Management and

Operations
Assignment 1

Q.N.N.N 6/7/19 448 – GBD0824

 ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business

Unit number
Unit 4: Management and Operations (488)
and title
Submission
June 7th, 2019 Date received (1st submission) June 7th, 2019
date
Re-submission
Date received (2nd submission)
date
Student names & codes Final scores Signatures
1.Bui Hien Nhu GBD18622

Group 2.Huynh Thi Nhu Quy GBD18397

number:
3.Dinh Phuong Ngoc GBD18424
4.Pham Bich Nguyet GBD18415

5.

Class GBD0824 Assessor name Le Xuan Nguyen

Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences
of plagiarism. I understand that making a false declaration is a form of malpractice.

P1 P2 M1 M2 M3 D1
 OBSERVATION RECORD
Student 1 Bui Hien Nhu GBD18622

Description of activity undertaken

Management and leadership differences: dientify and discuss differences of management and
leadership in terms of style and characteristics and some specific real-life examples for each
management/leadership style.
Analyze the close link between leadership and management

Make recommendations on which management approach and leadership theory should be applied at
FPT Software Company to improve the performance

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Student 2 Dinh Phuong Ngoc GBD18424

Description of activity undertaken

Management and leadership concepts: define the basic concepts: management & different of
management; leadership, followership and how leader’s use of power and authority to “influence”
people.
Identify and explain the main managerial functions and leadership theories.

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Student 3 Huynh Thi Nhu Quy GBD18397

Description of activity undertaken

Critically explain why a successful business requires both effective management and leadership
through a real-life case study.

Assess the chosen business person’s performance of managerial functions and leadership roles in
terms of their success and shortcomings.

Critically evaluate which management approach and which leadership theory would be the most
appropriate in contemporary business world

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Student 4
Pham Bich Nguyet GBD18415
Description of activity undertaken

Sum up all main management approaches and leadership theories in terms of their key authors,
main contents and appraisal (advantages and disadvantages).

Provide 2 real-life examples of management approaches and 2 real-life examples of leadership

theories in practice.

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Table of Contents
1. Introduction .................................................................................................................................... 9
2. Management and leadership concepts: ........................................................................................... 9
1.1 Difference of management ...................................................................................................... 9
2.1.1 Top-level managers ........................................................................................................... 9
2.1.2 Middle-level managers ...................................................................................................... 9
2.1.3 First-level managers .......................................................................................................... 9
1.2 Leadership ................................................................................................................................ 9
1.3 Folowership ........................................................................................................................... 10
1.4 The leader’s use of power and authority to “influence” people ............................................ 10
1.4.1 Leading by example ........................................................................................................ 10
1.4.2 Leading by values ........................................................................................................... 10
1.4.3 Assertiveness refers to being forthright in your demands .............................................. 10
1.4.4 Rationality ....................................................................................................................... 10
1.4.5 Ingratiation ...................................................................................................................... 10
1.4.6 Exchange ......................................................................................................................... 10
1.4.7 Coalition formation ......................................................................................................... 10
1.4.8 Joking and kidding .......................................................................................................... 10
2. Management and leadership differences ...................................................................................... 11
2.1 In terms of style ..................................................................................................................... 11
2.1.1 Management Style........................................................................................................... 11
2.1.2 Leadership style .............................................................................................................. 12
2.2 In term of Characteristic ........................................................................................................ 14
3. Link between management and leadership................................................................................... 14
3.1 Analysis ................................................................................................................................. 14
3.2 Application............................................................................................................................. 15
4. Management functions and leadership roles ................................................................................ 16
4.1 Managerial functions ............................................................................................................. 16
4.1.1 Planning (= preparation = setting up) ............................................................................. 16
4.1.2 Organizing and Staffing: ................................................................................................. 16
4.1.3 Leading (=motivating) .................................................................................................... 17
4.1.4 Controlling: ..................................................................................................................... 17
4.2 Leadership theories ................................................................................................................ 18
4.3 A real-life famous business person ........................................................................................ 18
 4.4 An enhancemant .................................................................................................................... 19
5. Management approaches and leadership theories ........................................................................ 20
5.1 Management approaches ....................................................................................................... 20
Example ........................................................................................................................................ 22
5.2 Leadership theories ................................................................................................................ 22
Example ........................................................................................................................................ 24
5.3 Contemporary business world ............................................................................................... 25
5.4 Recommendation for FPT...................................................................................................... 26
6. Conclusion .................................................................................................................................... 27
 1. Introduction
Nowadays, business markets are developing more and more dramatically. In that competitive
market, organizations need to have a leader who can inspire and influence people. However, only the
leader is not enough to maintain the company. Which means that requires talented managers. Both of
managers and leaders are necessary for the development of organizations to achieve business goals.
This report will indicate some concepts, styles and characteristics of leadership and management and
the method of operating the business effectively.

2. Management and leadership concepts:

Management is the process of organizing production activities and allocating personnel to fulfill
the organization's goals. The management is an unmistakable procedure comprising of arranging,
sorting out, inciting and controlling; using in each both science and workmanship, and followed so
as to achieve pre-decided targets (Terry, 1972)

2.1 Difference of management

To operate an organization, the management divides into four levels with different missions: top-
level manager, middle-level managers, first-level managers and individual contributors. However,
the three highest levels of the system, which is compared to the spine help incorporation stand
firmly, greatly influence on organizational management.

2.1.1 Top-level managers

Senior managers hardly supervise the entire production process but they give business
orientation, approve projects and take full responsibility for the final outcome of the organization.
Therefore, they hold the decisive positions in the organization such as CEO, COO, CFO and so on.

2.1.2 Middle-level managers

Middle-level managers who are director, department chairperson or team leader are significant
connection between senior managers and low managers, between strategic planning and project
implementation. They have to devise specific policies to realize the plan and assign appropriate tasks
to each department.

2.1.3 First-level managers

The one who is key person of this level is not only closest to the production process but also
ensure certain goals of their department. Their position be usually supervisor, department manager
and team leader.

2.2 Leadership
Leadership is the ability to motivate subordinates and lead organizations to achieve the best
goals. Leadership is the capacity to decidedly impact on individuals and organizations to have an
important effect and accomplish results (Yukl, 1998). Leadership is about vision and duty, not
control (Seth Berkley, 2012). Although they have unique view of it, leadership in general is the
ability to smartly navigate and guidance the organization effectively.
 2.3 Folowership
The followership refers to subordinates who follow the instructions of their superiors but they
have an important role to complete the detailed steps. Ronald E. Riggio thinks that followers are
rational and straightforward to help leaders when their leaders are right and willing to comment
when they are wrong (2007)

2.4 The leader’s use of power and authority to “influence” people

2.4.1 Leading by example
Leaders often become the ideal models that they expect for their staff in order to influence them
to have good behavior indirectly.

2.4.2 Leading by values

High-level executives offer the value employees will achieve to stimulate them work effectively.

2.4.3 Assertiveness refers to being forthright in your demands

The person giving the instructions must understand what they want and ask the follower in a
straightforward way.
2.4.4 Rationality
Work with conflicting ideas or awkward situations that needs to be rationally addressed by the
leader. Therefore, they not only need a high IQ but also have an elevated EQ which is in the
emotions of people who are not much influenced by the external environment.

2.4.5 Ingratiation
This influential strategy means making others feel satisfied when they are recognized and
encouraged by good comments.

2.4.6 Exchange
This method requires the requester to recognize the needs of the follower and make suggestions
in exchange for that demand skillfully.

2.4.7 Coalition formation

The visionary leader will form alliances to own authority and position

2.4.8 Joking and kidding

Instead of heavy criticism, managers can use joking and kidding methods to influence more
effectively on the job.
 3. Management and leadership differences
3.1 In terms of style
3.1.1 Management Style
Style Content
Management as an Art indicates the application of
art knowledge and skill to achieve
the desired goals. Art might be
meant as the personalized
application of general
theoretical principles for
accomplishing the most ideal
outcomes.
Management as a Science is a systematic body of
science knowledge relating to a
particular field of study that
includes general facts. It sets up
circumstances and logical
results connection between at
least two factors underlines the
principles governing their
relationship. These principles
are created by verification
through testing and the
scientific method of
observation.
Example
Tran Nhan Tong was the third emperor in
the Tran dynasty. In the cause of building
and maintaining the country, he used his
knowledge and vision to defeat the
enemies that invaded the country and
expand the land. Although he was not
directly on the battlefield, his experience
through previous dynasties lessons helped
him lead battles successfully.
Steve Jobs, the head of the Apple Group is
an example of management as an art. By
observing and analyzing the market, he
realized that Ipod was just a line of music
players and could not serve human
communication needs. He researched the
creation of Iphone in 2007. Because
Iphone has most features of Ipod and has
its own browser, it is very popular and
gained brand success until today.
 3.1.2 Leadership style
Leadership style Content
Transformational leadership The transformational leader
makes subordinates aware of
the importance of their work to
the organization and perform
those tasks in the best possible
way to achieve goals.
Transformational leaders
motivate and encourage the
subordinates to work for the
benefit of the entire
organization, not just for their
personal gain. Transformational
leadership assumes a particular
position in the renewal of
existing business associations.
(DuBrin, 2012)
Transactional leadership The transactional leadership
focuses on the role of
supervisor, organization and
group activities. This leadership
style is relied on four basic
assumptions. Firstly, the
employees are promoted
through both rewards and
punishments. (Odumeru &
Ifeanyi, 2013). Secondly, the
leaders give the most specific
demands to get the highest
efficiency in job. Thirdly, the
leaders take a full power to
control what their followers
working. Finally, the employees
receive desired awards after
completing the tasks with good
outcomes.
Autocratic leadership Autocratic leaders keep most of
the authority for themselves.
They make decisions in the
belief that all members will
observe completely. An
autocratic leader often is not
keen on member's attitude
toward that decision.
Example
Barack Obama is an extremely
famous and humane leader.
People all the world respect him
because of his sense of human
and compassion. He motivates
his employees to be open-
minded and keep calm in all
situations. His compassion and
sense of understanding toward
his staffs promote his authority
and thus his administration has
increased the efficiency into a
great extent.
Park Hang Seo who is the coach
of the Vietnamese national
football team is a typical
example of transactional
leadership. He encourages the
footballers by promoting the
reward of winning the match.
He instills such a high level of
commitment that all the
footballers are willing to risk
pain and injury to achieve the
goals which he sets.
A typical example is Massimo
F. D'Amore, the CEO of
PepsiCo Americas Beverages.
He set himself in the center of
brand management, employing
and terminating advertisement
firms and creating alter ads. His
hands-on style made some
 In real life, this leadership style
is suitable for emergency
situations when all decisions
have to been made quickly and
decisively. It is not encouraged
to apply regularly because of
the employee’s unrespect
feeling.
Democratic leadership Democratic leadership operates
follow the model that leaders
share decision making with
subordinates. This leadership
style means facilitating the
meeting, inspiring people to
share their thoughts, and then
combining all the available
information into the most ideal
decision. The democratic leader
should have impartation ability
to bring unity of the plan is
chosen in the group.
The Laissez-Faire leadership The Laissez-Faire leadership is
a style that the leaders give full
power for employees to
implement jobs. When leaders
defined the goals, policies,
strategies and events, then
leaves the remaining process to
be completed by the employees
doing on their own way.
Management style is defined by all the power assembled in a manager (Cardlnal, 2015). Meanwhile
leadership style is one of essential fields of the leadership function. Both of them are the
representative pattern of behaviours that a leader uses to impact the subordinates to achieve
organizational goals. Most of these relate to how much influence and control the leader and
managers toward the group (DuBrin, 2012).
people left. D'Amore realized
that he hurt others people, yet
disclosed that changes should
have been actualized quickly.
(Helm, 2009)
Dorothy Roberts, executive
director of Echo Scarves. She
formed an environment where
representatives of various
departments can contribute their
suggestments in most business
work . She also created an open
supportive and honest corporate
culture. (Anon., n.d.)
US President Theodore
Roosevelt had a classic project
about building Panama Canal in
1904. Although there was a
bunch of geographic challenges
and accidents, its
accomplishment in 1914
supposed as an engineering
miracle. President Roosevelt
used the Laissez faire
leadership style to delegate
authority to the professionals to
make Panama Canal become a
marvel. (Anon., n.d.)
 3.2 In term of Characteristic
Management characteristic Leadership characteristic
• Effective decision making • Trustworthiness
• Comprehensibility & sharing • Intelligence
• Making strategy ability • Good vision
• Good at guiding skill • Open-minded
• Orientation ability • Ability to motivate
• Divide job suitability • Knowledge
• Etiquette • Enthusiastic
• Discipline • Positive attitude
• Competence • Communication skill
• Confidence • Self-confidence

Management has a bunch of characteristics which are gained through time and working
experiences. Most of that traits concentrate on missions, strategies and how to achieve business
goals. Managers are supposed by becoming the ideal pioneers who do the right things. Otherwise,
leaders are the people who do the thing right. (K.Drucker, n.d.). The employees are attracted by
leaders about their emotional intelligence and personal skills. (Anastasia, 2018) Their work focuses
on individuals and on the most proficient method to urge them to operate the work as much effective
as possible. (Anastasia, 2018).

4. Link between management and leadership

4.1 Analysis
"Leadership" and "management", these are the two terms that many people may be mistaken as
being identical. However, they are heterogeneous and explained depending on the field of study.
Both terms imply impact and control but differ in the level and method of execution. Leadership is a
long-term process of guiding the chain of activities of the management entity, while management is
the process of organizing the subject and impacting on the managed object to implement the long-
term orientation. Leadership is management but goals are farther and broader. The manager is the
leader in the case of more specific, more precise objectives.

Besides that, the management is more formal and logical than leadership which depends on all
popular skills. For examples arranging, planning, and controlling. Managing concerns about constant
improvement of business as usual, meanwhile leadership is a power for change that constrains a
gathering to improve and leave from the schedule.

Not only is leadership described by having a vision of what the company could develop, but
leadership also requires evoking collaboration and team spirit from a big group of people. The
leaders keep the main individuals in that system spurred, utilizing each way of influence.

Nowadays, operating a successful organization requires the managers know how to lead as well
as manage it (Kotter, 1990). Although the management is different from leadership, they are closely
related to achieving efficiency for the business. Leadership is an essential aspect of managing.
Leading efficiently is one of keys to become an accomplished manager. The implementation of other
key tasks has an important meaning to ensure that a manager can become an effective leader.
Managers must practice all factors to combine workforce and material resources to achieve goals.
Sometimes managers need to be leaders and vice versa. To ensure that the management process is
highly operative, the leadership and management must be consistent with each other, have a close
relationship with each other, integrate into each other. The contemporary business requires effective
management and leadership which means to be an to be an effective leader, one must also be an
effective manager (Gary Yukl, 2005). Both divisions play a necessary role in the business and
cannot be separated.

4.2 Application
Leadership is an essential part to become an effective manager. One of The prominent face for
being an effective manager and leader is Jochen Zeitz. He is not an average CEO, he became the
CEO of Puma when he was only 30 after began his professional career with Colgate-Palmolive.
After 18 years with Puma, he turned an undesirable brand at that time into today’s multibillion-dollar
sportswear company (Bhasin, 2019).

When he entered Puma in 1990, the company was on the verge of bankruptcy with $250 million
in debt, so until Jochen took over the company by became the CEO, he made some dramatic changes
and made many plans by his clear vision to carried the company out of the financial crisis. The first
step he took under the name of a top-level manager is that he changed the image of the company into
more creative and artistry by collaborated with many artists and athletes around the worlds
especially those people who have impacts on culture such as Usain Bolt with Jamaica (Handley,
2016), Puma even hired famous fashion designers to team up then launched collections inspired by
them. His vision for the company is to be innovative through technology and to be a trendsetter in
the fashion world. Until now, there are many celebrities have collaborated with the German
sportswear, included Selena Gomez and The Weeknd (Hudson, 2017). Thus, this fashion mix sport
with lifestyle formula formed a positive react of consumers because of this, the brand became more
and more exciting and stood out from other sports brand. (Tesema, 2019)

Secondly, He also encouraged his employees to be as creative as they wanted to be within the
company strategy. Jochen Zeitz emphasized in many interviews that he mainly focused on nurturing
creativity, creating creative freedom in the workplace. By this, he also shows that he is an energizing
and inspiring manager who follow behavioral approach and transformational leadership.

Thirdly, being famously focused on marketing, Jochen Zeitz never missed any press conference
of Puma. Also, his English skill is a plus since the powerful manager directly introduced company in
perfected polished English, and Jochen was always willing to answer questions from the press and
investors. The press and investors are really satisfied and impressed with his good intellectual ability
and knowledge. This personal characteristic made him an effective leader.

Due to his dedication, remarkable leading and management skill. Puma is Debt-free since 1994
and making millions of dollars since then, more importantly, the company is now having the
reputation for bold design and setting new fashion trends. Jochen Zeitz shows that the combination
of effective managerial and leadership could lead any hopeless company back to the right track.
 Puma annual report in 2004

But even when Jochen Zeitz dragged a dying company out of its grave, he still didn’t brag
about it. He kept himself humble as he just called everything he did for Puma as follow instincts and
implement things as quick as possible. (Benjamin, 2006)

On the whole, Jochen Zeitz really rebooted and restructured the whole company. From a losing
sportswear company into a desirable brand with an advanced vision, the creativity of a skilled
manager and the mindset of a transformational leader, mainly encourage positivity thoughts and
value-driven.

5. Management functions and leadership roles

5.1 Managerial functions
5.1.1 Planning (= preparation = setting up)
Planning suggests that setting associate degree organization’s goal and deciding however best to
attain them. Coming up with is deciding, concerning the goals and setting the long run course of
action from a collection of alternatives to succeed in them.

The arrange helps to take care of the social control effectiveness because it works as a guide for
the personnel for the longer term activities. Choosing goals similarly because the methods to realize
them is what coming up with involves.

Planning involves choosing missions and objectives and also the actions to realize them, it needs
decision-making or selecting future courses of action from among alternatives.

Coming up with suggests that determinant what the organization’s position and also the state of
affairs ought to be at your time within the future and judge however best to achieve that situation.

Planning helps maintain social control effectiveness by guiding future activities.

To be a manager, coming up with and decision-making need a capability to foresee, to visualise,

and to appear ahead purposefully.

5.1.2 Organizing and Staffing:

5.1.2.1 Organizing
 Once a manager sets goals and plans, his next managerial function is to organize human and other
resources that the plan identifies as necessary to achieve the goal. Organizing involves determining
how to assemble and coordinate activities and resources. The organization can also be defined as a
deliberately formalized position structure or roles for people to fill in.

The purpose of a company structure is to make associate degree atmosphere for best human
performance. The structure has to define the task to be performed. The rules thus laid down must
also be designed in the light of the available people's abilities and motivations.

5.1.2.2 Staffing

Staffing is expounded to organizing and it involves filling and keeping crammed, the positions
within the organization structure.

This can be done by deciding the positions to be crammed, characteristic the need of workforce,
filling the vacancies and coaching staff in order that the appointed tasks are accomplished effectively
and with efficiency.

The social control functions of promotion, demotion, discharge, dismissal, transfer, etc. are
enclosed with the broad task “staffing.” staffing ensures the location of the correct person at the right
position.

Basically organizing is deciding wherever selections are going to be created, who can do what
jobs and tasks, who can work for whom, and the way resources can assemble.

5.1.3 Leading (=motivating)

The third basic social control operate is leading. the abilities of influencing folks for a specific
purpose or reason is termed leading. Leading is taken into account to be the foremost vital and
difficult of all social control activities.

Leading is influencing or prompting the member of the organization to figure along with the
interest of the organization. It is called leadership to create a positive attitude towards the work and
goals among the organization's members. It is necessary as it helps to serve the goal of efficiency
and effectiveness by changing employee behavior.

Since leadership implies fellowship and other people tend to follow those that supply a method
of satisfying their own wants, hopes and aspirations it's comprehendible that leading involves
motivation leadership designs and approaches and communication.

5.1.4 Controlling:
Monitoring the structure progress toward goal fulfillment is named controlling. observation the
progress is crucial to confirm the accomplishment of structure goal.

Controlling is mensuration, comparing, finding deviation and correcting the structure activities
that are performed for achieving the goals. Controlling carries with it activities, like; mensuration the
performance, comparison with the prevailing customary and finding the deviations, and correcting
the deviations.

Controlling is that the last however not the smallest amount necessary management operate
method. It is justly same, “planning while not dominant is useless”. In short, we are able to say the
controlling allows the accomplishment of the arrange.

5.2 Leadership theories

The main purpose of leadership is guiding people to do their works effectively to achieve the
company’s goals. There are many roles in leadership such as be a role model, inspire trust and have
good negotiable skill but providing vision and planning for the company’s future is the most
essential role that every leaders must practice.

Providing vision to the employees leads companies go faster in the right direction. Many people
working for the same cause. Employees cannot be expected to immediately know what they must do
for the company, they must have a leader to guide them and give them passion to work.

Leaders must be a role model to other employees. Serving a positive behavior is very important
because employees will look up to leaders and ask leaders for permission to do their jobs so the
leaders must display integrity attitudes. Leaders should be respected by the team first then thinking
about leading them.

In an organization, there must be many ups and downs but it is a leaders’ job to keep their
employees motivated and inspired so they can participate in a common effort. A good leader doesn’t
stand from up high and point at others to work, but they work with employees and their works is to
inspire others and keep employees hopes and moods high so afterwards they can work effectively.

5.3 A real-life famous business person

In real life, there are many extraordinary leaders but Bill Gates really stands out from the rest.
Bill Gates was the CEO of Microsoft, He is the ultra-successful Harvard dropout billionaire that was
passionately in love with computer at a very young age. He decided to devoted his life to make
computers exist in every home, that was his vision that leads Microsoft and computer industry to the
success like it is today. Gates’ foresight and his incredible brain turned Microsoft from a small
company into a technology monument.

Bill Gates concentrated on what he believes in, a world where there are computers on every desk
and the computer must run Microsoft Software. Gates persistently pursued his dream at a very young
age "There was just something neat about the machine.” (Gates, 1996). The man is fueled with
passion and drive and those are Characteristics of an effective leader.

Bill Gates is well known for his intelligent, he scored 1590 out of 1600 on SAT enrolled at
Harvard College. To be a respected leader, Bill Gates showed himself that he is a master of
knowledge and he already got a long-term plan for Microsoft in years to come, so his co-workers
were very much relied on him and trusted him to make decisions. His impressive intellectual and
knowledge are mainly what made him an effective leader and successful manager.
 As an entrepreneur, Bill Gates was a workaholic and controlling toward his employees. He used
to believe that how hard he worked is how other employees should work too, he wanted his workers
to be as dedicated as he was for the company. Bill Gates once told BBC that he used to keep track on
his employees’ license plates to know when they arrive and when they leave for the day (CHAN,
2016). This controlling managerial function is one the main key leads to Bill Gates management
success.

However, a career must have its ups and downs. Bill Gates led Microsoft through a serious
antitrust litigation without any damage. In 1998, The USA Justice Department charged Microsoft
with engaging in anticompetitive and exclusionary practices designed to maintain its monopoly in
personal computer operating systems and to extend that monopoly to internet browsing software.
(Department, 1998) Even though the allegation is very serious, Bill Gates still managed to make
federal judge laugh in a deposition by his wittiness (Wasserman, 1998), due to his good way with
words, Microsoft proved innocent, brought victory to the giant software company and pleased
investors.

As there is a tight link between leadership and management, many of his leadership traits
associated with managerial functions. Firstly, Bill Gates could only have his certain plans because of
his love and passion for computer software. Secondly, he controlled and led his employees by
became an example of a hard-working worker and done things correctly so the employees can
follow. His leadership style is transactional leadership because he was very controlling and very
detail oriented.
5.4 An enhancemant
Bill Gates’s managerial functions and Outcomes
leadership roles
Planning Bill Gates’s foresight and vision on how
Bill Gates’s drive and passion on computer’s Microsoft should operate and its goals help the
future and Microsoft software on every computers company to stand still after many difficulties.

Organizing and staffing
When he is dealing with hiring issues and
management issues, he always had to ask other
people to come in and help out who have a deep
sensitivity as to how going to build up the team.
Gates said. "Even areas like sales and accounting
— the work that wasn't exciting to me as the
engineering pieces. If I'm not excited about
something, I'm probably not going to be as good
at it." (Garfield, 2018)
He did not take over the company, he made
sure that necessary workers and any man with
abilities can get involved to carry out a plan
and achieve organizational goals. Therefore,
the employees at Microsoft feel empowered
and motivated because they felt like they are
listened.

Controlling This also shows that he wanted total

Bill Gates tracked employees' hours by commitment and devotion from the
memorizing their license plate numbers (Bradt, employees.
2016)
Leading
He was a workaholic. He drove others to work as
hard as himself "I worked weekends, I didn't
really believe in vacations," Gates said. (Holley,
2016)
Made sure his employees work as hard as he is
so the company could become bigger. He
motivated and directed to achieve the
company’s goals.

6. Management approaches and leadership theories

6.1 Management approaches
Classical Classical management mostly focuses on the Advantages:
approach effective organization in the business including - Consistent execution of
specialization of labor, centralized leadership and work by all employees so
decision-making, and profit maximization rather that the management is
than employees who are considered as a part of easy for mataining and
its requiring only physical and economic needs adjusting when necessary
Scientific management is developed by - Demonstrated the
Frederick W. Taylor consisting four principles. importance of personal
However, his theories also have some selection and training to
criticisms that it benefits the company rather than improve work efficiency
employees even though it is considered benefit Disadvantages:
both sides. Moreover, it does not respect the - Lack of attention to people
value of human in the work environment, so that and social context leads
workers tend to have less motivation and away from reality
satisfaction. - Did not acknowledge the
Administrative management is developed variance among individuals
by Henri Fayol including the concept of - Tended to see workers as
‘universality of management principles’ with 14 unaware and overlooked
management principles. their thoughts for proposals
The notion of bureaucracy is studied by
Max Weber suggesting that an organization must
a well-defined hierarchy and a formal rules,
regulations, emphasising the division of labour

The The behavioral approach focuses on Advantages:

behavioral building a relationship between managers and - This approach is easy to
approach employees making a motivate and satisfactory understand and put into
environment work for them to increase practice to how to
productivity. encourage and motivate
The Hawthorne studies: (Elton Mayo) their workers to work
refer to the fact that people will react their better.
behavior positively because they are being - Building confidence and
observed. And effective communication with motivation in working
Disadvantages:
Theory X Theory Y - The approach tends to
workers is basic to administrative achievement. emphasize the importance
of work to workers without
really addressing financial
issues.
 - People do not - consider work as
like to work, less natural as rest and
desire play
- Seeking to - can exercise self-
escape, avoid control
responsibility - creative, skillful
- When working people
must be - people will become
supervised attached to the goal
closely of organization more
- People wanted to if rewarded in time
be controlled

Theory X & theory Y of Douglas

McGregor
Maslow’s Need Hierarchy (Abraham
Maslow): suppose that human are motivated by
different set of needs that range from
physiological needs, safety needs, belonging and
love needs, esteem needs, and self-actualization
needs to lead a healthy and useful life both
physically and mentally. Moreover, this theory
prompt managers to think about ways of
satisfying wide range of worker needs to keep
them motivated.

Quantitative Quantitative approaches (Frederick Taylor) Advantages:

approaches emphasize the scientific method such as - Data can be very
statistics, linear-programming, decision tree, consistent, precise and
network analysis, computer simulations while reliable
solving the management Disadvantages:
- The answers it produces are
often less precise than they
appear.
- Although quantitative
approaches use precise
methods, much of data is
based on human estimates
(which can be unreliable)

The systems The systems perspective Advantages:

perspective View the organization whole as a system or an - Focus on many aspects.
entity of interrelated parts, which interact with - Maintaining order and
the environment to transform input (Resources) environment in the
into output (Products and services) and supply workplace.
them to the outside world. Disadvantages:
Entropy: The tendency of a system to run down and - Delay in decision making.
die if it does not receive fresh inputs from its - The relationship is unclear.
environment.
Synergy: The whole organization working
 together will produce more than the parts working
independently.

The The contingency approach Advantages:

contingency It doesn't have a particular arrangement of - Achieve the highest results
approach principles for dealing with an association. in flexible situations.
Directors need to locate the "best fit" among the - Get feedback and change
requirements of the workers included flexibility with the
assignment, individuals and condition. environment.
The foundation of various structures fit to Disadvantages:
various conditions to effortlessly confront - Used as an excuse for not
various circumstances. acquiring formal
knowledge about
management

Example

Classical approach

E.g: Fletcher Construction is an example of a business using classical approach which separated into
specific parts Building, Engineering, Interiors, South Pacific, Brian Perry Civil, Piletech, PipeWorks
and Seovic (Fletcher Construction, 2011). Each division takes responsiblities for a particular area of
the business to ensure specialization and all activities with the same goal grouped together under one
leader. Moreover, remuneration is fair and reasonable and bring the maximum satisfaction for
employers and workers.

Behavioral approach

E.g: Google is considered one of the biggest technology company in the world, for many people
working at google is a great experience. Firstly, working at google has a huge of chances to learn
from talented leaders. Secondly, each month google earns a lot of profit, and spend a part to provide
services to employees such as free luxury meals, using company products for work or unpublished
test products. Moreover, if a Google employee die, the family will receive half of that employee's
salary for the next 10 years. In addition, Google also supports an additional $ 1,000 / month for the
children of the late employee. These have shown that google has met Abraham Maslow’s Need
Hierarchy to keep its employess motivated and work for long- term
6.2 Leadership theories
Trait theory Emphasizing a specific traits that a Advantages:
person is born to be a leader, not made. - Implying the knowledge about what
These are usually innate qualities or the traits of the leader should be in
supernatural qualities and because of these the leadership process or becoming a
qualities that make them become the head leader of future.
of nations, generals, or businesses. They Disadvantages:
are the people who stand at the helm to - Only emphasizing personality traits
direct the implementation of a plan in and doesn’t consider whether the
every activity of society, community and environment of working or situation
organization. They think of work and force should be applied or not. For
 their inferiors to perform passively. Trait
theory also implies that a person trying to
possessing these traits does not as well as a
natural born leader.
Stogdill (1974) found several
personality traits of making an effective
leader. These are capacity (solving
problem, working hard and making
judments), achievements (accomplishment
such as academic record, knowledge and
sports), socio-economic status , and the
last is participation and involvement.
example, to apply in a military
leadership position it is really
necessary to met the standard weight
and height
- This is just a part of the profile of an
effective leader, this is an approach
to identify future leader, we should
consider including other factors
beyond these traits

Behavioral This theory emphasizes that the role Advantaegs:

thoery behavior is a result of being a leader. Thus, - This theory helps how to behave as
a leader can be made and anyone can be a a leader to bring satisfaction and
leader by teaching or training the way to motivation the work for employees
respond appropriately their behavior in - It increases self belief and
different situation. confidence that no one cannot be a
Managerial grid (Drs. Robert R. Blake leader
& Jane S. Mouton) believed different - Easy to put into practise
dimensions of leadership would lead to Disadvantages:
different leadership styles: Concern for - It can only be applied effectively in
people (relationship with subordinates), a few specific cases while at another
concern for results(focus on task) case it may be irrelevant and
ineffective.
Participative These participative theories assume that Advantages:
theories participating in the decision-making - Making people fell valued as they
process helps those who will have to make are an importantant part of the team,
decisions that better grasp the problem. having more motivation to achieve
Furthermore, when members involve in the the goals and objectives of the
process of decision making, they feel organization.
valued as a part of group, the proposed - When employees are involved in
problem will be solved hand in hand decision making process, they are
through many different perceptions and less competitive and more
then make the best decision for the collaborative and tend to see their
company. peers as coworkers rather than
Kurt Lewin identified three major competitors together toward the
leadership styles: Autocratic style, goals to benefit both
Democratic style, and Laissez-Faire style. Disadvantages:
- Leaders can become overly
dependent on t5 o the aptitude and
experience of subordinates.
- Can be take a lot of time or even
miss deadlines to make the final
decision because of a wide range of
opinions.
Contingency Contingency theory states that "there is Advantages:
theory no one best style of leadership" and "a - Contingency theory brings the
leader is effective when his or her style of understading to the style of
 leadership fits with the situation" leadership that there is no best style
(Fiedler’s Contingency Model, n.d). and the situation greatly influences
However, leaders who adapt in one with this position which type
situation tend to be unsuccessful if the leadership would be good
situation around them changes differently. Disadvantages:
From Fiedler’s Contigency Theory, - This theory primarily proposes
there are two important factors: leadership specific types of leadership style
style and situational favorableness. For that they are belong to, it does not
leadership style, Fiedler created a scale address how to improve leaders.
called Least Preferred Co-Worker (LPC) - The LPC scale also the weekness of
scale to determine whether that leader is this theory, the description of
task-oriented or relationship-oriented. For another person doesn’t decide that
situational favorableness these are three they are a good leader or not.
factors to be considered: Leader-Member
Relations (measuring how much the trust
and respect of subordinates to leaders ),
Task Structure (clear, unambiguous tasks
increase the favorableness of the situation
and vague tasks decrease), Leader’s
Positional Power (the power in the leader’s
position to reward or punish subordinates)

Situational Situational leadership refers to the Advantages:

leadership leader of an organization adapting with - The leader can change their style of
work environment to meet the needs of leadership as they see to suitable for
others by adjusting his or her style that fits the situation.
goals and circumstances. So that, it - This is also simple and easy to use
required a leader have to clearly when a leader applying the right
understand each follower’s needs what situation, everything they do goes in
they want their leader to be in order to the direction that they expect
work with them effectively. - If the leader work based on the level
This theory was developed by Kenneth of their team or what their
Blanchard and Paul Hersey suggested that employees need, they will create a
there are four leadership styles: Telling comfortable environment for their
(high task/low relationship behavior), employees and the performance will
Selling (high task/high relationship be more effective.
behavior), Participating (high Disadvantages:
relationship/low task behavior) and - Situational leadership is based on
Delegating (low relationship/low task meeting immediate needs, so that
behavior). the long term goals and ojectives
may be shifted away
- Leader have to been developed fully
of this skill then their role can be
useful. However, if they misjust the
situation, the situational leadership
may do more harm than good
Example

Participative theories
 One of the best examples of Participative theories is the historical about Ho Chi Minh in the
process of finding a way to save the country. He did not listen and rejected all words from
colleagues, elders or gathering the team to make decision but no one knows that the destiny of the
Vietnamese people has been associated with the decision to leave of a person. He has the capacity,
ability to analyze, knowledge and experience from the failures of predecessors such as Phan Chu
Trinh, Phan Boi Chau to decide appropriately where the way to save the country is, how to be able to
liberate the nation. Autocratic participative decision-making, assertiveness, capacity are always
parallel easy to toward goal-oriented

Situational theory

Walt Disney is the founder of the world's most famous entertainment company. During his
formative years, he built his beginnings primarily based on participative leadership. In the numerous
vintage photos from that time, he often is seen sitting a drawing table with a lot of artists and
drawing meticulously cartoon characters. Disney said "what we accomplish belongs to our entire
group, a tribute to our combined effort"
6.3 Contemporary business world
In today’s rapidly changing society, the business world must evolve to adapt in many situations.
Modern problems require modern solutions. By that thought, the contingency approach and
situational leadership seem to be the most appropriate.

To demonstrate clearer, Sir Richard Branson, an English business magnate, he founded the
Virgin Group which concluded more than 400 companies. He is famous for being extremely
Authentic, daring to try new things and full of energy. Everywhere Branson looks he sees
opportunities, his first business was magazine then he opened a mail-order record, a chain of record
stores and in 1980s Virgin Atlantic airline started to operate. Under Branson’s authority, Virgin
Group expanded broadly in many unrelated areas. Branson focuses on a positive company culture
and values his employees (Raymundo, 2014) so Virgin’s employees work hard and loyal, even when
they left the company they still rate Virgin very highly and this brings good reputation to the
company, Therefore the participating and supporting style of situational leadership works effectively
in this case.

Another example of practising situational leadership effectively in the contemporary business

world is how former Southwest airlines CEO James F Parker led the airlines through 9/11 crisis
terrorist time. After the September 11 attacks happened, airlines were being shut down for days
within United States’ airspace. Thus, passengers, pilots and flight attendants were stranding and
airlines in the US were in crisis. Most companies at that time rather slash costs or lower-paid
employees but James Parker’s flexibility adapts to the situation quickly so he decided not to do that,
instead Southwest made three pivotal decisions: “no layoffs, no pay cuts, no penalty, no-questions-
asked refunds” (Glynn, 2014). People saw the kindness and generosity in Southwest so they
repaying the company by supporting Southwest instead of other companies. After the terrorist
attacks, Southwest, unlike other airlines, still managed to make money. This is a prime example of
how right directing in situational leadership resulted.

Go along with situational leadership is contingency approach emphasizes there is no single best
way to manage people or work in every situation. In real-life cases, it is true that there is no “one-
size fits all” solution. Depending on the situation, it is the manager’s job to decide the best fit in
demand of tasks, people and the environment. There would be no absolute appropriate way to keep
the operation going well so managers have to be flexible and adaptable.

There are many businesses in the world but there is not any business that unchangeable, as the
people’s demand growth, the world changes. It is the managers’ job to see the opportunity and take
it.

6.4 Recommendation for FPT Soft

Human resource is the most important resource in the enterprise, which is also the determining
factor for the failure or success of the business. To have the highest productivity in human resources
management into business development is a big challenge for many organizations, including FPT
Soft.

There are many ways to improve the performance of human resource management, but the
contingency approach and situational leadership are effective methods that FPT Soft can apply.

First, there are some difficulties that businesses face when managing human resources:

Shortage of talented people: Although domestic labor resources are extremely abundant, only a
minority of them have enough skills and experience to meet the increasing demand for jobs today.
Therefore, finding and developing talent to devote for the benefit of the business is a time-
consuming, effortless and not simple task of the HR department.

Dissatisfied with the remuneration policy: In order to attract as well as retain employees working
for the company for a long time, assessing the experience, qualifications, working process as well as
potential of employees in order to offer the preferential treatment policies. The case is extremely
important. However, sometimes FPT Soft has not really done this work well.

Excess and lack of personnel: For many businesses, when business operations decline, the
operation is too cumbersome, the redundancy of personnel is inevitable. In contrast, when business
activities develop, the demand for personnel increases will likely face a shortage of human
resources.

So why can contingency approach and situational leadership help FPT Soft solve these
difficulties?

Basically, the contingency approach and situational leadership are two methods that have similar
meanings. Both point out the manager method based on each situation that determines how to solve
the problems.
 For the shortage of talented, FPT needs to set up basic bases to determine the knowledge and
skills required of candidates for recruitment. Besides, FPT develops talents for businesses by
studying recruitment areas such as A-level universities and so on or surveying the graduation quality
of university students every year.

In terms of remuneration policies, FPT needs to analyze, classify and calculate salaries and
award for employees depending on the revenue each year and each person's contribution to improve
employee satisfaction. FPT leaders should listen to the opinions of each employee to understand why
they are dissatisfied and what has led to that to provide a reasonable method.

Excess and lack of personnel formed from planning, allocating and recruiting workers.
Therefore, FPT Human Resources Department needs to know updated information from other
departments in a timely manner, to find and recruit candidates who are suitable for the required
positions, avoid delay in recruitment.

Human resource management in the company still has many difficulties, thereby posing great
challenges for FPT managers. In order to minimize the limitations of human resource management,
FPT may consider different management methods to manage human resources to limit errors, delays,
increase efficiency and productivity for businesses.

7. Conclusion
In short, in the operating system of an organization, the three highest levels clearly show the role
of managing levels: top - level mangers, middle - level managers and low managers. In a business if
leadership is the role of senior manager who uses power and authority to influence people, the
followership only supports, at the same time following orders from low-level employees. Besides
that, both of management and leadership in term of style and characteristic promote the employees to
achieve the highest business goals. Leadership and management are equally important roles. To be
an effective leader, one must show their potential and knowledge combined with passion to work for
the company’s benefit. in contemporary business world, the contingency approach and situational
leadership seem to be the most appropriate because it emphasizes that there would be none absolute
way to deal with many different situations and the manager must be the one who is in charge to
make decision due to the circumstances to run the organization as smooth as possible.
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