The Impact of Different Management and Leadership Theories on Organisational Strategy and Structure
Different management and leadership theories shape an organisation’s strategy and overall structure in the long run. Effective leaders and managers bring people together and empower them to work toward a common objective. These leaders assure organisational success by developing a vision, conveying a plan, and encouraging employees to work together to solve issues. Connecting their subordinates’ growth goals with clear, quantifiable, achievable, realistic, and timely strategic objectives creates a functional structure and strategy conducive to long-term performance. A leader or manager may also favorably affect their organisation’s structure by developing the leadership characteristics of experience, problem-solving ability, personality, and or self-awareness. This explains the behavioral leadership theory that focuses on how leaders behave and how they respond to the employees, thus defining the resulting organisational structure and strategy. Under the aspect of personality, as a good leader, one uses their values and beliefs to encourage their team. Successful business professionals develop clear goals and objectives for their businesses by leading by example. By committing to accomplishing the specified goals, a strategy and structure of emulating the leader are formed in this organisation.
Similarly, under the leadership trait of self-awareness, knowing one’s limitations allows one to establish realistic objectives for themselves and the organisation. By being self-aware, one will focus on the duties necessary to establish a successful company, which creates a better chance of obtaining loyalty and devotion from the followers. In the long run, this creates an organisational structure where a trusting and safe atmosphere allows for a solid organisational framework in which creative ways to addressing issues can thrive. Another profound leadership theory that shapes organisational structure and strategy is the management theory or transactional leadership. This theory focuses on a system of rewards and punishment for when employees succeed or fail. This leadership theory creates an organisational structure and strategy where employees only work hard for the rewards or to evade punishment. While this may be a negative thing, it is an extremely effective leadership style that helps build a culture of hard work by motivating and recognising employees.
On the other hand, management theories play similar roles in shaping organisational strategy and structure. An example of this is the Systems Management Theory that provides a critical method to organisational planning and management. According to systems management theory, businesses are composed of various components that must work together for the larger network to operate efficiently. According to the idea, an organisation’s performance is dependent on many essential components, including synergy, interdependence, and interrelationships between distinct subsystems. Through this approach, the culture and strategy of collaboration and teamwork are enhanced. Employees learn how to successfully work as a collective whole rather than as isolated units. Employees are one of the most crucial aspects of any business. Departments, workgroups, and business units are also important components of a company’s success. In practice, managers must assess trends and occurrences in their organisations, which help shape the desired strategy and structure that the business will take.
The Impact of Organisational Strategies, Structures, and Culture on the Management of Human Resource
An organisation’s structure refers to a systematic order of individuals who work to achieve the company’s goals and objectives. The structure comprises groups of teams and individuals that are systematically arranged and connected through different relationships. On the other hand, Human Resource Management is a set of management practices to develop human resources for improved organisational performance. Human resource management is tasked with regulating the organisational structure appropriate to achieve its goals. This, therefore, creates a connection between the two where organisational structure impacts the Management of HR in several ways. First, the role of the human resources department in the overall organisational structure is largely determined by the size of the particular unit. For instance, in small businesses, there may not be a separate HR department, and human resource functions may be carried out with the assistance of an office manager. In contrast, the opposite is experienced in large organisations. HR organisational structure is a critical aspect in any organisation because the framework and other aligning resources are part of the business strategy stating the business’ culture. The structure has a direct impact on the company’s power to attract and retain appropriate HR talent. As a result, HR’s work impacts the organisation’s future success, and it has an impact both inside and outside of the HR function.
Organisational culture refers to a set of attitudes, beliefs, and values that define employee’s behaviors in an organisation. While an organisation’s culture might align with its goals and objectives, it may also be against if the culture and organisational goals are not in sync. Given that an organisation’s culture has all to do with how employees behave and perform, the role of Human Resources and how its management is impacted comes into play. The culture of an organisation greatly impacts the management of HR in quite a number of ways. Generally, most organisations adopt well-aligned cultures and strategies that fully embrace employees and guide them toward achieving their goals. However, taking an example of companies that have business strategies fully driven by a culture of innovation, they tend to adopt an HR policy of rewarding and recognising creative employees. Due to the business culture, HR Management has been designed this specific way. Here, employees are celebrated for bringing non-existing ideas, whether or not they succeed or fail. On the flip side, some big retailers and businesses with efficiency-focused strategies tend to have cultures built to support performance, effectiveness, and the ability to fill and excel in specific roles and responsibilities. The key to success is not necessarily the type of culture a company has but how well that culture rhymes with the HR Management system. In other words, it is how well the culture supports and engages employees in working to meet business strategy expectations. Not so different from organisational culture is an organisational strategy that is likely to survive when all employees agree. HR serves as a liaison between management and employees. It has the potential to influence employees’ attitudes and behaviors towards the company and gain their support for a strategic plan. For example, an HR strategy focused on developing employee loyalty can provide the organisational strategy with the employee support needed to achieve a given milestone.
The effectiveness of the current Club HRM, and the Link between Leadership & Management and HRM
As many may tend to think, the role of Human Resources is not to manage HR tasks daily. It is purely managerial support in adding value to the business operations. The role of HR is to share challenges and goals with managers in business units. HR and managers must work together to create a competitive advantage for the organisation. On the other hand, the role of leadership is to instigate change. While managers prefer stability, the leader provides the vision, and the followers implement the vision. It is the HR Manager’s responsibility to change people management or HR policies.
The effectiveness of the current Club HRM can be understood by assessing whether the HR is delivering the necessary outcomes for the Club’s success. Among the measures to consider include employee satisfaction levels, level of employee engagement, employee training, development impacts, and employee turnover and absenteeism rate, among others (Sal and Raja, 2016). First and foremost, it is safe to say that the service HR delivers ineffective because its values and mission statements are not being met. There is low morale among the employees, especially the younger ones whose churn rate is very high. Digging deep, the reason for this high turnover rate is the evident lack of opportunities in the company and the absence of training and development programs. Another major issue is the leadership or management style (Hanaysha, 2016). The company adopts a top-down leadership style where the employees are expected to comply with instructions that come from the top management fully. This ascertains the low employee engagement levels, which is further proven by the lack of recognising and rewarding employees.
An Analysis of how the Existing Culture and Structure of the Club Might Impact on the Success of the Club Project and the Motivation of the Staff
An organisation’s culture and structure are key impacts on the overall success and productivity of the organisation and employee motivation (Osabiya, 2015). An effective organisational culture is one in which the stakeholders conform to the same values, attitudes, and beliefs and work towards the same goals. This is achieved through teamwork, cooperation and employee engagement during key decision-making processes. A culture that promotes organisational success and empowers business success is one in which the beliefs and attitudes of the employees are in line with the organisation’s goals and objectives. Besides, employee motivation and business success are boosted through proper communication where all stakeholders’ ideas are considered during decision-making. However, it is evident from the club report that the above features are far from being met. The Club has promoted a culture where the employees are just followers whose role is to heed to decisions made by the management. This not only demotivates employees but also increases employee turnover (Hanaysha, 2016). Particularly, the staff is not allowed to make decisions without consulting the department head, nor are they encouraged to propose new ideas for enhancing or improving practice. Changes in practice are frequently implemented from the top down, and staff input is rarely sought. There is no employee motivation because morale appears to be below as younger staff leave after only a few months. The Club’s business structure does not accommodate the employees’ training and development needs, which can negatively impact the success of the Club’s projects. The major changes to be witnessed in the Club need to be discussed across all departments, and employees’ contributions and ideas are considered. Employees who consider themselves part of the corporate environment are more likely to take changes positively and work harder to achieve organisational goals.
How to Develop, Monitor, and Evaluate a Leadership Strategy that Supports the Revision of The Club’s Organisational Mission, Vision, Values, and Objectives
An organisation’s mission, values, objectives, and vision statements play critical functions comprising communicating the organisation’s purpose to stakeholders, informing strategy development, and developing measurable goals and objectives to measure the success of the business strategy. Attempting to adopt a different line of the Club’s organisational mission, vision, values, and objectives will demand a proper development strategy, clear and precise monitoring, and evaluation of the suitable leadership strategy. The development step can be achieved by first stating the goals as clearly and comprehensively as possible. Monitoring and evaluation practices can be intimidating, especially when it comes to complex and difficult to ascertain as leadership development. Next in the monitoring and evaluation process summarises the specific actions and initiatives being implemented to strengthen the leadership pipeline. Now that the priorities are in check, the next is to gather the data needed to assess how well the organisation is performing the tasks it has set for itself.
Additionally, to ensure accountability, checkpoints should be created to ensure that actions committed are carried out. There is no single correct way to track or monitor progress. However, one should probably conduct a review of the actions taken to build the leadership pipeline and solicit feedback on their outcomes (Quirke, 2017). For instance, one may opt to monitor the progress of the good potential frontbenchers.
Hanaysha, J. (2016). Testing the Effects of Employee Engagement, Work Environment, and Organisational Learning on Organisational Commitment. Procedia – Social and Behavioral Sciences, 289-297.
Jalal, H. (2016). Testing the Effects of Employee Engagement, Work Environment, and Organisational Learning on Organisational Commitment. Procedia – Social and Behavioral Sciences, 289-297.
Osabiya, B. (2015). The effect of employeesâ€™ motivation on organisational performance. Journal of public administration and policy research, 62 – 75.
Quirke, B. (2017). Making the connections: Using internal communication to turn strategy into action. London: Routledge.
Sal, M. (2016). The Impact of Training and Development on Employees Performance and Productivity. International Journal of Management Sciences and Business Research, Vol. 5.