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Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-1 Chapter 13 Strategic Leadership by Executives.

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Presentation on theme: "Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-1 Chapter 13 Strategic Leadership by Executives."— Presentation transcript:

1 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-1 Chapter 13 Strategic Leadership by Executives

2 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-2 Learning Objectives Understand what organizational processes determine an organization’s performance. Understand how top executives can influence organizational processes and improve organizational performance. Understand the conditions that make strategic leadership especially important. Understand the conditions that make it more difficult for a chief executive to make changes in an organization.

3 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-3 Learning Objectives (Cont.) Understand how personal traits and tenure in office are related to a chief executive’s leadership behavior. Understand the primary types of research used to assess the importance of strategic leadership and what has been found. Understand the potential advantages of executive teams and the conditions that increase their effectiveness. Understand the procedures that can be used to monitor the environment and formulate a good competitive strategy.

4 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-4 How Leaders Influence Organizational Performance Adaptation to the Environment Efficiency and Process Reliability Human Resources and Relations

5 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-5 Innovation and Adaptation Competitor and market analysis programs (market surveys, focus groups, consumer panels, comparative product testing, benchmarking competitor products and processes) Innovation programs (intrapreneurship, quality circles, innovation goals) Knowledge acquisition (consultants, joint ventures, import best practices from outside) Organizational learning (knowledge management systems, postmortems, joint ventures)

6 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-6 Innovation and Adaptation (Cont.) Temporary structural forms for implementing change (steering committee, task forces) Growth and diversification programs (mergers and acquisitions, franchises, joint ventures) Structural forms (research departments, small product divisions, product managers, cross- functional product development teams, facilities designed to encourage innovation) Appraisal, recognition, and reward systems focused on innovation and customer satisfaction

7 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-7 Efficiency and Process Reliability Performance management and goal setting programs (e.g., MBO, zero defects) Process and quality improvement programs (quality circles, TQM, Six Sigma) Cost reduction programs (downsizing, outsourcing, just-in-time inventory) Structural forms (functional specialization, formalization, standardization) Appraisal, recognition, and reward systems focused on efficiency and process reliability

8 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-8 Human Resources and Relations Quality of worklife programs (flextime, job sharing, child care, fitness center) Employee benefit programs (health care, vacations, retirement, sabbaticals) Socialization and team building (orientation programs, ceremonies and rituals, social events and celebrations) Employee development programs (training, mentoring, 360 feedback, education subsidies)

9 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-9 Human Resources and Relations (Cont.) Human resource planning (succession planning, assessment centers, recruiting programs) Empowerment programs (self-managed teams, employee ownership, industrial democracy) Recognition and reward programs focused on loyalty, service, or skill acquisition

10 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Ways to Influence the Performance Determinants Leadership Behaviors Programs, Systems, and Structure Competitive Strategy

11 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Table: Management Systems, Programs, and Structural Forms Used to Influence The Performance Determinants

12 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Need for Flexible, Adaptive Leadership Need to focus on multiple performance determinants Need to find a balance between priorities Enhance multiple priorities at the same time Balance impacted by changes in importance of the determinants

13 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Coordinating Leadership Across Levels and Subunits Fates of different leaders closely intertwined Conflict and resistance impedes performance Performance depends on how well competition and disagreements are addressed

14 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Constraints on Executives Internal Constraints Coalitions in the organization Strong organizational culture External Constraints Organization’s primary products and services Powerful external stakeholders Perception of the organization’s performance Constraints and Executive Traits as Joint Determinants

15 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Conditions Affecting the Need for Strategic Leadership Periods of Reorientation Periods of Convergence Influence of Top Management

16 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Strategic Leadership Political Power and Strategic Leadership Executive Tenure and Strategic Leadership Research on the Effects of CEO Leadership Studies of CEO Succession Case Studies of Strategic Leaders Survey Field Studies on CEO Behavior and Firm Performance

17 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Strategic Leadership by Executive Teams Potential Advantages of Executive Teams Potential to make better strategic decisions Team members can compensate for weaknesses in the CEO More likely to represent diverse interests Important tasks are less likely to be neglected Executive Teams and Organizational Effectiveness

18 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Key Responsibilities for Top Executives Monitoring the Environment Developing Competitive Strategy

19 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Monitoring the Environment Table: Questions for External Monitoring

20 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Guidelines for Formulating Strategy Determine long-term objectives and priorities Assess current strengths and weaknesses Identify core competencies Evaluate the need for a major change in strategy Identify promising strategies Evaluate the likely outcomes of a strategy Involve other executives in selecting a strategy

21 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations Guidelines for External Monitoring Identify relevant information to gather Use multiple sources of relevant information Learn what clients and customers need and want Learn about the products and activities of competitors Relate environmental information to strategic plans

22 Copyright © 2010 Pearson Education, Inc. Leadership in Organizations All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc.


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