Matakuliah
Tahun
Versi
: MPG09344-010 / Leadership and Organisation
: 2005
: versi/revisi 0
Pertemuan 23
Strategic Leadership by Executives
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Learning Outcomes
After studying this chapter students should be able to:
• Understand opposing views about the importance of chief
executives in organizations.
• Understand the findings in empirical research on the importance of
strategic leadership
• Understand how impression management and attributions influence
judgments about leader competence.
• Understand the conditions that determine how difficult it is for a chief
executive to make changes in an organisation.
• Understand how tenure in office is related to a chief executive’s
leadership behaviour.
• Understand the potential advantages of executive teams and the
conditions that increase their effectiveness.
• Understand the difficulty faced by executives in reconciling
competing values.
• Understand some procedures commonly used to monitor the
environment and formulate a good competitive strategy.
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Outline Materi
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Constraints on Executive Discretion
Attributions About Chief Executives
Research on Effects of Leadership Succession
Evolutionary Change and Strategic Leadership
Political Power and Strategic Leadership
Executive Teams
Competing Values in Strategic Leadership
Monitoring the Environment
Formulating Strategy
Summary
Review and Discussion Questions
Cases
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Strategic Leadership by
Executives
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Organizational performance
• The importance of individual leaders such
as CEO – pro and con
– External determinants
– Limited discretion
– Biased attributions
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Constraints on executive discretion
Internal constraints
External constraints
Constraints and
Executive attributes
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Attribution about chief executives
• Determinants of attributions
– Factors interrelated with leader effectiveness
– Follower perception of leader competence
• Attributions and executive discretion
– Attributions about a leader’s competence and
perceptions about the need for change have
implications for the leader’s capacity to
influence the future performance of the
organization
• Impression management by executives
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• Research on effects of leadership
succession
• Evolutionary change and strategic
leadership
• Political Power and Strategic Leadership
• Executive Tenure and Strategic
Leadership
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Executive teams
• Potential advantages of executive teams
– ET has the potential to make better strategic
decisions when members have relevant and
knowledge that the CEO lacks
• Executive teams and organizational
effectiveness
– The executive characteristics necessary for
team effectiveness depend on the
organizational context in which the team must
operate, on the nature of the environment,
and on the management style of the CEO
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Competing values in strategic leadership
• Task requirements (efficiency, productivity,
investment) sometimes conflict with the desires
of organization members (higher pay and
benefits, more pleasant work environment)
• There is a trade-off between efficiency and
flexibility because the more the work is
structured to achieve economies and increase
efficiency, the less flexible the organization
becomes and the more difficult it is to make
radical changes in strategy
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• There is a trade-off between external and
internal concerns
• The effectiveness of an organization’s
leadership can be evaluated in terms of
how well the various competing criteria are
balanced (Quinn, 1988)
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Monitoring the environment
• One of the most important activities of top
executives is to monitor the external
environment and identify threats and
opportunities for the organization.
• Learning about the concerns of customers and
clients, market trends, economic conditions, etc.
• External monitoring (environmental scanning)
provides the information needed for strategic
planning and crisis management.
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Guidelines for external monitoring
• Identify relevant information to gather
• Use multiple sources of relevant
information
• Learn what clients and customers need
and want
• Learn about the products and activities of
competitors
• Relate environmental information to
strategic plans
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Formulating Strategy
• Guidelines for formulating strategy
– Determine long-term objectives and priorities
– Assess current strengths and weaknesses
– Identify core competencies
– Evaluate the need for a major change in
strategy
– Identify promising strategies
– Evaluate the likely outcomes of a strategy
– Involve executives in selecting a strategy
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Closing
• Summary
– A major controversy in the leadership
literature is whether CEOs have much impact
on the effectiveness of an organization.
– The influence of CEOs
– Struggles among different subunits or
coalitions and organization change
– Trade-offs among competing values
– External monitoring
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• Review and Discussion Questions
• Cases
– Northstar Corporation
– Columbia Corporation
• Companion Website : Exercises and
Reading
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