Role of Strategic Management and Leadership in the Dubai Bank
Discuss about the Impact Of Transformational And Servant Leadership.
The large scale company that is being addressed in the report is the Dubai Bank which is one of the largest Islamic Banks in the country. Accoridng to the website of the bank Dib.ae. (2018), the bank was launched in September 2002 and became one of the Sharia law bank in compliance to the regulations of the Dubai banking sector from the year 2007. The bank is under Islamic Banking and Finance and is a part of the Dubai group, a Dubai Holdings Company. The report is against this large scale company which tries to establish the link between strategic management, leadership and organizational action. The skills to apply the understanding of the scale is also mentioned in the report.
Strategic management refers to the process of management that is based on the different strategies levied by the organizational authorities in making the different sectors of the workplace perform according to the proposed plans and programmes (Hill, Jones and Schilling 2014). Leadership is defined as the action of leading the subordinates and the ability to perform the task assigned with the corporation of all the subordinates (Yukl 2013). The work of the strategic management is to make sure to operate all the factors of the organization together like manpower, finance and marketing efficiently and make sure that each of the factor operate in their own way to make the whole process of organizational culture effective and operative. The role of leadership in this following case mentioned here is of utmost importance as without the role of a proper leader and sincere leadership, it is of no use to conduct any planning related to strategic management (Hitt, Ireland and Hoskisson 2012). The role of the leader is to bring together all the participants of the organization and to make them work effectively in the given space with effective communication and skills. The leader of any given organization has the power to effectively utilise the power of communication and technique in bringing together all the participants of the organization and making the strategic planning of the organization have effective and positive results (Hitt, Ireland and Hoskisson 2012). The strategic planning of the organization plays a vital role in shaping the organization and the importance of leadership in the said planning is immensely important as without the role of leaders, the planning of the organization would not be fruitful.
Management and Leadership Styles and their Impacts on Strategic Planning
In the Dubai Bank, the role of strategic management and leadership is of prime importance as this enables the leader plans the various skills and requirements that is required for the management of the strategies for the organization in the concerned manner. The Dubai Bank is one of the premier banks of the country which the role of strategic planning is important as it enables the organization to have better planning for the future.
There are different types of management and leadership styles that have different impacts on the strategic decisions by the management of an organization. The different types of management that are employed in the organization have a number of impacts on the organization and the work culture. The various types of management and leadership styles can be classified as the informal and formal style of management (Dale 2015). The informal style of management is defined as the style of management that is used by the organization to make the employees work in a friendly and cordial manner (Caza and Brower 2015). The formal style of management is defined as the style of management that is used by the organization to make the employees work for the institution in a strict and principled environment (Globocnik and Salomo 2015). The leadership of both the kinds of management are extremely different and have an impact on the strategic planning of the organization. In the informal style, the planning will mainly be concerned to the development and unity of the organization along with the work done by the employees with a very good organizational culture but in the formal management, the strategic planning will be done in a strict manner focussing on only profit of the institution and not on any developmental and non monetary benefits of the employees. The formal management makes sure to utilise the capacity of the employees just for the profit of the organization while the informal management makes sure that proper organizational culture is maintained at the workplace in relation to the employees and workers (Elrakaiby, Cuppens and Cuppens-Boulahia 2012). On the other hand, the informal management style makes sure to include both the factors of organizational culture and profit of the organization in the strategic management planning to make sure that both the factors are employed effectively. The strategic planning therefore is different for different kinds of management styles and differs accordingly.
Being a banking organizational sector, the chief priority of the management is to foster the formal style of management in the Dubai Bank as that will make sure to give sufficient profit earning opportunities for the organization. In addition, the style of leadership should be informal in the case of treatment to the staffs on the personal level as that will ensure better communication and management ease among the population.
Adaptation of Leadership Style
In different situations, the leadership styles can be affected in different ways. The leadership style can be made very formal and strict when the situation of the office is very formal whereas the leadership style can be cordial and informal when the informal tone is maintained at the office premises. The adaptations of the leadership style can be done in a very lucid manner as with the difference in office structure, it becomes very important to adapt to the different types of office premises. The leadership style also changes along with the difference in office situations (Hickson and Pugh 2014). The formal office situation demands a very strict and operative leadership situation where there will be one prominent leader and all will be the subordinates of the organization along with the leadership of the person. In the informal situation, there are leaders in the organization who lead the whole office premises but the role of the leaders are more like guides who can lead the institution without being too stringent upon the executives and subordinates who look upon the authorities (Hickson and Pugh 2014). The leadership style can be adapted by the organization whenever there is a need for any specific style of working. The organization may shift from one mode of working style to another depending on the workflow and on the way the management wants the people to work (Amanchukwu, Stanley and Ololube 2015). The strict and principled formal leadership style can adapt to the formal environment, the informal leadership style can adapt to the informal environment when and where necessary to make the adaptations for the work easy to manage, and can make the style adapt to the work culture of the specific organization.
In the Dubai Bank, the adaptation of leadership can be done in a concrete manner with formal leadership techniques and goals which will enable the bank to have better leadership strategies along with the specific goals for the same.
There are a number of theories related to management and leadership on the organizational strategy. These theories are as follows – Transformational Leadership, T (Bennis, Bass), charismatic leadership (Weber, Conger and Kanungo); contingency theory eg Fiedler; situational theories eg Hersey and Blanchard, Vroom and Yetton, tri-dimensional leadership theory (Yukl) (Manning and Bucher 2013). These theories are helpful in making the concepts of management and leadership critical valuable on the organizational strategy. The concepts along with the emotional intelligence affect the overall leadership of the institution and makes a detailed study on the emotional quotient. The theories that help in the overall management of the organization can be stated in the following
Theories of Management and Leadership
Transformational Leadership – It is defined as the psychological mechanism that defines the transformation of the leadership qualities in a human being (Avolio and Yammarino 2013).
Transactional Leadership – According to Dihn et al. (2014), this type of leadership focusses on supervision, organization and management and help the followers with both promotions and punishments and are in compliance with the subordinates.
Charismatic leadership – In this type of leadership style, the leader has a charismatic and motivational personality that helps the person to gain influence over the followers and make them under their influence within no time (Avolio and Yammarino 2013)
Contingency theory – This theory is primarily motivated to think that there is no proper way to take decisions and to make the organization operate but the only motive is to make sure that the external and internal factors are being dependent to make the whole decision making process a leading rage.
Situational theories – In this type of theory, the manager or the organization adjusts to the different modes of the organization to make himself fit for the organization under any situation (McCleskey 2014).
Tri-dimensional leadership theory – The theory states the way in which the leaders should behave to accept the mode of working in the organization.
These kind of theories along with the intelligence of the organization and the employee help in the leadership of the organization and help in the leadership effectiveness of the firm. The Dubai bank should adopt the theory of transformational leadership technique as that will enable the bank to have better leadership goals as well as management criteria.
The leadership plan that should be applicable to the support organizational direction should include the following aspects –
Efficiency – One of the most important strategy to implement organizational direction is the level of efficiency of the organizational leaders. The leaders of the organization make sure that the level of efficiency is maintained at the pivotal level.
Reliability – Reliability of the leader is another pivotal aspect that needs to be addressed with immediate effect. The reliability of the leader makes sure that all the things go smoothly and the make the whole process attain the height of success (Klenke 2016).
Innovation – Innovation is one of the major means of leadership that needs to be addressed with immediate effect. Innovative leadership makes sure that the organization attains the height of success that needs immediate innovative strategies.
Leadership Plan for Supporting Organizational Direction
Adaptation and human resources in sectors – According to Choudhary, Akhtar and Zaheer (2013), the role of the leaders is to make sure that the human resource of the organization has been implied at every level and recruitment process is done effectively.
The effectiveness of the leaders – The strategy of the leader to support organizational developmental culture is of pivotal importance, as the effectiveness of the leaders make sure that the work of the organization is done in a proper way. The leaders make sure that the organization goes in the right direction according to the plans of the organizationa human resource management and strategies (Johnston 2012).
The leader must implement the strategies related to the organizational culture and progress and make the whole process adhere to the believes and success of the whole organization so that the organization makes adequate progress in terms of organizational culture and strategies. The leaders at the Dubai Bank should be an amalgamation of all the techniques of leadership and the criteria that are there in the concerned sources. The leaders the bank should be a summation of all the qualities that are there in the banking professional.
The organization and the leaders face generic challenges that can lead to a number of methods to review current leadership requirements. Various aspects like virtual organisations, diversity, globalization, economic climate, world threats, ethics and corporate social responsibility; e-leadership, mergers and takeovers, restructuring, integrity leadership, diverse teams, partnerships and alliances, regulatory compliance, changes in reporting and control, new technology, interim leadership are helpful in the overall procedures (Stentz, Clark and Matkin 2012). The methods make sure that the leaders get ample amount of exposure to conduct the organizational work assigned to them. The diversity of the organization makes sure that the leaders are also accustomed to the diverse culture and employees that the organization has. The impact of globalization on the organization also makes sure that the leaders are adaptive to the various means of global market and the presence of employees with cultural diversity and coming from different ethnic origins and regions. The different world threats also prompt a leader to make effective decisions and also make them aware of the needs of such leadership techniques (Stentz, Clark and Matkin 2012). The leader should be in such a position to make the whole process of the management effective and give adequate reliability to the employee to make them work for the organization with a better perspective.
Conclusion
The leader at the Dubai Bank should be ready to make steady arrangements for the various type of workers that are working in the bank and also of the fact that there is a diversity rate that is there in the sources. The methods that are implemented by the bank for the reviewing of the current leadership styles can be seen in the light of the processes of leadership management.
Leadership is one of the most important pivotal aspects of the organization and it serves as one of the most important aspect of an organizational development. A number of factors can affect the future situation regarding leadership as with time the concept of leadership is changing at a rapid rate. Leaders of the previous times used to lead the work assigned to them in the organization and used to make sure that the work is done by the subordinates at a very fast pace giving profit to the organization as a whole. But with changing times, the concept of leadership is changing where the leaders are behaving not only as a leading force but also as a guide. According to Northouse (2017), the work of the leader is not limited to managing and leading the people but to make sure that the work is done in a proper way. In future, the concept of leadership will change drastically as more and more leaders will become the guiding force of the organization leaving behind the classic leadership roles, which limit them from interacting with the subordinates. The future of leadership can be helpful in making the whole leadership process innovative and serve something more than just leading the way.
The future scope of leadership technique is to make sure that Dubai Bank is getting all the requirements of the leadership technique that are there in the future situations of the bank is deliberated through the process of various leadership goals and techniques.
The leadership skills are different for different set of requirements and can be mended according to the needs and requirements of the job. The leadership skills varies with varied requirements which is again specific to the requirements and the said job role. The skills of leadership includes innovation and technical knowledge and skill that can be said to be one of the basic requirements for any organization.
The leadership requirements of Dubai Bank is to make sure all the workers work together to achieve the level of profit as well as strategy for the better working for the organization.
Leadership is defined as the quality of a person to lead and manage the others in times of need and situation (Yukl 2013). There are different modes of leadership in an organization which requires the formation and making of different methods of developing leaders through different methods of skill development like formal learning, self-help and developmental activities eg training courses, job rotation, seminars, executive coaching, mentoring, companies’ own universities, developmental assessment centres, action learning, self-directed learning, reading articles, partnership with key academics and others (Alvesson and Spicer 2012).
The different forms of methods to plan the development of leadership skills can be witnessed in the development of the leaders. The aspects of formal training and self-help in times of need are some of the basic aspects that can help integrate the developmental activities in the organization. The formal training given by the organization to the leaders and their helping themselves in times of crisis are some of the basic methods that are employed. The changing methodology in leadership development programs benefit the self-help activities such as learning from mistakes, viewing events from multiple perspectives; developing leaders versus recruiting as needed; creating a learning climate (Alvesson and Spicer 2012). The various help that the leaders get from the previously mentioned models help not only them to make the whole theme of leadership to the next level where the main motive is to make sure that the employees of the organization are getting enough exposure to the whole functionality of the organizations with utmost clarity. There are a number of models for assessing future leadership requirements such as Council for Excellence in Leadership and Management diagnostic tools; leadership competencies eg thinking and acting strategically, emotional intelligence, social intelligence, ability to learn, systems thinking and others. These models are based upon the fact that the leaders are on the verge of being on the level of motivation and making sure that the employees are getting enough focus on their work and are providing motivating for their organization as a whole. Planning to develop the skill of leadership helps to achieve a lot of targets and also to make sure that the organizational leaders achieve those targets within a stipulated period. The planning also help to make sure that the programs related to the overall development of the institution and the employees are successful to the major extent. There are a number of usefulness of the methods of planning and it can be useful to mend the organization according to the overall profitability and strategic planning of the organizational leadership and development.
The leaders of the Dubai Bank make plans to make sure that the working of the bank is in a proper manner as well all the requirements of the bank has been fulfilled in regards to the management. In addition, the workers are also given the required amount of the methods and plans to development of the leadership techniques of the same manner.
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