Organizational Leadership and Management Practices at MOL Group Report

This report provides a detailed analysis of the leadership and management practices within the MOL Group, a Hungarian oil and natural gas company. It examines the company's unique leadership system, which emphasizes challenging employees to foster knowledge acquisition and skill development. The analysis covers various leadership theories, including behavioral, situational, environmental, and transformational approaches, and how they are applied within MOL Group. The report also discusses specific leadership programs like LEAD and INTENSITY, as well as the importance of respect, justice, and community building within the organization. Furthermore, it highlights the significance of motivation, environmental factors, and the role of leaders as role models in shaping the organizational culture and employee development. The report concludes with recommendations for enhancing leadership effectiveness and fostering a positive work environment.

LEADING AND MANAGING PEOPLE
Leading and Managing People
MOL GROUP - HUNGARY
Table of Contents
Introduction......................................................................................................................................4
Analysis...........................................................................................................................................4
Behavioral theory.............................................................................................................................7
The situational theory..................................................................................................................7
Environmental theory..................................................................................................................8
Transformational theory..............................................................................................................9
Respectful towards others................................................................................................................9
Justice..........................................................................................................................................9
Community building-.................................................................................................................10
Motivation..................................................................................................................................10

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Conclusion.....................................................................................................................................11
Recommendations..........................................................................................................................11
References......................................................................................................................................13
Introduction
Organizational leadership is dual leadership system that helps in the systematic
management of both individuals and that of groups. For being an ideal organizational leader, one
must comprise of some essential traits. An organizational leader must be having a proper well-
developed worldview. He must be able to know the different forces working in and around him
so that he can lead all his followers in the future. He also needs to have a sound knowledge and a
worldview of his organization (Nahavand 2016). This is because he will have to lead an entire
group of people within the environment of the organization that is often critical and conflicting.
An organizational leader must be having proper talent, knowledge, and skill that combine to
make up his overall strength. He must work on himself because trying to train his followers. This
paper will mainly deal with the kind of leadership practices prevalent in MOL group which is an
oil and natural gas company located in Hungary. MOL group has a unique leadership and
management practice system. The leaders believe in giving tough challenges to their followers

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and it is through the completion of these tough and challenging tasks that the employees acquire
new knowledge.
Analysis
The two terms that of leadership and management differs from one another in several
ways. It must be taken into account that not every manager can be a good leader. For being a
sound and an ideal leader there is some particular characteristic feature that must be present
within the individuals. It must be noted that the managers are the ones who usually formulate and
lay down the different rules and regulations that are to be followed by the employees of the
company. However a leader is one who will take up the responsibility of setting the vision of the
organization, It is the leader who is responsible for communicating all the goals of the
organization to the employees and it is also the leader who will be inspiring the employees to
work together in order to achieve those goals. A management system will always focus on the
planning, directing the employees, staffing and any other such organizational activities.
However, a leader is one who will be focusing on the different ways of directing those rules
among the employees. A leader is one who will be listening to his followers and will make them
feel wanted within the organization. For the proper running and functioning of MOL group, it is
also very essential to see that the employees are happy. This is a global era and there are lots of
changes taking place both in the internal and external atmosphere of the company. It is for this
reason that the leaders in MOL group are trying to develop the next generation of leaders in a
proper way. It is for this reason that MOL group tries to lead and develop their followers for the
challenging tasks of the upcoming future days. The leadership and management practices that are

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mainly followed in MOL Group are to prepare their followers for tough and challenging tasks of
the future days. The leaders make sure that their followers are able to fight the tough
competition. MOL Group has set up two distinct kinds of leadership styles working within their
company,one is the LEAD and the other is INTENSITY (User 2018).
The LEAD mainly comprises of three different talent pools

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Emerging Global Leader’s Programme
It is under this programme that the leaders in MOL group try to train their followers for
the meeting g the tough challenges and situations. They look for the talented individuals who can
be made ready for taking part in the leadership assignments.
Growing Global Leader’s Programme
It is under this session that the leaders of the MOL group guide their followers to
properly accelerate and channelize their careers. The leaders always try to act as a role model for
their followers and carry on the process of knowledge sharing (User 2018). In other words, the
leaders try to share their knowledge with their followers. The leaders also practice sharing
critical knowledge with their followers. The leaders share their own experiences so that the
followers can learn from them and enrich their own knowledge. This, in turn, helps the
employees of MOL group to achieve senior roles in the company in the near future and they can
also fight the tough market conditions.
Advanced Global leaders programme
It is under this programme that gathers all the well experience leaders and tries to nurture
their skills and take them to the next level by teaching them the skills that will enable them to
strengthen the organizational performance.The other kind of leadership practice prevalent within
MOL group is INTENSITY. This is a leadership practice that helps in molding the leadership
skills so that they can constantly face the challenges and deal with them smartly. This
programme also makes sure that there is a kind of unity that is maintained throughout the
organization. This programme makes sure that the leaders are speaking the same language and
promotes respect towards people of all different cultures and groups (Avolio and Yammarino

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2013). The leaders in MOL group have also made sure that that they develop a strong
partnership with other organizations like global leadership development organization
Management Centre Europe. This partnership helps in training the employees properly for
meeting with the future risks (User 2018).
Behavioral theory
Three different aspects have been identified under his particular leadership theory. The
three important functions that must be performed by a leader are authoritarian, under which a
leader must know how to exercise his power over the employees (Cawseyet al. 2016). The
second one is the democratic leadership where the leader presides over only collective decisions
processes(Nahavand 2016). The third is laissez-faire function under which the leader must give
total freedom to his employees and avoid taking part in the decision-making process of the
organization. However, a little bit of all these three leadership styles are needed within an
organization. However, the leaders must keep in mind as to when to exhibit which style of
leadership. It can so happen that they are emphasizing more on the authoritarian style as they
enjoy bossing and ruling over their employees.
The situational theory
This is the theory that is the belief that a leader must act as per the need of the situation.
This theory also goes by this belief that there is no particular or no best way of leading. The
decisions of a leader often change as per the demands of the situation (Birasnav 2014). In every
business organization, there are ups and downs. There will be many critical situations arising
within a business set up that will require the leader to use the authoritarian style where he will

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have to rule or control his employees. There can be many tough situations where it will not be
possible for the followers to work without the guidance or the suggestion of their leader. The
followers always look up to their leader for getting the important piece of advice during the crisis
situation. However, this authoritarian leadership will become invaluable if it is used on a day to
day basis. The employees will surely not like to get dominated or ruled over at every single time.
The Democratic leadership is also to be used by the leader as per the right situation. Particularly
when the organization needs a new business plan or a consensus to be built, the democratic
leadership is useful. Similarly, the laissez-faire leadership is a particular kind of style that is to be
used by a leader when the employees are experienced people and they need the freedom to work
according to their will. However, it has to be kept in mind by a leader that he will have to change
his roles as per the situation. If he is too much bossy over his employee, then the employees
might become angry and indiscipline(Junker and van Dick 2014). This is natural that no one
likes to be ruled upon every time. The employees often require freedom to work as per their will.
In order to give his flexibility to the employees, the leader must use the laissez-faire leadership
style in such scenario.
Environmental theory
MOL Group makes sure that there is a proper environment for their employees to work
and learn at the same time. It is essential for the employees to have a suitable work environment
in their organization so that they can work peacefully. It is not possible for the workers to work
properly if there are lots of disturbances going on around them. For the proper progress of an
organization the leader in MOL Group makes sure that there is the optimum utilization of the
potential of their employees(Birasnav 2014). In order to assure this, the leaders in the MOL
Group have to make sure that the employees are happy and comfortable in the workplace. There

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are often several issues that create an unsuitable work environment (Cawseyet al. 2016). The
issues like ego, jealousy, bullying and several other such aspects. Hence, it becomes the prime
duty of a leader to see that these negative factors are somehow removed from the environment.
The leader must take all the necessary steps in order to create the exact kind of organizational
culture that will be suitable for the employees.
Transformational theory
In MOL group a leader makes sure that they are acting as the role models and their
followers can easily follow their footsteps in the near future. This change has to be brought
within the work environment, within the employees, and as a whole within the entire system
existing within the organization (Mihalache et al. 2014). It is the leader who has to make sure
that they are accessible to their followers whenever the followers need them. It is the leader who
has to listen to the grievances of all the employees and also cater to their needs. It is the duty of a
leader to motivate the followers at every step and help them utilize their potential to the fullest
extent.
Respectful towards others
A leader must be respectful towards others. A leader must not make unethical usage of
his power and position. It is a leader who has to make the employees feel wanted within the
organization. He will have to effectively listen to the employees and has to be very liberal
towards them. He has to have an amicable behavior so that the employees can easily reach out to
him.

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Justice
Leaders in MOL group make sure that there is proper law and order being maintained
throughout the company. A leader has to have a clear-cut idea regarding the employees and it is
for this reason that he needs to build up effective communication. Often some employees enjoy
bullying other subordinate employees. This makes the new joiners feel very insecure and they
also feel insulted (Hoch and Kozlowski 2014). Apart from this, there can also be several ego
clashes within the environment. It is very natural that different employees will have different
kinds of opinion. Many employees may also try to cross each other because of their ego.
Managers may often have some personal grudges or even favoritism over some particular
employee. However, a leader will make sure that there are no prejudices or bias existing within
the organization. He must make sure that none of the employees are being treated differently. It
is his duty to promote justice and equality within the organization (Mihalache et al 2014).
Community building-
In MOL Group the leaders make sure that he has a clear idea about all the different kinds
of leadership styles and must use them for the general good of the organization. A leader is one
who will always be concerned about the interests of his followers rather than his own personal
interest. He must never overlook the interests of the followers.
Motivation
One of the major qualities of a leader in MOL Group is to motivate the followers. A
leader must always work towards building the transparency between himself and his followers.

10ORGANIZATIONAL LEADERSHIP
In MOL Group a leader makes sure that he is encouraging his followers at every step (Hoch and
Kozlowski 2014). The leaders in this company make sure that they are letting their followers
learn from on their own that is through self-awareness and self-reflection process.
Conclusion
Thereby, it can be concluded that it is the prime duty of a leader to make sure that none of
the employees feel unwanted within the organization. It is the duty of a leader to create a culture
that will help in making the employees open up and give up all their hesitations. A leader must
individually interact with all his employees. He must make sure that the employees do not stay
under excessive pressure. It is a leader who must give not only professional but also the
emotional support of his followers. A leader must maintain all the business ethics within an
organization. He must make sure that none of his actions ever violates any of the company ethics
because his followers are going to follow his footsteps in future. Hence, a leader will always
have to develop him and lead him before leading his followers.
Recommendations
 A leader must instill the team spirit within his followers. He must practice what he wishes
to preach. He must not be bossy over his employees. He must know how to keep calm his
calm and deal with his followers patiently. He must not take the undue advantage o his
position and power. A leader must train his followers to develop the feelings of mutual
respect towards each other.
 A leader must always motivate all his followers at every single step. A leader must follow
the transformational leadership style. As per this leadership style, a leader must work
towards bringing about a change within his followers. A leader must conduct individual

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feedback session with the followers. This will help in enhancing the leader-follower
relationship.
 A leader must lead him first and then start leading others. He must be very much
committed to both his professional and personal field. He must have a strong sense of
responsibility. A leader must always remember that he is going to be a role model for all
his followers. The followers will follow the footsteps of their leader and will seek his
help at all steps.
 A leader must imbibe positive vibes within the business organization. A leader must
arrange for a proper training session for the fresher so that they can enrich their skill and
can use them properly in their work field. This will no longer make those employees feel
insecure. A leader must make sure that there are no jealous feelings existing within the
organization.
 A leader must develop proper communication system within the organization. A leader
has to make sure that there are no obstructions in the communication system. No
employees must ever hesitate to communicate with one another. A leader must encourage
the employees to talk among one another. Being a leader, he must encourage the process
of knowledge sharing so that these followers can work together as a team and move
forward with the help of their joint efforts.

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and charismatic leadership. In Transformational and Charismatic Leadership: The Road Ahead
10th Anniversary Edition (pp. xxvii-xxxiii). Emerald Group Publishing Limited.
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industry: The role of transformational leadership beyond the effects of transactional
leadership. Journal of Business Research, 67(8), pp.1622-1629.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Cawsey, T., Deszca, G., Ingols, C., Finkelstein, S., Hambrick, C.D., Cannella Jr, A.A., Pitt, M.,
Koufopoulos, D.N. and Huber, G.P., 2016. Organizational change. Assessment, 45, p.49.
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in
knowledge management practices and innovation. Journal of Business Research, 68(2), pp.360-
370.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hoch, J.E. and Kozlowski, S.W., 2014. Leading virtual teams: Hierarchical leadership, structural
supports, and shared team leadership. Journal of applied psychology, 99(3), p.390.