Strategic management covers enterprise wide strategy formulation, implementation and evaluation. It emphasizes sustained wellbeing of organizations. Why? According to Thomas and Strickland (1996) strategic management a) Provides guidance to the entire organization on the crucial point of what it is we are trying to do and achieve b) Make managers more alert to the winds of change, new opportunities and threatening developments c) Providing managers with a rationale for evaluating competing budget requests for investment capital and new staff – a rationale that argues strongly for steering resources into Strategy –supportive, results producing areas
d) Helping to unify the numerous strategy-related decisions by managers across the organization and; e) Creating a more proactive managerial posture and counteracting tendencies for decisions to be reactive and defensive In the face of uncertainty, chaotic and unforgiving business environment, the above outlined issues will only be realized by companies with sound leadership. Leadership
Leadership is the process of influencing an organization (or group within an organization) in its efforts towards achieving an aim or goal (Johnson.et al, 2011). Leadership may also be defined as the ability to anticipate, envision, maintain flexibility and empower others to create change as necessary. Its multifunctional in nature, it involves managing through others (Gono, 2007) Without effective leadership, the risk is that people in an organization are unclear about its purpose or lack motivation to deliver. When a company is left with a void of leadership for whatever reason, the ripple effects are widely felt both within and outside the organization. Internally a company is likely to suffer crises of morale, confidence and productivity among employees. Similarly stakeholders may panic when a company is left rudderless and worry about the safety and future of their investment. The crux of the leader is the ability to manage the firm’s operations effectively and sustain high performance over time . 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 starts the work by communicating the policies and plans to the subordinates from where the work actually starts. 2. Motivation- A leader proves to be playing an incentive role in the concern’s working. He motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates. 3. Providing guidance- A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently. 4. Creating confidence- Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve the goals effectively. It is also important to hear the employees with regards to their complaints and problems. 5. Building morale- Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning their trust. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals.
6. Builds work environment- Management is getting things done 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 listen to their problems and solve them. He should treat employees on humanitarian terms. 7. Co-ordination- Co-ordination can be achieved through reconciling personal interests with organizational goals. This...