Abu Dhabi Islamic Bank Performance Essay Paper: Introduction
Abu Dhabi Islamic bank is a commercial institution established and destined to provide quality banking services to customers in the UAE. The bank started its operations in the year 1997 under quality guidelines and operating policies. Since its inception, the bank has been able to record exemplary performance (McGinley, 2012). The performance is attributable to is flexible organization structure that allows for the execution of changes, quality of its services and delivery of timely responses to customers issues. Similarly, the banks good performance is attributable to its highly qualified work force who executes their duties with absolute diligence and determination. Indeed, the bank has been able to gain competitive advantage over its rivals in the market. It is bound to record more positive performance if it continuous operating under the same performance guidelines.
Leadership theories are performance drivers since they provide key elements that managers and staff members should adhere to in ensuring that optimal returns are achieved in institutions. The theories include trait theory behavioral and situational leadership theory (leadershipchallenge.com, 2013). These theories have been instrumental in most settings as noted by most managers of various institutions. In particular, trait theory revolves around establishment of individuals qualities. It holds that people are born with unique character traits and characteristics that inform how well they can lead or offer services. Major traits that the theory fronts managers to have include intelligence, being ready to accepting responsibilities, understand the needs of employees and being trustworthy. It also requires managers to be great motivators, assertive, flexible, and self-confident as well as have the ability of making quality decisions.
From the survey findings obtained from the Abu Dhabi Islamic Bank, it is clearly evident that leadership theories have played an integral part towards the sudden success of the bank. The leadership styles adopted by the bank’s management have created an enabling environment that has allowed the employees to excel in the organization as well as exude motivation at all times. The managers often practice structured organizational leadership that emphasizes on continued employee motivation to ensure continued exemplary performance. The management also encourages career development and advancement on the part of the employees as well as establishment of loyalty among within the bank with all the stakeholders. Such type of leadership as practiced by the managers at the Abu Dhabi Islamic Bank can be considered to embed on consideration leadership behavior. This is particularly due to the fact that the managers at the bank have been able to gain trust and respect from the employees as based on the fact that employees feel highly appreciated for their work.
Additionally, the managers in Abu Dhabi Islamic Bank have adopted an initiating leadership behavior. Indeed, the managers of the bank attempt to define and structure the roles of all organizational stakeholders mainly the management and employees towards the attainment of organizational goals. This is demonstrated through the response in the survey where the manager admits that he focuses on increasing both employee and company performance as the two needs each other for any reasonable progress to be achieved. In particular, there is an emphasis on quality performance of the employees by the management. The bank has also adopted a free operational flow and clarity of information to enhance continued improvements in performance. Therefore, the bank leadership has emphasized on both task aspects of the job as well as the interpersonal relations among employees.
The managers of Abu Dhabi Islamic Bank exercise Fieldler leadership model while making decisions on various issues. Fieldler leadership model relates to the effectiveness of group performance on proper matching of leader’s style and the extent to which the situation at hand allows the application of control by the leader (Robbins & Judge, 2012). This is evident from the decision making approach adopted by the managers at Abu Dhabi Islamic Bank. In particular, the decision making process of the managers at the Abu Dhabi Islamic Bank is based on experience and the information available about the situation. The managers have had vast experience in the bank therefore in a good position to make effective decisions pertaining to various situations.
Transformational leadership is evident among the managers at Abu Dhabi Islamic Bank. Though transformational leadership, the managers are able to motivate the employees towards the attainment of the organizational goals through clarification of roles in the process of undertaking various roles for the attainment of organizational goals (Robbins & Judge, 2012). Through transformational leadership, the managers at Abu Dhabi Islamic Bank have assisted the employees to focus on the bigger picture as well as devote their efforts towards the good of the organization through effective balancing between personal and organizational goals. From transformational leadership, the Abu Dhabi Islamic Bank has continued to excel as employees are highly motivated and committed towards the success of the bank.
The application of effective leadership theories in Abu Dhabi Islamic Bank has provided requisite incentives that have led to effective decision making about key issues that influence performance in the bank. The theories especially trait leadership theory have enabled the bank to hire strong managers with high level of confidence. The theories have also enabled the bank’s managers to accept responsibility easily and understand the needs of employees. The theories have inculcated a sense of assertiveness and promote motivation of employees. Variably, the bank’s leaders have also embarked on focusing on the work and on the people. This has ensured that there is a perfect match between work and the human resource available. Comparatively, the bank has embraces and operates under noble leadership practice that helps in ensuring that key elements of leadership theories are attained.
Gaps between theories of leadership and practices
In spite of the success associated with various leadership theories, there are various gaps that often hinder the full realization of organizational potential. Leadership theories have various gaps that compromise their effectiveness. According to Robbins & Judge (2012), the theories have diverse limitations since they are based on identical fundamentals. In the contexts of Abu Dhabi Islamic Bank, several leadership theories are practiced by the managers. These leadership theories have various limitations in spite of the success they have brought to the bank. For instance, the application of structured leadership in the bank is associated with a high level of bureaucracy which can cause communication breakdown between leaders and the employees. Similarly, the use of initiating leadership behavior is not clear in terms of the balance between employee benefits and organizational benefits. The managers encounter a challenge in determining the extent to which employee benefits override organizational benefits. Indeed, trying to uphold the interests of the organization and employees high at all times is a major challenge for the managers. Therefore, there are no clear cuts between employee and organizational goals.
The banks managers are prone to blanket acceptance of diverse tasks event those that they cannot manage. Thirdly, focus on trade has been affecting management of circumstantial and behavioral issues that normally arises. It has impeded the banks capacity to recording good performance as expected by employees given that it denies managers the opportunity to be flexible in their thought. Abu Dhabi banks managers are also becoming overambitious based coon the goals that they set under trait leadership theory. The use of Fieldler leadership behavior is challenging for the managers at the Abu Dhabi Islamic Bank. The fact that the model is based on experience of past situations raises a major challenge especially in situations where managers have no past experience. On the other hand, the use of transformational leadership by the bank raises concerns in the sense that restlessness may set in due to overambitious nature of the employees. Such over-ambitious tendencies could spark rivalry among employees leading to organizational failure to attain goals.
Abu Dhabi bank has been recording exemplary performance over the years due to its effective expansion strategies. Its performance is also attributable to the excellent organizational structure that is of great flexibility. The leadership theories practiced by the bank have facilitated employee motivation hence reduced turnover rates. The bank has created an enabling environment for the employees to thrive and advance in their careers. The bank has also created an effective communication throughout the organization to facilitate ease in interaction and understanding of organizational goals and expectations. The effective leadership theories and organizational structure has enabled the bank to excel in attaining organizational objectives.
Based on the current leadership behavior in Abu Dhabi Islamic Bank, it is recommended that the bank adopts a progressive leadership development programs to further strengthen the organizational managers. The bank should adopt a system of organizational structure that favors the application of leadership competencies towards the realization of organizational leadership needs. Furthermore, it is recommended that the leadership encourage employees to the decision makers even in situations that seem challenging as currently employees are particularly fearful of making decisions in challenging situations. The current organizational structure at the bank seems stratified; therefore, the bank should adopt a system that allows for both vertical and horizontal communication to be practices with utmost ease. Moreover, the ban k needs to invest in leadership programs that expose young talents and career starters to learn leadership and prepare to take up leadership roles in the future.
Canadian University of Dubai (CUD). (2013). Abu Dhabi Islamic Bank & Canadian University of Dubai Partnered To Support the Community in Education & Financial Services. Retrieved from http://www.cud.ac.ae/news/abu-dhabi-islamic-bank-canadian-university-dubai-partnered-support-community-education
leadershipchallenge.com. (2013). The Five Practices of Exemplary Leadership® Model. Retrieved from http://www.leadershipchallenge.com/about-section-our-approach.aspx
McGinley , S. (2012). EXCLUSIVE: Abu Dhabi Islamic Bank plans global growth. Retrieved from http://www.arabianbusiness.com/exclusive-abu-dhabi-islamic-bank-plans-global-growth-451849.html
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