Table of Contents
TASK 1 3
1.1 Explain the link between strategic management and leadership 3
1.2 Analyse the impact of management and leadership styles on strategic decisions 5
1.3 Evaluate how leadership styles can be adapted to different situations 6
TASK 2 7
2.1 Review the impact that selected theories of management and leadership have on
organizational strategy 7
2.2 Create a leadership strategy that supports organizational direction 9
TASK 3 11
3.1 Use appropriate methods to review current leadership requirements 11
3.2 Plan for the development of future situations requiring leadership 13
TASK 4 15
4.1 Plan the development of leadership skills for a specific requirement 15
4.2 Report on the usefulness of methods used to plan the development of leadership skills 17

TASK 1

1.1 Explain the link between strategic management and leadership
Strategic management is defined as decisions taken by the managers in framing strategies in a
way so as to augment organization’s performance and achieve competitive advantage
(Thompson & Martin 2010) . Strategic leadership is referred as potentiality of a manager to
utilize strategies and attain mission and vision of an organization as well as to guide and
motivate other members of the organization to achieve organization’s objectives (Hill & Jones
2012) .
Both leaders and managers act in the organization to achieve the common goal of the
organization. Where managers are concerned about shaping strategic ideas and plans to achieve
organizational goals leaders are concerned about undertaking strategic actions to attain the goal.
The linkage between strategic management and leadership can be well described using the
Drotter pipeline model which identifies six key passages through which a leader grows and is
also helpful for the management to develop leaders in the organization (Charan et al. 2010) .

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Figure 1 Leadership Pipeline model
Source: (Charan et al. 2010) .

As per the pipeline model in case of first passage that is transition of a leader from managing self
to managing others, organization need to ensure that the leader understands what is the
organization’s expectations. At this passage a leader need to develop effective communication
skill, able to handle conflicts, delegate work properly and should seek 360 degree feedback for
own improvement. In case of transition from managing others to managing managers, a leader
should inhibit the role of a coach and mentor. Leader should be able to create a competent team
and use organization resources effectively. In case of third passage from managing mangers to
functional manager, a leader need to think and act strategically and should be aware of the recent
trends. In the fourth transition from functional manger to business manager, a leader needs to
have a shift in values and perceptions so as to handle the entire business functions. During the
fifth passage, from business manager to group manager, a leader need to have the capability to

broader long term goals of an organization and undertake strategic decisions. In the sixth
transition from group manager to enterprise manager that is the CEO need to be responsible for
building leadership, implementing various decision making methods to cite a few (Charan et al.
2010) .
Siemens needs to apply the Drotter pipeline model to overcome the leadership issues in the
organization such as the case of bribery (News 2012) . Moreover, organization needs to improve
the link between management and leader since employees are reluctant to report to the
management in case of any operational issues (The Economists, 2014) .

1.2 Analyse the impact of management and leadership styles on strategic
decisions
Strategic decisions of an organization are influenced by a number of factors such as style and
nature of organization’s leaders, organization’s life cycle stage to cite a few. Leadership style
inhibited by mangers especially at the top level forms the most vital factor in shaping strategies
for the organization. Developing a competitive and clear strategy is a challenging task and is
dependent highly on skills and competencies of a leader. A leader needs to have a style
exhibiting the ability of flexibility, bringing necessary changes in organizational culture, long
term viewpoint and need to be proactive in anticipating the contingencies to cite a few (Anon
2008) .
Management and leadership styles have a considerable impact on the strategic decisions of an
organization which is evident from the various organizational issues encountered due to poor
leadership style exhibited by Siemens ( Becker 2014) . The organization is believed to have poor
communication system. Employees in the organization were unaware regarding the

management’s decision of undergoing for an organization’s restructure. Employees got
information only through external parties such as reports from press or agencies, webcast to cite
a few. Employees didn’t have any knowledge regarding their job securities as well. As per the
recent information strategy of the organization employees were not considered to be a family as
considered earlier and hence transparency in information was no more maintained by the
management with its employees (Becker 2014) . This type of leadership behavior affected the
organization’s business and reputation negatively. Some of the problems faced by Siemens
includes losses in running solar power unit, interruption in high speed train deliveries resulting
into a fine worth of nearly €116 million in the year 2013, inability to relate offshore wind farms
with power grid resulting into a fine nearly to Euro 570 million in the year 2012 (Troianovski
2013) .

1.3 Evaluate how leadership styles can be adapted to different situations
Leadership is concerned about the needs of the organization and employees working in the
organization. All leadership styles cannot be adopted by a leader as per ones convenience or
liking. A leader needs to act differently in varied situations and circumstances so as to solve
complex problems at times. Leadership styles need to be tailored by the leaders of any
organization as per the demand and necessities of a particular situation. It also includes
recognizing what people in the organization demands and what are the challenges that an
organization is currently facing (Murray 2010) .
The senior management in the Siemens organization wanted to expand its business portfolio. The
organization seeks to enter into the world of digitization and automation along with
electrification so as to augment business profitability. The management aims at bringing a
change in organizational culture for such expansion (The Economists, 2014) . In order to change

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organizational culture the leaders in Siemens need to adapt transformational leadership style. A
transformational leader is characterized by the ability to persuade or inspire others. As
expectation from the team member is high this type of leadership style will help Siemens to
inspire its employees to participate in bringing about an organizational culture change required to
meet business expectations. This will in turn improve the productivity level and engagement of
its employees (Ricketts & Ricketts 2010) .
Siemens need to improve its operational performance as failure in number of projects has
affected the profitability of the organization considerably. Reasons of such failure being
employees fright to report to the management at times when problems were encountered during
project execution (The Economists, 2014) . Such situation demands the management to adopt a
democratic and participative leadership style (Ricketts & Ricketts 2010) . As per this style that is
transformational leadership, Siemens will be able to improve employee participation in
successful completion of the project by giving them ownership and rewarding them for reporting
in case of any project related issues.

TASK 2

2.1 Review the impact that selected theories of management and leadership
have on organizational strategy
Management and leadership are the two most powerful and dynamic tool commanding people
and guiding the organization’s activities. There are many contemporary as well as sophisticated
theories on management and leadership that had been proposed by theorists. Some of the theories
are Transformational theory, Transactional theories, Behavioural theory, Functional theory,

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Great man theory, Situational theory, Trait theory to name a few (Chemers 2014 ; Gill 2006 ; Waite
& Chiefs 2008) .
The management and leadership theories that have been selected are transformational and
transactional theories to review the impact of these theories on organization’s strategy.
Transformational theories: Transformational theory was framed by Burns (1978) and later by
Bass (1995, 1998) (Bass & Riggio 2006) . As per this theory a transformational leader has the
capability and skill to persuade and motivate its team members for the successful
accomplishment of organization’s objectives by aligning individual’s goals and values with the
organization values and goals. Howell and Avolio (1993), affirmed that a transformational leader
is characterized by five key traits which are inspiration, simulation, vision, team building and
coaching (Bass & Riggio 2006) . There are four components of a transformational leader which
are idealized influence, inspirational motivation, intellectual simulation and individual
consideration. A transformational leader develops strong communication network in the
organization by disseminating organization’s objectives and vision clearly to the organization’s
members (Bass & Riggio 2006) .
Impact on Organizational strategy: Since the organization, Siemens is targeting for a change in
organizational culture so as to expand its business operations from electrification to digitization
and automation it is essential to communicate to the employees the need and benefit of an
organizational change and to persuade and motivate them for such change. Moreover, in Siemens
interpersonal skills between management and employees is very poor due to huge
communication gap. A transformational leader will be able to communicate properly the
organization’s strategy and overcome resistant to culture change.

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Transactional theories: As per Burns (1978), a transactional leader is one who is task oriented
and has the ability to guide its members in a specific direction so as to achieve organizational
goals (Martin 2006) . A transactional leader is characterized by contingent reward and
management by exception (Chemers 2014) . Followers need to follow the instructions and
guidance of the transactional leader and the leader in turn rewards its followers. Apart from
rewards a transactional leader adopts various other approaches in order to accomplish
organization’s goals such as appealing to the group members, punishment, being aggressive to
cite a few. However, involvement of transactional leaders as far as group activity is concerned is
less and intervenes when the group displays underperformance (Martin 2006) .
Impact on Organizational strategy:Siemens have been facing various operational issues such as
project failures, late deliveries to cite a few. The company’s ethical dimension was at stake due
to bribery issues. One of the major concerns of Siemens is employees’ unenthusiastic attitude to
report any problem with management which in turn is hampering its organizational performance.
A transactional leader will be able to motivate employees through reward and proper guidance to
improve performance and execute work properly.

2.2 Create a leadership strategy that supports organizational direction
Leaders at any level in the organization require having expertise and skills in certain areas. Some
of these areas are knowledge and competencies in technological area, good communication and
interpersonal skills, competent conceptual proficiency so as to frame strategic decisions and
solve complex issues (Leatherman & Leatherman 2008) . Siemens in order to bring a change in
its organizational culture and improve business productivity needs to frame a leadership strategy
which will support its organizational direction and strategy. Some of the proposed strategies are:

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Self leadership: As per self leadership strategy a leader before leading other members in the
organization need to be self influenced, self regulated and self committed. A leader needs to
undergo self assessment so as to explore and identify that it possesses requisite skills,
knowledge, qualities and nature of being an effective leader. It will help a leader to realize its
capabilities to achieve organization’s success through the application of its skills and talents.
Leaders at the Siemens organization need to align their vision with that of the organizational
vision. A leader needs to be clear about organizational objectives, values and mission so that
they can communicate the same clearly to other members of the organization and motivate them
to attain the same (Neck 2006) .
Team Building: Leaders at Siemens need to give priority in building an effective and productive
team. People in an organization are from different ethnic and cultural backgrounds. Employees
differ in terms of technical knowledge, skills, competencies, specializations as well. It is
imperative for leaders to consider all these factors while building a team so as to maintain team
cohesiveness and set team culture and values in alignment with the organizational culture and
values (Malone 2009) . Clarity in role of every team members need to be maintained to avoid role
conflict. Leaders also require taking the responsibility of assessing team performance and
undertake team development process on continuous basis through effective training and
development. This will help in improving productivity of team members and hence overall
organizational performance will also improve (Malone 2009) .
Mentoring: Mentoring refers to advising, motivating and inspiring to cite a few for uplifting
employee’s behaviour. The main objective of a mentor is to help its mentee grow and develop in
the organization (Rothwell & Chee 2013) . As per this strategy a leader in organization needs to
play the role of a mentor that is advice and guides its employees so as to enhance employee’s

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motivation level. Siemens needs to adopt a mentoring approach to improve the productivity
capacity and potentiality of its employees. This will also help the organization in building a
learning organization as well. Through mentoring employees will be able to share the experience
of leaders and gain knowledge through it which in turn will contribute to the overall success of
the organization. Through this strategy Siemens will be in a position to develop an organizational
culture which will exhibit high job satisfaction, less employee turnover and high level of
employee development (Aubrey 2011) .

TASK 3

3.1 Use appropriate methods to review current leadership requirements
For an organization it is inevitable to have competent and skilled leaders which will not only be a
support to the employees but also aid in achievement of organizational objectives too. Leaders to
a large extent are responsible for organizational success mainly becausetheir traits. Siemens
presently is experiencing major restructuring which requires effective leadership skills. A
complete overhaul of existing strategic approach is proposed in Siemens as it to a large extent
suffers from issues related to bribery, inappropriate and inefficient communications, non-
transparency in information sharing, instant decision making, late deliveries of contracts, casting
off plans, declining profitability, negative impact on organizational image (Dietz & Gillespie
2012 ; The Economist 2013) . Along with this, existing organizational structure of Siemens
designed by Peter Löscher with four major departments namely, energy, industry, health care
infrastructure-and-cities was unable to support organizational operations and vision and thus
resulted in internal operational inefficiencies (The Economist 2013) .

In order to review the leadership requirements of any organization for example Siemens in this
case trait leadership theory is best applicable. It is mainly because this theory assists is
indentifying varied traits required for an effective leader.
Trait theory of leadership: The trait theory of leadership puts forward that definite set of
characteristics establish the type of leadership that will be adopted by particular human being.
These characteristics comprise of ability to take responsibilities, risks, authorities, approach and
relationships with followers, capability of taking decisions, level of tolerance, level of self
confidence, extent of social interactions, creative spirits are a few considered to be a few
examples (Northouse 2012) . Along with a proficient leader should also posses skills related to
efficient communication, management of time and stress, effective listening, planning,
management of workforce, motivating workforce to name a few (Northouse 2012) . In order to
review potential or current leadership requirements, the traits mainly required for leadership
designation are identified (Mills et al. 2006) . Based on this list mapping between prospective
leaders and leadership requirements is undertaken to determine the best suitable leader. With the
help of trait leadership theory, an organization will not only be able to identify varied leadership
traits required but also use them as benchmarks to critically scrutinize and assess leadership
performance.
Presently the culture of Siemens is infected with a number of issues mentioned above and thus
change is highly essential. By adoption of this theory Siemens to a large extent will be in a
position to identify the most appropriate leaders who will be successful in meeting the leadership
requirements essential to bring about a change within the organization. Ultimately by identifying
required leadership traits Siemens will be able to overcome organizational problems thereby
smoothly undertaking overall restructuring and renovation of organizational set up. An effective

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leader with effective leadership qualities will be able to bring in innovative ideas for supporting
organizational restructuring process and facilitate in bringing about a positive cultural change.

3.2 Plan for the development of future situations requiring leadership
In order to efficiently execute their responsibilities and make appropriate decisions it is
inevitable for leaders to be well informed along with being attentive peripheral activities within
business environment (PriceWater House Coppers 2008) . Leaders also need to be conscious
along with being responsive towards changes in technology, legal compliances and regulatory
framework especially when operating on a global scale. Thus for leaders of Siemens need to
consider not only the facets of business environment prevailing in Germany but also significantly
consider the global ones also. For Siemens in order to grow economically in a sustained manner
it is essential to foster leadership that will help the company is overcoming issues related to
bribery, ineffective communication, and change resistance (Bradt 2013 ; Dietz & Gillespie 2012) .
Along with these micro level issues, Siemens also need to overcome macro level issues related to
declining organizational profitability and intensification of competition affecting Siemens’ basic
existence (Bryant 2013) .
The future goal of Siemens is specific which is defined in its statement of Vision2020 (Siemens
2014) . The statement outlines Siemens’s strong commitment towards gaining leadership by
emerging as a sustainable company by consistently enhancing its performance and expanding
business into company lucrative business ventures which will also trigger organizational
growth (Siemens 2014) .Siemens’ dedication towards achievement of this vision is highly evident
from the decisions taken by the organization. One such decision was changing its top
management board along with shuffling of its teams responsible for corporate-oversight in the
year 2013 (Boston 2013) . During these changes even the Chief Operating Officer (CEO) was also

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changed which was a shocking happening in Siemens (Bryant 2013) . Another massive jolt that
was received by the people associated with Siemens was layoff of approximately 12000
employees under the organizational restructuring plan (Becker 2014) . This was mainly because
these job cuts were not undertaken as a part of planned change. Further the employees were not
very clearly communicated regarding the same which added to their utter dismay.
In order to convert this ‘Vision 2020’ dream into reality having effective and efficient leadership
for Siemens is the need of the hour. Highly result-oriented leaders with strong leadership are
essential for different business functions of Siemens laid down under its matrix format ranging
from manufacturing to finance, marketing to research and development and manpower
management to administration (Trott 2008) . In order to aid in achievement of this vision of
Siemens it is unavoidable for Siemens to have effective leaders. These leaders with their higher
performance quotient will help in determining the course of action that needs to be pursued along
with overcoming all the evils to which Siemens is presently subjected to. The future
developments in Siemens are backed by principles of agility, leanness, flexibility and
reliability (Bryant 2013) . Thus leadership requirement for Siemens needs to be developed
accordingly.
By appropriately planning for the future requirements, Siemens will be able to avoid situations
that require sudden actions and thus proactively pursue control mechanisms through effective
leadership.

TASK 4

4.1 Plan the development of leadership skills for a specific requirement

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Leadership plays a dominant role in crafting of organizational strategies that facilitates an
organization is gaining competitive edge thus gaining long run sustainability and profitability. It
is the leader which helps in shaping organizational vision along with varied strategic objectives
that needs to be pursued for achievement of the same. Thus a leader lays the foundations for
organizational culture and defines philosophy of an organization. In order to achieve
theexpectedfuturistic situation, the leadership skills required in Siemens should be based upon
the following parameters:
Ethical Behavior to Restore Positive Image: The negative image due to rampant bribery
practiced in Siemens is one of the most important challenges that present leaders needs to work
upon (Dietz & Gillespie 2012) . Thus the focus would be on restoring positive image. In order to
do so, the leaders need to preach and practice ethical behavior by defining values and developing
standards for the same (Pelletier & Bligh 2008) . These values and standards will act as
guidelines and thus inspire followers to fall in pursuit.
Change Orientation: The present culture of Siemens which is 166-year old is highly resistant to
change (Bradt 2013) . But in order to realize this vision developing a culture that is dynamic and
not resistant to change is the only way out. Thus the leader should prepare its followers for
tomorrow by motivating them to have a flexible approach towards change. Cultural change
which with a more open attitude towards change is to be encouraged by the leader (Bradt 2013) .
Effective Communications: Instances in Siemens highlight that presence of huge
communication gaps within the system has not only plagued the organization but also resulted in
occurrences of such massive problems. The leader thus should encourage two way
communications along with promoting communication transparency. In order to do so, advanced

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technology should be adopted that would promote free flow of information across all functions
and departments of Siemens thereby connecting global operations and employees working in
different nations (Hernez-Broome & Hughes 2004) .
In order to develop the above identified skills an integrated approach in which workshop learning
and on-the-job learning will be developed (Nelson et al. 2011) . The plan would comprise of
formal leadership development programs and action learning.
Formal Leadership Development Programs: Siemens has been an acknowledged for its efforts
undertaken to develop leaders from within the organization. The company has a personalized
leadership development program that focuses on development of leadership by concentrating on
9 major perspectives namely, strategic-creativity, management of change, enlargement of teams,
value, compassion towards intercultural aspects, focus and achievement of business results,
alliances and persuasion, leadership and orientation towards customers (Inside HR 2014) . This
leadership programs should be promoted more aggressively and concentrate on specific
leadership skills required for overcoming current issues outlined above.
Action Learning: In action learning leaders will be subjected to real life situations occurring
within Siemens and thus learn while resolving practical issues (Saks et al. 2010) . Basically
leaders will be either exposed to such problems with which are not common or to similar
situations in unusual environment (Nelson et al. 2011) . This will nourish leadership skills among
potential leaders by testing their existing capabilities.

4.2 Report on the usefulness of methods used to plan the development of
leadership skills

The plan for development of leadership skills will only be successful when leaders resort to self-
awareness plans. These plans help them in identifying their potential competencies and weak
points which they can improvise upon when subjected to planned integrated leadership
development approach (Raelin 2006) . The foundation of effective leadership and its development
is laid upon experiences by a leader in different settings namely workshop learning and on-the-
job learning. The basic objective of any leadership skills development program is to enhance an
individual’s attitude, skills and knowledge thereby raising his or her efficiency levels to perform
effectively in present and future circumstances.
The usefulness of the above methods will be explored from dependability and honesty, self
learning, and futuristic perspectives.
Dependability and Honesty Perspective: Integrity implies consistency of performance
delivered by a leader. The chosen methods for leadership development will primarily focus on
enhancing leader’s behavior in a positive and ethical direction which will thus motivate
followers to perform on similar lines (Peterson 2004) . To bring about a complete change within
Siemens, transformational and charismatic leadership is required which is possible only when the
leadership development models are based upon this perspective. These methods would focus on
nurturing leadership skills by focusing on brining about change within the organization with
ethical perspectives along with exercising control on intentions to be involved in negative or
unethical activities (Palanski & Yammarino 2009) . With the aid of dependability and honesty
perspective a leader will be in a position to resolve issues arising at differing organizational
levels and thus smoothenachievement of Siemens’ vision.
Self-Learning: Individualistic development is at the core of any leadership development
program. These development programs would foster self-learning among leaders through the

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process of self-discovery of individual strengths and weaknesses (Raelin 2006) . The leaders by
having an understanding about self will be able to take measures to overcome weaknesses and
convert strengths in competitive advantages (Kolb 2014) . Self-learning will help leaders to take
knowledgeable actions. The integrated leadership development program in Siemens will also
focus on this perspective and thus will be useful in enhancing leadership skills.
Futuristic Perspective: For leaders to be able to take proactive actions it is essential to have a
futuristic perspective (popularly known as vision). Based on the present circumstances they
should be in a position to forecast the future and take actions accordingly. These leadership
development programs in Siemens will help in developing this futuristic perspective among
organizational employees especially among potential leaders (Wang et al. 2005) .
In a dynamic business environment in which companies are striving develop human assets to
gain competitive advantage developing effective leaders is highly significant (Kolb 2014) .
Developing leaders requires investment of scare resources and thus organizations need to be
cautious while determining methods for doing so. Siemens is already experiencing a tough time
and in on the verge of complete organizational change. Thus the leadership development
programs need to consider this aspect and successful help the organization to undergo change.
Ultimately the usefulness of leadership development programs will be tested during this hard-
hitting time faced by Siemens.

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