1. 1 INTRODUCTION:
This academic essay relates to strategic management and leadership in McDonalds. The goal of this assignment is to understand the impact of decision making in an organisation i. e. McDonalds. On this cut throat competition which is prevailing on the market, it is my understanding that leadership and proactive strategy plays vital role in overall organisation's success. Furthermore it is becoming apparent that strategic management and leadership operate at parallel level within an organisation.
1. 1. 1 STRATEGIC MANAGEMENT:
'It handles the most fundamental and basic question that involve the very existence of the complete organisation and guide the whole company's future. ' (Mullins, 1985)
Strategic management entails both strategic planning and implementation, and is "the procedure of identifying and executing the organization's strategic plan, by matching the business's features with the demands of its environment. "(Gadiesh and Gilbert, 2001)
In layman's term strategic management provides overall direction to the organisation. Therefore entails specifying the organisation's mission, vision and objectives, developing plans etc.
1. 1. 2 LEADERSHIP:
Leadership is defined as 'influence, that is the art or procedure for influencing people so that they will strive willingly and enthusiastically toward the achievements of the group's mission. Visionary leadership inspires the impossible: fiction becomes truth. (Lynch, 1997)
In leadership, people run the organisation to 1 place or another for the achievement of its objectives. Leadership is a great tool in attaining success for the organization, not simply through charisma, but through good judgement, proper motivation of employees & effective utilization of materials.
1. 1. 3 LINK BETWEEN STRATEGIC MANAGEMENT AND LEADERSHIP:
Due to a rapidly changing world, organizations face incredible pressures in delivering immediate results. This necessitates for strategic management since there is a great need to increase every available resource to achieve the organization's goal.
To manage an ever increasing demand for company effectiveness, there is a great need for strategic leadership to approach these conditions & priorities. For just about any ongoing business, it is mainly important to implement strategies through effective leaders.
Real strategic leadership means taking responsibility for future years as well as what is happening today. A main aim of strategic leadership is gaining a much better understanding of the business enterprise conditions, the environment and the main indicators that identify new trends and situations that could arise. According to the situation, leadership styles can be varied like autocratic, democratic and charismatic etc. In virtually any organisation it is required to have a good strategic management with good leadership skills. These two must maintain parallel positions for the organization's success.
1. 2 LEADERSHIP STYLES ON DIFFERENT SITUATION IN MCDONALD'S
As I've taken McDonald as research study, I'd like to go over the management style that operates in the corporation. Based on my understanding, McDonald operates with a Democratic design of management. This realisation involves me while I am working with the company and it offers freedom and flexibility of change according to different situations. With this style, the employee and people associated with the company have more participatory role in the decision making process.
McDonald has a democratic style and there's a less gap between manager and employees. They have got two way relationships between them. They have a comfortable working pattern. Therefore the manager can easily find the feedback from the employees. Also on the other hand, the employees understand the problem plus they follow the guidelines with no difficulty. You can find same levels of working. According to the different situation they have a different design of leadership. In this specific approach, the store manager has all capacity to run the branch but still allows employees to share their ideas and insights.
Also in McDonald, every employee has a participative role in your choice making process. All employees have to work with their strengths and provide input how to delegate work within the team. The management gives more importance to work in a team rather than doing individually. In McDonald, ideas move freely amidst the group and discussed openly thus in the end attaining their objective. This works both ways for the business by fulfilling individual objectives in line with the overall objective of organisation.
The management of this organization motivates the employees to do more work by involving them into decisions which really influences the objective of the organisation.
This particular approach influences the productivity of employees and they feel important to be a area of the organisation by providing a value. They lead all the employees to the same level and the manager always tries to know the strengths and weakness of employees. To overcome these difficulties, they offer appropriate training & career development programmes.
McDonald has flexible working hours which provides stress-free environment. They can be absolve to ask with the manager about schedules. Just how McDonald management adapts to different situations, a strong relationship is being formed between the subordinates and the managers.
1. 2. 1 OBJECTIVE OF MCDONALDS:
The main objective of McDonald is to make people alert to each product on offer, feel positive about any of it and remember it. The proper message must be communicated to the right audience through the right media. Because of this, McDonald need to provide importance & understand the value of both employees and customers. Happy employees serve well and leads to satisfied customers. This serves as a win-win situation for both organisation and employee. McDonald has continuously done internal marketing & this is important as it precedes external marketing. It goes in line with the best aim of creating not merely service leadership but management service. This delivery process is the key to achieving the aim of the company.
1. 3 IMPACT OF LEADERSHIP STYLE ON STRATEGIC DECISION:
Good leadership is adapting to any changes at any time & doing the right things at the right time. Due to democratic design of leadership, employees can work comfortably and they can share their ideas and insights with the management. Also in McDonald, managers effectively delegates work to their subordinates and give them full control and responsibility to the tasks. Managers welcome feedback on the result of initiatives and the task environment. Strategic decision needs to be made by leaders who have the ability to take effective decisions and adjust to changes in virtually any situation.
Because of democratic leadership, employees and managers easily understand the problem and handle it. They work freely and comfortably. In McDonald all employees have a right to participate in the aim of organisation. McDonald has a strategic decision which is implicated and formulated by leaders and managers of the organisation. First they decide the near future plans and objective of McDonald and the way to get there in minimum time. In addition they motivate visitors to do more work and they appreciate their work giving the performance award at the end of month.
1. 4 CONCLUSION:
From above discussion, I came to a conclusion that in adapting democratic style McDonald is really effective in providing value to employees. Although this style may draw out dissimilarities in ideas, it still ends up with formulating a typical decision. McDonald's management & leadership style pays to as well as to other organisations where managers and employees easily understand the problem and work accordingly. Strategic management and leadership correlates with each other. Without making any effective strategic decision, leadership cannot work and it cannot reach to the final objective of any organisation.
1. 5 Bibliography:
1 Gadiesh and gilbert Arit and James(1998)"Harvard Buisness Review on Leadership"(U. S. A)
2 LYNCH, Richard"(1997) Corporate Strategy" (third edition published 2003)
3 MULLINS, Laurie (1985) Management and organisational behaviour(Eight edition)
4 http://www. coaching-business-to-sucess. com/leadership-styles. html
5 http://www. scribd. com/doc/36681688/Mcdonalds
TASK 2 LEADERSHIP STRATEGY
These case will concentrate on how leadership and management theories emphasis on current thinking on strategic decision within an organization. It is focused how these theories help the organization to meet success. In leadership strategy, the leaders of the organization should create the unique and valuable market position, as the goal is to support the business with activities that fit together in a complementary way. In recent years increasing business competitiveness and the necessity for the most effective use of human resource has focusing attention on how leadership strategy revitalize organizations.
Early leadership theories focused on what qualities distinguished between leaders and followers, while subsequent theories looked at other variables such as situational factors and skill levels. There are numerous theories on leadership that are emerging in the current work environments. While leadership styles varies, the one thing they all have in common is their objective to lead individuals toward a unified goal.
2 LEADERSHIP STRATEGIES:
2. 1 Transformational leadership:
Transformational leadership is also known as relationship leadership and it focused after the connections formed between leaders and followers. It really is an activity of engendering higher levels of motivation and commitment. The emphasis is on creating a vision for the organization and the leader's ability to appeal to higher ideals and values of followers, and creating a sense of justice, loyalty and trust. Transformational leadership motivates followers to do more than originally expected and the extent of transformation is measured in terms of the leader's effects on followers.
Transformational leadership motivate and inspire people by helping group members see the value and higher good of the task. Leaders are centered on the performance of group members, but also want each person to fulfil his / her potential. Leaders with this style frequently have high ethical and moral standards. Leaders with this style frequently have high ethical and moral standards.
2. 2 Participative leadership:
Participative leadership is one which takes the input of others into consideration. These leadership encourage participation and contributions from group members and help group members feel more relevant and committed to your choice making process. In participative theories, however, the leader retains the to allow the input of others. Involvement in decision making improves the understanding of the issues involved by those who must carry out the decisions.
In this leadership, people will be more collaborative when they are working on joint goals. Also in this style, a participative leader, rather than taking autocratic decisions, seeks to involve other people along the way, possibly including subordinates, peers, superiors and other stakeholders. Participative leadership is a method of leadership which involves all members of an team in identifying essential goals and developing procedures or approaches for reach those goals.
2. 2 Leadership theory work in ALICON company:
Alicon group is committed to green environment and is also along the way of reaching ISO management systems standard. Alicon group is dealing with various OEMS on the impressive projects for reducing the weight of Aluminium components for protecting the environment through increasing the fuel consumption of vehicles. Alicon group is creating to various domains including Auto, Agriculture, Marine, Medical, Locomotive, Extreme sports and Power sector. Alicon group has been around the forefront in developing new and challenging products for its customers.
As Alicon is conducting many sectors, communication is an integral factor in relationship, and also transpires into key elements for leadership strategies. By practicing outstanding skills, leaders can maintain strong relationships with those they are really leading. Alicon generates greater knowing of the merchandise including these to transcend their own self-interests with regard to the business. Relationship-building can be an important quality for leaders to have because it builds trust between your followers and the leaders. Leaders of Alicon give special concern to the growth and developmental needs of the followers. Leaders are more likely to give importance towards success, demonstrate self-confidence and emphasis positive aspects of the vision of company. At the end of the month they evaluate performance of the employees and motivate them towards obtaining the overall goal of the company, and based on their performance the employees are receiving bonus, promotion. By making the right decisions, they demonstrate their commitment to turning that vision into reality; and in so doing successfully, they instil in others the confidence to trust in their leadership.
On the other hand, in the participative style in Alicon, where in fact the leaders sells the idea to the team. In addition they describe objectives of the business and they consult with the team that how to achieve that to meet the company's requirements. In Alicon, participative leadership helps bring more minds together and hence there are usually more ideas and recommendations that are generated. However for this reason style, several people belonging to different degrees of activity are asked to contribute to the worth of a particular decision, new ideas emerge. Therefore the decisions are more practical and implement able and creatively rich. In Alicon, there's a less gap between leaders and followers. Since everyone has put in some or the other effort towards the look process and everyone has a feeling of importance, it is quite evident that they will work at implementing their own ideas as well. It gets easier for leaders to create results.
2. 3 Trait theory:
In Alicon, except these two theories, according if you ask me Trait theory work better in an Alicon. The trait model of leadership is based on the characteristics of several leaders, and therefore it can be used to predict leadership effectiveness. The main thing is that it is not responsible to identify whether a person is a successful leader or not, nonetheless they are essentially viewed as preconditions that endow people with leadership potential. It can be applied by people at all sorts of organization. Also managers can know their strengths and weaknesses and so they get a knowledge of how they can develop their leadership qualities.
The major advantage is that, company know that which talents leaders have. Even if there are certain inborn qualities that make one a good leader, these natural talents need encouragement and development. Because in this leadership self-confidence is developed, honesty and integrity are a matter of personal choice, motivation to lead originates from within the average person, and the data of business can be acquired. In trait theory, people inherit certain qualities and traits that make them better suited to leadership. Trait theories often identify particular personality or behavioural characteristics shared by leaders. As with Alicon is dealing with so many sectors like auto, sports and power systems, so it's essential to have different skills for different sector.
2. 4 CONCLUSION:
In general there are lots of theory and everything the theories involve some effect in and other way on the organisation. Ledaership strategy is very useful within an organisation for both the leaders and followers to communicate with each other. And in addition it motivate them to attain the goal of an organisation with the use of this theory. And it works towards the satisfaction from the management and leaders.
2. 5 Bibliography:
1 http://www. alicongroup. co. in/products. php
2 http://www. strategies-for-managing-change. com/transformational-leadership-theory. html
3 MULLINS, Laurie (1985) Management and organisational behaviour(Eight edition)
4 http://psychology. about. com/od/theoriesofpersonality/a/trait-theory. htm
TASK 3 PLANNING LEADERSHIP
3. 1 Introduction:
This case will identify certain requirements that needed in successful planning leadership. And yes it emphasis arrange for development of future situations requiring leadership in this competitive world. Today's world is changing drastically in technology and it impacts in the development of leadership skills. A critical skill for leaders is the capability to manage their own learning that the highly motivated, self-directed and satisfied ways to the development of leadership skills. The leaders must be well-planned plus they have a ways of deal with the problems and also to overcome with their skills.
3. 2 Leadership Requirements:
In this modern world, leaders have to have an innate ability to really have the courage to make decisions that may take their organisation well ahead of the competition. Leaders need to involved their organisation well prior to the competition. Leaders have to be co-operative with their employees and gain support and respect of their staff so that they will observe their lead. Talented leaders address the critical conditions that are having the largest impact on positively to their job responsibilities. Successful leaders do not just recommend change and develop new processes, they become the champions of change. Dynamic leaders look into what changes need to occur and implement those changes to occur.
3. 2. 1 E-LAEDERSHIP:
E-leadership is similar form of effective leadership. It requires highly participative nature of the e-world between e-organisations and e-customers and the interconnectedness between leader and follower. Being a leader in this modern world, e-leadership requires a closer to every single activities across the world. In future leader can certainly take their organisation to the success if indeed they have this kind of qualities. Change is one of the factor that affect to the development of leadership skills. At the basis of the change is the necessity for the management to recognise that organisations are in fact social systems and that the emergent technology property of the system, the e-world, must be well integrated in whole organisational system itself. Due to e-leadership world becomes closer to the activities and also it can be done to communicate to different countries for the leader and they can easily deal with the actions related to their business. So e-leadership concept has given more importance in this fast growing world.
3. 2. 2 Globalisation:
Globalization is one of the main factor in today's world. Because it impacts to each and every place also it is the machine of interaction among the countries of the world to be able to develop the global economy. Globalisation includes technological, economic, political and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure. Being an leader, they have to think about the expansion of their business at globally. Also they have to think about how precisely they can expand to their business throughout the world. Because of globalisation, the number of countries where products can be sold or purchased has increased considerably and it causes improvement of international trade. The leaders need to compete globally, governments have upgraded their degree of technology. Large companies make reference to the countries is named a multinational so there has a increasing influence of multinational companies. Another aftereffect of globalisation is the strengthening power and influence of international institution such as World Trade Organisation (WTO), International Monetary Fund (IMF), and World bank(WB). Globalization allows countries to source their manpower in countries with cheap labour. The manpower shortages in Taiwan, south Korea, and Malaysia provide opportunities for labour exporting countries including the Philippines to bring their recruiting to people countries for employment. Also leaders outsource their business processes abroad so by the end they can perform their goal.
3. 3. 3 DIVERSE TEAMS:
Each organisation has its distinctive culture. It is a blend of the founders, past leadership, crises, events, history, and size. These impact individual behaviour on what it takes to maintain good standing and directs the correct behaviour for each circumstance. Being a leader, they need to know the climate that's the feel of the organisation, the average person and shared perceptions and attitudes of the organisation's members. Culture is the type of the organisation that is clearly a result of long-held formal and informal systems, rules, and customs, as the climate is a short -term phenomenon created by the current leadership. Climate represents the beliefs about the feel of the organisation by its members. The leaders must know that the actual people believe about the actions that occur in the organisation. These activities influence both individual and team motivation. Organisational climate is directly related to the leadership and management design of the leader, predicated on the values, attributes, skills, and actions as well as the priorities of the leader. Culture represents the shared expectations and self-image of the organisation. Individual leaders Cannot create or change culture because culture is the part of the organisation. Culture influences the characteristics of the climate by its effect on actions and thought processes of the leader.
3. 3 EFFECTS OF LEADERSHIP SKILLS:
The leader must need a highly effective leadership skills so they can certainly talk to their followers. In such a competitive world, it must have an efficient qualities in the first choice it help them to do more work and carry a smooth relation using their followers. Because of these leadership skills, leader may take maximum outcome with using minimum resources within an organisation.
3. 4 DEVELOPMENT OF LEADERSHIP SKILLS:
There will vary methods of developing leadership skills with formal and informal learning style. Leaders are the backbone of any organisation. Because of this leadership skills they have, they can held seminars, training, self- help projects the leaders can know the picture of the organisation in the future. And according to that they can brief out their employees deeply that how work can be carried out in a far more effective way.
3. 4. 1 JOB ROTATION:
Job rotation means employees are moved between several jobs in a planned manner. Job rotation is important in developing leadership skills because it includes the aspects related to work environment also and also other individual attributes. It can help to make satisfaction derived from balanced distribution of work load, working conditions and learning opportunities. A planned job rotation in an organisation has immense positive effect on job satisfaction. Being truly a leader, job rotation helps employees to get different encounters and wider variance of skills to enhance job satisfaction. Also it really helps to improve poor performance and settling scores from arising organisation politics.
3. 4. 2 SEMINARS:
Seminar means formal presentation by one or more experts in which the attendees are encouraged to discuss the subject matter. Seminars are intergral to many programs so because of this the leaders can know the problems which are raised and they can develop their skills giving better ideas. The success of the seminar would depend on the groups ability to interact through intelligent discussion, develop a knowledge of the material that the leaders had already think before.
3. 4. 3 TRAINING:
For the first choice to develop the skills training helps them that at which level these are standing not matter that how good or bad the first choice is but then they will further enhance their skills. It involves the acquisition of knowledge, rules or changing attitudes and behaviours through professional development. It helps to adhering a plan for the organisation. Through training leader can improve their quality of work and work life. And yes it develop the morale of work force in leader.
3. 5 CONCLUSION:
To conclude this, leaders required a skills to the betterment of any organisation through different approach to developing leadership skills. Comparing to old times there has a competition on earth so leaders must acknowledge certain skills that basically useful in an organisation into the success.
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