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Course/Unit Information
Course Pearson (Edexcel) BTEC Level 7 – Diploma / Extended
Diploma in Strategic Management & Leadership
Unit No. Unit 1
Unit Name Developing Strategic Management and Leadership Skills
Unit code F/602/2058
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 Student Declaration

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Learning Outcomes and Assessment Feedback

Name of the Assessor Prof Sufia Munir

Assessor
Learning Outcomes Assessment Criteria (AC)
Feedback
LO 1 TASK-1
1.1 Explain the link between strategic management and AC Met
Understand the relationship leadership
between strategic management 1.2 Analyse the impact of management and leadership
AC Met
and leadership styles on strategic decisions
1.3 Evaluate how leadership styles can be adapted to
AC Met
different situations
 LO 2
Be able to apply management
and leadership theory to support
organisational direction
LO 3
Be able to assess leadership
requirements
LO 4
Be able to plan the development
of leadership skills
TASK 2
2.1 Review the impact that selected theories of
AC Met
management and leadership have on organisational
strategy
2.2 Create a leadership strategy that supports
AC Met
organisational direction
TASK 3
3.1 Use appropriate methods to review current AC Met
leadership requirements
3.2 Plan for the development of future situations
AC Met
requiring leadership
TASK 4
4.1 Plan the development of leadership skills for a AC Met
specific requirement
4.2 Report on the usefulness of methods used to plan the
AC Met
development of leadership skills

Sample Assignment
Over All Result/Grade Date: 9/07/19
Summative Feedback: Sample Assignment

Overall Feedback on
current work with
emphasis on how the
student can further
improve in future.
Internal Verification Report
Internal Verification Done By Date
Assignment Brief
Assessors Decision

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1. Complete the title page with all necessary student details and ensure that the signature
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2. All assignments must be submitted as an electronic document in MS Word to the
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3. Assignment that is not submitted to the LMS by the prescribed deadline will be
accepted ONLY under the REDO and RESIT submission policy of Westford.
4. You will PASS the full assignment task only if you achieve “AC Met” in each of the
Assessment Criteria.
5. The results are declared only if the student has met the mandatory attendance
requirement of 75% and/or a minimum of 50% under extenuating circumstances
approved and ratified by the Academic Director. The student has to repeat the module
(with additional fees applicable) if the attendance is below 50%.
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Quick reference Checklist for the students before submitting the assignment:

1. Adherence to the deadline of submission date.

2. Original cover sheet and format retained.
3. Student information and signature intact.
4. Font style and size used as instructed.
5. Harvard Referencing System and Citations are strictly followed.

Scenario:

Choose an organisation that you are currently working in, or have worked before, or any
other organisation of your choice. You can refer to the literature available for the
chosen organisation, as well as you must go through research journals/ articles
literature available to effectively assess, analyse and evaluate aspects of strategic
management and leadership of your chosen organisation while answering the questions
given below.

---------------------------------------------------------------------------------------------------------------------
-

Question 1

Explain the link between management and leadership with specific reference to the
difference between the two disciplines. From this description, provide an explanation of
how management and leadership impact strategic decisions and evaluate how
leadership styles can be adapted to different situations in the workplace. Give practical
example from your chosen organisation to illustrate your understanding of the
relationship between strategic management and leadership.

Question 2

Reflect on the impact that selected theories of management and leadership have on
your organisational strategy and devise a leadership strategy that you believe will
support your organisation’s direction. Apply at least two theories of management and
leadership as discussed during the conduct of the classes, and give practical
application thereof with respect to your chosen organisation.

Question 3

Use appropriate methods to review the current leadership requirements specific to

your chosen organisation’s direction, objectives and goals. Based on the shortcomings
and organisational specific leadership and managerial needs, relative to its envisaged
strategy, you need to construct a plan for the development of future leadership
requirements in the organisation.

Question 4

Based on certain shortcomings observed in leadership skills as discussed in the above

question, plan the development of leadership skills required for managers that will
benefit implementation of your organisation’s strategic goals and objectives. Assess
on how useful these methods will be to develop the leadership skills of these
managers.
Note: The total word count for all the questions should be between 4500-5000 words.
You must refer to literature sources from credible research journals and articles while
answering the questions. Your own critical thinking is important to be reflected in your
answers. Do not plagiarize and use the Harvard Referencing System methodology for
correct referencing.

Developing Strategic Management and Leadership Skills

Volvo Group
Table of Contents

TOPIC PAGE NUMBER

Section 1

1.1 Strategic Management and Leadership------------------------------------------------------8

1.2 Impact of leadership styles for strategic decisions----------------------------------------12
1.3 Situational leadership styles------------------------------------------------------------------14

Section 2

2.1 Impact of leadership theories-----------------------------------------------------------------16

2.2 Introduction to Volvo group------------------------------------------------------------------17
2.3 Leadership strategy that supports organizational direction-------------------------------21
Section 3

3.1 Organization leadership requirements-------------------------------------------------------24

3.2 Methods to review leadership requirements------------------------------------------------26
3.3 Plan for development of future situations---------------------------------------------------28
3.4 Evaluation of the plan-------------------------------------------------------------------------30

Section 4

4.1 Essential leadership requirements------------------------------------------------------------31

4.2 Plan for development of leadership skills---------------------------------------------------32

Bibliography-----------------------------------------------------------------------------------------33

Section 1
Explain the link between management and leadership with specific reference to the
difference between the two disciplines. From this description, provide an explanation of
how management and leadership impact strategic decisions and evaluate how leadership
styles can be adapted to different situations in the workplace. Give practical example
from your chosen organization to illustrate your understanding of the relationship
between strategic management and leadership.

1.1 Strategic management and leadership

Management can be defined as the administration of a company or a business which

includes the process of setting the strategy of a firm and synchronizing the efforts of its
workforce to accomplish its goals through the application of its available resources such
as technological, financial and human resources (Algahtani, 2014). Lunenburg (2011)
argues that the management process involves organizing, staffing, budgeting, planning,
controlling and problem solving.
 Figure 1: Sourced from the internet, Functions of management

Leadership is defined as the ability to envisage, foresee and perpetuate flexibility and to
empower others to create strategic change as necessary (Jabbar & Hussein, 2017).
According to Moesia (2007) in strategic management leader introduces the environment
for change and creates the leadership team by selecting key players from the organization
by breaking down the current hierarchy and it formulates the vision and strategy by the
help of a visionary process that clarify the strategy for understanding of whole
organization. The leadership process involves developing a vision for the organization,
aligning people with that vision through communication; and motivating people to action
through empowerment and through basic need fulfillment ( Lunenburg, 2011).

Figure 2: (Google Images, 2019)

The below table 1 provides a broad view of the difference between the leadership and
management

Category Management Leadership

Thinking Process • Looks inward • Main focus on people

• Main focus on things • Looks outward

Goal Setting • Execute the given plans • Articulates a vision

• Improves the present • Creates the future
condition • Sees the forest
• Sees the trees

Employee Relations • Controls • Empowers

• Subordinates • Colleagues
• Direct and coordinates • Trusts and develops

Operation • Does things right • Does right things

• Manage change • Creates change
• Serves super ordinates • Serves subordinates

• Uses authority • Uses influence

Governance • Avoids conflicts • Uses conflicts
• Acts responsibly • Acts decisively

Table 1: Self-created by researcher, difference between management and leadership ( Lunenburg,

2011)

Although both management and leadership have many differences they are also one in
the same as they are both required in order to successfully run an organization.
Management and leadership, so defined, are clearly in some ways similar. The following
table discusses the ways in which the leadership and management are linked by certain
elements
 Elements How leadership and management linked by the elements

People Leadership and management entail with working with people and
surround the people only.

Organization and Management and leadership both create the foundation of the
structure organization and functional structure.

Goals Leadership and management are equally concerned with goal

achievements.

Resources The main concern of leadership and management is to allocate the

available resources in such a manner that they can be used
efficiently and effectively.

Table 2: Self-created by the researcher, link between leadership and management (Popovici, 2012)

A well balanced organization should have a mix of leaders and managers to succeed, and in
fact what they really need is a few great leaders and many first-class managers

The following table discusses the importance of leadership and management in an

organization.

Leadership Management
 • Leaders provide direction by
developing the organizational
vision and communicating it to the
employees and inspiring them to
achieve it.
• The managers lay down the
structure and delegate’s authority
and responsibility

• Leadership is mainly a part of • management includes focus on

directing function of management. planning, organizing, staffing,
Leaders focus on listening, building directing and controlling
relationships, teamwork, inspiring,
motivating and persuading the
followers.

• The leaders follow their own • The managers follow the

instinct organization’s policies and
procedure

• Leadership deals with the people • Management deals with the

aspect in an organization technical dimension in an
organization or the job content

• Leadership sees and evaluates • Management measures/evaluates

individuals as having potential for people by their name, past records,
things that can’t be measured, i.e., it present performance
deals with future and the
performance of people if their
potential is fully extracted.

• Leadership is proactive • Management is reactive

• Leadership is based more on verbal • Management is based more on

communication written communication

Table 3: Self-created by researcher, Importance of leadership and management (Juneja, 2019)

1.2 Impact of leadership styles for strategic decisions

In the current global competitive business environment, the effective style of leadership
is required to reduce the attenuation rate. Only from the effective leadership style, it is
possible to achieve organizational goal productively. Leadership styles affect on the
employee performance and productivity (Nanjundeswaraswamy , 2014). There are
multiple types of management or leadership styles and the impact of each style on strategic
decisions varies. Mitonga-Monga & Coetzee (2012) describes leadership style as a
combination of different traits, behavior’s and characteristics that are used by leaders for
interacting with their subordinates

Here in this section, the Kubler Ross curve will be used to explain the different leadership
styles that can be adopted by the organization at different stages

Figure 3: (HALO, 2016)

The change curve is based on a model which is developed by Elizabeth Kubler-Ross in

1960s to explain the grieving process and to assist the people in equipping to understand
the difficulties of changes and the ways to deal with the challenges of coping with
different situations and also helping the leaders to understand what kind of leadership
styles should be used at various stages (Leybourne , 2016).

Stage 1 ( Autocratic Leadership + Charismatic Leadership )

In the first stage which consist of the denial and shock where the leaders gets a defensive
response, the mangers can be a little bit autocratic and charismatic. They have to be
autocratic because if they don’t stand strong, there will be a lot of opposition from the
employees and it will be hard to implement something. At these situations the autocratic
leader will make the subordinates work according to them. In order for a new change to
happen they have to strongly convey the employees that the change is inevitable and
everyone should be prepared for it (Khajeh, 2018). According to Ali etal. (2015) the
autocratic leaders force their followers to execute the services and strategies according to
the narrow way. In terms of decision-making however an autocratic style of leadership is
ideal when having to deal with crisis because it results in quick and efficient decision
making.

The leaders at this stage also has to be charismatic to convey the things in a positive way
and encouraging particular behaviors in others by way of eloquent communication,
persuasion and force of personality. The charismatic leaders develop a vision and the
followers are asked to follow and execute the vision. The charismatic leadership invites
innovation and creativity and is considered to be motivational for the employees
(Yahaya, 2016).Since at this stage as people are going through shock and are denying the
changes, the charismatic leadership along with autocratic leadership works to motivate
followers to get things done or improve the way certain things are done.

Stage 2 (Transformational leadership + Interactive leadership)

The second stage which is the toughest stage which consist of the anger and depression
where people emotionally get upset and breakdown and seek to bargain, the managers
have to use transformational and interactive leadership style to inspire and motivate
people to achieve extraordinary outcomes. The leader has to be transformational here
because he/she should use empathy, rapport and inspiration to engage the employees, as
it maximizes the team’s capacity and capability during this stage. The leader can also use
the interactive leadership style by supporting the employees passionately and effectively
by sharing the risks and responsibility and making the employees understand that the
goals are cooperative (Bednarz, 2012) .

Stage 3 ( Transactional leadership + Democratic Leadership + Bureaucratic

Leadership)

In the third stage and the final stage of acceptance and integration the managers exhibit a
mixture of transactional, bureaucratic and democratic leadership styles. Here the
transactional leadership or the managerial leadership will focus on the role of
supervision, organization and team performance and need monitor and control the staffs
and give necessary rewards for their performance (Alkahtani, 2015). The bureaucratic
style in this phase will be to ensure that they just follow the procedure. The leaders need
to be democratic because as this stage is also having experimentation, the leaders need to
take necessary inputs from the employees before taking decisions (Idrus , 2015).

1.3 Situational Leadership Styles

Situational leadership is a leadership that amalgamate both supportive and directive
dimensions and each of these given dimensions has to be applied correctly ina given
situations. Leaders operating under situational leadership has to gauge their workforce
through evaluating their commitment to accomplish a certain task (Ghazzawi &
Choughri, 2017). According to Afshinpour & Tomlin (2013) situational leadership
means that the leaders have to change their degree of supportiveness and directness
according to the given situation of subordinates and their level of motivation.
Farmer(2012) claims that a situational leader tries to discover the characteristics of
his/her follower in order to know which leadership style to use with him/her.

In this section the example of Hersey & Blanchard Situational Leadership Model will be
used to discuss situational leadership further

Hersey & Blanchard’s was created by Paul Hersey and Ken Blanchard in 1982 and has
become perhaps the best known of all the Situational/Contingency models (Business
Balls, 2019). This Model talks about our main leadership styles; Directing, Coaching,
Supporting and Delegating. Each leadership style corresponds to a level of an employee’s
development. The Hersey-Blanchard situational leadership theory consists of two pillars:
leadership style and the maturity level of those being led.

Figure 4 (Tough Nickel, 2018)

Inorder to explain this model the installation of a new ERP system in an organization will
be taken as an example

Directing Style

In this stage upon realizing that the Organization needs a software change and when it is
announced to the employees that the current IT software is going to be replaced by latest
ERP software, there will resistance from most of the stakeholders in the organization as
many of them will be well verse with the existing software and do not want to be shaken
from their comfort zone.

Here in this stage the directing method is used. Here the employees have to act as per the
directions given by the leader, where the leaders do not provide much scope to the
employees to analyze or take decision on his own. In this situation the workforce follows
whatever is told to them (Meirovich & Jian , 2015).

Coaching Style

Once the installation phase is over, the workforce will start developing a desire to work
independently but are not capable of doing this yet. There will be many staffs of the
organization who must not have reached full maturity and are hindered by circumstances
by the change or reform that has happened in the company.

In this stage the coaching style will be used by the leaders, where the leader sells his
ideas, and leaves the implementation to his subordinates and convince the employees that
they will be able to do them. Training and development will be conducted in this stage as
well to improve the intern’s abilities and to help them evolve ( Mulder, 2012).

Participating

At this level, the employees are capable but (temporarily) unwilling. They are qualified
workers but because of the number of tasks, they might get the idea that they are being
inundated with work. This can make them insecure and reluctant

In this style, the leader confers with the employees and supports them in their work. By
having employees participate in the decision-making process, acceptance will increase
and the employees will be able to work independently again. The leaders simply monitor
the performance and let the employees come up with new ideas and strategies. The leader
supports and does not have much of a directive role in this case (Ghazzawi & Choughri,
2017).
Delegating

The employee has now had enough experience and familiarity to be able to work with the
new software independently. The workforce will have a high level of task maturity as a
result of which they need less support. Employees inform the leader about their progress
and at the same time they indicate when any problems occur or when the work is
stagnating. They become motivated because of their independence and as a result a leader
does not have to consult with them continuously.

In this stage the leaders follow the delegating style which simply involves entrusting the
employee with completing the task, where he is given whole authority and right to
perform the task (Johansson & Akselsson, 2007).

Section 2

Reflect on the impact that selected theories of management and leadership have on your
organizational strategy and devise a leadership strategy that you believe will support your
organization’s direction. Apply at least two theories of management and leadership as
discussed during the conduct of the classes, and give practical application thereof with
respect to your chosen organization.

2.1 Impact of leadership theories

Management experts devise leadership theories to identify what makes successful leaders
excel, how they evaluate options and why they make adjustments. These experts define
leadership style, on the other hand, to explain how the traits and behaviors of leaders
enable them to function successfully under specific circumstances. Understanding both
theory and style helps one learn to respond appropriately under stress and choose the best
action as an effective leader (Amanchukwu & Stanley, 2015). All contemporary theories
can fall under one of the following three perspectives: leadership as a process or
relationship, leadership as a combination of traits or personality characteristics, or
leadership as certain behaviors or, as they are more commonly referred to, leadership
skills. In the more dominant theories of leadership, there exists the notion that, at least to
some degree, leadership is a process that involves influence with a group of people
toward the realization of goals (Wolinski, 2010).

In this section for the purpose of this assessment criterion Volvo group will be chosen as the
organization in which the Fielder’s contingency theory, path goal theory and charismatic
leadership theory will be applied.

2.2 Introduction to Volvo group

The Volvo group is a Swedish multinational company with its headquarters in
Gothenburg. It started off as a small local industry by Gustaf Larson and Assar
Gabrielsson in 1927 which eventually became one of the leading suppliers of commercial
transport solution providing a wide range of products. The core activities of the Volvo
group are the distribution, production and sale of trucks, construction equipment’s, buses
and industrial and marine drive systems. Volvo also delivers complete solutions for
financing and service which strengthens long term relationships with its dealers and
customers (Volvo Group, 2019).

Fiedler's Contingency Theory

The Fiedler Contingency Model was created in the mid-1960s by Fred Fiedler, a scientist
who studied the personality and characteristics of leaders. This theory highlights on the
importance of both the leaders personality and the situation in which the leader operates.
According to this theory, no single leadership style is appropriate in all situations and
success depends on a number of variables including the leadership style, qualities of the
followers and aspects of the situation ( Cherry, 2019). This theory consist of two steps
which are as follows

(a) Leadership style

In Volvo group normally the leaders or the managers selects the team randomly
and based on the interest of the people to work for the project. Due to this some
people in the team may enjoy working under some leaders and others may not and
therefore the work gets slowed down in many situations. The top management of
Volvo can use the least preferred co -worker scale so that they get a perspective or
 an idea from the team about whether the assigned leader was a task oriented or
relationship oriented. Some people may like the task oriented leaders whereas
other may like relationship oriented ones. This will help Volvo to recognize and
to form a team of workers where people are comfortable working with
(Schreuder, 2016).

Figure 5: (EPM, 2019)

(b) Understanding the situation

The next step is to understand the favorableness of the situation the leader face.
This is determined by how much control over the situation you have as a leader
(situational control). Firstly the Volvo management can monitor and understand
by checking with the employees how much they trust the leader as greater trust
increases the favorableness of the situation and less trust reduces it. Secondly, the
management can check whether the leader is clearly and precisely or vaguely
making the team understand the task as vague tasks decrease the favorableness of
the situation and concrete and clear tasks increase it. Finally based on the above
two factors the management can decide whether more powers need to be given to
the leaders to reward or punish the subordinates (Virkus, 2009).

(c) Finding the right leadership style

Based on the LPC scale and understanding the situations, the management of
Volvo can instruct its leaders that when the situations are highly favorable or
highly unfavorable the task-oriented leader is most effective. It is only in the
middle area, where situational factors are mixed, that the relationship-oriented
leader is most effective (Schreuder, 2016).
The limitation of this theory is the lack of flexibility as fielder believed that the natural
leadership style is fixed, the most effective way to handle a situation is to change the
leader rather than asking them to use a different style of leadership (Mishra & Kusum ,
2017).

Transformational Theory

Transformational leadership is a relatively new approach to leadership that focuses on

how leaders can create valuable and positive change in their followers and organization
(Burkus, 2010).

Figure 6: (Marketing91, 2017)

As per the figure 6, there are four factors required to implement this leadership style in
Volvo

(a) Inspirational Motivation

The foundation of transformational leadership is the promotion of consistent

vision, mission, and a set of values to the members by the leaders. The Volvo
leaders and management should inspire their workforce to move in the right
direction by providing them with a sense of meaning and challenge. Even when
the leader is not physically present in the organization his subordinates should be
 motivated and inspired in their professional and personal life to follow their leader
and to do the right things (Ghasabeh & Provitera, 2017).

(b) Intellectual stimulation

In Volvo group the creativity is highly appreciated and anyone in the organization
is free to express their views and everyone’s voice is heard (Volvo Group, 2019).
The leaders of Volvo must encourage their followers to be innovative and
creative. They should encourage new ideas from their followers and never
criticize them publicly for the mistakes committed by them (Juneja, 2019).

(c) Idealized Influence

The leaders of Volvo must use their power in such a way that to strive for the
common goals of the organizaation thus by becoming good role models to their
workforce (Ahmad & Rasheed, 2014).

(d) Individualized Consideration

Besides managing all of the above, the leaders of Volvo each and every individual
employee seperately and should undertand their issues and concerns and should
also know how to read them and motivate them (Ghasabeh & Provitera, 2017).

The limitation of the transformational theory is that it llacks the attention to detail
required to create a strong corporate structure or follow company policies and also as the
transformational leader is concerned with the overall big picture and sometimes neglects
the daily operational details (George , 2019).

Charismatic Leadership Theory

The charismatic theory is centered on the ability of a leader to charm and persuade the
employees working in the organization. The charismatic leaders are generally capable of
inspiring and triggering emotional responses and are able to evoke genuine emotional
changes in others. The charismatic leaders are very much creative and visionary as they
will be able to make their followers proactively listen to them by excellent
communication skills and confidence, about the challenging goals which will inspire
others (Annie , 2018).

Few years back the customer who bought the Volvo model 850TDI reported a lot of
brake failure issues, due to which the Volvo started losing sales for this product and had
to pay huge fine to the court (Lichfield, 2008). During these kind of crisis or situations,
the charismatic leaders can tackle the situation by convincing the managers to conduct a
recall campaign and rectify this issue at free of cost to the customers there by saving the
organization brand value and without dampening the morale which will finally be a
motivation to the other employees. Volvo can also do smart hiring when they recruit new
managers by making them perform tasks to know whether they are charismatic or not.

The limitation of charismatic leaders is that the charismatic leader of a business can get
carried away by themselves Their ego often inflates due to the adoring attention of the
employees who follow them devotedly. The result of this high belief in themselves can be
the false impression that they can do no wrong. This can cause this type of leader to make
decisions based on their whims rather than careful study. They will not bother to gain
expert opinions due to their belief that their own knowledge is sufficient (Nguyen, 2010).

2.3 Leadership strategy that supports organizational direction

A leadership strategy is a map that aligns investments in leadership development with the
strategy, goals, and aspirations of the business. A leadership strategy makes explicit how
many leaders are needed, what kind, where they’re needed, with what skills, and
behaving in what fashion both individually and collectively to achieve the desired
outcomes. It also identifies other issues the organization must consider, such as whether
current talent systems (like onboarding or performance management) support the culture
and leadership one wants to create (Nicholas & Ghobadian, 2004).

Identifying the organizational direction is a key activity within any strategic planning
process. The most critical elements of Volvo’s organizational direction are as follows

Mission:

According to Volvo Group (2019) the two major missions of the Volvo are:-

(i) Provide customers with excellent products possible, innovative solutions that
complies with the modern society by providing best quality and safety for the
users in every aspect and taking care of environment, aimed at a better
tomorrow thereby meeting the demands of a 21st century marketplace (Volvo
Penta, 2019).
 (ii) combat poverty with transport for our economic welfare and prosperity to make
world a better place on the road by ensuring that people have food on their
table and on roads to drive on and in the city by taking people to their
workplace, collecting rubbish, power generation and by developing public
transport solution. Off road by extracting some of the world's most dominant
raw materials (Volvo Group, 2019).

Figure 7: (Volvo Group, 2019)

Vision:

According to Volvo Group (2019) the two major Visions of the Volvo are :-

(i) To be the most successful and desired provider of transport solution globally.

(ii) No one loses life or gets in a Volvo vehicle by 2020.

The key fundamentals of the Volvo Group strategy are customer focus,
decentralization, empowerment and P&L responsibility for its brand organizations,
continuous improvements as well as the importance of utilizing the Group strengths to
increase synergies, profitability and to take leadership in key technologies (Volvo
Group, 2019).
The first step in creating a leadership strategy is for Volvo group is to firstly set the goals
and objectives as discussed above to accomplish from strategy. The goals for this strategy
are to formulate a succession plan, to effectively manage diversity, to ensure effective
training is given and the employees are being recognized for their efforts. The next stage
will be formulating the strategy of the goals:

Succession Planning

As the Volvo group is switching up its senior management team with a move with
implications for the automaker’s succession planning and in order to identify and develop
future leaders of the company (Szczesny, 2017). The Volvo top management need to
identify and train high potential workers to make sure that the business is prepared to
tackle all sorts of contingencies or to s address the inevitable changes that occur when
employees resign, retire, are fired, get sick, or die.

Frequent Leadership Training Program

To achieve the key targets, one of the main factor is training programs. In order to help
the leaders stand strong and improve their problem-solving abilities Volvo group should,
therefore, constantly implement updated programs, that make sure their leaders
continuously possess all the skills set needed in order to take the company to the future.

Cultural Diversity

As of now approximately 100,000 employees are employed all over the world, every
employee is treated with equal respect. Volvo needs to create an inclusive culture
where everyone can contribute to their full potential and be accepted for who they are,
regardless of gender, gender identity, nationality, ethnic origin, religion, age, sexual
orientation, any disabilities, etc. Volvo’s current diversity program such as WIN,
Volvo Eagle and so on should be actively continued to ensure that the diversity in their
organization is effectively utilized (Volvo Group, 2019).

Skills Audit

When working with the Volvo Group once can get development opportunities at all
stages of their career, connected to their job and day-to-day activities (Volvo Group,
2019). The Volvo management can use skill audit software to know the current
competence level of the employee can also offer employees training opportunities to
develop new and existing skills and stimulate broader personal growth.

Rotational Program
One way to improve Volvo’s potential leaders is via a rotational program that provides
potential leaders with targeted cross-training in various departments in Volvo group with
the idea that they will be better able to lead when they're well-versed on all aspects of the
company and its inner working (Gibson, 1973).

Challenge Employees with Unfamiliar Jobs

Volvo management can challenge their managers and leaders by assigning them with
unfamiliar task from time to time as this will help to push their leaders to past their skill
level. (Hess, 2017).

Section 3

Use appropriate methods to review the current leadership requirements specific to your
chosen organization’s direction, objectives and goals. Based on the shortcomings and
organizational specific leadership and managerial needs, relative to its envisaged strategy,
you need to construct a plan for the development of future leadership requirements in the
organization.

In this section, for the purpose of assessment, the same organization chosen in the above
section, Volvo group will be used.

3.1 Volvo leadership requirements

(a) Knowledge of PESTEL factors

As Volvo group is there into most of the markets across the globe and are trying
to enter into new markets, the leaders of the Volvo group should be aware of the
following PESTEL factors of those countries as mentioned in the below figure 8:
 Figure 8: (B2U, 2016)

(b) Preparing for resolution

If the team leader is concerned about the conflict within the team, then he/she will
have to openly communicate with each of it’s the team members and discuss with
them the impact the conflict will have on the team dynamics and the team
performance. Once the whole team recognizes the issues then only they can start
the process of resolution.

(c) Technological Awareness

Volvo leaders should have the skill to being mindful of the technology that is
currently becoming popular and is readily accepted in the market or industry. The
leaders should also encompass ability to recognize and understand the usefulness
of any such technology for the success of the organization (Cleverism, 2019).

(d) Change management

The leaders should also understand that the change is something that is inevitable
and should also make their employees understand that and the potential benefits
of change. The leaders of Volvo should be capable of implement strategies for
effecting change, controlling change and helping people to adapt to change
( Gidion & Mayianda, 2016).
(e) Less Power Distance

The team leaders of Volvo can ask for any suggestions or ideas for improvement
to their team members. This approach will encourage the members to come up
with their thoughts. If that idea can be used somewhere in the task try to
incorporate that ideas , as this shows the team that the leader is willing to change
the approach based on the team members ideas which is a powerful reinforcement
of open communication (Porter, 2019).

3.2 Methods to review leadership requirements

(a) Multi Rater Feedback

Volvo group should provide an equal platform to all its employees to

communicate their concern to the management and makes sure that everybody's
voice is heard. Whereas, they can also start using the 360 degree feedback or the
multi rater feedback to solicit feedback from different angles or different point of
view like the lateral, supervisory and subordinates. By using this 360 degree style
every employee will be able to give a feedback on everything to the human
resource. This will help the human resource to see the problems from a wider
angle and to take necessary action which in turn will improve their effectiveness
of leaders (Kanaslan & Iyem, 2016).

Figure 9: (Assess Team, 2018)

(b) Psychometric Assessments

Volvo group can use this technique during their recruitment process or during the
interview to see if the candidate is a good leader and can also help in assess
aspects of his/her opinions, attitudes, individual behavior, values and interest. The
psychometric evaluation can be done in the existing leaders to check whether they
are satisfied with their job and measure their current competence and intellectual
capabilities (Slaney & Tkatchouk, 2010).

Figure 10: (Google Images,2019)

(c) Blake and Mouton’s Managerial Grid

Volvo group can use this managerial grid to help their leaders analyze through
grid training. Volvo management can do this by administering a questionnaire that
helps leaders identify how they stand with respect to their concern for production
and people. The training should be aimed at basically helping leaders reach to the
ideal state of 9, 9 (Nahar, 2014).
 Figure 11: (Google Images,2019)

The leaders in Volvo can be assessed using this managerial grid to determine which kind of
leaders they are and then accordingly improve their skills through training seminars.

3.3 Plan for the development of future situations

In order to plan for the development of future situations of Volvo group, the Vision,
mission and objectives which has been discussed in the section 2 has to be taken into
account seriously by the Volvo management.

In order for the leader to lead the people and the organization, they should be ready to
prepare for the future situations which may hinder the organization’s performance. The
leaders can do the following to plan for the development of Volvo

(a) SWOT Analysis

Volvo leaders can use this strategic planning technique to help the organization or
the leaders identify the strength, weakness, opportunities and threat related to the
business competition (Dergisi , 2017).
 Strength Weakness Opportunities Threat

• High level of • Not been able to • MATS having a • Intense

customer tackle the stable free cash competition of
satisfaction challenges flow can help in new dealers
present by new investing in new coming with
• Successful track entrants into the technologies and different products
record of different market new product with new
introducing new segments technologies into
products • Financial the gulf markets
planning is not • Economic uptick
• Strong base of done properly and increase in • changing
reliable and effectively customer consumer style of
suppliers spending in buying the parts
• The price of the Bahrain market from online
• 60 years of product and can help MATS channels
brand heritage spare parts are to capture new
high customers and • The taxation
• Strong increase their policies of
management • No change market share different,
with very management liabilities laws and
experienced and programs in its • By reducing the environment
highly skilled product margins of the regulations can
technical team. strategies. trucks and spare pose a serious
parts can also threat to the
• Good virtual attract new existing product
leadership by customers and categories
using team retain existing
viewer software. customers • Imitation of low
quality and
counterfeit
products in the
markets like
Bahrain, U.AE
and so on by the
Turkish suppliers.

Table 4: Self-created by the researcher, SWOT analysis of Volvo (Bhasin, 2019)

(b) Analyze the existing leaders and their styles

This can be analyzed by taking the CEO and president Martin Lundsted of Volvo
group who has won the leader of the year 2018 from the Volvo group. Martin
Lundsted received the leader of the year award in 2018 for his performance (AB
Volvo, 2018). Looking at his leadership style, he is a mixture of facilitative,
transactional and autocratic leader. He is a person who rewards people for their
skills and works and continues to maintain the status quo. Even though under his
current leadership, the Volvo is performing good, it is seen that certain sections
are not up to the mark. In order to improve his current leadership style, he can try
to be a little more democratic, so that the employees under him can feel that they
are also contributing to the company.

(c) Cross Boundary Teaming

As the technology has enabled businesses to get more globally connected than
ever before, allowing organizations to join forces across professions, geographies,
and industries. If Volvo leaders can plan for these kind of collaborations which
will be a great way to enhance innovation and cross-pollinate ideas and
competencies to get a task done efficiently (Jha, 2019).

(d) Measures to build Competencies

The Volvo group form an internal competence development team or department

which will consist of experienced technical and management staffs, to measure
the competencies of the employees, by observing their performance of the
employees and leaders constantly and by proving them adequate trainings ( both
soft skills and technical) as and when required. They can also send their leaders
for various trainings conducted across the globe, as this subject them to
international exposure and get more knowledge which in turn will build their
competence level.

3.4 Evaluation of the plan:

A well-planned and carefully executed evaluation will reap more benefits for all
leaders and the employees of Volvo than an evaluation that is thrown together
hastily and retrospectively It is important for the leader to periodically assess and
adapt the activities to ensure they are as effective as they can be. Evaluation can
help the leader and the organization identify areas for improvement and ultimately
help to realize the firm’s goals and objectives more efficiently (Zint, 2019).
Section 4

Based on certain shortcomings observed in leadership skills as discussed in the above

question, plan the development of leadership skills required for managers that will benefit
implementation of your organization’s strategic goals and objectives. Assess on how
useful these methods will be to develop the leadership skills of these managers.

4.1 Essential Leadership Requirements

Volvo group has merged and acquired with a lot of organization in automobiles which
has helped the organization in the expansion into different geographies (Malik & Shehzad
, 2014). Mergers and acquisitions (M&A) is a general term used to describe the
consolidation of companies or assets through various types of financial transactions,
including mergers, acquisitions, consolidations, tender offers, purchase of assets and
management acquisitions (Hayes, 2019). In this section the leadership requirement that is
essential for the mergers and acquisitions will be discussed.

(a) Financial Modeling

A risk benefit analysis has to be performed by the leaders which will help to
assess the value of combined business after merger in regard to the individual
company. A dilution or accretion analysis has also to be performed by the leaders
of the Volvo keeping in mind the market situations of both the companies (Lukić,
2017).

(b) Communication Skills

Good communication is essential to successful mergers and acquisitions. The

leaders of Volvo must, clearly communicate and make the employees understand
the potential benefits of merging or acquiring other companies which will help to
reduce the resistance. The leaders should also clearly make the customer
understand why the company is merging with other company and the increase in
the product portfolios after merging or acquiring other companies (Harrison,
2019).

(c) Core Industry Knowledge

The leaders should have both tacit and explicit knowledge about the product,
services or the operations of the companies which Volvo is going to merge or
acquire with. If the leader has a good knowledge on this, he will be easily able to
convince other employees and once the merger or acquisition has happened the
operation side can be smoother.
(d) Understanding of different organizational culture

The leaders of Volvo should be adaptive, as when Volvo is merging with an

Asian company, the work culture over there will be different, the leadership styles
will be different, the technology used will be different, the language will be a
problem and the employees of both the companies copping up with each other
will take a long time due to the cultural differences. The leaders should take
initiatives from their side to sort out these kinds of issues (Walsh, 2019).

(e) Understanding of PESTEL

When Volvo is expanding or acquiring the companies of other countries the

PESTEL factors as mentioned in the figure 8 should be analyzed and understood
properly.

4.2 Plan for the development of leadership skills

The plan for the development of the skills for the merger and acquisition are
explained in the below table.
 Plan What all to be done?

• Soft skill improvement training to be given to the

leaders and employees.
• Products and service training can be given to
Training and Development leaders for better understanding of the products
(Robert , 2017) and service of other company.
• Training about the software’s used by the
companies which Volvo is going to merge or
acquire if it is better software than the Volvo
software.
• Cultural awareness training.
• Internal and external trainings can be conducted
with the help of external training agencies.

• To reduce the impact or risk the change will have

Hiring Change management on Volvo group which in turn will help in
consultant fulfilling their mission and vision.
(Shirck, 2016) • Provide coaching and learning opportunities to
leaders.
• Provide the tools that individuals and
organizations need in order to implement change
in the least disruptive, most efficient, and effective
way.
• Send the leasers of Volvo to universities and
Formal Learning Programs learning center’s to educate them on change
(Taylor, 2019) management.
• Create a portal inside the Volvo portal so that the
leaders have access to large databases on the
change and they can read and study that.

Table 5: Self-created by the researcher, plans for development of skills

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