Strategic Management: Formulation and Implementation

Leadership, Power, And Organizational Culture

The preceding chapter examined how an organization should be structured to carry out its strategy. This chapter analyzes how top managers can use their influence to ensure that the organization's members are implementing strategies effectively.

The top management team has at least two means at its disposal to encourage managers and other employees to put their efforts into strategy implementation:

However, to influence the behavior of others, a leader must possess power.

I begin this chapter with a discussion of the leadership, including leadership theories. Next, I examine the role of power and organizational culture.

Leadership

Leadership, an indispensable part of motivation and entrepreneurship, determines organizational effectiveness, and managers need to know about all these facets of leadership in order to implement strategy.