LEADERSHIP STYLES AND STRATEGIC PLANNING

Leadership styles and Strategic Planning

Summary

Purpose - This study aims to critically analyze dynamic rock in relation to Leadership styles and Strategic Planning. It provides significant value for both practitioners and academics and also provide analysis on how the company can strengthen its position for long term sustainable competitive advantage .Design/methodology/approach - Leadership styles and strategic planning outcomes were measured using Bass and Avolio's multifactor leadership questionnaire (MLQ). Porter et al.'s organizational commitment questionnaire (OCQ) was used to measure organizational commitment of subordinates. A total of 156 respondents (project managers, engineers and architects) working in construction projects in Thailand participated in the study.Findings - The leadership style and strategic planning have a positive association with work performance and organizational commitment of subordinates and strengthen its position for long term sustainable competitive advantage.Practical implications - By applying the results in practice, project managers can adjust their leadership behaviors to support subordinates in producing high work performance and strengthen organization position for long term sustainable competitive advantage.Whereas the Porter's 5 forces function of construction companies can also help these results for strengthen organization position for long term sustainable competitive advantage.

Introduction

Effective leadership is essential for every construction project and leadership behaviour is an important variable having significant impact on the success of project management. In practice, there are many construction projects facing problems and the causes of the problems can often be traced to the project managers. Some of them may have insufficient competencies or their traits may not fit with the nature of their work. Besides, they may use inappropriate leadership styles in dealing with subordinates on construction projects. Effective performance and great work outcomes from subordinates are always desirable, but they do not always happen.(Atkinson,1999,317)

Leadership, commitment and work performance

The word leadership means different things to different scholars. It has been described in terms of the position, personality, responsibility, influence process, an instrument to achieve a goal, behaviours, result from interaction and given some other meanings by various scholars. Most definitions have a common theme of directing a group towards a goal.(Barling, 2002,827) Therefore, the definition of leadership used in the present study is the process (act) of influencing the activities of an organized group in its efforts toward goal setting and goal achievement.

Leadership approach

The present study uses charismatic leadership approach to identify the leadership style of project managers. In this approach, leadership is conceptualised by the behavioural areas from laissez-faire style (non-leadership), through transactional leadership (which hinges on reward system and punishments), to transformational leadership (which is based on inspiration and behavioural charisma). The approach is chosen because of its currency in management research and the efficacy demonstrated through research findings. The various components are now elaborated. (Barling, 2002,827)

Transactional style

Transactional leaders focus mainly on the physical and the security needs of subordinates. The relationship that evolves between the leader and the follower is based on bargaining exchange or reward systems.(Xiao,2003,322)

Transformational style

Transformational leader encourages subordinates to put in extra effort and to go beyond what they (subordinates) expected ...