The Henry Payola one who is the author of Principles of Management says that the every organization is divided in the shape of a pyramid, that pyramid is divided as three sectors i. E. The bottom level is the Operational level and the Middle level is the Management level and the top level is the Strategic Level In this strategic level decides the overall Companies performance. Those who handle this Strategic level is known as the top level executives of the company like CEO, CUFF, Chartered Secretaries etc… Hose people are the main leaders who the leads he entire company while taking appropriate management decisions at right time based on their decision the entire management and Company crew will work. So we can Say that Strategic Level is the important level of every organization for the proper caring of this level every company needs good leaders to guide and drive the company; then only that company can survive in the business industry. So we can say that Strategic management and leadership skill is an important vital element that every Company wants to consider.
For example: A chartered Secretary or Company Secretary one who is working in the Strategic management bevel he/she takes all the corporate decisions making responsibility based on this decision the entire organization runs. So we can say that a Company Secretary is a Strategic manager so he or she needs good leadership quality. Then only the future of the Company will be a great success. So we can understand from the above example Strategic Management and Leadership Skills have a good Co- relation.
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This assignment is going to explain the application level area of Strategic Management and Leadership skill on the basic of a case Study of Virgin Atlantic LTD. Company Overview: Virgin Atlantic LTD is Commenced its business in the 22nd June 1984 Head quarters of this Company is United Kingdom. The parent Company of this virgin Atlantic Ltd is Virgin group of Companies. The annual returns of this company are 2357 m in the year 2010. Sir Richard Brannon is the president and main key leader of this company.
Virgin is one of the superior most brands in Britain. Now Virgin groups Business Empire is expanded in three continents with 200 companies with different business products like rare planes, rail network, finance, drinks, etc…. Task 1 1. 1 Connection between the Strategic Management and the Leadership Skill eased on the analysis of the above case study of Virgin Atlantic LTD. The two main keys are factors of the business victory i. E. Leadership Skill and Efficient Management. Proper blending of these two factors leads to a business in the track of success.
An Organizations success is in the hands of its leader. So we can say that a leader is a person one who leads the entire business into one point (the one point means the attaining the business goal). So the responsibility of the leader is very high in the company because he/she is the driver of the company his/her strategic decision must be accurate and prompt otherwise it will actively affect the company. For this reason a good leader needs some good leadership skills and proper management qualities are essential to lead an organization.
The important leadership skill that is essential for a good leader was explained below: A leader must be a motivated person. A leader must be a confident person. A leader must be humble honest and loyal to the organization. Good commitment is a necessary factor for good leader. Easy to handle a critical situation. Appropriate decision making power at right situation etc… On the other hand a deader possess some management skills also at right time decision making a good leader needs a good understanding elements of management i. E. Owe to manage the essential elements of management that is how to plan a management situation, how to organize a situation, how to control a management situation. A Leader is the supreme authority that leads the Strategic level of the organization important strategic decisions are taken by the leader based on this decision and plan the company’s future run in the industry. If the leader of the organization is efficient the concern organization is also efficient if it is not vice versa. So leadership skill and strategic management has a good correlation.
A leader with good leadership skill then that leader can apply all of his/her talent in the plat form of Strategic level of the Company as a result company can attain its goals easily. In the Scenario of Virgin Atlantic case analysis shows that the Strategic level of this company is very strong that is the key success factor of this organization. Strategic management level of this company is blessed with good strategic leaders with efficient leadership skills. Based on this leadership skills and management efficiency this companies brand value is ore reputed in the business industry. . 2 Impact of different management and leadership style could have on Virgin Atlantic Strategic decisions. The different Management style and leadership skill may favorably or adversely affect the organization that depends up on the situation. Form the above understanding it says clearly there is no strategic management without good leadership both are correlated. So Every organization overall performance is the mixture and the proper blending of the strategic management and the leadership skill.
If the management level of the organization is not working under he plan formulated by the Strategic level means if they violated the plan, the leaders responsibilities is properly monitored and evaluate the performance of the concern organizations management department. So a leader is the guide to lead the entire organization to one point i. E. To attains the desired organizational goals. In the Scenario of the Virgin Atlantic the impact of different management stales and leadership styles is positively affect the company’s performance in the industry.
The leadership team of this company is very efficient and a successful team. This Company implements certain leadership development program for heir employees as a result the productivity of the company increases. 1. 3 How the different leadership styles can be implemented to address the face up to in at least two different situations in the company: The different types of leadership skills were as follows: Autocratic or Despotic Leadership Style: In this leadership style Leaders have supreme powers over their employees in a group or their crew.
Employees have lesser opportunity to make their ideas and suggestions. Bureaucratic or Practical Leadership style: This leader follows the rules and the regulations ruefully and make sure that all the staff in the crew will obey the rules and regulations accurately. Charismatic or Enigmatic Leadership Styles: These leaders motivate other employees in the crew and this leader is the main driving factors to leads and motivates other employees in the crew. The success of the entire team is fully depends upon the directly connected to the presence of the charismatic Leader. Democratic or Independent Leadership Styles: In this leadership styles the other crew members have that right to promote their own suggestions but the ultimate responsibility is to take decisions is the democratic deader. Laissez-fairer Leadership: In this leadership style the leader assigns the work to the team and leaves the team, he properly communicates with the team properly with the work assigned. These are the main leadership styles that can be used in the organizations commonly. Our Scenario is Virgin Atlantic Company. So the leadership styles can prove in two different situations on the basis of an example with the company.
Situation 1: The Marketing Strategy of the company in the year 2010 was to market the brand name and products of the company in an effective way. The Marketing dead of the company and its crew member is ready to fix the target in the current year. The marketing head of the company makes a well organized strategic plan to lead the crew members to achieve the company’s marketing objective in the year 2010. While analyzing the marketing Strategy of the Virgin Atlantic Company the marketing heads decides to implement the charismatic leadership style is the best Style to implement for to achieve the marketing strategy in the year 2010.
The reason behind this was for achieving the company’s marketing the strategy the employees or the crew must be motivated ND their dedication is necessary. So the better leadership style to approach for this situation is Charismatic leadership skill. The entire success of the Virgin Atlantic marketing crew is depends up on directly connected to the presence of the marketing head of the Company. The marketing head is fully responsible for the strategy of the company so the head of the department responsibility is to work with the full team and motivate the employees for achieving the strategy of the company with a positive result. Situation 2: In the year 2010 CUFF of the Virgin Atlantic formulated a new financial business tragedy for the company. The Strategy of the Company was attaining 35% more the profit or revenue as compare with the previous year. The financial budget is ready for company to attain this organizational Strategy the financial management crew of the company is ready to attain the financial strategy of the company. The financial head of the company is planning to implement the bureaucratic leadership style to implement the reason behind this was finance department is the very much carefully handled department in every company.
Risk is very high is to manage this department so reducing the risk factor the dead of the finance department adopt this leadership style in the company the leader of this department carefully follows the rules and regulations under that strategy and carefully handles and manage the finance and the leader also monitor whether all the crew member is obeying the rules and regulation and also monitor the financial strategic plan is properly works or not. Task 2: 2. 1. The two famous theories that relates with the management and the leadership relating with the Organizational strategy of virgin Atlantic. Theory 1: Transactional Leadership theory: This theory was first developed by Max Weber in the year 1947. This leadership style is mostly applied by the executives of the organization. It mainly concentrates on the basic management elements of current term planning, organizing, directing and controlling. An examples of most prominent leaders used this transactional theory was Gaulle and Mac Cathy. This theory of leadership includes directing, organizing and motivating basically through attention-grabbing on self interest.
The supremacy of these leaders obtains from the proper power and accountability. The leader under theory motivates the employees through by giving rewards and punishments if the subordinate ill work under the correct strategy under company’s rules and regulations or plans and policies then the employee will be motivated through by giving some rewards or some extra remunerations or something like that. If the employee works the opposite of this that concern employee will be punishable. Under this theory a leader is responsible to monitor the subordinates constantly.
If the Strategy of the company is out of control the leader is responsible to control and directing the strategy in the right track. (Source: http://www. Misunderstandings. Com/transactional-leadership. HTML ) Theory 2: Transformational Leadership Theory: A leader of the crew is responsible to create a high performance work force in an organization by motivating the employees through attaining more revenue for the company. For this purpose a new theory of leadership was developed. This theory is known as transformational leadership theory. Models of Transformational theory: Source: http://www. Misunderstandings. Com/transformational-leadership . HTML Distinction between Transactional theory and Transformation Theory Leadership is reactive is practical Cue True Leadership Workings among Company Working among organizational culture by Implementing new ideas. 2. 2. The realistic Leadership strategy that support Virgin Atlantic as one of the leading airline and aviation Industry: The virgin Atlantic airlines and aviation is the second largest aviation in the ASK.
The Secret of this company success is the effective blending of proper management and efficient leadership skills; this company implemented the realistic leadership strategy, this company provides efficient training to their strategic level employees to improve their leadership skills. As a result the strategic level executives were well in leadership ND management as a result this company can attain its goals and aim easily. Effective leadership and efficient management power is the main back bone of this company that is the main success factor that leads to this Virgin Atlantic to a great success.
This company implement 360 degree appraisal system this is one the effective management leadership tool to measure the employees performance in the organization. This Company gives more value to its Human resource; human resource is the main asset of this company that is one and effective leading factor to run this company in to a right track. The 360 degree appraisal system is the system that values the performance of the employee in the organization.
By evaluating the employee’s performance this company can understand the SOOT of an employees and they give sufficient training to that Crew as a result the employee will be specialized in their own working area and they are guided by expert Strategic management professionals. The main victory tool of Virgin Atlantic airlines is its efficient strategic management and effective leadership skills. This factor makes this company as the leading airline industry in the KICK. Task 3: 3. 1.
Appropriate methods and approaches reviewing current leadership acquirement in the organization Virgin Atlantic. Virgin Atlantic managers adopted 360 degree feedback and personal development program. It gave the managers strong focus on their development plan and leadership. There is a form of political corrosion that debilitates leadership not as an unusual, typical or occasional event. It does not mean that there is a contradiction between what leaders required and what actually happens. However it means the fact that subordinates must comply with leaders request for their own benefit.
In Virgin Atlantic subordinates are supposed to do what their want them to do however mom of their wishes could not be fulfilled because of the lack of resources. The leadership styles followed in Virgin Atlantic is not to be considered as poor. The leadership styles introduced by Virgin have many objectives beyond their HRS operations. The introduced leadership development program with the intension of increasing their profits by 7%. They decided to send 120 managers of their personal development workshops at a cost of $2000-$3000 per head.
These are series of programs that aimed at building the leadership traits of Virgin into management behavior. This program was a success and it helped in building individual personal development program and developed each group of six managers who monitored their own growth and monitored other employee’s progress. Virgin Atlantic plans to review its annual development programs and implement further programs every year. It further extends its leadership review program to team around the globe and to the next stage of managers. 3. Future leadership for Virgin Atlantic Several trends influence the future understanding and leadership practices of Virgin Atlantic. Leadership Competencies will still matter Leadership competencies change the competitive environment. Leadership impenitence will be shaped by five competing forces. 1) Differing employee needs 2) teams 3) global competition 4) development of a rapid and flexible organization 5) information technology. As long as a leader can motivate a team based employee the range of a ‘lone ranger’ type of leaders is no longer important.
This type of leadership has high degree of uncertainty and ambiguity. Future leaders of Virgin Atlantic should be conversant in doing conceiving strategies and doing business internationally on a global basis. Globalization makes people to rapidly moving into major components including world economic trends, global markets and focuses certain areas such as Asia, middle east etc. Leaders are up to date with global trends and changes which are important for the success of business. Use of internet for marketing the services and products around the globe is a major topic in many current leadership programs.
Role of technology in leadership In general leaders need to be much savvier with respect to technology. Moreover technology helps employee to communicate with managers at different levels and at any time. Technology is a great tool in dealing with various leadership problems. Leadership virtually is now becomes a reality. Reduced costs, use of technology for leadership, increase in number of virtual members has reduced the traveling time of employees for training programs, providing learning opportunity to globally dispersed employees as well as leaders.
Virgin can adopt these types of leadership methods for their future success. They can help employee share knowledge among participants through chat-rooms, e-learning etc. Leadership development can be viewed as inherently social, collaborative and relational process. TASK 4 4. 1 The plan of VIRGIN ATLANTIC for the improvement of leadership skills for he victory of its future leaders. Leaders are the members of an organization who encourages its workers in attaining the goal of the company. They should work without a limit. They are the building blocks of an organization.
They influence the workers in many ways. Leadership styles should be modified according to the changes happening in the business world. The dynamic approach of the company controls the role of leadership in an organization. The launching of new products also demands new leadership skills. Some of the features of good leadership skills are ability to take correct decision making, developing an organizational tradition; they should possess a coordination and team spirit. The main aims of the members of a good leadership team include profit, customer satisfaction and fame of the organization.
Different people have different thinking. So alternate methods can take under each leadership. In every organization as in VIRGIN ATLANTIC, the executive team should develop their skills and work experience as group leaders. A best team is created at the top level of the organization to reduce the work of board directors. The members of this team should be very active in finding new business carriers. The group inners are the members who are showing their increasing brilliance within the organization. They are least preferring the members from outside the company.
The team members make continuous analysis about the history of the company and finding out the core factors which were the success of them in an early stage. From that, they are coming to the conclusion to establish the needs of the company, VIRGIN ATLANTIC, to ensure the SUccess in future. They have manipulated six principles as a part of their leadership pattern. They are aiming insistently on return, be brave and daring, bring the fundamentals, vividly, insert enhancement settings, motivate and hold the people. 4. Complete reports on the usefulness of the methods adopted in planning the development of leadership skills for the above mentioned succession of future leaders of Virgin Atlantic. The principles adopted by VIRGIN ATLANTIC are very successful and the company got a positive response. Getting of return is a commercial aim. The main factors of profit are the traveling expenses in the airlines, fuel price, cost for the maintenance of planes etc. Be brave to face any risk in the management process. Leaders are responsible for all types of tasks. Give the monumental ideas to the workers to avoid confusions during the working stages.
Training programs are organized to brighten the skills and knowledge of the employees. Leaders should always motivate the workers to improve their task. Creative thinking of leadership can make good products. Sharing of new ideas among the group members enable them to improve the existing products and to develop a new product. The fame of the organization, VIRGIN ATLANTIC is the result of a good leadership skill. Their operations are based on the analysis of the requirement and satisfaction of customers. The field of aviation is very competitive now a day.
So they should be very careful in modifying their existing technologies. Conclusion In conclusion from the above case analysis says that Strategic management and Leadership skill is a correlated factor. The first part of this case analysis explains the correlation among the leadership styles and its skills and its application in the Strategic management . The second part explains the management and the leadership theory to support the organization Virgin Atlantic. Third part explains to assess the leadership requirements of the concern organization. The fourth part explains the development of the leadership skills.