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Introduction about Renault Nissan alliance:

The alliance between Nissan and Renault started in 27 March 1999, in this period the auto industry was a period of rapid consolidation.
The two companies sell more than one in ten cars worldwide.
RenaultNissan Alliance is a Franco-Japanese strategic partnership between automobile manufacturers Renault, based in Paris, France,
and Nissan, based in Yokohama, Japan,
The two companies have nearly 350000 employees and control and control eight major brands Renault, Infiniti, Lada, Datsun, Dacia,
Vencia, Renault samsing motors.
The strategic partnership between the two companies the two companies Renault and Nissan wasnt a merger or acquisition.
The alliance was joining together through a cross-shareholding agreement. The structure was unique and string in the auto industry
during 1990s.
Carlos Ghosn is the chairman and CEO of the Alliance, Ghosn is a Brazilian-Lebanese-French businessman who is also chairman and CEO
of Nissan Motors and holds the same positions at Renault.
The goal of the Alliance is to increase economies of scale for both Renault and Nissan without forcing one company's identity to be
consumed by the others.
Collaboration between Renault and Nissan also focuses on capital-intensive research projects such as sustainable, zero-emission
transportation and development of automobile manufacturing in emerging markets such as Brazil, Russia, and India.
A.C.1.1: discuss and explain the link between strategic management and leadership in Nissan:

What is strategic management?

Strategic management is an organized development of the resources of the functional areas which are financial, marketing, and technological.
In the pursuit of its objectives it is the use of all the entity resources. It is a set of policies adopted by senior management, which guides the
scope and direction of the entity; it takes into the account the environment in which the company operates.

From another point of view strategic management is a systematic analysis of the elements related to the customers and costumers (the
external environment) to provide the basis for maintaining optimum management practices.

We also can define the strategic management as the art and the science of formulating, Implementing and evaluating cross functional
decisions which help the organization to achieve its goals.

Strategic management is main job to analyze the right position of the business and the position the organization want to reach in the future
and how to reach it.

Strategic management is to develop policies and plans to achieve these objectives and goals and to allocate the resources in its right places to
implement the plans, strategic management is the highest level in the managerial activity and usually performed by CEO and executive team.
What's Leadership?

Leadership is the process of using well considered tactics to communicate the vision to the organization. The main role of leadership is to
manage, motivate, and share the vision inside the organization. Leadership can be important tool for implementing change or restructure the
organization.

Leadership helps the organization to have a vision and direction to success and to deal with the changed inside and outside the organization.
Executive managers should have the skills and tools which help them to formulate and implement strategy.

Leaders who manage the change have the ability to provide a sense of direction and build alignment and ownership inside the organization to
make the change.

Leaders also should be adaptable and growth oriented, they work to get the tasks done by training the employees to think in an
effective way.

Another important goal of leadership if productivity, leaders focus on empowers, encourage and motivate the employees and
they appreciate the unique talents and efforts, leaders reward quality workers by promoting them and offering incentives to
encourage them to keep the unique work.

Creating a suitable environment is on of leadership's goals and it need unique performance to make change and should have
four characterizes:

Ambiguity
Uncertainly
Complexity
Volatility
The link between strategic management and leadership:

Strategic management is to put the plans to reach the organization goals and objectives and achieve success meanwhile the leadership works
on the implementation of the strategic goals. The leaders put the strategies and it includes the management and the way the goals will be
achieved.

Strategic management and leadership are connected but not directly. The work of the leadership of the organization is the way of achieving
the goals.

Leadership sets the direction to the people inside the group. Strategic management is responsible for people and the organization resources.

We can consider the leadership as the bridge between the strategic management and its target as leadership works to get the organization
their tasks and targets.

Good strategic management and unique developed leadership are the skills which work together to achieve success to the organization.
Strategic management is nothing without leadership and leadership without strategic management will not last for long time.
A.C.1.2: compare and contrast the impact of management and leadership styles on the strategic decisions in Nissan:

Leadership has a huge impact on the organizations and their success, as leaders define values, culture, and motivation and empower the
employees.

Leaders also played a very important role in shaping the organizations' strategies. Leaders can have jobs at any level in the organization not
only the managerial cadre.

Successful leaders have a great influence in the resources of the organization to gain the maximum profit, measuring the effectiveness of the
leadership depends on sharing the vision with the employees inside the organization.

As we mentioned that the leadership had a great impact on restructuring the organization and shaping the strategy, in our case Nissan Louis
Schweitzer number two at Renault has said that he would not sign the alliance without Carlos Ghosn agreement as he was sure that Ghosn has
the skills of the effective leader as he has reputation of Michelin'd North American operations including the acquisition and of Uniroyal
Goodrich.

Louis Schweitzer trusted Carlos Ghosn in restructuring Nissan and put it back on the track.

Leadership Styles:

Autocratic:

Autocratic in one of the leadership styles and we consider it as one of the classic types. The autocratic leaders are inexperienced with
leadership thrust in a new position or the responsibility of leading and developing new employees.

Shared vision is one of the most important elements that help the organization to achieve its goals. In the autocratic style there is no shared
vision and that might damage the organization as they force the employees to execute strategies and services based on their own point of
view of how success can be achieved, autocratic leaders usually dont depend on motivating and encouraging the employees, also innovation
and creativity arent eliminated by autocratic leadership and it create demotivation.

In our case Nissan I dont think that Carlos Ghosn followed this style of leadership as no shared vision or common long term plan was one of
the disadvantages of Nissan he wanted to solve.

During his first week in Nissan, Carlos Ghosn announced a quasi-stock incentive plan for its 30 executive officers including the new board
members from Renault. We can consider that Carlos Ghosn followed the autocratic style in this situation.

Democratic:

Democratic is one of the leadership styles where the group leads itself. Egalitarian is the core.

Democratic leadership depends on the motivation and innovation as the employees share in making the decisions. Leaders work hard to build
consensus even in the most mundane decisions. Followers feel the ownership of the organization.

The disadvantage of the democratic style is the delay in making the decisions. Another problem face the democratic leaders that everyone has
an equal stake in an outcome as well as shared levels of expertise with regard to decisions and that can be done.

The democratic leadership is good as a theory.

- In our case Nissan, Carlos Ghosn chose people who were very open minded and not who wanted to play solo. Carlos Ghosn listened
inside the organization to know what he should do to put Nissan back on the road and he thought that if he kept listening it will lead
him back to France.
- After accepting the Nissan job he set up nine cross functional teams (CFTs) to generate ideas and recommendation for change.
- The (CFTs) werent made up only of senior managers but also it included the line managers from different departments and divisions
both international and Japanese. Carlos Ghosn has used this approach twice before and it was successful in the two times one of them
was for the integration of Uniroyal and Michelin and the other was for Renault turnaround.
- The (CFTs) has former Renault managers as they have the experience with this approach. The size of the (CFTs) was limited to avoid the
endless debating, and then we can avoid the disadvantage of the democratic style which is delaying in making decisions.
- Nissan Revival Plan (NRP) has been elaborated through broad based ans intensive debate in cross functional teams generating over
2000 ideas, then (NRP) was made by the workers inside the organization.

Bureaucratic:

Bureaucratic leaders focus on crating and executing the policies to achieve the organization goals. Bureaucratic leaders use the stated policies
to convince workers to follow them and they are committed to the policies and procedures instead of people. The problem that might face the
bureaucratic leaders is that using policies to lead aren't always obvious until the damage is done.

The threat that faces the bureaucratic leaders that the using of leadership benefits like motivating, encouraging, empowering and developing
followers will not be effective as the policies arent enough. The disadvantage of the bureaucratic leadership is that the leaders have that
concept that the policies are more important than people. The problem isnt about the policies nut it might demotivate the followers and
frustrate desired outcomes.

Charismatic:

Charismatic leadership is one of the most successful styles of the leadership as leaders have vision and they share it with their followers.

Charismatic leaders motivate followers to execute the shared vision. The organization's employees want to follow the charismatic leaders.
One problem face the charismatic style, charismatic leaders rarely can be replaced then if the leader decided to leave the organization will lost
the direction and it may last for years. Charismatic leadership based on the strength of the personality.

As a result of using this type of leadership there will be a lot of happy followers but few of future leaders.

Situational:

Situational leadership is one of the leadership styles. It depends on adopting different styles for different situations or outcomes.

The advantage of this leadership style that it give the experienced leaders the chance to choose from a variety of leadership styles.

The disadvantage of this style appears when the wrong style is applied like bureaucratic and autocratic. Seasoned leaders are aware of the
needs of the organizations and how important the individual motivation is. This style requires a warning or disclaimer related to unintended or
less than optimal results when choosing one of these styles.

Transactional:

This type of leadership is called the wheeler-dealers of leadership styles. Transactional leaders can give you anything to follow them. It can be
a raise or performance review or promotion, but there is a problem if the only motivation to follow is to get something then there will not be
motivation in the lean times when resources are stretched thin. Transactional leaders sometimes display the traits of behaviors of charismatic
leaders.

Transactional leaders are great in making deals that motivate their followers. The issue in this type is sustainability.
Transformational:

In the transformational leadership, leaders focus on their followers' point of view. Transformational leaders change the people the lead by the
strength of their personality or bargaining to persuade followers. Transformational leaders use their expertise and knowledge to change their
followers and make them deeply believe in what their leaders convince them even the leader is now longer in the scene.

Transformational type can be considered as the most valuable type as it gives the followers the chance to develop themselves.
Transformational leaders are desired as they focus on getting their followers on board based upon their own evolving thought process and
changing responses to leadership challenger.

- In our case Nissan, Carlos Ghosn convinced his followers with the idea that if Nissan success and get back on the road they would
happen because of them. Carlos Ghosn gives them the deep believe of Nissan Revival Plan.
- Ghosn decided that all the top-level meetings will be conducted in English and that reports will be produced in English.
- In my opinion Carlos worked hard to convince the Japanese workers to change their language as the Japanese people are very proud of
their own language and culture, then he achieved his goal in changing his followers.
A.C.1.3: evaluate how leadership styles can be adapted to different situations:

The most important thing to be an effective leader is to be aware of the needs of the followers and that would be the key of choosing the
leadership style that would help to achieve the organization goals. There is many types of leadership styles, none of them are wrong. It
depends on the respond of the followers.

The first step in adapting a leadership style is to identify the leader's intrinsic leadership and understanding the leader's own natural
leadership style. The main leadership's styles are democratic, autocratic and laissez-faire.
- Democratic leaders listen to the workers, support the innovation and creation and depend in their opinion in making a decision.
- Autocratic leaders tell the workers what to do and control the work.
- Laissez-faire leaders are very hand-off, the workers dont depend on the leaders but they are available when their help is requested.

The second step for adapting a leadership style is to know the advantages and disadvantages of the three main leadership styles.
- Democratic style advantages are that the leaders gain the respect of their followers. Workers appreciate feeling valued and they will
work hard to achieve the organization goals. Democratic style can be effective when there is conflict between the workers.
- Autocratic style's advantages are that the work will be done in short time and the workers are productive.
- Laisser-faire style is effective with experienced followers and where there is a high degree of skill and knowledge among the workforce.
If the followers aren't skilled then the organization will face a disaster.

Each leadership style is suitable for different situations.

Step three in adapting a leadership style is appreciating the diversity among the followers.
- The diversity in organizational psychology is the difference between the people that define the culture and create the work place.
- The successful leader should leave any preconceptions or prejudices at the door and focus on the relation between the workers each
other's and the relation with their jobs, the less experienced workers will respond to the autocratic style more than any other
leadership style. The more experienced workers will respond more to the laissez-faire leadership style.

Step four in adapting a leadership style is experience with different leadership styles to know which style will work best with workers.
Knowing the workers will also provide the leaders with the sense of direction and how much freedom they need to be productive, using
the "open door" approach is also effective as it give the workers the chance to discuss work-related issues.
A.C.2.1: assess the impact that selected theories of management and leadership (two or three theories) have on organizational strategy.

The two theories of leadership I will talk about are:

Situational and contingency style theory of leadership.


Transformational leadership theory.

Situational and contingency style theory of leadership:


Situational theory: this theory suggests that different situations require different styles of leadership. The leader should has the ability to
adopt or adjust more than a style to the conditions of the situation, the leader uses a more directive or supportive style based on assessing the
committing of the followers to the leader. In this theory analyses and syntheses of workflows are very important in order to help the
organization to increase the workforce productivity, workers are different from each other, a very effective theory may work for a person,
,may not work for another person.
Most of the time, management and workers' economic interest are not the same, the workers may not accept all the strategies the
management applies, they can refuse to abide by and that create resentments between them and the management, so it is important to
analyze and synthesis work flow in the organization.
Contingency theory: This model involves a potential leader and assessing his style of work from task oriented to relationship oriented. Then
factors such as stress level, type of work, flexibility to change in groups, use of technology and coordination of resources, people and tasks are
being explored and the correct style of management is being implemented. Also the style chosen depends on both internal and external
factors of the organization. In this theory, the leader's effectiveness is based on a situational contingency which is a mix of leadership style and
situational favorableness, the leader's effectiveness is contingent on how well the leader's style matches a specific situation.
There are similarities between the two theories, then there was a merger of ideologies constituting that the effective of the workers requires a
leader style and situational demands to match. There are three elements which structured the leader's role: the loyalty of the followers feels
toward their leader, the ambiguity or clarity of the tasks toward the workers and the power and the effort the leader give to the group.
The difference between the situational and contingency theories that the situational theory focus on the adapting to the situation meanwhile
the contingency theory sees that the effective leadership depends on the balance between the leader's qualities and style.

Transformational leadership theory: the word transfer means change; transformational theory is about change the point of view of the
followers and their expectations about the organization. It is about made a change in the life of the organization and followers.
To be a transformational leader, then the focus will be on motivating and supporting the followers to help them to achieve the organization
goals, being energetic and enthusiastic is very important to be a transformational leader.
Transformational leaders should have strength of vision and personality which help them to convince the followers to change their
expectations and perceptions towards the organization.
The impact of the transformational theory:
As we know the different theories has huge impact on the organizations like:

The leader will gain the followers trust and respect.


Transformational leaders always keep in touch with their followers.
Transformational leaders encourage the followers to innovate and create new methods to achieve their tasks.
Transformational theory gives the leader the opportunity to pay attention to the followers' needs.
Transformational leaders offer support and encourage to the followers.
This theory helps the followers to feel loyalty towards their organization and works hard to achieve its goals.
Sharing ideas between the leader and followers as the relationship between them is strong.
The leader in the transformational theory isnt just a leader but I role model the followers want to follow.
A.C.2.2: create a leadership strategy that supports organizational direction:
Creating a leadership strategy to know how many leaders the organization needs and in which fields and how they would behave individually
or with their followers.
In order to reduce the gap between where we are (current situation) and where we want to be, we have to analyze both of them to choose
the most suitable leadership style and follow it.
In our case Nissan, there is a gap between the current situations and where we want to be. We have to convince the employees that they have
the strength to had Nissan's back to the wall and they are who can make change to Nissan.

Becoming more global:


Nissan needs to be more global to serve in areas they were weak in like Europe and Latin America
Leaders need to be more sensitive towards the difference in the cultures.

Focusing on the customer needs:


The leaders need to be aware of the profitable models of the cars and what the customer want to buy.
Focus on creating more models which are suitable to the customers.
Understand the customer needs and translate it to business practices.

Becoming more innovative:


Leaders need to be more involved through all the departments.
Increase the communication between the function, borders and the hierarchical line.

Innovations in organizations:
Innovation is one of the directions that were given to the organizations, it is very effective and organizations have to focus on the creativeness
that develops the innovations.
Human resources in organizations:
Human resources can be considered the most important and effective department within the organization as it directs the way of
development and growth, human resources department organize the major issues in the organization.
Recruitment and selection is the first activity that is done by human resources department.
The organization can publish advertisement about their needs and available vacancies; it also can contact the recruitment companies for
better selection.
After the advertisement and contacting the recruitment companies part the interviews part comes, if someone passes the interview then he
got the training to get the chance to join the organization, it is the sources of the innovation and renewable ideas within the organizations.
A.C.3.1: Assess leaders' performance in Nissan, using an appropriate method of evaluation.

COMPETENCE
SKI COMPETENCE JOB IMPORTANCE EVIDENCE FOR THE LEVEL
X
LL OF COMPETENCE
JOB
1 2 3 4 5 1 2 3 4 5 IMPORTANCE
LEADE
RSHIP Adapting with Japanese culture
is a very important point, as
Adapting with Japanese culture
the Japanese people are very
proud of their culture.
Carlos started with a course
aiming to familiarize his team
5 to Japan and the Japanese
society.
He was clear about the goal
they were in japan, only to
help Nissan to get back on the
track.
Carlos didnt depend only on
the meetings but also visited
the research facilities and
production plants to talk to the
Japanese employees.
Carlos said that the changes
that will help Nissan will come
from the heart of the Japanese
society
Carlos Ghosn followed the
Ability to diversify leadership styles autocratic style when he
depending on situation introduced a number of
changes and announced a
quasi-stock option incentive
plan only for its 30 executive
5 officers, also when he
announced that all the top
meetings will be conducted in
English, the employees in
Nissan knew that it is an order
not option and they have to

learn English or they are out.
Carlos Ghosn followed the
democratic style when set
nine cross-functional teams to
generate ideas an
recommendations for change,
the cross functional teams
werent made up only by
senior employees but also the
lines managers from the
different departments.
Carlos said in his first meeting
that every employee who is
Ability to encourage and motivate the
able to make efforts and work
employees.
for Nissan to get recovered
has a place in Nissan whatever
his gender or age or
citizenship.
The cross-functional teams
were a big motivation to the
employees and they were a
part of making decisions.
Carlos Ghosn repeated that
Nissan's success will come
from its employees and if it
succeeded I will have many
fathers.
He surprised workers by
strolling up and down the
assembly lines not only the
senior engineers and
managers,
Ghosn was aware of the
psychological damage and he
said that he has to help
Nissan employees to believe
in themselves and that they
are capable to get the
company back on the track
and compete Honda and
Toyota in terms of profitably
5 and growth.
Carlos shared the dream of
revival Nissan and told them
that it deserves their efforts,
In my opinion Carlos Ghosn 's
charismatic personality and
speeches were the best
motivations for the
employees
Carlos Ghosn didnt like the
spirit in Nissan and the lack of
Improving relationships between communication between the
employees
hierarchical
Enterprises lines, of
whole story the nine
success
cross functional teams helps
since 1957 when
in indirect way toitimprove
began asthea
5 relationship between the
leasing employees,
business in the andbasement
what of is
important that they shareda
one dream
Midwest which is totill
car dealership getit
Nissan back on the track.became
an internationally recognized brand
with more than 6,000 neighbourhood
and airport locations in the United
States, Canada, the U.K., Ireland,
Germany, France and Spain, as well
as franchise locations throughout
A.C.3.2. create recruitment criteria for CEO position, reflects the leadership skills required for this position in an organization of your choice.

The successful CEO is the one who can build an organization that able to stay current, CEO's main job requires knowing where the organization
is and where it should be and to understand the situation of the company not only the managerial levels but also through the levels within the
organization to formulate and implement the strategy to reach its goals and to motivate the followers from entry levels to seniors executive
positions.

CEOs are responsible for gaining the confidence and trust of audience, investors and all the employees, in our case Nissan due to the bad
situation Nissan was in, the transparency and telling them the plan and were the best solution to gain their trust.

CEOs should develop and communicate the vision and the strategy of the organization.

Setting the behavior standards ethical in the organization, in Nissan it is a very important point because the differentiation in the cultures, the
behavior standards should be very clear in order to avoid misunderstanding.

CEO position requires the ability to take tough decisions to make change, the CEO should have the ability of working within a team, he also
should have the hands on capabilities and understanding to provide leadership to the business and instill a cultural of operational excellence.

CEO should take in consider all the factors when making decisions.

CEO should have the ability to attract, lead and retain the talented employees across all senior executive positions.

CEO should have talent, drive, energy, intellectual agility and creativity to respond to changes in the market and find suitable solutions.

CEO must have superior operation skills financial acumen, the ability to manage risk and the means to formulate a plan of action and execute it
swiftly and decisively.
CEO should have the ability of handling complexity, he also should have an analytical mind, and the ability to engage and motivate people
inside and outside the organization.
A.C.4.1: create a CPD plan (continuous professional development plan) for a CEO position to develop his/ her leadership skills.
We have two methods of training to develop leadership skills:

On the job training:


On the job training is the 1st method, the process of on the job training is to arrange and purpose is to increase the capabilities of the
employees to engage with the corporate settings of the organizations as Mumford and Gold stated.
The environment on the organizations is very important for both the followers to learn and understand what the leaders want to teach
them.
What makes this method very effective and important is that leaders depend on the presentation which encourage the followers to
think and get the innovative ideas, then the coaching part comes and that makes the relationship between the leaders and followers
very strong, in this method of training, the employees get the chance to know information about other departments within the
organization.
On the job training is one of the most effective methods of development in the organizations.

The organizational leadership:


The organizational leadership is the most required and appreciated method as the main core in this method is promoting the practice
of the learning.
In this method the organization influence the employees on regular bases with knowledge and information, the organizations who
follow the organizational leadership are run by human resources managers as the humans are the real asset in any organization and
they are the effective elements which can help the organization to reach its goals.
A.C.4.2: evaluate the effectiveness of methods used in your CPD plan to develop the leadership skills.

I talked about two methods to develop the leadership, the first one is on the job training and the second one is the organizational leadership,
each one has its advantages. The on the job training is very effective method as the lectures are given to the employees and it helps them to
learn well and do their best efforts. The second one is the organizational leadership which focuses on creating flexible environment to get
valuable information and then effective leaders.
Mullins states that the advertisements give the people the chance to know about the available vacancies in the organizations and it also help
the leaders to select the qualified employees; this is the first planning method in the recruiting, the effectiveness of this method by the
achievements the organizations had after the recruitment and how the employees were effective in helping the organization to achieve its
goals.
The next method is online recruiting process in the organizations, the recruiting which are undertaken with the help of the online recruiting
processes call the external type, the other type of the recruitment is the internal type which means the exchanging and promotions to fit in the
available vacancies within the organizations, the effectiveness of this method can be measured by human resources manager and the
recruitments results show in the forms in the end of the year.
References:
www.ukessays.com
https://en.wikipedia.org/wiki/Renault%E2%80%93Nissan_Alliance
http://www.ukessays.com/essays/commerce/developing-strategic-management-and-leadership-skills-commerce-essay.php
http://www.businessdictionary.com/definition/strategic-management.html
www.mindtools.com

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