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Different Leadership Styles of Volvo CE Dealership in Oman

Research · July 2019


DOI: 10.13140/RG.2.2.15138.17604

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Graves Value Systems and Leadership Styles of
Volvo CE Dealership in Oman
Shawqi Jaradat*
Limkokwing University of Creative Technology, Cyberjaya, Malaysia.
International Student, PhD Programme

* Corresponding Author Email: shawqi.jaradat@genserv-oman.com

Abstract
How amazing the mankind got involved since the down time of being
constructing things, using all tools to survive and turning off roads to high
roads, build buildings and cities and changes of using these tools and develop.
These tools helped to shape this new world that we are living in today and the
more amazing is that the speed of developments in the centuries even
evolutions being going on for a million of years, and in the last couple of
hundred years is made incredible change in this world. So many leadership
theories are there today and for the last several decades a lot of researches
and studies of leadership styles, approaches and how that impact on business
in this global environments and competitions, the organizations nowadays
need to have a deeply understanding and a meaning of these different styles,
approaches and what is the best practice to be performed and applied inside
the organizations. Volvo Construction Equipment Dealership in the Sultanate
of Oman is one of the organizations that have performed and applied different
leadership styles in the last three decades to be able to survive, keep on
moving and continue its business in the market.

Keywords: Leadership Style, Marketing, Value Systems, Behaviour, Managing, New Challenges,
Competitors and Competitions.

Introduction
One of the most important theory for understanding human developments, issues, conflicts and
problems in the world (society, industrial, governmental, church, education....etc) is introduced by Dr.
Clare Graves “levels of existence” (eight human value systems), in which named “Spiral Dynamics” after
his death by his students Don Beck and Chris Cowan in their book “Spiral Dynamics, Mastering Values,

Shawqi Jaradat 1
Leadership and Change” (1996). Dr. Clare Graves did not use colours of the value systems, instead he
used names and numbers, that was the idea of Mr. Chris Cowan to make it easy to teach the theory.

Dr. Clare Graves spent his time studying human along with his behaviours and developments until he
came up with Value Systems Theory and comprehensive different levels of existence (eight human value
systems). A brief summary of Graves’ theory is given by himself: “The psychology of the mature human
being is an unfolding, emergent, oscillating, spiraling process marked by progressive subordination of
older, lower-order behaviour systems to newer higher-order systems as man’s existential problems
change”. 1974.

One of the companies is affected by Craves’ theory and the leadership styles changed during its history
and operation in the market is Volvo CE Dealership Company in Oman. The company expresses the
culture, behaviours and values shared across the company to meet customer expectations not only today
but in long term requirements. In business area of the dealership of Volvo CE too many competitors in the
market, the gain of customer satisfaction and loyalty on how customer is treated and how service is
performed along with quality and performance of the machine, in another word operational excellent
paves the way for success business and in order to keep this they have taken some decisions to shift the
direction of strategies and applied new leadership styles to survive in the market.

Background of Dr. Clare Graves Value Systems

The Eight human developmental levels introduced by Dr. Clare Graves cannot be considered as a better
or a best level than other. Caleb, R, (2004), states that Dr. Graves theory based on understand human
development not at one stage or one level, it is a process where no end and growth continually and each
level is seeing the world from different corners. Dr. Clare Graves’ theory is like a map to live through,
organize, and use all required tools and behaviours in order to achieve the main goals at different levels of
existence, and these levels as the following:

Level 1: Beige Value System (A-N) - The Survival/Sense – The Instinctive vMEME.
It is the existence at the most basic human needs like water, food, safety zone, protects the living area,
and survives at a very low basic level and focused on individual survival (automatic existence). As per
Venkateswara R, (2015) that beige level is the beginning and first step of human development and it
might be at the end step as well and comes from the reflex actions and behaviour sometimes without
planning or selecting choices and few emotions. In Alan W, (2013) book, states that this level is a
common in some countries where people work to survive day-to-day.

Level 2: Purple Value System (B-0) - Kin Spirits – The Clannish vMEME.
It is the existence level of stability of life even by force, and strongly believes in blood relationships, it’s
the tribal approach. At this level people start to analyse, set up plans, organise and gather in groups and
establish their own cultures. The existence of this level in current business in sports.

Level 3: Red Value System (C-P) - PowerGods – The Egocentric vMEME


It is the existence level of the best manages and the survival is only for the best. As per Venkateswara R,
(2015), it is more or less life is like a jungle without worries on any consequences; it is selfish and
egocentric/self-centered. In business leaders are very tough and they think people around them tough too,

Shawqi Jaradat 2
and breakaway individual power. The current business of this level often in government departments,
public sectors, and global multinationals.

Level 4: Blue Value System (D-Q) - TruthForce – The Purposeful vMEME


More or less controlling the destiny of the world by one guide force, something much greater than a
human or worth of later life. In business line is to provide high authority, structures, orders, design rules,
procedures and methods and it can be found in government departments and public sectors.

Level 5: Orange Value System (E-R) - StriveDrive – The Strategic vMEME


Achievements of business are the main core value of this level, and to win every opportunity.
Venkateswara R, (2015) explains that this level is subjected to self-confidence and a good believe in
yourself first, and then other factors will be in right place. It’s the energy, strategy to build and collect the
data for excellence results and benefits not only on one right way but a multiplicity ways. Current
example is Volvo Construction Equipment Company.

Level 6: Green Value System (F-S) - HumanBond – The Relativistic vMEME


It is based on free the human from exploitation, everyone is equal and important, and seeks for peace.
Leaders creating a good atmosphere of the employees and they are driven by a desire to help and more
sensitive to the needs of the employees. Current example is mix between the two levels (Green and
Orange) is Apple Computer.

Level 7: Yellow Value System (A’- N’) - FlexFlow – The Systemic vMEME
It is the exiectance level based on viability of this World and avoids it from misuse, danger and flexibility
perspective. As per Alan W, (2013) that in yellow leadership there is no black and white, they simulated
that they are part of the problem as well part of the solution. Barak Obama is mainly Yellow leadership
unlike George Bush who was red leadership.

Level 8: Turquoise:
The characteristic and the main core values of this level are based on unity in living systems and more
spirituality.

Differing Leadership and Behaviour of Volvo CE Dealership in Oman

It is not an easy path to develop an effective model of running a good team without a deep understanding
of human development perspective. As per Dr. Caleb R, (2004), people must be open to drive and accept
the changes and turn these changes into new opportunities to improve business, the way to run business
and what way to stand for and aim to be in the future.

The concept of leadership is undergoing changes and as per Gordon, A. And Yukl, G, (2004) While there
is no shortage of concepts comprising the many leadership theories, there is little consensus on what
constitutes effective leadership. The way to run business and organizations nowadays not like 20 years
ago, it became more flexible which requires different styles of leadership. More responsibilities for
leaders to establish the vision, the right direction at all operational levels and strategies of business adding
to that the market is very competitive and must be very quick to catch all chances and opportunities
around. Successful results are obtained in association of behaviours and good managing. Lazar and
Bergguist, (2004), states that if a leader with poor performance and negative outcomes take place, then
trust, enthusiasm, and engagement just running without any leading or wisdom.

Shawqi Jaradat 3
The leadership style at Volvo CE dealership in Oman is clearly address problems, and trying the best
practice to find the right solutions. They strongly believe that every individual can make change, drive,
and perform better. The leadership style is mixed between transformational leadership style and
transactional leadership style at the Dealership in Oman.

The key principles of the organization to focus more on customer needs, be fast in technology, flexible,
professional in doing it, high skilled leaders, team work, continuous improvements, driving innovations,
building the culture, involvement and engagement, open dialogue, diversity, and driving change.

Leadership style at the organization is to build and develop the company’s leaders to have a good impact
of business results by having the same main scope with different approaches to creating corporate culture
and developing leadership style.

Somehow, it is very critically issue in terms of leadership and what leadership style should be applied in
an area where employees are coming from different cultural background like in Volvo CE Dealership in
Oman, as per Volvo CE documents, “The Volvo Way” (2013), culture is really a critical factor and is the
backbone of all operations and cannot be considered as other factors like technology or structures of the
organization, so the dealership attempts to a solid culture through all departments and to be based on
global principles and values to make the organization more attractive employer, industry leader, business
partner and trusted.

Continuous improvements of business and employees required a systematic and persistent approach.
Transformational leadership style applies at the organization to communicate extremely and proactive,
especially when new changes or challenging take place. Leaders are responsible for developing strategies,
goals, to set a clear course for the future, establish business guideline and getting employees involved in
the decision making process.

The current organization’s structure of the Dealership in Oman as shown in the below figure:

Figure 1: Organization’s Structure of Volvo CE Dealership in Oman.

Shawqi Jaradat 4
As shown above in the organization’s structure this style is the Orange Value System, which based on
achievements of business and leaders at this value system are self-confidence and highly believe that
energy, passion and respect for the individual will lead for excellence results. According to Venkateswara
R,(2015) the leadership assumptions of this level that competition improves productivity and
management’s role is to set up plans, organize, control, evaluate, motivate, and when it comes to this level
the priority goes to work and competitive posture then employees comes secondary.

According to (Venkateswara R, 2015) the leadership role at this level decides reporting procedure, design
best job, to develop and measure success, and how to collect information against competitors in the
market. In the organization structure the leader plays with parts of the organization, tasks, skeleton, and
charts.

According to the dealership documents, 2015 “at the beginning when the organization started, it was a
trailblazer, there were no rules, but there were many first, and there was no way of doing things but there
was an original way of doing things”, which is mixed between purple and red value systems, then the
organization started to design rules, structures, strategies...etc, which matches with blue value system,
then the organization realised that there is something indeed missing with this massive new technology
and the organization has to follow all aspects of changes in the world that happening very quickly,
otherwise it will struggle and cannot survive anymore and stay behind, then the organization shifted the
direction of the strategy in order to make it possible to communicate better across of all departments to
gain, extend business, win all opportunities and still the organization keeps on moving, more or less have
a business analytics and consulting practice across Oman market.

Figure 2: Past Organization’s Structure of Volvo CE Dealership in Oman.

The Dominant Value System of Volvo CE Dealership in Oman

vMEME Level 5 – Orange (E-R):


This dominant of the company is based mainly on achievements of business, very competitive and
success driven. The company became very hungry for information, focus to gather and collect all needed
data and resources like collecting data of competitors and new players in the market and the size of
market, then accordingly set up and build the plans, strategies and share it within the organization
structure, give the opportunities to departments to talk to each other. Beck, D., (2005) states that

Shawqi Jaradat 5
“transition from blue to orange, everyone becomes hungry for information and to read more”. As per
Beck, D. & Cowan, C. (2005) that “management’s role of Orange Value System is to plan, organize,
motivate, control and evaluate work”

How the Orange Value System Impact the Leadership, Management and Staff:
Some factors impact the leadership, management, and staff:

Leadership
The leadership style of the company is more or less a transformational leadership which leaded from Blue
Value System to Orange Value System changes. Leaders and employees are in the same direction to
identify the needed changes, as per Bass, B. M. & Avolio, B. J. (1993) that the transformational
leadership theory hinges on motivational leaders articulating vision and direction, valuing and nurturing
their staffs, it leads to generate commitment, strengthening culture, and improving performance.

The leaderships shape the future of the company; develop strategies, and goals through desire and self
confidence leaders. Leaders make sure to get staff engaged and involve in the decisions process and the
expectations are very high. Dawlabani S. E., (2013) states that “the main idea behind Orange Value
System to shape, make things better, move forward”. Leadership style of the company is managing by
objectives and support employees to transfer objectives into goals, targets and work actions. All
individuals’ goals are in the same direction of the company’s strategy. Leadership style and leaders are
communicative, listen, provide the needed information, all required tools, motive and clarify all decisions
to make it easy for all employees understand the procedures of the work and handle all conflict matters
within and between teams and build mutual trust and evaluate the work and highly believe competition is
the best choice for more improvements. As well the Leaders and leadership designed the system how the
report system should be and who is reporting to whom.

Driving change
All changes taking place inside the company are meant to be for better results, improving performance
and growing the business. As per the company document, 2013, the company enhance the ability to
manage steep upturns and downturns. In driving change the company make sure that they are faster than
any other competitors in the market. As per Beck, D. & Cowan, C. (2005) that “the economy is driven by
market forces”. In Oman it depends on how business condition and environment of the country economics
itself and some external factors that could affect the business, like the ongoing crisis of oil since 2016 in
Gulf region. Sometimes very difficult that some decisions may affect some business areas, employees,
customers and the company’s stakeholders. Beck, D. & Cowan, C. (2005) states that at the Orange Value
System “the system runs through politicized hierarchy with economic and status rewards as the means to
the end.

Clear objectives
The company addressed that to be a major player in Oman market. Leadership and leaders in the company
focus to be the best, and be the most success competitor in the market, as per Beck, D. & Cowan, C.
(2005) that Orange Objective is simple to be the best and most successful competitor in the field. The
General Manager of Volvo CE Dealership in Oman Mr. Ahmed Rashed states that “the success of
business is the result of dedicated team work; each team member contributed and strived towards making
Volvo CE products the most preferred brand in Oman.

Diversity

Shawqi Jaradat 6
Staffs are coming from different countries with different backgrounds and experiences, all employees are
treated equally with respect, and the best to convert this diversity into advantages to impact the business
and it helps the company to be strong, build a very strong relationship between departments, customers,
and society. The Company’s General Manager states that “it is your fully right to be treated with dignity
and respect and if any one feels that he is not treated in a proper way my office is open for all”

Culture
Culture is not easy to deal with, especially when employees coming from different cultural backgrounds
(Omani, Palestinians, Jordanians, Philippines, Indians, Pakistanis, Egyptians, Lebanese....etc), it is a
critical factor so leaders ensure to curb all negativities about customers and departments, built a very
strong structure of how staff work together and have a respect for the individual, according to Volvo CE
Document, 2013: “We work with energy, passion, and respect for the individual”.

Teamwork
Leadership style of the company is to work together from top management to division teams to get
everyone involved and participate to better performance and deliver best results. In order to meet the
needs of the highly competitive markets, organizations must continually increase performance (Arslan, A.
& Staub, S. (2013). The team work ensure to improving quality, best service and build the culture and
trust between all functions inside the company.

The Less Dominant Value System of Volvo CE Dealership in Oma


vMEME Level 4 – Blue (D-Q):
The company is changing the whole organizational structure from Blue to Orange Value System, still not
the full transactional been done for all divisions and sectors of the company, the less dominant still exists
in some divisions in the company, using the same tactics and methods of Blue Value System. These
divisions run with rules and regulations even punishment system still exists. The mentality of these small
divisions still do not get into the mood to make any changes, that is why they follow the Blue Value
System in their work, as an example the Hydraulic Division in the company just follow the hierarchy
system and do not share information or to talk to other divisions and follow orders, this division is
structured as shown below:

Figure 1.3: Volvo CE Dealership Organizational Structure – Service Centre/Workshop (Hydraulic


Division). Source: Volvo CE Dealership – Competence Development Centre.

Shawqi Jaradat 7
Particular Leadership Issues and Challenges
The conditions of life and the changes that have occurred in the last decades, as well as the scientific
development and this modern technology, civilizations, even changes in the nature and areas of business
and size, diversity workplace, and the new regulations and rules by government of compensations and
equitability, updates that occur constantly and continuously and so many competitors in the market, all
these factors and combinations forced the organization to take in consideration all these factors and to
look for new methods and ways to run the business, change the operation systems and structures from
traditional leadership approaches and style to new leadership approaches and styles. It was a big challenge
for the organization to develop its business cycle management to find the right way in the market and
spend more time and money to find the best practice for that to keep pace with its developments. The
current requirements of business and the many transformations, as well the new changes in management
operations and systems, make it difficult for the organization’s business continuity, so the management
decided to take many important decisions that benefiting the company and the continuity of its work in
Oman market and change the strategic objectives to be based on customer requirements.

One of the most important challenges faced by the organization is competition in Oman market, this
market was a very small competitive market and extended to be a very competitive in the last couple of
years, and in order to compete effectively in the market, the organization has taken proactive steps and
invest more on changing and building operational systems, employee developments, building and creating
more departments to fill the gaps inside the organization. One of the steps the organization has taken is to
be fast and high response in development of processes, procedures and changes of conducting jobs in a
very efficient way and focus on all customer needs and requirements. Another step is to focus on
customer service and to deliver good quality of service to meeting customer expectation and be unique in
the market in this factor, this factor was not exactly performed before in the organization structure and
approaches, so customer satisfaction became the highest priority and most organized aspects in the
organization. In order to come up with this level the organization hired high skilled employees to make
sure the customer is served according to the standard and employees work closely with customers to
develop products and service to improve productivity and profitability of Volvo CE machines.

Due to changes in business area and extended with more products and services, the organization is forced
to drive innovations and ability to come with unique technologies to support customer in terms of time,
money and to add more value for customer, this aspect is important to success and reputation in the
market. According to Volvo CE documents “The Volvo Way” (2013), the leadership styles nowadays are
based on to drive mastery in execution and change through open dialogue to contribute to improvements.
Active listening and a lively exchange of experience, ideas and perspectives promote understanding and
collaboration between different teams and functions.

With all these challenges and changes with operational systems, leadership approaches and changes in
directions still the organization needs always moving forward and still the big challenge to keep
employees engaged and work by heart to work and reduce employees’ turnover by finding the best
practice and motivate them to increase the level of performance and productivity.

Conclusion
This paper identifies the leadership styles from different aspects, how to apply and practice different
styles with different approaches, particularly inside any organization based on Dr. Clare Graves value
systems - levels of existence, each level is described along with exist examples in our world. Based on

Shawqi Jaradat 8
these levels of existence a comparison of Volvo CE Dealership in Oman was made between what the
company was at the beginning and what it is now, how it is affected with different leadership styles that
applied during periods of time and developed by taking into accounts many factors that are directly and
indirectly affect the nature of business. At the beginning when the company is established the idea was to
set up some structures, procedures, cycle work, scopes and rules so everything automatically will follow
respectively but in fact that did not work as expected and the company faced a lot of challenges and
difficulties that could not help the company to survive in the market. Therefore, the company started to
open its eyes on so many factors and corners to develop the leadership skills to find out the best style that
should be applied for best business results.

How amazing is to find, take new ideas and have always a room for more and more improvements at any
step in business, as per Dr. Linus Pauling says: “the best to have a good idea, is to have a lot of ideas”,
that sentence is really into the point that in business world all theories related to leadership styles must be
applied to find out the best practice and solutions to make it happen to survive and keep on going to grow
and develop more and more. It’s well known that leadership itself is one of the main and an important
function of management and business, as per Burns, J.M. (1978) “is one of the most observed and least
understood phenomena on earth”. The most load on leaders, they set up all rules, the business direction,
missions, visions, strategies, structures and aim to make sure all tasks of the organizational are completed
according to standards and finish on time, high performance working, high customer satisfaction and meet
customer expectations, and set up new plans for the future and take the company further and what aspire
to be in the future. Not to forget the important element in all this is the employee himself and leaders
nowadays should be aware on how to enhance individual and team performance, motive employees in
order to gain best business results and have a good impact on business, and one more thing is to keep
good employees loyal and to stay in order to continue the business in the right direction and position in
the market.

There is no argument that the value of the leadership gives a significant strength to the organization,
business, goals and how to achieve all. Leadership must understand the abilities and required values to
evaluate the qualities of the new leaders before and to develop their performance inside the organizations.
That’s what exactly happened inside Volvo CE in Oman as they have done so many researches that
assisted to gain better understanding of leadership styles, approaches and how that impact on business in
Oman market. At the beginning the company was mixed between purple and red value systems started to
change its direction to be red value system, but again the company faced an issue and a huge challenge
that they cannot compete in the market as it should be and the company was struggled with all ongoing
new technologies around everywhere so with this matter there were a lot of plans and discussions to come
up with the best solution and finally the company started to move its direction to orange value system and
the management believed with this value system there is a strongly possibility to maintain the company’s
position and continuous its business in Omani market.

Up to this study the orange value system still exists in the company, and its clearly seen that the company
is working hard, seriously and keep on changing to overcome all the challenges, work close to develop
the company’s facilities, even so add new and more divisions which may to be extra expenses on the
management side but in the other side its working towards a full integrated management that works
together hand in hand to achieve all the objectives and to be a very competitive player in the market.

Shawqi Jaradat 9
References

- Clare, W. G. (1974), Human Nature Prepares for a Momentous Leap. From The Futurist, 1974,
pp. 72-87.
- Don B, and Chris C. (1996), Spiral Dynamics: “Mastering Values, Leadership and Change”.
Cambridge, MA: Blackwell Publishers, Inc.
- Venkateswara, R. (2015), Mastering Vales, Leadership, and Change of Spiral Dynamics, Lulu
Press, Inc.
- Lazar, J. And Bergguist, W. (2004), Alignment Coaching: A broader Perspective on Business
Coaching, Performance Improvements, Vol. 43 (10), pp. 16-22. Retrieved March 5, 2006, from
ProQues database.
- Beck, D. & Cowan, C. (2005). Spiral Dynamics: Mastering Values, Leadership and Change,
Publisher: Wiley-Blackwell. pp.120-350.
- Caleb, R. (2004), Building Your Leadership Team: “Value Systems, Memetics, and Education —
A Spiral Dynamics Approach”. Rosado Consulting for Change in Human Systems.
- Burns, J.M. (1978), Leadership, Harper Torchbooks, New York, NY.
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edition, London, United Kingdom.
- Gordon, A. And Yuki, G. (2004), The Future of Leadership Research: “Challenges and
Opportunities”. German Journal of Human Resource Research 18, no. 3:8.
- Dr. Linus Pauling (by his own word).
- Bass, B. M., & Avolio, B. J. (1993). Transformational leadership and organizational culture.
Public Administration Quarterly, 17(1), pp.112-121.
- Arslan, A., and Staub, S. (2013). Theory X and Theory Y Type Leadership Behavior and its
Impact on Organizational Performance: Small Business Owners in the Şishane Lighting and
Chandelier District. Procedia-Social and Behavioral Sciences, (PP. 75, 102-111).
- Dawlabani, S. E., (2013), MEMEnomics: The Next Generation Economic System, Publisher:
Select Books. Background. pp. 20-70.
- Volvo Construction Equipment Documents, (2013) “The Volvo Way”
- Volvo Dealership Documents, www.genserv-oman.com

Shawqi Jaradat 10

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