Chapter 13 QuestionA management consultant said that strategic leaders are concerned with vision and mission, while strategic managers are concerned with strategy. Do you agree? Discuss. Chapter 14 Qu
Chapter 13 Question
A management consultant said that strategic leaders are concerned with vision and mission, while strategic managers are concerned with strategy. Do you agree? Discuss.
Chapter 13 source
THE LEADER AS STRATEGIST-IN-CHIEF Strong missions that reflect a noble purpose and guiding visions are both important, but they are not enough alone to make strong, powerful organizations. For organizations to succeed, leaders have to translate vision, values, and purpose into action, which is the role of leader as strategist-in-chief. Strategic management refers to the set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment so as to achieve organizational goals.65 When leaders link vision and strategic action, they can make a real difference for their organization’s future. Research has shown that strategic thinking and planning for the future can positively affect a company’s performance and financial success.66 One study found that as much as 44 percent of the variance in profitability of major firms can be attributed to strategic leadership.67 How to Achieve the Vision To formulate a strategy, leaders ask questions such as “Where is the organization now? Where does the organization want to be? What changes and trends are occurring in the competitive environment? What courses of action can help us achieve our vision?” Strategy can be defined as the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals and achieve the vision. Leaders have to be clear on the organization’s purpose and vision before they can adopt an effective strategy. Strategy involves making decisions every day based on what the organization wants to do and be.68 Developing Effective Strategy To develop strategy, leaders actively listen to people both inside and outside the organization, as well as examine trends and discontinuities in the environment that can be used to gain an edge. Rather than reacting to environmental changes, strategic leaders study the events that have already taken place and act based on their anticipation of what the future might be like.69 When leaders rely solely on formal strategic planning, competitor analysis, or market research, they miss new opportunities. Consider that when Ted Turner first talked THE LEADER AS STRATEGIST-IN-CHIEF Strong missions that reflect a noble purpose and guiding visions are both important, but they are not enough alone to make strong, powerful organizations. For organizations to succeed, leaders have to translate vision, values, and purpose into action, which is the role of leader as strategist-in-chief. Strategic management refers to the set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment so as to achieve organizational goals.65 When leaders link vision and strategic action, they can make a real difference for their organization’s future. Research has shown that strategic thinking and planning for the future can positively affect a company’s performance and financial success.66 One study found that as much as 44 percent of the variance in profitability of major firms can be attributed to strategic leadership.67 How to Achieve the Vision To formulate a strategy, leaders ask questions such as “Where is the organization now? Where does the organization want to be? What changes and trends are occurring in the competitive environment? What courses of action can help us achieve our vision?” Strategy can be defined as the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals and achieve the vision. Leaders have to be clear on the organization’s purpose and vision before they can adopt an effective strategy. Strategy involves making decisions every day based on what the organization wants to do and be.68 Developing Effective Strategy To develop strategy, leaders actively listen to people both inside and outside the organization, as well as examine trends and discontinuities in the environment that can be used to gain an edge. Rather than reacting to environmental changes, strategic leaders study the events that have already taken place and act based on their anticipation of what the future might be like.69 When leaders rely solely on formal strategic planning, competitor analysis, or market research, they miss new opportunities. Consider that when Ted Turner first talked
Daft, Richard L.. The Leadership Experience (p. 411). Cengage Learning. Kindle Edition.
Chapter 14 Question
Compare and contrast the achievement culture with the clan culture. What are some possible disadvantages of having a strong clan culture? Please answer the same in terms of an achievement culture.
Source
Achievement Culture
The achievement culture is characterized by a clear vision of the organization’s goals, and leaders focus on the achievement of specific targets such as sales growth, profitability, or market share. An organization concerned with serving specific customers in the external environment but without the need for flexibility and rapid change is suited to the achievement culture. This is a results-oriented culture that
Daft, Richard L.. The Leadership Experience (p. 444). Cengage Learning. Kindle Edition.
values competitiveness, aggressiveness, personal initiative, and the willingness to work long and hard to achieve results. An emphasis on winning is the glue that holds the organization together.63 Anheuser-Busch InBev reflects an achievement culture. Professionalism, ambition, competitiveness, and aggressiveness are key values. Managers keep employees focused on achieving high sales and profit levels, and those who meet the demanding goals are handsomely rewarded. Bonuses and promotions are based on performance, not seniority, and top executives are unapologetic about giving special treatment to high achievers. Distribution center managers frequently start the day with a sort of pep rally reviewing the day’s sales targets and motivating people to get out and sell more beer.64
Daft, Richard L.. The Leadership Experience (p. 445). Cengage Learning. Kindle Edition
Involvement Culture
The involvement culture has an internal focus on the involvement and participation of employees to meet changing expectations from the external environment. More than any other, this culture places value on meeting the needs of organization members. Companies with involvement cultures are generally friendly places to work, and employees may seem almost like a family. Leaders emphasize cooperation, consideration of both employees and customers, and avoiding status differences. Leaders put a premium on fairness and reaching agreement with others. Consider the approach to culture taken by William Rogers, CEO of UKRD, which owns a number of commercial radio stations in the United Kingdom: “If your people are the key to great performance, then facilitating their enjoyment, engagement, and commitment are fundamental to ultimate success…. Our values are intended to change people’s lives for the better.” When UKRD leaders visit one of the 17 stations around the country for a meeting, they build in plenty of time to talk to people and say goodbyes around the station. Every year, all of the company’s teams take a day out to talk together about the values, behaviors, and working environment they want. UKRD has a “cast-iron commitment” to a people first culture, and any manager who doesn’t live up to that is asked to leave.65
Consistency Culture
The consistency culture has an internal focus and a dependability orientation for a stable environment. The culture supports a methodical, rational, orderly way of doing business. Following the rules and being thrifty are valued. The organization succeeds by being highly integrated and efficient. Safeco Insurance has functioned well with a consistency culture.
consistency culture. Employees take their coffee breaks at an assigned time, and a dress code specifies white shirts and suits for men and no beards. However, employees like this culture—reliability is highly valued and extra work isn’t required. The consistency culture works for the insurance company, and Safeco succeeds because it can be trusted to deliver on insurance policies as agreed.66 In today’s fast-changing world, very few organizations operate in a stable environment, and most leaders are shifting away from this type of culture because of a need for greater flexibility. However, even some software companies, such as SAS Institute and Pacific Edge Software (now part of Serena Software), have used some elements of the consistency culture to keep projects on time and on budget and to ensure saner lives for employees. Emphasis on order and discipline means the formal workweek at SAS can be 35 hours, for instance.67 NEW LEADER ACTION MEMO As a leader, you can align the organization’s culture to its strategy and the needs of the external environment. You can choose to implement the appropriate culture (adaptability, achievement, involvement, or consistency) depending on environmental requirements and the organization’s strategic focus. CHAPTER 14 SHAPING CULTURE AND VALUES 445 Involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment Consistency culture culture with an internal focus and consistency orientation for a stable environment Copyright 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed
Daft, Richard L.. The Leadership Experience (p. 445). Cengage Learning. Kindle Edition.
Workplace ethics discussion
How should an organization present its CSR activities so that the information doesn’t appear like greenwashing?
