CHAPTER 9

STRATEGIC LEADERSHIP FOR EFFECTIVE ORGANIZATION

Staffing the Corporate Team

The staffing of corporate team members is a very critical organization decision as it has
important implications to the firm’s performance. It could be noted that wrong selection of top
executives causes some downfall not only of the local business organizations, but worldwide
experience dictates that many giant multinationals fall below performance because of the choice
of its corporate officers. Many firms in the industry use a leadership screening system to identify
individuals with managerial and strategic leadership potential. The most effective of this system
assess people within the firm and gain information about the capabilities of other top managers
on their leadership capabilities. Managerial intervention for corporate governance is an attempt
to select and shape leaders for effective performance in the corporate world of business.

1. Internal Sourcing Strategies

The internal sourcing strategy is the assessment of people within the organization who
are ready for corporate governance. This pooling of human resources for top level
positions and hiring from inside the firm keeps the important knowledge necessary to
sustain corporate performance in product knowledge, marketing, and distribution and
other technical expertise. Several benefits could be gained by the firm when hiring from
within the pooling of its human resources.

Advantages of Hiring from the Internal Source:

a. Knowledge about the firm’s operations that brought them to competitive
advantage
b. Familiarity with company products and operation
c. Knowledge of system and operating procedure
d. Development of high morale and commitment
e. Lower turnover rate of valuable managers
f. Higher sustained performance and lower training cost

In the implementation of this corporate hiring from within the organization corporate
strategies of training and development must be provided to managerial positions to keep
them ready to assume higher positions in the organizations as it calls for vertical and
horizontal expansion. It reflects the desire for continuity in its commitment to firms
current strategies, strategic missions and carefully chosen strategies for action. The
usual success of the firm depends on trusted people who dedicatedly perform their job
with unusual performance and excellence as they love work and are happy about their
accomplishments.

2. External Sourcing Strategies

It is the process of collecting career positions from outside the organization other than
the one for which they work currently. The selection of top management positions could
be critical for the firm especially if the top executives would come from outside the

This study source was downloaded by 100000875330630 from CourseHero.com on 11-06-2023 00:52:27 GMT -06:00

https://www.coursehero.com/file/122050842/Chapter-9-Part-9docx/
 organization. It could be inevitable sometimes that executives who have been in the
position too long become stale in the position that they become too comfortable and
refuse to innovate and change strategies in spite of the changing world of business.
Long tenure with the firm seems to reduce the number of innovative ideas of top
executives and become unable to develop new strategies.

Given the importance of innovation and the development of new strategies in the new
landscape of the world’s business and inability to innovate or create conditions that
stimulate creativity for change throughout the firm is a liability for strategic leaderships.
Outside succession is an extraordinary event for a business firm and could usually be
seen as a stark indicator that the board of directors wants changes in its direction and
strategies.

Advantages of External Sourcing Strategy:

a. Bringing in new blood to the organization
b. Experience in other firm develop new strategies
c. Changes in current strategies when top teams in homogeneous in character
d. Innovation and new technology updates
e. Development of new system and procedure

Effective Strategic Leadership

The making of effective leadership for corporate governance involves the long-term vision of the
firm’s strategic intent. This intent is looking to the future miles ahead with vision that is
consistent to its corporate image and character. The ideal vision is divided into the firm’s core
ideology motivates employees to perform their task effectively, the envisioned future encourages
employees to stretch beyond their expectation of accomplishments and requires significant
changes and progress in order to be realized.

This core corporate ideology is reflected in the desire of most future employees to be employed
in such big corporations as San Miguel, Philippine Airlines, PLDT, the banking institutions such
as BPI, and many other corporate organization in the local setting that has the corporate
ideology of taking care of their employees in terms of benefits, salaries beyond the minimum
wages and other perks that motivates them to do their jobs beyond the ordinary. The envisioned
future of these corporations in secured employment and retirement plans serves as guide to
many aspects of the firms’ strategy implementation process, including motivated employees at
work, employee’s empowerment, leadership strategies and the stratified organizational design.

This study source was downloaded by 100000875330630 from CourseHero.com on 11-06-2023 00:52:27 GMT -06:00

https://www.coursehero.com/file/122050842/Chapter-9-Part-9docx/
Powered by TCPDF (www.tcpdf.org)