Leadership and Strategy ManagementIntroduction

The case is based on the business firm known as Tides Centre and the leadership role that the owner known as Wila Seldon needs to adopt for running the business successfully. The importance of the concept of leadership is quite high for any business and they need a proper strategy in this regard to satisfy all the conditions required in the company. There are several leadership models that the business has an option to implement in their business. All these models then contribute towards preparing a strategy for the whole organization. Therefore, all the issues related to Leadership and Strategy Management related with Wila Seldon at Tides Centre will be discussed in detail. Traditional and Modern Understanding of Leadership

The concept of leadership is a complex and challenging topic to define accurately. Theories have been developed to describe this unique phenomenon, and many researchers have attempted to define leadership, each providing a unique conceptualization. The researcher known as Bass in 2000 explained that leadership is the focus of a group process. Many researchers have conceptualized leadership from a personality perspective, inferring that leadership is a combination of special traits or characteristics that some people possess to influence others. Others have agreed that the nature of leadership is situational but contend that there are different ways of viewing the complex interactions among leader, follower, and the social context, based on the act or behaviour. With these points to consider, some people defined leadership as a process whereby an individual influences a group of individuals to achieve a common goal (Avolio, 1999, 65). (1) Traditional Leadership

There is one traditional form of leadership known as Passive /Avoidant Leadership. Both researchers identified passive/avoidant leadership as an important component of the full-range leadership development model. Passive/avoidant leadership (i.e., laissez-faire) lacks involvement; it is a passive approach to managing subordinates by waiting for them to make mistakes before taking action (also known as management by exception). Due to this laissez-faire and management by exception approach to leadership, it is expected that passive/avoidant leadership would demonstrate lower levels of effectiveness than the other two leadership styles (transactional and transformational) and should generally be avoided. Thus, while there is limited research on passive/avoidant leadership, there is little empirical support for this type of leadership. Nonetheless, it is important to mention passive/avoidant leadership because it is so prevalent in the workplace and it should be recognized and identifiable so it can be understood. Also, it is important to understand where passive/avoidant (laissez-faire) leadership falls on the transformational leadership continuum to understand the framework of transformational leadership. Passive/avoidant leadership is characterized by two major leadership strategies: laissez-faire leadership and management by exception (passive). Laissez-faire leadership is the absence or avoidance of leadership. Laissez-faire leaders avoid taking responsibility and are satisfied with the status quo and wait for others to take necessary actions. According to Avolio, these leaders are sometimes described as social loafers. Generally, with this type of leadership, actions are postponed and decisions are not made if it is possible to avoid them. Avolio suggested that, although this type of leadership strategy might not be practiced often, it is exhibited by most leaders occasionally (Avolio, 1999, 65).

Management-by-exception strategies consist of active and passive forms. The only distinction between the two management-by-exception styles is the timing of the intervention by the leader with regard to identifying mistakes. Thus, in passive management by exception, the leader waits passively for errors to occur and then takes corrective action. This approach creates a low-risk culture in which employees focus on avoiding mistakes rather than on promoting innovation and creativity. In summary, passive/avoidant leadership is a laissez-faire and passive approach to managing subordinates and passive/avoidant leaders are expected to be generally ineffective (Barling, 1996, 832). (2) Modern Leadership

There is one modern leadership known as Transactional Leadership. Burns (1978) introduced the concept of transactional and transformational leadership. Later, Bass (1985) expanded on both Burnss transformational and Houses (1971) charismatic leadership theory by creating two conceptually distinct constructs. These two constructs can be practiced by the same leader to different degrees and with different intensities. According to Bass (1985), transactional leadership has been referred to as a process of social exchange, giving something to followers in exchange for effective performance. In other words, transactional leadership is based on rewarding or punishing followers based on the effectiveness of their performance. Transactional leadership has been associated with many day-to-day management functions, where external demands require minimal adjustment in performance protocol. In addition, this leadership style takes a managerial focus in which leaders focus on making sure that the job gets done and keeping the group functioning effectively. Due to its pragmatic approach, transactional leadership has been thought of as being reactive and supportive of the status quo. However, transactional leadership builds the foundation for relationships between leaders and their followers because it focuses on specifying expectations and responsibilities, especially when followers are unsure of what to do (Bass, 2000, 40).

Transactional leadership is characterized by two major leadership strategies: contingent rewards and management by exception (active). The strategy of contingent rewards emphasizes the use of praise or rewards that are contingent on achieving expected goals or performance standards. Rewards may range from leader recognition to bonuses and salary increases. Overall, researchers have found contingent rewards to be reasonably effective at enhancing the achievement of organizational goals. Specifically, recognition-based transactions have been more positively related to follower performance than something-for-something exchanges between leaders and followers (Bramely, 1999, 153).

In active management by exception the leader constantly monitors followers mistakes and takes corrective actions as necessary. Although this transactional leadership strategy may be required on some occasions, such as in high-risk situations or military combat settings, this leadership strategy generally leads to a creation of a low-risk culture in which employees focus on avoiding mistakes. According to Avolio, even though such corrective actions can be effective, they limit long-term development of followers potential. Transactional leadership seems to be best suited when circumstances are safe and secure and followers benefit from order and structure. Based on Hersey and Blanchards (1993) situational theory of leadership, transactional leadership closely resembles the telling style in which followers are insecure, unable, or unwilling and therefore need somebody to give them specific directions for accomplishing a task (Cleveland, 2005, 176).

However, the directive nature of transactional leadership has been identified to be effective in various emergency situations in which the risk of failure is extremely high due to mortality threats or financial and physical costs. Avolio concluded that this type of leadership has been proven to be effective in military combat settings, where it has been associated positively with platoon readiness and performance. One of the main criticisms of transactional leadership is the lack of articulated organizational vision and focus on first-order directives such as policy or procedures. For this reason, this leadership approach limits organizational change and is ineffective with followers who want to do more than simply comply with directions or orders. Also, in contrast to transformational leadership, which emphasizes the quality of relationship between the leader and follower, transactional leadership focuses primarily on the contingent nature of this relationship (Avolio, 1999, 65). Researchers have concluded that, although some organizations functions effectively using contingent rewards to accomplish organizational objectives, transactional leadership can be limiting, especially when the leader has no control over rewarding followers or when facing resource constraints, such as time pressures, lack of resources, poor appraisal methods, or doubts about the efficacy of positive reinforcement. Bass (1985) concluded that, although transactional leadership is not as effective as transformational leadership, it can provide a good base for effective leadership. Specifically, transactional leadership that focuses on individualized contingent rewards for increasing intrinsic motivation and recognition may appear to be similar to transformational leadership because of the focus on individual consideration and inspirational motivation. However, these two leadership styles are adjacent to each other on the leadership continuum (Bass, 2000, 40).

There is other leadership model known as transformational leadership which is a modern form of leadership. The concept of transformational leadership has its roots in the works of Burns (1978), later expanded by Bass (1985), who distinguished three components of transformational leadership: (a) charisma, or the power of leaders personality that has profound and extraordinary impact on their followers; (b) intellectual stimulation, or the leaders ability to stimulate followers to be innovative and creative when problem solving; and (c) individual consideration, or the individual attention that transformational leaders give to each follower. Bass and Avolio (1997) broadened Basss (1985) model by adding inspirational motivation or the leaders ability to inspire, motivate, and emotionally arouse followers to accomplish organizational goals (Coad, 1998, 177).

D. J. Brown and Moshavi (2005) concluded that transformational leadership has dominated leadership theory for almost two decades. Transformational leaders have been characterized as visionary, charismatic, self-aware, and confident. They have been described as having a higher sense of vision and more willing to initiate change by challenging the organizational status quo. Bass (1985) emphasized that transformational leaders can be viewed as exceptional motivators who help their followers to achieve more than the followers thought was possible. This type of leadership is especially critical in times of stress and change when there is a need to inspire people to succeed despite adverse circumstances. Transformational leaders are also known to be competent and trustworthy and to have the ability to inspire and encourage followers to think independently and creatively. More important, they focus on identifying and adjusting to followers individual differences and inspiring them to achieve beyond expectations (DeGroot, 2000, 360).

Transformational leadership has been examined by researchers across various settings, with results consistently demonstrating the effectiveness of this leadership style. According to Murphy (2005), transformational leadership has been associated with high levels of empowerment, morale, motivation, and commitment, as well as a decline in emotional exhaustion, burnout, and absenteeism among nurses. Geyer and Steyrer (1998) demonstrated that transformational leadership has been effective for managers, primarily due to the creation of a more inspired, committed, and cohesive culture. Howell and Avolio (1993) confirmed that transformational leadership was associated with a higher follower locus of control and effectively predicted business unit performance (Geyer, 1998, 420).

Meta-analyses have confirmed a positive relationship between transformational leadership and performance, primarily because transformational leaders develop followers who are more involved, satisfied, empowered, and committed to their organizations. Some of the researchers in 2004 explored whether leadership styles were related to indicators of operational readiness, such as individual decision making and operational leadership; their results indicated that transformational leadership was a predictor of intellectual stimulation, situational awareness, and interpersonal influence. Bass et al. (2003) examined predictive relationship for transformational and transactional leadership; the results revealed that both leadership styles had positive and direct relationships with performance. However, they concluded that research still did not clarify the mediators between transactional and transformation leadership and performance (Eagly, 1990, 256). Transformational leaders have the ability to clearly articulate shared goals and a vision for the organization, providing inspiration and motivation for their followers. They inspire their followers through their visionary capacity, as well as their ability to communicate that vision effectively. Thus, these leaders are enthusiastic and optimistic and stimulate enthusiasm, build confidence, and inspire followers. This inspiration provides followers with meaning, challenge, and higher levels of self-worth and confidence directed toward accomplishing organizational goals (Shin, 2003, 714).

The researcher Avolio (1999) emphasized that followers inspiration comes from leaders with a strong set of personal values that makes them seem trustworthy and dependable. These leadership styles seem to fall on a continuum based on how leaders interact with their followers and the nature of the situation, with passive/avoidant leadership at one end of the continuum, transformational leadership at the other end, and transactional leadership in the middle. While passive/avoidant leadership can be identified as a negative, passive, and generally ineffective style of leadership that should generally be avoided, transactional leadership may be effective in situations in which follower readiness and competence are low and followers require close supervision. Transformational leadership may be ideal for high levels of empowerment, morale, motivation, commitment, and effectiveness (House, 1971, 339). Preferred Leadership styles in many organizations

The preferred leadership styles in many organizations are transformational leadership and transactional leadership. A major differentiation between transactional and transformational leadership occurred in the early 1980s when Bass (1985) described transformational leadership as a more powerful predictor of successful outcomes than traditional contingency approaches to transactional leadership. According to Bass (2000), various studies have supported the greater effectiveness of transformational compared to transactional leadership in terms of generating subordinates extra effort, commitment, satisfaction, and contributions to success. In other words, transformational leadership goes even further to articulate vision, empower and enhance the development of followers, challenge followers to think in unconventional ways, and inspire followers to accomplish the task. The process of transforming subordinates not only delegates responsibility and empowers them but helps them to assume responsibility for their own actions, enabling them to become leaders themselves (Bass, 2000, 40).

Transformational leaders lead through empowerment that impacts followers motivation, making them feel in control of their work, enthusiastic, self-confident, energetic, and productive. In contrast to transactional leadership, in which the leaders influence is exerted through contingent extrinsic rewards, transformational leaders empower their followers, thus enhancing their intrinsic motivation, self-efficacy, and self determination. Charbonneau et al. reported that transformational leadership predicted both intrinsic motivation and performance, with intrinsic motivation being the mediator between transformational leadership and performance. While transactional leaders are considered to work most effectively within the existing organizational structure, transformational leaders focus on improving that structure. Thus, transformational leadership is especially prominent in times of change, growth, or crisis, and is most effective within organizations that thrive on change and innovation (Howell, 2001, 135). Formulation and Implementation of Strategic PlanAccording to Dalton in 1999, some people fail to learn because they avoid learning opportunities and/or use bad learning strategies. However, the categories mentioned above can help one to learn more effectively. Dalton reported significant individual differences in willingness to learn from experiences. People who use a wide range of learning strategies tend to be more successful and those who are more cautious tend to be less successful. Learning strategies are helpful for people who are faced with a challenging situation. If a person uses only one or two strategies more than average, it is possible that the person is overusing or misusing those one or two strategies or is avoiding a situation because it is out of the comfort zone or deals with an unfamiliar learning strategy. However, people who use a variety of learning strategies appropriate to the situation are likely to be able to engage in a wide variety of challenging situations because they have learned to extract the lessons that those situations teach. In contrast, people who avoid challenges completely or consistently use a narrow range of learning strategies are not likely to achieve their goals (Kouzes, 1995, 198). The literature reflects consistent support for Daltons (1999) strategies of active learning, thinking through reflection, feeling with emotional intelligence, and accessing others for support. According to Cone (2001), educators are aware that it is important to teach people to be active in their learning and to think critically. Cone concluded that educators should provide an educational paradigm that encourages an environment conducive to active learning. Active learning is one of the seven principles for effective practice in education identified by Chickering and Gamson and by the American Association for Higher Education and the Education Commission of the States. The research by the Community Needs and Strengths Assessment Project, incorporated assessments into an undergraduate community health course as an active learning project. It was concluded that active learning created an environment in which people could actively solve real-life problems (Velsor, 2003, 102).

This supports the notion that action learning strategies are effective. Hovelynck (2003), a keynote presenter at the 30th Annual Experience Education Conference, mentioned that adult students who work on solving real life problems with discussion groups and reflection use both active learning and thinking strategies. This supports the notion that action and thinking strategies are complementary. The most effective transformational leaders view most situations as a learning experience with the opportunity to improve skills. These leaders reflect on experiences to see multiple perspectives and question their own assumptions to understand how things really work. While this may seem obvious, research has shown challenges can interfere with effective learning from experience and effective leadership. Therefore, these developments will lead to formulation and implementation of strategic plan in the organization (Liu, 2003, 829). Wila Seldons leadership at Tides Centre

The leadership of Wila Seldon at Tides Centre was quite good. The reason is that she constantly strived for better performance management in the organization. She had two models of Leadership to follow that were Traditional and Modern Leadership model. Though, the nature of her business made her to implement the modern Leadership model. She faced a tough business environment because there were several competitors who tried to compete with the organization. The situation required her to develop good strategies in order to survive in the business. It was very important for her to follow an ideal model of leadership in order to gain success in the business. Tides Centre did well in the past because of their outstanding sales operations and they even had a strong position in the industry. Though, in the span of few years, there were several other firms that entered the industry. The situation became tough for Wila Seldon and it demanded some good strategies to do well in the market. Therefore, it is quite clear that Wila Seldon will need to implement modern leadership model at Tides Centre (Murphy, 2005, 136). Critical Evaluation of Wila Seldons strategic planning

The critical evaluation of Wila Seldons is one of the major components of Tides Centre. There are several firms that conduct strategic planning in order to perform well in the future. One of the major reasons behind this fact is that the firms have concern regarding their future operations. There are certain external factors that cause threat to the firms operations. The basic fact behind the preparation of PEST Analysis is to assess the external factors that can affect the business quite badly. These same steps were taken by Wila Seldon before preparing a strategic plan for the organization. Tides Centre has performed well over the last few years which can be illustrated in the case. Their sales operations grew rapidly and the company easily met the demands of its consumers. The overall strategy was quite good enough for them to sustain well in the market and they even had a good reputation in the market (Northouse, 2007, 146). However, the situation is changing and there are several competitors that are entering the market and becoming the potential threat for Wila Seldon. At present, Wila Seldon needs to change their overall strategy to increase their sales operations and to attract customers towards their business. They can lose their market share if they are not going to prepare an ideal strategy for their business. These are definitely some of the issues which the firm would need to take it very seriously because the future implications of Tides Centre are dependent on these factors. Tides Centre has done well in the past, so it would not be tough for them to regain their market position. They are quite aware of the market dynamics and have prepared various strategies to run their business very well. The only factor which is there in the current scenario is that Wila Seldon needs to adopt an appropriate leadership model to form the strong foundation for their business. All these factors would contribute towards strategic planning that Tides Centre needs to prepare for the future. Therefore, this is the overall critical evaluation of Wila Seldons strategic planning (Pillai, 2004, 159). Proper strategy needed in the current situation

The steps that can be taken by anyone in the place of Wila Seldon is to prepare an ideal strategy for the business. The first factor is to assess the external environment of the business to deal with the problems that are affecting the business. The second option is to assess the internal characteristics of the business in order to see that whether the business requires any improvement or not. Then the business can look at their past performance and compare it with their present statistics to assess the reason for the difference in the performance levels. Then the most important factor is to adopt an appropriate leadership model that the owner can adopt to run the business well. Therefore, these are the steps that can be taken by anyone in the place of Wila Seldon in order to prepare an ideal strategy for the business (Reinhardt, 2004, 31). Conclusion

It is quite clear from this assignment that the importance of leadership model and strategy management is very high for any business. It has been seen that a well-defined strategy and the adoption of an ideal leadership model by Wela Seldon at Tides Centre will prove to be quite useful for the business. These factors will even help business in preparing strategic planning for the whole organization. Therefore, all the issues and aspects related to leadership and strategy management will be discussed in detail. ReferencesAvolio, B, (1999), Full leadership development: Building the vital forces in organizations, Thousand Oaks, CA: Sage, pp. 41-65.

Barling, J, (1996), Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment, Journal of Applied Psychology, pp. 827-832.

Bass, B, (2000), The future of leadership in learning organizations, Journal of Leadership Studies, pp. 18-40. Bramely, P, (1999), Evaluating effective management learning, Journal of European Industrial Training, pp. 145-153.

Cleveland, J, (2005), Gender discrimination in organizations, Discrimination at work, Mahwah, NJ: Erlbaum, pp. 149-176. Coad, A, (1998), Transformational leadership and learning orientation, Leadership and Organization Development Journal, pp.164-177. DeGroot, T, (2000), A meta-analysis to review organizational outcomes related to charismatic leadership, Canadian Journal of Administrative Sciences, 17, 356-360.

Eagly, A, (1990), Gender and leadership style: A meta-analysis, Psychological Bulletin, pp. 223-256.

Geyer, A, (1998), Transformational leadership and objective performance in banks, Applied Psychology: An International Review, pp. 397-420.

House, R, (1971), A path goal theory of leader effectiveness, Administrative Science Quarterly, pp. 321-339.

Howell, J, (2001), Understanding behaviour for effective leadership, Upper Saddle River, NJ: Prentice-Hall, pp. 90-135. Kouzes, J, (1995), The leadership challenge: How to keep getting extraordinary things done in organizations, San Francisco, CA: Jossey- Bass, pp. 121-198. Liu, A, (2003), The power paradigm of project leadership, Construction Management and Economics, pp. 819-829.

Murphy, L. (2005), Transformational leadership: A cascading chain reaction, Journal of Nursing Management, pp. 128-136.

Northouse, P, (2007), Leadership: Theory and practice, Thousand Oaks, CA: Sage, pp. 102-146. Pillai, R, (2004), Transformational leadership, self-efficacy, group cohesiveness, commitment, and performance, Journal of Organizational Change Management, pp. 144-159.

Reinhardt, A, (2004), Discourse on the transformational leader meta-narrative or finding the right person to do the job, Advances in Nursing Sciences, pp. 21-31.

Shin, S, (2003), Transformational leadership, conservation, and creativity: Evidence from Korea, Academy of Management Journal, pp. 703-714.

Velsor, E, (2003), The Center for Creative Leadership handbook of leadership development. San Francisco, CA: Jossey-Bass, pp. 76-102.