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INTRODUCTION

This case study's conclusions explore management and leadership theories and concepts and
how they affect an organization's success. Additionally, a crucial area to examine is how various
leadership and management philosophies affect the organizational culture.

TASK 1
   

I. Theory of leadership according to the management activities in the given teams.

1. Trait theory
Characteristic approach was one of the earliest notions of leadership. Despite the fact that it is
not a thoroughly established theory with well-defined assumptions, the typical technique served
as the basis for the majority of the first leadership research. This technique focuses on the
physical and psychological characteristics, competencies, and values of leaders, as well as their
physical and psychological attributes. It exclusively examines leadership from the perspective of
the individual leader. This strategy implicitly assumes that qualities lead to universally applicable
behavioral patterns. In other words, leadership skills are viewed as enduring traits that people
are born with and that remain relatively constant throughout time. (Nawaz, Z. A. K. D. A., &
Khan, I, 2016)

2. Behavioral theory
Behaviour theory is the upgrade of the trait theory and its focus on the leader’s actions and
behaviour in the workplace. Unlike the trait approach, this theory suggests that the
characteristics of a qualified leader can be copied and mimicked by other leaders. The leader
isn’t born and can be developed by learning and equipping the skills and personality traits
instead of inheriting them. Furthermore, each circumstance needs a different style of leadership,
and the leader can choose a role model and implement the required skills to become the leader
they want to be. Despite that, there are dozen of circumstances in an organization and
behaviour theory does not suggest what competencies are appropriate for which situation, the
leaders have to determine and figure out the competencies which they need by themselves.
Blake and Mouton created the managerial grid using two dimensions below

- Concern for people is on the verticle axis to represent the interest of the leader in the
member’s needs while planning and making decisions to achieve the work
- Concern for the result is on the horizontal axis to demonstrate the concentration and
attitude of the leader toward the efficiency and productivity of the organization

There are 5 styles of leadership from the managerial grid of Blake and Mounton (Burke, W.W,
2017):

- Impoverished management: Little effort and concern for both people and results
- Country club management: high concern for people’s needs and satisfaction but little
concern for productivity and efficiency
- Team management: high performance, achieving tasks successfully and high concern
for the relationship in the workplace.
- Task management: ignore the needs and emotions of people and focus mainly on the
outcome result
- Middle-of-the-road management: the performance is adequate but not too successful
and balances the organization’s result and the people.

3. Contingency theory
According to the Contingency Theory of Leadership, a leader's effectiveness is contingent on
how well his or her leadership style matches the situation (Leadership Theories). In other words,
the leader must determine his or her optimal environment and leadership style. The following
difficulties are addressed by the contingency theory:
 According to Fiedler's Contingency Model, there is no one optimal leadership style.
 According to Fiedler's Contingency Model, a leader is effective when his or her
leadership style conforms to the circumstances. (Nawaz, Z. A. K. D. A., & Khan, I, 2016)

Fiedler's Theory of Probability


The objective of the concept is to match a leader's style with a fitting environment, not to make a
leader conform to a circumstance (Gupta, 2009). It is necessary to identify a leader's style in
order to utilize this concept to its maximum extent (Gupta, 2009).

The Hersey-Blanchard Mannequin


According to the Hersey-Blanchard Model, there is no superior leadership style. Instead of
focusing on working conditions, the approach encourages leaders to tailor their techniques to
the followers' skills and abilities. Effective leadership, according to the paradigm, is relevant to
both relationships and tasks. It is an adaptive, flexible strategy that encourages leaders to
consider their followers — whether individuals or a team — before considering the
circumstances that affect the work environment. They may be certain that their efforts will be
fruitful. Since it depends on a leader's capacity to make choices, the Hersey-Blanchard model
adopts an individualistic rather than collective method.

II. Different theories of management in relation to the management and leadership


activities in the given teams.
Management is how a leader operates and controls a group of people to do a task that benefits
the firm. During the management process, the leader (sometimes including employees) has to
draw up a plan or a strategy to achieve goals, set objectives and manage resources.
People easily assume that management and leadership are the same which is seriously
confusing. Leadership and management support and harmonize with each other. The former is
about motivating and inspiring and relating more about the relationship between the leader and
their employees while the latter focus more on supervising, organizing, planning, controlling and
coordinating,... Furthermore, management has an official position in the organization and aims
to preserve the system, leadership is a broader term for management and achieving goals by
inspiring other employees (Nadrifar, A., Bandani, E. and Shahryari, H, 2016).
The function of management (Conkright, T.A, 2015):
- Planning: Managers have to draw up a plan for the organization to achieve their
goals (what they will do, what they want to achieve, and how to achieve it). If the plan is drawn
up carefully, it can minimize the overlapping and wasteful resources. During this process,
innovative ideas are much more likely to come up.
- Organizing: Managers have to check the process and quality of the employee's performance
after delegating tasks to them.
- Leading: Managers instructs, motivate and give advice/demand to help their member
accomplish the work delegated. They have to make sure the employees and the task are all in
the right direction and harmonious.
- Controlling: comparing the performance and productivity to the objective, to see whether they
achieve it or not and to clarify the way the employee does the tasks as planned in terms of the
organization's rules and procedures.

1. Classical approach
According to conventional management theory, equipment and tasks take precedence over
people. Consequently, this strategy is often viewed as aiming to maximize the organization's
structure and mission through planning, technological requirements, or management principles.
Therefore, the strategy should include formal structure and behavioral assumptions.
Researchers have split the traditional management method into three broad categories:
bureaucratic management, administrative management, and scientific management. (Daft, R.
L., 2015)

2. Behavioral approach
The behavioral approach places a greater emphasis on the human element than the
conventional management method, which focuses more on tasks and equipment. According to
the behavioral approach to management, managers should emphasize individual behaviors,
collaborative processes, and the significance of individuals in the process of accomplishing
goals. Managers attempt to enhance team performance in order to accomplish shared
objectives, such as staff training and development, or to give rewards and incentives for
workplace innovation. The two components of this strategy are the human relations and
behavioral science strategies. The human relations technique examines the psychological and
sociological aspects that may have an impact on employees in order to resolve the problems of
subordinates in an organization. The behavioral science technique refines the human relations
strategy, which emphasizes the nature of the task and the employee's level of experience and
expertise. To get the best results with this method, managers must inspire, lead, share ideas,
motivate employees, and motivate themselves. (Daft, R. L., 2015)

3. System approach 
The systems management method integrates an organization's internal and external contexts.
According to the systems approach, every aspect of a company, including its organizational
structure, technology, personnel, and other elements, will influence its operational effectiveness.
In addition, it is argued that each of the aforementioned components — Input, Process, Output,
Feedback, and Environment — are intricately interrelated. The systems method often divides an
organization into three subsystems, including the following: 1. Organizational structure: the
leader is responsible for distributing labor, tasks, power relationships, and developing
communication channels; 2. Technology system: identifying the activities to be performed and
the protocols, techniques, and tools required to complete each task; 3. Personnel system:
identifying the personnel who will perform the tasks and their qualifications; 4. Personnel
system: identifying the personnel who will perform the tasks and their qualifications; 3. social
system: how group members connect and collaborate. (Daft, R. L., 2015)

III. Discussion

Mr Nguyen Lam Hoan uses the behaviour theory for Eastern Company because of his action on
three areas: common task needs, team maintenance needs and individual needs
- The common task needs: he set the sales objectives for the team to accomplish and at the
group discussion where members sit in a circle together to allocate the task and resources
daily/weekly, and they also revise the performance to improve.
- Team maintenance needs: every team is encouraged to have a sense of identity and set a
standard to achieve
- Individual needs: Mr Nguyen Lam Hoan give cares for his team member as the group
discussion hosted by him also gives feedback and advice to improve personal performance and
overcome mistakes. Furthermore, the way he motivates and satisfies his member is impressive
as he assigns them more duties and responsibilities to be a co-ordinator for other members.
Based on the managerial grid of Blake and Mouton, Tuan Anh in the Dragon team is considered
to be middle-of-the-road management as he satisfies the employee’s needs and create
opportunity for them to change task, and learn new things and knowledge. He also maintains a
good connection with his members at the workplace and is harmonious. The outcome of the
Dragon team is not as effective as the expectation. Tuan Anh also applies human relation
management and centralizes the centralise the psycho-need and relationships in the workplace.
For instance, his employee can have a chat with their colleague every morning before starting
work, this can help them to relieve stress and tension and have more job satisfaction
Tran Minh Quang is task management in the managerial grid as he and his team are the most
effective with the highest productivity in the Eastern but he failed to satisfy the needs of the
Eagle’s members. The Sales Director has received several complaints about their development
of career since they do not learn anything when doing the same task over and over again.
Furthermore, Eagle’s member has no chance to involve in the decision-making process, they
just receive the order and implement it. These things also reflect the classical management of
Tran Minh Quang.
Eastern Company fails to balance the result of business with the individual need as they put too
much weight on the outcome. Consequently, they do not recognize the employee’s problem
which can lead to a decrease in productivity and can’t motivate them to overcome the problem.
To a certain point, the member may feel overloaded or stressed and can not devote all their
potential and ability to the business. Because of that, the revenue of Eastern is forecasted to
decrease from 2300 to just 2000, more than 13%.
Applying behavior theory and human relations (Dragon team) make the Eastern group a
favorable environment to develop in the long term and attract lots of candidates when recruiting.
The number of Eastern members experienced an upward trend in the period from 2018 to 2021.
In 2022, the number of employees in Eastern is forecasted to be approximately 580 which is
nearly two times higher than that figure for 2018, just 298. In 2021, the number of Eastern
employees had a dramatic increase to 537 which was 30% more than the previous years.

The impact of the application of leadership and management theories on the


effectiveness of the given organization

The leadership relationship hypothesis stresses Tuan Anh and focuses particularly on their
interactions with other Dragon team members. They frequently serve as mentors for employees,
conversing with them and seeking to solve their problems. These leaders care about making
work as enjoyable as possible for as many people as possible and fostering a positive work
environment. Managers that emphasize connections achieve greater employee success
(Redpath et al., 2008). This restricts the job options available to workers, restricting them to
specified work frameworks. As seen by the Eagles' track record of accomplishment, this theory
appears to be highly successful; leaders with substantial authority may appear to be highly
effective and quick to complete tasks. However, most workers despise power dynamics. They
desire a leader that supports them and works with them rather than over them. Consequently,
the most serious criticism of this strategy is that it fails to stimulate and encourage individuals,
leaving them feeling instead restricted. The rigors of the workplace and Quang's style of
leadership drove Huong Mai to rebel and request a transfer to Tuan Anh's team. This may result
in low morale and cliquish work settings. Due to Quang's leadership style, employees are
continually exhausted, agitated, and tempted to leave the business. If Quang's Eagle team
colleagues are overworked or fatigued, he should encourage them and provide them additional
management tasks.

TASK 2

I.The influence of different leadership and management styles on the culture of the given
organization.   

1. Leadership definition
Leadership is the act of inspiring or influencing others in order to direct them toward the
accomplishment of a certain goal. In addition, leadership is considered as a social activity, and a
leader is a someone who influences others via behaviors such as directing, providing orders,
inspiring or instructing, etc. A true leader is someone who has the disposition and ability to
encourage others to follow them without resorting to force. The results and quality of a team,
which is viewed as a manager's responsibility, is one of the most crucial determinants of a
leader's performance. Consequently, each leader's leadership style is distinct and has varying
effects on the organization and subordinates. Studies indicate that popular leadership styles
include the Dictatorial style, the Autocratic style, the Democratic style, and the Laissez-faire
style; the Goleman style of leadership; and the Transformational and transactional Leadership
styles.(Laub, 2018)

2. Transformational and transactional Leadership style


 Transformational Leadership style
Transformational leadership is a kind of leadership in which the leader influences organizational
and social transformation. Through this leadership style, the leader strives to foster innovation in
order to offer greater value and positive outcomes to subordinates and give them the
opportunity to become future leaders. This leadership style promotes subordinate motivation,
morale, and productivity, which is an advantage of adopting it for the organization's operations.
To achieve the organization's goals, unify and modify the environment and organizational
culture by engaging and analyzing the personality of each employee in order to divide the work
among them in the most productive manner. It is simple for leaders and organizations to strike a
balance between short- and long-term objectives. Four primary factors are used to evaluate
transformative leaders: 1. Inspiring inspiration is the process of guiding and delivering specific
meanings and challenges to subordinates in order to boost employee morale and value.
Intellectual stimulation: promotes originality and resourcefulness, focuses on exploitation and
problem-solving rather than laying blame, and is adaptive; Earn the respect and confidence of
subordinates by satisfying their needs and desires. Personal consideration: offer advise and
direction to subordinates, and act and reward fairly in accordance with each individual's talents.
(Samad, S., 2012)

 Transactional Leadership style


A transactional leadership style is one in which incentives and rewards are used to motivate or
enhance subordinate productivity. As a result, executives with this style usually focus on basic
management activities, such as managing, organizing, and formulating short-term objectives for
the organization. The transactional leader will inspire and motivate personnel by addressing the
specific interests of each subordinate. In transactional leadership, the leader creates a system
of rewards and punishments depending on the culture of the firm. To ensure that all objectives
are satisfied, there must be a regular exchange between task performance, reward, and
punishment. Typically, the previous leadership style is implemented in four ways: 1.
performance-based remuneration; 2. exception-based active management; 3. exception-based
passive management; 4. management flexibility (Jung, D.I., 2001)

A strong leader must be able to strike a balance between transformational and transactional
leadership styles since each type contributes unique qualities to human resource management.

3. Discussion
Tuan Anh in the Dragon team of Eastern is a transformational leader as his main concern is to
provide for individual needs such as gathering the team to discuss and assign tasks every
morning. The Dragon team’s member is very self-controlled and independent when making the
decision. These members can choose the task they want, so they can earn new knowledge and
skills and easily get rid of boredom which is one of the factors of stress, and lack of motivation
at the workplace (Hooff, M.L. and Hooft, E.A, 2014). The intellectual stimulation can be seen
easily in Tuan Anh as his member can work at their own pace and have no need to rush even
though the outcome is sometimes not successful as they expect.
Tran Minh Quang is considered to be a transactional leader as his disciplined background and
some members want to develop themselves more by involving in discussions and coming up
with ideas instead of just following the order made by their leaders since whenever the team
member is about to meet the deadline or likely to fail to accomplish it they tend to receive the
order and demand from Mr Quang. They also complain to the company that they have to do
their routine task every day and do not learn anything for the development of their career. The
transactional style of Tran Minh Quang results in the highest productivity among other teams but
it might be difficult to make the member loyal to the company and the turnover rate can be
sharply high. Furthermore, obeying his demand, his group can not absorb new ideas or
innovative ways to accomplish and might be left behind in the long term. Looking at the opinion
of Huong Mai and other members of Eagle, they all feel the same way that they want to
participate in making decisions and swap tasks. Tran Minh Quang should adjust his style to be
more flexible and balance the results and individual needs, once the problem of the employee
needs is tackled, they tend to work much more effectively.
Eastern’s transformational leaders have brought a positive atmosphere to the workplace, and
most of the employees can contribute their ideas to the development and improvement of the
organization at the team gathering weekly (for Dragon team is daily), they are forced to broaden
the creativity and brainstorm for the solution. Combined with the fact that they can switch tasks
with their colleagues to learn and equip new skills.

4. The impact of leadership and management styles on decision making in the given teams
Due to his democratic style of leadership, Tuan Anh's team members are free to make their own
decisions and work at their own pace. This technique encourages members of the Dragon team
to collaborate on shared responsibilities. This leadership enables them to integrate and bond
more effectively. In addition, Tuan Anh's leadership style helps employees better understand
one another in order to create the highest quality work and be willing to commit to the company.
Consequently, the plan or campaign is created as fully and objectively as feasible. The Dragon
team meets to discuss what's working well and what's not, as well as to suggest ways to
improve. The team is then responsible for implementing its suggestions. As a result, Tuan Anh
can solve challenges more effectively. Numerous people voice their ideas and opinions on a
subject. From there, he may instantly determine the most effective method for mitigating risks
and alter duties accordingly. Tran Minh Quang is aware that the company's concept strongly
favors a more adaptable style of leadership. However, he must frequently issue orders and
demands when deadlines are approaching or the team is on pace to miss its objective. Tran
Minh Quang's authoritarian leadership style is articulating the ideal approach and telling people
to follow his example, which prevents businesses or endeavors from stalling due to a lack of
order or consistency. In such situations, autocratic leaders might force citizens to meet
deadlines. Some projects require exceptional leadership to be accomplished efficiently and
quickly. In addition, this leadership style generates positive pressure, enabling individuals to
develop their skills and fulfill their tasks. Ultimately, this will improve the company's overall
performance. Tran Minh Quang, on the other hand, must demonstrate leadership flexibility, as
persons who misuse this authoritarian leadership style are frequently described as conservative
and autocratic.

II.The factors that influences the development of the culture in the given organization

Organizational culture is the system including practices, expectations and values held by the
member of the organization to differentiate themselves from other organizations. It can also be
understood that a great culture which symbolizes positive competencies and attitude can help
you to perform at your best potential, and vice versa. Having a significant culture help to
strengthen the commitment and consistency of employee behaviour (Schein, E.H, 2004)

According to Schein, there are three levels of an organizational culture


- Artifacts: the things you can see such as office layout, logo and equipment: Eastern
Company provides equipment to diagnose images, test chemicals, resuscitate &
emergency and blood bank. They have a great welfare policy for the employee: free
lunch, social insurance, team building activity, training programs and 5-star resort travel
packages. Eastern also have some club for the employee to take part in such as
badminton, swimming, and soccer...
- Espoused values and beliefs:
Eastern Company set codes of value and service quality standards which are a positive
attitude, professional communication, agile behaviour, dedicated service, and quality
image. Eastern’s vision is to become the best company providing medical equipment in
Vietnam and its mission is to bring cutting-edge equipment to hospitals and clinics in
Vietnam to enhance the quality of the healthcare system. The core values of Eastern are
passion, trust, ethics, sincerity and transparency.

Four types of organizational culture by Handy and Harrison model (Cacciattolo, K, 2014).
 Power culture is most seen in small organizations, especially family businesses where
the power and decision are in the hand of a few people and other members have to obey
the order. Members outside the family network hardly have any power or influence.
 Role culture also known as bureaucratic can be seen in government, public utilities or
local authorities. Organizations with this culture apply the paper system of the job
description and policy as well as the obligation is extremely vital. Furthermore, a
person's positional authority, what they're responsible for, and who reports to them all
contribute to their power.
 Task culture is when the focus of the organization is on a certain project. Firms with
Task Cultures, similar to Role Cultures, may have highly detailed workflow
documentation, and considerable interpretation and judgment are required to adapt the
methodologies to specific situations. A task team is necessary to make quick and meet
future needs. Frequently, the team bring members in to share ideas to accomplish the
vital task.
 Person culture is a form in which each person decides on their work, with their own set
of rules, methods, and mechanisms for collaboration. Each person has the right to
complete self-determination over his or her affairs; shared consequences; power is
primarily based on ability (Cacciattolo, K, 2014).

History:
Founded in 2000 by Nguyen Xuan Thanh, Eastern is worldly-wise in the supply and distribution
of equipment for the Vietnamese health industry. Dr Nguyen Xuan Thanh believes that all
Vietnam’s citizens deserve to have an approach to the finest healthcare support service and
also support, taking care of the patient on time is their priority. After 20 years in the field,
Eastern has established several subsidiaries including MaxCare Home for health care and
beauty products, Trang An for providing the logistic, Medic for distributing advanced medical
equipment, Lab House for consulting room and testing, and Sunflower for the operation of the
building.
Size:
In 2018, Eastern only had 298 employees, but this figure has increased sharply over the past 4
years and it is expected to be doubled this 2022 to 580. Moreover, Eastern has partnerships
with more than 2000 hospitals from north to south in all 63 cities of Vietnam including some of
the leading hospitals: Bach Mai, Viet Duc, 108,... They also partner with the 20 biggest brands
producing medical equipment in the world. Since the scale of the Eastern keeps enlarging, they
have to recruit more qualified and professional employees to prevent their workers from being
overloaded and the size also hugely affects the leadership and management styles as well as
the culture of the Eastern.

Control system:
The income of Eastern’s employees is based on the 3P system which is Position, Person and
Performance. The position is the basic salary of the workers, Performance is evaluated by their
effectiveness, productivity and KPIs, and the Person is based on the ability of the workers (if
their performance is outstanding and astonishing the worker can get more rewards). Combined
with the behavior approach and human relations, it creates a positive culture for Eastern and
can attract many applicants who dreamt of working in an organization like Eastern.

Strategy:
Eastern provide their employees with training and promotion route and welfare policy clearly
and combine with a relaxed style of leadership and human relation management they aim to
affirm their leading position in supplying medical equipment. To achieve that goal, Eastern also
believes in these 5 principles: Passion, Trust, Ethics, Sincerity and Transparency.

When a corporate and excellent culture like the Eastern is established in an organization, they
can gain several benefits below (Wilkinson, B, 1990):
1. The employees might be more loyal to the company since it is a great environment for
them to develop their careers.
2. The employees satisfy with their job since they feel their importance to the company in
the making decision process, and achieve the company's success. This is the thing Mr
Quang needs to improve, he might need to empathize with the employees to understand
their needs so that he can address the complaints and help Ms Huong Mai to be better
and more satisfied.
3. The employees understand their roles and function in the organization better
Lastly, corporate culture discriminates the company from other competitors by its traits which no
one has. It can make the employee feel special and have more motivation of working to prove
that they deserve to work for the firm. Mr Tuan Anh should find a way to improve the success
rate of his group in order to compete with other groups. He might consider taking more meetings
and revising the problem more carefully and stopping making the mistake which decreases the
rate.

CONCLUSION

By comparing case studies between Eagle and Dragon teams with two different leadership and
management philosophies from different managers, the report was effective in presenting data
to support the picture. the effect of management and leadership philosophies in a firm on how
well each department performs. Additionally, the research illustrated the advantages and
disadvantages of each leadership and management style for each team, as well as the
outcomes it offers the business, utilizing the case study analysis discussed above.
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