CHAPTER 1: MANAGERS AND YOU IN THE WORKPLACE

I. WHO ARE MANAGERS AND WHERE DO THEY WORK

Who is the manager?
- Manager is someone who coordinates and oversees the work of other people so that organizational goals
can be accomplished.
- Levels of management

- Top manager: managers at or near the upper levels of the organization structure who are responsible for
making organizational - wise decisions and establishing the goals and plans that affect the entire
organization.
- person who make long-term plan
- they will make strategy → direction of the company
- the position with “chief” is the top manager
- E.g: executive vice president, managing director, chief executive officer (CEO), chief operating
officer (COO),…
- Middle managers: managers between the lowest level and top levels of the organization who manage
the work of first-line managers.
- Each company defines different ways
- Manage a function of a company
- Translate strategy (created by top manager) into annual/big project plan
- Every manager solves both internal + external issues
- E.g: regional manager, project leader, store manager, division manager, accounting manager,
financial manager,...
- First-line (frontline) manager: managers at the lowest level of management who manage the work of
non-managerial employees. (= supervisor)
- Working daily (day by day), actually work everyday
- Allocate work to employees
- Directly manage daily jobs
- E.g: shift manager, district manager, department managers, office manager

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Where do they work?
- Organization: a deliberate arrangement of ppl. to accomplish some specific purposes
- Distinct purpose (mục tiêu riêng biệt): a comp. has a distinct purpose through expected goals
- Deliberate structure (cấu trúc có chủ ý): An organization develop a deliberate structure within
which member do they work
- People: each organization composed of people

II. WHY ARE MANAGERS IMPORTANT?

- Organizations need their managerial skills & abilities now more than ever.
- Managers are critical to getting things done
- Managers do matter to organization

III. WHAT DO MANAGERS DO?

- Management: involves coordinating (điều phối) and overseeing the work activities of others so that
their activities are completed efficiently and effectively.
- Efficiency: doing things rights, or getting the most output from the least amount of inputs
- Effectiveness: doing the right things, or doing those work activities that will result in achieving
goals

Management functions
- Planning:
- Setting goals, establishing strategies to achieve goals, and developing plans to integrate and
coordinate activities.
- Organizing:
- Arranging and structuring work to accomplish organizational goals
- Find the right person to do job with the right money

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 - Leading:
- Working with & through people to accomplish goals
- Motivate ppl. to work effectively
- Solve ppl. issue
- Controlling:
- Monitoring, comparing and correcting work
- Tracking jobs, adjust to the need of the organization leading

Mintzberg’s managerial roles and a contemporary model of managing:

- Roles: specific actions or behaviors expected of and exhibited by a manager
- 10 roles are grouped around:
- Interpersonal roles: involve people and other duties that are ceremonial (thuộc nghi lễ) and
symbolic in nature (figurehead - bù nhìn, leader, liaison - sự liên lạc)
- Information roles: involve collecting, receiving, disseminating (phổ biến) information.
(monitor, disseminator, spokesperson)
- Decisional roles: revolve around making choices. (entrepreneur, disturbance, resource allocator,
negotiator)

Management skill (Katz)

- Technical skill: Knowledge and proficiency (khả năng) in a specific field
- Human skills: The ability to work well with other people
- Conceptual skills: The ability to think and conceptualize (khái niệm hóa) about abstract and complex
situations concerning the organization

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Important managerial skill:
- Managing human capital
- Inspiring commitment
- Managing change
- Structuring work and getting things done
- Facilitating the psychological and social contexts of work
- Using purposeful networking
- Managing decision - making process
- Managing strategy and innovation
- Managing logistics and technology

IV. HOW IS THE MANAGER'S JOB CHANGING?

Change in facing managers
- Digital technology:
- Shifting organizational boundaries (Thay đổi ranh giới tổ chức)
- Virtual workplace
- More mobile workforce
- Flexible work arrangements
- Empowered employees
- Work life - personal life balance
- Social media challenges
- Do Hrs need to stalk Facebook, Instagram,.. of employees? (is this an invasion?)
- How would you handle it if you knew an employee badmouthing their line manager on the
internet?
- Will you create a Tik Tok account for your company? Marketing campaign?
⇒ This is a big problem for every company
- Ethics:
- Redefined values
- Rebuilding trust
- Increased accountability (trách nhiệm)
- Sustainability
- Should companies protect their image and social responsibilities?
- What kind of charity should the company do?
Why does the company have to serve the society? → the social expectation is higher than ever
before!
- International company - competition (increased competitiveness)
- Customer service
- Innovation
- Globalization
- efficiency/productivity

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 - Nowadays, Vietnamese enterprises not only compete with domestic companies but also compete
with other multinational companies existing in Vietnam.
How to compete with international companies?
- How do students studying at Vietnamese universities compete with international students?
- Changing security threats
- Risk management
- Uncertainty over future energy sources
- Restricted workplace
- Discrimination concerns
- Globalization concerns
- Employees assistance
- Uncertainty over economic climate

Focus on customer
- Without customers, most organizations would cease to exist
- Managing customers relationship is the responsibility of all managers and employees
- Consistent, high-quality customer service is essential.

Focus on technology
- Managers must get employees on board with new technology
- Managers must oversee the social interactions and challenges involved in using collaborative
technologies

Focus on social media

- Social media: forms of electronic communication through which users create online communities to
share ideas, information, personal messages, and other content

Focus on innovation
- Innovation: exploring new territory, taking risks and doing things differently

Focus on sustainability
- Sustainability: a company’s ability to achieve its business goals and increase long term shareholder
value by integrating economic, environmental, social opportunities into its business strategies.

Focus on the employees

- Treating employees well is not only the right thing to do it is also good business practice

V. WHY STUDY MANAGEMENT?

The universality of management
- The reality that management is needed in all types and sizes of organizations, at all organizational levels,
in all organizational areas and in all organizations no matter where located.

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The reality of work
- When you begin your career, you will either manage or be managed.

Rewards of being a manager

- Attractive compensation (đền bù) in the form of salaries, bonuses and stock options
- Create a work environment for best performance of workers (productive work environment)
- Have opportunities to think creatively and use imagination
- Recognition and status in your organization and in the community
- Help others find meaning & fulfillment of work
- Support, coach, and nurture others
- Work with a variety of people
- Receive recognition and status in community and organization
- Play a role in influencing organizational outcomes

Challenges of being a manger

- Can be a thankless job
- Managers also spend significant amounts of time in meetings and dealing with interruptions (gián đoạn)
- Do hard work
- have duties which are more clerical (văn thư) than managerial
- Have to deal with a variety of personalities
- Often have to make do with limited resources
- Motivate workers in chaotic & uncertain situations
- Blend knowledge, skills, ambitious and experiences of diverse work group
- Success depends on others’ work performance

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 CHAPTER 2: DECISION MAKING

I. DECISION-MAKING PROCESS
Be a better decision maker
- A key to success in management and in your career is knowing how to be an effective decision-maker.

Decision: a choice among two or more alternatives

Decision - making process

Step 1: identifying a problem
Step 2: identifying decision criteria
Step 3: allocating weight to the criteria
Step 4: developing alternatives
Step 5: analyzing alternatives
Step 6: selecting on alternatives
Step 7: implementing the alternatives*
Step 8: evaluating decision effectiveness
* evaluating the implementation firstly. If it’s not effective, the process is looked for the wrongs
- Step 1: identifying a problem
- Problem: an obstacle that makes it difficult to achieve a desired goal or purpose.
- Every decision starts with a problem, a discrepancy (khác biệt) between an existing and a
desired condition.
- Concerning problem identification, effectively identifying problems is not easy.
- Step 2: identifying decision criteria
- Decision criteria are factors that are important to resolving the problem.
- To determine the decision criteria, a manager must determine what is relevant or important to
resolving a problem.
- Step 3: allocating weight to the criteria
- If the relevant criteria aren’t equally important, the decision maker must weigh the items in order
to give them the correct priority in the decision.
- Đánh giá mức độ quan trọng của từng tiêu chí
- Step 4: developing alternatives
- List viable alternatives that could solve the problem.
- Step 5: analyzing alternatives
- Sum up all value of each alternative
- Step 6: selecting on alternatives
- Choose the alternative that generates the highest total in Step 5
- Step 7: implementing the alternatives*
- Put the chosen alternative into action.
- Convey (chuyên chở) the decision to those affected and get their commitment to it.
- Step 8: evaluate decision effectiveness

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 - Evaluate the result or outcome of the decision to see if the problem was resolved.
- If it wasn’t resolved, what went wrong?

II. APPROACHES TO DECISION MAKING

Decision maker: managers when they plan, organize, lead, and control

Rationality:
- Rational decision making; choices that are logical and consistent and maximize value
- Assumption of rationality:
- Rational decision maker is logical and objective (khách quan)
- A fully rational decision maker is fully objective and logical
- Problem faced is clear and unambiguous
- Decision maker would have clear, specific goal and be aware of all alternatives and
consequences
- The alternative that maximizes achieving this goal will be selected
- Decisions are made in the best interest of the organization

Decision managers may make:

- Planning:
- The organization’s long-term objectives
- Strategies for those objectives
- Short-term objectives
- Challenges of the objective
- Organizing:
- Number of employees who can report directly to managers
- Job designs
- Time to change a company’s structure
- Leading
- Methods to handle employee
- Methods to increase morale of workers
- Time to stimulate conflict
- Controlling
- Activities which are necessary in organizations
- Methods to control them
- Type of management information system

Bounded rationality:
- Bounded rationality: decision making that’s rational, but limited by an individual's ability to process
information
- Satisfice: accepting solutions that are “good enough”

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 - Escalation of commitment (Nâng cao cam kết): an increased commitment to a previous decision
despite evidence it may have been wrong

Comparing rationality - bounded rationality

Rationality Bounded rationality

- Aim for the best option/solution

- Want it to be the greatest choice

- Find as much options as possible - Only gathering information when its

- Rarely choose by business convenience
- Time consuming - More often choose by business
- Require big data, numerous sources - Less time-consuming
- Really can find the best - Readily available
- Only the best option in available sources

Intuition (= bounded rationality + emotion)

- Intuitive decision - making: making decisions on the basis of experience, feelings, and accumulated
judgment
- What is intuition:
- Experience - based decisions
- Affect - initiated decisions
- Cognitive - based decision
- Subconscious mental processing (tiềm thức)
- Values or ethics based decisions
- Gather information and define the problem
- It’s okay to making decisions based on yourself
- You will be the one who shaping your decision
- Sometime, you don’t aim for the best solution, but it’s the most comfortable decision to you

Solution A Solution B

The best but not the most comfortable Not the best but the most comfortable
⇒ rationality/bounded rationality ⇒ intuition

Evidence - based measurement (EBMgt)

- The systematic use of the best available evidence to improve management practice
- Same as bounded rationality

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III. TYPES OF DECISION AND DECISION MAKING CONDITIONS
Types of decisions
1. Structured problems - programmed decisions
- Structured problems: straight forward, familiar and easily defined problems
- Programmed decisions: a repetitive decision that can be handled by a routine approach.
- Manager is the person who processes and makes decisions for employees.
- In the early career stage, the manager should believe in your employees
- 3 types of programmed decisions
- Procedure (quy trình): a series of sequential steps used to respond to a well-structured problem
- Rule (luật/nguyên tắc): an explicit statement that tells managers what can or cannot be done
- Policy (chính sách): a guideline for making decisions

2. Unstructured problems and nonprogrammed decisions

- Unstructured problems: problems that are new or unusual and for which information is ambiguous or
incomplete
- Nonprogrammed decisions: unique and nonrecurring and involve custom made solutions
- Middle/top managers are more often face with this type of decision

Comparing programmed - non-programmed decision

characteristics programmed Non-programmed

Types of problem structured unstructured

Managerial level Lower levels (line manager) Upper levels (middle - top
managers)

Frequency Repetitive, routine New, unusual

Information Readily available Ambiguous or incomplete

Goals Clear, specific Vague (mơ hồ)

Time frame for solution Short Relative long

Solution relies on Procedures, rules, policies Judgment and creativity

The amount of programmed - non-programmed decision the manager’s making are based on:
- Their position
- How big’s the company (size)
- The industries
- Fast food: always has programmed decision (procedures)

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 - Advertisement (creative jobs): often non-programmed
→ manager need to take the responsibilities

Decision - making condition

- Certainty: a situation in which a manager can make accurate decisions because all outcomes are known
- Risk: a situation in which the decision maker is able to estimate the likelihood of certain outcomes
- Uncertainty: a situation in which a decision maker has neither certainty nor reasonable probability (xác
suất) estimates available. The decision makers face a decision where they cannot certain about the
outcomes and can’t even make reasonable probability estimates

Managing risk
- Managers can use historical data or secondary information to assign probabilities (xác suất) to different
alternatives
- This is used to calculate expected value (the expected return from each possible outcome) by
multiplying expected revenue by the probability of each alternative.

IV. DECISION MAKING BIAS - ERRORS

Heuristic:
- Related to rule of thumb
- Can help make sense of complex, uncertain, ambiguous information
- However, they can also lead to errors and biases in processing and evaluating information
- các kỹ thuật dựa trên kinh nghiệm để giải quyết vấn đề, học hỏi hay khám phá nhằm đưa ra một giải
pháp nhưng không được đảm bảo là tối ưu

Common decision making biases

- Overconfidence bias: holding unrealistically positive views of oneself and one’s performance
- Immediate gratification bias: choosing alternatives that offer immediate rewards and avoid immediate
costs. It’s immediately satisfy you rather than later
- Anchoring effect (bị người ta dụ): fixating (sửa chữa) on initial information and ignoring subsequent
information

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 - You anchor decisions based on somebody’s knowledge, get someone else to evaluate it, and
believe that person.
- However, you should evaluate your decision seriously and by yourself
- Selective perception bias: selecting, organizing and interpreting events based on the decision maker’s
biased perception (lựa chọn, tổ chức và diễn giải các sự kiện dựa trên nhận thức thiên vị của người ra
quyết định)
- Confirmation bias: seeking out information that reaffirms past choices while discounting contradictory
information.
- It happens after you make a decision.
- You only find information that you need/crucial information after you decide. That means you
make the decision in a rush then regret
- An ủi cho một mình cảm thấy nhẹ lòng với một quyết định có vẻ là sai lầm trong quá khứ
- Framing bias: selecting and highlighting certain aspects of a situation while ignoring other aspects (lựa
chọn và làm nổi bật các khía cạnh nhất định của một tình huống trong khi bỏ qua các khía cạnh khác)
- Availability bias: losing decision making objectivity by focusing on the most recent events (mất tính
khách quan trong việc đưa ra quyết định bằng cách tập trung vào các sự kiện gần đây nhất)
- The information mentioned, most common is the accurate information, is the truth (however,
this is wrong). You should consider both sides of the issues.

⭐
- It’s untrue that the most to be mentioned is always true
- E.g: bạn mua một món hàng trên shopee nhưng bạn chỉ coi đánh giá 4 - 5 , và bỏ qua những
đánh giá khác của sản phẩm
- Representation bias: drawing analogies and seeing identical situations when non exist (rút ra các phép
loại suy và nhìn thấy các tình huống giống hệt nhau khi không tồn tại)
- Randomness bias: creating unfounded meaning out of random events (tạo ra ý nghĩa vô căn cứ từ các
sự kiện ngẫu nhiên)
- Sunk costs errors: forgetting that current actions cannot influence past events and relate only to future
consequences (quên rằng hành động hiện tại không thể ảnh hưởng đến các sự kiện trong quá khứ và chỉ
liên quan đến hậu quả trong tương lai)
- You think that what you have done in the past will affect your future (but actually not).
- Don’t look at the past, look at the information you have now.
- Self-serving bias: taking quick credit for success and blaming outside factors for failures
- Coi thường thành công và đổ lỗi cho các tác nhân bên ngoài
- hindsight bias: mistakenly believing that an event could have been predicted once the actual outcome is
know (after - the - fact)
- nhầm tưởng rằng một sự kiện có thể đã được dự đoán một khi kết quả thực tế được biết
- The five most important:
- Immediate gratification
- Sunk costs errors
- confirmation bias
- Anchoring effect

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Overview of managerial decision making

V. EFFECTIVE DECISION MAKING IN TODAY’S WORLD

Guideline for making effective decisions
- Understand cultural differences
- Create standards for good decision making
- Knowing when it’s time to call it quits
- Use an effective decision - making process
- Develop your ability to think clearly

Characteristics of an effective decision making process

- Focuses on what’s important
- Logical and consistent
- Acknowledges subjective and analytical thinking, blends analytical with intuitive thinking
- Requires only as much information as is needed to resolve a particular dilemma
- Encourages the gathering of relevant information
- Straightforward, reliable, easy to use, flexible

Design thinking - decision making

- Design thinking: approaching management problems as designers approach design problems :)
- It’s doesn’t follow the 8 steps in decision making process
- Manager is not the main character, person who involve to this decision will be the main character
- Try to involve the users into the decision making process
- Manager should think and contact with the users of the solutions first
- Going again the process, think about the end first
- Design thinking suggests that managers should look at problem identification collaboratively and
integratively with the goal of gaining a deep understanding of the situation.

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Big data - decision making
- Big data: the vast amount of quantifiable data that can be analyzed by highly sophisticated data
processing
- Can be a powerful tool in decision making, but collecting and analyzing data for data’s sake is
wasted effort

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 CHAPTER 3: GLOBAL MANAGEMENT

I. WHAT IS YOUR GLOBAL PERSPECTIVE?

- Monolingualism: is one sign that a notion suffers from parochialism (chủ nghĩa duy nhất, chỉ sử dụng 1
ngôn ngữ)
- Parochialism: viewing the world solely through one's own eyes and perspective, leading to an inability
to recognize differences between people
- Three possible global attitudes:
- Ethnocentric: view that home country has best work practices (parochialism). Global company
- Managers with an ethnocentric attitude do not trust foreign employees with key decisions
or technology.
- Polycentric: view that managers in the host country know the best approaches. Multinational
company/corporation
- Managers with a polycentric attitude view every foreign operation as different and hard to
understand.
- Geocentric: world - oriented view, wants to use best practices from around the globe.
Transnational organization, borderless organization

Underlying belief Senior management

Ethnocentric What works at home will Mostly from home country

work everywhere

Polycentric Every country is different Mostly from the local

operation

Geocentric Global integration integrates Best talent internationally

the good things from each available
country to find one best way

II. UNDERSTANDING THE GLOBAL TRADE ENVIRONMENT

1. Regional trading alliances (Các liên minh thương mại khu vực): global competition and global economy are
shaped by regional trading agreements, industry
- European Union (EU): an union of 28 European nations created as a unified economic and trade entity
Currency: Euro
- Involve: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain,
Sweden
- North American Free Trade Association (NAFTA): an agreement among the Mexican, Canadian, and
US governments in which barriers to trade have been eliminated.
- Association of Southeast Asian Nations (ASEAN): A trading alliance of 10 southeast Asian

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 - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand,
Vietnam)
- Other trade alliance:
- African Union (AU)
- East African Community (EAC)
- Regional Cooperation (SAARC)
- The South Asian Association for Regional Cooperation (SAARC)
- Trans-pacific Partnership (TPP)

2. Global Trade Mechanisms

- World Trade Organization (WTO): an organization of 188 countries that promotes international
monetary cooperation and provides advice, loans, and technical assistance. It was formed in 1995
- One of the major criticisms of the WTO is that it favors third world countries, such as
Bangladesh, China, Indonesia, India, etc over developed countries.
- World Bank Group: a group of very closely associated institutions that provides financial and technical
assistance to developing countries
- Organization for economic cooperation and development (OECD): An international economic
organization that helps its 34 member countries achieve sustainable economic growth and employment.
- Australia, Austria, Belgium, Canada, Chile, Colombia, Costa Rica, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, South
Korea, Latvia, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland,
Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, United
States

III. DOING BUSINESS GLOBALLY

1. Different types of International Organizations:
- Multinational corporations (MNC): a broad term that refers to any and all types of international
companies that maintain operations in multiple countries
- Multidomestic corporations: an MNC that decentralizes (phân quyền) management and other
decisions to the local country.
- Global company: an MNC that centralizes (tập trung hóa) management and other decisions in the home
country
- Transnational or borderless organization: an MNC in which eliminated artificial geographical
barriers

2. How organizations go international

- Step 1: global sourcing - outsourcing
- Purchasing materials or labor from around the world wherever it is cheapest
- Tìm nguồn cung ứng toàn cầu
- Step 2: exporting and importing (Imex)
- Exporting: making projects domestically and selling them abroad

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 - Importing: acquiring products made abroad and selling them domestically
- Step 3: licensing - franchising
- Licensing: an organization gives another organization the right to make or sell its product using
its technology or product specifications. Let others use 1 things of your company
- Franchising: an organization gives another organization the right to its name and operating
methods. Sell nearly your product
- Aallowing them to use the rights to their software, brand name, and software
specifications in return for a lump sum payment. The firm is a service organization that
plans to use the software to assist its customers
- Distinguish licensing - franchising: company A - company B
- B buy the copyright (about technology) of A. B can’t use A’s company name
- Franchising is the opposite of licensing
- Step 4: finding strategic alliance
- Strategic alliance: an partnership between an organization and foreign company partners in
which both share resources and knowledge in developing new products or building production
facilities
- Joint venture: the partner agree to form a separate, independent organization for some business
purpose
- 2 of the companies are partner, do some project together
- Together cooperate and put the effort
- Step 5: investing foreign subsidiary
- Foreign subsidiary: directly investing in a foreign country by setting up a separate and
independent production facility or office
- The company use their own money to open subsidiaries, branches

IV. MANAGING IN A GLOBAL ENVIRONMENT

1. Political/legal environment
- US managers are accustomed to (quen với) a stable legal and political system
- Managers must stay informed of the specific laws in countries where they do business
- Some countries have risky political climates

2. The economic environment

- 2 majors types of countries’ economic system
- A free market economy: resources are primarily owned and controlled by the private sector

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 - A planned economy: economic decisions are planned by a central government
- Other economic issues managers need to understand
- Currency exchange rates
- Inflation rates
- Diverse tax policies
3. The cultural environment
- National culture: the values and attitudes shared by individuals from specific country that shape their
behavior and belief about what is important
- Hofstede’s five dimensions of national culture
- Individualistic - collectivistic:
- Individualistic: people look after their own and family interests. Personal value first
Countries: USA, Canada, AUS
- Collectivistic: people expect the group to look after and protect themselves. Put the
values/benefits of the group/team first.
Countries: Mexico, Thailand, Vietnam
- Country brings 2 characteristic is Japan
- Higher power distance - lower power distance
- How much do you expect to follow people with authority?
- High power distance: accepts wide differences in power; great deal of respect for those in
authority. Totally obeyed, won’t argue back, kept physical distance from their manager.
Countries: Mexico, Singapore, France
- Low power distance: plays down inequalities: employees are not afraid to approach nor
are in awe of the boss. Employees can express their opinions/ideas; freely speak up in the
meeting, don’t keep physical distance.
Countries: USA, Sweden
- Countries bring 2 characteristics: Italy, Japan
- High uncertainty avoidance - low uncertainty avoidance
- How much is your risky level?
- High: threatened with ambiguity and experience high levels of anxiety. Saving rather than
debt/loans, scare of debt or take risk
Countries: Italy, Mexico, France
- Low: comfortable with risks; tolerant of different behavior and opinions
Countries: Canada, USA, Singapore
- Country brings both 2 characteristics: UK
- Achievement - nurturing (masculinity - femininity)
- Achievement: values such as assertiveness acquiring money and goods and competition
prevail
Countries: USA, Japan, Mexico
- Nurturing: values such as relationships and concern for others prevail
Countries: France, Sweden
- Countries bring both 2 characteristics: Canada, Greece

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 - Masculinity: Very competitive; want to win everything, aim for the best and strongly
opinions; = achievement
- Femininity: social harmony, help each other without being rewarded, less discrimination,
more cooperation, community, = nuturing
- *inclusive: nhằm cung cấp khả năng tiếp cận bình đẳng các cơ hội và nguồn lực cho
những người có thể bị loại trừ hoặc bị gạt ra ngoài lề xã hội, chẳng hạn như những người
bị khuyết tật về thể chất hoặc tinh thần hoặc thuộc các nhóm thiểu số khác.
- Long-term - short-term orientation:
- Long-term orientation: people look to the future and value thrift and persistence. Solve
problem immediately, change to fit, 5-10 years
Countries: Germany, AUS, USA, Canada
- Short-term orientation: people value tradition and the past. Value tradition, people do
same thing over and over, slow life, tend to have slow life activities: sightseeing, festival
must be carefully prepared in advanced
Countries: China, Taiwan, Japan
- The globe framework for assessing cultures:
- Global Leadership and Organizational Behavior Effective (GLOBE)
- The research program that studies cross-cultural leadership behaviors. 9 dimensions of GLOBE
- Power distance
- Uncertainty avoidance
- Assertiveness
- Humane orientation
- Future orientation
- Institutional collectivism
- Gender differentiation
- In-group collectivism
- Performance orientation

Global management in Today’s world

- Challenge of openness:
- Increased threat of terrorism
- Economic interdependence of trading countries
- Intense (kịch liệt)) fundamental cultural differences

Challenges of managing a global workforce

- Conflicts due to differences in work methods, pay levels, and language barriers
- Managing the cultural differences in work - family relationships
- Therefore, manager needs:
- Cultural intelligence: cultural awareness and sensitivity skills
- Global mind-set: attributes that allow a leader to be effective in cross-cultural environments

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 - Intellectual capital: knowledge of international business and the capacity to understand
how business works on a global scale
- Psychological capital: openness to new ideas and experiences
- Social capital: ability to form connections and build trusting relationships with people
who are different from you

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 CHAPTER 4: VALUING A DIVERSE WORKFORCE

I. DIVERSITY
1. What is workplace diversity?
- Workforce diversity: the ways in which people in an organization are different from and similar to one
another
- Timeline of evolution of workforce diversity
1960s - 1970s Focus on complying with laws and regulation

Early 1980s Focus on assimilating minorities and women into corporate setting
(1980 - 1984)

Late 1980s Concept of workforce diversity expanded from compliance to an issue of

(1985 - 1989) business survival

Late 1980s - late 1990s Focus on fostering sensitivity, first use the word: “workforce diversity”

New millennium Focus on diversity and inclusion for business success

- 2 types of workforce diversity

- Surface level: easily perceived differences that may trigger certain stereotypes, but that do not
necessarily reflect that ways people think or feel
- Gender
- Age
- Skin
- Language
- Deep level: differences in values, personality, work preferences
- Hobbies
- Ethnicity
- Ways of working
- Personalities: Differences arising from personality becomes more important to people as
they get to know each other
- Philosophy

2. Why is managing workplace diversity so important?

- Benefits of workforce diversity:
1. People management:
- Better use of employees talent
- Increased quality of team problem solving efforts
- Ability to attract and retain employees of diverse backgrounds

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 2. Organizational performance
- Reduced cost (high turnover, absenteeism, lawsuits): Successful orientation results in reduced
first-year turnover
- Enhanced problem solving ability
- Improved system flexibility
3. Strategic
- Increased understanding of the marketplace
- Potential to improve sales growth and increase market value
- Potential source of competitive advantage
- Viewed as moral & ethical
4. Advantages (by Berlin)
- New innovation
- Respect diversity → easier for recruitment
- Deal with many kind of customer
- Easier to do marketing (numerous view point)
- Experience and education background diversity:
- Networking benefit
- HRs should employ those types of employees
- Irreplaceable
- Should prioritize this type of employees when recruitment/working
- Disadvantages of workforce diversity
- Lead to conflict (numerous view points)
- Conflict lead to discrimination
- Extremely cost Hrs (only a good HR can handle with this) also difficulty
- Too diverse probably lead to fragment
- How to reduce those drawbacks?
- Sharing activities: asking about food and drink (easiest way), clothes, pop culture, music, etc.
- Integrate/Training: worksop, trip, etc.
⇒ WORKPLACE DIVERSITY BRINGS NUMEROUS BENEFITS BUT IT SHOULD BE LIMITED!
(Berlin)

What should be considered when working internationally?

- Culture of the country I’ll work in
- The national culture of the company
- E.g: work in a Japan company that located in the UK → You need to learn both Japanese and
Uk’s cultures
- Issues of the diversity
- The form of your national country
- Cultural management (less important but if you want your business to go international, it’s
important.
- E.g: to you, what’s special about Vietnamese’s culture?

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 - Rubber band time
- Cuisine
- Feng Shui
- Traffic jam
II. THE CHANGING WORKPLACE
1. Characteristics of the US population
- Worldwide population trends indicate that we will witness dwindling labor supply and increasing total
global savings rates.
[CTRL F :)]

III. TYPES OF WORKPLACE DIVERSITY

1. Age
- The aging population is a major critical shift taking place in the workforce
- Note* If my workplace goals included getting high scores on a performance evaluation, I would prefer
that my supervisor be of an older generation than me

2. Gender
- Women (49.8%) and men (50.2%) now each make up almost half of the workplace

3. Race
- The biological heritage (including skin to color and associated traits) that people use to identify
themselves

4. Ethnicity
- Social traits (cultural background or allegiance) that are shared by a human population
- E.g: African Americans generally do worse than Whites in decisions related to the workplace.

5. Disability - abilities
- Employers’ fear about disabled worker
- Higher employment cost and lower profit margins. Reality:
- sick times of disabled workers are equal the normal
- Worker’s disabilities are not factor in calculating insurance costs
- Lack job skill and experience. Reality:
- Obstacles of technology are eliminated for the disabled
- Many disabled workers has problem solving skills
- Uncertainty over how to discipline the disabled worker. Reality:
- The disabled people has the same obligations and rights
- High cost associated with accommodating disabled employees. Reality:
- No required accommodation
- If yes, more than half disabled workforce required $500 or less
- Religion

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 - LGBT:
- Gender identity: transgendered
- Sexual orientation: lesbian, bisexual, gay; "last acceptable bias"

IV. CHALLENGES IN MANAGING DIVERSITY

1. Personal bias
- Bias (thiên kiến): a tendency or preference toward a particular perspective or ideology
- Prejudice (định kiến): a preconceived belief, opinion or judgment toward a person or a group of people
- Out come of personal bias
- A major factor of prejudice is stereotyping
- Stereotyping (khuôn khổ): judging a person based on a perception of a group to which that person
belongs
- Discrimination (phân biệt): when someone acts out their prejudical attitudes toward people who are the
targets of their prejudice

Types Definitions

Discriminatory Actions taken by representation of the organization that deny equal

policies or practices opportunity to perform or unequal rewards for performance

Sexual harrasment Unwanted sexual advances and other verbal or physical conduct of a sexual
nature that create a hosfile or offensive work environment

Intimidation Overt threats or bullying directed at members of specific groups of

(hăm dọa) employees

Mockery & insults Joke or negative stereotypes; sometime the result of jokes taken too far

Exclusion Exclusion of certain people from job opportunities, social events,

(loại trừ) discussions, informal mentoring, can occur unintentionally

Incivility (bất lực) An employee's opinions are consciously ignored

2. Glass ceiling (rào cản vô hình)

- The invisible barriers that separates women and minorities from top management positions
- The meaning of "glass" that is used in the term "glass ceiling" signifies that whatever is blocking the
way for women to attain top management positions is not immediately apparent

V. WORKPLACE DIVERSITY INITIATIVES

1. The legal aspect of workplace diversity
- Workplace diversity needs to be more than understanding and complying with federal laws.

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2. Diversity skills training
- Specialized training to educate employees about the importance of diversity and to teach them skills for
working in a diverse workplace

3. Employee resource groups

- groups made up of employees connected by some common dimension of diversity

4. Mentoring
- A process whereby an experienced organizational member (a mentor) provides advice and guidance to
a less experienced member (a protégé)
- A mentor does
- Providing instructor
- Offers advice
- Give constructive criticism
- Helps build appropriate skills
- Shares technical expertise
- Develops a high-quality, close + supportive relationship with pretégé
- Keeps lines of communication open
- Knows when to “let go” and let the pretégé prove what they can do

Note* Bruce will be making a presentation to the senior management team to encourage them to support efforts
to improve the company's diversity policies and practices. One of the more compelling arguments he can use is
companies with inclusive practices outperformed their competitors.

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 CHAPTER 5: SOCIALLY - CONSCIOUS MANAGEMENT

I. WHAT IS SOCIAL RESPONSIBILITY?

1. From obligation to responsiveness to responsibility
- Social obligation: when a firm engages in social actions because of its obligation to meet certain
economic and legal responsibilities (đáp ứng các trách nhiệm pháp lý và kinh tế nhất định)
- It reflects the classical view of social responsibility
- E.g: In the United States a company that meets, but does not exceed, federal pollution control
standards and does not discriminate in hiring, promotion, and pay.
- Classical view: the view that management’s only social responsibility is to maximize profits
- Social responsiveness and social responsibility reflect the socioeconomic view
- Social responsiveness (đáp ứng xã hội): when a firm engages in social actions in response to some
popular social need. (đáp ứng một số nhu cầu xã hội phổ biến.)
- E.g: university provides job-share programs, builds a day-care facility, and only uses recycled
paper
- Social responsibility (trách nhiệm xã hội): A business’s intention, beyond its legal and economic
obligations, to do the right things and act in ways that are good for society
- Possession of resources is an argument in favor of social responsibility.
-
- Socioeconomic view: the management’s social responsibility goes beyond making profits to include
protecting and improving the society’s welfare. (không chỉ tạo ra lợi nhuận mà còn bao gồm việc bảo vệ
và cải thiện phúc lợi xã hội)
- The aspect that differentiates social responsibility from other similar concepts is that it adds an Ethical
imperative.

2. Should organizations be socially involved ?

- Way 1: examining arguments for and against social involvement (pp. 182)
- For:
- Public expectations: Public opinion now supports businesses pursuing economic and
social goals.
- Long-run profits: Socially responsible companies tend to have more secure long-run
profits
- Ethical obligation: Businesses should be socially responsible because responsible actions
are the right thing to do
- Public image: Businesses can create a favorable public image by pursuing social goals.
- Better environment: Business involvement can help solve difficult social problems.
- Discouragement of further governmental regulation: By becoming socially responsible,
businesses can expect less government regulation.
- Balance of responsibility and power: Businesses have a lot of power and an equally large
amount of responsibility is needed to balance against that power

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 - Stockholder interests: Social responsibility will improve a business’s stock price in the
long run.
- Possession of resources: Businesses have the resources to support public and charitable
projects that need assistance.
- Superiority of prevention over cures: Businesses should address social problems before
they become serious and costly to correct.
- Against:
- Violation of profit maximization: Business is being socially responsible only when it
pursues its economic interests
- Dilution of purpose: Pursuing social goals dilutes business’s primary purpose—economic
productivity
- Costs: Many socially responsible actions do not cover their costs and someone must pay
those costs
- Too much power: Businesses have a lot of power already; if they pursue social goals,
they will have even more
- Lack of skills: Business leaders lack the necessary skills to address social issues
- Lack of accountability: There are no direct lines of accountability for social actions.
- Way 2: looking at socially responsible investing (SRI) funds
- SRI provide a way for investors to support socially responsible companies
- SRI use some type of social screening
- Social screening: applying social criteria (screens) to investment decisions.
- Các nhà đầu tư có ý thức xã hội tìm cách sở hữu những công ty mạnh về tài chính, có
đóng góp tích cực cho xã hội. Đây thường được gọi là social screening “tích cực”.

II. GREEN MANAGEMENT AND SUSTAINABILITY

- Green management: managers consider the impact of their organization on the natural environment

1. How do organizations go green?

- Organizations take green by using one model which uses the term shade of green (describe the different
environmental approaches)

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 - Legal approach (light green): doing what is required legally (tối thiểu), little environmental
sensitivity, and simply obey laws, rules and regulations.
→ social obligation
- Market approach: organizations respond to the environmental preferences of their customers
(làm để đáp ứng mong muốn/sở thích của khách hàng).
→ social responsiveness
- Stakeholder approach: organizations work to meet the environmental demands of multiple
stakeholders (employees, suppliers, community) (đáp ứng các nhu cầu về môi trường của nhiều
bên liên quan).
→ social responsiveness.
- Activist approach (dark green): organizations look for ways to protect the earth’s natural
resources. (làm có tâm)
→ social responsibility.

2. Evaluating green management actions

- 3 ways to evaluate green management actions:
- Release reports which follow guidelines developed by the Global reporting Initiative (GRI)
- Pursuing standards developed by the non-governmental International Organization for
Standardization (ISO)
- ISO 9000: quality management standards
- ISO 14000: environmental management standards
- Using the Global 100 list of the most sustainable corporations in the world
- To be named on the Global 100 list, which is announced each year at the World
Economic Forum, a company has to display a superior ability to effectively manage
environmental and social factors

III. MANAGERS AND ETHICAL BEHAVIOR

- Ethics: principles, values, and beliefs that define right and wrong behavior

1. Factors that determine ethical and unethical behavior

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 - Factor 1: stage of moral development:
- Moral development has 3 levels, each has 2 stages
- At each successive stage, an individual’s moral judgment becomes less dependent on outside
influences and more internalized
- Preconventional level: a person’s choice between right or wrong is based on personal
consequences from outside sources.
- E.g: physical punishment, reward, exchange of favors
- Stage 1: sticking to rules to avoid physical punishment
- Stage 2: following rules only when doing so is in your immediate interest (chỉ làm nếu nó
mang đến lợi ích trước mắt)
- Conventional level: ethical decisions rely on maintaining expected standards and living up to
the expectations of others.
- Stage 3: living up to what is expected by people close to you
- Stage 4: maintaining conventional order by fulfilling obligations to which you have
agreed (hoàn thành các nghĩa vụ mà bạn đã đồng ý)
- Principled level: individuals define morale value apart from the authority of the group to which
they belong or society in general.
- Stage 5: Valuing rights of others and upholding absolute values and right regardless of
the majority’s opinion. (Coi trọng quyền của người khác và duy trì các giá trị và quyền
tuyệt đối bất chấp ý kiến của đa số)
- Stage 6: Following self-chosen ethical principles even if they violate the law
- Factor 2: individual characteristics
- 2 individual characteristics: value - personality.
- Value: represent basic convictions (lòng tin chắc chắn) about what is right and wrong
- Two personality variables influence an individual’s actions according to their beliefs about what
is right or wrong: ego strength and locus of control
- Ego strength: measures the strength of a person’s convictions.
- High: resist impulses to act unethically. They follow their convictions (niềm tin
của họ)
- Locus of control: the degree to which people believe they control their own fate.

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 - People with an internal locus of control believe that what happens to them is due
to luck or chance.
- Factor 3: structural variables
- Ethical behavior can be influenced by:
- An organization’s structural design
- Goals
- Performance appraisal (thẩm định) system
- Reward allocation
- Work and non-work support
- Factor 4: issue intensity (cường độ vấn đề)
- 6 characteristics determines issue intensity
- Consensus of wrong: how much agreement is there that this action is wrong?
- Probability of harm: how likely is it that the action will cause harm?
- Intermediary of consequences: will harm be felt immediately?
- Proximity to victims: how close are the potential victims?
- Concentration of effect: how concentrated is the effect of the action on the victim?
- Greatness of harm: how many people will be harmed?

2. Ethics in an international context

- Ethics standards in an International Context are not universal
- Payments to influence foreign officials or politicians
→ Managers are guided by Foreigh Corrupt Practice Act (FCPA)
- Another guide: the United Nations Global Compact
- The Global Compact (NOT GLOBAL CONTRACT) is a document created by the United
Nations outlining principles for doing business globally in the areas of human rights, labor, the
environment, and anticorruption.
- Freedom of association and the effective recognition of the right to collective bargaining are the
Global Compact principles in the area of labor standard.

Human right

Principle 1: Business should support and respect the protection of internationally proclaimed
human rights within their sphere of influence; and

Principle 2: Make sure they are not complicit in human rights abuses.

Principle 3: Business should uphold the freedom of association and the effective recognition of
the right to collective bargaining;

Principle 4: The elimination of all forms of forced and compulsory labor;

Principle 5: The effective abolition of child labor

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 Principle 6: The elimination of discrimination in respect to employment and occupation.

Environment

Principle 7: Business should support a precautionary approach to environmental challenges;

Principle 8: Undertake initiatives to promote greater environmental responsibility

Principle 9: Encourage the development and diffusion of environmentally friendly

technologies.

Anti-corruption

Principle 10: Business should work against corruption in all its forms, including extortion and
bribery.

IV. ENCOURAGING ETHICAL BEHAVIOR:

1. Employee selection
- Values-based management: the organization’s values guide employees in the way they do their jobs

2. Codes of ethics and decision rules:

- Code of ethics: a formal statement of an organization’s primary values and the ethical rules it expects its
employees to follow
- Suggestion for developing codes of ethics
- Leaders should model appropriate behavior and reward those who act ethically.
- Managers should reaffirm the importance of the ethics code and discipline those who break it
- Stakeholders should be considered as an ethics code is developed or improved
- Managers should communicate and reinforce (củng cố) the ethics code regularly
- Managers should use the 5-step process to guide employees when faced with ethical dilemmas
- 5 step process for addressing ethical dilemmas:
- Step 1: What is the ethical dilemma?
- Step 2: Who are the affected stakeholders?
- Step 3: Which personal, organizational, and external factors are important in this decision?
- Step 4: What are possible alternatives?
- Step 5: What is my decision and how will I act on it?

3. Leadership at the top

- Doing business ethically requires a commitment from managers at all levels, but especially the top level
because:
- They uphold (duy trì) the shared values and set the cultural tone
- They’re role models in both words and actions

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4. Job goals and performance appraisal (thẩm định/đánh giá)
- Under the stress of unrealistic goals, otherwise ethical employees may feel they have no choice but to do
whatever is necessary to meet those goals.

5. Ethics training
- More organizations are setting up seminars, workshops, and similar ethics training programs to
encourage ethical behavior.

6. Independent social audits

- Evaluate decisions and management practices in terms of the organization’s code of ethics
- Sarbanes-Oxley Act holds businesses to more rigorous standards of financial disclosure and corporate
governance, more organizations are finding the idea of independent social audits appealing.
- The Sarbanes-Oxley Act is an example of external change.

V. SOCIAL RESPONSIBILITY AND ETHICS ISSUES IN TODAY’S WORLD

1. Managing ethical lopes and social irresponsibility: 2 actions to uphold high ethical standards
- Ethical leaderships
- Be a good role model by being ethical and honest:
- Tell the truth always: Sometimes it is important to share the truth even if the truth hurts.
- Don’t hide or manipulate information.
- Be willing to admit your failures.
- Be willing to admit your failures
- Share your personal values by regularly communicating them to employees.
- Stress (nhấn mạnh) the organization’s or team’s important shared values.
- Use the reward system to hold everyone accountable to the values.
- Protection of employees who raise ethical issues
- Whistle-blower: individual who raises ethical concerns or issues to others (key part of ethics
program) - người méc người khác vi phạm =))
- Manager protect “whistle-blower” 2 ways:
- Setting up toll-free ethics hotlines (đường dây nóng đạo đức)
- Having in place a “procedurally just process” (quy trình chỉ theo thủ tục)
- Making process is fair and employees are treated respectfully about their concerns

2. Social entrepreneurship: an individual or organization that seeks out opportunities to improve society by
using practical, innovative, and sustainable approaches

3. Business promoting positive social change: 2 ways of promoting positive social change:
- Corporate philanthropy: can be an effective way for companies to address societal problems
- Under the classical view, aiding the few through philanthropy increases costs for consumers.

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 - Employee volunteering efforts: a popular way for businesses to be involved in promoting social
change

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 CHAPTER 6: MANAGING CHANGE

I. THE CASE FOR CHANGE

1. Organizational change: any alteration of people, structure, or technology in an organization
- E.g:
- Brick and mortar to e-commerce
- Completely rebuilding the website
- Launching a new department
- Change agent: someone who acts as a catalyst and assumes the responsibility for managing the change
process (người đóng vai trò là chất xúc tác và đảm nhận trách nhiệm quản lý quá trình thay đổi)
- E.g:
- Internal agent: corporate board members, CEOs, managers
- External agents: investors, suppliers, community activist
- External - internal reasons for change

External Internal

Changing consumer needs and wants New organizational strategy

New governmental laws Change in composition of workforce
New competitions New equipment
Changing technology Changing employee attitudes
Economic changes Change CEO

2. External factors
- Changing consumer needs and wants:
- Burger Kings expand its menu with lower calories fries → fail because of lower sales
- Ford motor company attracts new breed of customer → secure the company’s future
- New governmental laws:
- 5 broad categories of government laws
- Truth in advertising
- Employment and labor fair practices
- Environmental protection
- Privacy
- Safety and health
- E.g: Chinese businesses managers must pay close attention to changing employment laws
affecting the minimum wages and open-ended contract
- Changing technology:
- Most electric vehicles rely on lithium ion batteries. However, Toyota and Volkswagen develop
solid state batteries to extend driving range

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 - Economic change: Recession occur when:
- A general slowdown in economic activity
- A downturn in the business cycle
- A reduction in the amount of goods and services

3. Internal factors:
- New organizational strategy
- Walgreens strategy change from increasing number of retail stores so that improving the
customer service experience and more competitive price
- Changing in composition of workplace
- US workforce become more diverse → challenge: manage the diverse to maintain an inclusive
culture that focus on productivity
- New equipment:
- Medical industry ú 3D printer for creating prosthetics and implant
- Apple uses 3D printer to create the casings for its laptop
- Changing employee attitudes
- Change in attitudes of employee tend the companies to less favorable than at more stable
companies

II. THE CHANGE PROCESS

- The two metaphors used to describe the change process
1. Calm water - white water rapids metaphors
- Calm water metaphors:
- Was fairly descriptive of the situation managers face (mô tả các tình huống mà managers phải
đối mặt)
- 3 steps of a metaphors (Kurt Lewin)
- Unfreezing the status quo
- Increasing driving force: forces pushing for change
- Decreasing restraining forces: forces that resist change
- Changing to a new state
- Refreezing to make the change permanent
- E.g:
- A germanwing’s plane is crashed into a mountain because the copilot (phi công phụ)
disabled this security measure using cockpit control
- Many civil aviation authorities implement new rules that require 2 crewmembers to be
present in the cockpit of commercial air-craft at all times
- Germanwings immediately complied the rules
- White - water rapids metaphor
- The lack of environmental stability and predictability requires that managers and organizations
continually adapt and manage change actively to survive.

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 - Change is normal and expected and managing it is a continual process.
- E.g: course rules:
- Courses vary in length (ending anytime)
- The length of the class is various
- The time of the next class set randomly by instructors
- All exam are unannounced
→ you have to adapt quickly to changing conditions to success

2. Reactive - proactive change processes

- Reactive: reacting to a situation that has occurred
- E.g: the students ask their professor for guidance to help them prepare for the final exam after
receiving the poor grade for midterm exam (đợi có một sự việc xảy ra rồi mới chịu change)
- Proactive: acting in advance of a situation
- E.g: the students visit the professor and study in group to premade for midterm exams (đón đầu
cái change, thay vì chờ đợi nó xảy ra thì mình tự change)

III. AREAS OF CHANGES

1. Strategy: modifying (sửa đổi) the approach to ensuring the organization’s success
- Change in how managers ensure the success of the company.
- Cocofe’s company:
- Old strategy: offering low-cost air fares
- New strategy: to aggressive competitors, change to rise customer service quality

2. Structure:
- Structural components and structured design
- Any change in structural variables such as reporting relationships, coordination mechanisms, employee
empowerment, or job design
- E.g: China’s Brewery change from a bureaucratic and risk - averse company to one that could compete
in a global market
- Structural component: organization’s structure such as how work gets done or who does it. Managers
can alter one or both of these structural components.
- Include combining departmental responsibilities

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 - Another option would be to make major changes in the actual structural design.

3. Technology
- Work processes, methods, equipment
- E.g: scientific management techniques involved implementing changes that increase production
efficiency
- Ford’s assembly worker’s wear a small device on their wrists that enable them to ensure that vehicle
specifications are correct

4. People
- Attitudes, expectations, perceptions, behavior of individuals and groups
- Organizational development (OD): change methods that focus on people and the nature and quality of
interpersonal work relationships
- E.g: executive at Scotiabank used different OD techniques during the strategic change (team building,
survey feedback, intergroup development)

IV. CHANGE PROCESS (BY BERLIN)

Step 1: analyze the impact of the cause
Step 2: analyze your company. What should be changed?
- Strategy:
- Long term plan?
- Company direction?
- Structure: What keeps the company running?
- Physical: office, shuttle bus, information system, chair, desk, etc.
- Non-physical: rule & regulation, company culture, promise (can motivate employees, thus, it is
about structure)
- People:
- Recruit new employees?

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 - Training and rotation
- Fire
- Technologies
Step 3: plan for change
Step 4: organizing for change
Step 5: communicate change to anyone affected. Make sure that they know why they need to change.
Step 6: leading and controlling
- Motivate employees
- Make sure things workout, monitoring
- Keep track of the process and adjust necessary other change
- If it’s a big change, it should lead and control continuously
Step 7: stabilize change (keep step 6)
- The change stick and stable by leading and controlling
*Step 3 - 5: unfreezing (prepare your company for change)

IV. MANAGING CHANGE

1. Why do people resist change?
- Uncertainty: when introducing a new technology into manufacturing plants, someone learn it, but
someone think that they unable to do
- Habit: everyday when you go to school & work, you probably go the same ways (habit is created)
- Fear of loss: people do not invest the new field because of fear of failure, fear of losing power
- Person’s belief: workers believes that a new job procedure will reduce product quality
- Lazy/stress
- Capacity: they are not good enough to deal with change
- Lack of sources: money, employees,...
- Company culture: affected everyone

2. Techniques for reducing resistance to change

Technique When Used Advantage Disadvantage

Education & Misinformation Clear up May not work if lacking mutual

communication misunderstandings trust and credibility

Participation When resisters have the expertise Increase Time-consuming; might lead to
to make a contribution involvement and poor solution
acceptance

Facilitation and When resisters are fearful and Can facilitate Expensive; no guarantee of
support anxiety ridden needed adjustments success

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 Negotiation When resistance comes from a Can “buy” Potentially high cost; opens doors
(đàm phán) powerful group commitment for others to apply pressure too

Manipulation Can backfire, causing change

and co-optation When a powerful group’s Inexpensive, easy agent to lose credibility
endorsement (chứng thực) is way to gain support
Coercion needed May be illegal; may undermine
(ép buộc) change agent’s credibility

V. CONTEMPORARY ISSUES IN MANAGING CHANGE

1. Leading change
- They can make the organization change capable
- Understand their own rules in the process
- Give individual employees a role in the change process
- A change-capable organization: continue change efforts in order to exploit new opportunities

Characteristics

Link the present and the future: Think of work as more than an extension of the past; think about future
opportunities and issues and factor them into today’s decisions.

Make learning a way of life: Change-friendly organizations excel at knowledge sharing and management

Actively support and encourage day-to-day improvements and changes: Successful change can come
from the small changes as well as the big ones.

Ensure diverse teams: Diversity ensures that things won’t be done like they’ve always been done.

Encourage mavericks: Because their ideas and approaches are outside the mainstream, mavericks can
help bring about radical change.

Shelter breakthroughs: Change-friendly organizations have found ways to protect breakthrough ideas.

Integrate technology

Build and deepen trust: People are more likely to support changes when the organization’s culture is
trusting and managers have credibility and integrity.

Couple permanence with perpetual change: Because change is the only constant, companies need to
figure out how to protect their core strengths during times of change.

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 Support an entrepreneurial mindset: Many younger employees bring a more entrepreneurial mindset to
organizations and can serve as catalysts for radical change.

2. Creating a culture for change

- The fact that an organization’s culture, which is made up of relatively stable and permanent (ổn định và
lâu dài) characteristics, tends to make it very resistant to change.
- E.g: IBM was not amenable (chịu trách nhiệm) to change because it had developed an entrenched (cố
thủ) culture based on tradition
- Understanding the situation factors
- Dramatic crisis occurs
- A shock can weaken the status quo and make people start thinking about the relevance of
the current culture
- Leadership changes hands
- New top leadership can provide an alternative set of key values and may be perceived as
more capable of responding to the crisis than the older leader here
- Culture is weak
- Weak culture are more receptive to change than strong ones
- The organization is young & small
- The younger is less entrenched in culture so that easier to communicate
- Making change in culture
- Set the tone through management behavior: need to be positive role models
- Create new stories, symbols, and rituals to replace those currently in use.
- Select, promote, and support employees who adopt the new values.
- Redesign socialization processes (quy trình xã hội hóa) to align with the new values.
- To encourage acceptance of the new values, change the reward system.
- Replace unwritten norms (định luật bất thành văn) with clearly specified expectations.
- Work to get consensus (sự đồng thuận) through employee participation and creating a climate
(bầu không khí) with a high level of trust.

3. Employees stress
- Stress: the adverse reaction (phản ứng bất lợi) people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities
- Stressors: factors that cause stress.
- It has 5 organizational stressors:
- Task demands: relate to an employee's job
- The design of a person’s job
- Working conditions
- Physical work layout
- Role demands: relate to pressure placed on an employee as an function of the particular role
they play in (position pressure)

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 - Role conflicts: create expectations that may be hard to reconcile (hòa giải/dàn xếp) or satisfy
- Role overload: is experienced when the employee is expected to do more than time permits
- Role ambiguity: is created when role expectations are not clearly understood and the employee
is not sure what to do
- Interpersonal demands: pressure created by other employees
- Social support from colleagues
- Poor interpersonal relationship
- E.g: Darlene is just one of Cameron's "needy" employees who require constant feedback
and reassurance. Two other employees bicker constantly. Another one challenges
everything Cameron says or does.
- Organization structure: excessive rules and an employee’s lack of opportunity to participate in
decision that affect them
- Organizational leadership: represents the supervisory style (phong cách giám sát) of the
organization's managers
- 2 personality trait can create stress
- Type A: have a chronic sense of agency and an excessive competitive drive (tự chủ và động lực
cạnh tranh quá mức)
- Type B: relaxed and easygoing and accept change easily (thoải mái, dễ tính và dễ dàng chấp
nhận thay đổi)
- Symptoms of stress:
- Physical: increase heart and breathing rates, raise blood pressure, headaches, etc.
- Psychological: job related dissatisfaction, tension, anxiety, irritability, boredom, procrastination
- Behavioral: changes in productivity, absenteeism, job turnover, change in eating habits,
increased smoking, consumption of alcohol, rapid speech, fidgeting, sleep disorder
- Reduced stress:
- Realistic job preview during selection process
- Performance planning program (MBO - Management by Objectives)
- Job design
- Addressing personal stress
- Counseling: can provide stress relief
- A time management program
- Wellness programs: WebMD Health Coaching enables employees to have confidential
phone meetings with a health expert

VI. STIMULATING INNOVATION

1. Creativity - innovation
- Creativity: the ability to combine ideas in a unique way or to make unusual associations between ideas
- Innovation: taking creative ideas and turning them into useful products or work methods

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2. Stimulating - nurturing innovation
- Idea champion: individual who actively and enthusiastically supports new ideas, builds support,
overcomes resistance and ensures that innovations are implemented.
- Most idea champions have extremely high self-confidence.
- Innovation variables:
- Structural:
- Organic structures
- Abundant resources
- High interunit communication
- Minimal time pressure
- Work - nonwork support
- Human resource:
- High commitment to training and developing
- High job security
- Creative people
- Cultural
- Acceptance of ambiguity
- Tolerance of the impractical
- Low external controls
- Tolerance of risks
- Tolerance of conflict
- Focus on ends
- Open-system focus
- Positive feedback

3. Innovation - design thinking: when a business approaches innovation with a design-thinking mentality, the
emphasis is on getting a deeper understanding of what customers need and want.

VII. DISRUPTIVE INNOVATION DEFINITION

- Disruptive innovation (đổi mới đột phá): innovations in products, services, or processes that radically
change an industry’s rules of the game
- E.g: wheels, internet, condom (said Berlin) =))))
- Sustaining innovation: small and incremental (tăng dần) changes in established products rather than
dramatic breakthroughs.
- E.g:
- High definition television
- Back up cameras on cars
- Fingerprint technology

1. Why disruptive innovation is important?

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 - Disruptive innovations are a threat to many established businesses, and responding with sustaining
innovations isn’t enough.

2. Who is vulnerable?
- Large, established, and highly profitable organizations:
- Because they have the most to lose and are most vested (đầu tư) in their current markets and
technologies.
- Bank tellers (ATM), camera manufacturers (smartphones)

3. Implications
- For entrepreneurs: major disruptions open the door for new products and services to replace
established and mature businesses
- For corporate managers: the challenge to disruptive innovation is to create an appropriate response.
- Skunk works: a small group within a large organization, given a high degree of autonomy and
unhampered (không hài lòng) by corporate bureaucracy (quan liêu), whose mission is to develop
a project primarily for the sake of radical innovation. (an entrepreneurial operation funded by a
large organization)
- For career planning:
- Never get comfortable with a single employer
- Keep your skills current
- Be responsible for future
- Take risks while you’re young

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 CHAPTER 7: CONSTRAINT ON MANAGERS

I. THE MANAGER OMNIPOTENT OR SYMBOLIC?

1. The omnipotent view of management
- The omnipotent view: The view that managers are directly responsible for an organization’s success or
failure. (có toàn quyền kiểm soát các nhiệm vụ và hoạt động của tổ chức. Là người chèo lái mọi mặt của
tổ chức)
- Consistent with the stereotypical picture of the take-charge business executive who can
overcome any obstacle in carrying out the organization's objectives.
- E.g: Twitter’s CEO- Jack Dorsey fired the head of engineering because of slow growth
- Consistent with the stereotypical picture of CEO
- Not limited to business organization
- E.g: basketball team loses more than wins → coaches are fired and replaced by new ones.

2. The symbolic view of management

- Symbolic view: the view that much of an organization’s success or failure is due to external forces
outside managers’ control
- E.g: the economy, customer, government policies, competitor’s actions, industry conditions, and
decisions made by previous managers
- The decisions and actions is constrained (hạn chế)
- External constraints come from organization's environment
- Internal constraints come from the organization’s culture

II. THE EXTERNAL ENVIRONMENT - CONSTRAINTS AND CHALLENGES

External environment: Those factors and forces outside the organization that affect its performance
- Economic: interest rates, inflation, changes in disposable income
- Demographic: Age, race, gender, education level, geographic location
- Political/Legal: federal, state, local & global laws
- Sociocultural: Values, attitudes, trends, traditions, lifestyles
- Technological: Scientific or industrial innovation
- Global: Globalization & World economy

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1. Economic environment
- All the external economic factors that influence buying habits of consumers and businesses; therefore,
affect the performance of a company. These factors are often beyond a company's control, and may be
either macro or micro.
- E.g: Nestle’s coffee faces the increase of price of chocolate (30% in 5 years)
- The global economy and the economic context
- Economic context: The economic context can be shaped actively by the city and influences
businesses to make investments or create jobs. It therefore influences a city's economic structure
and its attractiveness as a location.
- Home owners unable to pay their mortgage → Business in credit market collapsed → (Globally
connected) → Spread the problems to other countries
- Chủ sở hữu nhà không thể trả nợ thế chấp của họ → Kinh doanh trên thị trường tín dụng sụp đổ
→ (Kết nối toàn cầu) → Truyền bá vấn đề sang các nước khác
- Economic inequality and the economic context
- Poor and rich in social → Income gap increased ⇒ Business leader needs to recognize how
society attitude in the economic context that may also create the constraints

2. The Demographic Environment

- Age is a particularly important demographic since the workplace often has different age groups all
working together
- Baby Boomers :
- Born between 1946 and 1964
- One of the largest and most influential demographic groups in history.
- Baby boomers will represent the largest segment of the workforce.
- Affected to various aspects of external environment
→ educational system, entertainment, lifestyle choice
- Gen Y (Millennials):
- Children of Baby Boomers
- Born between 1978 and 1994
- Making an impact on technology, clothing styles, and the workplace
- An important demographic at Facebook (mostly under 40)
- Post-Millennials:
- The youngest group
- Identified age group–basically teens and middle-schoolers.
- They have also been called the “Gen Z” or the “touch - screen generation” because advances in
technology have customized everything to the individual.

3. How the External Environment Affects Managers?

- Jobs and Employment: the impact of external factors on jobs and employment is one of the most
powerful constraints managers face
- E.g: Unemployment rate roses

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 - Affected how those jobs are created and managed
- E.g: Work tasks may be done by: freelancers and temporary workers, but are not permanent
workers
- Assessing Environmental Uncertainty:
- Environmental uncertainty: the degree of change and complexity in an organization’s
environment
- Change: stable to dynamic (từ ổn định chuyển sang biến động)
- Complexity: simple to complex (từ đơn giản trở nên phức tạp)
- The degree of change:
- Dynamic environment (môi trường năng động): the components in an organization change
frequently
- Stable environment: change in minimal
- E.g: Almarai faces a relatively stable environment
- Competition from local and regional competitors
- Government policies higher cost of electricity and water
⇒ Almarai focuses on improving efficiencies to boost profitability and arranging long-term
supply

Degree of change

Stable Dynamic

Cell 1:
- Stable and predictable environment
- Few components in environment
Simple - Components are somewhat similar
and remain basically the same
- Minimal need for sophisticated
Degree of knowledge of components (cần ít kiến
complexity thức phức tạp/khó)
Cell 2:
- Dynamic and unpredictable environment
- Few components in environment
- Components are somewhat similar and
remain basically the same
- Minimal need for sophisticated
knowledge of components

Cell 3:
- Stable and predictable environment
- Many components in environment
Complex - Components are not similar to one
another and remain basically the same
- High need for sophisticated
knowledge of components
Cell 4:
- Dynamic and unpredictable environment
- Many components in environment
- Components are not similar to one
another and remain basically the same
- High need for sophisticated knowledge
of components

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 - Environmental complexity: the number of components in an organization’s environment and the extent
of the knowledge that the organization has about those components. (số lượng và mức độ hiểu biết về
những thành phần)
- An organization deals with complexity in various way
- E.g: Hasbro Toy Comp simplified its environment by acquiring many of its competitors
- An organization also needs knowledge about its environment.
- E.g: Pinterest’s managers have to know how to deal with their Internet service provider
- Managing Stakeholder Relationships
- Stakeholders: any constituencies (cử tri) in the organization’s environment that are affected by
an organization’s decisions and actions
- An organization’s most common stakeholders
- Employees
- Customers
- Social and political action groups
- Competitors
- Trade and industry associations
- Government
- Media
- Suppliers
- Communities
- Shareholders
- Unions
- Managers should care about managing stakeholder relationships because it can lead to desirable
organizational outcomes (more success, innovation, improved predictability predictability of
environmental change)
- Managers need to consider their interests as they make decisions

III. ORGANIZATIONAL CULTURE: CONSTRAINTS AND CHALLENGES

1. What is organizational culture?
- Organizational culture: The shared values, principles, traditions, and ways of doing things that
influence the way organizational members act and that distinguish the organization from other
organizations
- Criticism of spiritual organizational cultures is incompatibility between profits and spirituality
- Spiritual organizations tend to be intolerant of employees who commit mistakes.
- Workplace spirituality has become important in the contemporary workplace because it
gives employees a sense of purpose
- E.g: Tesla Motors's culture is product innovation ( Creation of batteries that enable automobiles
to travel greater distance)
- Dimensions of Organizational Culture:
- Attention to detail: degree to which employees are expected to exhibit precision (độ chính xác),
analysis, and attention to detail

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 - Outcome orientation: degree to which managers focus on results or outcomes rather than on
how these outcomes are achieved (process)
- People orientation: degree to which management decisions take into account the effects on
people in the organization
- Workplace spirituality most closely related
- very concerned with the effects of outcomes on employees in the organization.
- Team orientation: degree to which work is organized around teams rather than individuals
- Aggressiveness (hiếu chiến): degree to which employees are aggressive and competitive rather
than cooperative (hợp tác)
- Stability: degree to which organizational decisions and actions emphasize maintaining the status
quo
- Innovation and risk taking: degree to which employees are encouraged to be innovative and to
take risks
- How the dimensions can create in different cultures
- Organization A:
- Discourage risk-taking and change
- Fully document all decision and provide detailed data to support the recommendations
- Required to follow rules and regulations
- Work activities are design around individuals
- Organization B:
- Risk-taking and change rewarded
- Creativity and innovation rewarded
- Management trusts employees
- Work designed around teams

2. Strong cultures
- Strong cultures: organizational cultures in which the key values are intensely held and widely shared
(giá trị quan trọng được giữ vững và chia sẻ rộng rãi)
→ greater influence on employees than weaker cultures
- Eg: Disney Theme Parks: where customers are “guests” , a job is a “part” and a uniform is a
“costume”
- Strong Versus Weak Cultures

Strong Weak

Values widely shared Values limited to a few people – usually top

management

Culture conveys (truyền đạt) consistent Culture sends contradictory (mâu thuẫn, đối
messages about what’s important nghịch) messages about what’s important

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 Most employees can tell stories about company Employees have little knowledge of company
history or heroes history or heroes

Employees strongly identify with culture Employees have little identification with culture

Strong connection between shared values and Little connection between shared values and
behaviors behaviors

3.Where culture comes from and how does it continue?

- The original source of the culture usually reflects the vision of the founders.
- Once the culture is in place, certain organizational practices help maintain it.
- The actions of top managers also have a major impact on the organization’s culture.
- Finally, organizations help employees adapt to the culture through socialization
- Socialization: The process that helps employees adapt to the organization’s culture

4. How do employees learn culture?

- Stories: a narrative of significant events
- Organization's founder story
- Start-up stories
- Rule breaking
- Found stories in the company website
- Ritual : are repetitive sequences of activities that express and reinforce the important values and goals
of the organization
- E.g: Mary Kay Cosmetics' annual awards ceremony for its sales representatives
- Material artifacts and symbols: employee's dress code, the types of automobiles provided to
executives, executive “perks" (đặc quyền), etc.
- Language: a way to identify and unite (đoàn kết) members of a culture
- E.g: develop unique terms to describe equipment, key personnel, suppliers, customers, etc.
- Rumors, gossip:
- E.g: middle manager date with employees
→ that company is not strictly controlled.

5. How culture affects managers?

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 - Because on organization's culture constrains (ràng buộc) what they can and cannot do and how they
manage it's particularly relevant to managers

Planning Organizing

- The degree of risk that plans should contain
- Whether plans should be developed by
individuals or teams
- The degree of environmental scanning in which
management will age
- How much autonomy should be designed into
employees' jobs
- Whether tasks should be done by individuals or in
teams
- The degree to which department managers interact
with each other

Leading Controlling

- The degree to which managers are concerned
with increasing employee job satisfaction
- What leadership styles are appropriate
- Whether all disagreements even constructive
ones should be eliminated
- Whether to impose external controls or to allow
employees to control their own actions
- What criteria should be emphasized in employee
performance evaluations
- What repercussions (hậu quả) will occur from
exceeding one's budget

IV. CURRENT ISSUES IN ORGANIZATIONAL CULTURE

1. Creating an innovative culture.
- Characteristics of an innovative culture:
- Challenge and involvement
- Freedom
- Trust and openness
- Idea time
- Playfulness/humor
- Conflict resolution
- Collaborating is the conflict resolution techniques are conflicts resolved by seeking an
advantageous solution for all the parties involved
- Debates
- Risk taking

2. Creating a customer - responsive culture

- An organizational culture focused on responding to the needs of customers the moment they need it.
Characteristics of Customer Suggestions for Managers
Responsive Culture

Type of employee Hire people with personalities and attitudes consistent with customer
service: friendly, attentive, enthusiastic, patient, good listening skills

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 Type of job environment Design jobs so employees have as much control as possible to satisfy
customers, without rigid (cứng rắn) rules and procedures

Empowerment Give service-contact employees the discretion (sự tùy ý) to make day-to-day
decisions on job-related activities

Role clarity Reduce uncertainty about what service-contact employees can and can’t do
by continual training on product knowledge, listening, and other behavioral
skills

Consistent desire to satisfy Clarify organization’s commitment to do whatever it takes, even if it’s
and delight customers outside an employee’s normal job requirements

3.Creating a Sustainability Culture

- For many companies, sustainability is developed into the organization’s overall culture.

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 CHAPTER 8: PLANNING AND GOAL-SETTING

I. THE WHAT AND WHY OF PLANNING.

1. What is planning?
- Planning: Management function that involves setting goals, establishing strategies for achieving those
goals, and developing plans to integrate and coordinate work activities.
- Planning provides direction to managers and non-managers alike
- Formal planning:
- Specific goals covering specific time period
- Goals written and shared to reduce ambiguity and create a common understanding about
what needs to be done
- Specific plans exist for achieving these goals

2. Why do managers plan?

- Provides direction to managers and nonmanagers alike
- Reduces uncertainty by forcing managers to look ahead, anticipate (dự đoán) change, consider the
impact of change, and develop appropriate responses.
- Minimizes waste and redundancy
- Establishes the goals or standards used in controlling.

3. Planning and Performance

- Formal planning is associated with positive financial results
- Higher profits
- Higher return on assets
- Doing a good job of planning and implementing those plans plays a bigger part in high performance
than how much planning is done
- Rather than formal planning, the external environment is the culprit (yếu tố) that led to higher
performance.
- The planning - performance relationship is influenced by the planning time frame.

II. GOALS AND PLANS

- Goals (Objective): desired outcomes or targets which guide management decisions and form the criteria
against which work results are measured.
- Plans: Documents that outline how goals are going to be met. Include:
- Resource allocations
- Schedules
- Other necessary actions to accomplish the goals

1. Types of Goals:
- Financial goals: related to the financial performance of the organization

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 - E.g: discount retailer Dollar General announced its plan to demonstrate sales growth of 7 – 10%
in 2016, with earnings per share (profit divided by the total number of company stock shares) to
increase by 10 – 15%
- Strategic goals: related to all other areas of an organization’s performance
- E.g: The United Nations World Food Programs: to ensure that no child goes to bed hungry
- Most companies' goals can be classified as either strategic or financial
- Stated goals: Official statements (tuyên bố chính thức) of what an organization says, and what it wants
its stakeholders to believe, its goals are.
- Found in an organization’s charter (điều lệ), annual report, public relations announcements, or in
public statements made by managers
- Stated Goals are conflicting and influenced by what various stakeholders think organizations
should do.
- E.g:
- Nike’s goal is “delivering inspiration and innovation to every athlete.”
- Canadian company EnCana’s vision is to “be the world’s high performance benchmark
independent oil and gas company.”
- Real goals: Those goals an organization actually pursues (thực sự theo đuổi) - observe what
organizational members are doing.
- E.g: Universities say their goal is limiting class sizes, facilitating close student-faculty relations,
and actively involving students in the learning process, but they put students into 300+ student
lecture classes.

2. Types of Plans

- Breadth organizational plans:

- Strategic plans: Plans that apply to the entire organization and establish the organization’s
overall goals.
- The most important plan
- This is the direction of a company and affects everyone. Therefore, everyone in the
company will reflect and follow the strategies

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 - Eg: A company’s strategy is to go green. Even on their trip, they still need to apply “go
green” style.
- Operational plans: Plans that encompass (bao trùm) a particular operational area of the
organization
- Eg: The operational plans of Egytrans guide decisions about new products and business
units to support the strategic plan.
⇒ Strategic plans and operation plans are different because strategic plans are broad while operation
plans are narrow.
- Time-frame organizational plans:
- Long-term plans: Plans with a time frame beyond three years.
- Short-term plans: Plans covering one year or less.
- Specificity organizational plans:
- Specific plans: Plans are clearly defined and leave no room for interpretation (diễn giải).
- A specific plan states its objectives (mục đích) in a way that eliminates ambiguity and
problems with misunderstanding.
- Eg: A specific plan of Rolls-Royce’s marine equipment business is to save costs by
eliminating 800 jobs in several countries, which amounts to 17 percent of its total
workforce.
- Directional plans: are flexible plans that set out general guidelines.
- Provide focus (trọng tâm) but don’t lock managers into specific goals or courses of
action.
- Eg: Morning Star Company’s professional employees self-manage their relationships
with colleagues, customers, and suppliers without specific directions from company
executives.
- Frequency of Use Organizational plans
- Single-use plan: A one-time plan specifically designed to meet the needs of a unique situation.
- Eg: Walmart’s top-level executives formulated a single-use plan for expanding the number of
their stores in China.
- Standing plans: ongoing plans that provide guidance for activities performed repeatedly.
- Eg: France’s LVMH applies a standing plan to handle issues under its ethical code of conduct to
employees and to suppliers.

3. Other way to identify types of plan (by Berlin)

- Based on important - breadth

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 1. CEO recruitment: it’s important because CEO is an important position. But it does not really impact
the employees because it’s a recruitment.
2. My own career: it’s somehow not important to the company and it’s only impact yourself, so it’s low
both important and breadth
3. Extra coffee machine: it’s not really important but it impact nearly everyone
4. Strategy: the biggest important and breadth

III. SETTING GOALS AND DEVELOPING PLANS

1. Approaches to Setting Goals
- Types of Goal-setting:
- Traditional goal setting (top-down): An approach to setting goals in which top managers set
goals that then flow down through the organization and become subgoals for each organizational
area.
- Manager is the main character
- Top-down method: translate the high goals into the specific goal
- Eg: The president tells the vice president of production what he expects
manufacturing costs to be for the coming year and tells the marketing vice
president what level he expects sales to reach for the year.
- Problem: When top managers define the organization’s goals in broad terms, managers
at each level define the goals and apply their own interpretations (diễn giải) and biases as
they make them more specific. Imposed (áp đặt), the real talent cannot touch,
wholeheartedly performed, and limited the growth of them.
- Transition of strategic goals into departmental, team, and individual goals is
difficult.
- Eg: Swisscom’s managers create operational plans for short-term projects and set
deadlines measured in terms of days or weeks rather than long-term ones.
Therefore, employee teams meet to assess success and determine next steps to
ensure that innovations are implemented with speed and quality

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 - Means-ends chain (phương tiện - giá trị cuối cùng): An integrated network of goals in which the
accomplishment (hoàn thành) of goals at one level serves as the means for achieving the goals,
or ends, at the next level.
- The goals achieved at lower levels become the means to reach the goals (ends) at the next
level. And the accomplishment of goals at that level becomes the means to achieve the
goals (ends) at the next level and on up through the different organizational levels.
- Management by objectives (MBO) - bottom up: A process of setting mutually agreed (nhất trí)
upon goals and using those goals to evaluate employee performance. (opposite to traditional)
- Involve everyone
- With the strategy of the company, you also set your own goal
- Empower: let the employees make their own decision and participate in this strategy
- Drawback: employee capacity might not enough to understand/adapt the strategic goal,
time consuming, easily lead to conflict
- 4 elements:
- Goal specificity
- Participative decision making
- An explicit (rõ ràng) time period
- Performance feedback.
- Steps:
- 1: The organization’s overall objectives (mục tiêu) and strategies are formulated.
- 2: Major objectives are allocated among divisional and departmental units.
- 3: Unit managers (người quản lý đơn vị) collaboratively set specific objectives for
their units with their managers.
- 4: Specific objectives are collaboratively set with all department members
- 5: Action plans, defining how objectives are to be achieved, are specified (cụ thể
hóa) and agreed upon by managers and employees.
- 6: The action plans are implemented.
- 7: Progress toward objectives is periodically reviewed, and feedback is provided.
- 8: Successful achievement of objectives is reinforced by performance-based
rewards. (Progress toward objectives is periodically reviewed, and feedback is
provided)
- Both Traditional and MBO have their own advantages and disadvantages, so, what should be
applied by the company? (by Berlin)
- Combine both methods:
- Only conduct traditional (bottom-up) in some function which divided by expertise
- Put the goal down to the middle manager, then let each department take a look for
themselves and give feedback.
- Characteristics of well-written goals
- Written in terms of outcomes (kết quả) rather than actions
- Measurable and quantifiable
- Clear as to a time frame

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 - Challenging yet attainable (có thể đạt được - feasibility)
- Written down
- Communicated to all necessary organizational members (When organizational members are
more actively involved in planning, the probability that the plan will be used increases)
⇒ Good goal follow SMART: Specific - Measurable - Attainable - Relevant - Time
- Even the others goal (lower than strategy) can also applied SMART
- Steps in goal setting
- Step 1: Review the organization’s mission, or purpose (also vision)
- Vision: what the company will be? Vision impact your company also your stockholders
- Mission: A broad statement of an organization’s purpose that provides an overall guide to
what organizational members think is important. What should the company do?
- Eg: The Coca-Cola Company’s mission “To refresh the world, to inspire moments
of optimism and happiness, and to create value and make a difference.”
- Step 2: Evaluate available resources
- Step 3: Determine the goals individually or with input from others (ý kiến từ người khác)
- Step 4: Write down the goals and communicate them to all who need to know.
- Step 5: Review results and whether goals are being met

2. Developing Plans
- Contingency factors in planning (yếu tố dự phòng): 3 factors: Organizational level, degree of
environmental uncertainty, and length of future commitments.
- Organization level:
- Lower-level managers do operational planning
- Upper-level managers do strategic planning

- Environmental uncertainty:
- When uncertainty is high, plans should be specific, but flexible
- Time frame of plans:
- Planning for too long or too short a time period is inefficient and ineffective.
- Commitment concept: Plans should extend far enough to meet those commitments
made when the plans were developed.

3. Approaches to Planning
- Traditional Approaches:

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 - Planning is done entirely by top-level managers who often are assisted by a formal planning
department.
- Formal planning department: A group of planning specialists whose sole responsibility is
helping to write organizational plans
- Involving more organizational members in the process

IV. CONTEMPORARY ISSUES IN PLANNING

1. How can managers plan effectively in dynamic environments?
- Develop plans that are specific but flexible
- Keep planning even when the environment is uncertain
- Allow lower organizational levels to set goals and develop plans

2. How can managers use environmental scanning?

- A manager’s analysis of the external environment may be improved by environmental scanning
- Environmental scanning: screening information to detect emerging trends (sàng lọc thông tin để phát
hiện xu hướng mới nổi)
- Process that systematically surveys and interprets relevant data to identify external opportunities
and threats that could influence future decisions.
- It is closely related to a SWOT analysis and should be used as part of the strategic planning
process
- One fastest-growing form of environmental scanning is: Competitor intelligence - gathering
information about competitors that allows managers to anticipate (dự đoán) competitors’ actions rather
than merely react to them.

3. Digital Tools
- Business intelligence : a variety of data that managers can use to make more effective strategic
decisions.
- Sources: company records, industry trends, and competitors’ financial (profits) or market
(market penetration- thâm nhập thị trường) data.
- Digital tools: technology, systems, or software that allow the user to collect, visualize, understand, or
analyze data.
- Eg:
- Software: Microsoft Excel
- Online services: Google Analytics
- Networks that connect computers and people: social media
- Managers can use digital tools to make sense (hiểu) of business intelligence data.
- Digital tools enable managers to make decisions based on a variety of quantitative information
and qualitative information.
- Three Prevalent Digital Tools:
- Data visualization tools: bar chart, pie chart, trend lines, etc.

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 - Cloud computing: refers to storing and accessing data on the Internet rather than on a
computer’s hard drive or a company’s network
- Internet of things (IoT): allows everyday “things” to generate (tạo ra) and store and
share data across the Internet

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 CHAPTER 9: STRATEGIC PLANNING

I. STRATEGIC MANAGEMENT
1. What is strategic management?
- Strategic management is what managers do to develop the organization’s strategies and involves all the
basic management functions—planning, organizing, leading, and controlling.
- Strategies: the plans for how the organization will do what it’s in business to do (thực hiện những việc
cần làm như thế nào), how it will compete successfully, and how it will attract and satisfy its customers
in order to achieve its goals
- According to Dr. Berlin Tran, strategy is the direction of the company
- Business model is how a company is going to make money. (form of the business which based on
financial status)
- One term often used in strategic management
- It focuses on two things:
- Whether customers will value what the company is providing
- Whether the company can make any money doing that.
- E.g: Jeff Bezos pioneered a new business model for selling books to consumers directly online
instead of selling through bookstores.

2. Why Is Strategic Management Important?

- Strategic management is important because:
- Has a positive impact on performance: organizations that use strategic management do have
higher levels of performance.
- Helps managers in all types and sizes decide how to act in face of change and uncertainty
- Helps complex and diverse organizations work together
- Today, both business organizations and non-profit organizations use strategic management.

II. THE STRATEGIC MANAGEMENT PROCESSES

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 - Strategic management process: A six-step process that encompasses (bao trùm) strategic planning,
implementation, and evaluation.
- Step 1: Identifying the Organization’s Current Mission, Goals, and Strategies
- Vision: what the company will be? Vision impacts your company and also your stockholders.
- Mission: a statement of its purpose. What should the company do?
- Eg: Nike’s mission is to “bring inspiration and innovation to every athlete in the world.” What
should a mission statement include?”
- Component of a mission statement:
- Customers
- Markets
- Concern for survival growth, profitability
- Philosophy
- Concern of public image
- Products or services
- Technology
- Self-concept
- Concern for employees

- Step 2: Doing an External Analysis

- Managers need to pinpoint opportunities that the organization can exploit and threats that it must
counteract or buffer against.
- Opportunities: positive trends in the external environment
- Threats: negative trends in the external environment
- Managers perform an external analysis so that they know about what the competition is doing
- Step 3: Doing an Internal Analysis
- Internal analysis: provides important information about an organization’s specific resources
and capabilities.

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 - An organization’s resources: are its assets - financial, physical, human, and intangible that it
uses to develop, manufacture, and deliver products to its customers.
- Capabilities: its skills and abilities in doing the work activities needed in its business.
- Core competencies: The organization’s major value creating capabilities that determine its
competitive weapons.
- E.g: how to inlaid gold on horse wagon (làm sao dát vàng lên xe ngựa)
- After completing an internal analysis, managers should be able to identify organizational
strengths and weaknesses.
- Strengths: Any activities the organization does well or any unique resources that it has.
- Weaknesses are activities the organization doesn’t do well or resources it needs but
doesn’t possess.
- SWOT analysis: The combined external (opportunities - threats) and internal (strengths -
weaknesses) analyses
- You need to study and understand this but it’s (kind of) useless (said Berlin)
- It’s too general so that it’s hard to figure out the strategic goal
- This such suitable for small business
- After completing the SWOT analysis, managers are ready to formulate appropriate strategies
- Exploit (khai thác) an organization’s strengths and external opportunities.
- Buffer (giảm) or protect the organization from external threats
- Correct critical weaknesses (yếu điểm)
- Step 4: Formulating Strategies
- The three main types of strategies managers will formulate include corporate, competitive, and
functional.
- Step 5: Implementing Strategies
- No matter how effectively an organization has planned its strategies, performance will suffer (bị
ảnh hưởng) if the strategies aren’t implemented properly.
- Step 6: Evaluating Results
- How effective have strategies been at helping the organization achieve its goals
- What adjustments are necessary?
- Eg: After assessing the results of previous strategies and determining that changes were needed,
Xerox CEO Ursula Burns made strategic adjustments to regain market share and improve her
company’s bottom line. The company cut jobs, sold assets, and reorganized management.

III. CORPORATE STRATEGIES

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 - Top-level managers typically are responsible for corporate strategies
- Middle-level managers for competitive strategies
- Lower-level managers for the functional strategies.

1. What is corporate strategy?

- A corporate strategy: determines what businesses a company is in or wants to be in and what it wants
to do with those businesses.
- Corporate strategy between corporate and SBU

Corporate SBU

- Allocate resources for SBU - How to compete in that industry

- Determine which industry should the - E.g: should the SBU sell yogurt?
corporate go into Yakult?
- What is the withdraws
- E.g: should the corporate jump into
the dairy industry?

2. What are the types of corporate strategy?

- Growth strategy: A corporate strategy that’s used when an organization wants to expand the number of
markets served or products offered, either through its current business(es) or through new business(es).
- Organizations grow by using concentration, vertical integration, horizontal integration,
diversification.
- Concentration: focuses on its primary line (ngành hàng chính) of business and increases the
number of products offered or markets served in this primary business.
- E.g: Buick has used concentration as a strategy to work toward becoming a luxury
automobile brand
- Vertical integration:
- Backward vertical integration: the organization becomes its own supplier so it can
control its inputs.
- Eg: Walmart plans to build a dairy-processing plant in Indiana to supply
private-label milk to hundreds of its stores
- Forward vertical integration: the organization becomes its own distributor and is able
to control its outputs. (opposite backward vertical integration)
- Example: Apple has more than 400 retail stores worldwide to distribute its
products.
- Horizontal integration: a company grows by combining with competitors
- Eg: NMC Healthcare, which is based in the United Arab Emirates, recently acquired Al
Zahra Hospital in Sharjah. NMC is continuing its expansion throughout the Gulf region.
- Diversification: either related or unrelated.

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 - Related diversification: happens when a company combines with other companies in
different, but related, industries.
- Eg: Google has acquired a number of businesses (some 150 total), including
YouTube, DoubleClick, Nest, and Motorola Mobility.
- Unrelated diversification is when a company combines with firms in different and
unrelated industries.
- Eg: The Tata Group of India has businesses in chemicals, communications and IT,
consumer products, energy, engineering, materials, and services.
- A stability strategy: A corporate strategy in which an organization continues to do what it is currently
doing. (A stability strategy is an organizational strategy in which an organization maintains the status
quo)
- Eg: Continuing to serve the same clients by offering the same product or service, maintaining
market share, and sustaining the organization’s current business operations.
- Renewal strategy: A corporate strategy designed to address declining performance
- 2 types of Renewal Strategy:
- Retrenchment strategy: a short-run renewal strategy used for minor (nhỏ) performance
problems. This strategy helps an organization stabilize operations, revitalize (hồi sinh)
organizational resources and capabilities, and prepare to compete once again.
- Eg: Biogen reduced its workforce by 11% to cut costs.
- A turnaround strategy is a more drastic renewal strategy when an organization’s
problems are more serious.
- Outside consultants are more likely to initiate drastic organizational changes than
insiders are.
- Eg: The CIT Group’s declining profits prompted management to cut costs by
$125 million and sell the company’s aircraft financing business unit to more
effectively focus on commercial lending and leasing

3. How are corporate strategies managed?

- They use a tool called a corporate portfolio matrix
- BCG matrix (Boston Consulting Group Matrix): A strategy tool that guides resource allocation
decisions on the basis of market share and growth rate of SBUs
- Based on market growth rate - cash generation (growth - profit)

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 - Stars: High market share - High anticipated growth rate
- A very good business in both now and future, surely profitable
- Cash Cows: High market share - Low anticipated growth rate
- Currently doing well, but it’s difficult to develop and make profit in the future
- Question Marks: Low market share - High anticipated growth rate
- Currently earning a few profit, which need lots of money invested in, whenever it’s
enough, there would be a strong increase in profit
- Dogs: Low market share/Low anticipated growth rates
- Unprofitable and don’t have growth potential now and in the future.

4. External - internal analysis (by Berlin)

Corporate SBU

External

PESTLE: 5 forces:
- Politics - Competitor
- Economy - New competitor
- Social cultural - Substitute
- Technology - Supplier
- Law - Buyer
- Environment

Internal

BCG matrix (it help corporate analyze 4 types of - Competitive advantages

SBU) - E.g: xe ngựa dát vàng
- Star - Core competencies
- Cash cow - E.g: làm sao dát vàng lên xe ngựa

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 - Question mark
- Dog

IV. COMPETITIVE STRATEGIES

- Competitive strategy: An organizational strategy for how an organization will compete in its
business(es)
- Define a company:
- In the past: a personal household business
- At present: there are many forms of a company but u should only pay attention to 2 types:
Corporate - SBU (or normal company)
- Strategic business unit (SBU): The single independent businesses of an organization that formulate
their own competitive strategies
- Distinguish corporate - SBU:

Corporate SBU - normal company

- Work in many industries - Work in only 1 industry

- E.g: Vingroup: real estate, retail,
automobile, health care, edu, etc.
- SBU: A company belong to a corporate
- E.g: Vinmart, Vin home, Vin uni, Vin
school, Vin mec, etc.
- Normal company: company that doesn’t
belonged to a corporate
- E.g: Coolmate

1. The role of competitive advantage

- Core competencies: The organization’s major value creating capabilities that determine its competitive
weapons (advantages).
- E.g: how to inlaid gold on horse wagon (làm sao dát vàng lên xe ngựa)
- Competitive advantage: What sets an organization apart; its distinctive edge (cạnh tranh đặc biệt)
- Competitive advantage is a necessary ingredient for an entrepreneurial venture's long-term
success and survival.
- Eg: gilded carriage (xẹ ngựa dát vàng)
- It can come from the company’s resources because the organization has something its
competitors do not have
- Eg: Walmart’s state-of-the-art information system allows it to monitor and control inventories
and supplier relations more efficiently than its competitors
- Quality as a competitive advantage
- If implemented properly, quality can be a way for an organization to create a sustainable
competitive advantage.
- If a business is able to continuously improve the quality and reliability (mức độ tin cậy) of its
products, it may have a competitive advantage that can’t be taken away.

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 - Design thinking as a competitive advantage
- Using design thinking means thinking in unusual ways about what the business is and how it’s
doing what it’s in business to do.
- Design thinking is to the design of amazing products, it also means recognizing that “design”
isn’t just for products or processes but for any organizational work problems that can arise.
- Social media as a competitive advantage
- Successful social media strategies should:
- Help people inside and outside the organization connect
- Reduce costs or increase revenue possibilities or both
- Eg: The Oreal beauty company is forging long-term relationships with “influencers,”
popular social-media users who have large followings on Instagram, Twitter, and other
networks.
- Social media tools can boost productivity
- Eg: At Trunk Club, an online men’s clothes shopping service that sends out, on request,
trunks to clients with new clothing items, the CEO uses a software tool called Chatter to
let the company’s personal shoppers know about hot new shipments of shoes or clothes
- Sustaining competitive advantage
- The organization must be able to sustain that advantage; that is, to keep its edge despite
competitors’ actions or evolutionary (phát triển) changes in the industry.
- An important part of doing this is an industry analysis, which is done using the five forces
model.
- Five forces model (Michael Porter)
- Threat of new entrants (competitor): How likely is it that new competitors will come into the
industry?
- Threat of substitutes: How likely is it that other industries’ products can be substituted for our
industry’s products?
- Bargaining power of buyers (quyền thương lượng của người mua): How much bargaining
power do buyers (customers) have?
- Bargaining power of suppliers (quyền thương lượng của nguồn cung) How much bargaining
power do suppliers have?
- Current rivalry (sự cạnh tranh hiện tại): How intense (kịch liệt) is the rivalry among current
industry competitors?

2. Choosing a Competitive Strategy

- Cost leadership strategy: an organization competes on the basis of having the lowest costs (costs or
expenses, not prices) in its industry. (chi phí hoạt động thấp nhất ngành)
- Differentiation strategy: offering unique products that are widely valued by customers.
- The focus strategy: involves a cost advantage (cost focus) or a differentiation advantage (differentiation
focus) in a narrow segment (trong một phân khúc) or niche.
- Note: Stuck in the middle an organization can’t develop a cost or a differentiation advantage

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 - Functional strategy (Functional-level strategy): The strategies used by an organization’s various
functional departments to support the competitive strategy.
- Eg: When R. R. Donnelley & Sons Company, a Chicago-based printer, wanted to become more
competitive and invested in high-tech digital printing methods, its marketing department had to
develop new sales plans and promotional pieces, the production department had to incorporate
the digital equipment in the printing plants, and the human resources department had to update
its employee selection and training programs.

V. CURRENT STRATEGIC MANAGEMENT ISSUES

1. The need for strategic leadership
- Strategic leadership: The ability to anticipate, envision (hình dung), maintain flexibility, think
strategically, and work with others in the organization to initiate changes that will create a viable (khả
thi) and valuable future for the organizations
- Effective strategic leadership
- Determining the organization’s purpose or vision
- Exploiting (khai thác) and maintaining the organization’s core competencies
- Developing the organization’s human capital
- Creating and sustaining a strong organization culture
- Creating and maintaining organizational relationships
- Reframing prevailing views (điều chỉnh chỉnh các quan điểm phổ biến) by asking penetrating
(xuyên suốt) questions and questioning assumptions
- Emphasizing ethical organizational decisions and practices
- Establishing appropriately balanced organizational controls

2. The need for strategic flexibility

- Strategic flexibility: The ability to recognize major external changes, to quickly commit resources
(nhanh chóng cam kết/củng cố nguồn lực) and to recognize when a strategic decision was a mistake
- Developing Strategic Flexibility:
- Encourage leadership unity (thống nhất) by making sure everyone is on the same page
- Keep resources fluid (linh hoạt) and move them as circumstances warrant (trường hợp cần thiết)
- Have the right mindset to explore and understand issues and challenges.

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 - Know what’s happening with strategies currently being used by monitoring and measuring
results.
- Encourage employees to be open about disclosing (tiết lộ) and sharing negative information.
- Get new ideas and perspectives from outside the organization.
- Have multiple alternatives when making strategic decisions.
- Learn from mistakes.

3. Important organizational strategies for today’s environment

- E-business strategies
- Defines a long-term plan for putting in place the right digital technology for a company to
manage its electronic communications with all partners - that's internal through the intranet and
externally through to customers, suppliers and other partners.
- Managers use e-business strategies to develop a sustainable competitive advantage.
- A cost leader (compete with lowest cost/expense in the industry) can use e-business to lower
costs in a variety of ways.
- Eg: It might use online bidding (đấu thầu) and order processing to eliminate the need for
sales calls and to decrease sales force expenses
- A differentiator needs to offer products or services that customers perceive and value as unique.
- E.g: A business might use Internet-based knowledge systems to shorten customer
response times. Provide chat rooms or discussion boards for customers to interact with
others who have common interests, design niche websites that target specific groups with
specific interests, or use websites to perform standardized office functions (payroll or
budgeting)
- Customer service strategies
- Giving customers what they want
- Eg: New Balance Athletic Shoes gives customers a truly unique product: shoes in varying
widths.
- Having an effective customer communication system
- An organization’s culture is important to providing excellent customer service.
- Innovation strategies
- Managers must first decide where the emphasis of their innovation efforts will be.
- Basic scientific research: requires the most resource commitment because it involves the
nuts-and-bolts work of scientific research in numerous industries (yêu cầu cam kết nhiều
nguồn lực nhất vì nó liên quan đến công việc nghiên cứu khoa học trong nhiều ngành)
- Genetic engineering, pharmaceuticals, information technology, or cosmetics
- Product development strategies also requires a significant resource investment, it’s not
in areas associated with scientific research
- Focus on process development: an organization looks for ways to improve and enhance
its work processes.
- First mover: An organization that’s first to bring a product innovation to the market or to use a
new process innovation

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 - Advantages:
- Reputation for being innovative and industry leader
- Cost and learning benefits
- Control over scarce (khan hiếm) resources and keeping competitors from having
access to them
- Opportunity to begin building customer relationships and customer loyalty
- Disadvantages:
- Uncertainty over exact direction technology and market will go
- Risk of competitors imitating (bắt chước) innovations
- Financial and strategic risks
- High development costs

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 CHAPTER 10: FOSTERING ENTREPRENEURSHIP

I. THE CONTEXT OF ENTREPRENEURSHIP

1. What is entrepreneurship?
- Entrepreneurship: the process of starting new businesses, generally in response to opportunities
- Entrepreneurships are more likely than large businesses to generate patentable ideas.
- People who engage in entrepreneurship take advantage of opportunities to create new products or
services, or change existing ones.
- Entrepreneurship is important to a nation's economic development.
- Innovation is what distinguishes an entrepreneurial venture.
- Entrepreneurs: person who are pursuing (theo đuổi) opportunities by changing, revolutionizing (cách
mạng hóa), transforming (chuyển đổi), or introducing new products or services
- Innovating is a process of changing, experimenting, transforming, and revolutionizing.
- Source of idea for the would-be entrepreneur: pure research
- Eg: Nanxi Liu, founder of start-up Nanoly Bioscience, recognized the challenges of refrigerating
vaccines, which is necessary to maintain potency. Nanoly Bioscience develops and distributes
polymers that allow vaccines to be stored without refrigeration. This innovation enables doctors
to provide lifesaving vaccinations in developing countries where millions die from preventable
diseases

Entrepreneurship Ventures Small Businesses

Organizations that pursue opportunities, are An organization that is independently owned,

characterized by innovative practices operated, and financed
Have growth and profitability as their main goals. Has fewer than 100 employees
Doesn’t necessarily engage in any new or
Offer something new:
innovative practices
- New process: sell an existed product in a Has relatively little impact on its industry
new way Sell an existing product
- New product: wholeheartedly new

2. Entrepreneurship versus self-employment?

- Self-employment: Individuals who work for profit or fees in their own business, profession (nghề
nghiệp), trade, or farm.
- 2 types of self-employment:
- Open your own business:
- Higher investment → risker
- If you fail: tons of loan
- Take more responsibility
- Freelance
- You offer yourself as a service

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 - You won't be loan anyone
- Freelance also has marketing, sales, customer service, etc.
- Less deal with production, HR people, but you may deal with logistic
- Compare Entrepreneurship and Self-Employment.
- Entrepreneurs and self-employed both individuals understand market needs.
- Eg:
- Mark recognizes demand for house-cleaning services, and he decides to start a business
cleaning houses for a fee.
- Nanxi Liu is an entrepreneur because she saw an opportunity to make vaccinations
available to individuals where refrigeration is not available.
- Entrepreneurs may be self-employed or they become employees of the company they have
started.
- Self-employed persons always work for themselves.
- Self-employed individuals make all the business decisions about how the work gets done.
- Self-employment does not preclude (ngăn cản) having one or more employees.
- Tax requirements and certain laws require that both entrepreneurs and self-employed individuals
create a legally recognized organization.
- Eg: Mark may set up a sole proprietorship, while Nanxi’s company is registered as a
corporation.

3. Why is entrepreneurship important?

- Innovation: a process of changing, experimenting, transforming, and revolutionizing, and is a key
aspect of entrepreneurial activity.
- Job creation: Because all businesses - whether they fit the definition of entrepreneurial ventures or not -
were new start-ups at one point in time, the most suitable measure we have of the important role of
entrepreneurship is to look at the number of new firms over a period of time.
- Global entrepreneurship: An annual assessment (đánh giá) of global entrepreneurship called the
Global Entrepreneurship Monitor (GEM) studies the impact of entrepreneurial activity on economic
growth in various countries.

4. The entrepreneurial process

- First step: Exploring the entrepreneurial context.
- Includes scanning the economic, political/legal, social, and work environment.
- Find the problem in the market (especially the one that no one solve)
- E.g: Edu2review create a forum for students and parents sharing and reviewing
Vietnamese highschool → market problem: lack of information to choose a suitable
highschool in Viet Nam
- The context includes (PESTLE) - using this to find out the problem:
- Politics
- Economy
- Social cultural

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 - Technology
- Law
- Environment
- Otherwise, you can also based on your intuition
- Personal experience: you need to have experiences in lots of different industries to figure
out the problem outside the society
- Exposure: the more exposure you are, the more knowledge, skill, and problem you could find.
- Second step: Identifying opportunities and possible competitive advantages
- It’s very important to identify the problem because that’s your potential opportunity
- If that is an unsuitable opportunity, stop right here (cố quá là quá cố - said Berlin)
- Answer the core question: Am I capable of transforming that problem into the actual business?
- Can it be real to run?
- So… what should I do?
- Core competencies?
- Competitive advantages?
- Third step: Starting the venture (business). Include:
- Researching the feasibility of the venture; using 5 forces:
- Can it be competitive?
- If it’s completely new → don’t need to worry about the competitors
- If the other person found it interesting and copied your idea, how could you solve this
issue?
- Who’s going to be your supplier/buyer?
- Planning the venture
- Organizing the venture
- Launching the venture
- Fourth step: Managing the venture
- Multitask
- Unclear organization design (as an entrepreneur, your business quite small)
- Few facilities
- Unclear procedure
- Whatever you do, your top prioritize: GROWTH
- In order to pay loans, liabilities
- Follow the KPI
- If your business has lots of customers, you should borrow more many to growth
your business
- Also recruiting employees to grow your business
⇒ An entrepreneur does by managing processes, managing people, and managing growth.

5. What do entrepreneurs do?

- An entrepreneur is engaged in assessing the potential for the entrepreneurial venture (đánh giá tiềm năng
cho hoạt động kinh doanh) and then dealing with start-up issues

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 - In exploring the entrepreneurial context, entrepreneurs gather information, identify potential
opportunities, and pinpoint (xác định) possible competitive advantage(s). (examining the state of the
economy, the regulatory situation, social trends, and the local labor supply)
- The purpose of examining the state of the economy, the regulatory situation, social trends, and
the local labor supply is to identify opportunities and possible competitive advantages.
- Then, armed with this information, the entrepreneur researches the venture’s feasibility uncovering
business ideas, looking at competitors, and exploring financing options
- The entrepreneur proceeds (tiến hành) to plan the venture:
- Developing a viable (khả thi) organizational mission
- Exploring organizational culture issues
- Creating a well-thought-out (chu đáo) business plan (Among the more important pre-launch
activities the entrepreneur must perform is the creation of a business plan)
- Figure out the core competencies and competitive advantages
- The entrepreneur must look at organizing the venture, which involves choosing a legal form of business
organization, addressing other legal issues such as patent or copyright searches, and coming up with an
appropriate organizational design for structuring how work is going to be done
- Launch the venture
- Setting goals and strategies
- Establishing the technology-operations methods
- Marketing plans
- Information systems
- Financial - accounting systems
- Cash flow management systems
- The entrepreneurial venture is up and running (hoạt động), the entrepreneur’s attention switches to
managing (company) it:
- Making decisions
- Establishing action plans
- Analyzing external and internal environments
- Measuring and evaluating performance
- Making needed changes.
- The entrepreneur must perform activities associated with managing people:
- Selecting and hiring
- Appraising (thẩm định) and training
- Motivating
- Managing conflict, delegating (ủy quyền) tasks
- Being an effective leader.
- The entrepreneur must manage the venture’s growth:
- Developing and designing growth strategies
- Dealing with crises
- Exploring various avenues (khám phá các con đường khác nhau) for financing growth
- Placing a value on the venture

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 - Implementing the financial analysis (this is the most important thing to the start-up)
- Where do you have your money?
- Own money, friends, family
- Bank
- Loans
- Involves interest
- Mortgage (thế chấp)
- Investor:
- 100% involved in your business. How much are their involve base on the amount
of money they are invested in
- They have the decision making power
- Angel investor: most of the time is individual investment, they use their own
money to invest
- Venture capitalist: most of the time is a investment company, they gather money
from people who want to invest and then investing in a company
- Exiting the venture
- Sell (the easiest way)
- Transfer the ownership
- IPO (lên sàn)
- Dissolution (giải thể): highly should not do this to your business
- Consider about your employees (they will unemployment)
- Many lives rely on your business =((
- You should make sure your manager and employees have income, money or at least let
them have enough time to find another job

6. Social responsibility and ethics issues facing entrepreneurs

- Entrepreneurs take their social responsibilities seriously.
- Eg: Kirchner and her team use a digital platform for hospitals and clinics to find matches, and
SIRUM then ships medication to where it’s needed most.
- Pursued opportunities with products and services that protect the global environment.
- Eg: Purpose Energy of Woburn, Massachusetts, developed a technology that removes waste by
products from the beer brewing industry and changes them to renewable natural gas, treated
water, and organic fertilizer.
- Ethical considerations play a role in decisions and actions of entrepreneurs.
- Entrepreneurs do need to be aware of the ethical consequences of what they do.

II. START-UP AND PLANNING ISSUES

1. Identifying environmental opportunities and competitive advantage
- The unexpected
- When situations and events are unanticipated (không lường trước), opportunities can be found.
The event may be an unexpected success (positive news) or an unexpected failure (bad news).

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 - Eg: Sony cofounder Masaru Ibuka wanted to listen to music while on long international flights,
buy portable music players did not exist at the time.23 In 1979, he asked engineers to develop a
portable device for personal use. Ibuka was impressed with the results, which led him to present
the device to Sony Chairman Akio Morita.
- The incongruous (không hợp lý)
- When something is incongruous, it exhibits inconsistencies (mâu thuẫn) and incompatibilities
(không tương thích) in the way it appears.
- Eg: Herb Kelleher, founder and president of Southwest Airlines, recognized incongruities in the
way that commercial airlines catered to the traveling public. Most airlines focused on providing
full service, including meals, to business travelers on routes between large business hubs. Ticket
prices were high, but business travelers could absorb the cost. Although this approach was
profitable, it ignored the opportunity to serve leisure travelers who wanted to travel between
smaller cities (not business hubs). Kelleher knew that a better way was possible. His company
offered lower fares with no-frill service
- The process need (trying the whole process)
- Because the full leap hasn’t been possible, opportunities abound in the tiny steps
- Eg: Although researchers haven’t yet discovered a cure for cancer, many successful
entrepreneurial biotechnology ventures have been created as knowledge about a possible cure
continues to grow.
- Industry and market structures
- Technology, social values and consumer tastes (thị hiếu người tiêu dùng) can shift (thay đổi) the
structures of industries and markets.
- These markets and industries become open targets for nimble (nhanh nhẹn) and smart
entrepreneurs
- Eg: Before Henry Ford and Frederick W. Taylor collaborated, automobiles were built by
craftsmen, one at a time. After the establishment of the assembly line, Ford was able to
produce automobiles faster than his competitors. but with equivalent quality. and sell
them for a fraction of the cost.
- Demographics
- Demographic changes influence industries and markets by altering the types and quantities of
products and services desired and customers’ buying power. (Những thay đổi về nhân khẩu học
ảnh hưởng đến các ngành và thị trường bằng cách thay đổi các loại và số lượng sản phẩm và dịch
vụ mong muốn cũng như sức mua của khách hàng.)
- Eg: WebMD has been successful partly because it anticipated the needs of the aging population.
WebMD publishes news and information about human health and well-being for health care
providers and consumers. Pharmaceutical companies also recognize the importance of
demographic trends, which has led to substantial advertising on WebMD.
- Changes in perception
- Changes in these attitudes and values create potential market opportunities for alert
entrepreneurs.

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 - E.g: changes in our perception of whether certain food groups are good has brought about
product and service opportunities for entrepreneurs to recognize and capture.
- New knowledge
- Although not all knowledge-based innovations are significant, new knowledge ranks pretty high
on the list of sources of entrepreneurial opportunity
- Eg: French scientists are using new knowledge about textiles to develop a wide array of
innovative products to keep wearers healthy and smelling good

2. Researching the venture’s feasibility: ideas

- When exploring idea sources entrepreneurs should look for:
- Limitations of what is currently available
- New and different approaches
- Advances and breakthroughs
- Unfilled niches
- Trends and changes
- Eg: Joy Mangano, creator of the Miracle Mop, wanted to make mopping floors easier. She came
up with the idea of a loop construction of the mop head fibers and a twisting wringing
mechanism to keep hands out of the dirty water.
- Evaluating entrepreneurial ideas revolves around personal and marketplace considerations:

Personal Considerations Marketplace Considerations

Do you have the capabilities to do what you’ve
selected?
Are you ready to be an entrepreneur?
Are you prepared emotionally to deal with the
stresses and challenges of being an entrepreneur?
Are you prepared to deal with rejection and
failure?
Are you ready to work hard?
Do you have a realistic picture of the venture’s
potential?
Have you educated yourself about financing
issues?
Are you willing and prepared to do continual
financial and other types of analyses?
Who are the potential customers for your idea:
who, where, how many?
What similar or unique product features does
your proposed idea have compared to what’s
currently on the market?
How and where will potential customers purchase
your product?
Have you considered pricing issues and whether
the price you’ll be able to charge will allow your
venture to survive and prosper?
Have you considered how you will need to
promote and advertise your proposed
entrepreneurial venture?

- A more structured evaluation approach that an entrepreneur might want to use is a feasibility study: an
analysis of the various aspects of a proposed (đề xuất) entrepreneurial venture designed to determine its
feasibility. Outline of a feasibility study:
- Introduction, historical background, description of product or service

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 1. Brief description of proposed entrepreneurial venture
2. Brief history of the industry
3. Information about the economy and important trends
4. Current status of the product or service
5. How you intend to produce the product or service
6. Complete list of goods or services to be provided
7. Strengths and weaknesses of the business & ease of entry into the industry, including
competitor analysis
- Accounting considerations
1. Pro forma balance sheet
2. Pro forma profit and loss statement
3. Projected cash flow analysis
- Management considerations
1. Personal expertise - strengths and weaknesses
2. Proposed organizational design
3. Potential staffing requirements
4. Inventory management methods
5. Production and operations management issues
6. Equipment needs
- Marketing considerations
1 Detailed product description
2. Identify target market: who, where, how many
3. Describe place products will be distributed: location, traffic, size, channels, etc.
4. Price determination: competition, price lists, etc.
5. Promotion plans: role of personal selling, advertising, sales promotion, etc.
- Financial considerations
1. Start-up costs
2. Working capital requirements
3. Equity requirements
4. Loans - amounts, type, conditions
5. Breakeven (hòa vốn) analysis
6. Collateral (tài sản thế chấp)
7. Credit references
8. Equipment and building financing - costs and methods
- Legal considerations
1. Proposed business structure type: conditions, terms, liability, responsibility; insurance
needs buyout and succession issues
2. Contracts, licenses, and other legal documents
- Tax considerations: sales/property/employee; federal, state, and local
- Appendix: charts/graphs, diagrams, layouts, résumés, etc.

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3. Researching the venture’s feasibility - competitors
- What types of products or services are competitors offering?
- What are the major characteristics (đặc điểm chính) of these products or services?
- What are their products’ strengths and weaknesses?
- How do they handle marketing, pricing, and distribution?
- What do they attempt to do differently from other competitors?
- Do they appear to be successful at it? Why or why not?
- What are they good at?
- What competitive advantage(s) do they appear to have?
- What are they not so good at?
- What competitive disadvantage(s) do they appear to have?
- How large and profitable are these competitors?

4. Researching the venture’s feasibility - financing

- Personal resources: personal saving, home equity, personal loans, credit cards, friends, etc.
- Financial institutions: banks, saving and loans institutions, government guaranteed loans, credit unions,
etc.
- Venture capitalists: external equity financing provided by professionally managed pools of investor
money
- Angel investors: a private investor (or group of private investors) who offers financial backing to an
entrepreneurial venture in return for equity in the venture
- Initial public offering (IPO): the first public registration and sale of a company’s stock
- National, state, and local governmental business development programs
- Unusual sources: television shows, judged competitions, crowdfunding, etc.

5. Developing a business plan

- Business plan: A written document that summarizes a business opportunity and defines and articulates
(nêu rõ) how the identified opportunity is to be seized (nắm bắt) and exploited (khai thác)
- To demonstrate social responsibility, entrepreneurs are encouraged to consider community goals
in their business plans.
- A good business plan covers six major areas: executive summary, analysis of opportunities, analysis of
the context, description of the business, financial data and projections, supporting documentation
- Executive summary
- A brief mission statements
- Primary goals
- Brief history of the entrepreneurial venture, maybe in the form of a timeline
- Key people involved in the venture
- Nature of the business
- Concise product or service descriptions
- Brief explanations of market niche, competitors, and competitive advantage
- Proposed (đề xuất) strategies

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 - Selected key financial information
- Analysis of opportunity
- An entrepreneur presents the details of the perceived opportunity.
- Details include:
- Sizing up the market by describing the demographics of the target market
- Describing and evaluating industry trends
- Identifying and evaluating competitors.
- Analysis of the context
- Describes the broad external changes and trends taking place in the economic, political-legal,
technological, and global environments.
- Description of the business
- Describes how the entrepreneurial venture is going to be organized, launched, and managed.
- Includes:
- A thorough (kỹ lưỡng) description of the mission statement
- A description of the desired organizational culture
- Marketing plans
- Overall marketing strategy
- Pricing
- Sales tactics
- Service-warranty policies
- Advertising and promotion tactics
- Product development plans: an explanation of development status, tasks, difficulties and
risks, and anticipated (dự đoán) costs
- Operational plans: a description of proposed geographic location, facilities and needed
improvements, equipment, and workflow
- Human resource plans:
- A description of key management persons
- Composition of board of directors (thành phần ban giám đốc)
- Background experience and skills
- Current and future staffing needs
- Compensation (đền bù) and benefits
- Training needs: extensive training for employees
- An overall schedule and timetable of events.
- Financial data and projections
- No business plan is complete without financial information.
- Financial plans should cover at least three years and contain projected income statements (báo
cáo thu nhập dự kiến), pro forma (quy ước) cash flow analysis (monthly for the first year and
quarterly for the next two), pro forma balance sheets, breakeven analysis, and cost controls.
- All financial projections (ước tính) and analyses should include explanatory notes, especially
where the data seem contradictory or questionable.
- Supporting documentation

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 - Back up his or her descriptions with charts, graphs, tables, photographs, or other visual tools
including information (personal and work-related) about the key participants in the
entrepreneurial venture.

6. The sharing economy

- Business arrangements that are based on people sharing something they own or providing a service for a
fee

III. ORGANIZING ISSUES

1. Legal forms of organization
- The three basic ways to organize an entrepreneurial venture are sole proprietorship, partnership, and
corporation.
- The first organizing decision that an entrepreneur must make
- Sole proprietorship: is a form of legal organization in which the owner maintains sole and complete
control over the business and is personally liable for business debts.
- Owner and the business are the same
- Do not pay the enterprise tax
- Taxes for business activities and personal income taxes are combined together
- If the owner suffers anything, the business also affected and stop operating
- Partnership (nearly same as sole proprietorship)
- General partnership: A general partnership is a form of legal organization in which two or
more business owners share the management and risk of the business.
- Limited liability partnership (LLP): is a legal organization formed by general partner(s) and
limited partner(s).
- Corporation: A corporation is a legal business entity that is separate from its owners and managers.
- C corporation: A corporation owned by a limited number of people who do not trade the stock
publicly (không giao dịch cổ phiếu công khai)
- E.g: Hortense and a few of her family members want to launch a new venture but don't
want to place their personal assets at risk. For this privilege they are willing to incur the
higher taxes associated with the C corporation.
- S corporation: A specialized type of corporation that has the regular characteristics of a C
corporation but is unique in that the owners are taxed as a partnership as long as certain criteria
are met.
- Limited liability company (LLC): is a relatively new form of business organization that’s a
hybrid (hỗn hợp) between a partnership and a corporation. Legal and financial advice is an
absolute necessity in forming the LLC’s operating agreement, the document that outlines the
provisions (điều khoản) governing the way the LLC will conduct business.
- The limited liability company has advantages for the new venture that neither the C or S
corporation do.
Structure Ownership Tax treatment Liability Advantages Drawbacks

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 Income and Low start-up Unlimited personal
losses “pass costs, freedom liability, personal
Sole through” to from most finances at risk, miss out
proprietorship One owner owner and are regulations, (bỏ lỡ) on many
taxed at owner has direct business tax deductions,
personal rate control, all profits total responsibility, may
go to owner, easy be more difficult to raise
Unlimited to exit business financing
personal
Two or more liability Ease of Unlimited personal
owners formation, pooled liability, divided
(tổng hợp) talent, authority and decisions,
General pooled resources, potential for conflict,
partnership somewhat easier continuity of transfer of
access to ownership
financing, some
tax benefits

Two or more Limited, Good way to Cost and complexity of

Limited owners Income and but one acquire capital forming can be high,
liability losses “pass partner from limited limited partners can’t
partnership through” to must retain partners manage without losing
(LLP) partners and are unlimited liability protection
taxed at liability
personal rate;
S corporation Up to 75 flexibility in Easy to set up, Must meet certain
shareholders, profit-loss limited liability requirements, may limit
no limits on allocations to and tax benefits future financing options
types of stock partners of partnership,
or voting can have
arrangement tax-exempt entity
Limited as shareholder

Limited Unlimited Greater Cost of switching from

liability number of flexibility, not one form to this can be
company “members”, constrained by high, need legal and
(LLC) flexible regulations on C financial advice in
membership or S corporations, forming operation
arrangements taxed as agreement
for voting partnership not
corporation

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 rights and
income

C corporation Unlimited Dividend Limited liability, Expensive to set up,

number of income taxed at transferable closely regulated,
shareholders, corporate and ownership, double taxation,
no limits on personal continuous extensive record
types of stock shareholder existence, easier keeping, charter
or voting levels, losses access to restrictions
arrangement and deductions resources
are corporate

2. Organizational design and structure: Organizational design decisions in entrepreneurial decisions revolve
around six key elements:
- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Amount of centralization/decentralization
- Amount of formalization

3. Human resource management: Two HRM issues of particular importance to entrepreneurs are employee
recruitment and employee retention.
- Employee recruitment
- Entrepreneurs are looking for high-potential people who can perform multiple roles during
various stages of venture growth.
- Entrepreneurs look to fill in critical skills gaps.
- They’re looking for people who are exceptionally capable and self-motivated, flexible,
multiskilled, and who can help grow the entrepreneurial venture.
- Look for individuals who “buy into” (tiếp thu) the venture’s entrepreneurial culture - individuals
who have a passion for the business.
- Entrepreneurs are more concerned with matching characteristics of the person to the values and
culture of the organization
- Employee retention (giữ lại): A unique and important employee retention issue entrepreneurs must deal
with is compensation.

4. Initiating change
If changes are needed in the entrepreneurial venture, often it is the entrepreneur who first recognizes the
need for change and acts as the catalyst, coach, cheerleader, and chief change consultant

5. The importance of continuing innovation

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 Innovation is a key characteristic of entrepreneurial ventures and, in fact, it’s what makes the
entrepreneurial venture “entrepreneurial.”
IV. LEADING ISSUES
1. Personality characteristics of entrepreneurs
- Proactive personality (tính cách chủ động): a personality trait that describes individuals who are more
prone (dễ) to take actions to influence their environments
- Various items on the proactive personality scale were found to be good indicators of a person’s
likelihood of becoming an entrepreneur, including gender, education, having an entrepreneurial parent,
and possessing a proactive personality.
- Entrepreneurs have greater risk propensity (khuynh hướng) than do managers.

2. Motivating employees through empowerment

- Employee empowerment: giving employees the power to make decisions and take actions on their own
to solve problems: is an important motivational approach.
- Eg: Employees at Butler International, Inc., a technology consulting services firm based in
Montvale, New Jersey, work at client locations. President and CEO Ed Kopko recognized that
employees had to be empowered to do their jobs if they were going to be successful.
- Empowerment is a philosophical concept that entrepreneurs have to “buy into.” (chấp thuận)
- Entrepreneurs can begin by using participative decision making in which employees provide input into
decisions.
- Another way to empower employees is through delegation (ủy quyền) - the process of assigning certain
decisions or specific job duties to employees.
- Employees are encouraged to take the initiative in identifying and solving problems and doing their
work.
- Eg: The Ritz-Carlton hotel invests heavily in empowerment training. It starts with teaching
employees about the Customer Loyalty Anticipation Satisfaction System, which is designed to
fulfill “even the unexpressed wishes and needs of our guests
3. The entrepreneur as leader
- Leading the venture
- One way an entrepreneur leads is through the vision he or she creates for the organization.
- The entrepreneur’s ability to articulate a coherent, inspiring, and attractive vision of the future is
a key test of his or her leadership.
- Leading employee work teams (đội ngũ nhân viên dẫn đầu)
- For team efforts to work, however, entrepreneurs must shift from the traditional
command-and-control style (chỉ huy và kiểm soát) to a coach-and-collaboration style (hướng dẫn
và cộng tác)
- Entrepreneurs must recognize that individual employees can understand the business and can
innovate just as effectively as they can.

V. CONTROL ISSUES
1. Managing growth

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 - Planning for growth: The plans should be flexible enough to exploit unexpected opportunities that
arise.
- Organizing for growth: The key challenges for an entrepreneur in organizing for growth include
finding capital, finding people, and strengthening the organizational culture.
- The processes of finding capital to fund growth are much like going through the initial financing
of the venture.
- Eg: The Boston Beer Company, America’s largest microbrewer and producer of Samuel Adams
beer, grew rapidly by focusing almost exclusively on increasing its top-selling product line
- Finding people:
- It’s important to plan the numbers and types of employees needed as much as possible in
order to support the increasing workload of the growing venture.
- Provide additional training and support to employees to help them handle the increased
pressures associated with the growing organization
- Create a positive, growth-oriented culture that enhances the opportunities to achieve
success, both organizationally and individually.
- Achieving a supportive, growth oriented cultural
- Keep the lines of communication (đường dây liên lạc) open-inform employees about
major issues.
- Establish trust by being honest, open, and forthright about the challenges and rewards of
being a growing organization.
- Be a good listener: find out what employees are thinking and facing. Be willing to
delegate (ủy nhiệm) duties.
- Be flexible - be willing to change your plans if necessary.
- Provide consistent (nhất quán) and regular feedback by letting employees know the
outcomes - good and bad.
- Reinforce the contributions of each person by recognizing employees' efforts.
- Continually train employees to enhance their capabilities and skills.
- Maintain the focus on the venture's mission even as it grows.
- Establish and reinforce a "we" spirit that supports the coordinated (phối hợp) efforts of all
the employees and helps the growing venture be successful.
- Controlling for growth: Even though mistakes and inefficiencies can never be eliminated
entirely, an entrepreneur should at least ensure that every effort is being made to achieve high
levels of productivity and organizational effectiveness.

2. Managing downturns
- Recognizing crisis situations: Some signals of potential performance decline include:
- Inadequate or negative cash flow
- Excess (dư thừa) number of employees
- Unnecessary and cumbersome (rườm rà) administrative procedures
- Fear of conflict and taking risks
- Tolerance of work incompetence (tha thứ cho sự kém cỏi)

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 - Lack of a clear mission or goals
- Ineffective or poor communication within the organization.
- “Boiled frog” phenomenon: A perspective on recognizing performance declines that suggests watching
out for subtly declining situations
- Nhiều người đã quen với những việc thường ngày đã xảy ra và không hề muốn thay đổi, hay
thậm chí sợ sự thay đổi, tiếp nhận cái mới. Một khi đã quen với một công việc, một lối sống nào
đó, nhiều người thường rất ngại thay đổi mặc cho đôi lúc những sự quen thuộc đó khiến cảm
thấy mệt mỏi, khó chịu. Tâm lý sợ thay đổi khiến nhiều người cứ ở lì trong nồi nước sôi để rồi
đến lúc nhận ra cần phải nhảy ra thì đã quá muộn.
- Dealing with downturns, declines, and crises: Beyond having a plan for controlling the venture’s
critical inflows and outflows, other actions would involve identifying specific strategies for cutting costs
and restructuring the venture
- Cost-cutting measures tend to exacerbate the conditions that led to the need for cutting costs.
- Employers are changing from traditional to defined contribution plans as a cost-cutting measure.

3. Exiting the venture

- Harvesting: exiting a venture when an entrepreneur hopes to capitalize financially on the investment in
the venture
- Business valuation methods: valuation techniques generally fall into three categories:
- Asset valuations
- Earnings valuations
- Cash flow valuations.
- Other important considerations in exiting the venture
- These factors include being prepared, deciding who will sell the business, considering the tax
implications, screening potential buyers, and deciding whether to tell employees before or after
the sale.
- If the entrepreneur is selling the venture on a positive note, he or she wants to realize the value
built up in the business.
- If the venture is being exited because of declining performance, the entrepreneur wants to
maximize the potential return.

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 CHAPTER 11: ORGANIZATIONAL DESIGN

I. SIX ELEMENTS OF ORGANIZATION DESIGN:

- Organizing: management function that involves arranging and structuring work to accomplish the
organization’s goals
- Organizational structure: the formal arrangement of jobs within an organization
- Organizational chart: the visual representation of an organization’s structure
- Organizational design: creating or changing an organization’s structure. Organizational design is a
process that involves decisions about chain of command and span of control.
- Purpose of organizing:
- Divides work to be done into specific jobs and departments.
- Assigns tasks and responsibilities associated with individual jobs.
- Coordinates (điều phối) diverse organizational tasks.
- Clusters (cụm) jobs into units.
- Establishes relationships among individuals, groups, and departments.
- Establishes formal lines of authority.
- Allocates and deploys (triển khai) organizational resources.

Element 1: work specialization (chuyên môn hóa): dividing work activities into separate job tasks
- How much do you want to divide a job into tasks?
- E.g: in the HR department, do you want only the person in charge of recruitment? Or one
responsible for training, one for interview or combine both?
- It depend on how much you want to divide:
- Work → function
- Function → job
- Job → task
- Task → action
- Advantages:
- Reduce ambiguity
- Increase productivity
- Improve your skill quickly and well
- Disadvantages:
- Reduce motivation
- Increase the need of management (somehow, annoying)
- Limited growth
- Solution: the business could only rotate, but it even still cannot solve the motivation problem
- Large organizations tend to have more specialization than smaller organizations.

Element 2: departmentalization: The basis by which jobs are grouped together

- Group what you have specialized, how much do you want to group function/job/task/action?
- This does not mean that you make it disappear, it is to put them into one department.

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 - E.g: group marketing and sales. You merge the related information, both function exchange data
- Departmentalization ≠ Despecialization: eliminate specialization, do many jobs, tasks at the same time)

- Group jobs according to function (functional departmentalization)

- Advantages:
- Efficiencies from putting together similar specialties and people with common skills,
knowledge, and orientations
- Coordination (phối hợp) within functional area
- In-depth specialization
- Disadvantages:
- Poor communication across functional areas
- Limited view of organizational goals

- Group jobs according to geographic region (geographical departmentalization)

- Advantages:
- More effective and efficient handling of specific regional issues that arise
- Serve needs of unique geographic markets better
- Disadvantages:
- Duplication of functions
- Can feel isolated (cô lập) from other organizational areas

- Group jobs by product line (product departmentalization)

- Advantages:
- Allows specialization in particular products and services
- Managers can become experts in their industry
- Closer to customers
- Disadvantages:
- Duplication of functions
- Can feel isolated (cô lập) from other organizational areas

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 - Group jobs on the basic of product or customer flow (process departmetalization)
- Advantages: More efficient flow of work activities
- Disadvantages: Can only be used with certain types of products

- Group job on the basis of specific and unique customers (customer departmentalization)
- Advantages: Customers’ needs and problems can be met by specialists
- Disadvantages: Duplication of functions

- Customer departmentalization: is most popular because getting and keeping customers is essential for
success, this approach works well because it emphasizes monitoring and responding to changes in
customers’ needs.
- Organizations also popularly use the team because work tasks have become more complex and diverse
skills are needed to accomplish those tasks.
- Cross-functional team: a work team composed of individuals from various functional specialties is
used popularly.

Element 3: Chain of command (this is rule + little principle): The line of authority extending from upper
organizational levels to the lowest levels, which clarifies who reports to whom
- E.g: if an employee has an idea (related to the CEO), will they be allowed to directly talk to the CEO?

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 - If we talk directly, it can reduce the cost of paying a lower level manager. However, CEO’s being
annoyed
- If it is not allowed to talk directly, the lower level manager will need to listen to this idea and
report to the CEO later. Might having filtering problem, but yet CEO ease.
- If there is a function/people in charge for this, HR will definitely tire, they not only take care of
the new employees but also this problem.
- Rules:
- 1 higher level can have infinity lower level
- 1 lower level can ONLY have 1 direct higher level

- 3 concepts of chain of command:

- Authority: The rights inherent (các quyền vốn có) in a managerial position to tell people what to
do and to expect them to do it, includes:
- Line authority: Authority that entitles (cho phép) a manager to direct the work of an
employee.
- Staff authority: Positions with some authority that have been created to support, assist,
and advise those holding line authority
- Responsibility: the obligation or expectation to perform any assigned duties
- Unity of command: The management principle that each person should report to only one
manager (1 lower level can ONLY have 1 direct higher level)

Element 4: span of control: The number of employees a manager can efficiently and effectively manage
- How many lower levels under one higher level (directly)?
- If one higher level has lots of lower level:
- It’s not really a big challenge (it’s depended)
- If company have a strong structure, it’s not hard to manage
- But it’s definitely annoying: conflict, drama, etc.
- Undergo tons of pressure → require a very good management
- If one higher level has a few lower level:
- Less drama, conflict
- Costly
- There is a combo of departmentalization - chain of command - span of control
- If combine sale and marketing, span of control change a lot
- Employee ease, less tire

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 - Head of sales and mare tire
- Span of control expand because chain of of command shorten. The shorten chain of command is
it, the bigger span of control.
- If chain of command short:
- Cost saving
- Time saving (less report)
- Reduce filtering

Element 5: centralization - decentralization

- Centralization: The degree to which decision making is concentrated at upper levels of the organization
- How much decision making do you want to push up?
- Absolutely centralize: manager will decide everything even trifles (chuyện lặt vặt)
- Advantages:
- Fast decision making (time and cost saving)
- Avoid drama
- Manager should centralize if their employees don’t have enough capacity to make
decisions
- Disadvantage:
- Limited growth
- Decrease motivation
- The work might hard to centralize
- What if the manger is such stupid than the employee? (said Berlin)
- Decentralization: The degree to which lower-level employees provide input or actually make decisions.
- Employee empowerment: Giving employees more authority (power) to make decisions
- Some of the factors that affect an organization’s use of centralization or decentralization
More Centralization More Decentralization

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 - Environment is stable
- Lower-level managers are not as capable or
experienced at making decisions as
upper-level managers.
- Lower-level managers do not want a say in
decisions.
- Decisions are relatively minor.
- Organization is facing a crisis or the risk of
company failure.
- Company is large.
- Effective implementation of company
strategies depends on managers retaining say
over what happens.
- Environment is complex, uncertain.
Lower-level managers are capable and
experienced at making decisions.
- Lower-level managers want a voice in
decisions.
- Decisions are significant.
- Corporate culture is open to allowing
managers a say in what happens.
- Company is geographically dispersed (phân
tán)
- Effective implementation of company
strategies depends on managers having
involvement and flexibility to make decisions.

Element 6: Formalization: How standardized an organization’s jobs are and the extent to which employee
behavior is guided by rules and procedures.
- How much do you want to remove decision making?
- The company will remove and replace by procedure?
- Advantages:
- Less errors
- Increase efficiency
- Also a way to enhance culture
- Disadvantages:
- Decrease innovation
- Adaption on the spot
- Super boring compay is the one max specialize and formalize (only rules and procedures)

Practice combine some of the 6 elements:

- A company with low departmentalization, wide spans of control, centralized authority, and little
formalization possesses a simple structure.

II. Mechanistic and organic structures

- Mechanistic organization: An organizational design that’s rigid and tightly controlled (quản lý cứng
nhắc và chặt chẽ)
- High specialization
- Rigid departmentalization
- Clear chain of command
- Narrow spans of control
- Centralization
- High formalization
- Organic organization: An organizational design that’s highly adaptive, loose, and flexible
- Cross-hierarchical teams

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 - Free flow of information
- Wide spans of control
- Decentralization
- Low formalization
- Worldwide economic downturn, global competition, accelerated product innovation by
competitors, and increased demands from customers for high quality and faster deliveries
encourage organizations to become more organic.

III. CONTINGENCY FACTORS AFFECTING STRUCTURAL CHOICE

1. Strategy and structure: Certain structural designs work best with different organizational strategies.

2. Size and structure: Adding other employees won’t impact the structure of large companies much. On the
other hand, adding employees to a small organization is likely to make it more mechanistic.

3. Technology and structure: Three distinct technologies that had increasing levels of complexity and
sophistication:
- Unit production: The production of items in units or small batches. (sản xuất theo đơn vị nhỏ)
- Mass production: The production of items in large batches.
- E.g: The type of assembly line typically found in automobile manufacturing.
- Process production: The production of items in continuous processes. (sản xuất trong các quy trình liên
tục.)

Unit Production Mass Production Process Production

Low vertical differentiation Moderate vertical High vertical differentiation

Structural Low horizontal differentiation Low horizontal differentiation
characteristics differentiation High horizontal differentiation

Most effective Low formalization High formalization Low formalization

structure Organic Mechanistic Organic

4. Environmental uncertainty and structure

- Managers try to minimize environmental uncertainty by adjusting the organization’s structure.
- In stable and simple environments, mechanistic designs can be more effective. On the other hand, the
greater the uncertainty, the more an organization needs the flexibility of an organic design

IV. TRADITIONAL ORGANIZATIONAL DESIGN OPTIONS

STRENGTHS WEAKNESSES

Fast & Flexible Simple Not appropriate as organization grows

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 Inexpensive to maintain Structure Reliance on one person is risky.
Clear accountability.

Cost-saving advantages from specialization Functional Pursuit of functional goals can cause managers to
(economies of scale, minimal duplication of Structure lose sight of what's best for the overall
people and equipment) organization
Employees are grouped with others who Functional specialists become insulated and have
have similar tasks. little understanding of what other units are doing.

Focuses on results-division managers are Divisional Duplication of activities; resources increases

responsible for what happens to their Structure costs and reduces efficiency
products and services.
1. Simple structure:
- Little departmentalization
- Wide spans of control
- Centralized authority
- Little formalization

2. Functional structure:
- An organizational design that groups similar or related occupational specialties together.

3. Divisional structure:
- An organizational structure made up of separate business units or divisions.

V. ORGANIZING FOR FLEXIBILITY IN THE TWENTY-FIRST CENTURY

1. Team structures
- An organizational structure in which the entire organization is made up of work teams.
- In this structure, employee empowerment is crucial because no line of managerial authority flows from
top to bottom.
- In large organizations, the team structure complements what is typically a functional or divisional
structure and allows the organization to have the efficiency of a bureaucracy (chế độ quan lại) and the
flexibility that teams provide.

2. Matrix and Project Structures

- Matrix Structure: An organizational structure that assigns specialists from different functional
departments to work on one or more projects
- One unique aspect of this design is that it creates a dual chain of command because employees in
a matrix organization have two managers, their functional area manager and their product or
project manager, who share authority.

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 - Project structure: An organizational structure in which employees continuously work on projects

3. The Boundaryless Organization:

- Boundaryless organization: An organization whose design is not defined by, or limited to, the
horizontal, vertical, or external boundaries imposed by a predefined structure
- E.g: Developing a new automobile requires the services of many types of experts such as design
and electronics engineers, procurers, metallurgists–the list is extensive. Rather than employ these
individuals directly, the automaker will outsource the work. The specialists then work at facilities
owned by the automaker rather than at their own employers' places.
- Virtual organization: An organization that consists of a small core of full-time employees and outside
specialists temporarily hired (thuê tạm thời) as needed to work on projects
- E.g: Team 3 has been working together for several years, implementing modifications to the
company's current product. None of the members of this team are at the same location. They
utilize a variety of graphic-electronic technologies to view the product onscreen in
three-dimension at each location simultaneously.
- Task force (or ad hoc committee): A temporary committee or team formed to tackle a specific
short-term problem affecting several departments
- Open innovation: Opening up the search for new ideas beyond the organization’s boundaries and
allowing innovations to easily transfer inward and outward
- Benefits:
- Gives customers what they want - a voice
- Allows organizations to respond to complex problems
- Nurtures internal and external relationships
- Brings focus back to marketplace
- Provides way to cope with rising costs and uncertainties of product development
- Drawbacks :
- High demands of managing the process
- Extensive support needed
- Cultural challenges
- Greater need for flexibility
- Crucial changes required in how knowledge is controlled and shared
- Telecommuting: A work arrangement in which employees work at home and are linked to the
workplace by computer

4. Compressed Workweeks, Flextime, and Job Sharing

- Compressed workweek: A workweek where employees work longer hours per day but fewer days per
week
- Flextime (or flexible work hours) A scheduling system in which employees are required to work a
specific number of hours a week but are free to vary those hours within certain limits
- Job sharing: The practice of having two or more people split a full-time job

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5. The Contingent Workforce: Temporary, freelance, or contract workers whose employment is contingent on
demand for their services.
- Given other things unchanged, managers with well-trained and experienced employees can function well
with a wider span of control than those with a less talented workforce.
CHAPTER 12: ORGANIZING AROUND TEAMS

I. GROUP AND GROUP DEVELOPMENT

1. What is a group?
- Group: Two or more interacting and interdependent individuals who come together to achieve specific
goals
- Work groups interact primarily to share information and to make decisions to help each member do his
or her job more efficiently and effectively.
- Formal work groups:
- Command groups: Groups determined by the organizational chart and composed of individuals
who report directly to a given manager.
- Task groups: Groups composed of individuals brought together to complete a specific job task;
their existence is often temporary because when the task is completed, the group disbands.
- Cross-functional teams: Groups that bring together the knowledge and skills of individuals
from various work areas or groups whose members have been trained to do each others' jobs.
- Self-managed teams: Groups that are essentially independent and that, in addition to their own
tasks, take on traditional managerial responsibilities such as hiring, planning and scheduling, and
evaluating performance.

2. Stages of group development

- Forming stage: The first stage of group development in which people join the group and then define the
group’s purpose, structure, and leadership
- Storming stage: The second stage of group development, characterized by into a group conflict.
- Norming stage: The third stage of group development, characterized by close relationships and
cohesiveness (gắn kết)
- The norming stage of group development is complete when the group structure solidifies and the
group has assimilated a common set of expectations of what defines correct member behavior.
- Performing stage: The fourth stage of group development when the group is fully
functional and works on group task.
- Adjourning: The final stage of group development for temporary groups during which group members
are concerned with wrapping up activities (hoạt động kết thúc) rather than task performance.
- Group D has been working on developing a product which is now ready to hit the market. The
group members are happy about the work they've done on this product. The focus has now
shifted from productivity to tying up loose ends.

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II. WORK GROUP PERFORMANCE AND SATISFACTION

1. External conditions imposed on the group

- Work groups are affected by the external conditions imposed on it such as:
- The organization’s strategy
- Authority relationships
- Formal rules and regulation
- Availability of resources
- Employee selection criteria
- The performance management system and culture
- The general physical layout of the group’s work space.

2. Group member resources

- A group’s performance potential depends to a large extent on the resources each individual brings to the
group.
- These resources include knowledge, abilities, skills, and personality traits, and they determine what
members can do and how effectively they will perform in a group.
- Interpersonal skills: especially conflict management and resolution, collaborative problem solving, and
- Communication: consistently emerge as important for high performance by work groups

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 - Personality traits also affect group performance because they strongly influence how the individual will
interact with other group members.

3. Group structure
- They have an internal structure that shapes members’ behavior and influences group performance.
- The structure defines roles, norms, conformity, status systems, group size, group cohesiveness, and
leadership.
- Role: Behavior patterns expected of someone occupying a given position in a social unit.
- E.g: When Fred's department head explained what was expected of him as a new
professor in terms of maintaining discipline in his classroom and providing students with
a challenging course, he was referring to Fred's role at the university.
- Norms (tiêu chuẩn): Standards or expectations that are accepted and shared by a group’s
members. One negative thing about group norms is that being part of a group can increase an
individual’s antisocial actions.
- Groupthink (conformity): When a group exerts extensive pressure (gây áp lực lớn) on an
individual to align his or her opinion with others’ opinions.
- E.g: Her instincts told her the group was heading in a very wrong direction but Natalie
didn't want to cause a scene by disagreeing, especially when she was apparently the only
one with reservations. Natalie has succumbed to groupthink.
- Status systems: A prestige grading (xếp loại uy tín), position, or rank within a group. Anything
can have status value if others in the group evaluate it that way.
- Informal status is as important as status conferred by the organization.
- Social loafing (group size): The tendency for individuals to expend (tiêu tốn) less effort when
working collectively (làm việc tập thể) than when working individually (nỗ lực ít hơn để đạt
được mục tiêu khi làm việc nhóm hơn là khi làm việc một mình)
- Group cohesiveness: The degree to which group members are attracted to one another and share
the group’s goals
- High cohesiveness - high group alignments and organizational goal: strong increase in
productivity
- High cohesiveness - low group alignments and organizational goal: moderate increase in
productivity
- Low cohesiveness - high group alignments and organizational goal: decrease in
productivity
- Low cohesiveness - low group alignments and organizational goal: no significant effect
on productivity.

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4. Group processes
- Group decision making:
- Advantages that group decisions have over individual decisions:
- Groups generate more complete information and knowledge.
- Groups generate more diverse alternatives because they have a greater amount and
diversity of information.
- Groups increase acceptance of a solution. Group members are reluctant to fight or
undermine a decision they helped develop.
- Groups increase legitimacy (tính hợp pháp). Decisions made by groups may be perceived
as more legitimate than decisions made by one person
- Disadvantages:
- Individual decisions are made faster than group decisions.
- Groups almost always take more time to reach a solution than it would take an individual.
- A dominant and vocal minority can heavily influence the final decision.
- Groupthink can undermine (hủy hoại) critical thinking in the group and harm the quality
of the final decision.
- Members share responsibility, but the responsibility of any single member is ambiguous.
- What techniques can managers use to help groups make more creative decisions?
- Brainstorming: an idea generating process that encourages alternatives while
withholding criticism
- Norminal Group Technique (NGT): A group decision-making technique in which
group members are presented with a problem; each member independently writes down
his or her ideas on the problem, and then each member presents one idea to the group
until all ideas have been presented. No discussion takes place until all ideas have been
presented.
- Electronic meetings: Decision-making groups that interact by using linked computers.

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 - Conflict management
- Conflict: Perceived incompatible (mâu thuẫn) differences that result in interference (can thiệp)
or opposition
- Three different views have evolved regarding conflict:
- Traditional view of conflict: The view that all conflict is bad and must be voided (dẹp
bỏ) human
- Relations view of conflict: The view that conflict is a natural and inevitable outcome in
any group.
- Interactionist view of conflict: The view that some conflict is necessary for a group to
perform effectively
- The interactionist view doesn’t suggest that all conflicts are good
- Functional conflicts: Conflicts that support a group’s goals and improve its performance
- Dysfunctional conflicts: Conflicts that prevent a group from achieving its goals
- Task conflict: Conflicts over content and goals of the work.
- Relationship conflict: Conflict based on interpersonal relationships. It is most likely to
be dysfunctional.
- Process conflict: Conflict over how work gets done

5. Group tasks

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 - Tasks are either simple or complex.
- Simple tasks are routine and standardized.
- Complex tasks tend to be novel (mới lạ) or nonroutine (không theo quy trình). It appears that the more
complex the task, the more a group benefits from group discussion about alternative work methods

III. TURNING GROUPS INTO EFFECTIVE TEAMS

1. The difference between groups and teams
- Work teams: Groups whose members work intensely on a specific, common goal using their positive
synergy, individual and mutual accountability, and complementary skills

Work Teams Work Groups

Leadership role is shared One leader clearly in charge

Accountable to self and team Accountable only to self
Team creates specific purpose Purpose is same as broader organizational purpose
Work is done collectively Work is done individually
Meetings characterized by open ended discussion and Meetings characterized by efficiency no collaboration
collaborative problem-solving or open-ended discussion
Performance is measured directly by evaluating Performance is measured indirectly accorrding to its
collective work output influence on others
Work decided upon and done together Work is decided upon by group leader and delegated
Can be quickly assembled, deployed, relocuted, and to individual group members
disbanded (lắp ráp, triển khai, di dời và giải tán)

2. Types of work teams

- Problem-solving team: A team from the same department or functional area that’s involved in efforts to
improve work activities or to solve specific problems
- Self-managed work team: A type of work team that operates without a manager and is responsible for
a complete work process or segment (bộ phận)
- E.g: Five employees on the production line working together determine which person is
performing which tasks, who becomes a member of the team, and what resources are needed to
accomplish the work. These employees do not have a specific leader.
- Cross-functional team: A work team composed of individuals from various functional specialties
- Virtual team: A type of work team that uses technology to link physically dispersed (phân tán)
members in order to achieve a common goal

3. Creating effective work teams

- Clear goals - Negotiating skills
- Relevant skill - Appropriate leadership
- Mutual trust - Internal support
- Unified commitment - External support
- Good communication

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E.g: It was amazing the team accomplished anything at all. It seemed they were always bickering and cross
with each other, but their final output stunned management. (clear goals)

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IV. CONTEMPORARY CHALLENGES IN MANAGING TEAMS
1. Managing global teams

Drawbacks Benefits

- Dislike of team members - Greater diversity of ideas

- Mistrust of team members - Limited groupthink .
- Stereotyping - Increased attention on understanding others
- Communication problems ideas, perspectives, etc.
- Stress and tension (căng thẳng)

- Group member resources in global teams

- Understanding the relationship between group performance and group member resources is more
challenging because of the unique cultural characteristics represented by members of a global
team.
- To recognizing team members’ abilities, skills, knowledge, and personality, managers need to be
familiar with and clearly understand the cultural characteristics of the groups and the group
members they manage.
- In global teams, cohesiveness is often more difficult to achieve because of higher levels of
mistrust, miscommunication, and stress.
- Group structure: Some of the structural areas where we see differences in managing global teams
include conformity, status, social loafing, and cohesiveness
- Group processes
- Communication issues often arise because not all team members may be fluent in the team’s
working language.
- This can lead to inaccuracies, misunderstandings
- A multicultural global team is better able to capitalize (tận dụng) on the diversity of ideas
represented if a wide range of information is used.
- In collectivistic cultures, a collaborative conflict management style can be most effective.

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 - Manager’s role
- Because communication skills are vital, managers should focus on developing those skills.
- Managers must consider cultural differences when deciding what type of global team to use.
- Managers be sensitive to the unique differences of each member of the global team, but it’s also
important that team members be sensitive to each other.

2. Building team skills: managers must view their role as more of being a coach and developing team members
in order to create more committed, collaborative, and inclusive teams

3. Understanding social networks

- Social network structure: The patterns of informal connections among individuals within a group
- Managers need to understand the social networks and social relationships of work groups because a
group’s informal social relationships can help or hinder (cản trở) its effectiveness.

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 CHAPTER 13: HUMAN RESOURCES MANAGEMENT

I. WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT AND THE HUMAN RESOURCE

MANAGEMENT PROCESS
- THREE main words must remember about HR:
- Recruit
- Retain
- Reduce
- HRM is important because:
- It can be a significant source of competitive advantage.
- HRM is an important part of organizational strategies.
- The way organizations treat their people has been found to significantly impact organizational
performance
- A positive relationship between companies’ high-performance work practices and the ability of the
organization: to efficiently adapt to changing and challenging markets.
- The common thread (chủ đề) among these practices seems to be a commitment to:
- Involving employees
- Improving the knowledge, skills, and abilities of an organization’s employees
- Increasing their motivation
- Reducing loafing on the job
- Enhancing the retention of quality employees while encouraging low performers to leave.
- High-performance work practices: Work practices that lead to both high individual and high
organizational performance
- For satisfied employees with high organizational commitment: lower rates of turnover
and absenteeism.
- E.g:
- Self-managed teams
- Decentralized decision making
- Training programs to develop knowledge, skills, and abilities
- Flexible job assignments
- Open communication
- Performance-based compensation
- Staffing based on person-job and person-organization fit
- Extensive employee involvement
- Giving employees more control over decision making
- Increasing employee access to information
- HRM process:
- The first three activities (planning, recruitment/recruitment, selection) ensure that competent
employees are identified and selected.

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 - The next two (orientation, training) involve providing employees with up-to-date knowledge and
skills
- The final three (performance management, compensation & benefits, career development)
ensure that the organization retains competent (có thẩm quyền) and high performing employees.

II. EXTERNAL FACTORS THAT AFFECT THE HUMAN RESOURCE MANAGEMENT PROCESS
1. The economy
- The global economic downturn has left what many experts believe to be an enduring mark (dấu ấn lâu
dài) on HRM practices worldwide. In the United States, labor economists say that although jobs may be
coming back slowly, they aren’t the same ones that employees were used to. Many of these jobs are
temporary or contract positions, rather than full-time jobs with benefits.
- An economic slow down

2. Labor unions:
- An organization that represents workers and seeks to protect their interests through collective bargaining

3. Laws and rulings

- One-child policy and a newly enacted pension plan law affected human resources management process.
- Not following the laws governing HRM practices can be costly for organizations of all sizes
- Trying to balance the “shoulds” and “should nots” of many laws often falls within the realm (phạm vi)
of affirmative action
- Affirmative action: Organizational programs that enhance the status of members of protected group
LAW OR RULING YEAR DESCRIPTION

Equal employment opportunity and discrimination

Equal pay act 1963 Prohibits pay differences for equal work based on gender

Civil rights act,title VII 1964 (amended Prohibits discrimination based on race, color, religion,

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 in 1972) national origin, or gender

Age discrimination in 1967 (amended Prohibits discrimination against employees 40 years and older
employment act in 1978)

Vocational rehabilitation 1973 Prohibits discrimination on the basis of physical or mental

act disabilities

Americans with 1990 Prohibits discrimination against individuals who have

disabilities act disabilities or chronic illnesses; also requires reasonable
accommodations for these individuals

Compensation/Benefits

Worker adjustment and 1190 Requires employers with more than 100 employees to provide
retraining notification act 60 days’ notice before a mass layoff or facility closing

Family and medical leave 1993 Gives employees in organizations with 50 or more employees
act up to 12 weeks of unpaid leave each year for family or
medical reasons

Health insurance 1996 Permits portability of employees’ insurance from one

portability and employer to another
accountability act

Lilly ledbetter fair pay act 2009 Changes the statute of limitations on pay discrimination to
180 days from each paycheck

Patient protection and 2010 Health care legislation that puts in place comprehensive
affordable care act health insurance reforms

Health/Safety

Occupational Safety and 1970 Establishes mandatory safety and health standards in
Health Act (OSHA) organizations

Privacy Act 1974 Gives employees the legal right to examine personnel files
and letters of reference

Consolidated Omnibus 1985 Requires continued health coverage following termination

Reconciliation Act (paid by employee)
(COBRA)

- What about HRM laws globally?

- Managers in other countries be familiar with the specific laws that apply there.
- Managers of multinationals must understand the variety of federal laws that apply to employees
in every country where their firms operate.
- The two most common forms of representative participation:

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 - Work councils: link employees with management. They are groups of nominated or elected
employees ( nhân viên được bầu cử/bầu chọn) who must be consulted when management makes
decisions involving personnel
- Board representatives: are employees who sit on a company’s board of directors and represent
the interests of the firm’s employees.
4. Demography:
- Workforce trends in the early twenty-first century will be notable (đáng chú ý) for three reasons:
- Changes in racial and ethnic composition
- An aging baby boom generation
- An expanding cohort (đội quân) of Gen Y workers

III. IDENTIFYING AND SELECTING COMPETENT EMPLOYEES

1. Human resource planning
- Human resource planning: Ensuring that the organization has the right number and kinds of capable
people in the right places and at the right times
- HR planning entails two steps:
- Assessing current human resources
- Meeting future HR needs.
- Managers begin HR planning by inventorying current employees through:
- Name
- Education
- Training
- Prior employment
- Languages spoken
- Special capabilities
- Specialized skills
- Job analysis: Current assessment that defines a job and the behaviors necessary to perform it
- Never do it alone, HR should collab with the department heads for extra help
- Large company will have quota recruit
- Requirement:
- What specialization does it need?
- Knowledge? Skill? Experience?
- Attitude?
- It’s just simply an extra person?
- Part-time or full-time employee?
- Deadline for this recruitment?
- Salary range? Some company has decentralize trend can easily adjust the salary level.
- Using this information from the job analysis, managers develop or revise job descriptions and
job specifications.
- Job description (or position description): is a written statement describing a job - typically job
content, environment, and conditions of employment.

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 - Thing as task description
- Describe the situation (not the scenario) and be concise
- E.g: ability to handle with repeatedly complain
- Job specification: states the minimum qualifications that a person must possess to successfully perform
a given job. It identifies the knowledge, skills, and attitudes needed to do the job effectively.
- Be specific and clear:
- Instead of “good communication”, you should write in the JD as “negociation”, “used to
have a public speaking”, “presentation skill”
- For some interesting position, which really need talent), you should write “competitive
salary”
- Advantages:
- The one who applied has the confidence that they can work well to that require
- Disadvantages:
- Intimidate lots of people
- Sometimes, that person might not initially implement the requirement, but after a few
training, the can
- Meeting future HR needs
- Future HR needs are determined by the organization’s mission, goals, and strategies.
- Demand for employees results from demand for the organization’s products or services.
- Increased scrutiny in the selection process
- They should make investments in developing reliable and valid selection procedures to help
make appropriate hiring choices.

2. Recruitment and decruitment

- Recruitment: Locating, identifying, and attracting capable applicants

Source Advantages Disadvantages

Internet Reaches large numbers of people; can get Generates many unqualified
immediate feedback candidates

Employee referrals Knowledge about the organization provided May not increase the diversity
(nhân viên giới by current employee; can generate strong and mix of employees
thiệu) candidates because a good referral reflects on
the recommender

Company website Wide distribution; can be targeted to specific Generates many unqualified
groups candidates

College recruiting Large centralized body of candidates Limited to entry-level positions

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 Professional Good knowledge of industry challenges and Little commitment to specific
recruiting requirements organization
organizations

- Decruitment: Reducing an organization’s workforces

- If human resource planning shows a surplus of employees, management can reduce the
organization's workforce through decruitment.

Option Description

Firing Permanent involuntary termination (ép buộc chấm dứt vĩnh viễn)

Layoffs Temporary involuntary termination (ép buộc chấm dứt tạm thời); may last only a few
days or extend to years

Attrition Not filling openings created by voluntary resignations (tự nguyện từ chức) or normal
retirements

Transfers Moving employees either laterally or downward; usually does not reduce costs but can
reduce intraorganizational supply-demand imbalances

Reduced Having employees work fewer hours per week, share jobs, or perform their jobs on a
workweeks part-time basis

Early Providing incentives (khuyến khích) to older and more senior employees for retiring
retirements before their normal retirement date

Job Having employees share one full-time position

sharing

3. Selection
- Screening job applicants to ensure that the most appropriate candidates are hired
- Involves predicting which applicants will be successful if hired.
- Errors:
- Errors made by eliminating candidates who would have performed successfully on the job are
known as reject errors.
- Validity and reliability
- A valid selection device is characterized by a proven relationship between the selection device
and some relevant criterion.
- A reliable selection device indicates that it measures the same thing consistently

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 - E.g: All candidates for entry level engineering positions are given the mechanical aptitude test.
Those who scored well and were hired later earned high scores on their performance evaluations.
Those who scored less well and were hired earned lower scores on performance evaluations.
- Types of selection tools:
- Application Forms
- Almost universally used
- Most useful for gathering information
- Can predict job performance but not easy to create one that does
- Should involves: CV, cover letter, certificates, (preference letter)
- Written Tests
- Must be job-related
- Include intelligence, aptitude (năng khiếu), ability, personality, and interest tests
- Are popular (e.g., personality tests; aptitude tests)
- Relatively good predictor for supervisory positions
- Performance - Simulation Tests
- Use actual job behaviors
- Work sampling-test applicants on tasks associated with that job; appropriate for routine or
standardized work
- Assessment center-simulate jobs; appropriate for evaluating managerial potential
- Interviews
- Almost universally used
- Must know what can and cannot be asked
- Can be useful for managerial positions
- To know as much as possible is that person suitable/fit to the job and the company
- Ask situational questions
- Let themselves answer strategy, how much they understand about this job
- Interviews by taking a company tour:
- Ask situation question: why is this machine broken after 2 - 3 months of use?
What do you think about the machines’s used by the company? → to test their
focus level and deepen knowledge
- 2 ways (often) to test:
- Specialize
- Personality
- Background Investigations
- Used for verifying application data - valuable source of information
- Used for verifying reference checks - not a valuable source of information
- Physical Examinations
- Are for jobs that have certain physical requirements
- Mostly used for insurance purposes
- Realistic job previews (RJP): A preview of a job that provides both positive and negative information
about the job and the company

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IV. PROVIDING EMPLOYEES WITH NEEDED SKILLS AND KNOWLEDGE
1. Orientation
- Orientation: Introducing a new employee to his or her job and the organization
- Two types of orientation:
- Work unit orientation: familiarizes the employee with the goals of the work unit, clarifies how
his or her job contributes to the unit’s goals, and includes an introduction to his or her new
coworkers.
- Organization orientation: informs the new employee about the company’s goals, history,
philosophy, procedures, and rules. It should also include relevant HR policies and maybe even a
tour of the facilities.

2. Employee training
- Types of training

General Communication skills, computer systems application and programming, customer

service, executive development, management skills and development, personal growth,
sales, supervisory skills, and technological skills and knowledge

Specific Basic life-work skills, creativity, customer education, diversity/ cultural awareness,
remedial writing, managing change, leadership, product knowledge, public
speaking/presentation skills, safety. ethics, sexual harassment, team building, wellness,
and others
- Training methods
- On-the-job: employees learn how to do tasks simply by performing them, usually after an initial
introduction to the task.
- Job rotation: employees work at different jobs in a particular area, getting exposure to a variety
of tasks.
- Mentoring and coaching: employees work with an experienced worker who provides
information, support, and encouragement; also called apprenticeships in certain industries.
- Experiential exercises: Employees participate in role-playing, simulations, or other face-to-face
types of training.
- Workbooks/manuals: Employees refer to training workbooks and manuals for information.
- Classroom lectures: Employees attend lectures designed to convey specific information.
- Technology-Based Training Methods
- CD-ROM/DVD videotapes/audiotapes/podcasts: Employees listen to or watch selected media
that convey information or demonstrate certain techniques
- Video conferencing/teleconferencing satellite TV: Employees listen to or participate as
information is conveyed or techniques demonstrated

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 - E-learning: Internet based learning where employees participate in multimedia simulate or other
interactive modules
- Mobile learning: Learning delivered via mobile devices.
V. RETAINING COMPETENT, HIGH-PERFORMING EMPLOYEES
1. Employee performance management
- Performance management system: establishes performance standards used to evaluate employee
performance
- Performance appraisal methods
- Written Essay: Evaluator writes a description of employee's strengths and weaknesses, past
performance, and potential; provides suggestions for improvement.
- Simple to use
- May be better measure of evaluator's writing ability than of employee's actual
performance
- Critical incident (sự cố nghiêm trọng): Evaluator focuses on critical behaviors that separate
effective and ineffective performance.
- Rich examples, behaviorally based
- Time-consuming, lacks quantification
- Graphic Rating Scale: popular method that lists a set of performance factors and an incremental
(tăng dần) scale; evaluator goes down the list and rates employee on each factor.
- Provides quantitative data; not time-consuming
- Doesn't provide in-depth information on job behavior
- BARS (Behaviorally Anchored Rating Scale): Popular approach that combines elements from
critical incident and graphic rating scale; evaluator uses a rating scale, but items are examples of
actual job behaviors.
- Focuses on specific and measurable job behaviors
- Time-consuming; difficult to develop
- Multiperson Comparison: Employees are rated in comparison to others in work group.
- Compares employees with one another
- Difficult with large number of employees; legal concerns
- MBO: Employees are evaluated on how well they accomplish specific goals.
- Focuses on goals; results oriented
- Time-consuming
- 360-Degree Appraisal: Utilizes feedback from supervisors, employees, and coworkers.
- Thorough (kỹ lưỡng)
- Time-consuming

2. Compensation and benefits

- It can help attract and retain competent and talented individuals who help the organization accomplish
its mission and goals.
- Organization’s compensation system has been shown to have an impact on its strategic performance.
- Managers must develop a compensation system that reflects the changing nature of work and the
workplace in order to keep people motivated.
- Organizational compensation can include many different types of rewards and benefits such as base
wages and salaries, wage and salary add-ons, incentive payments, and other benefits and services.

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 - Employee benefits commonly include offerings such as retirement benefits, health care insurance, and
paid time off.
- Family-friendly benefits provided by organizations time off for school functions.
- Level of compensation and beneftis:
- Employee’s tenture and performance: How long has employee been with organization and how
has he or she performed?
- Kind of job performed: Does job require high levels of skills?
- Kind of business: What industry is job in?
- Unionization: Is business unionized?
- Labor or capital intensive: Is business labor or capital intensive?
- Management philosophy: What is management’s philosophy toward pay?
- Geographical location: Where is organization located?
- Company profitability: How profitable is the business?
- Size of company: How large is the organization?

- Many organizations, however, are using alternative approaches to determining compensation: skill-based
pay and variable pay.
- Skill-based pay systems: reward employees for the job skills and competencies they can
demonstrate
- Variable pay: A pay system in which an individual’s compensation is contingent (ngẫu nhiên)
on performance

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VI. CONTEMPORARY ISSUES IN MANAGING HUMAN RESOURCES
1. Managing downsizing
- Downsizing: The planned elimination of jobs in an organization
- Tips for managing downsizing
- Treat everyone with respect.
- Communicate openly and honestly:
- Inform those being let go as soon as possible.
- Tell surviving employees the new goals and expectations.
- Explain impact of layoffs.
- Follow any laws regulating severance pay or benefits.
- Provide support/counseling for surviving (remaining) employees.
- Reassign roles according to individuals' talents and backgrounds.
- Focus on boosting morale:
- Offer individualized reassurance (trấn an)
- Continue to communicate, especially one-on-one
- Remain involved and available.
- Have a plan for the empty office spaces/cubicles so it isn't so depressing for surviving employees.

2. Managing Sexual Harassment

- Sexual harassment: Any unwanted action or activity of a sexual nature that explicitly or implicitly
affects an individual’s employment, performance, or work environment

3. Controlling HR costs
- HR costs are skyrocketing, especially employee health care and employee pensions (lương hưu)
- Employee health care costs:
- Is it any wonder that organizations are looking for ways to control their health care costs?
How?
- Many organizations are providing opportunities for employees to lead healthy lifestyles.
- From financial incentives (khuyến khích khích tài chính) to company - sponsored health and
wellness programs, the goal is to limit rising health care costs
- Employee pension plan costs
- When companies could afford to give employees a broad-based pension that provided them a
guaranteed retirement income are gone.
- Organizations have to balance offering benefits with the costs of providing such benefits.
- Organizations want to attract talented, capable employees by offering them desirable benefits
such as pensions

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 CHAPTER 14: INTERPERSONAL AND ORGANIZATIONAL COMMUNICATION

I. THE NATURE AND FUNCTION OF COMMUNICATION

1. What is communication?
- Communication: The transfer and understanding of meaning
- For communication to be successful, meaning must be imparted and understood by the receiver.
- E.g: Amber has called her work group together to assign tasks for the day. In this instance,
Amber is using communication to control behavior.
- Interpersonal communication: Communication between two or more people
- Organizational communication: All the patterns, networks, and systems of communication within an
organization

2. Functions of communication
- Communication serves four major functions: control, motivation, emotional expression, and
information.
- Control: Organizations have authority hierarchies (hệ thống phân cấp quyền hạn) and formal
guidelines that employees are expected to follow.
- Motivation: Motivating by clarifying to employees what is to be done, how well they’re doing,
and what can be done to improve performance if it’s not up to par
- Emotional expression: Providing a release (sự giải phóng) for emotional expression of feelings
and for fulfillment of social needs.
- Information: Individuals and groups need information to get things done in organizations.
Communication provides that information.

II. METHODS AND CHALLENGES OF INTERPERSONAL COMMUNICATION

- Interpersonal:
- Is that you speaking with employees, managers, customer nice?
- It’s about individual skill
- (school cannot teach you this, you need to learn it by yourself. The lesson can only go through it
generally)
1. Methods
- Communication processes: The seven elements involved in transferring meaning from one person to
another

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 - Message: A purpose to be conveyed
- Encoding: Converting a message into symbols
- The sender put their thought (message) into language, body language, images, etc.
- Good or bad encode is depending on your personal skill
- Encoding takes place before the message reaches the medium.
- Channel: The medium a message travel along
- The sender send the massage to the receiver through medium
- If they can skip the medium, which the mesage go directly to the receiver, called
telepathy =))
- Decoding: Retranslating a sender’s message
- The receiver read/hear the message and they try to understand it, which mean they turn
the message into the meaning
- Noise: Any disturbances (bất kỳ sự xáo trộn nào) that interfere (cản trở) with the transmission,
receipt, or feedback of a message
- Incurred throughout the whole process. It’s external information
- E.g: manager told you to met him in his room. Noise occur like this: your coworker said
“he would scold on you”; the others said “he will promote for you”
- When you receive a message, the very first person that you should ask/confirm the
message is that sender, not the others.
- Managers have a wide variety of communication methods from which to choose and can use 12
questions (12 principles - said Berlin) to help them evaluate these methods:
- Feedback: How quickly can the receiver respond to the message?
- Do I need an immediate response?
- Urgent situations: used fast medium feedback like phone call
- Not really urgent: email, letter, message

- Complexity capacity: Can the method effectively process complex messages?

- E.g: teach the new employees to use the machine operation. You would rather choose
face to face meeting or video call

- Breadth potential: How many different messages can be transmitted (truyền tải) using this
method?
- Can the medium contain different messages at one
- Complexity is about the complex level of a message, but breadth is about the quantity of
the message (should not confuse about this)

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 - Confidentiality: Can communicators be reasonably sure their messages are received only by
those intended?
- Can the medium keep secret?
- MIS is the company public chat; thus, it’s very lack of confidential.

- Encoding ease: Can sender easily and quickly use this channel?
- Is it easy to be used?
- Is it understandable?

- Decoding ease: Can receiver easily and quickly decode messages?

- Same as encoding ease
- E.g looking on the laptop screen at night is eyesore, therefore, letter’s somehow better

- Time-space constraint: Do senders and receivers need to communicate at the same time and in
the same space?
- Does the medium require both sender and receiver are in the same time - same place?
- Linking with the feedback principles
Time Place

Face to face Same Same

Zoom - Google meet Same Different

Phone call same Different

Email Different time Different

- The medium that constrain time, it will lead to the fast feedback
- The more constrain time and space, the worst the ease.

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 - Cost: How much does it cost to use this method?
- Does that medium cost you lots of money? Cheap - expensive?

- Interpersonal warmth: How well does this method convey interpersonal warmth?
- Can the medium be used to build relationships?
- Choose the medium that receiver can feel the level of interaction on it
- It can be also build warmth through the way sender encode the message

- Formality: Does this method have the needed amount of formality?

- Messenger, Zalo, Viber, etc. super informal
- Letter: super formal
- Email: 50 - 50
- Face to face: it’s depended on your behave and performance (it’s very special medium)

- Scanability: Does this method allow the message to be easily browsed or scanned for relevant
information?
- When a sender evaluates a communication method to judge scanability, he is checking if
the recipient can easily browse the message for relevant information.
- E.g: you plan for an outgoing trip. Then, how can you announce this information?
- Posted paper document or send an email: easy to scan for the information, avoid
missing information
- Broadcast or oral announcement: only galaxy brain can remember it - said Berlin

- Time of consumption: Does the sender or receiver exercise the most control over when the
message is dealt with?
- The combination of feedback - encode/decode ease - time-space constraint

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 - Types of interpersonal communication:
- Nonverbal communication: Communication transmitted without words
- Body language: Gestures, facial configurations, and other body movements that convey
meaning.
- Verbal intonation: An emphasis given to words or phrases that conveys meaning
- Cloth:
- Ugly - beautiful
- Cost: is it suitable for my pocket :(
- Formality: very important in business
- Warmth: express the way you feel about this relationship
- Represent the confidentiality: can I trust this person? Each industry, position will
have different dress code
- Others:
- Smell: of the company, not individual
- Make up, hairstyle, watch, etc.
- Care, laptop, phone, etc.
- Non-verbal is the thing you don’t need to try, you can prepare it. However, Verbal cannot
be prepare, it depend on your encode - decode ability

2. Barriers
- Cognitive: two cognitive barriers to communication:
- Information overload: When information exceeds our processing capacity
- Filtering: The deliberate manipulation (cố ý thao túng) of information to make it appear more
favorable to the receiver.
- Emotions
- When people feel they’re being threatened, they tend to react in ways that hinder (cản trở)
effective communication and reduce their ability to achieve mutual understanding (thấu hiểu)
- They become defensive - verbally attacking others, making sarcastic (châm biếm) remarks, being
overly judgmental, or questioning others’ motives.
- Sociocultural
- Age, education, and cultural background are three of the more obvious variables that influence
the language a person uses and the definitions he or she gives to words.
- In an organization, employees come from diverse backgrounds and have different patterns of
speech.
- Even employees who work for the same organization but in different departments often have
different jargon
- Jargon (thuật ngữ): Specialized terminology or technical language that members of a group use
to communicate among themselves
- National culture

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 - In an individualistic country like the United States, communication is more formal and is clearly
spelled out. Managers rely heavily on reports, memos, and other formal forms of
communication.
- In a collectivist country like Japan, more interpersonal contact takes place, and face-to-face
communication is encouraged.

3. Overcoming the barriers

- E.g: When Terrence explained to the employees why layoffs were necessary, he spoke about return on
investment, debt, and cash flow-terms his shareholders clearly understood. But his employees had no
clue what he meant. Terrence's explanation would have been more effective if he had tailored the
language to the audience.
- To overcoming the barriers, managers should:
- Use feedback
- As a sender: ask, confirm with the receiver if they have any feedback
- As a receiver: always turn back to the sender and confirm with them. Except for the very
simple, too clear message
- E.g: manager require you to sign a contract with the client.
- Good feedback: confirm with the manager about the name of the client, date,
content, etc.
- Silly/stupid feedback: confirm with the manager about the email format, the
signature, etc.
- Simplify language
- Listen actively
- Active listening: listening for full meaning without making premature judgments or interpretations
(không đưa ra phán đoán - lý giải quá sớm)

- Constrain emotions: Calm down and get emotions under control before communicating.
- Watch nonverbal cues
- Characteristic: show empathy, show interest by making eye contact, exhibit affirmative head
nods and appropriate facial expressions, ask questions, avoid distracting action or gestures,
paraphrase what’s been said, don’t interupt

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III. EFFECTIVE ORGANIZATIONAL COMMUNICATION
1. Formal versus informal
- Formal communication: Communication that takes place within prescribed (quy định) organizational
work arrangements
- Informal communication: Communication that is not defined by the organization’s structural hierarchy
(cấu trúc phân cấp)
- Two purposes of informal communication:
- It permits employees to satisfy their need for social interaction
- It can improve an organization’s performance by creating alternative, and frequently
faster and more efficient, channels of communication.

2. Direction of flow
- Downward communication
- CEOs use town hall meetings to communicate with employees or to coordinate and evaluate
employees
- Town hall meeting: Informal public meetings where information can be relayed (chuyển tiếp),
issues can be discussed, or employees can be brought together to celebrate accomplishments
- Downward communication: Communication that flows downward from a manager to
employees
- Upward communication
- Communication that flows upward from employees to managers
- Lateral
- Communication that takes place among any employees on the same organizational level
- Diagonal communication
- Communication that crosses both work areas and organizational levels.

3. Networks
- Communication networks: The variety of patterns of vertical and horizontal flows of organizational
communication
- Types of communication networks
- Chain network: Communication flows according to the formal chain of command, both
downward and upward. (filtering)
- Wheel network represents communication flowing between a clearly identifiable and strong
leader and others in a work group or team. (báo cáo trực tiếp cho the highest manager)
- All-channel network: communication flows freely among all members of a work team.
- The form of network you should use depends on your goal.

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 - The grapevine
- Grapevine: The informal organizational communication network (also noise)
- Acting as both a filter and a feedback mechanism, it pinpoints those bewildering issues that
employees consider important. (xác định chính xác những vấn đề hoang mang mà nhân viên coi
là quan trọng)
- From a managerial point of view, it is possible to analyze what is happening on the grapevine -
what information is being passed, how information seems to flow, and what individuals seem to
be key information conduits.
- Managers can identify issues that concern employees and in turn use the grapevine to
disseminate (phổ biến) important information.
- Benefit of grapevine (by Berlin)
- Review manager, boss, others coworker
- Figure out who hold the soft power - hard power, influential person
- Leaking information (by the manager’s secretary)
- If you can control information, you hold the soft power in the company
- From grapevine, the manager can set up how this person communicate with the others

4. Workplace design and communication

- A workplace design should successfully support four types of employee work: focused work,
collaboration, learning, and socialization.
- E.g: Cartoonist Scott Adams, author of the Dilbert comic, writes of "cubicle cities," large areas
with innumerable employees packed into individual workspaces separated by partial walls. In
this workplace design, density is increase.
- Open workplaces: Workplaces with few physical barriers and enclosures (bao vây)

IV. COMMUNICATION IN THE INTERNET AND SOCIAL MEDIA AGE

1. The 24/7 work environment
- IT has made it possible to stay connected around the clock, seven days per week.
- IT has made it possible for people in organizations to be fully accessible, at any time, regardless of
where they are.
- A(n) wi-fi hot spot is a location where Internet users can gain wireless access to the Internet.
- Though IT has improved organizational communications in recent years, security remains a major
concern.

2. Working from anywhere

- As wireless technology continues to improve, we’ll see more organizational members using it as a way
to collaborate and share information.

3. Social Media
- Devoting a channel (dành một kênh) for information exchange about a specific topic can help
compartmentalize the conversation.

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 - It can also start a useful conversation in which employees can share their experiences and make
suggestions for creating competitive advantage.

4. Balancing the Pluses and Minuses

- Communication and the exchange of information among organizational members are no longer
constrained by geography or time.
- Constantly staying connected has its downsides, such as impeding (cản trở) creativity.
5. Choosing the Right Media
- It is important for managers to understand the situations in which one or more media facilitates effective
communication.

V. COMMUNICATION ISSUES IN TODAY’S ORGANIZATIONS

1. Managing communication in a digitally connected world
- Managers are learning, the hard way sometimes, that all this new technology has created special
communication challenges.
- The two main challenges: Legal and security issues - Lack of personal interaction.

2. Managing the organization’s knowledge resources

- Managers need to enable employees to communicate and share knowledge so they can learn from each
other.

3. The role of communication in customer service

- The three components working on communication:
- Customer
- Service organization
- Individual service provider
- Getting Employee Input
- Letting employees know that their opinions matter is an essential first step in building effective
suggestions systems.

5. Communicating ethically
- Ethical communication: Communication that includes all relevant information, is true in every sense,
and is not deceptive (lừa dối) in any way

VI. BECOMING A BETTER COMMUNICATOR

1. Sharpening your persuasion skills
- Persuasion skills: Skills that enable a person to influence others to change their minds or behavior

2. Sharpening your speaking skills

- Speaking skills: Skills that refer to the ability to communicate information and ideas in talking so
others will understand

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3. Sharpening your writing skills
- Writing skills: Skills that entail (kéo theo) communicating effectively in text as appropriate for the
needs of the audience

4. Sharpening your reading skills

- Reading skills: Skills that entail an understanding of written sentences and paragraphs in work-related
documents.

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 CHAPTER 15 ORGANIZATIONAL BEHAVIOR

I. FOCUS AND GOALS OF ORGANIZATIONAL BEHAVIOR

- Behavior: The actions of people
- Organizational behavior (OB): The study of the actions of people at work
- Positive behavior (by Berlin):
- Obedience (vâng lời): but not always
- Pregressive (cầu tiến)
- Responsibility
- Discipline
- Punctuality
- Submit faster or right the deadline
- Right dress code
- Go to work on time and in a good condition
- Integrity
- Listening
- Helpfulness: both with employees/cowoker and manager and lower level
- Negative behavior (by Berlin):
- Talkative
- Raise drama
- No contribution, passive
- Indicreet (vô kỷ luật)
- Late
- Dishonesty
- Only care about short-term benefit
- One of the challenges in understanding organizational behavior is that it addresses issues that aren’t
obvious.
- OB has a small visible dimension and a much larger hidden portion.

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1. Focus of organizational behavior
- OB focuses on 3 fields:
- Individual behavior: Attitudes, personality, perception, learning, and motivation
- Group behavior: Norms, roles, team building, leadership, and conflict
- Organizational aspects: Structure, culture, and human resource policies and practices.

2. Goals of organizational behavior

- The goals of OB are to:
- Explain why employees engage in some behaviors rather than others
- Predict how employees will respond to various actions and decisions
- Influence how employees behave
- Six important behaviors are we specifically concerned with explaining, predicting, and influencing
- Employee productivity: A performance measure of both efficiency and effectiveness.
- Absenteeism: The failure to show up for work
- Turnover: The voluntary and involuntary permanent withdrawal from an organization.
- Turnover is high among new hires at Stewart's company. At one exit interview, Stewart
asked the departing new hire why she was leaving so soon. The most likely response is
the higher level employees repeatedly overemphasize the company's positive points while
interviewing candidates.
- Organizational citizenship behavior (OCB): Discretionary (tùy ý) behavior that is not part of
an employee’s formal job requirements, but which promotes the effective functioning of the
organization
- The best behavior that HR and company hunting for
- Employees do things that beyond their contract, beyond the manager’s request
- It’s doesn’t need to do, if those person do it, it’s still no reward. BUT they still do it!
Why? Because they aim for the best.
- Job satisfaction: An employee’s general attitude toward his or her job.

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 - Counterproductive workplace behavior: Any intentional (cố ý) employee behavior that is
potentially damaging to the organization or to individuals within the organization

II. ATTITUDES AND JOB PERFORMANCE

- Attitudes: Evaluative statements, either favorable or unfavorable, concerning objects, people, or events.
- An attitude is made up of three components:
- Cognitive component (nhận thức): That part of an attitude that’s made up of the beliefs,
opinions, knowledge, or information held by a person.
- The component of attitude that includes beliefs and opinions is the cognitive component.
- Affective component (tình cảm): That part of an attitude that’s the emotional or feeling part
- Behavioral component: That part of an attitude that refers to an intention to behave in a certain
way toward someone or something
- 3 necessary attitude to build OCB: job, company, higher level (or lateral)
- Improve attitude toward job:
- Give the employees benefit, reward
- Empower: but don’t empower an idiot. Empower not only improve empployees’ attitude
toward job but also the company.
- Recognition
- Fairness (CORE VALUE)
- Improve attitude toward the company
- Activities that have employees engagement
- Benefit: however, benefit is belong to the CEO’s decision, not HR
- Improve attitude toward higher level
- Friendliness: sometimes, it’s not useful, especially between the middle age female
manager and youth employees =)))))))))
- Helpfulness
- Fairness
- Excellent manager and teach employees, not hide the trick/job (giỏi và không giấu nghề)

1. Job satisfaction
- High level of satisfaction = positive attitude
- Dissatisfaction = negative attitude
- Linked to:
- Productivity
- Absenteeism
- Turnover
- Customer satisfaction
- OCB
- Counterproductive behavior

2. Job involvement and organizational commitment

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 - Job involvement: The degree to which an employee identifies with his or her job, actively participates
in it, and considers his or her job performance to be important to self-worth
- Organizational commitment: The degree to which an employee identifies with a particular
organization and its goals and wishes to maintain membership in that organization
- Perceived organizational support: Employees’ general belief that their organization values their
contribution and cares about their well-being

3. Employee engagement
- Employee engagement: When employees are connected to, satisfied with, and enthusiastic about their
jobs

4. Attitudes and consistency

- People generally seek consistency among their attitudes and between their attitudes and behavior; they
try to reconcile (hòa giải) differing attitudes and align their attitudes and behavior so they appear rational
and consistent.

5. Cognitive dissonance theory

- Cognitive dissonance (bất hòa): Any incompatibility (không tương thích) or inconsistency (mâu thuẫn)
between attitudes or between behavior and attitudes
- The theory proposes that how hard we’ll try to reduce dissonance is determined by three things:
- The importance of the factors creating the dissonance (Tầm quan trọng của các yếu tố tạo ra sự
bất hòa)
- The degree of influence the individual believes he or she has over those factors
- The rewards that may be involved in dissonance

6. Attitude surveys
- Attitude surveys: Surveys that elicit (gợi ra) responses from employees through questions about how
they feel about their jobs, work groups, supervisors, or the organization
- Here are some sample statements from an employee attitude survey:
- I have ample opportunities to use my skills/abilities in my job.
- My manager has a good relationship with my work group.
- My organization provides me professional development opportunities.
- I am told if I'm doing good work or not.
- I feel safe in my work environment.
- My organization is a great place to work.

7. Implications for managers

- Managers should be interested in their employees’ attitudes because they influence behavior.
- Satisfied employees also perform better on the job.
- Managers should also survey employees about their attitudes.
- Managers should know that employees will try to reduce dissonance

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III. PERSONALITY
- Personality: The unique combination of emotional, thought, and behavioral patterns that affect how a
person reacts to situations and interacts with others

1. MBTI®
- The MBTI® is a popular personality-assessment instrument. (don’t have the scientifically verified)
- Understanding the personality traits assessed by the MBTI® helps managers understand the way people
interact and solve problems.
- According to MBTI, judging types want control and prefer their world to be ordered.
- It classifies individuals as exhibiting a preference in four categories:
- Extraversion or introversion (E or I)
- Sensing (cảm nhận) or intuition (S or N)
- Thinking or feeling (T or F)
- Judging or perceiving (J or P)
Type Description

I-S-F-P (introversion, Sensitive, kind, modest, shy, and quietly friendly. Such people strongly
sensing, feeling, dislike disagreements and will avoid them. They are loyal followers and
perceiving) quite often are relaxed about getting things done.

E-N-T-J (extraversion, Warm, friendly, candid (thật thà), and decisive; also skilled in anything that
intuition, thinking, requires reasoning and intelligent talk, but may sometimes overestimate
judging) what they are capable of doing.

2. The big five model (Recommended by Berlin)

- Big five model: personality trait model that includes extraversion, agreeableness, conscientiousness,
emotional stability, and openness to experience
1. Extraversion: The degree to which someone is sociable, talkative, assertive, and comfortable in
relationships with others.
- How much do you prefer to spend time with other people?
2. Agreeableness: The degree to which someone is good-natured, cooperative, and trusting.
- How do you value social harmony or other’s feeling?
- In the company, it’s recommended to have both low and high people in this
- Low: bluntly (thẳng thừng) ẽpress their ideas, reactions, judge others, also may yell at the
others in the public
3. Conscientiousness: The degree to which someone is reliable, responsible, dependable,
persistent, and achievement oriented.
- How hard working and tidy you are?
- High: tidy person, well organizing from the personal life to work life, suitable for high
positions or top job.
- Low: easily change job

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 4. Emotional stability (neuroticism): The degree to which someone is calm, enthusiastic, and
secure (positive) or tense, nervous, depressed, and insecure (negative).
- How much do you alert?
- High: easy to be impacted by the others or environment
- This dimension mainly affect personally, not the company or industry
5. Openness to experience: The degree to which someone has a wide range of interests and is
imaginative, fascinated with novelty, artistically sensitive, and intellectual.
- How much do you want to accept new idea?
- Low: things that don’t need to be changed, they won’t change. They can still follow the
new idea but need convincing evidence and reasons
- High: actively chase find new idea

3. Additional personality insights

- Locus of control: A personality attribute that measures the degree to which people believe they control
their own fate
- According to research, employees who have a high internal locus of control exhibit more
satisfaction with their jobs than externals.
- Included in the class of contingency variables termed "follower" by the path-goal theory
- Machiavellianism: A measure of the degree to which people are pragmatic (thực dụng), maintain
emotional distance, and believe that ends justify means.
- An individual who is high in machiavellianism is pragmatic, maintains emotional distance, and
believes that ends can justify means.
- Self-esteem: An individual’s degree of like or dislike for himself or herself (themselves)
- Self-monitoring: A personality trait that measures the ability to adjust behavior to external situational
factors.
- Risk-Taking
- Other personality traits
- Proactive personality: a personality trait that describes individuals who are more prone to take
actions to influence their environments
- Resilience: An individual’s ability to overcome challenges and turn them into opportunities
4. Personality types in different cultures
- No personality type is common for a given country, yet a country’s culture influences the dominant
personality characteristics of its people.
- National cultures differ in terms of the degree to which people believe they control their environment.
- For global managers, understanding how personality traits differ takes on added significance when
looking at it from the perspective of national culture.

5. Emotions and emotional intelligence

- Emotions: Intense feelings that are directed at someone or something
- Emotional intelligence (EI): The ability to notice and to manage emotional cues and information
- It’s composed of five dimensions:

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 - Self-awareness: The ability to be aware of what you’re feeling.
- Self-management: The ability to manage one’s own emotions and impulses (sự thôi thúc)
- Self-motivation: The ability to persist (kiên trì) in the face of setbacks and failures.
- Empathy (Đồng cảm): The ability to sense (cảm nhận) how others are feeling.
- Social skills: The ability to handle the emotions of others

6. Implications for managers

- Managers are likely to have higher-performing and more satisfied employees if consideration is given to
matching personalities with jobs.
- Holland’s theory proposes that satisfaction is highest and turnover lowest when personality and
occupation are compatible.
- The key points of this theory are that
- Intrinsic differences (Sự khác biệt nội tại) in personality are apparent (rõ ràng) among
individuals
- The types of jobs vary
- People in job environments compatible (tương thích) with their personality types should be more
satisfied and less likely to resign voluntarily than people in incongruent jobs

Type Personality characteristic Sample occupations

Realistic: Prefers physical Shy, genuine, persistent, Mechanic, drill press operator,
activities that require skill, strength, stable, conforming, practical assembly-line worker, farmer
and coordination.

Investigation: Prefers activities Analytical, original, curious, Biologist, economist,

involving thinking, organizing, and independent mathematician, news reporter
understanding

Social: Prefers activities that Sociable, friendly, Social worker, teacher,

involve helping and developing cooperative, understanding counselor, clinical psychologist
others

Conventional: Prefers rule Conforming. efficient, Accountant, corporate manager,

regulated, orderly, and practical, unimaginative, bank teller, file clerk
unambiguous activities inflexible

Enterprising: Prefers Verbal Self-confident ambitious, Lawyer, real estate agent, public
activities that offer opportunities to energetic, domineering relations specialist, small
influence others and attain power business manager

Artistic: Prefers ambiguous and Imaginative. disorderly, Painter, musician, writer,

unsystematic activities that allow idealistic, emotional, interior decorator
creative expression impractical

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IV. PERCEPTION
Perception: A process by which we give meaning to our environment by organizing and interpreting sensory
impressions
1. Factors that influence perception
- A number of factors act to shape and sometimes distort perception. These factors are in the perceiver, in
the target being perceived, or in the situation in which the perception occurs.

2. Attribution theory
- Attribution theory: a theory used to explain how we judge people differently depending on what
meaning we attribute to a given behavior
- Attribution depends on three factors:
- Distinctiveness (khác biệt): refers to whether an individual displays different behavior in
different situations.
- Consensus (đồng thuận): everyone who’s faced with a similar situation responds in the
same way
- Consistency: Tính nhất quán

Observation Interpretation Attribution of cause

Does person behave this way in Yes: Low distinctiveness Internal attribution
other situations ? No: High distinctiveness External attribution

Do other people behave the same Yes: High consensus External attribution
way in similar situation? No: Low consensus Internal attribution

Does person behave this way Yes: High consistency Internal attribution
consistently? No: Low consistency External attribution

- Tendency of attribution theory

- Fundamental attribution error: the tendency to underestimate the influence of external factors
and to overestimate the influence of internal or personal factors
- E.g: "He could do it if he wanted to. He just doesn't like that part of his job, that's all." A
statement like this from a supervisor indicates a fundamental attribution error.
- Self-serving bias: the tendency of individuals to attribute (thuộc tính) their successes to internal
factors while blaming personal failures on external factors

3. Shortcuts used in judging others

- Assumed similarity: The assumption that others are like oneself
- Stereotyping: Judging a person based on a perception of a group to which that person belongs
- Halo effect: A general impression of an individual based on a single characteristic.

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 - E.g: Bill, a manager at a consulting firm, has been keenly analyzing the performance of a new
recruit who turns out to be extremely intelligent. He concludes that she will be a good manager
in the future even though her interpersonal skills are not half as impressive. This conclusion on
Bill's part seems to be the result of the halo effect.

4. Implications for managers

- Managers need to recognize that their employees react to perceptions, not to reality

V. LEARNING
- Learning: Any relatively permanent change in behavior that occurs as a result of experience

1. Operant conditioning
- Operant conditioning: A theory of learning that says behavior is a function of its consequences
- Operant behavior is voluntary or learned behavior.

2. Social learning
- Social learning theory: a theory of learning that says people can learn through observation and direct
experience
- The amount of influence these models have on an individual is determined by four processes:
- Attentional processes: people learn from a model when they recognize and pay attention to its
critical features. We’re most influenced by models who are attractive, repeatedly available,
thought to be important, or seen as similar to us.
- Retention processes: a model’s influence will depend on how well the individual remembers the
model’s action, even after the model is no longer readily available.
- Motor reproduction processes: After a person has seen a new behavior by observing the model,
the watching must become doing. This process then demonstrates that the individual can actually
do the modeled activities.
- Reinforcement processes: individuals will be motivated to exhibit the modeled behavior if
positive incentives or rewards are provided. Behaviors that are reinforced will be given more
attention, learned better, and performed more often.

3. Shaping: a managerial tool

- Shaping behavior: The process of guiding learning in graduated steps using reinforcement or lack of
reinforcement (Quá trình hướng dẫn học tập theo các bước tăng dần bằng cách sử dụng phần tăng cường
hoặc thiếu phần tăng cường)

4. Implications for managers

- Employees are going to learn on the job: are managers going to manage their learning through the
rewards they allocate the examples they set, or allow it to occur haphazardly?

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 - If managers want behavior A, but reward behavior B, they shouldn’t be surprised to find employees
learning to engage in behavior B. Similarly, managers should expect that employees will look to them as
models.

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 CHAPTER 16: LEADERSHIP

I. WHO ARE LEADERS AND WHAT IS LEADERSHIP?

- Leader: Someone who can influence others and who has managerial authority
- Manager is also the leader (compulsory)
- However, most of the time, the manager can done well 1 (or management or leadership)
- Some manager are good at controlling, managing but they are boring person, which
means they can’t motivate their employees
- Some manager are opposite, they are super motivate but their controlling and managing
are bullshit =)) (Berlin said)
- Sometimes, leader are not the manager (rarely)
- Leadership: A process of influencing a group to achieve goals
- 3 factors to become a good leader:
- Interpersonal communication: once again, learn by yourself
- Remember to apply the 11 (12) criteria (in chapter 14)
- Nonverbal communication
- Trust: you must build trust so that you can motivate others (as a positive way)
- Style of leadership (the least important:
- Do you know how to communicate with others?
- Can people trust you?
- Can you maintain a positive motivating atmosphere?

II. EARLY LEADERSHIP THEORIES

1. Leadership traits
- Identifying personal characteristics that differentiated leaders from non-leaders was unsuccessful who
can influence others and who has managerial authority.
- It proved impossible to identify a set of traits that would always differentiate a leader (the person) from a
non-leader.
- Some of the traits studied included physical stature, appearance, social class, emotional stability, fluency
of speech, and sociability.
- Eight traits associated with leadership
- Drive: Leaders exhibit a high effort level. They have a relatively high desire for achievement,
they are ambitious, they have a lot of energy, they are tirelessly persistent (kiên trì không mệt
mỏi) in their activities, and they show initiative (chủ động).
- Desire to lead: Leaders have a strong desire to influence and lead others. They demonstrate the
willingness to take responsibility
- Honesty and integrity: Leaders build trusting relationships with followers by being truthful or
non-deceitful (không lừa dối) and by showing high consistency between word and deed
- Do you have the principles for your own life (personal ethics) and stick to it?
- Personal ethics: not always be the standards morality, this is what (to your extend) right
or wrong.

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 - Nearly same as self-esteem: the person who love themself
- E.g: the manager doesn’t care about who the employees are, whenever they make the
manager angry, he/she immediately tormenting and slapping at that employees
- Therefore, when working with this manager, somehow it’s very ease to please them as
long as you know their principles
- Self-confidence: Followers look to leaders for an absence of self-doubt (không còn nghi ngờ bản
thân). Leaders, therefore, need to show self-confidence in order to convince followers of the
rightness of their goals and decisions
- Intelligence: Leaders need to be intelligent enough to gather, synthesize, and interpret large
amounts of information, and they need to be able to create visions, solve problems, and make
correct decisions. (important for both employees and manager)
- This is the ability to work and lead and organize well
- This just as simple as if you good/excellent, others will follow you, listen to you
- Job-relevant knowledge: Effective leaders have a high degree knowledge about the company,
industry, and technical matters. In-depth knowledge allows leaders to make well informed
decisions and to understand the implications of these decisions
- Extraversion: Leaders are energetic lively people. They are sociable, assertive, and rarely silent
or withdrawn
- Proneness to guilt: Guilt proneness is positively related to leadership affectiveness because it
produces a strong sense at responsibility for others

2. Leadership behaviors
- Behavioral theories: leadership theories that identify behaviors that differentiate effective leaders from
ineffective leaders

Behavioral Dimension Conclusion

Uni of Iowa Democratic style (dân chủ): involve employees Democratic style of leadership was most
(subordinates) in decision making, delegate effective, although later studies showed
authority, encourage participation in deciding mixed results.
work methods and goals, and use feedback as an
opportunity for coaching employees.
Autocratic style (chuyên quyền): dictating (ra
lệnh) work methods, centralizing decision
making, and limiting participation

Ohio State Laissez-faire style giving group freedom to High-high leader (high in consideration
make decisions and complete work and high in initiating structure) achieved
Consideration: being considerate of followers high subordinate performance and
ideas and feelings satisfaction, but not in all situations.

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 Uni of Initiating structure: structuring work and work Employee-oriented: Leaders were
Michigan relationships to meet job goals associated with high group productivity
Employee oriented: emphasized interpersonal and higher job satisfaction.
relationships and taking care of employees needs
Production oriented emphasized technical or
tasks aspects of job.

Managerial Concern for people: measured leader’s concern Leaders performed best wish 9,9 style
Grid for subordinated on a scale of 1 to 9( low to high concern for production and high
high) concern for people)
Concern for production: measured leader's
concern for getting job done on a scale of 1 to 9
(low to high)

III. CONTINGENCY THEORIES OF LEADERSHIP

1. The fiedler model
- Fiedler contingency model: A leadership theory proposing (đề xuất) that effective group performance
depends on the proper match between a leader’s style and the degree to which the situation allows the
leader to control and influence
- The keys were to:
- Define those leadership styles and the different types of situations
- Identify the appropriate combinations of style and situation.
- Least-preferred coworker (LPC) questionnaire: A questionnaire that measures whether a leader is
task or relationship oriented
- Fiedler’s research uncovered three contingency dimensions that defined the key situational factors in
leader effectiveness.
- Reviews of the major studies undertaken to test the overall validity of Fiedler's model have
shown considerable evidence to support the model.
- Research by Fiedler uncovered three contingency dimensions that define the key situational
factors for determining leader effectiveness.
- Leader–member relations: the degree of confidence, trust, and respect employees have for their
leader; rated as either good or poor.
- Task structure: the degree to which job assignments are formalized and structured; rated as
either high or low.
- Position power: the degree of influence a leader has over activities such as hiring, firing,
discipline, promotions, and salary increases; rated as either strong or weak.

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2. Hersey and blanchard’s situational leadership theory
- Situational Leadership Theory (SLT): A leadership contingency theory that focuses on followers’
readiness (sự sẵn sàng)
- Two points need clarification:
- Why a leadership theory focuses on the followers and what is meant by the term readiness: The
extent to which people have the ability and willingness to accomplish a specific task
- The emphasis on the followers in leadership effectiveness reflects the reality that it is the
followers who accept or reject the leader.
- Four specific leadership styles described
- Telling (high task–low relationship): The leader defines roles and tells people what, how,
when, and where to do various tasks.
- Selling (high task–high relationship): The leader provides both directive and supportive
behavior.
- Participating (low task–high relationship): The leader and followers share in decision making;
the main role of the leader is facilitating and communicating.
- Delegating (low task–low relationship): The leader provides little direction or support
- The final component in the model is the four stages of follower readiness:
- R1: People are both unable and unwilling to take responsibility for doing something. Followers
aren’t competent (năng lực) or confident.
- R2: People are unable but willing to do the necessary job tasks. Followers are motivated but lack
the appropriate skills.
- R3: People are able but unwilling to do what the leader wants. Followers are competent, but
don’t want to do something.
- R4: People are both able and willing to do what is asked of them.

3. Path-goal model
- Path-goal theory: A leadership theory that says the leader’s job is to assist (hỗ trợ) followers in
attaining their goals and to provide direction or support needed to ensure that their goals are compatible
with the goals of the group or organization.
- According to the path-goal theory, a leader who lets subordinates know what's expected of them,
schedules work to be done, and gives specific guidance as to how to accomplish tasks is termed
directive.
- House identified four leadership behaviors:
- Directive leader: Lets subordinates know what’s expected of them, schedules work to be done,
and gives specific guidance on how to accomplish tasks. A leader who lets subordinates know
what's expected of them, schedules work to be done, and gives specific guidance as to how to
accomplish tasks.
- Supportive leader: Shows concern for the needs of followers and is friendly.
- E.g: when Ginger spends time with the employees so they can see that she is friendly and
has concern for them, she displays supportive.

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 - Participative leader: Consults with group members and uses their suggestions before making a
decision.
- Achievement-oriented leader: Sets challenging goals and expects followers to perform at their
highest level.
- Environmental contingency factors
- Task Structure
- Formal Authority System
- Work Group

- Subordinate contingency factors:

- Locus of Control
- Experience
- Perceived Ability
- Outcomes:
- Performance
- Satisfaction

IV. CONTEMPORARY VIEWS OF LEADERSHIP

1. Leader–member exchange (LMX) theory
- Leader–member exchange theory (LMX): The leadership theory that says leaders create in-groups
and out-groups and those in the in-group will have higher performance ratings, less turnover, and greater
job satisfaction
- In-group members have demographic, attitude, personality, and even gender similarities with the leader
or they have a higher level of competence than outgroup members.

2. Transformational-transactional leadership
- Transactional leaders: Leaders who lead primarily by using social exchanges (or transactions)
- Motivated through reward - punishment
- If you are (transaction + work oriented) leader, who work well, you will promote, increase
salary; work bad, you will demote or fire
- If you are (transaction + people oriented) leader, you rely on others’ review to compute the
employees’ salary and promotion
- Employees play well, get along well, you will reward
- However, it’s should not be like this, it’s easily to build faction (bè phái)
- Transformational leaders: Leaders who stimulate and inspire (transform) followers to achieve
extraordinary outcomes.
- They exhibit more than just charisma.

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 - To improve the attitude of employees toward the leaser/manager, the manager should:
- Fairness
- Empower
- Teaching (not hide)
- The employee’s performance good or bad is okey, the important things is that they learnt
anything throughout the process
- E.g: A leader, such as Bill Gates of Microsoft, who can inspire followers above their own
self-interests and can have a profound effect on their performance.
- Transactional and transformational leadership shouldn’t be viewed as opposing approaches to getting
things done.
- The evidence supporting the superiority (tính ưu việt) of transformational leadership over transactional
leadership is overwhelmingly impressive.

3. Charismatic-visionary leadership
- Charismatic leader: An enthusiastic, self-confident leader whose personality and actions influence
people to behave in certain ways
- Visionary leadership: The ability to create and articulate a realistic, credible, and attractive vision of
the future that improves upon the present situation

4. Authentic leadership
- Authentic leadership: Leaders who know who they are, know what they believe in, and act on those
values and beliefs openly and candidly (công khai và thẳng thắn)
- Authentic leadership emphasizes the moral side of business.

5. Ethical leadership
- An ethical leader puts public safety ahead of profits, holds culpable employees accountable (quy trách
nhiệm cho những nhân viên đáng trách), and creates a culture in which employees feel that they could
and should do a better job.

6. Team leadership
- Many leaders are not equipped to handle the change to employee teams.
- One specific role of team leadership is that team leaders are troubleshooters.
- Team leadership involves a different set of responsibilities than the traditional leadership roles.
- Two priorities:
- Managing team’s external boundary
- Facilitating team process

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V. LEADERSHIP ISSUES IN THE TWENTY-FIRST CENTURY
1. Managing power
- Five sources of leader power have been identified:
- Legitimate power: The power a leader has as a result of his or her position in the organization
- Coercive power: The power a leader has to punish or control
- Reward power: The power a leader has to give positive rewards
- Expert power: Power that’s based on expertise, special skills, or knowledge
- Referent power: Power that arises because of a person’s desirable resources or personal traits

2. Developing trust
- Credibility: the degree to which followers perceive someone as honest, competent (tài năng), and able
to inspire
- Trust: the belief in the integrity, character, and ability of a leader
- Trust is very difficult to recover once it has been lost, especially when it related to integrity
- Five dimensions that make up the concept of trust
- Integrity: honesty and truthfulness
- Competence: technical and interpersonal knowledge and skills
- Consistency: reliability, predictability, and good judgment in handling situations
- Loyalty: willingness to protect a person, physically and emotionally
- Openness: willingness to share ideas and information freely
- How to build trust?
- Practice openness
- Be fair
- Speak your feelings
- Tell the truth
- Show consistency
- Fulfill your promises

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 - Maintain confidence
- Demonstrate competence
- Ability (as mention above in Eight traits associated with leadership)
- Integrity (as mention above in Eight traits associated with leadership)
- Benevolence:
- Benevolence - frigidity - malevolence
- Do you care about your stakeholder? Or do you care about yourself only?
- You sincerely care about the others
- E.g: during the pandemic, your employees can’t work at the office rather WFH
- You will at least send them an inquiry message → benevolence
- You only lamen (than thở) the difficulty of the company, ask them to suffer the
salary cut → malevolence
- Predictability:
- Person who low/superlow neuroticism, they are likely high at predictability
- Analyzing those combo:
- Low neuroticism + a little bit integrity → high predictability
- High neuroticism (90+) + low integrity → lagging manager =)) (you don’t willing
to work with this manager)
- It’s not likely that a repeated action will always show the rules behind. That’s why
predictability and integrity are the 2 different factors
- High at integrity is likely high predictability but not the reverse
- High predictability sometimes just because that’s your habits

3. Empowering employees
- Empowerment involves increasing the decision-making discretion of workers. Millions of individual
employees and employee teams are making the key operating decisions that directly affect their work.
- But the manager/leader should never ever empower an idiot or incapable employees
4. Leading across cultures
- Effective leaders do not use a single style. They adjust their style to the situation.
- National culture is certainly an important situational variable in determining which leadership style will
be most effective.
- Cross cultural leadership:
- Korean leaders are expected to be paternalistic (gia trưởng) toward employees.
- Arab leaders who show kindness or generosity without being asked to do so are seen by other
Arabs as weak.
- Chinese leaders are expected to stay positive when facing attacks.
- European leaders are expected to be more action oriented.
- Japanese leaders are expected to be humble and speak frequently.
- Latin American leaders should not feel rejected when others behave formally.
- Scandinavian and Dutch leaders who single out individuals with public praise are likely to
embarrass, not energize, those individuals.
- Flipping burgers at the local drive-thru is Marla's first job. She has no work experience,
no marketable skills. Recognize her best performance with public praise would be
suggested to her manager do to keep Marla motivated to perform at her highest level.

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 - Effective leaders in Malaysia are expected to show compassion (lòng trắc ẩn) while using more
of an autocratic than a participative style.
- Effective German leaders are characterized by high performance orientation, low compassion,
low self-protection, low team orientation, high autonomy, and high participation.
- Effective leaders in Sub-Saharan Africa build deep relationships and close teamwork

5. Becoming an effective leader

- Leader training
- Substitutes for leadership

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 CHAPTER 17: MOTIVATION

I. WHAT IS MOTIVATION?
- Motivation: the process by which a person’s reports are energized, directed, and sustained toward
attaining a goal

II. EARLY THEORIES OF MOTIVATION

1. Maslow’s hierarchy of needs theory
- Hierarchy of needs theory: Maslow’s theory that human needs - physiological, safety, social, esteem,
and self-actualization - form a sort of hierarchy

1. Physiological needs: A person’s needs for food, drink, shelter, sex, and other physical requirements.
Everything that your body need/want/desire
2. Safety needs: A person’s needs for security and protection from physical and emotional harm as well
as assurance that physical needs will continue to be met.
- Predominantly satisfied externally
- Indirect factors destroy the safety need
- Sexual harrasment (both violate physiological and safety need)
- Unsafe facilities: elevator, chairs, light, electrics, etc.
- The manager did not fire the employees but at the same time, did not tell whether they
have insurance or severance packed
- The manager did not tell the employees how their performance be recognized and
evaluated. If they perform well, do they be promoted?
- Direct factors destroy the safety need
- Blackmail
- Threaten

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 3. Social needs: A person’s needs for affection (yêu mến), belongingness, acceptance, and friendship.
- The need on personal interaction, relationship, belonging feeling
- If that’s the introvert employee, they actually don’t need the interaction. They still need the social
need but what they want is simply the belonging feeling
4. Esteem needs: A person’s needs for internal esteem factors such as self-respect, autonomy, and
achievement and external esteem factors such as status, recognition, and attention.
- Is the manager respect ans status the employees?
- E.g:
- The manager talk politely with the employees
- The manager won’t annoy their employees at midnight
- It’s not only respect who the employee are but also respect their own life. It’s about everything
around that employee
- Paying attention to the employees not only satisfy the esteem but also the social need
- Status not always is promoting.
- E.g: if their is a difficult issue, the manager always pick employee A solve; pick
employee B to serve the client.
- If the manager deal with (high IQ + high conscientious, low agreeableness) employee (e.g
Berlin), the manager should empower and provide the decision making power in order to satisfy
their esteem need.
5. Self-actualization needs: a person’s needs for growth, achieving one’s potential, and self-fulfillment
(hoàn thiện bản thân); the drive to become what one is capable of becoming.
- Satisfied internally
- Core word: “OVERCOME”
- Whenever you have fallen into the hopeless state, you are very likely to get depression
- Of course, when you do anything, you always hope to be success, but whenever you can
overcome the things that previously assume unsuccessful, that’s self-actualization.
- This is something that no manager or anyone else except you can do it.
- The need for achievement is similar to Maslow's need for self-actualization.

2. McGregor’s theory X and theory Y

- Theory X: The assumption that employees dislike work, are lazy, avoid responsibility, and must be
coerced to perform
- Theory Y: The assumption that employees are creative, enjoy work, seek responsibility, and can
exercise self-direction

3. Herzberg’s two factor theory

- Two-factor theory (motivation– hygiene theory): The motivation theory that intrinsic (nội tại) factors
are related to job satisfaction and motivation, whereas extrinsic factors are associated with job
dissatisfaction
- Hygiene factors: Factors that eliminate job dissatisfaction, but don’t motivate
- Motivators: Factors that increase job satisfaction and motivation

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4. Three- needs theory
- Three-needs theory: The motivation theory that says three acquired (not innate) needs: achievement,
power, and affiliation are major motives in work
- Need for achievement (nAch): The drive to succeed and excel in relation to a set of standards.
- Need for power (nPow): The need to make others behave in a way that they would not have
behaved otherwise
- Need for affiliation (nAff): the desire for friendly and close interpersonal relationships
- According to the three-needs theory, the best managers tend to be low in the need for affiliation.

III. CONTEMPORARY THEORIES OF MOTIVATION

1. Goal-setting theory
- Goal-setting theory: the proposition (dự luật) that specific goals increase performance and that difficult
goals, when accepted, result in higher performance than do easy goals
- The goal-setting theory states that employee participation in goal-setting is not always necessary for
ensuring performance.
- Three other contingencies besides feedback influence the goal-performance relationship:
- Goal commitment: Commitment is most likely when goals are made public, when the
individual has an internal locus of control, and when the goals are selfset (tự thiết lập) rather than
assigned.
- Self-efficacy: an individual’s belief that he or she is capable of performing a task
- National culture: It assumes that subordinates will be reasonably independent (not a high score
on power distance), that people will seek challenging goals (low in uncertainty avoidance), and
that performance is considered important by both managers and subordinates (high in
assertiveness).
- Research indicates that the desire to be treated with respect is important to almost all workers,
regardless of national culture.

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2. Reinforcement theory
- Reinforcement theory: the theory that behavior is a function of its consequences
- Reinforcers: Consequences immediately following a behavior, which increase the probability that the
behavior will be repeated.
- Eliminating any reinforcement that's maintaining an undesirable behavior is called extinction.
- Managers using reinforcement theory to motivate employees should ignore, not punish, undesirable
behavior.

3. Designing motivating jobs

- Because managers want to motivate individuals on the job, we need to look at ways to design motivating
jobs.
- Job design: The way tasks are combined to form complete jobs
- Job enlargement
- Job scope: The number of different tasks required in a job and the frequency with which those
tasks are repeated.
- Job enlargement: the horizontal expansion of a job by increasing job scope
- Job enrichment
- Job enrichment: The vertical expansion of a job by adding planning and evaluating
responsibilities
- Job enrichment increases job depth, which is the degree of control employees have over their
work.
- Job characteristics model
- Job characteristics model (JCM): A framework for analyzing and designing jobs that identifies
five primary core job dimensions, their interrelationships, and their impact on outcomes.
- Five core job dimensions:
- E.g: Sarah is using the JCM to redesign jobs for her small team of writers. After carefully
analyzing their jobs, she determines that while their jobs are high in skill variety, task
identity, task significance, and autonomy, they receive little feedback about their work.
allowing the writers to directly conduct business with their clients will enable Sarah to
improve this aspect of their jobs.
1. Skill variety: the degree to which a job requires a variety of activities so that an
employee can use a number of different skills and talents.
- Same as specialization
- To do this job, the employees need various skills or only a few?
- E.g:
- Photocopy require low skill
- HR require lots of skill in recruit, select, training, etc.
- Sometime, high skill variety is not good. If manager provide a high skill job to a
fresh graduates, they are demotivate them!
2. Task identity: the degree to which a job requires completion of a whole and
identifiable piece of work.

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 - Very close to skill variety and specialization
- The task/job that manager allocate to the employees may have lots of mini task or
only a few?
- The quantity of task you need to complete
- Normally, task variety large, skill variety also large
3. Task significance: the degree to which a job has a substantial impact (tác động đáng
kể) on the lives or work of other people.
- Is it an important job of the company?
- Sometime, it’s a lowkey job but it’s extremely important
- E.g: company only recruit an secretary to open and lock the door everyday
4. Autonomy: the degree to which a job provides substantial freedom, independence, and
discretion (toàn quyền) to the individual in scheduling the work and determining the
procedures to be used in carrying it out. Autonomy is job characteristic leads to an
employee experiencing responsibility for outcomes of his or her work
- Related to centralization and formalization
- Do you empower your employees?
5. Feedback: the degree to which doing work activities required by a job results in an
individual obtaining direct and clear information about the effectiveness of his or her
performance.
- Equivalent (tương đương): fairness
- Can I see my performance?
- Conscientiousness high really need feedback: if they are performing without
seeing their affect on it, they don’t know whether their performance well are not,
they are likely to demotivate.

Core job Critical psychological states Personal and work outcomes

dimensions

Skill variety Experienced meaningfulness of the

Task identity work High internal work motivation
Task significance

Autonomy Experienced responsibility for High-quality work performance

outcomes of the work High satisfaction with the work

Feedback Knowledge of the actual results of the Low absenteeism and turnover
work activities

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 - The other suggestions involve more than vertical and horizontal expansion of jobs:
- Combine tasks: Put fragmented tasks back together to form a new, larger work module
(job enlargement) to increase skill variety and task identity.
- Create natural work units: Design tasks that form an identifiable and meaningful whole
to increase employee “ownership” of the work.
- Encourage employees to view their work as meaningful and important rather than
as irrelevant and boring.
- Establish client (external or internal) relationships: Whenever possible, establish
direct relationships between workers and their clients to increase skill variety, autonomy,
and feedback.
- Expand jobs vertically: Vertical expansion gives employees responsibilities and controls
that were formerly reserved for managers, which can increase employee autonomy.
- Open feedback channels: Direct feedback lets employees know how well they’re
performing their jobs and whether their performance is improving or not.
- Redesigning job design approaches
- Two emerging viewpoints on job design are
- Relational perspective of work design: An approach to job design that focuses on how
people’s tasks and jobs are increasingly based on social relationships
- Proactive perspective of work design: An approach to job design in which employees
take the initiative to change how their work is performed
- One stream of research that’s relevant to proactive work design is high involvement work
practices, which are designed to elicit greater input or involvement from workers.

4. Equity theory
- Equity theory: The theory that an employee compares his or her job’s input outcomes ratio with that of
relevant others and then corrects any inequity
- It focuses on:

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 - Referents: the persons, systems, or selves against which individuals compare themselves to
assess equity
- The “persons” category includes other individuals with similar jobs in the same
organization but also includes friends, neighbors, or professional associates.
- The “system” category includes organizational pay policies, procedures, and allocation.
- The “self” category refers to inputs outcomes ratios that are unique the individual

- Distributive justice: perceived fairness of the amount and allocation of rewards among
individuals
- Procedural justice: perceived fairness of the process used to determine the distribution (phân
bổ) of rewards
- E.g: The company announced it would be laying off several workers because of the loss
of several large orders. Employees wondered how the workers to be laid off would be
selected.

5. Expectancy theory
- Expectancy theory: The theory that an individual tends tact (khéo léo) in a certain way based on the
expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to
the individual
- It includes three variables or relationships:
- 1. Expectancy or effort-performance linkage is the probability perceived by the individual that
exerting (khẳng định) a given amount of effort will lead to a certain level of performance.
- 2. Instrumentality or performance-reward linkage is the degree to which the individual
believes that performing at a particular level is instrumental in attaining the desired outcome.
- 3. Valence or attractiveness of reward is the importance an individual places on the potential
outcome or reward that can be achieved on the job. Valence considers both the goals and needs
of the individual

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6. Integrating contemporary theories of motivation

IV. CURRENT ISSUES IN MOTIVATION

1. Managing cross-cultural motivational challenges
- In today’s global business environment, managers can’t assume motivational programs that work in one
location will work in others.
- Most current motivation theories were developed in the United States by Americans and about
Americans.

2. Motivating unique groups of workers

- Employees come into organizations with different needs, personalities, skills, abilities, interests, and
attitudes.
- They have different expectations of their employers and different views of what they think their
employer has a right to expect of them.
- And they vary widely in what they want from their jobs.
- Diverse employees
- Many organizations have developed flexible work arrangements, such as compressed
workweeks, flextime, and job sharing that recognize different needs, and also telecommuting.
- Professionals
- Job challenge

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 - Finding solutions to problems
- Support
- Perception that their work is important
- Contingent workers
- Opportunity to become a permanent employee
- Opportunity for training
- Equity in compensation and benefits
- Low-skilled minimum wage employees
- Employee recognition programs
- Provision of sincere praise (lời khen ngợi chân thành)

3. Designing appropriate rewards programs

- Openbook (open-book) management: A motivational approach in which an organization’s financial
statements (the “books”) are shared with all employees
- Employee recognition programs: Personal attention and expressing interest, approval, and
appreciation for a job well done
- Pay for performance programs: Variable compensation plans that pay employees on the basis of some
performance measure

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 CHAPTER 18: CONTROLLING ACTIVITIES AND OPERATIONS

I. WHAT IS CONTROLLING AND WHY IS IT IMPORTANT?

- Control is the management function that involves monitoring activities to ensure that they're being
accomplished as planned and correcting any significant deviations.
- Controlling management function that involves monitoring, comparing, and correcting work
performance.
- The value of the control function can be seen in three specific areas: planning, empowering employees,
and protecting the workplace.
- Controlling provides a critical link back to planning.

- Controlling is important because:

- An effective control system can provide information and feedback on employee performance and
minimize the chance of potential problems.
- Manager use controlling to protect the organization and its assets.
- An effective control system is the only way managers know whether organizational goals are
being met.

II. THE CONTROL PROCESSES

- Control process: A three step process of measuring actual performance, comparing actual performance
against a standard, and taking managerial action to correct deviations or inadequate standards

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Step 1: measuring actual performance
- Determine what actual performance is, a manager must first get information about it.
- How we measure
Benefits Drawbacks

Get firsthand knowledge information Subject to personal biases

Personal observations isn't filtered Time-consuming
Intensive coverage of work activities Obtrusive (không phô trương)
(bao quát chuyên sâu)

Statistical reports Easy to visualize Provide limited information

Effective for showing relationships Ignore subjective factors

Oral reports Fast way to get information Information is filtered

Allow for verbal and nonverbal feedback Information can't be documented

Comprehensive Take more time to prepare

Written reports Formal
Easy to file and retrieve (lấy lại)

- What we measure
- What is measured is probably more critical to the control process than how it’s measured.
- Some control criteria can be used for any management situation
- Eg: All managers deal with people
- Criteria: employee satisfaction, turnover, absenteeism rates, keeping costs within budget.
- Other control criteria should recognize the different activities that managers supervise.
- Eg:

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 - A manager at a pizza delivery location might use measures such as number of pizzas
delivered per day, average delivery time for orders versus online orders, or number of
coupons redeemed.
- A manager in a governmental agency might use applications typed per day, client
requests completed per hour, or average time to process paperwork.
- Managers should use subjective measures when necessary or when work activities cannot be
expressed in quantifiable terms.
- E.g: level of satisfaction of patient care in a hospital.

Step 2: Comparing actual performance against the standard

- Although some variation in performance can be expected in all activities, it’s critical to determine an
acceptable range of variation.
- Range of variation: The acceptable parameters of variance between actual performance and the
standard.
- Managers could choose to do nothing when the difference between actual performance and standard
performance is low and acceptable.

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 - Eg:

Step 3: Taking managerial action

- Correct actual performance: depending on what the problem is, a manager could take different
corrective actions:
- Immediate corrective action: Corrective action that corrects problems at once to get
performance back on track
- Focus on the cause
- E.g: is there any spare light? Bring it up to replace
- Take immediate action rather basic corrective when the plan is happening
- Basic corrective action: corrective action that looks at how and why performance deviated (lệch
lạc) before correcting the source of deviation
- Focus on the problem
- E.g: in order to avoid out of energy to run the light, bring the generator next time
- Revise the standard
- If performance consistently exceeds the goal, a manager should look at whether the goal is too
easy and needs to be raised.
- If not, managers must be cautious about revising a standard downward.

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 - Managerial Decisions in Controlling

III. CONTROLLING FOR ORGANIZATIONAL AND EMPLOYEE PERFORMANCE

1. What is organizational performance?
- Performance: The end result of an activity
- The word you will keep hearing over and over the time
- 2 main reason to get a great performance:
- Productivity/efficiency: the lowest input (min) but highest output (max)
- The manager don’t need to guide employees, they only need reward to push them
up their performance.
- Effectiveness: how many goal do you accomplish?
- Employees need to take care about things involve in the contract
- Note whatever their direct manager talk about
- If the manager require employee to work on the office out of working time, they
should also go to work :(
- Organizational performance: The accumulated results of all the organization’s work activities

2. Measures of organizational performance

- Organizational productivity
- Productivity is the amount of goods or services produced divided by the inputs needed to
generate that output.
- Output is measured by the sales revenue an organization receives when goods are sold (selling
price × number sold).
- Input is measured by the costs of acquiring and transforming resources into outputs.
- It’s management’s job to increase this ratio.

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 - Organizational effectiveness: is a measure of how appropriate organizational goals are and how well
those goals are met.
- Industry and company rankings
- Rankings are determined by specific performance measures, which are different for each list

3. Controlling for employee performance

- Disciplinary actions Actions taken by a manager to enforce (thi hành) the organization’s work
standards and regulations
- Delivering effective performance feedback
- Managers need to provide their employees with feedback so that the employees know where they
stand in terms of their work.
- When giving performance feedback, both parties need to feel heard, understood, and respected
- Using disciplinary actions
- Progressive disciplinary action: An approach to ensure that the minimum penalty appropriate
to the offense is imposed

IV. TOOLS FOR MEASURING ORGANIZATIONAL PERFORMANCE

Problem type Example of each

Attendance Absenteeism, tardiness, abuse of sick leave

On the job behaviors Insubordination, failure to use safety devices, alcohol or drug abuse

Dishonesty Theft, lying to supervisors, falsifying information on employment application or on

other organizational forms

Outside activities Criminal activities, unauthorized strike activities. working for a competing
organization (if no-compete clause is part of employment)

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1. Feedforward/concurrent/feedback controls

- Feedforward control: Control that takes managerial action before a problems occur. That way, problem
can be prevented rather than having to correct them after any damage (poor quality products, lost
customers, lost revenue, etc.) has already been done.
- Feedforward is the most desirable type of control to prevent anticipated problems.
- Implement before the plan happened
- Predict the problem, don’t wait until it’s occur and think about the solution (don’t just raise)
- Rehearse - scout:
- E.g:
- Music event → rehearse is possible (check for the light, sound setting, etc.)
- Trip → scout is possible (1 prioritize experience before made it become true)
- Expert advise
- Communicate: immediately right before the plan (last minutes)
- E.g: ask again the participants which room they are in, how long does it take them to
check in? Who gets motion sickness (say xe)
⇒ CAREFUL PLANNING MAKE CONTROL MUCH EASIER!
- Concurrent control: Control that takes place while a work activity is in progress.
- 2 forms of concurrent control:
- Direct supervision
- Management by walking around is when a manager is in the work area interacting
directly with employees.
- When the plan happen, manager should implement it periodically
- Manager as an employees, think as them. Instead of staying at manager position
to observe, manager put himself at the employees position, what would they do?
- E.g: employees are swimming in the sea, the manager should at least dip the feet
into the water.
- In this stage, the manager should take immediate corrective action
- All managers can benefit from using concurrent control, but especially first-line managers,
because they can correct problems before they become too costly
- Feedback control: Control that takes place after a work activity is done

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 - Feedback controls have two advantages:
- Feedback gives managers meaningful information on how effective their planning efforts
were.
- Feedback that shows little variance (khác biệt) between standard and actual performance
indicates that the planning was generally on target
- Feedback can enhance motivation. People want to know how well they’re doing and feedback
provides that information.
- Step by step action:
- 1. Report: only report things that you have experience but did not find out the solution
- Personal evaluation
- Company: participant evaluate
- External - observer: ask the outsider to evaluate
- 2. Measure performance: measure through qualitative and quantitative
- Quantitative: money, time, etc.
- Qualitative: the satisfaction
- Give the feedback paper for the participants
- Ask specific questions, not the general
- E.g: from 1-5 how much do you like our service =)))? (silly one)
- E.g: what do you think about the room? Reception? Point out 3
reasons you like/dislike the service.
- 3. Compare vs standard (set in the planning period)
- How many ways to set standard?
- Company strategy, internal - external analysis
- Previous plan: but if your previous plan is super fail, this present plan you
only need to improve little bit compare to previous plan
- Benchmark (combine competitor + expert advise): compare yourself again
the best in that industry, compare to the international, compare to the
scientific
- International industrial standard: ISO
- 4. Take basic corrective action, because it can solve the original problem

2. Financial controls
- Budgets are planning and control tools.
- When a budget is formulated, it’s a planning tool because it indicates which work activities are
important and what and how much resources should be allocated to those activities.
- But budgets are also used for controlling, because they provide managers with quantitative standards
against which to measure and compare resource consumption.
- Always think about finance, it’s super important
- We have to keep the number of debt for any event
- In order to compute the organization performance, look at their financial control

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 - To evaluate the good manager, it’s could be evaluated through their understand and how that manager
expressed the financial statement. In addition, how that manager predicted the growth in the future.
Objective Ratio Calculation Meaning

Liquidity Current ratio 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 Tests the organization’s ability to meet
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
short-term debt obligations

Acid test 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 − 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠 Tests liquidity more accurately when
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
inventories turn over slowly or are difficult
to sell

Leverage Debt to assets 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 The higher the ratio, the more leveraged the
𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
organization

Times interest 𝑝𝑟𝑜𝑓𝑖𝑡𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑡𝑎𝑥𝑒𝑠 Measures how many times the organization
𝑡𝑜𝑡𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑐ℎ𝑎𝑟𝑔𝑒
earned is able to meet its interest expenses

Inventory turnover 𝑠𝑎𝑙𝑒𝑠 The higher the ratio, the more efficiently
𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
inventory assets are used

Total assets 𝑠𝑎𝑙𝑒𝑠 The fewer assets used to achieve a given

Activity turnover 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
level of sales, the more efficiently
management uses the organization’s total
assets

Profit margin on 𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥𝑒𝑠 Identifies the profits that are generated
𝑡𝑜𝑡𝑎𝑙 𝑠𝑎𝑙𝑒𝑠
sale
Profitability
Return on 𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥𝑒𝑠 Measures the efficiency of assets to generate
𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
investment profits
Notes:
- Liquidity ratios measure an organization's ability to meet its current debt obligations.
- Return on investment ratios measures how efficiently and effectively the firm is using its assets to
generate revenue.
- Leverage ratios examine the organization's use of debt to finance its assets and its ability to meet the
interest payments on the debt

3. Information controls
- How is information used in controlling?
- When data is analyzed and processed, it becomes information.
- Information is useful because:
- Be able to compare actual performance with the standards.
- Help them determine if deviations (sai lệch)are acceptable.
- Help them develop appropriate courses of action.

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 - A management information system (MIS) is a system used to provide managers with needed
information on a regular basis.
- A software that automatically collect present data (company very likely to have this)
- E.g: e-learning, canvas
- E.g: Every March, Bill, who owns and operates a small retail shop, takes a large box of
receipts and invoices to his accountant so the accountant can file Bill's taxes in April.
Only then does Bill know if his business has been profitable.
- This system can be manual or computer based.
- The term system in MIS implies order, arrangement, and purpose.
- Controlling information
- Information controls should be monitored regularly to ensure that all possible precautions are in
place to protect important information.

4. Balanced scorecard
- Balanced scorecard A performance measurement tool that looks at more than just the financial
perspective
- A balanced scorecard typically looks at four areas that contribute to a company’s performance:
financial, customer, internal processes, and people/innovation/growth assets.

5. Benchmarking of best practices

- Benchmarking The search for the best practices among competitors or noncompetitors that lead to their
superior performance
- The benchmarking approach can evaluate organizational performance from more than just the
financial perspective.
- Benchmark The standard of excellence against which to measure and compare
- Suggestions for Internal Benchmarking
- Connect best practices to strategies and goals. The organization's strategies and goals should
dictate what types of best practices might be most valuable to others in the organization.
- Identify best practices throughout the organization. Organizations must have a way to find out
what practices have been successful in different work areas and units.
- Develop best practices reward and recognition systems. Individuals must be given an incentive to
share their knowledge. The reward system should be built into the organization's culture.
- Communicate best practices throughout the organization. Once best practices have been
identified, that information needs to be shared with others in the organization.
- Create a best practices knowledge-sharing system. There needs to be a formal mechanism for
organizational members to continue sharing their ideas and best practices.
- Nurture best practices on an ongoing basis. Create an organizational culture that reinforces a "we
can learn from everyone attitude and emphasizes sharing information.

V. CONTEMPORARY ISSUES IN CONTROL

1. Adjusting controls for cross-cultural differences and global turmoil (hỗn loạn)

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 -In a global corporation, managers of foreign operations tend to be less controlled by the home office, if
for no other reason than the distance keeping managers from being able to observe work directly
- Managers in countries where technology is more advanced often use indirect control devices such as
computer generated reports and analyses in addition to standardized rules and direct supervision to
ensure that work activities are going as planned.
- In less technologically advanced countries, managers tend to use more direct supervision and highly
centralized decision making for control.
- Managers in foreign countries also need to be aware of constraints on investigating complaints and
corrective actions they can take.
- Some countries’ laws prohibit closing facilities, laying off employees, taking money out of the country,
or bringing in a new management team from outside the country.
- Another challenge for global managers in collecting data for measurement and comparison is
comparability. (so sánh)
- Global organizations need to have controls in place for protecting their workers and other assets during
times of global turmoil and disasters.
2. Workplace privacy
- Why do we need workplace privacy?
- A big reason is that employees are hired to work
- They don’t want to risk being sued for creating a hostile workplace environment because of
offensive messages or an inappropriate image displayed on a coworker’s computer screen.
Họ không muốn có nguy cơ bị kiện vì đã tạo ra một môi trường làm việc thù địch vì những thông
điệp xúc phạm hoặc hình ảnh không phù hợp hiển thị trên màn hình máy tính của đồng nghiệp
- Managers want to ensure that company secrets aren’t being leaked.

3. Employee theft: Any unauthorized taking of company property by employees for their personal use
- Why do employees steal?
- Experts in various fields: industrial security, criminology, clinical psychology; have different
perspectives.
- The industrial security people propose that people steal because the opportunity presents itself
through lax (lỏng lẻo) controls and favorable circumstances.(hoàn cảnh thuận lợi)
- Criminologists say it’s because people have financial based pressures (such as personal financial
problems) or vice based pressures (such as gambling debts).
- Clinical psychologists suggest that people steal because they can rationalize whatever they’re
doing as being correct and appropriate behavior (“everyone does it,” “they had it coming,” “this
company makes enough money and they’ll never miss anything this small,” “I deserve this for all
that I put up with,” and so forth).
- Note:
- Corporate espionage involves the theft of proprietary materials or trade secrets by any means.
- Publicize progress in reducing theft is likely to be the most effective concurrent control.

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 Feedforward Concurrent Feedback

Use careful prehiring screening. Treat employees with Make sure employees know when
respect and dignity. (phẩm theft or fraud has occurred - not
giá) naming names but letting people
know this is not acceptable.

Establish specific policies defining theft Use the services of professional

and fraud and discipline procedures. investigators.
Openly communicate the
costs of stealing

Involve employees in writing policies. Redesign control measures.

Educate and train employees about the Use video surveillance Evaluate your organization's
policies. equipment if conditions culture and the relationships of
warrant. managers and employees.

Have a professional review of your Install "lock-out" options on computers, telephones, and e-mail.
internal security controls Use corporate hotlines for reporting incidences. Set a good
example.

4. Workplace violence: dangerously dysfunctional work environments characterized by the following as

primary contributors to the problem:
- Employee work driven by TNC (time, numbers, and crises).
- Rapid and unpredictable change where instability and uncertainty plague employees.
- Destructive communication style where managers communicate in an excessively aggressive,
condescending, explosive, or passive aggressive style; excessive workplace teasing or scapegoating.
- Authoritarian leadership with a rigid, militaristic mindset of managers versus employees; employees
aren’t allowed to challenge ideas, participate in decision making, or engage in teambuilding efforts.
- Defensive attitude: where little or no performance feedback is given; only numbers count; and yelling,
intimidation, or avoidance is the preferred way of handling conflict.
- Double standards in terms of policies, procedures, and training opportunities for managers and
employees
- Unresolved grievances (bất bình) because the organization provides no mechanisms or only adversarial
ones for resolving them; dysfunctional individuals may be protected or ignored because of longstanding
rules, union contract provisions, or reluctance to take care of problems.
- Emotionally troubled employees and no attempt by managers to get help for these people.
- Repetitive, boring work with no chance for doing something else or for new people coming in.
- Faulty or unsafe equipment or deficient training, which keeps employees from being able to work
efficiently or effectively.
- Hazardous work environment in terms of temperature, air quality, repetitive motions, overcrowded
spaces, noise levels, excessive overtime, and so forth. To minimize costs, no additional employees are

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 hired when workload becomes excessive, leading to potentially dangerous work expectations and
conditions.
- Culture of violence that has a history of individual violence or abuse; violent or explosive role models;
or tolerance of on the job alcohol or drug abuse.

Feedforward Concurrent Feedback

Use MBWA (managing by Ensure management commitment Communicate openly about

walking around) to identify to functional, not dysfunctional, incidences and what's being done.
potential prob lems; observe how work environments.
employees treat and interact with
each other.

Provide employee assistance Allow employees or work groups Investigate incidents and take
programs (EAPS) to help to "grieve" during periods of major appropriate action.
employees with behavioral organizational change.
problems.

Enforce organizational policy that Be a good role model in how you Review company policies and
any workplace rage, aggression, or treat others. change, if necessary.
violence will not be tolerated

Use careful prehiring screening. Use corporate hotlines or some

other mechanism for reporting and
investigating incidents.

Never ignore threats. Use quick and decisive

intervention.

Train employees about how to Get expert professional assistance

avoid danger if situation arises. if violence erupts.

Clearly communicate policies to Provide necessary equipment or

employees. procedures for dealing with violent
situations (cell phones, alarm
system, code names or phrases,
and so forth).

5. Controlling customer interactions

- A service profit chain is the service sequence from employees to customers to profit.
- Managers who want to control customer interactions should work to create long term and mutually
beneficial relationships among the company, employees, and customers

6. Corporate governance

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 - Corporate governance: the system used to govern a corporation so that the interests of corporate
owners are protected
- The role of boards of directors
- The original purpose of a board of directors was to have a group, independent from management,
looking out for the interests of shareholders who were not involved in the day to day
management of the organization
- Financial reporting and the audit committee

HP 169