organisations, namely the strategic, operational and the tactical. These categories can be differentiated according to their effects on organisation structure, and its origination, interpolation and utilisation, respectively (Katz & Kahn, 1966: 308- 335). Strategic leadership is seen as increasingly important to the success of an organisation and is the key driver in building the organisation’s internal capabilities.
Whilst there are various perspective on the roles of strategic leaders, for the purposes of this paper, Hitt, Ireland and Hoskisson’s (2001: 497- 513) six key actions that strategic leaders engage in to bring about the successful implementation of organisational strategy, are sufficiently representative and informative. Firstly, strategic leaders need to determine the strategic direction of the organisation, usually crystallised in the form of a core ideology and an envisioned future (Collins & Porras, 1996). Secondly, Hitt, Ireland and Hoskisson (2001: 497-513) suggest that strategic leaders need to exploit and maintain core competencies in the implementation of organisational strategy.
Thirdly, Hitt et al. (2001) note that human and social capital needs to be acquired and developed as part of strategy formulation and implementation. Fourthly, an organisational culture that serves as a source of competitive advantage needs to be shaped and sustained by strategic leadership. Finally, strategic leadership needs to establish balanced organisational controls supportive of st rategic change and that serve as parameters for strategy implementation, monitoring and adjustment.
Human capital is an individual-
level construct consisting of employee-capability, -satisfaction and -sustainability (Moon & Kym 2006). Together, these three elements descr ibe the ability and motivation of an individual to perform within an organisation, in the longer term.
In a business context, relational capital (which is a form of social capital) refers to the value derived from the network of relationships that an organisation has developed both with its customers and other partners (Moon & Kym 2006). The characteristics of this capital can be understood by looking at social capital theory.
January 2012 | Management Today 33
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