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Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Management and Operations (488)

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Table of Contents
I. Introduction...................................................................................................................................9
II. Management and leadership concepts...........................................................................................9
A. Differences between Management and Leadership...................................................................................9
1. The concept of leadership and management.................................................................................................................9
2. Determine the difference between management and leadership...............................................................................11

B. Link between Management and Leadership.............................................................................................20

III. Management functions and Leadership roles............................................................................23

A. The main managerial functions................................................................................................................23
B. Leadership roles.......................................................................................................................................25
C. Example for real-life famous business person..........................................................................................26

IV. Management approaches and leadership theories....................................................................30

A. Management Approaches........................................................................................................................30
B. leadership theories...................................................................................................................................40

V. Conclusion....................................................................................................................................53
I. Introduction

According to the statistics of the number of infections and deaths from the covid-19 epidemic that are
continuously increasing, the epidemic situation is becoming more and more serious and affecting everyone's
health and life, Besides, it also affects the economy in a very bad way. Which makes it very difficult for the
leaders to maintain or establish a new company at this time. To be able to do that, the leaders need to equip
themselves with business management knowledge and how to organize a company so closely. The following is
a more in-depth section on basic management and leadership knowledge, which will create a good foundation
for people in the future.

II. Management and leadership concepts

A. Differences between Management and Leadership
1. The concept of leadership and management

The terms leadership and management are sometimes used interchangeably. It is critical to recognize that
effective management requires strong leadership. Management is considerably more than managing and
executing the operational activities and processes of planning, regulating, and implementing, as has long been
known. In flatter companies, project-based or matrix workplaces, managers are increasingly required to have
advanced leadership abilities in order to motivate a diverse group of people without the aid of hierarchy, position,
or title. In today's fast-paced, competitive environment, the ability to influence and lead people is critical to
success. Although the exact definitions of the terms'manager' and 'leader' differ, the disagreement is over
semantics. ( Thu,2019)
SOURCE:THU, 2019
Management is incomplete without leadership. Individuals are predisposed to one or the other, but good leaders
cannot function effectively without the ability to manage, and managers cannot produce results without the ability
to lead. Although the concepts, competencies, and dynamics required of each are vastly different, high-performing
individuals and businesses acknowledge their underlying compatibility and interdependence. ( Thu,2019)

Many people have personal experience with tightly managed firms that have vanished due to a lack of leadership
in adapting, changing, or innovating in response to changing conditions. On the other hand, there are several case
studies of high-energy entrepreneurial businesses that have failed. ( Thu,2019)

SOURCE:THU, 2018

2. Determine the difference between management and leadership.

a) Difference between leadership and management styles
Hang (2019) used the term "leadership style" when it meant "charismatic management style." Although the
distinctions between leadership and management styles are hazy, there are some significant variances.
( Thu,2019)

Leadership Styles Management Styles

The terms "management" and "leadership" are There are as many management styles as there
not interchangeable. If you conduct any study in are managers, despite the fact that they are
this area, you'll see that the terms used to define frequently boiled down into a handful of
 leadership and management styles are frequently management styles.
interchanged.
There are as many leadership styles as there are The following management styles are commonly
people, just as there are management styles. discussed:
Your personality type determines your natural  Autocratic
leadership style. Your chosen leadership style will  Democratic
be whatever you determine is required.  Transformational
 Coaching
However, it is advised that you put yourself in a
situation where you can use your natural However, don't fall into the trap of believing that
leadership style; this way, you won't have to "try" you should only utilize one of them or that you
because you'll be doing what comes naturally. should choose one of these. That isn't how
psychology works in humans.
While it's fine to change up your leadership style
now and then, it's not a good idea to do it on a There are 7 billion different management styles,
regular basis. Leadership must be about achieving and you will have your own unique approach. Of
other people's goals. It has to be about assisting course, you may change your management style;
and motivating people to achieve their own but, you have a natural management style that
goals. True, many leaders may offer a purpose, suits you well, and you should work in sync with
but the goal must ultimately belong to the it as far as possible.
individual, not the leader.
Each manager has their own distinct
management style, which is based on their
personality type and expertise. The labels listed
above are valuable for consultants and authors,
although there is some jargon and smoke and
mirrors in this list. Don't be deceived.

There are a variety of viewpoints on the elements that influence management style in the scientific literature:
 SOURCE:THU, 2018

Have you watched the movie about Abraham Lincoln, the 16th President of the United States of America? It was
clear from this film that he was not a terrific manager. What was needed, though, was a great leader, which he
could offer. (Simon,2019)
 SOURCE:SIMON, 2019

His greatest achievement was in making the 13th amendment to the Constitution (the abolition of slavery)
meaningful to those who voted for it. He didn't make it about how important he thought he was. He persuaded
each "yes" vote congressman that it was vital to them personally. (Simon,2019). It is possible to be a bad manager
and a great leader at the same time. If you accept this assumption, management and leadership are clearly two
separate entities that must be addressed as such.
 b) Difference between leadership and management characterisctics
Leadership and management are frequently seen to have overlapping responsibilities. While this is true, the
meanings of these two phrases are distinct and should not be used interchangeably. Both denote a distinct
collection of functions, qualities, and talents with some overlap. (Belbin,2015)

They do, however, differ significantly in some situations. Some managers, for example, do not exercise leadership,
while others lead without holding a management position.

SOURCE:THU, 2018

There are five distinct criteria that distinguish leadership from management.

Leaders Set the Vision, Managers Follow It

Visionaries are leaders. The majority of them have a clear idea of where they want their companies to go in the
future. They are not, however, the only ones who are accountable for bringing that vision to life.
Managers have a critical role in this situation. Managers are accountable for keeping workers aligned with the
fundamental corporate values and goals, while leaders are responsible for transferring the firm's purpose, vision,
and goals to the whole organization through effective leadership communication. Employees, on the other hand,
think that their bosses do not spend enough time explaining their aims and strategies. (Belbin,2015)

SOURCE:BELBIN, 2015

Despite the fact that managers have the power to persuade others to strive toward the same goals, many
employees think that their company's goals are not well communicated. Furthermore, employees want and expect
to be kept up to date on how their company is performing and where it is headed. (Belbin,2015)

Leaders Think Ideas, Managers Think Execution

While a management culture stresses logic and control, leaders are more concerned with finding ways to better
the organization as a whole. They accomplish this through generating fresh ideas and promoting a forward-
thinking mentality. In other words, managers are constantly looking for "how and when" solutions, whereas
leaders are looking for "what and why" answers. (Belbin,2015)
As a result, the managers' primary role is to carry out their responsibilities in accordance with the leader's vision.
Their key responsibility is to guarantee that individuals in various roles with various responsibilities work
effectively and successfully, and that they feel free to express themselves. Managers relate to people based on
their position in the decision-making process, whereas leaders, who are more concerned with ideas, relate in a
higher-level yet empathic manner. The key distinction is between a manager's focus on how things are done and a
leader's focus on what needs to be done to get better results. (Belbin,2015)

SOURCE:BELBIN, 2015

Leaders may play a critical role in fostering change inside businesses because they are continually looking for fresh
ideas. Furthermore, by enabling colleagues to strive toward common goals, a leader drives constructive, gradual
change. Effective communication is a leader's most potent weapon for doing so. (Belbin,2015)

Leaders Inspire People, Managers Drive Their Success

While leaders have the ability to inspire others, managers are accountable for ensuring employees' long-term
success and a healthy work environment throughout their careers.
Managers are held accountable for the performance and productivity of their teams since they account for over
70% of employee engagement in the workplace. Managers, on the other hand, can do nothing to assist their
employees thrive if they are not motivated by what leadership has to say. Leaders may encourage their followers
to pursue key organizational projects by empowering their workforce and gaining their attention. (Belbin,2015)

From 1981 through 2001, Jack Welch served as the chief executive officer (CEO) of General Electric Co. He was
instrumental in the purchase of 600 companies in emerging economies, increasing GE's market worth from $12
billion to $505 billion by the time he retired. Welch encourages that everyone at GE accept change since the world
is continually changing. Managers and staff must constantly reinvent themselves and their work in order to expand
the company's operations and create more output. Welch has enlisted the help of executives who share his vision
for GE, possess boundless enthusiasm, and know how to excite staff. (Belbin,2015)

SOURCE:BELBIN, 2015

Under his supervision, managers are in charge of coming up with, developing, and refining future ideas, as well as
figuring out how to make them a reality. He also stressed the need of management working closely with staff in
order to understand what they are doing and why they are doing it. Those highly empowered managers and staff
grew tremendously as a result of Welch's leadership style. Customer satisfaction and revenues grow dramatically
as a result of higher-quality items.
Leaders Look in the Future, Managers Work In the Present

One of the most significant distinctions between leaders and managers is that leaders are more future-oriented,
whilst managers are more present-oriented. ( Marcinkevičiūtė and Žukovskis , 2016)

As a result, the manager's most significant task is to achieve organizational goals through adopting budgeting,
organizational architecture, and personnel processes and procedures. Leaders, on the other hand, are more likely
to plan ahead and seize future chances. However, the leadership's vision for the future is meaningless unless it can
be conveyed to both managers and employees in an open and unambiguous manner.

For example, when CEO Jan Carlzon described his plan to make Scandinavian Airlines (SAS) the greatest airline in
the world for regular business passengers, he stated nothing new to anybody in the aviation industry. Firm people
are ready to spend a lot of money on regular trips, and focusing on this segment of the market can help you grow
your business. That notion, however, has never been put together and determined by any other firm in an industry
famed for its bureaucracy. SAS was the first to attempt it, and they were successful. ( Marcinkevičiūtė and
Žukovskis , 2016)
 SOURCE:BELBIN, 2015

Leaders Shape the Culture, Managers Endorse It

The distinction between leadership and management in terms of organizational culture is that leaders define and
develop the culture, whilst managers lead their people to live according to that culture.
 SOURCE:BELBIN, 2015

It is the leader's responsibility to support the organization's basic business values and principles via their actions,
real communication, and choices. Passionate and motivating executives have a lot of effect over how the
company's culture is communicated and how people behave. As a result, without collaboration between
leadership and management, motivating people to live by the company's culture and fundamental values is
difficult. (Belbin,2015)

Take Richard Nicolosi and the success of Procter & Gamble's (P&G) paper products division as an example. When
he was promoted to general manager, he immediately set out on a new path, emphasizing cooperation and a
variety of leadership roles. He and his colleagues designated themselves as individual "councils," "groups of
products" in the unit, in keeping with the organizational concept that "everyone of us is a leader." As a
consequence, workers are encouraged to be more innovative, and success is shared throughout all levels of the
organization. (Belbin,2015)
 SOURCE: MARCINKEVIČIŪTĖ AND ŽUKOVSKIS, 2016

B. Link between Management and Leadership

Management and leadership are often used interchangeably, although management is more commonly thought of
as getting things done via other people to fulfill corporate goals. Managers are more focused with short-term issue
resolution and may react to specific events. People who operate in a structured organization with defined duties
are considered to be in management. In a larger sense, leadership focuses on interpersonal behavior. "There is a
strong message that leadership is not part of the work but a skill that may be added to a position," Belbin (2015)
writes. Clearly, the labor that leadership entails in the setting is not prescribed but emerges organically."
One of the many qualities that a great manager must possess is leadership. A manager does not have to be a
leader, and vice versa. A manager's primary goal is to optimize organizational output through effective
management. Leaders, on the other hand, are continually looking for and understanding new opportunities in
their organizations. Leaders have a higher level of loyalty than managers in most workgroups.

"All managers must know how to both lead and manage," according to Belbin (2015). Because in this day, if a
company's executives do not know how to lead as well as manage, they risk losing their jobs."

Leadership in Nokia

Jorma Ollila, the Chairman and Chief Executive Officer of Nokia Group, has a strong educational background,
having obtained master's degrees in political science and economics from the University of Helsinki, as well as a
master's degree in physics from the Helsinki University of Technology. He received an honorary doctorate in
political science from the University of Helsinki in 1995, and an honorary doctorate in technology from Helsinki
University of Technology in 1998.

SOURCE: MARCINKEVIČIŪTĖ AND ŽUKOVSKIS, 2016

Jorma has spearheaded Nokia's transformation into a mobile communications industry leader. As CEO, he offered
an ambitious plan that effectively reorganized and accelerated the old industrial conglomerate's expansion into
one of the most successful firms in both the mobile phone and telecoms infrastructure industries. Nokia has risen
to the top of the worldwide market and is now traded on six major stock markets under his leadership.
( Marcinkevičiūtė and Žukovskis , 2016)
Equal opportunity and receptivity to people's fresh ideas are other important aspects he wishes to nurture.
Employees are encouraged to take charge of their own development and to take use of the many development
opportunities available to them. Furthermore, Nokia provides excellent employee benefits and a pleasant working
environment .( Marcinkevičiūtė and Žukovskis , 2016)

SOURCE: MARCINKEVIČIŪTĖ AND ŽUKOVSKIS , 2016

He was also worried about the responsibilities assigned to staff. The Nokia value idea serves as a direction for all
employees, no matter where they are in the world. Nokia offers a bonus system that is dependent on the workers'
job results in order to motivate them to work hard on their responsibilities. .( Marcinkevičiūtė and Žukovskis ,
2016)

Understand management and leadership skills

All of the essential leadership abilities should be present in a competent manager. Through diverse leadership
roles, a person may manage various crises in a variety of ways. A strong leader should be able to lead his or her
teams to achieve success. Leadership does not imply subjugation of others .( Marcinkevičiūtė and Žukovskis ,
2016)

Knowledge of excellent time management is one of the most crucial qualities of a competent manager. A worker
who is able to design the timetable and split time evenly across jobs may be a valuable asset to the company.
( Marcinkevičiūtė and Žukovskis , 2016)

Compare any four skills and attributes of successful leaders

Jorma Ollila Reymin Zhang

Jorma Ollila, Chairman and Chief Executive His management style is more task-oriented.
Officer of Nokia Group, has a very strong
educational background. He establishes a clear and simple purpose for his
staff and updates the company's regulations.
He is a specialist in the field of information and
communications technology, and he has a lot of He assigned the work to each department in a
expertise in this field. very particular way in order to meet the
company's aim of becoming a worldwide brand.
Jorma's leadership style is unusual; he is
concerned with both personnel and their duties. He places a high value on staff recruiting, hiring
thousands of new employees each year. He also
Equal opportunity and receptivity to people's maintains tight links with prestigious colleges,
fresh ideas are other important aspects he wishes with 15% of his employees signing contracts with
to nurture. Hair during their last year of university.

"When it comes to establishing our people

policies and procedures, we listen to what our
workers have to say and act on it," Jorma added.

Employees can take use of flexi time, which

includes flexible working hours and part-time
work, depending on local market conditions.

He was also worried about the responsibilities

assigned to staff.
III. Management functions and Leadership roles
A. The main managerial functions
Henri Fayol, a French businessman, identified five core activities of management over a century ago. However,
there are now four widely accepted functions of management: planning, organizing, leading, and controlling. As
Indeed (2021) points out, these functions collaborate in the creation, execution and realization of organizational
goals. The four management functions can be thought of as a process, with each function building on the one
before it. To be successful, management needs to follow the four functions of management in the proper order.

According to Indeed (2021), managers must first develop a plan, then organize their resources and delegate
responsibilities to employees in accordance with the plan, then lead others to carry out the plan efficiently, and
finally evaluate the plan's effectiveness while it is being carried out and make any necessary adjustments.

Source: iEduNOTE, 2021

 Planning
In the planning stage, managers establish organizational goals and create a course of action to achieve them. The
plan helps maintain managerial effectiveness as it works as a guide for future activities. It requires decision making
or choosing future courses of action from among alternatives. In other words, decision making is a component of
planning as choices must be made in the process of finalizing plans.

 Organizing and Staffing

Organizing can be defined as a process of making sure necessary human and physical resources which are
available to carry out a plan and achieve organizational goals. The purpose of organizing is to divide resources and
delegate responsibilities to individuals in order to meet the planning stage's objectives. To coordinate the budget
and personnel, managers may need to collaborate with other departments inside the company, such as finance
and human resources. Managers aim to establish a productive working atmosphere during the organizing stage.
Managers often consider an employee's motivation and aptitude when assigning them to positions and
responsibilities that are a good fit for them. In general, organizing involves assigning activities, dividing work into
specific jobs and tasks, and specifying who has the authority to accomplish certain tasks.

 Leading
Leading consists of motivating employees and influencing their behavior to achieve organizational objectives.
Rather than focusing on tasks, leading focuses on managing people, such as individual employees, teams, and
organizations. Although managers can guide their teams by providing instructions and instructing them, great
leaders frequently connect with their people by utilizing interpersonal skills to encourage, inspire, and motivate
them to achieve to their full potential. Additionally, leading involves energizing, directing, persuading others and
creating a vision. The leadership part of management is concerned with motivating people and bringing about
change, whereas the other three roles are concerned with keeping the system stable.

 Controlling
Controlling is the process of assessing the plan's implementation and making necessary modifications to guarantee
that the organization's goal is met. Managers execute activities such as educating staff as needed and monitoring
deadlines throughout the controlling stage. Managers keep an eye on their personnel and assess their
performance. They can conduct performance reviews and provide feedback to workers, including compliments on
what they're doing well as well as ideas for improvement. They may also provide high-performing staff salary rise
incentives. In fact, managerial jobs vary in terms of the amount of time spent on these four duties at various
levels.

B. Leadership roles

Source: Leadership, 2021

Leadership does not have a universal meaning, but it can be approached from various perspectives . Everyone has
their own leadership style, philosophy, and method of putting their vision into action when leading their
organization or team (Patrick, 2017). However, great leaders must always fill certain roles in order to accomplish
their work properly, advance, and realize their personal and company visions. Below are six roles of a good leader:

 Situational adaptability (i.e., the contingency viewpoint): a method is chosen based on the specific
conditions at hand.
 Set a clear direction for the group and hold members to high performance standards.
 Be visible and maintain a social presence: Being visible to group members and maintaining a presence is
an effective strategy to have an impression as a leader.
 Offer emotional support to group members: helpful conduct toward subordinates has been shown to
improve leadership effectiveness.
 Provide frequent feedback and accept it – Act as a servant leader: some effective leaders think that their
primary duty is to service the needs of their constituents, such as workers, custodians, and customers.

C. Example for real-life famous business person

Source: Steve Jobs, 2021

Apple is an industry-defining entrepreneurship accomplishment, powered by one guy and his charismatic
leadership style. Steve Jobs is the individual in question. Steve Jobs has earned his reputation as one of the
contemporary world's finest leaders, and people may learn how to implement his strategies. According to Kassim
(2020), the elegant comments of Richard Branson in his essay for The Telegraph sum up Steve Jobs' entire
approach to leadership:

His creative awareness, his ‘meticulous eye for detail’, was clearly a driving force in Apple’s success. What made
Apple such a distinct brand amidst a world of fast-growing tech companies was its simplicity – a brainchild of Jobs
and his artistic flair. Jobs was well-known for his artistic mastery, but he was also respected for his business
acumen. He was also a man of his people, a diligent worker at heart and a creative who adored his work. Long
after his death, he was an entrepreneur who inspired generations of businesses.

 He Was Reluctant to Delegate

Delegation was not an option for Jobs. Of course, as with any big-scale corporation requiring a vast workforce, it
was required to some extent. But even with the groundbreaking advances that Apple has seen since its birthday in
1976, Jobs remained as deeply involved in the firm as he possibly could from the start. As he said himself,

Source: Kassim, 2020

  Jobs Knew That Creativity is Just ‘Connecting Things’
According to Kassim (2020), Jobs understood that innovation is nothing more than the act of combining two
seemingly unrelated ideas to produce something new. As Jobs went on to say,

Source: Kassim, 2020

Call it imposter syndrome, but this premise holds true. Many creatives consider their inventions to be self-evident,
but few people see life through their eyes. Some of the greatest innovations in history come from this exact
principle: combining one idea with another to spawn a novel creation. Jobs, for example, combined his love of
calligraphy and design with his passion for technology with the iPhone. The result was the first tech company to
put such a strong emphasis on design and aesthetics. That became Apple's unique selling point.

 He Found the Balance Between Empowering His Staff and Leading by Example
As a leader, it is vital that they take backseat and watching their staff members slave away, conjuring up new ideas
all by themselves. Rather, they should expect to get their hands dirty now and then. That is something that Jobs
excelled at. He was capable of personal innovation and wasn't afraid (or lazy) to do so. However, there must be a
balance within a company. A CEO or leader cannot be expected to fulfill all of the roles that are required. Jobs was
a master at leading by example as well as empowering and inspiring his employees to complete tasks
independently. He became a role model for his employees by exhibiting qualities he wished to see them exhibit,
such as his meticulous attention to detail. By remaining an integral part of Apple from start to finish, regularly
dropping in to check on his staff members and contributing new ideas, Jobs enabled that mission statement to
pervade his workforce. His enthusiasm motivated those around him to work hard to achieve the company's
objectives. And that is the secret to great leadership (Kassim, 2020).

 Jobs Kept the Creatives Away From the Critics

Kassim (2020) has shown that Jobs stated the following in one of his famous ideas about what should make up a
successful working team:
 Source: Kassim, 2020

This comment elucidates one of Jobs' most important strategies for assigning new projects to his employees.
Ideation, explanation, and critical analysis are all phases in the creativity process, according to him. While each
phase is critical, the three should be carried out independently and by separate teams.

 As Jobs Said, Sometimes, Innovation is About Subtraction

When Jobs first became interim CEO of Apple in 1997, the company was busy manufacturing more than 350
different products. Within a flash, Jobs cut that number down to 10. Because Apple's new CEO decided that many
of these devices had grown obsolete and were too costly to justify manufacture. Apple's production was
drastically reduced because Jobs thought that focusing on just a few endeavors rather than hundreds would be
considerably better for the company. As a consequence, Jobs' teams were able to perfect the 10 products they
were now focusing on, which included a consumer laptop and desktop as well as a professional laptop and
desktop. These items stayed true to Apple's goal statement by being extremely basic and straightforward. Product
design teams were able to concentrate their efforts on technology and design with more free time on their hands.
The ever-famous iMac was born from this reinvigorated concentration, and Apple's products were able to greatly
exceed their prior standards in terms of quality (Kassim, 2020).

 Jobs Was Unwaveringly Passionate About His Company

If there was one thing Steve Jobs was confident about, it was his undying devotion to his Apple-shaped creation.
According to Kassim (2020), Job's devotion for his firm accompanied him all the way to the grave, even throughout
his protracted struggle with pancreatic cancer. Several times, Apple was on the verge of going bankrupt. In fact,
some of the most expensive cases brought against the technical juggernaut have been valued at over a trillion
dollars. As Jobs said himself,

Souce: Kassim, 2020

 He Wasn’t Afraid to Think Differently

Jobs took satisfaction in being unusual, in challenging the existing quo. One of the fundamental reasons that made
him such a world-renowned leader and inventor was his aversion to societal conventions and desire to think
outside the box. Jobs penned the following for Apple's 'Think Different' marketing campaign in 1997:

Source: Kassim, 2020

On the whole, there is a lot to be said about thinking outside the box in a society full of conformists. After all,
providing something new that hasn't been seen before is the primary idea of innovation (Kassim, 2020).

 From his willingness to innovate outside the box to his passionate enthusiasm for his company, few CEOs
can compare to the technological maverick that was Jobs. Humans can all learn a great deal about
innovation from the guy who changed the whole landscape of digital technology via his efforts and
lessons.

IV. Management approaches and leadership theories

A. Management Approaches
1. Classical Approach: Around the year 1900, the classical approach to management emerged. Even
now, the concepts developed through this technique are widely recognized (Priyakshi, no date).
a. Scientific Management:
F. W. Taylor is regarded as the "Father of Scientific Management." In addition to Taylor, Frank and Lillian
Gilbreth, Henry L. Gantt, and Harrington Emerson have all contributed significantly to the advancement
of scientific management (Priyakshi, no date).

Figure : F. W. Taylor, PeoplePill

Scientific management is a management theory that examines work processes in order to increase
economic efficiency, particularly labor productivity. For example, an electrician may perform roughly 12
distinct procedures, but by eliminating redundant activities, the number of operations may be reduced
to five, and in certain situations, down to two.

At the center of scientific management are four key ideas that also apply to businesses today (no name,
no date). Among them are the following:
 - Examine each work or task scientifically to discover the "one optimal approach" to complete
it. This is a departure from the traditional "rule of thumb" system, in which workers invented
their own methods of doing the task.
- Hire the proper people for each position and train them to work as efficiently as possible.
- Employee performance should be monitored, and teaching and training should be provided
as needed.
- Divide the job between management and labor so that management can plan and instruct,
and employees can do the task quickly.

Management was responsible for selecting, training, and assisting employees in performing their tasks
'correctly'.

Workers' only obligation was to embrace the new ways and perform properly.

- Benefit of employers:

 Maximum Production: The quantity of production is closely tied to worker efficiency, and
scientific management concentrates its efforts on boosting worker efficiency. Maintain
working conditions in the workplace, pay adequate salaries, give appropriate facilities for
workers to rest in case of weariness, rotate work between various workers to retain their
attention, provide appropriate training to workers on a regular basis, and so on. That is
exactly what owners should do (Priyakshi, no date).
 Industrial Peace: Management and employees must work together completely. This avoids
any potential problems between the two parties.
 Benefits of Specialisation: Scientific management entails breaking down the entire task into
numerous little components, each of which is given to a person who is an expert in
completing it. This leads in more and better work being completed in a much shorter period
of time, which is one of the primary advantages of specialization (Priyakshi, no date).
- Benefits of workers:

 Better Working Condition

 More Remuneration
 Improvement in Standard of Living

b. Administrative management:
Henry Fayol argued for an administrative management approach to management. He learned managerial
skills while working as a manager in numerous organizations in France (Priyakshi, no date).
 Figure : Henry Fayol, Time Toast

This method is largely concerned with formal organizational structure. The idea suggests that there are
some fundamental principles around which an organization might be founded in order to attain a given
goal.

This approach's watchwords are efficiency and economy, since it believes that if these principles are
completely implemented, they may lead to maximum organizational efficiency and economy.
Administrative management views an organization as a closed system (No name, no date).

 Functions of Management according to Fayol:

- Planning
- Organising
- Coordinating
- Commanding
- Controlling.
- Principles of Management according to Fayol:
- Division of Work
- Authority and Responsibility
- Discipline
- Unity of Command
- Unity of Direction
- Priority to general interest over individual interest
- Fair Remuneration to Employees
- Effective Centralization
- Order,
- Equity,
- Stability in the Tenure of Personnel
- Initiative,
- Scalar Chain
- Espirit De Crops
Fayol believes that administration is a process that must be carried out at all levels of the
organization, and it has produced a set of principles pertaining to management functions and
organizational design (No name, no date).

The bureaucratic method to management was espoused by Max Weber, a German social scientist.
Weber believed that stringent regulations should be established to minimize management
inconsistency since inconsistency creates inefficiency.
 Figure : Max Webber, The New Yorker

 A bureaucracy, according to Weber, has the following characteristics:

- Task specialization and labor division: each employee performs what he or she is skilled at
and understands exactly what is expected of him or her. Every employee has certain
responsibilities that must be accomplished on a regular basis. Employees are encouraged to
further specialize in their domain but are discouraged from touching on other topics (Karl-
Phillip, 2020).
 - A tight chain of command and a hierarchical organization: each management layer only has
power over its own workers and their performance, and is overseen by the upper
management tier. Absolute hierarchy exists (Karl-Phillip, 2020).
- Objective selection and promotion: formal/mechanistic and based on objective criteria of
acquired training, education, and technical qualifications, with no room for subjective
judgment (Karl-Phillip, 2020).
- Formal rules and processes are required to provide consistency and predictability. Senior
management establishes processes for tasks that are steady and formal (Karl-Phillip, 2020).
- Impersonal Relationships: Regulations and procedures result in impersonal relationships and
employee distance. Decisions are made only on the basis of reasonable considerations (Karl-
Phillip, 2020).
 Evaluation of the classical approach:

Advantages Disadvantages
Shown the significance of performance Did not recognize the social environment of
compensation work or the greater requirements of
employees
Initiated a thorough and methodical Did not take into account individual
examination of assignments and differences
occupations.
Personal selection and training have been Workers were perceived as being
shown to be quite important. uneducated, and their proposals were
dismissed.

2. Behavioral Approach: Behavioral methods to management resulted in a radical shift in how

human behavior was regarded at work. Teamwork, cooperation, and communication gradually
surpassed putting in the hours to get desired outcomes (No name, 2021).

a. The Hawthorne Studies: Many firms today have adopted a contemporary management strategy
that includes decentralized control and flat organizational structures, as well as an emphasis on
an employee's social requirements. This transition is due, in part, to the Hawthorne Studies,
which were conducted from 1924 to 1932 (No name, 2021).
The primary goal of the Hawthorne experiments was to look at how different characteristics of
the work environment, such as lighting, break scheduling, and workday length, affected worker
productivity (Cherry, 2020).

b. Theory X & theory Y of Douglas McGregor:

 Theory X: Theory X management, according to McGregor, assumes the following:
- Work is intrinsically unpleasant for most individuals, and they will want to avoid it at all costs.
 - The majority of individuals lack ambition, have no desire for responsibility, and prefer to be
directed.
- Most people lack the ability to think creatively when it comes to solving organizational
challenges.
- Only at the physiological and security stages of Maslow's hierarchy of needs does motivation
develop.
- The majority of individuals are self-centered. As a result, they must be continuously monitored
and frequently pressured in order to fulfill corporate goals.
- Most individuals are resistant to change.
- The majority of people are gullible and uneducated.
Theory X basically implies that the major source of employee incentive is monetary, with security coming
in a close second. Theory X allows for either a harsh or soft approach to achieving outcomes (No name,
no date).

 Theory Y: The higher-level wants of esteem and self-actualization are continuing demands that
are never totally met for most people. As a result, it is through these higher-level demands that
employees may be most effectively motivated. Theory Y management makes the following
assumptions:
- If the conditions are good, work may be as natural as play.
- If people are devoted to their job and organizational goals, they will be self-directed and
innovative in meeting them.
- People will be more dedicated to their quality and productivity goals if rewards that satisfy higher
demands, such as self-fulfillment, are in place.
- The ability to be creative pervades organizations.
- Because creativity and inventiveness are prevalent in the population, most individuals can bear
responsibilities.
Under these assumptions, there is a possibility of aligning personal objectives with business goals by
leveraging the employee's own desire for satisfaction as a motivation.

c. Maslow’s Need Hierarchy: Maslow's hierarchy of needs is a motivation theory that asserts that
five kinds of human needs govern an individual's behavior. These demands include physiological
requirements, safety requirements, love and belonging requirements, esteem requirements, and
self-actualization requirements (No name, 2020)
5 Levels of Maslow’s Hierarchy of Needs:
 Figure : Maslow’s Hierarchy of Needs (Source: Simply Psychology)

- Physiological needs: Physiological requirements are the first of Maslow's hierarchy's id-
driven lower wants. Food and water, enough rest, clothes and shelter, general health, and
reproduction are among the most fundamental human survival needs. According to
Maslow, these basic physiological requirements must be met before people may progress
to the next stage of satisfaction (No name, 2020).

- Safety needs: Safety is the next lowest category of need. Protection against assault and
theft, mental stability and well-being, health security, and financial security are all
important aspects of safety (No name, 2020).

- Love and belonging needs: The social wants on the third level of Maslow's hierarchy are
the last of the so-called lower needs and are related to human connection. Friendships
and family relationships are among these requirements, both with biological family
(parents, siblings, children) and chosen family (spouses and partners). In order to achieve
 a sense of heightened kinship, physical and emotional closeness ranging from sexual
partnerships to intimate emotional attachments must be present. Membership in social
groups also helps to satisfy this urge, whether it's belonging to a colleague team or
developing an identity in a union, club, or group of hobbyists (No name, 2020).

- Esteem needs: The higher demands, starting with esteem, are ego-driven needs. Self-
respect (the conviction that you are worthwhile and deserving of dignity) and self-esteem
are the key components of esteem (confidence in your potential for personal growth and
accomplishments). Maslow distinguishes two sorts of self-esteem: esteem based on
respect and appreciation from others, and esteem based on your own self-assessment.
This later sort of self-esteem gives rise to self-assurance and independence (No name,
2020).

- Self-actualization needs: Self-actualization refers to reaching your full potential as a

human. Self-actualization needs, also known as self-fulfillment wants, are at the top of
Maslow's hierarchy of needs. Education, skill development (the refinement of abilities in
fields such as music, athletics, design, cuisine, and gardening), caring for others, and larger
ambitions such as learning a new language, traveling to new locations, and winning prizes
are all examples of self-actualization requirements (No name, 2020).

Real-life example: Warren Buffet is not just a good leader, but he also has a laisse faire
leadership philosophy, allowing employees to manage the firms he buys so that they may
establish themselves as leaders until they want his support. Warren Buffett has been a driving
influence at Berkshire Hathaway since its inception. His upbeat and positive behavioral attributes
influence his business attitude, making him effective and inspirational to others around him (no
name, 2020)
 Evaluation of the behavioral approach:

Advantages Disadvantages
Contributed to a greater understanding of The approach emphasizes the significance of
the impact of HR factors at work on employment to workers while failing to
organizational success, as well as the need of address financial concerns.
providing job satisfaction to workers.
Most theories aimed to provide rules for there is no documented relationship
practical managers to follow in order to between work happiness and motivation, or
satisfy and encourage staff. between either of these and productivity or
attainment of organizational goals.
Obtain improved productivity
3. Quantitative approaches to management: The quantitative approach to management employs
statistics, optimization models, information models, computer simulations, and other
quantitative tools. The concept that organizations are decision-making units is central to the
quantitative approach. These decision-making units can be made more effectively with the use of
mathematical models that translate essential considerations into numerical terms (Gordon,
2021).
 Some of the most important approaches for Quantitative Management are as follows
(Gordon, 2021):
- Theory of Probability,
- Sampling Analysis,
- Correlation / Regression Analysis,
- Time Series Analysis,
- Ratio Analysis,
- Variance Analysis,
- Statistical Quality Control,
- Linear Programming,
- Game Theory,
- Network Analysis,
- Break-Even Analysis,
- Waiting Line or Queuing Theory,
- Cash-Benefit Analysis, etc.
 Evaluation of Quantitative Approach:
 Benefit
- Create an environment conducive to disciplined thinking.
- Provide precise findings by processing complicated statistical data
- When the data is in quantitative form, it is valuable in the areas of planning and control.
 Drawback:
- Individual behaviors and attitudes cannot be adequately accounted for by mathematical
models.
- The time required to acquire quantitative abilities may cause the development of other
managerial talents to be delayed.
4. The Systems Perspective: The systems approach is based on the assumption that everything is
interconnected and interdependent. A system is made up of connected and dependent elements
that, when combined, constitute an unified whole. A system is just an assemblage or collection of
items or elements that come together to produce a complex whole (Chand, no date).
The systems approach aids in the study of the operations of complex organizations and has
served as the foundation for new types of organizations such as project management
organizations. The inter-relationships can be shown in numerous functions such as planning,
organizing, directing, and managing (Chand, no date). This strategy has an advantage over the
others since it is the closest to reality. This method is known as abstract and ambiguous. It is
 difficult to apply to big and complicated organizations. Furthermore, it does not equip managers
with any tools or techniques.
 Two key notions are:
- Entropy: the propensity of a system to run down and perish if it does not get new
inputs from its surroundings
- Synergy: the entire organization working together will generate more than the
components operating separately.
 Evaluation of The Systems Perspective:

Advantages Disadvantages
It allows contact between the organization It does not recognize system differences.
and its surroundings.
It directs managers to avoid isolating The nature of interconnections and
problems and instead establish an integrated interdependencies is not specified in systems
response. philosophy.
Unpractical

5. Contingency Approach: There is no one correct method to approach any decision. Contingencies
emerge as a result of a variety of environmental circumstances. As a result, while making
decisions that influence the company, managers must consider these eventualities.
The contingency approach recognized that an organization is an open system comprised of
interconnected subsystems. It goes on to say that the behavior of individual sub-units is
dependent on internal and external environmental factors (Gordon, 2021)
 The following are the major characteristics of contingency theory (Gordon, 2021):
- Management theory's non-universality - There is no one best way to accomplish things.
- Contingency - Management decisions are made based on the scenario.
- Environment - In order to be effective, managerial policies and practices must adapt to
changes in the environment.
- Diagnostics - Managers must have and continue to enhance diagnostic abilities in order to
foresee and prepare for changes in the environment.
- Human Relations - Managers must have adequate human relations skills in order to
tolerate and stabilize change.
- Managers must establish a communication system that is adequate to deal with
environmental changes.
 Evaluation of Contingency Approach:

Advantages Disadvantages
Managers are situational and non- As a justification for not getting formal
stereotyped. management knowledge.
It lends itself to a managerial style that is Many elements can have an impact on a
original and creative. situation. It is tough to evaluate all of these
factors.
 Real-life example: In terms of the leader-follower connection, Mark Zuckerberg has a positive
relationship with his followers. He values transparency with his staff and enjoys good
communication and connection with them (Vagas, 2010). The work is non-repetitive and has little
structure. It is due to Mark Zuckerberg's refusal to control everything. He is usually open to
comments from his subordinates and gives his employees the opportunity to submit
modifications to Facebook (Cynthia, 2020).

B. leadership theories
As we know, there are 5 types of leadership theories: Trait theory, Behavioral theory, Participative
theory, Contingency theory, Situational leadership. In the following, we will analyze each theory,
evaluate the advantages and disadvantages of each, and provide practical examples of approaches to
leadership theory.

1. Trait theory: is about leadership and focuses on specific natural talents and characteristics that
make someone a leader, as well as recognizing numerous features and attributes linked with
leadership. achieve success in a range of scenarios (Kendra Cherry, 2021). These characteristics
might be personality traits, physical characteristics, intellectual characteristics, and so forth
(Coventry University, ND).

Figure: Trait theory (Coventry University, ND)

According to Carlyle, leadership is something that people are born with rather than something that can
be learned (Kendra Cherry, 2021).
However, according to psychologist Ralph Melvin Stogdill, leadership is the consequence of the interplay
between the individual and the social context, rather than a fixed set of attributes (Kendra Cherry ,
2021).

 Factors and characteristics related to leadership ability:

- Capacity: their ability to solve problems and their quick and accurate judgment and ability to
work.
- Achievements: the achievements they have achieved as academic achievements, knowledge or
athletic achievements.
- Responsibility: trust, responsibility, self-control, resilience, and confidence in yourself and what
you do.
- Participation and involvement: social interaction develops, spreads, adapts quickly to changing
situations, cooperates with everyone.
- Socio-economic status: having higher social class conditions.
(Kendra Cherry, 2021)

Real life examples: the late Steve Jobs was known for his charisma. His ability to passionately articulate
his visions made people want to follow his lead. Some other examples of traits that make an effective
leader include intelligence, self-confidence, integrity and determination (Cynthia Measom, 2019)

 Evaluation of Trait theory:

 Advantages of the Trait Theory of Leadership:
- Trait Theory has helped shift focus from the Great Man Theory to Leadership, opening up new
possibilities in the field of leadership research.
- It has brought about significant advances in the study of human personality and characteristics.
- Theory brings the necessary complexity to leadership, instead of reducing two to just a few
behavioral leadership styles as in Lewin's leadership studies.
- It guides leaders on what kind of characteristics to further improve.
(Carl Lindberg, ND)

 Disadvantages of the Trait Theory of Leadership: Here are some of the strengths, weaknesses,
and limitations of trait theory of leadership:
- The trait theory of leadership does not cover all situations and circumstances.
- Different authors suggest different lists of characteristics, making the theory less specific
- Trait theory does not consider other leadership factors.
- Trait theory does not provide any comparative results.
- No survey has shown how varying degrees of the same trait affect leader behavior and
performance.
- Finally, there is no definitive test to measure these characteristics.
(Carl Lindberg, ND)
 2. Behavioral theory: attention on how leaders act and imply that these characteristics may be
emulated by other leaders It is sometimes referred to as style theory, and it proposes that
leaders are not born successful, but may be developed via learnable behavior (WGU, 2020).

Figure: Leadership theories and styles (WGU, 2020)

 There are two dimensions of leadership behavior:

- Initiating structure: Identify the correct job roles of themselves and of the team members.

- Consideration: Leaders' trust and respect for the ideas and feelings of team members.

 There are two different behavioral theories:

a. Role theory: holds that human behavior is guided by the desires of the individual and of others.
These desires are consistent with the different roles that individuals take on in their daily lives (Vo
Van Kiet, 2017).
b. The Managerial Grid is a behavioral leadership paradigm established by economists Robert Blake
and Jane Mouton in the 1950s. The leadership network diagram, formerly known as the
management network diagram, is based on two behavioral dimensions: concern for productivity
(on the X-axis on a range of 1 to 9) and care for people (on the Y axis on a similar scale) (Hoang
Vy, 2020).
 Figure: Leadership network diagram (Hoang Vy, 2020).

 Evaluation of Behavioral theory:

 The advantage of behavioral theory is that leaders may learn and choose what behaviors to take
to become the sort of leader they want to be. It enables leaders to be adaptable and flexible in
response to their situations. Another significant advantage of this leadership style is that it
demonstrates that anyone can be a leader (WGU, 2020).
 Some disadvantages of behavioral theory are that although it allows flexibility, it does not directly
suggest how to behave in certain circumstances. There are dozens of leadership styles derived
from behavioral theory, but there is no one-size-fits-all style (WGU, 2020).
3. Participative theory: are predicated on the concept that exceptional leaders are created rather
than born. Consider it the inverse of the Great Man hypotheses. This leadership paradigm, which
is based on behaviorism, focuses on the behaviors of leaders rather than their mental traits or
inner feelings. People may learn to be leaders, according to this view, via teaching and
observation (Kendra Cherry, 2021).
 Figure: Participative Leadership Theory ( Sketchbubble, ND)

 Participatory leadership typically follows these steps:

- Discussion in groups: Usually a leader oversees the process. This leader facilitates a discussion
about the issue at hand or the decision that needs to be made.
- Provide information: The leader shares all relevant information for decision-making with the
group.
- Idea sharing: The group shares ideas on how to solve the problem.
- Process ideas and information: Team leader summarizes information and ideas for the group.
- Decision: The team makes the best decision based on the information and ideas presented.
- Decision implementation: All members of the organization implement the decision.
(Indeed Editorial Team, 2021).

 There are two different theories of participation:

a. Lewin's leadership style: is a leader's style to offering guidance, carrying out goals, and inspiring
others. Kurt Lewin and a group of academics established in 1939 that there were three
 fundamental leadership styles: authoritarian (autocratic), participative (democratic), and
delegative (Laissez-Faire). They tested these three leadership styles on a group of schoolchildren
tasked with completing a craft project in order to evaluate how the youngsters reacted to the
leadership styles (lumenwaymaker, ND).
- Autocratic style: An authoritarian leader establishes policies and procedures and oversees the
work of the team without soliciting advice from them. Teams managed by a tyrant must fulfill
their work under strict monitoring (lumenwaymaker, ND).
- Democratic style: Leaders that use participatory leadership give direction to their teams as well as
involvement in decision-making, but they have the final word. Participatory leaders make their
team members feel like they are a part of the team, which fosters collective commitment. Styles
of joining are restricted. Participatory leadership can lead to communication breakdown if roles
within the team are unclear. Poor decisions might happen if the team is not skilled in the area in
which they are making judgments (lumenwaymaker, ND).
- Laissez-Faire: Leaders that employ delegation are simple to follow. They give little or no direction
to their team and delegate decision-making authority to the group. A delegated leader will offer
the tools and resources needed to finish a project and will be accountable for the team's
decisions and actions, but authority is mostly vested in the team. The delegation method is very
well suited to a group of highly talented individuals, and creative teams frequently enjoy this type
of independence. This technique, on the other hand, does not function well for a team that lacks
the requisite abilities, motivation, or is not meeting deadlines, which can lead to poor
performance (lumenwaymaker, ND).
b. Likert’s leadership styles:
Likert's management system was Rensis Likert created it in the 1960s. Rensis Likert and his colleagues
observed several management approaches and styles in various domains. The Exploratory Authorization,
Charity Authorization, Referencing, and Engagement styles are part of Likert's management system. The
four types were formed via extensive investigation and observation. These systems represent the many
stages of evolution of management models in various enterprises. The system incorporates variables like
as motivation, influence, leadership, communication, interaction, and decision making (vedantu, ND).

 Evaluation of Participative theory:

 Advantages of Participatory Management Style:
- Increase team spirit
- Promote cooperation
- Discover innovative solutions
- It is easier for teams to accept decisions
- Improve employee retention
(HRDQ staff, 2020)

 Disadvantages of Participatory Management Style:

- Prevents quick decision making
 - Increases the likelihood of a conflict
- Reduced quality of expertise
- Requires employee participation
(HRDQ staff, 2020)

4. Contingency theory: says that a leader's performance is determined by whether or not their
leadership style is suited for a certain setting. An individual can be a successful leader in one
context and an ineffective leader in another, according to this notion. This idea says that in order
to increase your chances of becoming an effective leader, you must be able to assess each
circumstance and determine if your leadership style is effective. Most of the time, this
necessitates self-awareness, objectivity, and adaptability ( Indeed Editorial Team, 2020).
To understand this theory well, let's take the Fiedler model as an example and analyze this model to be
able to clarify and understand this theory clearly.

According to this approach, three major elements contribute to the "facilitation of the situation."
Leaders must consider these things in order to be effective. This approach, however, regards leadership
styles as set and immutable. As a result, if a leader's style is not appropriate for a certain scenario, they
must be replaced by another leader. ( Indeed Editorial Team, 2020).

 Leadership style: described in terms of task motivation and relational motivation.

 Favorable Situation: Determines how favorable the situation is. To do this, you will evaluate
three differentiating factors:
- Leader-Member Relationship: This element pertains to team members' trust and faith in you. If
you are loved and trusted by the entire team, your influence will grow and your workplace will
improve ( Indeed Editorial Team, 2020).
- Task structure: This aspect determines whether the duties completed by your team are clear and
structured or hazy and unstructured. Unstructured activities lack a clear defined action plan and
are therefore regarded bad ( Indeed Editorial Team, 2020).
- Leader Position Power: This is the amount of control a leader has over their followers, and it is
connected to whether they have the authority to issue incentives or penalties. Generally, the
more authority you have, the better your situation ( Indeed Editorial Team, 2020).
Applying the model: According to the Fiedler model, more advantageous conditions necessitate LPC
leadership, whereas less advantageous ones necessitate HPC leadership. Task-oriented leaders will be
more productive in situations that have a healthy leader/team connection and well-structured tasks. In
contrast, a connection-oriented leader is more effective in situations with a leader/distant team
relationship and unstructured duties (Indeed Editorial Team, 2020).
 Figure: Fiedler's Contingency Theory ( Dieu Nhi, 2019)

Real life examples: A manager confronted with a problem with an employee who often arrives late for
work is an example of the contingency viewpoint in action. A manager might have a documented policy
in place for this case, in which the sole choice is to give the employee notice. However, from a
contingency standpoint, the manager may opt to further understand the issue by speaking with the
employee about why he or she is late to work and then deciding on the most effective and suitable
course of action. The benefit in this comes from the knowledge the manager learns about the employee:
perhaps there are mitigating circumstances that can be easily worked around. In this case, the
contingency approach allows the employee to keep her/his job and saves the manager from going
through the time and trouble to dismiss one employee and hire another (lumenlearning, ND)

 Evaluation of Contingency theory:

 Advantages of Contingency Management Theory:
- Dynamic
- Creativity at Display
- Provision for Contingency
(Vinish Parikh, 2020)

 Contingency Theory of Management Disadvantages

- Complex Process
 - Time Consuming
- Lack of Performance Measure
(Vinish Parikh, 2020)

5. Situational leadership: suggests that there is no single optimum leadership style. Instead, it is
determined by the style of leadership and techniques that are most suited to the job. The most
effective leaders, according to this notion, are those who can adjust their style to the
circumstance and consider cues such as the type of task, the makeup of the group, and other
things that may contribute to getting the job done ( Kendra Cherry, 2020).
 Some of the case theories are:
a. Hersey & Blanchard's situational theory: there are four primary leadership styles:
- Telling (S1): In this leadership style, the leader tells people what to do and how to do it ( Kendra
Cherry, 2020).
- Selling (S2): This style involves more back-and-forth between leaders and followers. Leaders "sell"
their ideas and message to get group members to buy into the process (Kendra Cherry, 2020).
- Participating (S3): In this approach, the leader offers less direction and allows members of the
group to take a more active role in coming up with ideas and making decisions (Kendra Cherry,
2020).
- Delegating (S4): This style is used by a less involved, hands-off approach to leadership. Group
members tend to make most of the decisions and take most of the responsibility for what
happens ( Kendra Cherry, 2020).
 Figure: Situational leadership ( situational, ND)

b. Vroom & Yetton's situational theory:

- Autocratic (A1): You use the information that you already have to make the decision, without
requiring any further input from your team.
- Autocratic (A2): You consult your team to obtain specific information that you need, and then
you make the final decision.
- Consultative (C1): You inform your team of the situation and ask for members' opinions
individually, but you don't bring the group together for a discussion. You make the final decision.
- Consultative (C2): You get your team together for a group discussion about the issue and to seek
their suggestions, but you still make the final decision by yourself.
- Collaborative (G2): You work with your team to reach a group consensus . Your role is mostly
facilitative, and you help team members to reach a decision that they all agree on.
( the Mind Tools Content Team, ND)

 Evaluation of Situational leadership:

  Advantages of Situational Leadership:
- It recognizes the need for flexibility.
- It creates a comfortable environment for workers.
- It takes different developmental phases into account.
- It increases the awareness of the leader.
- It helps a team be able to work better together.
- It boosts the training routine.
(Brandon Gaille, 2018)

 Disadvantages of Situational Leadership:

- It focuses more on immediate needs than long-term needs.
- It can be ineffective in task-oriented environments.
- It can be challenging to define maturity.
- It does not provide enough information for some leaders.
- It is based on the skill level of the leader.
- It creates a corporate dependency.
- It may create confusion within the company.
(Brandon Gaille, 2018)

I. The management approach and leadership theory would be most relevant in today's
contemporary business world.
Businesses that wish to grow must have a long-term, determined, and appropriate development strategy
in place. Businesses must address the following questions to choose the best strategy: What happened
to the business? What are the long-term objectives? What should be done to reach that goal? The
leadership function must identify goals, guide the department (department), and set goals for individuals
in accordance with the shared direction. In comparison to other theories, contingency theory, which
involves self-awareness, objectivity, and adaptability, will be suited for leadership activities such as
guiding, motivating, influencing, and so on. In truth, there are strong leaders, but not good managers in
the global economy, and vice versa. Enterprises must have a method for organizing human resources
and allocating them correctly, such as prioritizing internal management, inspection and supervision, and
so on. As a result, the contingency approach will be appropriate for today's business environment
because managers will be more flexible in managing circumstances and less stereotyped, allowing
organizations to be less impacted by internal and external forces.

II. Management approach and leadership theory should be applied at a company or organization
in Vietnam.
To see which management approach or leadership theory is suitable for companies and businesses in
Vietnam, we will take Vinamilk as a general example.
  Overview of VinaMilk company:
Full name is Vietnam Dairy Products Joint Stock Company, other name: Vinamilk. This is an enterprise
specializing in manufacturing and trading milk and dairy products as well as related equipment and
machinery in Vietnam. According to statistics of the United Nations Development Program, this is the
15th largest company in Vietnam in 2007 (Thanh Hang, 2021).

Vinamilk is currently a leading enterprise in the field of manufacturing dairy products in Vietnam.
Products bearing this brand account for the majority of market share across the country, specifically as
follows:

- 54.5% domestic dairy market share,

- 40.6% market share of powdered milk,
- 33.9% market share of drinking yogurt;
- 84.5% market share of edible yogurt
- 79.7% market share of condensed milk
(Thanh Hang, 2021)

Products from Vinamilk brand are distributed evenly throughout 63 provinces and cities across the
country with 220,000 points of sale. Besides, Vinamilk Vietnam is also exported to 43 countries around
the world such as the US, France, Canada, Poland, Germany, Japan, the Middle East, etc. After more than
40 years of establishment and development, the company has built 14 production factories, 2 logistics
factories, 3 branch sales offices, 1 dairy factory in Cambodia (Angkormilk), 1 representative office in
Thailand (Thanh Hang, 2021).

For Vinamilk, In 2016, Vinamilk company was ranked as Vietnam's billion-dollar enterprise by Forbes
with a brand value of more than $1.5 billion. In 2020, despite facing the Covid-19 pandemic, the
company The company is still valued at an additional 200 million USD compared to 2019, reaching the
milestone of more than 2.4 billion USD (Thanh Hang, 2021).

According to the financial report of Vinamilk company in the second quarter of 2020, net sales of
domestic business reached VND 25,456 billion. Direct exports reached VND 2,451 billion, up 7.7% over
the same period last year. In the first 6 months of 2020, Vinamilk's net revenue reached VND 29,648
billion, up 6.7% compared to 2019 (Thanh Hang, 2021).

Up to now, Vietnam Dairy Products Company has exported products to 54 countries and territories with
a total turnover of more than 2.2 billion USD. Vinamilk's stock is classified as a blue-chip stock in
Vietnam, for businesses with stable growth and revenue (Thanh Hang, 2021).

In order to do that, leaders or managers must be able to judge economic situations in Vietnam as well as
in the world, how to change and come up with policies and strategies for business, marketing, ... This
indicates that Vinamilk's managers or leaders are those who judge and plan situations and combine
favorable factors to bring out what is favorable in the company's business process.

In the current context of Vietnam's economy, in the face of international economic integration, and the
economic impact caused by the covid-19 pandemic. Therefore, it is required that businesses and
companies in Vietnam be alert and come up with suitable plans for the complicated changing situations
like today. Therefore, the way the Systems Perspective, and Situational leadership will be suitable for the
current economic situation, for the enterprise companies with the leadership of the manager or the
leader, it is necessary to make everything. interconnected and interdependent. A system is made up of
interconnected and dependent elements that, when combined, form a unified whole. A system is just a
collection or collection of items or elements that come together to create a complex whole. And
Situational Leadership: suggests that there is no single optimal leadership style. Instead, it is determined
by the leadership style and techniques best suited to the job. The most effective leaders, according to
this concept, are those who can adapt their style to the situation and consider cues such as the type of
task, the composition of the team, and other things that may have implications. can contribute to getting
the job done.

V. Conclusion
In conclusion, good management and leadership should be used effectively for the betterment of the
organization because the two are inseparable and in most organizations leaders are the managers.
Although there are some people who still argue that leaders are the same as managers, there are some
differences between the two concepts which can not be ignored. Managers have subordinates unless the
title is honorary. This means that managers are paid to get things done and can therefore be said to be
subordinates of other people.On the other hand, leaders have followers and it therefore means that
when somebody is leading, he or she has to give up formal authoritative control because leading is
majorly about voluntary work.

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Phân biệt lãnh đạo và quản lý – tưởng không khác mà khác không tưởng Thu Hằng
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