Strategic Decision-Making

Management strategic decision-making is different than leadership strategic decision- making in that management is designed to plan and make decisions that support and build the business structure, while leadership is there to execute those plans while inspiring the changes needed to fulfill the vision of management strategic decision-making. One could exist without the other, but the business structure would lack efficiency. If leadership strategic business-making existed without management, employees would be inspired without a clear and concise direction to land in. Similarly, management strategic making-decisions absent of leadership would have well strategized plans to improve organizational structure but lacking effective leadership direction motivate achievement.

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Leadership Strategic Decision-Making

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In the textbook, an element of strategic leadership is described by executive ability to illustrate an inspiring picture of a company’s path to a future destination (Thompson, Peteraf, Gamble & Strickland III, 2018). This demonstrates leadership is likened more to inspiring and motivating members to achieve goals determined by management strategic decision-making as opposed to the creation of those structural plans. Leadership are building relationships with the communities and society. They are the ones that may be seen holding meetings with operational employees, gaining insight as to how they can improve culture or processes; creating an enjoyable atmosphere for all around.

Management Strategic Decision-Making

Strategic decision- making in management’s goal is to effectively plan the goals of the organization. This includes short term and long- term goals that center around creating a competitive edge and maximizing profits of the business. Management have the skills and foresight necessary to strategize these concepts and prepare them for execution. According to Otungu & Nyongesa, strategic programs require management support, to bridge the gap between individuals and organizations, focused on the mutual goal (2011). Management strategic decision-making will impact the goals of the organization, impacting individual performance as well as how the company competes when the goals are properly set. A competitive culture in the workforce raises the standards and performance of the company, thus impacting the company’s ability to affect their communities or rival competitors.

Leadership vs. Management Strategic Decision-Making

Management is tasked with the integral role of building the structure for which the organization will base its strategies and goals on. Leadership as defined by (Celik, Gungor, Ozkul & Tuna, 2016), can lead what is known as a proactive strategy, noticing a need for change in the business and taking steps to incite the change. This emphasizes the notion that leadership strategic decision-making is complementary to the initial management strategic decision-making in business. One cannot exist without the other, but there is order to their structure. The CEO of Amazon can be considered a strategic leader, who was able to get a host of others to see his vision for the company and lead them years down the journey, into success. In addition to the Facebook CEO who also have an illustrative vision for his company and was able to not only strategically manage the planning of those short and long-term goals, but also see it through while creating and inspiring an efficient team to help him execute successfully, maintaining a sustained competitive advantage for more than a decade.

Reference

Otungu, O., Nyongesa, W. J. (2011). Strategic Management: The link between the Agency Theory and The Company’s Competitive Advantage. International Journal of Business and Social Science, Vol 2, No. 23.

Celik, S., Gungor, A., Ozkul, E., & Tuna, P. (2016). The Relationship Between Strategic Decision-Making and Leadership Styles: An Application in 4 and 5-Star Hotels in Istanbul [Ebook] (8th ed., p. 244). Turkey: Isardar. Retrieved from http://isarder.org/2016/vol.8_issue.1_article013_full_text.pdf

Thompson, A., Peteraf, M., Gamble, J., & Strickland III, A. (2018). Crafting and Executing Strategy THE QUEST FOR COMPETITIVE ADVANTAGE [Ebook] (21st ed., p. 20). New York: McGraw-Hill Education.

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Daniel Fortune

Daniel Fortune is a successful business professional, entrepreneur, father, and lover of travel.

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