaviour at work.

1) Man is the rational economic animal and concern with the maximum economic gain.

2) People always responded individual not in the shape of group.3) People can be treated like machines.

Man is like a machine use it till form his benefit and when he useless then throw him out. Fayol Theory

Henri Fayol is the first people who developed the theory of business administration which is known as Fayolism. He described the six primary functions and 14 principles of management.

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Muhammad Hasnat BhattiEDEXCEL LEVEL 7Unit 1: Developing Strategic Management & Leadership SkillsPrimary Function

1) Forecasting2) Planning3) Organizing4) Commanding5) Coordinating6) Controlling

14 Principles of Management1) Division of work

A person who is specialization in which field put him there this thing increases the output level of the company and make the employee efficient.

2) Authority

Managers must be able to give orders because authority gives them the right and responsibility arises wherever authority is exercised.

3) Discipline

Employees must obey and respect the rules and regulation of the organization. Good discipline comes through the effective leadership and the clear understanding between management and workers regarding the organization’s rules.

4) Unity of command

Every employee should receive the orders from his superior.

5) Unity of direction

Each group of organization who has the same activities and objective should be follow by one manager using one plan.

6) Subordination of individual interests into organization interest

The interests of any individual employee or group of employees should not take precedence over the interests of the organization as a whole.

7) Remuneration

Workers must be paid the fair wage against their services.

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8) Centralization

Centralization shows that which subordinates are involved in decision making.

9) Scalar chain

The scalar chain shows the line of authority from top level to the lowest level. Communications should follow this chain.

10) Order

The basic rule of management is place the right person or material on the right place then the company can get the maximum production by using the low resources.

11) Equity

Managers should be kind and fair to their subordinates.

12) Stability of tenure of personnel

Management should provide orderly personnel planning this thing gives the employees job satisfaction and ensure that replacements are available to fill vacancies.

13) Initiative

Management should allow the employees to take its initiatives.

14) Esprit de corps

Management should build the concept of unity or team among the employees through this company can easily manage the thing.

Webber Theory

Max Webber is the German sociologist and he said that the bureaucratic form is the best way to organizing the government agencies. He also spread his principles in the public and private sectors because he believed bureaucratic style of managing things is the best way. He described the six principles of management.

1) A formal hierarchical structure2) Management by rules3) Organization by functional specialty4) Up focus and In focus mission

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5) Purposely impersonal6) Employment based on technical bases

Elton Mayo Theory

George Elton Mayo was the Australian psychologist who described the 4 principles of management and in his principles he described the human relations.

1) Group with low norms and low cohesiveness are ineffective. They have no impact and none of the team members are motivated for excel or growth.

2) Group of low norms and the high cohesiveness have negative impact and encourage the negative behaviour.

3) Group of high norms and low cohesiveness has some degree of positive impact on the individual accomplishment.

4) Group of high norms and high cohesiveness has the great positive impact and encourages the group to excel.

Theory X and Y

Douglas McGregor proposed the two theories in which he described the employee motivation. These theories are called the Theory X and Y.

Theory X

In the theory X he described that the average person.

1) Dislike the work and try to avoid it.2) People have no ambition and want no responsibility.3) People are self centred and have no concern with the company goals.4) People always resist the change.5) People are naive and not particularly intelligent.

In theory x assume that the peoples only work for money and security. This approach relies on the coercion, implicit threat, close supervision and tight control. This approach gives the result of hostility, low output and hard line of union demand. Theory Y

In the theory Y he described that the average person

1) People likes work and try to complete in effective and efficient way.2) People are self directed and meet their objectives if they are committed with

them.3) People are always hail the change.4) Under this theory people always seek the responsibility.5) People can handle the responsibility because they are creative.

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This approach relies on the decentralization, performance appraisal, job enlargement and particular management. This approach gives the result in shape of high performance, high output and the job satisfaction.

Define Leadership Leadership is the process of encouraging, motivating and inspiring individual and group to provide their best effort in order to achieve the agreed objectives.

Types of Leadership Styles

There are four types of leadership styles.

1) Democratic

Democratic invites the other employees and other team members to come up with the decision and relies on the agreement everyone of between what is the best. This approach allows the participation, encourage the self motivation, provide the freedom of expression, provide the constructive feedback and make the people self oriented.

2) Autocratic

In autocratic style the leader has the absolute power and he did not listen of anyone. In this approach the peoples are not task oriented, do not participate, has not the level of motivation, has not the freedom of expression and has not the constructive feedback.

3) Charismatic

In the charismatic style of leadership the leader lead the peoples with the examples. In this approach the people are highly self motivated and has the high level of confidence.

4) Laissy Fair

In Laissy fair style the leader leave the employee alone and decided for themselves and most they are surrounded by the skilful team of employee. In this approach the peoples are more oriented, people have the complete freedom of expression and leader is not involved in any decision making.

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How can you adapt each identified style in various situations?

Situational Leadership Style

This is a relatively recent view that based on the application of emotional intelligence to leadership. The six styles one can use are: coaching, pacesetting, democratic, affinitive, authoritative and coercive.

Emergent Leadership Style

Contrary to the belief of many, groups do not automatically accept a new "boss" as leader. We see a number of ineffective managers who didn't know the behaviours to use when one taking over a new group.

Transactional Leadership Style

The approach emphasizes getting things done within the umbrella of the status quo; almost in opposition to the goals of the transformational leadership.

What style would be adopted?

Charisma is a special leadership style which is commonly associated with transformational leadership. While extremely powerful, it is extremely hard to teach. In the eyes of the followers, success is directly connected to the presence of the charismatic leader. As such, charismatic leadership carries great responsibility, and it needs a long-term commitment from the leader.

What would be the impact of each style on the different strategic decisions?

Although democratic leaders make the final decisions, they invite other members of the team to contribute to the decision-making process. This is not only increases job satisfaction by involving team members, but it also helps to develop people's skills. Team members feel in control of their own destiny, so they're motivated to work hard by more than just a financial reward. Because participation takes time, this approach can take longer, but often the end result is better. The approach can be most suitable when working as a team is essential, and when quality is more important than speed to market, or productivity.

It's hard to order and demand someone to be creative, perform as a team, solve complex problems, improve quality, and provide outstanding customer service. The participative style presents a happy medium between over controlling and not being engaged and tends to be seen in organizations that must innovate to prosper.

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It allows the team to provide input before making a decision, although the degree of input can vary from leader to leader. This type of style is important when team agreement matters.

Task 2

Emotional Intelligence

Emotional Intelligence means an ability or capacity to perceive, assess and manage the emotions of one self and others. Emotions have the potential to get in the way of our most important business and personal relationships. Because of the furious pace of change in business difficult to manage relations

Manager as Driver

As a driver he is responsible to get people on the right destination. Being a manager he is bound to follows the rules and regulation properly. He should be aware from his limitation. He should not compromise on the rules and regulation. Being a manager he should be well aware from the direction and should not create the disturbance in the others matters. His behaviour should be good with his colleagues or his employees. In case of any problem he should be able to handle it in the effective and efficient way. He should be loyal and committed with his colleagues in the long term manners. His behaviour should be humble with his employees. Manager should be change agent and he must try to come the positive change in the company and he must work in the consistent way.

Manager as Enabler

As an enabler manager should be actively engage with others in their works and he should be committed with his colleague. He should be self-confident. Manager should respect his followers and also give the value or importance to his colleagues and always give him the chance of expression. Manager must be monitoring his colleagues or employees and he must assign the right task to right person according to his abilities.

Manage as Constrainer

Manager should set the objectives for individual and group and he must be aware with the risk factors. Managers should monitor his colleague and the monitoring system should be effective. Manager should build the discipline in the company for the proper working. Being a manager control system of the company should be effective. Being an enabler the manager thinking should be strait and excellent.

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Task 3

1. "Great Man" Theory

Great Man Theory assumes that the ability for leadership is inherent that great leaders are not born or made. These theories often show great leaders as heroic to rise for leadership when needed. The theory used at that time when leadership was thought of primarily as a male quality, especially in terms of military leadership.

2. Trait Theory

Trait theory assumes that people have certain qualities inherent and these traits make them a good leader. Trait theories often identify specific personality or behavioural appearances shared by leaders.

3. Contingency Theory

According to the contingency theory the leadership focus on specific variables related to the environment that might decide which specific style of leadership is best in these circumstances. According to this theory leadership style are vary on the situation and there is no fix leadership style for all situation. Success depends upon a number of variables such as leadership style, qualities of the groups and traits of the situation.

4. Situational Theory

According to situational theory the leaders choose the best option of action which is based upon situational variables. Different styles of leadership may be more suitable for certain types of decision-making.

5. Behavioural Theory

According to behavioural theory in this theory the people belief the great leader are made not born. This leadership theory emphasis on the actions of leaders not on mental qualities or internal situations. According to this theory, people become the leader through learning and good observation.

6. Participative Theory

Participative theory suggests that the ideal leadership style is one that takes the input of others into justification. These leaders encourage participation and helps in from of

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Muhammad Hasnat BhattiEDEXCEL LEVEL 7Unit 1: Developing Strategic Management & Leadership Skillsgroup and group members feel more significant and loyal to the decision-making process. In this theory the leader holds the right to allow the input of others.

7. Management Theory

Management theory also known as transactional theory and that theory emphasis on the role of supervision and group performance. This theory based on a system of rewards and punishments. This theory is often used in business when employees are successful and they are rewarded and when they fail then they are punished.

8. Relationship Theory

Relationship theory is also known as transformational theory and this theory focus on the connections made between leaders and followers. This assumes that transformational leaders motivate and inspire people by helping group members and these leaders are focused on the performance of group members and also want each person give the best. According to this theory leaders have the high ethical and moral standards.

Life Cycle of Business

Like other living creatures, industry also has its circle of life. The industry lifecycle imitates the human lifecycle. The stages of industry lifecycle include Birth, Growth, Maturity and Decline. These stages will be described in the followings section.

Birth

Birth is the first stage of the organization. At this stage organization develops the new business. This is the stage when new organization normally arises when an entrepreneur overcomes the twin problems of innovation and invention, and works out how to bring the new products or services. This is the only stage organization may see, as it is by far one of the most difficult to survive. In the birth stage many things can go wrong thus, good business planning a vital and necessary part of this stage. Without a good business plan, it is impossible for an organization that it entre in the next level of life cycle. In this stage we can apply the management theory because the most important part of this theory is that this theory emphasis on the supervision and the group performance.

Growth

The second stage of business life cycle is the growth. This is the stage when business has an initial time of negative profit until it breaks even and begins to show improved revenues that allow it to grow truly. This is the stage when business really entre in the market for play. This is the stage when the time of thinking how the business

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http://www.coursework4you.co.uk/sprtbus75.htm



Muhammad Hasnat BhattiEDEXCEL LEVEL 7Unit 1: Developing Strategic Management & Leadership Skillsmanaged and how we can able to compete with the other existing business in the market and determine whether it will survive or it will moves toward the decline stage. In the growth stage we can apply the relationship theory because this theory

emphasis on the connection between leader and the follower. That is the stage when good communication and relationship has the deep importance.

Maturity

The third stage of business is about maturity. Maturity is the stage when the prevailing business model gives the competitive advantage on the other existing organizations. This is the stage when the business has the enough money where there is the company has the sufficient amount and there is no doubt of its survival. In this stage business is on the stable position and the business has the enough capital to support its operations and routine activities. In the stage organization has the ability to pull its business in time of crisis. If the market decline it’s may survive through its profit. In this stage we can apply the participative theory because this theory focuses on the ideal leadership style and encourage the employee’s participation.

Decline

The last stage of business life cycle is decline. For any business it is the easiest stage to reach because it is the point where a starting business will fail. An existing business, even a mature one, can come on the decline stage due to heavy losses and inappropriate operations. At this stage business owner can attest to, the stages of business are necessary and a normal part of the business life cycle. In this period the manager begins to close the business rather than making new investments in the declining business. At that time manager consumes the current machinery and get the benefit until retirement. At this stage surplus capital often exists but the supply of labour is short and non-business goals receive higher priority.

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Task 4

Different methods for the management to review current leadership requirement

According to the researchers, different leadership methods for the management are used in different situations. The autocratic or authoritative manager is probably the least popular. Many times, this manager only says something to his employees when something is wrong. As a result, he is often considered difficult to communicate with and can be perceived as imposing or domineering. Another characteristic of the autocratic manager is the felt need to control all aspects of a department rather than relying on subordinates to carry out tasks autonomously. He also tends to prefer blunt and direct communication.

The developmental or consensus-based manager, on the other hand, is often well-respected for his tolerance and open-mindedness. His employees consider him approachable on most any issue and understand that he will consider ideas that sometimes are in disagreement with his own. The developmental manager typically relies heavily on coaching and feedback to foster a trusting work environment.

Depending on the situation the company is in, it may not be best to be either autocratic or developmental in management style. Instead, a combination of the two may be a better fit. Too often, in their approach to soften their communication, developmental managers can fail to get their messages across. Authoritative managers get their message across, but can do so in a damaging and demeaning way, often squelching enthusiasm. A blend of the two results in carefully worded yet direct communication with employees.

1) Globalization

Globalization means interaction among the countries of the world in order to develop the global economy. In globalization involves technological, economic, political, and cultural connections which become advances through effective communication, transportation, and infrastructure. There are two types of integration.

Benefit of Globalization

Globalization has the great impact on the countries development and according to economists there are a lot of global events connected with globalization. Benefits of globalization are as follow

1) Improvement of International Trade2) Technological Progress

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3) Increasing Influence of Multinational Companies4) Power of the WTO, IMF, and WB5) Greater Mobility of Human Resources across Countries6) Outsourcing of Business Processes across Countries

2) Takeover

Take over means seize and take control without authority and possibly with force and take as one's right or possession. Takeover can be friendly and hostile. In the friendly take over the firstly the bidder make an offer to management and management serve the shareholders instead of rejection. In the hostile take over the suitor takeover the target company when they feel the management is unwilling.

Benefits of Take Over

1) Venture into new businesses and markets 2) Increase in sales and revenues 3) Profitability of target company4) Increase market share5) Decrease competition 6) Reduction of overcapacity in the industry7) Enlarge brand portfolio 8) Increase in economies of scale9) Increased efficiency as a result of corporate synergies

3) Merger

Merger means combining of two or more companies by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. In the other words means when two companies combine to form a single company and merger is very similar to an acquisition or takeover, except that in the case of a merger existing stockholders of both companies involved retain a shared interest in the new corporation.

Benefits of Mergers

1) Create the international competition2) Increase the level of efficiency

3) Enter a new market4) Introduce new products through research and development5) Administrative benefits6) Increased market share7) Lower cost of operation 8) To gain higher competitiveness9) Improve profitability

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http://www.wisegeek.com/what-is-a-corporation.htm

http://www.investopedia.com/terms/m/merger.asp

http://en.wikipedia.org/wiki/Economies_of_scale


Task 5

Report on the usefulness of different methods used for developing leadership skills

When developing leadership skills, one must soon confront an important practical question, what leadership styles work best for me and my organization? To answer this question, it's best to understand that there are many from which to choose and as part of your leadership development effort; you should consider developing as many leadership styles as possible.

One dimension of has to do with control and one's perception of how much control one should give to people. The laissez faire style implies low control, the autocratic style high control and the participative lies somewhere in between.

Are leaders born or made?

Well, leaders are born, but only in la la land! You can be born with the traits of a leader but the right encouragement is a must for developing leadership skills.

While developing leadership skills at an early stage has its advantages, it’s never too late to start if you haven’t yet discovered the leader in you! And that’s not a whole load of motivational hogwash.

Robert K. Greenleaf”The only test of leadership is that somebody follows”.

The following is the check-list for good leaders?

1) Test the waters: Employ a 360 degree approach wherein you receive feedback from your team members and peers.

2) Listen hard: Geat leaders are good listeners!3) Connect: Effective communication is a fine art.4) Be a people’s person: Trust them with their work; don’t be a watchdog.5) Lead by example: Be prepared to put your money where your mouth is. It

works like a charm!6) Share leadership: You become a better leader by involving more people in the

leadership process.7) Evaluate your success in tandem with that of the team: Focus on building their

skills as this will enhance motivation and team performance.

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Unit 1 (Developing Strategic Management and Leadership Skill)

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Transcript of Unit 1 (Developing Strategic Management and Leadership Skill)