Strategic Leadership - Research Paper Example

Strategic Leadership Introduction The term leadership has received various definitions and explanations depending on the perceptions, experiences and understandings of those who discuss it. It is one of the most researched topics on human behavior that evolved through time. Due to the varied meanings and definitions given to leadership, various theories of this component have been conceptualized. There are a few theories that have shown to be most popular in the work setting. Some of these theories have shown to be applicable in work and life situations. Any view taken on the nature of leadership is a function of one’s education, value system, direct and vicarious experiences and personality. One of the most important responsibilities of a leader is his role for subtle teaching. A good leader is one who assists the group to do better thinking without doing their thinking for them. Thus, the quality of a group’s leadership is measured by evidence of growth in its members and in the accomplishment of well-defined goals. In this regard, the paper is written to proffer diverse issues on leadership, in general. Specifically, the discourse aims to address the following concerns: (1) to determine what is leadership and why is it important? (2) to present Morgan’s metaphors – leadership approach, leadership style and relevant management theories; (3) to present a background of one’s organization and sector; and (4) to identify one’s role in the organization as determined in the organizational chart. Definition of Leadership Leadership is a significant component in the existence, survival and functioning of any group or organization. Many organizations have been aware of the fact that their success is greatly dependent upon the quality and effectiveness of this dimension. As an organization grows in size and complexity, the requirements for an efficient and effective leadership multiply. A review of the definitions of leadership is perceived and described as any or a combination of the following elements: (1) as an act or behavior; (2) as an effect of interaction; (3) as the exercise of influence; (4) as a form of persuasion; (5) as the act of inducing compliance; (6) as a power relation; (7) as a focus of group processes; (8) as an instrument of goal achievement; (9) as the initiation of structure; (10) as a differentiated role; (11) as personality and its effects; (12) as an attribute of a position; and (13) as an art. Leadership appears in social science literature with three meanings: (1) attribute of a position; (2) characteristics of a person; and (3) category of behavior. The common approach to defining leadership is to equate it with the different exertion of influence. As brought out by French, Kast and Rosenzweig (1985), “leading, a central function of managing in any organization, involves influencing the behavior of people” (p. 182). Leadership is defined by Martires & Fule (2000) as “the process of influencing people so that they would work towards the attainment of specifically defined goals” (p. 569). The topic on leadership intrigued various scholars that Ken Valenzuela, the Chief Editor for BeALeader.Net collected various definitions of leadership, to wit: “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal” (Northouse, 2004 cited by Valenzuela, 2010, p. 1). His own definition is hereby presented as “the ability of developing and communicating a vision to a group of people that will make that vision true” (Valenzuela, 2007, p. 1). Authors Lussier & Achua (2004) define leadership as “the influencing process of leaders and followers to achieve organizational objectives through changes” (Lussier & Achua, 2004 cited by Valenzuela, 2010, p. 1). Importance of Leadership Warren Bennis, in his article entitled “Leadership: A Beleaguered Species?”, averred that no ideal leader exists (Bennis, 1976, p. 13). The important ingredient is that the followers should know their abilities, talents, skills and should work to develop them maximally. According to Management Study Guide (2011), the significance of leadership is realized in terms of maximizing efficiency and in its ability to facilitate the achievement of organizational goals (p. 1). In this regard, several points were itemized to detail leadership’s relevance, to wit: (1) as an initiator of action, (2) to motivate followers, (3) to provide direction and guidance, (4) to enhance confidence, (5) to assist in boosting morale, (6) to create a conducive working environment, and (7) to assist in the coordination and collaborative efforts of all members of the organization (Management Study Guide, 2011, p. 1). The author D. Quinn Mills, in his work on Leadership: How to Lead, How to Live discussed the importance of leadership by assessing the implications of its presence or absence in various endeavors. Mills (2005) averred that “few things are more important to human activity than leadership. Effective leadership helps our nation through times of peril. It makes a business organization successful. It enables a not-for-profit organization to fulfill its mission. The effective leadership of parents enables children to grow strong and healthy and become productive adults” (Mills, 2005, p. 10). Likewise, Mills indicated that the absence of leadership would create problems in terms of organizations progressing in relatively slow manner, with possibilities of stagnation and losing direction. Further, there is a danger of facing dilemmas on implementation of strategies and , p. recommendations after a decision-making process (Mills, 2005, p. 10). The elements identified above defining leadership clearly indicate the positive outcomes that leaders create in any organization or activity. Leaders ultimately give guidance and direction by motivating his followers towards the accomplishment of clearly defined goals. Leadership versus Management According to Mills (2005, p. 17), “leadership is not the same thing as being in a position of authority. It is possible to be a boss in a company without being a leader. A boss can be more of an administrator than a leader”. He evaluated and differentiated management with leadership according to three roles: manager, administrator, and leader. Managers are concerned with the creation of an environment for performance. To do this, managers are expected to adhere to undertake the functions of planning, organizing, directing, and controlling. In the end, they achieve goals through the efforts of other people. They have to influence the behavior of other people in order to get things done. According to Martires & Fule (2000, p. 150), “this requires leadership, and managers have to be leaders as well”. Administrators were identified to contain the following elements: “(1) making rules and regulations, (2) making decisions that apply and interpret rules and regulations, (3) keeping records, and (4) filling out forms” (Mills, 2005, p. 18). It is the contention of Mills (2005) that “running an organization effectively requires administration, management, and leadership. Leadership is ordinarily in shorter supply than administrative or managerial competence. Leadership is more important and more demanding for most people. Fewer people are able or willing to be leaders, so it tends to be a higher calling than administration or management” (p. 19). Critique: Mills’ identification of elements undertaken by administrators are confusing and ambiguous as the responsibilities encompass critical roles of creating of rules, decision-making, and interpretation of regulations which are synonymous to duties of senior management. One’s personal belief and experience has identified administrators as having lesser accountabilities as managers in terms of functions of direction, more than anything else. Managers and administrators can be leaders in scope of responsibilities and in their ability to transform the organization towards goal accomplishments. The leaders’ role is gauged in terms of their ability to get things done. They could be members of a team or a group of subordinates, who are not necessarily administrators or managers in the organization. Morgan’s Metaphors James Lawley cited Gareth Morgan when he discussed Metaphors of Organization, to wit: “All theories of organisation and management are based on implicit images or metaphors that persuade us to see, understand, and imagine situations in partial ways. Metaphors create insight. But they also distort. They have strengths. But they also have limitations. In creating ways of seeing, they create ways of not seeing. Hence there can be no single theory or metaphor that gives an all-purpose point of view. There can be no 'correct theory' for structuring everything we do” (Morgan, 1997, p. 348). Morgan’s metaphors of organization discussed concepts relating to eight elements: machines, organisms, brains, cultures, political systems, psychic prisons, flux and transformations, and instruments of domination (Lawley, 2001, pars. 12 – 19). As analyzed and critiqued by Andrew Basden (2000), the author revealed that “each metaphor, each way of seeing an organization, is not just a matter of academic curiosity; the way those who have influence in an organization see it, their predominant metaphor, will shape the organization and heavily influence the way it functions. So 'way of seeing' is taken, here, to also include 'way the organization functions' (Basden, 2000, par. 3). As part of an organization included in the oil and gas industry sector, I work as an Operations Manager and has observed that the most crucial metaphor applicable to the company I am involved in is the metaphor of machines, as a goal-seeking machine with interchangeable parts where focus on “efficiency, waste, maintenance, order, clockwork, cogs in a wheel, programmes, inputs and outputs, standardisation, production, measurement and control, design” (Lawley, 2001, par. 12) are highlighted. Background of the Oil and Gas Company Oil and gas companies have great responsibility and accountability to various stakeholders that management should be clear and concise in the definition of its mission statement. Generally, organizations belonging to the oil and gas industry sector declare that their mission statement focus on “achieving superior financial and operating results while simultaneously adhering to high ethical standards” (Exxon, n.d., par. 1). As indicated, there is a highlight to accomplish the clearly defined goal of attaining financial success consistent with Morgan’s metaphor that organizations are goal-seeking machines which need to establish standards of efficiency and control to ensure that a projected amount of financial parameters are successfully achieved. There is a crucial need to center on security, thereby requiring a safety mission is to create an incident-free workplace with zero work-related injuries and illnesses. Usually, aside from short-term goals, oil and gas organizations look beyond an annual period to project into the future. Generally, there is this long term vision of continuously providing energy as a commitment to uplift the standards of living of people all over the world with the aim of providing a return to the organization’s shareholders. In addition, management’s philosophy is to take a longer term perspective in deciding on the appropriate strategies to sustain global success. These vision statements could be achieved with a design of strategies that would provide security measures for the safety and security of organizational resources (man, materials and money) at all levels in oil and gas companies. Likewise, organizations in this sector give primary importance to compliance with laws and regulations pertaining to operating the business. Management details an ethical policy which encompasses the recognition of organizational culture, fair transactions of company personnel with various stakeholders, accuracy in financial documentations and reporting, a system of management that gives due importance to honesty and integrity in bookkeeping, budget proposals and economic evaluation of projects, and in disclosure decisions. Organizational Structure Oil and gas companies manifest a standard organizational structure which is created as a result of the grouping of functioning segments like departments, divisions, sections, and units that work into a harmonious relationship so that all the different processes within the system can operate efficiently and effectively. For example, Exxon’s management is composed of the chairman and chief executive officer and four senior vice presidents with one also assuming the role and responsibility as treasurer. There are 11 board of directors; 10 of which were “independent as defined by New York Stock Exchange guidelines, and all directors stand for election at our Annual Meeting of Shareholders” (Exxon: Our board of directors, n.d., par. 1) Various corporate citizenship topics and issues are reviewed and resolved by diverse committees such as the Audit Committee, Board Affairs Committee, Compensation Committee, and Public Issues and Contributions Committee. The diverse workforce that comprise Exxon Mobil’s executive and staff positions total “nearly 80,000 employees, of which about 37 percent were located within the United States and 63 percent internationally” (Exxon: Our diverse workforce, n.d., par. 1). Of this number, 3,600 are considered management and professional employees hired from different parts of the world. The security department at Exxon is headed by a security manager who is responsible for direct management of security tasks and responsibilities such as establishing and implementing various security standards, directing and monitoring security personnel with respective assignments (daily tours, monitoring of door access, ensuring efficient upkeep of monitoring CCTV cameras, checking alarm systems, among others), preparing and coordinating for annual security audit, maintaining and updating all security documentation. The manager should also ensure that his personnel have undergone regular training, have been regularly evaluated in terms of performance (for salary increases, promotions, advancement, or application of sanctions in cases of violations) and have been duly recognized for a job well done. My Role in the Organization As Operations Manager, the description of the basic responsibilities is: “responsible for the management of several field operations supervisors and an overall organization of approximately 100 field personnel. Responsible for all field operating activities related to on and offshore facilities, and all related duties for position. Carries out supervisory responsibilities in accordance with company policies and applicable laws” (Jobs, 2010, par. 1). The position requires the candidate to be a graduate of a Bachelor of Science degree in engineering with generally a minimum of at least 15 years experience in this industry sector. My leadership style is to support my team and encouraging them to do the job correctly and safely. My style is not to put the blame on others, nor to look for the weaknesses of the people but to focus on the areas that could be developed and improved. I also strive to be supportive on their personal and professional growth. I like to develop leaders in the organization and provide them freedom to do the job alone, with minimal supervision but with regular monitoring. 1. Leadership Approach With my years of experience as Operations Manager for the oil and gas company, I realized that I have been practicing the contingency approach to leadership This approach is based on the premise that effective leadership is situational. Rather than looking for the one best way of leading that is applicable in all situations, this approach suggest that leadership style should be varied in accordance with the requirements of the leadership situation. As the situation changes, so does the style. The contingency approach emphasizes the need for flexibility. The central issue for managers is to analyze and evaluate the situation and then to find and adopt a leadership style which fits that situation. Critique: The contingency model of leadership effectiveness was developed by Fred Fiedler and his associates. They contend that a leader’s success is contingent on two factors: (1) leadership style, the leader’s way of interacting with the group; and (2) situational control, or the degree to which the leader has control over the situation. The performance of a leader depends on the appropriate match between leadership style and situational control. In analyzing the contingency approach, two major leadership styles were noted: relationship-motivated, where a leader derives major satisfaction from good relations with people. One’s self-esteem depends largely on how other people regard him and relate to him. He is sensitive to what his group members feel. The other style is task-motivated, where a leader obtains his main satisfaction in getting things done. He gains more self-esteem from achievement than from his relations with others. He feels most comfortable when he can work from clear guidelines and operating procedures. The strategic leadership exercise, presented as a reflective journal, assisted in the identification of the leadership approach. The results are indicated below: Element Comments Clearly establish the context of your leadership practice As part of the Oil and Gas company, my leadership practice is premised on accomplishment of clearly defined goals through employee development and motivation. Analyse (break down) the various facets of your leadership practice and provide a succinct account of the key features of your approach I am both relationship-motivated and task-motivated: I perform well in situations of high control or low control, manifesting task-oriented leader. I also perform best in situations of moderate control manifesting a relationship-motivated leader. Provide examples of your leadership practice in action I delegate tasks, give my subordinates the leeway to perform and supervise accordingly. I seek feedback through regular communication, solicit active participation in problem solving and seek suggestions prior to decision-making. Draw on a range of perspectives to provide a detailed academic critique of your practice Leadership approach uses Fiedler’s Contingency Model; Personal contention parallel with Maslow’s Motivation Theory, predominantly practicing a democratic leadership style Identify strengths and weaknesses in your leadership practice - Identify means of addressing both Based on the results of my “A” Strengths, my leadership approach as indicated in the contingency theory is manifested in the following strengths: problem solver, goals to constantly improve, proactive, intuitive, emphasis on ethical standards, accountable, flexible, has the ability to build powerful relationships, and family is one’s inner circle. As indicated in the article written by Chester A. Schriesheim and Linda L. Neider (2007) entitled Leadership Theory and Management, the authors revealed that “the use of contingent rewards by a supervisor has been generally associated with the satisfaction and commitment of subordinates (and with performance as well). The surprising fact has also been uncovered that employees often respond positively (in terms of enhanced satisfaction and commitment) to supervisors who use contingent punishment (on the subordinates themselves and on others)” (Schriesheim & Neider, 1989, p. 23). The findings validate the use of a contingent leadership approach as highly effective when used in conjunction with rewards. 2. Leadership Style Leadership style is a combination of directive and supportive behaviors. A situational leader, like me, chooses the style that is appropriate to the development level of the subordinate. As averred by Martires & Fule (2000), “directing behavior involves clearly telling people what to do, how to do it, where to do it, and when to do it, and then closely supervising their performance. Supportive behavior involves listening to people, providing support and encouragement for their efforts, and then facilitating their involvement in problem-solving and decision-making” (p. 174). Critique: Based on experience, although I exhibit a predominantly democratic leadership style, I acknowledge that directing is suitable for people who lack competence but are enthusiastic and committed. Coaching is appropriate for people who have some competence but lack commitment. Supporting is for people who have competence but lack confidence or motivation. Delegating is effective for people who have both competence and commitment. I found that it is more effective to be sensitive to the behavior and personalities of one’s subordinates prior to application of a particular leadership style. The job performance profile of subordinates is an important contingency factor in leadership. A situational leader must be able to diagnose the level in which his subordinates are during a particular time. He needs to be flexible to be able to vary his style in accordance with the development level of the people he is working with. Organizational Behavior –Management Theories 1. Classical School a. Frederick W. Taylor’s Scientific Management Theory, envisioned four principles, to wit: “(1) replace rule of thumb work methods with methods based on scientific study of the tasks; (2) scientifically select, train, and develop each worker, rather than passively leaving them to train themselves; (3) cooperate with the workers to ensure that the scientifically developed methods are being followed; and (4) divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks” (NetMBA, 2010, pars. 15 – 18). Although the theory was found to be effective in increasing productivity in various organizations, critics noted the following drawbacks: work was found to be monotonous. Further, “the core job dimensions of skill variety, task identity, task significance, autonomy and feedback were all missing from the picture of scientific management” (NetMBA, 2010, par. 20). b. Henri Fayol’s Formal Organization Theory focused on 14 principles that guide the management of organizations: division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration of personnel, centralization, line of authority, order, equity, stability of tenure of personnel, initiative and esprit de corps (Myers & Presuto, n.d., pp. 12 & 13). Critics of his works indicate that “Fayol’s five principle roles of management are still actively practiced today. The author has found "Plan, Organize, Command, Co-ordinate and Control" written on one than one manager’s whiteboard during his career. The concept of giving appropriate authority with responsibility is also widely commented on (if not well practiced.) Unfortunately his principles of "unity of command" and "unity of direction" are consistently violated in "matrix management" the structure of choice for many of today’s companies” (An Overview of Management, n.d., par. 29). c. Max Weber’s Bureucracy defines power as “the possibility of imposing one’s will upon the behavior of other persons” (Weber, 1957, 152). Power is the ability to influence the behavior of others to bring about desired outcomes. As such, power is central to the leadership process. People who aspire to leadership must be able and willing to use power. The challenges faced by the classical theories were revealed by Myers & Presuto (n.d.) when they indicated that “employees have minimal power over the jobs and working conditions; subordination, passivity and dependence are expected to work to a short term perspective; employees are lead to mediocrity; and working conditions produce to psychological failure…as they are lower class employees performing menials tasks” (Myers & Presuto, n.d., p. 26). 2. Human Relations School a. Maslow’s Motivation Theory posits the complex nature of man as he averred that man’s needs fall into a hierarchy of relative prepotency. Needs range from the most basic physiological, to safety and security, social, esteem and self-realization needs. A need ceases to be potent when it is met and man strives to satisfy the next rung of needs. Boeree (2006) critiqued Maslow’s theory in terms of the methodologies used, constraints on self-actualization, and the prepotency of which lower level needs have to be satisfied first before higher level needs. b. Hawthorne Experiments were “groundbreaking studies in human relations that were conducted between 1924 and 1932 at Western Electric Company's Hawthorne Works in Chicago (Hawthorne Experiments, n.d. pars. 1). The experiements by Roethlisberger and Mayo showed that man is largely gratified in a social milieu. He craves for affiliation and communion with fellow workers. It is in and with a group that he develops himself and performs more. The opinions of fellow workers, job comfort, enjoyment, long range security are more potent than financial considerations. According to the theory, the work group is a stronger motivator than expected. 3. Neo Human Relationship: McGregor’s Theory X, Theory Y The manager’s assumptions about people and their consequent operationalization largely define his style of managing them. Douglas McGregor argues that “… a manager’s effectiveness is a function of such assumption about human nature, and that his leadership behavior will be crucially affected by them…” (McGregor, 1960, p. 37). Theory X has been associated with closed, autocratic management style while Theory Y has been seen as open and participative. McGregor, however, cautions that Theory X should not be confused with “hard” management and Theory Y with “soft” management. Moreover, it is wrong for managers to believe that Y positive qualities are also seen in people who believe that external forces are responsible for their rewards and punishments (externals) while some negative factors are found in personalities who believe that their rewards and punishments are controlled by what they do (Sanzotta, 1972, pp. 20 – 23). Conclusion These organizational theories are seen to be applicable even in contemporary times and in various organizations, including in the gas and oil company where I am actively involved in. The goal setting focus of the organization was eminent as the predominant metaphor proffered by Morgan. As an Operations Manager, the leadership approach used is the contingency approach with leadership style being defined according to the situation and the followers. However, one believes in Maslow’s hierarchy of needs as a motivational framework manifesting the need evaluate the level of needs of one’s subordinates to identify the appropriate rewards. As classical organizational theories provide the traditional framework for managing people in organizations, one must be aware that there are vast updates on both leadership and management theories that need to be taken into account to ensure their practical application in contemporary organizations today and in the near future. 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