CHAPTER 9

STRATEGIC LEADERSHIP FOR EFFECTIVE ORGANIZATION

Factors to consider in Development of Management Teams

1. The more heterogeneous the management team the more difficult it is to manage.
2. Differences in opinions due to different background and experience
3. Diverse background may inhibit the process of decision making if not properly managed
4. Suboptimal decision may emerge when threats and opportunities are not properly
examined
5. Difficulty in bridigning of opinions due display of intellectual supremacy especially when
one asserts his position in the organization
6. It requires a high level of managerial leadership in the process of consultative
capabilities and democratic steering opinions.

Members in a high technology environment are important as they are core in the development
of new and innovative products. Experience and expertise in the firms’ core business added
value to the effectiveness of top management teams. When growth strategies are being
implemented, the firm must have in the team, one with technical background and expertise for
research and development. Managers with analytical background and experience in research
could be used extensively and comprehensively in examining threats and opportunities in the
environment.

The characteristics of high performing teams are related to innovation and strategic systems. As
the team becomes more heterogeneous in nature, the team becomes positively associated with
innovation and strategic change. The team may be forced to “think out of the box” and thus be
more creative in making decisions. Thinking out of the box is the process of projecting miles
ahead of the ordinary situations and having foresights of the future events in the environment.

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