Developing Strategic Management and Leadership Skills

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Developing Strategic Management and Leadership Skills

Table of Contents
Abstract......................................................................................................................................
Introduction................................................................................................................................
1.1 Company Overview....................................................................................................3
1.1.1

Vision.............................................................................................................3

1.1.2

Mission...........................................................................................................3

1.1.3

Values.............................................................................................................4

2.0

Leadership status analysis in Cargills and impact of it on strategic management..........

2.1

Linkage between strategic management and leadership........................................5

2.2

Impact of management and leadership styles on strategic decisions.....................7

2.3

How leadership styles can be adapted to different situations................................7

3.0

Theoretical Framework of Management & Leadership..................................................

3.1
Impact that management and leadership theories selected have on organizational
strategy.............................................................................................................................9
3.2
4.0

A leadership strategy that supports organizational direction...............................10

Current Leadership and Management Requirements & Plan for future development
12

4.1

Appropriate methods to review current leadership requirements........................12

4.2

Plan for the development of future situations requiring leadership....................14

5.0
5.1

Leadership Succession Planning...................................................................................

Plan for the development of leadership skills for a specific requirement...........16

5.2
Report on the usefulness of methods used to plan the development of leadership
skills 16
6.0

Conclusion and Recommendation.................................................................................

References................................................................................................................................
Web References........................................................................................................................

Developing Strategic Management and Leadership Skills

Abstract
In an organisation employees can be found with different kind of behaviors and attitudes
where with different thinking patterns. Therefore importance of having a proper Strategic
management and leadership can be considered as highly important other processes in an
organisation. It is important to take into account the environment in which the company
operates. In finding the relationship between strategic management and leadership it is
noticeable that leadership is what links strategic management and our objectives to be
achieved. Identifying how the leadership and strategic management are connected is
important and also the impact of them in making better strategic decisions. At the higher
level management of an organisation they set goals and persuade the other employees on
how to achieve the goals set and ensure they will be with timeline as higher level
managers and therefore it is very much critical for higher level management of the
company to adopt to different situations with different leadership styles which would be
important to deal with different people in the organisation.
Key Words:
Strategic Management, Leadership, behavioral leadership, situational leadership,
transformational

leadership,

transactional

leadership,

authentic

leadership,

entrepreneurial leadership, Charismatic leadership style, Autocratic leadership style,

Laissez-faire leadership style, Behavioral theories, Situational and contingency theories,
Transformational leadership theory, Culture, Contingent Approaches, Feedback mode,
Learning

Developing Strategic Management and Leadership Skills

Introduction
Leadership is the main factor that plays a critical role in driving the company to in
achieving different targets and gaining competitive advantages over others. In the present
world leaders are much aware of what is happening in the dynamic environment as they
see things beforehand. It is important to develop skills for leaders to meet with more
challenges and cope with them better while meeting demands in the dynamic business
environment.. Therefore it would be important for them to identify different skills their
employees possess and identify the need to develop them in order to face future
challenges better. In improving them there could be number of ways and identifying the
best of them would be tricky but as those are identified a company will be able to face
challenges easily than ever and compete in global market more efficiently and effectively.

Developing Strategic Management and Leadership Skills

1.1 Company Overview

Cargills PLC is a Sri Lankan grocery and general merchandise retailer headquartered in
Colombo, Sri Lanka. Cargills has its operations spread in all districts in Sri Lanka. In Sri
Lanka Cargills is considered and listed as the grocery market leader, and also known as
the second largest retailer in terms of the profit they generate after Keels. In retailing they
operate under few sub brands which are Cargills Food City Supermarket chain with
approximately 266 outlets, Cargills Express which are Convenience Stores, Cargills Book
City- Book Shops and Cargills Big City- Hypermarket.
Their main motto in the organisation is "pick on your way home" which has helped them
to reach success all over Sri Lanka which helps to reach all the customer segments in Sri
Lanka. In Cargills as they operate all over the Sri Lanka, different people from different
cultures with different skills set get to work together and managing them from the top
level to lower level require lots of different skills while managing day to day work.
Therefore it has become important to assess different situations and different personalities
to manage companys employees as well as companys business activities which heading
for their ultimate objectives (Cargills, 2015).
1.1.1

Vision

To be a Global Corporate Role Model in Community - Friendly National Development

1.1.2

Mission

Serve the Rural Community, our Customers and all other stakeholders through our core
business - food with love - and other related businesses, based on our three main
principles of:

Reducing the cost of living

Enhancing youth skills
Bridging regional disparities,

by enhancing local and global markets.

1.1.3

Values

In Cargills their values are aligned with the name of their company to give a more
meaningful value creation and to show what they really stand for:
3

Developing Strategic Management and Leadership Skills

Customer focused - Focused on customer delight

Accountable - An accountable and responsible corporate citizen
Respect - Respecting our culture, our country and the law
Green - Bringing our business in line with 'Green' concepts of Reduce, Reuse and

Recycle
Innovative - Consistently innovative to ensure our core principles resonate in our

business
Love - Spreading and winning Love through food
Lead - Leading Corporate thinking and strategy
Serve the nation - Ultimately serving Sri Lanka true to our promise of being the
"Pride of the Nation"

1.1.4

Organisation Structure and Process

The structure of Cargills PLC clearly defines the roles of employees and lines of
authority. By following divisional structure approach Cargills PLC has a flat structure
which enables to have wide span of control. Effective communication and coordination
among the employees is the key for having good Superior subordinate relations. The
mission statements of Cargills PLC constitute the culture of the company. The main aim
of Cargills PLC is to provide product and services at lower cost than any competitor.
Cargills PLC's management structure and culture is modelled by early founders principle
and values. Their focuses on the executives to be in constant touch with the customers
and store operations.

Developing Strategic Management and Leadership Skills

Figure 1: A simple structure of a Cargills store

Retail is the backbone of Cargills (Ceylon) PLC groups success. Therefore the retail
sector holds a larger portion of the groups profits. Cargills always had innovative ideas
which make them developed over the years. One of the classic examples is their
diversification strategy which started in 2002 by investing in dairy processing plant and
benefiting dairy farmers in Sri Lanka. When considering the revenues and the profits of
the group, they have also increased simultaneously with the profit increase of the retail
sector.

Developing Strategic Management and Leadership Skills

2.0

Leadership status analysis in Cargills and impact of it on strategic

management
It is important to assess how the leadership is formed in Cargills while identifying how
the strategic management and Leadership are connected to each other. In that impact of
management and different leadership currently at practice in Cargills.
2.1

Linkage between strategic management and leadership

Strategic management and leadership are two terms that are related to each other when it
comes to any organisation and their activities. Firstly it is important to identify these two
terms separately in order to analyse the linkage between them.

Strategic Management According to Neil (2011) Strategic management can be

identified as In order to pursue objectives set for the company, with the resources
that are being used by different business units which are financial, manufacturing,
marketing, etc. set of policies that are being used by the senior management of the
company. Strategic management concepts are expected to guide the scope and
direction of the company while taking the environment they operate into accounts.
Also this can be described as the way a company achieve their objectives which
also help to lay a better foundation to the company over the long term (Morris,

1999).
Leadership is about, a highly skilled and senior employee or the employer leading
the organisation to achieve the previously set goals and objectives. Even though
there are number of ways to describe this in overall terms its about providing
guidance to a team to achieve an pre-identified target. As per the Association of
Business Executives (2007), Leadership is a process by which individuals are
influenced so that they will be prepared to participate in the achievement of
organizational or group goals.

As per Mintzbergs 10 roles a manager needs to have important 10 skills in doing their
day to day work while taking decisions in terms of the future of a company which can be
categorized into three different sections.

Developing Strategic Management and Leadership Skills

Interpersonal Category
1. As a manager it is important to have social, ceremonial and legal responsibilities and
be a Figurehead. And it is important to be a source of inspiration.
2. Be a Leader where the manager gives the leadership for the team and manage the
performance and responsibilities of everyone in the group.
3. Manager needs to be a Liaison where he or she must communicate with internal and
external contacts.
Informational Category
4. As a manager it is important to seek out information related to the organization and
industry, looking for relevant changes in the environment. Manager needs to monitor
the team, in terms of both their productivity, and their well-being.
5. Be a Disseminator where the manager communicate potentially useful information to
colleagues and the team..
6. Manager needs to be a Spokesperson where he or she represent and speak for their
organization.
Decisional Category
7. As a manager, be an entrepreneur is important where to create and control change
within the organization which is about solving problems, generating new ideas, and
implementing them.
8. Disturbance Handler is another important skill a manager needs to have in directing
a company or a team to their set targets and objectives.
9. Manager needs to be successful Resource Allocator to drive the team ahead
successfully..
10. As a manager it is important to be Negotiator where take part in and direct the
company and the teams in negotiations with different parties.
When it comes to Cargills, their process insist that when appointing a leader, they should
not merely rely on qualification but past experiences and charisma of a person should be
looked at. Also in that we can identify the link of leadership to strategic management as a
leader should be able to use strategies to manage the company while connecting
employees goals and companies goals together. As per Mullins (2005), management or
the leaders of the company will be liable in utilizing their resources properly to achieve
their goals, along with strategic management techniques, and their successful leadership
and guidance will result in company achieving their goals in the way they want.

Developing Strategic Management and Leadership Skills

2.2

Impact of management and leadership styles on strategic decisions.

As it is understood about the link between leadership and strategic management, it is

important to identify how well a persons leadership and management styles could affect
the strategic decisions they make on the subject of companys business activities. It is
considered that leadership and management styles have the biggest effect on the
companys future at Cargills (Tittemore, 2003). When appointing a leader/manager at
Cargills, they consider the activeness and experience of the person along with their
leadership styles where there have been a huge impact on the decisions they make. Due to
this ability to adopt to different situations and ability to adopt to different ways of work,
things have become easier in Cargills in making strategic decisions for the selected
people. This is reflected on the past decisions and the ability shown to get their
subordinates to work along with them to get to the targets.
In Cargills as the main goal of the company is to provide the maximum satisfaction to
their customers while maintaining their position in the market as a grocery and general
merchandise retailer while expanding their business. (Miner, 2005). At each level of the
organisation leadership and management styles are carefully assessed at Cargills as the
ultimate goal to be achieved must be carefully guided. In that different leadership and
management styles have helped to set goals and provide the needed awareness to middle
level managers to go for their goals while they can identify enable their lower level
managers to achieve their targets with their leadership traits. There are different
leadership styles that can be identified at different levels when setting the targets and
making strategic decisions.
As per Hackman and Johnson (2009), management and leadership styles have a direct
impact on making plans and strategies for the company and even in executing that, where
it is important to have right leadership qualities in order to have a proper control in the
work force, and other resources while controlling, coordinating and guiding everyone to
achieve what is set in preparing those strategies. To make everything successful, correct
leadership will play a major role in both failures and successes of the company (Barrat,
2000).

Developing Strategic Management and Leadership Skills

2.3

How leadership styles can be adapted to different situations

As per Joyce and Woods (2001), "Leadership style is the typical approach of a particular
person used to lead people." For a company it has become critical for employees at every
level including employees/mangers/team leaders to change their leadership styles and the
way of work according to different situations. Therefore it is important to look at different
leadership that currently being adopted by employees at different levels in Cargills.

Autocratic leadership style At the higher levels of management in Cargills quite

often this style can been seen where in this as a leader they usually command their
employees on what to do and how should they need to do it, and rarely they allow
others to participate in the decision making process and giving no chances to

question regarding the process.

Charismatic leadership style In some areas where it is important to influence and
motivate the work staff some higher level managers use charismatic leadership
style in a way to be with employees mainly due to higher level personality they

show and different characteristics shown (Bennis, 1989).

Laissez-faire leadership style This can be considered as a scenario where in
Cargills managers try to delegate power and also the right to make different
decisions in different situations to their employees. This is often take place at the
middle level management where they try to give powers to lower level team
leaders and different situations on their own where this can be useful to higher

level management to identify quality leaders at lower levels (Martindale, 2011)..

Transformation leadership styles In this some of the managers try to take the
lead in doing different activities while setting examples. As for an example people
will not wait until someone comes and do something but they themselves go and

finish the task.

Participating leadership styles In Cargills this leadership style is often
appreciated where in the past this has resulted in positive outcomes and greater
profitability with the better engagement where this has been a clear reason for
improving performances of employees (Schermerhorn et. al., 2002).

Therefore we could see that a good leadership with effective management is important in
going for success to any organisation and assessing the impact is important as well.

Developing Strategic Management and Leadership Skills

3.0

Theoretical Framework of Management & Leadership

In this section is intended to identify the concepts, approaches and different theories
related to strategic management and leadership how in Cargills these are formed.
3.1

Impact that management and leadership theories selected have on

organizational strategy
In an organisation employees can be found with different kind of behaviors and attitudes
where with different thinking patterns. This is due to they are being from different
cultures and they see things differently to one another and because of this, they will tend
to carry out works differently to one another (Johnson and Hackman, 2003). Therefore it
will be important to manage them according to the way they behave and also it will be
important to take a look at how different leadership theories will be applicable to the
organisation under different situations. Theories on this will be categorized based on the
type of leaders and who are the followers and also based on the type of the situation.

Behavioral theories: As per this theory actions will be given more attention than
words come out. A leader will be considered as a real leader just on the qualities
he or she has but also based on the ability to guide, teach and observe others to get
the best out of them (Miner, 2005). In this theory it suggests that leaders behavior
separate him or her from the rest of the team and based on that others will be able
to understand what are intentions of the leader. In Cargills as for an example a
situation where when a person is appointed with a task usually the manager will
not try to guide the person to do it but will keep on monitoring him/her and make
sure the person will notify his monitoring so the work will be done (Brindley,

2004).
Situational and contingency theories: As per this a leader will take necessary
actions based on the situation and they will change the way they take decisions
based on the situation. As for an example they will change from one leadership
style to another in a quick time such as in urgent situations they will use autocratic
leadership style and try to take the decision quickly which will be based on his/her
experience and where the situation requires the ideas from others leader will
change to a more of a democratic style. As this relates to the situations
contingence this is also known as contingency theories (Bennis, 1989).
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Developing Strategic Management and Leadership Skills

Transformational leadership theory: According to this theory a leader will try

motivate and provide the needed inspirations to their workforce while letting them
to follow the leader. The idea behind this is to give others a chance to learn from
the leader and to give them the experience they need where it is important for the
leader to have a clear vision while guiding the team. In this leader will stand in the
middle and will help anyone who is in need of help (Jenkins, 2001).

3.2

A leadership strategy that supports organizational direction

From the above analysis, it is understood that the ability of Cargills to adopt different
styles in leadership in accordance with the situation. In creating a proper leadership
strategy that drives the organisation to their targets, it is important to have the followings
in it.

Need of a strong culture:

In order to reach targets over the long term, in a company leaders or managers need to
build a strong culture among the workers. In that all the employees should have a role to
play and this will be helpful taking the company forward (Foster, 2002). In this leadership
strategy, in creating a culture it is important give prominence on the team work,
coordination at all levels, necessary support from the higher level management of the
company, etc. As the time goes this strategy should focus on strong and positive mission
and vision of the company as the employees will have a better idea on what the company
is intended to achieve and their part of it in doing this, and other objectives of the
company in the long term (Greene, 2005).

Influencing nature:

Leadership strategy should be able motivate the workforce where they should be able to
reduce the gap between personal goals and the companys goals, so the motivation will be
high to get to overall goals. Also this will help the company to have lesser turn over,
highly efficient work rate, and also a productive time at the work (Morris, 1999).

Provide with right level of authority

In setting the right strategy it is also important for the company to incorporate
transformation strategies where leaders can motivate their employees with examples
11

Developing Strategic Management and Leadership Skills

while setting examples. In creating this aspects employees will need to be provided with
some level of authority which will set their heads high to achieve goals. With this
company will have a better chance to convert their opportunities into strengths while
converting threats into opportunities where they could eliminate weaknesses as well
(Whitcomb, 2000).

Use of contingent approaches

In setting the right leadership strategy it is important to consider the use of contingency
approaches where it will help to go above everything stated if the environment become
volatile and unstable to go ahead when nothing can be predicated well and in this use of
contingency approaches will be really important. In most of the companies what really
plays important part in almost all the situations is that contingency theory when facing
challenges from outside the environment as well from the internal environment it is
important for leaders to use this approach where as it suggests since there is no rule to
follow leaders will need to come up with others things mentioned in creating a strong
leadership culture (Tittemore, 2003).

12

Developing Strategic Management and Leadership Skills

4.0

Current Leadership and Management Requirements & Plan for

future development
4.1

Appropriate methods to review current leadership requirements

A leader can be identified as the person who take the lead of a group of individuals in
order to get to their targets in the most effective way while motivating them really well,
which in organisational terms can be considered as a crucial role. As leaders need to see
the future and improve their leadership skills it has become critical to identify and review
the current requirements to leadership where there are few methods available for a
company like Cargills to do it (Martindale, 2011).

Blake and Moultons managerial grid: This method is considered as one of the
best method to review skills in leadership and identify where companys current
skills lie around. In this it will identify five different types of leadership styles and
according to that it could suggest what leaders will require at the present to take
the company forward (Foster, 2002).

Figure 2: The Blake Mouton Managerial Grid

o Impoverished management Leader become really ineffective when they dont

give enough attention to results as well as to the people they work with in what
they are doing.
o Country Club Management In this mostly concerned with feelings of people and
there is no really concern for results which end up in failures.

13

Developing Strategic Management and Leadership Skills

o Middle of the road management These leaders have a more of a balanced
approach in terms of results and concerns for people. In this the problem is neither
production nor people needs are fulfilled fully.
o Authority / Compliance Management these leaders are given high concerns about
the production but little or no concern about the people.
o Team Management these leaders are known to be the best and they are concerned
about both peoples feelings and production needs at the maximum level.

360 Feedback mode

The concept behind this method is to use an appraisal system and a feedback method,
which will help to assess the level of each and every individual working in the
organisation that includes subordinates and peers, customers and if possible external
customers as well. Feedback gain from this will help leaders to overcome weaknesses and
improve strengths.

Figure 3: Mullinss 360 degree feedback cycle

Mc. Gregorys Theory X and Theory Y: Theory X is mostly task oriented while
theory Y is relationship oriented. And based on the type identified management
can plan for future improvements (Miner, 2005).

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Developing Strategic Management and Leadership Skills

Figure 4: Theory X and Theory Y

Based on the type identified necessary actions needs to be taken and prepare plans for the
development of future situations requiring leadership.
4.2

Plan for the development of future situations requiring leadership

Leadership can be considered as the most important aspect in taking the company to
achieve targets set and in gaining a competitive advantage over the other companies. In
todays world managers and leasers are aware about the current dynamic environment as
with the past experience they can sense before something happens (Jenkins, 2011). In
order to achieve competitive advantage over the competitors in the same marker and to be
more competitive nowadays companies tend look for new strategic options such as
mergers, take overs and many other different options which would help them to gain a
power which competitors are lacking in. Apart from that in situations such as new
technologies coming in, new laws are being implied, as a company like Cargills
competing in the all over the Sri Lanka level it is important to have few different
alternative plans to face each and every scenario that backed up by a better leadership.
Therefore it is important for them to plan for these different situation beforehand to face
them better and turn out these situations to opportunities.

Adopting new technologies and performance levels: In todays world

technologies are being replaced with newer ones more frequently compared to
past and for a company it will be critical to adopt into these dynamic environment.
When it comes to the workforce there could be situations where they refuse new
changes coming in due to various reasons such as insecurity of jobs, unwillingness
to change, scared of changes and many other reasons. In these situations it will be
important to have a leader with different skill levels and with different leadership
15

Developing Strategic Management and Leadership Skills

styles to adopt into different scenarios. For Cargills this could be virtual marketing
and supermarkets will be replaced with a warehouse and a virtual market

(Mullins, 2005).
Recession: A recession is a possible scenario on any given day for a company
when past is considered and with the a highly dynamic economic environments
financial difficulties can be foreseen. In these situations it will be important to get
ready face such situation and this is where strong leadership is required with

number of qualities and the ability use contingency theories.

Mergers and acquisitions: This is when organisation take a step forward in
increasing their market share through taking over other companies and making
partnerships with others. Therefore in these situations a strong leadership is
required to make sure the actions taken are correct and foresee the position of the
company and its employees in the future (Johnson and Hackman, 2003).

16

Developing Strategic Management and Leadership Skills

5.0

Leadership Succession Planning

Leadership succession planning is practiced in most of the organisation with the intention
of aligning their companies strategies along with leadership of the company.
5.1

Plan for the development of leadership skills for a specific requirement

According to (Pankaew, 2013) Leadership is the art of leading others to deliberately

create a result that wouldnt have happened otherwise. Therefore it can be understood
that the new need for a proper development of leadership skills can be crucial to match
different scenarios and requirements for any organisation in todays fast changing
environment. Following are few ways that leaders can try to develop their skills.

Formal learning For a company like Cargills when it comes new supermarkets,
products, new services, etc. offering it will need to train their workforce to work
with new ways of work and identify how to carry out their work. One way in

doing this is through a formal training or class room teaching (Jenkins, 2001).
On the job training This is a quite popular method among companies like
Cargills where it is considered as one of the most effective method as well.
Companies in this method send employees to the working area in order to train
them rather than giving a training where in this method not only a handful of

training will be given but cost will be saved on extra training sessions.
Organizational Learning This is a learning method in different organisations
where mostly appreciated by employees in the companies and quite often seen as
an important way to provide learning. In order to challenge other companies and
compete well companies have empower their workers and leaders to a greater
level as human asset is seen as the most important one in any organisation (Foster,
2002).

Therefore it is important to develop leadership skills and through the methods mentioned
it is possible to go ahead for leadership development.
5.2

Report on the usefulness of methods used to plan the development of

leadership skills
As it is understood developing different skills in leaders to face new challenges and deal
with those in a better while taking the team and organisation forward in the current
17

Developing Strategic Management and Leadership Skills

dynamic environment. As understood in previous sections regarding current and future
levels of requirements under leadership it is vital methods which are identified for to
improve and enhance leadership skills to be effective and useful where then only the
desired objective could be achieved (Bennis, 1989).

Formal methods - Formal method are seen as a productive way to develop skills and
gain a better knowledge where an understanding can be gained on where employees
need development in their skills set and will depend on different development

activities organisation undertake.

Training In Cargills this method is really effective and authentic as well. When the
training is given on the job then employees can learn better and gain more experience

to be a better employee and a leader.

Experimental learning This is where in Cargills they can engage employees to
activities such as critical thinking, problem solving and taking decisions for ongoing
problems. This method further involves in brainstorming and feedback sessions
where employees can apply their knowledge and skills in different situations (Foster,

2002).
Self-learning one of the best method for anyone to learn and develop their skills
where in this it is important to get the full use of this method and importance of this
method is employees will not need go after higher level employees in order to

enhance their skills.

Coaching and mentoring both of these methods are focusing on the individual in
improving morale, their motivation level and their influence level which will mostly
will result in lesser staff turnover and better productivity (Pearce and Conger, 2003).

The above mentioned methods are important ways for Cargills management team in
developing leadership skills of their employees.

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Developing Strategic Management and Leadership Skills

6.0

Conclusion and Recommendation

Cargills as a multinational corporation, have been able to work through different cultures,
countries and work with different people along the time. As a place where people visit
quite often compared to some other companies people might see Cargills in a different
way and it is very much crucial for them to see this and understand how people look at
them. As they operate in number of countries the situation can get complexed with
different cultures and perspectives involved. Because of that it will be very much crucial
for employees in their company to know the requirement for employees in order to work
these people and become better leaders in order to face upcoming challenges in a better
way. In improving their skills there can be different ways and selecting the best of them
will be very much crucial for them and if they can get this right Cargills will be able to go
ahead achieve beyond the targets they have set and easily compete with other players in
the market in a more effective way.

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Developing Strategic Management and Leadership Skills

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Web References
History

of

Cargills,

(Online),

Available

from:

http://www.cargillsceylon.com/AboutUs/OurHistory.aspx, [Accessed on-22-022016]

Company

Profile

of

Cargills,

(Online),

Available

from:

http://www.cargillsceylon.com/AboutUs/CompanyProfile.aspx , [Accessed onAccessed on-22-02-2016]

22