Institutional Problems of Leadership Development in the Developing Economies: A Case of Azerbaijan

The current stage of economic development is characterized by the continuous growth of the role of human resources and their leadership qualities in the production process. The ever-increasing level of the vocational, general, educational, and cultural level of employees increases their motivation (interest) in the results of production, in its economic and social development. Until the 1960s, the employee was considered as an “economic person” (Adam Smith) and then after that at the same time as a “social person” (Frederick Herzberg), that is, who loves his work, is ready to do it on his own, demonstrating high consciousness and devotion, interested in the results of the activities of his enterprise, and aware of the social responsibility of this activity. These are the qualities that define the essence of leadership. They are especially pronounced in critical periods of the development of society. During the years of the pandemic, when the production activity of people was limited, the potential of these qualities has increased significantly. In the aftermath of the COVID-19 pandemic, to accelerate economic growth, this energy must be allowed to fully manifest. The experience of foreign countries and our study shows that all employees have leadership qualities; they are organically inherent in every person. For their manifestation, it is necessary to use appropriate methods. In our opinion, procedural factors are the most suitable for these purposes. In countries with developing market economies, the main emphasis in stimulating the personnel of enterprises is placed on the use of content factors. These factors are based on rigid, administrative methods of management that limit the possibility of realizing the potential abilities of the staff. While procedural factors imply an impact on the cognitive prerequisites of employees, the behavior of employees acts as the implementation of actions aimed at achieving their expectations. The main reason for this approach to stimulating leadership qualities in developing countries is the lack of relevant regulations in them. In our opinion, in order to create objective conditions for stimulating the leadership qualities of personnel, it is necessary to adopt relevant regulations. Based on our results, it becomes clear that the leadership motivation can provide a significant impetus to the effective business development in the emerging economies.