Under the rapidly changing business environment, the role of Chief Executive Officer has become more important. Especially their Leadership is now essentially important.
This study aimed to test the structural correlation among the strategic leadershi...
Under the rapidly changing business environment, the role of Chief Executive Officer has become more important. Especially their Leadership is now essentially important.
This study aimed to test the structural correlation among the strategic leadership, management strategies, organizational changes, and management performances. Most of the past studies regarding organizational management performances were conducted based upon different leadership types of the Chief Executive Officer. It is very difficult to find a study dealt with the business performance based upon CEO’s strategic leadership.
This study explored this issue and found significant results.
Metrics derived through literature review were used and applied to test hypothesis of this study. Fifteen hotel companies were selected in Korea. Compared to studies currently available which observed manager in the organization, this study observed only top manager who excises strategic leadership.
The hypothesis was tested by using LISRE, statistical package deriving structural equation model.
The outputs of this study are summarized as follows.
There are significant relationship between CEO’s strategic leadership and manager strategy, between CEO’s strategic leadership and organizational change, between strategy management and organizational change, between organizational change and business performance.
Surprisingly, the hypothesis, regarding significant relationship, between strategy leadership and management strategy, between management strategy and business performance were not accepted.
This results of this study show that First, management strategy derived from CEO’s strategic leadership can be a significant role for business performance, but individual dedication derived from desirable organizational culture also can be a critical factor. This is because of labor intensive nature of the hotel business.
Second, this study found that the organization's business strategy as a result which is positive changes of members’ behavior is an important role for organizational change. That is the goal of delivering a variety of performance measures and monitoring processes, provide feedback, and performance-based rewards to motivate the members to contribute to business performance is through. Therefore, a variety of organizations, rather than highlighting only the financial performance with non-financial performance that suggest that consideration should be used. Finally, the importance of the chief executive’s leaderships is founded. As CEO of the center of the system, the choice of management strategies have very different strategic choices in the new business situations. CEO will recognize that members of organization should be seeking opportunities in some sectors in order to inform, plan and objectives for the achievement of communication in order to achieve goals, and are constantly improving the movement should be shared with other organizational members stand. These organizational tensions over the leadership of Chief Executive Officer of the balance should be used catch. Organization grows, managers opportunities and competitive pressures have increased while the time and attention is slipping but must cope which the CEO's strategic leadership through the management strategy, organizational change through the company's balance an important tool called has been suggested.