Leadership And Management Theories: An Evaluation Of The Dangote Group

Overview of the Dangote Group

According to some of the scholars, leadership is all about creating and establishing a way for the people to contribute in making the objectives come to reality.  An ideal leader drives the followers towards action and supports them to realize their capabilities so that they can accomplish their goals. It is quite often that in the larger companies, leaders are appointed to motivate the employees and raise them as the upholders of the company, while in the smaller companies, the managers play the role themselves (Anderson and Sun 2017).

A clear understanding of the leadership theories can help an organization to develop leadership skills in their leaders usually via trainings or recognize the potential leader during the hiring session. Through the past decades the leadership theories have been the center of attraction for various studies. The theories are mainly categorized by the aspect of leadership it intends to define the most such as the Great Man Theory, Contingency Theory, Trait Theory, Transactional Theory, Behavioral Theory and the Transformational Theories. Around the mid -19^th century, the Great Man Theory evolved. The Great Man Theory suggests that the leadership traits are intrinsic.

It further says that the Great leaders are born and not made.  It considers those leaders as great who are destined to be great leaders. The Trait theory on the other hand states that, people either acquire or are born with certain traits or qualities that will transform them into great leaders in future (Patel et al. 2014). The behavioral theory asks to focus on the behaviors of the leaders which effects the behaviors of the followers too. In short, it claims opposing the Great Man theory that leaders are made and not born. The contingency theory on the other hand supports the trait theory and argues that the leadership is based on the situations and there is no single way of leading in every situation. The transactional theory is better known as the exchange leadership theory because through it, a transaction occurs between the followers and the leader. It supports a mutual beneficial relationship.

 The transformational leadership theories state that establishing relationship with other people increases the percentage of faith and responsibility. In this type of leadership, the leaders inspire the followers with the charismatic nature and activities.  This leadership style enables the followers to have a deep sense of belongingness with the organization. The present report will focus on the critical evaluation of the development of leadership and management in the Dangote Group. The Dangote group is an international conglomerate based in Nigeria.

Theories of Leadership in Management

The group was founded by Aliko Dangote in 1981 and the company has grown up to having 30,000 people associated with it causing it to generate an excess of US$ 4.1 billion by the year 2017. The company principally deals in products like Cement, Sugar, Flour, Salt, Steel, Oil and Gas. The company has recently decided to innovate and expand to the Asian countries as well as in the European subcontinents. The new CEO Joseph Makoju of the Dangote Cement which is a part of the Dangote Group is focusing and investing on the expansion policies for better outcomes. The present report will analyze and evaluate the leadership that is currently being practiced in the company putting it in a particular framework. The report will further describe the appropriateness of the leadership traits and propose a theory more suitable to the organizational context.

Discussion 

Overview of the Company 

The Dangote Group is a private Conglomerate founded in the year 1981 holding the hands of Aliko Dangote. It is considered to be the largest conglomerate specifically in West Africa and one of the largest companies in the entire continent of Africa. The company began as a trading body which used to import sugar, rice, cement fish and other useful commodity goods to be distributed in the Nigerian market. The group expanded since the 1990s to the production of cements to be distributed across the countries of Africa. The group owns almost 18 subsidiaries which operate in ten countries around Africa (Dangotecement.com 2018).  

The Dangote Cement is one of the most effective subsidiary among all the other subsidiaries. It is listed in the Nigerian Stock Exchange too that has occupied 205 of the total capitalization of the Stock Exchange.  The headquarter of the Dangote Group is situated in Lagos, Nigeria. The Dangote Cement was founded in the year 1992 and actively engaged in the manufacturing, preparing, importing, packaging and distributing the cement and other related products across the countries of Africa. 

The Dangote Cement already has three plants and looks forward for establishing plants in other 13 African countries along with countries in other continents. The company is recently investing millions of dollars on building the manufacturing plants and terminals. It also has a plan to expand in Nepal.  According to Businesslive.co (2018), the richest man of Africa known as Aliko Dangote, the owner of the Dangote Group is planning to accumulate $500 million for expansion. The new CEO of the Dangote Cement, Mr. Joseph Makoju is apparently the most initiative leader in terms of expanding the business and has already earmarked almost $350 million for the capital projects in the year 2018.  It has been foreseen by the CEO that this expansion would open new ways of opportunities for the company so that it can increase the brand familiarity in other countries and receive the competitive edge over the market rival in the contemporary rivals. 

Trait Theory

The theories of Leadership in Management 

There are more than dozens of existing leadership theories and each one has a close relationship with the business management. However, there are five leadership theories which are considered as the most concrete theories including the transactional, transformational, contingency, trait based and situational (Sumitha and Padmaja 2017). It has been found that the leadership styles affect people in many ways and the leadership skills are important for the business organizations. The leadership theories and how they affect the employees in an organization, both positively and negatively can craft the message on how to motivate and inspire the team.

The Trait Theory

The trait theory believes that people do inherit certain qualities or traits which make them suitable to leadership in a better way. According to the trait theories, a particular behavioral characteristic is identified that is shared by the leaders. Taken for example, there are traits such as extroversion, courage self-confidence is on the list which can be positively linked with great leaders (Neary 2016). However, it is also true that there are people who never seek for the position of leadership but occupy such qualities. In contrast, there are also leaders who do not possess such qualities still are effectively leading enterprises.

The contingency Theory

The Contingency theories on the other hand concentrate on the specific variables related to particular environment which might determine which kind of leadership would be perfect for a specific situation. Scholars suggest that effective leadership is not about certain qualities inherent in the leader, rather it is about maintaining a right balance between the needs, behaviors and the context. A true leader can easily assess the needs of the followers, take hold of the ad verse situation and mold their behaviors accordingly. The attainment of success depends on the qualities of the followers, the aspects of the situation and the leadership style of the leader.

The Situational Theory

According to the situational theories, the leaders select the appropriate course of action founded on the type of situation. There are different styles of leadership which are most suitable for the decision making in certain scenarios.  Taken for example, in a situation where there is no time for prolonged decision making and the leader is the most knowledgeable person, the autocratic leadership is the most suitable here. On the other hand, when the group members will be found to be more skilled experts, the most appropriate style would be the democratic style.

Contingency Theory

The Transactional Theory

The transactional theory believes in maintaining the operations in the organization in a normal flow. The transactional leadership is also referred to as “keeping the ship afloat”. The transactional leaders make use of the array of incentives in order to motivate the employees along with a disciplinary power. The term “transactional “refers to the fact that this type of leadership essentially inspires the subordinates or the followers by setting rewards for their performances (Mesu, Sanders and Riemsdijk 2015). The leaders who follow the transactional leadership usually look ahead strategically in order to guide the organization towards market leadership. It rather focuses on the smooth conduction of business operations without any hindrance.

The Transformational Theory

The transformational leadership theory supports going beyond the management of day –to day operations and designs innovative strategies for the upliftment of the company. The leaders who follow this leadership theory take the performance and success of the organization to a different level. The work process of the transformational leaders starts with setting particular business goals, team building collaboration with the motivated employees at various levels of the organization. The subordinates in the organization are motivated by incentives and other opportunities for personal and professional growth of the employees.

The Autocratic Leadership

The autocratic leadership is also known as the authoritarian leadership. These type of leaders provide a clear description of what is to be done, when it should be done and how it is to be done. In this kind of management style, a single person has all the control of the organization and takes nominal inputs from other members of the group. The autocratic leaders usually make choices based on their own knowledge and beliefs and rarely involve others for their advice or suggestions.

The Participative Leadership

The participative leadership is better known as the democratic leadership. It is a method that involves all the team members in order to identify the important goals along with the developing strategies and way to achieve the business objectives. In terms of this, the participative leadership style can be referred to as a style that depends primarily on functioning as a group. The members of the team are assigned to a particular task and specific goals are set for them. This is a type of leadership which can be useful in business settings, volunteer setting and also at home.

The Delegative Leadership

The delegative leadership or the Laissez-faire leadership is a different type of leadership in which the leaders takes his hands out of the business decision making and allows the group members to take important decisions. The scholars have found out that it is generally that kind of leadership which results in degraded productivity in the business and the organization consequently lags behind. However, this kind of leadership has its own benefits and drawbacks too. There are certain situations where this kind of leadership works suitably.

Behavioral Theory

The Management Theories

The management theories are a specific set of rules that are supposed to guide the managers to control and organize a firm. These theories assist the employees in relating between the business goals and implementing effective ways of achieving those goals. Among these theories the administrative management theories, the behavioral theories and the bureaucratic theories are the most important.

The Administrative Management Theories

The administrative theory of Henri Fayol who is considered as the father of management generated few principles related to management. These are equity, division of work, discipline, authority and responsibility, esprit de corps, initiative, stability of Tenure, Subordination of Individual Interest to General Interest, centralization, unity of command, scalar chain, remuneration and unity of direction.

The Bureaucratic Theory of Management

Max Weber made a difference between power and authority. He believed that power demands obedience by applying force that compels the individuals to follow the rules. Weber delineates three types of power in the organizational context. These are the Charismatic Power, the Traditional Power and the Bureaucratic Power or Legal Power. Some of the features of Bureaucracy are division of labor, management by rules, formal relations, importance of legal power, formal hierarchical structure, and technical expertise based on selection.

The Behavioral Theory of Management

The famous management scholar Elton Mayo claimed that the multiplied productivity is the result of the psychological stimulus. When the employees are involved, singled out and made feel important, it reflects on their productivity. Hence, the way the employees are being treated leaves huge impact on their personality and performance.

The current leadership style in the Dangote Cement Group is the Autocratic Leadership style hat is equivalent to the dictatorship or authoritarian approach. The employees of the organization follow the orders of their leaders and without questioning about the rationale of such instruction do their duty. This leadership style is primarily based on Douglas McGregor’s Theory X which views the employees as lazy and work disliking and accepts the concept that they try to avoid work whenever they get chances. Hence, this theory has advocated a comprehensive control on the employees and a close supervision which is supported by a hierarchical structure along with a narrow span of control.

Advantages

The autocratic leadership style in the company establishes a chain of command with high involvement of the leader in all departments of operations. It has led to a formation of spoken and hub type of organizational structure which is useful in many ways, such as:

• The operations are don quickly since decisions are made quickly.
• The logistics and communication are improved
• In the external environment, there is better response to change
• A more coordinating approach regarding the fulfillment of organizational goals are put forth
• The problems are anticipated in advance and there is a better realization of the consequences of the action on various departments

Transactional Theory

It is a kind of short –term or quick-fix approach to the management. The ability in the leader of the Dangote Cement group to decide faster has led to multiplied productivity and success of the organization worldwide. It has been found that this kind of leadership survives the most since it is naturally associated with most of the leaders.

• It has worked as an ideal method for the company to develop fast and it has also advocated an ideal method to promote high performance of the employees. It is also said to have the ability to get the operations done without slacking. In the Dangote Cement company which is under the autocratic leadership, there are less number of administrat8ve levels which have to be kept informed regarding each of the management decisions. It is because the leader is in the charge of all operations. Only the leader is responsible for weighing the pros and the cons of any activity.
• Since there are multiple levels of departments in the organization, a command from higher levels of management helps the employees to work in a straightforward way. The confusion n the communication is eliminated by the autocratic leadership because the command goes straight from the leader to the subordinates.
• The productivity of the Dangote Cement has been improved a lot since the leader is able to move the information around the entire organization as fast as possible. The productivity does not get delayed by the quick moves. The employees do not get the chance to stop their projects as they receive communications and decisions from their leaders on time. The work environment of the organization Dangote Cement has been positively impacted due to this kind of leadership.
• The employee stress is also reduced by such leadership style because there is a greater mass of employees who like to work in a work environment where there is a particular goal fixed for them and they are expected to work according to that. In the Dangote Cement company even the creative employees also support the autocratic style of their leader. They consider that their leader is like the captain of a ship and every decision from the leader is their responsibility to support.

Management qualities required for business expansion  

Since the Dangote Cement company has decided to expand the business in other countries beyond Nigeria and get the global customers too, these are few of the characteristics the leader of the company must follow for desired outcomes. With the growth of the business, the leadership style and the working style might need to change. It is said that the true leaders help themselves and make others follow him in doing the right deeds. The leaders set the directions, establish an inspiring vision and create something innovative. There are certain skills required of a leader to lead the employees in helping the business expansion.

• The leader has to be realistic, attract8ve and convincing and equally depictive so that he can show the subordinates what the business is going through and where it needs to go. A clear vision shared among the employees having involved them in the discussion s and decision making would be helpful. In this manner, the employees would know how they need to work or adjust according to the change in the organization.
• The communication is considered to be the key element in the business management. The flow of information between the employees and the leaders have to be transparent and strong. The communication, both internally with the member of the organization and externally with the stakeholders will be useful to know if there are other suggestions or opinions from the other sides that might open new ways for the organization. The communicative skill of the leader has to be strong.
• The leader need to have the capability to motivate and inspire the employees of the organization. When an organization decides to adopt some change in their operations, it is likely that the employees would not be completely ready to accept the change or might struggle to adjust with the change. Since the Dangote Cement group is on the verge of expanding the business, there are high chances that so many operational or functional changes would come along and the employees would find it difficult to suddenly switch to something other at once. Here, the leader has to go down to the level of the employees, know and understand their difficulties and motivate them to accept the change along with resolving the matter as much as possible.

As stated earlier in this report, Dangote Cement is now considering a mammoth expansion across the Asian and European countries. Dangote Cement in the leadership of Joseph Makoju is constantly looking to expand in the different parts of world. However, the vision might face some barriers surprisingly from the leadership style of its current CEO. Joseph Makoju is an autocratic leader (Anderson and Sun 2017).

An autocratic leadership style does exist in some parts of world like China (Yang, Kitchen and Bacouel-Jentjens 2017). However, it may not be an ideal preference of a CEO for many contemporary professionals. Millennials in particular are getting diverted from traditional leadership being practiced in organizations. The reason for this deviation is perhaps the motivation, which the contemporary professionals look in everything they are associated to.

These are active professionals. They are no longer the passive people. Millennials in particular want to get involved in the process rather than observing it from a distance (Kuron et al. 2015). This brief information of a contemporary workplace indicates that autocratic leaders are not acceptable universally. Considering this as a fact, the leadership style at Dangote Cement needs a transformation into another but a most feasible leadership style. With regards to this, the “Participative Leadership” style appears to be the most suitable. Participative leadership encourages an input from all, which is almost opposite to an autocratic leadership that encourages a very minimal input of the others.

Transformational Theories

Why participative leadership is important

There are a lot of advantages of having participative leadership in organizations. Nevertheless, these benefits should definitely contribute to the long-term vision of this company. In this section a few of these benefits would be discussed to identify how these will benefit Dangote Cement. Participative leadership can positively affect the morale at the workplace. A positive morale at the workplace is essential to enhance employee engagement in the company. Employee engagement has become an integral part of contemporary organizations.

It is now one of the areas of concern for contemporary managers. An increased input in the form of training and development, rewards and recognition, fun session, and a lot more is now practiced to enhance employee participation in organizational process (Huang et al. 2016). It is increasingly becoming a fact that employee engagement is an integral part of organizations. Until and unless there is a connectivity between an employee and the organization, there would be limited or less motivation to work. This is one of the reasons why a positive morale is essential to organizational practice. Hence, participative leadership style being proposed to Dangote Cement can be a good choice to adapt to.

An improved team environment is another benefit of a participative leadership. Participative leadership is the most suitable for a team-oriented workplace. In a team-oriented workplace, the response to participative leadership is higher. Such leaders encourage employees to come up together and add valuable suggestions to a decision. Employees under such leaders receive ample of opportunity to participate in the decision-making process. When such thing happens employees develop the attitude that they are valuable to organization.

Additionally, they are encouraged to participate in the decision-making process. It gives rise to a participative work environment. In such environment when they collaborate during a project, their behaviors and activities reflect a participative culture (Mesu, Sanders and Riemsdijk 2015). With regard to Dangote Cement, a positive work environment is important because the company is now in constant expansion to different markets. The company would never want a high employee turnover during this period. An increasingly growing employee turnover can affect the employee strength needed to accomplish the vision. They would rather look to improve the employee retention rate.      

Innovation is often common with a culture of a participative leadership. In such environment, employees are build up in trust that their ideas will not be thrown into the debris but would be considered on a serious note. Their ideas would actually be implemented if found to be effective and feasible to organizational practice. Adding to this, some companies even go to an extent that they reward the person to come up with the best ideas. Employees those who are entrepreneurial-minded can work and wish to work in a participative culture.

In this culture, they make an appropriate use of their creativity and innovation skills without going for a risk by applying these in a business. In regards to Dangote Cement, it is important that the company encourages and retains people who are rich in creative minds. They rather find some ways to help their employees explore their hidden creativity. This could probably be done through development programs being held on a routine basis, and by recruiting fresh and creative talents (Imran and Tanveer 2015).

Brainstorming is another good thing that could be encouraged in organizations with participative leadership approach. Brainstorming is increasingly becoming a part of organizational practice. Brainstorming means putting efforts to generate a range of creative ideas to solve a problem. With this definition, it can be said that brainstorming is key to the success of a business. In the era of the fourth industrial revolution, technologies have become factor of competency.

It has created competition between companies for bringing in the best and innovative technology. Brainstorming is a way to promote and enhance employee engagement by asking for their feedbacks and creative ideas (Yang, Kitchen and Bacouel-Jentjens 2017). Employee engagement is essential to keep employees motivated to their work. Brainstorming promotes the teamwork, which is itself a good thing for many reasons like the cultural integration. Brainstorming sessions are good ways to generate creative ideas. This is also how an innovative idea is created. Brainstorming sessions can actually be used promote innovation in organizations (Michinov et al. 2015).

In context to Dangote Cement, brainstorming sessions should be encouraged in the company. This will help to bring in innovative ideas and solutions to a range of problems. Such creative ideas will help to keep the expansion process going on. This will also help to resolve the problems while being into the expansion process. Ever since the inception of the new CEO Joseph Makoju, Dangote Cement is in constant expansion related talks. In addition, it must also have the work environment that is exciting and engaging to employees. Moreover, a majority of employees should have reasons to stay here in this company for a longer period of time.

The work environment that is required to promote and facilitate brainstorming sessions need a managerial intervention in the form of participative leadership style (Michinov et al. 2015). A participative work environment would encourage employees to explore their creative thoughts. And since their thoughts will be given a value, they will feel connected and engaged to the process. It is needleless to say that the work environment apart from basic employment needs to employees is an emerging trend. Millennials in particular are more in favor of such workplace (Kuron et al. 2015).  

To summarize, what all have been understood from the advantages of a participative leadership, it appears as if that participative leadership in contrast to the existing autocratic leadership in Dangote Cement is essential to its future business.

Implementing participative leadership in Dangote Cement 

It is being advised and also being found from the benefits of participative leadership style that the current CEO at Dangote Cement should adapt to participative leadership approach. It is needed to accommodate the changes required in the leadership practice to support the huge global expansion of Dangote Cement. It is also a fact that true leaders should exhibit a variety of leadership styles under diverse circumstances. Indeed, one leadership approach cannot be called a universal approach.

Considering the strategy to expand to the Asian and European countries, it is now important for the CEO of Dangote Cement to promote a participative leadership. However, an implementation of the suggested leadership approach might face some barriers from within the organization. Hence, it is of primary importance to identify whether participative leadership approach is feasible with Dangote Cement. The feasibility checks and other important factors concerning its implementation is being discussed below (Ghaffari et al. 2017):

Financial Feasibility: – An organization wide implementation of participative leadership will require a financial commitment from the management specifically from the stakeholders. A leader of participative approach encourages employees to participate in different organizational processes like decision-making, problem-solving, brainstorming to generate creative ideas, and others. However, without any motivation towards a participative work environment it is difficult to facilitate and encourage employee participation into organizational processes. For example, employees will feel encouraged to provide their valuable feedbacks to the management if they are assured of that their feedbacks will be given a serious concern (Kuron et al. 2015).

They will be motivated to such acts at large. In a similar way, monetary and non-monetary benefits are also regarded as one of the highest values to employees. If they are provided with these benefits apart from their basic pay, many of them will start appreciating their employer. And if they also get a cooperative work environment, they will certainly rate it high. Nonetheless, work flexibility is a rising concern among contemporary employees especially among the “Millennials” (Kuron et al. 2015).

Human Resource Feasibility: – This is perhaps one of the most vital parts of this proposal to implement participative leadership style in Dangote Cement. There is a need to have people who all can contribute to the vision of the new CEO of Dangote Cement. This will be served by existing people who are both skilled and are a positive learner of innovation. For this to happen, it is important that employee turnover remains steady or follows a declining trend. If this could happen this will ensure the retention of employees who are skilled and have gained sufficient experience in working with Dangote Cement. In otherwise case, situation could be worse as well.

There would be the need to roll out a fresh recruitment process to attract and select skilled professionals. A retention of these newly selected professionals will still remain a challenge. With regard to employee retention, it is important that the level of job satisfaction is high. Employees may have varied range of choices for job satisfaction; however, a majority of them will agree to a few things. These are (Sumitha and Padmaja 2017):

• Work pressure should be justifiable
• Employees should have prospects for career growth
• Work-life balance is one of the essentials
• Motivations in the form of monetary and non-monetary benefits should exist
• A fair and transparent appraisal at the end of each year should also be a part of employment

These all pieces of information just suggest that there is a need for a change along with the HRM practices. This will prevent Dangote Cement from losing its quality performers as this may badly affect the global expansion of the company.

A collaboration between employees and the management: –

This is one of the essentials of implementing participative leadership style in Dangote Cement. Indeed, a collaboration is needed, so that, a participative environment is applied universally. An interaction between the management and employees must be increased. Frequent meetings on different agendas should be held. In such meetings, employees must be allowed to share their honest feedbacks.

They should feel free to exchange their views of management. Managers can utilize these meetings to prepare a database noting down the common issues being faced by employees. Additionally, critical cases must be given a double chance such as through one-on-one discussion (Imran and Tanveer 2015). These feedbacks should be applied to practice if being found feasible to the company. In this way, management will give values to employee’s feedbacks. Moreover, this will strengthen the relationship of trust between managers and employees. This is what is hardly found in several number of companies across the globe. By doing just simpler things, management can develop a good collaboration with employees.    

In context to Dangote Cement, the work pressure is expected to be high during the entire journey of expansion. The expansion will create additional work pressure on the management, financial, and the human resource team (Ghaffari et al. 2017). The management during all these period will need to be excessively involved in identifying new management strategies, and interacting with employees to seek their feedbacks.

The finance team will have additional work to take care especially during the year end time. The human resource team in a same way will be looking to introduce new activities to enhance employee engagement. Moreover, fresh recruitment process will also increase (Huang et al. 2016). Employees especially the experienced ones will be asked to perform extra works. Considering all these pieces of additional work pressure, it can be said that a trusted collaboration between employees, and the entire management team is of utmost needs to Dangote Cement.

Evaluating the probable outcomes 

Since, participative leadership is dependent heavily on input from employees, and other stakeholders, a range of benefits can be obtained with it. This can be used to produce new ideas or introduce different and new methods for solving problems (Businesslive.co 2018).

An international expansion can face several barriers of expansion. These barriers can be fought with participative leadership. For example, local competition is one of the most common barriers to a successful expansion in the international markets (Neary 2016). To compete with local competitors, it is primarily important to identify the purchasing behavior of local people to be able to offer relevant products at best offers. Normally, secondary data of competing companies are available on the internet resources but still it is more valuable to be adaptable with the local culture. An online survey can help in this regard. In addition, taking the help from local consultants, and recruiting from local resource will also help at large (Patel et al. 2014).

Local professionals will be more comfortable with local culture at workplace. Local culture will also help to retain these professionals. Hence, the very important local culture can be created in many ways such as by implementing the feedbacks of local professionals regarding the organizational practices. Indeed, participative work environment will generate the much-needed feedbacks of employees. It is because they will feel free to share things, which they want to be implemented in the organizational settings (Anderson and Sun 2017). It is, therefore, evident that participative leadership can actually provide solidity to the workforce at the global level.   

In context to operations in Asian and European markets, innovation will hold the key to perform and sustain. There should be enough reasons to prefer a foreign company over the locals. Innovation can create such reasons. It is to be noted that innovation excel best with the workforce who are expertise in creative thoughts. Hence, this also supports a fact that participative leadership is one of the future needs to Dangote Cement.

Conclusion 

To conclude, this can be said that the CEO of Dangote Cement, Joseph Makoju, should adapt to participative leadership. This will help the company to excel in innovation, which is now key to operate at the global level. However, the CEO must have solutions to counter act the barriers to implementing participative leadership. Joseph Makoju should focus on areas, which have been highlighted in this report as potential barriers to creating participative leadership. Participative work environment can potentially help Dangote Cement to expand successfully and sustain business in Asian and European markets.

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