Components of a Performance Management System

Components of a Performance Management System

The 5 Stages of The Strategic Management Process

The 5 Stages of the Strategic Management Process

Strategic management

      Strategic management is the ongoing planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its goals and objectives. Changes in business environments will require organizations to constantly assess their strategies for success. The strategic management process helps organizations take stock of their present situation, chalk out strategies, deploy them, and analyze the effectiveness of the implemented management strategies. Strategic management strategies consist of five basic strategies and can differ in implementation depending on the surrounding environment. Strategic management applies both to on-premise and mobile platforms. (SearchCIO, 2019)

5 Steps in the Strategic Management Process

1. Goal setting

• ·         The purpose of goal-setting is to clarify the vision for your business
• ·         Define both short- and long-term objectives
• ·         Identify the process by which to accomplish your objective
• ·         Give each person a task with which he can succeed

            Set a long-term organization-wide strategic goal. This is the one goal all members of the organization should be able to reproduce and chant at any time. The goal has to be emotionally compelling but not just a daydream: it should be clear what success looks like.

2. Analysis - Internal and external

• ·         Gather information and data relevant to accomplishing your vision
• ·         Understand the needs of the business as a sustainable entity
• ·         Examine any external or internal issues that can affect your goals and objectives

When the initial goals making up the strategic framework is agreed upon, it’s time to assess your company’s capability to actually achieve the pursued goals. Conduct a quick SWOT analysis for all goals you’ve set to take into account internal and external factors.

3. Strategy Formulation - Effort and Impact (and KPIs)

• ·         Determine what resources the business currently has to reach the defined goals
• ·         Identify any areas for which the business must seek external resources
• ·         Goals should be prioritized by their importance to your success

4. Strategy Implementation - Goals and Tasks

• ·         Be clear about everyone’s responsibilities and duties, and how they fit in with the overall goal
• ·         Secure the resources needed to execute tasks

Every employee involved receives a set of responsibilities and tasks to be performed. Every single task is connected to a goal. And performing every task as planned should give you a decent shot at achieving the goal.

5. Evaluation and Control

• ·         Determine your progress by measuring the actual results versus the plan
• ·         If the strategy is not moving toward its goal, take corrective actions
• ·         Any data gained in this stage should be retained to help with any future strategies

                                                                                                            (Boardview, 2016)

References

Boardview. (2016). The Five Stages of the Strategic Management Process Boardview. [online] Available at: https://boardview.io/blog/five-stages-strategic-management-process/.

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Investopedia. (2019). Strategic Management. [online] Available at: https://www.investopedia.com/terms/s/strategic-management.asp.

SearchCIO. (2019). What is strategic management? - Definition from WhatIs.com. [online] Available at: https://searchcio.techtarget.com/definition/strategic-management.

Zigu (2011). Strategic Management Process Definition | Marketing Dictionary | MBA Skool-Study.Learn.Share. [online] MBA Skool-Study.Learn.Share. Available at: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/7247-strategic-management-process.html.

The Strategic Lenses

Strategic lenses

Different strategy lenses used to analyzes the Organization’s strategic issues. Strategic lenses are a concept of strategic management. It is different ways of viewing strategy development. It examines the flow of tasks and information, or how you get things done. Each lens reveals many different traits and qualities. Using the strategic lens, one looks to optimize workflow to meet the goals and objectives of the organization. This strategy can be viewed and implemented on a corporate level; they are strategy as design, experience, ideas, and discourse. (Francis, 2014)

1.      Strategy as a Design

This takes the view that strategy development can be a local process in which the forces and constraints on the organization are weighted carefully through analytic and evaluative techniques to establish a clear strategic direction. This creates conditions in which carefully planned strategy implementation should occur.  They are rationally, thoroughly researched, analytically considered strategies made by experts.

It is a top-down approach to strategic decision making. It takes no input from manager involved in the day to day operations. Strategic decisions are imposed on them, they may resent this approach. It is suitable in a fast and rapidly changing environment where decision making is separate from implementation.

2.      Strategy as Experience

Here the view is that the future strategy of organizations are heavily influenced by the experience of the managers and others in the organization based on their previous strategies. Strategies are driven not so much by clear-cut analysis as by the taken-for-granted assumptions and ways of doing things embedded in the culture of organizations.

The experience lens views strategy development as the outcome of the individual and collective experience of people in organizations who influence strategy or make strategic decisions and the taken-for-granted assumptions.

In summary, the experience lens provides a view of organizations as cultures within which people make decisions about or influence strategy on the basis of their cognitive (or mental) models and established ways of doing things (or routines).

3.      Strategy as Ideas

Neither of the above lenses is especially helpful in explaining innovation. Then how do ideas come about? The idea lens emphasizes the importance of promoting diversity in and around organizations, which can potentially generate genuinely new ideas.

It is an approach that requires innovation. These ideas can emerge from any level or anywhere in the organization. It requires encouragement to employees to give their views and suggestions and a mechanism to accommodate these ideas into a strategy.

It is suitable in an unpredictable macro-environment, where the ability to respond to unforeseen situations is required. It can be used organization developing new products or breaking into different markets. It can be used in innovative industries where innovation is the key to success. E.g. telecommunication industry and the fashion industry. It can also be used in newly established business where owners as well as employees have little previous knowledge and experience. They can benefit from the pooling of knowledge and experience.

4.      Strategy as Discourse

This lens sees strategy in terms of language. Managers spend most of their time communicating. Companies communicate their strategies by presenting year reports, vision statements, or press releases. Managers and shareholders debate about strategy when they discuss the future of the firm. We can see strategies as stories, including a beginning (the present) and an end (a successful future). Therefore command of strategy language becomes a resource for managers by which to shape ‘objective’ strategic analysis to their personal views and to gain influence, power, and legitimacy.

                        

Reference

Altaf, U. (n.d.). The Four Lenses Strategic Framework Toward an Integrated Social Enterprise Methodology. www.academia.edu. [online] Available at: https://www.academia.edu/9651202/The_Four_Lenses_Strategic_Framework_Toward_an_Integrated_Social_Enterprise_Methodology.

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Francis, A. (2014). Strategic Lenses. [online] MBA Knowledge Base. Available at: https://www.mbaknol.com/strategic-management/strategic-lenses/ [Accessed 12 May 2020].

Autocratic leadership and branch management

Autocratic leadership and branch

Introduction

Autocratic leadership is a management style wherein one person controls all the decisions and takes very little inputs from other group members. Autocratic leaders make choices or decisions based on their own beliefs and do not involve others for their suggestions or advice. (https://economictimes.indiatimes.com) Autocratic leaders impose their decisions, using their position to force people to do as they are told. (Armstrong M, 309)

Autocratic leadership is a form of management style in which one leader or member of the organization takes decisions on behalf of the company. This type of leadership style is seen mostly in businesses that are relatively small with fewer employees. This type of leadership style is only effective in organizations where the nature of work requires quick decision-making. The sole responsibility of the decision and the outcome is with the leader.

(https://economictimes.indiatimes.com)

Characteristics of Autocratic Leadership

v  The leader has all the power and authority to make decisions on any topic.

v  The leader assigns all the task and delegates responsibilities to their group member without consulting them.

v  In this style of leadership, leaders believe more in giving rewards and punishment rather focusing on motivating employees.

v  The leader takes all responsibilities and credit for the accomplished task.

v  The leader has no confidence in their employee’s ability and closely supervises and controls them.

Advantage and Disadvantage of Autocratic leadership

Here are some advantages and disadvantages to the autocratic leadership style:

Advantages of Autocratic leadership

v   Effective when decisions must come quickly, without time to consult others

v Prevents businesses or projects from becoming stagnant because of poor organization or lack of leadership

v  Keeps individuals, groups or teams from missing important deadlines

v  During stressful periods, autocratic leaders can be more effective, and their teams appreciate their leadership

Disadvantages of Autocratic leadership

v  Invites potential abuse by overly powerful personalities

v  Can stifle staff and discourage team creativity

v  Modern employees may not react well to authoritarian leadership

v  Can discourage open communication between leaders and subordinates

 Application of autocratic leadership

Exceptional leaders adopt the style that fits their vision, behavior and personality. The autocratic leadership style still works well in some institutions, such as the military, manufacturing, restaurants and companies with aggressive sales quotas.

This is more suitable for bank branch when the majority of staff newly recruited. A leader who centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation. (Robbins et al, 2013)

Whether it’s an athletic shoe company like Nike or a social media powerhouse like Facebook, autocratic leadership is sometimes vital. Autocratic leaders help guarantee deadlines are met by training people properly to assume responsibility for their respective roles and to reach their goals.

At the end of the day, autocratic leadership shares the same objectives as other styles. It’s all about achieving success.

Where to use:

v  This style of leadership is used in an organization where strong centralized control is required. For example in a Military organization.

v  Organization in which there is a fixed set of rules and structures.

v  An extremely large number of employees is to be handled.

v  Organizations in which employees are new, inexperienced, lack of qualification, and lack of skills.

When it is used:

v  When quick decisions are required.

v  It is used during emergencies and dangerous situations.

v  It is used when the poor performance of employees needs to be corrected.

Conclusion

Autocratic leadership is one of the most traditionally relied upon models of leadership in the world. This form of leadership places the decision-making within the hands of a central figure, who rarely seeks input from others and attempts to make the best decision for an organization out of his or her own expertise and knowledge. This may be effective until the staff group with experience and knowledge. This should be moved to the correct style with the expansion of the branch and maturity of the staff. If not it can also be a leadership style that discourages employee motivation in long term.

References

Armstrong, M., (2006). Hand Book of Human Recourse Management Practice. 10th ed. [S.l.]: Kogen Page, pp.493-502.

Robbins, S., DeCenzo, D., 2001. Fundamentals of Management Essential concepts and applications. 3^rd ed. India: Pearson Education, pp 343-371

Robbins, S., DeCenzo, D. and Coulter, M., 2013. Fundamentals of Management Essential concepts and applications. 8th ed. USA: Pearson, pp 302-303

https://economictimes.indiatimes.com/definition/autocratic-leadership#:~:text=Definition%3A%20Autocratic%20leadership%20is%20a,for%20their%20suggestion%20or%20advice.

https://plopdo.com/2018/12/29/what-are-characteristics-and-applications-of-autocratic-leadership/

Advantages and Disadvantages of Transformational Leadership

Advantages and Disadvantages of Transformational Leadership

Introduction

The goal of any type of leadership is to get employees to perform beyond the expected. While transactional leaders do this by meting out rewards and punishments, transformational leaders do this by influencing the values and attitudes of others. It takes a special type of person to deliver an inspiring vision of the future, and there are pros and cons associated with this leadership style.

Transformational leadership

The transformational leaders are effective because of several reasons such as the leaders may be charismatic in terms of inspiring the employees, the transformational leaders may meet the emotional need of the employees or they may stimulate the employees intellectually (Bass & Avolio, 1994).

The personalized relationship developed by a transformational leader develops an environment in which the employees feel happy and hence, their overall performance is improved. Hence, it can be said that transformational leadership and organizational performance are positively associated and transformational leadership has a significant impact on the performance of the organization. (Jyoti and Dev, 2015)

The idealized and behavioral charisma of the transformational leaders motivates the followers to identify with the leader. (Jyoti and Dev, 2015)

Advantages and Disadvantages of Transformational Leadership

·         Transformational leadership lowers turnover costs.

·         It is a leadership style which engages the full person.

·         Transformational leaders create and manage change.

·         New corporate visions can be quickly formulated.

·         It encourages ongoing learning and development.

·         Transformational leaders are excellent communicators.

·         It quickly changes low-morale situations.

·         Transformational leaders understand relationships.

·         It is a leadership style which focuses heavily on ethics.

·         Transformational leaders ask the important questions.

·         This leadership style takes pride in the outcomes achieved.

·         Transformational leaders seek to avoid coercion.

·         People are treated as individuals.

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Disadvantages of Transformational Leadership

·         Transformational leaders can develop negative outcomes.

·         There must be continual communication available.

·         It requires constant and consistent feedback.

·         Transformational leaders need their followers to agree with them.

·         Risks are taken through transformational leadership can be disruptive.

·         It can lead to employee burnout.

·         Transformational leaders often focus on individual needs.

·         It is a leadership style that can focus on deception.

·         Transformational leaders are not always detail-oriented.

·         It is a leadership style which may ignore certain protocols.

                                                        (Gaille, 2018)

The Famous Transformational Leaders

Companies founded by transformational leaders include Apple, IBM, Intel, and Microsoft. Steve Jobs, Bill Gates and other hardware and software company leaders have transformed not only the computer industry but the way other businesses work as well.

Transformational leaders in finance include business magnate Warren Buffett, Peter Lynch of Fidelity and John Bogle of Vanguard. By offering people a vast array of different ways to invest their money, these leaders have transformed the financial industry. These leaders recognized the market for low-cost ways to invest, such as mutual funds. Additionally, they've created opportunities to bank and trade online. (Your Business, n.d.)

Transformational leadership and ABC bank

The Bank’s well-spared network of branches places it in a unique position to support the unbanked segments of the market through lending and deposits products. Branch managers and relationship managers maintain relationships with the society directly. Their management style directly affected the service level and it will attract customers and increased business volume and profitability.

The bank consists of over six hundred branches all over the country and most transformational leaders are a success as managers and perform well with the corporation of subordinates.

  

Conclusion

Transformational leadership enhances the motivation, morale, and performance of followers through a variety of mechanisms. These include connecting the follower's sense of identity and self to the mission and the collective identity of the organization; being a role model for followers that inspires them; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that optimize their performance.

References

Annual Report ABC Bank 2018

Bass, B.M.; Avolio, B.J. Improving Organizational Effectiveness through Transformational Leadership; Sage Publications: Thousand Oaks, CA, USA, 1994.

Chron.com. (2019). Advantages and Disadvantages of Transformational Leadership. [online] Available at: https://smallbusiness.chron.com/advantages-disadvantages-transformational-leadership-20979.html.

Gaille, B. (2018). 22 Advantages and Disadvantages of Transformational Leadership. [online] BrandonGaille.com. Available at: https://brandongaille.com/22-advantages-and-disadvantages-of-transformational-leadership/.

‌‌ Jyoti, J., and Dev, M. (2015). The impact of transformational leadership on employee creativity: the role of learning orientation. Journal of Asia Business Studies, [online] 9(1), pp.78–98. Available at: https://www.deepdyve.com/lp/emerald-publishing/the-impact-of-transformational-leadership-on-employee-creativity-the-04uFNGE5He [Accessed 15 Dec. 2019].

Your Business. (n.d.). Authoritative Leadership Styles. [online] Available at: https://yourbusiness.azcentral.com/authoritative-leadership-styles-16647.html.

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