MO Assignment 1
MO Assignment 1
INTRODUCTION .......................................................................................................................... 2
Background ............................................................................................................................... 3
Comparing the different roles and characteristics of a manager and a leader ............... 9
The functions of manager and the roles of leader apply in different situational contexts
................................................................................................................................................... 17
Situational leadership............................................................................................................. 20
Systems Leadership............................................................................................................... 22
CONCLUSION ............................................................................................................................ 23
As an Assistant Human Resource Manager for Vingroup PLC and under the request of
the CEO, the report is required to investigate the impact of leaders and managers on the
operations of this ever-growing company.
Property
Consumer Retail
Vinmart and Vinmart+: VinMart supermarket system and VinMart+ minimarts and
convenience stores operate with the goal of becoming reliable shopping
destinations in terms of origin, product quality, as well as outstanding utility
services.
Vinpro: It is retail chain in the field of technology and electronics, providing
products such as smartphones, laptops, tablets, electronics, refrigeration and
household appliances.
Industrials
Healthcare
Education
Agriculture
VinEco: VinEco was established in 2015 with the aim of participating in providing
clean and safe agricultural products for people.
Technology
BOARD OF DIRECTORS
COMMUNICATION
DIVISION
HOSPITALITY AND
ENTERTAINMENT
LEGAL & COMPLIANCE
DIVISION
CONSUMER RETAIL
EXTERNAL FINANCE
DIVISION
INTERNAL AUDIT
HEALTHCARE DIVISION
INFORMATION
TECHNOLOGY DIVISION
EDUCATION
HUMAN RESOURCES
DIVISION
AGRICULTURE
TRAINING DIVISION
MARKETING DIVISION
- General Meeting of Shareholders (GMS): It is the highest decision-making body of
the company. It has the right to decide all activities of the company.
- Board of Directors is elected by the General Meeting of Shareholders. It is the
management body of the company which has full authority to decide and exercise
the rights and obligations of the company without falling under the authority of the
General Meeting of Shareholders.
- Supervisory Board is elected by the General Meeting of Shareholders with each
member elected for a 5-year term.
(VinGroup C. , 2019)
Manager and Leader
Manager
Manager perform the task of setting of the objectives as per the vision and mission of the
organization.
Leader
The leader is the one who sets the direction, has the ability to create a specific
inspirational plan and create something new (Truong, 2017). The leader plays an
important role in motivating the employees through their leadership and communication
skills and inherent in them the vision of the organization. Leader is someone who is
influential, responsible and an example for subordinates to achieve a specified goal
(Wong, 2007).
The task of the leaders is to convey the vision to employees and inspire them in such a
way that the company’s vision become their vision and they follow the steps provided by
leader.
Comparing the different roles and characteristics of a manager and
a leader
Normally, a manager must have leadership qualities and similarly, a leader needs to have
managerial qualities. (Vetggin, 2012)
Manager Leader
Roles - Planning and budgeting: - Creating a sense of direction:
target-setting, establish usually borne out of
procedures for reaching the dissatisfaction with the status
targets and allocating the quo. Out of this challenge a
resources necessary to meet vision for something different
the plans. is created.
- Organizing and staffing: - Communicating the vision:
designing the organization which must meet the realized
structure, hiring the right or unconscious needs of other
people and establishing people and the leader must
incentives. work to give it credibility.
- Controlling and problem - Energizing, inspiring and
solving: monitoring results motivating: in order to
against the plan, identifying stimulate others to translate
problems, producing the vision into achievement.
solutions and implementing
them.
Traits - Scheduling work - Providing feedback on
- Delegating tasks performance
- Using analytical data to - Motivating staff
support recommendations - Act as interface between team
- Ensuring predictability and outside
- Coordinate effort
- Coordinate resources - Explaining goals, plan and
- Giving orders and roles
instructions - Inspiring people
- Guide progress - Appeal to people’s emotions
- Evaluating progress - Sharing a vision
- Checking task completion - Providing focus
- Following systems and - Monitor feelings and morale
procedures - Creating a “culture”
- Monitor budgets, tasks - Creating a positive team
- Using analytical data to feeling
forecast trends - Ensuring effective induction
- Monitoring progress - Providing development
- Appeal to rational thinking opportunities
- Planning and prioritizing - Unleashing potential
steps to task achievement - Looking “over the horizon”
- Take risks
- Being a good role model
(Jimmy, 2018)
The difference between manager and leader
Normally, the roles of manager and leader are considered as interchangeable, but their
difference is the difference between functions performed by manager and leader to make
people work for the organization. (Sowers, 2018)
Manager Leader
Managers have people who work for them. Leaders have people follow them.
Manager strives for doing things right. Leader strives for doing the right things.
Manager set the objectives of the Leader persuade the objectives developed
company. by the managers.
Manager communicate the policies to the Leader communicate and influence the
leaders. employees to work as per the policies.
Manager direct the work to the employees. Leader motivate the employees to work.
Manager manages the entire organization. Leader influences subordinate to achieve
a specified goal.
Manager give direction to the groups. Leader provide directions in team.
Manager aims at accomplishing the end Leader aims at the growth and
results. development of teammates.
Manager create the ideas for the Leader play the role of implementing those
betterment of the organization. ideas into reality.
Manager focus on things. Leader focus on people.
Manager has the intelligence. Leader possesses the quality of
foresightedness.
Manager focuses on the bottom line of the Leader focuses on the horizon of the task.
task.
Manager plans details. Leader sets directions.
(Surbhi, 2014)
Management theories
Management by objectives theory
Classical management theory is based on the belief that workers only have physical and
economic needs. It does not take into account social needs or job satisfaction, but instead
advocates a specialization of labor, centralized leadership and decision-making, and
profit maximization (Bhasin, 2015). This theory is best suited to those organization where
the organization is only concerned about the productivity and not any other needs of the
worker.
Behavioural theory
The behavioural theory of management is also known as the human relations movement
as it helps in addressing the human dimension of work and this theory focuses on the
belief that better understanding of human behaviours at work such as motivation, conflicts
and expectations improves the productivity of the work of the employees (Suran, 2012).
This theory of management is best suited in the organization where the main focus of the
organization is to achieve the goals of the company by empowering and motivating the
employees.
Contingency theory of leadership
The contingency theory of leadership is based on the situational approach and it has got
no particular model. The approach is applied accordingly to the situation that the company
is facing at any particular time and can be applied to a variety of situations such as to
increase the productivity, or to improve the co-ordination of the employees of different
group, or to make the employees more responsible in their approach or to facilitate
employee retention in the organization. (Kendra, 2017)
Chaos theory
Chaos theory states that every organization faces some chaotic or disturbing activities
during operating its business which can be change in public demand, slowdown of the
economy and so on (Hawks, 2015). This theory is best applied on those organizations
where the management wants to keep their employees always ready to face any kind of
critical situations in the market without getting de-motivated (Vliet, 2010). It states that the
organization must be capable enough to adapt to the changes as quickly as possible to
prevent losses arising from these situations which are termed as “chaos”.
Leadership theories
Trait Theory of Leadership
The trait theory of leadership is based on the traits and qualities of the leaders which lead
to their effectiveness but it fails to establish the trait that should be common to all leaders.
This theory is best suited for big organizations where there is a huge demand for their
products and therefore the productivity of the workforce has to be controlled strictly.
(Cherry, verywellmind, 2018)
(Roach, 2017)
Transformational Leadership
Transformational leadership is a style of leadership where the leader, along with his/her
team, is able to identify the challenges ahead, resources available and build a long term
vision for the team and is constantly engaging and involving the employees to perform to
the best of their abilities and grow professionally and personally in the process (Victoria,
2017). Transformational leadership inspires people to achieve unexpected or remarkable
results. It gives workers autonomy over specific jobs, as well as the authority to make
decisions once they have been trained (Thomas, 2018). This system of leadership is best
suitable in organization that aims for succession planning in the organization so that there
is no shortage of leadership qualities and abilities in the organization in the future.
Transactional Leadership
Action centred leadership focuses on the theory that the effectiveness of the leader is
dependent upon meeting a proper of the three main areas which are team, task and
individuals (Connor, 2015). This model is best suitable for organization where the
productivity and the cooperation between the team are less and the management wants
to develop a coordination between all the groups of the organization in order to foster
productivity. (Aulia, 2011)
The contemporary theory of management is applied by Vingroup, to deal with the current
situation of the increased cost of the purchase and producing new produces. The
managers can plan the strategies such as selection of suppliers who can provide the raw
material at lower cost. The leaders in Vingroup use their trait to motivate the employees
to adopt advance technologies in order to lower the cost of manufacturing and eliminate
the resistance to change among the employees through creating an environment of trust
with the effective communication skills. (Marie, 2013)
Classical management theory is applied in Vingroup, where the managers make the
policies to enhance the productivity. The managers have developed some strategies for
some new field expansion campaign of Vingroup (Muchhal, 2014). Therefore, the efforts
of the manager and staff are continuous to improve the production activities.
Behavioral theory of management is applied in Vingroup and the managers follow the
policies which take into consideration the skills and abilities of the employees and the
leaders use the transformational style of leadership where the leaders communicate with
the employees and the policies are defined to the employees in an effective way. (Quain,
2018)
Applying chaos theory and management by objectives to Vingroup
Due to the globalization and brand awareness in consumers’ minds, companies in current
tough competitive environment need to constantly change and implement innovative
ideas to survive longer. It is the duty of the managers to produce results in the time of
rapid social and technological changes. By performing these tasks, there are several
methods which are designed for the continuously changing business environment. Two
methods are discussed in this report, one is chaos theory and other is management by
objectives.
Chaos theory
The rapidly growing globalization leads to a global economic change as well as a change
in customers in the market, Vingroup must apply chaos theory to adapt to those changes.
Vingroup adapts to this situation by changing their goals, objectives and strategies or by
investing more and deploying more employees according to the nature of the chaos that
occurs in the market. By applying this theory, Vingroup will benefit by developing an
adaptability skill for their employees who will help them to become more effective to tackle
any situation with ease without panicking (Halpern, 2018). Vingroup adopt chaos theory
will help the employees will be self-trained and self- motivated to handle any kind of
situations they are in which helps to carry out the task effectively and achieve sustainable
growth. Normally, it is seen that when a chaos situation arises the employees tend to get
wayward in their nature and they cannot decide what to do next and therefore the quality
of the work gets compromised (Levy, 2007). Therefore, it acts as a barrier in the growth
of the organization.
Management by objectives
The objective of Vingroup is to increase the existing shares of the product. Hence, it
should communicate the same to the employees and manage the objective by arranging
resources so as to improve the market share of the product (Huong, 2018). By applying
this model, Vingroup will be able to carry out their tasks and objectives in a more
systematic process as the employees are fully aware of their own roles and
responsibilities while achieving an objective which helps them to stay focus throughout
the whole process in order to achieve the objectives which in turn promotes growth in the
organization.
Due to modernization leads to a constant change in daily work, survival of the company
by using conventional management approach would be a waste. Even though, Vingroup
has been nurturing positive activities within the place of work, but somehow there are
barriers that create difficulties and adversely affect to employees. Managers in Vingroup
or other organizations should implement MBO efficiently which can be helpful for the
employees to participate in setting of objectives so that everyone will be encouraged
towards the achievement of company’s goals. (Huong, 2018)
Situational leadership
In the 1970s, Hersey and Blanchard put forward a model of situational leadership and
management which described the roles of leaders and managers on different stages of
task performance, it known as situational leadership (Hoang, 2017). Situational
leadership refers to the type of leadership where the style of leadership depends upon
the skills and capabilities of the employees fro who the leaders are required to influence
for the completion of the task (Kinsey, 2018). Components of this model hold the concept
that each situation requires a special leadership and management style and the finest
course of action is reliable on the situation at hand. This model is comprised of four styles
in the scale between directive behavior and supportive behavior. These four leadership
and management styles are given below.
One of the core leadership styles is directing. In the directing stage, the leaders take
the decisions by themselves and they do not take advice from other team members
regarding taking a decision (Cherry, verywellmind, 2018). The leader or manager
provides a lot of guidance and direction to followers or employees by telling them what
to do and how to do the task but provide less supporting.
The second leadership style is coaching. In the coaching stage, the leaders take the
decisions by themselves after receiving inputs from the team members and evaluating
their inputs in to his own decision making (Juneja, 2018). The leader or manager
shows intense amount of both direction and support behavior. Leadership and
management tell followers what to do but also encourage them and support them.
In the supporting stage, the leaders let the team members take the decision after
discussing with them and the entire team. In this stage though the leader does not
take the decisions but they remains a part of the decision making process (David,
2018). Leader and manager engage in supporting behavior by forming two way
communications with followers but provide less direction.
- S4: Delegating
In the delegating, the leader do not take part in the decision making part and therefore
the employees are fully responsible in the decision making process. Though the leader
do not take part in the decision making process but the entire responsibility of the
decision taken is on the leader (Juneja, 2018). The leadership and management do
little to support or direct to employees.
The operations management of Vingroup can be affected with this kind of leadership
as the leaders adopt different styles of leadership on different situations. This model
helps Vingroup to get adapted to various situations in the business organization and
improves the decision making system of both the managers and the employees which
helps in the growth of the organization (Hoang, 2017). It also helps in developing co-
ordination and effective communication between the top management and the bottom
management to ensure the sustainable growth of the organization.
Systems Leadership
Systems leadership has been defined as the collaborative leadership of a network of
people in different places and at different levels in the system creating a shared
endeavor and cooperating to make a significant change. (Goss, 2016)
The application of the system leadership approach helps Vingroup improve growth
and development in the organization as it helps in imparting the vision of the leader in
the employees which promotes the creativity and innovation of the employees of the
organization and which turns paves the way for more growth and development in the
organization. It also paves the way for sustainable development in the organization as
due to the far sighted vision of the leaders the organization accordingly plan their
resources and utilize it in a proper manner and reduces the misuse of resources which
leads to sustainable development. (Robert, 2018)
CONCLUSION
Following the above studies, the report is introduced about organizational structure
and management, definition and roles of both managers and leaders, highlighting the
differences between management and leadership. It must also specify the different
roles of management and leadership in application to different organizational
situations, supported by theories and concepts. Additionally, the report is provided
how theories such as ‘chaos theory’ and ‘management by objectives’ apply to the
organization and how these have supported growth and sustainable performance. It
is provided the conclusions on how managers and leaders have made an impact on
the organization and recommendations for future improvements.
References List
Algahtani, A. (2014, 09). jmppnet. Retrieved from jmppnet.com:
http://jmppnet.com/journals/jmpp/Vol_2_No_3_September_2014/4.pdf
Vetggin. (2012, 11 01). Everyday 4 English Vocabulary Words. Retrieved from facebook.com:
https://www.facebook.com/Moingay4tuvungtienganh/posts/ph%C3%A2n-bi%E1%BB%87t-
manager-v%C3%A0-leader-manager-l%C3%A0-ng%C6%B0%E1%BB%9Di-qu%E1%BA%A3n-
l%C3%BD-v%C3%A0-ch%E1%BB%8Bu-tr%C3%A1ch-nhi%E1%BB%87m-v%E1%BB%81-
nh%E1%BB%AFn/440361142667469/