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ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Management and Operations (488)

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1. Tran Xuan Tan

2. Tran Viet Anh Khoa

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3. Ton Giang Chau
4. Vo Ba Tan

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making a false declaration is a form of malpractice.

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I. Introduction:

In this assignment reports we have discussed the role of leadership and management in the company and
show their importance in operating the organization. The reports consist of a study case of Amazon and many
more famous figure such as Jeff Beros, Henry Ford and Truong Gia Binh. The reports included the roles of
leadership and functions of management, the link between management and leadership has been explained
by a study case of Amazon. The leadership theories and management approaches have also been explained
by the case of FPT Software Company.

II. Differentiate between the role of a leader and the function of a manager:

1. Management and leadership concepts: (Tran Xuan Tan)

1.1 Basic concept of management:

Management is a set of activities of a manager who takes responsibility to shape a part or the system of an
organization into the right form. The last destination of management is achieving organizational goal in
efficient and effective way. To do so, a manager must have the foresight, arrangement and measuring abilities
as well as directing skill. Furthermore, a successful manager must know how to motivate his/her staffs and
coordinate them with the aim of completing the mission as soon as possible.

1.2 The different of management:

- Different in level:

Management is a complex process with the aim of achieving the goal in the most effective way. Manage an
organization which means take care of all the aspects of that organization and make sure that the system
works effectively and efficiently. It is too hard if one person is required for handling a whole company. This
problem created a level-based system which management is divided into various part and each person would
have the responsibility to ensure that his part is well working. Because of the difference in responsibility and
authority, this level-based system distinguishes into 3 main levels.
 + Top-level management:

Basically, top managers are people who take responsibilities in all aspects of an organization such as policies,
welfare, society and orientation. These managers are responsible for giving policies, setting goals and all the
activities of their organization that related to society. Top managers must combine activities of all departments
and make sure that these activities are supporting organization’s main objective.

+ Middle-level management:

The main task of a middle managers is to make sure that goals set by top managers is smoothly done. This
means middle managers quite depends on top managers because they are just responsible on top managers
products and exactly done plans laid out by top managers. Further, they also must ensure that their
departments have enough workforce by hiring and firing as well as motivating their employees.

+ First-level management (operatives and specialists):

First-level managers are at the bottom of this system. However, they play the key role to create a solid
organization. Imagine an organization is a tree. If this tree has a firm root so that it will everlasting. The reason
is first-level managers directly contact with workforce. When their main task is to supervise employees, they
can maintain quality of products, guarantee safety standard as well as reduce wastage of materials.

1.3 Basic concept of leadership:

Leadership is personal process, not a talented ability. The destination of a leadership is influencing people in
order to encourage them to complete their mission and direct the organization to achieve common goal. To
be a proficient leadership, he must develop himself through an incessantly process by studying, training, self-
changing. A leadership should inspire and motivate their workers to be a united community.
 1.4 Basic concept of followership:

Followership is a set of skills that used to support and complete the role of a leader. A follower should actively
contribute ideas as well as analyze the situations so that he can support the organization with all knowledge
and information he has. In fact, revolution ideas of a follower can easily be denied by leader because the leader
has more information to decide the last decision. However, the follower should not disappointed if the
opinions he has raised is not used. It is possible that his opinions have not yet implement or the environment
is inappropriate for his strategy. Want to be a good boss, firstly must be a good follower.

1.5 How leader’s use of power and authority to “influence” people:

A leader who have the right to use authority and power to control his workforce. Further, he must believe in
his set goals and has foresight. To successfully influence people, a leader must strongly believe in his vision as
well as smartly in using authority and power to motivate his workers.

There are 8 common tactics in using power and authority of a leader to influence and motivate his staffs. In
my opinion, these tactics based on 3 main ideas: behaviors of workers, feeling of workers and how logical as
well as strongly in your argument.

- Behaviors of workers:

The core of this idea is using examples and values to lead and modify behaviors of agents. By giving positive
models and clear objectives as well as what will workers gain when several objectives are completed, leader
can easily guide and gets expected behavior from their workers.

- Feeling of workers:

This idea is related to EQ and how a leader motivates his workers and make them work efficiently and
effectively. First, leaders must know their workers feeling. Hence, leaders can apply penalty and reward
mechanism. People prefer compliments than scolding as well as rewards than penalties. Good leaders know
how to catch this mentality and influence others by offering award when they finish your given works. This
also is the method to make people like you and can apply in political situations.

- Be logical and strongly in arguments:

This kind of idea is depended on leader’s knowledge and ability. Any arguments and evidences of leaders must
be clear, logical and persuasive. In addition, a good leader must be assertiveness that their demands should
have certain pressure enough to force their workers efficiently finish their missions.

II. Management and leadership differences: (Tran Xuan Tan)

1. Difference in styles:

1.1 Management style:

 - Management as an art:

Before trying to understand why management as an art, we should pay attention on what art is. We already
know the definition of art as well as can easily find various examples of art in daily life. However, there are
some common features in this field that helpful to identify which is called art. These basic features of art are:
personal application, theoretic concepts, creativity and practice. For these reasons, management is called as
an art because managing requires certain skills that match with each of the features of art.

+ Personal application:

Art is very personalized. Although sometimes, ideas seem like the same, but basically art is depended on each
person’s creativity and ability. It is also true for management. Each manager has different styles of
management. This means although the basic knowledge of two different managers is quite the same, but the
style of performance can completely different from each other. Thus, specific manager has unique way to do
management.

+ Theoretic concepts:

Almost people believe that art is non-theoretical and somewhat abstract. Interestingly, art is very theoretical.
Any kind of art contains an amount of theories. We can easily find the similar between management and art.
A manager who handle the management process in an organization needs to master basic theories and
principle of management. Base on the knowledge gain from studying and practicing, a manager can choose
the right decision in important situation as well as guiding the organization to succeed.

+ Creativity and practice:

Any kind of art has its own principle and theories. However, basic theories just play a role in guiding the artist
and help them in practicing. To be outstanding, the artist must be creativity and incessant practicing. A
musician starts with seven notes as well as a manager starts with some basic concepts, but the important thing
is how efficient they use these principles. A manager must perform his responsibilities on management day
by day, so that he must improve his skills as well as innovates his knowledge in his field. Hence, having
breakthrough ideas and incessant practicing are the keys to succeed of managers in this modern century.

- Management as a science:

Science is a system of knowledge and activities that are about the universe. All the knowledge which is called
explanations and predicts must be verified through experiments. Management is completely corresponding
to science with all the features of science which are systematized knowledge, basing on experiments and
popular validity.

+ Systematized knowledge:

Evidently, management has systematic of knowledge which contains theories and principles. As well as
science, these theories relate to many aspects of life and are developing day by day.
 + Basing on experiments:

Theories and principles of management are results of experiments and researches. Conclusions of
management theories are not raw observation or rumors. The same as science, theories of management must
base on careful research and under control of expert.

+ Popular validity:

As discussed, management principles are inaccurate, involving other specific subjects such as mathematics,
economics. Therefore, they can be applied to many different situations and form the core of management
science. Moreover, managers can use these principles in each situation as well as training and developing
managers.

- Management both art and science

Science teaches us the basic things while art guide us how to use these basic things correctly. To be successful,
managers must know how to achieve their goals efficiently and effectively. To do so, managers must combine
science and art.

Management can be art only when managers master the basic concepts. First, they must know the principles
and methods to be able to do management. Then, they can develop their own way to make their works
become perfectly. Imagine management is a tree with science is the root. That tree must have a firm root
before producing sweet fruits which are art.

Art of management starts when science of management is finished. Because science of management is not
perfect. It still misses some features to make your works efficiently. That is the reason why managers should
turn to art-side of management when they have the knowledge of basic theories. For example, a singer could
learn vocal, tones, notes but he just famous when he practiced, created and developed his unique way to
perform.

1.2 Leadership style:

There are 3 main styles of leadership which are developed by psychologist Kurt Lewin. These styles are
considered classical methods for business leaders. Each of them has difference strength and weakness as I
discuss below.

- Autocratic leadership:

With this style, leaders are people who hold all the power and authority to make final decisions. They assign
their workers affairs. Show their workers how to finish those tasks without listening to workers comments.

There are various opinions about this style of leadership. They said that this style creates high pressure and
stressful atmosphere to workers, as well as limits the efficiently and creativity. However, this style does not
mean you often scold employees. If leader know how to use this style in correctly situations, this style will
show how effective it is. Autocratic style can be applied in these situations
 + First stage of creating a team.

+ New employees who immature in working experience and short-term decision making.

- Laissez-faire leadership:

This style of leadership can be understood as free-leadership. Basically, they just assign works and directing
the plans to team members but do not involve. Laissez-faire leaders allow employees to make decisions and
take responsibilities for their decisions.

This leadership style allows subordinates have very high autonomy to complete their jobs as well as create a
playground for staffs show their talents and capabilities. However, this style must be used appropriately,
otherwise it will cause awful effects. Leaders should apply this method under these conditions to get the
highest productivity:

+ Leaders have tools to control employees progress.

+ Have backup plans in case of employee’s failure.

+ Pay attention on attitudes and expressions of employees.

- Participate leadership:

This style is also called democratic leadership style. The participate leader usually divide his management
power, receive their subordinate opinions and allow them to participate in discussions. However, the final
decision is still determined by leader. Democratic leadership is considered the most efficient giving. However,
this style can be applied with highest effect when meeting these conditions:

+ Leader understands the problem, but he needs more information from subordinate.

+ The team members already know tasks and the ways to perform works.

2. Difference in characteristics:

MANAGER LEADER

- Impact on works - Impact on people

- Organizes - Invents or innovates
- Relies on control - Inspires trust
- Asks the question “how” and “when” - Asks the question “what” and “why”
- Believe in himself - Believe in team members
We can easily saw that management mainly focus on tasks. Base on management experience, the manager
often observes the rules so that he is strict. Overall, the manager just does his right jobs and expertise all the
tasks. On the other hand, leaders pay more attention on emotion and personal skill of their workers. They
work concentrate on workers and encourage them as well as participate in certain situations to get the highest
productivity as possible.

2.3 Real specific example for each style of leadership:

- Examples for leadership styles:

+ Example for autocratic leaders:

Ho Chi Minh- supreme leader of Vietnam is one of the classical examples of autocratic leaders. He is arbitrary
in finding the way to save his country. He ignored rumors and advices. However, Ho Chi Minh strongly believed
in himself. He had enough capacity, ability to analyze, knowledge as well as experience to find the most
effective way in saving Vietnam.

+ Example for laissez-faire leadership:

Truong Gia Binh- chairman on the board of FPT Corporation is a kind of laissez-faire leader. He rarely uses all
of his power and authority in making decision. He wants FPT Corporation is a dynamic environment for his
staff to delight in expressing themselves. Mr. Binh knows how to inspire and authorize the departments to
solve the problems on their own.

+ Example for participate leadership:

Jim Lentz, chief executive officer of Toyota Motor North America, Inc, is one of the best leaders to have shown
how effective it is to guide a team directly through challenges and failures in order to minimize damage and
address issues successfully. When millions of Toyota units were recalled due to bad brakes, he appeared on a
website to answer questions that thousands of people had. Though difficult to do, leading from the front
certainly reaps rewards and encourages others to follow. (Lombardo, n.d.)

3. Link between management and leadership: (Tran Viet Anh Khoa)

Nowadays, managers and leaders are required to master different skills in order to perform their abilities to
the company. Management and leadership are two different definition, but they have an intimate relationship
and they cannot be split because they always assist each other.

3.1 The link between management and leadership:

Management is doing the things right,Leadership is doing the right things (Drucker, n.d.). It may sounds
opposite but in fact they support each other, leadership pointed out what is needed to develop the company
in the right way and management will manage every operate activities so everything will be working properly.
Companies with both effective leadership and management will be more likely to succed. With the vision of a
leader that will guide the direction of the company's development of business strategies and along with the
control of the manager will ensure that all work will be finished in the shortest time. The operating system will
work effectively and will also have a harmonious working environment. The employees working at a company
with those element are likely to stay longer and contribute to it.

A person who want to become a leader and a manager at the same time need to have an extensive knowledge
about the company and the employees which means they have to inspiring, persuading and assisting workers
in order to create a good method to help the company’s economy grow and also create an effective working
environment. They need to balance between leadership roles and management functions. Encourage
employee’s confidence so they can have motivation to work efficiently to complete all the work. From that,
they can control the working system, the revenue and increase the productivity of the organization.

3.2 A real-life case study of a succesful business requires both effective management and leadership:

Jeff Bezos, the chairman and also the CEO of Amazon would be the suitable example to demonstrate the link
between leadership and management.

Jeff Bezos is the founder of Amazon and he have been working as Amazon’s CEO for 24 years, from 1995-
2019.Amazon is the largest online retailer website all over the world and with the vision of the CEO it has
become one of the most successful company in history from a book selling website.
Financial Statement Of Amazon in 2017 (Amazon, 2018)
 Amazon Revenue from 2006-2019 (Trends, 2019)

In the late 1990s and the early 20th century,Amazon was struggle with he investors because the company
gained no profit. But with the talent in leadership of Jeff Bezos he had proved that Amazon will be succeed.
He focus on the company vision and customer service, he is constantly developing new products besides books
by that Amazon officially became “Everything Store”. In 2001, Amazon got a profit of 5 million dollars that
number is not too high but it can demonstrate the potential of it to become one of the biggest company in the
world. In 2018, Amazon made a profit of 11 billion dollars and also bring Jeff Beros to the richest man in the
world. These achievements are the results of a process of combining management and leadership effectively.

Jeff Beros is one of the greatest leaders in the world, he always has a strong vision about the way to develop
the company. He always knows what can bring the most profit to the company and always focus on it. As a
leader, he creates a competitive working environment for his employee because he thinks that competing is
the best way for employee to improve their skill. He really likes a messy organization where people can make
independent ideas instead of working at a group from that he creates his own rule the “two pizza rules”. He
will only hold meetings in which two pizzas will serve everyone, for him that will make the meeting become
more effective because everyone will be able to share their ideas and they will find the strategy for the
company easier.

And with management, Jeff Beros is a fastidious manager and with a style of micromanager. He watches
everything in the company carefully and every works he gave have to be finished. He is a manager who does
not want to be opposed whenever an employee opposes his idea he will ignore it right away and does not
want to hear it anymore or he even scolds his employee for it. Although some of his bad behavior he still a
very good manager, he can manage everything in his system very well. He wants to make sure his employees
are working with all of their efforts and bring the highest profit to the company. He is very smart and full of
experience, so his employee can follow him to solve any problem of the company and consider him as theirs
mentor.

In summary, management and leadership have to exist in parallel to support each other in order to make the
organization successful, if one skill is missing it could ruin the whole system. So, these two skills are really
necessary for company to survive and keep everything on track.
4. Management function and leadership roles: (Vo Ba Tan)

In the early 16th century, Henri Fayol- the man who found and developed the general theory of business
administration and is also known as Fayolism theory. Based on his experiences he produced his first work; five
basic functions of governance were given by him but now but now has been reduced to four.

4.1 Management function:

- Planning:

In management, planning is a very important function because this is the first basic function. The focus of
planning is to prepare organizations tomorrow by evaluating today what the organization is doing and how to
achieve that goal. Through the plan, management can make the best decision to implement management
function. It is a preparatory step and consists of chalking out an activity plan for doing the things in an orderly
manner for the achievement of the desired targets and objectives. A clear plan will make us act easier without
judging or making decisive risks. It is a detailed program regarding future course of action. In addition, it is
necessary to identify the trading environment, consumer customers and even competitors to be able to plan
and make appropriate strategies.

- Organizing:

The next function of management follows the main plan of organization. An organization works well if it is
well organized. This is a function of the synthesis of available human, material and financial resources available
for use. Therefore, these three resources are important for the apparatus to operate effectively

Organizing is essential because it facilitates administration as well as operation of in the organization. By the
proper grouping of the work and the employees, production increases, overload of work is checked, wastage
is reduced, duplication of work is restricted, and effective delegation becomes possible. Organizing also
facilitates growth and diversification of activities through clear division of work. It helps in developing a proper
organization structure and the extent and nature of decentralization can be determined. In addition to the
above, it becomes possible through organizing to provide for the optimum use of technical and human
resources. Besides organizing also encourages creativity and enhances interaction among different levels of
management which leads to unification of efforts of all.

- Leading:

The third basic managerial function is leading. Leading is the skill that affects people for a common purpose.
The leader must be someone who has a voice and must inspire others to act. Leading is always considered the
most important and challenges all management activities. If managers are effective leaders, they will know
how to connect members together and create a cohesive team to lead each other to achieve goals.

Motivating is an essential quality for leading. Motivating is the function of management process of influencing
people’s behavior based on the knowledge of what cause and channel sustain human behavior in a particularly
committed direction.
 - Controlling:

Controlling consists of verifying whether everything occurs in conformities with the plans adopted,
instructions issue and principles established. Management function of controlling is the process whereby
organization sets itself performance objectives and strives to achieve them as best it can over time. It is a
method for managing the performance of the organization. Measurement of the difference of reality
compared to the standard. Thereby finding out the causes of the error and taking corrective actions.

Controlling is a systematic exercise which is called as a process of checking actual performance against the
standards or plans with a view to ensure adequate progress and also recording such experience as is gained
as a contribution to possible future needs. (Brench, 2015)

4.2 Leadership roles in practice:

Leaders focus on creative vision, seeking appropriate executives, motivating people, inspiring to achieve goals,
influencing others, fighting for change, developing staffs and self-motivation. Leaders holding positions at
different levels in organizations carry out leadership functions and management functions, with different ways
and levels. In the current period, leaders and managers are facing major challenges such as increasing pace of
change, stormy progress of technology as well as increasing of needs and aspirations. To overcome these
challenges, they must implement the functions and tasks that both relate to leadership and management
roles.

4.3 A real-life famous business person:

Jeff Bezos is a famous businessman in the world. He has assets of over $ 146 billion. Before becoming a wealthy
successful man. He became the youngest senior vice president at investment company D.E.Shaw. But his
ambition did not stop there, four years later he quit his job to open up an extremely popular commercial web
site. After inviting 300 friends to test this site, Amazon.com was born. Although there were no advertisements,
his initial success sold books on the United States and 45 foreign countries within 30 days. For two months,
sales reached $ 20,000 a week, growing faster than Bezos and his startup team envisioned. Amazon.com made
its public debut in 1997, prompting many market analysts to question whether the company could hold itself
when traditional retailers launched their own e-commerce sites. Two years later, start-ups not only keep up,
but also surpass competitors, becoming an e-commerce leader. After that success, Bezos continued to expand
its shopping list with the sale of CDs and videos, and then clothing, toys and electronics. He demonstrated his
business acumen and management skills by raising sales from $ 510,000 in 1995 to more than $ 17 billion in
2011.

Bezos got worldwide attention on August 5, 2013, when he bought The Washington Post and other
publications associated with its parent company, The Washington Post Co., for $ 250 million.

In July 2017, Bezos quickly surpassed Microsoft founder Bill Gates to become the richest person in the world,
according to Bloomberg, before returning to second place. Amazon Director then regained the top spot. in
October and in January 2018, Bloomberg pegged his net worth at $105.1 billion, making him the richest person
in history. Two months later, Bezos was up to $127 billion, equal to the combined wealth of 2.3 million average
Americans, before continuing his surge to the $150 billion plateau in mid-July.
 5. Management approach and leadership theories:

Evolution of management thought (Aswani, 2012)

5.1 Classical approaches:

This oldest school of thought is evolved to maximize the efficiency of individual performed task as the close
link between the role of management and the efficiency of workflows had been recognized. It based on the
belief of dominant elements of work are economical needs and physical needs; neither social needs or job
satisfaction are important or exist.

Classical approaches (Wiley, 2008)

 a. Scientific theory:

The most important delegate is Frederich Winslow Taylor. The theory demonstrated that analyzing and
organizing work in manners of scientific basis leads to the “one best way” to increase organizations’
productivity dramatically. In addition, it presented that reward on the productivity could impulse the individual
worker efficiency of performing tasks as additional remuneration creates motivation.

- Temporary limited:

+ Lack of manage standard tool or technique.

+ Lack of the link between skills and jobs.

+ Lack of motivation.

- Scientific theory can be summarized as 4 basic principles:

+ Improving management relationships between owners and workers:

Taylor argues that it changes the spirit and attitude of the two sides (the owner and the worker), replacing the
war with peace, the conflict with cooperation, the skeptical suspicion with the belief between the two parties.
It reflected through the managers’ supporting to provide work plan and eliminate interruptions.

+ Standardization of work:

It is a method of dividing work into major parts (simple operations) and reasonable labor norms, enabling
workers to increase their income and complete the best work at the same time; thereby increasing labor
productivity.

+ Specialization the labor:

Selecting and training workers scientifically means each worker specializes in an operation to perform it in the
most effective way.

Example: By applying the method at the Symond Rolling Machine Company, it was pointed out that 35 girls
had done the work of 120 girls.

In addition, the method consists of finding "the best" among workers as the reasonable norms and the
example to motivate others to increase labor productivity and income. Taylor has tested 75 workers at
Bethleham Steel Company by examined fitness, temperament, biography, ambition, then selected best
person, trained him with optimal operations that then resulting of carry 47.5 tons of cast iron per day
compared to the old 12.5 ton per day norm.

He also argued that selective implement appropriate organization form and manage tool would yield better
results. This means that the role of management, organizational capacity is more important than the elements
of machines, technology and human for the success the business.
- Presenting and ensuring suitable division of labor:

Taylor believed the work motivation comes from economic need. In addition, people tend to be lazy, escape
from work so they need to put him in a disciplinary framework, working on a reward-punishment mechanism,
from which he makes product-based pay policies and rewards products that exceed quota.

The Gilbreths are known as the followers of Taylor, also two important contributors of Classical management
theory.

Poor design, inefficient workplaces from the late 19th century led to the trend of using scientific methods to
study workplaces. Gilbreths pioneered the "time and motion studies" at work. They then determining the “one
best way” to do any job that reduced the motions needed to do the job to a few basic ones and eliminating
the unnecessary motions.

They are also interested in how workers can reduce fatigue. From a psychological perspective, they give ideas
about the best way to train and develop employees.

+ Rotation of work

+ Search for jobs matching the natural skills of workers and the ability to develop.

Example: Automaker Henry Ford with the effort of replaced workers with machines for heavy lifting and
moving have implemented the scientific theory. The Ford company applied to total car assembly, improving
efficiencies and reducing workers- hours required to produce a Model -T Ford to less than two.

b. Administrative theory:

Henry Fayol’s research focused on the actions of all managers and building an overall organization to manage
the work process. He thinks that a successful administrator relies heavily on the management methods he
uses rather than his own characteristics.

Fayol analyzed 5 major management functions: planning, organizing, leading, controlling and coordinating.

To be able to do well the organization, corporate organization, Fayol had put forward and required
administrators to apply 14 principles in governance.
 Henri Fayol’s principles of management (Tibaldo, 2015)

a. Bureaucracy theory

“Bureaucracy is an organizational structure that is characterized by many rules, standardized processes,

procedures and requirements, number of desks, meticulous division of labor and responsibility, clear
hierarchies and professional, almost impersonal interactions between employees” (Weber, 1978)

Bureaucratic Theory (weber, 1978)

According to 6 principles above, there is the combination of both scientific and administrative theory; hence,
it brings a great benefit is that large organizations with multiple hierarchies are structured and functioning
effectively.

b. Appraisal:

5.2 Behavior approach:

This theory emphasizes the important role of people's psychological and social needs in in the process of
working.

Approaches of management (Anon., 2011)

 a. The Hawthorne studies

Typical in this view are Hawthorne studies of psychological impacts on the labor process which make workers
feel psychologically that they were being paid attention by administrators. It mentioned some method led to
psychological impacts, such as making changes in light mode, wages and working time.

b. Abraham Maslow (1908-1970):

This theory mentioned that successful manage method is the “must” pay attention to the needs of people as
they will always dominated by higher and higher demands.

Maslow’s hierarchy of needs (Hopper, 2019)

 c. Theory X & theory Y of Douglas McGregor:

Principle of theory X and theory Y (Morgan, 2017)

Despite the 2 theories are the same author’s studies, there are opposite points of them due to the different
behavior statements.

Difference between theory X and theory Y (Morgan, 2017)

 d. Appraisal:

5.3 Quantitative approaches to management:

a. This approach relied on 3 bases:

- Scientific governance: Unlike Taylor's scientific approach, this theory using mathematical analysis in decision
making, using statistical tools, econometric models to solve problems in the progress systems and business
work.

- Operational management: Appling this method in operating and managing the organization. Operational
management uses quantitative techniques such as prediction, inventory checking, linear programming,
consequence theory, system theory.

- Information system management: Collecting and processing information to help make decisions. This system
logically results for increasing recognition of the power and value of information.

b. Appraisal:

5.3 Temporary management theory:

 a. The Systems Perspective:

This theory put the organization work under a system or whole interrelated parts circumstance, which interact
with the environment to transform input (Resources) into output

(Products and services) and supply them to the outside world. There are 2 influential concepts:

- Entropy: The fresh input is required regularly to remain the system not to run down and die.

- Synergy: The whole must work together to create more productivities than one work independently.

Basic systems view of organization (Guangyue, 2018)

- Appraisal:
 b. Contingency Approach:

This approach emphasizes companies have been facing with different types of situation that required flexible
approaches for each one.

- Appraisal:

5.4 Sum up leadership theories:

Leadership Main content and Key Author

Theories
Trait Theory Leaders were born with natural, instinctive, capable qualities or characteristics
(superhuman qualities, superior values to others), not just because practice or try to
achieve.

Behavioral Managerial grid (Drs. Robert R. Blake & Jane S. Mouton): Managers are believed to have different
Theory styles of leadership which lead to two dimensions of leaderships: - Concern for Production:
manager who focuses on getting results or accomplishing tasks - Concern for People: manager
who avoids conflicts and strives for friendly relations with subordinates.

Participative Participative theory (Kurt Lewin) assumpt that more people involve within the decision-making
Theory process is better than one, and by doing so, improve the understanding of task and increase the
commitment of the people, they will be less competitive and are more collaborative with each
other.

Participative Contingency theory (Fred Fiedler) suggests that there is no single best leadership that can be
Theory applied in every situation, a leader who is successful in one scenario may be unsuccessful if
various factors around him/her change. Hence, the leader must be capable of changing
accordingly depend on the leader’s preferred style, the capabilities and behaviors of his
subordinates/follower, and various others situational factor.

Situational Situational theory (Paul Hersey, Ken Blanchard) suggests that situational factors such as
Theory motivation, capability of followers, relationship between followers and leader, etc., determine
the best action of the leader. The leader must understand that there is no single best leadership
that can be applied for every situation, and he or she has to be capable of diagnosing the
appropriate leadership upon the given context and also be able to apply it.
5.6 Real life example of Management Approaches and Leadership theories:

The implement of management approaches plays decided role of the smother run of a business or success of
driving an organization to work toward the desired direction. Hence, the managers or leaders have to face
many issues and challenges to selective apply and combine appreciate approaches that depend on the Scale
of business (large, medium or small scale).

Apple Inc. is worldwide known a US computer technology company which always stay ahead with many close
competitors in the manufacture and supply of mobile electronic devices such as Samsung, Blackberry.

In order to be persistent overcoming any organizing problems, there are approaches Apple Inc. has
contemporary used to remain their flexible and competent:

- Classical approach: used in the purpose, formal structure, hierarchy of management, technical requirements
and common principles of company

- Human relations: attention to social factors as work, groups, leadership, the informal organization and
behavior of people

- System: integration of the classical and human relations approaches. Importance of their social-technical
system; mainly organizations within its external environment

- Contingency: Form of structure, management and success of organization dependent upon a range of
situational variables. (J.L, 2013)

Toyota Plc., one of the world's leaders in Transportation Technology.

Toyota Plc. has applied contemporary theory of management because of its feature of the lowest material
cost but the highest quality in the supplier. Additionally, they have applied leadership of their managers and
C-level executives to achieve the most profitable results.

Classical management theory is also applied in which managers continuously try to improve policies in order
to strengthen productivity. An outstanding strategy was developed the name KAIZEN, short for "effective" in
Japanese, not only the continuous efforts of managers and employees to progess the productivity, but also
have the participation of applying leader style, so the input of both workers and managers decision-making
process related to cost reduction and production improvements.

Toyota Plc also further implement the management behavior theory in which leaders contact staff and observe
them to make policies that are most beneficial for both the company and employees.

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

Modern world today is facing the risk of stagnation in the development of technology and disaster of
exhaustion of environmental resources. The consequence is an assimilation in technology, equipment,
materials, etc., and the costs for technology, equipment and materials are increasing in a margin of days.
Therefore, that a company would be able to select out the right management approaches and leadership will
determine their survivability. In the above scenario, there are some conclusions have been set out:
 - The contemporary theory of management to is considered suitable to deal with the current
situation of increasing cost of purchases and productions (according to the example of Toyota Plc. above)

- Using Classical management theory to continuously improve the formal structure, hierarchy of management,
technical requirements and common principles of company for adapting required of changing based about
the ever-changing world nowadays.

- The management behavior theory helps satisfy the psychological needs of workers

- Leadership skills of manage is a sufficient condition.

5.7 Recommendations on which management approach and leadership theory should be applied at FPT
Software Company to improve the performance of Vietnamese organizations:

FPT Software Company is a global IT services and outsourcing company, which is a subsidiary of FPT
Corporation, a multinational technology conglomerate. Founded in 1999, FPT Software is currently the biggest
software services company in Vietnam, with generated revenue in 2017 of $276 million and workforce of
15,000 employees. It has more than 27 offices in 16 countries, with the major popularity in Japan, South Korea,
Vietnam, China, Philippines, U.S.A, Canada, France and Germany, however, most of its employees are based
in Vietnam, accounting for more than 80% of the work force. Its major markets are Japan, US, Europe, Asia
Pacific. (Wikipedia, 2019)

To improve the performance of Vietnamese organizations, the leaders and managers of FPT Software need to
be flexible in method of approaching problem, approaching behavior and incorporating management theories
for the specific situation and environment of FPT. Worker's behavior needs to be carefully and flexibly cared
for, creating a strong sense of presence in the minds of workers so that they can feel they are an important
asset to companies, at the same time, managers must observe and be able to detect any changes in and
outside the environment they are working in to be able to change or propose policy changes to resolve the
situation best. case in specific context and stop the possible increase in discontent and crisis among
employees. The same can be applied to FPT Software's leaders with situational theory, such as the theory of
situational factors such as motivation, ability of followers, relationships among follower and the leader, etc.,
determine the leader's best action.

III. Conclusion:

The management and leadership are two different definition and the roles of leaders and managers are also
different, but they need to support each other in order to operate the company effectively. Therefore,
managers and leaders of an organization should know more about each other works to help the organization
develop better
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