Solution

Knowledge Required for Leaders and Managers

Leaders: Leaders at Saudi Aramco need to have a thorough comprehension of global energy markets (CIPD, 2014). In the oil and gas industry, with its complex geopolitical, economic and environmental issues at play, leaders must also understand the changes in the operating climate. This knowledge enables them to make sensible strategic decisions that aid their company to follow the global trends and maintain sustainability and growth long term.

Managers: Aramco’s managers require knowledge about the operational efficiency and resource management. This means understanding of the technical processes, the optimisation of work flows, and the efficient use of personnel and equipment to reach the production targets and maintain the cost effectiveness.

Comparison: Leaders need to know more, in terms of external markets and long-term strategy, while managers need to know more of day to day operations. Leaders have to look globally and strategically, while managers simply manage internal processes. The levels of thinking required for both roles are very different, but both are critical-thinking roles.

Skills Required

Leaders: Strong strategic decision-making skills are required of leaders. This involves analysing complex information into actionable decisions that will define the company’s future direction, particularly in areas like energy transition and sustainability initiatives.

Managers: Due to daily operational issues, managers require strong problem-solving skills (Kotter, 2008). In other words, they must be capable of addressing the production, workforce management and resource allocation problem to achieve smooth and efficient operations.

Comparison: Although both leaders and managers require decision making and problem solving, leaders are concerned with long term, high level strategy, while managers tackle immediate, operational challenges.

Behaviours Required

Leader: A leader is expected to think visionary and addresses the team with a clear picture of the future. The reason for this behaviour is that it motivates employees to do what is good for the company in the long run.

Manager: Accountability from managers is crucial so that they can track their team’s performance against targets and other similar performance parameters like operational standards (Pearce, 2004). It means that they take full responsibility for achieving objectives, for working to very high standards.

Comparison: Leadership focuses on visionary behaviour which is more inspirational and future oriented whereas managers’ behaviour is based on the accountability. Both are critical to organisational success, as leaders set the direction and managers make it happen.

Areas of Improvement

Leaders: Leaders need to improve on their emotional intelligence, so as to understand the emotional dynamics of their teams. This would create a deeper and more effective relationship and communication even in challenging times.

Managers: To delegate more effectively, managers can improve their delegation skills so that they do not undermine team members power. Managers can delegate more responsibilities to their teams, so that they get more time working on employee development and engagement.

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