Introduction - Analysing Leadership Styles and Employee Engagement Strategies
The following content presents a detailed evaluation of key strategic and operational aspects within an organisation. It examines how strategic choices shape organisational structure, culture, leadership, and overall direction. Furthermore, it analyses various leadership styles and their suitability, the nature and implications of empowerment strategies, and the impact of leadership on strategic decisions related to operational and financial objectives. The evaluation extends to encompass the tools and processes used for performance measurement, the effectiveness of employee engagement and relations strategies, and the organisation's environmental and social impact.
1.1: Evaluate
a) The influence of strategic choice on the structure, culture, leadership, and direction of an organisation:
Before evaluating how strategic choice can influence structure, culture, leadership, and direction of an organisation, it is important to note its strategic choice refers to the decisions and actions an organisation makes to define its long-term direction and achieve its goals.
Strategic choices are crucial because they shape an organisation's structure, culture, leadership style, and overall trajectory and it involves selecting from various available alternatives and committing resources to pursue a particular course of action.
I have based my evaluation on the strategic choices we have made as an organisation which will help us shape our future strategy. I have evaluated how these choices have impacted on the organisation as a whole and below I have demonstrated its impact and contingencies we have put in place to support this.
As an organisation our short-term strategy is a) automate our care planning, recruitment and human resources systems and processes; b) implement a newly revised internal quality assurance auditing that mirrors the Local Authorities processes and supports the upcoming new Care Quality Assurance (CQC) inspection regime.
This short-term strategic choice has impacted on the overall organisational structure where we had to evaluate all roles and identify savings to support the new long-term human capital required. Our centralised structure and operations were used to streamline decision-making and resource allocation. We had to demonstrate cost efficiency and change our structure without affecting the organisation’s profitability. As a result, we have made changes to operational, business development, recruitment, quality assurance and compliance, and finance structure and were able to demonstrate savings of £400,000 which enable us to apply the savings on new roles and systems that were required to support the strategic choices.
Strategic choices can play a significant role in determining the culture of any organisation. As an organisation, we value innovation to remain competitive in the ever-changing health and social care market and since establishing our short-term goals, we have promoted a culture of experimentation and measured risk-taking. Once all systems are implemented, we will seek stability and adherence to embed and establish these processes. So far, we have started the roll out of our electronic care planning system and the revised auditing tool, both are off to a good start; however, we have encountered difficulties that have forced us to re-evaluate a few areas for example, we identified that the training on the new system must be fool-proof and cater to all levels of intellect. Although the system is very simple to learn and follow, assumptions cannot be made that everyone will learn the same way. Therefore, we simplified the training and created a hotline for people to call when needed. We have also revised the implementation timescales to support the struggling areas.
The strategic decision we have chosen has determined the leadership style currently in use. I have adopted a more transformation style, inspiring my staff team to embrace change and focus on our goals and this has rubbed off on my direct reports. However, I have observed my Head of Operations taking a transactional leadership approach which emphasises adherence and operational efficiency. Although the styles are different it is imperative that each leader uses a style that supports the part they play on the overall strategy.
Like with any change, there has been stumbling blocks and pushbacks, and we have used different change management initiatives to get and keep the wider team on side and provide reassurance to keep up momentum.
Our strategic choices have determined the overall direction and focus of our organisation. We were aware of the workload and risks we would encounter, and we carefully considered our choices based on our long-term goals, strengths, and market trends and have aligned of these elements.
b) The role of strategic leadership and direction in turbulent markets
The role of strategic leadership and direction is crucial for organisations to navigate challenges, seize opportunities, and remain competitive. Strategic leadership will guide the organisation and team through uncertainty and making informed decisions, and modification by setting a clear direction and effectively aligning resources and efforts toward achieving short and long-term goals.
Strategic leaders provide an inspiring and clear vision for the future that helps employees understand the organisation's purpose and direction during turbulent times. This enables employees to rally around the common goal and stay focused amidst uncertainty. This cannot be achieved without effective communication, as turbulent times demand leaders to transparently communicate the reasons for changes, the rationale behind strategic decisions, and the expected outcomes to gain buy-in and commitment from employees and stakeholders.
In turbulent markets, the capability to changing circumstances is paramount. Strategic leaders must be open to new ideas, continuously monitoring, and adjust strategies and tactics as needed. This requires a willingness to explore innovative approaches, judicious allocation of resources, and risk mitigation.
Times of uncertainty often demand creative solutions. Strategic leaders encouraging employees at all levels to contribute ideas and research with new methods to solve problems and seize emerging opportunities, and also foster innovation culture. Whereas at the same time leaders creating an environment that encourages innovation and learning, ensuring that the organisation has the skills and expertise needed to adapt to new market realities.
Strategic leaders engage in scenario planning, envisioning different potential outcomes and crafting strategies to respond effectively to each scenario. This helps organisations anticipate short and long-term challenges. While addressing short-term challenges is important, a leader maintains a focus on the long-term health and sustainability of the organisation. They make decisions that connected with the core values of organizations and strategic direction, even if that requires temporary sacrifices.
Lastly, organisations operate within complex ecosystems involving various stakeholders. Ours certainly does. Relationships with customers, suppliers, regulators, and other partners are needed to ensure a collaborative and mutually beneficial approach to navigating modification.
1.2: Analyse the characteristics and suitability of a range of leadership styles
Through my research I have identified several leadership styles that can be employed to ensure strategic direction within an organisation. Effective leadership involves understanding when to employ each style and adapting to the context. A versatile leader often uses a blend of these styles which is founded on the situation, and the requirements of the team and organisation, whilst working towards a shared strategic direction.
Different leadership styles have distinct characteristics and are suited for various situations and organisational contexts. I have analysed several leadership styles and their suitability for providing strategic direction.
Transformational leaders can motivate and inspire their teams by creating a vision and developing a culture of innovation and change. They lead by inspiring their creativity, and empowering employees. This style is effective when an organisation needs to undergo significant changes, adapt to new challenges, or foster a culture of continuous improvement. It is particularly useful in dynamic industries and when a visionary approach is required. This is the leadership style I am currently adopting as our projects are rolled out; therefore, this style is suitable for our organisation on the short-term basis.
Transactional leaders focus for setting clear prospects, monitoring performance, and rewarding sanctioning based on results. They work within existing structures and processes. This style works well in stable and routine-driven environments where tasks and processes are well-defined. It is suitable for maintaining operational efficiency and achieving short-term goals. This style is widely used in our organisation by the executive team and mid-management, as an extensive part of quality assurance compliance is routine-driven.
Charismatic leaders rely on their personal charm, confidence, and persuasive communication to influence others. They often build strong emotional connections with their followers. This style can be effective in any situations where a leader's personal influence is essential, such as in startups, creative industries, or when the leader's reputation is critical to the organisation's success. This is another style I do tend to adopt when appropriate. Over the years, I have created a loyal team that work relentlessly towards our shared vision and goals.
Domestic leaders prioritise the requirements and growth of their group members, emphasizing empathy, active listening, and supporting the development of their employees. This style is well-suited for organisations that value employee well-being, collaboration, and long-term development. It can create a positive work environment and foster loyalty. This is also a style adopted across the organisation, there is a considerable investment in nurturing our staff and development to support succession planning. A large percentage of our executive and mid-management have been internally promoted.
Laissez-faire leaders deliver minimal direction and give significant autonomy to their teams. They trust their employees to make independent decisions. When working with self-motivated and experienced teams this style can be effective, though may not be suitable for situations where clear guidance and direction are needed. This is not a style I tend to adopt, nor is it widely across our organisation due to nature of our business and the risks involved. However, this is the style my line manager and Chief Executive Officer uses with me, which gives me great autonomy and the reassurance that my decisions and actions are valued and trusted.
Authoritarian leaders make decisions unilaterally and expect strict adherence to their instructions. They prioritize efficiency and quick decision-making. This style can work in crisis situations or environments where immediate decisions are necessary but might hinder creativity and employee engagement in the long run. This style is widely used in our organisation when dealing with a crisis that presents significant risks to the people we look after, employ, or to the organisation.
Democratic leaders can include their team members in the process of decision-making, seeking input and considering different viewpoints before making choices. This style is beneficial when diverse perspectives are needed to arrive at well-rounded decisions. It promotes employee engagement and can lead to more sustainable solutions. This style is also widely used with mid-management and the executive team.
I believe that the most suitable leadership style depends on factors such as the industry, organisational culture, team dynamics, and the specific challenges the organisation is facing. I strongly believe that the situation determines the style required, and flexibility is key to providing successful strategic direction.
1.3: Evaluate the nature, influence, and implications of an empowerment strategy
Empowerment, in the context of an organisation, and states to the method of providing authority, autonomy, and responsibility to make decisions, to the employees, and they take initiative, and contribute actively to the organisation's objectives and operations. It involves equipping individuals with the resources, information, and support to make meaningful choices and take ownership of their work. This strategy raises an intelligence of ownership, accountability, and engagement, ultimately leading to enhanced performance, innovation, and overall success.
An empowerment strategy aligns with leadership approaches that value employee input and engagement. However, implementing empowerment requires careful planning and consideration of factors such as communication, training, and support mechanisms to ensure employees feel empowered and not overwhelmed. A successful implementation of an empowerment strategy leads to improved performance and increased employee satisfaction.
An empowerment strategy can be applied in various contexts, and I believe it can be linked to the democratic leadership approach. By nature, it promotes participation and inclusion, capacity building and individual growth, autonomy, equity, and innovation. These are all crucial points as it can influence employee’s approach and attitude towards the organisation’s common goal and strategy.
This strategy has a positive influence and can support organisations in several ways. Although, it can positively impact and support organisations, careful consideration of challenges and implications is necessary to ensure that empowerment efforts are sustainable, equitable, and effective.
I have analysed below the positive influences and implications of the strategy, from my organisation’s perspective and experience.
When employees feel trusted and empowered to make decisions, they are more engaged and motivated. They feel an intelligence of ownership and they pride in their contributions, foresting to advanced job satisfaction and reduced turnover. However, this highlights the issue of sustainability as it requires ongoing support and resources to ensure that individuals can maintain their autonomy and continue making progress.
My experience is that not all individuals can maintain the level of autonomy causing inconsistencies in performance and missed deadlines. This is something that we reflected and learned in our organisation as this is not a “one-size-fits-all” approach, and it must be tailored to specific contexts and individuals’ capabilities and potential.
Empowerment decentralises decision-making. In our organisation, I have implemented this with the Heads of Department, who make informed choices without waiting for my approval. This provides us with a quicker turnaround, avoids intense micromanaging and helps me manage my workload. It took several years for us to reach this level, and this was to do with building trust, skills, and managing risk.
Empowerment encourages employees to think creatively and laterally. When individuals are assumed the liberty to discover new ideas and resolutions, it can lead to innovative approaches and improved processes. This must be accompanied by a sense of responsibility, ensuring that decisions made are ethical and aligned with the best interests of the organisation. This is something that I continue to monitor due to the nature of our business as decisions we make can impact in the lives of the people we support.
2.1: Evaluate the impact of leadership styles on strategic decisions in relation to operational, financial strategies and objectives on internal and external stakeholders.
The effect of leadership styles on strategic decisions which can have significant implications for an organisation. Different leadership styles can shape the way decisions are made, executed, and perceived, ultimately affecting the outcomes and relationships within an organisation. This is turn can affect morale and the overall team performance.
The choice of leadership style should align with the organisation's values, culture, strategic goals, and circumstances, aiming to create a balanced approach that considers the needs of various stakeholders and the dynamic business environment. This is not always an easy task, and it is important that focus is maintained to achieve the organisation’s ultimate objectives.
In my analysis, I looked at leadership styles that can considerably impact on operational strategies, one being Autocratic Leadership, where decisions are made by a single individual or two individuals in our organisation. Although this style is required at times, and it is very much dependent on circumstances, in my position I find it exhausting and demanding of time. I would normally question why am I making all the decisions when I have a competent higher management team? Sometimes this says more about leaders and the need to control then it says about employees, though, individuals’ capabilities play a big part in this and impact on leaders’ ability to relinquish control.
While autocratic leadership can lead to quick decisions, as opposed to democratic leadership, it can be rigid and impact on efficiency and agility. Democratic Leadership on the other hand encourages diverse perspectives but might delay decision-making due to the need for consensus.
In terms of financial strategies, I looked at transformation and transactional leadership. Transformational leaders can drive financial strategies by fostering a commitment to achieving long-term goals and by encouraging creative problem-solving that can lead to improved financial performance. This is the style that I tend to use the most as it has, in my experience, had the most impact.
Transactional leaders might excel at implementing well-defined financial strategies and achieving short-term objectives, but they might struggle with adapting to changing financial landscapes or fostering innovation. This style is more suited to operational strategies than financial, certainly in our organisation.
On objectives, I consider it important to have a combination of leadership styles to support the wider aims and objectives of the organisation. The achievement of these very much rely on employer and stakeholder engagement.
The Servant Leadership emphasises serving the needs of employees and stakeholders first. These leaders prioritise the growth and well-being of their team members, which fosters a positive organisational culture and improve employee engagement, indirectly supporting the achievement of objectives.
Whilst Authoritarian Leadership can lead to the accomplishment of objectives through strict adherence to directives, it may also create an environment of fear and hinder open communication, potentially leading to suboptimal results in the long run.
It is important that a combination of both styles is used, dependent on context and circumstance. An example that is pertinent to our organisation is the implementation of our electronic care planning system. We looked at different systems and present it to our mid-management team, their input was key to a decision being made. It was a democratic approach as we needed the buy-in. An implementation plan was devised, and this involved internal and external stakeholders. At this point we used a combination Laissez-Faire and transactional leadership styles.
On review, we identified that timescales had not been adhered to, therefore we changed to a more authoritarian style to ensure that the implementation plan is completed.
3.1: Evaluate the tools and processes used to measure the performance of your business and its people.
Measuring the performance of a business and its people is crucial for understanding their effectiveness, identifying areas for improvement, and making informed decisions. As an organisation we use several tools to monitor this, which are itemised below.
Key Performance Indicators (KPIs), these are used monthly to monitor our financial and operational performance. Finances are managed through a set budget process which is monitored via profit and losses analyses monthly. There are other set financial KPIs such as debt recovery, agency spent, turnover and payroll, which form part of a financial board report which I produce monthly to directors.
Human Resources is also measured through KPIs, and these reports demonstrate sickness, annual leave, and employment relations figures. These form part of the board report pack produced for directors.
We also have set KPIs for operational and quality assurance performance which feature scores of internal audits, training compliance, managers registrations, agency use vs commissioned hours, completion of audits, outstanding and number of events, etc. This helps us to determine the level of risk per CQC registration and act accordingly.
We complete supervisions and appraisals across the organisation which allow managers to assess employee performance against predetermined goals and expectations. These evaluations involve peer and service users’ feedback and supervisor assessments. They help identify strengths, weaknesses, and developmental opportunities for employees.
Another way we assess organisational performance as an employee and service provider is through surveys. These are carried out annually with our employees, the people we support and their relatives, and the multi-disciplinary team. These provide insights into job satisfaction, work environment, overall organizational culture, quality of service provision and reputation. This allows us to review and agree on areas of improvement.
We widely use learning events which encourages a culture of reflection and continuous improvement.
Lastly, we do use benchmarking as well, which involves comparing our organisation’s performance to competitors. This highlights areas where our business is excelling or lagging.
Measuring business and employee performance involves a combination of quantitative and qualitative approaches, some of which I have highlighted above. The tools and processes we use align with the organisation's goals and specific areas of focus. However, I regularly review and adjust these tools and processes to ensure they remain relevant and effective in driving improvements.
3.2: Evaluate the effectiveness of your organisation’s employee engagement and employee relations strategies and, the environmental and social impact of your organisation.
Before I discuss our employee engagement initiatives it is important to note that worker engagement raises to the emotional promise and involvement employees have towards the organisation. It is not just about job satisfaction; it is about how connected employees feel to the company's goals and values, and how motivated they are to contribute their best efforts. The effectiveness of employee engagement on an organisation can be substantial and can impact various aspects of the business, such as performance, retention, and turnover amongst others.
As an organisation we have implemented various employee engagement strategies over the years, and these are reviewed regularly to ensure they remain relevant. While this has many benefits, achieving and maintaining it requires ongoing effort. It involves a combination of effective leadership, transparent communication, opportunities for growth and recognition for contributions.
We use various initiatives which I believe have and continue to be very effective in their own right. The employee survey for example, it gives employees the opportunity to express their level of satisfaction and motivation, but also encourages them to share ideas for improvement in areas they feel the organisation performance could be better. These surveys have helped us to evaluate and change many practices. I produce a snapshot report which is shared with all employees, “You said, We did”, which has always been very well received.
We also use recognition and rewards initiatives such as Thank You cards, birthday cards, Christmas presents, Blue Light cards funding, long service awards and staff awards. These have impacted positively on the culture of the organisation and the feedback is that employees feel more connected which has affected turnover and retention.
In terms of health and wellbeing we provide a programme called Health Heroes, where our employees have access to GPs, exercise and wellbeing routines, counselling, amongst other benefits. This was introduced in July 2023 with the intention of providing better mental and physical health outcomes and the feedback has been extremely positive. It is still early to assess the impact this has had on absenteeism.
Regarding environmental impact, as an organisation, we carry out regular monitoring of initiatives that would be suitable for us within the sector we work with. We have been very keen to reduce our carbon footprint and in various areas have introduced a cycle to work scheme and built bike sheds to accommodate it.
We also offer hybrid and flexible working for certain roles, which has been very well received. Since, Covid-19 we carry out at least 80% of our meetings virtually, and this has reduced travel, which has increased productivity and reduced mileage claims, but most importantly reduced emissions.
The biggest change for us is our current digital transformation, which will enable us to go paper free in a few months. This will not only improve our operational oversight but also will help us to establish our environmental stewardship.
In terms of social impact, we continue to pay above minimum wage and have been fully supportive and welcoming of apprenticeship programmes. We currently employee three apprentices (two in finance and one in recruitment) which is going very well.
Our workforce is very diverse and with the recruitment crisis in the sector we have been able to secure our sponsorship license and have already placed over 150 employees from overseas. This has reduced the need and cost of agency and has enable us to continue to diversify and stabilise our teams.
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