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In this essay, two main methods of commercial bank leadership will be directly analyzed for their efficiency or hazard for the entity’s reputation and performance.
First and foremost, there are two approaches for explaining the type of leadership in the specific organization: national and organizational. When analyzing the national explanation, it is important to notice that this method is the most common way to lead an organization (König, 2020). The person who manages the working process is just a representative of the list of notions about how to organize the cooperation in the entity (Aggarwal and Goodell, 2014). From this perspective, the least possibilities and innovations will be used by a leader due to retrospective characteristics of the style of management (Bratton, 2020). However, while the national style of human resources managing is concrete and complete, the organizational theory is based on its innovations that were provided during the working process (Schedlitzki and Edwards, 2018). Consequently, in this case, the more leader draws their attention to the other’s performance, the more efficient they will be for the organization in the future.
Turning to the worker satisfaction and possibilities for both theories, organizational theory must distinguish this aspect of management results. More specifically, for an international commercial bank in Africa, it will be more effective for management to use an organizational approach to avoid mismatches with warring nations among the workforce’s representatives (Wisestri, 2020). When analyzing psychological and social aspects in terms of organizational leadership, it is important to distinguish them due to the different influence they make on the organization members (Arnold, 2017). Psychological perspective represents the intrinsic value of personal characteristics that were formed owing to the influence of the specific people (Seven steps for effective leadership development, 2012). However, social perspective describes the common values and notions that were formed in the whole organization or group of people so that when an individual’s role is pivotal in the psychological aspect, it is almost diluted in terms of social perspectives.
The main advantage of centric approach is that it is adjusted to the situation within the entity, and national or organizational parts may influence more and less depending on the situation. For instance, the board of directors of an international bank based in Africa decides to implement the the centrical approach to the leadership within the organization (Ovadje, 2014). Consequently, many people who were influenced by the prevailing in the bank organizational method of management have increased their efficiency (Kör, 2016). This is due to the national characteristics implementation in their common style of leadership (Kozlowski, Mak, and Chao, 2016). Even though the centric method might divide the organization into big common-nation clusters, the possibilities of efficiency rising overtop the risks (Scherrer, 2017). As a result, the commercial bank will gain more by implementing centric strategy into its leadership activity.
Reference List
Aggarwal, R. and Goodell, J.W.,(2014). Personal leadership development in international business. Journal of Teaching in International Business, 25(1), pp.1–4. Web.
Arnold, K.A., (2017). Transformational leadership and employee psychological well-being: A review and directions for future research. Journal of Occupational Health Psychology, 22(3), pp.381–393. Web.
Bratton, J., (2020). Organizational leadership, Los Angeles: Sage.
Kozlowski, S.W.J., Mak, S. and Chao, G.T., (2016). Team-centric leadership: an integrative review. Annual Review of Organizational Psychology and Organizational Behavior, 3(1), pp.21–54. Web.
König, J.C., (2020). Web.
Kör, B., (2016). The mediating effects of self-leadership on perceived entrepreneurial orientation and innovative work behavior in the banking sector. SpringerPlus, 5(1). Web.
Ovadje, F., (2014). Change leadership in developing countries, Routledge.
Schedlitzki, D. and Edwards, G., (2017). Studying leadership: traditional and critical approaches, Sage Publications Ltd.
Scherrer, C.P., (2017). Ethnicity, nationalism and violence conflict management, human rights, and multilateral regimes, Milton: Taylor and Francis.
Seven steps for effective leadership development., (2012) Web.
Wisetsri, W., 2020. The influence of leadership, work motivation and organizational culture on job performance. International Journal of Psychosocial Rehabilitation, 24(5), pp.7336–7350. Web.
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