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Contents
Management ...................................................................................................................... 9
Power & Authority of a leader and how a leader can influence people ......................... 11
Reference.......................................................................................................................... 38
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Management
An act of getting people together in order to accomplish a goal or an objective using available resources
efficiently and effectively is called Management.
The person who in charge of the work performance of each team member and have the formal authority
to direct company resources is called the manager.
Levels of management
Members usually are elected by shareholders to state their formal power and ownership in the
organization. Board of trustees often applied in non-profit organization. Instead of being
appointed by shareholders, they are voted by local citizens, government bodies, or invited by
existing members.
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Their primary mission is to ensure the organization is well managed in both lawful and ethical
way.
• Top level
Top level primary role is to set strategy and lead the organization in order to stay consistent with
the original objective and purpose. They also have to pay special attention to the external factors
to be able to enact when potential risk occurs.
• Middle level
Middle level managers have the responsibility to manage a large division consist of several
smaller work units then report back to the top - level manager. They usually working with top-
level manager, coordinating with peers, and supporting lower-level members.
Lower-level manager usually are the person who in charge of small work group consist of non-
managerial workers.
• Non-managerial worker
They are responsible for many executionary function in the company. Depend on which
department, they are entrusted with specific function.
Leadership
Leadership and followership
Leadership is a concept which everyone define differently, in recent study, Dr.DuBrin defines:
“Leadership is the ability to inspire confidence and support among the people who are needed to
achieve organizational goals”
A leader is a person who can carry out leadership, have a vision, and see the improvement. A leader can
rally people, organize and lead them toward a specific goal while putting the people first.
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Followership represents the ability to take direction well, participate in a team and deliver what is
expected.
Power & Authority of a leader and how a leader can influence people
To management essentials, power is the ability to influence decisions and control the available
resources.
Authority is the formal right to command people and to manage resources.
There are 8 tactics a leader uses to influence action in a community, these included:
1. Leading by example: A leader give out a positive model of desirable behavior in order to
influences a group or a community.
2. Leading by value: By articulating and demonstrating values, a leader can help manage the
behaviors of others
3. Assertiveness: Is the term which refer to of being straight to the point in your demand. This
means show other people how you want things to be done and express your feeling.
4. Rationality: This is somewhat related to fairness. It means that you have to be appealing to
reason and logic of others.
5. Ingratiation: This is the ability to make someone else like you, it usually involving political skill,
your charisma and other aspects.
6. Exchange: By offering value to other member if they meet your requirements, it will affect your
influence to your surround.
7. Coalition formation: This ability effects your power and influence in a community.
8. Joking and kidding: This is the most common way to influence people. Good natural ribbing is
considered to be effective. While straight forward statements might be considered as harsh
criticism.
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Difference between leadership and management
This definition is famous because it implies that leaders are the ones who decide what to do, while
managers decide how to do things. Management is doing things right. It makes sure that the wheels
keep turning. No organization can survive without management. Opposite to that, Leadership takes
people and organizations forward, inspires people to try harder, do new things, take risks.
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Delegative: This is the least productive leadership • Paternalistic: Acts with the best interests.
style, which offer little to no guidance to group Democratic: Encourage employees to take part in
members and let the decision making to others. the decision-making process, but are ultimately
Other leadership style includes: responsible for the final decision.
Transformational: Emphasizes on making people Subtype:
better. A leader who followed this style usually • Consultative: Ask for the opinions and
are often the one who helps the organization and decide on the final decision
improve people in a positive way that helps • Participative: all member are active in the
improve their productivity. decision process.
Transactional: leader who follow this style, • Collaborative: discussing extensively
usually promotes or compliance his colleagues before making decisions.
through both reward and punishments. • Transformational: Agile and growth-
Situational: This is a concept showing how to focused.
match each leadership style to appropriate group • Coaching: Develop and guide their team
on a given task. This is depending on the Laissez-faire: Staff is entrusted to do their work
capabilities of each group members. without supervision, they are left to make
decision and solve problem
Subtype:
• Delegative: Manager is only present to
assign tasks but still responsible for tasks
completion
• Visionary: Explain and convince their team
to work towards their vision.
In term of characteristics, management and leadership has some differentiation like so:
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• Goal-oriented • Power motive
• Continuous process • Self-confidence and humility
• Multi-dimensional • Trustworthiness and honesty
• Group activity • Good intellectual ability, knowledge, and
• Dynamic function technical competence
• Intangible force • Emotional intelligence
• Leadership efficacy
The table shows differences in working style between leadership and management.
Leaders responsibility is to think of new ideas and bring into the company's plans in future. Leaders must
have a vision, constantly develop new strategies and tactics. Therefore need to be able to catch trend.
While, managers focus on setting and testing scenarios so that everything is maintained and operated as
planned.
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2. Leadership is the agent of change, managers maintain the status.
Leaders looking for innovation, accept changes even when they know things are working properly.
Though changes will present risks in management and production.
Managers are always attached to what's running. They choose to adjust the system, structure to make it
more efficient.
Leaders are self-aware and work hard to build their personal brands and differentiate themselves. They
are also authentic and transparent.
Managers learn their management skills through work experience or from others. They are more inclined
to learn to create their own leadership style than to create.
Leaders are willing to take risks. Because the greater the risk, the greater the chance and failure will be a
step on the path to success.
Managers work to minimize risk rather than accept. They always find ways to avoid and control these
problems.
Leaders have foresight and big goal in the future. They have a burning incentive to accomplish their goal.
Managers work on short-term goals. They oversee, check the process and seek rewards from actual
efficiency.
Uncreative leaders will fall behind. They are always embrace new things in an ever-changing business
environment.
Managers maintain current success, refine existing skills and apply methods that have been proven
through experience.
Managers maintain control over employees to maximize their ability to create products and increase
profit.
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8. Leader coaching, manager direct guidance.
The leaders believe and create conditions for their subordinates to develop freely. Leaders do not tell
their employees how or what to do until they feel it necessary.
The manager micro-manage and gives instructions on how to complete them for their team.
In short, both are important. Managing means leading, getting work done, taking responsibility and
running. Leadership is about creating influence, guiding direction, processes, actions and attitudes.
Pham Nhat Vuong, a visionary, a great leader. When established VinGroup, the original mission
statement was “To create a better life for Vietnamese people”.
In order to do that, he creates an eco-system of Vin, which include: VinHome, VinSchool, VinMed,
VinCom, VinMart, VinFast, VinSmart, … to name a few. Each company bring innovations in medical,
education, commerce, … And each company is a respond to each aspect of the Vietnamese people life.
Instead of organizing everything in each company, Pham Nhat Vuong appoint people with relative
expertise into guiding each sub-company.
Furthermore, He willing to invest what serve the vision for the company for example, he invested into
European standard automation line for VinFast with around about 1000 ABB automatic robots.
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Management functions and leadership roles
Managerial functions
1. Planning:
The manager plans out a future action plan & pre-decides the directional action collaboration that
will best achieve previous standards. Decision making is the typically part of planning process.
2. Organizing and Staff:
Organizing is the process of bringing together available resources. Organizing includes assigning
activities and organizing work into specific activities and duties.
Divide operations into divisions or some other rational subdivision.
Staffing is to ensure that the requisite the available human resources to achieve the organizational
objectives.
Staffing includes:
o Manpower Planning
o Recruitment, Selection & Placement.
o Training & Development.
o Remuneration.
o Performance Appraisal.
o Promotions & Transfer.
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3. Leading:
Leading involves motivating others to accomplish organizational goals. It includes energizing,
directing, persuading others, and developing a vision. Leading focuses on empowering people and
bringing about change.
4. Controlling:
Controlling involves comparing real output with a predetermined standard. Lower-level
administrators are more involved with day-by-day planning. Entry-level employees are likely to
require more support than higher-level
Leadership roles
1. Strategist: Creating a strategy for your business and the work you and divide mission to your team
members.
2. Communicator: The ability to express ideas to your staff, the media, and your executives. Related
actions include: sending, running or participating in a meeting and making a phone call with a short
email.
3. Innovator: Constantly creating fresh ideas.
4. Coach: Provide opportunities for the workers learn and succeed. Positive and constructive feedback
are encouraged.
5. Delegator: Recognize that someone else can do a better job or mission than you can. Accept outside
help.
6. Adaptor: Versatility. Be able to alter course if needed, adapt to the condition that are evolving.
7. Networker: Keep in touch with previous partner, introduce yourself to potential clients or seniors.
➢ Great leaders who manage to juggle their duties would achieve great success. Take your duties
seriously, investing time and effort on each individual role.
VinGroup owned about 1000 ABB European standards automatic robots in Cat Hai Economic Zone - Hai
Phong.
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Source: https://tinyurl.com/y5nubhew
In terms of staffing, Vietnamese people has little to no expertise in car engineering, Mr. Vuong has
persuaded the idea of hiring foreigner expertise in the field of automobile production from BMW,
General Motors, Bosch to join in VinFast’s management board. Vingroup has recently appointed James B.
Deluca - former vice president of global manufacturing of General Motors as General Director of VinFast.
This helps strengthen the workplace or business systems.
Vingroup integrated AI human resources management. By using deep learning model to train and
automatically validate the movements of workers through complete technology solutions, including:
intelligent wearable devices, artificial intelligence infrastructure, tools for business management and
optimization. This helps increasing 25% of labor productivity according to the Vantix test.
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• Scientific management: Using scientific methods to improve individual productivity. The
responsibilities include select, train and help. This help increase work performance. Worker has
the responsibility to accept and perform accordingly.
• Administrative management: Founded by Henri Fayol and Max Weber to demonstrate the use of
management principles in structuring and managing in an organization.
▪ Henri Fayol: Developed 14 management principles in the concept of “Universality of
management principles”
Source: https://tinyurl.com/yyple8al
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Source: https://tinyurl.com/yxw3kbt5
Source: https://tinyurl.com/yyszcwsd
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Advantages Disadvantage
• Illustrated the importance of • Don’t take the social context of work and
compensation for performance staff’s need into consideration.
• Introduced the careful and systematic • Don’t recognize the variation of individuals
study of tasks • Ignore worker ideas and suggestions.
• Stated the importance of personal
selection and training.
Behavioral approach
The behavioral management theory addresses the human dimension of work. It is believed that a
better understanding of human behavior at work, such as motivation, conflict, expectations, and
group dynamics, improved productivity.
The Hawthorne studies:
Hawthorne effect stated that people respond differently when received attention. In the experiment,
worker perform better because of good management.
Douglas McGregor:
• Theory X: Traditional assumption about people who dislike work, avoid responsibility and
little to no ambitious.
• Theory Y: Opposite to theory X, these people accept responsibility, self-help, innovative.
Maslow’s need hierarchy:
Said in the theory of human needs had three assumptions:
- Human needs are never completely satisfied.
- Human behavior is purposeful and is motivated by the need for satisfaction.
- Needs can be classified according to a hierarchical structure of importance, from the lowest to
highest.
This requires the manager to think about the method to satisfying a wide range of worker so they
feel motivated.
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Source: https://tinyurl.com/yyszcwsd
Advantages Disadvantages
Quantitative Approach
An approach that focuses on the use of quantitative tools for managerial decision-making the
quantitative management viewpoint focuses on the use of mathematics, statistics and information aids
to supports managerial decision making and organizational effectiveness.
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Advantages Disadvantages
• Help the manager solve difficult problems • The answer usually less precise
• Management science techniques are used • Data based on human estimate are still
to predict factors. the majority.
In the 1960s, introduced Systems Approach, this viewed aspects of organizations as in interrelated
system. A system (an organization) is a set of interrelated parts that act as a whole in pursuit of common
goals.
This illustration demonstrates the main components of a system as well as how a system work from
taking input to providing output.
• Entropy: System run down and die if it doesn’t receive fresh input.
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• Synergy: Organization as a whole working together is more effective than each parts working
independently.
Advantages Disadvantages
Advantage Disadvantage
Leadership Theories
Leadership theories are schools of thought brought forward to explain how and why certain individuals
become leaders. The theories emphasize the traits and behaviors that individuals can adopt to boost
their own leadership abilities.
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1. Trait theory:
Scholars researching the trait theory try to identify leadership characteristics from different perspectives.
They focus on the physiological attributes such as appearance, weight, and height and demographics
such as age, education, and familiar background and intelligence.
In 1974, Stodgill identified some aspect that differentiate leader from non-leader:
2. Behavioral theories:
Behavioral leadership theory states that anyone who acted by their own actions or their behavior causes
others to fulfill their intentions is truly a leader.
• Initiating structure: role of leader in defining his/her role and roles of group members.
• Consideration: leader’s mutual trust and respect for group members’ ideas and feelings.
There are two groups of behaviors theories that are closely related:
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• Role theory: borrowing concept in sociology. It explains how people adapt to specific
organizational and leadership roles.
• Managerial grid: Developed by Drs. Robert R. Blake & Jane S. Mouton. They believed that
managers have different leadership styles which then leads to 2 type of leadership:
Concern for Production: Tasked oriented, focus on results and mission accomplishment
Concern for People: Avoid conflicts, people in this type usually have friendly relations
with others.
Advantages Disadvantages
• Easy to implement, simple to understand, • Not easy to make people change their
quick results minds
• Small steps shape the behavior • Customers can object back.
• The results can be measured • Does not consider the customer's
• Suitable for any age and ability thoughts
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3. Participative theories:
Participative theories are a style of leadership that requires employees to participate in or contribute to
most or all of a company's decisions. Employees are provided with pertinent information regarding
company affairs; and the option with a majority vote will be chosen as the next action the company will
take.
Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified three
different styles of leadership, in particular around decision-making:
• Autocratic style
• Democratic style
The leadership responsibilities are shared by all. This is useful in business where creative ideas
are important. Highly motivational. Though it makes coordination and decision-making time –
consuming and lacking in overall direction. Furthermore, it relies on good team work and good
interpersonal relations
Advantages Disadvantages
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• Reduce costs
4. Contingency theory:
This theory holds that there is no optimal leadership style. Instead, leadership effectiveness is based on
problem-solving skill. This effect is the result of two factors - "leadership style" and "handling of the
situation in a positive direction".
This leadership model assumes whether the team's performance is effective or not depends on the
leadership style. In this model, Fiedler assumes that the leader's style is unchanged and he offers the
following leadership styles as well as situational factors.
• Relationship-oriented leader.
• Task oriented leader.
Least-Preferred Co-Worker (LPC) Scale: way to define leadership style using a built-in Fiedler ruler called
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High score: a relationship-oriented leadership style.
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Source: Essential in management 9th edition – Andrew Dubrin
Situations I, II, III, VII and VIII is suitable for task-oriented leader
Advantages Disadvantages
• No general rule or best way to manage • Not completely liberated from criticism.
• The centralized preventive approach • Insufficient management may make
allows an organization to work in different mistake
conditions.
• Management is only contingent
5. Situational theory:
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Situational theories of leadership work on the assumption that the most effective style of leadership
changes from situation to situation. To be most effective and successful, a leader must be able to adapt
his style and approach to diverse circumstances.
Advantages Disadvantages
• Leaders can change their style at any time. • Not true in all situations.
• Simple and easy to apply. • Put too much responsibility on the
• Quickly assess a situation and make a manager
decision. • Not applicable in many different cultures.
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Đỗ Hoàng Minh Khôi
• Once famous on Youtube with the
nickname: "He Always Smiles"
• The founder of All Day Coffee
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Bill Gates is overbearing, and Gates will ask his employees to present and report their ideas and findings
to him on a regular basis. According to Who is Bill Gates, he required so much control that he even
signed off the expenses of Steve Ballmer who was second in command. He is a master of individual and
team operations. The book also told us that he is autocratic style leader and this style of leadership is a
style that is very effective for use in emergency situations or where a quick decision is needed. Much of
Bill Gates' success has been attributed to his quick decision-making process. With all that said, he
belongs to the participative theories
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Phạm Nhật Vượng
Pham Nhat Vuong is an icon representing the system approach for Vinfast, with huge input capital, he
heavily invested on robotics and automation and developed on human resources. With abundant human
resources, he managed and arranged positions while also creating a production line in Vinfast, thereby
promoting human resources and technology together.
Input:
With the resources from Europe, which include automobile production expertise from BMW, General
Motors, Bosch. The engine from BMW, and the available human resource and newly established
production line plus the partnership with General Motor Chevrolet garages.
Output:
With 19,485 cars was sold in 2020, combine with the smartphone sale, they generated around 6.16
trillion VND 2020 according to VNExpress. Vinfast rank 7 in the national vehicle market. With the positive
feedback on sales and from customers, Mr. Vuong has demonstrated a good system approach
management and ready to take on new challenges.
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Source: https://tinyurl.com/y5alkypz
Within groups of subsidiary companies, Vingroup operates eight core companies, each organized into distinct
profit-and-loss centers. Subsidiary companies maintain self-governance power in eight businesses and have their
own balance sheets.
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Combine with the evidence is mentioned in page 19 that he convinced Mr. Jame B. Deluca-former vice president
of global manufacturing of General Motors as General Director of Vinfast.
With all these evidences, I think Mr. Vuong is belong to participative theory
As can be seen in this illustration, the automobile is a dynamic industry with many changes in politics,
tax, market, ...
Source: https://tinyurl.com/y3znwrsy
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Another aspect is the fierce competition from the market. It saturated with imported car brands and
manufacturers.
Source: https://tinyurl.com/y287vm2s
Internet changed the market, according to this statistic, more than 68,17 million people used internet.
That more that 70% of Vietnamese population. If leverage this, there will be more benefit.
➢ With all these in mind, I think someone like Mr. Vuong is suitable for automobile industry due to
his system approach, using technology in relevant field and participative theory to convince
someone work for his vision.
Conclusion
Throughout this report, people will have a clear sight about leaders and managers, which has a lot of
aspects such as: characteristics/traits, styles, roles, and functions. Based on this report, people can
distinguish how to be a leader and a manager, and there are several factors between leaders and
managers. Also, the investigation of several successful managers and leaders is displayed to bring an
overview to people for meeting the realistic. All in all, not all of leaders and managers are similar, they
still have some differences to make them be unique and successful.
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Reference
What is Leadership? Leadership South West Research Report 1 - Richard Bolden (July 2004)
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