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1.

UNDERSTAND THE RELATIONSHIP BETWEEN STRATEGIC

In order to become a leader in any organization one needs to be careful about how
easily leadership can influence planning of an organization to meet the existing and
future demands of leadership. And there are chances that Ill be in a position to lead
my organization and make a difference. Following are some of the ideas about
strategic management and leadership skills that have been used and are still being
used by firms all over the world in order to achieve success.

Introduction of Easy Jet


Easy Jet is a British airline and it operates international and domestic services in thirty
two countries in more than seven hundred routes. They are famous for providing
affordable flights for the customers. And their mission is also to make flights as cheap
as a pair of jeans (Jones, 2007). Its projected net income in 2015 was 548 million.
Carolyn McCall is the chief executive officer of this company and has been successfully
improving the organization at all levels. Ever since she has joined the organization, the
company has seen tremendous success. It has attracted more passengers to the flight.

TASK 1.1
Relationship between strategic management and leadership
There are barriers in achieving an organizations objectives but a strong leadership
can easily overcome those obstacles. A strong leadership in an organization can
help to develop and implement strategies that can help achieve professional goals
(Katsioloudes, 2006). Corporate world is deeply concerned with comprehending,
seeking and developing leadership. The type of a company does not matter but
what matters most is the leadership of that company and how it is leading its people
in every department.
Strategic management is a procedure that involves evaluating companys decision
before their implementation and predicting its future impact on the agreed goals. It
helps in identifying internal and some external weaknesses that are a hurdle for
achieving success (Katsioloudes, 2006). One of the basic roles of strategic
management is to set clear targets and communicate it to its organization. It also
helps in establishing solid action plans and their execution. Strategic management
also changes or mould plans if the desired results are not being achieved. So it can
be said that strategic management is basically a comprehensive set of continuous
procedures and activities that help a company maintain its system while not losing
its vision, mission and strategy. Strategic management actions alter the static plan
into a working system which in turn gives performance feedbacks and it facilitates in
decision making and the plan is then further moulded as the situation demands
leading to a systematic implementation of any strategy. And the strategies cannot be
implemented if there is no strong leader at the back of every strategy.
Now the objectives of the company are to improve its services further and maximize
its profits for the year. Additionally, customer satisfaction is of paramount interest for
the organization and so it wants to develop a plan so that it can make journey easier
for the customers all over the world.
The strategy of the company and the leadership of every company are closely linked in
that the planned strategy is executed by the leader. Now the organization requires such
a dynamic leadership that can support it completely and communicate to all the
employees about the organizations direction. Strategic management anticipate
marketing trends and strong leadership aids in achieving those goals. While leadership
takes bold steps according to the strengths and weaknesses of the organization
strategic management is concerned about lessening the impact of risks by adopting risk
response strategies.

1.2 Strategic Planning and the impacts of leadership style and management:

Both leadership style and management is essential in the strategic planning and
decision making of the company. Leaders lead the team and inspire management to
achieve the targeted objectives and so leadership impacts are far greater throughout
the organization. Leaders are considered to lead and managers are considered to
manage and keep a balance within the organization (Adair, 2013). Various leadership
styles are discussed below:
Charismatic leaders maintain their image by inspiring his/her employees to the degree
that they idealize him or her and are eager to follow his or her footsteps. Employees are
motivated to a greater extent by the leader and they try to reach their potential in order
not to disappoint their leader. Moreover, charismatic leaders are always confident and
bold to take calculated risks. Such leaders are not occupied with themselves only, they
like to ask and discuss their employees opinions and suggestions as well (Avolio and
Yammarino, 2013b).

Democratic leadership involves inclusive approach and gives the prospect to the
workers to contribute and produce or find novel ideas that can contribute to the
productivity of the company. Democratic leadership facilitates the exchange,
encourages workers to share their ideas, and then combine the available information to
take the best decision. This style of leadership allows a lot of flexibility (Chowhan and
Shekhwat, 2015).

Autocratic leadership is when an individual controls all the decisions and takes little or
no input from its employees. Autocratic leaders make their own choices based on
various judgments and ideas of their own. They rarely take input and instead give
orders to others. Besides the decision making is straight forward because normally a
single person is responsible for the decisions to be made.

1.3 leadership styles varying according to situations

If any company is unable to ascertain its success through certain leadership style, then
the leader in the firm should have enough expertise and skills to turn around the tables
by changing or adopting a new approach towards the same problems so to gain higher
productivity from employee and maximum success. Leadership styles can vary from
one situation to another and organizations all around the world understand it perfectly
(Adair, 2013). For instance sometime companies have to make big decisions that can
completely change the outlook of the company so think tanks will need to consider
which leadership style would be suitable for the company before and after the changes.
In these cases where companies are yearning to completely change the traditional style
of leadership then democratic leadership is often used. So a leader should be ready to
face any kind of situation in a company and should have enough expertise to change
the game (Bertocci, 2009b). Companies that are flexible when it comes to management
and leadership have more advantage in the market. The companies should choose the
leadership according to the scenario and the objectives. It could also happen that the
leader faces some failure but in such situations leader should not lose his composure
and should try to figure out the solution of the problem logically (Bertocci, 2009b).

Carolyn McCalls leadership overview reflects her charismatic leadership style. She
listens to her employees suggestions and is considered a successful leader. She has
transformed the airline in many ways by adding her vision to it. As a leader in my
organization I will follow the qualities of a charismatic leader. I will take advantage of my
prior knowledge about leadership in order to achieve long-term success. I will
amalgamate techniques of various leaderships along with charismatic leadership style
in multiple tasks. Moreover, I will use my expertise as a leader when some difficult
scenario builds up and will take calculated risks, if necessary, and take strong decisions.

2.1 Support for organizational direction through management and leadership


theories:

Theories of leadership and management are essential to formulate, execute and control
the strategies of an organization. Various management theories such as X & Y theory,
Maslow hierarchy of needs etc can be utilized in establishing an organizations
strategies regarding their future presence. And for this strategic management various
leadership styles are used. These various styles of leadership have been tried by
various organizations and some styles were more successful than the others. The
following theories of management and leadership strongly influence the organizations
direction is described as follows:
Theory X and Theory Y

Theory X of management is used when the organization wishes to increase its workers
productivity. But the style in theory X is authoritarian management. Theory Y is a de-
centralized theory. It says that workers are ready to take responsibility and this theory
overall encourages workers in comparison to theory X. According to this workers are
motivated and creative towards their work and consider it to be an essential part of their
life. In organizations that follow Y theory tends to involve their workers more in
discussing various options before final decision making. Theory X workers avoid a lot of
work and do not like to take responsibilities and require ordering or direction from the
boss. The management controls, forces to get the work done. According to this theory
workers are never motivated towards their work. Organization following X theory have
lots of managers and supervisors. But better results are obtained by using theory Y in
organizations (Schermerhorn, 2004).

Maslow hierarchy of Needs

This theory is divided into five stages that outline motivation style in an organization. To
motivate all the workers, every organization should follow the needs pyramid so that all
the needs of the workers are met. It includes physiological needs which if not met
makes it impossible for a person to survive and it has sleep shelter, food, breathe. The
second level from the bottom is of safety which has emotional well-being, job-security,
property safety etc. Third level is of social needs which include friendship, relationships.
Fourth and fifth level is of esteem and self-actualization which includes self-esteem,
problem solving, morality, creativity, competence, independence etc. Many
organizations use the fourth and fifth level of this pyramid in their organization by
providing essential development opportunities and recognition to their employees to
make them feel that their work is valuable and in this way they can reach their potential
(McGuire, 2012).
Leadership theories

Charismatic leadership

Its a style in which leaders are considered role models by the employees and are
considered to motivate everyone in the organization. Charismatic leaders have a
dynamic personality that can charm the workers and make them believe in his or her
visions and aims. S/he motivates the members of the staff in such way that they are
motivated to produce their maximum efforts for the organization. And this leadership is
often used in companies where employers want extraordinary performances from their
staff (Avolio and Yammarino, 2013b).

Transactional Leadership
Transactional leader motivates his or her followers through rewards and punishments
and focuses on supervision. Transactional leader punishes his or her employees if their
performance is unsatisfactory and not according to the set standards. Transactional
leaders are prepared to work with existing systems in organizations and discuss to
achieve goals of the firm. They are reluctant to think outside the box when solving
problems. This limit the workers who want to connect with advanced professional
environment. They do not innovate and shift their focus towards achieving a set target
of the organization (Chatham and Sutton, 2010).

Situational theory
This leadership style focuses on tackling situation at hand and if the required situation
demands something then they are willing to everything in their power for it to
accomplish. Sometimes they are encouraging and sometimes commanding. When their
people require supervision they tend to give directives otherwise they are motivational
for their people (Chowhan and Shekhwat, 2015).

Trait theories
Trait theory implies that successful leaders possess distinguishing characteristics that
differentiates them from ineffective leaders and lower level of employees (Chowhan and
Shekhwat, 2015).
2.2 Leadership strategy that helps in achieving organizational direction
Leaders have a central role in an organizations productivity, success and the
performance of the employees. An exemplary leader is the one who is courageous and
can take bold firm steps and can be entrusted any responsibility because of his
expertise in leading (Bertocci, 2009b). For instance Carolyn McCall achieved a
milestone when she achieved the landmark of flying sixty nine million passengers in a
year and this off course was done after a huge hard work of the organizations
employees. This is the power of a strong leader and his/her cooperative team. An ideal
leader should be able to communicate effectively with his or her employees about the
direction or their vision regarding the organization. And whenever there is a failure, in
any form, they think logically from every perspective and try to search a rational solution
for it and exhibit a positive attitude. Additionally, great leaders are extraordinary at
strategic planning and they can anticipate results and market situations. Leaders have
skills to select a team having range of specializations which would aid in solving issues
in various tasks (Schermerhorn, 2004).
Good leaders provide supervision and assistance to their team and refine their skills
and the staff members idealize their leaders as role models. In this way your skills are
being noticed by the employees and being transferred unconsciously to them. The
leadership must be in synchronization with the ethics of the company and ensure their
implementation (Schermerhorn, 2004).
Task 3
3.1. Suitable methods to evaluate existing leadership requirements:
Appropriate methods are required to aid the leaders in reaching their desired outcomes.
Easy Jet has plans to increase its profit and it could be done through sound strategic
planning but in order to successfully realize this mission certain obstacles need to be
overcome by the organization. And these obstacles are overcome smoothly when the
organization has a powerful leader like Carolyn McCall of easy jet. This airline is willing
to expand its business and increase their profit but few issues must be dealt with such
as maintenance, fuel prices and number of planes. But company is hopeful of achieving
it all because it has achieved milestones previously under Carolyn McCalls leadership.
She helped the organization achieve record profits in 2012 and paid dividends in 2013.
Moreover, the company was in FTSE 100. THE airline also purchased 135 airbuses in
2013 after Carolyn McCalls tough evaluation process.
As mentioned above charismatic leadership style inspires me. I will follow the example
of Carolyn McCall in gaining more profits for my company. Charismatic leaders like
Carolyn McCall motivate their workers and encourage them. It has been noted that she
encourages her workers a lot and the environment of the company is likable. Similarly, I
will also keep the environment of my company lively and will at each step guide my
employees whenever there is a need to do so. Moreover, customer centered approach
is necessary in organizations now and Carolyn McCall is no different because she is
courageous and is concerned about needs of her employees and customers. This
makes everyone feel unique and perform with their greatest attention. And it is a fact
that organizations need inspirational leaders in power position to do all the above
mentioned points.
3.2 Planning for the improvement of future circumstances that require leadership
In order to gain some edge in the market, organizations have strategic planning and
ideal leadership for achieving their set objectives. The companys vision is necessary so
that its leaders can get the direction in which to move forward. Leaders should also
have their own skills or expertise that can help them gain their value. The people
working in any organization should have both their own professional goals for the
organization and should also have understanding of the organizations overall
philosophy (Schermerhorn, 2004). In future our company has some plans to extend its
services in other countries and to improve the existing facilities in journeys so that
customers are satisfied throughout their long journeys. In such a condition leader is
considered to know beforehand about the behavior of consumers belonging to various
cultures. Similarly, the routes that have less traffic on them can be used for some flights
and the leadership is required to do thorough research in this regards. The leader will
also need to figure out the facilities provided in other countries for their services and
their laws. The organization will also need to be cautious of the cost and the resources
available to them. And leaders in this case can be helpful in judging the market
situation and helping out by guiding the organization about the market situation and
where to locate their resources. Leaders can also help with regards to the overall cost
and some reduction if necessary in the plan (Rothstein and Burke, 2010). And due to so
many changes going on within an organization a company needs to have a charismatic
leader so that the workers feel motivated. Leadership can keep the workforce motivated
and can communicate the necessary points to them in order to follow the firms plans.
So the crucial role of a leadership cannot be denied as it monitors all these aspects for
the organization and help in implementation.
Task 4
4.1 Planning the development of leadership skills

Leaders are effective in communication, competitive when it comes to competition of


any kind, courageous in taking calculated risks and so they can smoothly sail the
company towards success. There are methods that can be used if the leadership skills
of a leader are not satisfactory. I can take some help from these methods in order to
become a worthy leader. I will take some training about how to channel mine and my
employees emotions in a positive way that could benefit my company. Emotional
intelligence is useful and when a leader is bale to understand the emotions of his/her
workers or customers then they can empathize with them and actually figure out
solutions for their problems (Rothstein and Burke, 2010). I am not good at judging
emotions of people so I will take some sort of training to improve myself in it.
Sometimes charismatic leaders are so influencing that people actually begin to depend
on them entirely which is not good for the organization in general. I will make sure that I
maintain the independency of workers and will try not to entirely overcome their
independency. I will arrange several meetings for them so that abundant of opinions and
suggestions become available and matters can be resolved quickly and smoothly.
4.2 Reporting upon the effectiveness of methods
Corporate strategy is about deployment of existing resources to attain professional
objectives whereas leadership is concerned with employing it. Strategic planning is
what affects the direction of the company and establishes its environment. So
leadership in this regard should be fully equipped and trained, if the need be so.
Leaders who want to stay successful throughout their career need to learn and evolve
(Rothstein and Burke, 2010). In this regard trainings, workshops are available as an
option for all leaders in various capacities. And leaders who want to evolve or adopt new
approaches seek these trainings. A leader is always vigilant about his or her visions and
so they motivate not just others but themselves to achieve the desired outcome. In this
regard communication plays a crucial role and leader needs to know how to use this
tool effectively.
All the tough challenges faced by the leaders require sometimes special training for
their betterment and overall companys benefit. Sometimes in order to motivate others,
leaders can go outside their comfort zone in order to prove their mettle. Leaders are
aware about the short comings and strong points of their team and they dont hide their
vision from their team and exhibit plans clearly to their team. Meetings are always
beneficial in which individuals can be motivated. In this way employees get proud
feeling of taking their organization to newer heights.

Conclusion
Strategic management alongside leadership facilitates in selecting a successful path for
the organization. Furthermore, a range of theories that have been mentioned here are
used to achieve the best leadership and learn about the impact of leadership in an
organization. And if I have to achieve success in my career as a leader I need to select
some of the ideas that are in use for centuries when it comes to leadership in an
organization. Changes are to be anticipated and so I must evolve and be adaptable and
not rigid. I have highlighted all perspective about strategic management that can help
organizations to have a competitive edge in the market.
References
Katsioloudes, M.I. (2006) Strategic management: Global cultural perspectives for profit
and non-profit organizations. 2nd edn. United Kingdom: Elsevier Butterworth-
Heinemann.

Adair, J.E. (2013) Develop your leadership skills (Sunday Times creating success).
Philadelphia: Kogan Page.

Bertocci, D.I. (2009b) Leadership in organizations: There is a difference between


leaders and managers. United States: The Rowman & Littlefield Publishing Group.

Schermerhorn, J.R. (2004) Management. 8th edn. New York, NY: Wiley, John & Sons.

Avolio, B.J. and Yammarino, F.J. (eds.) (2013b) Transformational and charismatic
leadership: The road ahead. 10th edn. United Kingdom: Emerald Group Publishing.

Chowhan, S.S. and Shekhwat, N. (2015) Business and management. United States:
Lulu.com.

Chatham, R. and Sutton, B. (2010) Changing the IT leaders mindset: Time for
revolution rather than evolution. United Kingdom: IT Governance Publishing.

McGuire, K.J. (2012) Maslows hierarchy of needs. An introduction. Munich: GRIN


Verlag GmbH.

Jones, L. (2007) EasyJet: The story of Britains biggest low-cost airline. 2nd edn.
London: Aurum Press.

Rothstein, M.G. and Burke, R.J. (eds.) (2010) Self-management and leadership
development. United Kingdom: Edward Elgar Publishing.