mgt 405 - chapter 11: strategic leadership

What is strategic leadership?

The process of transforming an organization into what the leader wants it to become.

What are the three interdependent leadership activities?

Setting a direction, designing the organization, and nurturing a culture.

What does “setting a direction” involve?

Scanning the environment and creating a strategic vision that guides mission and goals.

Why is setting a direction important?

It increases engagement, clarity, and commitment among employees.

What does “designing the organization” involve?

Creating structures, systems, and processes to implement strategy.

What happens when organizational design is poor?

• Unclear responsibilities

• weak motivation

• poor coordination

• ineffective control

What does nurturing a culture involve?

Modeling ethical behavior and reinforcing values through systems, policies, and role modeling.

What are common barriers to organizational change?

Vested interests, systemic barriers, behavioral barriers, political barriers, and time constraints.

What is power in leadership?

The ability to influence others to accomplish goals.

What are organizational sources of power?

• Legitimate

• reward

• coercive

• informational

What are personal sources of power?

• expert

• referent

What is emotional intelligence (EI)?

The ability to manage oneself and relationships effectively.

What are the five components of EI?

• Self-awareness

• self-regulation

• motivation

• empathy

• social skills

How does EI benefit leaders?

Improves trust, communication, relationships, and teamwork.

What is a downside of high EI?

Over-identifying with others, indecision, overcriticism, or creating fear through micromanagement.

What is a learning organization?

A firm that adapts, innovates, and continually improves through ongoing learning.

What are the five elements of a learning organization?

• Purpose/mission

• employee empowerment

• internal knowledge sharing

• external information gathering

• challenging the status quo

Why is mission important in a learning organization?

It motivates people and encourages proactive, creative behavior.

What does empowering employees require?

Leaders acting as coaches, valuing ideas, building trust, and delegating decision-making.

What does sharing internal knowledge involve?

Best-practice sharing, collaboration, experimentation, and using technology to connect teams.

Why gather external knowledge?

To recognize customer needs, benchmark against competitors, and identify opportunities or threats.

What does “challenging the status quo” mean?

Encouraging dissent, risk-taking, and learning from mistakes to promote innovation.

What is organizational ethics?

Values and standards guiding acceptable behavior within the organization.

What is ethical orientation?

How a leader’s values shape behavior, trust, and commitment.

What is a compliance-based ethics program?

An approach focused on preventing, detecting, and punishing legal violations.

What is an integrity-based ethics program?

An approach based on shared values, purpose, and organizational vision to inspire ethical behavior.

What are four elements of an ethical organization?

• Ethical role models

• corporate credos/codes of conduct

• ethical reward systems

• ethical policies

What makes an ethical role model effective?

Consistency between words and actions and taking responsibility for ethical failures.

How do reward systems support ethics?

By rewarding ethical behavior and discouraging unethical outcomes, even if profitable.

What is the purpose of ethical policies and procedures?

To guide employee behavior, prevent misconduct, and ensure compliance with standards like Sarbanes–Oxley.