Unit: 1

Developing Strategic Management and Leadership Skills

ABSTRACT
This report has been prepared in order to analyze the importance of strategic
management and leadership in an organisation. For preparing this report, Samsung
Company, headquartered in South-Korea has been considered and the analysis has been
done to understand how the organisation and its managers administer and lead their
teams to achieve organisational objectives. In order to analyse this, a critical evaluation
and investigation on the effectiveness of present leadership and management styles
adopted by Samsung has been conducted. In this report, the relationship between
strategic management and leadership in Samsung is described and also analysis of the
impact of various management and leadership styles on strategic decision making is
done. Finally, some suggestions have been suggested to Samsung on how leadership
styles can be adapted to meet the challenges taking two different situations in the
organisational context.
Contents
ABSTRACT ........................................................................................................................................................ 1
ASSIGNMENT 1 ............................................................................................................................................... 2
TASK-1................................................................................................................................................................ 2
1.1 Relationship between strategic management and leadership.......................................... 2
1.2 Impact of management and leadership styles on strategic decisions ........................... 3
TASK-2................................................................................................................................................................ 5
1.3 Analysis of application of various leadership styles to distinct situations .................. 5
ASSIGNMENT 2 ............................................................................................................................................... 7
TASK-1................................................................................................................................................................ 7
2.1 Leadership and Management styles............................................................................................ 7
2.1.1 Review of the impact of leadership and management styles .................................... 7
2.1.2 Evaluation of the effectiveness of leadership and management styles and
relation to the aims and objectives ................................................................................................ 8
2.2 Creating a leadership strategy to support organizational direction .............................. 9
TASK-2.............................................................................................................................................................. 10
3.1 Review of current leadership ...................................................................................................... 10
3.2 Planning for future leadership at NHS ..................................................................................... 10
4.1 Case studies ........................................................................................................................................ 10
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4.1.1 Colchester hospital .................................................................................................................. 10

4.1.2 The South London Health care trust ................................................................................. 11
4.2 Usefulness of leadership styles at NHS departments ......................................................... 11
Conclusion....................................................................................................................................................... 12
Reference......................................................................................................................................................... 12

ASSIGNMENT 1
TASK-1
1.1 Relationship between strategic management and leadership
According to Gartenstein (2014) strategic management is the top level management
process of describing a companys objectives, implementing standards and plans to
obtain these objectives, and matching resources to develop the plans. It develops an
inclusive path to the entire organisation. In the view of Adair (2010), strategic
leadership constitutes the path and direction for the success and improvement of an
organisation. In strategic leadership, management executives use strategy to manage
and monitor workers.
As observed by Atreya (2013) the main objective of strategic management is to increase
the organisations success rate by managerial actions. But the objective of leadership is
to understand and obtain new opportunities for the organisation. Adair (2010) states
strategic management as object oriented whereas leadership to be growth oriented.
Jones (2012) opines that a leader will be able to perform the duties of a manager, but
its not necessary that a manager can perform the duties of a leader.
According to Gold, Thorpe and Mumford (2010) Strategic management and leadership
are inseparably related to each other because strategic managers explains the identity
of the organisation, construct entire organisational strategy, define goals and objectives
and are responsible for the market segmentation; while strategic leaders formulate,
implement and maintain the team members and encourage them to achieve the goal
and objectives set by strategic managers for the success of the organisation.
According to Mullins (2010), the key functions of strategic management include
allocation of the entire organizational resources such as financial, material, human and
technological resources to effectively achieve the organisational objectives. Roger et al.
(2009) argues that the scope of strategic management is extreme as compared to
leadership since the latters functions are limited to planning, controlling, supporting
and motivating the employees to achieve the organisational goal.

The highly responsible, powerful management and leadership team of Samsung is

currently vested in the hands of Lee Kun-hee (Chairman of Samsung) who enabled the
company to improve its corporate value focusing on innovations and challenge to
achieve success. According to Yon-se (2012), Samsungs 25 years of growth in business
is considered as the result of Lees advanced and innovative thinking and leadership
style. Lee Kun-hees confident, bold and fascinating leadership allowed Samsung to be
faster and constitute in adapting strategic changes and exploring new possibilities than
its competitors, reports Forbes (2014). Forbes (2014) also reports that the effective
leadership with strategic management at Samsung has made the company to introduce
mind-blowing innovations in hardware and technologies which other companies have
not yet been able to do.

1.2 Impact of management and leadership styles on strategic decisions

According to Rai and Bhushan (2009), strategic decision making is defined as the
process of implementing an organisation vision, mission, goal and objective and making
decisions related to the activities that the organisation need to perform to achieve these
objectives. Ramaswamy (2013) argues strategic decision making is considered as the
primary skill for every successful manager. Managers use many analysis tools such as
SWOT Analysis, Cost-Benefit Analysis etc; to make efficient strategic decisions.
According to Atreya (2013), the best management and leadership style resolve the
challenges faced by organisation and the requirements of the workers. Also effective
style will help to achieve organisational objective and enables the organisation to adapt
strategic changes, reports Cowings (2012). It helps to increase the performance and
growth of the organisation through making efficient strategic decisions.
Some of the common types of leadership and management styles mentioned by Gold et
al (2010) and its impact are discussed below:
Authoritarian
This leadership style provides full power to the managers to make their own decision
without considering the view and opinions of the team members. When team members
require high level assistance, authoritarian style can be adopted (Burks, 2011). But in
case of Samsung, all employees are highly skilled and talented and hence this style is not
recommended for every situation in Samsung.
Bureaucratic
Bureaucratic style demands team members to strictly follow the rules and regulations
of the organisation and the approach between the members and leaders ensures that
the members follow the rules accurately (Dereli, 2010). This style is applicable in
companies with high regulations which will not demand any innovation or creativity

from staffs. Samsung is highly innovative and creative company and requires creative
and skilled employees. Hence, bureaucratic style is not suitable for Samsung.
Transactional
In this style, manager receives works and these works are distributed among the team
members and offers appraisals or punishments to the team members based on their
performance (Burks, 2011). But in case of inexperienced employees, the punishments
will lead to low performance and productivity and therefore transactional is also not
suitable for Samsung.
Transformational/Charismatic
In this approach, leaders encourage team members and improve the organisational
performance and productivity through focusing on communication to meet the
objectives (Vernyuy, 2012). Samsung is found to adopt Transformational style in many
situations and the company gives importance to the team work and motivates the
members to be more productive through improving their skills.
Participative/Democratic
In this leadership style the views and opinions of the team members are considered
while making strategic decisions. But the final decision is made by the democratic
leader of the team (Dereli, 2010). Samsung also adopts democratic style in certain
context to ensure the participation of both employer and employee while decision
making and this increases the satisfaction level of employees. Consideration ofemployee
opinions while decision making has also increased the organizations productivity yearto-year.
Pacesetting
In this style, the manager sets high standards for performing tasks. Manager performs
many tasks himself and asks the team members to follow the work (Burks, 2011).
Samsung has apparently found to adopt pacesetting according as Samsung employees
are highly skilled and through setting high standards, Samsung would be able to quickly
achieve its objectives by the self-motivation of employees.
Organisational structure of Samsung:

Figure 1: Organisational structure of Samsung

Source: http://www.slideshare.net/agrawall/companies-structure

Lee Byung-chul , the founder of Samsung gave priority to the traditional Korean
corporate culture, bureaucratic leadership style to manage the business. Lee Kun-hee
made changes to this traditional culture and adopted new American and Japanese
management styles to the business. This includes a mix of authoritarian, participative,
transactional and transformational/charismatic leadership style. Lee Kun-hee has been
found to have strictly followed these styles and focused on the self-improvement of
employees through building a learning atmosphere within the organisation.
TASK-2
1.3 Analysis of application of variousleadership styles to distinct situations
The Samsung has achieved its current successful position as a result of Lee Kun-hees
excellent strategic leadership style and innovative thinking, reports Song and Lee
(2014). Lee is of the opinion that one talented person can treat millions of others and
this shows that he has given importance to the talent of employees. Lees charismatic
and participative leadership style helped the company to be a faster adapter of market
5

changes than the competitors, reports Song and Lee (2014). Samsung motivated and
compensated its employees through the distribution of profits as benefits among them.
Lees leadership style encourages the employees to be more productive to the
development of the company. Byford (2012) states that Samsung employees consider
Samsung as their religion and Lee as their god. This shows the popularity and likeness
of Lees leadership and management.
With reference to the above mentioned leadership styles, it has been observed that
Samsung chairman Lee Kun-hee has given more importance to the empowerment of
board-directors through encouraging and retaining strong relationship with the board
members. At this high level, initially it was the participative leadership style that was
adopted, but it was reported by Song and Lee (2014) that the top- managerial members
tried to alter and seize the leadership position of Lee with their high education and
innovative skills. Hence, Lee has been found to follow the authoritarianstyle in this
situation in order to ensure his position, reportsSong and Lee (2014).
Jean et al (2009) mentions according to Lee, employee empowerment is essential to
become a leader and he established many human resource empowering programs to
strengthen the employee capital of Samsung. Lee adjusted the work time of employees
from 9 am 6 pm to 7 am 4 pm changing the bureaucratic culture to
transformational style, in order to provide extra hours after work schedule to study.
Boyford (2012) opines that Samsung started the tradition of sending talented
employees abroad for higher education at companys own expense. Also company
started recruiting talents from other countries to become world class leader in
technology. Obviously, Lees leadership style gained respect and appreciation from the
board members and this is the reason that after even after owing to a corruption case in
2008, Samsung management recalled Lee as their chairman in 2010 and he is still
handling the current position from 1968, reports Kollewe (2010).
When analysing, the Samsung Company has also been reported to currently follow the
pacesetting leadership style for quickly achieving its business goals. Michelson (2014)
reports that the global home appliance industry is dominated by the brands like
Wirlpool, General Electric etc. The appliance industry of Samsung is experiencing less
growth and it is hard for the company to dominate the market ruled by the home
appliance leader Wirlpool. Samsung is expecting to be the worlds largest appliance
maker by 2015, reports Grobart (2014). Hence, to obtain quick results in the appliance
business, the company leadership has applied pacesetting leadership style to achieve
these objectives quickly. As the Samsung employees are highly competitive and
productive in their work, this style is considered to provide complete justice to the
company goals and objectives.

ASSIGNMENT 2
TASK-1
2.1 Leadership and Management styles
2.1.1 Review of the impact of leadership and management styles
One of the most cited definition of leadership is given by Northouse (2012) where the
author defines leadership as the managerial process which is concerned with the
planning, organizing, staffing, budgeting and controlling the organizational processes.
On the other hand, management refers to the group of members who execute the
leadership styles, says Hughes, Ginnett and Curphy (2011). It can otherwise be said that
leadership and management are related with each other where the former frames and
the latter executes the theories.
According to Prof. Bennis(2009) leadership and management styles are basically
classified into five types as Autocratic, Participative, Transformational, Transactional
and Laissez-faire.
It is an autocratic leadership style which can be inferred in the organization where
Shafaitworks. The leaders have imposed the changed working conditions on the staffs
and have remained blind and deaf to the opinions from them, which has ended up in
dissatisfaction and poor service from the nurses and staffs. This concurrently has led to
complaints from patients as well as the media regarding poor level of services provided
to the formers.Northouse (2012) states that imposing the autocratic leadership style
has adversely affected the working conditions and the performance level of the
organization and has created a more stressful working atmosphere for the nurses and
other staffs. One of the major impacts that could be found from the case study is the
non-existence of shared vision and motivation among management and staffs which has
led to higher employee turnover in organizations.
When analysing the case study of the hospital where Paula works, it is the Participative
(also called democratic) leadership that has been executed. It is found that the staffs
were involved in the decision making and were encouraged to provide their reviews
and suggestions. But the final decision was taken by the management. In Paulas
hospital, even though the motivational level of employees would have got effected since
their suggestions were not considered, Hughes, Ginnett and Curphy (2011) opines that
this would not result in much reduction in quality of services and productivity of
employees since the staffs were let known about the changes before itself and hence
would have arranged themselves to meet with the new changes.
The case of hospital where Jackie works is a good example of transformational
leadership. The reviews and suggestions of the staffs on the changed working
7

conditions have effectively been accounted by the leaders and hence would result in
higher participation of staffs in enhancing productivity of the hospital (Dobbs, 2010).
According to Manktelow (2012) the impact of this leadership will be positive enough to
ensure that the patients receive the best services with utmost quality from the nurses
and other staffs. Also, since majority of reviews from the staffs have been accepted by
the leaders, this will also increase the motivation of staffs to work for the organization.
2.1.2 Evaluation of the effectiveness of leadership and management styles and
relation to the aims and objectives
According to the information from NHS choices (2013), the major aims and objectives of
NHS are:
Provide comprehensive service to every people
The needs would be met on clinical basis and not on the payment ability of the
patient
NHS employees and organizations needs to have the highest standard of
professionalism and excellence
The employees need to treat the patients with their heart
Integration of health systems with various organizations to promote and protect
patients, local communities and the public
Utilisation of public funds for the people which the NHS serves
Accountability to public, communities and patients for every activity done by
NHS aspirers
With reference to the case study, adoption of autocratic style as in Shafaits hospital
will not make the organization as well as NHS to achieve their aims and objectives.
Manktelow(2012) mentions that Autocratic style imposes rules and norms upon the
staffs without considering and solving their issues and hence employees will not
work with their heart, as required by NHS principles. Also, the commitment of staffs
to work for the organization will get adversely affected making the people realise
that these hospitals fail to provide comprehensive services.
The hospital where Paula works will not face much difficulty to achieve its
objectives, but complete attainment of NHS principles will be a doubtful question in
these organizations. It is because, the Democratic leaders remain to be the ultimate
decision makers and this could eventually lead to dispute between management and
employees, if the latters requirement s are not partially met (Prof. Bennis, 2009). If
the employees remain to be unheard, it may even lead to deterioration of
organizational services.
The hospital where Jackie works will find it much easier than others in achieving
organizational aims and objectives since there exists good relation between
management and staffs. According to Dobbs (2010) the transformational
leadersmaintain an effective communication channel through which both the
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demands and requirements of management and staffs are met and hence this type of
leadership and management style would be the most effective to attain NHS
principles completely.
2.2 Creating a leadership strategy to support organizational direction
According to Northouse (2012) leadership strategy defines the direction and scope of
an organization and utilises the resources in a planned and efficient manner. Leadership
strategies are framed in order to meet the entire needs of customers and stakeholders
of an organization and similar is the case with NHS. An effective leadership strategy for
NHS to support organizational direction needs to be constructed with the following
elements:
A clear vision and mission to provide explicit services to the patients and public
The new leadership strategy has to state a clear vision and mission to achieve the
performance levels set up by the NHS. The needs and experience of the service client
needs to be thoroughly examined at regular intervals to ensure that the best service
quality is provided to them (Northouse, 2012).
Maintaining professionalism
This constitutes one among the most important aspects in leadership strategies. The
staffs and other members of the NHS needs to be directed to follow complete
professionalism in their working periods and the same needs to be effectively
monitored to detect deviations, if any. Maintaining professionalism is the best method
through which the NHS can deliver effective and high quality services to people
(Northouse, 2012).
Extensive training and motivation strategy for the nurses, staffs and other
members to deliver maximum output effectively
NHS has to provide training and motivation to its employees so that they remain loyal to
their profession and organization and also gets updated with every changes happening
in the health circle. This will also ensure high staff involvement and engagement in the
NHS organizations (Northouse, 2012).
Continuous improvement of performance systems
The NHS leadership has to encourage its followers to come forward with creative and
innovative ideas to develop the performance levels. The issues and grievances arising
from the service users and employees have to be addressed efficiently. This will ensure
that the performance level of NHS employees and the organization improves and the
organizational objectives are achieved (Northouse, 2012).

TASK-2
3.1 Review of current leadership
The current leadership at NHS hospitals witnesses the following issues
Improper management of departments and health stores
Increased stress and workload for employees, especially nurses
Low payment to staffs when compared to other service sectors
High employee turnover
Lower level of professionalism
Low quality in services provides
Low ratio of staffs when compared to that of patients
3.2 Planning for future leadership at NHS
While planning future leadership at NHS hospitals, the following aspects need to be
covered:
Setting up of clear vision, mission, objectives for the NHS organizations
Applying autonomous leadership in the nursing department of NHS organization
Developing transformational leaders in the top-managerial level
Providing guidance and extensive training to staffs, nurses and other employees
Routine diagnosis of service issues and solving it effectively within the least time
period
Organizing activities to build professionalism at work
Setting up of strategies to meet all seven principles of NHS

4.1 Case studies

4.1.1 Colchester hospital
In the Colchester Hospital University NHS Foundation Trust, the Care Quality
Commission of UK found the services to be of low quality. The safety, effectiveness and
responsiveness in many areas of health service were identified to be below the
standards. In the year 2012-2013 the mortality rate in the hospital went high and the
cancer service waiting time is still long in the hospital. Even the systems to store and
10

manage the medicines in the hospitals was found to be inadequate and inefficient. This
has thus called for a change in leadership strategy at Colchester hospital by the CQC.
Solution:PARTICIPATIVE LEADERSHIP STRATEGY
This will involve the employees and staffs in contributing to the development and
enhancement of services in the hospital; but the final decision rests upon the leaders.
Applying participative leadership will ensure that the staffs and employees come up
with the reasons for the cause of mentioned issues at Colchester hospital and thus, the
leaders can frame a better strategy to solve the issues related to hospital management.
4.1.2 The South London Health care trust
The South London Health care trust is marked as the poorest among all other NHS
hospital with 17 risk alerts out of which 7 are red marked. This hospital has many issues
regarding patient safety, poor patient experience, high staff turnover, longer periods of
waiting etc. The CQC has marked the performance of the hospital as a matter of high
concern with relation to health and care services. This situation has thus called for a
analysis and change in the existing leadership practices at South London Health Care
Trust.
Solution:AUTHORITARIAN LEADERSHIP STRATEGY AND TRANSFORMATIONAL
MANAGERIAL STYLE
The leadership management of every department at South London Health Care Trust is
found to be inefficient and the employees are not properly regulated with regards to
quality, timings etc of service provided.
Hence this hospital will require a Autocratic leader to be placed to make new
regulations, norms etc for efficient hospital working and management. The management
must exercise transformational style so that the effective communication and
correlation between them and the staffs would make it easier to improve organizational
standards and services.
4.2 Usefulness of leadership styles at NHS departments
NHS Departments are as follows:
Allergy services in hospitals,Cardiology, Cardiothoracic surgery, Childrens and
Adolescents services, Dentistry and Orthodontics, Diabetic medicine, ENT,
Endocrinology and Metabolic medicine, Gastrointestinal and Liver services, Geriatric
medicine, General surgery, Gynecology, Genito-Urinary medicine, Haematology,
Infectious diseases, Interventional radiology, Mental health, Neurology, Neurosurgery,
Obstetrics, Ophthalmology, Oral and maxillofacial surgery, Orthopedics, Palliative
medicine, Physiotherapy, Plastic surgery, Rehabilitation, Respiratory medicine,
Rheumatology, Sports and exercise medicine and Surgery- Vascular departments.
11

The benefits of leadership planning at NHS department are as follows:

Promotes the employees in every department to concentrate more on the
strategic objectives of NHS and there b y achieve the goals easily.
Increases the participation and interaction between management, employees
and service users thereby increasing their loyalty.
The planned leadership benefits every employee to have a clear picture about
the starting and ending tasks and the time period to complete the same. This
ensures maximum productivity without wastage of time.
Every approach by the service providers become highly structured and
professional and this will ensure maximum satisfaction to the service users.
The structured process of leadership in every department of NHS allows the
service providers as well as the service users to be open and honest about the
NHS services.
Conclusion
The NHS in UK is currently facing many issues related to low level of professionalism,
high employee turnover, low quality of services, longer service waiting periods, high
mortality rates etc. This has called for change in the current leadership in NHS
organization by the media, health organizations and public. Hence it is necessary for
NHS to develop the best leadership strategy that could eradicate all issues and help NHS
to function in the most effective manner there by meeting its principles and values.
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