Organizational Behavior

Organizational Behavior Term Paper Student's Name Institution Course Code: Course Name Professor's Name Submission Date Part One: Strategic Leadership In recent decades, strategic leadership has emerged and evolved as a distinct field of thought and research that integrates fundamental domains of strategic management and leadership within the social sciences. The primary objectives of businesses are profitability, survival, and development, and such objectives prove to be increasingly difficult to attain if the firm is unable to devise effective strategies that align with the rapidly evolving business environment (Farida & Setiawan, 2022). Tipurić (2022) asserts that the equilibrium of economic, social, and environmental objectives must be fundamental to strategic leadership in collectives across all social strata, from local groupings to increasingly vast global entities. The obligation to society, the environment, and future generations epitomizes strategic leadership. Leaders who exemplify strategic thinking are essential for maintaining their organizations' relevance and adaptability to future problems. Tipurić (2022) underscores that the function of strategic leaders is to educate their followers on corporate strategy, to serve as a safeguard against deviations, and to delineate boundaries for organizational conduct. They formulate and convey decisions that influence the organization's destiny and sustainability. Strategic leadership reflects the formulation of an organization's vision, culture, and structure. An effective strategy consolidates an organization's fundamental aims, objectives, policies, initiatives, and commitments. Mjaku (2020) asserts that the contemporary corporate environment is evolving swiftly, prompting leaders to implement adaptable process techniques to facilitate organizational responsiveness to change. Strategic management fosters the establishment of a sustainable enterprise that enables firms to endure economic recessions. Effective leaders exhibit flexibility, enabling them to adapt and modify their enterprises to meet their requirements. Leaders make decisions that facilitate the attainment of the goal; thus, the paramount function of leadership is decision-making. Research also demonstrates that leadership and strategic management are profoundly interconnected, indicating that leaders and strategic managers possess distinct attributes that enable them to influence others toward achieving organizational success (Mjaku, 2020). Furthermore, strategic management is a distinct type of management that fosters a company’s competitive edge geared toward attaining corporate goals. In the contemporary demanding business environment, good leadership has become increasingly essential. Leadership must have a robust strategic component. Strategic Direction (2017) indicates that numerous organizations fail to recognize this fact. The predominant focus in these instances continues to be on operational leadership. This traditional term paper explores the evolving domain of strategic leadership, emphasizing its critical role in guiding organizations through complex and dynamic environments. With the support of evidence from peer-reviewed articles, it will argue that strategic leadership is essential for balancing economic, social, and environmental objectives and that effective strategic leaders integrate decision-making with adaptability to achieve organizational success. The paper also analyzes various theoretical frameworks to illustrate how strategic leaders develop and execute strategies, examine the role of boards of directors and real-world examples to highlight best practices and future trends in strategic leadership. Theoretical Foundations of Strategic Leadership Bloom’s Taxonomy The theory of strategic leadership has developed over time, incorporating insights from management, psychology, and economics. Strategic leadership fundamentally involves the alignment of organizational resources to attain long-term objectives. Schendel (1989) asserts that strategic leadership differs from operational leadership in that it concentrates on high-level decisions that have significant consequences for an organization's future. These decisions frequently focus on strategically placing the organization within the marketplace, mitigating external challenges, and recognizing growth potential. Using Bloom's taxonomy's cognitive domain can help strategic leadership development initiatives be carried out more successfully. In educational institutions, the hierarchical architecture is acknowledged for its positive effects on learning results. Momen et al. (2022) demonstrate that academic success escalates with the mastery of higher tiers of the taxonomy. Basic cognitive processes are linked to the preliminary stages, but higher levels facilitate the advancement of more complex reasoning. As technology, the economy, and market dynamics become increasingly intertwined on a worldwide scale, the primary difficulties confronting leaders from middle to senior levels in firms have become more pronounced. Bloom's taxonomy provides a valuable framework for comprehending the development of strategic leadership competencies. Strategic Direction (2017) asserts that employing a hierarchical approach to learning and decision-making enables leaders to cultivate the critical thinking abilities essential for making difficult, strategic decisions. The taxonomy delineates a continuum from fundamental knowledge acquisition to advanced cognitive skills, including analysis, assessment, and synthesis. In a strategic leadership setting, these competencies are vital for leaders who must assess diverse internal and external elements, foresee future issues, and formulate ways to mitigate them. Frameworks provide artificial categories to assist leaders in structuring their thoughts. However, these categories are never genuinely distinct in practice or the exclusive method for aggregating information. The Strategic Direction (2017) identified six levels of taxonomy: recalling facts and concepts; understanding them and their interrelations; using various facts, understanding, and methodologies within existing or novel frameworks; analyzing, examining, and aggregating ideas and information; evaluating and synthesizing data and information in both traditional and innovative ways; and establishing. Integrating Bloom's taxonomy into strategic leadership development enables individuals to assess and improve their leadership competencies effectively. For example, Steve Jobs was a leader who appeared thoroughly aware of the various levels of taxonomy. Education was crucial as the Apple co-founder established a reputation for creativity and vision (Strategic Direction, 2017). He frequently disregarded convention and recognized opportunities for learning in the most unexpected circumstances. The Perspective of Trait Theory and Behavior Theory Trait Theory and Behavioral Theory constitute two fundamental theoretical foundations of strategic leadership. Trait Theory emphasizes the personal attributes and qualities of leaders, positing that specific traits are linked to effective leadership. Verawati and Hartono (2020) assert that the trait theory of leadership posits that specific features distinguish leaders from non-leaders. The attributes method seeks to comprehend leadership through the premise that effective leaders possess inherent features, both physical and personality traits, from birth. Conversely, Behavioral Theory highlights the acts and conduct of leaders, positing that effective leadership is founded on acquired behaviors rather than innate characteristics (Verawati & Hartono, 2020). This theory examines the activities, decision-making processes, and communication styles of leaders and their influence on organizational success. Trait Theory and Behavioral Theory are essential for comprehending the complexities of strategic leadership. Trait Theory elucidates the intrinsic attributes that may enhance effective leadership (Verawati & Hartono, 2020). In contrast, behavioral theory provides a more profound comprehension of the actions and behaviors leaders can develop to foster organizational success. Strategic leaders are essential to any workplace (Verawati & Hartono, 2020). They must exhibit many ethical attributes to be effective and esteemed by others. Moreover, executives must possess the competencies to steer an organization toward success. Ciulla (2020) asserts that a good leader must possess the experience and abilities necessary to represent an organization. The organization must trust a leader to manage the company's logistics. This individual must convey an appropriate image and demeanor while guiding an enterprise. A fundamental attribute required in the arsenal of a strategic leader is effective communication skills. A strategic leader must possess the ability to interact effectively with individuals. Confusion in message delivery can lead to misunderstandings within a group, adversely impacting an organization. Consequently, leaders must articulate the objectives necessary to advance a company's vision (Ciulla, 2020). All individuals must be aligned in pursuit of organizational objectives. The qualities of leadership hypothesis posits that a leader's performance is predominantly influenced by their inherent characteristics or traits. The trait theory is founded on the observation of the attributes of several leaders, encompassing both successful and unsuccessful individuals. Both observations are utilized to forecast the efficacy of an individual's leadership. For example, the ability to make appropriate decisions for a company is an essential attribute of a strategic leader. These leaders must possess the ability to make decisions that assist and motivate team members in attaining organizational objectives. Making sound decisions necessitates acting correctly for appropriate reasons, at the opportune moment, and with the proper individuals. By integrating both theories, businesses can formulate a more holistic strategy for leadership development and succession planning. This comprehension can assist businesses in recognizing and cultivating potential leaders who demonstrate the requisite attributes and behaviors vital for strategic leadership. The Board of Directors as a Source of Strategic Leadership Alongside theoretical frameworks such as Bloom’s taxonomy, Trait Theory, and Behavior Theory, Castellanos and George (2020) emphasize that the board of directors functions as a source of strategic leadership. The board is essential in establishing the strategic direction of a business and ensuring that leadership aligns with long-term objectives. Talaulicar and Judge (2017) assert that there are fundamentally two primary functions for any board: the monitoring role, wherein the board is tasked with remaining informed and involved with the firm to ensure the protection of the interests of the firm's stakeholders, particularly its owners. Regarding board engagement, Massicotte and Henri (2020) assert that the monitoring role encompasses the board's oversight of the implementation of previously selected plans and tactics. This may transpire in both ex-post and ex-ante contexts (Talaulicar & Judge, 2017). The board can monitor the achievement of the firm's objectives and evaluate the decision-making of the senior management team to ascertain the likelihood of these decisions successfully fulfilling the firm's aims and aspirations. The second, and somewhat less examined, job is the board's service function. Talaulicar and Judge (2017) assert that the board may assume direct responsibility for significant strategic decisions during crises or CEO succession scenarios, or it may adopt a more indirect role by advising and counseling the senior management team in its strategic considerations. Monitoring pertains to concepts of control and often restricts the management of the firm. In contrast, the service function focuses on support and seeks to enhance strategic decision-making—an intricate balance that every board must navigate. In Spain, the 2010 law on publicly traded businesses stipulated that the formulation of general policies and plans is a non-delegable responsibility of the board of directors. The 2014 modifications to the statute, as noted by Castellanos and George (2020), incorporated a provision that explicitly designates the approval of the strategic plan, its operational plans, and budgets as a non-delegable responsibility of the board. Strategic Leadership in Practice The organization's strategy is inherently aligned with the leadership style employed within it. It is indeed true that the strategic leadership demonstrated by the firm's top management eventually facilitates the efficient utilization of optimal resources to maximize both economic and non-economic benefits (Mohammed, 2023). In the global corporate landscape, top strategic executives acquire their strategic leadership skills by exercising a certain degree of autonomy within their domains. This significant level of practice across various business contexts allows leaders to establish the overarching organizational vision and tone while concurrently determining the strategic direction of the entity. Corporations such as Apple and Amazon have persistently transformed themselves to sustain competitive advantages. Patel (2020) asserts that Apple’s co-founder Steve Jobs exemplified strategic leadership through his promotion of innovation and the cultivation of a culture characterized by creativity and excellence. His capacity to anticipate future trends, combined with his resolve to guide Apple into emerging areas like smartphones and tablets, established the foundation for the company's enduring success. A leader employing strategic leadership meticulously evaluates the diverse external and internal aspects and subsequently conveys this information to the management team for the effective implementation of the associated strategies. Schaedler et al. (2021) assert that strategic leaders must subjectively navigate the diverse levels of challenges and complications that arise, particularly those pertaining to institutional complexity and mid-level management issues. Nadella's ...