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FINAL REVISION
planning, organizing, motivation, leadership (essay)

A. Planning
Planning is a continuous process of setting up the goals, establishing strategies
and making plans to achieve the goals.

Planning includes the answer for 5W1H

1. Goals
Goals is the desired/ expected outcomes of individuals, groups, and
organizations

a. Characteristics of a good goals

🐸 SMART + W(ritten down) C(hallenging) Principle

b. Two ways of setting up goals

Traditional Goal Setting MBO

- Goals set by top managers flow down - A process of setting mutually agreed-
through the organization and become upon goals and using those goals to

FINAL REVISION 1
 sub-goals for each organizational area evaluate employee performance
- Employees follows - Employees involves in setting goals

- Goals are general and do not follow - Goals are specific and follow
SMART principle SMART principle

- Appropriate when: - Appropriate when:

+ X people + Y people

+ Make quick decisions + Have time for employees to

+ Important goals involve

+ Operational goals

2. Strategy
a/ Definition

Strategy is a set of actions in a particular way to achieve the goals in long-

term.

Strategic Management is a process of planning, organizing, leading, and

controlling the strategies to achieve the goals.

The aims of Strategic Management are to compete with rivals and attract the
customers.

b/ Steps in strategic management

STEP 1: Identifying the organization’s current mission, goals and strategies ⇒ the
most important step
STEP 2: Doing an external analysis
STEP 3: Doing an internal analysis
STEP 4: Formulating the strategies
STEP 5: Implementing strategies
STEP 6: Evaluating results

c/ Strategic management analysis tool 1 - SWOT MATRIX

S W

O SO WO

T ST WT

FINAL REVISION 2
 d/ Strategic management analysis tool 2 - Value Chain Model

e/ Levels of strategy

Corporate level

Stability strategies

Retrenchment strategies

Growth strategies

* Concentration growth - 1 SBU

* Diversification growth - more than 2 SBU

- Classified into related and unrelated diversification

⇒ Open new business

⇒ Doing M&A (merge + acquisition) - chien luoc xac nhap va mua lai
* Integration growth:

- Vertical integration: towards managing and controlling the whole supply

chain

- Horizontal integration: cooperate with another firms in the supply chain

Example:

1. Vietcombank opened new branches in Haiphong. - concentration growth

2. Coca Cola launched Dasani mineral water. - related diversification
3. SHB merged with Habubank. - related diversification
4. Kinh Do bought Wall ice-cream from Unilever. - related diversification
5. FPT opened FPT University. - unrelated diversification
6. TH true milk opened a cow farm in Nghe An. - vertical integration
7. HP merged with Compaq. - related diversification

FINAL REVISION 3
 8. Vingroup launched Vinfast cars. - unrelated diversification
9. Sony cooperated with Erikson to produce cellphone. - horizontal integration
10. Toyota and GM opened a factory in California to produce cars. - horizontal
integration

Competitive level
*Cost leadership
* Differentiation

*Focus

Functional level

R&D

Manufacturing

Marketing

Human resources

Finance

B. ORGANINZING
Organizing is a process of allocating and structuring resources and designing
organizational structure to achieve the goals

Organizing structure is an official framework in which jobs within the

organization are divided and grouped

The design of O.S

- Division of labor
- Departmentalization
- Chain of command
- Span of control
- Centralization and Decentralization
- Formalization

1. Division of labor

FINAL REVISION 4
 2. Departmentalization
Five types:

- Functional

- Product
- Customer

- Geographic
- Process

Cross-functional Teams:

3. Chain of command
Chain of command is an authority line which starts from the top level and comes
to the bottom level within an organization.

In a chain of command, the relationship of report is described and there are 2

items: authority and responsibility for each position.

Line authority refers to the relationship of direction while staff authority refers to
the relationship of support.

There are 2 principles to design the chain of command including: unity of

command and acceptance of authority.

4. Span of control
* Factors:

- ability and exp of managers

- ability and exp of employees

- nature of the job: similarity - complexity - standardization

- organizational culture
- technology

- leadership management
* new and complicated → small: supervise tightly

* employees are Y people → large: need little supervision and can be left on their
own
* managers are experienced → large

FINAL REVISION 5
 * easy and similar → large: employees can do jobs themselves
* technology of the firm is modern→ large: technology support the managers

5. Centralization or Decentralization

6. Formalization

C. MOTIVATION
P=MAO → Performance = Motivation * Ability * Opportunity

5. Equity Theory of Stacey Adam

People often compare:

Their ratio vs Other’s ratio

What they give vs What they get ~ Outcomes vs Inputs of them

6. Expectancy Theory of Victor Vroom

People often expect 2 things:

Effort⇒ specific performance

With that performance ⇒ attractive rewards

FINAL REVISION 6
 The Expectancy model includes three variables or relationships:

D. LEADERSHIP
Leadership is the process of leading a group and influencing that group to
achieve its goals.

Types of power:

Approaches to leadership

1. Traits approaches

FINAL REVISION 7