The organizational environment of any company, regardless of its field of activity, is dynamic, flexible, and evolving over time. Maintaining a commitment to values that create the perception of a unified corporate culture is essential to the viability and sustainability of the company in a rapidly changing marketplace. In many ways, team cohesion is achieved through effective leadership skills, which are critical to business. There is no single correct definition for the term “leadership” because the very phenomenon of such an organizational role generates a plurality of manifestations and characteristics of such an individual. Meanwhile, it is evident that leadership in a company is conditioned by the binding together of different structures and elements, which requires excellent skills of execution, inspiration, and management. This paper examines in detail the phenomenon of leadership and its classic types in the light of improving the overall effectiveness of the work team. For specifics, reflections and evidence are presented for Qatar National Bank.
Qatar National Bank: Background
A brief discussion of the essence and professional focus of the chosen company is necessary to provide a deeper understanding of its characteristics. Qatar National Bank (QNB) is a significant operating international bank headquartered in the Persian Gulf, specifically in the capital Doha, Qatar (QNB, 2022a). The bank has a long history of over 58 years. In 1964, the bank was registered as the first commercial bank in Qatar, which created a competitive advantage for future business development. The massive development of globalization processes, leading to the emergence of multinational enterprises and foreign labor opportunities, has also had an impact on QNB. In particular, QNB’s structure now includes not only the bank itself but also subsidiaries with offices in 31 countries. Among others, foreign development was realized through mergers with other companies, including the Turkish Finansbank A.Åž. and the Egyptian ALAHLI (QNB, 2022b). However, according to the bank’s management, the initial organizational values of the business have not changed, and even after 58 years, QNB is still focused on the goal of selling leading commercial services in Qatar (QNB, 2022a). Thus, QNB should be seen as a dynamic bank with initial competitive advantages and an interest in developing Qatar’s banking capabilities.
The leadership structure should also be considered, allowing for a meaningful examination of the critical stakeholders in QNB’s development. The CEO is Abdulla Mubarak Al-Khalifa, who runs the bank through a hierarchical arrangement (QNB, 2022c). Specifically, QNB has departments related to business management, operational processes, strategic planning and risk identification, financial departments, and human resource management departments. In fact, each department is subdivided into even smaller subdivisions that address emerging application challenges. The departments are managed by appointed lead managers, who in turn also build a hierarchical network of power in management. Thus, the leadership structure at QNB is based on the delegation of responsibilities and role assignment, which allows for the assignment of responsible teams and interaction to maximize the bank’s operational effectiveness.
Roles and Leadership Styles: Differences and Implications
Academic and public leadership research practices have managed to accumulate enough evidence and opinions to differentiate the leadership phenomenon into different segments confidently. In particular, it is necessary to discuss the different leadership styles depending on the type of leadership behavior chosen and to show what implications this may have in terms of supporting the effectiveness of the workgroup. It should be noted that the critical comparison is unbiased because none of the leadership styles listed below is the only correct one. On the contrary, for each individual situation, even within a single QNB company, leadership styles vary. In addition, it is not possible to cover all leadership styles in a limited amount of work, so this section discusses only the classic, appropriate options.
The coaching style of leadership is based on the idea that the workgroup leader guides and trains their subordinate employees through inspiration and critical reflection. An inclusive coach always strives to create an environment in which employees will be minimally biased by teaching them the ability to look at a problem from a different angle (Collick, 2019). In turn, employees feel favorably treated, which increases staff engagement and drive to complete the task. Research reports that the coaching leadership style expands the perceived boundaries of the organization and disrupts the status quo, allowing employees to use their own professional energy more effectively to achieve their goals (Christianto & Smarandache, 2020). This style of leadership seems very reasonable in terms of motivation and engagement because it does not force employees to work but creates an environment in which subordinates themselves are eager to contribute to the corporate good.
An alternative leadership is the visionary management style, in which the primary responsibilities of the manager are reduced to implementing strategic planning and forecasting changes in the market agenda. While the trainer leader’s focus has been on changing the current situation, the visionary leader finds himself constantly immersed in seeing the future and creating the conditions under which the desired future can be achieved (Collick, 2019). Notably, this variant appears to be more conservative and distanced from the point of view that company results are only built from the vision of one person who communicates strategies to subordinates. The presence of organized, structural management would guarantee the achievement of efficiency if the visionary function of the leader proved to be correct (Luo et al., 2020). Thus, this leader is not as loyal to employees as the Coach, as his fundamental interest is to develop QNB rather than focusing on empowering individuals.
Notable is the non-interfering leadership style — Laissez-Faire — which implies giving total freedom to employees. As can be understood, a Laissez-Faire leader does not have the same interest in the development of subordinates as a Coach or Visionary and achieves results with trust and faith in the efficiency and professionalism of employees. Obviously, such management is characteristic of creative orientations, in which people initially do not need training and are capable of realizing their professional potential independently. The leader, in turn, observes the development of QNB from the outside and rarely corrects the general course of management. However, it is worth clarifying that the Laissez-Faire style may be much less effective for the organization because the leader does not work to motivate employees and may miss situations in which erroneous and destructive decisions are made (Glambek et al., 2018). Thus, Laissez-Faire is not suitable for most businesses and can only be implemented when the leader is confident in the capabilities of their employees.
Finally, necessary for the study is autocratic leadership, the essence of which is expressed in strict control and implementation of mechanisms of subordination. Autocratic leaders achieve their goals not through motivation but through highly organized chains of command. Employees, in turn, are obliged to perform their duties and follow the messages of management steadfastly. Such leadership is good for disorganized groups and removes responsibility from employees if management is at fault. However, autocratic leadership leads to a lack of creative solutions and empowerment of participants, leading to an overall decline in group performance eventually and the development of professional burnout (Umoren & Ekanem, 2019). Thus, of all four leadership styles, this management may be the most detrimental to contemporary QNBs, but its short-term benefits in dramatically increasing the effectiveness of poorly organized groups cannot be ruled out. Thus, the following types of leadership have been identified: coacher, visionary, autocrat, and Laissez-Faire leader. It should be emphasized that each of the styles described above is different in its characteristics and can be effective or ineffective in a particular work group. Table 1 below provides a number of key differences between these leadership styles, allowing a deeper look at the differentiation between them.
Table 1.Key Differentiations Among the Four Leadership Styles
The Role of HR in Facilitating the Leader
Regardless of the leadership style chosen, leaders use strategic planning and management to achieve operational goals. In this sense, it depends on the influential work of HR professionals whether the leader can create the correct corporate culture in the organization. In particular, there is often a disconnect between leadership and employees, which is part of the daily practice of HR professionals. HRM focuses on teaching, developing, and coaching leaders to be close to team members and give them constructive feedback. The practice recognizes the leader’s unconditional expertise in professional competencies, but HR professionals work to improve basic soft skills in order to develop opportunities for effective communication between involved parties and help improve team operational performance. HR professionals not only perform the hiring and firing of employees but are also the focal point for creating a prosperous corporate environment in which employees can fulfill themselves and maximize their creativity (Buengeler et al., 2018). This is accomplished, in part, by aligning the strategic vision formed by the leader and the tasks that employees will perform. In addition, HRM often spots rank-and-file employees with outstanding capabilities and talents in order to place them in leadership positions, in which case HR professionals must develop the employee’s leadership skills and implement training practices that will enable the talented employee to become a successful, motivational leader as well. Thus, at QNB, HR professionals provide training and incentive practices so that even rank-and-file employees improve their skills and have the opportunity to develop into leaders (QNB, 2022d). Thus, it is appropriate to postulate that HR plays a mediating role in the development of organizational effectiveness by creating constructive communication between managers and subordinates and directly influencing the development of productive leadership in the company.
Approaches for Leadership Development
When deciding to invest in company performance, leaders must take practical approaches that will enable them to achieve their goals. In a dynamic marketplace, leaders must have the ability to respond quickly to change and adapt production to the current agenda (Evans, 2020). There are several time-tested approaches that help develop corporate leadership. One of them, for example, is behaviorism, whose paradigm argues that successful leaders must be built on the behavioral patterns of the leader (IET, 2022). More specifically, specific behaviors that are specific to each organizational culture are the basis for developing effective leadership. In other words, anyone who receives the necessary training can become a leader. Another perspective on leadership development is cognitivism, the essence of which boils down to a leader’s deep understanding of his or her own management (Garfinkle, 2020). Specifically, cognitivism focuses on strong self-control that promotes strategic thinking and supports emotional intelligence, investing in developing long-term relationships with employees and understanding one’s own strengths and weaknesses. Another approach to leadership development is constructivism, which is based on the intention to implement successful team change, embodied through integrative performance evaluations and incentives for participation (Johnston, 2018). Constructivism as a paradigm focuses on creating synergy effects in which there are not too many leaders, so executive education, in this sense, creates conditions to maximize positive effects through increased learning, engaging new individuals, and encouraging constructive criticism. The three perspectives discussed aim to create the conditions in which leadership development achieves the highest results for the corporate culture and can be applied depending on the individual agenda.
Inclusion and Diversity
The diversity of today’s world, in synthesis with the increasing processes of globalization, creates an urgent need to develop mechanisms for inclusion and the promotion of difference. Inclusion and Diversity (I&D) practices demonstrate the impact on all employees in a multinational company, including QNBs (Pichon, 2021). I&D is based on using available resources to maximize the inclusion of employees who differ in ethnicity, age, gender, and socioeconomic background. When each employee feels valued in the workplace, it creates the conditions for increased engagement and motivation to work. Among other things, I&D includes hiring a new employee, training talent, and punishing undesirable behavior, which includes racism and harassment. Achieving professional equality and creating a corporate culture that encourages the pursuit of equality are core I&D practices. In the context of the positive aspects of I&D described, it seems clear that their implementation is necessary when there is effective leadership; in other words, a manager must be able to design an I&D agenda in the workplace to achieve the desired performance effects from employees. Specific initiatives for managers in this regard become the difference between decision-makers and the involvement of representatives from different intra-organizational structures, thereby increasing the ability to cover the maximum number of needs. Strategic planning should be used to assess representation in working groups, combined with a clear understanding of roles and possible deficits resulting in diversity disruption. Creating a separate organizational body responsible for implementing I&D practices can also be helpful in achieving the desired goals, but it is necessary to ensure that this body is not uniform in the sense that responsibility for decision-making is not exclusive. In addition, it is a valuable practice to have open discussions with employees to directly identify their immediate needs in the workplace, which will create a unique opportunity to form a trusting relationship with the manager and more personalized corporate development.
Circle of Stakeholders
For QNB as a large Qatari bank, achieving performance through leadership development is a critical need in which several groups of stakeholders are interested. In particular, the CEO of Al-Khalifa is interested in QNB thriving as a leading bank and empowering the organization through choosing the right management style and investing in the well-being of the company. In turn, managers and employees are interested in leadership development, as their well-being and financial interest in continuing working depend on their management style and behavior; they are willing to fulfill their professional responsibilities to do so. QNB also has a system of board of directors, each of whom, like Al-Khalifa, appears to be interested in the commercial development of the company, which is impossible without developing effective management; high-level management guarantees the development of strategies for effective leadership. Among others, as the bank is present on the global market stage, QNB’s interest is determined by its desire to create an image of a modern, reliable bank that follows a gender and ethnic agenda and creates an environment for the well-being of its employees. Investors in QNB aim to multiply profits, so their interest in leadership development is indirect; if it allows the company to increase capitalization, then investors also benefit. Investors’ tool is their confidence in the bank’s stock, so a decline in QNB’s investment appeal in the case of ineffective leadership would result in a loss of capitalization. Thus, there are several key stakeholders for QNB that show an interest in developing effective and trusted leadership in the organization.
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