CH1 - Strategy, Leadership and Culture

Question 1

Perspectives on Leadership

Answer 1

(Yukl 2013)
Trait approach
Behaviour Approach
Power-influence approach (autocratic-participative)
Situational approach (contingency theory)
Integrative approach

Question 2

Leadership Roles

Answer 2

(Johnson et al 2017)
Top Managers (CEO & Senior Mgmt)
=> Envisioning future strategy
=> Aligning Org to deliver strategy
=> Embodying change
Middle Managers
=> Advisors top senior mgmt
=> Sense-making of strategy
=> Local leadership of change

Question 3

Change agent?

Change agency?

Answer 3

Change agent: Leads change => figurehead

Change agency: Everything associated with making the change happen (consultants may be required

Question 4

Charismatic and Transaction Leadership

Answer 4

(Johnson et al 2017)
Transactional leaders (instrumental leadership):
- focus on systems and controls.
- Generally seek improvement rather than change.
- Focus on day-to-day operations, usually lower levels of mgmt.

Charismatic leaders (transformational leadership):

• Energise people
• Build a vision of the future => future orientation
• Change management is a natural part of what they do.
• This fits with the situational approach of leadership

Question 5

Change management styles

Answer 5

(Balogun and Hope Hailey 2008)

• Education and communication (explaining in detail why change is necessary)
• Collaboration and participation (involving people affected with change in managing process)
• Intervention (change led by change agent)
• Direction (use authority)
• Coercion (extreme use of authority)

Question 6

What is Strategy?

Different Horizons?

Answer 6

(Johnson et al 2017)
Strategy is the long-term direction of an organisation
Horizon 1 => current business (up to 1 year)
Horizon 2 => emerging activities (1-3 years)
Horizon 3 => New, risky ventures (3+ years)
Strategic direction - What do they want to do and how are they going to achieve it

Question 7

Levels of strategy

Answer 7

• Corporate strategy (deals with the overall purpose and scope of an org and how to add value to the different parts of an org)
• Business-level strategy (divisions) (how to compete successfully in particular markets)
• Operational strategies (how parts of an org such as marketing, finance or IT support overall strategy)

Question 8

What is a mission statement?

Answer 8

• Why we exist
• Formal documents that state the Org’s mission.
• Published within Org to promote desired behaviour
  => support the strategy and purpose
  => adherence to core values
  => adoption of policies and standards of behaviour

Question 9

Ashridge College model of mission

=> Links business strategy to culture and ethics

Answer 9

(Campbell and Yeung 1991)

• Purpose (why do we exist? returns to shareholders?)
• Values (beliefs and moral principles that underlie Org culture)
• Strategy (provides commercial logic for company -what is our business and what should it be)
• Policies and Standards of Behaviour (guidance on how the Org’s business should be conducted)

Question 10

Structure of mission and objectives

Top down

Answer 10

• Missions Statement (seen as PR exercises, generalisations)
• Corporate Level Objectives (Overall Mission - supported by a small no. of wide ranging goals)
• Divisional Objectives (each of high-level goals supported by more detailed subordinate goals)
• Functions (pattern of goal setting is continued down)

Question 11

Objectives should be:

Answer 11

SMART
Specific
Measurable 
Achievable
Realistic (Results-focused)
Time-related

Question 12

Corporate Social Responsibility

Answer 12

Centres on the approach taken by Org’s to provide benefit to society in general rather than specific stakeholders

Question 13

Corporate Governance

Answer 13

Defined as the conduct of senior officers in and Org. The governance framework describes who the Org serves and how principles are decided

Question 14

Main elements of strategic management

Answer 14

(Johnson et al 2017)

• Strategic position => includes the environment (PESTEL factors and those covered by SWOT) & the role played by stakeholders and culture
• Strategic choices => includes how to achieve objectives (e.g. competitive advantage) and focuses on customers and markets
• Strategic in action => refers to the practicalities of forming and implementing strategies. It includes appraising performance, strategy development processes, organisational structure & change management

Question 15

What is Organisational Culture

Schein, 1985

Answer 15

A pattern of shared basic assumptions considered valid and transmitted to new members
Culture will have:
- formal/visible aspects => goals, policies and terminology
- informal/less visible aspects => beliefs, values and norms

Question 16

Organisations culture may be influenced by:

Answer 16

• National culture
• Founders of the Org
• The history of the Org
• The style of current leaders
• Org structure can effect culture

Question 17

The Cultural Web

Answer 17

(Johnson et al 1992)
CROPS PS
- Control systems
- Routines and rituals
- Organisation structure
- Power Structures
- Stories and Myths
- Paradigm
- Symbols

Question 18

Management can use cultural web to help diagnose whether the Org’s culture is contributing to underperformance.
=> 3 phases to such analysis:

Answer 18

1) Management look at Org culture as it is now
2) They look at how they want the culture to be
3) They can identify the differences between the 2