LOI HEIN GROUP OF COMPANIES

Contents

To

Company Profile
Link Between Strategic Management and Leadership
Impact of Management and Leadership Styles on strategic decisions
Adaptation of leadership styles to different situations
Impact that selected theories of management and leadership have

on
Organizational strategy
Leadership strategy that supports organizational direction
Appropriate methods to review current leadership requirements
Plan for the development of future situations requiring leadership
Plan for the development of leadership skills for a specific

requirement
Usefulness of methods used to plan the development of leadership

skills
Conclusion
References

DR.SAI SAM HTUN

Chief Executive Officer
Loi Hein Co.ltd

From
Ms.Thandar Soe Lwin
Senior Management Advisor
Date: 30th October 2016

Dear Sir,
I would like to submit a proposal about the role of strategic management
and leadership for our organization in order to enhance, develop and
achieve our organization in future. Nowadays, economic in Myanmar is
very challenging and many investors are tending to invest in our country.
Throughout this challenging time, employees expect effective leaders
with good leadership strategy to bring their hope for better changes in the
future. Therefore, I would like to submit my proposal to review current
leadership requirements and how our organization can develop future
leadership development strategies.

The Link between Strategic Management and Leadership

In this assignment it's going to be discussed about the strategic
management and leadership. It will be analyzed the linkage between
the strategic management and leadership. The organization which
will use to describe the link between strategic management and
leadership is LOI HEIN Group of Companies and it will discuss about the
impact of strategic management and leadership on the organization and
how they work.

Since change is the function of leadership, being able to generate highly

energized behavior is important for coping with the inevitable barriers to
change. Just as direction setting identifies an appropriate path for
movement and just as effective alignment gets people moving down the
path, successful motivation ensures that they will have the energy to
overcome

obstacle.

-John P. Kotter
Strategic management is the process of examining both present and
future environments, formulating the organization's objectives, and
making, implementing, and controlling decisions focused on achieving
these objectives in the present and future environments.
( Ryszard Barnat, 2014)
Strategic management process has following four steps:
1. Environmental

Scanning- Environmental scanning refers to a

process of collecting, scrutinizing and providing information for

strategic purposes. It helps in analyzing the internal and external
factors influencing an organization. After executing the environmental
analysis process, management should evaluate it on a continuous
basis and strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of
deciding best course of action for accomplishing organizational
objectives

and

hence

achieving

organizational

purpose.

After

conducting environment scanning, managers formulate corporate,

business and functional strategies.
3. Strategy Implementation- Strategy implementation implies making
the strategy work as intended or putting the organizations chosen
strategy into action. Strategy implementation includes designing the

organizations structure, distributing resources, developing decision

making process, and managing human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy
management process. The key strategy evaluation activities are:
appraising internal and external factors that are the root of present
strategies, measuring performance, and taking remedial / corrective
actions. Evaluation makes sure that the organizational strategy as well
as its implementation meets the organizational objectives.
These components are steps that are carried, in chronological order, when
creating a new strategic management plan. Present businesses that have
already created a strategic management plan will revert to these steps as
per the situations requirement, so as to make essential changes.

Components of Strategic Management Process

Strategic management is an ongoing process. Therefore, it must be realized
that each component interacts with the other components and that this
interaction often happens in chorus.
(EXPERTS, 2016)

Leadership definition
Leadership is all about determination, personality and innate ability at the
right time for a particular competitive situation. And it is a relationship
through which one person influences the behavior or actions of other people.

(J.MULLINS, 2010)

Leader Definition
A leader is someone [who] leads by example and has the integrity to do
the right

thing

even

when

it

is

not

popular.

good

leader

has

positive influence over others, inspiring them to become a better person and
example for others to model their life against, as well." Mark Little, founder
and president
(Helmrich, 2016)
Why leaders are important for achievement of organizational
objectives?
Leadership is an important function of management which helps to maximize
efficiency and to achieve organizational goals. The following points justify the
importance of leadership in a concern.
1. Initiates action- Leader is a person who begins the worth of effort by
communicating the policies and plans to the subordinates from the
place where the work actually starts.
2. Motivation- A leader turns out to be playing a motivator role in the
concerns working. He motivates the workers and employees with
economic and non-economic remunerates and thereby gets fill in
starting with the subordinates.
3. Providing guidance- A leader has to not only supervise and manage
but also play a guiding role for the subordinates. Guidance here implies
instructing the subordinates the way they must perform their work
adequately and proficiently.

4. Creating confidence- Confidence is an important factor which can be

attained through expressing the work endeavors of the subordinates,
explaining them clearly their role and giving rules and guidelines on
accomplish the objectives effectively. It is also important to hear the
employees with views to their objections, complaints and problems.
5. Building morale- Morale means willing co-operation of the employees
towards their work and getting them under certainty and winning their
trust. A leader can be a morale booster by accomplishing full cooperation with the goal that they perform with best about their
abilities. Similarly, as they worth of effort to attain objectives.
6. Builds work environment- Management is getting things completed
from people. An efficient work environment helps in sound and stable
growth. Therefore, human relations should be kept into mind by a
leader. He should have personal contacts with employees and should
tune in with their issues and solve them. He should treat employees on
humanitarian terms.
7. Co-ordination-

Co-ordination

could

be

attained

through

accommodating particular diversions with organizational goals. This

synchronization can be achieved through proper and effective coordination which should be primary motive of a leader.
(EXPERTS, 2016)

Role of leadership
To be an effective leader of either a private- or public-sector organization
requires you to do five things:

1. Understand and interpret the environment in which you operate;

2. Develop winning strategies;
3. Execute them brilliantly;
4. Measure the impact of your strategies systematically, adjusting
strategies as indicated; and, Develop organizational, departmental,
team and personal capabilities.
(Gandz, 2005)

1. Linkage between strategic management and leadership

A leadership is the bridge between strategic management and their
target. Its because of a leadership that organization gets their desired
tasks and targets.
Management is responsible for people and resources in a unit
according to rules or values that have already been set while the
leadership set a direction to the people in group.
We can understand the link between strategic management and
leadership by this example that good leadership and effective
management are always the of success in any organization so both of
these are the skills which going side by side without management a
good leadership can only satisfy for the time being not in a long term
same as an effective management is nothing without the good
leadership.
When great leadership is jointed with effective management, you are
able to set a direction and be able to allocate the resources the way
you want. Not only that, you will achieve your goal the way you have
thought and the way you want to achieve.
(Anonymous, 2013)
(Anon., n.d.)

1.1

The Impact of management and leadership style on

decisions
Organizations

all

over

the

world

are

deeply

concerned

with

understanding, searching and developing leadership. Regardless of the

type of organization, leadership is discerned to play a vital role in
establishing high performing teams. Leaders are facing greater
challenges than ever before due to the increased environmental
complexity and the changing nature of the organization. The current
era not only demands having a competitive edge and sustained
profitability but also the maintenance of ethical standards, complying
with civic commitments and establishing a safe and equitable work
environment. Leadership is one of the critical elements in enhancing
organizational performance. Being responsible for the development
and execution of strategic organizational decisions, leaders have to
acquire, develop and deploy organizational resources optimally in order
to bring out the best products and services in the best interest of
stakeholders. In short, effective leadership is the main cause of
competitive advantage for any kind of organization (Zhu et al., 2005;
Avolio, 1999; Lado et al., 1992; Rowe, 2001)
(Anonymous, 2013)
In Loi Hein, both autocratic and democratic management styles are
adopted. Autocratic Leadership manages on Factory floor and NonProfessional Team like Sales Team. The factory manager, in charge of
the factory, controls the labors and makes decision for the whole
factory. As a result of using this style, it saves the time and decisions
can be made quickly. In addition, the labor could emphasize on
manufacturing process. Besides, fewer conflicts between the labors
and more productivity could be found and Sales Team could achieve
the Monthly Target.

Democratic style is also one of the management styles that Loi Hein adopts.
Hence, the Technicians group members among the company could share
their opinions, views and ideas. Because of this, there are discussions
between the managers and teams. Thus, the manager could receive the
different feedbacks from the team. It is also beneficial for the Board of
Directors as it encourages the current ideas of empowerment and
engagement of staffs. Therefore, the people in the organization and
workplace could be more flexible, comfortable, satisfied and convenient.