5036 MA07202 BD00630 Frontsheet Final Report
5036 MA07202 BD00630 Frontsheet Final Report
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1. Theories
Transformational Servant Transactional
Definition - Transformational - Servant leadership can - Transactional
leadership refers to the be defined as a leadership refers to the
leader moving the multidimensional exchange relationship
follower beyond leadership theory that between leader and
immediate self-interests begins with the desire to follower to meet their
through idealized serve, followed by the own self-interests.It
influence (charisma), intention to lead and may take the form of
inspiration, intellectual develop others, to contingent reward in
stimulation, or ultimately achieve a which the leader
individualized higher purpose for the clarifies for the follower
consideration. It benefit of the through direction or
elevates the follower’s individual, the participation what the
level of maturity and organization, and follower needs to do to
ideals as well as society. (Greenleaf, be rewarded for the
concerns for 1998) effort. (Bass, B. M., &
achievement, Riggio, 2006)
selfactualization, and
the well-being of others,
the organization, and
society. (Bass, B. M., &
Riggio, 2006)
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understand its purpose - Stewardship of their - Thrives on following
and priorities. organisations for the rules and doing things
greater good of society exactly right
- Express confidence in
followers' abilities to - Relyon persuasion as - Tends to be inflexible
implement the strategy, opposed to the use of because of following a
especially in power or status specific process
challenging situations.
- Understanding and - Efficiency and
- Lead by example empathy with others accuracy take
through exemplary precedence over
behavior in daily innovation
interactions and
maintain consistency.
2. Example
Transactional
Bill Gates is an example of this leadership theory. He possesses a pragmatic personality and emphasizes
work efficiency. He also leads his employees with a reward and punishment style:
+ Hertzfeld, a member of the Macintosh team at Apple, once remarked that Gates could never tolerate
anyone else explaining to him how things worked.
+ He is pragmatic and calculating, a trait that is reflected in the business decisions he made for Microsoft,
never hesitating to provide Microsoft software and operating systems to various manufacturers.(Walter
Isaacson, 2011)
+ Reflecting Gates's belief that employee ownership enhances motivation and retention, Microsoft
prioritized giving key employees equity instead of high salaries, even in its early days. This approach not
only boosted employee commitment but also conserved cash for growth. For instance, to attract Steve
Ballmer as his 24th employee in 1980, Gates offered him a $50,000 salary along with 6% of the
company's stock.(CA Bartlett, 2001)
+ Steve Ballmer played a crucial role in shaping Microsoft's cloud computing strategy, driving growth in
this sector. Under his leadership, Microsoft saw remarkable revenue growth, increasing from $25 billion
to $70 billion. (Lâm Bùi, 2023)
Bill Gates's leadership style has clearly demonstrated success through strategic decisions and effective
management methods. With a pragmatic personality and an emphasis on work efficiency, he created a
work environment that encourages employee commitment and motivation. By prioritizing employee
ownership and implementing a reward and punishment approach, Gates not only enhanced loyalty but also
preserved financial resources for Microsoft’s growth. Steve Ballmer’s contributions to shaping the cloud
computing strategy are a testament to Gates's success. All these factors indicate that Bill Gates's leadership
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style has laid a solid foundation for Microsoft’s long-term success and sustainable development over the
years.
Servant
A prominent figure in this leadership style is Nguyễn Đức Tài, the chairman of Thế Giới Di Động. The
company is recognized by customers for its dedicated service environment and its emphasis on the
psychology of both customers and employees. He fosters a sense of autonomy for customers and
encourages employees to willingly dedicate themselves to their work.
+ “What is talent? Honestly, I'm not too concerned with this concept. Many companies look for highly
skilled individuals with strong backgrounds and previous positions, but Thế Giới Di Động only requires
that you have a lot of information and a logical mindset to make decisions for that role. As long as you
have these two factors and are in the right position, you will thrive. Thế Giới Di Động is ready to create an
environment where talented individuals can freely flourish.”
+ “I prioritize every action and direction in this company as follows: Customers come first, employees are
second, and those who invest one billion dollars in stock are third.”(Nguyễn Đức Tài, 2019)
Through his two statements, he has created a comfortable environment for employee development. In
contrast to Bill Gates's focus on recruiting talent, Nguyễn Đức Tài chooses to cultivate talent. By placing
the business after customers and employees, the company can achieve sustainable growth through the
dedicated contributions of its employees and the loyalty of its customers. The success of Thế Giới Di
Động today is the clearest evidence of the effectiveness of servant leadership.
Transformational
+ When Welch took over GE, he aimed to create an organization where people at all levels were
responsible for their work and could make decisions to improve it. Instead of controlling employees, he
sought to empower them. A key aspect of this vision was Work-Out, a concept Welch favored, where
thousands of GE employees had the opportunity to share their ideas and expertise. Work-Out promoted
communication, accountability, and creativity, with the goal of enhancing team performance and fostering
a more motivated workplace. (Abey Francis, no date)
A key element of this vision was the "Work-Out" program, where thousands of employees had the
opportunity to gather, share ideas, and expertise. This program not only encouraged communication and
accountability but also fostered a creative atmosphere, aimed at enhancing team performance and
motivating the work environment. This approach helped GE thrive and become a successful organization
under Welch's leadership. He optimized employee motivation, creating a creative environment where
employees were empowered and held accountable, enabling an investment-heavy company like GE to
achieve significant breakthroughs in a volatile environment.
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3. The impact of leadership theory on business
Theories Transactional Servant
(Bill Gates) (Nguyen Duc Tai)
Factors
Decision-making - Decision-making in businesses - Business decisions under this
that apply this leadership theory theory primarily focus on the
is the concentration of power in benefits to people and society.
the hands of the leader.
- The impact of service
- Bill Gates' decisions were leadership in decision-making at
essentially the decisions of The Gioi Di Dong (TGDD) has
Microsoft. This led Microsoft to created a strong brand focused on
follow Gates' pragmatic and self- people. Mr. Nguyễn Đức Tài, by
serving interests. The company's consulting employees before
success was largely due to the making decisions, has been able
decisions grounded in Gates' to implement projects that are
immense knowledge. more aligned with the majority's
preferences.
Communication - The communication style of - The communication style of
this leadership approach is often this leadership theory is highly
evaluated as one-way, from the favored as it involves a
leaders to their subordinates. collaboration between employees
Employees have limited access and leaders. Everyone is given
to higher levels of management the opportunity to contribute
to avoid potential loss of control. their ideas.
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Motivation - Motivation is assessed and - The motivation behind servant
developed based on personal leadership theory comes from the
benefits. desire to serve others before
leading.
- Bill Gates motivated employees
by setting high goals and - The Mobile World Group is
rewarding stock options based on one of the brands that attracts
performance. He also applied this many job seekers and employees
approach to recruitment, due to its friendly working
exemplified by hiring Steve environment and extremely
Ballmer. attractive benefits. The company
always focuses on creating a
comfortable, dynamic workplace
where everyone can freely
express their creativity and
talents.(Động, 2022)
Conflict resolution - With an authoritarian - Conflicts are often resolved
leadership style, conflicts are through discussion and joint
typically resolved by higher decision-making.
management without resistance.
This allows the company to - TGDD always has weekly
handle conflicts quickly, though surveys to avoid conflicts and
care must be taken to avoid check for errors. Therefore,
losing cohesion. conflicts here are usually at a
mild level. Therefore, the
- Steve Ballmer and Gates had resolution is often discussed
mutual respect in their work. quickly between the relevant
However, Gates shared that levels.
maintaining a good relationship
could be problematic in conflict
resolution. As a result, Gates was
often strict and utilized third
parties to handle disputes.(Rhett
Power, 2017)
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Goal attainment - This theory emphasizes - The goal of servant leadership
personal goals, where the leader is to prioritize human and
needs to coordinate in order to societal development, which
integrate employees' personal helps strengthen engagement and
goals with the company's foster creativity.
objectives. This helps the
company more easily achieve - According to Nguyen Duc Tai's
short-term goals. people-focused work philosophy
at TGDD, his goal is to create a
- Microsoft's mission for dedicated working environment
globalization was shaped by for employees and a customer-
small goals within the company. oriented, wholehearted service
Gates' goal of dominating the culture.
technology landscape, combined
with the financial objectives of
the employees, propelled the
company to grow stronger.
1. Theories
Theory X Theory Y Blake and Mouton’s
Managerial Grid
Definition - Suppositions - Suppositions - This management
about human nature and about human nature and style is built on a two-
behaviour at work: behaviour at work: dimensional grid of
+ The average person is + For most people, concern for production
naturally lazy and work is as natural as and concern for people.
dislikes work. play or rest. This creates five basic
combinations of styles,
+ Most people need to + People self-direct and including 1,9 ; 9,9; 9,1;
be coerced, controlled, self-control when 1,1; and 5,5.
and threatened to meet committed to
organizational goals. objectives. - In the opportunism
management style,
+ People avoid + Commitment is tied organizational
responsibility, prefer to rewards from performance is built on
direction, lack ambition, achieving objectives. the principle of
and value security the exchange. This means
most. + With the right that employees only put
conditions, people can in effort and work when
+ Motivation happens learn to accept and seek they perceive a reward
mainly at the responsibility.
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physiological and equivalent to their
security levels. + Creativity in problem- effort.
solving is widespread.
- The core idea of - This is the 9 + 9
Theory X is control and + The intellectual management style, in
direction through a potential of most people which rewards and
centralized is underutilized. approval are given to
organizational system employees based on
and authority. + Motivation operates loyalty and compliance,
Assumptions based on at higher levels, like while punishment may
Theory X and affiliation, esteem, and be applied if they do not
traditional use of self-actualization. comply.(Laurie J.
rewards and Mullins, 2016)
punishments can lead to - Theory Y is not a
an exploitative or "soft" option, in
authoritarian practice, it is difficult to
management implement successfully,
style.(Laurie J. Mullins, can be frustrating, time-
2016) consuming, and prone
to mistakes. Gaining
each individual's trust is
a very challenging and
time-intensive task, and
without clear rules on
rewards and
punishments, mistakes
are more likely to
occur.(Laurie J.
Mullins, 2016)
Example - Theory X is often - Theory Y is applied in - In the 1,1 management
suitable for production work environments that style, this often occurs
environments and require creativity and a in small businesses
requires strict high level of where the manager does
supervision. responsibility. With a not focus on
human resources improvement or team
- At Italisa, the strategy at the core of building, or possesses
production processes the business, Unilever poor management skills
for household has successfully and seeks to avoid
accessories are strictly fostered employee responsibility. This
monitored and closely engagement, creating results in a poorly
followed. The workers sustainability for the performing business
adhere to the production company. (Hoàng with low employee
procedures with limited Huyền, 2022) performance and
involvement in the substandard products.
development or design
process.(Italisa, 2022)
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2. The impact of management theory on business
Theories Theory X Theory Y
Factors
Decision-making - Centralized decision-making - Decentralized, with employee
by managers. involvement.
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Conflict resolution - Manager resolves conflicts - Conflicts are resolved through
through authority. cooperation and discussion.
1. Leadership styles
Authoritarian leadership Democratic Leadership
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- The leader presides over the policies - Members of the group feel more
and processes. engaged in the process.
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young people. However, over nearly
two decades, the situation improved,
and the population's trajectory
shifted. His leadership, while
criticized for its undemocratic
methods, is credited with stabilizing
certain aspects of Russia's society and
economy.(Thiên Minh, 2018)
Realistic leadership - Putin’s leadership in the invasion of - The Apple Watch (iWatch) is a
decisions Ukraine was characterized by his prime example of structural change
highly centralized and autocratic under Tim Cook's leadership, as he
decision-making style. His approach chose to participate less in the
involved minimal consultation with intricate details of the product
advisers, many of whom were chosen design process. Instead, Cook
for loyalty rather than competence. delegated these responsibilities to
He ignored the advice of other his executive team. (The
countries and waged a protracted war. Investopedia Team, 2024)
This brought Russia a major
revolution but the damage was - This approach not only allows for
incalculable. (Andrea Kendall-Taylor a more collaborative design process,
and Erica Frantz, 2022) but also creates a product that feels
closer to the customer. Employees
feel more valued and connected to
the product, fostering a sense of
ownership and pride in their work.
This shift contributed to the success
of the Apple Watch, illustrating
how a democratic leadership style
can enhance the product
development process and strengthen
the connection with customers.
Creating a major revolution in
Apple products.
2. Manament styles
Situational management Laissez-faire management
Definition - Situational management is a - Laissez-faire management, also
flexible management style that known as delegative leadership,
allows ethical managers to tailor is a type of leadership style in
their approach to the specific which leaders are hands-off and
needs of the group or individual allow group members to make
member. the decisions. Researchers have
found that this is generally the
leadership style that leads to the
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lowest productivity among group
members. (Cherry, 2006)
(pms, no date a)
Characteristics - High flexibility. - Hands-off approach
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its essence and environment. accomplishing tasks and
Leaders play a crucial role in motivating personnel to
determining the inspiration, complete them. Managers often
vision, and goals for the focus more on the tasks at hand,
business. Their leadership style which helps the organization
and decision-making processes grow.
shape the organizational culture
and can drive change, motivate
employees, and impact overall
performance.
Example - Putin's authoritarian leadership - Steve Jobs' situational
style has completely transformed management style regarding
Russia in both social and projects allowed employees to
financial aspects. This have flexibility and enhanced a
transformation is evident in the sense of responsibility. This
shift towards feudal-like social approach can accelerate project
structures and the changes in progress and contribute to the
foreign financial policies, which development of the business.
have helped Russia secure a
stable reserve of resources.
a) Organizational nature
The characteristics of a business significantly influence its management and leadership styles.
Manufacturing companies require styles that focus on products and prioritize accuracy and strictness. In
environments where precision is crucial, such as manufacturing, management styles often need to be clear
and directive. This helps ensure that processes are followed accurately and quality control measures are
implemented.
In contrast, companies in the service sector, such as advertising or consulting firms, can benefit from
management styles that encourage innovation and adaptability.
b) Organizational structure
Organizational structure is one of the main factors influencing management and leadership styles.
Businesses with high levels of level will reduce employees' connection with higher-level leaders. This
leads to a more autocratic management style. For example, a functional organizational structure divides
the organization by function, requiring managers to ensure their departments meet the goals set by higher-
ups and limiting their ability to directly influence products or decisions regarding product quality.
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IV. Organizational culture
For example:
- With a people-centered business philosophy(tran kim hien, 2023), TGDD focuses on both its employees
and customers, combined with a servant leadership style, which has fostered a friendly and approachable
corporate culture. This is evidenced by TGDD's renowned reputation for customer service, and its
friendliness has helped create a strong brand presence in Vietnam.
b) Mission
Mission is the reason for a business's existence, guiding the values, standards, and behaviors of its
employees. It creates a positive work environment and encourages the development of both employees
and the organization.
For example:
- "Our mission is to empower every person and every organization on the planet to achieve
more."(Microsoft, no date)
- With Microsoft's global mission, the company has fostered a corporate culture focused on diversity and
inclusion. This ensures fairness and maximizes the potential of its vast global workforce. The result is the
creation of diverse ideas and a unified collaboration among employees worldwide.
For example:
- The Japanese possess the Kaizen management culture, the method of applying the Kaizen
implementation process at Toyota has brought about great improvements, forming a profound corporate
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culture. That is the culture of behavior between leaders and employees, between employees, thrift,
protecting the company's brand, and making every effort for work with a spirit of eagerness to learn. The
spirit of Kaizen is also reflected in Toyota's important messages: "Developing People First" and "Respect
for People". (pms, no date b)
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employees. This significantly
enhances work performance, and
combined with a culture of
creativity, it leads to heightened
product development and
innovation.
Organizational outcome - Organizational culture not only - Google achieves success
affects employees, but also through creativity within its
impacts the bottom line of the organizational culture. This
organization. Zappos is known creativity results in a diverse
for its excellent customer range of products. Additionally,
service, in part due to its strong a culture that enhances
company culture. Customer relationships ensures a long-term
satisfaction is often linked to a workforce, providing stability
positive organizational culture. for the company.
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