Organizational Leadership: A Report on SABIC's Policies and Approaches

This report provides an in-depth analysis of the leadership approach and policies of SABIC, a diversified manufacturing company based in Saudi Arabia. It examines the company's 'SABIC Leadership Way,' launched in 2017, which focuses on cultivating leadership within the workforce through programs centered on talent championing, collaboration, innovation, and excellence. The report finds similarities between SABIC's leadership approach and transformational leadership, highlighting the company's support for employee innovation, communication, and teamwork. It concludes that SABIC's leadership policies are effective, fostering a positive environment for achieving business objectives and aligning with the company's core values and strategic vision. The report also references key academic sources to support its findings, providing a comprehensive overview of SABIC's leadership strategies and their impact.

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Executive summary
SABIC Company, which is a diversified manufacturing company of Saudi Arabia. This
organization does its business in the chemicals industry. This report aims to analyze the
leadership approach and policy of this company. This report finds that the management team of
this company has launched ‘SABIC Leadership Way’ in 2017 to cultivate the culture of the
leadership in the workforce of this company. Talent champion, collaboration partner, innovation
pioneer and excellence driver are the key factors of this program. The leadership approach of this
company has similarity with transformational leadership. The finding of this report is that the
leadership approach and policy of this company are in good condition. Employees of this
company are supported by this company to flourish their innovative ideas, communication skill
and the culture of teamwork.

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Table of Contents
Introduction:....................................................................................................................................3
Company background:.....................................................................................................................3
Identification of organizational policy:...........................................................................................4
Talent champion:.........................................................................................................................4
Collaboration partner:..................................................................................................................4
Innovation pioneer:......................................................................................................................4
Excellence driver:........................................................................................................................5
Analysis of the policy:.....................................................................................................................5
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

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Introduction:
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.
Company background:
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

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(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).
Identification of organizational policy:
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.
Talent champion:
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.
Collaboration partner:
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.
Innovation pioneer:
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

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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).
Excellence driver:
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.
Analysis of the policy:
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

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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.

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References:
Aga, D. A., Noorderhaven, N., & Vallejo, B. (2016). Transformational leadership and project
success: The mediating role of team-building. International Journal of Project
Management, 34(5), 806-818.
Ghasabeh, M. S., Soosay, C., & Reaiche, C. (2015). The emerging role of transformational
leadership. The Journal of Developing Areas, 49(6), 459-467.
Mittal, S., & Dhar, R. L. (2015). Transformational leadership and employee
creativity. Management Decision.
Puri-Mirza, A. (2019). Saudi Basic revenue 2009-2018 | Statista. Retrieved 2 April 2020, from
https://www.statista.com/statistics/306084/revenue-of-saudi-basic-industrie/
Sabic.com. (2019). SABIC - Our Workforce. Retrieved 2 April 2020, from
https://www.sabic.com/en/report-sustainability/human-capital-development/our-workforce
Sabic.com. (2020). SABIC - About. Retrieved 2 April 2020, from
https://www.sabic.com/en/about
Sabic.com. (2020). SABIC - SABIC Vision. Retrieved 2 April 2020, from
https://www.sabic.com/en/about/our-vision
Statista. (2019). Saudi Basic Industries number of employees 2010-2018 | Statista. Retrieved 2
April 2020, from https://www.statista.com/statistics/306416/number-of-employees-at-saudi-
basic-industrie/