LEADERSHIP AND MANAGEMENT

Leadership is the ability to persuade others to engage in a particular way. It is a process of

guiding individuals through communication and convictions, and it involves a number of
components related to the belief that individuals are moving in the same direction, the goal of the
system under analysis, the group decision, and the motivation of human resources (Răducan and
Răducan 2014).

The process of organizing, planning, directing, and regulating resources (people, money, and
materials) in order to accomplish organizational goals is known as management. The managers
are those who oversee the organization's structures, operations, and personnel. They are
particularly prevalent at the intermediate levels of the organization, where they coordinate
management actions with execution activities.

It's common to use the phrases management and leadership interchangeably. This frequently
results in the misconception that management and leadership cover the same topics, which
couldn't be further from the reality. Compared to management, leadership is a more elusive idea.
The two most important ideas in leadership are persuasion and understanding when and how to
motivate someone. This is not to be confused with management, which focuses more on
efficiency than effectiveness and is more transactional in nature. Furthermore, leadership is about
people and connections and how to effectively use them to achieve a shared purpose, whereas
management is about control and having checks and balances in place to accurately assess
performance. The focus of leaders is on "innovation," which involves bringing new ideas to the
fore and seeing them as highly valued abilities that come from a creative component (Bennis and
Nanus, 1997).

THEORIES OF LEADERSHIP

Charry (2012) listed eight important theories of leadership and noted that scholarly interest in
leadership expanded dramatically throughout the early twentieth century. Later ideas examined
other elements, such as situational considerations and skill levels, while the older theories
concentrated on the characteristics that set leaders apart from followers. While new hypotheses
are constantly being developed, the most fall into one of Charry's eight main categories
(Amanchukwu et al. 2015)

The Great Man Theory: According to the great man's idea of leadership, certain people possess
inherent abilities that enable them to be effective leaders from birth. In this perspective, leaders
are not created; they are born. It also implies that leaders take on authority when leadership
qualities are required (Cherry, 2023). These ideas often portray leaders as mythical, heroic, and
destined to assume greater authority when called upon. Because leadership was viewed at the
time as predominantly a male attribute, particularly in military leadership, the term "great man"
was utilized (Amanchukwu et al. 2015).

The Transactional Theory: Transactional leadership, often referred to as managerial leadership,

is a type of leadership in which managers use rewards and penalties to get the best work out of
their staff members. An exchange or transaction is the foundation of the transactional executive
leadership approach. Workers who complete their jobs to the required standards are rewarded by
the boss, while those who fall short face consequences (Lutkevich and Pratt 2022).

The Transformational Theory: Transformational theories, another name for relationship theories,
concentrate on the bonds that arise between leaders and followers. According to these views,
being a leader is about connecting with others and being able to "create a connection" that
inspires followers and leaders alike to be more moral and motivated. Relationship theories are
sometimes contrasted with theories of charismatic leadership, which hold that leaders who
possess particular traits—like self-assurance, extroversion, and principles that are clearly stated
—are the most effective at inspiring followers

THEORIES OF MANAGEMENT

Scientific Management Theory: The scientific management theory was developed by American
mechanical engineer Frederick Taylor, one of the first management theorists. He and his
colleagues were among the first to conduct systematic research on work performance. According
to Taylor's perspective, putting individuals under pressure to work hard isn't the greatest method
to maximize outcomes. Taylor suggested, instead, making things simpler in order to boost
output. Taylor created the idea of "a fair day's wages for a fair day's work" because he believed
that money was the primary motivator for working. The scientific management idea has now
spread around the globe. The cooperation that resulted between employers and workers
eventually developed into the teamwork that individuals currently experience (TEAM, 2023)

Administrative Management Theory:

The administrative management theory is concerned with how employees and management are
arranged in a company to accomplish tasks. It makes the argument that operational-level
employees' productivity would eventually be impacted by how well management is organized
(Gordon, 2023). Administrative management theory adopts a top-down strategy, emphasizing
primarily on streamlining the organization's top tier of management in the belief that the
productivity of lower-level managers is ultimately guaranteed by the efficacy of top
management. In Henri Fayol's administrative management, a manager is responsible for five
tasks inside the company. The managerial duties of Henri Fayol are, to put it simply, POCCC:
organizing, commanding, coordinating, and controlling (Mahesh, 2023).

Human Relations Theory

The Hawthorne experiments were the invention of Australian-born psychologist and
organizational theorist Elton Mayo, who started studying how group dynamics impact
individuals in the workplace in the 1920s. Mayo popularized the concept of the "social person,"
which holds that people should be treated by organizations as unique persons with unique needs
rather than like robots. According to the study, human relations management theory, individuals
want to be a part of a team that is encouraging and promotes growth and development.
Employees will therefore consider their job as having meaning and be driven to be more
productive, producing high-quality work, if they receive special attention and are encouraged to
contribute.
Is There a Difference Between Management and Leadership?

When Abraham Zaleznik gave a talk at a leadership conference organized by The Times in
Washington, D.C., in 1977, he is credited with starting the ongoing discussion over leadership vs
management. In its compilation of leadership-related publications, the Harvard Business Review
continues to publish a follow-up piece titled Managers and Leaders: Are They Different? This
demonstrates how ongoing the discussion is even after several decades, despite its lack of
resolution.

The dispute over whether management and leadership are different has been heavily influenced
by four major theorists: Abraham Zaleznick, Henry Mintzberg, John Kotter, and Peter Drucker

Figure 1.2 presents an overview of each of their different stances in the argument.

INTRODUCTION TO ADNOC
Among the top ten biggest oil corporations worldwide is Abu Dhabi National Oil Company
(ADNOC). The state-owned company works in every facet of the oil business. Its holding
company structure is sophisticated and convoluted, with stock linkages to major Western oil
firms. The centre of the United Arab Emirates' (UAE) oil sector, Abu Dhabi is the largest of the
seven nations that made up the UAE in 1971. At least 90% of the United Arab Emirates' 100
billion barrels of oil reserves are held by ADNOC. The company runs two refineries, three oil
production companies, Abu Dhabi Gas Industries Ltd. (Gasco), a natural gas production
company, two maritime transport companies, the Abu Dhabi Marine Oil Operating Co. (Adma-
Opco) for offshore exploration and production, and numerous other subsidiaries in the
petrochemical, oil, and gas industries. ADNOC also supplies desalinated water, as well as gas
and electricity for local use. Adnoc-Fod, a subsidiary, runs a network of 200 gas stations and
markets and distributes gasoline and gas throughout the United Arab Emirates. The holding
company is organized into 14 departments, each representing a distinct industry sector. The
United Arab Emirate's Supreme Petroleum Council, which directs the Emirate's petroleum
policy, holds the holding company's management accountable. The crown prince of Abu Dhabi
and head of the Supreme Petroleum Council is Khalifa Bin Zayed Al Nahyan.

History

The Iraq Petroleum Company, which was founded by international oil interests and created the
Red Line Agreement, an alliance including most Persian Gulf governments, is where the history
of the Abu Dhabi National Oil Company (ADNOC) begins. Petroleum Development (Trucial
States) Ltd. (PDTC), a business that shared the Iraq Petroleum Company's ownership structure,
was awarded concessions by Abu Dhabi in 1939. After major discoveries in the 1960s as a result
of slow oil prospecting in Abu Dhabi, PDTC was renamed the Abu Dhabi Petroleum Company
(ADPC) in 1963. After entering into 50/50 profit-sharing agreements with ADPC and Abu Dhabi
Marine Areas Ltd. (ADMA), the government formed ADNOC in 1971 as a fully state-owned
company in response to growing dissatisfaction about foreign ownership. ADNOC progressively
expanded its ownership interest in these businesses and broadened its business, creating
subsidiaries for gas liquefaction, distribution, tanker operations, and refining. ADNOC navigated
the problems of the global oil sector in the 1980s and reorganized its management in 1988.
ADNOC increased its production capacity in the 1990s, forged international alliances, and
underwent a big reorganization in 1998. In the early 2000s, ADNOC maintained its leadership
position in the global oil sector by concentrating on the refining, petrochemical, and natural gas
industries while adhering to its expansionist principles.

LEADERSHIP STYLES FOLLOWED BY ADNOC DISTRIBUTION

An organization uses a leadership style to carry out the set goal within a certain time frame and
to apply the ideas that are realistically possible with a focused strategic vision and potential.
To implement new ideas and achieve success for the business, leadership is crucial to the
organizational structure. Positive motivation and inspiration would result in a significant shift in
the employees' and staff's perceptions of and responses to the leadership. Assigning leadership is
the process of setting up circumstances so that several group members may achieve the
organization's objectives. It is a dynamic strategic force principle that inspires and unites the
organization and its workers to accomplish the goals and predetermined targets (Karam and
Tasmin 2020).

By adopting the transformation leadership approach, ADNOC has brought in a new era of
leadership. This approach has caused a change in perspective from the old traditional leadership
approach to a new one in which the manager sets a clear, SMART vision that all subordinates
must adhere to to improve and approach the four main pillars of any organization. Performance,
profitability, people, and efficiency are the pillars that will support great organizational
efficiency and high productivity inside the company. It is extremely difficult to overcome the
decades-old attitude and culture of ADNOC and to overcome the reluctance of many change
agents (Karam and Tasmin 2020).

ADNOC implemented the transformation leadership style in 2016, which presented a significant
challenge to all employees, many of whom had been with the company for 20–30 years. The
issue was that, despite having a strong financial foundation, a highly experienced workforce, full
government and management support, and having been in operation for more than 40 years,
ADNOC's performance in terms of both development and finances was found to be inferior to
that of other GCC oil and gas companies. However, compared to other oil and gas businesses,
the company's overall costs were greater. Both the operational budget and the capital costs for
both small and large projects were extremely expensive without any indication of organizational
superiority or a clear requirement or internal rate of return (Al-Hosani, 2011).