Analyzing the Leadership Policy of SABIC Company

To understand an organization, analyzing the organizational issues and policies are useful. There are certain issues like diversity, motivation, individual differences, group behavior, leadership, communication, individual differences, and satisfaction, which can be analyzed. Leadership, a social procedure, is intentionally used by an individual or an organization to influence subordinate employees to deliver the desired outcome. This report aims to analyze the leadership policy of SABIC Company, which is a diversified manufacturing company of Saudi Arabia. This organization does its business in the chemicals industry. The issues regarding the leadership policy of this company will be analyzed in this report to get a clear idea about this company.

In 1976 Royal decree established SABIC to convert oil by-products into useful Polymers fertilizers and Chemicals (Sabic.com, 2020). Headquarter of this organization is located in Riyadh, Saudi Arabia. This organization provides diversified chemicals such as chemicals, polyolefin, metals, polyethene, commodity, ethylene glycol, agri-nutrients, and high-performance plastics (Sabic.com, 2020). Yusuf Al-Benyan is the present CEO of this company (Sabic.com, 2020). This company aspires to become the world best when it comes to chemicals (Sabic.com, 2020).

The mission of this company is to responsibly provide quality products and services through innovative learning and operational excellence while sustaining maximum value for our stakeholders (Sabic.com, 2020). The business operation of this company follows five core values which are “inspire, create, integrity, deliver and engage” (Sabic.com, 2020). For innovation, this organization aligns the latest technology, human talent and natural resources (Sabic.com, 2020). In 2018, the total revenue of this company was 45 billion U.S. dollars (Puri-Mirza, 2019). In 2018, the number of total employees in this company was more than 35 thousand (Statista, 2019).

In 2017, the senior executive of this organization has launched the SABIC Leadership Way (Sabic.com, 2019). This leadership way was developed to transform the leadership of this company. Four issues were prioritized by this organization, which are talent champion, collaboration partner, innovation pioneer and excellence driver.

The aim of this talent champion program was to bring the best employee of this organization and develop them to support the growth of this organization (Sabic.com, 2019). To achieve the business objectives of this organization management will utilize those talented employees in future.

The aim of the collaboration partner program is to work closely with employees and partners through high-performing products (Sabic.com, 2019). It will help this organization to identify significant partners. To collaborate with significant partners, this program will help this organization.

Identification of organizational policy

The business environment has been changing dramatically. This program will help this organization to not only remained relevant but also written the leadership position. To identify the pace of change this program will be helpful. Innovative ideas and innovative ways of working will be emphasized by this organization (Sabic.com, 2019).

With the help of this program, this organization will maintain continual improvement and a sense of urgency to create a positive impact on consumers, communities and stakeholders (Sabic.com, 2019). To maintain efficiency and to remain relevant in the market, this program will help this company.

This leadership program follows the core values of this organization which are ‘inspire, engage, create and delivers’. The purpose of this program is to ‘become chemistry that matters' which is aligned with the '2025 strategy of SABIC' (Sabic.com, 2019). Through this program, this organization is interested to develop a dynamic and inclusive leadership culture in the organization, which can manage challenges appropriately (Sabic.com, 2019). The purpose of this program is to create a common set of ideals. This program is not just about creating and imposing rules on the employee. Active participation is fundamental for this organization to achieve boat SABIC's organizational objectives and the strategic vision of Saudi Arabia.

In this part, the leadership of SABIC will be analyzed. It can be said that the leadership approach of SABIC is similar to transformational leadership and is adequate. The key components of the leadership approach of this organization are individualized consideration, idealized influence, intellectual stimulation and inspirational motivation. According to Mittal and Dhar, to transformational leadership boost employee creativity, innovation ability and enhance communication (Mittal & Dhar, 2015). The initiatives taken by this company is helpful for the employee to foster innovative idea, efficiency. According to Ghasabeh, Soosay & Reaiche, appropriate transformational leadership is appropriate for enhancing innovative through intellectual stimulation and the influence of the leader. To ensure the desired outcome this leadership style can be effective. The management team of SABIC has launched the new program, named SABIC Leadership Way to cultivate the culture of the leadership in the workforce.

These types of initiative are taken by this organization to inspire the employee to improve communication. This organization helps the employee to flourish their innovative ideas (Sabic.com, 2019). In this company, leader and subordinate employees interact closely so that a higher level of motivation and morality can be developed in the workforce. According to Aga, Noorderhaven & Vallejo, the success of a project relies on transformational leadership. The transformational leader has the responsibility to improve team bonding (Aga, Noorderhaven & Vallejo, 2016). The senior executive launched the SABIC Leadership Way program to spread the leadership culture in the human resource of this organization (Sabic.com, 2019). So it can be said that the leadership approach of this company is good. By following this leadership style, this organization can achieve its business objectives.  

Conclusion:

Thus, this report concludes that the senior executives of SABIC Company have launched a leadership program to cultivate the culture of the leadership in the human resource of this company. The leadership policy of this company emphasizes on innovation, communication, efficiency, and team bonding. Employees are influenced by the leadership approach of this company. By aligning the leadership, knowledge and innovation, this company is successful to accomplish its business objectives. The leadership policy of this company is in good shape.