The purpose of this essay is to explain and define through the literature. After providing the basic definitions of those theory, it will also explain that how strategic leadership help practical day-to-day organizational reality to complete the work activities more efficient and effective and its meaning in terms of contemporary organization, such as Sustaining Organizational culture, infusing ethical value system, Creating vision of the future, Making strategic decisions and Building sustainable competitive advantage.
Strategic leadership theory has evolved from the original upper echelons theory developed by Hambrick and Mason (1984) to a study of not only the instrumental ways in which the dominant coalition impacts organizational outcomes but also the symbolism and social construction of top executives (Boal, 2001). Through development of theory, a lot of different people have several of definitions with strategic leadership across the literature. Monroe (1997) states strategic leadership theory holds that companies are reflections of their top managers, and, in particular, of the chief executive officers, and that "the specific knowledge, experience, values, and preferences of top managers are reflected not only in their decisions, but in their assessments of decision situations (Ireland & Hitt, 2005) . Michael Hitt and Duane Ireland (1999) also defined strategic leadership as "a person’s ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization." (Schermerhorn & Dienhart, 2004, p57) Similarly, Hunt (1991) claims that strategic theories of leadership are concerned with leadership “of” organizations (Boal, 2001). In an organizational community, strategic leadership is distributed and it focuses on the people who have overall responsibility for the organization to create a viable future for their firm.
The theory of strategic leadership can help organizational success, as Hickman (1988) states that Activities often associated with strategic leadership include making strategic decisions; creating and communicating a vision of the future; developing key competencies and capabilities; developing organizational structures, processes, and controls; managing multiple constituencies; selecting and developing the next generation of leaders; sustaining an effective organizational culture; and infusing ethical value system into an organization’s culture (Boal, 2001). It is important a part of complete the work activities. Besides, the strategic leadership will affect the behaviors of many stakeholders, especially those of organizational citizens, working often as a coach. An effective strategic leader "finds glory in the whole team reaching the summit together." (Ireland & Hitt, 2005). For example, leadership in the new public organization faces strategic choices when organizing for public service delivery such as in-house versus outhouse production, long-term against short-term contracting and hierarchy versus flatness of the internal organization – all issues that may be resolved by strategic leadership (Lane &Wallis, 2009) .#p#分页标题#e#
In additional, organization needs not always use strategic leadership in reality, due to different environment of marketing affect organization’s structure and environmental conditions in which this theory was used have changed dramatically. As Hambrick (1989) argues that strategic leadership occurs in an environment embedded in ambiguity, complexity, and informational overload. Since it is argued that the environment that surrounds organizations is becoming increasingly hyper-turbulent (Boal, 2001). What is more, environmental change always occurs and it was often treated as linear in many industries; major competitors were largely domestic, not global companies; organizations were structured in hierarchical configurations that were supported by selection and promotion practices. Moreover, some people believe that having strategic leadership centered on a single person or a few people at the top of a hierarchical pyramid is increasingly counterproductive, when strategic leadership was at some environmental conditions (Schermerhorn & Dienhart, 2004). Thus, appropriate for its time, the theory of strategic leadership contributed to organizational success, however, some times it can not help organization.
Now that environmental conditions decide to use strategic leadership, the question of whether strategic leadership mattered was hotly debated. Hambrick (1989) cogently remarked on whether strategic leaders matter, “some do, some do not, and a lot more could”. Thus, Hunt (1991) says that the real question is not whether strategic leadership matters, but rather under what conditions, when, how, and on what criteria (Boal, 2001, p.518).
Sustaining Organizational cultureIn the organizational context, a firm’s culture determines “how people do things here” and imposes great challenges on dissenters and organizational culture is known for nurturing self-sustaining forces that tend to preserve past successful behaviors and sources of power, not recognizing the need to adapt to changes in the environment or strategy (Small, 2006, p. 588-600). According to Robbins, Bergman, Stagg & Coulter (2006, p.95-96) state that definition of organization culture implies three things. First, culture is a perception. Individuals perceive the culture of the organization on the basis of what they see, hear or experience within the organization. Second, even though individuals may have different backgrounds or work at different levels in the organization, they tend to describe the organization’s culture in similar terms. That is the shared aspect of culture. Finally, organizational culture is a descriptive term. It is concerned with how members perceive the organization, not with whether they like it. It describes rather than evaluates (Robbins, Bergman, Stagg & Coulter 2006). Thus, the influence of culture is pervasive and far exceeds the differences that occur between individuals within any given culture.
Strategic leadership will sustain an effective organizational culture to develop organization. For example, organizational learning culture is one of organizational culture. Organizational learning culture has been proposed as a fundamental strategic process and the only sustainable competitive advantage of the future. However, the creation of a learning culture depends on the strategic leadership as discussed by Hurley & Hult (1998) and McGill & Slocum (1993) and supported by Vera (2004). Schein (1992) claims that strategic leader can balance transactional and transformational behaviors, authoritarian and participative systems, and task and relationship orientations. Strategic leaders who choose transactional behaviors will work within the current culture and follow existing norms, rules, and procedures. In this sense, transactional cultures reinforce institutionalized learning and can be described as closed and rule bound (Nahavandi, 2009).#p#分页标题#e#战略领导essay范文
The social energy that drives Southwest Airlines is largely a product of CEO Herb Kelleher and the managers who surround him. The firm’s culture is responsible for the company’s steady growth, above-average profitability, and the avoidance of employee layoffs for more than 25 years. Actions that exemplify Southwest’s culture include: "Pilots hold barbecues to thank mechanics; flight attendants sing safety instructions on board; agents hang mirrors on their computers to make sure they’re smiling when taking reservations; Kelleher is generous with hugs and kisses." Employees are committed to treating coworkers and customers with respect and dignity, having fun, and working hard. An indication of the culture’s desirability is that 137,000 people applied in 1996 for only 5,000 Southwest Airlines’ job openings. ”(Ireland & Hitt, 2005). As this example suggests, when strategic leadership set an effective organizational culture into organization, the culture could result in a competitive advantage for the organization.
The remainder of this essay assignment will not be read, nor will this assignment be assessed, since there is evidence that much of this essay is derived from the work of others, and is not your own. It is also notable that the references used in this assignment bear no relation to the available reference sources in the unit, which also raises questions about the integrity of this work.
Therefore, in order to have a chance to pass this unit, you are required to correct this situation by firstly finding out what the meaning of plagiarism is, and secondly learning how to cite reference materials correctly in essay assignments so that suspicions of plagiarism do not arise, as they do here. You have a period of two weeks from 28/04/11 to correct and resubmit this work (resubmission must be made by close of business on 13/05/11 at the latest). This event will also be reported to the Faculty Discipline Committee for their records.
Dr. N. Allix – 27/04/11.
In addition, strategic leadership that changes organizational culture will affect employees’ behaviors. The example is about Andersen Company; Andersen was founded in 1918 by accountant Arthur E. Andersen. The company grew rapidly during the 1920s. The strategic leadership of Arthur Andersen was about a fundamental change in the company’s culture, in order to increase revenue of company, resulted in Andersen employees shredding Enron-related documents (Robbins, Bergman, Stagg & Coulter 2006). If the employee behavior is been ignore, the business will loss some profits.
Infusing ethical value system The ethical value and behavior is a core of business. As Robbins et al. (2006, p.174) states that “the term of ethics is commonly describe in the rules and principles involved in similar activities or businesses as the standards of right and wrong or good and bad conducts, behavior and judgment the actions in dealing with others.” Business’ Ethic mentions on people that how humans achieve to the ethical requirements of the business lives with guiding their behavior (Vera, 2004). As Ireland & Hitt (2005) state that in the 21 century, effective strategic leaders will use honesty, trust, and integrity as the foundations for their decisions. Strategic leaders displaying these qualities are capable of inspiring their employees and developing an organizational culture in which ethical practices are the behavioral norm (Ireland & Hitt, 2005).#p#分页标题#e#essay范文
In the long-run term, the businesses will be successful only when meet their social responsibility as well as ethics that allow them to pursue both the economic and social goals. The benefits for the businesses such as the profit are very obvious when the organizations undertake social responsibility and obey management ethics as well as some hidden affair like the firms’ public image. Also some social problems may be fixed in the long run while the organization involve in the socially responsible and ethical actions. (Robbins et al., 2006, p.161). As the statement points, the organization will be eliminated through the stirred competition or selection within the industry when it manages in an unethical and social irresponsible way. Although the business can obtain a large profit in the short term, with ignore the social environment and ethic for a long time, the successful and profitable enterprise may become the bankrupt in the long term.
Strategic leadership is top manager. According to Norburn (1989) say that roles and behaviors of effective top managers differ considerably from those of middle manager (Vera, 2004). And strategic leadership’s roles are improving ethical value in terms of organization reality. Like profits, shareholder value, return on investment, or any other desired performance outcome, ethical behavior in business is something to be created. Executives need accept their leadership responsibilities to define ethical behavior clearly into a firm’s value system and to pursue it relentlessly as a top-priority goal (Schermerhorn & Dienhart, 2004). Besides, a lot of people believe that for business executives the strategic leadership responsibility for "initiating changes" has to include sustaining ethical climates within which employees act ethically as a matter of routine (Nahavandi, 2009).
Because responsibility and roles of strategic leadership is set ethical value, if the business ignores strategic leadership, it will also be lack of ethical value management, resulting in a reduction in the long term profit. The company of James Hardie is one of these examples. It is a company provides some building material as an increasement in homes and buildings’ value and character. The business has infringe the principle of the complementary standards as a health checkup report indicating that the asbestos have influenced all of their staff’s health as diseases. Because the company ignores strategic leadership that nobody can think about setting ethical value system, which may result in this situation, is happened undertake the mangers’ realize of asbestos that it will harm the human’s health in long term, they continue using the asbestos while mangers obtain the news and keep it. They have not noticed this news until numbers of employees got the same disease while some of them died and others become unhealthy any more. To this company, they treated the employees just as a kind of tools which can help to gain the purpose and it lacks strategy and ethic. To solve this problem, in August 2004, a parliament was held. All products of James Hardie have been federal resisted as the Greens’ call which is supported by Senate’s as well as the state and local governments in NSW by the Greens MPs and Greens councilors (Hills, 2005, pp.1-3). As a result, this example clearly illustrates that if organization made little of their strategic leadership, it will ignore ethical value system, it also will fail in the long term. .#p#分页标题#e#指导essay范文
If the high social performance and ethical valve system is not been ignore, the business will win some customers. The Body Shop International is one of typical example companies with a high social performance. This company is a natural soap and lotions in Brighton that has successful to create a public image with a care about the nature environment and human health. It has nearly thousands of loyalty customers. The reason of its success is because the corporate run with several complementary behaviors. For example in order to support the prevention of child abuse, women’s issues, art museum and the charity, the organization sold 3.5 million shares and donated 3 per cent of net profits in 1994 while involve some activities such as initiated a against violence campaign and a program for benefit the employees to protect the society welfares in follow year. (Edelson, 1995) As a cosmetic company, the well know thing is they develop new product without experiment on the animals which as a positive model to other companies. Since 31 December 1990, the business set a strict purchasing rule to ensure customers can reliable to buy all the products and believe there are no any ingredient. The Body Shop has a survey that indicates the main reason why 82.7% of their customers start shopping there because of the shop’s commitment to community and environment. Thus for the long term success, the business need to base on the understanding of social responsibility and organizational ethical valve.
Creating vision of the future Visions that facilitate development of this type of focus make sense to all organizational citizens, stretch citizens’ imaginations but are still within the bounds of possibility, are understood easily, and create cultural glue that allows units to share knowledge sets (Ireland & Hitt, 2005) and Boal (2001) states that Visions should be future oriented enough to reveal opportunities with potentially important consequences. Desirable visions should draw upon the organization’s values and culture, and connect the possibilities to these values. Actionable visions are doable. Actionable visions point to activities that people can undertake to move toward a desirable future (Boal, 2001). In additional, according to Albert & Whetten (1993) state that all organizations possess an identity that describes what is central, distinctive and enduring about the organization. It is in the vision of the leader and the articulation for change that the past, present and future come together (Boal, 2001). Thus, vision links to the past, present and future of organization.
Critical to efforts to achieve the firm’s vision is the active involvement of organizational citizens. According to Rockwell (1995) claims that at locations throughout the world, employees are to be challenged to take determined actions that will help the firm achieve its purpose. To select appropriate actions, employees’ citizens are formed into great groups that are asked to identify strengths and weaknesses. Each unit is to develop recommendations that when accomplished will allow it to become the best in the world at completing a particular task or set of activities. This pattern—wherein organizational citizens work as members of a community that is seeking to serve the common good—will be linked with effective strategic leadership practices in the 21 century (Bennis, 1997).#p#分页标题#e#
Creating visions is one of the strategic leadership responsibilities. As Bennis (1997) says that substantial numbers of CEOs have adopted the notion that strategic leadership responsibilities are theirs alone. One of their primary tasks is to choose a vision for the firm and create the conditions to achieve vision. Thus, as a result of the significant choice options available to the CEO as the firm’s key strategic leader, this individual often worked as a Lone Ranger when shaping the firm. Isolated from those being led, the firm’s key strategic leader commanded his/her organization primarily through use of top-down directives (Bennis, 1997). Particularly when these choices resulted in financial success for the company, the key strategic leader was recognized widely as the "corporate Hercules." (Ireland & Hitt, 2005).
The blurring of organization boundaries lead to competitors with creates challenges for firms’ strategic leadership processes. For example, the announced entrance in early 1998 of the Korean giant, Samsung Group, into the world’s automobile manufacturing industry demonstrates this challenge. Although as of mid-1997 Samsung had never built and delivered to a customer a passenger car, it was in the midst of a $13 billion investment to manufacture 1.5 million cars annually. The vision driving these commitments and actions was for Samsung to rank among the world’s top ten automakers by 2010. A demonstration of this vision is the billboard outside Samsung’s new automobile manufacturing facility in Pusan: "Our dream and Korea’s future." Samsung Group’s ambitious auto manufacturing goal surprised at least some industry analysts who noted that the global auto industry was awash in excess production capacity—a problem not expected to abate in the foreseeable future. One noted industry observer said "the world is not waiting breathlessly for a Samsung car … There’s no logical opening in the marketplace where Samsung can step in and fill a vacuum. Its sales will have to come out of someone else’s hide."(Kraar, 1997, p.119-120). The example explains that company’s strategic leadership is challenged to analyze carefully Samsung Group’s ability to achieve its vision in the world’s auto marketplace. To respond successfully to this challenge, both the top managers (strategic leaders) and organizational citizens (through their work in great groups) in companies competing against Samsung Group’s auto unit should use significant amounts of external information to select appropriate competitive responses (Ireland & Hitt, 2005). Thus, firms’ strategic leadership processes decide their vision and competitive power.
Making strategic decisionsThe company’s strategy has been to enter emerging markets early- before competitors- and build a substantial position by selling basic food items that appeal to the local population base. Hill (2005) states that there are four strategies that an international business can use: global standardization strategy, transnational strategy, international strategy, and localization strategy (Hills, 2005).#p#分页标题#e#
Strategic directives were from strategic leadership. John Browne, CEO of British Petroleum Company, believes that the top manager (strategic leadership) must stimulate the organization rather than control it. The top manager provides strategic directives, encourages learning that results in the formation of intellectual capital, and verifies that mechanisms exist to transfer intellectual capital across all of the firm’s parts (Ireland & Hitt, 2005).
For the IBM’s strategic leadership choose use innovation as a strategy. Innovations are new ideas, a product of human ingenuity, and for the technical , Innovations occur when a new technical possibility is recognized and worked out, sometimes mentally (e.g. differential calculus), and at other times physically (e.g. the internal combustion engine) (Hills, 2005). Today’s competitive market of computer sales has changed the way PC owners buy their technology. Thinking has changed and though it was once a good idea to buy cheap and upgrade later, now experts in the market are advising users to buy the technology needed or wanted with the initial computer purchase. Laptop computer parts may not be as accessible as they once were, as the technology is changing rapidly, causing most parts – that just a few years old – to become obsolete. And, technology is becoming cheaper as the markets increasing and the competition growing. Buyers may be surprised by all of the bells and whistles that are now available with new and affordable machines. At one time, the laptop was considered as the most expensive of computers, but today, technical experts explain that a new model can be purchased for not much more costs than what is involved with repairing an old model. Buying laptop computer parts and paying for service can add up quickly (Kotler, 2007).
Other examples are about Nestle Company, When Nestle entered the China market, and Nestlé’s strategy was local adaptation and long term focus. Nestle first opened a plant to produce powdered milk and infant formula in 1990, but due to the inadequate infrastructure and inhibited collection of milk and delivery of finished products, nestle decided to use the Greenfield venture strategy. By owning its own distribution network, Nestle aims to generate 700$ million by 2000. This strategy is really risky, because the outcome is expected in the far future. Nestle’s aim to be the first and by industrializing the rural areas, the government of China allows them to start manufacturing and expand the country’s potential. Even though the outcome of the greenfield venture is expected to be high, it is also really costly from a capital standpoint (Hills, 2005). Thus, Nestle’s success in China starts to strategic decision.
The two examples show that when top manager (strategic leadership) makes different strategic choice, it will appear different outcome and behaviors within organization. A current strategic will encourage organization’s success. Lead Hambrick and Finkelstein (1987) to suggest that the amount of discretion enjoyed by top managers will moderate the relationship between their strategic choice and organizational outcomes (Boal, 2001).#p#分页标题#e#留学生essay范文
Building sustainable competitive advantageSustainable competitive advantage is the focal point of corporate strategy. It allows the maintenance and improvement of enterprise’s competitive position in the market. For example Safeway Company, The safety of their products is of utmost importance and they implement appropriate business practices to ensure their quality and safety. Safeway have continued their partnership with a leading life science company, Puricore. In 2009, Puricore installed the Sterilox Food Safety System in nearly all Safeway stores. Sterilox is used to rinse fresh produce and sanitize food contact surfaces to prevent cross-contamination. They also initiated a multi-year partnership with Ecolab, whose advanced sanitation equipment and products will further enhance our commitment to meeting stringent sanitary standards within our retail operations (Ireland & Hitt, 2005). Due to strategic leadership building sustainable competitive advantage, this is safety of products, Safeway improve their marketing.
Distinctive capabilities are the basis of competitive advantage. It can be of many kinds: patents, effective leadership, and teamwork. The example is about Nestle Company. Because many same company is at competitive marketing, their strategic leadership use hundreds of hours of creative thinking, team work and design efforts paid off. The first exercise of the new recovery environment identified a few minor problems but worked with few failures and was proved to be functional by the business users (Hills, 2005). Additional changes have been made as the technology used by Nestle changes, but the basic concept once implemented has served Nestle for over 6 years. During this time Nestle has become more self-sufficient by adding external emergency power and expanded their workstation capacity by utilizing a new fabric pavilion recently constructed by the hotel. Hundreds of Nestle staff, management, and technical staff and outside vendors have participated in these exercises and have contributed to making the recovery more efficient each time. The setup during the first exercise took over three days to accomplish. The last exercise required less than 10 hours real time to configure the same recovery environment. Nestlé’s investment by designing and making this unique capability a part of their recovery program has been relatively small. In return, it provides Nestle employees, management and customers with proof that Nestle does indeed have a real and proved solution ensuring continuity of Nestle operations even under the most challenging circumstances (Hills, 2005). It shows that good distinctive capabilities will lead to competitive advantage of organization increase.
In addition, Human capital is a part of corporate capabilities; it can encourage sustainable competitive advantage. Greater workforce diversity is issue that will confront 21 century strategic leaders. Peter Brabeck-Letmathe, CEO of Nestle SA, believes that it is increasingly important for top managers to speak at least two to three languages. Cross-border and culture transfers among organizational citizens will be used prominently in the 21 century, as will experts who help people understand the nuances of other cultures. As at ABB today, many firms’ TMTs will be culturally diverse. Success will depend on the ability of a firm’s top managers to form a community of citizens rather than a band of employees working for a firm (Ireland & Hitt, 2005). Today, sustainable competitive advantage should be built upon corporate capabilities and constantly be reinvented.#p#分页标题#e#
To sum up, Different fix different organizations in reality. Strategic leadership plays an important role in an organization’s development, in term of Sustaining Organizational culture, infusing ethical value system, creating vision of the future, Making strategic decisions and Building sustainable competitive advantage. And the theories of strategic leadership have a positive moderating effect on the above mentioned relationships. Browne believes that "the role of leaders at all levels is to demonstrate to people that they are capable of achieving more than they think they can achieve and that they should never be satisfied with where they are now." (Ireland & Hitt, 2005). . Besides, strategic leadership’s application can provide insight from the planning and decision stage so that the complex processes are categorized into more manageable units. In today’s world, strategic leadership can also help development of organization and evaluating organizational applicability in all aspects of large-scale transitions in reality.
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