INTRODUCTION

I am working at the medium sized company, Silky Road (SR), has success in the
electronic industry, as a senior management advisor. The main office is located in the Kyout Ta
Tar Township. We imported high quality electronic items such as Hand phone, telephone, TV,
laptop, computer, DVD, etc., from Thailand, South Korea, Hong Kong, USA. We are now 5th
place in the market.

1.1

Management is the act of getting people together to accomplish desired goals and
objectives using available resources efficiently and effectively.

Strategic management is defined as the set of decisions and actions resulting in the
formulation and implementation of strategies designed to achieve the objectives of the
organization (John A. Pearce II and Richard B. Robinson, Jr.).

The processes of strategic management are environmental scanning, strategy

formulation, strategy implementation and evaluation.

Implementing strategy requires a team effort headed by organization's leadership. Each

person involved in change management has their responsibilities, and it is important for the
entire organization to understand the role of leadership in strategic implementation to make
delegating responsibility more effective.

In strategy evaluation, leadership examines the bases for strategy as well as compares
the expected results versus actual results, and develops corrective action plans if there are any
deviations.

The changing nature of work organizations, including flatter structures and recognition
of the efficient use of human resources, coupled with advances in social democracy, have

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combined to place growing importance on leadership. The nature of management is moving
away from an emphasis on getting results by the close control workforce and towards the
environment of coaching, support and empowerment.

Leadership is a process of social influence, which maximizes the efforts of others,

towards the achievement of a goal. There are four styles of leadership.

(1) The authoritarian or autocratic style

(2) The democratic style

(3) A laissez-faire style

(4) Participative leadership style

It is important to note that leadership plays the most dominant role in helping the
organization to reach its goals and objectives. It is because leadership plays the key role in
devising an effective and efficient strategy that enables an organization to reach its corporate
goals and objectives. There is an important link between strategic management and leadership
of an organization as leadership ultimately sets the strategic direction of an organization and it
is not easy to separate them as distinct activities. Leadership is concerned about the vision
while strategic management is focused on implementation according to the vision identified by
the leadership. Leadership is concerned with the dynamics of a situation and it identifies and
realizes that how to leverage its resources to respond to the dynamics of the situation. On the
other hand, strategic management is concerned with the technique and it follows the orders of
the leadership. Leadership is all about taking risks because leaders understand their strengths
and weaknesses and leaders tend to learn from their mistakes. While the strategic
management is more concerned about avoiding risk and adopting risk response strategies.
Leadership and management are both skills that an organization should possess. Management
won't take effect without the leadership. A leadership without management will only give us a

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short time pleasure. When good leadership is combined with the strategic management, we
can set the goal and able to manage the way we want.

1.2

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. And also without management, it will
not become good leadership. Whatever our goal is, we have to make decisions to achieve the
goal every moment. But the decisions should be corrected. To make the effective decisions, we
must not make decisions alone. And then the leadership styles and strategic management
techniques which we used are show the impact in decision making.

An autocratic leadership style relies on one individual to make decisions in a business. It

is a more authoritative management style. It does not rely on people to make the decisions.
Business owner can assess the important decisions in urgent business situations. That style can
be effective in work environment where decision needs to be made quickly. But that decision
might be wrong because it comes from the one's point of view.

The democratic style emphasizes that management offers guidance to its teams and
departments while accepting input from individual staff members. Leaders reserve the right to
make final decisions but encourage feedback, ideas, and suggestions from all employees. The
leaders generally have a more content workforce, since each individual has input into decision-
making. It allows the leader to capitalize on the employees’ individual talents and strengths,
while also benefiting from the power of the whole. It is best employed in cases where the
department or business is looking to implement operational changes or when a leader or
manager is attempting to resolve problems either individually or within the group. The
disadvantages of this style include a fairly slow, time consuming decision; less security, because
so many people are involved in the decision.

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 The laissez-faire leader is one who believes in freedom of choice for the employees,
leaving them alone so they can do as they want. There is a strong belief that the employees
know their jobs best so leave them alone to do their jobs. The business can be achieved if the
one who made the decision is reliable, full of knowledge and sense of responsibility. But also
the business can be failed if the decision is wrong because the leader give freedom to employee
in decision making. So, the laissez-faire style can be the best and the worst leadership style.

1.3

Leadership is less about we needs, and more about the needs of the people and the
organization we are leading. Leadership styles are not something to be tried on like so many
suits, to see which fits. Rather, they should be adapted to the particular demands of the
situation, the particular requirements of the people involved and the particular challenges
facing the organization. Leadership style is the pattern of behaviors used by the leader to
influence the behavior of others. Since different situations require different outcomes, it makes
sense that the most successful leaders adapt their style depending on the needs of situation.

But first we must identify our own leadership style that suits our organization. Knowing
and understanding own leadership style is the first step towards adapting our behavior to the
needs of the workers. And we should recognize the pros and cons of the leadership styles. We
have to appreciate the diversity among our staff. Diversity in organizational psychology is often
seen as differences among people that define or create the culture of the workplace. We
should experiment with different styles to see what style is the best for workers. As we get to
know our workers, we will get a sense of how much direction and how much freedom they
need to be productive.

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 When we are in the real urgency with no time for discussion, in critical situation,
engages in top-down interactions, we can use autocratic style. For democratic style, we can use
it in creating a work climate for others to apply innovative thinking to solve problems, develop
new products and services, to expand an organization's position in the marketplace, to raise
team morale. When the team is working in multiple locations or remotely, and a project, under
multiple leaders, must come together by a specific date, to get quick results from a highly
cohesive team, we can use laissez-faire leadership style.

2.1

The new environment is typified by an increased level of complexity and

interconnectedness. Managers were facing the difficulty when leading teams spread across the
globe. Because the global economy has become interconnected, managers felt they could no
longer afford to focus solely on events in their local economies; instead they were constantly
forced to adjust their strategies and tactics to events that were happening in different parts of
the world. In this part, two management and leadership theories will be chosen and reviewed
to show the impact of them on an organization. The first one is Transformational theory and
the second is Transactional theory.

Transformational leadership is style of leadership in which the leader identifies the

needed change, creates a vision to guide the change through inspiration, and executes the
change with the commitment of the members of the group. Transformational leaders are
focused on supporting group members so that they can succeed as well. Since leaders are
usually energetic and enthusiastic, the group members are very motivated and have high level
of morale to work and achieve the goals. Transformational approach is to bring significant
change in the life of both the organization and its people. It is important to know the impact of
transformational leadership on a group as the leaders will gain trust, respect and admiration

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from the members. If the leader gets trust and respect from the followers, then no matter how
the goal is big, they can easily achieve their goal. Since our current business environment is very
dynamic, so does the need for change in leadership style. People values most on personal skills
and development and prefer to work outside of the organizational boundary. But the
transformational leadership is not flawless and perfect. The successful transformational leader
is on a moral mission; and truly believes in the rightness and benefits of the change. The selling
of this vision never stops, and the followers receive constant encouragement to do their part.
However, any sign that the leader manipulates the followers or has a hidden agenda will
destroy the trust that is necessary for this style of leadership to be effective. If the followers
rebel the leader, then the organization cannot be heading toward the goal. And no matter how
the long term plan is perfect, it will be failed.

Transactional leadership is based on the setting of clear objectives and goals for the
followers as well as the use of either punishments or rewards in order to encourage compliance
with these goals. Transactional leadership is based more on “exchanges” between the leader
and follower, in which followers are rewarded for meeting specific goals or performance
criteria. A transactional leadership style is appropriate in many settings and may support
adherence to practice standards but not necessarily openness to innovation. It creates a vision
and inspires subordinates to strive beyond required expectations, whereas transactional
leadership focuses more on extrinsic motivation for the performance of job tasks. Thus it is
likely that transformational leadership would influence attitudes by inspiring acceptance of
innovation through the development of enthusiasm, trust, and openness, whereas
transactional leadership would lead to acceptance of innovation through reinforcement and
reward. However, subordinates of transactional leaders are not necessarily expected to think
innovatively and may be monitored on the basis of predetermined criteria. However the
transactional leadership style is also not perfect. This leadership style is very direct. The
transactional leader is expecting the results from the followers who in turn must deliver unless
they want to suffer the consequences. Only exceptionally good performance is rewarded, and
mistakes are corrected through punishment. A transactional leader is rigid in his expectations
about the working relationship, and believes the role of subordinates is to do as they are told.

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It's never the fault of a transactional leader when tasks go wrong. Once the leader has assigned
the task, that job is solely the responsibility of the employee. If problems occur, the employee is
expected to be fully accountable for the issues. As a result, employees may be likely to be
devious when the leader is not present. Because of the task-focused leadership approach,
employees do not feel as if they are working towards a shared goal, and they are not motivated
by the overall organizational mission. This will be a problem for long term organizational plan.

Leadership is important to consider in relation to acceptance of innovations and to work

attitudes, perceptions, behavior, service quality, and client outcomes. Because leadership is
associated with organization and staff performance when we planning to success our goal.

2.2

A leadership strategy allows the organization to identify how many leaders are needed,
what kind, where, with what skills and how they behave individually and in groups. The current
situation and the goals the organization are required to be analyzed and then a leadership
strategy can be developed.

Currently our organization uses the democratic leadership style. Because of the
democratic leadership, all employees feel comfortable enough to put their ideas on the table.
In collaborative settings, it helps to focus discussion and find the balance between being open
to new ideas and keeping things productive and on track. For the leaders, they can get many
possibilities and suggestions that can be used. The leaders can set the particular decision
because they get many suggestions from the various points of view.

But some managers adopt democratic leadership to please their subordinates but fail to
follow the technique in its entirety. They might simply take in all the ideas and end up never
implementing them. The decision making process might be a long drawn one since every team

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member needs to be consulted. No one has a scarcity of ideas but to put them all in place
requires a great deal of patience and understanding. Missing opportunities and being stuck in
the middle of a hazard can be some of the drawbacks of this method. Additionally, level of skills
play a role, as a large percentage of unskilled labor might hinder business decisions. Or, an
employee who lacks group skills might not have his voice heard in the democratic process.
Thus, this leadership style works best with smaller, more skilled labor force that can provide
management. Therefore we can't use democratic leadership style every time.

In this case, leadership styles and organizational situations are connected. We can't use
only one leadership style in all kind of situations. The leaders should use the autocratic style
when the conditions are dangerous and control is necessary, and when the subordinate staff is
inexperienced or unfamiliar with the type of work. Autocratic style is applicable for not only
actions that need to be completed quickly, but also if a team member’s skill for the task is very
low or novice. When a situation is very extensive, when things change frequently and when a
situation is very difficult and has a lot to talk about or discus, we should use democratic style.
Because it encourages to develop the followers' sense of participation, control and autonomy.
Greater employee participation in decision-making may also lead to greater innovation and
creative solutions to problems that will better serve an organization. A laissez faire style would
be appropriate to use with one or more individuals who know more about the job than the
leader. It will help the team members to tough business situations, helping them to gain more
experience and grow faster and it keeps team members aware of and continuously working
towards the larger picture.

If we want to use transformational leadership style, we can use it when we want to

listens to all viewpoints to develop a spirit of cooperation, creates a vision, using people in the
organization, acts as a change agent within the organization by setting an example of how to
initiate and implement change and helps the organization by helping others contribute to the
organization. For transactional leadership style, when we want to motivate the employees to
focus on short-term success.

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 Charismatic leadership is provided to an organization by one or more individuals seen as
heroic or inspiring and who have therefore been granted the organizational power to make
dramatic changes and extract extraordinary performance levels from its staff. For example, a
business manager imbued with charismatic leadership could be enlisted to orchestrate a
turnaround or launch a new product line. When we want to be followed by the followers
willingly, we should use this style. Fiedler’s Contingency Model is the theory that effective
groups depend on a proper match between a leader’s style of interacting with subordinates and
the degree to which the situation gives control and influence to the leader (Soe, A T, 2013).

If we want to be successful, not only leadership but also emotional intelligence (EI) as
well as emotional quotient (EQ) is necessary. Emotional intelligence is the ability to perceive
emotions, access and generate emotions so as it assist thought, understand complex emotions
and emotional knowledge and reflectively regulate emotions so as to promote emotional and
intellectual growth. Goleman(1995) said EI is “The capacity for recognizing our own feelings and
those of others, for motivating ourselves, for managing emotions well in ourselves and in our
relationships”. The intelligence quotient is not the only prerequisite for an organization to run
smoothly. In today’s cross-cultural, multi-disciplinary work set-up, the EQ or the emotional
quotient shares the pedestal with the IQ. For leaders, who are at the helm of affairs at the
workplace, a good EQ can create a network of positive and productive energy for enhanced
performance. A good EQ leader has personal competencies, the competencies determine how
we can manage ourselves, which are self-awareness, emotional self-awareness, accurate self-
awareness, self-confidence, self- management, self-control, trustworthiness, conscientiousness,
adaptability, achievement-orientation, initiative and social competencies, the competencies
determine how we handle relationships, which are social-awareness, empathy, organizational
awareness, service-orientation, social skills, developing others, leadership, influence,
communication, change catalyst, conflicts management, building bonds and teamwork and
collaboration. Emotional quotient gives leaders the humane perspective to help the team work
in an emotionally-stable space. As an integral aspect of management studies, emotional
quotient is built through training and experience.

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 Beginning with the business strategy, the first step is to identify the drivers of the
strategy. Drivers are the key choices that leaders make about how to position the organization
to take advantage of its strengths, weaknesses, opportunities and threats in the marketplace.
They are the things that make a strategy unique to one organization as compared to another
and dictate where tradeoffs will be made between alternative investments of resources, time
and energy. Drivers are few in number and help us understand what it is absolutely essential for
leaders and the collective leadership of the organization to accomplish.

This table shows the key decisions leaders are making about what the organization must
do.

Key Driver Leadership Strategy Implications

Becoming more global  Requirement for greater cultural sensitivity

among leaders
 Enhanced representation of different
geographies at top levels
 Enhanced language skills in key leadership roles
to enable cross-cultural relationship building
 Enhanced importance of foreign assignments
for future leaders
 Greater understanding of local laws and
business arrangements in strategy making

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Becoming more  Greater interdependence among leaders to
innovative create more effective collaboration across
functions in bringing new products to market
 Need to increase leadership involvement
across functions in gathering consumer insights
and translating these into profitable ideas for
new products
 Must anticipate capital, space, talent
implications of rapidly expanding product
portfolio
 Need cultural change to create a spirit of
innovation versus a culture of risk aversion at
top levels of the organization

Becoming more  Need to develop and implement new processes

customer-focus for understanding customer experiences and
translating them into improved business
practices
 Must create solid linkages across the
organization at all customer touch points, so
that the customer experiences a seamless
relationship
 Need to understand the needs of different
customer segments and move beyond “one
size fits all” approach
 Must instill a culture of customer primacy and
customer care

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 Investing in High-Growth  Rapid growth requires attention to talent
development; must accelerate the acquisition
Opportunities and development of talent for key roles to
avoid talent becoming the constraint to
continued growth
 Must grow number of leaders at every level by
10% per year over next three years

Improving Operating  Must introduce other methods to bring costs

into line with key competitors; these must be
Efficiency led from the top and supported by leaders at
every level
 Must create a culture of continuous
improvement that is led authentically by those
in leadership positions

3.1

In order for an organization to be successful in their business the management needs

skillful and talented leaders that will support the employees in effectively driving the workforce
of the organization to attain its goals. To be an effective and good leader entails looking into
the future of the organization for continuous growth therefore it is important for every
organization that is working towards success to have leaders that will initiate and bring ideas
forward in the interest of the organization and a highly skilled labor force that will also help the
organization to become highly competitive.

Leadership is depends on the changes in society and work. Nowadays the flexible
working is becoming a trend. Decreasing job security, company loyalty, unemployment are
encouraging career changes and self-employment, sectorial shifts from manufacturing and

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production to service and leisure industries, increasing pressure to work in collaboration and to
establish partnerships, private sector organizations are becoming more powerful are the facts
of changes of society. In this climate of change, leadership is viewed as the key to
organizational success. Although the core qualities of leaders may remain constant, the manner
and mix in which they are exhibited needs to become more fluid and matched to the context.
The leader needs to become increasingly adaptable – making sense of uncertainty and
managing complexity. The qualities of openness, empathy, integrity and self-awareness are
coming to the fore.

As the need for good strategic leadership becomes critical, it is proposed that further
steps need to be taken to identify, develop and support potential future leaders from an early
stage. Changes in society are turning towards the moral, social and ethical responsibilities of
leaders. In response to these challenges, many organizations are beginning to reevaluate their
perception of leadership. Therefore, the quality of leadership will remain of central importance
to organizations in all sectors.

Most organizations want to become globally competitive but at the same time they still
want to keep in touch with the local markets. That's why the knowledge of working virtually
became a necessity. There are many benefits of going with virtual teams. One of those is that
virtual team members produce projects for the company, locally, nationally and internationally.
New skills in leadership are always required so that a strong relationship will develop in a virtual
community. A leader must always think of new ways, new strategies, and new techniques to
connect with his/her team so that they can work well and be productive. The virtual team may
be spread over the world, or over different campuses, or over employee’s homes. It is dynamic
in terms of its goals, structure, and control and resource deployment.

Diversity is concerned with making the best use of differences and removing barriers to
such use. Singh (2002) suggests that diversity matters for several significant reasons; the
business case, the fairness case and the merit case. Diversity must become a strategic issue,
and managers must have a vital role in leading progress and changing practices. Diversity of
behavior and values becomes very apparent when managers work in a multinational company

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(MNC) or global organizations, and leaders and mangers will need to learn to work in and with
different cultural contexts.

Managers need to interact with staff, customers and suppliers across international
borders, whether face to face or other communications, and consider the behavior of
competitors from around the world, they face a complex and dynamic set of factors which
together represent the force of globalization. Turnbull-James and Collins (2010) suggest that
global managers need different capabilities that enable them to look and think beyond their
local environment, although research has tended to show that many organizations promote
managers on technical and organization skills rather than their abilities to work globally. Kets de
Vries and Florent – Treacy (1999) suggested that 12 dimensions of global leadership including
envisioning, energizing, team-building, outside orientation, emotional intelligence and global
mindset. Action learning can also be used by global team leaders to bring together a culturally
diverse and dispersed team.

In those parts, we can use tri-dimensional leadership theory. Yukl’s tri-dimensional

theory suggests that there is no set course of action which will be successful in all the
circumstances. It is management and leadership who decide what action to take at a particular
time. It heavily relies on effectiveness and efficiency, human resource relations and innovation
& adaptation. This theory suggests that leaders should be able to analyze the situations and
they should be flexible enough to meld their strategies accordingly.

3.2

Globalization is rapidly redefining today’s business environment. Significant strategic

shifts are transforming the playing field. Vast opportunities for growth are emerging at the
same time that the pool of high-performing talent capable of seizing those opportunities is
shrinking. Those who can stay ahead of the rapid pace of change, anticipate talent needs, and
take the lead in developing innovative strategies for the future will likely be tomorrow’s

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winners. Future trends include exciting new technology, partnership and alliance, restructuring,
etc.

In this 21st century, new technologies are emerged day by day. Because of the new
technologies, we can easily communicate each other whenever and wherever we are.
Businesses are easily done because of them. When we do business by using technology, we can
use e-leadership style. E-leadership is no different from any other form of effective leadership.
Leadership needs to recognize that the borderless, nationless force of the internet creates
global customers in a truly globalized market place the interconnected world has created. More
than ever this requires having a 360% relationship with customer, leaders and team. Feedback
and exposure have become critical success factors in the e-age. Information itself is not the
critical component. It requires a high level of transformational leadership because of the highly
participative nature of the e-world between e-organizations and e-customers and the
interconnectedness between leader and follower with the ever-increasing reality of the blurred
lines between the two. In the e-world, the key to a successful outcome depends on the level of
transformational leadership that exists in the organization.

Building partnerships and alliances is more important not only in relationships within
departments of the organization; it has become more important for relationships across the
organization. Alliances have the potential to create value, but most are difficult to manage.
When this happens, the alliance is not delivering its full potential value. Partnerships and
alliances work best when all parties agree on and work together to implement a common
strategy to achieve business objectives. In this part, we should use integrity leadership style.
Trust is an inherit part of leadership. Team members have to trust that leadership is serving
everyone’s best interest and leadership has to trust that team members are fulfilling their
responsibilities. Integrity is a quality that encompasses truthfulness, credibility and sincerity. In
a leadership position, integrity manifests itself in the way a leader speaks to, guides and reacts
to group members. Learning to lead with integrity requires developing self-awareness, adhering
to a strict moral code and communicating truthfully with group members, regardless of the
complexity of the situation or the possibility of negative consequences.

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4.1

If a company is truly striving to be successful in all aspects, it should have a leader who
would lead and guide employees in a correct manner, which would in turn lead to its overall
productivity. A leader is primarily looked up to, when his subordinates perform in a way the
company wants them to. If the leader himself is not good, the performance of people working
under him also won't be as expected. Having identified the leadership skills required to become
a competent leader in taking up a role in management, it is important to carry out a proper plan
on developing the skills. It should be noted that, we already have some leadership skills used in
supporting our organization but it is important to improve the skills and develop new ones.

There are different methods of developing leaders through formal learning, self- help
and developmental activities e.g., training courses, job rotation, seminars, executive coaching,
mentoring, companies' own universities, developmental assessment centers, action learning,
self – directed learning, reading articles, partnership with key academics.

Formal learning is planned learning that derives from activities within a structured
learning setting. It means enrolling on a programmed of study, attending lectures, preparing
coursework, engaging in seminar/tutorial discussions. In a formal learning environment the
training or learning department sets the goals and objectives, while informal learning means
the learner sets the goals and objective (Cofer, 2000). From formal learning training, we will be
able to build common understanding across the organization, communicate and reinforce the
strategy, culture, and priorities to large segments of the organization, develop targeted
knowledge and required skills quickly. Leaders who possess the concepts, skills, and tools of
The Learning Mindset and apply Learning Practices that transform the training experience and
content into new learning and development gain more from formal training than those leaders
who are not equipped and focused on learning.

Action Learning is a dynamic process where a team meets regularly to help individual
members address real issues through a highly structured, facilitated team process of reflection
and action. Action learning is an experiential learning process that contributes to leadership
development primarily by providing an opportunity to: (a) practice generating questions that

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lead to insight, understanding, and innovation, (b) engage in self-reflection, self-monitoring,
and self-directed efforts to learn about one self and enhance contributions to the team and the
problem solving process. Action Learning participants hone their questioning skills and learn
how to generate questions that lead to deep insight, understanding, and innovation. Action
Learning develops the collaborative and shared leadership skills that are necessary for high-
performance teams and organizations.

To achieve lasting and substantial benefits, learning must be applied to real

organizational issues. Moreover, learning must take place in the collective, not just on the part
of individuals.

4.2

It is important for leaders to develop more skill to cope with future challenges,
globalization and demands. As discussed earlier about current and future leadership
requirements and leadership plan, it is very important that the method used for the
improvement of leadership skill should be more effective and useful so that the objective can
be achieved.

Useful methods used to plan development of leadership

1) Training - This method is very impressive and authentic in our organization. If the trainings
are given on the job then the employees can learn better and be the best part of the
organization.

2) Coaching - Coaching is different compare with training. Training is usually a one-way

relation. Managers can train our employees to do tasks, but employees may not realize or
accomplish their managers’ expectations. Coaching is a two-way relation. This process is
continuum until they achieve the expected results (Champathes, 2006). The coaching success
depends on partnership between organization and trainer (Stewart & Palmer, 2009).

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3) Feedback 360 - Performance appraisal or valuation aimed at development is a vital element
in HRM (Dierendonck et al., 2007). Individuals usually receive feedback from multiple internal
and external sources, such as supervisor, managers, subordinates, and sometimes customers.
This tool is used to evaluate the competencies and behaviors which relate to individual’s job
performance (Korotov, 2006).

4) Mentoring – It focuses on the individual, can enhance morale, motivation and productivity
and reduce staff turnover as individuals feel valued and connected with both small and large
organizational changes. This role may be provided by internal coaches or mentors and,
increasingly, by professional coaching agencies.

Conclusion

In order to sustain in the competitive environment every organizations should provide

learning to their employees, which could be in terms of different management/leadership
development programs and approaches therefore they should introduce productive sessions to
widen their root, emotionally, conceptually.

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leadership-skill-management-essay.php [17 September 2013]

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UKessays.com. Analysing the Development of Strategic Management and Leadership Skills.
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strategic-management-and-leadership-skills-business-essay.php [17 September 2013]

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