Strategic Management: Importance of Leadership

Table of Contents

Introduction
Communication and learning
Company change Process
Leadership and change
Generic Strategies
Porters Generic Strategies Analysis
Conclusion
Bibliography

Introduction

The importance of leadership in managers communication and the areas of managers participation in developing skills of employees etc are discussed here. This study is intended on change aspect of company and explains the generic strategic direction formulated by management and actually implemented by leaders.

Communication and learning

Communication skills of management are an essential that help the employees to understand and act upon process events which occurring in the office environment. Good communication is essential for an employee to gain insight into the human processes in organisation and learn skills in diagnosing and managing them. It is essential to give emphasis on communication, leadership and individual roles in groups for problem solving and decision making. Change is the crucial factor in development process. For making effective change requires leadership with knowledge, and experience in change management.

Organisation development activity designed by Blake and Mouton applies to whole organisation. Accordingly, this grid model starts with upgrading individual managers skills and leadership abilities, moves to improvement activities, then to intergroup relations activities. Self management and interpersonal skills are being increasingly acknowledged as critical skills required for leadership effectiveness across domains of expertise and different organisational contexts. (Suchy).

Company change Process

Organisational change is the responsibility of the top management. Resistance to change is common thing in any organisation. However, change is essential for organisational development. According to Lewin, there are three phases of change process- unfreezing, changing and refreezing.

Unfreezing-Unfreezing means forgetting or unlearn of old things in order to learn new things. Unfreezing is done by changing employee from the old working atmosphere. There are several steps to make an employee unlearn about old way of working and it is managers duty to take the correct approach. Motivation, punishment, rewards, etc can be used for unfreezing. Thus unfreezing is the way that the employees feel that they have to forget all old things and to learn new things for development.

Changing-When employees unlearn of old things then it is easy to place new things before them and they will be ready to learn new things. In this step employee is expected to identify themselves and also expect new behaviour in a new situation. In this way, in a particular situation they behave in the same way again and again and that behaviour becomes part of their personality.

Refreezing- Unfreezing and changing is not useful without refreezing. In refreezing, employee will be placed in a situation where they are expected to display the changed behaviour. If no atmosphere to display the changed behaviour means all process is just wastage of time. Even with a favourable environment, it is essential to have some kind of reinforcement. Reinforcement can be of continuous and intermittent.

Leadership and change

Strong leadership is essential to overcome the resistance of change by the employees. Efficient leaders will be able to explain the benefits that are likely to occur as a result of change. And also should be able to convince how it is beneficial to organisation and employees. In an organization where there is faith in the abilities of formal leaders, employees will look towards the leaders for a number of things. During drastic change times, employees will expect effective and sensible planning, confident and effective decision-making, and regular, complete communication that is timely. (Front and Center Leadership Critical to Managing Change. 2008).

Manager with good leadership quality will be able to maintain efficient two way communication through out the change process and is essential to cope up with the change. Gradual introduction of change will be highly beneficial to the leaders as they get good time for discussion with employees and other members. It is a fact that leadership influences change in companys strategies. As the speed of change continues to increase, change management is a fundamental competency needed by managers, supervisors, Human Resources staff, and organization leaders. (Change Management Plan, Implement, Communicate, Measure, Involve. 2008).

Strategic management is an effective decision making process. It is undertaken by top leaders or management of the company. Good managers cannot be assumed as good leaders but hall good leaders are good managers. Managers can be developed through training but it is hard to develop good leaders. Efficient leaders will have well planned strategies and clear direction whereby they will be able to attain a well developed strategy. The success of the strategic plan is mainly dependent on the efficiency of the leaders. Good leaders with desired skills, vision, ability to lead team, risk taking ability are essential for achieving companys strategies. Successful leaders usually will have a good understanding of the companys mission and they help in directing its operation towards the ideas.

Generic Strategies

According to Porter, there are three generic strategies that a company can undertake to attain competitive advantage: cost leadership, differentiation, and focus.

Porters Generic Strategies Analysis

Companies can achieve competitive advantages essentially by differentiating their products and services from those of competitors and through low costs. Firms can target their products by a broad target, thereby covering most of the marketplace, or they can focus on a narrow target in the market. (Main Aspects of Porters Generic Strategies Analysis).

Conclusion

Management who is having good knowledge of concepts, theories and operations is not enough for meeting the challenges of new business situation. It is the efficient leader having leadership skills who can actually direct and implement the change.Effective leader is different from effective manger. An effective leader can find the right path towards the goals of the company.