Critically analyse the concept of managers as effective leaders
Task 1
This task will evaluate or analyze the relationship between strategic management and leadership from the context of the organization.
1.1 Critically analyse the concept of managers as effective leaders
Leadership is a set process in which the managers of company influence other employees to support goals of a company. In other words, the leadership is the ability of company’s management in accomplishing goals by taking corrective decisions (Nanjundeswaraswamy and Swamy, 2014). The managers of the Wal-Mart company make use of some theories of leadership for managing the operations of the business. These theories support the managers to become the effective leaders.
The management of the Walmart includes different functions that are performed with the help of leadership for accomplishing the goals. The activities that Walmart managers perform include budgeting, planning, organizing, problem solving and staffing. The major function of the management is to bring consistency in the work that helps the company. On the other hand, the main function of leadership is to bring the adaptive change by permitting the direction through visioning, motivating and inspiring the people. This can be easily understood by the quote of Peter Drucker, 2018 that is: –
“Leadership is lifting a person’s vision to high sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.”
The managers make use of theories that help them to become effective leaders within Wal-Mart organization. The managers of a company make use of Transformational leadership style as this is core leadership style for the Walmart Company. The transformational leadership style of leadership shows a leaders works with teams to identify needed change, a vision to guide the change and executing the change. Sam Walton contributed in implementing this style of leadership in which is clear with the fact. The fact is that when Sam opened their first store in 1962 and he started to share the profits with their associates, treat their employees like partners, energize colleagues, and listen to your associates/partners (McAfee, 2014). This shows that the leader followed the transformational leadership style. In addition, the managers of company can be transformation leaders but for that they need to understand the needs of employees. Along with this, the manager role is more tactical than the role of leaders in the company.
This style shows that the managers of a company can lead the teamwork to determine the change vision to guide the change through inspiration. The implementation of leadership styles shows that managers of Walmart can work effectively being the leaders of the company. The major difference between the management and leadership can be highlighted with a quote from Peter Drucker, 2018 “Management is doing things right, leadership is doing the right things.”
Critically analyse the concept of leaders as effective managers
1.2 Critically analyse the concept of leaders as effective managers
Leaders
A leader is a person or thing which makes use of the dominant position within an organization over the employees for accomplishing the organization objectives. In the words of McGregor Burns, the leader is the one who meets the needs of people (Burns, 2012). Quote: – “The ultimate test of practical leadership is a realization of intended, real change that meets people’s enduring need.”
Leadership skills help the leaders to become the competent manager. There are many factors that affect the leaders to become the effective manager of the Wal-Mart company. Some of the factors are discussed below: –
Setting objective
Leaders of the company should always set the objective before proceeding with the work as this is the only way through which they can achieve the set goals. Moreover, the leaders of the company should encourage the employees for the work within the organization. Along with this, the proper guidance should be provided to the employee which is a work that is done by an effective leader for success.
Communication
The communication of the information within an organisation by leaders is not enough to become the effective manager but the leaders should communicate with employees for understanding their issues and problems which they are facing at their workplace (Goetsch and Davis, 2014). The decision taken by the leaders can lead to a problem for employees and impacts their working. At Wal-Mart, the leaders try to communicate effectively with employees so that they can make the work possible by resolving their problems.
Example: – The major issues which are faced by the employees of Wal-Mart include mixing work and personal communications, lack of factual communication, issues while completing the work, lack of understanding the message communicated and many others which the leaders were not able to understand. The Doug McMillon will become an effective manager when they actually manage the issues. Doug McMillion is president and CEO of Wal-Mart Incs. As a CEO of the company he leads to a string team that is contributing to deliver the mission of company that is to save money and live a better life (Forbes, 2018). Though, leaders who are not able to understand the issues are not effective managers. The managers understand employee’s point of view while making decisions. The leaders of the walmart company always complement on managers because the decision which are formed by the leaders are further communicated and managed by the managers. Though, the above two answers reflect that there is every thin line between the role of the managers and leaders of company.
Critically evaluate the balance needed between the demands of strategic management and leadership
Rewards and recognition
The leaders become an effective manager when they understand the work that is done by employees within the organisation. Along with this, when the leader will give the reward and recognition for the work that is done by employees within the organization then they will be able to become an effective manager. This is considered as one of the strategies that are followed by leaders. Though, the managers follow tactics in which they actually do the work. This is the major element which makes the difference between leadership and management.
For example – Leaders worry how they can manage the employee’s query and motivate them for the work effectively done by them in Wal-Mart. This is found that the Wal-Mart Company provide the employment to approx. 2.3 million associated across the world. Along with this, about 75% of store management teams in Wal-Mart work on hourly basis and earn approx. $50,000 and $170,000 on yearly basis (Walmart, 2018).
On the other side, the managers know about the skills and experience of employees according to which they assign activities and motivate the employees by giving them rewards.
1.3 Critically evaluate the balance needed between the demands of strategic management and leadership
Strategic management focuses on evaluating and monitoring the external factors that can lead to the opportunity and threat for Wal-Mart Company. The successful leaders make use of theories so that they can motivate their employees for strategic management. An effective leader always ensures they bring positivity to the culture of the company. This is clear from the fact that Wal-Mart culture is one of high performance and it shows what all values or services are offered to customers (Walmart, 2018).
Maintaining a balance between leadership and strategic management
It is essential for Wal-Mart Company to maintain a balance between leadership and strategic management. The company needs to consider few things that are essential for management of the balance as it is very essential in the competitive world. This balance is done with the contribution of leaders and managers as if they are not involved they won’t be able to conduct the operations effectively. Leader performs the role in which they set the vision and objectives and manager takes the responsibility to complete the objectives and vision. Managers believe that this balance is possible with the help of healthy relationship, by motivating the employees towards work and enhancing the productivity of work. The leader can form the positive relationship with employees by generating employee awareness, accountability, and inspire (Bolman and Deal, 2017). If the company is not able to maintain the balance between both then organizational principles and functioning of the employees will get damage. Though, this essential to understand that the role of leaders and manager is important within the organisation as both perform their duties effectively. The balance is possible when employees of the company agree for same. If in case the employees deny for same then the balance will not take place within the organization. There is need to make use of the skills for managing the balance between the both which are discussed below for the Wal-Mart company.
Needs |
Leadership skills |
Management skills |
Forming an agenda |
Forming the vision for the future strategies to bring the change. |
Planning and budgeting within the organization. |
Human resource management for accomplishing goals |
Communicating with the people with the use of the vertical and horizontal integration. |
Staffing the right person or employees for the company |
Executing the agenda |
Motivating for bringing the change. |
Controlling include the management of work |
Task 2
This section of the report includes evaluation of the leader’s contribution to Wal-Mart strategic direction.
2.1 Critically evaluate the role of the leader in the creation of an organisation’s vision, mission and values
Mission, vision, and values
The strategic directions are based on the mission, vision, and values of Wal-Mart Company.
- The vision of the company to be the best retailer in mind and hearts of their customers and employees.
- The mission of the company is to save the money for living a better life.
- The values of Wal-Mart are to offer effective services, respect the individual, act with integrity, and strive for excellence.
The leader of the Wal-Mart company ensures that they are clear about the set mission and vision of the company. Though, the leaders need to put in the efforts to bring the changes because it is not easy in a dynamic world (Northouse, 2014). Wal-Mart leaders take the actions so that they can achieve a vision of the company. Moreover, the leaders of the company ensure that employees are involved in strategic decisions. The involvement of employees in the decision of the company helps the leaders to make the effective decision which contributes to the success and achievement of vision. The mission which brought by the Sam Walton was to become the best retailer in the hearts and minds of the employees and customers. This mission brought change in the leadership due to which they adopted for the discounting strategy that he began to adopt in the Ben Franklin stores (Michael, 2016).
The contribution of leaders in the organization
The leaders of Wal-Mart Company decide the direction of companies on the basis of the fact, analysis, details, personal experience and other. The leaders within the country articulate the mission, vision, and strategies and allocate the resources that are essential for implementation. Moreover, the leaders inspire employees in achieving the organizational goals For example, Sam Walton whose goals was for great value and effective customer service. Sam experience becomes the key to the success of a company. Sam’s competitors thought his idea that successful company is possible by offering lower prices and great service (Ferguson, 2017).
The analysis reflects that there is hardly any difference between the old values and new ways of doing business because Sam experience was the only reason behind the success of a company. This is the fact that the company traces its success to the ideas of the founders considering the vision to be the best retailer in the heart and mind of customers and employees (Walmart, 2018).
Example 1 Wal-Mart leadership system
The leaders of the company believe that strategies of a company are long-term pillars of the company for success. The mission and vision of the company are included in strategic direction as this provides a way to leaders through which they can take further actions within the organization. The leaders of Wal-Mart Company communicate the vision of the company to stakeholders as this is a way through which they can attract them and generate their interest in a company (Sesia and Rossi, 2018). The leaders of the company make use of personal skills that contribute to success or to complete vision of a company. The vision of 2018 is to be the best retailer in the heart and minds of the customers and employees (Ferguson, 2017).
Example 2 Wal-Mart leadership system
(Source: The Leadership System, 2016)
The leaders of the Wal-Mart involve six interlocking systems that contribute to the effective working of the company. This system is used by the leaders because this is framework contribute to enhance the number of clients for the company (The Leadership System, 2016). Moreover, this system of the leadership gets interlock and reinforce components that are taken together to achieve the single-component solution.
2.2 Critically analyse how personal energy, self- belief and responsibility impact leadership styles and their relative success
The leadership styles that are followed by the leaders of a company get affected by personal energy, self- belief, and responsibility of the employees. Along with this, these all components can also affect relative success of a company. The employees who maintain a high level of moral standard and expectations can work effectively and lead to the productivity. According to Professor Seligman that business is based on 3 pillars that include positive experiences, individual traits and the positive institutions. This helps the leaders to take the positive steps towards the success (White, Vrodos and McNeil, 2015).
Organisational citizen behaviour
Organisation citizen behaviour refers to the state of employees of the company perform work beyond their prescribed job responsibility. The organizational citizen behaviour majorly affects the positive to styles of leaders that is followed by them within the Wal-Mart. The company leader values their employees and involves them in decision making so that they can show there personal energy and self- belief while taking the responsibility for the success of the company (Zhang and Bartol, 2010).
This shows that the employees of Wal-Mart are motivated towards the work and their responsibilities due to which they are able to put efforts to accomplish the goals of a company. This can affect the sense of transformation and transactional styles of leadership that is implemented by the company. There is a positive relationship between the transformational/transactional leadership and employees constructs which include job involvement, organizational commitment, job satisfaction and organizational citizen behaviour (Gill, et al 2010). The leaders of a company found that all these construct transformational leadership effectively and leads to the success of the company.
2.3 Address how leadership can engender empowerment and trust and how ethical stance affects that and the overall impact on organisational practice
Leadership can engender employee’s empowerment and trust
Wal-Mart leader takes the step in empowering employees by sharing the vision of the company with them which makes them inspire and empower them for a common goal. The leaders of company ensure that each and every employee is on the same page. The empowered employees have the confidence and knowledge while making the decisions for the company which is essential for accomplishing goals of the company. The manager ensures that they appraise the employees for their efforts by proving them rewards and promotion (Van van Wart and Dicke, 2016). According to Gloria Moss, inclusive leadership is a way to bring the culture to work. Wal-Mart leaders follow the same concept and make the workplace a healthy workplace (Yukl, 2013). The company involve the employees while making decisions and welcome their feedback which empowers employees. Moreover, this is the way through which they can bring improvement in workplace culture so that they can retain more employees.
Ethical stance affects that and the overall impact on organizational practice
Positive impact
- Every company performs the ethical practices to create reputation which helps in increasing number of additional customers.
- Wal-Mart believes in fulfilling the corporate social responsibility that is essential for generating the charity every year.
- The company will be able to enhance the effective relationship with customers and suppliers which are essential for business (Bulutlar and Öz, 2009).
Negative impact
- The lack of ethical activities of a company affects employees and also damages work culture of the company. For instance; the culture of the company good when there was the presence of Sam Walton but after the leadership of Sam Walton the work culture gets affected due to the ethical activities that were conducted (Walmart, 2018).
- The legal problems of the company affect the reputation which leads to turnover of the employees, reduce sales and much other financial harms. This was noted that the company faced the worker crises due to which they decided to increase the wages of employees so that they can attract more employees and retain the existing one (Peterson, 2015).
Task 3
3.1 Critically evaluate transformational leadership and the impact on organisational strategy
Transformational leadership is a style of leadership where leader works with a team to identify the required changes by forming the vision and to guide the change with the help of inspiration, excluding changes in the organisation. Though, the leaders in the transformational style might get depended on the employee’s response or get confused while making a decision. Wal-Mart Company makes use of this style of leadership to inspire the people that help a company to achieve the unexpected or remarkable results. The decision taken by the company for their employees which include sharing profit, knowledge, profit and they take the participation in the decision making which shows the leadership style.
In addition, Sam Walton, founder incorporated this style with the aim to achieve the success. In this leadership styles, the worker autonomy over particular jobs and they have authority to form the decisions (Walmart, 2018). The leader of the company guides a way for the workers towards the work and also motivates them for work. There are different duties that are performed by the leader within the organization which is discussed below: –
The transformational leadership includes the model in which different parameters are included such as Inspirational motivation, Intellectual stimulation, Idealized influence and individualized consideration (Antonakis and Day, 2017). Wal-Mart Company follows the style in which they visit the stores, analyse the impact of a project, decision-making capabilities of leaders and development of a pipeline of leadership. They are big on cross-organisational communications and breaking down silos. This was the purpose of the team meetings and store visits. The purpose was not so much to ‘empower’ managers. Moreover, the leadership style of Harold Lee Scott who is the CEO of the company is inherited from the corporate legacy (Research Matic, 2018). This is important for the big company like Wal-Mart but this is also a fact that it is very difficult for leaders of the company to learn the theory. Along with this, sometimes followers might be manipulated by the leaders (Shelton, 2012). Despite this, the company makes use of this style because they believe that this style can bring changes in their work.
Impact of transformational leadership on Wal-Mart organization strategy is positive. This leadership style motivates the employees and provides them guidance to achieve the common objective of the company. The leaders who follow this style provide the information responsibility, skills, and knowledge to the employees who are working for achieving goals. The transformational leadership helps a company to take tough decisions for growth and development. Moreover, the leader supports in a decision taken by the employees in a project. This shows that this style of leadership helps in achieving the organizational strategy effectively considering mission and vision.
3.2 Critically evaluate transactional leadership and the impact on organisational strategy
Transactional leadership is the style in which leader elevates the interest of the employees when the purpose of the company is communicated. This method includes the different reward schemes, the passive approach to work, clear leadership style and action-oriented approach. Though, this makes the structure of company rigid, tendency to be more reactive towards the changes and slow for responding (Cooper, 2015).
The transactional leadership is followed by the Wal-Mart company for executing the strategy and for running the daily business operations at the stores of the company. The company follow this style of leadership because this helps to motivate among the employees and develop a spirit of cooperation that listens to all viewpoints. In addition, this style will help to initiate the implement the changes in strategy according to changing environment of company (Arnold, 2014).
This style helps the company in promoting the high performing individuals, strong relationship with the suppliers of the company and proper balance of the freedom and standards of business. In enhancing the performance of stores the company allow the employees to make their own decisions. Though, due to the autonomy, decisions taken by a company might affect the business (Watson, 2013). Excess power and autonomy to the employees sometimes lead to the negative impact. The leaders in transactional leaders encourage the subordinated readiness to ac at predicted levels by providing the rewards for acceptable performance. This will lead to the job satisfaction which results in accomplishing of organizational objectives.
3.3 Critically evaluate situational leadership and the impact on organisational strategy
Situational leadership
It is a style which was developed by Kenneth Blanchard and Paul hearsay. This leadership refers to the when a leader or manager of company adjust with his style to get fit the development level of the employees to whom the leader is willing to influence (Kennedy, 2012). There are 4 major components which are included and are discussed below: –
- Directing: – The leader of Wal-Mart Company provide the directions to their employees for the particular project or operations.
- Selling and Coaching: – The decisions are taken by the leader and employees will ask before taking the steps towards the implementation of decisions.
- Participating and supporting: – This style of leadership possesses more of the responsibility to the employees. Though, the leaders of the company get involved in decisions.
- Delegating: – This is the stage when the leader delegate the work and responsibility to the employees so that they can make the effective decision for the same.
All these components lead to the development within the organization. Though, this style of leadership diverts the employees from their long-term goals for the achievement of the small goals.
Strength and weakness of situational leadership
This leadership style is one of the easy leadership styles in which they need to evaluate the situation and then apply the right style. Moreover, in this style, they have the power to change the management styles. Though, this leadership style can divert the attention from the long-term strategies and politics. Along with this, it ignores the difference between the female and male managers of a company (Kennedy, 2012).
The situational leadership of Wal-Mart has a direct effect on the development of employees. The development of the employees takes place considering the stage of development. Though, this is also the fact that this development of employees is based on their own skills that are supporting their duties towards the work (Kennedy, 2012). Walmart leaders believe that this leadership style motivates the employees towards the work and for making the right decision. Along with this, development stages helps in enhancing the motivation which ultimately leads to the productivity of a company.
Conclusion:
In the end, it can be concluded that leadership styles play a vital role within the organization. The implementation of the correct leadership style leads to the success of Wal-Mart Company. The report includes the different leadership styles and underlying principles and concepts that are related to the leadership. Moreover, it includes the description related to each and every aspect of the leadership of company which leads to the success. Though, in some situations of the company, the leaders might affect the working of the company in a negative manner.
The aim of the report is to explore the link between the leadership and management of the company at the strategic level. This report is based on the current case scenario in which a person is undergoing leadership training within the organization with the hopes of ascending to a mid-level managerial role within the company. The report includes the leadership and its different styles that can affect the strategy of the selected organization. This is described with the support of different theoretical models and frameworks related to the leadership and strategic management. The organization that has been selected for this assignment is Walmart Company.
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